BANK OF AMERICA CORP /DE/
For the period ended Jun 30, 2025. Filed Jul 31, 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.
Jun 30, 2025 · Filed Jul 31, 2025
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Allowance for Credit Losses
The allowance for credit losses increased $98 million from December 31, 2024 to $14.4 billion at June 30, 2025, which included a reserve increase of $9 million and $89 million related to the consumer and commercial portfolios, respectively.
Table 36 presents an allocation of the allowance for credit losses by product type at June 30, 2025 and December 31, 2024.
| Table 36 | 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) · June 30, 2025 · December 31, 2024 | ||||||||||
| Allowance for loan and lease losses | ||||||||||
| Residential mortgage | $290 | 2.18% | 0.12% | $264 | 1.99% | 0.12% | ||||
| Home equity | 56 | 0.42 | 0.21 | 29 | 0.22 | 0.11 | ||||
| Credit card | 7,456 | 56.10 | 7.37 | 7,515 | 56.76 | 7.26 | ||||
| Direct/Indirect consumer | 712 | 5.36 | 0.65 | 700 | 5.29 | 0.65 | ||||
| Other consumer | 64 | 0.48 | n/m | 62 | 0.47 | n/m | ||||
| Total consumer | 8,578 | 64.54 | 1.82 | 8,570 | 64.73 | 1.84 | ||||
| U.S. commercial (2) | 2,816 | 21.18 | 0.64 | 2,637 | 19.91 | 0.65 | ||||
| Non-U.S. commercial | 773 | 5.82 | 0.52 | 778 | 5.88 | 0.57 | ||||
| Commercial real estate | 1,082 | 8.14 | 1.65 | 1,219 | 9.21 | 1.85 | ||||
| Commercial lease financing | 42 | 0.32 | 0.27 | 36 | 0.27 | 0.23 | ||||
| Total commercial | 4,713 | 35.46 | 0.71 | 4,670 | 35.27 | 0.75 | ||||
| Allowance for loan and lease losses | 13,291 | 100.00% | 1.17 | 13,240 | 100.00% | 1.21 | ||||
| Reserve for unfunded lending commitments | 1,143 | 1,096 | ||||||||
| Allowance for credit losses | $14,434 | $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 June 30, 2025 and December 31, 2024.
Net charge-offs for the three and six months ended June 30, 2025 were relatively unchanged compared to the same periods in 2024. The provision for credit losses increased $84 million to $1.6 billion and $245 million to$3.1 billion for the three and six months ended June 30, 2025 compared to the same periods in 2024. The provision for credit losses for the current-year periods was primarily driven by the credit card portfolio, including an impact from a dampened macroeconomic outlook, partially offset by improved asset quality. The provision for credit losses for the prior-year periods was primarily driven by activity specific to credit card loans and the commercial real estate office portfolio, partially offset by an improved macroeconomic outlook. The provision for credit losses for the consumer portfolio, including unfunded lending commitments, decreased $9 million to $1.1 billion and increased $131 million to $2.2 billion for the three and six months ended June 30, 2025
compared to the same periods in 2024. The provision for credit losses for the commercial portfolio, including unfunded lending commitments, increased $93 million to $507 million and $114 million to $888 million for the three and six months ended June 30, 2025 compared to the same periods in 2024.
Table 37 presents a rollforward of the allowance for credit losses, including certain loan and allowance ratios for the three and six months ended June 30, 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 37 · Allowance for Credit Losses | ||||
|---|---|---|---|---|
| Three Months Ended June 30 | Six Months Ended June 30 | |||
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 |
| Allowance for loan and lease losses, beginning of period | $13,256 | $13,213 | $13,240 | $13,342 |
| Loans and leases charged off | ||||
| Residential mortgage | (9) | (5) | (12) | (13) |
| Home equity | (5) | (3) | (8) | (6) |
| Credit card | (1,148) | (1,106) | (2,326) | (2,151) |
| Direct/Indirect consumer | (81) | (89) | (186) | (191) |
| Other consumer | (70) | (72) | (136) | (150) |
| Total consumer charge-offs | (1,313) | (1,275) | (2,668) | (2,511) |
| U.S. commercial (1) | (298) | (226) | (542) | (422) |
| Non-U.S. commercial | — | — | (8) | (1) |
| Commercial real estate | (210) | (278) | (336) | (582) |
| Commercial lease financing | (3) | — | (3) | (1) |
| Total commercial charge-offs | (511) | (504) | (889) | (1,006) |
| Total loans and leases charged off | (1,824) | (1,779) | (3,557) | (3,517) |
| Recoveries of loans and leases previously charged off | ||||
| Residential mortgage | 7 | 5 | 10 | 10 |
| Home equity | 15 | 17 | 30 | 33 |
| Credit card | 194 | 151 | 371 | 297 |
| Direct/Indirect consumer | 34 | 38 | 69 | 75 |
| Other consumer | 4 | 5 | 10 | 9 |
| Total consumer recoveries | 254 | 216 | 490 | 424 |
| U.S. commercial (2) | 35 | 21 | 76 | 43 |
| Non-U.S. commercial | — | 3 | 1 | 13 |
| Commercial real estate | 8 | 6 | 11 | 6 |
| Commercial lease financing | 2 | — | 2 | — |
| Total commercial recoveries | 45 | 30 | 90 | 62 |
| Total recoveries of loans and leases previously charged off | 299 | 246 | 580 | 486 |
| Net charge-offs | (1,525) | (1,533) | (2,977) | (3,031) |
| Provision for loan and lease losses | 1,560 | 1,562 | 3,026 | 2,932 |
| Other | — | (4) | 2 | (5) |
| Allowance for loan and lease losses, June 30 | 13,291 | 13,238 | 13,291 | 13,238 |
| Reserve for unfunded lending commitments, beginning of period | 1,110 | 1,158 | 1,096 | 1,209 |
| Provision for unfunded lending commitments | 32 | (54) | 46 | (105) |
| Other | 1 | — | 1 | — |
| Reserve for unfunded lending commitments, June 30 | 1,143 | 1,104 | 1,143 | 1,104 |
| Allowance for credit losses, June 30 | $14,434 | $14,342 | $14,434 | $14,342 |
| Loan and allowance ratios (3): | ||||
| Loans and leases outstanding at June 30 | $1,140,193 | $1,053,588 | $1,140,193 | $1,053,588 |
| Allowance for loan and lease losses as a percentage of total loans and leases outstanding at June 30 | 1.17% | 1.26% | 1.17% | 1.26% |
| Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at June 30 | 1.82 | 1.86 | 1.82 | 1.86 |
| Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at June 30 | 0.71 | 0.79 | 0.71 | 0.79 |
| Average loans and leases outstanding | $1,120,764 | $1,048,300 | $1,105,318 | $1,046,511 |
| Annualized net charge-offs as a percentage of average loans and leases outstanding | 0.55% | 0.59% | 0.54% | 0.58% |
| Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at June 30 | 222 | 242 | 222 | 242 |
| Ratio of the allowance for loan and lease losses at June 30 to annualized net charge-offs | 2.17 | 2.15 | 2.21 | 2.17 |
| Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at June 30 (4) | $8,714 | $8,453 | $8,714 | $8,453 |
| 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 June 30 (4) | 77% | 87% | 77% | 87% |
(1)Includes U.S. small business commercial charge-offs of $149 million and $296 million for the three and six months ended June 30, 2025 compared to $130 million and $248 million for the same periods in 2024.
(2)Includes U.S. small business commercial recoveries of $15 million and $29 million for the three and six months ended June 30, 2025 compared to $12 million and $22 million for the same periods in 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.
41 Bank of America
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