Bank of America : 1Q24 Form 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2024

or

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

EXCHANGE ACT OF 1934
For the transition period from	to
Commission file number:
1-6523

Exact name of registrant as specified in its charter:

Bank of America Corporation

State or other jurisdiction of incorporation or organization:

Delaware

IRS Employer Identification No.:

56-0906609

Address of principal executive offices: Bank of America Corporate Center 100 N. Tryon Street

Charlotte, North Carolina 28255

Registrant's telephone number, including area code:

[phone]

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

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

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

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

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

Yes ☑

No ☐

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

Yes ☑

No ☐

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

Large accelerated filer ☑	Accelerated filer	☐	Non-accelerated filer ☐	Smaller reporting company ☐
				Emerging growth company ☐

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

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

Yes ☐

No ☑

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

Bank of America Corporation and Subsidiaries

March 31, 2024

Form 10-Q

INDEX

Part I. Financial Information

Item 1. Financial Statements	Page
Consolidated Statement of Income
43
Consolidated Statement of Comprehensive Income	43
Consolidated Balance Sheet	44
Consolidated Statement of Changes in Shareholders' Equity	45
Consolidated Statement of Cash Flows	46
Notes to Consolidated Financial Statements	47
Note 1 - Summary of Significant Accounting Principles	47
Note 2 - Net Interest Income and Noninterest Income	48
Note 3 - Derivatives	49
Note 4 - Securities	56
Note 5 - Outstanding Loans and Leases and Allowance for Credit Losses	59
Note 6 - Securitizations and Other Variable Interest Entities	69
Note 7 - Goodwill and Intangible Assets	73
Note 8 - Leases	73
Note 9 - Securities Financing Agreements, Collateral and Restricted Cash	74
Note 10 - Commitments and Contingencies	75
Note 11 - Shareholders' Equity	78
Note 12 - Accumulated Other Comprehensive Income (Loss)	78
Note 13 - Earnings Per Common Share	79
Note 14 - Fair Value Measurements	79
Note 15 - Fair Value Option	85
Note 16 - Fair Value of Financial Instruments	86
Note 17 - Business Segment Information	87
Glossary	90
Acronyms	92
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Executive Summary	3
Recent Developments	3
Financial Highlights	3
Supplemental Financial Data	5
Business Segment Operations	8
Consumer Banking	8
Global Wealth & Investment Management	10
Global Banking	12
Global Markets	14
All Other	15
Managing Risk	16
Capital Management	16
Liquidity Risk	20
Credit Risk Management	23
Consumer Portfolio Credit Risk Management	24
Commercial Portfolio Credit Risk Management	28
Non-U.S. Portfolio	34
Allowance for Credit Losses	35
Market Risk Management	37
Trading Risk Management	37
Interest Rate Risk Management for the Banking Book	39
Mortgage Banking Risk Management	40
Climate Risk	40
Complex Accounting Estimates	41
Non-GAAP Reconciliations	42
Item 3. Quantitative and Qualitative Disclosures about Market Risk	42
Item 4. Controls and Procedures	42

• Bank of America

Part II. Other Information

Item 1.	Legal Proceedings	93
Item 1A. Risk Factors	93
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	93
Item 5.	Other Information	93
Item 6.	Exhibits	94
Signature	94

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

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

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

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

Bank of America 2

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

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

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

Executive Summary

Business Overview

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

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

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

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

Recent Developments

Capital Management

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

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

FDIC Special Assessment

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

Financial Highlights

Table 1 Summary Income Statement and Selected

Financial Data

Three Months Ended March 31

(Dollars in millions, except per share information)		2024		2023
Income statement
Net interest income	$	14,032	$	14,448
Noninterest income		11,786		11,810
Total revenue, net of interest expense		25,818		26,258
Provision for credit losses		1,319		931
Noninterest expense		17,237		16,238
Income before income taxes		7,262		9,089
Income tax expense		588		928
Net income		6,674		8,161
Preferred stock dividends		532		505
Net income applicable to common
shareholders	$	6,142	$	7,656
Per common share information
Earnings	$	0.77	$	0.95
Diluted earnings		0.76		0.94
Dividends paid		0.24		0.22
Performance ratios		0.83 %		1.07 %
Return on average assets (1)
Return on average common shareholders'
equity (1)		9.35		12.48
Return on average tangible common
shareholders' equity (2)		12.73		17.38
Efficiency ratio (1)		66.77		61.84
		March 31	December 31
		2024		2023
Balance sheet	$	1,049,156	$ 1,053,732
Total loans and leases
Total assets		3,273,803		3,180,151
Total deposits		1,946,496		1,923,827
Total liabilities		2,980,251		2,888,505
Total common shareholders' equity		265,155		263,249
Total shareholders' equity		293,552		291,646

1. For definitions, see Key Metrics on page 91.
2. Return on average tangible common shareholders' equity is a non-GAAP financial measure. For more information and a corresponding reconciliation to the most directly comparable financial measures defined by accounting principles generally accepted in the United States of America (GAAP), see Non-GAAP Reconciliations on page 42.

• Bank of America

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

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

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

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

Net Interest Income

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

Noninterest Income

Table 2 Noninterest Income

Three Months Ended March 31

(Dollars in millions)		2024		2023
Fees and commissions:
Card income	$	1,463	$	1,469
Service charges		1,442		1,410
Investment and brokerage services		4,187		3,852
Investment banking fees		1,568		1,163
Total fees and commissions		8,660		7,894
Market making and similar activities		3,888		4,712
Other income		(762)		(796)
Total noninterest income	$	11,786	$	11,810

• Market making and similar activities decreased $824 million primarily driven by lower trading revenue from macro products in Fixed Income, Currencies and Commodities (FICC).
• Other income increased $34 million primarily due to losses on sales of available-for-sale (AFS) debt securities in the prior year, largely offset by higher partnership losses on tax credit investments in the current year.

Provision for Credit Losses

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

Noninterest Expense

Table 3 Noninterest Expense

Three Months Ended March 31

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

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

Income Tax Expense

Table 4 Income Tax Expense

Three Months Ended March 31

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

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

• Service charges increased $32 million primarily driven by higher treasury service charges.
• Investment and brokerage services increased $335 million primarily driven by higher asset management fees due to higher average equity market valuations and positive assets under management (AUM) flows, partially offset by the impact of lower AUM pricing.
• Investment banking fees increased $405 million primarily due to higher debt and equity issuance fees.

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

Bank of America 4

Supplemental Financial Data

Non-GAAP Financial Measures

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

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

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

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

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

• Return on average tangible common shareholders' equity measures our net income applicable to common shareholders as a percentage of adjusted average common shareholders' equity. The tangible common equity ratio represents adjusted ending common shareholders' equity divided by total tangible assets.
• Return on average tangible shareholders' equity measures our net income as a percentage of adjusted average total shareholders' equity. The tangible equity ratio represents adjusted ending shareholders' equity divided by total tangible assets.
• Tangible book value per common share represents adjusted ending common shareholders' equity divided by ending common shares outstanding.

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

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

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

Key Performance Indicators

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

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

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

• Bank of America

Table 5 Selected Quarterly Financial Data

	2024 Quarter					2023 Quarters
(In millions, except per share information)		First			Fourth		Third		Second		First
Income statement
Net interest income	$	14,032	$	13,946	$	14,379	$	14,158	$	14,448
Noninterest income		11,786			8,013		10,788		11,039		11,810
Total revenue, net of interest expense		25,818			21,959		25,167		25,197		26,258
Provision for credit losses		1,319			1,104		1,234		1,125		931
Noninterest expense		17,237			17,731		15,838		16,038		16,238
Income before income taxes		7,262			3,124		8,095		8,034		9,089
Income tax expense		588			(20)		293		626		928
Net income		6,674			3,144		7,802		7,408		8,161
Net income applicable to common shareholders		6,142			2,838		7,270		7,102		7,656
Average common shares issued and outstanding		7,968.2			7,990.9		8,017.1		8,040.9		8,065.9
Average diluted common shares issued and outstanding		8,031.4			8,062.5		8,075.9		8,080.7		8,182.3
Performance ratios
Return on average assets (1)		0.83 %			0.39 %		0.99 %		0.94 %		1.07 %
Four-quarter trailing return on average assets (2)		0.78			0.84		0.98		0.96		0.92
Return on average common shareholders' equity (1)		9.35			4.33		11.24		11.21		12.48
Return on average tangible common shareholders' equity (3)		12.73			5.92		15.47		15.49		17.38
Return on average shareholders' equity (1)		9.18			4.32		10.86		10.52		11.94
Return on average tangible shareholders' equity (3)		12.07			5.71		14.41		14.00		15.98
Total ending equity to total ending assets		8.97			9.17		9.10		9.07		8.77
Common equity ratio (1)		8.10			8.28		8.20		8.16		7.88
Total average equity to total average assets		9.01			8.98		9.11		8.89		8.95
Dividend payout (1)		31.11			67.42		26.39		24.88		23.17
Per common share data
Earnings	$	0.77	$	0.36	$	0.91	$	0.88	$	0.95
Diluted earnings		0.76			0.35		0.90		0.88		0.94
Dividends paid		0.24			0.24		0.24		0.22		0.22
Book value (1)		33.71			33.34		32.65		32.05		31.58
Tangible book value (3)		24.79			24.46		23.79		23.23		22.78
Market capitalization	$	298,312	$	265,840	$	216,942	$	228,188	$	228,012
Average balance sheet
Total loans and leases	$	1,047,890	$	1,050,705	$	1,046,254	$	1,046,608	$	1,041,352
Total assets		3,247,159			3,213,159		3,128,466		3,175,358		3,096,058
Total deposits		1,907,462			1,905,011		1,876,153		1,875,353		1,893,649
Long-term debt		254,782			256,262		245,819		248,480		244,759
Common shareholders' equity		264,114			260,221		256,578		254,028		248,855
Total shareholders' equity		292,511			288,618		284,975		282,425		277,252
Asset quality
Allowance for credit losses (4)	$	14,371	$	14,551	$	14,640	$	14,338	$	13,951
Nonperforming loans, leases and foreclosed properties (5)		6,034			5,630		4,993		4,274		4,083
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (5)		1.26 %			1.27 %		1.27 %		1.24 %		1.20 %
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (5)		225			243		275		314		319
Net charge-offs	$	1,498	$	1,192	$	931	$	869	$	807
Annualized net charge-offs as a percentage of average loans and leases outstanding (5)		0.58 %			0.45 %		0.35 %		0.33 %		0.32 %
Capital ratios at period end (6)
Common equity tier 1 capital		11.9 %			11.8 %		11.9 %		11.6 %		11.4 %
Tier 1 capital		13.6			13.5		13.6		13.3		13.1
Total capital		15.2			15.2		15.4		15.1		15.0
Tier 1 leverage		7.1			7.1		7.3		7.1		7.1
Supplementary leverage ratio		6.0			6.1		6.2		6.0		6.0
Tangible equity (3)		7.0			7.1		7.0		7.0		6.7
Tangible common equity (3)		6.1			6.2		6.1		6.1		5.8
Total loss-absorbing capacity and long-term debt metrics
Total loss-absorbing capacity to risk-weighted assets		28.7 %			29.0 %		29.3 %		28.8 %		28.8 %
Total loss-absorbing capacity to supplementary leverage exposure		12.8			13.0		13.3		13.0		13.1
Eligible long-term debt to risk-weighted assets		14.2			14.5		14.8		14.6		14.8
Eligible long-term debt to supplementary leverage exposure		6.3			6.5		6.7		6.6		6.7

1. For definitions, see Key Metrics on page 91.
2. Calculated as total net income for four consecutive quarters divided by annualized average assets for four consecutive quarters.
3. Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. For more information on these ratios and corresponding reconciliations to GAAP financial measures, see Supplemental Financial Data on page 5 and Non-GAAP Reconciliations on page 42.
4. Includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.
5. Balances and ratios do not include loans accounted for under the fair value option. For additional exclusions from nonperforming loans, leases and foreclosed properties, see Consumer Portfolio Credit Risk Management - Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity on page 28 and corresponding Table 24 and Commercial Portfolio Credit Risk Management
   - Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 32 and corresponding Table 30.
6. For more information, including which approach is used to assess capital adequacy, see Capital Management on page 16.

Bank of America 6

Table 6 Quarterly Average Balances and Interest Rates - FTE Basis

				Interest						Interest
		Average		Income/	Yield/			Average		Income/	Yield/
		Balance	Expense (1)	Rate			Balance	Expense (1)	Rate
(Dollars in millions)		First Quarter 2024				First Quarter 2023
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central
banks and other banks	$	346,463	$	4,531		5.26 %	$	202,700	$	1,999		4.00 %
Time deposits placed and other short-term investments		9,728		116		4.80			10,581		108		4.16
Federal funds sold and securities borrowed or purchased under
agreements to resell		304,821		5,175		6.83			287,532		3,712		5.24
Trading account assets		202,461		2,482		4.93			183,657		2,040		4.50
Debt securities		842,483		6,162		2.92			851,177		5,485		2.58
Loans and leases (2)
Residential mortgage		227,748		1,803		3.17			229,275		1,684		2.94
Home equity		25,522		390		6.14			26,513		317		4.84
Credit card		99,815		2,786		11.22			91,775		2,426		10.72
Direct/Indirect and other consumer		103,371		1,399		5.45			105,657		1,186		4.55
Total consumer		456,456		6,378		5.61			453,220		5,613		5.00
U.S. commercial		379,566		5,236		5.55			376,852		4,471		4.81
Non-U.S. commercial		125,024		2,170		6.98			127,003		1,778		5.68
Commercial real estate (3)		71,986		1,311		7.33			70,591		1,144		6.57
Commercial lease financing		14,858		200		5.41			13,686		147		4.33
Total commercial		591,434		8,917		6.06			588,132		7,540		5.20
Total loans and leases		1,047,890		15,295		5.87			1,041,352		13,153		5.11
Other earning assets		106,737		2,682		10.10			94,427		2,292		9.82
Total earning assets		2,860,583		36,443		5.12			2,671,426		28,789		4.36
Cash and due from banks		24,185							27,784
Other assets, less allowance for loan and lease losses		362,391							396,848
Total assets	$	3,247,159					$	3,096,058
Interest-bearing liabilities
U.S. interest-bearing deposits
Demand and money market deposits	$	956,716	$	5,012		2.11 %	$	975,085	$	2,790		1.16 %
Time and savings deposits		325,765		3,059		3.78			196,984		919		1.89
Total U.S. interest-bearing deposits		1,282,481		8,071		2.53			1,172,069		3,709		1.28
Non-U.S.interest-bearing deposits		104,373		1,067		4.11			91,603		605		2.68
Total interest-bearing deposits		1,386,854		9,138		2.65			1,263,672		4,314		1.38
Federal funds purchased and securities loaned or sold under agreements
to repurchase		350,507		6,026		6.92			256,015		3,551		5.63
Short-term borrowings and other interest-bearing liabilities		141,091		2,509		7.15			156,887		2,629		6.79
Trading account liabilities		51,757		546		4.24			43,953		504		4.65
Long-term debt		254,782		4,034		6.35			244,759		3,209		5.28
Total interest-bearing liabilities		2,184,991		22,253		4.10			1,965,286		14,207		2.93
Noninterest-bearing sources
Noninterest-bearing deposits		520,608							629,977
Other liabilities (4)		249,049							223,543
Shareholders' equity		292,511							277,252
Total liabilities and shareholders' equity	$	3,247,159					$	3,096,058
Net interest spread						1.02 %							1.43 %
Impact of noninterest-bearing sources						0.97							0.77
Net interest income/yield on earning assets (5)			$	14,190		1.99 %				$	14,582		2.20 %

1. Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 39.
2. Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.
3. Includes U.S. commercial real estate loans of $66.2 billion and $65.5 billion, and non-U.S. commercial real estate loans of $5.8 billion and $5.1 billion for the first quarter of 2024 and 2023.
4. Includes $44.1 billion and $37.3 billion of structured notes and liabilities for the first quarter of 2024 and 2023.
5. Net interest income includes FTE adjustments of $158 million and $134 million for the first quarter of 2024 and 2023.

• Bank of America

Business Segment Operations

Segment Description and Basis of Presentation

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

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

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

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

Key Performance Indicators

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

Consumer Banking

			Deposits			Consumer Lending			Total Consumer Banking
							Three Months Ended March 31
(Dollars in millions)		2024		2023			2024		2023			2024		2023	% Change
Net interest income	$	5,269	$	5,816	$	2,928	$	2,777	$	8,197	$	8,593	(5)%
Noninterest income:
Card income		(10)		(10)			1,282		1,284			1,272		1,274	-
Service charges		577		598			1		1			578		599	(4)
All other income		102		197			17		43			119		240	(50)
Total noninterest income		669		785			1,300		1,328			1,969		2,113	(7)
Total revenue, net of interest expense		5,938		6,601			4,228		4,105			10,166		10,706	(5)
Provision for credit losses		76		183			1,074		906			1,150		1,089	6
Noninterest expense		3,378		3,415			2,097		2,058			5,475		5,473	-
Income before income taxes		2,484		3,003			1,057		1,141			3,541		4,144	(15)
Income tax expense		621		751			264		285			885		1,036	(15)
Net income	$	1,863	$	2,252	$	793	$	856	$	2,656	$	3,108	(15)
Effective tax rate (1)												25.0 %		25.0 %
Net interest yield		2.23 %		2.31 %			3.81 %		3.76 %			3.31 %		3.27 %
Return on average allocated capital		55		67			11		12			25		30
Efficiency ratio		56.89		51.76			49.60		50.10			53.86		51.12
Balance Sheet
							Three Months Ended March 31
Average		2024		2023			2024		2023			2024		2023	% Change
Total loans and leases	$	4,241	$	4,119	$	308,797	$	299,653	$	313,038	$	303,772	3 %
Total earning assets (2)		950,194		1,022,445			308,914		299,794			995,556		1,065,202	(7)
Total assets (2)		982,857		1,056,007			313,795		306,275			1,033,101		1,105,245	(7)
Total deposits		947,843		1,021,374			4,623		4,868			952,466		1,026,242	(7)
Allocated capital		13,700		13,700			29,550		28,300			43,250		42,000	3
			March 31	December 31			March 31	December 31			March 31	December 31
Period end		2024		2023			2024		2023			2024		2023	% Change
Total loans and leases	$	4,260	$	4,218	$	307,465	$	310,901	$	311,725	$	315,119	(1)%
Total earning assets (2)		976,167		965,088			307,634		311,008			1,022,320		1,009,360	1
Total assets (2)		1,008,366		999,372			313,598		317,194			1,060,482		1,049,830	1
Total deposits		972,906		964,136			5,855		5,436			978,761		969,572	1

1. Estimated at the segment level only.
2. In segments and businesses where the total of liabilities and equity exceeds assets, we allocate assets from All Other to match the segments' and businesses' liabilities and allocated shareholders' equity. As a result, total earning assets and total assets of the businesses may not equal total Consumer Banking.

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

Consumer Banking Results

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

Bank of America 8