EX-99.3 4 bac-3312016ex993.htm THE SUPPLEMENTAL INFORMATION Exhibit


 





Supplemental Information
First Quarter 2016
















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




 
 
Bank of America Corporation and Subsidiaries
 
Table of Contents
Page
 
 
 
Consumer Banking
 
Global Wealth & Investment Management
 
Global Banking
 
Global Markets
 
Legacy Assets & Servicing
 
All Other
 
 
 
 
 
 
 





Bank of America Corporation and Subsidiaries
Consolidated Financial Highlights
(Dollars in millions, except per share information; shares in thousands)
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
 
 
 
 
Income statement
 
 
 
 
 
 
 
 
 
Net interest income
$
9,171

 
$
9,756

 
$
9,471

 
$
10,461

 
$
9,411

Noninterest income
10,341

 
9,911

 
11,042

 
11,495

 
11,503

Total revenue, net of interest expense
19,512

 
19,667

 
20,513

 
21,956

 
20,914

Provision for credit losses
997

 
810

 
806

 
780

 
765

Noninterest expense
14,816

 
14,010

 
13,940

 
13,958

 
15,827

Income tax expense
1,019

 
1,511

 
1,446

 
2,084

 
1,225

Net income
2,680

 
3,336

 
4,321

 
5,134

 
3,097

Preferred stock dividends
457

 
330

 
441

 
330

 
382

Net income applicable to common shareholders
2,223

 
3,006

 
3,880

 
4,804

 
2,715

Diluted earnings per common share
0.21

 
0.28

 
0.35

 
0.43

 
0.25

Average diluted common shares issued and outstanding
11,100,067

 
11,153,169

 
11,197,203

 
11,238,060

 
11,266,511

Dividends paid per common share
$
0.05

 
$
0.05

 
$
0.05

 
$
0.05

 
$
0.05

 
 
 
 
 
 
 
 
 
 
Performance ratios
 
 
 
 
 
 
 
 
 
Return on average assets
0.50
%
 
0.61
%
 
0.79
%
 
0.96
%
 
0.59
%
Return on average common shareholders' equity
3.77

 
5.08

 
6.65

 
8.42

 
4.88

Return on average tangible common shareholders' equity (1)
5.41

 
7.32

 
9.65

 
12.31

 
7.19

Return on average tangible shareholders' equity (1)
5.72

 
7.15

 
9.43

 
11.51

 
7.24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At period end
 
 
 
 
 
 
 
 
 
Book value per share of common stock
$
23.12

 
$
22.54

 
$
22.41

 
$
21.91

 
$
21.66

Tangible book value per share of common stock (1)
16.17

 
15.62

 
15.50

 
15.02

 
14.79

Market price per share of common stock:
 
 
 
 
 
 
 
 
 
Closing price
$
13.52

 
$
16.83

 
$
15.58

 
$
17.02

 
$
15.39

High closing price for the period
16.43

 
17.95

 
18.45

 
17.67

 
17.90

Low closing price for the period
11.16

 
15.38

 
15.26

 
15.41

 
15.15

Market capitalization
139,427

 
174,700

 
162,457

 
178,231

 
161,909

 
 
 
 
 
 
 
 
 
 
Number of financial centers - U.S.
4,689

 
4,726

 
4,741

 
4,789

 
4,835

Number of branded ATMs - U.S.
16,003

 
16,038

 
16,062

 
15,992

 
15,903

Full-time equivalent employees
213,183

 
213,280

 
215,193

 
216,679

 
219,658

 
 
 
 
 
 
 
 
 
 
(1) 
Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 40-43.)


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









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



Bank of America Corporation and Subsidiaries
Supplemental Financial Data
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fully taxable-equivalent (FTE) basis data (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
 
 
 
 
Net interest income
$
9,386

 
$
9,982

 
$
9,697

 
$
10,684

 
$
9,626

Total revenue, net of interest expense
19,727

 
19,893

 
20,739

 
22,179

 
21,129

Net interest yield
2.05
%
 
2.15
%
 
2.10
%
 
2.37
%
 
2.16
%
Efficiency ratio
75.11

 
70.43

 
67.22

 
62.93

 
74.91

 
 
 
 
 
 
 
 
 
 
(1) 
FTE basis is a non-GAAP financial measure. FTE basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 40-43.)


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



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



Bank of America Corporation and Subsidiaries
Consolidated Statement of Income
(Dollars in millions, except per share information; shares in thousands)
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
Interest income
 
 
 
 
 
 
 
 
 
Loans and leases
$
8,260

 
$
8,006

 
$
7,965

 
$
7,951

 
$
7,996

Debt securities
1,204

 
2,523

 
1,839

 
3,070

 
1,887

Federal funds sold and securities borrowed or purchased under agreements to resell
276

 
214

 
275

 
268

 
231

Trading account assets
1,179

 
1,106

 
1,134

 
1,074

 
1,083

Other interest income
776

 
804

 
754

 
742

 
726

Total interest income
11,695

 
12,653

 
11,967

 
13,105

 
11,923

 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
Deposits
225

 
211

 
214

 
216

 
220

Short-term borrowings
614

 
519

 
597

 
686

 
585

Trading account liabilities
292

 
272

 
342

 
335

 
394

Long-term debt
1,393

 
1,895

 
1,343

 
1,407

 
1,313

Total interest expense
2,524

 
2,897

 
2,496

 
2,644

 
2,512

Net interest income
9,171

 
9,756

 
9,471

 
10,461

 
9,411

 
 
 
 
 
 
 
 
 
 
Noninterest income
 
 
 
 
 
 
 
 
 
Card income
1,430

 
1,578

 
1,510

 
1,477

 
1,394

Service charges
1,837

 
1,862

 
1,898

 
1,857

 
1,764

Investment and brokerage services
3,182

 
3,236

 
3,336

 
3,387

 
3,378

Investment banking income
1,153

 
1,272

 
1,287

 
1,526

 
1,487

Equity investment income (loss)
43

 
177

 
(31
)
 
88

 
27

Trading account profits
1,662

 
963

 
1,616

 
1,647

 
2,247

Mortgage banking income
433

 
262

 
407

 
1,001

 
694

Gains on sales of debt securities
226

 
270

 
385

 
168

 
268

Other income
375

 
291

 
634

 
344

 
244

Total noninterest income
10,341

 
9,911

 
11,042

 
11,495

 
11,503

Total revenue, net of interest expense
19,512

 
19,667

 
20,513

 
21,956

 
20,914

 
 
 
 
 
 
 
 
 
 
Provision for credit losses
997

 
810

 
806

 
780

 
765

 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
 
 
 
 
 
 
 
 
Personnel
8,852

 
7,535

 
7,829

 
7,890

 
9,614

Occupancy
1,028

 
1,011

 
1,028

 
1,027

 
1,027

Equipment
463

 
528

 
499

 
500

 
512

Marketing
419

 
481

 
445

 
445

 
440

Professional fees
425

 
676

 
673

 
494

 
421

Amortization of intangibles
187

 
202

 
207

 
212

 
213

Data processing
838

 
817

 
731

 
715

 
852

Telecommunications
173

 
240

 
210

 
202

 
171

Other general operating
2,431

 
2,520

 
2,318

 
2,473

 
2,577

Total noninterest expense
14,816

 
14,010

 
13,940

 
13,958

 
15,827

Income before income taxes
3,699

 
4,847

 
5,767

 
7,218

 
4,322

Income tax expense
1,019

 
1,511

 
1,446

 
2,084

 
1,225

Net income
$
2,680

 
$
3,336

 
$
4,321

 
$
5,134

 
$
3,097

Preferred stock dividends
457

 
330

 
441

 
330

 
382

Net income applicable to common shareholders
$
2,223

 
$
3,006

 
$
3,880

 
$
4,804

 
$
2,715

 
 
 
 
 
 
 
 
 
 
Per common share information
 
 
 
 
 
 
 
 
 
Earnings
$
0.21

 
$
0.29

 
$
0.37

 
$
0.46

 
$
0.26

 Diluted earnings
0.21

 
0.28

 
0.35

 
0.43

 
0.25

Dividends paid
0.05

 
0.05

 
0.05

 
0.05

 
0.05

Average common shares issued and outstanding
10,339,731

 
10,399,422

 
10,444,291

 
10,488,137

 
10,518,790

Average diluted common shares issued and outstanding
11,100,067

 
11,153,169

 
11,197,203

 
11,238,060

 
11,266,511

 
 
 
 
 
 
 
 
 
 


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

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



Bank of America Corporation and Subsidiaries
Consolidated Statement of Comprehensive Income
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
First
Quarter
2016

Fourth
Quarter
2015

Third
Quarter
2015

Second
Quarter
2015

First
Quarter
2015
 
Net income
$
2,680

 
$
3,336

 
$
4,321

 
$
5,134

 
$
3,097

Other comprehensive income (loss), net-of-tax:
 
 
 
 
 
 
 
 
 
Net change in available-for-sale debt and marketable equity securities
2,891

 
(1,815
)
 
1,418

 
(2,537
)
 
1,336

Net change in debit valuation adjustments
127

 
(18
)
 
187

 
186

 
260

Net change in derivatives
24

 
168

 
127

 
246

 
43

Employee benefit plan adjustments
10

 
317

 
27

 
25

 
25

Net change in foreign currency translation adjustments
12

 
(39
)
 
(76
)
 
43

 
(51
)
Other comprehensive income (loss)
3,064

 
(1,387
)
 
1,683

 
(2,037
)
 
1,613

Comprehensive income
$
5,744

 
$
1,949

 
$
6,004

 
$
3,097

 
$
4,710

 
 
 
 
 
 
 
 
 
 


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


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



Bank of America Corporation and Subsidiaries
Consolidated Balance Sheet
(Dollars in millions)
 
 
 
 
 
 
March 31
2016
 
December 31
2015
 
March 31
2015
Assets
 
 
 
 
 
Cash and due from banks
$
27,781

 
$
31,265

 
$
30,106

Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks
151,829

 
128,088

 
132,437

Cash and cash equivalents
179,610

 
159,353

 
162,543

Time deposits placed and other short-term investments
5,891

 
7,744

 
7,418

Federal funds sold and securities borrowed or purchased under agreements to resell
221,129

 
192,482

 
206,708

Trading account assets
178,987

 
176,527

 
186,860

Derivative assets
52,255

 
49,990

 
61,331

Debt securities:
 
 
 
 
 
Carried at fair value
302,333

 
322,380

 
324,174

Held-to-maturity, at cost
97,978

 
84,625

 
59,815

Total debt securities
400,311

 
407,005

 
383,989

Loans and leases
901,113

 
896,983

 
872,750

Allowance for loan and lease losses
(12,069
)
 
(12,234
)
 
(13,676
)
Loans and leases, net of allowance
889,044

 
884,749

 
859,074

Premises and equipment, net
9,358

 
9,485

 
9,833

Mortgage servicing rights
2,631

 
3,087

 
3,394

Goodwill
69,761

 
69,761

 
69,776

Intangible assets
3,578

 
3,768

 
4,391

Loans held-for-sale
6,192

 
7,453

 
9,732

Customer and other receivables
56,838

 
58,312

 
63,716

Other assets
109,913

 
114,600

 
114,780

Total assets
$
2,185,498

 
$
2,144,316

 
$
2,143,545

 
 
 
 
 
 
Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
Trading account assets
$
5,876

 
$
6,344

 
$
5,182

Loans and leases
62,045

 
72,946

 
89,771

Allowance for loan and lease losses
(1,152
)
 
(1,320
)
 
(1,869
)
Loans and leases, net of allowance
60,893

 
71,626

 
87,902

Loans held-for-sale
278

 
284

 
1,226

All other assets
1,523

 
1,530

 
2,953

Total assets of consolidated variable interest entities
$
68,570

 
$
79,784

 
$
97,263



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

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



Bank of America Corporation and Subsidiaries
 
 
 
 
 
Consolidated Balance Sheet (continued)
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
March 31
2016
 
December 31
2015
 
March 31
2015
Liabilities
 
 
 
 
 
Deposits in U.S. offices:
 
 
 
 
 
Noninterest-bearing
$
424,319

 
$
422,237

 
$
412,902

Interest-bearing
718,579

 
703,761

 
673,431

Deposits in non-U.S. offices:
 
 
 
 
 
Noninterest-bearing
11,230

 
9,916

 
8,473

Interest-bearing
63,133

 
61,345

 
58,362

Total deposits
1,217,261

 
1,197,259

 
1,153,168

Federal funds purchased and securities loaned or sold under agreements to repurchase
188,960

 
174,291

 
203,758

Trading account liabilities
74,003

 
66,963

 
74,791

Derivative liabilities
41,063

 
38,450

 
52,234

Short-term borrowings
30,881

 
28,098

 
33,270

Accrued expenses and other liabilities (includes $627, $646 and $537 of reserve for unfunded lending commitments)
137,705

 
146,286

 
138,278

Long-term debt
232,849

 
236,764

 
237,858

Total liabilities
1,922,722

 
1,888,111

 
1,893,357

Shareholders' equity
 
 
 
 
 
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,851,790, 3,767,790 and 3,767,790 shares
24,342

 
22,273

 
22,273

Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 10,312,660,252, 10,380,265,063 and 10,520,400,507 shares
150,774

 
151,042

 
153,410

Retained earnings
90,270

 
88,564

 
78,438

Accumulated other comprehensive income (loss)
(2,610
)
 
(5,674
)
 
(3,933
)
Total shareholders' equity
262,776

 
256,205

 
250,188

Total liabilities and shareholders' equity
$
2,185,498

 
$
2,144,316

 
$
2,143,545

 
 
 
 
 
 
Liabilities of consolidated variable interest entities included in total liabilities above
Short-term borrowings
$
665

 
$
681

 
$
630

Long-term debt
10,857

 
14,073

 
13,942

All other liabilities
17

 
21

 
123

Total liabilities of consolidated variable interest entities
$
11,539

 
$
14,775

 
$
14,695



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


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



Bank of America Corporation and Subsidiaries
Capital Management
(Dollars in millions)
 
Basel 3 Transition
 
March 31
2016
 
December 31
2015
 
September 30
2015
 
June 30
2015
 
March 31
2015
Risk-based capital metrics (1):
 
 
 
 
 
 
 
 
 
Standardized Approach
 
 
 
 
 
 
 
 
 
Common equity tier 1 capital
$
162,732

 
$
163,026

 
$
161,649

 
$
158,326

 
$
155,438

Tier 1 capital
182,550

 
180,778

 
178,830

 
176,247

 
173,155

Total capital
223,021

 
220,676

 
219,901

 
217,538

 
214,481

Risk-weighted assets
1,405,655

 
1,403,293

 
1,391,672

 
1,407,891

 
1,405,267

Common equity tier 1 capital ratio
11.6
%
 
11.6
%
 
11.6
%
 
11.2
%
 
11.1
%
Tier 1 capital ratio
13.0

 
12.9

 
12.9

 
12.5

 
12.3

Total capital ratio
15.9

 
15.7

 
15.8

 
15.5

 
15.3


 
 
 
 
 
 
 
 
 
Advanced Approaches (2)
 
 
 
 
 
 
 
 
 
Common equity tier 1 capital
$
162,732

 
$
163,026

 
n/a

 
n/a

 
n/a

Tier 1 capital
182,550

 
180,778

 
n/a

 
n/a

 
n/a

Total capital
213,435

 
210,912

 
n/a

 
n/a

 
n/a

Risk-weighted assets
1,586,870

 
1,602,373

 
n/a

 
n/a

 
n/a

Common equity tier 1 capital ratio
10.3
%
 
10.2
%
 
n/a

 
n/a

 
n/a

Tier 1 capital ratio
11.5

 
11.3

 
n/a

 
n/a

 
n/a

Total capital ratio
13.5

 
13.2

 
n/a

 
n/a

 
n/a

 
 
 
 
 
 
 
 
 
 
Leverage-based metrics (3)
 
 
 
 
 
 
 
 
 
Adjusted average assets
$
2,094,727

 
$
2,103,183

 
$
2,091,628

 
$
2,073,526

 
$
2,059,646

Tier 1 leverage ratio
8.7
%
 
8.6
%
 
8.5
%
 
8.5
%
 
8.4
%
 
 
 
 
 
 
 
 
 
 
Supplementary leverage ratio leverage exposure
$
2,686,668

 
$
2,728,423

 
$
2,740,854

 
$
2,731,449

 
$
2,707,984

Supplementary leverage ratio
6.8
%
 
6.6
%
 
6.5
%
 
6.5
%
 
6.4
%
 
 
 
 
 
 
 
 
 
 
Tangible equity ratio (4)
9.0

 
8.9

 
8.8

 
8.6

 
8.6

Tangible common equity ratio (4)
7.9

 
7.8

 
7.8

 
7.6

 
7.5

 
 
 
 
 
 
 
 
 
 
(1) 
Regulatory capital ratios are preliminary and reflect the transition provisions of Basel 3.
(2) 
Bank of America received approval to begin using the Advanced approaches capital framework to determine risk-based capital requirements in the fourth quarter of 2015. With the approval to exit parallel run, Bank of America is required to report regulatory capital risk-weighted assets and ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is to be used to assess capital adequacy, and was the Advanced approaches at March 31, 2016 and December 31, 2015. Prior to exiting parallel run, we were required to report regulatory capital under the Standardized approach only.
(3) 
The numerator of the supplementary leverage ratio and Tier 1 leverage ratio is quarter-end Basel 3 Tier 1 capital reflective of Basel 3 numerator transition provisions. The denominator of supplementary leverage exposure is total leverage exposure based on the daily average of the sum of on-balance sheet exposures less permitted Tier 1 deductions, as well as the simple average of certain off-balance sheet exposures, as of the end of each month in a quarter. Off-balance sheet exposures primarily include undrawn lending commitments, letters of credit, potential future derivative exposures and repo-style transactions.
(4) 
Tangible equity ratio equals period-end tangible shareholders' equity divided by period-end tangible assets. Tangible common equity ratio equals period-end tangible common shareholders' equity divided by period-end tangible assets. Tangible shareholders' equity and tangible assets are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on pages 40-43.)

n/a = not applicable


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

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



Bank of America Corporation and Subsidiaries
 
 
 
 
 
 
 
 
 
Regulatory Capital Reconciliations (1, 2, 3)
 
 
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
March 31
2016
 
December 31
2015
 
September 30
2015
 
June 30
2015
 
March 31
2015
Regulatory capital – Basel 3 transition to fully phased-in
 
 
 
 
 
 
 
 
 
Common equity tier 1 capital (transition)
$
162,732

 
$
163,026

 
$
161,649

 
$
158,326

 
$
155,438

Deferred tax assets arising from net operating loss and tax credit carryforwards phased in during transition
(3,764
)
 
(5,151
)
 
(5,554
)
 
(5,706
)
 
(6,031
)
Accumulated OCI phased in during transition
(117
)
 
(1,917
)
 
(1,018
)
 
(1,884
)
 
(378
)
Intangibles phased in during transition
(983
)
 
(1,559
)
 
(1,654
)
 
(1,751
)
 
(1,821
)
Defined benefit pension fund assets phased in during transition
(381
)
 
(568
)
 
(470
)
 
(476
)
 
(459
)
DVA related to liabilities and derivatives phased in during transition
76

 
307

 
228

 
384

 
498

Other adjustments and deductions phased in during transition
(54
)
 
(54
)
 
(92
)
 
(587
)
 
(48
)
Common equity tier 1 capital (fully phased-in)
$
157,509

 
$
154,084

 
$
153,089

 
$
148,306

 
$
147,199

 
 
 
 
 
 
 
 
 
 
Risk-weighted assets – As reported to Basel 3 (fully phased-in)
 
 
 
 
 
 
 
 
 
Basel 3 Standardized approach risk-weighted assets as reported
$
1,405,655

 
$
1,403,293

 
$
1,391,672

 
$
1,407,891

 
$
1,405,267

Changes in risk-weighted assets from reported to fully phased-in
20,103

 
24,089

 
22,989

 
25,460

 
25,394

Basel 3 Standardized approach risk-weighted assets (fully phased-in)
$
1,425,758

 
$
1,427,382

 
$
1,414,661

 
$
1,433,351

 
$
1,430,661

 
 
 
 
 
 
 
 
 
 
Basel 3 Advanced approaches risk-weighted assets as reported
$
1,586,870

 
$
1,602,373

 
n/a

 
n/a

 
n/a

Changes in risk-weighted assets from reported to fully phased-in
(29,709
)
 
(27,690
)
 
n/a

 
n/a

 
n/a

Basel 3 Advanced approaches risk-weighted assets (fully phased-in) (4)
$
1,557,161

 
$
1,574,683

 
$
1,397,504

 
$
1,427,388

 
$
1,461,190

 
 
 
 
 
 
 
 
 
 
Regulatory capital ratios
 
 
 
 
 
 
 
 
 
Basel 3 Standardized approach common equity tier 1 (transition)
11.6
%
 
11.6
%
 
11.6
%
 
11.2
%
 
11.1
%
Basel 3 Advanced approaches common equity tier 1 (transition)
10.3

 
10.2

 
n/a

 
n/a

 
n/a

Basel 3 Standardized approach common equity tier 1 (fully phased-in)
11.0

 
10.8

 
10.8

 
10.3

 
10.3

Basel 3 Advanced approaches common equity tier 1 (fully phased-in) (4)
10.1

 
9.8

 
11.0

 
10.4

 
10.1

 
 
 
 
 
 
 
 
 
 
(1) 
Regulatory capital ratios are preliminary.
(2) 
Bank of America received approval to begin using the Advanced approaches capital framework to determine risk-based capital requirements in the fourth quarter of 2015. With the approval to exit parallel run, Bank of America is required to report regulatory capital risk-weighted assets and ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is to be used to assess capital adequacy, and was the Advanced approaches at March 31, 2016 and December 31, 2015. Prior to exiting parallel run, we were required to report regulatory capital under the Standardized approach only.
(3) 
Fully phased-in estimates are non-GAAP financial measures. For reconciliations to GAAP financial measures, see above.
(4) 
Basel 3 fully phased-in Advanced approaches estimates assume approval by U.S. banking regulators of our internal analytical models, including approval of the internal models methodology (IMM). As of March 31, 2016, the Corporation did not have regulatory approval for the IMM model.  

n/a = not applicable


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

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



Bank of America Corporation and Subsidiaries
Net Interest Income Excluding Trading-related Net Interest Income
(Dollars in millions)
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
 
Net interest income (FTE basis)
 
 
 
 
 
 
 
 
 
As reported
$
9,386

 
$
9,982

 
$
9,697

 
$
10,684

 
$
9,626

Impact of trading-related net interest income
(1,059
)
 
(1,017
)
 
(996
)
 
(882
)
 
(883
)
Net interest income excluding trading-related net interest income (FTE basis) (1)
$
8,327

 
$
8,965

 
$
8,701

 
$
9,802

 
$
8,743

 
 
 
 
 
 
 
 
 
 
Average earning assets
 
 
 
 
 
 
 
 
 
As reported
$
1,844,650

 
$
1,847,253

 
$
1,841,984

 
$
1,810,655

 
$
1,799,175

Impact of trading-related earning assets
(397,732
)
 
(400,912
)
 
(418,588
)
 
(416,414
)
 
(415,193
)
Average earning assets excluding trading-related earning assets (1)
$
1,446,918

 
$
1,446,341

 
$
1,423,396

 
$
1,394,241

 
$
1,383,982

 
 
 
 
 
 
 
 
 
 
Net interest yield contribution (FTE basis) (2)
 
 
 
 
 
 
 
 
 
As reported
2.05
%
 
2.15
%
 
2.10
%
 
2.37
%
 
2.16
%
Impact of trading-related activities
0.27

 
0.32

 
0.33

 
0.45

 
0.40

Net interest yield on earning assets excluding trading-related activities (FTE basis) (1)
2.32
%
 
2.47
%
 
2.43
%
 
2.82
%
 
2.56
%
 
 
 
 
 
 
 
 
 
 
(1) 
Represents a non-GAAP financial measure.
(2) 
Calculated on an annualized basis.


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


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



Bank of America Corporation and Subsidiaries
Quarterly Average Balances and Interest Rates – Fully Taxable-equivalent Basis
(Dollars in millions)
 
 
First Quarter 2016
 
 
Fourth Quarter 2015
 
 
First Quarter 2015
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
Earning assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks
 
$
138,574

 
$
155

 
0.45
%
 
 
$
148,102

 
$
108

 
0.29
%
 
 
$
126,189

 
$
84

 
0.27
%
Time deposits placed and other short-term investments
 
9,156

 
32

 
1.41

 
 
10,120

 
41

 
1.61

 
 
8,379

 
33

 
1.61

Federal funds sold and securities borrowed or purchased under agreements to resell
 
209,183

 
276

 
0.53

 
 
207,585

 
214

 
0.41

 
 
213,931

 
231

 
0.44

Trading account assets
 
136,306

 
1,212

 
3.57

 
 
134,797

 
1,141

 
3.37

 
 
138,946

 
1,122

 
3.26

Debt securities (1)
 
399,809

 
1,224

 
1.23

 
 
399,423

 
2,541

 
2.55

 
 
383,120

 
1,898

 
2.01

Loans and leases (2):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
186,980

 
1,629

 
3.49

 
 
189,650

 
1,644

 
3.47

 
 
215,030

 
1,851

 
3.45

Home equity
 
75,328

 
711

 
3.79

 
 
77,109

 
715

 
3.69

 
 
84,915

 
770

 
3.66

U.S. credit card
 
87,163

 
2,021

 
9.32

 
 
88,623

 
2,045

 
9.15

 
 
88,695

 
2,027

 
9.27

Non-U.S. credit card
 
9,822

 
253

 
10.36

 
 
10,155

 
258

 
10.07

 
 
10,002

 
262

 
10.64

Direct/Indirect consumer
 
89,342

 
550

 
2.48

 
 
87,858

 
530

 
2.40

 
 
80,713

 
491

 
2.47

Other consumer
 
2,138

 
16

 
3.03

 
 
2,039

 
11

 
2.09

 
 
1,847

 
15

 
3.29

Total consumer
 
450,773

 
5,180

 
4.61

 
 
455,434

 
5,203

 
4.55

 
 
481,202

 
5,416

 
4.54

U.S. commercial
 
270,511

 
1,936

 
2.88

 
 
261,727

 
1,790

 
2.72

 
 
234,907

 
1,645

 
2.84

Commercial real estate
 
57,271

 
434

 
3.05

 
 
56,126

 
408

 
2.89

 
 
48,234

 
347

 
2.92

Commercial lease financing
 
21,077

 
182

 
3.46

 
 
20,422

 
155

 
3.03

 
 
19,271

 
171

 
3.55

Non-U.S. commercial
 
93,352

 
585

 
2.52

 
 
92,447

 
530

 
2.27

 
 
83,555

 
485

 
2.35

Total commercial
 
442,211

 
3,137

 
2.85

 
 
430,722

 
2,883

 
2.66

 
 
385,967

 
2,648

 
2.78

Total loans and leases (3)
 
892,984

 
8,317

 
3.74

 
 
886,156

 
8,086

 
3.63

 
 
867,169

 
8,064

 
3.76

Other earning assets
 
58,638

 
694

 
4.76

 
 
61,070

 
748

 
4.87

 
 
61,441

 
706

 
4.66

Total earning assets (4)
 
1,844,650

 
11,910

 
2.59

 
 
1,847,253

 
12,879

 
2.77

 
 
1,799,175

 
12,138

 
2.72

Cash and due from banks
 
28,844

 
 
 
 
 
 
29,503

 
 
 
 
 
 
27,695

 
 
 
 
Other assets, less allowance for loan and lease losses
 
300,124

 
 
 
 
 
 
303,716

 
 
 
 
 
 
311,704

 
 
 
 
Total assets
 
$
2,173,618

 
 
 
 
 
 
$
2,180,472

 
 
 
 
 
 
$
2,138,574

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Yields on debt securities excluding the impact of market-related adjustments were 2.45 percent, 2.47 percent and 2.54 percent for the three months ended March 31, 2016, December 31, 2015 and March 31, 2015, respectively. Yields on debt securities excluding the impact of market-related adjustments are a non-GAAP financial measure. The Corporation believes the use of this non-GAAP financial measure provides additional clarity in assessing its results. 
(2) 
Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan.
(3) 
Beginning in the first quarter of 2016, the Corporation classifies operating leases in other assets on the Consolidated Balance Sheet. For the three months ended December 31, 2015 and March 31, 2015, $5.7 billion and $5.2 billion of operating leases were reclassified from loans and leases to other assets to conform to this presentation. Additionally, amounts related to these leases were reclassified from net interest income to other income and other general operating expenses on the Consolidated Statement of Income.
(4) 
The impact of interest rate risk management derivatives on interest income is presented below. Interest income includes the impact of interest rate risk management contracts, which increased (decreased) interest income on:
 
 
First Quarter 2016
 
 
 
 
Fourth Quarter 2015
 
 
 
 
First Quarter 2015
 
 
Federal funds sold and securities borrowed or purchased under agreements to resell
 
 
 
$
13

 
 
 
 
 
 
$
7

 
 
 
 
 
 
$
12

 
 
Debt securities
 
 
 
(34
)
 
 
 
 
 
 
(22
)
 
 
 
 
 
 
(8
)
 
 
U.S. commercial loans and leases
 
 
 
(14
)
 
 
 
 
 
 
(17
)
 
 
 
 
 
 
(15
)
 
 
Net hedge expense on assets
 
 
 
$
(35
)
 
 
 
 
 
 
$
(32
)
 
 
 
 
 
 
$
(11
)
 
 


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

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



Bank of America Corporation and Subsidiaries
Quarterly Average Balances and Interest Rates – Fully Taxable-equivalent Basis (continued)
(Dollars in millions)
 
 
First Quarter 2016
 
 
Fourth Quarter 2015
 
 
First Quarter 2015
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
Interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Savings
 
$
47,845

 
$
1

 
0.01
%
 
 
$
46,094

 
$
1

 
0.01
%
 
 
$
46,224

 
$
2

 
0.02
%
NOW and money market deposit accounts
 
577,779

 
71

 
0.05

 
 
558,441

 
68

 
0.05

 
 
531,827

 
67

 
0.05

Consumer CDs and IRAs
 
49,617

 
35

 
0.28

 
 
51,107

 
37

 
0.29

 
 
58,704

 
45

 
0.31

Negotiable CDs, public funds and other deposits
 
31,739

 
29

 
0.37

 
 
30,546

 
25

 
0.32

 
 
28,796

 
22

 
0.31

Total U.S. interest-bearing deposits
 
706,980

 
136

 
0.08

 
 
686,188

 
131

 
0.08

 
 
665,551

 
136

 
0.08

Non-U.S. interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks located in non-U.S. countries
 
4,123

 
9

 
0.84

 
 
3,997

 
7

 
0.69

 
 
4,544

 
8

 
0.74

Governments and official institutions
 
1,472

 
2

 
0.53

 
 
1,687

 
2

 
0.37

 
 
1,382

 
1

 
0.21

Time, savings and other
 
56,943

 
78

 
0.55

 
 
55,965

 
71

 
0.51

 
 
54,276

 
75

 
0.55

Total non-U.S. interest-bearing deposits
 
62,538

 
89

 
0.57

 
 
61,649

 
80

 
0.52

 
 
60,202

 
84

 
0.56

Total interest-bearing deposits
 
769,518

 
225

 
0.12

 
 
747,837

 
211

 
0.11

 
 
725,753

 
220

 
0.12

Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings
 
221,990

 
614

 
1.11

 
 
231,650

 
519

 
0.89

 
 
244,134

 
585

 
0.97

Trading account liabilities
 
72,299

 
292

 
1.63

 
 
73,139

 
272

 
1.48

 
 
78,787

 
394

 
2.03

Long-term debt (1)
 
233,654

 
1,393

 
2.39

 
 
237,384

 
1,895

 
3.18

 
 
240,127

 
1,313

 
2.20

Total interest-bearing liabilities (2)
 
1,297,461

 
2,524

 
0.78

 
 
1,290,010

 
2,897

 
0.89

 
 
1,288,801

 
2,512

 
0.79

Noninterest-bearing sources:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing deposits
 
428,937

 
 
 
 
 
 
438,214

 
 
 
 
 
 
404,973

 
 
 
 
Other liabilities
 
186,903

 
 
 
 
 
 
195,123

 
 
 
 
 
 
199,056

 
 
 
 
Shareholders' equity
 
260,317

 
 
 
 
 
 
257,125

 
 
 
 
 
 
245,744

 
 
 
 
Total liabilities and shareholders' equity
 
$
2,173,618

 
 
 
 
 
 
$
2,180,472

 
 
 
 
 
 
$
2,138,574

 
 
 
 
Net interest spread
 
 
 
 
 
1.81
%
 
 
 
 
 
 
1.88
%
 
 
 
 
 
 
1.93
%
Impact of noninterest-bearing sources
 
 
 
 
 
0.24

 
 
 
 
 
 
0.27

 
 
 
 
 
 
0.23

Net interest income/yield on earning assets
 
 
 
$
9,386

 
2.05
%
 
 
 
 
$
9,982

 
2.15
%
 
 
 
 
$
9,626

 
2.16
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
The yield on long-term debt excluding the adjustment on certain trust preferred securities was 2.15 percent for the three months ended December 31, 2015. The yield on long-term debt excluding the adjustment is a non-GAAP financial measure. The Corporation believes the use of this non-GAAP financial measure provides additional clarity in assessing its results.
(2) 
The impact of interest rate risk management derivatives on interest expense is presented below. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest expense on:
 
 
First Quarter 2016
 
 
 
 
Fourth Quarter 2015
 
 
 
 
First Quarter 2015
 
 
Consumer CDs and IRAs
 
 
 
$
6

 
 
 
 
 
 
$
6

 
 
 
 
 
 
$
6

 
 
Negotiable CDs, public funds and other deposits
 
 
 
3

 
 
 
 
 
 
3

 
 
 
 
 
 
3

 
 
Banks located in non-U.S. countries
 
 
 
1

 
 
 
 
 
 
1

 
 
 
 
 
 
1

 
 
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings
 
 
 
162

 
 
 
 
 
 
178

 
 
 
 
 
 
249

 
 
Long-term debt
 
 
 
(737
)
 
 
 
 
 
 
(869
)
 
 
 
 
 
 
(841
)
 
 
Net hedge income on liabilities
 
 
 
$
(565
)
 
 
 
 
 
 
$
(681
)
 
 
 
 
 
 
$
(582
)
 
 


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


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



Bank of America Corporation and Subsidiaries
Debt Securities and Available-for-Sale Marketable Equity Securities
(Dollars in millions)
 
March 31, 2016
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available-for-sale debt securities
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
Agency
$
204,557

 
$
3,257

 
$
(78
)
 
$
207,736

Agency-collateralized mortgage obligations
10,294

 
277

 
(13
)
 
10,558

Commercial
9,989

 
245

 
(1
)
 
10,233

Non-agency residential
2,104

 
202

 
(77
)
 
2,229

Total mortgage-backed securities
226,944

 
3,981

 
(169
)
 
230,756

U.S. Treasury and agency securities
21,732

 
484

 

 
22,216

Non-U.S. securities
6,059

 
26

 
(5
)
 
6,080

Corporate/Agency bonds
242

 
8

 
(1
)
 
249

Other taxable securities, substantially all asset-backed securities
10,284

 
45

 
(98
)
 
10,231

Total taxable securities
265,261

 
4,544

 
(273
)
 
269,532

Tax-exempt securities
14,551

 
72

 
(35
)
 
14,588

Total available-for-sale debt securities
279,812

 
4,616

 
(308
)
 
284,120

Other debt securities carried at fair value
18,378

 
87

 
(252
)
 
18,213

Total debt securities carried at fair value
298,190

 
4,703

 
(560
)
 
302,333

Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities
97,978

 
1,244

 
(147
)
 
99,075

Total debt securities
$
396,168

 
$
5,947

 
$
(707
)
 
$
401,408

Available-for-sale marketable equity securities (1)
$
326

 
$
56

 
$
(11
)
 
$
371

 
 
 
 
 
 
 
 
 
December 31, 2015
Available-for-sale debt securities
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
Agency
$
229,847

 
$
788

 
$
(1,688
)
 
$
228,947

Agency-collateralized mortgage obligations
10,930

 
126

 
(71
)
 
10,985

Commercial
7,176

 
50

 
(61
)
 
7,165

Non-agency residential
3,031

 
218

 
(70
)
 
3,179

Total mortgage-backed securities
250,984

 
1,182

 
(1,890
)
 
250,276

U.S. Treasury and agency securities
25,075

 
211

 
(9
)
 
25,277

Non-U.S. securities
5,743

 
27

 
(3
)
 
5,767

Corporate/Agency bonds
243

 
3

 
(3
)
 
243

Other taxable securities, substantially all asset-backed securities
10,238

 
50

 
(86
)
 
10,202

Total taxable securities
292,283

 
1,473

 
(1,991
)
 
291,765

Tax-exempt securities
13,978

 
63

 
(33
)
 
14,008

Total available-for-sale debt securities
306,261

 
1,536

 
(2,024
)
 
305,773

Other debt securities carried at fair value
16,678

 
103

 
(174
)
 
16,607

Total debt securities carried at fair value
322,939

 
1,639

 
(2,198
)
 
322,380

Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities
84,625

 
271

 
(850
)
 
84,046

Total debt securities
$
407,564

 
$
1,910

 
$
(3,048
)
 
$
406,426

Available-for-sale marketable equity securities (1)
$
326

 
$
99

 
$

 
$
425

 
 
 
 
 
 
 
 
(1) 
Classified in other assets on the Consolidated Balance Sheet.
Other Debt Securities Carried at Fair Value
 
 
 
(Dollars in millions)
March 31
2016
 
December 31
2015
Mortgage-backed securities:
 
 
 
Agency-collateralized mortgage obligations
$
6

 
$
7

Non-agency residential
3,323

 
3,490

Total mortgage-backed securities
3,329

 
3,497

Non-U.S. securities (1)
14,628

 
12,843

Other taxable securities, substantially all asset-backed securities
256

 
267

Total
$
18,213

 
$
16,607

 
 
 
 
(1) 
These securities are primarily used to satisfy certain international regulatory liquidity requirements.

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

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



Bank of America Corporation and Subsidiaries
Quarterly Results by Business Segment and All Other
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2016
 
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy Assets & Servicing
 
All
Other
Net interest income (FTE basis)
 
$
9,386

 
 
$
5,185

 
$
1,489

 
$
2,489

 
$
1,189

 
$
314

 
$
(1,280
)
Card income
 
1,430

 
 
1,211

 
48

 
117

 
10

 

 
44

Service charges
 
1,837

 
 
997

 
19

 
745

 
72

 

 
4

Investment and brokerage services
 
3,182

 
 
69

 
2,536

 
16

 
568

 

 
(7
)
Investment banking income (loss)
 
1,153

 
 
1

 
73

 
636

 
494

 

 
(51
)
Equity investment income
 
43

 
 

 

 

 
13

 

 
30

Trading account profits (losses)
 
1,662

 
 

 
36

 
(2
)
 
1,592

 
(8
)
 
44

Mortgage banking income (loss)
 
433

 
 
122

 

 

 

 
372

 
(61
)
Gains on sales of debt securities
 
226

 
 

 

 

 

 

 
226

Other income (loss)
 
375

 
 
63

 
244

 
397

 
13

 
1

 
(343
)
Total noninterest income
 
10,341

 
 
2,463

 
2,956

 
1,909

 
2,762

 
365

 
(114
)
Total revenue, net of interest expense (FTE basis)
 
19,727

 
 
7,648

 
4,445

 
4,398

 
3,951

 
679

 
(1,394
)
Provision for credit losses
 
997

 
 
560

 
25

 
553

 
9

 
(118
)
 
(32
)
Noninterest expense
 
14,816

 
 
4,266

 
3,250

 
2,159

 
2,432

 
860

 
1,849

Income (loss) before income taxes (FTE basis)
 
3,914

 
 
2,822

 
1,170

 
1,686

 
1,510

 
(63
)
 
(3,211
)
Income tax expense (benefit) (FTE basis)
 
1,234

 
 
1,037

 
430

 
620

 
526

 
(23
)
 
(1,356
)
Net income (loss)
 
$
2,680

 
 
$
1,785

 
$
740

 
$
1,066

 
$
984

 
$
(40
)
 
$
(1,855
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
892,984

 
 
$
214,821

 
$
137,868

 
$
324,552

 
$
69,283

 
$
25,878

 
$
120,582

Total assets (1)
 
2,173,618

 
 
636,995

 
295,576

 
387,661

 
582,226

 
41,821

 
229,339

Total deposits
 
1,198,455

 
 
572,660

 
260,482

 
297,134

 
36,173

 
n/m

 
23,964

Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
901,113

 
 
$
217,620

 
$
138,418

 
$
329,543

 
$
73,446

 
$
25,115

 
$
116,971

Total assets (1)
 
2,185,498

 
 
656,615

 
296,062

 
390,643

 
582,048

 
38,928

 
221,202

Total deposits
 
1,217,261

 
 
592,118

 
260,565

 
298,072

 
34,486

 
n/m

 
23,885

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2015
 
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy Assets & Servicing
 
All
Other
Net interest income (FTE basis)
 
$
9,982

 
 
$
5,058

 
$
1,412

 
$
2,386

 
$
1,131

 
$
348

 
$
(353
)
Card income
 
1,578

 
 
1,313

 
46

 
139

 
19

 

 
61

Service charges
 
1,862

 
 
1,045

 
18

 
730

 
64

 

 
5

Investment and brokerage services
 
3,236

 
 
66

 
2,639

 
20

 
518

 

 
(7
)
Investment banking income (loss)
 
1,272

 
 
1

 
50

 
729

 
532

 

 
(40
)
Equity investment income (loss)
 
177

 
 
39

 

 
(5
)
 
109

 

 
34

Trading account profits (losses)
 
963

 
 

 
44

 
34

 
795

 
(5
)
 
95

Mortgage banking income (loss)
 
262

 
 
133

 
1

 

 
1

 
249

 
(122
)
Gains on sales of debt securities
 
270

 
 

 

 
1

 

 

 
269

Other income (loss)
 
291

 
 
105

 
234

 
457

 
(56
)
 
(4
)
 
(445
)
Total noninterest income
 
9,911

 
 
2,702

 
3,032

 
2,105

 
1,982

 
240

 
(150
)
Total revenue, net of interest expense (FTE basis)
 
19,893

 
 
7,760

 
4,444

 
4,491

 
3,113

 
588

 
(503
)
Provision for credit losses
 
810

 
 
682

 
15

 
233

 
30

 
(10
)
 
(140
)
Noninterest expense
 
14,010

 
 
4,325

 
3,475

 
2,075

 
2,752

 
1,146

 
237

Income (loss) before income taxes (FTE basis)
 
5,073

 
 
2,753

 
954

 
2,183

 
331

 
(548
)
 
(600
)
Income tax expense (benefit) (FTE basis)
 
1,737

 
 
979

 
338

 
805

 
153

 
(198
)
 
(340
)
Net income (loss)
 
$
3,336

 
 
$
1,774

 
$
616

 
$
1,378

 
$
178

 
$
(350
)
 
$
(260
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
886,156

 
 
$
211,126

 
$
135,839

 
$
314,585

 
$
68,835

 
$
27,223

 
$
128,548

Total assets (1)
 
2,180,472

 
 
620,659

 
285,214

 
381,887

 
587,880

 
48,995

 
255,837

Total deposits
 
1,186,051

 
 
557,318

 
251,306

 
307,806

 
37,423

 
n/m

 
22,948

Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
896,983

 
 
$
214,405

 
$
137,847

 
$
319,658

 
$
73,208

 
$
26,521

 
$
125,344

Total assets (1)
 
2,144,316

 
 
636,279

 
296,139

 
382,053

 
549,952

 
47,292

 
232,601

Total deposits
 
1,197,259

 
 
572,738

 
260,893

 
296,162

 
37,256

 
n/m

 
22,919

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

n/m = not meaningful


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


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



Bank of America Corporation and Subsidiaries
Quarterly Results by Business Segment and All Other (continued)
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2015
 
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy Assets & Servicing
 
All
Other
Net interest income (FTE basis)
 
$
9,626

 
 
$
4,872

 
$
1,351

 
$
2,215

 
$
981

 
$
428

 
$
(221
)
Card income
 
1,394

 
 
1,168

 
49

 
100

 
9

 

 
68

Service charges
 
1,764

 
 
966

 
18

 
710

 
65

 

 
5

Investment and brokerage services
 
3,378

 
 
65

 
2,723

 
18

 
573

 

 
(1
)
Investment banking income (loss)
 
1,487

 
 

 
72

 
852

 
630

 

 
(67
)
Equity investment income (loss)
 
27

 
 
(1
)
 

 
9

 
18

 

 
1

Trading account profits (losses)
 
2,247

 
 

 
55

 
64

 
2,131

 
2

 
(5
)
Mortgage banking income (loss)
 
694

 
 
288

 
1

 

 

 
461

 
(56
)
Gains on sales of debt securities
 
268

 
 
1

 
1

 

 
3

 

 
263

Other income (loss)
 
244

 
 
47

 
247

 
434

 
(219
)
 
23

 
(288
)
Total noninterest income
 
11,503

 
 
2,534

 
3,166

 
2,187

 
3,210

 
486

 
(80
)
Total revenue, net of interest expense (FTE basis)
 
21,129

 
 
7,406

 
4,517

 
4,402

 
4,191

 
914

 
(301
)
Provision for credit losses
 
765

 
 
716

 
23

 
96

 
21

 
91

 
(182
)
Noninterest expense
 
15,827

 
 
4,367

 
3,458

 
2,132

 
3,140

 
1,200

 
1,530

Income (loss) before income taxes (FTE basis)
 
4,537

 
 
2,323

 
1,036

 
2,174

 
1,030

 
(377
)
 
(1,649
)
Income tax expense (benefit) (FTE basis)
 
1,440

 
 
862

 
384

 
807

 
353

 
(140
)
 
(826
)
Net income (loss)
 
$
3,097

 
 
$
1,461

 
$
652

 
$
1,367

 
$
677

 
$
(237
)
 
$
(823
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
867,169

 
 
$
199,581

 
$
126,129

 
$
284,298

 
$
56,601

 
$
32,411

 
$
168,149

Total assets (1)
 
2,138,574

 
 
594,580

 
275,130

 
361,771

 
596,806

 
52,713

 
257,574

Total deposits
 
1,130,726

 
 
531,365

 
243,561

 
286,434

 
39,587

 
n/m

 
19,518

Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
872,750

 
 
$
200,153

 
$
127,556

 
$
290,446

 
$
62,627

 
$
31,690

 
$
160,278

Total assets (1)
 
2,143,545

 
 
612,939

 
272,777

 
365,024

 
585,187

 
53,620

 
253,998

Total deposits
 
1,153,168

 
 
549,494

 
244,080

 
290,422

 
38,587

 
n/m

 
19,543

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

n/m = not meaningful


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



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



Bank of America Corporation and Subsidiaries
Consumer Banking Segment Results
(Dollars in millions)
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
 
Net interest income (FTE basis)
$
5,185

 
$
5,058

 
$
5,005

 
$
4,911

 
$
4,872

Noninterest income:
 
 
 
 
 
 
 
 
 
Card income
1,211

 
1,313

 
1,249

 
1,207

 
1,168

Service charges
997

 
1,045

 
1,057

 
1,033

 
966

Mortgage banking income
122

 
133

 
206

 
256

 
288

All other income
133

 
211

 
295

 
118

 
112

Total noninterest income
2,463

 
2,702

 
2,807

 
2,614

 
2,534

Total revenue, net of interest expense (FTE basis)
7,648

 
7,760

 
7,812

 
7,525

 
7,406

 
 
 
 
 
 
 
 
 
 
Provision for credit losses
560

 
682

 
648

 
506

 
716

 
 
 
 
 
 
 
 
 
 
Noninterest expense
4,266

 
4,325

 
4,408

 
4,299

 
4,367

Income before income taxes (FTE basis)
2,822

 
2,753

 
2,756

 
2,720

 
2,323

Income tax expense (FTE basis)
1,037

 
979

 
993

 
1,014

 
862

Net income
$
1,785

 
$
1,774

 
$
1,763

 
$
1,706

 
$
1,461

 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
3.47
%
 
3.43
%
 
3.45
%
 
3.44
%
 
3.54
%
Return on average allocated capital (1)
24

 
24

 
24

 
24

 
20

Efficiency ratio (FTE basis)
55.78

 
55.73

 
56.42

 
57.13

 
58.97

 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
Total loans and leases
$
214,821

 
$
211,126

 
$
206,337

 
$
201,703

 
$
199,581

Total earning assets (2)
601,048

 
584,649

 
576,147

 
572,281

 
558,713

Total assets (2)
636,995

 
620,659

 
612,174

 
608,767

 
594,580

Total deposits
572,660

 
557,318

 
548,896

 
545,454

 
531,365

Allocated capital (1)
30,000

 
29,000

 
29,000

 
29,000

 
29,000

 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
Total loans and leases
$
217,620

 
$
214,405

 
$
208,981

 
$
204,380

 
$
200,153

Total earning assets (2)
620,286

 
599,491

 
578,600

 
575,137

 
576,754

Total assets (2)
656,615

 
636,279

 
615,019

 
610,968

 
612,939

Total deposits
592,118

 
572,738

 
551,540

 
547,346

 
549,494

 
 
 
 
 
 
 
 
 
 
(1) 
Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 40-43.)
(2) 
Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.


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


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



Bank of America Corporation and Subsidiaries
Consumer Banking Quarterly Results
(Dollars in millions)
 
 
First Quarter 2016
 
 
Total Consumer Banking
 
 
Deposits
 
Consumer
Lending
Net interest income (FTE basis)
 
$
5,185

 
 
$
2,659

 
$
2,526

Noninterest income:
 
 
 
 
 
 
 
Card income
 
1,211

 
 
3

 
1,208

Service charges
 
997

 
 
997

 

Mortgage banking income
 
122

 
 

 
122

All other income
 
133

 
 
116

 
17

Total noninterest income
 
2,463

 
 
1,116

 
1,347

Total revenue, net of interest expense (FTE basis)
 
7,648

 
 
3,775

 
3,873

 
 
 
 
 
 
 
 
Provision for credit losses
 
560

 
 
48

 
512

 
 
 
 
 
 
 
 
Noninterest expense
 
4,266

 
 
2,440

 
1,826

Income before income taxes (FTE basis)
 
2,822

 
 
1,287

 
1,535

Income tax expense (FTE basis)
 
1,037

 
 
473

 
564

Net income
 
$
1,785

 
 
$
814

 
$
971

 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
3.47
%
 
 
1.85
%
 
4.84
%
Return on average allocated capital (1)
 
24

 
 
27

 
22

Efficiency ratio (FTE basis)
 
55.78

 
 
64.63

 
47.16

 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Total loans and leases
 
$
214,821

 
 
$
5,963

 
$
208,858

Total earning assets (2)
 
601,048

 
 
576,770

 
210,044

Total assets (2)
 
636,995

 
 
603,565

 
219,196

Total deposits
 
572,660

 
 
571,461

 
n/m

Allocated capital (1)
 
30,000

 
 
12,000

 
18,000

 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
Total loans and leases
 
$
217,620

 
 
$
6,010

 
$
211,610

Total earning assets (2)
 
620,286

 
 
596,196

 
212,718

Total assets (2)
 
656,615

 
 
622,922

 
222,321

Total deposits
 
592,118

 
 
590,829

 
n/m

 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2015
 
 
Total Consumer Banking
 
 
Deposits
 
Consumer
Lending
Net interest income (FTE basis)
 
$
5,058

 
 
$
2,497

 
$
2,561

Noninterest income:
 
 
 
 
 
 
 
Card income
 
1,313

 
 
2

 
1,311

Service charges
 
1,045

 
 
1,045

 

Mortgage banking income
 
133

 
 

 
133

All other income
 
211

 
 
129

 
82

Total noninterest income
 
2,702

 
 
1,176

 
1,526

Total revenue, net of interest expense (FTE basis)
 
7,760

 
 
3,673

 
4,087

 
 
 
 
 
 
 
 
Provision for credit losses
 
682

 
 
54

 
628

 
 
 
 
 
 
 
 
Noninterest expense
 
4,325

 
 
2,488

 
1,837

Income before income taxes (FTE basis)
 
2,753

 
 
1,131

 
1,622

Income tax expense (FTE basis)
 
979

 
 
403

 
576

Net income
 
$
1,774

 
 
$
728

 
$
1,046

 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
3.43
%
 
 
1.77
%
 
4.92
%
Return on average allocated capital (1)
 
24

 
 
24

 
24

Efficiency ratio (FTE basis)
 
55.73

 
 
67.73

 
44.94

 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Total loans and leases
 
$
211,126

 
 
$
5,835

 
$
205,291

Total earning assets (2)
 
584,649

 
 
561,267

 
206,689

Total assets (2)
 
620,659

 
 
588,097

 
215,869

Total deposits
 
557,318

 
 
556,063

 
n/m

Allocated capital (1)
 
29,000

 
 
12,000

 
17,000

 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
Total loans and leases
 
$
214,405

 
 
$
5,927

 
$
208,478

Total earning assets (2)
 
599,491

 
 
576,241

 
209,858

Total assets (2)
 
636,279

 
 
603,580

 
219,307

Total deposits
 
572,738

 
 
571,467

 
n/m

 
 
 
 
 
 
 
 
For footnotes see page 18.


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

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



Bank of America Corporation and Subsidiaries
Consumer Banking Quarterly Results (continued)
(Dollars in millions)
 
 
First Quarter 2015
 
 
Total Consumer Banking
 
 
Deposits
 
Consumer
Lending
Net interest income (FTE basis)
 
$
4,872

 
 
$
2,297

 
$
2,575

Noninterest income:
 
 
 
 
 
 
 
Card income
 
1,168

 
 
3

 
1,165

Service charges
 
966

 
 
966

 

Mortgage banking income
 
288

 
 

 
288

All other income
 
112

 
 
102

 
10

Total noninterest income
 
2,534

 
 
1,071

 
1,463

Total revenue, net of interest expense (FTE basis)
 
7,406

 
 
3,368

 
4,038

 
 
 
 
 
 
 
 
Provision for credit losses
 
716

 
 
63

 
653

 
 
 
 
 
 
 
 
Noninterest expense
 
4,367

 
 
2,452

 
1,915

Income before income taxes (FTE basis)
 
2,323

 
 
853

 
1,470

Income tax expense (FTE basis)
 
862

 
 
317

 
545

Net income
 
$
1,461

 
 
$
536

 
$
925

 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
3.54
%
 
 
1.74
%
 
5.34
%
Return on average allocated capital (1)
20

 
 
18

 
22

Efficiency ratio (FTE basis)
58.97

 
 
72.80

 
47.43

 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Total loans and leases
 
$
199,581

 
 
$
5,879

 
$
193,702

Total earning assets (2)
 
558,713

 
 
535,412

 
195,548

Total assets (2)
 
594,580

 
 
562,195

 
204,632

Total deposits
 
531,365

 
 
530,291

 
n/m

Allocated capital (1)
 
29,000

 
 
12,000

 
17,000

 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
Total loans and leases
 
$
200,153

 
 
$
5,824

 
$
194,329

Total earning assets (2)
 
576,754

 
 
553,451

 
197,264

Total assets (2)
 
612,939

 
 
580,237

 
206,663

Total deposits
 
549,494

 
 
548,308

 
n/m

 
 
 
 
 
 
 
 
(1) 
Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 40-43.)
(2) 
For presentation purposes, in segments or businesses where the total of liabilities and equity exceeds assets, the Corporation allocates assets from All Other to match the segments' and businesses' liabilities and allocated shareholders' equity. As a result, total earning assets and total assets of the businesses may not equal total Consumer Banking.

n/m = not meaningful


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



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



Bank of America Corporation and Subsidiaries
Consumer Banking Key Indicators
(Dollars in millions)
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
 
Average deposit balances
 
 
 
 
 
 
 
 
 
Checking
$
276,611

 
$
267,474

 
$
261,468

 
$
259,006

 
$
250,247

Savings
46,221

 
44,518

 
44,721

 
45,748

 
44,525

MMS
201,616

 
195,756

 
191,358

 
186,750

 
180,078

CDs and IRAs
45,451

 
46,791

 
48,644

 
51,178

 
53,820

Non-U.S. and other
2,761

 
2,779

 
2,705

 
2,772

 
2,695

Total average deposit balances
$
572,660

 
$
557,318

 
$
548,896

 
$
545,454

 
$
531,365

 
 
 
 
 
 
 
 
 
 
Deposit spreads (excludes noninterest costs)
 
 
 
 
 
 
 
 
 
Checking
2.01
%
 
2.02
%
 
2.03
%
 
2.04
%
 
2.03
%
Savings
2.28

 
2.29

 
2.29

 
2.29

 
2.31

MMS
1.24

 
1.24

 
1.23

 
1.22

 
1.23

CDs and IRAs
0.81

 
0.69

 
0.62

 
0.58

 
0.54

Non-U.S. and other
0.67

 
0.54

 
0.48

 
0.44

 
0.42

Total deposit spreads
1.66

 
1.65

 
1.64

 
1.63

 
1.62

 
 
 
 
 
 
 
 
 
 
Client brokerage assets
$
126,921

 
$
122,721

 
$
117,210

 
$
121,961

 
$
118,492

 
 
 
 
 
 
 
 
 
 
Online banking active accounts (units in thousands)
32,647

 
31,674

 
31,627

 
31,365

 
31,523

Mobile banking active users (units in thousands)
19,595

 
18,705

 
18,398

 
17,626

 
17,092

Financial centers
4,689

 
4,726

 
4,741

 
4,789

 
4,835

ATMs
16,003

 
16,038

 
16,062

 
15,992

 
15,903

 
 
 
 
 
 
 
 
 
 
Total U.S. credit card (1)
 
 
 
 
 
 
 
 
 
Loans
 
 
 
 
 
 
 
 
 
Average credit card outstandings
$
87,163

 
$
88,623

 
$
88,201

 
$
87,460

 
$
88,695

Ending credit card outstandings
86,403

 
89,602

 
88,339

 
88,403

 
87,288

Credit quality
 
 
 
 
 
 
 
 
 
Net charge-offs
$
587

 
$
563

 
$
546

 
$
584

 
$
621

 
2.71
%
 
2.52
%
 
2.46
%
 
2.68
%
 
2.84
%
30+ delinquency
$
1,448

 
$
1,575

 
$
1,514

 
$
1,486

 
$
1,581

 
1.68
%
 
1.76
%
 
1.71
%
 
1.68
%
 
1.81
%
90+ delinquency
$
743

 
$
789

 
$
721

 
$
742

 
$
795

 
0.86
%
 
0.88
%
 
0.82
%
 
0.84
%
 
0.91
%
Other Total U.S. credit card indicators (1)
 
 
 
 
 
 
 
 
 
Gross interest yield
9.32
%
 
9.15
%
 
9.15
%
 
9.08
%
 
9.27
%
Risk-adjusted margin
9.05

 
9.79

 
9.51

 
8.89

 
9.02

New accounts (in thousands)
1,208

 
1,260

 
1,257

 
1,295

 
1,161

Purchase volumes
$
51,154

 
$
58,752

 
$
56,472

 
$
55,976

 
$
50,178

 
 
 
 
 
 
 
 
 
 
Debit card data
 
 
 
 
 
 
 
 
 
Purchase volumes
$
69,147

 
$
70,754

 
$
69,288

 
$
70,754

 
$
66,898

 
 
 
 
 
 
 
 
 
 
For footnotes see page 20.


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



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



Bank of America Corporation and Subsidiaries
Consumer Banking Key Indicators (continued)
(Dollars in millions)
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
 
Loan production (2):
 
 
 
 
 
 
 
 
 
Total (3):
 
 
 
 
 
 
 
 
 
First mortgage
$
12,623

 
$
13,543

 
$
13,712

 
$
15,962

 
$
13,713

Home equity
3,805

 
3,495

 
3,140

 
3,209

 
3,217

Consumer Banking:
 
 
 
 
 
 
 
 
 
First mortgage
$
9,078

 
$
9,732

 
$
10,026

 
$
11,265

 
$
9,854

Home equity
3,515

 
3,191

 
2,840

 
2,939

 
3,017

 
 
 
 
 
 
 
 
 
 
Mortgage banking income
 
 
 
 
 
 
 
 
 
Consumer Lending:
 
 
 
 
 
 
 
 
 
Core production revenue
$
137

 
$
148

 
$
221

 
$
273

 
$
300

Representations and warranties provision
2

 
2

 
2

 
1

 
6

Other consumer mortgage banking income (4)
(17
)
 
(17
)
 
(17
)
 
(18
)
 
(18
)
Total Consumer Lending mortgage banking income
122

 
133

 
206

 
256

 
288

Legacy Assets & Servicing mortgage banking income (5)
372

 
249

 
265

 
682

 
461

Eliminations (6)
(61
)
 
(120
)
 
(64
)
 
63

 
(55
)
Total consolidated mortgage banking income
$
433

 
$
262

 
$
407

 
$
1,001

 
$
694

 
 
 
 
 
 
 
 
 
 
(1) 
In addition to the U.S. credit card portfolio in Consumer Banking, the remaining U.S. credit card portfolio is in GWIM.
(2) 
The above 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.
(3) 
In addition to loan production in Consumer Banking, there is also first mortgage and home equity loan production in GWIM.
(4) 
Primarily intercompany charge for loan servicing activities provided by Legacy Assets & Servicing.
(5) 
Amounts for Legacy Assets & Servicing are included in this Consumer Banking table to show the components of consolidated mortgage banking income.
(6) 
Includes the effect of transfers of mortgage loans from Consumer Banking to the ALM portfolio included in All Other, intercompany charges for loan servicing and net gains or losses on intercompany trades related to mortgage servicing rights risk management.


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


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



Bank of America Corporation and Subsidiaries
Global Wealth & Investment Management Segment Results
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
 
 
 
 
Net interest income (FTE basis)
$
1,489

 
$
1,412

 
$
1,377

 
$
1,359

 
$
1,351

Noninterest income:
 
 
 
 
 
 
 
 
 
Investment and brokerage services
2,536

 
2,639

 
2,682

 
2,749

 
2,723

All other income
420

 
393

 
409

 
465

 
443

Total noninterest income
2,956

 
3,032

 
3,091

 
3,214

 
3,166

Total revenue, net of interest expense (FTE basis)
4,445

 
4,444

 
4,468

 
4,573

 
4,517

 
 
 
 
 
 
 
 
 
 
Provision for credit losses
25

 
15

 
(2
)
 
15

 
23

 


 


 


 


 


Noninterest expense
3,250

 
3,475

 
3,444

 
3,459

 
3,458

Income before income taxes (FTE basis)
1,170

 
954

 
1,026

 
1,099

 
1,036

Income tax expense (FTE basis)
430

 
338

 
369

 
410

 
384

Net income
$
740

 
$
616

 
$
657

 
$
689

 
$
652

 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
2.14
%
 
2.08
%
 
2.12
%
 
2.17
%
 
2.13
%
Return on average allocated capital (1)
23

 
20

 
22

 
23

 
22

Efficiency ratio (FTE basis)
73.12

 
78.19

 
77.08

 
75.62

 
76.56

 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
Total loans and leases
$
137,868

 
$
135,839

 
$
133,168

 
$
130,270

 
$
126,129

Total earning assets (2)
279,471

 
269,135

 
257,344

 
251,528

 
257,625

Total assets (2)
295,576

 
285,214

 
274,192

 
268,835

 
275,130

Total deposits
260,482

 
251,306

 
243,980

 
239,974

 
243,561

Allocated capital (1)
13,000

 
12,000

 
12,000

 
12,000

 
12,000

 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
Total loans and leases
$
138,418

 
$
137,847

 
$
134,630

 
$
132,377

 
$
127,556

Total earning assets (2)
279,980

 
279,465

 
262,870

 
250,720

 
255,840

Total assets (2)
296,062

 
296,139

 
279,155

 
267,021

 
272,777

Total deposits
260,565

 
260,893

 
246,172

 
237,624

 
244,080

 
 
 
 
 
 
 
 
 
 
(1) 
Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 40-43.)
(2)
Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.


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


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



Bank of America Corporation and Subsidiaries
Global Wealth & Investment Management Key Indicators
(Dollars in millions, except as noted)
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
Revenue by Business
 
 
 
 
 
 
 
 
 
Merrill Lynch Global Wealth Management
$
3,647

 
$
3,665

 
$
3,694

 
$
3,792

 
$
3,748

U.S. Trust
773

 
756

 
756

 
764

 
751

Other (1)
25

 
23

 
18

 
17

 
18

Total revenue, net of interest expense (FTE basis)
$
4,445

 
$
4,444

 
$
4,468

 
$
4,573

 
$
4,517

 
 
 
 
 
 
 
 
 
 
Client Balances by Business, at period end
 
 
 
 
 
 
 
 
 
Merrill Lynch Global Wealth Management
$
1,996,872

 
$
1,985,310

 
$
1,942,623

 
$
2,051,514

 
$
2,043,447

U.S. Trust
390,262

 
388,604

 
375,751

 
388,829

 
391,105

Other (1)
77,751

 
82,929

 
78,110

 
81,318

 
75,295

Total client balances
$
2,464,885

 
$
2,456,843

 
$
2,396,484

 
$
2,521,661

 
$
2,509,847

 
 
 
 
 
 
 
 
 
 
Client Balances by Type, at period end
 
 
 
 
 
 
 
 
 
Long-term assets under management (2)
$
812,916

 
$
817,938

 
$
798,887

 
$
849,046

 
$
841,966

Liquidity assets under management (3)
77,747

 
82,925

 
78,106

 
81,314

 
75,291

Assets under management
890,663

 
900,863

 
876,993

 
930,360

 
917,257

Brokerage assets
1,056,752

 
1,040,938

 
1,026,355

 
1,079,084

 
1,076,277

Assets in custody
115,537

 
113,239

 
109,196

 
138,774

 
141,273

Deposits
260,565

 
260,893

 
246,172

 
237,624

 
244,080

Loans and leases (4)
141,368

 
140,910

 
137,768

 
135,819

 
130,960

Total client balances
$
2,464,885

 
$
2,456,843

 
$
2,396,484

 
$
2,521,661

 
$
2,509,847

 
 
 
 
 
 
 
 
 
 
Assets Under Management Rollforward
 
 
 
 
 
 
 
 
 
Assets under management, beginning balance
$
900,863

 
$
876,993

 
$
930,360

 
$
917,257

 
$
902,872

Net long-term client flows
(599
)
 
6,746

 
4,448

 
8,593

 
14,654

Net liquidity client flows
(3,820
)
 
4,813

 
(3,210
)
 
6,023

 
(1,493
)
Market valuation/other
(5,781
)
 
12,311

 
(54,605
)
 
(1,513
)
 
1,224

Total assets under management, ending balance
$
890,663

 
$
900,863

 
$
876,993

 
$
930,360

 
$
917,257

 
 
 
 
 
 
 
 
 
 
Associates, at period end (5)
 
 
 
 
 
 
 
 
 
Number of financial advisors
16,672

 
16,686

 
16,522

 
16,314

 
16,163

Total wealth advisors
18,111

 
18,130

 
17,967

 
17,735

 
17,593

Total client-facing professionals
20,569

 
20,600

 
20,442

 
20,228

 
20,110

 
 
 
 
 
 
 
 
 
 
Merrill Lynch Global Wealth Management Metric
 
 
 
 
 
 
 
 
 
Financial advisor productivity (6) (in thousands)
$
983

 
$
995

 
$
1,006

 
$
1,049

 
$
1,041

 
 
 
 
 
 
 
 
 
 
U.S. Trust Metric, at period end
 
 
 
 
 
 
 
 
 
Client-facing professionals (FTE basis)
2,184

 
2,182

 
2,178

 
2,164

 
2,176

 
 
 
 
 
 
 
 
 
 
(1) 
Includes the results of BofA Global Capital Management, the cash management division of Bank of America, and certain administrative items.
(2) 
Defined as assets under advisory and discretion of GWIM in which the duration of the investment strategy is longer than one year.
(3) 
Defined as assets under advisory and discretion of GWIM in which the investment strategy seeks current income, while maintaining liquidity and capital preservation. The duration of these strategies is primarily less than one year.
(4) 
Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.
(5) 
Includes financial advisors in the Consumer Banking segment of 2,259, 2,187, 2,050, 2,048 and 1,978 at March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively.
(6) 
Financial advisor productivity is defined as annualized Merrill Lynch Global Wealth Management revenue, excluding the allocation of certain ALM activities, divided by the total number of financial advisors (excluding financial advisors in the Consumer Banking segment).


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


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



Bank of America Corporation and Subsidiaries
Global Banking Segment Results
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
 
 
 
 
Net interest income (FTE basis)
$
2,489

 
$
2,386

 
$
2,301

 
$
2,181

 
$
2,215

Noninterest income:
 
 
 
 
 
 
 
 
 
Service charges
745

 
730

 
746

 
728

 
710

Investment banking fees
636

 
729

 
752

 
777

 
852

All other income
528

 
646

 
523

 
561

 
625

Total noninterest income
1,909

 
2,105

 
2,021

 
2,066

 
2,187

Total revenue, net of interest expense (FTE basis)
4,398

 
4,491

 
4,322

 
4,247

 
4,402

 
 
 
 
 
 
 
 
 
 
Provision for credit losses
553

 
233

 
179

 
177

 
96

 
 
 
 
 
 
 
 
 
 
Noninterest expense
2,159

 
2,075

 
2,150

 
2,073

 
2,132

Income before income taxes (FTE basis)
1,686

 
2,183

 
1,993

 
1,997

 
2,174

Income tax expense (FTE basis)
620

 
805

 
716

 
746

 
807

Net income
$
1,066

 
$
1,378

 
$
1,277

 
$
1,251

 
$
1,367

 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
2.97
%
 
2.85
%
 
2.85
%
 
2.81
%
 
2.88
%
Return on average allocated capital (1)
12

 
16

 
14

 
14

 
16

Efficiency ratio (FTE basis)
49.09

 
46.18

 
49.75

 
48.81

 
48.45

 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
Total loans and leases
$
324,552

 
$
314,585

 
$
304,631

 
$
295,395

 
$
284,298

Total earnings assets (2)
337,296

 
332,055

 
320,328

 
311,675

 
311,724

Total assets (2)
387,661

 
381,887

 
370,246

 
361,867

 
361,771

Total deposits
297,134

 
307,806

 
296,321

 
288,117

 
286,434

Allocated capital (1)
37,000

 
35,000

 
35,000

 
35,000

 
35,000

 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
Total loans and leases
$
329,543

 
$
319,658

 
$
309,612

 
$
301,831

 
$
290,446

Total earnings assets (2)
341,294

 
330,737

 
321,700

 
317,724

 
313,569

Total assets (2)
390,643

 
382,053

 
372,363

 
367,052

 
365,024

Total deposits
298,072

 
296,162

 
297,644

 
292,261

 
290,422

 
 
 
 
 
 
 
 
 
 
(1) 
Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 40-43.)
(2)
Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.


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


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



Bank of America Corporation and Subsidiaries
Global Banking Key Indicators
(Dollars in millions)
 
First
Quarter
2016

Fourth
Quarter
2015

Third
Quarter
2015

Second
Quarter
2015

First
Quarter
2015
 

Investment Banking fees (1)
 
 
 
 
 
 
 
 
 
Advisory (2)
$
305

 
$
355

 
$
365

 
$
247

 
$
387

Debt issuance
265

 
265

 
325

 
371

 
335

Equity issuance
66

 
109

 
62

 
159

 
130

Total Investment Banking fees (3)
$
636

 
$
729

 
$
752

 
$
777

 
$
852

 
 
 
 
 
 
 
 
 
 
Business Lending
 
 
 
 
 
 
 
 
 
Corporate
$
1,013

 
$
1,017

 
$
947

 
$
849

 
$
1,021

Commercial
1,005

 
1,071

 
982

 
1,002

 
910

Business Banking
97

 
82

 
91

 
89

 
89

Total Business Lending revenue
$
2,115

 
$
2,170

 
$
2,020

 
$
1,940

 
$
2,020

 
 
 
 
 
 
 
 
 
 
Global Transaction Services
 
 
 
 
 
 
 
 
 
Corporate
$
713

 
$
720

 
$
712

 
$
704

 
$
656

Commercial
695

 
682

 
676

 
638

 
647

Business Banking
185

 
184

 
181

 
170

 
165

Total Global Transaction Services revenue
$
1,593

 
$
1,586

 
$
1,569

 
$
1,512

 
$
1,468

 
 
 
 
 
 
 
 
 
 
Average deposit balances
 
 
 
 
 
 
 
 
 
Interest-bearing
$
65,719

 
$
66,227

 
$
64,960

 
$
65,504

 
$
65,982

Noninterest-bearing
231,415

 
241,579

 
231,361

 
222,613

 
220,452

Total average deposits
$
297,134

 
$
307,806

 
$
296,321

 
$
288,117

 
$
286,434

 
 
 
 
 
 
 
 
 
 
Loan spread
1.65
%
 
1.60
%
 
1.61
%
 
1.61
%
 
1.68
%
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
$
553

 
$
233

 
$
179

 
$
177

 
$
96

 
 
 
 
 
 
 
 
 
 
Credit quality (4, 5)
 
 
 
 
 
 
 
 
 
Reservable utilized criticized exposure
$
16,923

 
$
14,397

 
$
11,243

 
$
11,031

 
$
10,069

 
4.78
%
 
4.18
%
 
3.36
%
 
3.38
%
 
3.20
%
 
 
 
 
 
 
 
 
 
 
Nonperforming loans, leases and foreclosed properties
$
1,316

 
$
935

 
$
898

 
$
1,179

 
$
979

 
0.40
%
 
0.29
%
 
0.29
%
 
0.39
%
 
0.34
%
 
 
 
 
 
 
 
 
 
 
Average loans and leases by product
 
 
 
 
 
 
 
 
 
U.S. commercial
$
182,544

 
$
175,111

 
$
167,692

 
$
162,580

 
$
156,137

Commercial real estate
48,908

 
48,521

 
46,904

 
44,066

 
42,163

Commercial lease financing
22,074

 
21,467

 
21,074

 
20,491

 
20,217

Non-U.S. commercial
71,014

 
69,471

 
68,947

 
68,242

 
65,764

Other
12

 
15

 
14

 
16

 
17

Total average loans and leases
$
324,552

 
$
314,585

 
$
304,631

 
$
295,395

 
$
284,298

 
 
 
 
 
 
 
 
 
 
Total Corporation Investment Banking fees
 
 
 
 
 
 
 
 
 
Advisory (2)
$
346

 
$
408

 
$
391

 
$
276

 
$
428

Debt issuance
669

 
617

 
748

 
887

 
781

Equity issuance
188

 
286

 
188

 
417

 
345

Total investment banking fees including self-led deals
1,203

 
1,311

 
1,327

 
1,580

 
1,554

Self-led deals
(50
)
 
(39
)
 
(40
)
 
(54
)
 
(67
)
Total Investment Banking fees
$
1,153

 
$
1,272

 
$
1,287

 
$
1,526

 
$
1,487

 
 
 
 
 
 
 
 
 
 
(1) 
Investment banking fees represent total investment banking fees for Global Banking inclusive of self-led deals and fees included within Business Lending.
(2) 
Advisory includes fees on debt and equity advisory and mergers and acquisitions.
(3) 
Investment banking fees represent only the fee component in Global Banking and do not include certain less significant items shared with the Investment Banking Group under internal revenue sharing agreements.
(4) 
Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure is on an end-of-period basis and is also shown as a percentage of total commercial utilized reservable criticized exposure, including loans and leases, standby letters of credit, financial guarantees, commercial letters of credit and bankers' acceptances.
(5) 
Nonperforming loans, leases and foreclosed properties are on an end-of-period basis. The nonperforming ratio is nonperforming assets divided by loans, leases and foreclosed properties.


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

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



Bank of America Corporation and Subsidiaries
Investment Banking Product Rankings
 
 
 
Three Months Ended March 31, 2016
 
Global
 
U.S.
 
Product
Ranking
 
Market
Share
 
Product
Ranking
 
Market
Share
Net investment banking revenue
4

 
6.3
%
 
3

 
9.4
%
Announced mergers and acquisitions
5

 
13.0

 
4

 
18.1

Equity capital markets
4

 
5.1

 
3

 
12.7

Debt capital markets
3

 
6.0

 
2

 
10.0

High-yield corporate debt
3

 
7.7

 
3

 
9.1

Leveraged loans
1

 
11.2

 
1

 
14.2

Mortgage-backed securities
1

 
13.8

 
1

 
15.6

Asset-backed securities
1

 
11.0

 
1

 
14.5

Convertible debt
7

 
4.8

 
3

 
13.2

Common stock underwriting
3

 
5.2

 
3

 
12.6

Investment-grade corporate debt
2

 
6.1

 
2

 
11.0

Syndicated loans
1

 
10.3

 
1

 
14.3

Source: Dealogic data as of April 1, 2016. Figures above include self-led transactions.
Rankings based on deal volumes except net investment banking revenue rankings which reflect fees.
Debt capital markets excludes loans but includes agencies.
Mergers and acquisitions fees included in investment banking revenues reflect 10 percent fee credit at announcement and 90 percent fee credit at completion as per Dealogic.
Mergers and acquisitions volume rankings are for announced transactions and provide credit to all investment banks advising either side of the transaction.
Each advisor receives full credit for the deal amount unless advising a minor stakeholder.
Highlights
Global top 3 rankings in:
 
 
High-yield corporate debt
 
Common stock underwriting
Leveraged loans
 
Investment-grade corporate debt
Mortgage-backed securities
 
Syndicated loans
Asset-backed securities
 
Debt capital markets
 
 
 
U.S. top 3 rankings in:
 
 
High-yield corporate debt
 
Common stock underwriting
Leveraged loans
 
Investment-grade corporate debt
Mortgage-backed securities
 
Syndicated loans
Asset-backed securities
 
Equity capital markets
Convertible debt
 
Debt capital markets

Top 3 rankings excluding self-led deals:
Global:
High-yield corporate debt, Leveraged loans, Mortgage-backed securities, Asset-backed securities, Common stock underwriting, Investment-grade corporate debt, Syndicated loans, Debt capital markets

U.S.:
High-yield corporate debt, Leveraged loans, Mortgage-backed securities, Asset-backed securities, Convertible debt, Common stock underwriting, Investment-grade corporate debt, Syndicated loans, Equity capital markets, Debt capital markets

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



Bank of America Corporation and Subsidiaries
Global Markets Segment Results
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
Net interest income (FTE basis)
$
1,189

 
$
1,131

 
$
1,103

 
$
996

 
$
981

Noninterest income:
 
 
 
 
 
 
 
 
 
Investment and brokerage services
568

 
518

 
574

 
556

 
573

Investment banking fees
494

 
532

 
521

 
718

 
630

Trading account profits
1,592

 
795

 
1,468

 
1,700

 
2,131

All other income (loss)
108

 
137

 
89

 
(16
)
 
(124
)
Total noninterest income
2,762

 
1,982

 
2,652

 
2,958

 
3,210

Total revenue, net of interest expense (FTE basis) (1)
3,951

 
3,113

 
3,755

 
3,954

 
4,191

 
 
 
 
 
 
 
 
 
 
Provision for credit losses
9

 
30

 
42

 
6

 
21

 
 
 
 
 
 
 
 
 
 
Noninterest expense
2,432

 
2,752

 
2,681

 
2,731

 
3,140

Income before income taxes (FTE basis)
1,510

 
331

 
1,032

 
1,217

 
1,030

Income tax expense (FTE basis)
526

 
153

 
219

 
418

 
353

Net income
$
984

 
$
178

 
$
813

 
$
799

 
$
677

 
 
 
 
 
 
 
 
 
 
Return on average allocated capital (2)
11
%
 
2
%
 
9
%
 
9
%
 
8
%
Efficiency ratio (FTE basis)
61.56

 
88.38

 
71.41

 
69.05

 
74.92

 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
Total trading-related assets (3)
$
407,752

 
$
415,956

 
$
431,246

 
$
442,463

 
$
443,930

Total loans and leases
69,283

 
68,835

 
66,349

 
61,819

 
56,601

Total earning assets (3)
419,144

 
421,211

 
438,033

 
434,519

 
433,061

Total assets
582,226

 
587,880

 
595,408

 
601,289

 
596,806

Total deposits
36,173

 
37,423

 
36,968

 
39,604

 
39,587

Allocated capital (2)
37,000

 
35,000

 
35,000

 
35,000

 
35,000

 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
Total trading-related assets (3)
$
408,309

 
$
373,950

 
$
407,210

 
$
406,378

 
$
424,996

Total loans and leases
73,446

 
73,208

 
70,159

 
65,962

 
62,627

Total earning assets (3)
423,118

 
385,157

 
419,889

 
407,156

 
419,714

Total assets
582,048

 
549,952

 
577,880

 
579,370

 
585,187

Total deposits
34,486

 
37,256

 
35,943

 
39,245

 
38,587

 
 
 
 
 
 
 
 
 
 
Trading-related assets (average)
 
 
 
 
 
 
 
 
 
Trading account securities
$
187,930

 
$
195,275

 
$
196,685

 
$
197,116

 
$
193,491

Reverse repurchases
85,501

 
86,652

 
103,389

 
109,581

 
115,309

Securities borrowed
80,807

 
82,385

 
75,786

 
81,091

 
78,713

Derivative assets
53,514

 
51,644

 
55,386

 
54,675

 
56,417

Total trading-related assets (3)
$
407,752

 
$
415,956

 
$
431,246

 
$
442,463

 
$
443,930

 
 
 
 
 
 
 
 
 
 
(1) 
Substantially all of Global Markets total revenue is sales and trading revenue and investment banking fees, with a small portion related to certain revenue sharing agreements with other business segments. For additional sales and trading revenue information, see page 27.
(2) 
Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 40-43.)
(3) 
Trading-related assets include derivative assets, which are considered non-earning assets.



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



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



Bank of America Corporation and Subsidiaries
Global Markets Key Indicators
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
First
Quarter
2016
 
Fourth
Quarter
2015

Third
Quarter
2015

Second
Quarter
2015

First
Quarter
2015
 
Sales and trading revenue (1)
 
 
 
 
 
 
 
 
 
Fixed income, currency and commodities
$
2,404

 
$
1,560

 
$
2,012

 
$
1,945

 
$
2,352

Equities
1,037

 
874

 
1,148

 
1,176

 
1,137

Total sales and trading revenue
$
3,441

 
$
2,434

 
$
3,160

 
$
3,121

 
$
3,489

 
 
 
 
 
 
 
 
 
 
Sales and trading revenue, excluding net debit valuation adjustment (2)
 
 
 
 
 
 
 
 
 
Fixed income, currency and commodities
$
2,264

 
$
1,750

 
$
1,994

 
$
2,144

 
$
2,744

Equities
1,023

 
882

 
1,154

 
1,176

 
1,146

Total sales and trading revenue, excluding net debit valuation adjustment
$
3,287

 
$
2,632

 
$
3,148

 
$
3,320

 
$
3,890

 
 
 
 
 
 
 
 
 
 
Sales and trading revenue breakdown
 
 
 
 
 
 
 
 
 
Net interest income
$
1,072

 
$
1,027

 
$
1,006

 
$
891

 
$
893

Commissions
559

 
510

 
568

 
550

 
567

Trading
1,581

 
803

 
1,468

 
1,683

 
2,128

Other
229

 
94

 
118

 
(3
)
 
(99
)
Total sales and trading revenue
$
3,441

 
$
2,434

 
$
3,160

 
$
3,121

 
$
3,489

 
 
 
 
 
 
 
 
 
 
(1) 
Includes Global Banking sales and trading revenue of $160 million for the first quarter of 2016, and $128 million, $86 million, $133 million and $75 million for the fourth, third, second and first quarters of 2015, respectively.
(2) 
For this presentation, sales and trading revenue excludes net debit valuation adjustment (DVA) gains (losses) which include net DVA on derivatives, as well as amortization of own credit portion of purchase discount and realized DVA on structured liabilities for all periods. Sales and trading revenue excluding net DVA gains (losses) represents a non-GAAP financial measure.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.

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



Bank of America Corporation and Subsidiaries
Legacy Assets & Servicing Segment Results
(Dollars in millions, except as noted)
 
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
 
Net interest income (FTE basis)
 
$
314

 
$
348

 
$
382

 
$
416

 
$
428

Noninterest income:
 
 
 
 
 
 
 
 
 
 
Mortgage banking income
 
372

 
249

 
265

 
682

 
461

All other income (loss)
 
(7
)
 
(9
)
 
193

 
(10
)
 
25

Total noninterest income
 
365

 
240

 
458

 
672

 
486

Total revenue, net of interest expense (FTE basis)
 
679

 
588

 
840

 
1,088

 
914

 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
(118
)
 
(10
)
 
6

 
57

 
91

 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
860

 
1,146

 
1,141

 
957

 
1,200

Income (loss) before income taxes (FTE basis)
 
(63
)
 
(548
)
 
(307
)
 
74

 
(377
)
Income tax expense (benefit) (FTE basis)
 
(23
)
 
(198
)
 
(112
)
 
27

 
(140
)
Net income (loss)
 
$
(40
)
 
$
(350
)
 
$
(195
)
 
$
47

 
$
(237
)
 
 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
3.82
%
 
3.48
%
 
3.68
%
 
3.94
%
 
4.19
%
Return on average allocated capital (1)
 
n/m

 
n/m

 
n/m

 
1

 
n/m

Efficiency ratio (FTE basis)
 
n/m

 
n/m

 
n/m

 
88.03

 
n/m

 
 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
25,878

 
$
27,223

 
$
29,074

 
$
30,897

 
$
32,411

Total earning assets (2)
 
33,080

 
39,686

 
41,168

 
42,337

 
41,468

Total assets (2)
 
41,821

 
48,995

 
50,708

 
52,518

 
52,713

Allocated capital (1)
 
23,000

 
24,000

 
24,000

 
24,000

 
24,000

 
 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
25,115

 
$
26,521

 
$
27,982

 
$
30,024

 
$
31,690

Total earning assets (2)
 
30,560

 
37,783

 
40,171

 
40,874

 
42,672

Total assets (2)
 
38,928

 
47,292

 
49,064

 
50,928

 
53,620

 
 
 
 
 
 
 
 
 
 
 
Period end (in billions)
 
 
 
 
 
 
 
 
 
 
Mortgage serviced portfolio (3)
 
$
551.0

 
$
565.0

 
$
580.0

 
$
610.0

 
$
669.0

 
 
 
 
 
 
 
 
 
 
 
(1) 
Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 40-43.)
(2) 
Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity
(3) 
Includes servicing of residential mortgage loans, home equity lines of credit and home equity loans.


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


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



Bank of America Corporation and Subsidiaries
Legacy Assets & Servicing Key Indicators
(Dollars in millions, except as noted)
 
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
 
Mortgage servicing rights at fair value rollforward:
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
$
2,680

 
$
2,699

 
$
3,201

 
$
3,108

 
$
3,271

 
Net additions
 
57

 
49

 
53

 
(174
)
 
105

 
Amortization of expected cash flows (1)
 
(171
)
 
(174
)
 
(179
)
 
(187
)
 
(198
)
 
Other changes in mortgage servicing rights fair value (2)
 
(414
)
 
106

 
(376
)
 
454

 
(70
)
 
Balance, end of period (3)
 
$
2,152

 
$
2,680

 
$
2,699

 
$
3,201

 
$
3,108

 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized mortgage servicing rights (% of loans serviced for investors)
 
58

bps
71

bps
69

bps
78

bps
68

bps
Mortgage loans serviced for investors (in billions)
 
$
368

 
$
378

 
$
391

 
$
409

 
$
459

 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage banking income
 
 
 
 
 
 
 
 
 
 
 
Servicing income:
 
 
 
 
 
 
 
 
 
 
 
Servicing fees
 
$
330

 
$
352

 
$
345

 
$
392

 
$
430

 
Amortization of expected cash flows (1)
 
(171
)
 
(174
)
 
(179
)
 
(187
)
 
(198
)
 
Fair value changes of mortgage servicing rights, net of risk management activities used to hedge certain market risks (4)
 
126

 
(9
)
 
82

 
193

 
250

 
Total net servicing income
 
285

 
169

 
248

 
398

 
482

 
Representations and warranties provision
 
(44
)
 
(9
)
 
(77
)
 
204

 
(90
)
 
Other mortgage banking income (5)
 
131

 
89

 
94

 
80

 
69

 
Total Legacy Assets & Servicing mortgage banking income
 
$
372

 
$
249

 
$
265

 
$
682

 
$
461

 
 
(1) 
Represents the net change in fair value of the mortgage servicing rights asset due to the recognition of modeled cash flows.
(2) 
These amounts reflect the changes in modeled mortgage servicing rights fair value primarily due to observed changes in interest rates, volatility, spreads and the shape of the forward swap curve and periodic adjustments to valuation based on third-party price discovery. In addition, these amounts reflect periodic adjustments to the valuation model to reflect changes in the modeled relationship between inputs and their impact on projected cash flows, changes in certain cash flow assumptions such as cost to service and ancillary income per loan and the impact of periodic recalibrations of the model to reflect changes in the relationship between market interest rate spreads and projected cash flows.
(3) 
Does not include certain non-U.S. residential mortgage MSR balances, which are recorded in Global Markets.
(4) 
Includes gains and losses on sales of mortgage servicing rights.
(5) 
Consists primarily of revenue from sales of repurchased loans that had returned to performing status.


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


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



Bank of America Corporation and Subsidiaries
All Other Results (1)
(Dollars in millions)
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
 
 
 
 
Net interest income (FTE basis)
$
(1,280
)
 
$
(353
)
 
$
(471
)
 
$
821

 
$
(221
)
Noninterest income:
 
 
 
 
 
 
 
 
 
Card income
44

 
61

 
67

 
65

 
68

Equity investment income (loss)
30

 
34

 
(46
)
 
11

 
1

Gains on sales of debt securities
226

 
269

 
385

 
162

 
263

All other loss
(414
)
 
(514
)
 
(393
)
 
(267
)
 
(412
)
Total noninterest income
(114
)
 
(150
)
 
13

 
(29
)
 
(80
)
Total revenue, net of interest expense (FTE basis)
(1,394
)
 
(503
)
 
(458
)
 
792

 
(301
)
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
(32
)
 
(140
)
 
(67
)
 
19

 
(182
)
 
 
 
 
 
 
 
 
 
 
Noninterest expense
1,849

 
237

 
116

 
439

 
1,530

Income (loss) before income taxes (FTE basis)
(3,211
)
 
(600
)
 
(507
)
 
334

 
(1,649
)
Income tax benefit (FTE basis)
(1,356
)
 
(340
)
 
(513
)
 
(308
)
 
(826
)
Net income (loss)
$
(1,855
)
 
$
(260
)
 
$
6

 
$
642

 
$
(823
)
 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
Total loans and leases
$
120,582

 
$
128,548

 
$
137,870

 
$
156,094

 
$
168,149

Total assets (2)
229,339

 
255,837

 
266,265

 
258,690

 
257,574

Total deposits
23,964

 
22,948

 
22,686

 
22,596

 
19,518

 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
Total loans and leases
$
116,971

 
$
125,344

 
$
130,712

 
$
146,622

 
$
160,278

Total equity investments
4,205

 
4,297

 
4,364

 
4,655

 
4,701

Total assets (3)
221,202

 
232,601

 
259,525

 
273,695

 
253,998

Total deposits
23,885

 
22,919

 
21,846

 
23,042

 
19,543

 
 
 
 
 
 
 
 
 
 
(1) 
All Other consists of ALM activities, equity investments, the international consumer card business, liquidating businesses, residual expense allocations and other. ALM activities encompass certain residential mortgages, debt securities, interest rate and foreign currency risk management activities, the impact of certain allocation methodologies and accounting hedge ineffectiveness. Certain residential mortgage loans that are managed by Legacy Assets & Servicing are held in All Other. The results of certain ALM activities are allocated to our business segments. Equity investments include our merchant services joint venture as well as Global Principal Investments which is comprised of a portfolio of equity, real estate and other alternative investments.
(2) 
Includes elimination of segments' excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $517.9 billion, $508.9 billion, $494.7 billion, $493.5 billion and $502.2 billion for the first quarter of 2016, and the fourth, third, second and first quarters of 2015, respectively.
(3) 
Includes elimination of segments' excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $531.6 billion, $519.1 billion, $494.0 billion, $488.9 billion and $512.9 billion at March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively.


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


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



Bank of America Corporation and Subsidiaries
 
 
 
 
 
Outstanding Loans and Leases
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
March 31
2016
 
December 31
2015
 
March 31
2015
Consumer
 
 
 
 
 
Residential mortgage (1)
$
184,440

 
$
187,911

 
$
207,925

Home equity
73,771

 
75,948

 
83,571

U.S. credit card
86,403

 
89,602

 
87,288

Non-U.S. credit card
9,977

 
9,975

 
9,660

Direct/Indirect consumer (2) 
90,609

 
88,795

 
82,141

Other consumer (3) 
2,176

 
2,067

 
1,842

Total consumer loans excluding loans accounted for under the fair value option
447,376

 
454,298

 
472,427

Consumer loans accounted for under the fair value option (4) 
1,946

 
1,871

 
2,055

Total consumer
449,322

 
456,169

 
474,482

 
 
 
 
 
 
Commercial
 
 
 
 
 
U.S. commercial (5)
273,636

 
265,647

 
238,307

Commercial real estate (6) 
58,060

 
57,199

 
49,446

Commercial lease financing
20,957

 
21,352

 
19,262

Non-U.S. commercial
92,872

 
91,549

 
84,842

Total commercial loans excluding loans accounted for under the fair value option
445,525

 
435,747

 
391,857

Commercial loans accounted for under the fair value option (4) 
6,266

 
5,067

 
6,411

Total commercial
451,791

 
440,814

 
398,268

Total loans and leases (7)
$
901,113

 
$
896,983

 
$
872,750

 
 
 
 
 
 
(1) 
Includes pay option loans of $2.2 billion, $2.3 billion and $2.9 billion at March 31, 2016, December 31, 2015 and March 31, 2015, respectively. The Corporation no longer originates pay option loans.
(2) 
Includes auto and specialty lending loans of $45.4 billion, $42.6 billion and $38.9 billion, unsecured consumer lending loans of $774 million, $886 million and $1.3 billion, U.S. securities-based lending loans of $39.2 billion, $39.8 billion and $36.6 billion, non-U.S. consumer loans of $3.7 billion, $3.9 billion and $4.0 billion, student loans of $547 million, $564 million and $611 million and other consumer loans of $1.0 billion, $1.0 billion and $743 million at March 31, 2016, December 31, 2015 and March 31, 2015, respectively.
(3) 
Includes consumer finance loans of $538 million, $564 million and $646 million, consumer leases of $1.5 billion, $1.4 billion and $1.1 billion and consumer overdrafts of $154 million, $146 million and $120 million at March 31, 2016, December 31, 2015 and March 31, 2015, respectively.
(4) 
Consumer loans accounted for under the fair value option were residential mortgage loans of $1.6 billion, $1.6 billion and $1.9 billion and home equity loans of $348 million, $250 million and $205 million at March 31, 2016, December 31, 2015 and March 31, 2015, respectively. Commercial loans accounted for under the fair value option were U.S. commercial loans of $2.6 billion, $2.3 billion and $2.0 billion and non-U.S. commercial loans of $3.7 billion, $2.8 billion and $4.5 billion at March 31, 2016, December 31, 2015 and March 31, 2015, respectively.
(5) 
Includes U.S. small business commercial loans, including card-related products, of $12.9 billion, $12.9 billion and $13.2 billion at March 31, 2016, December 31, 2015 and March 31, 2015, respectively.
(6) 
Includes U.S. commercial real estate loans of $54.5 billion, $53.6 billion and $46.7 billion and non-U.S. commercial real estate loans of $3.5 billion, $3.5 billion and $2.8 billion at March 31, 2016, December 31, 2015 and March 31, 2015, respectively.
(7) 
Beginning in the first quarter of 2016, the Corporation classifies operating leases in other assets on the Consolidated Balance Sheet. For December 31, 2015 and March 31, 2015, $6.0 billion and $5.2 billion of operating leases were reclassified from loans and leases to other assets to conform to this presentation. Additionally, amounts related to these leases were reclassified from net interest income to other noninterest income and other general operating expense on the Consolidated Statement of Income.

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


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



Bank of America Corporation and Subsidiaries
Quarterly Average Loans and Leases by Business Segment and All Other
(Dollars in millions)
 
First Quarter 2016
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy
Assets &
Servicing
 
All 
Other
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
186,980

 
 
$
24,939

 
$
56,852

 
$
4

 
$

 
$
790

 
$
104,395

Home equity
75,328

 
 
42,616

 
5,319

 
4

 
303

 
25,080

 
2,006

U.S. credit card
87,163

 
 
84,207

 
2,956

 

 

 

 

Non-U.S. credit card
9,822

 
 

 

 

 

 

 
9,822

Direct/Indirect consumer
89,342

 
 
44,676

 
44,102

 
4

 

 

 
560

Other consumer
2,138

 
 
1,577

 
5

 

 

 
(1
)
 
557

Total consumer
450,773

 
 
198,015

 
109,234

 
12

 
303

 
25,869

 
117,340

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
270,511

 
 
16,783

 
26,227

 
182,544

 
40,503

 
9

 
4,445

Commercial real estate
57,271

 
 
22

 
2,342

 
48,908

 
5,889

 

 
110

Commercial lease financing
21,077

 
 

 
3

 
22,074

 
336

 

 
(1,336
)
Non-U.S. commercial
93,352

 
 
1

 
62

 
71,014

 
22,252

 

 
23

Total commercial
442,211

 
 
16,806

 
28,634

 
324,540

 
68,980

 
9

 
3,242

Total loans and leases
$
892,984

 
 
$
214,821

 
$
137,868

 
$
324,552

 
$
69,283

 
$
25,878

 
$
120,582

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2015
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy
Assets &
Servicing
 
All 
Other
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
189,650

 
 
$
21,156

 
$
55,604

 
$
5

 
$

 
$
831

 
$
112,054

Home equity
77,109

 
 
43,035

 
5,500

 
4

 
235

 
26,380

 
1,955

U.S. credit card
88,623

 
 
85,602

 
3,020

 

 

 

 
1

Non-U.S. credit card
10,155

 
 

 

 

 

 

 
10,155

Direct/Indirect consumer
87,858

 
 
43,129

 
44,147

 
4

 

 

 
578

Other consumer
2,039

 
 
1,453

 
6

 
2

 

 
(1
)
 
579

Total consumer
455,434

 
 
194,375

 
108,277

 
15

 
235

 
27,210

 
125,322

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
261,727

 
 
16,729

 
25,114

 
175,111

 
40,326

 
12

 
4,435

Commercial real estate
56,126

 
 
23

 
2,222

 
48,521

 
5,228

 

 
132

Commercial lease financing
20,422

 
 

 
3

 
21,467

 
297

 

 
(1,345
)
Non-U.S. commercial
92,447

 
 
(1
)
 
223

 
69,471

 
22,749

 
1

 
4

Total commercial
430,722

 
 
16,751

 
27,562

 
314,570

 
68,600

 
13

 
3,226

Total loans and leases
$
886,156

 
 
$
211,126

 
$
135,839

 
$
314,585

 
$
68,835

 
$
27,223

 
$
128,548

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2015
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy
Assets &
Servicing
 
All 
Other
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
215,030

 
 
$
11,151

 
$
51,647

 
$
7

 
$

 
$
920

 
$
151,305

Home equity
84,915

 
 
45,331

 
6,112

 
4

 
197

 
31,467

 
1,804

U.S. credit card
88,695

 
 
85,577

 
3,117

 

 

 

 
1

Non-U.S. credit card
10,002

 
 

 

 

 

 

 
10,002

Direct/Indirect consumer
80,713

 
 
39,293

 
40,619

 
4

 

 

 
797

Other consumer
1,847

 
 
1,166

 
17

 
2

 
1

 

 
661

Total consumer
481,202

 
 
182,518

 
101,512

 
17

 
198

 
32,387

 
164,570

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
234,907

 
 
17,035

 
22,572

 
156,137

 
34,747

 
24

 
4,392

Commercial real estate
48,234

 
 
28

 
1,908

 
42,163

 
3,951

 

 
184

Commercial lease financing
19,271

 
 

 
4

 
20,217

 
450

 

 
(1,400
)
Non-U.S. commercial
83,555

 
 

 
133

 
65,764

 
17,255

 

 
403

Total commercial
385,967

 
 
17,063

 
24,617

 
284,281

 
56,403

 
24

 
3,579

Total loans and leases
$
867,169

 
 
$
199,581

 
$
126,129

 
$
284,298

 
$
56,601

 
$
32,411

 
$
168,149

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


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

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



Bank of America Corporation and Subsidiaries
Commercial Credit Exposure by Industry (1, 2, 3)
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
Commercial Utilized
 
Total Commercial Committed
 
March 31
2016
 
December 31
2015
 
March 31
2015
 
March 31
2016
 
December 31
2015
 
March 31
2015
Diversified financials
$
77,650

 
$
79,496

 
$
65,579

 
$
124,704

 
$
128,436

 
$
111,306

Real estate (4)
62,867

 
61,759

 
57,930

 
87,438

 
87,650

 
78,357

Retailing
39,392

 
37,675

 
34,612

 
63,687

 
63,975

 
58,701

Capital goods
33,571

 
30,790

 
29,254

 
63,036

 
58,583

 
54,171

Healthcare equipment and services
37,555

 
35,134

 
31,636

 
62,650

 
57,901

 
49,022

Government and public education
46,030

 
44,835

 
42,894

 
54,303

 
53,133

 
51,066

Banking
44,939

 
45,952

 
46,539

 
51,163

 
53,825

 
51,732

Materials
23,511

 
24,012

 
24,586

 
45,321

 
46,013

 
46,503

Energy
21,849

 
21,257

 
22,174

 
43,494

 
43,811

 
45,416

Food, beverage and tobacco
19,561

 
18,316

 
17,100

 
39,535

 
43,164

 
35,083

Consumer services
25,381

 
24,084

 
21,987

 
39,232

 
37,058

 
34,094

Commercial services and supplies
21,643

 
19,552

 
18,473

 
33,761

 
32,045

 
30,623

Utilities
12,372

 
11,396

 
10,559

 
28,864

 
27,849

 
25,679

Transportation
19,753

 
19,369

 
18,050

 
27,355

 
27,371

 
25,655

Media
12,852

 
12,833

 
11,615

 
25,759

 
24,194

 
21,596

Technology hardware and equipment
6,362

 
6,337

 
5,158

 
23,777

 
24,734

 
14,125

Individuals and trusts
16,152

 
17,992

 
16,723

 
21,134

 
23,176

 
21,568

Pharmaceuticals and biotechnology
6,067

 
6,302

 
5,956

 
17,607

 
16,472

 
16,800

Software and services
8,256

 
6,617

 
5,542

 
16,882

 
18,362

 
15,052

Automobiles and components
4,952

 
4,804

 
5,203

 
11,317

 
11,329

 
10,479

Telecommunication services
5,038

 
4,717

 
3,991

 
11,290

 
10,645

 
10,407

Consumer durables and apparel
6,289

 
6,053

 
6,457

 
11,033

 
11,165

 
10,827

Insurance, including monolines
4,941

 
5,095

 
4,758

 
10,592

 
10,728

 
10,402

Food and staples retailing
4,504

 
4,351

 
3,812

 
9,330

 
9,439

 
7,482

Religious and social organizations
4,440

 
4,526

 
4,692

 
6,073

 
5,929

 
6,215

Other
5,820

 
6,309

 
7,249

 
10,971

 
15,510

 
12,704

Total commercial credit exposure by industry
$
571,747

 
$
559,563

 
$
522,529

 
$
940,308

 
$
942,497

 
$
855,065

Net credit default protection purchased on total commitments (5)
 
 
 
 
 
 
$
(7,078
)
 
$
(6,677
)
 
$
(6,720
)
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held-for-sale, commercial letters of credit, bankers' acceptances, securitized assets, foreclosed properties and other collateral acquired. Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by cash collateral of $42.4 billion, $41.9 billion and $52.7 billion at March 31, 2016, December 31, 2015 and March 31, 2015, respectively. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $22.3 billion, $23.3 billion and $21.8 billion which consists primarily of other marketable securities at March 31, 2016, December 31, 2015 and March 31, 2015, respectively.
(2) 
Total utilized and total committed exposure includes loans and letters of credit accounted for under the fair value option and are comprised of loans outstanding of $6.3 billion, $5.1 billion and $6.4 billion and issued letters of credit at notional value of $303 million, $290 million and $469 million at March 31, 2016, December 31, 2015 and March 31, 2015, respectively. In addition, total committed exposure includes unfunded loan commitments at notional value of $9.3 billion, $10.6 billion and $8.4 billion at March 31, 2016, December 31, 2015 and March 31, 2015, respectively.
(3) 
Includes U.S. small business commercial exposure.
(4) 
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 borrowers' or counterparties' primary business activity using operating cash flows and primary source of repayment as key factors.
(5) 
Represents net notional credit protection purchased.


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



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



Bank of America Corporation and Subsidiaries
Net Credit Default Protection by Maturity Profile (1)
 
 
 
 
 
 
 
March 31
2016
 
December 31
2015
Less than or equal to one year
 
40
%
 
39
%
Greater than one year and less than or equal to five years
 
58

 
59

Greater than five years
 
2

 
2

Total net credit default protection
 
100
%
 
100
%
(1) 
To mitigate the cost of purchasing credit protection, credit exposure can be added by selling credit protection. The distribution of maturities for net credit default protection purchased is shown in this table.


Net Credit Default Protection by Credit Exposure Debt Rating (1)
(Dollars in millions)
 
 
March 31, 2016
 
December 31, 2015
Ratings (2, 3)
 
Net Notional (4)
 
Percent of Total
 
Net Notional (4)
 
Percent of Total
A
 
$
(810
)
 
11.4
%
 
$
(752
)
 
11.3
%
BBB
 
(3,272
)
 
46.2

 
(3,030
)
 
45.4

BB
 
(1,863
)
 
26.3

 
(2,090
)
 
31.3

B
 
(1,052
)
 
14.9

 
(634
)
 
9.5

CCC and below
 
(45
)
 
0.6

 
(139
)
 
2.1

NR (5)
 
(36
)
 
0.6

 
(32
)
 
0.4

Total net credit default protection
 
$
(7,078
)
 
100.0
%
 
$
(6,677
)
 
100.0
%
(1) 
To mitigate the cost of purchasing credit protection, credit exposure can be added by selling credit protection. The distribution of debt rating for net notional credit default protection purchased is shown as a negative and the net notional credit protection sold is shown as a positive amount.
(2) 
Ratings are refreshed on a quarterly basis.
(3) 
Ratings of BBB- or higher are considered to meet the definition of investment grade.
(4) 
Represents net credit default protection (purchased) sold.
(5) 
NR is comprised of index positions held and any names that have not been rated.


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


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



Bank of America Corporation and Subsidiaries
Top 20 Non-U.S. Countries Exposure
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Loans and Loan Equivalents (1)
 
Unfunded Loan Commitments
 
Net Counterparty Exposure (2)
 
Securities/
Other
Investments (3)
 
Country Exposure at March 31
2016
 
Hedges and Credit Default Protection (4)
 
Net Country Exposure at
March 31
2016 (5)
 
Increase (Decrease) from
December 31
2015
United Kingdom
$
30,687

 
$
14,715

 
$
7,171

 
$
4,020

 
$
56,593

 
$
(5,126
)
 
$
51,467

 
$
(1,779
)
Canada
5,917

 
6,720

 
2,159

 
3,054

 
17,850

 
(1,126
)
 
16,724

 
1,992

Brazil
9,669

 
404

 
1,003

 
4,349

 
15,425

 
(213
)
 
15,212

 
(438
)
Japan
14,259

 
570

 
1,842

 
1,175

 
17,846

 
(3,207
)
 
14,639

 
275

Germany
9,252

 
5,344

 
2,597

 
2,760

 
19,953

 
(5,769
)
 
14,184

 
780

France
3,171

 
4,536

 
2,106

 
5,807

 
15,620

 
(4,869
)
 
10,751

 
2,065

India
6,688

 
245

 
471

 
3,588

 
10,992

 
(253
)
 
10,739

 
385

Australia
5,216

 
2,184

 
1,020

 
2,096

 
10,516

 
(309
)
 
10,207

 
662

China
7,906

 
616

 
1,049

 
1,093

 
10,664

 
(627
)
 
10,037

 
(437
)
Hong Kong
5,828

 
255

 
871

 
577

 
7,531

 
(21
)
 
7,510

 
(79
)
South Korea
4,281

 
757

 
939

 
1,837

 
7,814

 
(628
)
 
7,186

 
328

Netherlands
3,403

 
2,797

 
789

 
1,423

 
8,412

 
(1,697
)
 
6,715

 
(919
)
Switzerland
3,293

 
2,969

 
412

 
705

 
7,379

 
(1,425
)
 
5,954

 
(309
)
Mexico
3,283

 
1,102

 
246

 
1,061

 
5,692

 
(258
)
 
5,434

 
380

Italy
3,470

 
967

 
875

 
976

 
6,288

 
(1,231
)
 
5,057

 
(251
)
Singapore
1,955

 
216

 
632

 
1,726

 
4,529

 
(36
)
 
4,493

 
(236
)
Turkey
3,297

 
117

 
83

 
31

 
3,528

 
(260
)
 
3,268

 
128

United Arab Emirates
2,001

 
204

 
1,039

 
43

 
3,287

 
(64
)
 
3,223

 
197

Israel
172

 
2,499

 
91

 
237

 
2,999

 

 
2,999

 
249

Spain
1,589

 
532

 
275

 
1,091

 
3,487

 
(766
)
 
2,721

 
(342
)
Total top 20 non-U.S. countries exposure
$
125,337

 
$
47,749

 
$
25,670

 
$
37,649

 
$
236,405

 
$
(27,885
)
 
$
208,520

 
$
2,651

(1) 
Includes loans, leases, and other extensions of credit and funds, including letters of credit and due from placements, which have not been reduced by collateral, hedges or credit default protection. Funded loans and loan equivalents are reported net of charge-offs but prior to any allowance for loan and lease losses.
(2) 
Net counterparty exposure includes the fair value of derivatives, including the counterparty risk associated with credit default swaps, and secured financing transactions. Derivative exposures are presented net of $31.3 billion in collateral, which is predominantly cash, pledged under legally enforceable master netting agreements. Secured financing transaction exposures are presented net of eligible cash or securities pledged as collateral. The notional amount of reverse repurchase transactions was $84.1 billion. Counterparty exposure is not presented net of hedges or credit default protection.
(3) 
Long securities exposures are netted on a single-name basis to, but not below, zero by short exposures and net credit default swaps purchased, consisting of single-name and net indexed and tranched credit default swaps.
(4) 
Represents credit default protection purchased, net of credit default protection sold, which is used to mitigate the Corporation's risk to country exposures as listed, consisting of net single-name and net indexed and tranched credit default swaps. Amounts are calculated based on the credit default swaps notional amount assuming a zero recovery rate less any fair value receivable or payable.
(5) 
Represents country exposure less hedges and credit default protection purchased, net of credit default protection sold.


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



This information is preliminary and based on company data available at the time of the presentation.
35



Bank of America Corporation and Subsidiaries
Nonperforming Loans, Leases and Foreclosed Properties
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
March 31
2016
 
December 31
2015
 
September 30
2015
 
June 30
2015
 
March 31
2015
Residential mortgage
 
$
3,976

 
$
4,803

 
$
5,242

 
$
5,985

 
$
6,421

Home equity
 
3,244

 
3,337

 
3,429

 
3,563

 
3,759

Direct/Indirect consumer
 
26

 
24

 
25

 
26

 
28

Other consumer
 
1

 
1

 
1

 
1

 
1

Total consumer
 
7,247

 
8,165

 
8,697

 
9,575

 
10,209

U.S. commercial
 
1,236

 
867

 
836

 
869

 
680

Commercial real estate
 
91

 
93

 
108

 
126

 
132

Commercial lease financing
 
29

 
12

 
17

 
19

 
16

Non-U.S. commercial
 
165

 
158

 
56

 
80

 
79

 
 
1,521

 
1,130

 
1,017

 
1,094

 
907

U.S. small business commercial
 
82

 
82

 
85

 
78

 
89

Total commercial
 
1,603

 
1,212

 
1,102

 
1,172

 
996

Total nonperforming loans and leases
 
8,850

 
9,377

 
9,799

 
10,747

 
11,205

Foreclosed properties (1)
 
431

 
459

 
537

 
818

 
896

Total nonperforming loans, leases and foreclosed properties (2, 3, 4)
 
$
9,281

 
$
9,836

 
$
10,336

 
$
11,565

 
$
12,101

 
 
 
 
 
 
 
 
 
 
 
Fully-insured home loans past due 30 days or more and still accruing
 
$
8,207

 
$
9,855

 
$
10,467

 
$
11,871

 
$
12,743

Consumer credit card past due 30 days or more and still accruing
 
1,590

 
1,721

 
1,662

 
1,650

 
1,749

Other loans past due 30 days or more and still accruing
 
3,219

 
3,603

 
3,415

 
3,423

 
3,513

Total loans past due 30 days or more and still accruing (3, 5, 6)
 
$
13,016

 
$
15,179

 
$
15,544

 
$
16,944

 
$
18,005

 
 
 
 
 
 
 
 
 
 
 
Fully-insured home loans past due 90 days or more and still accruing
 
$
6,334

 
$
7,150

 
$
7,616

 
$
8,917

 
$
9,912

Consumer credit card past due 90 days or more and still accruing
 
820

 
865

 
799

 
828

 
883

Other loans past due 90 days or more and still accruing
 
193

 
235

 
203

 
195

 
173

Total loans past due 90 days or more and still accruing (3, 5, 6)
 
$
7,347

 
$
8,250

 
$
8,618

 
$
9,940

 
$
10,968

 
 
 
 
 
 
 
 
 
 
 
Nonperforming loans, leases and foreclosed properties/Total assets (7)
 
0.43
%
 
0.46
%
 
0.48
%
 
0.54
%
 
0.57
%
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties (7)
 
1.04

 
1.10

 
1.18

 
1.32

 
1.40

Nonperforming loans and leases/Total loans and leases (7)
 
0.99

 
1.05

 
1.12

 
1.23

 
1.30

 
 
 
 
 
 
 
 
 
 
 
Commercial utilized reservable criticized exposure (8)
 
$
18,577

 
$
15,896

 
$
13,028

 
$
12,932

 
$
11,901

Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure (8)
 
3.87
%
 
3.38
%
 
2.85
%
 
2.92
%
 
2.79
%
Total commercial utilized criticized exposure/Commercial utilized exposure (8)
 
3.82

 
3.28

 
2.93

 
3.08

 
2.99

 
 
 
 
 
 
 
 
 
 
 
(1) 
Foreclosed property balances do not include properties insured by certain government-guaranteed loans, principally FHA-insured loans, that entered foreclosure of $1.4 billion, $1.4 billion, $1.3 billion, $1.3 billion and $1.2 billion at March 31, 2016, December 31, 2015September 30, 2015June 30, 2015 and March 31, 2015, respectively.
(2) 
Balances do not include past due consumer credit card, consumer loans secured by real estate where repayments are insured by the Federal Housing Administration and individually insured long-term stand-by agreements (fully-insured home loans), and in general, other consumer and commercial loans not secured by real estate.
(3) 
Balances do not include purchased credit-impaired loans even though the customer may be contractually past due. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan.
(4) Balances do not include the following:
 
March 31
2016
 
December 31
2015
 
September 30
2015
 
June 30
2015
 
March 31
2015
Nonperforming loans held-for-sale
 
$
265

 
$
227

 
$
274

 
$
298

 
$
344

Nonperforming loans accounted for under the fair value option
 
312

 
306

 
321

 
339

 
380

Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010
 
36

 
38

 
49

 
72

 
86

(5) 
Balances do not include loans held-for-sale past due 30 days or more and still accruing of $3 million, $24 million, $73 million, $42 million and $125 million at March 31, 2016, December 31, 2015September 30, 2015June 30, 2015 and March 31, 2015, respectively, and loans held-for-sale past due 90 days or more and still accruing of $0, $0, $0, $0 and $44 million at March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively. At March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, there were $120 million, $127 million, $142 million, $141 million and $132 million, respectively, of loans accounted for under the fair value option past due 30 days or more and still accruing interest.
(6) 
These balances are excluded from total nonperforming loans, leases and foreclosed properties.
(7) 
Total assets and total loans and leases do not include loans accounted for under the fair value option of $8.2 billion, $6.9 billion, $7.2 billion, $7.6 billion and $8.5 billion at March 31, 2016, December 31, 2015September 30, 2015June 30, 2015 and March 31, 2015, respectively.
(8) 
Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure excludes loans held-for-sale, exposure accounted for under the fair value option and other nonreservable exposure.


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


This information is preliminary and based on company data available at the time of the presentation.
36



Bank of America Corporation and Subsidiaries
Nonperforming Loans, Leases and Foreclosed Properties Activity (1)
 (Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
Nonperforming Consumer Loans and Leases:
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
$
8,165

 
$
8,697

 
$
9,575

 
$
10,209

 
$
10,819

Additions to nonperforming loans and leases:
 
 
 
 
 
 
 
 
 
 
New nonperforming loans and leases
 
951

 
1,027

 
1,029

 
1,424

 
1,469

Reductions to nonperforming loans and leases:
 
 
 
 
 
 
 
 
 
 
Paydowns and payoffs
 
(133
)
 
(214
)
 
(262
)
 
(289
)
 
(253
)
Sales
 
(823
)
 
(314
)
 
(447
)
 
(542
)
 
(371
)
Returns to performing status (2)
 
(441
)
 
(490
)
 
(722
)
 
(631
)
 
(867
)
Charge-offs (3)
 
(395
)
 
(450
)
 
(375
)
 
(484
)
 
(460
)
Transfers to foreclosed properties
 
(77
)
 
(91
)
 
(101
)
 
(112
)
 
(128
)
Total net reductions to nonperforming loans and leases
 
(918
)
 
(532
)
 
(878
)
 
(634
)
 
(610
)
Total nonperforming consumer loans and leases, end of period
 
7,247

 
8,165

 
8,697

 
9,575

 
10,209

Foreclosed properties
 
421

 
444

 
479

 
553

 
632

Nonperforming consumer loans, leases and foreclosed properties, end of period
 
$
7,668

 
$
8,609

 
$
9,176

 
$
10,128

 
$
10,841

 
 
 
 
 
 
 
 
 
 
 
Nonperforming Commercial Loans and Leases (4):
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
$
1,212

 
$
1,102

 
$
1,172

 
$
996

 
$
1,113

Additions to nonperforming loans and leases:
 
 
 
 
 
 
 
 
 
 
New nonperforming loans and leases
 
697

 
456

 
205

 
419

 
287

Advances
 
9

 
8

 
11

 
15

 
2

Reductions to nonperforming loans and leases:
 
 
 
 
 
 
 
 
 
 
Paydowns
 
(120
)
 
(133
)
 
(145
)
 
(103
)
 
(110
)
Sales
 
(6
)
 
(27
)
 

 
(65
)
 
(16
)
Return to performing status (5)
 
(47
)
 
(32
)
 
(47
)
 
(27
)
 
(24
)
Charge-offs
 
(142
)
 
(162
)
 
(93
)
 
(56
)
 
(51
)
Transfers to foreclosed properties
 

 

 
(1
)
 
(7
)
 
(205
)
Total net additions (reductions) to nonperforming loans and leases
 
391

 
110

 
(70
)
 
176

 
(117
)
Total nonperforming commercial loans and leases, end of period
 
1,603

 
1,212

 
1,102

 
1,172

 
996

Foreclosed properties
 
10

 
15

 
58

 
265

 
264

Nonperforming commercial loans, leases and foreclosed properties, end of period
 
$
1,613

 
$
1,227

 
$
1,160

 
$
1,437

 
$
1,260

 
 
 
 
 
 
 
 
 
 
 
(1) 
For amounts excluded from nonperforming loans, leases and foreclosed properties, see footnotes to Nonperforming Loans, Leases and Foreclosed Properties table on page 36.
(2) 
Consumer loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Certain troubled debt restructurings are classified as nonperforming at the time of restructuring and may only be returned to performing status after considering the borrower's sustained repayment performance for a reasonable period, generally six months.
(3) 
Our policy is not to classify consumer credit card and non-bankruptcy related consumer loans not secured by real estate as nonperforming; therefore, the charge-offs on these loans have no impact on nonperforming activity and, accordingly, are excluded from this table.
(4) 
Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming.
(5) 
Commercial loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Troubled debt restructurings are generally classified as performing after a sustained period of demonstrated payment performance.


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


This information is preliminary and based on company data available at the time of the presentation.
37



Bank of America Corporation and Subsidiaries
Quarterly Net Charge-offs and Net Charge-off Ratios (1, 2) 
(Dollars in millions)
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
Net Charge-offs
Amount
 
Percent
 
Amount
 
Percent
 
Amount
 
Percent
 
Amount
 
Percent
 
Amount
 
Percent
Residential mortgage (3)
$
91

 
0.20
 %
 
$
73

 
0.15
%
 
$
26

 
0.05
 %
 
$
177

 
0.35
 %
 
$
197

 
0.37
 %
Home equity
112

 
0.60

 
193

 
0.99

 
120

 
0.60

 
151

 
0.73

 
172

 
0.82

U.S. credit card
587

 
2.71

 
563

 
2.52

 
546

 
2.46

 
584

 
2.68

 
621

 
2.84

Non-U.S. credit card
45

 
1.85

 
46

 
1.78

 
47

 
1.83

 
51

 
2.03

 
44

 
1.80

Direct/Indirect consumer
34

 
0.15

 
29

 
0.13

 
25

 
0.12

 
24

 
0.11

 
34

 
0.17

Other consumer
48

 
9.07

 
54

 
10.63

 
57

 
11.21

 
33

 
7.00

 
49

 
10.88

Total consumer
917

 
0.82

 
958

 
0.84

 
821

 
0.71

 
1,020

 
0.87

 
1,117

 
0.95

U.S. commercial (4)
65

 
0.10

 
81

 
0.13

 
52

 
0.09

 
(1
)
 

 
7

 
0.01

Commercial real estate
(6
)
 
(0.04
)
 
4

 
0.03

 
(10
)
 
(0.08
)
 
(4
)
 
(0.03
)
 
5

 
0.04

Commercial lease financing
(2
)
 
(0.05
)
 
1

 
0.02

 
3

 
0.07

 

 

 
5

 
0.11

Non-U.S. commercial
42

 
0.19

 
45

 
0.20

 
9

 
0.04

 
2

 
0.01

 
(2
)
 
(0.01
)
 
99

 
0.09

 
131

 
0.13

 
54

 
0.05

 
(3
)
 

 
15

 
0.02

U.S. small business commercial
52

 
1.64

 
55

 
1.68

 
57

 
1.72

 
51

 
1.56

 
62

 
1.90

Total commercial
151

 
0.14

 
186

 
0.17

 
111

 
0.11

 
48

 
0.05

 
77

 
0.08

Total net charge-offs
$
1,068

 
0.48

 
$
1,144

 
0.52

 
$
932

 
0.43

 
$
1,068

 
0.49

 
$
1,194

 
0.56

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
By Business Segment and All Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Banking
$
753

 
1.41
 %
 
$
753

 
1.41
%
 
$
715

 
1.37
 %
 
$
726

 
1.44
 %
 
$
806

 
1.64
 %
Global Wealth & Investment Management
5

 
0.01

 
20

 
0.06

 
17

 
0.05

 
17

 
0.05

 
18

 
0.06

Global Banking
104

 
0.13

 
137

 
0.17

 
53

 
0.07

 
(2
)
 

 
6

 
0.01

Legacy Assets & Servicing
67

 
1.07

 
122

 
1.82

 
74

 
1.05

 
99

 
1.32

 
122

 
1.56

All Other
139

 
0.47

 
112

 
0.35

 
73

 
0.21

 
228

 
0.59

 
242

 
0.59

Total net charge-offs
$
1,068

 
0.48

 
$
1,144

 
0.52

 
$
932

 
0.43

 
$
1,068

 
0.49

 
$
1,194

 
0.56

 
(1) 
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option during the period for each loan and lease category. Excluding the purchased credit-impaired loan portfolio, total annualized net charge-offs as a percentage of total average loans and leases outstanding were 0.49, 0.53, 0.43, 0.50 and 0.58 for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively.
(2) 
Excludes write-offs of purchased credit-impaired loans of $105 million, $82 million, $148 million, $290 million and $288 million for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively. Including the write-offs of purchased credit-impaired loans, total annualized net charge-offs and purchased credit-impaired write-offs as a percentage of total average loans and leases outstanding were 0.53, 0.55, 0.49, 0.63 and 0.70 for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively.
(3) 
Includes charge-offs on nonperforming loan sales of $42 million for the three months ended March 31, 2016, and nonperforming loan sales recoveries and other recoveries of $8 million, $57 million, $22 million and $40 million for the three months ended December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively.
(4) 
Excludes U.S. small business commercial loans.


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

This information is preliminary and based on company data available at the time of the presentation.
38



Bank of America Corporation and Subsidiaries
Allocation of the Allowance for Credit Losses by Product Type
(Dollars in millions)
 
 
March 31, 2016
 
December 31, 2015
 
March 31, 2015
Allowance for loan and lease losses
 
Amount
 
Percent
of
Total
 
Percent of
Loans and
Leases
Outstanding (1, 2)
 
Amount
 
Percent
of
Total
 
Percent of
Loans and
Leases
Outstanding (1, 2)
 
Amount
 
Percent
of
Total
 
Percent of
Loans and
Leases
Outstanding (1, 2)
Residential mortgage
 
$
1,312

 
10.87
%
 
0.71
%
 
$
1,500

 
12.26
%
 
0.80
%
 
$
2,426

 
17.74
%
 
1.17
%
Home equity
 
2,144

 
17.76

 
2.91

 
2,414

 
19.73

 
3.18

 
2,824

 
20.65

 
3.38

U.S. credit card
 
2,800

 
23.20

 
3.24

 
2,927

 
23.93

 
3.27

 
3,252

 
23.78

 
3.73

Non-U.S. credit card
 
253

 
2.10

 
2.54

 
274

 
2.24

 
2.75

 
343

 
2.51

 
3.55

Direct/Indirect consumer
 
200

 
1.66

 
0.22

 
223

 
1.82

 
0.25

 
282

 
2.06

 
0.34

Other consumer
 
49

 
0.40

 
2.24

 
47

 
0.38

 
2.27

 
52

 
0.38

 
2.79

Total consumer
 
6,758

 
55.99

 
1.51

 
7,385

 
60.36

 
1.63

 
9,179

 
67.12

 
1.94

U.S. commercial (3)
 
3,423

 
28.36

 
1.25

 
2,964

 
24.23

 
1.12

 
2,633

 
19.25

 
1.11

Commercial real estate
 
924

 
7.66

 
1.59

 
967

 
7.90

 
1.69

 
1,031

 
7.54

 
2.09

Commercial lease financing
 
133

 
1.10

 
0.63

 
164

 
1.34

 
0.60

 
150

 
1.10

 
0.61

Non-U.S. commercial
 
831

 
6.89

 
0.89

 
754

 
6.17

 
0.82

 
683

 
4.99

 
0.80

Total commercial (4) 
 
5,311

 
44.01

 
1.19

 
4,849

 
39.64

 
1.11

 
4,497

 
32.88

 
1.15

Allowance for loan and lease losses
 
12,069

 
100.00
%
 
1.35

 
12,234

 
100.00
%
 
1.37

 
13,676

 
100.00
%
 
1.58

Reserve for unfunded lending commitments
 
627

 
 
 
 
 
646

 
 
 
 
 
537

 
 
 
 
Allowance for credit losses
 
$
12,696

 
 
 
 
 
$
12,880

 
 
 
 
 
$
14,213

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Quality Indicators
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan and lease losses/Total loans and leases (2)
 
 
 
1.35
%
 
 
 
 
 
1.37
%
 
 
 
 
 
1.58
%
 
 
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total loans and leases (excluding purchased credit-impaired loans) (2, 5)
 
 
 
1.31

 
 
 
 
 
1.31

 
 
 
 
 
1.46

 
 
Allowance for loan and lease losses/Total nonperforming loans and leases (6)
 
 
 
136

 
 
 
 
 
130

 
 
 
 
 
122

 
 
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total nonperforming loans and leases (5)
 
 
 
129

 
 
 
 
 
122

 
 
 
 
 
110

 
 
Ratio of the allowance for loan and lease losses/Annualized net charge-offs (7)
 
 
 
2.81

 
 
 
 
 
2.70

 
 
 
 
 
2.82

 
 
Ratio of the allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Annualized net charge-offs (5, 7)
 
 
 
2.67

 
 
 
 
 
2.52

 
 
 
 
 
2.55

 
 
Ratio of the allowance for loan and lease losses/Annualized net charge-offs and purchased credit-impaired write-offs
 
 
 
2.56

 
 
 
 
 
2.52

 
 
 
 
 
2.28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option. Consumer loans accounted for under the fair value option included residential mortgage loans of $1.6 billion, $1.6 billion and $1.9 billion and home equity loans of $348 million, $250 million and $205 million at March 31, 2016, December 31, 2015 and March 31, 2015, respectively. Commercial loans accounted for under the fair value option included U.S. commercial loans of $2.6 billion, $2.3 billion and $2.0 billion and non-U.S. commercial loans of $3.7 billion, $2.8 billion and $4.5 billion at March 31, 2016, December 31, 2015 and March 31, 2015, respectively.
(2) 
Total loans and leases do not include loans accounted for under the fair value option of $8.2 billion, $6.9 billion and $8.5 billion at March 31, 2016, December 31, 2015 and March 31, 2015, respectively.
(3) 
Includes allowance for loan and lease losses for U.S. small business commercial loans of $480 million, $507 million and $533 million at March 31, 2016, December 31, 2015 and March 31, 2015, respectively.
(4) 
Includes allowance for loan and lease losses for impaired commercial loans of $285 million, $217 million and $155 million at March 31, 2016, December 31, 2015 and March 31, 2015, respectively.
(5) 
Excludes valuation allowance on purchased credit-impaired loans of $622 million, $804 million and $1.3 billion at March 31, 2016, December 31, 2015 and March 31, 2015, respectively.
(6) 
Allowance for loan and lease losses includes $4.1 billion, $4.5 billion and $5.5 billion allocated to products (primarily the Consumer Lending portfolios within Consumer Banking and purchased credit-impaired loans) that are excluded from nonperforming loans and leases at March 31, 2016, December 31, 2015 and March 31, 2015, respectively. Excluding these amounts, allowance for loan and lease losses as a percentage of total nonperforming loans and leases was 90 percent, 82 percent and 73 percent at March 31, 2016, December 31, 2015 and March 31, 2015, respectively.
(7) 
Net charge-offs exclude $105 million, $82 million and $288 million of write-offs in the purchased credit-impaired loan portfolio at March 31, 2016, December 31, 2015 and March 31, 2015, respectively.


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


This information is preliminary and based on company data available at the time of the presentation.
39



Exhibit A: Non-GAAP Reconciliations
 
 
 
 
 
 
 
 
 
 
 
Bank of America Corporation and Subsidiaries
 
 
 
 
 
Reconciliations to GAAP Financial Measures
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 

The Corporation evaluates its business based on a fully taxable-equivalent basis, a non-GAAP financial measure. The Corporation believes managing the business with net interest income on a fully taxable-equivalent basis provides a more accurate picture of the interest margin for comparative purposes. Total revenue, net of interest expense, includes net interest income on a fully taxable-equivalent basis and noninterest income. The Corporation views related ratios and analyses (i.e., efficiency ratios and net interest yield) on a fully taxable-equivalent basis. To derive the fully taxable-equivalent 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, the Corporation uses the federal statutory tax rate of 35 percent. This measure ensures comparability of net interest income arising from taxable and tax-exempt sources. The efficiency ratio measures the costs expended to generate a dollar of revenue, and net interest yield measures the basis points the Corporation earns over the cost of funds.

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

In addition, the Corporation periodically reviews capital allocated to its businesses and allocates 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 Corporation's internal risk-based capital models use a risk-adjusted methodology incorporating each segment's credit, market, interest rate, business and operational risk components. Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return both represent non-GAAP financial measures. Allocated capital is reviewed periodically and refinements are made based on multiple considerations that include, but are not limited to, risk-weighted assets measured under Basel 3 Standardized and Advanced approaches, business segment exposures and risk profile, and strategic plans. As part of this process, in 2016, the Corporation adjusted the amount of capital being allocated to its business segments.

See the tables below and on pages 41-43 for reconciliations of these non-GAAP financial measures to financial measures defined by GAAP for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate supplemental financial data differently.
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis
Net interest income
$
9,171

 
$
9,756

 
$
9,471

 
$
10,461

 
$
9,411

Fully taxable-equivalent adjustment
215

 
226

 
226

 
223

 
215

Net interest income on a fully taxable-equivalent basis
$
9,386

 
$
9,982

 
$
9,697

 
$
10,684

 
$
9,626

 
 
 
 
 
 
 
 
 
 
Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense on a fully taxable-equivalent basis
Total revenue, net of interest expense
$
19,512

 
$
19,667

 
$
20,513

 
$
21,956

 
$
20,914

Fully taxable-equivalent adjustment
215

 
226

 
226

 
223

 
215

Total revenue, net of interest expense on a fully taxable-equivalent basis
$
19,727

 
$
19,893

 
$
20,739

 
$
22,179

 
$
21,129

 
 
 
 
 
 
 
 
 
 
Reconciliation of income tax expense to income tax expense on a fully taxable-equivalent basis
Income tax expense
$
1,019

 
$
1,511

 
$
1,446

 
$
2,084

 
$
1,225

Fully taxable-equivalent adjustment
215

 
226

 
226

 
223

 
215

Income tax expense on a fully taxable-equivalent basis
$
1,234

 
$
1,737

 
$
1,672

 
$
2,307

 
$
1,440

 
 
 
 
 
 
 
 
 
 
Reconciliation of average common shareholders' equity to average tangible common shareholders' equity
Common shareholders' equity
$
237,123

 
$
234,851

 
$
231,620

 
$
228,780

 
$
225,357

Goodwill
(69,761
)
 
(69,761
)
 
(69,774
)
 
(69,775
)
 
(69,776
)
Intangible assets (excluding mortgage servicing rights)
(3,687
)
 
(3,888
)
 
(4,099
)
 
(4,307
)
 
(4,518
)
Related deferred tax liabilities
1,707

 
1,753

 
1,811

 
1,885

 
1,959

Tangible common shareholders' equity
$
165,382

 
$
162,955

 
$
159,558

 
$
156,583

 
$
153,022

 
 
 
 
 
 
 
 
 
 
Reconciliation of average shareholders' equity to average tangible shareholders' equity
Shareholders' equity
$
260,317

 
$
257,125

 
$
253,893

 
$
251,054

 
$
245,744

Goodwill
(69,761
)
 
(69,761
)
 
(69,774
)
 
(69,775
)
 
(69,776
)
Intangible assets (excluding mortgage servicing rights)
(3,687
)
 
(3,888
)
 
(4,099
)
 
(4,307
)
 
(4,518
)
Related deferred tax liabilities
1,707

 
1,753

 
1,811

 
1,885

 
1,959

Tangible shareholders' equity
$
188,576

 
$
185,229

 
$
181,831

 
$
178,857

 
$
173,409

 
 
 
 
 
 
 
 
 
 


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

This information is preliminary and based on company data available at the time of the presentation.
40



Exhibit A: Non-GAAP Reconciliations (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bank of America Corporation and Subsidiaries
 
 
 
 
 
 
 
 
 
Reconciliations to GAAP Financial Measures
 
 
 
 
 
 
 
 
 
(Dollars in millions)
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of period-end common shareholders' equity to period-end tangible common shareholders' equity
Common shareholders' equity
$
238,434

 
$
233,932

 
$
233,632

 
$
229,386

 
$
227,915

Goodwill
(69,761
)
 
(69,761
)
 
(69,761
)
 
(69,775
)
 
(69,776
)
Intangible assets (excluding mortgage servicing rights)
(3,578
)
 
(3,768
)
 
(3,973
)
 
(4,188
)
 
(4,391
)
Related deferred tax liabilities
1,667

 
1,716

 
1,762

 
1,813

 
1,900

Tangible common shareholders' equity
$
166,762

 
$
162,119

 
$
161,660

 
$
157,236

 
$
155,648

 
 
 
 
 
 
 
 
 
 
Reconciliation of period-end shareholders' equity to period-end tangible shareholders' equity
Shareholders' equity
$
262,776

 
$
256,205

 
$
255,905

 
$
251,659

 
$
250,188

Goodwill
(69,761
)
 
(69,761
)
 
(69,761
)
 
(69,775
)
 
(69,776
)
Intangible assets (excluding mortgage servicing rights)
(3,578
)
 
(3,768
)
 
(3,973
)
 
(4,188
)
 
(4,391
)
Related deferred tax liabilities
1,667

 
1,716

 
1,762

 
1,813

 
1,900

Tangible shareholders' equity
$
191,104

 
$
184,392

 
$
183,933

 
$
179,509

 
$
177,921

 
 
 
 
 
 
 
 
 
 
Reconciliation of period-end assets to period-end tangible assets
Assets
$
2,185,498

 
$
2,144,316

 
$
2,153,006

 
$
2,149,034

 
$
2,143,545

Goodwill
(69,761
)
 
(69,761
)
 
(69,761
)
 
(69,775
)
 
(69,776
)
Intangible assets (excluding mortgage servicing rights)
(3,578
)
 
(3,768
)
 
(3,973
)
 
(4,188
)
 
(4,391
)
Related deferred tax liabilities
1,667

 
1,716

 
1,762

 
1,813

 
1,900

Tangible assets
$
2,113,826

 
$
2,072,503

 
$
2,081,034

 
$
2,076,884

 
$
2,071,278

 
 
 
 
 
 
 
 
 
 


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

This information is preliminary and based on company data available at the time of the presentation.
41



Exhibit A: Non-GAAP Reconciliations (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bank of America Corporation and Subsidiaries
 
 
 
 
 
 
 
 
 
Reconciliations to GAAP Financial Measures
 
 
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Second
Quarter
2015
 
First
Quarter
2015
 
Reconciliation of return on average allocated capital (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Banking
 
 
 
 
 
 
 
 
 
Reported net income
$
1,785

 
$
1,774

 
$
1,763

 
$
1,706

 
$
1,461

Adjustment related to intangibles (2)
1

 
1

 
1

 
1

 
1

Adjusted net income
$
1,786

 
$
1,775

 
$
1,764

 
$
1,707

 
$
1,462

 
 
 
 
 
 
 
 
 
 
Average allocated equity (3)
$
60,261

 
$
59,234

 
$
59,231

 
$
59,285

 
$
59,295

Adjustment related to goodwill and a percentage of intangibles
(30,261
)
 
(30,234
)
 
(30,231
)
 
(30,285
)
 
(30,295
)
Average allocated capital
$
30,000

 
$
29,000

 
$
29,000

 
$
29,000

 
$
29,000

 
 
 
 
 
 
 
 
 
 
Global Wealth & Investment Management
 
 
 
 
 
 
 
 
 
Reported net income
$
740

 
$
616

 
$
657

 
$
689

 
$
652

Adjustment related to intangibles (2)
3

 
3

 
3

 
3

 
3

Adjusted net income
$
743

 
$
619

 
$
660

 
$
692

 
$
655

 
 
 
 
 
 
 
 
 
 
Average allocated equity (3)
$
23,098

 
$
22,115

 
$
22,132

 
$
22,106

 
$
22,168

Adjustment related to goodwill and a percentage of intangibles
(10,098
)
 
(10,115
)
 
(10,132
)
 
(10,106
)
 
(10,168
)
Average allocated capital
$
13,000

 
$
12,000

 
$
12,000

 
$
12,000

 
$
12,000

 
 
 
 
 
 
 
 
 
 
Global Banking
 
 
 
 
 
 
 
 
 
Reported net income
$
1,066

 
$
1,378

 
$
1,277

 
$
1,251

 
$
1,367

Adjustment related to intangibles (2)

 

 

 

 

Adjusted net income
$
1,066

 
$
1,378

 
$
1,277

 
$
1,251

 
$
1,367

 
 
 
 
 
 
 
 
 
 
Average allocated equity (3)
$
60,937

 
$
58,938

 
$
58,947

 
$
58,978

 
$
58,877

Adjustment related to goodwill and a percentage of intangibles
(23,937
)
 
(23,938
)
 
(23,947
)
 
(23,978
)
 
(23,877
)
Average allocated capital
$
37,000

 
$
35,000

 
$
35,000

 
$
35,000

 
$
35,000

 
 
 
 
 
 
 
 
 
 
Global Markets
 
 
 
 
 
 
 
 
 
Reported net income
$
984

 
$
178

 
$
813

 
$
799

 
$
677

Adjustment related to intangibles (2)
2

 
2

 
4

 
2

 
2

Adjusted net income
$
986

 
$
180

 
$
817

 
$
801

 
$
679

 
 
 
 
 
 
 
 
 
 
Average allocated equity (3)
$
42,332

 
$
40,338

 
$
40,351

 
$
40,379

 
$
40,416

Adjustment related to goodwill and a percentage of intangibles
(5,332
)
 
(5,338
)
 
(5,351
)
 
(5,379
)
 
(5,416
)
Average allocated capital
$
37,000

 
$
35,000

 
$
35,000

 
$
35,000

 
$
35,000

 
 
 
 
 
 
 
 
 
 
For footnotes see page 43.


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

This information is preliminary and based on company data available at the time of the presentation.
42



Exhibit A: Non-GAAP Reconciliations (continued)
 
 
 
 
 
 
 
 
 
 
 
Bank of America Corporation and Subsidiaries
 
 
 
 
 
Reconciliations to GAAP Financial Measures
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
First
Quarter
2016
 
Fourth
Quarter
2015
 
First
Quarter
2015
 
Consumer Banking
 
 
 
 
 
 
 
 
 
 
 
Deposits
 
 
 
 
 
Reported net income
$
814

 
$
728

 
$
536

Adjustment related to intangibles (2)

 

 

Adjusted net income
$
814

 
$
728

 
$
536

 
 
 
 
 
 
Average allocated equity (3)
$
30,417

 
$
30,420

 
$
30,424

Adjustment related to goodwill and a percentage of intangibles
(18,417
)
 
(18,420
)
 
(18,424
)
Average allocated capital
$
12,000

 
$
12,000

 
$
12,000

 
 
 
 
 
 
Consumer Lending
 
 
 
 
 
Reported net income
$
971

 
$
1,046

 
$
925

Adjustment related to intangibles (2)
1

 
1

 
1

Adjusted net income
$
972

 
$
1,047

 
$
926

 
 
 
 
 
 
Average allocated equity (3)
$
29,844

 
$
28,814

 
$
28,870

Adjustment related to goodwill and a percentage of intangibles
(11,844
)
 
(11,814
)
 
(11,870
)
Average allocated capital
$
18,000

 
$
17,000

 
$
17,000

 
 
 
 
 
 
(1) 
There are no adjustments to reported net income (loss) or average allocated equity for Legacy Assets & Servicing.
(2) 
Represents cost of funds, earnings credits and certain expenses related to intangibles.
(3) 
Average allocated equity is comprised of average allocated capital plus capital for the portion of goodwill and intangibles specifically assigned to the business segment.


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


This information is preliminary and based on company data available at the time of the presentation.
43