BANK OF AMERICA CORP DE
For the period ended Mar 31, 2025. Filed Apr 30, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 30, 2025
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Allowance for Credit Losses
The allowance for credit losses increased $30 million from December 31, 2024 to $14.4 billion at March 31, 2025, which included a reserve decrease of $18 million and a reserve increase of $48 million related to the consumer and commercial
portfolios, respectively.
Table 35 presents an allocation of the allowance for credit losses by product type at March 31, 2025 and December 31, 2024.
| Table 35 | Allocation of the Allowance for Credit Losses by Product Type | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Amount · Percent ofTotal · Percent ofLoans andLeasesOutstanding (1) · Amount · Percent ofTotal · Percent ofLoans andLeasesOutstanding (1) | ||||||||||
| (Dollars in millions) · March 31, 2025 · December 31, 2024 | ||||||||||
| Allowance for loan and lease losses | ||||||||||
| Residential mortgage | $290 | 2.19% | 0.12% | $264 | 1.99% | 0.12% | ||||
| Home equity | 50 | 0.38 | 0.19 | 29 | 0.22 | 0.11 | ||||
| Credit card | 7,434 | 56.08 | 7.45 | 7,515 | 56.76 | 7.26 | ||||
| Direct/Indirect consumer | 710 | 5.36 | 0.66 | 700 | 5.29 | 0.65 | ||||
| Other consumer | 68 | 0.51 | n/m | 62 | 0.47 | n/m | ||||
| Total consumer | 8,552 | 64.52 | 1.83 | 8,570 | 64.73 | 1.84 | ||||
| U.S. commercial (2) | 2,739 | 20.66 | 0.66 | 2,637 | 19.91 | 0.65 | ||||
| Non-U.S. commercial | 720 | 5.43 | 0.51 | 778 | 5.88 | 0.57 | ||||
| Commercial real estate | 1,204 | 9.08 | 1.84 | 1,219 | 9.21 | 1.85 | ||||
| Commercial lease financing | 41 | 0.31 | 0.27 | 36 | 0.27 | 0.23 | ||||
| Total commercial | 4,704 | 35.48 | 0.74 | 4,670 | 35.27 | 0.75 | ||||
| Allowance for loan and lease losses | 13,256 | 100.00% | 1.20 | 13,240 | 100.00% | 1.21 | ||||
| Reserve for unfunded lending commitments | 1,110 | 1,096 | ||||||||
| Allowance for credit losses | $14,366 | $14,336 | ||||||||
(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.
(2)Includes allowance for loan and lease losses for U.S. small business commercial loans of $1.3 billion and $1.2 billion at March 31, 2025 and December 31, 2024.
Net charge-offs of $1.5 billion for the three months ended March 31, 2025 were relatively unchanged compared to the same period in 2024. The provision for credit losses increased $161 million to $1.5 billion for the three months ended March 31, 2025 compared to the same period in 2024. The provision for credit losses for the three months ended March 31, 2025 was primarily driven by credit card loans. The provision for credit losses for the consumer portfolio, including unfunded lending commitments, increased $140 million to $1.1 billion for the three months ended March 31, 2025 compared to the same period in 2024. The provision for credit losses for the commercial portfolio, including unfunded lending commitments,
increased $21 million to $381 million for the three months ended March 31, 2025 compared to the same period in 2024.
Table 36 presents a rollforward of the allowance for credit losses, including certain loan and allowance ratios for the three months ended March 31, 2025 and 2024. For more information on the Corporation’s credit loss accounting policies and activity related to the allowance for credit losses, see Note 1 – Summary of Significant Accounting Principlesto the Consolidated Financial Statements of the Corporation’s 2024 Annual Report on Form 10-K and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.
| Table 36 · Allowance for Credit Losses | ||
|---|---|---|
| (Dollars in millions) | 2025 | 2024 |
| Allowance for loan and lease losses, January 1 | $13,240 | $13,342 |
| Loans and leases charged off | ||
| Residential mortgage | (3) | (8) |
| Home equity | (3) | (3) |
| Credit card | (1,178) | (1,045) |
| Direct/Indirect consumer | (105) | (102) |
| Other consumer | (66) | (78) |
| Total consumer charge-offs | (1,355) | (1,236) |
| U.S. commercial (1) | (244) | (196) |
| Non-U.S. commercial | (8) | (1) |
| Commercial real estate | (126) | (304) |
| Commercial lease financing | — | (1) |
| Total commercial charge-offs | (378) | (502) |
| Total loans and leases charged off | (1,733) | (1,738) |
| Recoveries of loans and leases previously charged off | ||
| Residential mortgage | 3 | 5 |
| Home equity | 15 | 16 |
| Credit card | 177 | 146 |
| Direct/Indirect consumer | 35 | 37 |
| Other consumer | 6 | 4 |
| Total consumer recoveries | 236 | 208 |
| U.S. commercial (2) | 41 | 22 |
| Non-U.S. commercial | 1 | 10 |
| Commercial real estate | 3 | — |
| Commercial lease financing | — | — |
| Total commercial recoveries | 45 | 32 |
| Total recoveries of loans and leases previously charged off | 281 | 240 |
| Net charge-offs | (1,452) | (1,498) |
| Provision for loan and lease losses | 1,466 | 1,370 |
| Other | 2 | (1) |
| Allowance for loan and lease losses, March 31 | 13,256 | 13,213 |
| Reserve for unfunded lending commitments, January 1 | 1,096 | 1,209 |
| Provision for unfunded lending commitments | 14 | (51) |
| Reserve for unfunded lending commitments, March 31 | 1,110 | 1,158 |
| Allowance for credit losses, March 31 | $14,366 | $14,371 |
| Loan and allowance ratios (3): | ||
| Loans and leases outstanding at March 31 | $1,105,239 | $1,046,218 |
| Allowance for loan and lease losses as a percentage of total loans and leases outstanding at March 31 | 1.20% | 1.26% |
| Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at March 31 | 1.83 | 1.87 |
| Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at March 31 | 0.74 | 0.80 |
| Average loans and leases outstanding | $1,088,296 | $1,044,723 |
| Net charge-offs as a percentage of average loans and leases outstanding | 0.54% | 0.58% |
| Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at March 31 | 218 | 225 |
| Ratio of the allowance for loan and lease losses at March 31 to annualized net charge-offs | 2.25 | 2.19 |
| Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at March 31 (4) | $8,663 | $8,353 |
| Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at March 31 (4) | 76% | 83% |
(1)Includes U.S. small business commercial charge-offs of $147 million and $118 million for the three months ended March 31, 2025 and 2024.
(2)Includes U.S. small business commercial recoveries of $14 million and $10 million for the three months ended March 31, 2025 and 2024.
(3)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.
(4)Primarily includes amounts related to credit card and unsecured consumer lending portfolios in Consumer Banking.
37 Bank of America
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