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BANK OF AMERICA CORP DE

For the period ended Dec 31, 2023. Filed Feb 20, 2024.

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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2023 · Filed Feb 20, 2024

BAC$49.42-0.7%Stored close · as of Nov 6, 2026

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Contents

Supplemental Financial Data

Non-GAAP Financial Measures

In this Form 10-K, 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, net interest income on an FTE basis is 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 Tables 6 and 7.

For more information on the reconciliation of these non-GAAP financial measures to the corresponding GAAP financial measures, see Non-GAAP Reconciliations on page 85.

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

29 Bank of America

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 170.

Our consolidated key performance indicators, which include

various equity and credit metrics, are presented in Table 1 on page 26, Table 6 on page 30 and Table 7 on page 31.

For information on key segment performance metrics, see Business Segment Operations on page 34.

Table 6 · Selected Annual Financial Data
(In millions, except per share information)202320222021
Income statement
Net interest income$56,931$52,462$42,934
Noninterest income41,65042,48846,179
Total revenue, net of interest expense98,58194,95089,113
Provision for credit losses4,3942,543(4,594)
Noninterest expense65,84561,43859,731
Income before income taxes28,34230,96933,976
Income tax expense1,8273,4411,998
Net income26,51527,52831,978
Net income applicable to common shareholders24,86626,01530,557
Average common shares issued and outstanding8,028.68,113.78,493.3
Average diluted common shares issued and outstanding8,080.58,167.58,558.4
Performance ratios
Return on average assets (1)0.84%0.88%1.05%
Return on average common shareholders’ equity (1)9.7510.7512.23
Return on average tangible common shareholders’ equity (1, 2)13.4615.1517.02
Return on average shareholders’ equity (1)9.3610.1811.68
Return on average tangible shareholders’ equity (1, 2)12.4413.7615.71
Total ending equity to total ending assets9.178.958.52
Common equity ratio (1)8.288.027.74
Total average equity to total average assets8.998.629.02
Dividend payout (1)29.6526.7721.51
Per common share data
Earnings$3.10$3.21$3.60
Diluted earnings3.083.193.57
Dividends paid0.920.860.78
Book value (1)33.3430.6130.37
Tangible book value (2)24.4621.8321.68
Market capitalization$265,840$264,853$359,383
Average balance sheet
Total loans and leases$1,046,256$1,016,782$920,401
Total assets3,153,5133,135,8943,034,623
Total deposits1,887,5411,986,1581,914,286
Long-term debt248,853246,479237,703
Common shareholders’ equity254,956241,981249,787
Total shareholders’ equity283,353270,299273,757
Asset quality
Allowance for credit losses (3)$14,551$14,222$13,843
Nonperforming loans, leases and foreclosed properties (4)5,6303,9784,697
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (4)1.27%1.22%1.28%
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (4)243333271
Net charge-offs$3,799$2,172$2,243
Net charge-offs as a percentage of average loans and leases outstanding (4)0.36%0.21%0.25%
Capital ratios at year end (5)
Common equity tier 1 capital11.8%11.2%10.6%
Tier 1 capital13.513.012.1
Total capital15.214.914.1
Tier 1 leverage7.17.06.4
Supplementary leverage ratio6.15.95.5
Tangible equity (2)7.16.86.4
Tangible common equity (2)6.25.95.7

(1)For definition, see Key Metrics on page 170.

(2)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 29 and Non-GAAP Reconciliations on page 85.

(3)Includes the allowance for loan and leases losses and the reserve for unfunded lending commitments.

(4)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 62 and corresponding Table 27 and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 66 and corresponding Table 33.

(5)For more information, including which approach is used to assess capital adequacy, see Capital Management on page 47.

Table 7Selected Quarterly Financial Data
2023 Quarters2022 Quarters
(In millions, except per share information)FourthThirdSecondFirstFourthThirdSecondFirst
Income statement
Net interest income$13,946$14,379$14,158$14,448$14,681$13,765$12,444$11,572
Noninterest income8,01310,78811,03911,8109,85110,73710,24411,656
Total revenue, net of interest expense21,95925,16725,19726,25824,53224,50222,68823,228
Provision for credit losses1,1041,2341,1259311,09289852330
Noninterest expense17,73115,83816,03816,23815,54315,30315,27315,319
Income before income taxes3,1248,0958,0349,0897,8978,3016,8927,879
Income tax expense(20)2936269287651,219645812
Net income3,1447,8027,4088,1617,1327,0826,2477,067
Net income applicable to common shareholders2,8387,2707,1027,6566,9046,5795,9326,600
Average common shares issued and outstanding7,990.98,017.18,040.98,065.98,088.38,107.78,121.68,136.8
Average diluted common shares issued and outstanding8,062.58,075.98,080.78,182.38,155.78,160.88,163.18,202.1
Performance ratios
Return on average assets (1)0.39%0.99%0.94%1.07%0.92%0.90%0.79%0.89%
Four-quarter trailing return on average assets (2)0.840.980.960.920.880.870.890.99
Return on average common shareholders’ equity (1)4.3311.2411.2112.4811.2410.799.9311.02
Return on average tangible common shareholders’ equity (3)5.9215.4715.4917.3815.7915.2114.0515.51
Return on average shareholders’ equity (1)4.3210.8610.5211.9410.3810.379.3410.64
Return on average tangible shareholders’ equity (3)5.7114.4114.0015.9813.9813.9912.6614.40
Total ending equity to total ending assets9.179.109.078.778.958.778.658.23
Common equity ratio (1)8.288.208.167.888.027.827.717.40
Total average equity to total average assets8.989.118.898.958.878.738.498.40
Dividend payout (1)67.4226.3924.8823.1725.7127.0628.6825.86
Per common share data
Earnings$0.36$0.91$0.88$0.95$0.85$0.81$0.73$0.81
Diluted earnings0.350.900.880.940.850.810.730.80
Dividends paid0.240.240.220.220.220.220.210.21
Book value (1)33.3432.6532.0531.5830.6129.9629.8729.70
Tangible book value (3)24.4623.7923.2322.7821.8321.2121.1320.99
Market capitalization$265,840$216,942$228,188$228,012$264,853$242,338$250,136$332,320
Average balance sheet
Total loans and leases$1,050,705$1,046,254$1,046,608$1,041,352$1,039,247$1,034,334$1,014,886$977,793
Total assets3,213,1593,128,4663,175,3583,096,0583,074,2893,105,5463,157,8553,207,702
Total deposits1,905,0111,876,1531,875,3531,893,6491,925,5441,962,7752,012,0792,045,811
Long-term debt256,262245,819248,480244,759243,871250,204245,781246,042
Common shareholders’ equity260,221256,578254,028248,855243,647241,882239,523242,865
Total shareholders’ equity288,618284,975282,425277,252272,629271,017268,197269,309
Asset quality
Allowance for credit losses (4)$14,551$14,640$14,338$13,951$14,222$13,817$13,434$13,483
Nonperforming loans, leases and foreclosed properties (5)5,6304,9934,2744,0833,9784,1564,3264,778
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (5)1.27%1.27%1.24%1.20%1.22%1.20%1.17%1.23%
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (5)243275314319333309288262
Net charge-offs$1,192$931$869$807$689$520$571$392
Annualized net charge-offs as a percentage of average loans and leases outstanding (5)0.45%0.35%0.33%0.32%0.26%0.20%0.23%0.16%
Capital ratios at period end (6)
Common equity tier 1 capital11.8%11.9%11.6%11.4%11.2%11.0%10.5%10.4%
Tier 1 capital13.513.613.313.113.012.812.312.0
Total capital15.215.415.115.014.914.714.214.0
Tier 1 leverage7.17.37.17.17.06.86.56.3
Supplementary leverage ratio6.16.26.06.05.95.85.55.4
Tangible equity (3)7.17.07.06.76.86.66.56.2
Tangible common equity (3)6.26.16.15.85.95.75.65.3
Total loss-absorbing capacity and long-term debt metrics
Total loss-absorbing capacity to risk-weighted assets29.0%29.3%28.8%28.8%29.0%28.9%27.8%27.2%
Total loss-absorbing capacity to supplementary leverage exposure13.013.313.013.113.213.012.612.2
Eligible long-term debt to risk-weighted assets14.514.814.614.815.215.214.714.4
Eligible long-term debt to supplementary leverage exposure6.56.76.66.76.96.86.66.5

(1)For definitions, see Key Metrics on page 170.

(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 29 and Non-GAAP Reconciliations on page 85.

(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 62 and corresponding Table 27 and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 66 and corresponding Table 33.

(6)For more information, including which approach is used to assess capital adequacy, see Capital Management on page 47.

31 Bank of America

Table 8Average Balances and Interest Rates - FTE Basis
AverageBalance · InterestIncome/Expense (1) · Yield/Rate · AverageBalance · InterestIncome/Expense (1) · Yield/Rate · AverageBalance · InterestIncome/Expense (1) · Yield/Rate
(Dollars in millions) · 2023 · 2022 · 2021
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks$324,389$15,9654.92%$195,564$2,5911.32%$255,595$1720.07%
Time deposits placed and other short-term investments9,7044654.799,2091321.447,603150.19
Federal funds sold and securities borrowed or purchased under agreements to resell (2)291,66918,6796.40292,7994,5601.56267,257(90)(0.03)
Trading account assets189,2638,8494.68158,1025,5863.53147,8913,8232.58
Debt securities794,19220,3322.55922,73017,2071.86905,16912,4331.38
Loans and leases (3):
Residential mortgage229,0016,9233.02227,6046,3752.80216,9835,9952.76
Home equity25,9691,4715.6727,3649593.5031,0141,0663.44
Credit card96,19010,43610.8583,5398,40810.0675,3857,77210.31
Direct/Indirect and other consumer104,5715,2004.97107,0503,3173.1096,4722,2762.36
Total consumer455,73124,0305.27445,55719,0594.28419,85417,1094.08
U.S. commercial378,21219,4945.15366,74812,2513.34324,7958,6062.65
Non-U.S. commercial125,4868,0236.39125,2223,7022.9699,5841,7521.76
Commercial real estate (4)72,9815,1627.0765,4212,5953.9760,3031,4962.48
Commercial lease financing13,8466464.6713,8344733.4215,8654622.91
Total commercial590,52533,3255.64571,22519,0213.33500,54712,3162.46
Total loans and leases1,046,25657,3555.481,016,78238,0803.75920,40129,4253.20
Other earning assets98,1279,1849.36105,6744,8474.59112,5122,3212.06
Total earning assets2,753,600130,8294.752,700,86073,0032.702,616,42848,0991.84
Cash and due from banks26,07628,02931,214
Other assets, less allowance for loan and lease losses373,837407,005386,981
Total assets$3,153,513$3,135,894$3,034,623
Interest-bearing liabilities
U.S. interest-bearing deposits:
Demand and money market deposits952,73615,5271.63%987,2473,1450.32%925,9703140.03%
Time and savings deposits254,4767,3662.89166,4908180.49161,5121700.11
Total U.S. interest-bearing deposits1,207,21222,8931.901,153,7373,9630.341,087,4824840.04
Non-U.S. interest-bearing deposits96,8453,2703.3880,9517550.9382,769530.06
Total interest-bearing deposits1,304,05726,1632.011,234,6884,7180.381,170,2515370.05
Federal funds purchased, securities loaned or sold under agreements to repurchase301,01520,5836.84214,3694,1171.92210,8484610.22
Short-term borrowings and other interest-bearing liabilities (2)152,5489,9706.54137,2772,8612.08106,975(819)(0.77)
Trading account liabilities46,0832,0434.4351,2081,5383.0054,1071,1282.08
Long-term debt248,85314,5725.86246,4796,8692.79237,7033,4311.44
Total interest-bearing liabilities2,052,55673,3313.571,884,02120,1031.071,779,8844,7380.27
Noninterest-bearing sources:
Noninterest-bearing deposits583,484751,470744,035
Other liabilities (5)234,120230,104236,947
Shareholders’ equity283,353270,299273,757
Total liabilities and shareholders’ equity$3,153,513$3,135,894$3,034,623
Net interest spread1.18%1.63%1.57%
Impact of noninterest-bearing sources0.900.330.09
Net interest income/yield on earning assets (6)$57,4982.08%$52,9001.96%$43,3611.66%

(1)Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 77.

(2)For more information on negative interest, see Note 1 – Summary of Significant Accounting Principlesto the Consolidated Financial Statements.

(3)Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.

(4)Includes U.S. commercial real estate loans of $67.2 billion, $61.1 billion and $56.5 billion, and non-U.S. commercial real estate loans of $5.8 billion, $4.3 billion and $3.8 billion for 2023, 2022 and 2021, respectively.

(5)Includes $40.2 billion, $30.7 billion and $30.4 billion of structured notes and liabilities for 2023, 2022 and 2021, respectively.

(6)Net interest income includes FTE adjustments of $567 million, $438 million and $427 million in 2023, 2022 and 2021, respectively.

Table 9 · Analysis of Changes in Net Interest Income - FTE Basis
Due to Change in (1) · Net Change · Due to Change in (1) · Net Change
Volume · Rate · Volume · Rate
(Dollars in millions) · From 2022 to 2023 · From 2021 to 2022
Increase (decrease) in interest income
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks$1,691$11,683$13,374$(35)$2,454$2,419
Time deposits placed and other short-term investments83253332115117
Federal funds sold and securities borrowed or purchased under agreements to resell(10)14,12914,11924,6484,650
Trading account assets1,0952,1683,2632561,5071,763
Debt securities(2,435)5,5603,1253014,4734,774
Loans and leases
Residential mortgage3751154828793380
Home equity(50)562512(125)18(107)
Credit card1,2697592,028841(205)636
Direct/Indirect and other consumer(75)1,9581,8832507911,041
Total consumer4,9711,950
U.S. commercial3816,8627,2431,1132,5323,645
Non-U.S. commercial124,3094,3214521,4981,950
Commercial real estate3022,2652,5671269731,099
Commercial lease financing1172173(59)7011
Total commercial14,3046,705
Total loans and leases19,2758,655
Other earning assets(343)4,6804,337(144)2,6702,526
Net increase (decrease) in interest income$57,826$24,904
Increase (decrease) in interest expense
U.S. interest-bearing deposits
Demand and money market deposit accounts$(96)$12,478$12,382$(18)$2,849$2,831
Time and savings deposits4296,1196,54813635648
Total U.S. interest-bearing deposits18,9303,479
Non-U.S. interest-bearing deposits1462,3692,515(4)706702
Total interest-bearing deposits21,4454,181
Federal funds purchased and securities loaned or sold under agreements to repurchase1,66214,80416,466113,6453,656
Short-term borrowings and other interest-bearing liabilities3126,7977,109(238)3,9183,680
Trading account liabilities(156)661505(63)473410
Long-term debt747,6297,7031183,3203,438
Net increase (decrease) in interest expense53,22815,365
Net increase (decrease) in net interest income (2)$4,598$9,539

(1)The changes for each category of interest income and expense are divided between the portion of change attributable to the variance in volume and the portion of change attributable to the variance in rate for that category. The unallocated change in rate or volume variance is allocated between the rate and volume variances.

(2)Includes an increase in FTE basis adjustments of $129 million from 2022 to 2023 and $11 million from 2021 to 2022.

33 Bank of America

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.