Balance Sheet Overview

Table 5 Selected Balance Sheet Data

December 31
(Dollars in millions) 2022 2021 $ Change % Change
Assets
Cash and cash equivalents $ 230,203 $ 348,221 $ (118,018) (34)%
Federal funds sold and securities borrowed or purchased under agreements to resell 267,574 250,720 16,854 7
Trading account assets 296,108 247,080 49,028 20
Debt securities 862,819 982,627 (119,808) (12)
Loans and leases 1,045,747 979,124 66,623 7
Allowance for loan and lease losses (12,682) (12,387) (295) 2
All other assets 361,606 374,110 (12,504) (3)
Total assets $ 3,051,375 $ 3,169,495 $ (118,120) (4)
Liabilities
Deposits $ 1,930,341 $ 2,064,446 $ (134,105) (6)
Federal funds purchased and securities loaned or sold under agreements to repurchase 195,635 192,329 3,306 2
Trading account liabilities 80,399 100,690 (20,291) (20)
Short-term borrowings 26,932 23,753 3,179 13
Long-term debt 275,982 280,117 (4,135) (1)
All other liabilities 268,889 238,094 30,795 13
Total liabilities 2,778,178 2,899,429 (121,251) (4)
Shareholders’ equity 273,197 270,066 3,131 1
Total liabilities and shareholders’ equity $ 3,051,375 $ 3,169,495 $ (118,120) (4)

Assets purchased under agreements to resell increased $16.9 billion

At December 31, 2022, total assets were approximately $3.1
trillion, down $118.1 billion from December 31, 2021. The
decrease in assets was primarily due to lower debt securities
and cash and cash equivalents, partially offset by an increase in
loans and leases, trading account assets and federal funds sold
and securities borrowed or purchased under agreements to
resell.
Cash and Cash Equivalents
Cash and cash equivalents decreased $118.0 billion primarily
driven by lower deposits and continued loan growth.
Federal Funds Sold and Securities Borrowed or Purchased
Under Agreements to Resell
Federal funds transactions involve lending reserve balances on
a short-term basis. Securities borrowed or purchased under
agreements to resell are collateralized lending transactions
utilized to accommodate customer transactions, earn interest
rate spreads and obtain securities for settlement and for
collateral. Federal funds sold and securities borrowed or
primarily due to client activity within Global Markets.
Trading Account Assets
Trading account assets consist primarily of long positions in
equity and fixed-income securities including U.S. government
and agency securities, corporate securities and non-U.S.
sovereign debt. Trading account assets increased $49.0 billion
primarily due to client activity within Global Markets.
Debt Securities
Debt securities primarily include U.S. Treasury and agency
securities, mortgage-backed securities (MBS), principally agency
MBS, non-U.S. bonds, corporate bonds and municipal debt. We
use the debt securities portfolio primarily to manage interest
rate and liquidity risk and to leverage market conditions that
create economically attractive returns on these investments.
Debt securities decreased $119.8 billion primarily driven by
lower deposits and continued loan growth. For more information
on debt securities, see Note 4 – Securities to the Consolidated
Financial Statements.

Bank of America 2022 77

Loans and Leases
Loans and leases increased $66.6 billion primarily driven by
growth in commercial loans, higher credit card spending and
higher residential mortgages due to lower paydowns and
continued originations. For more information on the loan
portfolio, see Credit Risk Management on page 106.
Allowance for Loan and Lease Losses
The allowance for loan and lease losses increased $295 million
primarily driven by loan growth and a dampened macroeconomic
outlook, partially offset by a reserve release for reduced
pandemic uncertainties. For more information, see Allowance for
Credit Losses on page 120.
All Other Assets
All other assets decreased $12.5 billion primarily driven by a
decline in margin loans and loans held-for-sale (LHFS).
Liabilities
At December 31, 2022, total liabilities were approximately $2.8
trillion, down $121.3 billion from December 31, 2021, primarily
due to lower deposits.
Deposits
Deposits decreased $134.1 billion primarily due to an increase
in customer spending and a shift to higher yielding accounts.
Federal Funds Purchased and Securities Loaned or Sold
Under Agreements to Repurchase
Federal funds transactions involve borrowing reserve balances
on a short-term basis. Securities loaned or sold under
agreements to repurchase are collateralized borrowing
transactions utilized to accommodate customer transactions,
earn interest rate spreads and finance assets on the balance
sheet. Federal funds purchased and securities loaned or sold
under agreements to repurchase increased $3.3 billion primarily
driven by an increase in repurchase agreements to support
liquidity.
Trading Account Liabilities
Trading account liabilities consist primarily of short positions in
equity and fixed-income securities including U.S. Treasury and
agency securities, non-U.S. sovereign debt and corporate
securities. Trading account liabilities decreased $20.3 billion
primarily due to lower levels of short positions within Global
Markets.
78 Bank of America 2022
Short-term Borrowings
Short-term borrowings provide an additional funding source and
primarily consist of Federal Home Loan Bank (FHLB) short-term
borrowings, notes payable and various other borrowings that
generally have maturities of one year or less. Short-term
borrowings increased $3.2 billion primarily due to an increase in
FHLB advances and commercial paper to manage liquidity
needs. For more information on short-term borrowings, see Note
10 – Securities Financing Agreements, Short-term Borrowings,
Collateral and Restricted Cash to the Consolidated Financial
Statements.
Long-term Debt
Long-term debt decreased $4.1 billion primarily due to
maturities, redemptions and valuation adjustments, partially
offset by issuances. For more information on long-term debt,
see Note 11 – Long-term Debt to the Consolidated Financial
Statements.
All Other Liabilities
All other liabilities increased $30.8 billion primarily driven by
Global Markets client activity.
Shareholders’ Equity
Shareholders’ equity increased $3.1 billion primarily due to net
income and the issuance of preferred stock, partially offset by
market value decreases on derivatives and debt securities, and
returns of capital to shareholders through common and
preferred stock dividends and common stock repurchases.
Cash Flows Overview
The Corporation’s operating assets and liabilities support our
global markets and lending activities. We believe that cash
flows from operations, available cash balances and our ability to
generate cash through short- and long-term debt are sufficient to
fund our operating liquidity needs. Our investing activities
primarily include the debt securities portfolio and loans and
leases. Our financing activities reflect cash flows primarily
related to customer deposits, securities financing agreements,
long-term debt and common and preferred stock. For more
information on liquidity, see Liquidity Risk on page 101.