EX-12 3 bac-6302013ex12.htm EXHIBIT BAC-6.30.2013 Ex.12


Bank of America Corporation and Subsidiaries
 
 
 
 
 
 
 
 
Exhibit 12
 
Ratio of Earnings to Fixed Charges
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges and Preferred Dividends
 
 
 
Year Ended December 31
(Dollars in millions)
Six Months Ended June 30, 2013
 
2012
 
2011
 
2010
 
2009
 
2008
Excluding Interest on Deposits
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
7,482

 
$
3,072

 
$
(230
)
 
$
(1,323
)
 
$
4,360

 
$
4,428

Equity in undistributed earnings (loss) of unconsolidated subsidiaries
(6
)
 
212

 
596

 
1,210

 
(1,833
)
 
(144
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
5,965

 
14,754

 
18,618

 
19,977

 
23,000

 
25,074

1/3 of net rent expense (1)
553

 
1,092

 
1,072

 
1,099

 
1,110

 
791

Total fixed charges
6,518

 
15,846

 
19,690

 
21,076

 
24,110

 
25,865

Preferred dividend requirements (2)
1,005

 
1,080

 
n/m

 
802

 
5,921

 
1,461

Fixed charges and preferred dividends
7,523

 
16,926

 
19,690

 
21,878

 
30,031

 
27,326

Earnings
$
13,994

 
$
19,130

 
$
20,056

 
$
20,963

 
$
26,637

 
$
30,149

Ratio of earnings to fixed charges (3)
2.15

 
1.21

 
1.02

 
0.99

 
1.10

 
1.17

Ratio of earnings to fixed charges and preferred dividends (3, 4)
1.86

 
1.13

 
1.02

 
0.96

 
0.89

 
1.10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31
(Dollars in millions)
Six Months Ended June 30, 2013
 
2012
 
2011
 
2010
 
2009
 
2008
Including Interest on Deposits
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
7,482

 
$
3,072

 
$
(230
)
 
$
(1,323
)
 
$
4,360

 
$
4,428

Equity in undistributed earnings (loss) of unconsolidated subsidiaries
(6
)
 
212

 
596

 
1,210

 
(1,833
)
 
(144
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
6,713

 
16,744

 
21,620

 
23,974

 
30,807

 
40,324

1/3 of net rent expense (1)
553

 
1,092

 
1,072

 
1,099

 
1,110

 
791

Total fixed charges
7,266

 
17,836

 
22,692

 
25,073

 
31,917

 
41,115

Preferred dividend requirements (2)
1,005

 
1,080

 
n/m

 
802

 
5,921

 
1,461

Fixed charges and preferred dividends
8,271

 
18,916

 
22,692

 
25,875

 
37,838

 
42,576

Earnings
$
14,742

 
$
21,120

 
$
23,058

 
$
24,960

 
$
34,444

 
$
45,399

Ratio of earnings to fixed charges
2.03

 
1.18

 
1.02

 
1.00

 
1.08

 
1.10

Ratio of earnings to fixed charges and preferred dividends (3, 4)
1.78

 
1.12

 
1.02

 
0.96

 
0.91

 
1.07

(1) 
Represents an appropriate interest factor.
(2) 
Reflects the impact of $8.8 billion of mortgage banking losses and $3.2 billion of goodwill impairment charges during 2011 which resulted in a negative preferred dividend requirement.
(3) 
The earnings for 2010 were inadequate to cover fixed charges and the ratio of earnings to fixed charges and preferred dividends. The earnings deficiency is a result of $12.4 billion of goodwill impairment charges during 2010. The coverage deficiency for fixed charges was $113 million and the coverage deficiency for fixed charges and preferred dividends was $915 million.
(4) 
The earnings for 2009 were inadequate to cover fixed charges and preferred dividends. The earnings deficiency is a result of accelerated accretion of $4.0 billion recorded as a result of the repurchase of TARP Preferred Stock. The coverage deficiency for fixed charges and preferred dividends was $3.4 billion.
n/m = not meaningful