Bank of America : Q4 2020 Supplemental Information

Supplemental Information

Fourth Quarter 2020

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

Bank of America Corporation and Subsidiaries
Table of Contents	Page
Consolidated Financial Highlights	2
Consolidated Statement of Income	3
Consolidated Statement of Comprehensive Income	3
Net Interest Income and Noninterest Income	4
Consolidated Balance Sheet	5
Capital Management	6
Capital Composition under Basel 3	7
Quarterly Average Balances and Interest Rates	8
Debt Securities	9
Supplemental Financial Data	10
Quarterly Results by Business Segment and All Other	11
Annual Results by Business Segment and All Other	13
Consumer Banking	14
Total Segment Results
Key Indicators	15
Business Results	16
Global Wealth & Investment Management	18
Total Segment Results
Key Indicators	19
Global Banking	20
Total Segment Results
Key Indicators	21
Global Markets	22
Total Segment Results
Key Indicators	23
All Other	24
Total Results
Outstanding Loans and Leases	25
Quarterly Average Loans and Leases by Business Segment and All Other	26
Commercial Credit Exposure by Industry	27
Top 20 Non-U.S. Countries Exposure	28
Nonperforming Loans, Leases and Foreclosed Properties	29
Nonperforming Loans, Leases and Foreclosed Properties Activity	30
Quarterly Net Charge-offs and Net Charge-off Ratios	31
Annual Net Charge-offs and Net Charge-off Ratios	32
Allocation of the Allowance for Credit Losses by Product Type	33
Exhibit A: Non-GAAP Reconciliations	34

Current Expected Credit Losses Accounting Standard

Effective January 1, 2020, the Corporation adopted the new current expected credit losses (CECL) accounting standard that measures the allowance based on management's best estimate of lifetime expected credit losses inherent in the Corporation's lending activities. Prior periods presented for 2019 reflect measurement of the allowance based on management's estimate of probable incurred credit losses.

Key Performance Indicators

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

Business Segment Operations

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

Bank of America Corporation and Subsidiaries

Consolidated Financial Highlights

(In millions, except per share information)
		Year Ended			Fourth			Third			Second			First			Fourth
		December 31
				Quarter			Quarter			Quarter			Quarter			Quarter
		2020			2019				2020			2020			2020			2020			2019
Income statement
Net interest income	$	43,360	$	48,891		$	10,253	$	10,129	$	10,848	$	12,130	$	12,140
Noninterest income		42,168			42,353				9,846			10,207			11,478			10,637			10,209
Total revenue, net of interest expense		85,528			91,244				20,099			20,336			22,326			22,767			22,349
Provision for credit losses		11,320			3,590				53			1,389			5,117			4,761			941
Noninterest expense		55,213			54,900				13,927			14,401			13,410			13,475			13,239
Income before income taxes		18,995			32,754				6,119			4,546			3,799			4,531			8,169
Pretax, pre-provision income (1)		30,315			36,344				6,172			5,935			8,916			9,292			9,110
Income tax expense		1,101			5,324				649			(335)			266			521			1,175
Net income		17,894			27,430				5,470			4,881			3,533			4,010			6,994
Preferred stock dividends		1,421			1,432				262			441			249			469			246
Net income applicable to common shareholders		16,473			25,998				5,208			4,440			3,284			3,541			6,748
Diluted earnings per common share		1.87			2.75				0.59			0.51			0.37			0.40			0.74
Average diluted common shares issued and outstanding		8,796.9			9,442.9				8,785.0			8,777.5			8,768.1			8,862.7			9,079.5
Dividends paid per common share	$	0.72	$	0.66		$	0.18	$	0.18	$	0.18	$	0.18	$	0.18
Performance ratios
Return on average assets		0.67 %			1.14 %				0.78 %			0.71 %			0.53 %			0.65 %			1.13 %
Return on average common shareholders' equity		6.76			10.62				8.39			7.24			5.44			5.91			11.00
Return on average shareholders' equity		6.69			10.24				8.03			7.26			5.34			6.10			10.40
Return on average tangible common shareholders' equity (2)		9.48			14.86				11.73			10.16			7.63			8.32			15.43
Return on average tangible shareholders' equity (2)		9.07			13.85				10.84			9.84			7.23			8.29			14.09
Efficiency ratio		64.55			60.17				69.29			70.81			60.06			59.19			59.24
At period end
Book value per share of common stock	$	28.72	$	27.32		$	28.72	$	28.33	$	27.96	$	27.84	$	27.32
Tangible book value per share of common stock (2)		20.60			19.41				20.60			20.23			19.90			19.79			19.41
Market capitalization		262,206			311,209				262,206			208,656			205,772			184,181			311,209
Number of financial centers - U.S.		4,312			4,300				4,312			4,309			4,298			4,297			4,300
Number of branded ATMs - U.S.		16,904			16,788				16,904			16,962			16,862			16,855			16,788
Headcount		212,505			208,131				212,505			211,225			212,796			208,931			208,131

1. Pretax, pre-provision income (PTPI) is a non-GAAP financial measure calculated by adjusting pretax income to add back provision for credit losses. Management believes that PTPI is a useful financial measure because it enables an assessment of the Corporation's ability to generate earnings to cover credit losses through a credit cycle.
2. Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income. Tangible book value per share provides additional useful information about the level of tangible assets in relation to outstanding shares of common stock. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on page 34.)

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

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

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Bank of America Corporation and Subsidiaries

Consolidated Statement of Income

(In millions, except per share information)
			Year Ended				Fourth			Third			Second			First			Fourth
			December 31			Quarter			Quarter			Quarter			Quarter			Quarter
			2020			2019				2020			2020			2020			2020			2019
Net interest income
Interest income	$	51,585	$	71,236		$	11,461	$	11,486	$	12,540	$	16,098	$	16,926
Interest expense			8,225			22,345				1,208			1,357			1,692			3,968			4,786
Net interest income			43,360			48,891				10,253			10,129			10,848			12,130			12,140
Noninterest income
Fees and commissions			34,551			33,015				9,061			8,777			8,392			8,321			8,520
Market making and similar activities			8,355			9,034				1,372			1,689			2,487			2,807			1,767
Other income (loss)			(738)			304				(587)			(259)			599			(491)			(78)
Total noninterest income			42,168			42,353				9,846			10,207			11,478			10,637			10,209
Total revenue, net of interest expense			85,528			91,244				20,099			20,336			22,326			22,767			22,349
Provision for credit losses			11,320			3,590				53			1,389			5,117			4,761			941
Noninterest expense
Compensation and benefits			32,725			31,977				8,190			8,200			7,994			8,341			7,977
Occupancy and equipment			7,141			6,588				1,839			1,798			1,802			1,702			1,680
Information processing and communications			5,222			4,646				1,415			1,333			1,265			1,209			1,162
Product delivery and transaction related			3,433			2,762				915			930			811			777			695
Marketing			1,701			1,934				463			308			492			438			524
Professional fees			1,694			1,597				488			450			381			375			442
Other general operating			3,297			5,396				617			1,382			665			633			759
Total noninterest expense			55,213			54,900				13,927			14,401			13,410			13,475			13,239
Income before income taxes			18,995			32,754				6,119			4,546			3,799			4,531			8,169
Income tax expense			1,101			5,324				649			(335)			266			521			1,175
Net income	$	17,894	$	27,430		$	5,470	$	4,881	$	3,533	$	4,010	$	6,994
Preferred stock dividends			1,421			1,432				262			441			249			469			246
Net income applicable to common shareholders	$	16,473	$	25,998		$	5,208	$	4,440	$	3,284	$	3,541	$	6,748
Per common share information
Earnings		$	1.88		$	2.77			$	0.60		$	0.51		$	0.38		$	0.40		$	0.75
Diluted earnings			1.87			2.75				0.59			0.51			0.37			0.40			0.74
Average common shares issued and outstanding			8,753.2			9,390.5				8,724.9			8,732.9			8,739.9			8,815.6			9,017.1
Average diluted common shares issued and outstanding			8,796.9			9,442.9				8,785.0			8,777.5			8,768.1			8,862.7			9,079.5

Consolidated Statement of Comprehensive Income

(Dollars in millions)
	Year Ended		Fourth			Third		Second			First			Fourth
	December 31		Quarter		Quarter		Quarter		Quarter		Quarter
	2020		2019				2020			2020			2020			2020			2019
Net income	$ 17,894	$ 27,430		$	5,470	$	4,881	$	3,533	$	4,010	$	6,994
Other comprehensive income (loss), net-of-tax:
Net change in debt securities	4,799	5,875				5			101			(102)			4,795			(356)
Net change in debit valuation adjustments	(498)	(963)				(493)			(58)			(1,293)			1,346			(691)
Net change in derivatives	826	616				18			76			315			417			(35)
Employee benefit plan adjustments	(98)	136				(242)			44			57			43			53
Net change in foreign currency translation adjustments	(52)		(86)				34			21			(19)			(88)			13
Other comprehensive income (loss)	4,977		5,578				(678)			184			(1,042)			6,513			(1,016)
Comprehensive income	$ 22,871	$ 33,008		$	4,792	$	5,065	$	2,491	$	10,523	$	5,978

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

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

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