EX-99.3 4 bac-12312012xexhibit993.htm THE SUPPLEMENTAL INFORMATION BAC-12.31.2012-Exhibit 99.3








Supplemental Information
Fourth Quarter 2012






This information is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this information are subject to the forward-looking language contained in Bank of America’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC’s website (www.sec.gov) or at Bank of America’s website (www.bankofamerica.com). Bank of America’s future financial performance is subject to risks and uncertainties as described in its SEC filings.




 
 
Bank of America Corporation and Subsidiaries
 
Table of Contents
Page
 
 
 
Consumer & Business Banking
 
Consumer Real Estate Services
 
Global Banking
 
Global Markets
 
Global Wealth & Investment Management
 
All Other
 
 
 
 
 
 
 





Bank of America Corporation and Subsidiaries
Consolidated Financial Highlights
(Dollars in millions, except per share information; shares in thousands)
 
Year Ended
December 31
 
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
First
Quarter
2012
 
Fourth
Quarter
2011
 
2012
 
2011
 
 
Income statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
40,656

 
$
44,616

 
 
$
10,324

 
$
9,938

 
$
9,548

 
$
10,846

 
$
10,701

Noninterest income
42,678

 
48,838

 
 
8,336

 
10,490

 
12,420

 
11,432

 
14,187

Total revenue, net of interest expense
83,334

 
93,454

 
 
18,660

 
20,428

 
21,968

 
22,278

 
24,888

Provision for credit losses
8,169

 
13,410

 
 
2,204

 
1,774

 
1,773

 
2,418

 
2,934

Goodwill impairment

 
3,184

 
 

 

 

 

 
581

Merger and restructuring charges

 
638

 
 

 

 

 

 
101

All other noninterest expense (1)
72,093

 
76,452

 
 
18,360

 
17,544

 
17,048

 
19,141

 
18,840

Income tax expense (benefit)
(1,116
)
 
(1,676
)
 
 
(2,636
)
 
770

 
684

 
66

 
441

Net income
4,188

 
1,446

 
 
732

 
340

 
2,463

 
653

 
1,991

Preferred stock dividends
1,428

 
1,361

 
 
365

 
373

 
365

 
325

 
407

Net income (loss) applicable to common shareholders
2,760

 
85

 
 
367

 
(33
)
 
2,098

 
328

 
1,584

Diluted earnings per common share (2)
0.25

 
0.01

 
 
0.03

 
0.00

 
0.19

 
0.03

 
0.15

Average diluted common shares issued and outstanding (2)
10,840,854

 
10,254,824

 
 
10,884,921

 
10,776,173

 
11,556,011

 
10,761,917

 
11,124,523

Dividends paid per common share
$
0.04

 
$
0.04

 
 
$
0.01

 
$
0.01

 
$
0.01

 
$
0.01

 
$
0.01

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
0.19
%
 
0.06
%
 
 
0.13
%
 
0.06
%
 
0.45
%
 
0.12
%
 
0.36
%
Return on average common shareholders' equity
1.27

 
0.04

 
 
0.67

 
n/m

 
3.89

 
0.62

 
3.00

Return on average tangible common shareholders' equity (3)
1.94

 
0.06

 
 
1.01

 
n/m

 
5.95

 
0.95

 
4.72

Return on average tangible shareholders' equity (3)
2.60

 
0.96

 
 
1.77

 
0.84

 
6.16

 
1.67

 
5.20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per share of common stock
$
20.24

 
$
20.09

 
 
$
20.24

 
$
20.40

 
$
20.16

 
$
19.83

 
$
20.09

Tangible book value per share of common stock (3)
13.36

 
12.95

 
 
13.36

 
13.48

 
13.22

 
12.87

 
12.95

Market price per share of common stock:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Closing price
$
11.61

 
$
5.56

 
 
$
11.61

 
$
8.83

 
$
8.18

 
$
9.57

 
$
5.56

High closing price for the period
11.61

 
15.25

 
 
11.61

 
9.55

 
9.68

 
9.93

 
7.35

Low closing price for the period
5.80

 
4.99

 
 
8.93

 
7.04

 
6.83

 
5.80

 
4.99

Market capitalization
125,136

 
58,580

 
 
125,136

 
95,163

 
88,155

 
103,123

 
58,580

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of banking centers - U.S.
5,478

 
5,702

 
 
5,478

 
5,540

 
5,594

 
5,651

 
5,702

Number of branded ATMs - U.S.
16,347

 
17,756

 
 
16,347

 
16,253

 
16,220

 
17,255

 
17,756

Full-time equivalent employees
267,190

 
281,791

 
 
267,190

 
272,594

 
275,460

 
278,688

 
281,791

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Excludes merger and restructuring charges and goodwill impairment charges.
(2) 
Due to a net loss applicable to common shareholders for the third quarter of 2012, the impact of antidilutive equity instruments was excluded from diluted earnings per share and average diluted common shares.
(3) 
Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)

n/m = not meaningful


Certain prior period amounts have been reclassified to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
2



Bank of America Corporation and Subsidiaries
Supplemental Financial Data
(Dollars in millions, except per share information)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fully taxable-equivalent (FTE) basis data (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
First
Quarter
2012
 
Fourth
Quarter
2011
 
2012
 
2011
 
 
Net interest income
$
41,557

 
$
45,588

 
 
$
10,555

 
$
10,167

 
$
9,782

 
$
11,053

 
$
10,959

Total revenue, net of interest expense
84,235

 
94,426

 
 
18,891

 
20,657

 
22,202

 
22,485

 
25,146

Net interest yield (2)
2.35
%
 
2.48
%
 
 
2.35
%
 
2.32
%
 
2.21
%
 
2.51
%
 
2.45
%
Efficiency ratio
85.59

 
85.01

 
 
97.19

 
84.93

 
76.79

 
85.13

 
77.64

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance ratios, excluding goodwill impairment charges (3, 4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31
2011
 
 
 
 
 
 
 
 
 
 
Fourth
Quarter
2011
 
 
 
 
 
 
 
 
 
 
 
 
 
Per common share information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings
 
 
$
0.32

 
 
 
 
 
 
 
 
 
 
$
0.21

Diluted earnings
 
 
0.32

 
 
 
 
 
 
 
 
 
 
0.20

Efficiency ratio (FTE basis)
 
 
81.64
%
 
 
 
 
 
 
 
 
 
 
75.33
%
Return on average assets
 
 
0.20

 
 
 
 
 
 
 
 
 
 
0.46

Return on average common shareholders’ equity
 
 
1.54

 
 
 
 
 
 
 
 
 
 
4.10

Return on average tangible common shareholders’ equity
 
 
2.46

 
 
 
 
 
 
 
 
 
 
6.46

Return on average tangible shareholders’ equity
 
 
3.08

 
 
 
 
 
 
 
 
 
 
6.72

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
FTE basis is a non-GAAP financial measure. FTE basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)
(2) 
Calculation includes fees earned on overnight deposits placed with the Federal Reserve and, beginning in the third quarter of 2012, deposits, primarily overnight, placed with certain non-U.S. central banks of $189 million and $186 million for the years ended December 31, 2012 and 2011; $42 million, $48 million, $52 million and $47 million for the fourth, third, second and first quarters of 2012, respectively, and $36 million for the fourth quarter of 2011. For more information, see Quarterly and Annual Average Balances and Interest Rates - Fully Taxable-equivalent Basis on pages 10-11 and 12-13.
(3) 
Performance ratios excluding goodwill impairment charges are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)
(4) 
There were no goodwill impairment charges in 2012.


Certain prior period amounts have been reclassified to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.
3



Bank of America Corporation and Subsidiaries
Consolidated Statement of Income
(Dollars in millions, except per share information; shares in thousands)
 
 
Year Ended
December 31
 
 
Fourth Quarter 2012
 
Third Quarter 2012
 
Second Quarter 2012
 
First Quarter 2012
 
Fourth Quarter 2011
 
 
2012
 
2011
 
 
Interest income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and leases
 
$
38,880

 
$
44,966

 
 
$
9,366

 
$
9,597

 
$
9,744

 
$
10,173

 
$
10,512

Debt securities
 
8,776

 
9,521

 
 
2,118

 
2,031

 
1,902

 
2,725

 
2,235

Federal funds sold and securities borrowed or purchased under agreements to resell
 
1,502

 
2,147

 
 
329

 
353

 
360

 
460

 
449

Trading account assets
 
5,094

 
5,961

 
 
1,307

 
1,189

 
1,246

 
1,352

 
1,297

Other interest income
 
3,148

 
3,641

 
 
851

 
806

 
740

 
751

 
920

Total interest income
 
57,400

 
66,236

 
 
13,971

 
13,976

 
13,992

 
15,461

 
15,413

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
 
1,990

 
3,002

 
 
438

 
484

 
519

 
549

 
616

Short-term borrowings
 
3,572

 
4,599

 
 
855

 
893

 
943

 
881

 
921

Trading account liabilities
 
1,763

 
2,212

 
 
420

 
418

 
448

 
477

 
411

Long-term debt
 
9,419

 
11,807

 
 
1,934

 
2,243

 
2,534

 
2,708

 
2,764

Total interest expense
 
16,744

 
21,620

 
 
3,647

 
4,038

 
4,444

 
4,615

 
4,712

Net interest income
 
40,656

 
44,616

 
 
10,324

 
9,938

 
9,548

 
10,846

 
10,701

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Card income
 
6,121

 
7,184

 
 
1,548

 
1,538

 
1,578

 
1,457

 
1,478

Service charges
 
7,600

 
8,094

 
 
1,820

 
1,934

 
1,934

 
1,912

 
1,982

Investment and brokerage services
 
11,393

 
11,826

 
 
2,889

 
2,781

 
2,847

 
2,876

 
2,694

Investment banking income
 
5,299

 
5,217

 
 
1,600

 
1,336

 
1,146

 
1,217

 
1,013

Equity investment income
 
2,070

 
7,360

 
 
699

 
238

 
368

 
765

 
3,227

Trading account profits
 
5,870

 
6,697

 
 
792

 
1,239

 
1,764

 
2,075

 
280

Mortgage banking income (loss)
 
4,750

 
(8,830
)
 
 
(540
)
 
2,019

 
1,659

 
1,612

 
2,119

Insurance income (loss)
 
(195
)
 
1,346

 
 
(124
)
 
(138
)
 
127

 
(60
)
 
143

Gains on sales of debt securities
 
1,662

 
3,374

 
 
171

 
339

 
400

 
752

 
1,192

Other income (loss)
 
(1,839
)
 
6,869

 
 
(518
)
 
(790
)
 
603

 
(1,134
)
 
140

Other-than-temporary impairment losses on available-for-sale debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total other-than-temporary impairment losses
 
(57
)
 
(360
)
 
 
(1
)
 
(9
)
 
(13
)
 
(51
)
 
(127
)
Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income
 
4

 
61

 
 

 
3

 
7

 
11

 
46

Net impairment losses recognized in earnings on available-for-sale debt securities
 
(53
)
 
(299
)
 
 
(1
)
 
(6
)
 
(6
)
 
(40
)
 
(81
)
Total noninterest income
 
42,678

 
48,838

 
 
8,336

 
10,490

 
12,420

 
11,432

 
14,187

Total revenue, net of interest expense
 
83,334

 
93,454

 
 
18,660

 
20,428

 
21,968

 
22,278

 
24,888

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
8,169

 
13,410

 
 
2,204

 
1,774

 
1,773

 
2,418

 
2,934

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Personnel
 
35,648

 
36,965

 
 
8,300

 
8,431

 
8,729

 
10,188

 
8,761

Occupancy
 
4,570

 
4,748

 
 
1,151

 
1,160

 
1,117

 
1,142

 
1,131

Equipment
 
2,269

 
2,340

 
 
551

 
561

 
546

 
611

 
525

Marketing
 
1,873

 
2,203

 
 
480

 
479

 
449

 
465

 
523

Professional fees
 
3,574

 
3,381

 
 
996

 
873

 
922

 
783

 
1,032

Amortization of intangibles
 
1,264

 
1,509

 
 
309

 
315

 
321

 
319

 
365

Data processing
 
2,961

 
2,652

 
 
773

 
640

 
692

 
856

 
688

Telecommunications
 
1,660

 
1,553

 
 
433

 
410

 
417

 
400

 
386

Other general operating
 
18,274

 
21,101

 
 
5,367

 
4,675

 
3,855

 
4,377

 
5,429

Goodwill impairment
 

 
3,184

 
 

 

 

 

 
581

Merger and restructuring charges
 

 
638

 
 

 

 

 

 
101

Total noninterest expense
 
72,093

 
80,274

 
 
18,360

 
17,544

 
17,048

 
19,141

 
19,522

Income (loss) before income taxes
 
3,072

 
(230
)
 
 
(1,904
)
 
1,110

 
3,147

 
719

 
2,432

Income tax expense (benefit)
 
(1,116
)
 
(1,676
)
 
 
(2,636
)
 
770

 
684

 
66

 
441

Net income
 
$
4,188

 
$
1,446

 
 
$
732

 
$
340

 
$
2,463

 
$
653

 
$
1,991

Preferred stock dividends
 
1,428

 
1,361

 
 
365

 
373

 
365

 
325

 
407

Net income (loss) applicable to common shareholders
 
$
2,760

 
$
85

 
 
$
367

 
$
(33
)
 
$
2,098

 
$
328

 
$
1,584

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Per common share information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings
 
$
0.26

 
$
0.01

 
 
$
0.03

 
$
0.00

 
$
0.19

 
$
0.03

 
$
0.15

 Diluted earnings
 
0.25

 
0.01

 
 
0.03

 
0.00

 
0.19

 
0.03

 
0.15

Dividends paid
 
0.04

 
0.04

 
 
0.01

 
0.01

 
0.01

 
0.01

 
0.01

Average common shares issued and outstanding
 
10,746,028

 
10,142,625

 
 
10,777,204

 
10,776,173

 
10,775,695

 
10,651,367

 
10,281,397

Average diluted common shares issued and outstanding (1)
 
10,840,854

 
10,254,824

 
 
10,884,921

 
10,776,173

 
11,556,011

 
10,761,917

 
11,124,523

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Due to a net loss applicable to common shareholders for the third quarter of 2012, the impact of antidilutive equity instruments was excluded from diluted earnings per share and average diluted common shares.

Certain prior period amounts have been reclassified to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
4



Bank of America Corporation and Subsidiaries
Consolidated Statement of Comprehensive Income
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth Quarter 2012
 
Third Quarter 2012
 
Second Quarter 2012
 
First Quarter 2012
 
Fourth Quarter 2011
 
2012
 
2011
 
 
Net income
$
4,188

 
$
1,446

 
 
$
732

 
$
340

 
$
2,463

 
$
653

 
$
1,991

Other comprehensive income, net-of-tax:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net change in available-for-sale debt and marketable equity securities
1,802

 
(4,270
)
 
 
(1,169
)
 
2,365

 
1,530

 
(924
)
 
(2,866
)
Net change in derivatives
916

 
(549
)
 
 
381

 
234

 
(81
)
 
382

 
281

Employee benefit plan adjustments
(65
)
 
(444
)
 
 
(1,171
)
 
75

 
79

 
952

 
(648
)
Net change in foreign currency translation adjustments
(13
)
 
(108
)
 
 
(27
)
 
15

 
(32
)
 
31

 
(133
)
Other comprehensive income (loss)
2,640

 
(5,371
)
 
 
(1,986
)
 
2,689

 
1,496

 
441

 
(3,366
)
Comprehensive income (loss)
$
6,828

 
$
(3,925
)
 
 
$
(1,254
)
 
$
3,029

 
$
3,959

 
$
1,094

 
$
(1,375
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Certain prior period amounts have been reclassified to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
5



Bank of America Corporation and Subsidiaries
Consolidated Balance Sheet
(Dollars in millions)
 
 
 
 
 
 
December 31
2012
 
September 30
2012
 
December 31
2011
Assets
 
 
 
 
 
Cash and cash equivalents
$
110,752

 
$
106,415

 
$
120,102

Time deposits placed and other short-term investments
18,694

 
15,950

 
26,004

Federal funds sold and securities borrowed or purchased under agreements to resell
219,924

 
234,034

 
211,183

Trading account assets
237,226

 
211,090

 
169,319

Derivative assets
53,497

 
57,865

 
73,023

Debt securities:
 
 
 
 
 
Available-for-sale
286,906

 
305,949

 
276,151

Held-to-maturity, at cost
49,481

 
39,898

 
35,265

Total debt securities
336,387

 
345,847

 
311,416

Loans and leases
907,819

 
893,035

 
926,200

Allowance for loan and lease losses
(24,179
)
 
(26,233
)
 
(33,783
)
Loans and leases, net of allowance
883,640

 
866,802

 
892,417

Premises and equipment, net
11,858

 
12,436

 
13,637

Mortgage servicing rights (includes $5,716, $5,087 and $7,378 measured at fair value)
5,851

 
5,242

 
7,510

Goodwill
69,976

 
69,976

 
69,967

Intangible assets
6,684

 
7,030

 
8,021

Loans held-for-sale
19,413

 
16,436

 
13,762

Customer and other receivables
71,467

 
66,341

 
66,999

Other assets
164,605

 
150,698

 
145,686

Total assets
$
2,209,974

 
$
2,166,162

 
$
2,129,046

 
 
 
 
 
 
Assets of consolidated VIEs included in total assets above (isolated to settle the liabilities of the VIEs)
Trading account assets
$
7,906

 
$
9,959

 
$
8,595

Derivative assets
333

 
546

 
1,634

Loans and leases
123,227

 
125,043

 
140,194

Allowance for loan and lease losses
(3,658
)
 
(3,811
)
 
(5,066
)
Loans and leases, net of allowance
119,569

 
121,232

 
135,128

Loans held-for-sale
1,969

 
2,165

 
1,635

All other assets
4,654

 
3,754

 
4,769

Total assets of consolidated VIEs
$
134,431

 
$
137,656

 
$
151,761



Certain prior period amounts have been reclassified to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
6



Bank of America Corporation and Subsidiaries
 
 
 
 
 
Consolidated Balance Sheet (continued) 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
December 31
2012
 
September 30
2012
 
December 31
2011
Liabilities
 
 
 
 
 
Deposits in U.S. offices:
 
 
 
 
 
Noninterest-bearing
$
372,546

 
$
362,646

 
$
332,228

Interest-bearing
654,332

 
625,200

 
624,814

Deposits in non-U.S. offices:
 
 
 
 
 
Noninterest-bearing
7,573

 
6,667

 
6,839

Interest-bearing
70,810

 
68,794

 
69,160

Total deposits
1,105,261

 
1,063,307

 
1,033,041

Federal funds purchased and securities loaned or sold under agreements to repurchase
293,259

 
273,900

 
214,864

Trading account liabilities
73,587

 
72,179

 
60,508

Derivative liabilities
46,016

 
51,369

 
59,520

Commercial paper and other short-term borrowings
30,731

 
35,291

 
35,698

Accrued expenses and other liabilities (includes $513, $518 and $714 of reserve for unfunded lending commitments)
148,579

 
144,976

 
123,049

Long-term debt
275,585

 
286,534

 
372,265

Total liabilities
1,973,018

 
1,927,556

 
1,898,945

Shareholders’ equity
 
 
 
 
 
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 3,685,410, 3,685,410 and 3,689,084 shares
18,768

 
18,768

 
18,397

Common stock and additional paid-in capital, $0.01 par value; authorized - 12,800,000,000 shares; issued and outstanding - 10,778,263,628, 10,777,267,465 and 10,535,937,957 shares
158,142

 
158,066

 
156,621

Retained earnings
62,843

 
62,583

 
60,520

Accumulated other comprehensive income (loss)
(2,797
)
 
(811
)
 
(5,437
)
Total shareholders’ equity
236,956

 
238,606

 
230,101

Total liabilities and shareholders’ equity
$
2,209,974

 
$
2,166,162

 
$
2,129,046

 
 
 
 
 
 
Liabilities of consolidated VIEs included in total liabilities above
Commercial paper and other short-term borrowings
$
3,731

 
$
3,872

 
$
5,777

Long-term debt
34,256

 
38,055

 
49,054

All other liabilities
360

 
625

 
1,116

Total liabilities of consolidated VIEs
$
38,347

 
$
42,552

 
$
55,947



Certain prior period amounts have been reclassified to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
7



Bank of America Corporation and Subsidiaries
Capital Management
(Dollars in millions)
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
First
Quarter
2012
 
Fourth
Quarter
2011
 
Risk-based capital (1)
 
 
 
 
 
Tier 1 common
$
133,403

 
$
136,406

 
$
134,082

 
$
131,602

 
$
126,690

Tier 1 capital
155,461

 
163,063

 
164,665

 
163,199

 
159,232

Total capital
196,676

 
205,172

 
208,936

 
213,480

 
215,101

Risk-weighted assets
1,205,660

 
1,195,722

 
1,193,422

 
1,220,827

 
1,284,467

Tier 1 common capital ratio (2)
11.06
%
 
11.41
%
 
11.24
%
 
10.78
%
 
9.86
%
Tier 1 capital ratio
12.89

 
13.64

 
13.80

 
13.37

 
12.40

Total capital ratio
16.31

 
17.16

 
17.51

 
17.49

 
16.75

Tier 1 leverage ratio
7.36

 
7.84

 
7.84

 
7.79

 
7.53

Tangible equity ratio (3)
7.62

 
7.85

 
7.73

 
7.48

 
7.54

Tangible common equity ratio (3)
6.74

 
6.95

 
6.83

 
6.58

 
6.64

 
 
 
 
 
 
 
 
 
 
(1) 
Reflects preliminary data for current period risk-based capital.
(2) 
Tier 1 common equity ratio equals Tier 1 capital excluding preferred stock, trust preferred securities, hybrid securities and minority interest divided by risk-weighted assets.
(3) 
Tangible equity ratio equals period-end tangible shareholders’ equity divided by period-end tangible assets. Tangible common equity equals period-end tangible common shareholders’ equity divided by period-end tangible assets. Tangible shareholders’ equity and tangible assets are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on pages 47-50.)


Basel 1 to Basel 3 Reconciliation (1)
 
 
(Dollars in millions)
 
 
 
 
 
 
December 31
2012
 
September 30
2012
 
June 30
2012
Regulatory capital – Basel 1 to Basel 3 (fully phased-in)
 
 
 
 
 
Basel 1 Tier 1 capital
$
155,461

 
$
163,063

 
$
164,665

Deduction of preferred stock, non-qualifying preferred stock and minority interest in equity accounts of consolidated subsidiaries
(22,058
)
 
(26,657
)
 
(30,583
)
Basel 1 Tier 1 common capital
133,403

 
136,406

 
134,082

Deduction of defined benefit pension assets
(737
)
 
(1,709
)
 
(3,057
)
Change in deferred tax asset and other threshold deductions (MSRs and significant investments)
(3,020
)
 
(1,102
)
 
(3,745
)
Change in all other deductions, net
(1,020
)
 
1,040

 
(2,459
)
Basel 3 (fully phased-in) Tier 1 common capital
$
128,626

 
$
134,635

 
$
124,821

 
 
 
 
 
 
Risk-weighted assets – Basel 1 to Basel 3 (fully phased-in)
 
 
 
 
 
Basel 1
$
1,205,660

 
$
1,195,722

 
$
1,193,422

Net change in credit and other risk-weighted assets
103,401

 
216,244

 
298,003

Increase due to market risk amendment
81,811

 
88,881

 
79,553

Basel 3 (fully phased-in)
$
1,390,872

 
$
1,500,847

 
$
1,570,978

 
 
 
 
 
 
Tier 1 common capital ratios
 
 
 
 
 
Basel 1
11.06
%
 
11.41
%
 
11.24
%
Basel 3 (fully phased-in)
9.25

 
8.97

 
7.95

 
 
 
 
 
 
(1) Basel 3 estimates are based on the U.S. Basel 3 Advanced NPR.


Certain prior period amounts have been reclassified to conform to current period presentation.







This information is preliminary and based on company data available at the time of the presentation.
8



Bank of America Corporation and Subsidiaries
Net Interest Income Excluding Trading-related Net Interest Income
(Dollars in millions)
 
Year Ended
December 31
 
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
First
Quarter
2012
 
Fourth
Quarter
2011
 
2012
 
2011
 
 
 
 
 
 
Net interest income (FTE basis)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As reported (1)
$
41,557

 
$
45,588

 
 
$
10,555

 
$
10,167

 
$
9,782

 
$
11,053

 
$
10,959

Impact of trading-related net interest income (2)
(3,308
)
 
(3,690
)
 
 
(1,012
)
 
(847
)
 
(653
)
 
(796
)
 
(866
)
Net interest income excluding trading-related net interest income (3)
$
38,249

 
$
41,898

 
 
$
9,543

 
$
9,320

 
$
9,129

 
$
10,257

 
$
10,093

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average earning assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As reported
$
1,769,969

 
$
1,834,659

 
 
$
1,788,936

 
$
1,750,275

 
$
1,772,568

 
$
1,768,105

 
$
1,783,986

Impact of trading-related earning assets (2)
(449,660
)
 
(445,574
)
 
 
(482,366
)
 
(446,948
)
 
(444,584
)
 
(424,414
)
 
(414,186
)
Average earning assets excluding trading-related earning assets (3)
$
1,320,309

 
$
1,389,085

 
 
$
1,306,570

 
$
1,303,327

 
$
1,327,984

 
$
1,343,691

 
$
1,369,800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest yield contribution (FTE basis) (4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As reported (1)
2.35
%
 
2.48
%
 
 
2.35
%
 
2.32
%
 
2.21
%
 
2.51
%
 
2.45
%
Impact of trading-related activities (2)
0.55

 
0.54

 
 
0.56

 
0.53

 
0.55

 
0.55

 
0.49

Net interest yield on earning assets excluding trading-related activities (3)
2.90
%
 
3.02
%
 
 
2.91
%
 
2.85
%
 
2.76
%
 
3.06
%
 
2.94
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Net interest income and net interest yield include fees earned on overnight deposits placed with the Federal Reserve and, beginning in the third quarter of 2012, deposits, primarily overnight, placed with certain non-U.S. central banks of $189 million and $186 million for the years ended December 31, 2012 and 2011; $42 million, $48 million, $52 million and $47 million for the fourth, third, second and first quarters of 2012, respectively, and $36 million for the fourth quarter of 2011.
(2) 
Represents the impact of trading-related amounts included in Global Markets.
(3) 
Represents a non-GAAP financial measure.
(4) 
Quarterly results are calculated on an annualized basis.


Certain prior period amounts have been reclassified to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
9



Bank of America Corporation and Subsidiaries
Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis
(Dollars in millions)
 
 
Fourth Quarter 2012
 
 
Third Quarter 2012
 
 
Fourth Quarter 2011
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
Earning assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Time deposits placed and other short-term investments (1)
 
$
16,967

 
$
50

 
1.14
%
 
 
$
15,849

 
$
58

 
1.47
%
 
 
$
27,688

 
$
85

 
1.19
%
Federal funds sold and securities borrowed or purchased under agreements to resell
 
241,950

 
329

 
0.54

 
 
234,955

 
353

 
0.60

 
 
237,453

 
449

 
0.75

Trading account assets
 
195,800

 
1,362

 
2.77

 
 
177,075

 
1,243

 
2.80

 
 
161,848

 
1,354

 
3.33

Debt securities (2)
 
339,779

 
2,123

 
2.50

 
 
340,773

 
2,036

 
2.39

 
 
332,990

 
2,245

 
2.69

Loans and leases (3):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
245,879

 
2,202

 
3.58

 
 
250,505

 
2,317

 
3.70

 
 
266,144

 
2,596

 
3.90

Home equity
 
110,105

 
1,067

 
3.86

 
 
116,184

 
1,097

 
3.77

 
 
126,251

 
1,207

 
3.80

Discontinued real estate
 
10,850

 
91

 
3.36

 
 
10,956

 
95

 
3.45

 
 
14,073

 
128

 
3.65

U.S. credit card
 
92,849

 
2,336

 
10.01

 
 
93,292

 
2,353

 
10.04

 
 
102,241

 
2,603

 
10.10

Non-U.S. credit card
 
13,081

 
383

 
11.66

 
 
13,329

 
385

 
11.48

 
 
15,981

 
420

 
10.41

Direct/Indirect consumer
 
82,583

 
662

 
3.19

 
 
82,635

 
704

 
3.39

 
 
90,861

 
863

 
3.77

Other consumer
 
1,602

 
19

 
4.57

 
 
2,654

 
40

 
6.03

 
 
2,751

 
41

 
6.14

Total consumer
 
556,949

 
6,760

 
4.84

 
 
569,555

 
6,991

 
4.89

 
 
618,302

 
7,858

 
5.06

U.S. commercial
 
209,496

 
1,729

 
3.28

 
 
201,072

 
1,752

 
3.47

 
 
196,778

 
1,798

 
3.63

Commercial real estate
 
38,192

 
341

 
3.55

 
 
36,929

 
329

 
3.54

 
 
40,673

 
343

 
3.34

Commercial lease financing
 
22,839

 
184

 
3.23

 
 
21,545

 
202

 
3.75

 
 
21,278

 
204

 
3.84

Non-U.S. commercial
 
65,690

 
433

 
2.62

 
 
59,758

 
401

 
2.67

 
 
55,867

 
395

 
2.80

Total commercial
 
336,217

 
2,687

 
3.18

 
 
319,304

 
2,684

 
3.35

 
 
314,596

 
2,740

 
3.46

Total loans and leases
 
893,166

 
9,447

 
4.21

 
 
888,859

 
9,675

 
4.34

 
 
932,898

 
10,598

 
4.52

Other earning assets
 
101,274

 
849

 
3.34

 
 
92,764

 
792

 
3.40

 
 
91,109

 
904

 
3.95

Total earning assets (4)
 
1,788,936

 
14,160

 
3.16

 
 
1,750,275

 
14,157

 
3.22

 
 
1,783,986

 
15,635

 
3.49

Cash and cash equivalents (1)
 
111,671

 
42

 
 
 
 
122,716

 
48

 
 
 
 
94,287

 
36

 
 
Other assets, less allowance for loan and lease losses
 
309,758

 
 
 
 
 
 
300,321

 
 
 
 
 
 
329,294

 
 
 
 
Total assets
 
$
2,210,365

 
 
 
 
 
 
$
2,173,312

 
 
 
 
 
 
$
2,207,567

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Corporation’s Consolidated Balance Sheet presentation of these deposits. In addition, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, which are included in the time deposits placed and other short-term investments line in prior periods, have been included in the cash and cash equivalents line. Net interest income and net interest yield are calculated excluding these fees.
(2) 
Yields on available-for-sale debt securities are calculated based on fair value rather than the cost basis. The use of fair value does not have a material impact on net interest yield.
(3) 
Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cost recovery basis. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan.
(4) 
The impact of interest rate risk management derivatives on interest income is presented below. Interest income includes the impact of interest rate risk management contracts, which increased (decreased) interest income on:
 
 
Fourth Quarter 2012
 
Third Quarter 2012
 
Fourth Quarter 2011
 
Time deposits placed and other short-term investments
 
 
$
(1
)
 
 
$

 
 
$

 
Federal funds sold and securities borrowed or purchased under agreements to resell
 
 
11

 
 
23

 
 
52

 
Debt securities
 
 
(134
)
 
 
(139
)
 
 
(462
)
 
U.S. commercial
 
 
(21
)
 
 
(19
)
 
 
(17
)
 
Non-U.S. commercial
 
 
(1
)
 
 
(1
)
 
 

 
Net hedge expenses on assets
 
 
$
(146
)
 
 
$
(136
)
 
 
$
(427
)
 


Certain prior period amounts have been reclassified to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
10



Bank of America Corporation and Subsidiaries
Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis (continued)
(Dollars in millions)
 
 
Fourth Quarter 2012
 
 
Third Quarter 2012
 
 
Fourth Quarter 2011
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
Interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Savings
 
$
41,294

 
$
6

 
0.06
%
 
 
$
41,581

 
$
11

 
0.10
%
 
 
$
39,609

 
$
16

 
0.16
%
NOW and money market deposit accounts
 
479,130

 
146

 
0.12

 
 
465,679

 
173

 
0.15

 
 
454,249

 
192

 
0.17

Consumer CDs and IRAs
 
91,256

 
156

 
0.68

 
 
94,140

 
172

 
0.73

 
 
103,488

 
220

 
0.84

Negotiable CDs, public funds and other deposits
 
19,904

 
27

 
0.54

 
 
19,587

 
30

 
0.61

 
 
22,413

 
34

 
0.60

Total U.S. interest-bearing deposits
 
631,584

 
335

 
0.21

 
 
620,987

 
386

 
0.25

 
 
619,759

 
462

 
0.30

Non-U.S. interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks located in non-U.S. countries
 
11,964

 
22

 
0.71

 
 
13,883

 
19

 
0.56

 
 
20,454

 
29

 
0.55

Governments and official institutions
 
876

 
1

 
0.29

 
 
1,019

 
1

 
0.31

 
 
1,466

 
1

 
0.36

Time, savings and other
 
53,655

 
80

 
0.60

 
 
52,175

 
78

 
0.59

 
 
57,814

 
124

 
0.85

Total non-U.S. interest-bearing deposits
 
66,495

 
103

 
0.62

 
 
67,077

 
98

 
0.58

 
 
79,734

 
154

 
0.77

Total interest-bearing deposits
 
698,079

 
438

 
0.25

 
 
688,064

 
484

 
0.28

 
 
699,493

 
616

 
0.35

Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings
 
336,341

 
855

 
1.01

 
 
325,023

 
893

 
1.09

 
 
284,766

 
921

 
1.28

Trading account liabilities
 
80,084

 
420

 
2.09

 
 
77,528

 
418

 
2.14

 
 
70,999

 
411

 
2.29

Long-term debt
 
277,894

 
1,934

 
2.77

 
 
291,684

 
2,243

 
3.07

 
 
389,557

 
2,764

 
2.80

Total interest-bearing liabilities (1)
 
1,392,398

 
3,647

 
1.04

 
 
1,382,299

 
4,038

 
1.16

 
 
1,444,815

 
4,712

 
1.29

Noninterest-bearing sources:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing deposits
 
379,997

 
 
 
 
 
 
361,633

 
 
 
 
 
 
333,038

 
 
 
 
Other liabilities
 
199,458

 
 
 
 
 
 
193,341

 
 
 
 
 
 
201,479

 
 
 
 
Shareholders’ equity
 
238,512

 
 
 
 
 
 
236,039

 
 
 
 
 
 
228,235

 
 
 
 
Total liabilities and shareholders’ equity
 
$
2,210,365

 
 
 
 
 
 
$
2,173,312

 
 
 
 
 
 
$
2,207,567

 
 
 
 
Net interest spread
 
 
 
 
 
2.12
%
 
 
 
 
 
 
2.06
%
 
 
 
 
 
 
2.20
%
Impact of noninterest-bearing sources
 
 
 
 
 
0.22

 
 
 
 
 
 
0.25

 
 
 
 
 
 
0.24

Net interest income/yield on earning assets (2)
 
 
 
$
10,513

 
2.34
%
 
 
 
 
$
10,119

 
2.31
%
 
 
 
 
$
10,923

 
2.44
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
The impact of interest rate risk management derivatives on interest expense is presented below. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest expense on:
 
 
Fourth Quarter 2012
 
Third Quarter 2012
 
Fourth Quarter 2011
 
Consumer CDs and IRAs
 
 
$
15

 
 
$
16

 
 
$
36

 
Negotiable CDs, public funds and other deposits
 
 
3

 
 
3

 
 
3

 
Banks located in non-U.S. countries
 
 
3

 
 
3

 
 
8

 
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings
 
 
311

 
 
323

 
 
367

 
Long-term debt
 
 
(930
)
 
 
(799
)
 
 
(1,177
)
 
Net hedge income on liabilities
 
 
$
(598
)
 
 
$
(454
)
 
 
$
(763
)
 

(2) 
For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Corporation’s Consolidated Balance Sheet presentation of these deposits. In addition, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, which are included in the time deposits placed and other short-term investments line in prior periods, have been included in the cash and cash equivalents line. Net interest income and net interest yield are calculated excluding these fees.


Certain prior period amounts have been reclassified to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
11



Bank of America Corporation and Subsidiaries
Annual Average Balances and Interest Rates - Fully Taxable-equivalent Basis
(Dollars in millions)
 
 
2012
 
 
2011
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
Earning assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Time deposits placed and other short-term investments (1) 
 
$
22,888

 
$
237

 
1.03
%
 
 
$
28,242

 
$
366

 
1.29
%
Federal funds sold and securities borrowed or purchased under agreements to resell
 
236,042

 
1,502

 
0.64

 
 
245,069

 
2,147

 
0.88

Trading account assets
 
182,359

 
5,306

 
2.91

 
 
187,340

 
6,142

 
3.28

Debt securities (2)
 
337,653

 
8,798

 
2.61

 
 
337,120

 
9,602

 
2.85

Loans and leases (3):
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
253,050

 
9,470

 
3.74

 
 
265,546

 
11,096

 
4.18

Home equity
 
117,197

 
4,418

 
3.77

 
 
130,781

 
5,041

 
3.85

Discontinued real estate
 
11,256

 
383

 
3.40

 
 
14,730

 
501

 
3.40

U.S. credit card
 
94,863

 
9,504

 
10.02

 
 
105,478

 
10,808

 
10.25

Non-U.S. credit card
 
13,549

 
1,572

 
11.60

 
 
24,049

 
2,656

 
11.04

Direct/Indirect consumer
 
84,424

 
2,900

 
3.44

 
 
90,163

 
3,716

 
4.12

Other consumer
 
2,359

 
140

 
5.95

 
 
2,760

 
176

 
6.39

Total consumer
 
576,698

 
28,387

 
4.92

 
 
633,507

 
33,994

 
5.37

U.S. commercial
 
201,352

 
6,979

 
3.47

 
 
192,524

 
7,360

 
3.82

Commercial real estate
 
37,982

 
1,332

 
3.51

 
 
44,406

 
1,522

 
3.43

Commercial lease financing
 
21,879

 
874

 
4.00

 
 
21,383

 
1,001

 
4.68

Non-U.S. commercial
 
60,857

 
1,594

 
2.62

 
 
46,276

 
1,382

 
2.99

Total commercial
 
322,070

 
10,779

 
3.35

 
 
304,589

 
11,265

 
3.70

Total loans and leases
 
898,768

 
39,166

 
4.36

 
 
938,096

 
45,259

 
4.82

Other earning assets
 
92,259

 
3,103

 
3.36

 
 
98,792

 
3,506

 
3.55

Total earning assets (4)
 
1,769,969

 
58,112

 
3.28

 
 
1,834,659

 
67,022

 
3.65

Cash and cash equivalents (1) 
 
115,739

 
189

 
 
 
 
112,616

 
186

 
 
Other assets, less allowance for loan and lease losses
 
305,648

 
 
 
 
 
 
349,047

 
 
 
 
Total assets
 
$
2,191,356

 
 
 
 
 
 
$
2,296,322

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Corporation’s Consolidated Balance Sheet presentation of these deposits. In addition, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, which are included in the time deposits placed and other short-term investments line in prior periods, have been included in the cash and cash equivalents line. Net interest income and net interest yield are calculated excluding these fees.
(2) 
Yields on available-for-sale debt securities are calculated based on fair value rather than the cost basis. The use of fair value does not have a material impact on net interest yield.
(3) 
Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cost recovery basis. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan.
(4) 
The impact of interest rate risk management derivatives on interest income is presented below. Interest income includes the impact of interest rate risk management contracts, which increased (decreased) interest income on:
 
2012
 
2011
 
Time deposits placed and other short-term investments
 
$
(1
)
 
 
$

 
Federal funds sold and securities borrowed or purchased under agreements to resell
 
121

 
 
193

 
Trading account assets
 

 
 
(158
)
 
Debt securities
 
(799
)
 
 
(2,554
)
 
U.S. commercial
 
(72
)
 
 
(58
)
 
Non-U.S. commercial
 
(3
)
 
 
(2
)
 
Net hedge expenses on assets
 
$
(754
)
 
 
$
(2,579
)
 


Certain prior period amounts have been reclassified to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
12



Bank of America Corporation and Subsidiaries
Annual Average Balances and Interest Rates - Fully Taxable-equivalent Basis (continued)
(Dollars in millions)
 
 
2012
 
 
2011
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
Interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
Savings
 
$
41,453

 
$
45

 
0.11
%
 
 
$
40,364

 
$
100

 
0.25
%
NOW and money market deposit accounts
 
466,096

 
693

 
0.15

 
 
470,519

 
1,060

 
0.23

Consumer CDs and IRAs
 
95,559

 
693

 
0.73

 
 
110,922

 
1,045

 
0.94

Negotiable CDs, public funds and other deposits
 
20,928

 
128

 
0.61

 
 
17,227

 
120

 
0.70

Total U.S. interest-bearing deposits
 
624,036

 
1,559

 
0.25

 
 
639,032

 
2,325

 
0.36

Non-U.S. interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks located in non-U.S. countries
 
14,644

 
94

 
0.64

 
 
20,563

 
138

 
0.67

Governments and official institutions
 
1,019

 
4

 
0.35

 
 
1,985

 
7

 
0.35

Time, savings and other
 
53,411

 
333

 
0.62

 
 
61,851

 
532

 
0.86

Total non-U.S. interest-bearing deposits
 
69,074

 
431

 
0.62

 
 
84,399

 
677

 
0.80

Total interest-bearing deposits
 
693,110

 
1,990

 
0.29

 
 
723,431

 
3,002

 
0.42

Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings
 
318,400

 
3,572

 
1.12

 
 
324,269

 
4,599

 
1.42

Trading account liabilities
 
78,554

 
1,763

 
2.24

 
 
84,689

 
2,212

 
2.61

Long-term debt
 
316,393

 
9,419

 
2.98

 
 
421,229

 
11,807

 
2.80

Total interest-bearing liabilities (1)
 
1,406,457

 
16,744

 
1.19

 
 
1,553,618

 
21,620

 
1.39

Noninterest-bearing sources:
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing deposits
 
354,672

 
 
 
 
 
 
312,371

 
 
 
 
Other liabilities
 
194,550

 
 
 
 
 
 
201,238

 
 
 
 
Shareholders’ equity
 
235,677

 
 
 
 
 
 
229,095

 
 
 
 
Total liabilities and shareholders’ equity
 
$
2,191,356

 
 
 
 
 
 
$
2,296,322

 
 
 
 
Net interest spread
 
 
 
 
 
2.09
%
 
 
 
 
 
 
2.26
%
Impact of noninterest-bearing sources
 
 
 
 
 
0.25

 
 
 
 
 
 
0.21

Net interest income/yield on earning assets (2)
 
 
 
$
41,368

 
2.34
%
 
 
 
 
$
45,402

 
2.47
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
The impact of interest rate risk management derivatives on interest expense is presented below. Interest expense includes the impact of interest rate risk management contracts, which increased(decreased) interest expense on:
 
2012
 
2011
 
NOW and money market deposit accounts
 
$
(1
)
 
 
$
(1
)
 
Consumer CDs and IRAs
 
87

 
 
173

 
Negotiable CDs, public funds and other deposits
 
13

 
 
13

 
Banks located in non-U.S. countries
 
13

 
 
55

 
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings
 
1,266

 
 
1,794

 
Long-term debt
 
(3,679
)
 
 
(4,674
)
 
Net hedge income on liabilities
 
$
(2,301
)
 
 
$
(2,640
)
 

(2) 
For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Corporation’s Consolidated Balance Sheet presentation of these deposits. In addition, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, which are included in the time deposits placed and other short-term investments line in prior periods, have been included in the cash and cash equivalents line. Net interest income and net interest yield are calculated excluding these fees.


Certain prior period amounts have been reclassified to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
13



Bank of America Corporation and Subsidiaries
Debt Securities and Available-for-Sale Marketable Equity Securities
(Dollars in millions)
 
 
December 31, 2012
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available-for-sale debt securities
 
 
 
 
 
 
 
 
U.S. Treasury and agency securities
 
$
24,232

 
$
324

 
$
(84
)
 
$
24,472

Mortgage-backed securities:
 
 
 
 
 
 
 
 
Agency
 
183,247

 
5,048

 
(146
)
 
188,149

Agency collateralized mortgage obligations
 
36,329

 
1,427

 
(218
)
 
37,538

Non-agency residential
 
9,231

 
391

 
(128
)
 
9,494

Non-agency commercial
 
3,576

 
348

 

 
3,924

Non-U.S. securities
 
5,574

 
50

 
(6
)
 
5,618

Corporate bonds
 
1,415

 
51

 
(16
)
 
1,450

Other taxable securities, substantially all asset-backed securities
 
12,089

 
54

 
(15
)
 
12,128

Total taxable securities
 
275,693

 
7,693

 
(613
)
 
282,773

Tax-exempt securities
 
4,167

 
13

 
(47
)
 
4,133

Total available-for-sale debt securities
 
279,860

 
7,706

 
(660
)
 
286,906

Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities
 
49,481

 
815

 
(26
)
 
50,270

Total debt securities
 
$
329,341

 
$
8,521

 
$
(686
)
 
$
337,176

Available-for-sale marketable equity securities (1)
 
$
780

 
$
732

 
$

 
$
1,512

 
 
 
 
 
 
 
 
 
 
 
September 30, 2012
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available-for-sale debt securities
 
 
 
 
 
 
 
 
U.S. Treasury and agency securities
 
$
24,794

 
$
236

 
$
(235
)
 
$
24,795

Mortgage-backed securities:
 
 
 
 
 
 
 
 
Agency
 
196,976

 
7,091

 
(24
)
 
204,043

Agency collateralized mortgage obligations
 
38,863

 
1,412

 
(128
)
 
40,147

Non-agency residential
 
9,772

 
377

 
(147
)
 
10,002

Non-agency commercial
 
3,733

 
394

 

 
4,127

Non-U.S. securities
 
5,709

 
50

 
(11
)
 
5,748

Corporate bonds
 
2,018

 
83

 
(18
)
 
2,083

Other taxable securities, substantially all asset-backed securities
 
12,128

 
85

 
(16
)
 
12,197

Total taxable securities
 
293,993

 
9,728

 
(579
)
 
303,142

Tax-exempt securities
 
2,840

 
17

 
(50
)
 
2,807

Total available-for-sale debt securities
 
296,833

 
9,745

 
(629
)
 
305,949

Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities
 
39,898

 
1,230

 

 
41,128

Total debt securities
 
$
336,731

 
$
10,975

 
$
(629
)
 
$
347,077

Available-for-sale marketable equity securities (1)
 
$
783

 
$
526

 
$
(5
)
 
$
1,304

 
 
 
 
 
 
 
 
 
(1) 
Classified in other assets on the Corporation's Consolidated Balance Sheet.


Certain prior period amounts have been reclassified to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
14



Bank of America Corporation and Subsidiaries
Quarterly Results by Business Segment
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2012
 
 
Total
Corporation
 
 
Consumer & Business Banking
 
Consumer
Real Estate
Services
 
Global
Banking
 
Global
Markets
 
GWIM
 
All
Other
Net interest income (FTE basis)
 
$
10,555

 
 
$
4,689

 
$
742

 
$
2,377

 
$
1,016

 
$
1,490

 
$
241

Noninterest income (loss)
 
8,336

 
 
2,515

 
(274
)
 
1,949

 
1,828

 
2,704

 
(386
)
Total revenue, net of interest expense (FTE basis)
 
18,891

 
 
7,204

 
468

 
4,326

 
2,844

 
4,194

 
(145
)
Provision for credit losses
 
2,204

 
 
963

 
485

 
180

 
16

 
112

 
448

Noninterest expense
 
18,360

 
 
4,121

 
5,629

 
1,946

 
2,498

 
3,195

 
971

Income (loss) before income taxes
 
(1,673
)
 
 
2,120

 
(5,646
)
 
2,200

 
330

 
887

 
(1,564
)
Income tax expense (benefit) (FTE basis)
 
(2,405
)
 
 
692

 
(1,924
)
 
768

 
178

 
309

 
(2,428
)
Net income (loss)
 
$
732

 
 
$
1,428

 
$
(3,722
)
 
$
1,432

 
$
152

 
$
578

 
$
864

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
893,166

 
 
$
132,421

 
$
97,912

 
$
278,218

 
n/m

 
$
103,785

 
$
245,820

Total assets (1)
 
2,210,365

 
 
540,695

 
132,963

 
366,396

 
$
628,449

 
276,431

 
265,431

Total deposits
 
1,078,076

 
 
486,467

 
n/m

 
268,045

 
n/m

 
249,658

 
36,939

Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
907,819

 
 
$
134,657

 
$
95,972

 
$
288,261

 
n/m

 
$
105,928

 
$
240,667

Total assets (1)
 
2,209,974

 
 
554,878

 
132,388

 
362,797

 
$
615,297

 
297,330

 
247,284

Total deposits
 
1,105,261

 
 
498,669

 
n/m

 
269,738

 
n/m

 
266,188

 
36,061

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2012
 
 
Total
Corporation
 
 
Consumer & Business Banking
 
Consumer
Real Estate
Services
 
Global
Banking
 
Global
Markets
 
GWIM
 
All
Other
Net interest income (FTE basis)
 
$
10,167

 
 
$
4,651

 
$
728

 
$
2,265

 
$
846

 
$
1,413

 
$
264

Noninterest income (loss)
 
10,490

 
 
2,419

 
2,368

 
1,881

 
2,263

 
2,670

 
(1,111
)
Total revenue, net of interest expense (FTE basis)
 
20,657

 
 
7,070

 
3,096

 
4,146

 
3,109

 
4,083

 
(847
)
Provision for credit losses
 
1,774

 
 
970

 
264

 
68

 
21

 
61

 
390

Noninterest expense
 
17,544

 
 
4,061

 
4,223

 
2,021

 
2,548

 
3,128

 
1,563

Income (loss) before income taxes
 
1,339

 
 
2,039

 
(1,391
)
 
2,057

 
540

 
894

 
(2,800
)
Income tax expense (benefit) (FTE basis)
 
999

 
 
754

 
(515
)
 
761

 
899

 
332

 
(1,232
)
Net income (loss)
 
$
340

 
 
$
1,285

 
$
(876
)
 
$
1,296

 
$
(359
)
 
$
562

 
$
(1,568
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
888,859

 
 
$
133,881

 
$
103,708

 
$
267,390

 
n/m

 
$
101,016

 
$
254,894

Total assets (1)
 
2,173,312

 
 
533,981

 
141,779

 
355,670

 
$
584,345

 
265,672

 
291,865

Total deposits
 
1,049,697

 
 
480,342

 
n/m

 
252,226

 
n/m

 
241,411

 
39,262

Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
893,035

 
 
$
133,308

 
$
99,890

 
$
272,052

 
n/m

 
$
102,390

 
$
251,345

Total assets (1)
 
2,166,162

 
 
540,260

 
139,366

 
355,417

 
$
583,223

 
268,441

 
279,455

Total deposits
 
1,063,307

 
 
486,857

 
n/m

 
260,030

 
n/m

 
243,518

 
37,554

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2011
 
 
Total
Corporation
 
 
Consumer & Business Banking
 
Consumer
Real Estate
Services
 
Global
Banking
 
Global
Markets
 
GWIM
 
All
Other
Net interest income (FTE basis)
 
$
10,959

 
 
$
5,080

 
$
809

 
$
2,309

 
$
864

 
$
1,448

 
$
449

Noninterest income
 
14,187

 
 
2,526

 
2,466

 
1,693

 
943

 
2,495

 
4,064

Total revenue, net of interest expense (FTE basis)
 
25,146

 
 
7,606

 
3,275

 
4,002

 
1,807

 
3,943

 
4,513

Provision for credit losses
 
2,934

 
 
1,297

 
1,001

 
(256
)
 
(18
)
 
118

 
792

Noninterest expense
 
19,522

 
 
4,429

 
4,569

 
2,136

 
2,895

 
3,392

 
2,101

Income (loss) before income taxes
 
2,690

 
 
1,880

 
(2,295
)
 
2,122

 
(1,070
)
 
433

 
1,620

Income tax expense (benefit) (FTE basis)
 
699

 
 
638

 
(853
)
 
785

 
(302
)
 
161

 
270

Net income (loss)
 
$
1,991

 
 
$
1,242

 
$
(1,442
)
 
$
1,337

 
$
(768
)
 
$
272

 
$
1,350

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
932,898

 
 
$
147,150

 
$
116,993

 
$
276,850

 
n/m

 
$
97,722

 
$
277,744

Total assets (1)
 
2,207,567

 
 
515,339

 
171,763

 
347,255

 
$
552,911

 
273,874

 
346,425

Total deposits
 
1,032,531

 
 
459,819

 
n/m

 
240,757

 
n/m

 
237,098

 
58,946

Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
926,200

 
 
$
146,378

 
$
112,359

 
$
278,177

 
n/m

 
$
98,654

 
$
272,385

Total assets (1)
 
2,129,046

 
 
521,097

 
163,712

 
348,773

 
$
501,867

 
273,106

 
320,491

Total deposits
 
1,033,041

 
 
464,264

 
n/m

 
246,360

 
n/m

 
240,540

 
45,532

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Total assets include asset allocations to match liabilities (i.e., deposits).
 
n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
15



Bank of America Corporation and Subsidiaries
Annual Results by Business Segment
(Dollars in millions)
 
 
 
Year Ended December 31, 2012
 
 
Total
Corporation
 
 
Consumer & Business Banking
 
Consumer
Real Estate
Services
 
Global
Banking
 
Global
Markets
 
GWIM
 
All
Other
Net interest income (FTE basis)
 
$
41,557

 
 
$
19,125

 
$
2,959

 
$
9,225

 
$
3,310

 
$
5,827

 
$
1,111

Noninterest income (loss)
 
42,678

 
 
9,898

 
5,800

 
7,982

 
10,209

 
10,690

 
(1,901
)
Total revenue, net of interest expense (FTE basis)
 
84,235

 
 
29,023

 
8,759

 
17,207

 
13,519

 
16,517

 
(790
)
Provision for credit losses
 
8,169

 
 
3,941

 
1,442

 
(103
)
 
3

 
266

 
2,620

Noninterest expense
 
72,093

 
 
16,793

 
17,306

 
8,308

 
10,839

 
12,755

 
6,092

Income (loss) before income taxes
 
3,973

 
 
8,289

 
(9,989
)
 
9,002

 
2,677

 
3,496

 
(9,502
)
Income tax expense (benefit) (FTE basis)
 
(215
)
 
 
2,968

 
(3,482
)
 
3,277

 
1,623

 
1,273

 
(5,874
)
Net income (loss)
 
$
4,188

 
 
$
5,321

 
$
(6,507
)
 
$
5,725

 
$
1,054

 
$
2,223

 
$
(3,628
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
898,768

 
 
$
136,171

 
$
104,754

 
$
272,625

 
n/m

 
$
100,456

 
$
258,012

Total assets (1)
 
2,191,356

 
 
532,546

 
146,605

 
352,969

 
$
588,459

 
268,490

 
302,287

Total deposits
 
1,047,782

 
 
477,440

 
n/m

 
249,317

 
n/m

 
242,384

 
43,083

Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
907,819

 
 
$
134,657

 
$
95,972

 
$
288,261

 
n/m

 
$
105,928

 
$
240,667

Total assets (1)
 
2,209,974

 
 
554,878

 
132,388

 
362,797

 
$
615,297

 
297,330

 
247,284

Total deposits
 
1,105,261

 
 
498,669

 
n/m

 
269,738

 
n/m

 
266,188

 
36,061

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2011
 
 
Total
Corporation
 
 
Consumer & Business Banking
 
Consumer
Real Estate
Services
 
Global
Banking
 
Global
Markets
 
GWIM
 
All
Other
Net interest income (FTE basis)
 
$
45,588

 
 
$
21,378

 
$
3,207

 
$
9,490

 
$
3,682

 
$
5,885

 
$
1,946

Noninterest income (loss)
 
48,838

 
 
11,502

 
(6,361
)
 
7,822

 
11,116

 
10,610

 
14,149

Total revenue, net of interest expense (FTE basis)
 
94,426

 
 
32,880

 
(3,154
)
 
17,312

 
14,798

 
16,495

 
16,095

Provision for credit losses
 
13,410

 
 
3,490

 
4,524

 
(1,118
)
 
(56
)
 
398

 
6,172

Noninterest expense
 
80,274

 
 
17,719

 
21,791

 
8,884

 
12,244

 
13,383

 
6,253

Income (loss) before income taxes
 
742

 
 
11,671

 
(29,469
)
 
9,546

 
2,610

 
2,714

 
3,670

Income tax expense (benefit) (FTE basis)
 
(704
)
 
 
4,224

 
(10,004
)
 
3,500

 
1,622

 
996

 
(1,042
)
Net income (loss)
 
$
1,446

 
 
$
7,447

 
$
(19,465
)
 
$
6,046

 
$
988

 
$
1,718

 
$
4,712

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
938,096

 
 
$
153,641

 
$
119,820

 
$
265,568

 
n/m

 
$
96,974

 
$
289,010

Total assets (1)
 
2,296,322

 
 
518,076

 
190,367

 
337,337

 
$
590,474

 
279,815

 
380,253

Total deposits
 
1,035,802

 
 
462,087

 
n/m

 
237,312

 
n/m

 
241,535

 
62,582

Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
926,200

 
 
$
146,378

 
$
112,359

 
$
278,177

 
n/m

 
$
98,654

 
$
272,385

Total assets (1)
 
2,129,046

 
 
521,097

 
163,712

 
348,773

 
$
501,867

 
273,106

 
320,491

Total deposits
 
1,033,041

 
 
464,264

 
n/m

 
246,360

 
n/m

 
240,540

 
45,532

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Total assets include asset allocations to match liabilities (i.e., deposits).

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
16



Bank of America Corporation and Subsidiaries
Consumer & Business Banking Segment Results
(Dollars in millions)
 
 
Year Ended
December 31
 
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
First
Quarter
2012
 
Fourth
Quarter
2011
 
 
2012
 
2011
 
 
 
 
 
 
Net interest income (FTE basis)
 
$
19,125

 
$
21,378

 
 
$
4,689

 
$
4,651

 
$
4,705

 
$
5,080

 
$
5,080

Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Card income
 
5,261

 
6,286

 
 
1,327

 
1,325

 
1,331

 
1,278

 
1,303

Service charges
 
4,284

 
4,524

 
 
1,035

 
1,103

 
1,082

 
1,064

 
1,145

All other income (loss)
 
353

 
692

 
 
153

 
(9
)
 
208

 
1

 
78

Total noninterest income
 
9,898

 
11,502

 
 
2,515

 
2,419

 
2,621

 
2,343

 
2,526

Total revenue, net of interest expense (FTE basis)
 
29,023

 
32,880

 
 
7,204

 
7,070

 
7,326

 
7,423

 
7,606

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
3,941

 
3,490

 
 
963

 
970

 
1,131

 
877

 
1,297

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
16,793

 
17,719

 
 
4,121

 
4,061

 
4,360

 
4,251

 
4,429

Income before income taxes
 
8,289

 
11,671

 
 
2,120

 
2,039

 
1,835

 
2,295

 
1,880

Income tax expense (FTE basis)
 
2,968

 
4,224

 
 
692

 
754

 
680

 
842

 
638

Net income
 
$
5,321

 
$
7,447

 
 
$
1,428

 
$
1,285

 
$
1,155

 
$
1,453

 
$
1,242

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
3.88
%
 
4.45
%
 
 
3.73
%
 
3.74
%
 
3.85
%
 
4.22
%
 
4.23
%
Return on average allocated equity
 
9.92

 
14.07

 
 
10.48

 
9.47

 
8.69

 
11.04

 
9.30

Return on average economic capital (1)
 
23.01

 
33.52

 
 
23.94

 
21.77

 
20.29

 
26.13

 
22.08

Efficiency ratio (FTE basis)
 
57.86

 
53.89

 
 
57.21

 
57.43

 
59.52

 
57.26

 
58.24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
136,171

 
$
153,641

 
 
$
132,421

 
$
133,881

 
$
136,872

 
$
141,578

 
$
147,150

Total earning assets (2)
 
492,965

 
480,590

 
 
500,625

 
494,485

 
492,085

 
484,565

 
476,399

Total assets (2)
 
532,546

 
518,076

 
 
540,695

 
533,981

 
531,747

 
523,658

 
515,339

Total deposits
 
477,440

 
462,087

 
 
486,467

 
480,342

 
476,580

 
466,240

 
459,819

Allocated equity
 
53,646

 
52,908

 
 
54,194

 
53,982

 
53,452

 
52,947

 
53,004

Economic capital (1)
 
23,178

 
22,273

 
 
23,777

 
23,535

 
22,967

 
22,425

 
22,417

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
134,657

 
$
146,378

 
 
$
134,657

 
$
133,308

 
$
135,523

 
$
138,909

 
$
146,378

Total earning assets (2)
 
514,521

 
480,972

 
 
514,521

 
499,604

 
497,920

 
502,788

 
480,972

Total assets (2)
 
554,878

 
521,097

 
 
554,878

 
540,260

 
537,647

 
543,855

 
521,097

Total deposits
 
498,669

 
464,264

 
 
498,669

 
486,857

 
481,939

 
486,162

 
464,264

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Return on average economic capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average economic capital. Economic capital represents allocated equity less goodwill and a percentage of intangible assets. Economic capital and return on average economic capital are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)
(2)
Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits).


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
17



Bank of America Corporation and Subsidiaries
 
 
Consumer & Business Banking Annual Results
 
 
(Dollars in millions)
 
 
Year Ended December 31, 2012
 
 
Total Consumer & Business Banking
 
 
Deposits
 
Card
Services
 
Business
Banking
Net interest income (FTE basis)
 
$
19,125

 
 
$
7,857

 
$
10,047

 
$
1,221

Noninterest income:
 
 
 
 
 
 
 
 
 
Card income
 
5,261

 
 

 
5,261

 

Service charges
 
4,284

 
 
3,922

 
1

 
361

All other income (loss)
 
353

 
 
276

 
(54
)
 
131

Total noninterest income
 
9,898

 
 
4,198

 
5,208

 
492

Total revenue, net of interest expense (FTE basis)
 
29,023

 
 
12,055

 
15,255

 
1,713

 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
3,941

 
 
208

 
3,452

 
281

 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
16,793

 
 
10,409

 
5,496

 
888

Income before income taxes
 
8,289

 
 
1,438

 
6,307

 
544

Income tax expense (FTE basis)
 
2,968

 
 
521

 
2,246

 
201

Net income
 
$
5,321

 
 
$
917

 
$
4,061

 
$
343

 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
3.88
%
 
 
1.81
%
 
8.93
%
 
2.68
%
Return on average allocated equity
 
9.92

 
 
3.77

 
19.73

 
3.92

Return on average economic capital (1)
 
23.01

 
 
14.35

 
40.20

 
5.16

Efficiency ratio (FTE basis)
 
57.86

 
 
86.34

 
36.03

 
51.81

 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
136,171

 
 
n/m

 
$
111,642

 
$
23,764

Total earning assets (2)
 
492,965

 
 
$
433,908

 
112,489

 
45,549

Total assets (2)
 
532,546

 
 
460,074

 
118,763

 
52,690

Total deposits
 
477,440

 
 
434,261

 
n/m

 
42,837

Allocated equity
 
53,646

 
 
24,329

 
20,578

 
8,739

Economic capital (1)
 
23,178

 
 
6,405

 
10,131

 
6,642

 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
134,657

 
 
n/m

 
$
110,380

 
$
23,396

Total earning assets (2)
 
514,521

 
 
$
455,999

 
110,831

 
44,712

Total assets (2)
 
554,878

 
 
482,339

 
117,904

 
51,655

Total deposits
 
498,669

 
 
455,871

 
n/m

 
42,382

 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2011
 
 
Total Consumer & Business Banking
 
 
Deposits
 
Card
Services
 
Business
Banking
Net interest income (FTE basis)
 
$
21,378

 
 
$
8,472

 
$
11,502

 
$
1,404

Noninterest income:
 
 
 
 
 
 
 
 
 
Card income
 
6,286

 
 

 
6,286

 

Service charges
 
4,524

 
 
4,000

 

 
524

All other income
 
692

 
 
224

 
328

 
140

Total noninterest income
 
11,502

 
 
4,224

 
6,614

 
664

Total revenue, net of interest expense (FTE basis)
 
32,880

 
 
12,696

 
18,116

 
2,068

 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
3,490

 
 
173

 
3,072

 
245

 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
17,719

 
 
10,600

 
5,961

 
1,158

Income before income taxes
 
11,671

 
 
1,923

 
9,083

 
665

Income tax expense (FTE basis)
 
4,224

 
 
706

 
3,272

 
246

Net income
 
$
7,447

 
 
$
1,217

 
$
5,811

 
$
419

 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
4.45
%
 
 
2.02
%
 
9.04
%
 
3.23
%
Return on average allocated equity
 
14.07

 
 
5.13

 
27.50

 
5.20

Return on average economic capital (1)
 
33.52

 
 
21.10

 
55.30

 
7.03

Efficiency ratio (FTE basis)
 
53.89

 
 
83.49

 
32.90

 
56.09

 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
153,641

 
 
n/m

 
$
126,083

 
$
26,889

Total earning assets (2)
 
480,590

 
 
$
419,996

 
127,258

 
43,542

Total assets (2)
 
518,076

 
 
446,475

 
130,254

 
51,553

Total deposits
 
462,087

 
 
421,106

 
n/m

 
40,679

Allocated equity
 
52,908

 
 
23,734

 
21,127

 
8,047

Economic capital (1)
 
22,273

 
 
5,786

 
10,538

 
5,949

 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
146,378

 
 
n/m

 
$
120,668

 
$
25,006

Total earning assets (2)
 
480,972

 
 
$
419,215

 
121,991

 
46,516

Total assets (2)
 
521,097

 
 
446,274

 
127,623

 
53,950

Total deposits
 
464,264

 
 
421,871

 
n/m

 
41,519

 
 
 
 
 
 
 
 
 
 
For footnotes see page 20.
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
18



Bank of America Corporation and Subsidiaries
 
 
Consumer & Business Banking Quarterly Results
 
 
(Dollars in millions)
 
 
Fourth Quarter 2012
 
 
Total Consumer & Business Banking
 
 
Deposits
 
Card
Services
 
Business
Banking
Net interest income (FTE basis)
 
$
4,689

 
 
$
1,941

 
$
2,471

 
$
277

Noninterest income:
 
 
 
 
 
 
 
 
 
Card income
 
1,327

 
 

 
1,327

 

Service charges
 
1,035

 
 
950

 

 
85

All other income
 
153

 
 
82

 
27

 
44

Total noninterest income
 
2,515

 
 
1,032

 
1,354

 
129

Total revenue, net of interest expense (FTE basis)
 
7,204

 
 
2,973

 
3,825

 
406

 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
963

 
 
57

 
886

 
20

 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
4,121

 
 
2,589

 
1,325

 
207

Income before income taxes
 
2,120

 
 
327

 
1,614

 
179

Income tax expense (FTE basis)
 
692

 
 
111

 
515

 
66

Net income
 
$
1,428

 
 
$
216

 
$
1,099

 
$
113

 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
3.73
%
 
 
1.74
%
 
9.02
%
 
2.44
%
Return on average allocated equity
 
10.48

 
 
3.42

 
21.17

 
5.33

Return on average economic capital (1)
 
23.94

 
 
11.99

 
42.77

 
7.09

Efficiency ratio (FTE basis)
 
57.21

 
 
87.11

 
34.66

 
50.71

 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
132,421

 
 
n/m

 
$
108,522

 
$
23,064

Total earning assets (2)
 
500,625

 
 
$
443,054

 
109,006

 
45,276

Total assets (2)
 
540,695

 
 
469,197

 
115,851

 
52,357

Total deposits
 
486,467

 
 
442,435

 
n/m

 
43,657

Allocated equity
 
54,194

 
 
25,076

 
20,652

 
8,466

Economic capital (1)
 
23,777

 
 
7,161

 
10,247

 
6,369

 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
134,657

 
 
n/m

 
$
110,380

 
$
23,396

Total earning assets (2)
 
514,521

 
 
$
455,999

 
110,831

 
44,712

Total assets (2)
 
554,878

 
 
482,339

 
117,904

 
51,655

Total deposits
 
498,669

 
 
455,871

 
n/m

 
42,382

 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2012
 
 
Total Consumer & Business Banking
 
 
Deposits
 
Card
Services
 
Business
Banking
Net interest income (FTE basis)
 
$
4,651

 
 
$
1,882

 
$
2,479

 
$
290

Noninterest income:
 
 
 
 
 
 
 
 
 
Card income
 
1,325

 
 

 
1,325

 

Service charges
 
1,103

 
 
1,012

 

 
91

All other income (loss)
 
(9
)
 
 
63

 
(100
)
 
28

Total noninterest income
 
2,419

 
 
1,075

 
1,225

 
119

Total revenue, net of interest expense (FTE basis)
 
7,070

 
 
2,957

 
3,704

 
409

 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
970

 
 
60

 
836

 
74

 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
4,061

 
 
2,568

 
1,290

 
203

Income before income taxes
 
2,039

 
 
329

 
1,578

 
132

Income tax expense (FTE basis)
 
754

 
 
122

 
584

 
48

Net income
 
$
1,285

 
 
$
207

 
$
994

 
$
84

 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
3.74
%
 
 
1.71
%
 
8.95
%
 
2.57
%
Return on average allocated equity
 
9.47

 
 
3.29

 
19.33

 
3.89

Return on average economic capital (1)
 
21.77

 
 
11.60

 
39.54

 
5.17

Efficiency ratio (FTE basis)
 
57.43

 
 
86.82

 
34.79

 
50.03

 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
133,881

 
 
n/m

 
$
109,707

 
$
23,375

Total earning assets (2)
 
494,485

 
 
$
437,234

 
110,233

 
44,974

Total assets (2)
 
533,981

 
 
463,248

 
116,760

 
51,929

Total deposits
 
480,342

 
 
436,688

 
n/m

 
43,294

Allocated equity
 
53,982

 
 
25,047

 
20,463

 
8,472

Economic capital (1)
 
23,535

 
 
7,127

 
10,034

 
6,374

 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
133,308

 
 
n/m

 
$
109,358

 
$
23,150

Total earning assets (2)
 
499,604

 
 
$
442,960

 
109,865

 
44,532

Total assets (2)
 
540,260

 
 
468,885

 
116,921

 
52,207

Total deposits
 
486,857

 
 
442,875

 
n/m

 
43,055

 
 
 
 
 
 
 
 
 
 
For footnotes see page 20.
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
19



Bank of America Corporation and Subsidiaries
 
 
Consumer & Business Banking Quarterly Results (continued)
 
 
(Dollars in millions)
 
 
Fourth Quarter 2011
 
 
Total Consumer & Business Banking
 
 
Deposits
 
Card
Services
 
Business
Banking
Net interest income (FTE basis)
 
$
5,080

 
 
$
1,999

 
$
2,765

 
$
316

Noninterest income:
 
 
 
 
 
 
 
 
 
Card income
 
1,303

 
 

 
1,303

 

Service charges
 
1,145

 
 
1,037

 

 
108

All other income (loss)
 
78

 
 
46

 
(14
)
 
46

Total noninterest income
 
2,526

 
 
1,083

 
1,289

 
154

Total revenue, net of interest expense (FTE basis)
 
7,606

 
 
3,082

 
4,054

 
470

 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
1,297

 
 
57

 
1,138

 
102

 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
4,429

 
 
2,779

 
1,377

 
273

Income before income taxes
 
1,880

 
 
246

 
1,539

 
95

Income tax expense (FTE basis)
 
638

 
 
92

 
511

 
35

Net income
 
$
1,242

 
 
$
154

 
$
1,028

 
$
60

 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
4.23
%
 
 
1.91
%
 
8.96
%
 
2.69
%
Return on average allocated equity
 
9.30

 
 
2.57

 
19.80

 
2.77

Return on average economic capital (1)
 
22.08

 
 
10.41

 
40.71

 
3.68

Efficiency ratio (FTE basis)
 
58.24

 
 
90.15

 
33.97

 
58.39

 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
147,150

 
 
n/m

 
$
121,122

 
$
25,306

Total earning assets (2)
 
476,399

 
 
$
415,444

 
122,374

 
46,708

Total assets (2)
 
515,339

 
 
442,169

 
127,530

 
53,767

Total deposits
 
459,819

 
 
417,110

 
n/m

 
42,388

Allocated equity
 
53,004

 
 
23,861

 
20,610

 
8,533

Economic capital (1)
 
22,417

 
 
5,922

 
10,061

 
6,434

 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
146,378

 
 
n/m

 
$
120,668

 
$
25,006

Total earning assets (2)
 
480,972

 
 
$
419,215

 
121,991

 
46,516

Total assets (2)
 
521,097

 
 
446,274

 
127,623

 
53,950

Total deposits
 
464,264

 
 
421,871

 
n/m

 
41,519

 
 
 
 
 
 
 
 
 
 
(1) 
Return on average economic capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average economic capital. Economic capital represents allocated equity less goodwill and a percentage of intangible assets. Economic capital and return on average economic capital are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)
(2) 
For presentation purposes, in segments or businesses where the total of liabilities and equity exceeds assets, we allocate assets to match liabilities. As a result, total earning assets and total assets of the businesses may not equal total Consumer & Business Banking.

n/m = not meaningful


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
20



Bank of America Corporation and Subsidiaries
Consumer & Business Banking Key Indicators
(Dollars in millions)
 
 
Year Ended
December 31
 
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
First
Quarter
2012
 
Fourth
Quarter
2011
 
 
2012
 
2011
 
 
 
 
 
 
Average deposit balances
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Checking
 
$
212,261

 
$
194,814

 
 
$
219,660

 
$
213,860

 
$
211,014

 
$
204,412

 
$
198,274

Savings
 
39,225

 
38,128

 
 
39,121

 
39,372

 
40,119

 
38,286

 
37,409

MMS
 
143,954

 
136,336

 
 
148,655

 
146,032

 
142,543

 
138,512

 
136,257

CDs and IRAs
 
77,729

 
88,812

 
 
74,634

 
76,840

 
78,642

 
80,844

 
83,719

Non-U.S. and other
 
4,271

 
3,997

 
 
4,397

 
4,238

 
4,262

 
4,186

 
4,160

Total average deposit balances
 
$
477,440

 
$
462,087

 
 
$
486,467

 
$
480,342

 
$
476,580

 
$
466,240

 
$
459,819

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposit spreads (excludes noninterest costs)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Checking
 
2.53
%
 
3.16
%
 
 
2.27
%
 
2.45
%
 
2.64
%
 
2.81
%
 
2.95
%
Savings
 
2.71

 
3.27

 
 
2.48

 
2.62

 
2.78

 
2.97

 
3.11

MMS
 
1.20

 
1.40

 
 
1.11

 
1.15

 
1.22

 
1.30

 
1.35

CDs and IRAs
 
0.58

 
0.39

 
 
0.57

 
0.58

 
0.62

 
0.55

 
0.46

Non-U.S. and other
 
1.00

 
3.71

 
 
0.93

 
1.02

 
1.06

 
1.00

 
3.44

Total deposit spreads
 
1.81

 
2.12

 
 
1.66

 
1.75

 
1.87

 
1.96

 
2.03

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Client brokerage assets
 
$
75,946

 
$
66,576

 
 
$
75,946

 
$
75,852

 
$
72,226

 
$
73,422

 
$
66,576

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Online banking active accounts (units in thousands)
 
29,638

 
29,870

 
 
29,638

 
29,809

 
30,232

 
30,439

 
29,870

Mobile banking active accounts (units in thousands)
 
12,013

 
9,166

 
 
12,013

 
11,097

 
10,290

 
9,702

 
9,166

Banking centers
 
5,478

 
5,702

 
 
5,478

 
5,540

 
5,594

 
5,651

 
5,702

ATMs
 
16,347

 
17,756

 
 
16,347

 
16,253

 
16,220

 
17,255

 
17,756

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. credit card 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average credit card outstandings
 
$
94,863

 
$
105,478

 
 
$
92,849

 
$
93,292

 
$
95,018

 
$
98,334

 
$
102,241

Ending credit card outstandings
 
94,835

 
102,291

 
 
94,835

 
93,162

 
94,291

 
96,433

 
102,291

Credit quality
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs
 
$
4,632

 
$
7,276

 
 
$
978

 
$
1,079

 
$
1,244

 
$
1,331

 
$
1,432

 
 
4.88
%
 
6.90
%
 
 
4.19
%
 
4.60
%
 
5.27
%
 
5.44
%
 
5.55
%
30+ delinquency
 
$
2,749

 
$
3,823

 
 
$
2,749

 
$
2,855

 
$
2,948

 
$
3,384

 
$
3,823

 
 
2.90
%
 
3.74
%
 
 
2.90
%
 
3.06
%
 
3.13
%
 
3.51
%
 
3.74
%
90+ delinquency
 
$
1,438

 
$
2,070

 
 
$
1,438

 
$
1,471

 
$
1,594

 
$
1,866

 
$
2,070

 
 
1.52
%
 
2.02
%
 
 
1.52
%
 
1.58
%
 
1.69
%
 
1.93
%
 
2.02
%
Other U.S. credit card indicators
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross interest yield
 
10.02
%
 
10.25
%
 
 
10.01
%
 
10.04
%
 
9.97
%
 
10.06
%
 
10.10
%
Risk adjusted margin
 
7.54

 
5.81

 
 
8.48

 
7.66

 
7.51

 
6.54

 
6.77

New account growth (in thousands)
 
3,258

 
3,035

 
 
837

 
857

 
782

 
782

 
797

Purchase volumes
 
$
193,500

 
$
192,358

 
 
$
51,628

 
$
48,189

 
$
48,886

 
$
44,797

 
$
50,901

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debit card data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volumes
 
$
258,363

 
$
250,545

 
 
$
66,217

 
$
64,121

 
$
64,993

 
$
63,032

 
$
63,726

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average outstandings
 
$
23,764

 
$
26,889

 
 
$
23,064

 
$
23,375

 
$
24,025

 
$
24,603

 
$
25,306

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit spread
 
1.83
%
 
2.36
%
 
 
1.55
%
 
1.76
%
 
2.01
%
 
2.01
%
 
1.77
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit quality
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs
 
$
457

 
$
462

 
 
$
79

 
$
150

 
$
131

 
$
97

 
$
118

 
 
1.92
%
 
1.72
%
 
 
1.37
%
 
2.54
%
 
2.21
%
 
1.58
%
 
1.85
%
Nonperforming assets
 
$
917

 
$
1,300

 
 
$
917

 
$
1,075

 
$
1,146

 
$
1,228

 
$
1,300

 
 
3.92
%
 
5.20
%
 
 
3.92
%
 
4.65
%
 
4.84
%
 
5.04
%
 
5.20
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Certain prior period amounts have been reclassified to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
21



Bank of America Corporation and Subsidiaries
Consumer Real Estate Services Segment Results
(Dollars in millions; except as noted)
 
 
Year Ended
December 31
 
 
Fourth Quarter 2012
 
Third Quarter 2012
 
Second Quarter 2012
 
First Quarter 2012
 
Fourth Quarter 2011
 
 
2012
 
2011
 
 
Net interest income (FTE basis)
 
$
2,959

 
$
3,207

 
 
$
742

 
$
728

 
$
714

 
$
775

 
$
809

Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage banking income (loss)
 
5,531

 
(8,193
)
 
 
(303
)
 
2,192

 
1,811

 
1,831

 
2,329

Insurance income (loss)
 
6

 
750

 
 
(1
)
 

 
1

 
6

 
(3
)
All other income (loss)
 
263

 
1,082

 
 
30

 
176

 
(5
)
 
62

 
140

Total noninterest income (loss)
 
5,800

 
(6,361
)
 
 
(274
)
 
2,368

 
1,807

 
1,899

 
2,466

Total revenue, net of interest expense (FTE basis)
 
8,759

 
(3,154
)
 
 
468

 
3,096

 
2,521

 
2,674

 
3,275

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
1,442

 
4,524

 
 
485

 
264

 
186

 
507

 
1,001

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill impairment
 

 
2,603

 
 

 

 

 

 

All other noninterest expense
 
17,306

 
19,188

 
 
5,629

 
4,223

 
3,552

 
3,902

 
4,569

Loss before income taxes
 
(9,989
)
 
(29,469
)
 
 
(5,646
)
 
(1,391
)
 
(1,217
)
 
(1,735
)
 
(2,295
)
Income tax benefit (FTE basis)
 
(3,482
)
 
(10,004
)
 
 
(1,924
)
 
(515
)
 
(451
)
 
(592
)
 
(853
)
Net loss
 
$
(6,507
)
 
$
(19,465
)
 
 
$
(3,722
)
 
$
(876
)
 
$
(766
)
 
$
(1,143
)
 
$
(1,442
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
2.43
%
 
2.07
%
 
 
2.67
%
 
2.41
%
 
2.27
%
 
2.39
%
 
2.30
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
104,754

 
$
119,820

 
 
$
97,912

 
$
103,708

 
$
106,725

 
$
110,755

 
$
116,993

Total earning assets
 
121,869

 
154,890

 
 
110,446

 
120,148

 
126,823

 
130,201

 
139,789

Total assets
 
146,605

 
190,367

 
 
132,963

 
141,779

 
152,777

 
159,105

 
171,763

Allocated equity
 
13,687

 
16,202

 
 
12,525

 
13,332

 
14,116

 
14,791

 
14,757

Economic capital (1)
 
13,687

 
14,852

 
 
12,525

 
13,332

 
14,116

 
14,791

 
14,757

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
95,972

 
$
112,359

 
 
$
95,972

 
$
99,890

 
$
105,304

 
$
109,264

 
$
112,359

Total earning assets
 
108,286

 
132,381

 
 
108,286

 
114,225

 
124,854

 
130,420

 
132,381

Total assets
 
132,388

 
163,712

 
 
132,388

 
139,366

 
147,638

 
158,207

 
163,712

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period end (in billions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage servicing portfolio (2)
 
$
1,367.8

 
$
1,763.0

 
 
$
1,367.8

 
$
1,475.7

 
$
1,586.4

 
$
1,686.7

 
$
1,763.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights). Economic capital is a non-GAAP financial measure. We believe the use of this non-GAAP financial measure provides additional clarity in assessing the results of the segment. Other companies may define or calculate this measure differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)
(2) 
Includes servicing of residential mortgage loans, home equity lines of credit, home equity loans and discontinued real estate mortgage loans.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
22



Bank of America Corporation and Subsidiaries
Consumer Real Estate Services Annual Results (1)
(Dollars in millions)
 
 
Year Ended December 31, 2012
 
 
Total Consumer Real Estate Services
 
 
Home Loans
 
Legacy Assets &
Servicing
Net interest income (FTE basis)
 
$
2,959

 
 
$
1,361

 
$
1,598

Noninterest income:
 
 
 
 
 
 
 
Mortgage banking income
 
5,531

 
 
3,284

 
2,247

Insurance income
 
6

 
 
6

 

All other income (loss)
 
263

 
 
(5
)
 
268

Total noninterest income
 
5,800

 
 
3,285

 
2,515

Total revenue, net of interest expense (FTE basis)
 
8,759

 
 
4,646

 
4,113

 
 
 
 
 
 
 
 
Provision for credit losses
 
1,442

 
 
72

 
1,370

 
 
 
 
 
 
 
 
Noninterest expense
 
17,306

 
 
3,171

 
14,135

Income (loss) before income taxes
 
(9,989
)
 
 
1,403

 
(11,392
)
Income tax expense (benefit) (FTE basis)
 
(3,482
)
 
 
511

 
(3,993
)
Net income (loss)
 
$
(6,507
)
 
 
$
892

 
$
(7,399
)
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Total loans and leases
 
$
104,754

 
 
$
50,023

 
$
54,731

Total earning assets
 
121,869

 
 
56,581

 
65,288

Total assets
 
146,605

 
 
57,550

 
89,055

Allocated equity
 
13,687

 
 
n/a

 
n/a

Economic capital (2)
 
13,687

 
 
n/a

 
n/a

 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
Total loans and leases
 
$
95,972

 
 
$
47,742

 
$
48,230

Total earning assets
 
108,286

 
 
54,394

 
53,892

Total assets
 
132,388

 
 
55,463

 
76,925

 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2011
 
 
Total Consumer Real Estate Services
 
 
Home Loans
 
Legacy Assets &
Servicing
Net interest income (FTE basis)
 
$
3,207

 
 
$
1,828

 
$
1,379

Noninterest income:
 
 
 
 
 
 
 
Mortgage banking income (loss)
 
(8,193
)
 
 
2,312

 
(10,505
)
Insurance income
 
750

 
 
750

 

All other income
 
1,082

 
 
971

 
111

Total noninterest income (loss)
 
(6,361
)
 
 
4,033

 
(10,394
)
Total revenue, net of interest expense (FTE basis)
 
(3,154
)
 
 
5,861

 
(9,015
)
 
 
 
 
 
 
 
 
Provision for credit losses
 
4,524

 
 
233

 
4,291

 
 
 
 
 
 
 
 
Goodwill impairment
 
2,603

 
 

 
2,603

All other noninterest expense
 
19,188

 
 
4,563

 
14,625

Income (loss) before income taxes
 
(29,469
)
 
 
1,065

 
(30,534
)
Income tax expense (benefit) (FTE basis)
 
(10,004
)
 
 
396

 
(10,400
)
Net income (loss)
 
$
(19,465
)
 
 
$
669

 
$
(20,134
)
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Total loans and leases
 
$
119,820

 
 
$
54,663

 
$
65,157

Total earning assets
 
154,890

 
 
70,488

 
84,402

Total assets
 
190,367

 
 
71,508

 
118,859

Allocated equity
 
16,202

 
 
n/a

 
n/a

Economic capital (2)
 
14,852

 
 
n/a

 
n/a

 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
Total loans and leases
 
$
112,359

 
 
$
52,371

 
$
59,988

Total earning assets
 
132,381

 
 
58,819

 
73,562

Total assets
 
163,712

 
 
59,647

 
104,065

 
 
 
 
 
 
 
 
For footnotes see page 25.
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
23



Bank of America Corporation and Subsidiaries
Consumer Real Estate Services Quarterly Results (1)
(Dollars in millions)
 
 
Fourth Quarter 2012
 
 
Total Consumer Real Estate Services
 
 
Home Loans
 
Legacy Assets &
Servicing
Net interest income (FTE basis)
 
$
742

 
 
$
348

 
$
394

Noninterest income:
 
 
 
 
 
 
 
Mortgage banking income (loss)
 
(303
)
 
 
891

 
(1,194
)
Insurance loss
 
(1
)
 
 
(1
)
 

All other income
 
30

 
 
14

 
16

Total noninterest income (loss)
 
(274
)
 
 
904

 
(1,178
)
Total revenue, net of interest expense (FTE basis)
 
468

 
 
1,252

 
(784
)
 
 
 
 
 
 
 
 
Provision for credit losses
 
485

 
 
77

 
408

 
 
 
 
 
 
 
 
Noninterest expense
 
5,629

 
 
740

 
4,889

Income (loss) before income taxes
 
(5,646
)
 
 
435

 
(6,081
)
Income tax expense (benefit) (FTE basis)
 
(1,924
)
 
 
154

 
(2,078
)
Net income (loss)
 
$
(3,722
)
 
 
$
281

 
$
(4,003
)
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Total loans and leases
 
$
97,912

 
 
$
48,312

 
$
49,600

Total earning assets
 
110,446

 
 
54,720

 
55,726

Total assets
 
132,963

 
 
55,609

 
77,354

Allocated equity
 
12,525

 
 
n/a

 
n/a

Economic capital (2)
 
12,525

 
 
n/a

 
n/a

 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
Total loans and leases
 
$
95,972

 
 
$
47,742

 
$
48,230

Total earning assets
 
108,286

 
 
54,394

 
53,892

Total assets
 
132,388

 
 
55,463

 
76,925

 
 
 
 
 
 
 
 
 
 
Third Quarter 2012
 
 
Total Consumer Real Estate Services
 
 
Home Loans
 
Legacy Assets &
Servicing
Net interest income (FTE basis)
 
$
728

 
 
$
336

 
$
392

Noninterest income:
 
 
 
 
 
 
 
Mortgage banking income
 
2,192

 
 
853

 
1,339

All other income (loss)
 
176

 
 
(10
)
 
186

Total noninterest income
 
2,368

 
 
843

 
1,525

Total revenue, net of interest expense (FTE basis)
 
3,096

 
 
1,179

 
1,917

 
 
 
 
 
 
 
 
Provision for credit losses
 
264

 
 
(23
)
 
287

 
 
 
 
 
 
 
 
Noninterest expense
 
4,223

 
 
783

 
3,440

Income (loss) before income taxes
 
(1,391
)
 
 
419

 
(1,810
)
Income tax expense (benefit) (FTE basis)
 
(515
)
 
 
155

 
(670
)
Net income (loss)
 
$
(876
)
 
 
$
264

 
$
(1,140
)
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Total loans and leases
 
$
103,708

 
 
$
49,561

 
$
54,147

Total earning assets
 
120,148

 
 
56,285

 
63,863

Total assets
 
141,779

 
 
57,370

 
84,409

Allocated equity
 
13,332

 
 
n/a

 
n/a

Economic capital (2)
 
13,332

 
 
n/a

 
n/a

 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
Total loans and leases
 
$
99,890

 
 
$
48,865

 
$
51,025

Total earning assets
 
114,225

 
 
56,137

 
58,088

Total assets
 
139,366

 
 
57,335

 
82,031

 
 
 
 
 
 
 
 
For footnotes see page 25.
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
24



Bank of America Corporation and Subsidiaries
Consumer Real Estate Services Quarterly Results (1) (continued)
(Dollars in millions)
 
 
Fourth Quarter 2011
 
 
Total Consumer Real Estate Services
 
 
Home Loans
 
Legacy Assets &
Servicing
Net interest income (FTE basis)
 
$
809

 
 
$
384

 
$
425

Noninterest income:
 
 
 
 
 
 
 
Mortgage banking income
 
2,329

 
 
439

 
1,890

Insurance loss
 
(3
)
 
 
(3
)
 

All other income
 
140

 
 
100

 
40

Total noninterest income
 
2,466

 
 
536

 
1,930

Total revenue, net of interest expense (FTE basis)
 
3,275

 
 
920

 
2,355

 
 
 
 
 
 
 
 
Provision for credit losses
 
1,001

 
 
62

 
939

 
 
 
 
 
 
 
 
Noninterest expense
 
4,569

 
 
726

 
3,843

Income (loss) before income taxes
 
(2,295
)
 
 
132

 
(2,427
)
Income tax expense (benefit) (FTE basis)
 
(853
)
 
 
50

 
(903
)
Net income (loss)
 
$
(1,442
)
 
 
$
82

 
$
(1,524
)
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Total loans and leases
 
$
116,993

 
 
$
54,301

 
$
62,692

Total earning assets
 
139,789

 
 
63,733

 
76,056

Total assets
 
171,763

 
 
64,988

 
106,775

Allocated equity
 
14,757

 
 
n/a

 
n/a

Economic capital (2)
 
14,757

 
 
n/a

 
n/a

 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
Total loans and leases
 
$
112,359

 
 
$
52,371

 
$
59,988

Total earning assets
 
132,381

 
 
58,819

 
73,562

Total assets
 
163,712

 
 
59,647

 
104,065

 
 
 
 
 
 
 
 
(1) 
Consumer Real Estate Services includes Home Loans and Legacy Assets & Servicing. The results of certain mortgage servicing rights activities, including net hedge results, which were previously included in Home Loans, together with any related assets or liabilities used as economic hedges are included in Legacy Assets & Servicing. The goodwill asset and related impairment charge that was recorded in 2011 are included in Legacy Assets & Servicing.
(2) 
Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights). Economic capital is a non-GAAP financial measure. We believe the use of this non-GAAP financial measure provides additional clarity in assessing the results of the segment. Other companies may define or calculate this measure differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)

n/a = not applicable


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
25



Bank of America Corporation and Subsidiaries
Consumer Real Estate Services Key Indicators
(Dollars in millions, except as noted)
 
 
Year Ended
December 31
 
 
Fourth Quarter 2012
 
Third Quarter 2012
 
Second Quarter 2012
 
First Quarter 2012
 
Fourth Quarter 2011
 
 
 
2012
 
2011
Mortgage servicing rights at fair value rollforward:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
$
7,378

 
$
14,900

 
 
$
5,087

 
$
5,708

 
$
7,589

 
$
7,378

 
$
7,880

 
Net additions
 
252

 
760

 
 
97

 
85

 
(7
)
 
77

 
(290
)
 
Impact of customer payments (1)
 
(1,484
)
 
(2,621
)
 
 
(335
)
 
(346
)
 
(282
)
 
(521
)
 
(612
)
 
Other changes in mortgage servicing rights fair value (2)
 
(430
)
 
(5,661
)
 
 
867

 
(360
)
 
(1,592
)
 
655

 
400

 
Balance, end of period
 
$
5,716

 
$
7,378

 
 
$
5,716

 
$
5,087

 
$
5,708

 
$
7,589

 
$
7,378

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized mortgage servicing rights (% of loans serviced for investors)
 
55

bps
54

bps
 
55

bps
45

bps
47

bps
58

bps
54

bps
Mortgage loans serviced for investors (in billions)
 
$
1,045

 
$
1,379

 
 
$
1,045

 
$
1,142

 
$
1,224

 
$
1,313

 
$
1,379

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan production:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Corporation (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First mortgage
 
$
75,074

 
$
151,756

 
 
$
21,516

 
$
20,315

 
$
18,005

 
$
15,238

 
$
21,614

 
First mortgage (excluding correspondent lending)
 
75,074

 
80,300

 
 
21,516

 
20,315

 
18,005

 
15,238

 
15,141

 
Home equity
 
3,585

 
4,388

 
 
962

 
933

 
930

 
760

 
759

 
Consumer Real Estate Services
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First mortgage
 
$
58,518

 
$
139,273

 
 
$
16,561

 
$
15,566

 
$
14,206

 
$
12,185

 
$
18,053

 
First mortgage (excluding correspondent lending)
 
58,518

 
67,817

 
 
16,561

 
15,566

 
14,206

 
12,185

 
11,580

 
Home equity
 
2,832

 
3,694

 
 
765

 
746

 
724

 
597

 
580

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage banking income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Production income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core production revenue
 
$
3,730

 
$
2,797

 
 
$
974

 
$
942

 
$
885

 
$
929

 
$
502

 
Representations and warranties provision
 
(3,939
)
 
(15,591
)
 
 
(2,955
)
 
(307
)
 
(395
)
 
(282
)
 
(264
)
 
Total production income (loss)
 
(209
)
 
(12,794
)
 
 
(1,981
)
 
635

 
490

 
647

 
238

 
Servicing income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Servicing fees
 
4,734

 
6,035

 
 
1,112

 
1,088

 
1,205

 
1,329

 
1,335

 
Impact of customer payments (1)
 
(1,484
)
 
(2,621
)
 
 
(335
)
 
(346
)
 
(282
)
 
(521
)
 
(612
)
 
Fair value changes of mortgage servicing rights, net of economic hedge results (4)
 
1,845

 
655

 
 
897

 
560

 
194

 
194

 
1,165

 
Other servicing-related revenue
 
645

 
532

 
 
4

 
255

 
204

 
182

 
203

 
Total net servicing income
 
5,740

 
4,601

 
 
1,678

 
1,557

 
1,321

 
1,184

 
2,091

 
Total Consumer Real Estate Services mortgage banking income (loss)
 
5,531

 
(8,193
)
 
 
(303
)
 
2,192

 
1,811

 
1,831

 
2,329

 
Other business segments’ mortgage banking loss (5)
 
(781
)
 
(637
)
 
 
(237
)
 
(173
)
 
(152
)
 
(219
)
 
(210
)
 
Total consolidated mortgage banking income (loss)
 
$
4,750

 
$
(8,830
)
 
 
$
(540
)
 
$
2,019

 
$
1,659

 
$
1,612

 
$
2,119

 
 
(1) 
Represents the change in the market value of the mortgage servicing rights asset due to the impact of customer payments received during the year.
(2) 
These amounts reflect the change in discount rates and prepayment speed assumptions, mostly due to changes in interest rates, as well as the effect of changes in other assumptions.
(3) 
In addition to loan production in Consumer Real Estate Services, the remaining first mortgage and home equity loan production is primarily in GWIM.
(4) 
Includes gains and losses on sales of mortgage servicing rights.
(5) 
Includes the effect of transfers of mortgage loans from Consumer Real Estate Services to the asset and liability management portfolio included in All Other.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
26



Bank of America Corporation and Subsidiaries
Global Banking Segment Results
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth Quarter 2012
 
Third Quarter 2012
 
Second Quarter 2012
 
First Quarter 2012
 
Fourth Quarter 2011
 
2012
 
2011
 
 
Net interest income (FTE basis)
$
9,225

 
$
9,490

 
 
$
2,377

 
$
2,265

 
$
2,184

 
$
2,399

 
$
2,309

Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service charges
3,168

 
3,420

 
 
751

 
795

 
815

 
807

 
802

Investment banking income
2,787

 
3,061

 
 
842

 
662

 
632

 
651

 
629

All other income
2,027

 
1,341

 
 
356

 
424

 
655

 
592

 
262

Total noninterest income
7,982

 
7,822

 
 
1,949

 
1,881

 
2,102

 
2,050

 
1,693

Total revenue, net of interest expense (FTE basis)
17,207

 
17,312

 
 
4,326

 
4,146

 
4,286

 
4,449

 
4,002

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
(103
)
 
(1,118
)
 
 
180

 
68

 
(113
)
 
(238
)
 
(256
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
8,308

 
8,884

 
 
1,946

 
2,021

 
2,165

 
2,176

 
2,136

Income before income taxes
9,002

 
9,546

 
 
2,200

 
2,057

 
2,234

 
2,511

 
2,122

Income tax expense (FTE basis)
3,277

 
3,500

 
 
768

 
761

 
827

 
921

 
785

Net income
$
5,725

 
$
6,046

 
 
$
1,432

 
$
1,296

 
$
1,407

 
$
1,590

 
$
1,337

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
3.01
%
 
3.26
%
 
 
2.96
%
 
2.92
%
 
2.97
%
 
3.18
%
 
3.04
%
Return on average equity
12.47

 
12.76

 
 
12.47

 
11.15

 
12.31

 
13.98

 
11.51

Return on average economic capital (1)
27.21

 
26.59

 
 
27.32

 
24.14

 
26.83

 
30.67

 
25.06

Efficiency ratio (FTE basis)
48.28

 
51.31

 
 
44.95

 
48.74

 
50.53

 
48.92

 
53.36

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
$
272,625

 
$
265,568

 
 
$
278,218

 
$
267,390

 
$
267,813

 
$
277,076

 
$
276,850

Total earnings assets (2)
306,724

 
290,797

 
 
319,325

 
308,357

 
295,915

 
303,142

 
300,912

Total assets (2)
352,969

 
337,337

 
 
366,396

 
355,670

 
341,151

 
348,483

 
347,255

Total deposits
249,317

 
237,312

 
 
268,045

 
252,226

 
239,161

 
237,598

 
240,757

Allocated equity
45,907

 
47,384

 
 
45,729

 
46,223

 
45,958

 
45,719

 
46,087

Economic capital (1)
21,053

 
22,761

 
 
20,880

 
21,371

 
21,102

 
20,858

 
21,188

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
$
288,261

 
$
278,177

 
 
$
288,261

 
$
272,052

 
$
265,395

 
$
272,286

 
$
278,177

Total earnings assets (2)
315,638

 
301,662

 
 
315,638

 
308,370

 
293,840

 
293,509

 
301,662

Total assets (2)
362,797

 
348,773

 
 
362,797

 
355,417

 
340,744

 
340,740

 
348,773

Total deposits
269,738

 
246,360

 
 
269,738

 
260,030

 
241,529

 
237,697

 
246,360

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Return on average economic capital is calculated as net income, adjusted for cost of funds and earnings credit and certain expenses related to intangibles, divided by average economic capital. Economic capital represents allocated equity less goodwill and a percentage of intangible assets. Economic capital and return on average economic capital are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provide additional clarity in assessing the results of the segments. Other companies may define or calculate this measure differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)
(2) 
Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits).


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
27



Bank of America Corporation and Subsidiaries
Global Banking Key Indicators
(Dollars in millions)
 
 
Year Ended
December 31
 
 
Fourth Quarter 2012
 
Third Quarter 2012
 
Second Quarter 2012
 
First Quarter 2012
 
Fourth Quarter 2011
 
 
2012
 
2011
 
 
Investment Banking fees (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory (2)
 
$
995

 
$
1,183

 
 
$
284

 
$
207

 
$
314

 
$
190

 
$
265

Debt issuance
 
1,385

 
1,287

 
 
450

 
341

 
247

 
347

 
253

Equity issuance
 
407

 
591

 
 
108

 
114

 
71

 
114

 
111

Total Investment Banking fees (3)
 
$
2,787

 
$
3,061

 
 
$
842

 
$
662

 
$
632

 
$
651

 
$
629

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Lending
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate
 
$
3,202

 
$
3,240

 
 
$
692

 
$
780

 
$
850

 
$
880

 
$
693

Commercial
 
4,585

 
4,996

 
 
1,151

 
1,147

 
1,134

 
1,153

 
1,186

Total Business Lending revenue (3)
 
$
7,787

 
$
8,236

 
 
$
1,843

 
$
1,927

 
$
1,984

 
$
2,033

 
$
1,879

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Treasury Services
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate
 
$
2,629

 
$
2,507

 
 
$
716

 
$
649

 
$
620

 
$
644

 
$
632

Commercial
 
3,561

 
3,489

 
 
864

 
871

 
889

 
937

 
900

Total Treasury Services revenue (3)
 
$
6,190

 
$
5,996

 
 
$
1,580

 
$
1,520

 
$
1,509

 
$
1,581

 
$
1,532

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average deposit balances
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing
 
$
75,549

 
$
90,219

 
 
$
77,592

 
$
73,931

 
$
74,387

 
$
76,280

 
$
78,626

Noninterest-bearing
 
173,768

 
147,093

 
 
190,453

 
178,295

 
164,774

 
161,318

 
162,131

Total average deposits
 
$
249,317

 
$
237,312

 
 
$
268,045

 
$
252,226

 
$
239,161

 
$
237,598

 
$
240,757

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan spread
 
1.85
%
 
2.03
%
 
 
1.81
%
 
1.86
%
 
1.82
%
 
1.90
%
 
1.85
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
$
(103
)
 
$
(1,118
)
 
 
$
180

 
$
68

 
$
(113
)
 
$
(238
)
 
$
(256
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit quality (4, 5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reservable utilized criticized exposure
 
$
11,029

 
$
20,072

 
 
$
11,029

 
$
12,390

 
$
14,843

 
$
17,983

 
$
20,072

 
 
3.82
%
 
7.05
%
 
 
3.82
%
 
4.50
%
 
5.42
%
 
6.43
%
 
7.05
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonperforming loans, leases and foreclosed properties
 
$
2,110

 
$
4,646

 
 
$
2,110

 
$
2,647

 
$
3,305

 
$
4,130

 
$
4,646

 
 
0.74
%
 
1.70
%
 
 
0.74
%
 
0.99
%
 
1.27
%
 
1.54
%
 
1.70
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average loans and leases by product
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
 
$
127,886

 
$
119,840

 
 
$
131,326

 
$
125,910

 
$
125,425

 
$
128,866

 
$
124,887

Commercial real estate
 
32,841

 
37,665

 
 
33,433

 
31,947

 
32,335

 
33,651

 
34,604

Commercial lease financing
 
23,446

 
23,166

 
 
24,057

 
23,214

 
23,123

 
23,387

 
23,050

Non-U.S. commercial
 
50,416

 
42,589

 
 
53,392

 
50,032

 
49,088

 
49,125

 
50,877

Direct/Indirect consumer
 
38,030

 
42,288

 
 
36,003

 
36,283

 
37,833

 
42,040

 
43,427

Other
 
6

 
20

 
 
7

 
4

 
9

 
7

 
5

Total average loans and leases
 
$
272,625

 
$
265,568

 
 
$
278,218

 
$
267,390

 
$
267,813

 
$
277,076

 
$
276,850

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Corporation Investment Banking fees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory (2)
 
$
1,066

 
$
1,248

 
 
$
301

 
$
221

 
$
341

 
$
203

 
$
273

Debt issuance
 
3,362

 
2,878

 
 
1,078

 
865

 
645

 
774

 
587

Equity issuance
 
1,026

 
1,459

 
 
250

 
279

 
192

 
305

 
268

Total investment banking fees
 
5,454

 
5,585

 
 
1,629

 
1,365

 
1,178

 
1,282

 
1,128

Self-led
 
(155
)
 
(368
)
 
 
(29
)
 
(29
)
 
(32
)
 
(65
)
 
(115
)
Total Investment Banking fees
 
$
5,299

 
$
5,217

 
 
$
1,600

 
$
1,336

 
$
1,146

 
$
1,217

 
$
1,013

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Investment banking fees represent total investment banking fees for Global Banking inclusive of self-led deals and fees included within Business Lending.
(2) 
Advisory includes fees on debt and equity advisory and mergers and acquisitions.
(3) 
Investment banking fees represent only the fee component of Global Banking and do not include certain less significant items shared with the Investment Banking Group under internal revenue sharing agreements.
(4) 
Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure is on an end-of-period basis and is also shown as a percentage of total commercial utilized reservable criticized exposure, including loans and leases, standby letters of credit, financial guarantees, commercial letters of credit and bankers' acceptances.
(5) 
Nonperforming loans, leases and foreclosed properties are on an end-of-period basis. The nonperforming ratio is nonperforming assets divided by loans, leases and foreclosed properties.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
28



Bank of America Corporation and Subsidiaries
Investment Banking Product Rankings
 
 
 
Year Ended December 31, 2012
 
Global
 
U.S.
 
Product
Ranking
 
Market
Share
 
Product
Ranking
 
Market
Share
High-yield corporate debt
2

 
9.7
%
 
2

 
11.1
%
Leveraged loans
2

 
9.8

 
2

 
13.1

Mortgage-backed securities
4

 
8.0

 
4

 
9.4

Asset-backed securities
2

 
11.4

 
2

 
14.4

Convertible debt
4

 
8.7

 
3

 
14.9

Common stock underwriting
5

 
6.8

 
3

 
10.7

Investment-grade corporate debt
3

 
5.5

 
2

 
11.5

Syndicated loans
2

 
8.6

 
2

 
13.8

Net investment banking revenue
2

 
6.6

 
2

 
9.8

Announced mergers and acquisitions
8

 
14.4

 
5

 
15.7

Equity capital markets
5

 
7.0

 
3

 
11.1

Debt capital markets
5

 
5.1

 
4

 
8.8

Source: Dealogic data as of January 2, 2013. Figures above include self-led transactions.
Rankings based on deal volumes except for net investment banking revenue rankings which reflect fees.
Debt capital markets excludes loans but includes agencies.
Mergers and acquisitions fees included in investment banking revenues reflect 10 percent fee credit at announcement and 90 percent fee credit at completion as per Dealogic.
Mergers and acquisitions volume rankings are for announced transactions and provide credit to all investment banks advising the target or acquiror.
Highlights 
Global top 3 rankings in:
  
 
High-yield corporate debt
  
Investment-grade corporate debt
Leveraged loans
  
Syndicated loans
Asset-backed securities
  
 
 
 
U.S. top 3 rankings in:
  
 
High-yield corporate debt
  
Common stock underwriting
Leveraged loans
  
Investment-grade corporate debt
Asset-backed securities
  
Syndicated loans
Convertible debt
  
Equity capital markets

Top 3 rankings excluding self-led deals:
Global:
High-yield corporate debt, Leveraged loans, Asset-backed securities, Investment-grade corporate debt, Syndicated loans

U.S.:
High-yield corporate debt, Leveraged loans, Asset-backed securities, Convertible debt, Common stock underwriting, Investment-grade corporate debt, Syndicated loans, Equity capital markets



This information is preliminary and based on company data available at the time of the presentation.
29



Bank of America Corporation and Subsidiaries
Global Markets Segment Results
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth Quarter 2012
 
Third Quarter 2012
 
Second Quarter 2012
 
First Quarter 2012
 
Fourth Quarter 2011
 
2012
 
2011
 
 
Net interest income (FTE basis)
$
3,310

 
$
3,682

 
 
$
1,016

 
$
846

 
$
650

 
$
798

 
$
864

Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment and brokerage services
1,820

 
2,249

 
 
430

 
428

 
448

 
514

 
450

Investment banking fees
2,214

 
2,214

 
 
668

 
552

 
438

 
556

 
425

Trading account profits
5,706

 
6,417

 
 
726

 
1,237

 
1,706

 
2,037

 
369

All other income (loss)
469

 
236

 
 
4

 
46

 
127

 
292

 
(301
)
Total noninterest income
10,209

 
11,116

 
 
1,828

 
2,263

 
2,719

 
3,399

 
943

Total revenue, net of interest expense (FTE basis) (1)
13,519

 
14,798

 
 
2,844

 
3,109

 
3,369

 
4,197

 
1,807

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
3

 
(56
)
 
 
16

 
21

 
(14
)
 
(20
)
 
(18
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
10,839

 
12,244

 
 
2,498

 
2,548

 
2,715

 
3,078

 
2,895

Income (loss) before income taxes
2,677

 
2,610

 
 
330

 
540

 
668

 
1,139

 
(1,070
)
Income tax expense (benefit) (FTE basis)
1,623

 
1,622

 
 
178

 
899

 
206

 
340

 
(302
)
Net income (loss)
$
1,054

 
$
988

 
 
$
152

 
$
(359
)
 
$
462

 
$
799

 
$
(768
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average allocated equity
5.99
%
 
4.36
%
 
 
3.39
%
 
n/m

 
10.84
%
 
17.55
%
 
n/m

Return on average economic capital (2)
8.20

 
5.54

 
 
4.63

 
n/m

 
14.91

 
23.58

 
n/m

Efficiency ratio (FTE basis)
80.18

 
82.75

 
 
87.82

 
81.95
%
 
80.62

 
73.34

 
n/m

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total trading-related assets (3)
$
466,045

 
$
472,446

 
 
$
493,188

 
$
462,138

 
$
459,869

 
$
448,731

 
$
444,319

Total earning assets (3)
449,660

 
445,574

 
 
482,366

 
446,948

 
444,584

 
424,414

 
414,186

Total assets
588,459

 
590,474

 
 
628,449

 
584,345

 
581,999

 
558,650

 
552,911

Allocated equity
17,595

 
22,671

 
 
17,859

 
17,070

 
17,136

 
18,317

 
19,806

Economic capital (2)
12,956

 
18,046

 
 
13,210

 
12,419

 
12,527

 
13,669

 
15,154

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total trading-related assets (3)
$
465,836

 
$
397,876

 
 
$
465,836

 
$
455,161

 
$
443,948

 
$
440,091

 
$
397,876

Total earning assets (3)
474,335

 
372,894

 
 
474,335

 
445,230

 
428,972

 
417,633

 
372,894

Total assets 
615,297

 
501,867

 
 
615,297

 
583,223

 
561,847

 
548,611

 
501,867

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading-related assets (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading account securities
$
197,618

 
$
197,735

 
 
$
220,434

 
$
193,694

 
$
190,250

 
$
185,890

 
$
172,955

Reverse repurchases
162,348

 
165,447

 
 
166,399

 
162,040

 
160,832

 
160,079

 
162,507

Securities borrowed
51,188

 
48,050

 
 
52,391

 
51,757

 
53,297

 
47,286

 
46,476

Derivative assets
54,891

 
61,214

 
 
53,964

 
54,647

 
55,490

 
55,476

 
62,381

Total trading-related assets (3)
$
466,045

 
$
472,446

 
 
$
493,188

 
$
462,138

 
$
459,869

 
$
448,731

 
$
444,319

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Substantially all of Global Markets total revenue is sales and trading revenue and investment banking fees, with a small portion related to certain revenue sharing agreements with other business segments. For additional sales and trading revenue information, see page 31.
(2) 
Return on average economic capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average economic capital. Economic capital represents allocated equity less goodwill and a percentage of intangible assets. Economic capital and return on average economic capital are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)
(3) 
Trading related assets include assets which are not considered earning assets (i.e., derivative assets).

n/m = not meaningful


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
30



Bank of America Corporation and Subsidiaries
Global Markets Key Indicators
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth Quarter 2012
 
Third Quarter 2012
 
Second Quarter 2012
 
First Quarter 2012
 
Fourth Quarter 2011
 
2012
 
2011
 
 
Sales and trading revenue (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income, currency and commodities
$
8,812

 
$
8,897

 
 
$
1,551

 
$
2,000

 
$
2,418

 
$
2,843

 
$
808

Equities
3,014

 
3,957

 
 
674

 
667

 
761

 
912

 
673

Total sales and trading revenue
$
11,826

 
$
12,854

 
 
$
2,225

 
$
2,667

 
$
3,179

 
$
3,755

 
$
1,481

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales and trading revenue, excluding net DVA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income, currency and commodities
$
11,007

 
$
8,103

 
 
$
1,788

 
$
2,534

 
$
2,555

 
$
4,130

 
$
1,303

Equities
3,267

 
3,750

 
 
713

 
715

 
780

 
1,059

 
652

Total sales and trading revenue, excluding net DVA
$
14,274

 
$
11,853

 
 
$
2,501

 
$
3,249

 
$
3,335

 
$
5,189

 
$
1,955

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales and trading revenue breakdown
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
3,310

 
$
3,682

 
 
$
1,016

 
$
846

 
$
650

 
$
798

 
$
864

Commissions
1,820

 
2,249

 
 
430

 
428

 
448

 
514

 
450

Trading
5,706

 
6,417

 
 
726

 
1,237

 
1,706

 
2,037

 
369

Other
990

 
506

 
 
53

 
156

 
375

 
406

 
(202
)
Total sales and trading revenue
$
11,826

 
$
12,854

 
 
$
2,225

 
$
2,667

 
$
3,179

 
$
3,755

 
$
1,481

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Includes Global Banking sales and trading revenue of $521 million and $270 million for the years ended December 31, 2012 and 2011; $49 million, $110 million, $248 million and $114 million for the fourth, third, second and first quarters of 2012, respectively, and $99 million for the fourth quarter of 2011.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
31



Bank of America Corporation and Subsidiaries
 
 
 
 
Global Wealth & Investment Management Segment Results
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth Quarter 2012
 
Third Quarter 2012
 
Second Quarter 2012
 
First Quarter 2012
 
Fourth Quarter 2011
 
 
2012
 
2011
 
 
Net interest income (FTE basis)
 
$
5,827

 
$
5,885

 
 
$
1,490

 
$
1,413

 
$
1,393

 
$
1,531

 
$
1,448

Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment and brokerage services
 
8,849

 
8,750

 
 
2,272

 
2,181

 
2,221

 
2,175

 
2,069

All other income
 
1,841

 
1,860

 
 
432

 
489

 
480

 
440

 
426

Total noninterest income
 
10,690

 
10,610

 
 
2,704

 
2,670

 
2,701

 
2,615

 
2,495

Total revenue, net of interest expense (FTE basis)
 
16,517

 
16,495

 
 
4,194

 
4,083

 
4,094

 
4,146

 
3,943

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
266

 
398

 
 
112

 
61

 
47

 
46

 
118

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
12,755

 
13,383

 
 
3,195

 
3,128

 
3,188

 
3,244

 
3,392

Income before income taxes
 
3,496

 
2,714

 
 
887

 
894

 
859

 
856

 
433

Income tax expense (FTE basis)
 
1,273

 
996

 
 
309

 
332

 
318

 
314

 
161

Net income
 
$
2,223

 
$
1,718

 
 
$
578

 
$
562

 
$
541

 
$
542

 
$
272

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
2.34
%
 
2.26
%
 
 
2.30
%
 
2.28
%
 
2.31
%
 
2.46
%
 
2.25
%
Return on average allocated equity
 
12.53

 
9.90

 
 
12.43

 
12.27

 
12.48

 
12.99

 
6.22

Return on average economic capital (1)
 
30.52

 
25.46

 
 
28.46

 
28.81

 
31.35

 
34.37

 
16.02

Efficiency ratio (FTE basis)
 
77.22

 
81.13

 
 
76.15

 
76.62

 
77.89

 
78.23

 
86.02

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance sheet
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
100,456

 
$
96,974

 
 
$
103,785

 
$
101,016

 
$
98,964

 
$
98,016

 
$
97,722

Total earning assets (2)
 
249,368

 
260,479

 
 
257,350

 
246,637

 
242,806

 
250,623

 
254,980

Total assets (2)
 
268,490

 
279,815

 
 
276,431

 
265,672

 
262,158

 
269,642

 
273,874

Total deposits
 
242,384

 
241,535

 
 
249,658

 
241,411

 
238,540

 
239,859

 
237,098

Allocated equity
 
17,739

 
17,352

 
 
18,508

 
18,229

 
17,421

 
16,784

 
17,366

Economic capital (1)
 
7,359

 
6,866

 
 
8,149

 
7,840

 
7,011

 
6,420

 
6,914

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
105,928

 
$
98,654

 
 
$
105,928

 
$
102,390

 
$
100,261

 
$
97,953

 
$
98,654

Total earning assets (2)
 
277,107

 
253,407

 
 
277,107

 
248,771

 
243,515

 
244,137

 
253,407

Total assets (2)
 
297,330

 
273,106

 
 
297,330

 
268,441

 
263,039

 
263,535

 
273,106

Total deposits
 
266,188

 
240,540

 
 
266,188

 
243,518

 
237,339

 
239,915

 
240,540

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Return on average economic capital is calculated as net income adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average economic capital. Economic capital represents allocated equity less goodwill and a percentage of intangible assets. Economic capital and return on average economic capital are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)
(2) 
Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits).


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
32



Bank of America Corporation and Subsidiaries
Global Wealth & Investment Management Key Indicators
(Dollars in millions, except as noted)
 
 
Year Ended
December 31
 
 
Fourth Quarter 2012
 
Third Quarter 2012
 
Second Quarter 2012
 
First Quarter 2012
 
Fourth Quarter 2011
 
 
2012
 
2011
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merrill Lynch Global Wealth Management
 
$
13,849

 
$
13,718

 
 
$
3,530

 
$
3,436

 
$
3,415

 
$
3,468

 
$
3,239

U.S. Trust
 
2,594

 
2,693

 
 
660

 
627

 
654

 
653

 
679

Other (1)
 
74

 
84

 
 
4

 
20

 
25

 
25

 
25

Total revenues
 
$
16,517

 
$
16,495

 
 
$
4,194

 
$
4,083

 
$
4,094

 
$
4,146

 
$
3,943

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Client Balances
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Client Balances by Business
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merrill Lynch Global Wealth Management
 
$
1,758,496

 
$
1,640,283

 
 
$
1,758,496

 
$
1,746,191

 
$
1,689,257

 
$
1,723,402

 
$
1,640,283

U.S. Trust
 
341,292

 
324,003

 
 
341,292

 
332,792

 
323,711

 
333,876

 
324,003

Other (1)
 
66,874

 
66,182

 
 
66,874

 
64,239

 
66,091

 
66,309

 
66,182

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Client Balances by Type
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets under management
 
$
698,095

 
$
635,570

 
 
$
698,095

 
$
692,854

 
$
667,452

 
$
677,602

 
$
635,570

Client brokerage assets
 
975,388

 
944,532

 
 
975,388

 
985,699

 
959,210

 
989,860

 
944,532

Assets in custody
 
117,686

 
107,982

 
 
117,686

 
115,350

 
111,351

 
114,931

 
107,982

Client deposits
 
266,188

 
240,540

 
 
266,188

 
243,518

 
237,339

 
239,915

 
240,540

Loans and leases (2)
 
109,305

 
101,844

 
 
109,305

 
105,801

 
103,707

 
101,279

 
101,844

Total client balances
 
$
2,166,662

 
$
2,030,468

 
 
$
2,166,662

 
$
2,143,222

 
$
2,079,059

 
$
2,123,587

 
$
2,030,468

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Under Management Flows
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquidity assets under management (3)
 
$
618

 
$
(11,969
)
 
 
$
2,545

 
$
(1,875
)
 
$
(122
)
 
$
70

 
$
1,029

Long-term assets under management (4)
 
26,390

 
28,388

 
 
9,120

 
5,779

 
3,796

 
7,695

 
4,813

Total assets under management flows
 
$
27,008

 
$
16,419

 
 
$
11,665

 
$
3,904

 
$
3,674

 
$
7,765

 
$
5,842

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Associates (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Financial Advisors
 
16,413

 
16,457

 
 
16,413

 
16,784

 
16,760

 
16,708

 
16,457

Total Wealth Advisors
 
17,642

 
17,796

 
 
17,642

 
18,063

 
18,053

 
18,018

 
17,796

Total Client Facing Professionals
 
20,408

 
20,841

 
 
20,408

 
20,832

 
20,862

 
21,024

 
20,841

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merrill Lynch Global Wealth Management Metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Advisory Productivity (6) (in thousands)
 
$
909

 
$
938

 
 
$
935

 
$
903

 
$
903

 
$
897

 
$
872

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Trust Metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Client Facing Professionals
 
2,077

 
2,247

 
 
2,077

 
2,120

 
2,161

 
2,223

 
2,247

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Other includes the results of BofA Global Capital Management and other administrative items.
(2) 
Includes margin receivables which are classified in customer and other receivables on the Corporation's Consolidated Balance Sheet.
(3) 
Defined as assets under advisory and discretion of GWIM in which the investment strategy seeks a high level of income while maintaining liquidity and capital preservation. The duration of these strategies is less than one year.
(4) 
Defined as assets under advisory and discretion of GWIM in which the duration of the investment strategy is longer than one year.
(5) 
Includes Financial Advisors in Consumer & Business Banking of 1,496 and 1,143 at December 31, 2012 and 2011, and 1,496, 1,457, 1,383, 1,337 and 1,143 at December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012 and December 31, 2011, respectively.
(6) 
Financial Advisor Productivity is defined as annualized Merrill Lynch Global Wealth Management total revenue divided by the total number of financial advisors (excluding Financial Advisors in Consumer & Business Banking). Total revenue excludes corporate allocation of net interest income related to certain ALM activities.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
33



Bank of America Corporation and Subsidiaries
All Other Results (1)
(Dollars in millions)
 
 
Year Ended
December 31
 
 
Fourth Quarter 2012
 
Third Quarter 2012
 
Second Quarter 2012
 
First Quarter 2012
 
Fourth Quarter 2011
 
 
2012
 
2011
 
 
Net interest income (FTE basis)
 
$
1,111

 
$
1,946

 
 
$
241

 
$
264

 
$
136

 
$
470

 
$
449

Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Card income
 
360

 
465

 
 
96

 
93

 
84

 
87

 
91

Equity investment income (loss)
 
1,135

 
7,105

 
 
570

 
172

 
(36
)
 
429

 
3,136

Gains on sales of debt securities
 
1,510

 
3,097

 
 
116

 
328

 
354

 
712

 
1,101

All other income (loss)
 
(4,906
)
 
3,482

 
 
(1,168
)
 
(1,704
)
 
68

 
(2,102
)
 
(264
)
Total noninterest income (loss)
 
(1,901
)
 
14,149

 
 
(386
)
 
(1,111
)
 
470

 
(874
)
 
4,064

Total revenue, net of interest expense (FTE basis)
 
(790
)
 
16,095

 
 
(145
)
 
(847
)
 
606

 
(404
)
 
4,513

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
2,620

 
6,172

 
 
448

 
390

 
536

 
1,246

 
792

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill impairment
 

 
581

 
 

 

 

 

 
581

Merger and restructuring charges
 

 
638

 
 

 

 

 

 
101

All other noninterest expense
 
6,092

 
5,034

 
 
971

 
1,563

 
1,068

 
2,490

 
1,419

Income (loss) before income taxes
 
(9,502
)
 
3,670

 
 
(1,564
)
 
(2,800
)
 
(998
)
 
(4,140
)
 
1,620

Income tax expense (benefit) (FTE basis)
 
(5,874
)
 
(1,042
)
 
 
(2,428
)
 
(1,232
)
 
(662
)
 
(1,552
)
 
270

Net income (loss)
 
$
(3,628
)
 
$
4,712

 
 
$
864

 
$
(1,568
)
 
$
(336
)
 
$
(2,588
)
 
$
1,350

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
258,012

 
$
289,010

 
 
$
245,820

 
$
254,894

 
$
262,431

 
$
269,074

 
$
277,744

Total assets (2)
 
302,287

 
380,253

 
 
265,431

 
291,865

 
324,731

 
327,636

 
346,425

Total deposits
 
43,083

 
62,582

 
 
36,939

 
39,262

 
43,718

 
52,524

 
58,946

Allocated equity (3)
 
87,103

 
72,578

 
 
89,697

 
87,203

 
87,475

 
84,008

 
77,215

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
240,667

 
$
272,385

 
 
$
240,667

 
$
251,345

 
$
258,605

 
$
264,895

 
$
272,385

Total assets (4)
 
247,284

 
320,491

 
 
247,284

 
279,455

 
309,939

 
326,501

 
320,491

Total deposits
 
36,061

 
45,532

 
 
36,061

 
37,554

 
39,358

 
42,870

 
45,532

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
All Other consists of ALM activities, equity investments, liquidating businesses and other. ALM activities encompass the whole-loan residential mortgage portfolio and investment securities, interest rate and foreign currency risk management activities including the residual net interest income allocation, gains/losses on structured liabilities, and the impact of certain allocation methodologies and accounting hedge ineffectiveness. Equity Investments includes Global Principal Investments, strategic and certain other investments. Other includes certain residential mortgage and discontinued real estate loans that are managed by Legacy Assets & Servicing within Consumer Real Estate Services.
(2) 
Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) of $520.5 billion and $496.1 billion for the years ended December 31, 2012 and December 31, 2011; $542.4 billion, $529.4 billion, $507.7 billion, $502.3 billion and $491.3 billion for the fourth, third, second, and first quarters of 2012 and the fourth quarter of 2011, respectively.
(3) 
Represents the economic capital assigned to All Other as well as the remaining portion of equity not specifically allocated to the business segments.
(4) 
Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) of $554.4 billion, $529.2 billion, $517.3 billion, $510.2 billion and $492.3 billion at December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012 and December 31, 2011, respectively.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
34



Bank of America Corporation and Subsidiaries
Equity Investments
(Dollars in millions)
 
 
Global Principal Investments Exposures
 
Equity Investment Income
 
 
December 31, 2012
 
September 30
2012
 
December 31, 2012
 
 
Book
Value
 
Unfunded
Commitments
 
Total
 
Total
 
Three Months Ended
 
Year Ended
Global Principal Investments
 
 
 
 
 
 
 
 
 
 
 
 
Private Equity Investments
 
$
1,041

 
$
57

 
$
1,098

 
$
1,190

 
$
33

 
$
199

Global Real Estate
 
475

 
31

 
506

 
526

 
10

 
20

Global Strategic Capital
 
1,257

 
128

 
1,385

 
1,451

 
50

 
240

Legacy/Other Investments
 
697

 
8

 
705

 
744

 
74

 
130

Total Global Principal Investments
 
$
3,470

 
$
224

 
$
3,694

 
$
3,911

 
$
167

 
$
589

 
 
 
 
 
 
 
 
 
 
 
 
 


Components of Equity Investment Income
(Dollars in millions)
 
 
Year Ended
December 31
 
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
First
Quarter
2012
 
Fourth
Quarter
2011
 
 
2012
 
2011
 
 
Global Principal Investments
 
$
589

 
$
399

 
 
$
167

 
$
156

 
$
(137
)
 
$
403

 
$
212

Strategic and other investments
 
546

 
6,706

 
 
403

 
16

 
101

 
26

 
2,924

Total equity investment income (loss) included in All Other
 
1,135

 
7,105

 
 
570

 
172

 
(36
)
 
429

 
3,136

Total equity investment income included in the business segments
 
935

 
255

 
 
129

 
66

 
404

 
336

 
91

Total consolidated equity investment income
 
$
2,070

 
$
7,360

 
 
$
699

 
$
238

 
$
368

 
$
765

 
$
3,227

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
35



Bank of America Corporation and Subsidiaries
 
 
 
 
 
Outstanding Loans and Leases
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
December 31
2012
 
September 30
2012
 
December 31
2011
Consumer
 
 
 
 
 
Residential mortgage (1)
$
243,181

 
$
247,340

 
$
262,290

Home equity
107,996

 
112,260

 
124,699

Discontinued real estate (2) 
9,892

 
9,876

 
11,095

U.S. credit card
94,835

 
93,162

 
102,291

Non-U.S. credit card
11,697

 
13,320

 
14,418

Direct/Indirect consumer (3) 
83,205

 
82,404

 
89,713

Other consumer (4) 
1,628

 
2,714

 
2,688

Total consumer loans excluding loans accounted for under the fair value option
552,434

 
561,076

 
607,194

Consumer loans accounted for under the fair value option (5) 
1,005

 
1,202

 
2,190

Total consumer
553,439

 
562,278

 
609,384

 
 
 
 
 
 
Commercial
 
 
 
 
 
U.S. commercial (6)
209,719

 
205,384

 
193,199

Commercial real estate (7) 
38,637

 
37,579

 
39,596

Commercial lease financing
23,843

 
22,855

 
21,989

Non-U.S. commercial
74,184

 
58,503

 
55,418

Total commercial loans excluding loans accounted for under the option
346,383

 
324,321

 
310,202

Commercial loans accounted for under the fair value option (5) 
7,997

 
6,436

 
6,614

Total commercial
354,380

 
330,757

 
316,816

Total loans and leases
$
907,819

 
$
893,035

 
$
926,200

 
 
 
 
 
 
(1) 
Includes non-U.S. residential mortgage loans of $93 million, $94 million and $85 million at December 31, 2012, September 30, 2012 and December 31, 2011, respectively.
(2) 
Includes $8.8 billion, $8.8 billion and $9.9 billion of pay option loans, and $1.1 billion, $1.1 billion and $1.2 billion of subprime loans at December 31, 2012, September 30, 2012 and December 31, 2011, respectively. The Corporation no longer originates these products.
(3) 
Includes dealer financial services loans of $35.9 billion, $36.0 billion and $43.0 billion, consumer lending loans of $4.7 billion, $5.6 billion and $8.0 billion, U.S. securities-based lending margin loans of $28.3 billion, $26.7 billion and $23.6 billion, student loans of $4.8 billion, $5.0 billion and $6.0 billion, non-U.S. consumer loans of $8.3 billion, $7.9 billion and $7.6 billion, and other consumer loans of $1.2 billion, $1.2 billion and $1.5 billion at December 31, 2012, September 30, 2012 and December 31, 2011, respectively.
(4) 
Includes consumer finance loans of $1.4 billion, $1.5 billion and $1.7 billion, other non-U.S. consumer loans of $5 million, $1.1 billion and $929 million, and consumer overdrafts of $177 million, $152 million and $103 million at December 31, 2012, September 30, 2012 and December 31, 2011, respectively.
(5) 
Consumer loans accounted for under the fair value option were residential mortgage loans of $147 million, $160 million and $906 million and discontinued real estate loans of $858 million, $1.0 billion and $1.3 billion at December 31, 2012, September 30, 2012 and December 31, 2011, respectively. Commercial loans accounted for under the fair value option were U.S. commercial loans of $2.3 billion, $2.0 billion and $2.2 billion, and non-U.S. commercial loans of $5.7 billion, $4.4 billion and $4.4 billion at December 31, 2012, September 30, 2012 and December 31, 2011, respectively.
(6) 
Includes U.S. small business commercial loans, including card-related products, of $12.6 billion, $12.6 billion and $13.3 billion at December 31, 2012, September 30, 2012 and December 31, 2011, respectively.
(7) 
Includes U.S. commercial real estate loans of $37.2 billion, $36.0 billion and $37.8 billion, and non-U.S. commercial real estate loans of $1.5 billion, $1.6 billion and $1.8 billion at December 31, 2012, September 30, 2012 and December 31, 2011, respectively.


Certain prior period amounts have been reclassified to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
36



Bank of America Corporation and Subsidiaries
Quarterly Average Loans and Leases by Business Segment
(Dollars in millions)
 
Fourth Quarter 2012
 
Total
Corporation
 
 
Consumer & Business Banking
 
Consumer
Real Estate
Services
 
Global
Banking
 
Global
Markets
 
GWIM
 
All 
Other
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
245,879

 
 
$

 
$
191

 
$

 
$
93

 
$
40,204

 
$
205,391

Home equity
110,105

 
 

 
96,651

 

 
84

 
13,164

 
206

Discontinued real estate
10,850

 
 

 
922

 

 

 

 
9,928

U.S. credit card
92,849

 
 
92,849

 

 

 

 

 

Non-U.S. credit card
13,081

 
 

 

 

 

 

 
13,081

Direct/Indirect consumer
82,583

 
 
5,097

 
75

 
36,003

 
23

 
31,225

 
10,160

Other consumer
1,602

 
 
721

 

 
7

 

 
7

 
867

Total consumer
556,949

 
 
98,667

 
97,839

 
36,010

 
200

 
84,600

 
239,633

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
209,496

 
 
31,398

 
72

 
131,326

 
21,913

 
17,691

 
7,096

Commercial real estate
38,192

 
 
2,338

 
1

 
33,433

 
303

 
1,427

 
690

Commercial lease financing
22,839

 
 

 

 
24,057

 
458

 
4

 
(1,680
)
Non-U.S. commercial
65,690

 
 
18

 

 
53,392

 
12,136

 
63

 
81

Total commercial
336,217

 
 
33,754

 
73

 
242,208

 
34,810

 
19,185

 
6,187

Total loans and leases
$
893,166

 
 
$
132,421

 
$
97,912

 
$
278,218

 
$
35,010

 
$
103,785

 
$
245,820

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2012
 
Total
Corporation
 
 
Consumer & Business Banking
 
Consumer
Real Estate
Services
 
Global
Banking
 
Global
Markets
 
GWIM
 
All 
Other
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
250,505

 
 
$

 
$
213

 
$

 
$
92

 
$
38,788

 
$
211,412

Home equity
116,184

 
 

 
102,324

 

 
104

 
13,540

 
216

Discontinued real estate
10,956

 
 

 
1,008

 

 

 

 
9,948

U.S. credit card
93,292

 
 
93,292

 

 

 

 

 

Non-U.S. credit card
13,329

 
 

 

 

 

 

 
13,329

Direct/Indirect consumer
82,635

 
 
6,022

 
78

 
36,283

 
35

 
29,935

 
10,282

Other consumer
2,654

 
 
690

 

 
4

 

 
8

 
1,952

Total consumer
569,555

 
 
100,004

 
103,623

 
36,287

 
231

 
82,271

 
247,139

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
201,072

 
 
31,568

 
84

 
125,910

 
18,732

 
17,268

 
7,510

Commercial real estate
36,929

 
 
2,294

 
1

 
31,947

 
225

 
1,445

 
1,017

Commercial lease financing
21,545

 
 

 

 
23,214

 
13

 
4

 
(1,686
)
Non-U.S. commercial
59,758

 
 
15

 

 
50,032

 
8,769

 
28

 
914

Total commercial
319,304

 
 
33,877

 
85

 
231,103

 
27,739

 
18,745

 
7,755

Total loans and leases
$
888,859

 
 
$
133,881

 
$
103,708

 
$
267,390

 
$
27,970

 
$
101,016

 
$
254,894

 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
Fourth Quarter 2011
 
Total
Corporation
 
 
Consumer & Business Banking
 
Consumer
Real Estate
Services
 
Global
Banking
 
Global
Markets
 
GWIM
 
All 
Other
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
266,144

 
 
$

 
$
1,106

 
$

 
$
95

 
$
37,023

 
$
227,920

Home equity
126,251

 
 

 
111,138

 

 

 
14,805

 
308

Discontinued real estate
14,073

 
 

 
2,848

 

 

 
8

 
11,217

U.S. credit card
102,241

 
 
102,241

 

 

 

 

 

Non-U.S. credit card
15,981

 
 

 

 

 

 

 
15,981

Direct/Indirect consumer
90,861

 
 
8,546

 
93

 
43,427

 
776

 
26,999

 
11,020

Other consumer
2,751

 
 
654

 

 
5

 

 
5

 
2,087

Total consumer
618,302

 
 
111,441

 
115,185

 
43,432

 
871

 
78,840

 
268,533

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
196,778

 
 
33,217

 
1,806

 
124,887

 
11,428

 
17,111

 
8,329

Commercial real estate
40,673

 
 
2,478

 
2

 
34,604

 
428

 
1,589

 
1,572

Commercial lease financing
21,278

 
 

 

 
23,050

 

 
4

 
(1,776
)
Non-U.S. commercial
55,867

 
 
14

 

 
50,877

 
3,712

 
178

 
1,086

Total commercial
314,596

 
 
35,709

 
1,808

 
233,418

 
15,568

 
18,882

 
9,211

Total loans and leases
$
932,898

 
 
$
147,150

 
$
116,993

 
$
276,850

 
$
16,439

 
$
97,722

 
$
277,744

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
37



Bank of America Corporation and Subsidiaries
Commercial Credit Exposure by Industry (1, 2, 3)
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
Commercial Utilized
 
Total Commercial Committed
 
December 31
2012
 
September 30
2012
 
December 31
2011
 
December 31
2012
 
September 30
2012
 
December 31
2011
Diversified financials
$
66,201

 
$
62,783

 
$
64,957

 
$
99,673

 
$
96,651

 
$
94,969

Real estate (4)
47,479

 
45,495

 
48,138

 
65,639

 
61,447

 
62,566

Government and public education
41,449

 
40,493

 
43,090

 
50,285

 
49,855

 
57,021

Capital goods
25,071

 
23,764

 
24,025

 
49,196

 
48,285

 
48,013

Retailing
28,065

 
27,373

 
25,478

 
47,719

 
46,414

 
46,290

Healthcare equipment and services
29,396

 
28,508

 
31,298

 
45,488

 
44,003

 
48,141

Banks
40,245

 
35,740

 
35,231

 
45,238

 
39,637

 
38,735

Materials
21,809

 
23,402

 
19,384

 
40,493

 
41,661

 
38,070

Energy
17,684

 
16,145

 
15,151

 
38,464

 
35,149

 
32,074

Food, beverage and tobacco
14,738

 
14,287

 
15,904

 
37,344

 
32,183

 
30,501

Consumer services
23,093

 
21,855

 
24,445

 
36,367

 
34,893

 
38,498

Commercial services and supplies
19,020

 
18,089

 
20,089

 
30,257

 
28,878

 
30,831

Utilities
8,410

 
8,186

 
8,102

 
23,432

 
22,844

 
24,552

Media
13,091

 
11,406

 
11,447

 
21,705

 
20,676

 
21,158

Transportation
13,791

 
12,878

 
12,683

 
20,255

 
19,971

 
19,036

Individuals and trusts
13,916

 
13,946

 
14,993

 
17,801

 
17,195

 
19,001

Insurance, including monolines
8,519

 
8,384

 
10,090

 
14,145

 
14,024

 
16,157

Software and services
5,549

 
4,550

 
4,304

 
12,125

 
10,410

 
9,579

Pharmaceuticals and biotechnology
3,854

 
5,691

 
4,141

 
11,409

 
14,340

 
11,328

Technology hardware and equipment
5,118

 
4,725

 
5,247

 
11,108

 
10,838

 
12,173

Telecommunication services
4,029

 
4,024

 
4,297

 
10,297

 
10,018

 
10,424

Religious and social organizations
6,850

 
7,184

 
8,536

 
9,107

 
9,711

 
11,160

Consumer durables and apparel
4,246

 
4,140

 
4,505

 
8,438

 
8,312

 
8,965

Automobiles and components
3,312

 
2,937

 
2,813

 
7,675

 
7,360

 
7,178

Food and staples retailing
3,528

 
3,065

 
3,273

 
6,838

 
6,444

 
6,476

Other
3,264

 
4,391

 
4,888

 
6,507

 
7,232

 
7,636

Total commercial credit exposure by industry
$
471,727

 
$
453,441

 
$
466,509

 
$
767,005

 
$
738,431

 
$
750,532

Net credit default protection purchased on total commitments (5)
 
 
 
 
 
 
$
(14,657
)
 
$
(17,164
)
 
$
(19,356
)
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held-for-sale, commercial letters of credit, bankers’ acceptances, securitized assets, foreclosed properties and other collateral acquired. Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by the amount of cash collateral applied of $58.1 billion, $60.0 billion and $58.9 billion at December 31, 2012, September 30, 2012 and December 31, 2011, respectively. Not reflected in utilized and committed exposure is additional derivative collateral held of $18.7 billion, $17.6 billion and $16.1 billion which consists primarily of other marketable securities at December 31, 2012, September 30, 2012 and December 31, 2011, respectively.
(2) 
Total commercial utilized and total commercial committed exposure includes loans and letters of credit measured at fair value and are comprised of loans outstanding of $8.0 billion, $6.4 billion and $6.6 billion and issued letters of credit at notional value of $672 million, $697 million and $1.3 billion at December 31, 2012, September 30, 2012 and December 31, 2011, respectively. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $17.6 billion, $19.8 billion and $24.4 billion at December 31, 2012, September 30, 2012 and December 31, 2011, respectively.
(3) 
Includes U.S. small business commercial exposure.
(4) 
Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based on the borrowers’ or counterparties’ primary business activity using operating cash flows and primary source of repayment as key factors.
(5) 
Represents net notional credit protection purchased.


Certain prior period amounts have been reclassified to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.
38



Bank of America Corporation and Subsidiaries
Net Credit Default Protection by Maturity Profile (1)
 
 
December 31
2012
 
September 30
2012
Less than or equal to one year
 
21
%
 
15
%
Greater than one year and less than or equal to five years
 
75

 
79

Greater than five years
 
4

 
6

Total net credit default protection
 
100
%
 
100
%
(1) 
To mitigate the cost of purchasing credit protection, credit exposure can be added by selling credit protection. The distribution of maturities for net credit default protection purchased is shown above.


Net Credit Default Protection by Credit Exposure Debt Rating (1)
(Dollars in millions)
 
 
December 31, 2012
 
September 30, 2012
Ratings (2, 3)
 
Net Notional (4)
 
Percent of Total
 
Net Notional (4)
 
Percent of Total
AAA
 
$
(120
)
 
0.8
 %
 
$
(184
)
 
1.1
 %
AA
 
(474
)
 
3.2

 
(837
)
 
4.9

A
 
(5,861
)
 
40.0

 
(7,329
)
 
42.7

BBB
 
(6,067
)
 
41.4

 
(6,407
)
 
37.3

BB
 
(1,101
)
 
7.5

 
(1,128
)
 
6.6

B
 
(937
)
 
6.4

 
(946
)
 
5.5

CCC and below
 
(247
)
 
1.7

 
(486
)
 
2.8

NR (5)
 
150

 
(1.0
)
 
153

 
(0.9
)
Total net credit default protection
 
$
(14,657
)
 
100.0
 %
 
$
(17,164
)
 
100.0
 %
(1) 
To mitigate the cost of purchasing credit protection, credit exposure can be added by selling credit protection. The distribution of debt rating for net notional credit default protection purchased is shown as a negative and the net notional credit protection sold is shown as a positive amount.
(2) 
Ratings are refreshed on a quarterly basis.
(3) 
Ratings of BBB- or higher are considered to meet the definition of investment-grade.
(4) 
Represents net credit default protection (purchased) sold.
(5) 
"NR" is comprised of names that have not been rated.


Certain prior period amounts have been reclassified to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
39



Bank of America Corporation and Subsidiaries
Top 20 Non-U.S. Countries Exposure (1)
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Loans and Loan Equivalents (2)
 
Unfunded Loan Commitments
 
Net Counterparty Exposure (3)
 
Securities/
Other
Investments (4)
 
Country Exposure at December 31
2012
 
Hedges and Credit Default Protection (5)
 
Net Country Exposure at December 31 2012 (6)
 
Increase (Decrease) from September 30
2012
United Kingdom
$
28,820

 
$
10,593

 
$
4,823

 
$
6,082

 
$
50,318

 
$
(3,126
)
 
$
47,192

 
$
(9,993
)
Japan
16,939

 
488

 
2,156

 
6,150

 
25,733

 
(1,894
)
 
23,839

 
1,440

Canada
6,197

 
7,298

 
1,772

 
5,074

 
20,341

 
(1,365
)
 
18,976

 
1,693

France
6,723

 
6,295

 
1,332

 
4,616

 
18,966

 
(2,675
)
 
16,291

 
858

India
8,696

 
604

 
342

 
4,330

 
13,972

 
(254
)
 
13,718

 
2,422

Brazil
8,251

 
494

 
517

 
3,617

 
12,879

 
(376
)
 
12,503

 
3,424

Germany
4,407

 
5,392

 
3,008

 
3,334

 
16,141

 
(5,121
)
 
11,020

 
(11,992
)
Netherlands
6,177

 
2,257

 
614

 
2,850

 
11,898

 
(1,216
)
 
10,682

 
4,031

Singapore
3,003

 
5,112

 
434

 
1,725

 
10,274

 
(100
)
 
10,174

 
5,052

Australia
4,816

 
2,905

 
646

 
2,109

 
10,476

 
(747
)
 
9,729

 
(1,410
)
China
6,864

 
329

 
707

 
2,382

 
10,282

 
(1,095
)
 
9,187

 
1,421

South Korea
4,766

 
691

 
319

 
2,618

 
8,394

 
(1,245
)
 
7,149

 
873

Switzerland
2,476

 
3,199

 
509

 
605

 
6,789

 
(969
)
 
5,820

 
(1,387
)
Hong Kong
3,770

 
550

 
147

 
1,084

 
5,551

 
(108
)
 
5,443

 
(262
)
Russian Federation
3,187

 
1,398

 
87

 
678

 
5,350

 
(438
)
 
4,912

 
2,599

Italy
2,858

 
2,825

 
2,295

 
521

 
8,499

 
(3,661
)
 
4,838

 
(1,956
)
Mexico
2,335

 
596

 
181

 
1,080

 
4,192

 
(533
)
 
3,659

 
(337
)
Taiwan
2,012

 
64

 
159

 
999

 
3,234

 
(12
)
 
3,222

 
66

United Arab Emirates
2,134

 
412

 
186

 
116

 
2,848

 
(96
)
 
2,752

 
73

Spain
1,899

 
1,018

 
192

 
604

 
3,713

 
(1,059
)
 
2,654

 
26

Total top 20 non-U.S. countries exposure
$
126,330

 
$
52,520

 
$
20,426

 
$
50,574

 
$
249,850

 
$
(26,090
)
 
$
223,760

 
$
(3,359
)
(1) 
Beginning in the fourth quarter of 2012, Top 20 Non-U.S. Countries Exposure replaces our previous presentation of Selected Emerging Markets.
(2) 
Includes loans, leases, overdrafts, acceptances, due froms, standby letters of credit, commercial letters of credit and formal guarantees, which have not been reduced by collateral, hedges or credit default protection. Funded loans are reported net of charge-offs, prior to any impairment provision.
(3) 
Net counterparty exposure includes the fair value of derivatives including the counterparty risk associated with credit default protection and secured financing transactions. Derivatives have been reduced by $43.1 billion in collateral, predominantly in cash, pledged under legally enforceable netting agreements. Secured financing transactions have been reduced by eligible cash or securities pledged. The notional amount of reverse repurchase transactions was $80.8 billion at December 31, 2012. Counterparty exposure has not been reduced by hedges or credit default protection.
(4) 
Long securities exposures have been netted on a single-name basis to but not below zero by short positions and net CDS purchased, consisting of single-name and index and tranched CDS.
(5) 
Represents credit default protection purchased, net of credit default protection sold, which is used to mitigate the Corporation's risk to exposures listed that comprise Country Exposure as listed, consisting of single-name and index and tranched CDS. Amounts are calculated based on the credit default protection notional amount assuming zero recovery adjusted for any fair value receivable or payable.
(6) 
Represents country exposure less hedges and credit default protection.


Certain prior period amounts have been reclassified to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.
40



Bank of America Corporation and Subsidiaries
Selected European Countries
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Loans and Loan Equivalents (1)
 
Unfunded Loan Commitments
 
Net Counterparty Exposure (2)
 
Securities/ Other Investments (3)
 
Country Exposure at December 31
2012
 
Hedges and Credit Default Protection (4)
 
Net Country Exposure at December 31
 2012 (5)
 
Increase (Decrease) from September 30
2012
Greece
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sovereign
 
$

 
$

 
$

 
$
2

 
$
2

 
$

 
$
2

 
$
(3
)
Financial institutions
 

 

 

 
6

 
6

 
(11
)
 
(5
)
 

Corporates
 
173

 
139

 
19

 
2

 
333

 
(24
)
 
309

 
(7
)
Total Greece
 
$
173

 
$
139

 
$
19

 
$
10

 
$
341

 
$
(35
)
 
$
306

 
$
(10
)
Ireland
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sovereign
 
$
19

 
$

 
$
27

 
$
22

 
$
68

 
$
(10
)
 
$
58

 
$
45

Financial institutions
 
437

 
31

 
106

 
40

 
614

 
(22
)
 
592

 
122

Corporates
 
587

 
300

 
32

 
33

 
952

 
(23
)
 
929

 
(387
)
Total Ireland
 
$
1,043

 
$
331

 
$
165

 
$
95

 
$
1,634

 
$
(55
)
 
$
1,579

 
$
(220
)
Italy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sovereign
 
$
14

 
$

 
$
1,843

 
$
58

 
$
1,915

 
$
(1,885
)
 
$
30

 
$
(841
)
Financial institutions
 
1,373

 
18

 
200

 
85

 
1,676

 
(599
)
 
1,077

 
(471
)
Corporates
 
1,471

 
2,807

 
252

 
378

 
4,908

 
(1,177
)
 
3,731

 
(644
)
Total Italy
 
$
2,858

 
$
2,825

 
$
2,295

 
$
521

 
$
8,499

 
$
(3,661
)
 
$
4,838

 
$
(1,956
)
Portugal
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sovereign
 
$

 
$

 
$
31

 
$

 
$
31

 
$
(68
)
 
$
(37
)
 
$
(3
)
Financial institutions
 
4

 

 
1

 
49

 
54

 
(16
)
 
38

 
39

Corporates
 
194

 
43

 
4

 
8

 
249

 
(164
)
 
85

 
41

Total Portugal
 
$
198

 
$
43

 
$
36

 
$
57

 
$
334

 
$
(248
)
 
$
86

 
$
77

Spain
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sovereign
 
$
35

 
$

 
$
64

 
$
182

 
$
281

 
$
(54
)
 
$
227

 
$
(43
)
Financial institutions
 
42

 
7

 
69

 
162

 
280

 
(122
)
 
158

 
84

Corporates
 
1,822

 
1,011

 
59

 
260

 
3,152

 
(883
)
 
2,269

 
(15
)
Total Spain
 
$
1,899

 
$
1,018

 
$
192

 
$
604

 
$
3,713

 
$
(1,059
)
 
$
2,654

 
$
26

Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sovereign
 
$
68

 
$

 
$
1,965

 
$
264

 
$
2,297

 
$
(2,017
)
 
$
280

 
$
(845
)
Financial institutions
 
1,856

 
56

 
376

 
342

 
2,630

 
(770
)
 
1,860

 
(226
)
Corporates
 
4,247

 
4,300

 
366

 
681

 
9,594

 
(2,271
)
 
7,323

 
(1,012
)
Total selected European exposure
 
$
6,171

 
$
4,356

 
$
2,707

 
$
1,287

 
$
14,521

 
$
(5,058
)
 
$
9,463

 
$
(2,083
)
(1) 
Includes loans, leases, overdrafts, acceptances, due froms, standby letters of credit, commercial letters of credit and formal guarantees, which have not been reduced by collateral, hedges or credit default protection. Funded loans are reported net of charge-offs, prior to any impairment provision.
(2) 
Net counterparty exposure includes the fair value of derivatives including the counterparty risk associated with credit default protection and secured financing transactions. Derivatives have been reduced by $3.1 billion in collateral, predominantly in cash, pledged under legally enforceable netting agreements. Secured financing transactions have been reduced by eligible cash or securities pledged. The notional amount of reverse repurchase transactions was $1.3 billion at December 31, 2012. Counterparty exposure has not been reduced by hedges or credit default protection.
(3) 
Long securities exposures have been netted on a single-name basis to but not below zero by short positions of $6.5 billion and net CDS purchased of $1.8 billion, consisting of $2.0 billion of net single-name CDS purchased and $207 million of net index and tranched CDS sold.
(4) 
Represents credit default protection purchased, net of credit default protection sold, which is used to mitigate the Corporation's risk to exposures listed that comprise Country Exposure as listed, including $2.7 billion, consisting of $3.0 billion in net single-name CDS purchased and $346 million in net index and tranched CDS sold, to hedge loans and securities, $2.3 billion in additional credit default protection purchased to hedge derivative assets and $60 million in other short positions. Amounts are calculated based on the credit default protection notional amount assuming zero recovery adjusted for any fair value receivable or payable.
(5) 
Represents country exposure less hedges and credit default protection.


Certain prior period amounts have been reclassified to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
41



Bank of America Corporation and Subsidiaries
Nonperforming Loans, Leases and Foreclosed Properties
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
December 31
2012
 
September 30
2012
 
June 30
2012
 
March 31
2012
 
December 31
2011
Residential mortgage (1)
 
$
14,808

 
$
15,175

 
$
14,621

 
$
15,049

 
$
15,970

Home equity (1, 2)
 
4,281

 
4,275

 
4,207

 
4,360

 
2,453

Discontinued real estate (1)
 
248

 
266

 
257

 
269

 
290

Direct/Indirect consumer
 
92

 
36

 
35

 
41

 
40

Other consumer
 
2

 
1

 
1

 
5

 
15

Total consumer
 
19,431

 
19,753

 
19,121

 
19,724

 
18,768

U.S. commercial
 
1,484

 
1,609

 
1,841

 
2,048

 
2,174

Commercial real estate
 
1,513

 
2,028

 
2,498

 
3,404

 
3,880

Commercial lease financing
 
44

 
33

 
39

 
38

 
26

Non-U.S. commercial
 
68

 
139

 
194

 
140

 
143

 
 
3,109

 
3,809

 
4,572

 
5,630

 
6,223

U.S. small business commercial
 
115

 
139

 
143

 
121

 
114

Total commercial
 
3,224

 
3,948

 
4,715

 
5,751

 
6,337

Total nonperforming loans and leases
 
22,655

 
23,701

 
23,836

 
25,475

 
25,105

Foreclosed properties (3)
 
900

 
1,224

 
1,541

 
2,315

 
2,603

Total nonperforming loans, leases and foreclosed properties (4, 5, 6)
 
$
23,555

 
$
24,925

 
$
25,377

 
$
27,790

 
$
27,708

 
 
 
 
 
 
 
 
 
 
 
Fully-insured home loans past due 90 days or more and still accruing
 
$
22,157

 
$
21,817

 
$
22,287

 
$
21,176

 
$
21,164

Consumer credit card past due 90 days or more and still accruing
 
1,649

 
1,695

 
1,847

 
2,160

 
2,412

Other loans past due 90 days or more and still accruing
 
776

 
807

 
865

 
984

 
1,060

Total loans past due 90 days or more and still accruing (5, 7, 8)
 
$
24,582

 
$
24,319

 
$
24,999

 
$
24,320

 
$
24,636

 
 
 
 
 
 
 
 
 
 
 
Nonperforming loans, leases and foreclosed properties/Total assets (9)
 
1.07
%
 
1.14
%
 
1.18
%
 
1.28
%
 
1.31
%
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties (9)
 
2.62

 
2.81

 
2.87

 
3.10

 
3.01

Nonperforming loans and leases/Total loans and leases (9)
 
2.52

 
2.68

 
2.70

 
2.85

 
2.74

 
 
 
 
 
 
 
 
 
 
 
Commercial utilized reservable criticized exposure (10)
 
$
15,936

 
$
17,374

 
$
20,442

 
$
24,457

 
$
27,247

Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure (10)
 
4.10
%
 
4.69
%
 
5.64
%
 
6.77
%
 
7.41
%
Total commercial utilized criticized exposure/Commercial utilized exposure (10)
 
4.44

 
5.03

 
5.92

 
6.86

 
7.47

 
 
 
 
 
 
 
 
 
 
 
(1) 
During the third quarter of 2012, as a result of new regulatory guidance, we changed the treatment of loans discharged as part of a Chapter 7 bankruptcy to write down these loans to collateral value and classify as nonperforming. As a result of this change, we reclassified $557 million of residential mortgage loans, $483 million of home equity loans and $10 million of discontinued real estate loans to nonperforming as of September 30, 2012. Prior period amounts have not been restated.
(2) 
During the first quarter of 2012, the bank regulatory agencies jointly issued interagency supervisory guidance on nonaccrual status for junior-lien consumer real estate loans. In accordance with this regulatory interagency guidance, we classify junior-lien home equity loans as nonperforming when the first-lien loan becomes 90 days past due even if the junior-lien loan is performing. As a result of this change, we reclassified $1.9 billion of performing home equity loans to nonperforming as of March 31, 2012. Prior period amounts have not been restated.
(3) 
Foreclosed property balances do not include loans that are insured by the Federal Housing Administration and have entered foreclosure of $2.5 billion and $1.4 billion at December 31, 2012 and 2011.
(4) 
Balances do not include past due consumer credit card, consumer loans secured by real estate where repayments are insured by the Federal Housing Administration and individually insured long-term stand-by agreements (fully-insured home loans), and in general, other consumer and commercial loans not secured by real estate.
(5) 
Balances do not include purchased credit-impaired loans even though the customer may be contractually past due. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan.
(6) Balances do not include the following:
 
December 31
2012
 
September 30
2012
 
June 30
2012
 
March 31
2012
 
December 31
2011
Nonperforming loans held-for-sale
 
$
1,113

 
$
1,397

 
$
1,363

 
$
1,491

 
$
1,730

Nonperforming loans accounted for under the fair value option
 
401

 
458

 
453

 
798

 
786

Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010
 
521

 
540

 
461

 
459

 
477

(7) 
Balances do not include loans held-for-sale past due 90 days or more and still accruing of $130 million, $26 million, $31 million, $49 million and $41 million at December 31, 2012, September 30, 2012June 30, 2012March 31, 2012 and December 31, 2011, respectively. At December 31, 2012, September 30, 2012June 30, 2012March 31, 2012 and December 31, 2011, there were no loans accounted for under the fair value option past due 90 days or more and still accruing interest.
(8) 
These balances are excluded from total nonperforming loans, leases and foreclosed properties.
(9) 
Total assets and total loans and leases do not include loans accounted for under the fair value option of $9.0 billion, $7.6 billion, $8.4 billion, $9.2 billion and $8.8 billion at December 31, 2012, September 30, 2012June 30, 2012March 31, 2012 and December 31, 2011, respectively.
(10) 
Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure excludes loans held-for-sale, exposure accounted for under the fair value option and other nonreservable exposure.


Certain prior period amounts have been reclassified to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
42



Bank of America Corporation and Subsidiaries
Nonperforming Loans, Leases and Foreclosed Properties Activity (1)
 (Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2012
 
Third Quarter 2012
 
Second Quarter 2012
 
First Quarter 2012
 
Fourth Quarter 2011
Nonperforming Consumer Loans:
 
 
 
 
 
 
Balance, beginning of period
 
$
19,753

 
$
19,121

 
$
19,724

 
$
18,768

 
$
19,147

Additions to nonperforming loans:
 
 
 
 
 
 
 
 
 
 
New nonperforming loans
 
3,323

 
3,306

 
3,259

 
3,308

 
3,757

Impact of change in treatment of loans discharged in bankruptcies (2)
 
n/a

 
1,050

 
n/a

 
n/a

 
n/a

Impact of regulatory interagency guidance (3)
 
n/a

 
n/a

 
n/a

 
1,853

 
n/a

Reductions in nonperforming loans:
 
 
 
 
 
 
 
 
 
 
Paydowns
 
(968
)
 
(822
)
 
(858
)
 
(1,153
)
 
(803
)
Sales
 
(47
)
 

 

 

 

Returns to performing status (4)
 
(1,076
)
 
(943
)
 
(1,271
)
 
(913
)
 
(1,018
)
Charge-offs (5)
 
(1,439
)
 
(1,827
)
 
(1,541
)
 
(1,737
)
 
(1,833
)
Transfers to foreclosed properties
 
(115
)
 
(132
)
 
(192
)
 
(402
)
 
(482
)
Total net additions (reductions) to nonperforming loans
 
(322
)
 
632

 
(603
)
 
956

 
(379
)
Total nonperforming consumer loans, end of period
 
19,431

 
19,753

 
19,121

 
19,724

 
18,768

Foreclosed properties
 
650

 
799

 
1,108

 
1,805

 
1,991

Nonperforming consumer loans and foreclosed properties, end of period
 
$
20,081

 
$
20,552

 
$
20,229

 
$
21,529

 
$
20,759

 
 
 
 
 
 
 
 
 
 
 
Nonperforming Commercial Loans and Leases (6):
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
$
3,948

 
$
4,715

 
$
5,751

 
$
6,337

 
$
7,299

Additions to nonperforming loans and leases:
 
 
 
 
 
 
 
 
 
 
New nonperforming loans and leases
 
473

 
474

 
788

 
599

 
1,084

Advances
 
5

 
42

 
14

 
24

 
20

Reductions in nonperforming loans and leases:
 
 
 
 
 
 
 
 
 
 
Paydowns
 
(445
)
 
(548
)
 
(806
)
 
(573
)
 
(949
)
Sales
 
(198
)
 
(113
)
 
(392
)
 
(137
)
 
(211
)
Return to performing status (7)
 
(249
)
 
(262
)
 
(152
)
 
(145
)
 
(358
)
Charge-offs (8)
 
(273
)
 
(221
)
 
(379
)
 
(291
)
 
(386
)
Transfers to foreclosed properties
 
(37
)
 
(93
)
 
(109
)
 
(63
)
 
(128
)
Transfers to loans held-for-sale
 

 
(46
)
 

 

 
(34
)
Total net reductions to nonperforming loans and leases
 
(724
)
 
(767
)
 
(1,036
)
 
(586
)
 
(962
)
Total nonperforming commercial loans and leases, end of period
 
3,224

 
3,948

 
4,715

 
5,751

 
6,337

Foreclosed properties
 
250

 
425

 
433

 
510

 
612

Nonperforming commercial loans, leases and foreclosed properties, end of period
 
$
3,474

 
$
4,373

 
$
5,148

 
$
6,261

 
$
6,949

 
 
 
 
 
 
 
 
 
 
 
(1) 
For amounts excluded from nonperforming loans, leases and foreclosed properties, see footnotes to Nonperforming Loans, Leases and Foreclosed Properties table on page 42.
(2) 
During the third quarter of 2012, as a result of new regulatory guidance, we changed the treatment of loans discharged from Chapter 7 bankruptcy to write down these loans to collateral value and classify as nonperforming. As a result of this change, we reclassified a net $1.1 billion of consumer real estate loans to nonperforming as of September 30, 2012. Prior period amounts have not be restated.
(3) 
During the first quarter of 2012, the bank regulatory agencies jointly issued interagency supervisory guidance on nonaccrual status for junior-lien consumer real estate loans. In accordance with this regulatory interagency guidance, we classify junior-lien home equity loans as nonperforming when the first-lien loan becomes 90 days past due even if the junior-lien loan is performing. As a result of this change, we reclassified $1.9 billion of performing home equity loans to nonperforming as of March 31, 2012. Prior period amounts have not been restated.
(4) 
Consumer loans may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Certain troubled debt restructurings are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.
(5) 
Our policy is not to classify consumer credit card and non-bankruptcy related consumer loans not secured by real estate as nonperforming; therefore, the charge-offs on these loans have no impact on nonperforming activity and therefore are excluded from this table.
(6) 
Includes U.S. small business commercial activity.
(7) 
Commercial loans and leases may be restored to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected or when the loan otherwise becomes well-secured and is in the process of collection. Troubled debt restructurings are generally classified as performing after a sustained period of demonstrated payment performance.
(8) 
Small business card loans are not classified as nonperforming; therefore, the charge-offs on these loans have no impact on nonperforming activity and accordingly are excluded from this table.

n/a = not applicable


Certain prior period amounts have been reclassified to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
43



Bank of America Corporation and Subsidiaries
Quarterly Net Charge-offs and Net Charge-off Ratios (1, 2, 3, 4) 
(Dollars in millions)
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
First
Quarter
2012
 
Fourth
Quarter
2011
Net Charge-offs
Amount
 
Percent
 
Amount
 
Percent
 
Amount
 
Percent
 
Amount
 
Percent
 
Amount
 
Percent
Residential mortgage
$
714

 
1.16
%
 
$
707

 
1.12
 %
 
$
734

 
1.16
%
 
$
898

 
1.39
 %
 
$
834

 
1.25
 %
Home equity
767

 
2.77

 
1,621

 
5.55

 
892

 
3.00

 
957

 
3.13

 
939

 
2.95

Discontinued real estate
16

 
0.63

 
15

 
0.59

 
16

 
0.65

 
16

 
0.59

 
22

 
0.76

U.S. credit card
978

 
4.19

 
1,079

 
4.60

 
1,244

 
5.27

 
1,331

 
5.44

 
1,432

 
5.55

Non-U.S. credit card
119

 
3.62

 
124

 
3.70

 
135

 
3.97

 
203

 
5.78

 
(36
)
 
(0.89
)
Direct/Indirect consumer
195

 
0.94

 
161

 
0.78

 
181

 
0.86

 
226

 
1.03

 
284

 
1.24

Other consumer
64

 
15.78

 
63

 
9.53

 
49

 
7.71

 
56

 
8.59

 
63

 
9.04

Total consumer
2,853

 
2.04

 
3,770

 
2.64

 
3,251

 
2.25

 
3,687

 
2.48

 
3,538

 
2.28

U.S. commercial (5)
27

 
0.05

 
55

 
0.12

 
94

 
0.20

 
66

 
0.15

 
78

 
0.17

Commercial real estate
84

 
0.88

 
91

 
0.97

 
77

 
0.83

 
132

 
1.36

 
200

 
1.95

Commercial lease financing
1

 
0.02

 
(12
)
 
(0.22
)
 
14

 
0.25

 
(9
)
 
(0.16
)
 
32

 
0.59

Non-U.S. commercial
17

 
0.12

 
9

 
0.06

 
7

 
0.06

 
(5
)
 
(0.04
)
 
18

 
0.15

 
129

 
0.16

 
143

 
0.19

 
192

 
0.26

 
184

 
0.25

 
328

 
0.44

U.S. small business commercial
122

 
3.86

 
209

 
6.59

 
183

 
5.74

 
185

 
5.63

 
188

 
5.55

Total commercial
251

 
0.30

 
352

 
0.45

 
375

 
0.49

 
369

 
0.48

 
516

 
0.66

Total net charge-offs
$
3,104

 
1.40

 
$
4,122

 
1.86

 
$
3,626

 
1.64

 
$
4,056

 
1.80

 
$
4,054

 
1.74

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
By Business Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
$
1,284

 
3.86
%
 
$
1,499

 
4.45
 %
 
$
1,669

 
4.91
%
 
$
1,766

 
5.02
 %
 
$
1,925

 
5.19
 %
Consumer Real Estate Services
732

 
3.01

 
1,567

 
6.08

 
845

 
3.21

 
915

 
3.39

 
894

 
3.14

Global Banking
230

 
0.33

 
116

 
0.18

 
159

 
0.24

 
171

 
0.25

 
304

 
0.45

Global Markets
1

 
0.01

 

 

 

 

 
7

 
0.17

 
10

 
0.26

Global Wealth & Investment Management
91

 
0.35

 
97

 
0.38

 
88

 
0.36

 
94

 
0.38

 
113

 
0.46

All Other
766

 
1.24

 
843

 
1.32

 
865

 
1.33

 
1,103

 
1.65

 
808

 
1.15

Total net charge-offs
$
3,104

 
1.40

 
$
4,122

 
1.86

 
$
3,626

 
1.64

 
$
4,056

 
1.80

 
$
4,054

 
1.74

 
(1) 
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option during the period for each loan and lease category.
(2) 
Excludes write-offs of purchased credit-impaired loans of $1.1 billion and $1.7 billion for the three months ended December 31, 2012 and September 30, 2012.
(3) 
During the three months ended September 30, 2012, the Corporation changed the treatment of loans discharged from Chapter 7 bankruptcy to write down these loans to collateral value irrespective of the borrower's payment status. As a result of the completion of implementation, the Corporation charged off $73 million and $478 million of current or less than 60 days delinquent loans for the three months ended December 31, 2012 and September 30, 2012 .
(4) 
Includes $435 million of charge-offs incurred during the three months ended September 30, 2012 as a result of National Mortgage Settlement activities.
(5) 
Excludes U.S. small business commercial loans.
Certain prior period amounts have been reclassified to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
44



Bank of America Corporation and Subsidiaries
Annual Net Charge-offs and Net Charge-off Ratios (1, 2, 3, 4) 
(Dollars in millions)
 
Year Ended December 31
 
2012
 
2011
Net Charge-offs
Amount
 
Percent
 
Amount
 
Percent
Residential mortgage
$
3,053

 
1.21
 %
 
$
3,832

 
1.45
%
Home equity
4,237

 
3.62

 
4,473

 
3.42

Discontinued real estate
63

 
0.61

 
92

 
0.75

U.S. credit card
4,632

 
4.88

 
7,276

 
6.90

Non-U.S. credit card
581

 
4.29

 
1,169

 
4.86

Direct/Indirect consumer
763

 
0.90

 
1,476

 
1.64

Other consumer
232

 
9.85

 
202

 
7.32

Total consumer
13,561

 
2.36

 
18,520

 
2.94

U.S. commercial (5)
242

 
0.13

 
195

 
0.11

Commercial real estate
384

 
1.01

 
947

 
2.13

Commercial lease financing
(6
)
 
(0.03
)
 
24

 
0.11

Non-U.S. commercial
28

 
0.05

 
152

 
0.36

 
648

 
0.21

 
1,318

 
0.46

U.S. small business commercial
699

 
5.46

 
995

 
7.12

Total commercial
1,347

 
0.43

 
2,313

 
0.77

Total net charge-offs
$
14,908

 
1.67

 
$
20,833

 
2.24

 
 
 
 
 
 
 
 
By Business Segment
 
 
 
 
 
 
 
Consumer & Business Banking
$
6,218

 
4.57
 %
 
$
9,768

 
6.36
%
Consumer Real Estate Services
4,059

 
3.93

 
4,257

 
3.68

Global Banking
676

 
0.25

 
1,258

 
0.48

Global Markets
8

 
0.03

 
9

 
0.07

Global Wealth & Investment Management
370

 
0.37

 
465

 
0.48

All Other
3,577

 
1.39

 
5,076

 
1.76

Total net charge-offs
$
14,908

 
1.67

 
$
20,833

 
2.24

 
 
 
 
 
 
 
 
(1) 
Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option during the period for each loan and lease category.
(2) 
The 2012 amounts exclude write-offs of purchased credit-impaired loans of $2.8 billion.
(3) 
During 2012, the Corporation changed the treatment of loans discharged from Chapter 7 bankruptcy to write down these loans to collateral value irrespective of the borrower's payment status. As a result of the completion of implementation, the Corporation charged off $551 million of current or less than 60 days delinquent loans for the year ended December 31, 2012.
(4) 
The 2012 amounts include $435 million of charge-offs incurred as a result of National Mortgage Settlement activities.
(5) 
Excludes U.S. small business commercial loans.


Certain prior period amounts have been reclassified to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.
45



Bank of America Corporation and Subsidiaries
Allocation of the Allowance for Credit Losses by Product Type
(Dollars in millions)
 
 
December 31, 2012
 
September 30, 2012
 
December 31, 2011
Allowance for loan and lease losses
 
Amount
 
Percent
of
Total
 
Percent of
Loans and
Leases
Outstanding (1)
 
Amount
 
Percent
of
Total
 
Percent of
Loans and
Leases
Outstanding (1)
 
Amount
 
Percent
of
Total
 
Percent of
Loans and
Leases
Outstanding (1)
Residential mortgage
 
$
5,004

 
20.69
%
 
2.06
%
 
$
5,202

 
19.84
%
 
2.10
%
 
$
5,715

 
16.92
%
 
2.18
%
Home equity
 
7,845

 
32.45

 
7.26

 
8,949

 
34.11

 
7.97

 
13,094

 
38.76

 
10.50

Discontinued real estate
 
2,084

 
8.62

 
21.07

 
2,383

 
9.08

 
24.13

 
2,270

 
6.72

 
20.46

U.S. credit card
 
4,718

 
19.51

 
4.97

 
4,898

 
18.67

 
5.26

 
6,322

 
18.71

 
6.18

Non-U.S.credit card
 
600

 
2.48

 
5.13

 
712

 
2.71

 
5.35

 
946

 
2.80

 
6.56

Direct/Indirect consumer
 
718

 
2.97

 
0.86

 
791

 
3.02

 
0.96

 
1,153

 
3.41

 
1.29

Other consumer
 
104

 
0.43

 
6.40

 
120

 
0.46

 
4.43

 
148

 
0.44

 
5.50

Total consumer
 
21,073

 
87.15

 
3.81

 
23,055

 
87.89

 
4.11

 
29,648

 
87.76

 
4.88

U.S. commercial (2)
 
1,885

 
7.80

 
0.90

 
1,908

 
7.27

 
0.93

 
2,441

 
7.23

 
1.26

Commercial real estate
 
846

 
3.50

 
2.19

 
894

 
3.41

 
2.38

 
1,349

 
3.99

 
3.41

Commercial lease financing
 
78

 
0.32

 
0.33

 
81

 
0.31

 
0.35

 
92

 
0.27

 
0.42

Non-U.S.commercial
 
297

 
1.23

 
0.40

 
295

 
1.12

 
0.50

 
253

 
0.75

 
0.46

Total commercial (3) 
 
3,106

 
12.85

 
0.90

 
3,178

 
12.11

 
0.98

 
4,135

 
12.24

 
1.33

Allowance for loan and lease losses
 
24,179

 
100.00
%
 
2.69

 
26,233

 
100.00
%
 
2.96

 
33,783

 
100.00
%
 
3.68

Reserve for unfunded lending commitments
 
513

 
 
 
 
 
518

 
 
 
 
 
714

 
 
 
 
Allowance for credit losses
 
$
24,692

 
 
 
 
 
$
26,751

 
 
 
 
 
$
34,497

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Quality Indicators
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan and lease losses/Total loans and leases (4)
 
 
 
2.69
%
 
 
 
 
 
2.96
%
 
 
 
 
 
3.68
%
 
 
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total loans and leases (excluding purchased credit-impaired loans) (4, 5)
 
 
 
2.14

 
 
 
 
 
2.23

 
 
 
 
 
2.86

 
 
Allowance for loan and lease losses/Total nonperforming loans and leases (6)
 
 
 
107

 
 
 
 
 
111

 
 
 
 
 
135

 
 
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total nonperforming loans and leases (5)
 
 
 
82

 
 
 
 
 
81

 
 
 
 
 
101

 
 
Ratio of the allowance for loan and lease losses/Annualized net charge-offs (7)
 
 
 
1.96

 
 
 
 
 
1.60

 
 
 
 
 
2.10

 
 
Ratio of the allowance for loan and lease losses (excluding purchased credit-impaired loans)/Annualized net charge-offs (5, 7)
 
 
 
1.51

 
 
 
 
 
1.17

 
 
 
 
 
1.57

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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. Consumer loans accounted for under the fair value option include residential mortgage loans of $147 million, $160 million and $906 million and discontinued real estate loans of $858 million, $1.0 billion and $1.3 billion at December 31, 2012, September 30, 2012 and December 31, 2011, respectively. Commercial loans accounted for under the fair value option include U.S. commercial loans of $2.3 billion, $2.0 billion and $2.2 billion and non-U.S. commercial loans of $5.7 billion, $4.4 billion and $4.4 billion at December 31, 2012, September 30, 2012 and December 31, 2011, respectively.
(2) 
Includes allowance for U.S. small business commercial loans of $642 million, $701 million and $893 million at December 31, 2012, September 30, 2012 and December 31, 2011, respectively.
(3) 
Includes allowance for loan and lease losses for impaired commercial loans of $330 million, $391 million and $545 million at December 31, 2012, September 30, 2012 and December 31, 2011, respectively.
(4) 
Total loans and leases do not include loans accounted for under the fair value option of $9.0 billion, $7.6 billion and $8.8 billion at December 31, 2012, September 30, 2012 and December 31, 2011, respectively.
(5) 
Excludes valuation allowance on purchased credit-impaired loans of $5.5 billion, $7.1 billion and $8.5 billion at December 31, 2012, September 30, 2012 and December 31, 2011, respectively.
(6) 
Allowance for loan and lease losses includes $12.0 billion, $13.9 billion and $17.5 billion allocated to products (primarily the Card Services portfolios within Consumer & Business Banking and purchased credit-impaired loans) that are excluded from nonperforming loans and leases at December 31, 2012, September 30, 2012 and December 31, 2011, respectively. Excluding these amounts, allowance for loan and lease losses as a percentage of total nonperforming loans and leases was 54 percent, 52 percent and 65 percent at December 31, 2012, September 30, 2012 and December 31, 2011, respectively.
(7) 
Excluding recoveries related to the bulk sale of previously charged-off U.K. credit card loans and home equity lien protection insurance, the ratio of the allowance for loan and lease losses to annualized net charge-offs would have been 1.92 and 1.44 (excluding purchased credit-impaired loans) for the quarter ended December 31, 2011.


Certain prior period amounts have been reclassified to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
46



Exhibit A: Non-GAAP Reconciliations
 
 
 
 
 
 
 
 
 
 
 
Bank of America Corporation and Subsidiaries
 
 
 
 
 
Reconciliations to GAAP Financial Measures
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 

The Corporation evaluates its business based on a fully taxable-equivalent basis, a non-GAAP financial measure. The Corporation believes managing the business with net interest income on a fully taxable-equivalent basis provides a more accurate picture of the interest margin for comparative purposes. Total revenue, net of interest expense, includes net interest income on a fully taxable-equivalent basis and noninterest income. The Corporation views related ratios and analyses (i.e., efficiency ratios and net interest yield) on a fully taxable-equivalent basis. To derive the fully taxable-equivalent 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. This measure ensures comparability of net interest income arising from taxable and tax-exempt sources. The efficiency ratio measures the costs expended to generate a dollar of revenue, and net interest yield evaluates the basis points the Corporation earns over the cost of funds.

The Corporation also evaluates its business based on the following ratios that utilize tangible equity, a non-GAAP financial measure. Return on average tangible common shareholders’ equity measures the Corporation’s earnings contribution as a percentage of average common shareholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible shareholders’ equity measures the Corporation’s earnings contribution as a percentage of average shareholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. The tangible common equity ratio represents ending common shareholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. The tangible equity ratio represents total ending shareholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Tangible book value per common share represents ending common shareholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by ending common shares outstanding. These measures are used to evaluate the Corporation’s use of equity (i.e., capital). In addition, profitability, relationship and investment models all use return on average tangible shareholders’ equity as key measures to support our overall growth goals.
In addition, the Corporation evaluates its business segment results based on return on average economic capital, a non-GAAP financial measure. Return on average economic capital for the segments is calculated as net income adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average economic capital. Economic capital represents average allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights). It also believes the use of this non-GAAP financial measure provides additional clarity in assessing the segments.

In certain presentations, earnings and diluted earnings per common share, the efficiency ratio, return on average assets, return on common shareholders’ equity, return on average tangible common shareholders’ equity and return on average tangible shareholders’ equity are calculated excluding the impact of goodwill impairment charges of $581 million and $2.6 billion recorded in the fourth and second quarters of 2011. Accordingly, these are non-GAAP financial measures.

See the tables below and on pages 48-50 for reconciliations of these non-GAAP financial measures with financial measures defined by GAAP for the three months ended December 31, 2012, September 30, 2012, June 30, 2012March 31, 2012 and December 31, 2011 and the years ended December 31, 2012 and 2011. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate supplemental financial data differently.
 
 
Year Ended
December 31
 
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
First
Quarter
2012
 
Fourth
Quarter
2011
 
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
40,656

 
$
44,616

 
 
$
10,324

 
$
9,938

 
$
9,548

 
$
10,846

 
$
10,701

Fully taxable-equivalent adjustment
 
901

 
972

 
 
231

 
229

 
234

 
207

 
258

Net interest income on a fully taxable-equivalent basis
 
$
41,557

 
$
45,588

 
 
$
10,555

 
$
10,167

 
$
9,782

 
$
11,053

 
$
10,959

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense on a fully taxable-equivalent basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenue, net of interest expense
 
$
83,334

 
$
93,454

 
 
$
18,660

 
$
20,428

 
$
21,968

 
$
22,278

 
$
24,888

Fully taxable-equivalent adjustment
 
901

 
972

 
 
231

 
229

 
234

 
207

 
258

Total revenue, net of interest expense on a fully taxable-equivalent basis
 
$
84,235

 
$
94,426

 
 
$
18,891

 
$
20,657

 
$
22,202

 
$
22,485

 
$
25,146

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of total noninterest expense to total noninterest expense, excluding goodwill impairment charges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total noninterest expense
 
$
72,093

 
$
80,274

 
 
$
18,360

 
$
17,544

 
$
17,048

 
$
19,141

 
$
19,522

Goodwill impairment charges
 

 
(3,184
)
 
 

 

 

 

 
(581
)
Total noninterest expense, excluding goodwill impairment charges
 
$
72,093

 
$
77,090

 
 
$
18,360

 
$
17,544

 
$
17,048

 
$
19,141

 
$
18,941

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense (benefit)
 
$
(1,116
)
 
$
(1,676
)
 
 
$
(2,636
)
 
$
770

 
$
684

 
$
66

 
$
441

Fully taxable-equivalent adjustment
 
901

 
972

 
 
231

 
229

 
234

 
207

 
258

Income tax expense (benefit) on a fully taxable-equivalent basis
 
$
(215
)
 
$
(704
)
 
 
$
(2,405
)
 
$
999

 
$
918

 
$
273

 
$
699

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of net income to net income, excluding goodwill impairment charges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
$
4,188

 
$
1,446

 
 
$
732

 
$
340

 
$
2,463

 
$
653

 
$
1,991

Goodwill impairment charges
 

 
3,184

 
 

 

 

 

 
581

Net income, excluding goodwill impairment charges
 
$
4,188

 
$
4,630

 
 
$
732

 
$
340

 
$
2,463

 
$
653

 
$
2,572

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of net income (loss) applicable to common shareholders to net income (loss) applicable to common shareholders, excluding goodwill impairment charges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) applicable to common shareholders
 
$
2,760

 
$
85

 
 
$
367

 
$
(33
)
 
$
2,098

 
$
328

 
$
1,584

Goodwill impairment charges
 

 
3,184

 
 

 

 

 

 
581

Net income (loss) applicable to common shareholders, excluding goodwill impairment charges
 
$
2,760

 
$
3,269

 
 
$
367

 
$
(33
)
 
$
2,098

 
$
328

 
$
2,165

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Certain prior period amounts have been reclassified to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
47



Exhibit A: Non-GAAP Reconciliations (continued)
 
Bank of America Corporation and Subsidiaries
Reconciliations to GAAP Financial Measures
(Dollars in millions)
 
 
Year Ended
December 31
 
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
First
Quarter
2012
 
Fourth
Quarter
2011
 
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shareholders’ equity
 
$
216,996

 
$
211,709

 
 
$
219,744

 
$
217,273

 
$
216,782

 
$
214,150

 
$
209,324

Goodwill
 
(69,974
)
 
(72,334
)
 
 
(69,976
)
 
(69,976
)
 
(69,976
)
 
(69,967
)
 
(70,647
)
Intangible assets (excluding mortgage servicing rights)
 
(7,366
)
 
(9,180
)
 
 
(6,874
)
 
(7,194
)
 
(7,533
)
 
(7,869
)
 
(8,566
)
Related deferred tax liabilities
 
2,593

 
2,898

 
 
2,490

 
2,556

 
2,626

 
2,700

 
2,775

Tangible common shareholders’ equity
 
$
142,249

 
$
133,093

 
 
$
145,384

 
$
142,659

 
$
141,899

 
$
139,014

 
$
132,886

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of average shareholders’ equity to average tangible shareholders’ equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders’ equity
 
$
235,677

 
$
229,095

 
 
$
238,512

 
$
236,039

 
$
235,558

 
$
232,566

 
$
228,235

Goodwill
 
(69,974
)
 
(72,334
)
 
 
(69,976
)
 
(69,976
)
 
(69,976
)
 
(69,967
)
 
(70,647
)
Intangible assets (excluding mortgage servicing rights)
 
(7,366
)
 
(9,180
)
 
 
(6,874
)
 
(7,194
)
 
(7,533
)
 
(7,869
)
 
(8,566
)
Related deferred tax liabilities
 
2,593

 
2,898

 
 
2,490

 
2,556

 
2,626

 
2,700

 
2,775

Tangible shareholders’ equity
 
$
160,930

 
$
150,479

 
 
$
164,152

 
$
161,425

 
$
160,675

 
$
157,430

 
$
151,797

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of period-end common shareholders’ equity to period-end tangible common shareholders’ equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shareholders’ equity
 
$
218,188

 
$
211,704

 
 
$
218,188

 
$
219,838

 
$
217,213

 
$
213,711

 
$
211,704

Goodwill
 
(69,976
)
 
(69,967
)
 
 
(69,976
)
 
(69,976
)
 
(69,976
)
 
(69,976
)
 
(69,967
)
Intangible assets (excluding mortgage servicing rights)
 
(6,684
)
 
(8,021
)
 
 
(6,684
)
 
(7,030
)
 
(7,335
)
 
(7,696
)
 
(8,021
)
Related deferred tax liabilities
 
2,428

 
2,702

 
 
2,428

 
2,494

 
2,559

 
2,628

 
2,702

Tangible common shareholders’ equity
 
$
143,956

 
$
136,418

 
 
$
143,956

 
$
145,326

 
$
142,461

 
$
138,667

 
$
136,418

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders’ equity
 
$
236,956

 
$
230,101

 
 
$
236,956

 
$
238,606

 
$
235,975

 
$
232,499

 
$
230,101

Goodwill
 
(69,976
)
 
(69,967
)
 
 
(69,976
)
 
(69,976
)
 
(69,976
)
 
(69,976
)
 
(69,967
)
Intangible assets (excluding mortgage servicing rights)
 
(6,684
)
 
(8,021
)
 
 
(6,684
)
 
(7,030
)
 
(7,335
)
 
(7,696
)
 
(8,021
)
Related deferred tax liabilities
 
2,428

 
2,702

 
 
2,428

 
2,494

 
2,559

 
2,628

 
2,702

Tangible shareholders’ equity
 
$
162,724

 
$
154,815

 
 
$
162,724

 
$
164,094

 
$
161,223

 
$
157,455

 
$
154,815

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of period-end assets to period-end tangible assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
$
2,209,974

 
$
2,129,046

 
 
$
2,209,974

 
$
2,166,162

 
$
2,160,854

 
$
2,181,449

 
$
2,129,046

Goodwill
 
(69,976
)
 
(69,967
)
 
 
(69,976
)
 
(69,976
)
 
(69,976
)
 
(69,976
)
 
(69,967
)
Intangible assets (excluding mortgage servicing rights)
 
(6,684
)
 
(8,021
)
 
 
(6,684
)
 
(7,030
)
 
(7,335
)
 
(7,696
)
 
(8,021
)
Related deferred tax liabilities
 
2,428

 
2,702

 
 
2,428

 
2,494

 
2,559

 
2,628

 
2,702

Tangible assets
 
$
2,135,742

 
$
2,053,760

 
 
$
2,135,742

 
$
2,091,650

 
$
2,086,102

 
$
2,106,405

 
$
2,053,760

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Certain prior period amounts have been reclassified to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
48



Exhibit A: Non-GAAP Reconciliations (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bank of America Corporation and Subsidiaries
Reconciliations to GAAP Financial Measures
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
First
Quarter
2012
 
Fourth
Quarter
2011
 
 
2012
 
2011
 
 
Reconciliation of return on average economic capital
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported net income
 
$
5,321

 
$
7,447

 
 
$
1,428

 
$
1,285

 
$
1,155

 
$
1,453

 
$
1,242

Adjustment related to intangibles (1)
 
13

 
20

 
 
3

 
3

 
4

 
3

 
5

Adjusted net income
 
$
5,334

 
$
7,467

 
 
$
1,431

 
$
1,288

 
$
1,159

 
$
1,456

 
$
1,247

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average allocated equity
 
$
53,646

 
$
52,908

 
 
$
54,194

 
$
53,982

 
$
53,452

 
$
52,947

 
$
53,004

Adjustment related to goodwill and a percentage of intangibles
 
(30,468
)
 
(30,635
)
 
 
(30,417
)
 
(30,447
)
 
(30,485
)
 
(30,522
)
 
(30,587
)
Average economic capital
 
$
23,178

 
$
22,273

 
 
$
23,777

 
$
23,535

 
$
22,967

 
$
22,425

 
$
22,417

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Real Estate Services
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported net loss
 
$
(6,507
)
 
$
(19,465
)
 
 
$
(3,722
)
 
$
(876
)
 
$
(766
)
 
$
(1,143
)
 
$
(1,442
)
Adjustment related to intangibles (1)
 

 

 
 

 

 

 

 

Goodwill impairment charge
 

 
2,603

 
 

 

 

 

 

Adjusted net loss
 
$
(6,507
)
 
$
(16,862
)
 
 
$
(3,722
)
 
$
(876
)
 
$
(766
)
 
$
(1,143
)
 
$
(1,442
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average allocated equity
 
$
13,687

 
$
16,202

 
 
$
12,525

 
$
13,332

 
$
14,116

 
$
14,791

 
$
14,757

Adjustment related to goodwill and a percentage of intangibles (excluding mortgage servicing rights)
 

 
(1,350
)
 
 

 

 

 

 

Average economic capital
 
$
13,687

 
$
14,852

 
 
$
12,525

 
$
13,332

 
$
14,116

 
$
14,791

 
$
14,757

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported net income
 
$
5,725

 
$
6,046

 
 
$
1,432

 
$
1,296

 
$
1,407

 
$
1,590

 
$
1,337

Adjustment related to intangibles (1)
 
4

 
6

 
 
1

 
1

 
1

 
1

 
1

Adjusted net income
 
$
5,729

 
$
6,052

 
 
$
1,433

 
$
1,297

 
$
1,408

 
$
1,591

 
$
1,338

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average allocated equity
 
$
45,907

 
$
47,384

 
 
$
45,729

 
$
46,223

 
$
45,958

 
$
45,719

 
$
46,087

Adjustment related to goodwill and a percentage of intangibles
 
(24,854
)
 
(24,623
)
 
 
(24,849
)
 
(24,852
)
 
(24,856
)

(24,861
)
 
(24,899
)
Average economic capital
 
$
21,053

 
$
22,761

 
 
$
20,880

 
$
21,371

 
$
21,102

 
$
20,858

 
$
21,188

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported net income (loss)
 
$
1,054

 
$
988

 
 
$
152

 
$
(359
)
 
$
462

 
$
799

 
$
(768
)
Adjustment related to intangibles (1)
 
9

 
12

 
 
2

 
2

 
3

 
2

 
3

Adjusted net income (loss)
 
$
1,063

 
$
1,000

 
 
$
154

 
$
(357
)
 
$
465

 
$
801

 
$
(765
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average allocated equity
 
$
17,595

 
$
22,671

 
 
$
17,859

 
$
17,070

 
$
17,136

 
$
18,317

 
$
19,806

Adjustment related to goodwill and a percentage of intangibles
 
(4,639
)
 
(4,625
)
 
 
(4,649
)
 
(4,651
)
 
(4,609
)
 
(4,648
)
 
(4,652
)
Average economic capital
 
$
12,956

 
$
18,046

 
 
$
13,210

 
$
12,419

 
$
12,527

 
$
13,669

 
$
15,154

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Wealth & Investment Management
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported net income
 
$
2,223

 
$
1,718

 
 
$
578

 
$
562

 
$
541

 
$
542

 
$
272

Adjustment related to intangibles (1)
 
23

 
30

 
 
5

 
6

 
6

 
6

 
7

Adjusted net income
 
$
2,246

 
$
1,748

 
 
$
583

 
$
568

 
$
547

 
$
548

 
$
279

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average allocated equity
 
$
17,739

 
$
17,352

 
 
$
18,508

 
$
18,229

 
$
17,421

 
$
16,784

 
$
17,366

Adjustment related to goodwill and a percentage of intangibles
 
(10,380
)
 
(10,486
)
 
 
(10,359
)
 
(10,389
)
 
(10,410
)
 
(10,364
)
 
(10,452
)
Average economic capital
 
$
7,359

 
$
6,866

 
 
$
8,149

 
$
7,840

 
$
7,011

 
$
6,420

 
$
6,914

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For footnote see page 50.


Certain prior period amounts have been reclassified to conform to current period presentation.

This information is preliminary and based on company data available at the time of the presentation.
49



Exhibit A: Non-GAAP Reconciliations (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bank of America Corporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Reconciliations to GAAP Financial Measures
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Fourth
Quarter
2011
 
 
2012
 
2011
 
 
Consumer & Business Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported net income
 
$
917

 
$
1,217

 
 
$
216

 
$
207

 
$
154

Adjustment related to intangibles (1)
 
1

 
3

 
 

 

 
1

Adjusted net income
 
$
918

 
$
1,220

 
 
$
216

 
$
207

 
$
155

 
 
 
 
 
 
 
 
 
 
 
 
Average allocated equity
 
$
24,329

 
$
23,734

 
 
$
25,076

 
$
25,047

 
$
23,861

Adjustment related to goodwill and a percentage of intangibles
 
(17,924
)
 
(17,948
)
 
 
(17,915
)
 
(17,920
)
 
(17,939
)
Average economic capital
 
$
6,405

 
$
5,786

 
 
$
7,161

 
$
7,127

 
$
5,922

 
 
 
 
 
 
 
 
 
 
 
 
Card Services
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported net income
 
$
4,061

 
$
5,811

 
 
$
1,099

 
$
994

 
$
1,028

Adjustment related to intangibles (1)
 
12

 
17

 
 
3

 
3

 
4

Adjusted net income
 
$
4,073

 
$
5,828

 
 
$
1,102

 
$
997

 
$
1,032

 
 
 
 
 
 
 
 
 
 
 
 
Average allocated equity
 
$
20,578

 
$
21,127

 
 
$
20,652

 
$
20,463

 
$
20,610

Adjustment related to goodwill and a percentage of intangibles
 
(10,447
)
 
(10,589
)
 
 
(10,405
)
 
(10,429
)
 
(10,549
)
Average economic capital
 
$
10,131

 
$
10,538

 
 
$
10,247

 
$
10,034

 
$
10,061

 
 
 
 
 
 
 
 
 
 
 
 
Business Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported net income
 
$
343

 
$
419

 
 
$
113

 
$
84

 
$
60

Adjustment related to intangibles (1)
 

 

 
 

 

 

Adjusted net income
 
$
343

 
$
419

 
 
$
113

 
$
84

 
$
60

 
 
 
 
 
 
 
 
 
 
 
 
Average allocated equity
 
$
8,739

 
$
8,047

 
 
$
8,466

 
$
8,472

 
$
8,533

Adjustment related to goodwill and a percentage of intangibles
 
(2,097
)
 
(2,098
)
 
 
(2,097
)
 
(2,098
)
 
(2,099
)
Average economic capital
 
$
6,642

 
$
5,949

 
 
$
6,369

 
$
6,374

 
$
6,434

 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Represents cost of funds, earnings credits and certain expenses related to intangibles.


Certain prior period amounts have been reclassified to conform to current period presentation.


This information is preliminary and based on company data available at the time of the presentation.
50