Bank of America : Q2 Supplemental Information

Supplemental Information

Second Quarter 2021

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

Bank of America Corporation and Subsidiaries
Table of Contents	Page
Consolidated Financial Highlights	2
Consolidated Statement of Income	3
Consolidated Statement of Comprehensive Income	3
Net Interest Income and Noninterest Income	4
Consolidated Balance Sheet	5
Capital Management	6
Capital Composition under Basel 3	7
Quarterly Average Balances and Interest Rates	8
Debt Securities	9
Supplemental Financial Data	10
Quarterly Results by Business Segment and All Other	11
Year-to-Date Results by Business Segment and All Other	13
Consumer Banking	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
Nonperforming Loans, Leases and Foreclosed Properties	28
Nonperforming Loans, Leases and Foreclosed Properties Activity	29
Quarterly Net Charge-offs and Net Charge-off Ratios	30
Year-to-Date Net Charge-offs and Net Charge-off Ratios	31
Allocation of the Allowance for Credit Losses by Product Type	32
Exhibit A: Non-GAAP Reconciliations	33

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)
		Six Months Ended			Second			First			Fourth			Third			Second
		June 30
						Quarter			Quarter			Quarter			Quarter			Quarter
		2021			2020				2021			2021			2020			2020			2020
Income statement
Net interest income	$	20,430	$	22,978		$	10,233	$	10,197	$	10,253	$	10,129	$	10,848
Noninterest income		23,857			22,115				11,233			12,624			9,846			10,207			11,478
Total revenue, net of interest expense		44,287			45,093				21,466			22,821			20,099			20,336			22,326
Provision for credit losses		(3,481)			9,878				(1,621)			(1,860)			53			1,389			5,117
Noninterest expense		30,560			26,885				15,045			15,515			13,927			14,401			13,410
Income before income taxes		17,208			8,330				8,042			9,166			6,119			4,546			3,799
Pretax, pre-provision income (1)		13,727			18,208				6,421			7,306			6,172			5,935			8,916
Income tax expense		(66)			787				(1,182)			1,116			649			(335)			266
Net income		17,274			7,543				9,224			8,050			5,470			4,881			3,533
Preferred stock dividends		750			718				260			490			262			441			249
Net income applicable to common shareholders		16,524			6,825				8,964			7,560			5,208			4,440			3,284
Diluted earnings per common share		1.90			0.77				1.03			0.86			0.59			0.51			0.37
Average diluted common shares issued and outstanding		8,776.2			8,813.3				8,735.5			8,755.6			8,785.0			8,777.5			8,768.1
Dividends paid per common share	$	0.36	$	0.36		$	0.18	$	0.18	$	0.18	$	0.18	$	0.18
Performance ratios
Return on average assets		1.18 %			0.58 %				1.23 %			1.13 %			0.78 %			0.71 %			0.53 %
Return on average common shareholders' equity		13.31			5.67				14.33			12.28			8.39			7.24			5.44
Return on average shareholders' equity		12.70			5.71				13.47			11.91			8.03			7.26			5.34
Return on average tangible common shareholders' equity (2)		18.51			7.97				19.90			17.08			11.73			10.16			7.63
Return on average tangible shareholders' equity (2)		17.07			7.76				18.11			16.01			10.84			9.84			7.23
Efficiency ratio		69.00			59.62				70.09			67.98			69.29			70.81			60.06
At period end
Book value per share of common stock	$	29.89	$	27.96		$	29.89	$	29.07	$	28.72	$	28.33	$	27.96
Tangible book value per share of common stock (2)		21.61			19.90				21.61			20.90			20.60			20.23			19.90
Market capitalization		349,925			205,772				349,925			332,337			262,206			208,656			205,772
Number of financial centers - U.S.		4,296			4,298				4,296			4,324			4,312			4,309			4,298
Number of branded ATMs - U.S.		16,795			16,862				16,795			16,905			16,904			16,962			16,862
Headcount		211,608			212,796				211,608			212,201			212,505			211,225			212,796

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 33.)

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)
			Six Months Ended				Second			First			Fourth			Third			Second
			June 30				Quarter			Quarter			Quarter			Quarter			Quarter
			2021			2020				2021			2021			2020			2020			2020
Net interest income
Interest income	$	22,782	$	28,638		$	11,387	$	11,395	$	11,461	$	11,486	$	12,540
Interest expense			2,352			5,660				1,154			1,198			1,208			1,357			1,692
Net interest income			20,430			22,978				10,233			10,197			10,253			10,129			10,848
Noninterest income
Fees and commissions			19,241			16,713				9,705			9,536			9,061			8,777			8,392
Market making and similar activities			5,355			5,294				1,826			3,529			1,372			1,689			2,487
Other income (loss)			(739)			108				(298)			(441)			(587)			(259)			599
Total noninterest income			23,857			22,115				11,233			12,624			9,846			10,207			11,478
Total revenue, net of interest expense			44,287			45,093				21,466			22,821			20,099			20,336			22,326
Provision for credit losses			(3,481)			9,878				(1,621)			(1,860)			53			1,389			5,117
Noninterest expense
Compensation and benefits			18,389			16,335				8,653			9,736			8,190			8,200			7,994
Occupancy and equipment			3,589			3,504				1,759			1,830			1,839			1,798			1,802
Information processing and communications			2,873			2,474				1,448			1,425			1,415			1,333			1,265
Product delivery and transaction related			1,953			1,588				976			977			915			930			811
Marketing			1,181			930				810			371			463			308			492
Professional fees			829			756				426			403			488			450			381
Other general operating			1,746			1,298				973			773			617			1,382			665
Total noninterest expense			30,560			26,885				15,045			15,515			13,927			14,401			13,410
Income before income taxes			17,208			8,330				8,042			9,166			6,119			4,546			3,799
Income tax expense			(66)			787				(1,182)			1,116			649			(335)			266
Net income	$	17,274	$	7,543		$	9,224	$	8,050	$	5,470	$	4,881	$	3,533
Preferred stock dividends			750			718				260			490			262			441			249
Net income applicable to common shareholders	$	16,524	$	6,825		$	8,964	$	7,560	$	5,208	$	4,440	$	3,284
Per common share information
Earnings		$	1.91		$	0.78			$	1.04		$	0.87		$	0.60		$	0.51		$	0.38
Diluted earnings			1.90			0.77				1.03			0.86			0.59			0.51			0.37
Average common shares issued and outstanding			8,660.4			8,777.6				8,620.8			8,700.1			8,724.9			8,732.9			8,739.9
Average diluted common shares issued and outstanding			8,776.2			8,813.3				8,735.5			8,755.6			8,785.0			8,777.5			8,768.1

Consolidated Statement of Comprehensive Income

(Dollars in millions)
	Six Months Ended		Second		First			Fourth			Third		Second
	June 30		Quarter	Quarter		Quarter		Quarter		Quarter
	2021			2020				2021			2021			2020			2020			2020
Net income	$ 17,274	$	7,543		$	9,224		$	8,050	$	5,470	$	4,881	$	3,533
Other comprehensive income (loss), net-of-tax:
Net change in debt securities	(1,090)			4,693				(250)			(840)			5			101			(102)
Net change in debit valuation adjustments	265			53				149			116			(493)			(58)			(1,293)
Net change in derivatives	(699)			732				415			(1,114)			18			76			315
Employee benefit plan adjustments	120			100				69			51			(242)			44			57
Net change in foreign currency translation adjustments	(3)			(107)				26			(29)			34			21			(19)
Other comprehensive income (loss)	(1,407)			5,471				409			(1,816)			(678)			184			(1,042)
Comprehensive income	$ 15,867	$	13,014		$	9,633		$	6,234	$	4,792	$	5,065	$	2,491
Certain prior-period amounts have been reclassified to conform to current-period presentation.
Current-period information is preliminary and based on company data available at the time of the presentation.											3

Bank of America Corporation and Subsidiaries

Net Interest Income and Noninterest Income

(Dollars in millions)
		Six Months Ended			Second			First			Fourth			Third			Second
		June 30				Quarter			Quarter			Quarter			Quarter			Quarter
		2021			2020				2021			2021			2020			2020			2020
Net interest income
Interest income
Loans and leases	$	14,357	$	18,532		$	7,123	$	7,234	$	7,603	$	7,894	$	8,569
Debt securities		5,550			5,283				2,820			2,730			2,377			2,130			2,440
Federal funds sold and securities borrowed or purchased under agreements to resell		(49)			845				(42)			(7)			3			55			26
Trading account assets		1,826			2,255				954			872			925			948			1,008
Other interest income		1,098			1,723				532			566			553			459			497
Total interest income		22,782			28,638				11,387			11,395			11,461			11,486			12,540
Interest expense
Deposits		261			1,557				128			133			159			227			373
Short-term borrowings		(164)			1,048				(85)			(79)			(37)			(24)			(72)
Trading account liabilities		539			552				293			246			210			212			223
Long-term debt		1,716			2,503				818			898			876			942			1,168
Total interest expense		2,352			5,660				1,154			1,198			1,208			1,357			1,692
Net interest income	$	20,430		$	22,978			$	10,233		$	10,197		$	10,253		$	10,129		$	10,848
Noninterest income
Fees and commissions
Card income
Interchange fees (1)	$	2,277	$	1,622		$	1,210	$	1,067	$	1,160	$	1,172	$	830
Other card income		744			899				376			368			407			396			419
Total card income		3,021			2,521				1,586			1,435			1,567			1,568			1,249
Service charges
Deposit-related fees		3,052			2,926				1,557			1,495			1,550			1,515			1,299
Lending-related fees		614			539				317			297			309			302			263
Total service charges		3,666			3,465				1,874			1,792			1,859			1,817			1,562
Investment and brokerage services
Asset management fees		6,158			5,165				3,156			3,002			2,803			2,740			2,483
Brokerage fees		2,028			2,015				967			1,061			968			883			939
Total investment and brokerage services		8,186			7,180				4,123			4,063			3,771			3,623			3,422
Investment banking fees
Underwriting income		2,860			2,371				1,314			1,546			1,088			1,239			1,523
Syndication fees		701			501				401			300			227			133			230
Financial advisory services		807			675				407			400			549			397			406
Total investment banking fees		4,368			3,547				2,122			2,246			1,864			1,769			2,159
Total fees and commissions		19,241			16,713				9,705			9,536			9,061			8,777			8,392
Market making and similar activities		5,355			5,294				1,826			3,529			1,372			1,689			2,487
Other income (loss)		(739)			108				(298)			(441)			(587)			(259)			599
Total noninterest income	$	23,857		$	22,115			$	11,233		$	12,624		$	9,846		$	10,207		$	11,478

1. Gross interchange fees and merchant income were $5.4 billion and $4.3 billion and are presented net of $3.1 billion and $2.7 billion of expenses for rewards and partner payments as well as certain other card costs for the six months ended June 30, 2021 and 2020. Gross interchange fees and merchant income were $2.9 billion, $2.5 billion, $2.5 billion, $2.4 billion and $2.0 billion and are presented net of $1.7 billion, $1.4 billion, $1.5 billion, $1.4 billion and $1.2 billion of expenses for rewards and partner payments as well as certain other card costs for the second and first quarters of 2021 and the fourth, third and second quarters of 2020, respectively.

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

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

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