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BANK OF AMERICA CORP /DE/ - Quarter Report: 2022 March (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, 2022
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:
(704) 386-5681
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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareBACNew York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a shareBAC PrENew York Stock Exchange
 of Floating Rate Non-Cumulative Preferred Stock, Series E
Depositary Shares, each representing a 1/1,000th interest in a shareBAC PrBNew York Stock Exchange
 of 6.000% Non-Cumulative Preferred Stock, Series GG
Depositary Shares, each representing a 1/1,000th interest in a shareBAC PrKNew York Stock Exchange
 of 5.875% Non-Cumulative Preferred Stock, Series HH
7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series LBAC PrLNew York Stock Exchange
Depositary Shares, each representing a 1/1,200th interest in a shareBML PrGNew York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 1



Title of each classTrading Symbol(s)Name of each exchange on which registered
Depositary Shares, each representing a 1/1,200th interest in a shareBML PrHNew 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 shareBML PrJNew 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 shareBML PrLNew 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 CapitalBAC/PFNew York Stock Exchange
 Trust XIII (and the guarantee related thereto)
5.63% Fixed to Floating Rate Preferred Hybrid Income Term SecuritiesBAC/PGNew York Stock Exchange
 of BAC Capital Trust XIV (and the guarantee related thereto)
Income Capital Obligation Notes initially due December 15, 2066 ofMER PrKNew York Stock Exchange
Bank of America Corporation
Senior Medium-Term Notes, Series A, Step Up Callable Notes, dueBAC/31BNew 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 PrMNew York Stock Exchange
 5.375% Non-Cumulative Preferred Stock, Series KK
Depositary Shares, each representing a 1/1,000th interest in a shareBAC PrNNew York Stock Exchange
of 5.000% Non-Cumulative Preferred Stock, Series LL
Depositary Shares, each representing a 1/1,000th interest in a share ofBAC PrONew York Stock Exchange
4.375% Non-Cumulative Preferred Stock, Series NN
Depositary Shares, each representing a 1/1,000th interest in a share ofBAC PrPNew York Stock Exchange
4.125% Non-Cumulative Preferred Stock, Series PP
Depositary Shares, each representing a 1/1,000th interest in a share ofBAC PrQNew York Stock Exchange
4.250% Non-Cumulative Preferred Stock, Series QQ
Depositary Shares, each representing a 1/1,000th interest in a shareBAC PrSNew 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 filerAccelerated filerNon-accelerated filerSmaller 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 28, 2022, there were 8,056,881,363 shares of Bank of America Corporation Common Stock outstanding.



Bank of America Corporation and Subsidiaries
March 31, 2022
Form 10-Q
INDEX
Part I. Financial Information
Item 1. Financial StatementsPage
Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses
Note 14Fair Value Measurements
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Part II. Other Information
Item 5. Other Information
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, provision for credit losses, expenses, efficiency ratio, capital measures, strategy, 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 2021 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 the London Interbank Offered Rate and other 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 and inflationary environment on the Corporation’s business, financial condition and results of operations; 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 the economic recovery 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 the Coronavirus Aid, Relief, and Economic Security Act and any similar or related rules and regulations; a failure or disruption in or breach of the Corporation’s operational or security systems or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns; 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 of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic and its impact on the U.S. and/or global financial market conditions and our business, results of operations, financial condition and prospects; the impact of
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natural disasters, extreme weather events, military conflict (including the Russia/Ukraine conflict 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, “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, 2022, the Corporation had $3.2 trillion in assets and a headcount of approximately 208,000 employees.
As of March 31, 2022, we served clients through operations across the U.S., its territories and approximately 35 countries. Our retail banking footprint covers all major markets in the U.S., and we serve approximately 67 million consumer and small business clients with approximately 4,100 retail financial centers, approximately 16,000 ATMs, and leading digital banking platforms (www.bankofamerica.com) with approximately 42 million active users, including approximately 34 million active mobile users. We offer industry-leading support to approximately three million small business households. Our GWIM businesses, with client balances of $3.7 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 Corporations 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 the Investor Relations portion of our website, 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
Russia/Ukraine Conflict
Due to the Russia/Ukraine conflict, there has been significant volatility in financial markets and commodities markets. In addition, multiple jurisdictions have implemented various economic sanctions on select Russian government and military leaders, financial institutions, business leaders and the Central Bank of Russia. The government of Russia has also implemented economic sanctions on certain non-Russian institutions and prevented outflows of selected currencies from Russia.
At March 31, 2022, our direct net country exposure to Russia was $759 million, which primarily consisted of outstanding loans and leases totaling $679 million. All of our loans to Russian counterparties have been downgraded and reported as reservable criticized exposure, with their expected credit losses incorporated into our estimate of the allowance for credit losses. At March 31, 2022, our net country exposure to Ukraine was not significant. For more information on our Russian exposure, see Credit Risk Management on page 25.
While the Corporation’s direct exposure to Russia is limited, the potential duration and impact of the Russia/Ukraine conflict and sanctions regime, including the impact of future sanctions, on global markets, institutions and macroeconomic conditions generally, as well as other future possible geopolitical consequences arising from the current conflict, remain uncertain. Episodes of economic and market volatility and pressure on supply chains and inflation may continue to occur and could worsen if the conflict persists or increases in severity. As a result, the Corporation's businesses, results of operations and financial position could be adversely affected by any of these factors directly or indirectly arising from the Russia/Ukraine conflict. For more information on the risks related to the Russia/Ukraine conflict, see the Market and Geopolitical sections within Item 1A. Risk Factors of the Corporation’s 2021 Annual Report on Form 10-K.
Capital Management
On April 27, 2022, the Corporation announced that the Board of Directors (the Board) declared a quarterly cash common stock dividend of $0.21 per share, payable on June 24, 2022 to shareholders of record as of June 3, 2022.
For more information on our capital resources, see Capital Management on page 18.
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LIBOR and Other Benchmark Rates
Immediately after December 31, 2021, ICE Benchmark Administration (IBA) ceased publishing British Pound Sterling (GBP), Euro, Swiss Franc, and Japanese Yen (JPY) London Interbank Offered Rate (LIBOR) settings and one-week and two-month U.S. dollar (USD) LIBOR settings. However, certain GBP and JPY LIBOR settings that became no longer representative of the underlying market that such rates sought to measure are being published using a modified calculation (i.e., on a “synthetic” basis). The remaining USD LIBOR settings (i.e., overnight, one month, three month, six month and 12 month) will cease or become non-representative immediately after June 30, 2023.
The Corporation continues to execute its enterprise-wide transition program with respect to Interbank Offered Rates. The Corporation has ceased entering into new contracts that use USD LIBOR as a reference rate, subject to certain exceptions permitted under the supervisory guidance issued by the Federal Reserve, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC). The Corporation also continues to monitor a variety of market scenarios as part of its transition efforts, including risks associated with insufficient preparation by individual market participants or the overall market ecosystem, ability of market participants to transition away from impacted benchmarks, and access and demand by clients and market participants to liquidity in certain products, including LIBOR products.
As previously disclosed, the Corporation has remediated a significant majority of its notional contractual exposure to LIBOR products referencing USD LIBOR settings ceasing or becoming non-representative immediately after June 30, 2023 (i.e., updated to include fallback provisions to alternative reference rates (ARRs), e.g., the Secured Overnight Financing Rate for USD LIBOR, based on market-driven protocols, regulatory guidance, and industry-recommended fallback provisions and related mechanisms). The remaining non-remediated USD LIBOR exposure, a majority of which is made up of derivatives and commercial loans, represents a small minority of outstanding USD LIBOR notional contractual exposure of the Corporation and will require active dialogue with clients to modify the contracts. For any residual exposures after June 2023 that continue to have no fallback provisions, the Corporation is assessing and planning to leverage relevant contractual and statutory solutions, including the Adjustable Interest Rate (LIBOR) Act, enacted in March 2022 at the federal level in the U.S., and other relevant legislation, to transition such exposure to ARRs.
For more information on the expected replacement of LIBOR and other benchmark rates, see Executive Summary – Recent Developments – LIBOR and Other Benchmark Rates in the MD&A and Item 1A. Risk Factors – Other of the Corporation’s 2021 Annual Report on Form 10-K.
Financial Highlights
Table 1Summary Income Statement and Selected Financial Data
Three Months Ended March 31
(Dollars in millions, except per share information)20222021
Income statement  
Net interest income$11,572 $10,197 
Noninterest income11,656 12,624 
Total revenue, net of interest expense23,228 22,821 
Provision for credit losses30 (1,860)
Noninterest expense15,319 15,515 
Income before income taxes7,879 9,166 
Income tax expense812 1,116 
Net income7,067 8,050 
Preferred stock dividends467 490 
Net income applicable to common shareholders
$6,600 $7,560 
Per common share information  
Earnings$0.81 $0.87 
Diluted earnings0.80 0.86 
Dividends paid0.21 0.18 
Performance ratios  
Return on average assets (1)
0.89 %1.13 %
Return on average common shareholders’ equity (1)
11.02 12.28 
Return on average tangible common shareholders’ equity (2)
15.51 17.08 
Efficiency ratio (1)
65.95 67.98 
March 31 2022December 31
2021
Balance sheet
Total loans and leases$993,145 $979,124 
Total assets3,238,223 3,169,495 
Total deposits2,072,409 2,064,446 
Total liabilities2,971,606 2,899,429 
Total common shareholders’ equity239,480 245,358 
Total shareholders’ equity266,617 270,066 
(1)For definitions, see Key Metrics on page 92.
(2)Return on average tangible common shareholders’ equity is a non-GAAP financial measure. For more information and a corresponding reconciliation to the most closely related financial measures defined by accounting principles generally accepted in the United States of America (GAAP), see Non-GAAP Reconciliations on page 43.
Net income was $7.1 billion, or $0.80 per diluted share, for the three months ended March 31, 2022 compared to $8.1 billion, or $0.86 per diluted share, for the same period in 2021. The decrease in net income was primarily due to an increase in the provision for credit losses and lower noninterest income, partially offset by higher net interest income and lower noninterest expense.
Total assets increased $68.7 billion from December 31, 2021 to $3.2 trillion primarily due to higher trading account assets and federal funds sold and securities borrowed under agreements to resell to support Global Markets client activity, as well as loan growth.
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Total liabilities increased $72.2 billion from December 31, 2021 to $3.0 trillion primarily driven by an increase in federal funds purchased and securities loaned under agreements to repurchase, accrued expenses and other liabilities and trading account liabilities due to increased activity in Global Markets.
Shareholders’ equity decreased $3.4 billion from December 31, 2021 primarily due to market value decreases on derivatives and debt securities and returns of capital to shareholders through common stock repurchases and common and preferred stock dividends, partially offset by net income and the issuance of preferred stock.
Net Interest Income
Net interest income increased $1.4 billion to $11.6 billion for the three months ended March 31, 2022 compared to the same period in 2021. Net interest yield on a fully taxable-equivalent (FTE) basis increased 1 basis point (bp) to 1.69 percent. The increase in net interest income was primarily driven by the deployment of cash from deposit inflows into debt securities, loan growth and lower premium amortization, partially offset by a decrease in the acceleration of net capitalized loan fees due to Paycheck Protection Program (PPP) loan forgiveness. For more information on net interest yield and the 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 41.
Noninterest Income
Table 2Noninterest Income
Three Months Ended March 31
(Dollars in millions)20222021
Fees and commissions:
Card income$1,403 $1,435 
Service charges1,833 1,792 
Investment and brokerage services4,292 4,063 
Investment banking fees1,457 2,246 
Total fees and commissions8,985 9,536 
Market making and similar activities3,238 3,529 
Other income(567)(441)
Total noninterest income$11,656 $12,624 
Noninterest income decreased $968 million to $11.7 billion for the three months ended March 31, 2022 compared to the same period in 2021. The following highlights the significant changes.
●    Investment and brokerage services increased $229 million primarily driven by the impacts of higher market valuations and assets under management (AUM) flows, partially offset by declines in AUM pricing.
    Investment banking fees decreased $789 million primarily driven by lower equity issuance and debt issuance fees, partially offset by higher advisory fees.
    Market making and similar activities decreased $291 million primarily driven by a weaker performance in Fixed Income, Currencies and Commodities (FICC). The decrease was due to gains in commodities in the prior-year period for a weather-related event and a weaker trading environment for credit products in the current-year period, partially offset by improved performance across macro products, increased client activity and a strong trading performance in Equity derivatives.
    Other income decreased $126 million primarily due to certain valuation adjustments.

Provision for Credit Losses
The provision for credit losses increased $1.9 billion to $30 million for the three months ended March 31, 2022 compared to a benefit of $1.9 billion in the same period in 2021. The increase was primarily due to asset quality improvement offset by a reserve build related to Russian exposure and loan growth, compared to the impact of the improved macroeconomic outlook in the prior-year period. For more information on the provision for credit losses, see Allowance for Credit Losses on page 37.
Noninterest Expense
Table 3Noninterest Expense
Three Months Ended March 31
(Dollars in millions)20222021
Compensation and benefits$9,482 $9,736 
Occupancy and equipment1,760 1,830 
Information processing and communications1,540 1,425 
Product delivery and transaction related933 977 
Marketing397 371 
Professional fees450 403 
Other general operating757 773 
Total noninterest expense$15,319 $15,515 
Noninterest expense decreased $196 million to $15.3 billion for the three months ended March 31, 2022 compared to the same period in 2021. The prior-year period included the acceleration of expenses due to incentive compensation award changes and an impairment charge for real estate rationalization. In addition, the current-year period included lower net Coronavirus Disease 2019 (COVID-19) costs, partially offset by continued investment in the business.
Income Tax Expense
Table 4Income Tax Expense
Three Months Ended March 31
(Dollars in millions)20222021
Income before income taxes$7,879 $9,166 
Income tax expense812 1,116 
Effective tax rate10.3 %12.2 %
The effective tax rates for the three months ended March 31, 2022 and 2021 were primarily driven by our recurring tax preference benefits that mainly consist of tax credits from ESG investments in affordable housing and renewable energy. Absent the ESG tax credits, the effective tax rates would have been approximately 24 percent and 23 percent, respectively.
Supplemental Financial Data
Non-GAAP Financial Measures
In this 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
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for GAAP financial measures and may not be defined or calculated the same way as non-GAAP financial measures used by other companies.
We view net interest income and related ratios and analyses on an FTE basis, which when presented on a consolidated basis are non-GAAP financial measures. 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 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 43.
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 92.
Our consolidated key performance indicators, which include various equity and credit metrics, are presented in Table 1 on page 4 and Table 5 on page 7.
For information on key segment performance metrics, see Business Segment Operations on page 9.
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Table 5Selected Quarterly Financial Data
2022 Quarter2021 Quarters
(In millions, except per share information)FirstFourthThirdSecondFirst
Income statement  
Net interest income$11,572 $11,410 $11,094 $10,233 $10,197 
Noninterest income 11,656 10,650 11,672 11,233 12,624 
Total revenue, net of interest expense23,228 22,060 22,766 21,466 22,821 
Provision for credit losses30 (489)(624)(1,621)(1,860)
Noninterest expense15,319 14,731 14,440 15,045 15,515 
Income before income taxes7,879 7,818 8,950 8,042 9,166 
Income tax expense 812 805 1,259 (1,182)1,116 
Net income 7,067 7,013 7,691 9,224 8,050 
Net income applicable to common shareholders6,600 6,773 7,260 8,964 7,560 
Average common shares issued and outstanding
8,136.8 8,226.5 8,430.7 8,620.8 8,700.1 
Average diluted common shares issued and outstanding
8,202.1 8,304.7 8,492.8 8,735.5 8,755.6 
Performance ratios     
Return on average assets (1)
0.89 %0.88 %0.99 %1.23 %1.13 %
Four-quarter trailing return on average assets (2)
0.99 1.05 1.04 0.97 0.79 
Return on average common shareholders’ equity (1)
11.02 10.90 11.43 14.33 12.28 
Return on average tangible common shareholders’ equity (3)
15.51 15.25 15.85 19.90 17.08 
Return on average shareholders’ equity (1)
10.64 10.27 11.08 13.47 11.91 
Return on average tangible shareholders’ equity (3)
14.40 13.87 14.87 18.11 16.01 
Total ending equity to total ending assets8.23 8.52 8.83 9.15 9.23 
Total average equity to total average assets8.40 8.56 8.95 9.11 9.52 
Dividend payout (1)
25.86 25.33 24.10 17.25 20.68 
Per common share data     
Earnings $0.81 $0.82 $0.86 $1.04 $0.87 
Diluted earnings 0.80 0.82 0.85 1.03 0.86 
Dividends paid0.21 0.21 0.21 0.18 0.18 
Book value (1)
29.70 30.37 30.22 29.89 29.07 
Tangible book value (3)
20.99 21.68 21.69 21.61 20.90 
Market capitalization$332,320 $359,383 $349,841 $349,925 $332,337 
Average balance sheet     
Total loans and leases$977,793 $945,062 $920,509 $907,900 $907,723 
Total assets3,207,702 3,164,118 3,076,452 3,015,113 2,879,221 
Total deposits2,045,811 2,017,223 1,942,705 1,888,834 1,805,747 
Long-term debt246,042 248,525 248,988 232,034 220,836 
Common shareholders’ equity242,865 246,519 252,043 250,948 249,648 
Total shareholders’ equity269,309 270,883 275,484 274,632 274,047 
Asset quality      
Allowance for credit losses (4)
$13,483 $13,843 $14,693 $15,782 $17,997 
Nonperforming loans, leases and foreclosed properties (5)
4,778 4,697 4,831 5,031 5,299 
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (5)
1.23 %1.28 %1.43 %1.55 %1.80 %
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (5)
262 271 279 287 313 
Net charge-offs $392 $362 $463 $595 $823 
Annualized net charge-offs as a percentage of average loans and leases outstanding (5)
0.16 %0.15 %0.20 %0.27 %0.37 %
Capital ratios at period end (6)
     
Common equity tier 1 capital
10.4 %10.6 %11.1 %11.5 %11.8 %
Tier 1 capital
12.0 12.1 12.6 13.0 13.3 
Total capital
14.0 14.1 14.7 15.1 15.6 
Tier 1 leverage
6.3 6.4 6.6 6.9 7.2 
Supplementary leverage ratio
5.4 5.5 5.6 5.9 7.0 
Tangible equity (3)
6.2 6.4 6.7 7.0 7.0 
Tangible common equity (3)
5.3 5.7 5.9 6.2 6.2 
Total loss-absorbing capacity and long-term debt metrics
Total loss-absorbing capacity to risk-weighted assets27.2 %26.9 %27.7 %27.7 %26.8 %
Total loss-absorbing capacity to supplementary leverage exposure12.2 12.1 12.4 12.5 14.1 
Eligible long-term debt to risk-weighted assets14.4 14.1 14.4 14.1 13.0 
Eligible long-term debt to supplementary leverage exposure6.5 6.3 6.4 6.3 6.8 
(1)For definitions, see Key Metrics on page 92.
(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 43.
(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 30 and corresponding Table 24 and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 34 and corresponding Table 31.
(6)For more information, including which approach is used to assess capital adequacy, see Capital Management on page 18.

7 Bank of America



Table 6Quarterly Average Balances and Interest Rates - FTE Basis
Average
Balance
Interest
Income/
Expense (1)
Yield/
Rate
Average
Balance
Interest
Income/
Expense (1)
Yield/
Rate
(Dollars in millions)First Quarter 2022First Quarter 2021
Earning assets      
Interest-bearing deposits with the Federal Reserve, non-U.S. central
   banks and other banks
$244,971 $86 0.14 %$278,098 $29 0.04 %
Time deposits placed and other short-term investments9,253 12 0.52 8,742 0.18 
Federal funds sold and securities borrowed or purchased under
   agreements to resell (2)
299,404 (7)(0.01)249,985 (7)(0.01)
Trading account assets151,969 1,096 2.92 145,089 885 2.47 
Debt securities975,656 3,838 1.58 788,638 2,745 1.41 
Loans and leases (3)
Residential mortgage223,979 1,525 2.73 219,005 1,529 2.80 
Home equity27,784 220 3.21 33,634 281 3.38 
Credit card78,409 1,940 10.03 74,165 1,947 10.65 
Direct/Indirect and other consumer104,632 579 2.25 91,430 559 2.48 
Total consumer434,804 4,264 3.96 418,234 4,316 4.17 
U.S. commercial346,510 2,127 2.49 322,010 2,051 2.58 
Non-U.S. commercial118,767 504 1.72 90,904 409 1.83 
Commercial real estate (4)
63,065 387 2.49 59,736 365 2.48 
Commercial lease financing14,647 106 2.92 16,839 132 3.15 
Total commercial542,989 3,124 2.33 489,489 2,957 2.45 
Total loans and leases 977,793 7,388 3.06 907,723 7,273 3.24 
Other earning assets120,798 587 1.97 103,650 577 2.26 
Total earning assets2,779,844 13,000 1.89 2,481,925 11,506 1.87 
Cash and due from banks28,082 33,925 
Other assets, less allowance for loan and lease losses399,776 363,371 
Total assets$3,207,702 $2,879,221 
Interest-bearing liabilities      
U.S. interest-bearing deposits      
Demand and money market deposits$1,001,184 $80 0.03 %$889,793 $77 0.04 %
Time and savings deposits163,981 40 0.10 158,575 51 0.13 
Total U.S. interest-bearing deposits1,165,165 120 0.04 1,048,368 128 0.05 
Non-U.S. interest-bearing deposits81,879 44 0.22 81,966 0.02 
Total interest-bearing deposits1,247,044 164 0.05 1,130,334 133 0.05 
Federal funds purchased and securities loaned or sold under agreements
    to repurchase (5)
217,152 79 0.15 193,325 111 0.23 
Short-term borrowings and other interest-bearing liabilities (2, 5)
126,454 (191)(0.61)99,911 (190)(0.77)
Trading account liabilities64,240 364 2.30 42,923 246 2.32 
Long-term debt246,042 906 1.50 220,836 898 1.65 
Total interest-bearing liabilities1,900,932 1,322 0.28 1,687,329 1,198 0.29 
Noninterest-bearing sources
Noninterest-bearing deposits798,767 675,413 
Other liabilities (6)
238,694 242,432 
Shareholders’ equity269,309 274,047 
Total liabilities and shareholders’ equity$3,207,702 $2,879,221 
Net interest spread1.61 %1.58 %
Impact of noninterest-bearing sources0.08 0.10 
Net interest income/yield on earning assets (7)
$11,678 1.69 %$10,308 1.68 %
(1)Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 41.
(2)For more information on negative interest, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2021 Annual Report on Form 10-K.
(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 $58.5 billion and $56.6 billion, and non-U.S. commercial real estate loans of $4.5 billion and $3.1 billion for the first quarter of 2022 and 2021.
(5)Certain prior-period amounts have been reclassified to conform to current period presentation.
(6)Includes $30.2 billion and $31.3 billion of structured notes and liabilities for the first quarter of 2022 and 2021.
(7)Net interest income includes FTE adjustments of $106 million and $111 million for the first quarter of 2022 and 2021.
Bank of America 8


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 2021 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. Our internal risk-based capital models use a risk-adjusted methodology incorporating each segment’s credit, market, interest rate, business and operational risk components. For more information on the nature of these risks, see Managing Risk on page 18. 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, customer trends and business growth.
Consumer Banking
DepositsConsumer LendingTotal Consumer Banking
Three Months Ended March 31
(Dollars in millions)202220212022202120222021% Change
Net interest income$4,052 $3,278 $2,628 $2,642 $6,680 $5,920 13 %
Noninterest income:
Card income(8)(5)1,193 1,194 1,185 1,189 — 
Service charges843 830 1 844 831 
All other income68 73 36 56 104 129 (19)
Total noninterest income903 898 1,230 1,251 2,133 2,149 (1)
Total revenue, net of interest expense
4,955 4,176 3,858 3,893 8,813 8,069 
Provision for credit losses73 74 (125)(691)(52)(617)(92)
Noninterest expense3,008 3,209 1,913 1,922 4,921 5,131 (4)
Income before income taxes1,874 893 2,070 2,662 3,944 3,555 11 
Income tax expense459 219 507 652 966 871 11 
Net income$1,415 $674 $1,563 $2,010 $2,978 $2,684 11 
Effective tax rate (1)
24.5 %24.5 %
Net interest yield1.56 %1.46 %3.79 %3.74 %2.48 2.51 
Return on average allocated capital44 23 23 31 30 28 
Efficiency ratio60.71 76.87 49.58 49.34 55.84 63.59 
Balance Sheet
Three Months Ended March 31
Average202220212022202120222021% Change
Total loans and leases$4,215 $4,607 $279,853 $286,284 $284,068 $290,891 (2)%
Total earning assets (2)
1,050,490 912,135 281,255 286,720 1,092,742 957,112 14 
Total assets (2)
1,084,343 950,803 287,660 290,709 1,133,001 999,769 13 
Total deposits1,050,247 917,319 5,853 6,818 1,056,100 924,137 14 
Allocated capital13,000 12,000 27,000 26,500 40,000 38,500 
Period endMarch 31
2022
December 31
2021
March 31
2022
December 31
2021
March 31
2022
December 31
2021
% Change
Total loans and leases$4,165 $4,206 $282,157 $282,305 $286,322 $286,511 — %
Total earning assets (2)
1,083,664 1,048,009 284,069 282,850 1,125,963 1,090,331 
Total assets (2)
1,117,241 1,082,449 290,972 289,220 1,166,443 1,131,142 
Total deposits1,082,885 1,049,085 6,055 5,910 1,088,940 1,054,995 
(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.

9 Bank of America



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 2021 Annual Report on Form 10-K.
Consumer Banking Results
Net income for Consumer Banking increased $294 million to $3.0 billion during the three months ended March 31, 2022 compared to the same period in 2021 due to higher revenue and lower noninterest expense, partially offset by a lower benefit in the provision for credit losses. Net interest income increased $760 million to $6.7 billion primarily due to the benefit of higher deposit balances and the allocation of asset and liability management (ALM) results, partially offset by a decrease in the acceleration of net capitalized loan fees due to PPP loan forgiveness. Noninterest income decreased $16 million to $2.1 billion primarily driven by changes to overdraft services, lower mortgage banking income, the allocation of ALM results and lower card income, partially offset by higher other service charges due to increased client activity.
The benefit in the provision for credit losses decreased $565 million to $52 million primarily due to the impact of the improved macroeconomic outlook in the prior-year period. Noninterest expense decreased $210 million to $4.9 billion primarily driven by an impairment charge for real estate rationalization in the prior-year period, partially offset by continued investments for business growth and increased client activity.
The return on average allocated capital was 30 percent, up from 28 percent, driven by higher net income, partially offset by an increase in allocated capital. For more information on capital allocated to the business segments, see Business Segment Operations on page 9.
Deposits
Net income for Deposits increased $741 million to $1.4 billion due to higher revenue and lower noninterest expense. Net interest income increased $774 million to $4.1 billion primarily due to the allocation of ALM results and the benefit of higher
deposit balances. Noninterest income increased $5 million to $903 million primarily driven by higher other service charges due to increased client activity and investment and brokerage fees, largely offset by changes to overdraft services and the allocation of ALM results.
Noninterest expense decreased $201 million to $3.0 billion primarily driven by an impairment charge for real estate rationalization in the prior-year period, partially offset by continued investments for business growth and increased client activity.
Average deposits increased $132.9 billion to $1.1 trillion primarily due to net inflows of $79.1 billion in checking and $51.1 billion in money market savings largely driven by strong organic growth.
The table below provides key performance indicators for Deposits. Management uses these metrics, and we believe they are useful to investors because they provide additional information to evaluate our deposit profitability and digital/mobile trends.
Key Statistics – Deposits
Three Months Ended March 31
20222021
Total deposit spreads (excludes noninterest costs) (1)
1.65%1.73%
Period End
Consumer investment assets (in millions) (2)
$357,593$324,479
Active digital banking users (in thousands) (3)
42,26940,286
Active mobile banking users (in thousands) (4)
33,58931,487
Financial centers4,0564,324
ATMs15,95916,905
(1)Includes deposits held in Consumer Lending.
(2)Includes client brokerage assets, deposit sweep balances and AUM in Consumer Banking.
(3)Represents mobile and/or online active users over the past 90 days.
(4)Represents mobile active users over the past 90 days.
Consumer investment assets increased $33.1 billion to $357.6 billion driven by client flows and market performance. Active mobile banking users increased approximately two million, reflecting continuing changes in our customers’ banking preferences. We had a net decrease of 268 financial centers and 946 ATMs as we continue to optimize our consumer banking network.
Bank of America 10


Consumer Lending
Net income for Consumer Lending decreased $447 million to $1.6 billion primarily due to a lower benefit in the provision for credit losses. Net interest income declined $14 million to $2.6 billion primarily due to a decrease in the acceleration of net capitalized loan fees due to PPP loan forgiveness, largely offset by the allocation of ALM results. Noninterest income decreased $21 million to $1.2 billion primarily driven by lower mortgage banking income.
The benefit in the provision for credit losses decreased $566 million to $125 million primarily due to the impact of the improved macroeconomic outlook in the prior-year period.
Average loans decreased $6.4 billion to $279.9 billion primarily driven by a decline in PPP loans, partially offset by an increase in credit card loans.
The table below provides key performance indicators for Consumer Lending. Management uses these metrics, and we believe they are useful to investors because they provide additional information about loan growth and profitability.
Key Statistics – Consumer Lending
Three Months Ended March 31
(Dollars in millions)20222021
Total credit card (1)
Gross interest yield (2)
9.90 %10.52 %
Risk-adjusted margin (3)
10.40 9.29 
New accounts (in thousands)977 674 
Purchase volumes$80,914 $64,591 
Debit card purchase volumes
$117,584 $107,907 
(1)Includes GWIM's credit card portfolio.
(2)Calculated as the effective annual percentage rate divided by average loans.
(3)Calculated as the difference between total revenue, net of interest expense, and net credit losses divided by average loans.

During the three months ended March 31, 2022, the total risk-adjusted margin increased 111 basis points (bps) compared to the same period in 2021 primarily driven by lower net credit losses, partially offset by lower net interest margin and lower fee income. Total credit card purchase volumes increased $16.3 billion to $80.9 billion as spending continued to recover, with improvements across all categories. Debit card purchase volumes increased $9.7 billion to $117.6 billion due to continued growth in spending.
Key Statistics – Loan Production (1)
Three Months Ended March 31
(Dollars in millions)20222021
Consumer Banking: 
First mortgage$8,116 $9,182 
Home equity1,725 410 
Total (2):
First mortgage$16,353 $15,233 
Home equity2,040 503 
(1)The loan production amounts represent the unpaid principal balance of loans and, in the case of home equity, the principal amount of the total line of credit.
(2)In addition to loan production in Consumer Banking, there is also first mortgage and home equity loan production in GWIM.
First mortgage loan originations for Consumer Banking and the total Corporation decreased $1.1 billion and increased $1.1 billion during the three months ended March 31, 2022 compared to the same period in 2021 primarily driven by changes in demand.
Home equity production in Consumer Banking and the total Corporation increased $1.3 billion and $1.5 billion during the three months ended March 31, 2022 primarily driven by higher demand.
11 Bank of America



Global Wealth & Investment Management
Three Months Ended March 31
(Dollars in millions)20222021% Change
Net interest income$1,668 $1,331 25 %
Noninterest income:
Investment and brokerage services3,654 3,391 
All other income154 249 (38)
Total noninterest income3,808 3,640 
Total revenue, net of interest expense5,476 4,971 10 
Provision for credit losses(41)(65)(37)
Noninterest expense4,015 3,867 
Income before income taxes1,502 1,169 28 
Income tax expense368 286 29 
Net income$1,134 $883 28 
Effective tax rate24.5 %24.5 %
Net interest yield1.62 1.50 
Return on average allocated capital26 22 
Efficiency ratio73.31 77.79 
Balance Sheet
Three Months Ended March 31
Average20222021% Change
Total loans and leases$210,937 $188,495 12 %
Total earning assets418,248 360,099 16 
Total assets431,040 372,594 16 
Total deposits384,902 326,370 18 
Allocated capital17,500 16,500 
Period endMarch 31
2022
December 31
2021
% Change
Total loans and leases$214,273 $208,971 %
Total earning assets419,903 425,112 (1)
Total assets433,122 438,275 (1)
Total deposits385,288 390,143 (1)

GWIM consists of two primary businesses: Merrill Wealth Management and Bank of America Private Bank. For more information about GWIM, see Business Segment Operations in the MD&A of the Corporation’s 2021 Annual Report on Form 10-K.
Net income for GWIM increased $251 million to $1.1 billion driven by higher revenue, partially offset by higher noninterest expense. The operating margin was 27 percent compared to 24 percent a year ago.
Net interest income increased $337 million to $1.7 billion driven by the benefits of deposit and loan growth.
Noninterest income, which primarily includes investment and brokerage services income, increased $168 million to $3.8 billion primarily due to the impacts of higher market valuations and positive AUM flows, partially offset by declines in AUM pricing.
Noninterest expense increased $148 million to $4.0 billion primarily driven by higher revenue-related incentives.
The return on average allocated capital was 26 percent, up from 22 percent, due to higher net income, partially offset by an increase in allocated capital. For more information on capital allocated to the business segments, see Business Segment Operations on page 9.
Average loans increased $22.4 billion to $210.9 billion primarily driven by securities-based lending, residential mortgage and custom lending. Average deposits increased $58.5 billion to $384.9 billion primarily driven by inflows from new and existing accounts.
Merrill Wealth Management revenue of $4.6 billion increased 10 percent primarily driven by higher asset management fees and the benefits of deposit and loan growth.
Bank of America Private Bank revenue of $887 million increased 13 percent driven by the benefits of deposit and loan growth and higher market valuations.
Bank of America 12


Key Indicators and Metrics
Three Months Ended March 31
(Dollars in millions)20222021
Revenue by Business
Merrill Wealth Management$4,589 $4,185 
Bank of America Private Bank
887 786 
Total revenue, net of interest expense$5,476 $4,971 
Client Balances by Business, at period end
Merrill Wealth Management$3,116,052 $2,922,770 
Bank of America Private Bank
598,100 557,569 
Total client balances$3,714,152 $3,480,339 
Client Balances by Type, at period end
Assets under management$1,571,605 $1,467,487 
Brokerage and other assets1,592,802 1,535,424 
Deposits385,288 333,254 
Loans and leases (1)
217,461 192,725 
Less: Managed deposits in assets under management(53,004)(48,551)
Total client balances$3,714,152 $3,480,339 
Assets Under Management Rollforward
Assets under management, beginning of period$1,638,782 $1,408,465 
Net client flows 15,537 18,208 
Market valuation/other
(82,714)40,814 
Total assets under management, end of period$1,571,605 $1,467,487 
Total wealth advisors, at period end (2)
18,571 19,808 
(1)Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.
(2)Includes advisors across all wealth management businesses in GWIM and Consumer Banking.
Client Balances
Client balances increased $233.8 billion, or seven percent, to $3.7 trillion at March 31, 2022 compared to March 31, 2021. The increase in client balances was primarily due to positive client flows and higher market valuations.
13 Bank of America



Global Banking
Three Months Ended March 31
(Dollars in millions)20222021% Change
Net interest income$2,344 $1,980 18 %
Noninterest income:
Service charges886 847 
Investment banking fees880 1,172 (25)
All other income1,084 634 71 
Total noninterest income2,850 2,653 
Total revenue, net of interest expense 5,194 4,633 12 
Provision for credit losses165 (1,126)n/m
Noninterest expense2,683 2,782 (4)
Income before income taxes2,346 2,977 (21)
Income tax expense 622 804 (23)
Net income$1,724 $2,173 (21)
Effective tax rate 26.5 %27.0 %
Net interest yield1.68 1.56 
Return on average allocated capital16 21 
Efficiency ratio51.65 60.04 
Balance Sheet
Three Months Ended March 31
Average20222021% Change
Total loans and leases
$358,807 $330,107 %
Total earning assets566,277 515,880 10 
Total assets630,517 576,145 
Total deposits539,912 487,034 11 
Allocated capital44,500 42,500 
Period endMarch 31
2022
December 31
2021
% Change
Total loans and leases$367,423 $352,933 %
Total earning assets558,639 574,583 (3)
Total assets623,168 638,131 (2)
Total deposits533,820 551,752 (3)
n/m = not meaningful
Global Banking, which includes Global Corporate Banking, Global Commercial Banking, Business Banking and Global Investment Banking, provides a wide range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services through our network of offices and client relationship teams. For more information about Global Banking, see Business Segment Operations in the MD&A of the Corporation’s 2021 Annual Report on Form 10-K.
Net income for Global Banking decreased $449 million to $1.7 billion for the three months ended March 31, 2022 compared to the same period in 2021 driven by higher provision for credit losses, partially offset by higher revenue and lower noninterest expense.
Net interest income increased $364 million to $2.3 billion primarily due to the allocation of ALM results and the benefit of higher deposit and loan balances, partially offset by lower credit and deposit spreads.
Noninterest income increased $197 million to $2.9 billion driven by growth in ESG investment activities, partially offset by lower investment banking fees. In addition, the prior-year period included weather-related impairment charges on certain renewable energy investments.
The provision for credit losses increased $1.3 billion to $165 million primarily due to a reserve build driven by Russian exposure and loan growth compared to a benefit in the provision for credit losses of $1.1 billion in the prior-year period due to the improved macroeconomic outlook.
Noninterest expense decreased $99 million to $2.7 billion, as the prior-year period included an acceleration of expenses due to incentive compensation award changes, partially offset by continued investment in the business.
The return on average allocated capital was 16 percent, down from 21 percent, due to lower net income and higher allocated capital. For more information on capital allocated to the business segments, see Business Segment Operations on page 9.
Global Corporate, Global Commercial and Business Banking
The following table and discussion present a summary of the results, which exclude certain investment banking and PPP activities in Global Banking.
Bank of America 14


Global Corporate, Global Commercial and Business Banking
Global Corporate BankingGlobal Commercial BankingBusiness BankingTotal
Three Months Ended March 31
(Dollars in millions)20222021202220212022202120222021
Revenue
Business Lending$1,060 $654 $993 $898 $58 $55 $2,111 $1,607 
Global Transaction Services (1)
949 711 896 772 243 222 2,088 1,705 
Total revenue, net of interest expense
$2,009 $1,365 $1,889 $1,670 $301 $277 $4,199 $3,312 
Balance Sheet
Average
Total loans and leases
$166,994 $148,237 $177,483 $160,309 $12,837 $13,001 $357,314 $321,547 
Total deposits (1)
257,903 229,925 223,741 203,777 58,268 53,309 539,912 487,011 
Period end
Total loans and leases $174,134 $148,914 $179,253 $155,842 $12,794 $12,813 $366,181 $317,569 
Total deposits (1)
255,694 242,923 219,462 207,810 58,660 55,248 533,816 505,981 
(1)Prior periods have been revised to conform to current-period presentation.
Business Lending revenue increased $504 million for the three months ended March 31, 2022 compared to the same period in 2021 primarily due to ESG investment activities and the benefit of higher loan balances, partially offset by lower credit spreads. In addition, the prior-year period included weather-related impairment charges on certain renewable energy investments.
Global Transaction Services revenue increased $383 million driven by the allocation of ALM results and the benefit of higher deposit balances, partially offset by lower deposit spreads.
Average loans and leases increased 11 percent due to higher client demand. Average deposits increased 11 percent due to continued portfolio growth.
Global Investment Banking
Client teams and product specialists underwrite and distribute debt, equity and loan products, and provide advisory services and tailored risk management solutions. The economics of certain investment banking and underwriting activities are shared primarily between Global Banking and Global Markets under an internal revenue-sharing arrangement. Global Banking originates certain deal-related transactions with our corporate and commercial clients that are executed and distributed by Global Markets. To provide a complete discussion of our
consolidated investment banking fees, the table below presents total Corporation investment banking fees and the portion attributable to Global Banking.
Investment Banking Fees
Global BankingTotal Corporation
Three Months Ended March 31
(Dollars in millions)2022202120222021
Products
Advisory$439 $357 $473 $400 
Debt issuance359 423 831 988 
Equity issuance82 392 225 900 
Gross investment banking fees
880 1,172 1,529 2,288 
Self-led deals(29)(17)(72)(42)
Total investment banking fees
$851 $1,155 $1,457 $2,246 
Total Corporation investment banking fees of $1.5 billion, which exclude self-led deals and are primarily included within Global Banking and Global Markets, decreased 35 percent for the three months ended March 31, 2022 compared to the same period in 2021 primarily driven by lower equity issuance and debt issuance fees, partially offset by higher advisory fees.
15 Bank of America



Global Markets
Three Months Ended March 31
(Dollars in millions)20222021% Change
Net interest income$993 $990 — %
Noninterest income:
Investment and brokerage services545 560 (3)
Investment banking fees582 981 (41)
Market making and similar activities3,190 3,470 (8)
All other income(18)197 (109)
Total noninterest income4,299 5,208 (17)
Total revenue, net of interest expense5,292 6,198 (15)
Provision for credit losses5 (5)n/m
Noninterest expense3,117 3,427 (9)
Income before income taxes2,170 2,776 (22)
Income tax expense575 722 (20)
Net income$1,595 $2,054 (22)
Effective tax rate26.5 %26.0 %
Return on average allocated capital15 22 
Efficiency ratio58.90 55.29 
Balance Sheet
Three Months Ended March 31
20222021% Change
Average
Trading-related assets:
Trading account securities$301,285 $265,181 14 %
Reverse repurchases138,581 99,886 39 
Securities borrowed114,468 89,253 28 
Derivative assets41,820 47,469 (12)
Total trading-related assets596,154 501,789 19 
Total loans and leases108,576 77,415 40 
Total earning assets610,926 495,324 23 
Total assets858,719 723,264 19 
Total deposits44,393 53,852 (18)
Allocated capital42,500 38,000 12 
Period endMarch 31
2022
December 31
2021
% Change
Total trading-related assets$616,811 $491,160 26 %
Total loans and leases110,037 114,846 (4)
Total earning assets609,290 561,135 
Total assets883,304 747,794 18 
Total deposits43,371 46,374 (6)
n/m = not meaningful
Global Markets offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity and equity businesses. Global Markets product coverage includes securities and derivative products in both the primary and secondary markets. For more information about Global Markets, see Business Segment Operations in the MD&A of the Corporation’s 2021 Annual Report on Form 10-K.
The following explanations for current period-over-period changes for Global Markets, including those disclosed under Sales and Trading Revenue, are the same for amounts including and excluding net DVA. Amounts excluding net DVA are a non-GAAP financial measure. For more information on net DVA, see Supplemental Financial Data on page 5.
Net income for Global Markets decreased $459 million to $1.6 billion for the three months ended March 31, 2022 compared to the same period in 2021. Net DVA gains were $69 million compared to losses of $2 million in 2021. Excluding net DVA, net income decreased $513 million to $1.5 billion. These decreases were primarily driven by lower revenue, partially offset by lower noninterest expense.
Revenue decreased $906 million to $5.3 billion primarily driven by lower investment banking fees and sales and trading revenue. Sales and trading revenue decreased $359 million, and excluding net DVA, decreased $430 million. These decreases were driven by lower revenue in FICC, partially offset by higher revenue in Equities.
Noninterest expense decreased $310 million to 3.1 billion primarily driven by the realignment of a liquidating business activity from Global Markets to All Other in the fourth quarter of 2021. In addition, the prior-year period included an acceleration of expenses from incentive compensation award changes.
Average total assets increased $135.5 billion to $858.7 billion for the three months ended March 31, 2022 compared to same period in 2021 driven by higher levels of inventory and loan growth in FICC as well as higher client balances in Equities. Period-end total assets increased $135.5 billion from December 31, 2021 to $883.3 billion driven by higher levels of inventory in FICC and increased hedging of client activity with stock positions relative to derivatives in Equities.
Bank of America 16


The return on average allocated capital was 15 percent, down from 22 percent, reflecting lower net income and an increase in allocated capital. For more information on capital allocated to the business segments, see Business Segment Operations on page 9.
Sales and Trading Revenue
For a description of sales and trading revenue, see Business Segment Operations in the MD&A of the Corporation’s 2021
Annual Report on Form 10-K. The table below and related discussion present sales and trading revenue, substantially all of which is in Global Markets, with the remainder in Global Banking. In addition, the following table and related discussion present sales and trading revenue, excluding net DVA, which is a non-GAAP financial measure. For more information on net DVA, see Supplemental Financial Data on page 5.
Sales and Trading Revenue (1, 2, 3)
Three Months Ended March 31
(Dollars in millions)20222021
Sales and trading revenue
Fixed income, currencies and commodities
$2,708 $3,242 
Equities2,011 1,836 
Total sales and trading revenue$4,719 $5,078 
Sales and trading revenue, excluding net DVA (4)
Fixed income, currencies and commodities
$2,648 $3,251 
Equities2,002 1,829 
Total sales and trading revenue, excluding net DVA
$4,650 $5,080 
(1)For more information on sales and trading revenue, see Note 3 – Derivatives to the Consolidated Financial Statements.
(2)Includes FTE adjustments of $93 million and $73 million for the three months ended March 31, 2022 and 2021.
(3)    Includes Global Banking sales and trading revenue of $179 million and $104 million for the three months ended March 31, 2022 and 2021.
(4)    FICC and Equities sales and trading revenue, excluding net DVA, is a non-GAAP financial measure. FICC net DVA gains (losses) were $60 million and $(9) million for the three months ended March 31, 2022 and 2021. Equities net DVA gains were $9 million and $7 million for the three months ended March 31, 2022 and 2021.
FICC revenue decreased $603 million for the three months ended March 31, 2022 compared to the same period in 2021 driven by gains in commodities in the prior-year period for a weather-related event and a weaker trading environment for credit products in the current-year period, partially offset by improved performance across macro products. Equities revenue increased $173 million driven by increased client activity and a strong trading performance in derivatives.
All Other
Three Months Ended March 31
(Dollars in millions)20222021% Change
Net interest income$(7)$87 (108)%
Noninterest income (loss)(1,434)(1,026)40 
Total revenue, net of interest expense(1,441)(939)53 
Provision for credit losses(47)(47)— 
Noninterest expense583 308 89 
Loss before income taxes(1,977)(1,200)65 
Income tax benefit(1,613)(1,456)11 
Net income (loss)$(364)$256 n/m
Balance Sheet
Three Months Ended March 31
Average20222021% Change
Total loans and leases$15,405 $20,815 (26)%
Total assets (1)
154,425 207,449 (26)
Total deposits20,504 14,354 43 
Period endMarch 31
2022
December 31
2021
% Change
Total loans and leases$15,090 $15,863 (5)%
Total assets (1)
132,186 214,153 (38)
Total deposits20,990 21,182 (1)
(1)In segments where the total of liabilities and equity exceeds assets, which are generally deposit-taking segments, we allocate assets from All Other to those segments to match liabilities (i.e., deposits) and allocated shareholders’ equity. Average allocated assets were $1.2 trillion and $1.0 trillion for the three months ended March 31, 2022 and 2021, and period-end allocated assets were $1.2 trillion at both March 31, 2022 and December 31, 2021.
n/m = not meaningful

17 Bank of America



All Other primarily consists of ALM activities, liquidating businesses and certain expenses not otherwise allocated to a business segment. ALM activities encompass interest rate and foreign currency risk management activities for which substantially all of the results are allocated to our business segments. For more information on our ALM activities, see Note 17 – Business Segment Information to the Consolidated Financial Statements.
Net income decreased $620 million to a loss of $364 million due to lower revenue and higher noninterest expense.
Revenue decreased $502 million primarily due to higher partnership losses for ESG investments.
Noninterest expense increased $275 million primarily due to the realignment of a liquidating business activity from Global Markets to All Other in the fourth quarter of 2021.
The income tax benefit increased $157 million primarily reflecting increased tax preference benefits related to ESG investment activity. Both periods included income tax benefit adjustments to eliminate the FTE treatment of certain tax credits recorded in Global Banking.
Managing Risk
Risk is inherent in all our business activities. The seven key types of risk faced by the Corporation are strategic, credit, market, liquidity, compliance, operational and reputational. Sound risk management enables us to serve our customers and deliver for our shareholders. If not managed well, risk can result in financial loss, regulatory sanctions and penalties, and damage to our reputation, each of which may adversely impact our ability to execute our business strategies. We take a comprehensive approach to risk management with a defined Risk Framework and an articulated Risk Appetite Statement, which are approved annually by the Enterprise Risk Committee and the Board.
Our Risk Framework serves as the foundation for the consistent and effective management of risks facing the Corporation. The Risk Framework sets forth roles and responsibilities for the management of risk and provides a blueprint for how the Board, through delegation of authority to committees and executive officers, establishes risk appetite and associated limits for our activities.
Our risk appetite provides a common set of measures for senior management and the Board to clearly indicate the level of risk we are willing to take in alignment with our strategic and capital plans and ensure that the Corporation’s risk profile remains aligned with our risk appetite. Our risk appetite is formally articulated in the Risk Appetite Statement, which includes both qualitative components and quantitative limits that are reviewed and approved by the Board at least annually.
For more information about the Corporation’s risks related to the COVID-19 pandemic (the pandemic), see Item 1A. Risk Factors – Coronavirus Disease of the Corporation’s 2021 Annual Report on Form 10-K. These pandemic-related risks are being managed within our Risk Framework and supporting risk management programs.
For more information on our Risk Framework, our risk management activities and the key types of risk faced by the Corporation, see the Managing Risk section in the MD&A of the Corporation’s 2021 Annual Report on Form 10-K.
Capital Management
The Corporation manages its capital position so that its capital is more than adequate to support its business activities and aligns with risk, risk appetite and strategic planning. For more information, including related regulatory requirements, see
Capital Management in the MD&A of the Corporation’s 2021 Annual Report on Form 10-K.
CCAR and Capital Planning
The Federal Reserve requires BHCs to submit a capital plan and planned capital actions on an annual basis, consistent with the rules governing the Comprehensive Capital Analysis and Review (CCAR) capital plan. Based on the results of our 2021 CCAR capital plan and related supervisory stress tests, we are subject to a 2.5 percent stress capital buffer (SCB) from October 1, 2021 through September 30, 2022. Our Common equity tier 1 (CET1) capital ratio under the Standardized approach must remain above 9.5 percent during this period in order to avoid restrictions on capital distributions and discretionary bonus payments. In April 2022, we submitted our 2022 CCAR capital plan and related supervisory stress tests. The Federal Reserve will disclose CCAR capital plan supervisory stress test results by June 30, 2022.
In October 2021, the Board renewed the Corporation’s $25 billion common stock repurchase program previously announced in April 2021. The Board’s authorization replaced the previous program. As with the April authorization, the Board also authorized common stock repurchases to offset shares awarded under the Corporation’s equity-based compensation plans. Pursuant to the Board’s authorizations, during the first quarter of 2022, we repurchased $2.6 billion of common stock, including repurchases to offset shares awarded under equity-based compensation plans.
The timing and amount of common stock repurchases are subject to various factors, including the Corporation’s capital position, liquidity, financial performance and alternative uses of capital, stock trading price, regulatory requirements and general market conditions, and may be suspended at any time. Such repurchases may be effected through open market purchases or privately negotiated transactions, including repurchase plans that satisfy the conditions of Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (Exchange Act).
Regulatory Capital
As a financial services holding company, we are subject to regulatory capital rules, including Basel 3, issued by U.S. banking regulators. The Corporation's depository institution subsidiaries are also subject to the Prompt Corrective Action (PCA) framework. The Corporation and its primary affiliated banking entity, BANA, are Advanced approaches institutions under Basel 3 and are required to report regulatory risk-based capital ratios and risk-weighted assets (RWA) under both the Standardized and Advanced approaches. The approach that yields the lower ratio is used to assess capital adequacy, including under the PCA framework. As of March 31, 2022, the CET1, Tier 1 capital and Total capital ratios for the Corporation were lower under the Standardized approach.
Minimum Capital Requirements
In order to avoid restrictions on capital distributions and discretionary bonus payments, the Corporation must meet risk-based capital ratio requirements that include a capital conservation buffer of 2.5 percent (under the Advanced approaches only), an SCB (under the Standardized approach only), plus any applicable countercyclical capital buffer and a global systemically important bank (G-SIB) surcharge. The buffers and surcharge must be comprised solely of CET1 capital. The Corporation's CET1 capital ratio must be a minimum of 9.5 percent under both the Standardized and Advanced approaches.

Bank of America 18


The Corporation is required to calculate its G-SIB surcharge on an annual basis under two methods and is subject to the higher of the resulting two surcharges. Method 1 is consistent with the approach prescribed by the Basel Committee’s assessment methodology and is calculated using specified indicators of systemic importance. Method 2 modifies the Method 1 approach by, among other factors, including a measure of the Corporation’s reliance on short-term wholesale funding. The Corporation’s G-SIB surcharge, which is higher under Method 2, is expected to increase to 3.0 percent on January 1, 2024 unless its surcharge calculated as of December 31, 2022 is lower than 3.0 percent.
The current SCB of 2.5 percent, which remains effective from October 1, 2021 through September 30, 2022, could change based on results of the 2022 CCAR capital plan and related supervisory stress tests that we submitted in April 2022.
The Corporation is also required to maintain a minimum supplementary leverage ratio (SLR) of 3.0 percent plus a leverage buffer of 2.0 percent in order to avoid certain restrictions on capital distributions and discretionary bonus payments. Our insured depository institution subsidiaries are required to maintain a minimum 6.0 percent SLR to be considered well capitalized under the PCA framework.
Capital Composition and Ratios
Table 7 presents Bank of America Corporation’s capital ratios and related information in accordance with Basel 3 Standardized and Advanced approaches as measured at March 31, 2022 and December 31, 2021. For the periods presented herein, the Corporation met the definition of well capitalized under current regulatory requirements.
Table 7Bank of America Corporation Regulatory Capital under Basel 3
Standardized
Approach
(1)
Advanced
Approaches
(1)
Regulatory
Minimum
(2)
(Dollars in millions, except as noted)March 31, 2022
Risk-based capital metrics:
Common equity tier 1 capital$169,874 $169,874 
Tier 1 capital197,007 197,007 
Total capital (3)
229,186 222,481 
Risk-weighted assets (in billions) 1,639 1,416 
Common equity tier 1 capital ratio10.4 %12.0 %9.5 %
Tier 1 capital ratio12.0 13.9 11.0 
Total capital ratio14.0 15.7 13.0 
Leverage-based metrics:
Adjusted quarterly average assets (in billions) (4)
$3,130 $3,130 
Tier 1 leverage ratio6.3 %6.3 %4.0 
Supplementary leverage exposure (in billions)$3,662 
Supplementary leverage ratio5.4 %5.0 
December 31, 2021
Risk-based capital metrics:
Common equity tier 1 capital$171,759 $171,759 
Tier 1 capital196,465 196,465 
Total capital (3)
227,592 220,616 
Risk-weighted assets (in billions)1,618 1,399 
Common equity tier 1 capital ratio10.6 %12.3 %9.5 %
Tier 1 capital ratio12.1 14.0 11.0 
Total capital ratio14.1 15.8 13.0 
Leverage-based metrics:
Adjusted quarterly average assets (in billions) (4)
$3,087 $3,087 
Tier 1 leverage ratio6.4 %6.4 %4.0 
Supplementary leverage exposure (in billions) $3,604 
Supplementary leverage ratio5.5 %5.0 
(1)Capital ratios as of March 31, 2022 and December 31, 2021 are calculated using the regulatory capital rule that allows a five-year transition period related to the adoption of the current expected credit losses (CECL) accounting standard.
(2)The capital conservation buffer and G-SIB surcharge were 2.5 percent at both March 31, 2022 and December 31, 2021. At both March 31, 2022 and December 31, 2021, the Corporation's SCB of 2.5 percent was applied in place of the capital conservation buffer under the Standardized approach. The countercyclical capital buffer for both periods was zero. The CET1 capital regulatory minimum is the sum of the CET1 capital ratio minimum of 4.5 percent, our G-SIB surcharge of 2.5 percent and our SCB or the capital conservation buffer, as applicable, of 2.5 percent. The SLR regulatory minimum includes a leverage buffer of 2.0 percent.
(3)Total capital under the Advanced approaches differs from the Standardized approach due to differences in the amount permitted in Tier 2 capital related to the qualifying allowance for credit losses.
(4)Reflects total average assets adjusted for certain Tier 1 capital deductions.


19 Bank of America



At March 31, 2022, CET1 capital was $169.9 billion, a decrease of $1.9 billion from December 31, 2021, driven by common stock repurchases, dividends and increases in net unrealized losses on available-for-sale (AFS) debt securities included in accumulated other comprehensive income (OCI), partially offset by earnings. Tier 1 capital increased $542 million primarily driven by non-cumulative perpetual preferred stock issuances, partially offset by the same factors as CET1 capital. Total capital under the Standardized approach increased $1.6 billion primarily driven by the same factors driving the increase

in Tier 1 capital, subordinated debt issuances and an increase in the adjusted allowance for credit losses included in Tier 2 capital. RWA under the Standardized approach, which yielded the lower CET1 capital ratio at March 31, 2022, increased $21.1 billion during the three months ended March 31, 2022 to $1,639 billion primarily due to loan growth and client activity in Global Markets. Supplementary leverage exposure at March 31, 2022 increased $58.1 billion primarily due to on and off-balance sheet growth in Global Markets. Table 8 shows the capital composition at March 31, 2022 and December 31, 2021.
Table 8Capital Composition under Basel 3
(Dollars in millions)March 31
2022
December 31
2021
Total common shareholders’ equity$239,480 $245,358 
CECL transitional amount (1)
1,881 2,508 
Goodwill, net of related deferred tax liabilities(68,641)(68,641)
Deferred tax assets arising from net operating loss and tax credit carryforwards(7,843)(7,743)
Intangibles, other than mortgage servicing rights, net of related deferred tax liabilities(1,589)(1,605)
Defined benefit pension plan net assets(1,248)(1,261)
Cumulative unrealized net (gain) loss related to changes in fair value of financial liabilities attributable to own creditworthiness,
 net-of-tax
1,047 1,400 
Accumulated net (gain) loss on certain cash flow hedges (2)
7,049 1,870 
Other(262)(127)
Common equity tier 1 capital169,874 171,759 
Qualifying preferred stock, net of issuance cost27,136 24,707 
Other(3)(1)
Tier 1 capital197,007 196,465 
Tier 2 capital instruments21,737 20,750 
Qualifying allowance for credit losses (3)
11,000 10,534 
Other(558)(157)
Total capital under the Standardized approach229,186 227,592 
Adjustment in qualifying allowance for credit losses under the Advanced approaches (3)
(6,705)(6,976)
Total capital under the Advanced approaches$222,481 $220,616 
(1)December 31, 2021 includes the impact of the Corporation's adoption of the CECL accounting standard on January 1, 2020 and 25 percent of the increase in reserves since the initial adoption. March 31, 2022 includes 75 percent of the transition provision’s impact as of December 31, 2021.
(2)Includes amounts in accumulated other comprehensive income related to the hedging of items that are not recognized at fair value on the Consolidated Balance Sheet.
(3)Includes the impact of transition provisions related to the CECL accounting standard.

Table 9 shows the components of RWA as measured under Basel 3 at March 31, 2022 and December 31, 2021.
Table 9Risk-weighted Assets under Basel 3
Standardized ApproachAdvanced ApproachesStandardized ApproachAdvanced Approaches
(Dollars in billions)
March 31, 2022December 31, 2021
Credit risk$1,564 $917 $1,549 $913 
Market risk75 75 69 69