Bank of America 2015 Annual Report Download - page 28

26 Bank of America 2015
All Other Assets
All other assets decreased $16.7 billion driven by a decrease in
other noninterest receivables, loans held-for-sale (LHFS) and
derivative assets.
Liabilities
At December 31, 2015, total liabilities were approximately $1.9
trillion, up $27.0 billion from December 31, 2014, primarily driven
by an increase in deposits, partially offset by declines in securities
loaned or sold under agreements to repurchase, trading account
liabilities and long-term debt.
Deposits
Deposits increased $78.3 billion due to an increase in retail
deposits.
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
decreased $27.0 billion due to a decrease in repurchase
agreements.
Trading Account Liabilities
Trading account liabilities consist primarily of short positions in
equity and fixed-income securities including U.S. Treasury and
agency securities, corporate securities, and non-U.S. sovereign
debt. Trading account liabilities decreased $7.2 billion primarily
due to lower levels of short U.S. Treasury positions due to balance
sheet repositioning activity driven by client demand within Global
Markets.
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 decreased $3.1 billion due to planned reductions in
FHLB borrowings. For more information on short-term borrowings,
see Note 10 – Federal Funds Sold or Purchased, Securities
Financing Agreements and Short-term Borrowings to the
Consolidated Financial Statements.
Long-term Debt
Long-term debt decreased $6.4 billion primarily due to the impact
of revaluation of non-U.S. Dollar debt and changes in fair value for
debt accounted for under the fair value option. These impacts were
substantially offset through derivative hedge transactions.
Excluding these two factors, total long-term debt remained
relatively unchanged in 2015. For more information on long-term
debt, see Note 11 – Long-term Debt to the Consolidated Financial
Statements.
All Other Liabilities
All other liabilities decreased $7.6 billion due to a decrease in
derivative liabilities.
Shareholders’ Equity
Shareholders’ equity increased $12.7 billion driven by earnings
and preferred stock issuances, partially offset by returns of capital
to shareholders of $5.9 billion through common and preferred
stock dividends and share repurchases, as well as a decrease in
accumulated OCI due primarily to an increase in unrealized losses
on available-for-sale (AFS) debt securities as a result of the
increase in interest rates.
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 and long-term debt. For
additional information on liquidity, see Liquidity Risk on page 58.