BAC-12.31.2012-Exhibit 99.3

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


Consolidated Financial Highlights	2
Supplemental Financial Data	3
Consolidated Statement of Income	4
Consolidated Statement of Comprehensive Income	5
Consolidated Balance Sheet	6
Capital Management	8
Net Interest Income Excluding Trading-related Net Interest Income	9
Quarterly Average Balances and Interest Rates	10
Annual Average Balances and Interest Rates	12
Debt Securities and Available-for-Sale Marketable Equity Securities	14
Quarterly Results by Business Segment	15
Annual Results by Business Segment	16
Consumer & Business Banking
Total Segment Results	17
Business Results	18
Key Indicators	21
Consumer Real Estate Services
Total Segment Results	22
Business Results	23
Key Indicators	26
Global Banking
Total Segment Results	27
Key Indicators	28
Investment Banking Product Rankings	29
Global Markets
Total Segment Results	30
Key Indicators	31
Global Wealth & Investment Management
Total Segment Results	32
Key Indicators	33
All Other
Total Segment Results	34
Equity Investments	35
Outstanding Loans and Leases	36
Quarterly Average Loans and Leases by Business Segment	37
Commercial Credit Exposure by Industry	38
Net Credit Default Protection by Maturity Profile and Credit Exposure Debt Rating	39
Top 20 Non-U.S. Countries Exposure	40
Selected European Countries	41
Nonperforming Loans, Leases and Foreclosed Properties	42
Nonperforming Loans, Leases and Foreclosed Properties Activity	43
Quarterly Net Charge-offs and Net Charge-off Ratios	44
Annual Net Charge-offs and Net Charge-off Ratios	45
Allocation of the Allowance for Credit Losses by Product Type	46

Exhibit A: Non-GAAP Reconciliations	47



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			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012			First Quarter 2012			Fourth Quarter 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			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012			First Quarter 2012			Fourth Quarter 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			Fourth Quarter 2012			Third Quarter 2012		Second Quarter 2012			First Quarter 2012			Fourth Quarter 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			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012			First Quarter 2012			Fourth Quarter 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⁾

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⁾


⁽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⁾

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			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012			First Quarter 2012			Fourth Quarter 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⁾


⁽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			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012			First Quarter 2012			Fourth Quarter 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			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012			First Quarter 2012			Fourth Quarter 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⁾

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				Fourth Quarter 2012				Third Quarter 2012				Second Quarter 2012				First Quarter 2012				Fourth Quarter 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			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012			First Quarter 2012			Fourth Quarter 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			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012			First Quarter 2012			Fourth Quarter 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⁾


⁽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		Fourth Quarter 2012		Third Quarter 2012		Second Quarter 2012		First Quarter 2012		Fourth Quarter 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			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012			First Quarter 2012			Fourth Quarter 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			Fourth Quarter 2012		Third Quarter 2012			Second Quarter 2012			First Quarter 2012		Fourth Quarter 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			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012			First Quarter 2012			Fourth Quarter 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		Fourth Quarter 2012		Third Quarter 2012		Second Quarter 2012			First Quarter 2012		Fourth Quarter 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, 2012, June 30, 2012, March 31, 2012 and December 31, 2011, respectively. At December 31, 2012, September 30, 2012, June 30, 2012, March 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, 2012, June 30, 2012, March 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⁾

⁽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, 2012, March 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			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012		First Quarter 2012		Fourth Quarter 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			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012			First Quarter 2012			Fourth Quarter 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			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012			First Quarter 2012			Fourth Quarter 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			Fourth Quarter 2012			Third Quarter 2012			Fourth Quarter 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