Other assets

9 Months Ended

Sep. 30, 2022

The following table provides the components of other assets presented on the consolidated balance sheet.


Other assets	Sept. 30, 2022		Dec. 31, 2021
(in millions)
Corporate/bank-owned life insurance	$	5,391	$	5,359
Accounts receivable	4,838		4,178
Fails to deliver	4,622		1,561
Software	2,190		2,096
Prepaid pension assets	2,012		1,946
Cash collateral receivable on derivative transactions	1,423		304
Qualified affordable housing project investments	1,255		1,153
Renewable energy investments	907		1,027
Fair value of hedging derivatives	875		206
Prepaid expense	804		476
Equity method investments	781		939
Other equity investments (a)	642		449
Income taxes receivable	577		538
Federal Reserve Bank stock	477		472
Seed capital (b)	342		357
Assets of consolidated investment management funds	214		462
Other (c)	1,252		886
Total other assets	$	28,602	$	22,409

(a) Includes strategic equity, private equity and other investments.

(b) Includes investments in BNY Mellon funds which hedge deferred incentive awards.

(c) At Sept. 30, 2022 and Dec. 31, 2021, other assets include $6 million and $7 million, respectively, of Federal Home Loan Bank stock, at cost.

Non-readily marketable equity securities

Non-readily marketable equity securities do not have readily determinable fair values. These investments are valued using a measurement alternative where the investments are carried at cost, less any impairment, and plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The observable price changes are recorded in investment and other revenue on the consolidated income statement. Our non-readily marketable equity securities totaled $434 million at Sept. 30, 2022 and $264 million at Dec. 31, 2021 and are included in other equity investments in the table above.

The following table presents the adjustments on the non-readily marketable equity securities.


Adjustments on non-readily marketable equity securities											Life-to-date
(in millions)	3Q22		2Q22		3Q21		YTD22		YTD21		Life-to-date
Upward adjustments	$	3	$	76	$	55	$	125	$	61	$	283
Downward adjustments	—		(7)		—		(7)		—		(11)
Net adjustments	$	3	$	69	$	55	$	118	$	61	$	272

Qualified affordable housing project investments

We invest in affordable housing projects primarily to satisfy the Company’s requirements under the Community Reinvestment Act. Our total investment in qualified affordable housing projects totaled $1.3 billion at Sept. 30, 2022 and $1.2 billion at Dec. 31, 2021. Commitments to fund future investments in qualified affordable housing projects totaled $595 million at Sept. 30, 2022 and $543 million at Dec. 31, 2021 and are recorded in other liabilities on the consolidated balance sheet. A summary of the commitments to fund future investments is as follows: remainder of 2022 – $92 million; 2023 – $210 million; 2024 – $144 million; 2025 – $90 million; 2026 – $21 million; and 2027 and thereafter – $38 million.

Tax credits and other tax benefits recognized were $38 million in the third quarter of 2022, $38 million in the second quarter of 2022, $38 million in the third quarter of 2021, $114 million in the first nine months of 2022 and $114 million in the first nine months of 2021.

Amortization expense included in the provision for income taxes was $32 million in the third quarter of 2022, $33 million in the second quarter of 2022, $32 million in the third quarter of 2021, $97 million in the first nine months of 2022 and $96 million in the first nine months of 2021.

Investments valued using net asset value (“NAV”) per share

In our Investment and Wealth Management business segment, we make seed capital investments in certain funds we manage. We also hold private equity investments, primarily small business investment companies (“SBICs”), which are compliant with the Volcker Rule, and certain other corporate investments. Seed capital, private equity and other

corporate investments are included in other assets on the consolidated balance sheet. The fair value of certain of these investments was estimated using the

NAV per share for our ownership interest in the funds.

The table below presents information on our investments valued using NAV.


Investments valued using NAV	Sept. 30, 2022					Dec. 31, 2021
(in millions)	Fair value		Unfunded commitments			Fair value		Unfunded commitments
Seed capital (a)(b)	$	84		$	16	$	101		$	21
Private equity investments (c)	128			58		113			61
Other	4			—		4			—
Total	$	216		$	74	$	218		$	82

(a) Primarily includes leveraged loans and structured credit funds, which are generally not redeemable. Distributions from such investments will be received as the underlying investments in the funds, which have lives of three to 11 years at both Sept. 30, 2022 and Dec. 31, 2021, are liquidated.

(b) Includes investments in funds that relate to deferred compensation arrangements with employees.

(c) Private equity investments primarily include Volcker Rule-compliant investments in SBICs that invest in various sectors of the economy. Private equity investments do not have redemption rights. Distributions from such investments will be received as the underlying investments in the private equity investments, which have a life of 10 years, are liquidated.