BAC-9.30.2013 Ex. 99.3

EX-99.3 4 bac-9302013ex993.htm THE SUPPLEMENTAL INFORMATION BAC-9.30.2013 Ex. 99.3

Supplemental Information

Third Quarter 2013

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
Year-to-Date Average Balances and Interest Rates	12
Debt Securities and Available-for-Sale Marketable Equity Securities	14
Quarterly Results by Business Segment	15
Year-to-Date 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 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
Select 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
Year-to-Date 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)
	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012			Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Income statement
Net interest income	$	31,479		$	30,332		$	10,266		$	10,549		$	10,664		$	10,324		$	9,938
Noninterest income	35,975			34,342			11,264			12,178			12,533			8,336			10,490
Total revenue, net of interest expense	67,454			64,674			21,530			22,727			23,197			18,660			20,428
Provision for credit losses	3,220			5,965			296			1,211			1,713			2,204			1,774
Noninterest expense	51,907			53,733			16,389			16,018			19,500			18,360			17,544
Income tax expense (benefit)	4,335			1,520			2,348			1,486			501			(2,636		)	770
Net income	7,992			3,456			2,497			4,012			1,483			732			340
Preferred stock dividends	1,093			1,063			279			441			373			365			373
Net income (loss) applicable to common shareholders	6,899			2,393			2,218			3,571			1,110			367			(33		)
Diluted earnings per common share ⁽¹⁾	0.62			0.22			0.20			0.32			0.10			0.03			0.00
Average diluted common shares issued and outstanding ⁽¹⁾	11,523,649			10,826,503			11,482,226			11,524,510			11,154,778			10,884,921			10,776,173
Dividends paid per common share	$	0.03		$	0.03		$	0.01		$	0.01		$	0.01		$	0.01		$	0.01

Performance ratios
Return on average assets	0.49		%	0.21		%	0.47		%	0.74		%	0.27		%	0.13		%	0.06		%
Return on average common shareholders' equity	4.23			1.48			4.06			6.55			2.06			0.67			n/m
Return on average tangible common shareholders' equity ⁽²⁾	6.40			2.26			6.15			9.88			3.12			1.01			n/m
Return on average tangible shareholders' equity ⁽²⁾	6.67			2.89			6.32			9.98			3.69			1.77			0.84


At period end
Book value per share of common stock	$	20.50		$	20.40		$	20.50		$	20.18		$	20.19		$	20.24		$	20.40
Tangible book value per share of common stock ⁽²⁾	13.62			13.48			13.62			13.32			13.36			13.36			13.48
Market price per share of common stock:
Closing price	$	13.80		$	8.83		$	13.80		$	12.86		$	12.18		$	11.61		$	8.83
High closing price for the period	14.95			9.93			14.95			13.83			12.78			11.61			9.55
Low closing price for the period	11.03			5.80			12.83			11.44			11.03			8.93			7.04
Market capitalization	147,429			95,163			147,429			138,156			131,817			125,136			95,163

Number of banking centers - U.S.	5,243			5,540			5,243			5,328			5,389			5,478			5,540
Number of branded ATMs - U.S.	16,201			16,253			16,201			16,354			16,311			16,347			16,253
Full-time equivalent employees	247,943			272,594			247,943			257,158			262,812			267,190			272,594


⁽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.

⁽²⁾

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⁾

	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012			Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Net interest income	$	32,125		$	31,002		$	10,479		$	10,771		$	10,875		$	10,555		$	10,167
Total revenue, net of interest expense	68,100			65,344			21,743			22,949			23,408			18,891			20,657
Net interest yield ⁽²⁾	2.44		%	2.35		%	2.44		%	2.44		%	2.43		%	2.35		%	2.32		%
Efficiency ratio	76.22			82.23			75.38			69.80			83.31			97.19			84.93


⁽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, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks of $123 million and $147 million for the nine months ended September 30, 2013 and 2012; $50 million, $40 million and $33 million for the third, second and first quarters of 2013; and $42 million and $48 million for the fourth and third quarters of 2012, respectively. For more information, see Quarterly and Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis on pages 10-11 and 12-13.

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)
	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012
Interest income
Loans and leases	$	27,384		$	29,514		$	9,146		$	9,060		$	9,178		$	9,366		$	9,597
Debt securities	7,302			6,713			2,205			2,548			2,549			2,196			2,062
Federal funds sold and securities borrowed or purchased under agreements to resell	925			1,173			291			319			315			329			353
Trading account assets	3,567			3,787			1,049			1,181			1,337			1,307			1,189
Other interest income	2,130			2,242			691			717			722			773			775
Total interest income	41,308			43,429			13,382			13,825			14,101			13,971			13,976

Interest expense
Deposits	1,082			1,552			334			366			382			438			484
Short-term borrowings	2,241			2,717			683			809			749			855			893
Trading account liabilities	1,274			1,343			375			427			472			420			418
Long-term debt	5,232			7,485			1,724			1,674			1,834			1,934			2,243
Total interest expense	9,829			13,097			3,116			3,276			3,437			3,647			4,038
Net interest income	31,479			30,332			10,266			10,549			10,664			10,324			9,938

Noninterest income
Card income	4,323			4,573			1,444			1,469			1,410			1,548			1,538
Service charges	5,520			5,780			1,884			1,837			1,799			1,820			1,934
Investment and brokerage services	9,165			8,504			2,995			3,143			3,027			2,889			2,781
Investment banking income	4,388			3,699			1,297			1,556			1,535			1,600			1,336
Equity investment income	2,427			1,371			1,184			680			563			699			238
Trading account profits	6,193			5,078			1,266			1,938			2,989			792			1,239
Mortgage banking income (loss)	3,026			5,290			585			1,178			1,263			(540		)	2,019
Gains on sales of debt securities	881			1,491			356			457			68			171			339
Other income (loss)	72			(1,392		)	260			(76		)	(112		)	(642		)	(928		)
Other-than-temporary impairment losses on available-for-sale debt securities:
Total other-than-temporary impairment losses	(21		)	(70		)	(8		)	(5		)	(14		)	(1		)	(9		)
Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income	1			18			1			1			5			—			3
Net impairment losses recognized in earnings on available-for-sale debt securities	(20		)	(52		)	(7		)	(4		)	(9		)	(1		)	(6		)
Total noninterest income	35,975			34,342			11,264			12,178			12,533			8,336			10,490
Total revenue, net of interest expense	67,454			64,674			21,530			22,727			23,197			18,660			20,428

Provision for credit losses	3,220			5,965			296			1,211			1,713			2,204			1,774

Noninterest expense
Personnel	26,732			27,348			8,310			8,531			9,891			8,300			8,431
Occupancy	3,359			3,419			1,096			1,109			1,154			1,151			1,160
Equipment	1,620			1,718			538			532			550			551			561
Marketing	1,377			1,393			511			437			429			480			479
Professional fees	2,045			2,578			702			694			649			996			873
Amortization of intangibles	820			955			270			274			276			309			315
Data processing	2,370			2,188			779			779			812			773			640
Telecommunications	1,217			1,227			397			411			409			433			410
Other general operating	12,367			12,907			3,786			3,251			5,330			5,367			4,675
Total noninterest expense	51,907			53,733			16,389			16,018			19,500			18,360			17,544
Income (loss) before income taxes	12,327			4,976			4,845			5,498			1,984			(1,904		)	1,110
Income tax expense (benefit)	4,335			1,520			2,348			1,486			501			(2,636		)	770
Net income	$	7,992		$	3,456		$	2,497		$	4,012		$	1,483		$	732		$	340
Preferred stock dividends	1,093			1,063			279			441			373			365			373
Net income (loss) applicable to common shareholders	$	6,899		$	2,393		$	2,218		$	3,571		$	1,110		$	367		$	(33	)

Per common share information
Earnings	$	0.64		$	0.22		$	0.21		$	0.33		$	0.10		$	0.03		$	0.00
Diluted earnings	0.62			0.22			0.20			0.32			0.10			0.03			0.00
Dividends paid	0.03			0.03			0.01			0.01			0.01			0.01			0.01
Average common shares issued and outstanding	10,764,216			10,735,461			10,718,918			10,775,867			10,798,975			10,777,204			10,776,173
Average diluted common shares issued and outstanding ⁽¹⁾	11,523,649			10,826,503			11,482,226			11,524,510			11,154,778			10,884,921			10,776,173


⁽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)
	Nine Months Ended September 30					Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012		Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Net income	$	7,992		$	3,456	$	2,497		$	4,012		$	1,483		$	732		$	340
Other comprehensive income (loss), net-of-tax:
Net change in available-for-sale debt and marketable equity securities	(5,770		)	2,971		(631		)	(4,233		)	(906		)	(1,169		)	2,365
Net change in derivatives	365			535		180			13			172			381			234
Employee benefit plan adjustments	1,513			1,106		1,380			48			85			(1,171		)	75
Net change in foreign currency translation adjustments	(134		)	14		(43		)	(49		)	(42		)	(27		)	15
Other comprehensive income (loss)	(4,026		)	4,626		886			(4,221		)	(691		)	(1,986		)	2,689
Comprehensive income (loss)	$	3,966		$	8,082	$	3,383		$	(209	)	$	792		$	(1,254	)	$	3,029

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)
	September 30 2013			June 30 2013			September 30 2012
Assets
Cash and cash equivalents	$	121,233		$	98,828		$	106,415
Time deposits placed and other short-term investments	14,449			12,916			15,950
Federal funds sold and securities borrowed or purchased under agreements to resell	212,007			224,168			234,034
Trading account assets	201,206			191,234			201,086
Derivative assets	53,161			56,772			57,865
Debt securities:
Carried at fair value	266,349			281,481			322,051
Held-to-maturity, at cost	54,649			54,922			39,898
Total debt securities	320,998			336,403			361,949
Loans and leases	934,392			921,570			893,035
Allowance for loan and lease losses	(19,432		)	(21,235		)	(26,233		)
Loans and leases, net of allowance	914,960			900,335			866,802
Premises and equipment, net	10,703			10,836			12,436
Mortgage servicing rights (includes $5,058, $5,827 and $5,087 measured at fair value)	5,068			5,839			5,242
Goodwill	69,891			69,930			69,976
Intangible assets	5,843			6,104			7,030
Loans held-for-sale	15,001			14,549			16,436
Customer and other receivables	60,065			67,526			66,341
Other assets	122,068			127,880			144,600
Total assets	$	2,126,653		$	2,123,320		$	2,166,162

Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
Trading account assets	$	8,743		$	6,507		$	9,959
Derivative assets	199			173			546
Loans and leases	109,996			113,045			125,043
Allowance for loan and lease losses	(2,962		)	(3,157		)	(3,811		)
Loans and leases, net of allowance	107,034			109,888			121,232
Loans held-for-sale	1,875			1,876			2,165
All other assets	4,314			3,927			3,754
Total assets of consolidated variable interest entities	$	122,165		$	122,371		$	137,656

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)
	September 30 2013			June 30 2013			September 30 2012
Liabilities
Deposits in U.S. offices:
Noninterest-bearing	$	374,284		$	352,447		$	362,646
Interest-bearing	657,477			654,370			625,200
Deposits in non-U.S. offices:
Noninterest-bearing	7,394			6,920			6,667
Interest-bearing	70,963			67,046			68,794
Total deposits	1,110,118			1,080,783			1,063,307
Federal funds purchased and securities loaned or sold under agreements to repurchase	226,274			232,609			273,900
Trading account liabilities	82,713			82,381			72,179
Derivative liabilities	44,568			48,532			51,369
Short-term borrowings	40,769			46,470			35,291
Accrued expenses and other liabilities (includes $480, $474 and $518 of reserve for unfunded lending commitments)	134,598			139,033			144,976
Long-term debt	255,331			262,480			286,534
Total liabilities	1,894,371			1,892,288			1,927,556
Shareholders' equity
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,407,790, 3,445,843 and 3,685,410 shares	13,315			14,241			18,768
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 10,683,282,112, 10,743,097,956 and 10,777,267,465 shares	156,371			157,192			158,066
Retained earnings	69,419			67,308			62,583
Accumulated other comprehensive income (loss)	(6,823		)	(7,709		)	(811		)
Total shareholders' equity	232,282			231,032			238,606
Total liabilities and shareholders' equity	$	2,126,653		$	2,123,320		$	2,166,162

Liabilities of consolidated variable interest entities included in total liabilities above
Short-term borrowings	$	2,180		$	1,421		$	3,872
Long-term debt	24,481			25,946			38,055
All other liabilities	382			390			625
Total liabilities of consolidated variable interest entities	$	27,043		$	27,757		$	42,552

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)
	Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012

Risk-based capital ^{(1, 2)}:
Tier 1 common capital	$	142,825		$	139,519		$	136,119		$	133,403		$	136,406
Tier 1 capital	159,008			156,689			158,677			155,461			163,063
Total capital	198,001			196,752			201,211			196,680			205,172
Risk-weighted assets ⁽³⁾	1,289,444			1,288,159			1,298,187			1,205,976			1,195,722
Tier 1 common capital ratio ^{(3, 4)}	11.08		%	10.83		%	10.49		%	11.06		%	11.41		%
Tier 1 capital ratio	12.33			12.16			12.22			12.89			13.64
Total capital ratio	15.36			15.27			15.50			16.31			17.16
Tier 1 leverage ratio	7.79			7.49			7.49			7.37			7.84
Tangible equity ratio ⁽⁵⁾	7.73			7.67			7.78			7.62			7.85
Tangible common equity ratio ⁽⁵⁾	7.08			6.98			6.88			6.74			6.95


⁽¹⁾	Regulatory capital ratios are preliminary until filed with the Federal Reserve on Form Y-9C.


⁽²⁾	Basel 1 includes the Market Risk Final Rule for the third, second and first quarters of 2013 (Basel 1 – 2013 Rules). Basel 1 did not include the Market Risk Final Rule for the fourth and third quarters of 2012.


⁽³⁾	On a pro-forma basis, under the Basel 1 – 2013 Rules, fourth quarter 2012 risk-weighted assets and the Tier 1 common capital ratio would have been $1,284,799 million and 10.38 percent.


⁽⁴⁾	Tier 1 common capital ratio equals Tier 1 capital excluding preferred stock, trust preferred securities, hybrid securities and minority interest divided by risk-weighted assets.

⁽⁵⁾

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 (fully phased-in) Reconciliation ^{(1, 2)}
(Dollars in millions)
	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012
Regulatory capital – Basel 1 to Basel 3 (fully phased-in)
Basel 1 Tier 1 capital	$	159,008		$	156,689		$	158,677		$	155,461		$	163,063
Deduction of qualifying preferred stock and trust preferred securities	(16,183		)	(17,170		)	(22,558		)	(22,058		)	(26,657		)
Basel 1 Tier 1 common capital	142,825			139,519			136,119			133,403			136,406
Deduction of defined benefit pension assets	(935		)	(787		)	(776		)	(737		)	(1,709		)
Change in deferred tax assets and threshold deductions (deferred tax asset temporary differences, mortgage servicing rights and significant investments)	(4,758		)	(6,761		)	(4,501		)	(3,020		)	(1,102		)
Change in all other deductions, net	(5,319		)	(6,125		)	(2,032		)	(1,020		)	1,040
Basel 3 (fully phased-in) Tier 1 common capital	$	131,813		$	125,846		$	128,810		$	128,626		$	134,635

Risk-weighted assets – Basel 1 to Basel 3 (fully phased-in)
Basel 1 risk-weighted assets	$	1,289,444		$	1,288,159		$	1,298,187		$	1,205,976		$	1,195,722
Net change in credit and other risk-weighted assets	37,140			22,276			55,454			103,085			216,244
Increase due to Market Risk Final Rule	—			—			—			81,811			88,881
Basel 3 (fully phased-in) risk-weighted assets	$	1,326,584		$	1,310,435		$	1,353,641		$	1,390,872		$	1,500,847

Tier 1 common capital ratios
Basel 1	11.08		%	10.83		%	10.49		%	11.06		%	11.41		%
Basel 3 (fully phased-in)	9.94			9.60			9.52			9.25			8.97


⁽¹⁾	Basel 3 (fully phased-in) estimates are based on the Advanced Approach under the final Basel 3 rules issued on July 2, 2013.


⁽²⁾	Basel 1 includes the Market Risk Final Rule at September 30, 2013, June 30, 2013 and March 31, 2013. Basel 1 did not include the Market Risk Final Rule at December 31, 2012 and September 30, 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.	8



Bank of America Corporation and Subsidiaries
Net Interest Income Excluding Trading-related Net Interest Income
(Dollars in millions)
	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012			Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Net interest income (FTE basis)
As reported ⁽¹⁾	$	32,125		$	31,002		$	10,479		$	10,771		$	10,875		$	10,555		$	10,167
Impact of trading-related net interest income	(2,817		)	(2,296		)	(888		)	(919		)	(1,010		)	(1,012		)	(847		)
Net interest income excluding trading-related net interest income ⁽²⁾	$	29,308		$	28,706		$	9,591		$	9,852		$	9,865		$	9,543		$	9,320

Average earning assets
As reported	$	1,759,939		$	1,763,600		$	1,710,685		$	1,769,336		$	1,800,786		$	1,788,936		$	1,750,275
Impact of trading-related earning assets	(476,908		)	(438,640		)	(446,212		)	(487,345		)	(497,730		)	(482,366		)	(446,948		)
Average earning assets excluding trading-related earning assets ⁽²⁾	$	1,283,031		$	1,324,960		$	1,264,473		$	1,281,991		$	1,303,056		$	1,306,570		$	1,303,327

Net interest yield contribution (FTE basis) ⁽³⁾
As reported ⁽¹⁾	2.44		%	2.35		%	2.44		%	2.44		%	2.43		%	2.35		%	2.32		%
Impact of trading-related activities	0.61			0.54			0.58			0.64			0.62			0.56			0.53
Net interest yield on earning assets excluding trading-related activities ⁽²⁾	3.05		%	2.89		%	3.02		%	3.08		%	3.05		%	2.91		%	2.85		%

⁽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, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks of $123 million and $147 million for the nine months ended September 30, 2013 and 2012; $50 million, $40 million and $33 million for the third, second and first quarters of 2013; and $42 million and $48 million for the fourth and third quarters of 2012, respectively.


⁽²⁾	Represents a non-GAAP financial measure.


⁽³⁾	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)
	Third Quarter 2013						Second Quarter 2013						Third Quarter 2012
	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⁾	$	17,256	$	47	1.07	%	$	15,088	$	46	1.21	%	$	15,849	$	58	1.47	%
Federal funds sold and securities borrowed or purchased under agreements to resell	223,434		291		0.52		233,394		319		0.55		234,955		353		0.60
Trading account assets	144,502		1,093		3.01		181,620		1,224		2.70		166,192		1,243		2.98
Debt securities ⁽²⁾	327,493		2,211		2.70		343,260		2,557		2.98		355,302		2,068		2.33
Loans and leases ⁽³⁾:
Residential mortgage	256,297		2,359		3.68		257,275		2,246		3.49		261,337		2,409		3.69
Home equity	98,172		930		3.77		101,708		951		3.74		116,308		1,100		3.77
U.S. credit card	90,005		2,226		9.81		89,722		2,192		9.80		93,292		2,353		10.04
Non-U.S. credit card	10,633		317		11.81		10,613		315		11.93		13,329		385		11.48
Direct/Indirect consumer	83,773		587		2.78		82,485		598		2.90		82,635		704		3.39
Other consumer	1,867		19		3.89		1,756		17		4.17		2,654		40		6.03
Total consumer	540,747		6,438		4.74		543,559		6,319		4.66		569,555		6,991		4.89
U.S. commercial	221,542		1,704		3.05		217,464		1,741		3.21		201,072		1,752		3.47
Commercial real estate	43,164		352		3.24		40,612		340		3.36		36,929		329		3.54
Commercial lease financing	23,869		204		3.41		23,579		205		3.48		21,545		202		3.75
Non-U.S. commercial	94,656		528		2.22		89,020		543		2.45		59,758		401		2.67
Total commercial	383,231		2,788		2.89		370,675		2,829		3.06		319,304		2,684		3.35
Total loans and leases	923,978		9,226		3.97		914,234		9,148		4.01		888,859		9,675		4.34
Other earning assets	74,022		677		3.62		81,740		713		3.50		89,118		760		3.40
Total earning assets⁽⁴⁾	1,710,685		13,545		3.15		1,769,336		14,007		3.17		1,750,275		14,157		3.22
Cash and cash equivalents ⁽¹⁾	113,064		50				104,486		40				122,716		48
Other assets, less allowance for loan and lease losses	299,681						310,788						300,321
Total assets	$	2,123,430					$	2,184,610					$	2,173,312

⁽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 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 debt securities carried at fair value 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:



	Third Quarter 2013				Second Quarter 2013				Third Quarter 2012
Federal funds sold and securities borrowed or purchased under agreements to resell		$	15			$	13			$	23
Debt securities		(2		)		(48		)		(139		)
U.S. commercial		(14		)		(27		)		(19		)
Non-U.S. commercial		—				(1		)		(1		)
Net hedge expenses on assets		$	(1	)		$	(63	)		$	(136	)

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)
	Third Quarter 2013						Second Quarter 2013						Third Quarter 2012
	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	$	43,968	$	5	0.05	%	$	44,897	$	6	0.05	%	$	41,581	$	11	0.10	%
NOW and money market deposit accounts	508,136		100		0.08		500,628		107		0.09		465,679		173		0.15
Consumer CDs and IRAs	81,190		116		0.56		85,001		130		0.62		94,140		172		0.73
Negotiable CDs, public funds and other deposits	24,079		25		0.42		22,721		27		0.46		19,587		30		0.61
Total U.S. interest-bearing deposits	657,373		246		0.15		653,247		270		0.17		620,987		386		0.25
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries	12,789		16		0.47		10,832		17		0.64		13,901		19		0.55
Governments and official institutions	1,041		1		0.25		924		—		0.26		1,019		1		0.31
Time, savings and other	55,446		71		0.52		55,661		79		0.56		52,157		78		0.59
Total non-U.S. interest-bearing deposits	69,276		88		0.50		67,417		96		0.57		67,077		98		0.58
Total interest-bearing deposits	726,649		334		0.18		720,664		366		0.20		688,064		484		0.28
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings	279,425		683		0.97		318,028		809		1.02		325,023		893		1.09
Trading account liabilities	84,648		375		1.76		94,349		427		1.82		77,528		418		2.14
Long-term debt	258,717		1,724		2.65		270,198		1,674		2.48		291,684		2,243		3.07
Total interest-bearing liabilities ⁽¹⁾	1,349,439		3,116		0.92		1,403,239		3,276		0.94		1,382,299		4,038		1.16
Noninterest-bearing sources:
Noninterest-bearing deposits	363,962						359,292						361,633
Other liabilities	179,637						187,016						193,341
Shareholders’ equity	230,392						235,063						236,039
Total liabilities and shareholders’ equity	$	2,123,430					$	2,184,610					$	2,173,312
Net interest spread					2.23	%					2.23	%					2.06	%
Impact of noninterest-bearing sources					0.20						0.20						0.25
Net interest income/yield on earning assets ⁽²⁾			$	10,429	2.43	%			$	10,731	2.43	%			$	10,119	2.31	%


⁽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:



	Third Quarter 2013				Second Quarter 2013				Third Quarter 2012
NOW and money market deposit accounts		$	—			$	(1	)		$	—
Consumer CDs and IRAs		23				21				16
Negotiable CDs, public funds and other deposits		3				4				3
Banks located in non-U.S. countries		2				3				3
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings		260				259				323
Long-term debt		(844		)		(946		)		(799		)
Net hedge income on liabilities		$	(556	)		$	(660	)		$	(454	)

⁽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
Year-to-Date Average Balances and Interest Rates – Fully Taxable-equivalent Basis
(Dollars in millions)
	Nine Months Ended September 30
	2013						2012
	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⁾	$	16,162	$	139	1.15	%	$	24,877	$	187	1.01	%
Federal funds sold and securities borrowed or purchased under agreements to resell	231,379		925		0.53		234,058		1,173		0.67
Trading account assets	173,312		3,697		2.85		165,407		3,944		3.18
Debt securities ⁽²⁾	342,278		7,324		2.85		351,348		6,730		2.55
Loans and leases ⁽³⁾:
Residential mortgage	257,392		6,945		3.60		266,716		7,554		3.78
Home equity	101,911		2,878		3.77		119,713		3,357		3.74
U.S. credit card	90,473		6,667		9.85		95,540		7,168		10.02
Non-U.S. credit card	10,757		961		11.95		13,706		1,189		11.59
Direct/Indirect consumer	82,879		1,805		2.91		85,042		2,238		3.52
Other consumer	1,764		55		4.13		2,612		121		6.23
Total consumer	545,176		19,311		4.73		583,329		21,627		4.95
U.S. commercial	216,610		5,111		3.15		198,618		5,250		3.53
Commercial real estate	41,000		1,018		3.32		37,912		991		3.49
Commercial lease financing	23,662		645		3.63		21,557		690		4.27
Non-U.S. commercial	88,440		1,538		2.33		59,234		1,161		2.62
Total commercial	369,712		8,312		3.01		317,321		8,092		3.41
Total loans and leases	914,888		27,623		4.03		900,650		29,719		4.41
Other earning assets	81,920		2,123		3.46		87,260		2,199		3.37
Total earning assets⁽⁴⁾	1,759,939		41,831		3.17		1,763,600		43,952		3.33
Cash and cash equivalents ⁽¹⁾	103,539		123				117,105		147
Other assets, less allowance for loan and lease losses	309,686						304,269
Total assets	$	2,173,164					$	2,184,974

⁽¹⁾


⁽²⁾	Yields on debt securities carried at fair value 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:



	2013				2012
Federal funds sold and securities borrowed or purchased under agreements to resell		$	39			$	110
Debt securities		(172		)		(665		)
U.S. commercial		(70		)		(51		)
Non-U.S. commercial		(2		)		(2		)
Net hedge expenses on assets		$	(205	)		$	(608	)

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
Year-to-Date Average Balances and Interest Rates – Fully Taxable-equivalent Basis (continued)
(Dollars in millions)
	Nine Months Ended September 30
	2013						2012
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-bearing liabilities
U.S. interest-bearing deposits:
Savings	$	43,937	$	17	0.05	%	$	41,506	$	39	0.12	%
NOW and money market deposit accounts	503,339		324		0.09		461,720		547		0.16
Consumer CDs and IRAs	84,829		384		0.60		97,003		537		0.74
Negotiable CDs, public funds and other deposits	22,572		78		0.46		21,273		101		0.63
Total U.S. interest-bearing deposits	654,677		803		0.16		621,502		1,224		0.26
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries	11,928		52		0.58		15,666		72		0.62
Governments and official institutions	956		2		0.25		1,067		3		0.37
Time, savings and other	55,237		225		0.55		53,206		253		0.63
Total non-U.S. interest-bearing deposits	68,121		279		0.55		69,939		328		0.63
Total interest-bearing deposits	722,798		1,082		0.20		691,441		1,552		0.30
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings	311,486		2,241		0.96		312,376		2,717		1.16
Trading account liabilities	90,321		1,274		1.89		78,041		1,343		2.30
Long-term debt	267,582		5,232		2.61		329,320		7,485		3.03
Total interest-bearing liabilities ⁽¹⁾	1,392,187		9,829		0.94		1,411,178		13,097		1.24
Noninterest-bearing sources:
Noninterest-bearing deposits	359,207						346,169
Other liabilities	187,644						192,901
Shareholders’ equity	234,126						234,726
Total liabilities and shareholders’ equity	$	2,173,164					$	2,184,974
Net interest spread					2.23	%					2.09	%
Impact of noninterest-bearing sources					0.20						0.24
Net interest income/yield on earning assets ⁽²⁾			$	32,002	2.43	%			$	30,855	2.33	%


⁽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:



	2013				2012
NOW and money market deposit accounts		$	(1	)		$	(1	)
Consumer CDs and IRAs		57				72
Negotiable CDs, public funds and other deposits		10				10
Banks located in non-U.S. countries		8				10
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings		779				955
Long-term debt		(2,687		)		(2,749		)
Net hedge income on liabilities		$	(1,834	)		$	(1,703	)

⁽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)
	September 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale debt securities
U.S. Treasury and agency securities	$	2,872	$	127	$	(28	)	$	2,971
Mortgage-backed securities:
Agency	170,911		1,311		(3,197		)	169,025
Agency-collateralized mortgage obligations	27,187		340		(192		)	27,335
Non-agency residential	6,788		239		(98		)	6,929
Commercial	2,751		84		(8		)	2,827
Non-U.S. securities	6,217		35		(12		)	6,240
Corporate/Agency bonds	1,152		28		(10		)	1,170
Other taxable securities, substantially all asset-backed securities	13,142		29		(6		)	13,165
Total taxable securities	231,020		2,193		(3,551		)	229,662
Tax-exempt securities	5,264		6		(36		)	5,234
Total available-for-sale debt securities	236,284		2,199		(3,587		)	234,896
Other debt securities carried at fair value	32,365		98		(1,010		)	31,453
Total debt securities carried at fair value	268,649		2,297		(4,597		)	266,349
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities	54,649		67		(1,865		)	52,851
Total debt securities	$	323,298	$	2,364	$	(6,462	)	$	319,200
Available-for-sale marketable equity securities ⁽¹⁾	$	119	$	—	$	(5	)	$	114

	June 30, 2013
Available-for-sale debt securities
U.S. Treasury and agency securities	$	2,984	$	144	$	(29	)	$	3,099
Mortgage-backed securities:
Agency	171,486		1,174		(3,476		)	169,184
Agency-collateralized mortgage obligations	31,315		1,095		(409		)	32,001
Non-agency residential	7,813		343		(130		)	8,026
Commercial	3,521		228		(1		)	3,748
Non-U.S. securities	6,397		47		(22		)	6,422
Corporate/Agency bonds	1,206		33		(8		)	1,231
Other taxable securities, substantially all asset-backed securities	11,468		24		(10		)	11,482
Total taxable securities	236,190		3,088		(4,085		)	235,193
Tax-exempt securities	4,995		12		(46		)	4,961
Total available-for-sale debt securities	241,185		3,100		(4,131		)	240,154
Other debt securities carried at fair value	42,698		158		(1,529		)	41,327
Total debt securities carried at fair value	283,883		3,258		(5,660		)	281,481
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities	54,922		10		(2,076		)	52,856
Total debt securities	$	338,805	$	3,268	$	(7,736	)	$	334,337
Available-for-sale marketable equity securities ⁽¹⁾	$	754	$	649	$	(1	)	$	1,402


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



Other Debt Securities Carried at Fair Value
(Dollars in millions)	September 30 2013		June 30 2013
Mortgage-backed securities:
Agency	$	18,626	$	26,121
Agency-collateralized mortgage obligations	563		1,006
Commercial	758		758
Non-U.S. securities ⁽¹⁾	11,506		13,442
Total	$	31,453	$	41,327


⁽¹⁾	These securities are used to satisfy certain international regulatory liquidity requirements.

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)
	Third Quarter 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services			Global Banking		Global Markets			GWIM			All Other
Net interest income (FTE basis)	$	10,479	$	5,056	$	733		$	2,201	$	975		$	1,478		$	36
Noninterest income	11,264		2,468		844			1,808		2,401			2,912			831
Total revenue, net of interest expense (FTE basis)	21,743		7,524		1,577			4,009		3,376			4,390			867
Provision for credit losses	296		761		(308		)	322		47			23			(549		)
Noninterest expense	16,389		3,980		3,419			1,928		2,884			3,248			930
Income (loss) before income taxes	5,058		2,783		(1,534		)	1,759		445			1,119			486
Income tax expense (benefit) (FTE basis)	2,561		1,004		(534		)	625		1,223			400			(157		)
Net income (loss)	$	2,497	$	1,779	$	(1,000	)	$	1,134	$	(778	)	$	719		$	643

Average
Total loans and leases	$	923,978	$	165,707	$	88,406		$	260,085	n/m			$	112,752		$	232,538
Total assets ⁽¹⁾	2,123,430		583,855		118,226			347,062		$	602,632		268,611			203,044
Total deposits	1,090,611		522,023		n/m			239,839		n/m			239,663			35,126
Period end
Total loans and leases	$	934,392	$	167,254	$	87,586		$	267,165	n/m			$	114,175		$	229,550
Total assets ⁽¹⁾	2,126,653		588,627		115,424			373,110		$	601,139		270,484			177,869
Total deposits	1,110,118		526,876		n/m			263,121		n/m			241,553			30,705

	Second Quarter 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services			Global Banking		Global Markets			GWIM			All Other
Net interest income (FTE basis)	$	10,771	$	5,034	$	699		$	2,252	$	1,013		$	1,505		$	268
Noninterest income	12,178		2,400		1,416			1,886		3,176			2,994			306
Total revenue, net of interest expense (FTE basis)	22,949		7,434		2,115			4,138		4,189			4,499			574
Provision for credit losses	1,211		967		291			163		(16		)	(15		)	(179		)
Noninterest expense	16,018		4,178		3,394			1,856		2,771			3,272			547
Income (loss) before income taxes	5,720		2,289		(1,570		)	2,119		1,434			1,242			206
Income tax expense (benefit) (FTE basis)	1,708		894		(633		)	827		476			484			(340		)
Net income (loss)	$	4,012	$	1,395	$	(937	)	$	1,292	$	958		$	758		$	546

Average
Total loans and leases	$	914,234	$	163,593	$	90,114		$	255,674	n/m			$	109,589		$	238,910
Total assets ⁽¹⁾	2,184,610		584,143		122,276			327,531		$	656,258		263,735			230,667
Total deposits	1,079,956		522,259		n/m			227,668		n/m			235,344			33,774
Period end
Total loans and leases	$	921,570	$	164,851	$	89,257		$	258,502	n/m			$	111,785		$	234,047
Total assets ⁽¹⁾	2,123,320		587,576		124,032			334,820		$	608,907		263,867			204,118
Total deposits	1,080,783		525,099		n/m			229,586		n/m			235,012			34,597

	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	$	4,824	$	719		$	2,009	$	929		$	1,413		$	273
Noninterest income (loss)	10,490		2,437		2,364			1,777		2,349			2,670			(1,107		)
Total revenue, net of interest expense (FTE basis)	20,657		7,261		3,083			3,786		3,278			4,083			(834		)
Provision for credit losses	1,774		1,006		263			23		31			61			390
Noninterest expense	17,544		4,111		4,180			1,936		2,575			3,115			1,627
Income (loss) before income taxes	1,339		2,144		(1,360		)	1,827		672			907			(2,851		)
Income tax expense (benefit) (FTE basis)	999		793		(503		)	676		948			336			(1,251		)
Net income (loss)	$	340	$	1,351	$	(857	)	$	1,151	$	(276	)	$	571		$	(1,600	)

Average
Total loans and leases	$	888,859	$	169,092	$	102,472		$	221,185	n/m			$	101,016		$	256,130
Total assets ⁽¹⁾	2,173,312		534,191		140,522			326,109		$	602,095		265,639			304,756
Total deposits	1,049,697		478,142		n/m			227,421		n/m			241,411			39,266
Period end
Total loans and leases	$	893,035	$	168,296	$	98,642		$	226,152	n/m			$	102,390		$	252,592
Total assets ⁽¹⁾	2,166,162		540,419		138,120			325,488		$	600,154		268,408			293,573
Total deposits	1,063,307		484,623		n/m			234,912		n/m			243,518			37,555


⁽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
Year-to-Date Results by Business Segment
(Dollars in millions)
	Nine Months Ended September 30, 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services			Global Banking			Global Markets		GWIM		All Other
Net interest income (FTE basis)	$	32,125	$	15,103	$	2,175		$	6,613		$	3,097	$	4,579	$	558
Noninterest income	35,975		7,267		3,829			5,564			9,337		8,731		1,247
Total revenue, net of interest expense (FTE basis)	68,100		22,370		6,004			12,177			12,434		13,310		1,805
Provision for credit losses	3,220		2,680		318			634			36		30		(478		)
Noninterest expense	51,907		12,315		12,219			5,626			8,729		9,773		3,245
Income (loss) before income taxes	12,973		7,375		(6,533		)	5,917			3,669		3,507		(962		)
Income tax expense (benefit) (FTE basis)	4,981		2,754		(2,439		)	2,210			2,321		1,310		(1,175		)
Net income (loss)	$	7,992	$	4,621	$	(4,094	)	$	3,707		$	1,348	$	2,197	$	213

Average
Total loans and leases	$	914,888	$	165,048	$	90,478		$	253,334		n/m		$	109,499	$	238,623
Total assets ⁽¹⁾	2,173,164		577,560		122,910			330,985			$	642,810	271,498		227,401
Total deposits	1,082,005		515,668		n/m			229,941			n/m		242,757		34,814
Period end
Total loans and leases	$	934,392	$	167,254	$	87,586		$	267,165		n/m		$	114,175	$	229,550
Total assets ⁽¹⁾	2,126,653		588,627		115,424			373,110			$	601,139	270,484		177,869
Total deposits	1,110,118		526,876		n/m			263,121			n/m		241,553		30,705

	Nine Months Ended September 30, 2012
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services			Global Banking			Global Markets		GWIM		All Other
Net interest income (FTE basis)	$	31,002	$	14,984	$	2,200		$	6,036		$	2,557	$	4,337	$	888
Noninterest income (loss)	34,342		7,405		6,076			5,686			8,707		7,987		(1,519		)
Total revenue, net of interest expense (FTE basis)	65,344		22,389		8,276			11,722			11,264		12,324		(631		)
Provision for credit losses	5,965		3,069		957			(404		)	17		154		2,172
Noninterest expense	53,733		12,821		11,583			5,865			8,668		9,524		5,272
Income (loss) before income taxes	5,646		6,499		(4,264		)	6,261			2,579		2,646		(8,075		)
Income tax expense (benefit) (FTE basis)	2,190		2,398		(1,529		)	2,309			1,531		977		(3,496		)
Net income (loss)	$	3,456	$	4,101	$	(2,735	)	$	3,952		$	1,048	$	1,669	$	(4,579	)

Average
Total loans and leases	$	900,650	$	174,989	$	105,848		$	221,629		n/m		$	99,338	$	263,310
Total assets ⁽¹⁾	2,184,974		530,154		149,971			318,124			$	592,967	265,812		327,946
Total deposits	1,037,610		472,190		n/m			217,602			n/m		239,942		45,151
Period end
Total loans and leases	$	893,035	$	168,296	$	98,642		$	226,152		n/m		$	102,390	$	252,592
Total assets ⁽¹⁾	2,166,162		540,419		138,120			325,488			$	600,154	268,408		293,573
Total deposits	1,063,307		484,623		n/m			234,912			n/m		243,518		37,555


⁽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.	16



Bank of America Corporation and Subsidiaries
Consumer & Business Banking Segment Results
(Dollars in millions)
	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012			Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Net interest income (FTE basis)	$	15,103		$	14,984		$	5,056		$	5,034		$	5,013		$	4,869		$	4,824
Noninterest income:
Card income	3,568			3,973			1,175			1,186			1,207			1,342			1,340
Service charges	3,111			3,244			1,063			1,035			1,013			1,034			1,101
All other income (loss)	588			188			230			179			179			156			(4		)
Total noninterest income	7,267			7,405			2,468			2,400			2,399			2,532			2,437
Total revenue, net of interest expense (FTE basis)	22,370			22,389			7,524			7,434			7,412			7,401			7,261

Provision for credit losses	2,680			3,069			761			967			952			1,078			1,006

Noninterest expense	12,315			12,821			3,980			4,178			4,157			4,174			4,111
Income before income taxes	7,375			6,499			2,783			2,289			2,303			2,149			2,144
Income tax expense (FTE basis)	2,754			2,398			1,004			894			856			703			793
Net income	$	4,621		$	4,101		$	1,779		$	1,395		$	1,447		$	1,446		$	1,351

Net interest yield (FTE basis)	3.77		%	4.09		%	3.70		%	3.72		%	3.89		%	3.88		%	3.89		%
Return on average allocated capital ^{(1, 2)}	20.62			—			23.55			18.68			19.59			—			—
Return on average economic capital ^{(1, 2)}	—			23.00			—			—			—			23.46			22.20
Efficiency ratio (FTE basis)	55.05			57.27			52.90			56.19			56.09			56.39			56.62

Balance Sheet
Average
Total loans and leases	$	165,048		$	174,989		$	165,707		$	163,593		$	165,845		$	167,219		$	169,092
Total earning assets⁽³⁾	536,193			489,257			542,545			542,697			523,125			499,241			493,200
Total assets ⁽³⁾	577,560			530,154			583,855			584,143			564,469			540,787			534,191
Total deposits	515,668			472,190			522,023			522,259			502,508			484,086			478,142
Allocated capital ^{(1, 2)}	30,000			—			30,000			30,000			30,000			—			—
Economic capital ^{(1, 2)}	—			23,880			—			—			—			24,561			24,271

Period end
Total loans and leases	$	167,254		$	168,296		$	167,254		$	164,851		$	163,820		$	169,266		$	168,296
Total earning assets⁽³⁾	547,187			498,244			547,187			545,685			550,989			513,109			498,244
Total assets ⁽³⁾	588,627			540,419			588,627			587,576			593,167			554,915			540,419
Total deposits	526,876			484,623			526,876			525,099			530,581			496,159			484,623

⁽¹⁾

Effective January 1, 2013, the Corporation revised, on a prospective basis, its methodology for allocating capital to the business segments. In connection with the change in methodology, the Corporation updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For more information, see Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.

⁽²⁾

Return on average allocated capital and return on average economic capital are calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital or average economic capital, as applicable. Allocated capital, economic capital and the related returns are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)


⁽³⁾	Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.

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 Year-to-Date Results
(Dollars in millions)
	Nine Months Ended September 30, 2013
	Total Consumer & Business Banking			Deposits ⁽¹⁾			Consumer Lending ⁽²⁾
Net interest income (FTE basis)	$	15,103		$	7,316		$	7,787
Noninterest income:
Card income	3,568			45			3,523
Service charges	3,111			3,111			—
All other income	588			345			243
Total noninterest income	7,267			3,501			3,766
Total revenue, net of interest expense (FTE basis)	22,370			10,817			11,553

Provision for credit losses	2,680			194			2,486

Noninterest expense	12,315			8,303			4,012
Income before income taxes	7,375			2,320			5,055
Income tax expense (FTE basis)	2,754			866			1,888
Net income	$	4,621		$	1,454		$	3,167

Net interest yield (FTE basis)	3.77		%	1.88		%	7.28		%
Return on average allocated capital ^{(3, 4)}	20.62			12.62			29.06
Efficiency ratio (FTE basis)	55.05			76.76			34.72

Balance Sheet
Average
Total loans and leases	$	165,048		$	22,473		$	142,575
Total earning assets ⁽⁵⁾	536,193			519,688			143,013
Total assets ⁽⁵⁾	577,560			552,429			151,639
Total deposits	515,668			515,190			n/m
Allocated capital ^{(3, 4)}	30,000			15,400			14,600

Period end
Total loans and leases	$	167,254		$	22,369		$	144,885
Total earning assets ⁽⁵⁾	547,187			530,658			145,323
Total assets ⁽⁵⁾	588,627			563,110			154,311
Total deposits	526,876			526,318			n/m

	Nine Months Ended September 30, 2012
	Total Consumer & Business Banking			Deposits ⁽¹⁾			Consumer Lending ⁽²⁾
Net interest income (FTE basis)	$	14,984		$	6,834		$	8,150
Noninterest income:
Card income	3,973			46			3,927
Service charges	3,244			3,244			—
All other income (loss)	188			272			(84		)
Total noninterest income	7,405			3,562			3,843
Total revenue, net of interest expense (FTE basis)	22,389			10,396			11,993

Provision for credit losses	3,069			412			2,657

Noninterest expense	12,821			8,514			4,307
Income before income taxes	6,499			1,470			5,029
Income tax expense (FTE basis)	2,398			542			1,856
Net income	$	4,101		$	928		$	3,173

Net interest yield (FTE basis)	4.09		%	1.92		%	7.15		%
Return on average economic capital ^{(3, 4)}	23.00			9.68			38.44
Efficiency ratio (FTE basis)	57.27			81.89			35.92

Balance Sheet
Average
Total loans and leases	$	174,989		$	23,595		$	151,394
Total earning assets ⁽⁵⁾	489,257			474,197			152,364
Total assets ⁽⁵⁾	530,154			507,469			159,989
Total deposits	472,190			471,845			n/m
Economic capital ^{(3, 4)}	23,880			12,823			11,057

Period end
Total loans and leases	$	168,296		$	22,920		$	145,376
Total earning assets ⁽⁵⁾	498,244			485,214			145,883
Total assets ⁽⁵⁾	540,419			518,755			154,517
Total deposits	484,623			483,671			n/m

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)
	Third Quarter 2013
	Total Consumer & Business Banking			Deposits ⁽¹⁾			Consumer Lending ⁽²⁾
Net interest income (FTE basis)	$	5,056		$	2,457		$	2,599
Noninterest income:
Card income	1,175			15			1,160
Service charges	1,063			1,063			—
All other income	230			126			104
Total noninterest income	2,468			1,204			1,264
Total revenue, net of interest expense (FTE basis)	7,524			3,661			3,863

Provision for credit losses	761			96			665

Noninterest expense	3,980			2,670			1,310
Income before income taxes	2,783			895			1,888
Income tax expense (FTE basis)	1,004			323			681
Net income	$	1,779		$	572		$	1,207

Net interest yield (FTE basis)	3.70		%	1.85		%	7.17		%
Return on average allocated capital ^{(3, 4)}	23.55			14.74			32.84
Efficiency ratio (FTE basis)	52.90			72.92			33.92

Balance Sheet
Average
Total loans and leases	$	165,707		$	22,371		$	143,336
Total earning assets ⁽⁵⁾	542,545			525,998			143,771
Total assets ⁽⁵⁾	583,855			558,638			152,441
Total deposits	522,023			521,511			n/m
Allocated capital ^{(3, 4)}	30,000			15,400			14,600

Period end
Total loans and leases	$	167,254		$	22,369		$	144,885
Total earning assets ⁽⁵⁾	547,187			530,658			145,323
Total assets ⁽⁵⁾	588,627			563,110			154,311
Total deposits	526,876			526,318			n/m

	Second Quarter 2013
	Total Consumer & Business Banking			Deposits ⁽¹⁾			Consumer Lending ⁽²⁾
Net interest income (FTE basis)	$	5,034		$	2,472		$	2,562
Noninterest income:
Card income	1,186			15			1,171
Service charges	1,035			1,035			—
All other income	179			117			62
Total noninterest income	2,400			1,167			1,233
Total revenue, net of interest expense (FTE basis)	7,434			3,639			3,795

Provision for credit losses	967			35			932

Noninterest expense	4,178			2,812			1,366
Income before income taxes	2,289			792			1,497
Income tax expense (FTE basis)	894			308			586
Net income	$	1,395		$	484		$	911

Net interest yield (FTE basis)	3.72		%	1.88		%	7.26		%
Return on average allocated capital ^{(3, 4)}	18.68			12.62			25.07
Efficiency ratio (FTE basis)	56.19			77.24			36.00

Balance Sheet
Average
Total loans and leases	$	163,593		$	22,434		$	141,159
Total earning assets ⁽⁵⁾	542,697			526,322			141,599
Total assets ⁽⁵⁾	584,143			559,119			150,248
Total deposits	522,259			521,784			n/m
Allocated capital ^{(3, 4)}	30,000			15,400			14,600

Period end
Total loans and leases	$	164,851		$	22,467		$	142,384
Total earning assets ⁽⁵⁾	545,685			528,738			142,824
Total assets ⁽⁵⁾	587,576			561,657			151,796
Total deposits	525,099			523,928			n/m

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)
	Third Quarter 2012
	Total Consumer & Business Banking			Deposits ⁽¹⁾			Consumer Lending ⁽²⁾
Net interest income (FTE basis)	$	4,824		$	2,164		$	2,660
Noninterest income:
Card income	1,340			15			1,325
Service charges	1,101			1,101			—
All other income (loss)	(4		)	91			(95		)
Total noninterest income	2,437			1,207			1,230
Total revenue, net of interest expense (FTE basis)	7,261			3,371			3,890

Provision for credit losses	1,006			134			872

Noninterest expense	4,111			2,775			1,336
Income before income taxes	2,144			462			1,682
Income tax expense (FTE basis)	793			171			622
Net income	$	1,351		$	291		$	1,060

Net interest yield (FTE basis)	3.89		%	1.79		%	7.22		%
Return on average economic capital ^{(3, 4)}	22.20			8.64			39.02
Efficiency ratio (FTE basis)	56.62			82.30			34.37

Balance Sheet
Average
Total loans and leases	$	169,092		$	23,107		$	145,985
Total earning assets ⁽⁵⁾	493,200			479,952			146,511
Total assets ⁽⁵⁾	534,191			512,860			154,594
Total deposits	478,142			477,763			n/m
Economic capital ^{(3, 4)}	24,271			13,436			10,835

Period end
Total loans and leases	$	168,296		$	22,920		$	145,376
Total earning assets ⁽⁵⁾	498,244			485,214			145,883
Total assets ⁽⁵⁾	540,419			518,755			154,517
Total deposits	484,623			483,671			n/m


⁽¹⁾	During the first quarter of 2013, Business Banking results were moved into Deposits and prior periods were reclassified to conform to current period presentation.


⁽²⁾	During the second quarter of 2013, consumer Dealer Financial Services results were moved into Card Services from Global Banking. As a result, Card Services was renamed Consumer Lending. Prior periods were reclassified to conform to current period presentation.

⁽³⁾

⁽⁴⁾


⁽⁵⁾	For presentation purposes, in segments or businesses where the total of liabilities and equity exceeds assets, the Corporation allocates assets from All Other to match the segments' and businesses' liabilities and allocated shareholders' equity. 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)
	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012			Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Average deposit balances
Checking	$	235,374		$	208,044		$	240,037		$	238,033		$	227,920		$	217,811		$	212,142
Savings	42,174			39,259			42,365			43,183			40,959			39,121			39,371
MMS	160,675			141,932			164,402			162,432			155,088			148,171			145,592
CDs and IRAs	73,044			78,730			70,888			74,064			74,217			74,589			76,801
Non-U.S. and other	4,401			4,225			4,331			4,547			4,324			4,394			4,236
Total average deposit balances	$	515,668		$	472,190		$	522,023		$	522,259		$	502,508		$	484,086		$	478,142

Deposit spreads (excludes noninterest costs)
Checking	2.03		%	2.63		%	2.01		%	2.02		%	2.06		%	2.28		%	2.46		%
Savings	2.20			2.79			2.21			2.20			2.20			2.48			2.62
MMS	1.05			1.23			1.07			1.05			1.04			1.11			1.16
CDs and IRAs	0.52			0.58			0.51			0.51			0.55			0.57			0.58
Non-U.S. and other	0.98			1.03			0.93			1.00			1.02			0.93			1.02
Total deposit spreads	1.52			1.86			1.52			1.51			1.52			1.66			1.76

Client brokerage assets	$	89,517		$	75,852		$	89,517		$	84,182		$	82,616		$	75,946		$	75,852

Online banking active accounts (units in thousands)	30,197			29,809			30,197			29,867			30,102			29,638			29,809
Mobile banking active accounts (units in thousands)	13,967			11,097			13,967			13,214			12,641			12,013			11,097
Banking centers	5,243			5,540			5,243			5,328			5,389			5,478			5,540
ATMs	16,201			16,253			16,201			16,354			16,311			16,347			16,253

U.S. credit card
Loans
Average credit card outstandings	$	90,473		$	95,540		$	90,005		$	89,722		$	91,712		$	92,849		$	93,292
Ending credit card outstandings	90,280			93,162			90,280			90,523			90,047			94,835			93,162
Credit quality
Net charge-offs	$	2,652		$	3,654		$	788		$	917		$	947		$	978		$	1,079
	3.92		%	5.11		%	3.47		%	4.10		%	4.19		%	4.19		%	4.60		%
30+ delinquency	$	2,112		$	2,855		$	2,112		$	2,200		$	2,510		$	2,748		$	2,855
	2.34		%	3.06		%	2.34		%	2.43		%	2.79		%	2.90		%	3.06		%
90+ delinquency	$	1,049		$	1,471		$	1,049		$	1,167		$	1,360		$	1,437		$	1,471
	1.16		%	1.58		%	1.16		%	1.29		%	1.51		%	1.52		%	1.58		%
Other U.S. credit card indicators
Gross interest yield	9.85		%	10.02		%	9.82		%	9.80		%	9.95		%	10.01		%	10.04		%
Risk-adjusted margin	8.29			7.23			8.37			8.11			8.39			8.48			7.66
New account growth (in thousands)	2,912			2,421			1,048			957			906			837			857
Purchase volumes	$	151,400		$	141,872		$	52,823		$	51,945		$	46,632		$	51,628		$	48,189

Debit card data
Purchase volumes	$	199,087		$	192,146		$	66,712		$	67,740		$	64,635		$	66,217		$	64,121

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)
	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012			Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Net interest income (FTE basis)	$	2,175		$	2,200		$	733		$	699		$	743		$	729		$	719
Noninterest income:
Mortgage banking income (loss)	3,672			5,836			774			1,411			1,487			(284		)	2,188
All other income	157			240			70			5			82			30			176
Total noninterest income (loss)	3,829			6,076			844			1,416			1,569			(254		)	2,364
Total revenue, net of interest expense (FTE basis)	6,004			8,276			1,577			2,115			2,312			475			3,083

Provision for credit losses	318			957			(308		)	291			335			485			263

Noninterest expense	12,219			11,583			3,419			3,394			5,406			5,607			4,180
Loss before income taxes	(6,533		)	(4,264		)	(1,534		)	(1,570		)	(3,429		)	(5,617		)	(1,360		)
Income tax benefit (FTE basis)	(2,439		)	(1,529		)	(534		)	(633		)	(1,272		)	(1,913		)	(503		)
Net loss	$	(4,094	)	$	(2,735	)	$	(1,000	)	$	(937	)	$	(2,157	)	$	(3,704	)	$	(857	)

Net interest yield (FTE basis)	2.84		%	2.36		%	2.91		%	2.75		%	2.85		%	2.66		%	2.41		%

Balance Sheet
Average
Total loans and leases	$	90,478		$	105,848		$	88,406		$	90,114		$	92,963		$	96,605		$	102,472
Total earning assets	102,498			124,496			99,759			102,086			105,715			109,139			118,909
Total assets	122,910			149,971			118,226			122,276			128,340			131,663			140,522
Allocated capital^{(1, 2)}	24,000			—			24,000			24,000			24,000			—			—
Economic capital ^{(1, 2)}	—			14,079			—			—			—			12,474			13,335

Period end
Total loans and leases	$	87,586		$	98,642		$	87,586		$	89,257		$	90,971		$	94,660		$	98,642
Total earning assets	98,247			112,977			98,247			102,211			105,544			106,974			112,977
Total assets	115,424			138,120			115,424			124,032			129,118			131,059			138,120

Period end (in billions)
Mortgage serviced portfolio ^{(3, 4)}	$	889.4		$	1,461.8		$	889.4		$	986.4		$	1,185.0		$	1,331.8		$	1,461.8

⁽¹⁾


⁽²⁾	Allocated capital and economic capital are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)


⁽³⁾	Includes servicing of residential mortgage loans, home equity lines of credit and home equity loans.


⁽⁴⁾	Excludes loans for which servicing transferred to third parties as of September 30, 2013 with an effective mortgage servicing right sales date of October 1, 2013.

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 Year-to-Date Results ⁽¹⁾
(Dollars in millions)
	Nine Months Ended September 30, 2013
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	2,175		$	1,020		$	1,155
Noninterest income:
Mortgage banking income	3,672			1,696			1,976
All other income (loss)	157			(23		)	180
Total noninterest income	3,829			1,673			2,156
Total revenue, net of interest expense (FTE basis)	6,004			2,693			3,311

Provision for credit losses	318			145			173

Noninterest expense	12,219			2,564			9,655
Loss before income taxes	(6,533		)	(16		)	(6,517		)
Income tax benefit (FTE basis)	(2,439		)	(6		)	(2,433		)
Net loss	$	(4,094	)	$	(10	)	$	(4,084	)

Balance Sheet
Average
Total loans and leases	$	90,478		$	46,990		$	43,488
Total earning assets	102,498			53,180			49,318
Total assets	122,910			53,597			69,313
Allocated capital ^{(2, 3)}	24,000			6,000			18,000

Period end
Total loans and leases	$	87,586		$	46,875		$	40,711
Total earning assets	98,247			51,248			46,999
Total assets	115,424			51,075			64,349

	Nine Months Ended September 30, 2012
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	2,200		$	1,013		$	1,187
Noninterest income:
Mortgage banking income	5,836			2,394			3,442
All other income (loss)	240			(14		)	254
Total noninterest income	6,076			2,380			3,696
Total revenue, net of interest expense (FTE basis)	8,276			3,393			4,883

Provision for credit losses	957			(5		)	962

Noninterest expense	11,583			2,447			9,136
Income (loss) before income taxes	(4,264		)	951			(5,215		)
Income tax expense (benefit) (FTE basis)	(1,529		)	351			(1,880		)
Net income (loss)	$	(2,735	)	$	600		$	(3,335	)

Balance Sheet
Average
Total loans and leases	$	105,848		$	50,598		$	55,250
Total earning assets	124,496			57,206			67,290
Total assets	149,971			58,204			91,767
Economic capital ^{(2, 3)}	14,079			3,683			10,396

Period end
Total loans and leases	$	98,642		$	48,865		$	49,777
Total earning assets	112,977			56,137			56,840
Total assets	138,120			57,336			80,784

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)
	Third Quarter 2013
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	733		$	329		$	404
Noninterest income:
Mortgage banking income	774			345			429
All other income	70			35			35
Total noninterest income	844			380			464
Total revenue, net of interest expense (FTE basis)	1,577			709			868

Provision for credit losses	(308		)	(11		)	(297		)

Noninterest expense	3,419			880			2,539
Loss before income taxes	(1,534		)	(160		)	(1,374		)
Income tax benefit (FTE basis)	(534		)	(61		)	(473		)
Net loss	$	(1,000	)	$	(99	)	$	(901	)

Balance Sheet
Average
Total loans and leases	$	88,406		$	46,878		$	41,528
Total earning assets	99,759			52,074			47,685
Total assets	118,226			52,309			65,917
Allocated capital ^{(2, 3)}	24,000			6,000			18,000

Period end
Total loans and leases	$	87,586		$	46,875		$	40,711
Total earning assets	98,247			51,248			46,999
Total assets	115,424			51,075			64,349

	Second Quarter 2013
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	699		$	344		$	355
Noninterest income:
Mortgage banking income	1,411			654			757
All other income	5			5			—
Total noninterest income	1,416			659			757
Total revenue, net of interest expense (FTE basis)	2,115			1,003			1,112

Provision for credit losses	291			64			227

Noninterest expense	3,394			866			2,528
Income (loss) before income taxes	(1,570		)	73			(1,643		)
Income tax expense (benefit) (FTE basis)	(633		)	29			(662		)
Net income (loss)	$	(937	)	$	44		$	(981	)

Balance Sheet
Average
Total loans and leases	$	90,114		$	46,870		$	43,244
Total earning assets	102,086			53,739			48,347
Total assets	122,276			54,000			68,276
Allocated capital ^{(2, 3)}	24,000			6,000			18,000

Period end
Total loans and leases	$	89,257		$	46,891		$	42,366
Total earning assets	102,211			53,571			48,640
Total assets	124,032			53,674			70,358

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)
	Third Quarter 2012
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	719		$	336		$	383
Noninterest income:
Mortgage banking income	2,188			853			1,335
All other income (loss)	176			(10		)	186
Total noninterest income	2,364			843			1,521
Total revenue, net of interest expense (FTE basis)	3,083			1,179			1,904

Provision for credit losses	263			(23		)	286

Noninterest expense	4,180			790			3,390
Income (loss) before income taxes	(1,360		)	412			(1,772		)
Income tax expense (benefit) (FTE basis)	(503		)	152			(655		)
Net income (loss)	$	(857	)	$	260		$	(1,117	)

Balance Sheet
Average
Total loans and leases	$	102,472		$	49,561		$	52,911
Total earning assets	118,909			56,285			62,624
Total assets	140,522			57,371			83,151
Economic capital ^{(2, 3)}	13,335			3,879			9,456

Period end
Total loans and leases	$	98,642		$	48,865		$	49,777
Total earning assets	112,977			56,137			56,840
Total assets	138,120			57,336			80,784


⁽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.

⁽²⁾


⁽³⁾	Allocated capital and economic capital are non-GAAP financial measures. The Corporation believes 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.)

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)
	Nine Months Ended September 30								Third Quarter 2013				Second Quarter 2013				First Quarter 2013				Fourth Quarter 2012				Third Quarter 2012
	2013				2012				Third Quarter 2013				Second Quarter 2013				First Quarter 2013				Fourth Quarter 2012				Third Quarter 2012
Mortgage servicing rights at fair value rollforward:
Balance, beginning of period	$	5,716			$	7,378			$	5,827			$	5,776			$	5,716			$	5,087			$	5,708
Net additions (sales)	(1,375		)		155				(600		)		(715		)		(60		)		97				85
Amortization of expected cash flows ⁽¹⁾	(814		)		(1,149		)		(240		)		(260		)		(314		)		(335		)		(346		)
Other changes in mortgage servicing rights fair value ⁽²⁾	1,531				(1,297		)		71				1,026				434				867				(360		)
Balance, end of period	$	5,058			$	5,087			$	5,058			$	5,827			$	5,776			$	5,716			$	5,087

Capitalized mortgage servicing rights (% of loans serviced for investors)	82			bps	45			bps	82			bps	77			bps	61			bps	55			bps	45			bps
Mortgage loans serviced for investors (in billions)	$	616			$	1,142			$	616			$	759			$	949			$	1,045			$	1,142

Loan production:
Total Corporation ⁽³⁾
First mortgage	$	71,797			$	53,558			$	22,601			$	25,276			$	23,920			$	21,516			$	20,315
Home equity	4,440				2,623				1,828				1,496				1,116				962				933
Consumer Real Estate Services
First mortgage	$	57,611			$	41,957			$	17,833			$	20,509			$	19,269			$	16,561			$	15,566
Home equity	3,824				2,067				1,599				1,283				942				765				746

Mortgage banking income (loss)
Production income (loss):
Core production revenue	$	2,140			$	2,774			$	465			$	860			$	815			$	986			$	944
Representations and warranties provision	(770		)		(984		)		(323		)		(197		)		(250		)		(2,955		)		(307		)
Total production income (loss)	1,370				1,790				142				663				565				(1,969		)		637
Servicing income:
Servicing fees	2,400				3,634				699				785				916				1,096				1,089
Amortization of expected cash flows ⁽¹⁾	(814		)		(1,149		)		(240		)		(260		)		(314		)		(335		)		(346		)
Fair value changes of mortgage servicing rights, net of risk management activities used to hedge certain market risks ⁽⁴⁾	693				939				167				215				311				912				560
Other servicing-related revenue	23				622				6				8				9				12				248
Total net servicing income	2,302				4,046				632				748				922				1,685				1,551
Total Consumer Real Estate Services mortgage banking income (loss)	3,672				5,836				774				1,411				1,487				(284		)		2,188
Other business segments’ mortgage banking loss ⁽⁵⁾	(646		)		(546		)		(189		)		(233		)		(224		)		(256		)		(169		)
Total consolidated mortgage banking income (loss)	$	3,026			$	5,290			$	585			$	1,178			$	1,263			$	(540	)		$	2,019


⁽¹⁾	Represents the net change in fair value of the MSR asset due to the recognition of modeled cash flows.

⁽²⁾

These amounts reflect the changes in modeled mortgage servicing rights fair value primarily due to observed changes in interest rates, volatility, spreads and the shape of the forward swap curve. In addition, these amounts reflect periodic adjustments to the valuation model to reflect changes in the modeled relationship between inputs and their impact on projected cash flows, changes in certain cash flow assumptions such as cost to service and ancillary income per loan, changes in OAS rate inputs and the impact of periodic recalibrations of the model to reflect changes in the relationship between market interest rate spreads and projected cash flows.


⁽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⁽¹⁾
(Dollars in millions)
	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012			Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Net interest income (FTE basis)	$	6,613		$	6,036		$	2,201		$	2,252		$	2,160		$	2,099		$	2,009
Noninterest income:
Service charges	2,103			2,173			716			701			686			694			725
Investment banking income	2,276			1,951			694			792			790			842			662
All other income	1,185			1,562			398			393			394			316			390
Total noninterest income	5,564			5,686			1,808			1,886			1,870			1,852			1,777
Total revenue, net of interest expense (FTE basis)	12,177			11,722			4,009			4,138			4,030			3,951			3,786

Provision for credit losses	634			(404		)	322			163			149			62			23

Noninterest expense	5,626			5,865			1,928			1,856			1,842			1,753			1,936
Income before income taxes	5,917			6,261			1,759			2,119			2,039			2,136			1,827
Income tax expense (FTE basis)	2,210			2,309			625			827			758			744			676
Net income	$	3,707		$	3,952		$	1,134		$	1,292		$	1,281		$	1,392		$	1,151

Net interest yield (FTE basis)	3.06		%	2.92		%	2.86		%	3.16		%	3.17		%	2.85		%	2.82		%
Return on average allocated capital ^{(2, 3)}	21.56			—			19.57			22.55			22.59			—			—
Return on average economic capital ^{(2, 3)}	—			27.27			—			—			—			28.97			23.33
Efficiency ratio (FTE basis)	46.20			50.03			48.06			44.87			45.71			44.41			51.14

Balance Sheet
Average
Total loans and leases	$	253,334		$	221,629		$	260,085		$	255,674		$	244,068		$	232,396		$	221,185
Total earnings assets ⁽⁴⁾	289,161			276,444			305,376			285,755			276,030			292,999			283,088
Total assets ⁽⁴⁾	330,985			318,124			347,062			327,531			318,043			336,332			326,109
Total deposits	229,941			217,602			239,839			227,668			222,120			242,817			227,421
Allocated capital ^{(2, 3)}	23,000			—			23,000			23,000			23,000			—			—
Economic capital ^{(2, 3)}	—			19,376			—			—			—			19,123			19,639

Period end
Total loans and leases	$	267,165		$	226,152		$	267,165		$	258,502		$	250,985		$	242,340		$	226,152
Total earnings assets ⁽⁴⁾	330,625			282,873			330,625			292,952			280,104			288,072			282,873
Total assets ⁽⁴⁾	373,110			325,488			373,110			334,820			322,039			331,611			325,488
Total deposits	263,121			234,912			263,121			229,586			228,248			243,306			234,912


⁽¹⁾	During the second quarter of 2013, the results of consumer Dealer Financial Services, previously reported in Global Banking, were moved to Consumer & Business Banking. Prior periods have been reclassified to conform to current period presentation.

⁽²⁾

Effective January 1, 2013, the Corporation revised, on a prospective basis, its methodology for allocating capital to the business segments. In connection with the change in methodology, the Corporation updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For additional information, see Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.

⁽³⁾


⁽⁴⁾	Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.

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)
	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012			Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Investment Banking fees ⁽¹⁾
Advisory ⁽²⁾	$	699		$	710		$	226		$	240		$	233		$	285		$	207
Debt issuance	1,177			941			343			405			429			450			341
Equity issuance	400			300			125			147			128			107			114
Total Investment Banking fees⁽³⁾	$	2,276		$	1,951		$	694		$	792		$	790		$	842		$	662

Business Lending
Corporate	$	2,590		$	2,462		$	884		$	855		$	851		$	739		$	765
Commercial	2,956			2,712			960			1,050			946			909			916
Total Business Lending revenue	$	5,546		$	5,174		$	1,844		$	1,905		$	1,797		$	1,648		$	1,681

Treasury Services
Corporate	$	2,081		$	1,945		$	713		$	702		$	666		$	687		$	660
Commercial	2,192			2,256			741			733			718			732			741
Total Treasury Services revenue	$	4,273		$	4,201		$	1,454		$	1,435		$	1,384		$	1,419		$	1,401

Average deposit balances
Interest-bearing	$	70,851		$	64,447		$	73,699		$	70,158		$	68,639		$	68,240		$	64,690
Noninterest-bearing	159,090			153,155			166,140			157,510			153,481			174,577			162,731
Total average deposits	$	229,941		$	217,602		$	239,839		$	227,668		$	222,120		$	242,817		$	227,421

Loan spread	1.84		%	1.90		%	1.78		%	1.89		%	1.86		%	1.83		%	1.90		%

Provision for credit losses	$	634		$	(404	)	$	322		$	163		$	149		$	62		$	23

Credit quality ^{(4, 5)}
Reservable utilized criticized exposure	$	10,111		$	12,297		$	10,111		$	10,632		$	10,342		$	10,952		$	12,297
	3.44		%	4.81		%	3.44		%	3.73		%	3.71		%	4.06		%	4.81		%

Nonperforming loans, leases and foreclosed properties	$	919		$	2,647		$	919		$	1,087		$	1,643		$	2,052		$	2,647
	0.35		%	1.19		%	0.35		%	0.43		%	0.66		%	0.86		%	1.19		%

Average loans and leases by product
U.S. commercial	$	127,092		$	116,326		$	128,602		$	127,742		$	124,891		$	121,535		$	115,992
Commercial real estate	36,909			32,633			39,172			36,684			34,825			33,404			31,939
Commercial lease financing	24,643			23,241			24,853			24,584			24,486			24,057			23,214
Non-U.S. commercial	64,686			49,417			67,455			66,655			59,859			53,392			50,029
Other	4			12			3			9			7			8			11
Total average loans and leases	$	253,334		$	221,629		$	260,085		$	255,674		$	244,068		$	232,396		$	221,185

Total Corporation Investment Banking fees
Advisory ⁽²⁾	$	775		$	764		$	256		$	262		$	257		$	301		$	221
Debt issuance	2,819			2,285			810			987			1,022			1,078			865
Equity issuance	1,008			776			329			356			323			250			279
Total investment banking fees including self-led	4,602			3,825			1,395			1,605			1,602			1,629			1,365
Self-led	(214		)	(126		)	(98		)	(49		)	(67		)	(29		)	(29		)
Total Investment Banking fees	$	4,388		$	3,699		$	1,297		$	1,556		$	1,535		$	1,600		$	1,336


⁽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

	Nine Months Ended September 30, 2013
	Global			U.S.
	Product Ranking	Market Share		Product Ranking	Market Share
High-yield corporate debt	2	8.4	%	2	10.1	%
Leveraged loans	1	10.5		1	12.6
Mortgage-backed securities	5	8.4		5	9.3
Asset-backed securities	2	12.9		2	15.1
Convertible debt	4	7.5		4	12.0
Common stock underwriting	5	6.7		4	9.8
Investment-grade corporate debt	2	6.3		2	11.6
Syndicated loans	2	9.1		2	13.0
Net investment banking revenue	2	7.4		2	10.9
Announced mergers and acquisitions	4	21.2		3	32.6
Equity capital markets	4	6.8		4	10.1
Debt capital markets	5	5.5		3	9.2

Source: Dealogic data as of October 1, 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.


•	Each advisor receives full credit for the deal amount unless advising a minor stakeholder.

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		Syndicated loans
Leveraged loans		Announced mergers and acquisitions
Asset-backed securities		Debt capital markets
Investment-grade corporate debt

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, Investment-grade corporate debt, Syndicated loans, Announced mergers and acquisitions



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)
	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012			Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Net interest income (FTE basis)	$	3,097		$	2,557		$	975		$	1,013		$	1,109		$	1,114		$	929
Noninterest income:
Investment and brokerage services	1,557			1,389			480			549			528			430			428
Investment banking fees	1,969			1,546			622			668			679			668			552
Trading account profits	5,939			4,981			1,201			1,848			2,890			725			1,237
All other income (loss)	(128		)	791			98			111			(337		)	83			132
Total noninterest income	9,337			8,707			2,401			3,176			3,760			1,906			2,349
Total revenue, net of interest expense (FTE basis) ⁽¹⁾	12,434			11,264			3,376			4,189			4,869			3,020			3,278

Provision for credit losses	36			17			47			(16		)	5			17			31

Noninterest expense	8,729			8,668			2,884			2,771			3,074			2,627			2,575
Income before income taxes	3,669			2,579			445			1,434			1,790			376			672
Income tax expense (FTE basis)	2,321			1,531			1,223			476			622			195			948
Net income (loss)	$	1,348		$	1,048		$	(778	)	$	958		$	1,168		$	181		$	(276	)

Return on average allocated capital ^{(2, 3)}	6.04		%	—			n/m			12.84		%	15.82		%	—			—
Return on average economic capital ^{(2, 3)}	—			10.29		%	—			—			—			5.12		%	n/m
Efficiency ratio (FTE basis)	70.20			76.96			85.45		%	66.15			63.12			86.98			78.56		%

Balance Sheet
Average
Total trading-related assets ⁽⁴⁾	$	479,052		$	456,932		$	442,597		$	490,972		$	504,266		$	493,188		$	462,138
Total earning assets⁽⁴⁾	489,062			450,603			458,657			499,396			509,694			493,901			458,335
Total assets	642,810			592,967			602,632			656,258			670,284			645,808			602,095
Allocated capital ^{(2, 3)}	30,000			—			30,000			30,000			30,000			—			—
Economic capital ^{(2, 3)}	—			13,703			—			—			—			14,184			13,414

Period end
Total trading-related assets ⁽⁴⁾	$	438,137		$	455,161		$	438,137		$	446,505		$	467,826		$	465,836		$	455,161
Total earning assets⁽⁴⁾	464,613			456,581			464,613			465,166			480,039			486,470			456,581
Total assets	601,139			600,154			601,139			608,907			626,797			632,263			600,154

Trading-related assets (average)
Trading account securities	$	217,958		$	189,958		$	193,108		$	225,796		$	235,437		$	220,434		$	193,694
Reverse repurchases	145,506			160,988			128,426			150,568			157,847			166,399			162,040
Securities borrowed	64,746			50,784			73,820			62,813			57,425			52,391			51,757
Derivative assets	50,842			55,202			47,243			51,795			53,557			53,964			54,647
Total trading-related assets ⁽⁴⁾	$	479,052		$	456,932		$	442,597		$	490,972		$	504,266		$	493,188		$	462,138


⁽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⁾


⁽⁴⁾	Trading-related assets include derivative assets, which are considered non-earning 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)
	Nine Months Ended September 30					Third Quarter 2013		Second Quarter 2013		First Quarter 2013			Fourth Quarter 2012		Third Quarter 2012
	2013			2012		Third Quarter 2013		Second Quarter 2013		First Quarter 2013			Fourth Quarter 2012		Third Quarter 2012
Sales and trading revenue ⁽¹⁾
Fixed income, currency and commodities	$	6,995		$	7,261	$	1,767	$	2,292	$	2,936		$	1,551	$	2,000
Equities	3,303			2,340		945		1,199		1,159			674		667
Total sales and trading revenue	$	10,298		$	9,601	$	2,712	$	3,491	$	4,095		$	2,225	$	2,667

Sales and trading revenue, excluding debit valuation adjustment ⁽²⁾
Fixed income, currency and commodities	$	7,293		$	9,219	$	2,033	$	2,259	$	3,001		$	1,788	$	2,534
Equities	3,313			2,554		970		1,194		1,149			713		715
Total sales and trading revenue, excluding debit valuation adjustment	$	10,606		$	11,773	$	3,003	$	3,453	$	4,150		$	2,501	$	3,249

Sales and trading revenue breakdown
Net interest income	$	2,848		$	2,294	$	898	$	930	$	1,020		$	1,014	$	846
Commissions	1,557			1,389		480		549		528			430		428
Trading	5,939			4,981		1,201		1,848		2,890			725		1,237
Other	(46		)	937		133		164		(343		)	56		156
Total sales and trading revenue	$	10,298		$	9,601	$	2,712	$	3,491	$	4,095		$	2,225	$	2,667


⁽¹⁾	Includes Global Banking sales and trading revenue of $319 million and $473 million for the nine months ended September 30, 2013 and 2012; $109 million, $142 million and $68 million for the third, second and first quarters of 2013; and $49 million and $111 million for the fourth and third quarters of 2012, respectively.

⁽²⁾

For this presentation, sales and trading revenue excludes debit valuation adjustment gains/losses which represents a non-GAAP financial measure. Net debit valuation adjustment losses included in fixed income, currency and commodities revenue were $298 million and $2.0 billion for the nine months ended September 30, 2013 and 2012; losses of $266 million, gains of $33 million and losses of $65 million for the third, second and first quarters of 2013; and losses of $237 million and $534 million for the fourth and third quarters of 2012, respectively. Net debit valuation adjustment losses included in equities revenue were $10 million and $214 million for the nine months ended September 30, 2013 and 2012; losses of $25 million, and gains of $5 million and $10 million for the third, second and first quarters of 2013; and losses of $39 million and $48 million for the fourth and third quarters of 2012, 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.	31



Bank of America Corporation and Subsidiaries
Global Wealth & Investment Management Segment Results
(Dollars in millions)
	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012			Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Net interest income (FTE basis)	$	4,579		$	4,337		$	1,478		$	1,505		$	1,596		$	1,490		$	1,413
Noninterest income:
Investment and brokerage services	7,185			6,577			2,413			2,441			2,331			2,272			2,181
All other income	1,546			1,410			499			553			494			431			489
Total noninterest income	8,731			7,987			2,912			2,994			2,825			2,703			2,670
Total revenue, net of interest expense (FTE basis)	13,310			12,324			4,390			4,499			4,421			4,193			4,083

Provision for credit losses	30			154			23			(15		)	22			112			61

Noninterest expense	9,773			9,524			3,248			3,272			3,253			3,196			3,115
Income before income taxes	3,507			2,646			1,119			1,242			1,146			885			907
Income tax expense (FTE basis)	1,310			977			400			484			426			309			336
Net income	$	2,197		$	1,669		$	719		$	758		$	720		$	576		$	571

Net interest yield (FTE basis)	2.42		%	2.36		%	2.35		%	2.47		%	2.46		%	2.30		%	2.28		%
Return on average allocated capital ^{(1, 2)}	29.54			—			28.68			30.57			29.38			—			—
Return on average economic capital ^{(1, 2)}	—			31.75			—			—			—			28.36			29.22
Efficiency ratio (FTE basis)	73.43			77.28			74.00			72.72			73.58			76.24			76.30

Balance Sheet
Average
Total loans and leases	$	109,499		$	99,338		$	112,752		$	109,589		$	106,082		$	103,785		$	101,016
Total earning assets ⁽³⁾	252,485			245,479			249,203			244,859			263,551			257,399			246,727
Total assets ⁽³⁾	271,498			265,812			268,611			263,735			282,298			276,408			265,639
Total deposits	242,757			239,942			239,663			235,344			253,413			249,658			241,411
Allocated capital ^{(1, 2)}	10,000			—			10,000			10,000			10,000			—			—
Economic capital ^{(1, 2)}	—			7,093			—			—			—			8,149			7,840

Period end
Total loans and leases	$	114,175		$	102,390		$	114,175		$	111,785		$	107,048		$	105,928		$	102,390
Total earning assets ⁽³⁾	250,677			248,797			250,677			244,340			248,939			277,121			248,797
Total assets ⁽³⁾	270,484			268,408			270,484			263,867			268,263			297,326			268,408
Total deposits	241,553			243,518			241,553			235,012			239,853			266,188			243,518

⁽¹⁾

⁽²⁾


⁽³⁾	Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.

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)
	Nine Months Ended September 30					Third Quarter 2013		Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012		Third Quarter 2012
	2013		2012			Third Quarter 2013		Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012		Third Quarter 2012
Revenues
Merrill Lynch Global Wealth Management	$	11,068	$	10,235		$	3,646	$	3,742		$	3,680		$	3,500	$	3,407
U.S. Trust	2,191		2,019			730		740			721			690		656
Other ⁽¹⁾	51		70			14		17			20			3		20
Total revenues	$	13,310	$	12,324		$	4,390	$	4,499		$	4,421		$	4,193	$	4,083

Client Balances
Client Balances by Business
Merrill Lynch Global Wealth Management	$	1,853,980	$	1,731,154		$	1,853,980	$	1,800,151		$	1,812,412		$	1,743,459	$	1,731,154
U.S. Trust	362,791		332,792			362,791		351,119			354,721			341,292		332,792
Other ⁽¹⁾	66,665		64,239			66,665		63,781			64,603			66,874		64,239

Client Balances by Type
Assets under management	$	779,614	$	692,854		$	779,614	$	743,613		$	745,260		$	698,095	$	692,854
Brokerage assets	1,013,688		970,662			1,013,688		992,664			1,009,507			960,351		970,662
Assets in custody	131,386		115,350			131,386		128,854			127,013			117,686		115,350
Deposits	241,553		243,518			241,553		235,012			239,853			266,188		243,518
Loans and leases ⁽²⁾	117,195		105,801			117,195		114,908			110,103			109,305		105,801
Total client balances	$	2,283,436	$	2,128,185		$	2,283,436	$	2,215,051		$	2,231,736		$	2,151,625	$	2,128,185

Assets Under Management Flows
Liquidity assets under management ⁽³⁾	$	10	$	(1,927	)	$	2,932	$	(695	)	$	(2,227	)	$	2,545	$	(1,875	)
Long-term assets under management ⁽⁴⁾	38,394		17,270			10,341		7,692			20,361			9,120		5,779
Total assets under management flows	$	38,404	$	15,343		$	13,273	$	6,997		$	18,134		$	11,665	$	3,904

Associates ⁽⁵⁾
Number of Financial Advisors	15,624		16,759			15,624		15,759			16,065			16,411		16,759
Total Wealth Advisors	16,846		18,036			16,846		16,989			17,293			17,640		18,036
Total Client Facing Professionals	19,534		20,778			19,534		19,689			20,018			20,386		20,778

Merrill Lynch Global Wealth Management Metrics
Financial Advisory Productivity ⁽⁶⁾ (in thousands)	$	994	$	894		$	1,000	$	1,012		$	971		$	927	$	897

U.S. Trust Metrics
Client Facing Professionals	2,090		2,119			2,090		2,084			2,090			2,077		2,119


⁽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 the Consumer & Business Banking segment of 1,585, 1,587, 1,591, 1,496 and 1,457 at September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, 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 the Consumer & Business Banking segment). 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)
	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012			Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Net interest income (FTE basis)	$	558		$	888		$	36		$	268		$	254		$	254		$	273
Noninterest income:
Card income	245			264			79			81			85			96			93
Equity investment income	2,217			566			1,121			576			520			569			172
Gains on sales of debt securities	866			1,393			347			452			67			117			328
All other loss	(2,081		)	(3,742		)	(716		)	(803		)	(562		)	(1,185		)	(1,700		)
Total noninterest income (loss)	1,247			(1,519		)	831			306			110			(403		)	(1,107		)
Total revenue, net of interest expense (FTE basis)	1,805			(631		)	867			574			364			(149		)	(834		)

Provision for credit losses	(478		)	2,172			(549		)	(179		)	250			450			390

Noninterest expense	3,245			5,272			930			547			1,768			1,003			1,627
Income (loss) before income taxes	(962		)	(8,075		)	486			206			(1,654		)	(1,602		)	(2,851		)
Income tax benefit (FTE basis)	(1,175		)	(3,496		)	(157		)	(340		)	(678		)	(2,443		)	(1,251		)
Net income (loss)	$	213		$	(4,579	)	$	643		$	546		$	(976	)	$	841		$	(1,600	)

Balance Sheet
Average
Total loans and leases	$	238,623		$	263,310		$	232,538		$	238,910		$	244,557		$	247,128		$	256,130
Total assets ⁽²⁾	227,401			327,946			203,044			230,667			248,996			279,367			304,756
Total deposits	34,814			45,151			35,126			33,774			35,549			36,939			39,266

Period end
Total loans and leases	$	229,550		$	252,592		$	229,550		$	234,047		$	241,406		$	241,981		$	252,592
Total assets ⁽³⁾	177,869			293,573			177,869			204,118			235,435			262,800			293,573
Total deposits	30,705			37,555			30,705			34,597			35,759			36,061			37,555

⁽¹⁾

All Other consists of ALM activities, equity investments, the international consumer card business, liquidating businesses, residual expense allocations 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, the impact of certain allocation methodologies and accounting hedge ineffectiveness. Equity investments include Global Principal Investments, strategic and certain other investments. Additionally, All Other includes certain residential mortgage loans that are managed by Legacy Assets & Servicing.

⁽²⁾

Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $531.0 billion and $496.7 billion for the nine months ended September 30, 2013 and 2012; $541.0 billion, $525.1 billion, $526.8 billion, $526.2 billion and $514.4 billion for the third, second and first quarters of 2013, and the fourth and third quarters of 2012, respectively.


⁽³⁾	Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $558.0 billion, $529.5 billion, $537.7 billion, $537.6 billion and $513.7 billion at September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, 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 (Loss)
	September 30, 2013						June 30 2013		September 30, 2013
	Book Value		Unfunded Commitments		Total		Total		Three Months Ended			Nine Months Ended
Global Principal Investments:
Private Equity Investments	$	329	$	23	$	352	$	516	$	33		$	184
Global Real Estate	299		31		330		350		(11		)	(53		)
Global Strategic Capital	763		101		864		970		49			5
Legacy/Other Investments	541		—		541		539		51			142
Total Global Principal Investments	$	1,932	$	155	$	2,087	$	2,375	$	122		$	278



Components of Equity Investment Income
(Dollars in millions)
	Nine Months Ended September 30				Third Quarter 2013		Second Quarter 2013		First Quarter 2013		Fourth Quarter 2012		Third Quarter 2012
	2013		2012		Third Quarter 2013		Second Quarter 2013		First Quarter 2013		Fourth Quarter 2012		Third Quarter 2012
Global Principal Investments	$	278	$	422	$	122	$	52	$	104	$	167	$	156
Strategic and other investments	1,939		144		999		524		416		402		16
Total equity investment income included in All Other	2,217		566		1,121		576		520		569		172
Total equity investment income included in the business segments	210		805		63		104		43		130		66
Total consolidated equity investment income	$	2,427	$	1,371	$	1,184	$	680	$	563	$	699	$	238

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)
	September 30 2013		June 30 2013		September 30 2012
Consumer
Residential mortgage ⁽¹⁾	$	253,496	$	253,959	$	257,022
Home equity	96,653		100,011		112,454
U.S. credit card	90,280		90,523		93,162
Non-U.S. credit card	11,083		10,340		13,320
Direct/Indirect consumer ⁽²⁾	84,035		83,358		82,404
Other consumer ⁽³⁾	1,913		1,803		2,714
Total consumer loans excluding loans accounted for under the fair value option	537,460		539,994		561,076
Consumer loans accounted for under the fair value option ⁽⁴⁾	2,186		1,052		1,202
Total consumer	539,646		541,046		562,278

Commercial
U.S. commercial ⁽⁵⁾	224,262		219,367		205,384
Commercial real estate ⁽⁶⁾	44,940		42,126		37,579
Commercial lease financing	24,589		23,912		22,855
Non-U.S. commercial	92,945		86,710		58,503
Total commercial loans excluding loans accounted for under the fair value option	386,736		372,115		324,321
Commercial loans accounted for under the fair value option ⁽⁴⁾	8,010		8,409		6,436
Total commercial	394,746		380,524		330,757
Total loans and leases	$	934,392	$	921,570	$	893,035


⁽¹⁾	Includes pay option loans of $5.2 billion, $5.8 billion and $8.8 billion and non-U.S. residential mortgages of $87 million, $83 million and $94 million at September 30, 2013, June 30, 2013 and September 30, 2012, respectively. The Corporation no longer originates pay option loans.

⁽²⁾

Includes dealer financial services loans of $39.5 billion, $36.8 billion and $36.0 billion, consumer lending loans of $3.1 billion, $3.6 billion and $5.6 billion, U.S. securities-based lending loans of $30.4 billion, $30.0 billion and $26.7 billion, non-U.S. consumer loans of $5.7 billion, $7.5 billion and $7.9 billion, student loans of $4.3 billion, $4.4 billion and $5.0 billion, and other consumer loans of $1.0 billion, $1.1 billion and $1.2 billion at September 30, 2013, June 30, 2013 and September 30, 2012, respectively.


⁽³⁾	Includes consumer finance loans of $1.2 billion, $1.3 billion and $1.5 billion, consumer leases of $492 million, $351 million, and $0 million, consumer overdrafts of $175 million, $149 million and $152 million, and other non-U.S. consumer loans of $5 million, $5 million and $1.1 billion at September 30, 2013, June 30, 2013 and September 30, 2012, respectively.

⁽⁴⁾

Consumer loans accounted for under the fair value option were residential mortgage loans of $2.2 billion, $1.1 billion and $1.2 billion at September 30, 2013, June 30, 2013 and September 30, 2012, respectively. Commercial loans accounted for under the fair value option were U.S. commercial loans of $1.8 billion, $2.0 billion and $2.0 billion, and non-U.S. commercial loans of $6.2 billion, $6.4 billion and $4.4 billion at September 30, 2013, June 30, 2013 and September 30, 2012, respectively.


⁽⁵⁾	Includes U.S. small business commercial loans, including card-related products, of $13.1 billion, $12.4 billion and $12.6 billion at September 30, 2013, June 30, 2013 and September 30, 2012, respectively.


⁽⁶⁾	Includes U.S. commercial real estate loans of $43.5 billion, $40.3 billion and $36.0 billion, and non-U.S. commercial real estate loans of $1.4 billion, $1.8 billion and $1.6 billion at September 30, 2013, June 30, 2013 and September 30, 2012, 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)
	Third Quarter 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services		Global Banking		Global Markets		GWIM		All Other
Consumer
Residential mortgage	$	256,297	$	628	$	3,516	$	—	$	83	$	45,661	$	206,409
Home equity	98,172		146		84,761		—		108		11,719		1,438
U.S. credit card	90,005		90,005		—		—		—		—		—
Non-U.S. credit card	10,633		—		—		—		—		—		10,633
Direct/Indirect consumer	83,773		41,745		47		3		37		34,228		7,713
Other consumer	1,867		597		—		—		—		4		1,266
Total consumer	540,747		133,121		88,324		3		228		91,612		227,459

Commercial
U.S. commercial	221,542		31,356		81		128,602		35,771		19,465		6,267
Commercial real estate	43,164		1,218		1		39,172		887		1,488		398
Commercial lease financing	23,869		—		—		24,853		636		4		(1,624		)
Non-U.S. commercial	94,656		12		—		67,455		26,968		183		38
Total commercial	383,231		32,586		82		260,082		64,262		21,140		5,079
Total loans and leases	$	923,978	$	165,707	$	88,406	$	260,085	$	64,490	$	112,752	$	232,538

	Second Quarter 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services		Global Banking		Global Markets		GWIM		All Other
Consumer
Residential mortgage	$	257,275	$	564	$	2,254	$	—	$	86	$	43,234	$	211,137
Home equity	101,708		147		87,749		—		78		12,254		1,480
U.S. credit card	89,722		89,722		—		—		—		—		—
Non-U.S. credit card	10,613		—		—		—		—		—		10,613
Direct/Indirect consumer	82,485		40,186		50		4		24		33,390		8,831
Other consumer	1,756		421		—		5		—		7		1,323
Total consumer	543,559		131,040		90,053		9		188		88,885		233,384

Commercial
U.S. commercial	217,464		31,183		61		127,742		32,776		19,099		6,603
Commercial real estate	40,612		1,359		—		36,684		694		1,417		458
Commercial lease financing	23,579		—		—		24,584		618		4		(1,627		)
Non-U.S. commercial	89,020		11		—		66,655		22,078		184		92
Total commercial	370,675		32,553		61		255,665		56,166		20,704		5,526
Total loans and leases	$	914,234	$	163,593	$	90,114	$	255,674	$	56,354	$	109,589	$	238,910

	Third Quarter 2012
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services		Global Banking		Global Markets		GWIM		All Other
Consumer
Residential mortgage	$	261,337	$	391	$	1,221	$	—	$	92	$	38,788	$	220,845
Home equity	116,308		149		101,088		—		104		13,540		1,427
U.S. credit card	93,292		93,292		—		—		—		—		—
Non-U.S. credit card	13,329		—		—		—		—		—		13,329
Direct/Indirect consumer	82,635		42,300		78		5		35		29,935		10,282
Other consumer	2,654		149		—		6		—		8		2,491
Total consumer	569,555		136,281		102,387		11		231		82,271		248,374

Commercial
U.S. commercial	201,072		30,509		83		115,992		29,710		17,268		7,510
Commercial real estate	36,929		2,287		1		31,939		241		1,445		1,016
Commercial lease financing	21,545		—		—		23,214		13		4		(1,686		)
Non-U.S. commercial	59,758		15		1		50,029		8,769		28		916
Total commercial	319,304		32,811		85		221,174		38,733		18,745		7,756
Total loans and leases	$	888,859	$	169,092	$	102,472	$	221,185	$	38,964	$	101,016	$	256,130

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
	September 30 2013		June 30 2013		September 30 2012		September 30 2013			June 30 2013			September 30 2012
Diversified financials	$	80,219	$	77,827	$	62,783	$	122,314		$	115,066		$	96,651
Real estate ⁽⁴⁾	51,529		49,564		45,495		72,271			70,162			61,447
Retailing	32,593		31,051		27,373		54,516			51,906			46,414
Capital goods	27,053		26,737		23,764		51,637			50,699			48,285
Banking	43,350		42,395		35,740		49,920			49,730			39,637
Healthcare equipment and services	31,560		29,327		28,508		49,221			46,418			44,003
Government and public education	39,672		39,260		40,493		48,031			47,871			49,855
Materials	22,607		22,831		23,402		43,638			43,369			41,661
Energy	21,212		21,052		16,145		43,241			41,133			35,149
Consumer services	21,647		21,721		21,855		35,378			34,743			34,893
Food, beverage and tobacco	14,185		14,704		14,287		31,390			31,488			32,183
Commercial services and supplies	19,249		18,932		18,089		31,312			30,478			28,878
Utilities	9,799		8,811		8,186		25,068			23,660			22,844
Transportation	15,951		15,492		12,878		23,159			22,716			19,971
Media	12,897		13,249		11,406		22,194			21,824			20,676
Individuals and trusts	14,699		14,367		13,946		18,209			18,081			17,195
Pharmaceuticals and biotechnology	7,303		4,243		5,691		14,818			11,473			14,340
Software and services	7,543		6,389		4,550		14,312			13,417			10,410
Telecommunication services	4,543		3,871		4,024		14,244			10,588			10,018
Insurance, including monolines	5,875		5,880		8,384		12,165			12,315			14,024
Technology hardware and equipment	5,462		4,840		4,725		11,516			11,289			10,838
Consumer durables and apparel	5,103		5,404		4,140		9,479			9,942			8,312
Automobiles and components	3,258		3,263		2,937		8,390			8,262			7,360
Food and staples retailing	3,884		4,363		3,065		7,928			7,848			6,444
Religious and social organizations	5,492		5,895		7,184		7,677			7,824			9,711
Other	5,331		5,678		4,391		8,166			8,550			7,232
Total commercial credit exposure by industry	$	512,016	$	497,146	$	453,441	$	830,194		$	800,852		$	738,431
Net credit default protection purchased on total commitments ⁽⁵⁾							$	(11,204	)	$	(11,060	)	$	(17,164	)

⁽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 $47.3 billion, $50.5 billion and $60.0 billion at September 30, 2013, June 30, 2013 and September 30, 2012, respectively. Not reflected in utilized and committed exposure is additional derivative collateral held of $18.6 billion, $18.4 billion and $17.6 billion which consists primarily of other marketable securities at September 30, 2013, June 30, 2013 and September 30, 2012, 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, $8.4 billion and $6.4 billion and issued letters of credit at notional value of $577 million, $563 million and $697 million at September 30, 2013, June 30, 2013 and September 30, 2012, respectively. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $14.1 billion, $15.3 billion and $19.8 billion at September 30, 2013, June 30, 2013 and September 30, 2012, 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⁾

	September 30 2013		June 30 2013
Less than or equal to one year	29	%	25	%
Greater than one year and less than or equal to five years	69		73
Greater than five years	2		2
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)
	September 30, 2013					June 30, 2013
Ratings ^{(2, 3)}	Net Notional ⁽⁴⁾			Percent		Net Notional ⁽⁴⁾			Percent
AAA	$	(107	)	1.0	%	$	(107	)	1.0	%
AA	(231		)	2.1		(232		)	2.1
A	(4,464		)	39.8		(4,651		)	42.1
BBB	(4,565		)	40.7		(4,427		)	40.0
BB	(1,125		)	10.0		(1,039		)	9.4
B	(509		)	4.5		(559		)	5.1
CCC and below	(128		)	1.1		(146		)	1.3
NR ⁽⁵⁾	(75		)	0.8		101			(1.0	)
Total net credit default protection	$	(11,204	)	100.0	%	$	(11,060	)	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 any index positions held and any 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
(Dollars in millions)
	Funded Loans and Loan Equivalents ⁽¹⁾		Unfunded Loan Commitments		Net Counterparty Exposure ⁽²⁾		Securities/ Other Investments ⁽³⁾		Country Exposure at September 30 2013		Hedges and Credit Default Protection ⁽⁴⁾			Net Country Exposure at September 30 2013 ⁽⁵⁾		Increase (Decrease) from June 30 2013
United Kingdom	$	25,653	$	11,269	$	6,846	$	4,687	$	48,455	$	(3,532	)	$	44,923	$	2,048
Canada	6,277		7,144		1,482		4,639		19,542		(1,356		)	18,186		83
Brazil	8,596		603		325		4,126		13,650		(218		)	13,432		28
Germany	6,512		5,510		2,966		1,902		16,890		(3,830		)	13,060		(4		)
France	1,931		7,138		1,444		5,815		16,328		(3,951		)	12,377		(1,379		)
China	9,256		833		512		1,060		11,661		(538		)	11,123		(991		)
Australia	5,243		2,492		780		2,555		11,070		(528		)	10,542		328
India	7,218		577		387		2,355		10,537		(178		)	10,359		(1,031		)
Japan	4,366		473		902		4,029		9,770		(1,145		)	8,625		(1,582		)
Hong Kong	5,860		655		126		868		7,509		(205		)	7,304		396
South Korea	4,225		700		514		2,623		8,062		(1,338		)	6,724		(168		)
Russian Federation	6,335		408		186		336		7,265		(759		)	6,506		516
Italy	3,553		2,883		2,027		1,667		10,130		(4,005		)	6,125		921
Netherlands	3,269		2,724		712		1,064		7,769		(1,854		)	5,915		(2,236		)
Switzerland	2,121		3,127		661		612		6,521		(794		)	5,727		283
Singapore	3,319		201		139		1,814		5,473		(145		)	5,328		(339		)
Mexico	2,803		735		219		1,123		4,880		(510		)	4,370		(253		)
Taiwan	2,791		22		154		1,195		4,162		(31		)	4,131		461
Luxembourg	1,267		2,284		440		36		4,027		(442		)	3,585		1,777
Spain	2,724		1,004		114		614		4,456		(1,233		)	3,223		316
Total top 20 non-U.S. countries exposure	$	113,319	$	50,782	$	20,936	$	43,120	$	228,157	$	(26,592	)	$	201,565	$	(826	)


⁽¹⁾	Includes loans, leases and other extensions of credit and funds, including letters of credit and due from placements, which have not been reduced by collateral, hedges or credit default protection. Funded loans and loan equivalents are reported net of charge-offs but prior to any allowance for loan and lease losses.

⁽²⁾

Net counterparty exposure includes the fair value of derivatives, including the counterparty risk associated with credit default swaps, and secured financing transactions. Derivative exposures are presented net of $34.0 billion in collateral, which is predominantly cash, pledged under legally enforceable master netting agreements. Secured financing transaction exposures are presented net of eligible cash or securities pledged as collateral. The notional amount of reverse repurchase transactions was $102.0 billion. Counterparty exposure is not presented net of hedges or credit default protection.


⁽³⁾	Long securities exposures are netted on a single-name basis to, but not below, zero by short exposures and net credit default swaps purchased, consisting of single-name and net indexed and tranched credit default swaps.


⁽⁴⁾	Represents credit default protection purchased, net of credit default protection sold, which is used to mitigate the Corporation's risk to country exposures as listed, consisting of net single-name and net indexed and tranched credit default swaps. Amounts are calculated based on the credit default swaps notional amount assuming a zero recovery rate less any fair value receivable or payable.


⁽⁵⁾	Represents country exposure less hedges and credit default protection purchased, net of credit default protection sold.

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
Select 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 September 30 2013		Hedges and Credit Default Protection ⁽⁴⁾			Net Country Exposure at September 30 2013 ⁽⁵⁾			Increase (Decrease) from June 30 2013
Greece
Sovereign	$	—	$	—	$	—	$	38	$	38	$	—		$	38		$	7
Financial institutions	—		—		—		26		26		(30		)	(4		)	(5		)
Corporates	70		57		6		29		162		(17		)	145			(8		)
Total Greece	$	70	$	57	$	6	$	93	$	226	$	(47	)	$	179		$	(6	)
Ireland
Sovereign	$	24	$	—	$	21	$	7	$	52	$	(10	)	$	42		$	(108	)
Financial institutions	316		10		168		28		522		(5		)	517			(67		)
Corporates	402		303		83		60		848		(29		)	819			(34		)
Total Ireland	$	742	$	313	$	272	$	95	$	1,422	$	(44	)	$	1,378		$	(209	)
Italy
Sovereign	$	—	$	—	$	1,651	$	1,275	$	2,926	$	(1,829	)	$	1,097		$	754
Financial institutions	1,903		3		205		85		2,196		(874		)	1,322			(51		)
Corporates	1,650		2,880		171		307		5,008		(1,302		)	3,706			218
Total Italy	$	3,553	$	2,883	$	2,027	$	1,667	$	10,130	$	(4,005	)	$	6,125		$	921
Portugal
Sovereign	$	—	$	—	$	18	$	—	$	18	$	(37	)	$	(19	)	$	(24	)
Financial institutions	8		—		4		2		14		(59		)	(45		)	(7		)
Corporates	90		81		—		32		203		(215		)	(12		)	19
Total Portugal	$	98	$	81	$	22	$	34	$	235	$	(311	)	$	(76	)	$	(12	)
Spain
Sovereign	$	36	$	—	$	61	$	387	$	484	$	(66	)	$	418		$	280
Financial institutions	877		4		20		68		969		(282		)	687			(42		)
Corporates	1,811		1,000		33		159		3,003		(885		)	2,118			78
Total Spain	$	2,724	$	1,004	$	114	$	614	$	4,456	$	(1,233	)	$	3,223		$	316
Total
Sovereign	$	60	$	—	$	1,751	$	1,707	$	3,518	$	(1,942	)	$	1,576		$	909
Financial institutions	3,104		17		397		209		3,727		(1,250		)	2,477			(172		)
Corporates	4,023		4,321		293		587		9,224		(2,448		)	6,776			273
Total select European exposure	$	7,187	$	4,338	$	2,441	$	2,503	$	16,469	$	(5,640	)	$	10,829		$	1,010


⁽¹⁾	Includes loans, leases and other extensions of credit and funds, including letters of credit and due from placements, which have not been reduced by collateral, hedges or credit default protection. Funded loans and loan equivalents are reported net of charge-offs but prior to any allowance for loan and lease losses.

⁽²⁾

Net counterparty exposure includes the fair value of derivatives, including the counterparty risk associated with credit default swaps, and secured financing transactions. Derivative exposures are presented net of $1.7 billion in collateral, which is predominantly cash, pledged under legally enforceable master netting agreements. Secured financing transaction exposures are presented net of eligible cash or securities pledged as collateral. The notional amount of reverse repurchase transactions was $4.6 billion. Counterparty exposure is not presented net of hedges or credit default protection.


⁽³⁾	Long securities exposures are netted on a single-name basis to, but not below, zero by short exposures of $5.6 billion and net credit default swaps purchased of $652 million, consisting of $492 million of net single-name credit default swaps purchased and $160 million of net indexed and tranched credit default swaps sold.

⁽⁴⁾

Represents credit default protection purchased, net of credit default protection sold, which is used to mitigate the Corporation's risk to country exposures as listed, including $3.5 billion, consisting of $2.7 billion in net single-name credit default swaps purchased and $759 million in net indexed and tranched credit default swaps purchased, to hedge loans and securities, $2.0 billion in additional credit default protection purchased to hedge derivative assets and $166 million in other short exposures. Amounts are calculated based on the credit default swaps notional amount assuming a zero recovery rate less any fair value receivable or payable.


⁽⁵⁾	Represents country exposure less hedges and credit default protection purchased, net of credit default protection sold.

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)
	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012
Residential mortgage ⁽¹⁾	$	13,328		$	14,316		$	15,001		$	15,055		$	15,440
Home equity ⁽¹⁾	4,176			4,151			4,196			4,282			4,276
Direct/Indirect consumer	59			72			84			92			36
Other consumer	18			1			1			2			1
Total consumer	17,581			18,540			19,282			19,431			19,753
U.S. commercial	1,059			1,279			1,354			1,484			1,609
Commercial real estate	488			627			1,139			1,513			2,028
Commercial lease financing	49			10			19			44			33
Non-U.S. commercial	86			80			112			68			139
	1,682			1,996			2,624			3,109			3,809
U.S. small business commercial	103			107			110			115			139
Total commercial	1,785			2,103			2,734			3,224			3,948
Total nonperforming loans and leases	19,366			20,643			22,016			22,655			23,701
Foreclosed properties ⁽²⁾	662			637			826			900			1,224
Total nonperforming loans, leases and foreclosed properties ^{(3, 4, 5)}	$	20,028		$	21,280		$	22,842		$	23,555		$	24,925

Fully-insured home loans past due 30 days or more and still accruing	$	21,797		$	24,072		$	24,733		$	25,698		$	25,088
Consumer credit card past due 30 days or more and still accruing	2,376			2,487			2,847			3,151			3,283
Other loans past due 30 days or more and still accruing	5,512			5,587			6,147			6,692			6,700
Total loans past due 30 days or more and still accruing ^{(4, 6, 7)}	$	29,685		$	32,146		$	33,727		$	35,541		$	35,071

Fully-insured home loans past due 90 days or more and still accruing	$	17,960		$	20,604		$	21,617		$	22,157		$	21,817
Consumer credit card past due 90 days or more and still accruing	1,191			1,325			1,541			1,649			1,695
Other loans past due 90 days or more and still accruing	723			662			655			776			807
Total loans past due 90 days or more and still accruing ^{(4, 6, 7)}	$	19,874		$	22,591		$	23,813		$	24,582		$	24,319

Nonperforming loans, leases and foreclosed properties/Total assets ⁽⁸⁾	0.95		%	1.01		%	1.05		%	1.07		%	1.15		%
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties ⁽⁸⁾	2.17			2.33			2.53			2.62			2.81
Nonperforming loans and leases/Total loans and leases ⁽⁸⁾	2.10			2.26			2.44			2.52			2.68

Commercial utilized reservable criticized exposure ⁽⁹⁾	$	14,086		$	14,928		$	15,006		$	15,936		$	17,374
Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure ⁽⁹⁾	3.31		%	3.62		%	3.75		%	4.10		%	4.69		%
Total commercial utilized criticized exposure/Commercial utilized exposure ⁽⁹⁾	3.48			3.64			4.08			4.40			5.03

⁽¹⁾

During the fourth and third quarters of 2012, as a result of regulatory guidance, we changed the treatment of loans discharged in Chapter 7 bankruptcy to write down these loans to collateral value and classify as nonperforming. As a result of this change, we reclassified residential mortgage loans of $49 million, home equity loans of $5 million and direct/indirect consumer loans of $58 million to nonperforming as of December 31, 2012, and residential mortgage loans of $567 million and home equity loans of $483 million as of September 30, 2012.


⁽²⁾	Foreclosed property balances do not include loans that are insured by the Federal Housing Administration and have entered foreclosure of $1.6 billion, $1.6 billion, $2.3 billion, $2.5 billion and $2.4 billion at September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively.


⁽³⁾	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.


⁽⁴⁾	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.



⁽⁵⁾Balances do not include the following:	September 30 2013		June 30 2013		March 31 2013		December 31 2012		September 30 2012
Nonperforming loans held-for-sale	$	972	$	891	$	1,050	$	1,059	$	1,397
Nonperforming loans accounted for under the fair value option	467		398		412		401		458
Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010	356		485		512		521		540

⁽⁶⁾

Balances do not include loans held-for-sale past due 30 days or more and still accruing of $301 million, $374 million, $315 million, $518 million and $469 million at September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively, and loans held-for-sale past due 90 days or more and still accruing of $0, $17 million, $18 million, $130 million and $26 million at September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively. At September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, there were $153 million, $81 million, $83 million, $87 million and $103 million, respectively, of loans accounted for under the fair value option past due 30 days or more and still accruing interest.


⁽⁷⁾	These balances are excluded from total nonperforming loans, leases and foreclosed properties.


⁽⁸⁾	Total assets and total loans and leases do not include loans accounted for under the fair value option of $10.2 billion, $9.5 billion, $8.8 billion, $9.0 billion and $7.6 billion at September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively.


⁽⁹⁾	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)
	Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Nonperforming Consumer Loans and Leases:
Balance, beginning of period	$	18,540		$	19,282		$	19,431		$	19,753		$	19,121
Additions to nonperforming loans and leases:
New nonperforming loans and leases	2,503			2,289			2,661			3,211			3,306
Implementation of change in treatment of loans discharged in bankruptcies ⁽²⁾	n/a			n/a			n/a			112			1,050
Reductions to nonperforming loans and leases:
Paydowns and payoffs	(544		)	(695		)	(680		)	(968		)	(822		)
Sales	(624		)	(175		)	—			(47		)	—
Returns to performing status ⁽³⁾	(1,079		)	(1,139		)	(943		)	(1,076		)	(943		)
Charge-offs ⁽⁴⁾	(758		)	(932		)	(1,072		)	(1,439		)	(1,827		)
Transfers to foreclosed properties	(131		)	(90		)	(115		)	(115		)	(132		)
Transfers to loans held-for-sale	(326		)	—			—			—			—
Total net additions (reductions) to nonperforming loans and leases	(959		)	(742		)	(149		)	(322		)	632
Total nonperforming consumer loans and leases, end of period	17,581			18,540			19,282			19,431			19,753
Foreclosed properties	546			508			620			650			799
Nonperforming consumer loans, leases and foreclosed properties, end of period	$	18,127		$	19,048		$	19,902		$	20,081		$	20,552

Nonperforming Commercial Loans and Leases ⁽⁵⁾:
Balance, beginning of period	$	2,103		$	2,734		$	3,224		$	3,948		$	4,715
Additions to nonperforming loans and leases:
New nonperforming loans and leases	350			269			350			473			474
Advances	9			3			6			5			42
Reductions to nonperforming loans and leases:
Paydowns	(380		)	(312		)	(328		)	(445		)	(548		)
Sales	(88		)	(171		)	(147		)	(198		)	(113		)
Return to performing status ⁽⁶⁾	(91		)	(243		)	(167		)	(249		)	(262		)
Charge-offs	(104		)	(170		)	(177		)	(273		)	(221		)
Transfers to foreclosed properties	(14		)	(7		)	(21		)	(37		)	(93		)
Transfers to loans held-for-sale	—			—			(6		)	—			(46		)
Total net reductions to nonperforming loans and leases	(318		)	(631		)	(490		)	(724		)	(767		)
Total nonperforming commercial loans and leases, end of period	1,785			2,103			2,734			3,224			3,948
Foreclosed properties	116			129			206			250			425
Nonperforming commercial loans, leases and foreclosed properties, end of period	$	1,901		$	2,232		$	2,940		$	3,474		$	4,373


⁽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 fourth and third quarters of 2012, as a result of regulatory guidance, we changed the treatment of loans discharged in Chapter 7 bankruptcy to write down these loans to collateral value and classify as nonperforming.

⁽³⁾

Consumer loans and leases 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 restructuring and may only be returned to performing status after considering the borrower's sustained repayment performance for a reasonable period, generally six months.


⁽⁴⁾	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 accordingly are excluded from this table.


⁽⁵⁾	Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming.

⁽⁶⁾

Commercial loans and leases 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. Troubled debt restructurings are generally classified as performing after a sustained period of demonstrated payment performance.

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)
	Third Quarter 2013					Second Quarter 2013					First Quarter 2013					Fourth Quarter 2012				Third Quarter 2012
Net Charge-offs	Amount			Percent		Amount			Percent		Amount			Percent		Amount		Percent		Amount			Percent
Residential mortgage	$	221		0.35	%	$	271		0.43	%	$	383		0.60	%	$	729	1.14	%	$	720		1.10	%
Home equity	302			1.22		486			1.92		684			2.62		768		2.77		1,623			5.55
U.S. credit card	788			3.47		917			4.10		947			4.19		978		4.19		1,079			4.60
Non-U.S. credit card	89			3.32		104			3.93		112			4.14		119		3.62		124			3.70
Direct/Indirect consumer	62			0.30		86			0.42		124			0.61		195		0.94		161			0.78
Other consumer	65			13.81		51			11.57		52			12.76		64		15.78		63			9.53
Total consumer	1,527			1.12		1,915			1.42		2,302			1.70		2,853		2.04		3,770			2.64
U.S. commercial ⁽⁵⁾	68			0.13		43			0.09		45			0.09		27		0.05		55			0.12
Commercial real estate	11			0.11		44			0.43		93			0.96		84		0.88		91			0.97
Commercial lease financing	(8		)	(0.13	)	(5		)	(0.08	)	(10		)	(0.18	)	1		0.02		(12		)	(0.22	)
Non-U.S. commercial	(2		)	(0.01	)	16			0.08		(15		)	(0.08	)	17		0.12		9			0.06
	69			0.08		98			0.11		113			0.14		129		0.16		143			0.19
U.S. small business commercial	91			2.86		98			3.15		102			3.33		122		3.86		209			6.59
Total commercial	160			0.17		196			0.22		215			0.25		251		0.30		352			0.45
Total net charge-offs	$	1,687		0.73		$	2,111		0.94		$	2,517		1.14		$	3,104	1.40		$	4,122		1.86

By Business Segment
Consumer & Business Banking	$	1,027		2.46	%	$	1,158		2.84	%	$	1,241		3.03	%	$	1,383	3.29	%	$	1,539		3.62	%
Consumer Real Estate Services	281			1.28		465			2.09		660			2.91		732		3.05		1,567			6.15
Global Banking	35			0.05		78			0.12		68			0.12		132		0.23		76			0.14
Global Markets	—			—		(1		)	—		2			0.01		1		0.01		—			—
Global Wealth & Investment Management	26			0.09		51			0.19		61			0.23		91		0.35		97			0.38
All Other	318			0.54		360			0.60		485			0.80		765		1.23		843			1.31
Total net charge-offs	$	1,687		0.73		$	2,111		0.94		$	2,517		1.14		$	3,104	1.40		$	4,122		1.86

⁽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. Excluding the purchased credit-impaired loan portfolio, total annualized net charge-offs as a percentage of total average loans and leases outstanding were 0.75, 0.97, 1.18, 1.44 and 1.93 for the three months ended September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively.

⁽²⁾

Excludes write-offs of purchased credit-impaired loans of $443 million, $313 million, $839 million, $1.1 billion and $1.7 billion for the three months ended September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively. Including the write-offs of purchased credit-impaired loans, total annualized net charge-offs and purchased credit-impaired write-offs as a percentage of total average loans and leases outstanding were 0.92, 1.07, 1.52, 1.90 and 2.63 for the three months ended September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively.

⁽³⁾

During the three months ended September 30, 2012, the Corporation changed the treatment of loans discharged in 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
Year-to-Date Net Charge-offs and Net Charge-off Ratios ^{(1, 2)}
(Dollars in millions)
	Nine Months Ended September 30
	2013					2012
Net Charge-offs	Amount			Percent		Amount			Percent
Residential mortgage	$	875		0.46	%	$	2,382		1.20	%
Home equity	1,472			1.93		3,474			3.88
U.S. credit card	2,652			3.92		3,654			5.11
Non-U.S. credit card	305			3.80		462			4.50
Direct/Indirect consumer	272			0.44		568			0.89
Other consumer	168			12.74		168			8.62
Total consumer	5,744			1.41		10,708			2.46
U.S. commercial ⁽³⁾	156			0.10		215			0.16
Commercial real estate	148			0.48		300			1.06
Commercial lease financing	(23		)	(0.13	)	(7		)	(0.04	)
Non-U.S. commercial	(1		)	—		11			0.03
	280			0.11		519			0.23
U.S. small business commercial	291			3.11		577			5.98
Total commercial	571			0.21		1,096			0.47
Total net charge-offs	$	6,315		0.93		$	11,804		1.77

By Business Segment
Consumer & Business Banking	$	3,426		2.77	%	$	5,069		3.87	%
Consumer Real Estate Services	1,406			2.10		3,327			4.26
Global Banking	181			0.10		304			0.19
Global Markets	1			—		13			0.05
Global Wealth & Investment Management	138			0.17		279			0.38
All Other	1,163			0.65		2,812			1.43
Total net charge-offs	$	6,315		0.93		$	11,804		1.77

⁽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. Excluding the purchased credit-impaired loan portfolio, total annualized net charge-offs as a percentage of total average loans and leases outstanding were 0.96 and 1.83 for the nine months ended September 30, 2013 and 2012.

⁽²⁾

Excludes write-offs of purchased credit-impaired loans of $1.6 billion and $1.7 billion for the nine months ended September 30, 2013 and 2012. Including the write-offs of purchased credit-impaired loans, total annualized net charge-offs and purchased credit-impaired write-offs as a percentage of total average loans and leases outstanding were 1.17 and 2.02 for the nine months ended September 30, 2013 and 2012.


⁽³⁾	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)
	September 30, 2013						June 30, 2013						September 30, 2012
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	$	4,895	25.19	%	1.93	%	$	6,071	28.59	%	2.39	%	$	7,585	28.92	%	2.95	%
Home equity	5,618		28.91		5.81		6,325		29.79		6.32		8,949		34.11		7.96
U.S. credit card	4,296		22.11		4.76		4,468		21.04		4.94		4,898		18.67		5.26
Non-U.S. credit card	488		2.51		4.40		498		2.34		4.82		712		2.71		5.35
Direct/Indirect consumer	546		2.81		0.65		603		2.84		0.72		791		3.02		0.96
Other consumer	100		0.52		5.21		102		0.48		5.68		120		0.46		4.43
Total consumer	15,943		82.05		2.97		18,067		85.08		3.35		23,055		87.89		4.11
U.S. commercial ⁽²⁾	2,012		10.35		0.90		1,874		8.83		0.85		1,908		7.27		0.93
Commercial real estate	895		4.61		1.99		801		3.77		1.90		894		3.41		2.38
Commercial lease financing	98		0.50		0.40		87		0.41		0.37		81		0.31		0.35
Non-U.S. commercial	484		2.49		0.52		406		1.91		0.47		295		1.12		0.50
Total commercial ⁽³⁾	3,489		17.95		0.90		3,168		14.92		0.85		3,178		12.11		0.98
Allowance for loan and lease losses	19,432		100.00	%	2.10		21,235		100.00	%	2.33		26,233		100.00	%	2.96
Reserve for unfunded lending commitments	480						474						518
Allowance for credit losses	$	19,912					$	21,709					$	26,751

Asset Quality Indicators

Allowance for loan and lease losses/Total loans and leases ⁽⁴⁾			2.10	%					2.33	%					2.96	%
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)}			1.81						1.96						2.23
Allowance for loan and lease losses/Total nonperforming loans and leases⁽⁶⁾			100						103						111
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total nonperforming loans and leases ⁽⁵⁾			84						84						81
Ratio of the allowance for loan and lease losses/Annualized net charge-offs ⁽⁷⁾			2.90						2.51						1.60
Ratio of the allowance for loan and lease losses (excluding purchased credit-impaired loans)/Annualized net charge-offs ⁽⁵⁾			2.42						2.04						1.17
Ratio of the allowance for loan and lease losses/Annualized net charge-offs and purchased credit-impaired write-offs			2.30						2.18						1.13

⁽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 included residential mortgage loans of $2.2 billion, $1.1 billion and $1.2 billion at September 30, 2013, June 30, 2013 and September 30, 2012, respectively. Commercial loans accounted for under the fair value option included U.S. commercial loans of $1.8 billion, $2.0 billion and $2.0 billion and non-U.S. commercial loans of $6.2 billion, $6.4 billion and $4.4 billion at September 30, 2013, June 30, 2013 and September 30, 2012, respectively.


⁽²⁾	Includes allowance for loan and lease losses for U.S. small business commercial loans of $510 million, $584 million and $701 million at September 30, 2013, June 30, 2013 and September 30, 2012, respectively.


⁽³⁾	Includes allowance for loan and lease losses for impaired commercial loans of $286 million, $328 million and $556 million at September 30, 2013, June 30, 2013 and September 30, 2012, respectively.


⁽⁴⁾	Total loans and leases do not include loans accounted for under the fair value option of $10.2 billion, $9.5 billion and $7.6 billion at September 30, 2013, June 30, 2013 and September 30, 2012, respectively.


⁽⁵⁾	Excludes valuation allowance on purchased credit-impaired loans of $3.2 billion, $3.9 billion and $7.1 billion at September 30, 2013, June 30, 2013 and September 30, 2012, respectively.

⁽⁶⁾

Allowance for loan and lease losses includes $9.0 billion, $9.9 billion and $14.0 billion allocated to products (primarily the Consumer Lending portfolios within Consumer & Business Banking and purchased credit-impaired loans) that are excluded from nonperforming loans and leases at September 30, 2013, June 30, 2013 and September 30, 2012, respectively. Excluding these amounts, allowance for loan and lease losses as a percentage of total nonperforming loans and leases was 54 percent, 55 percent and 52 percent at September 30, 2013, June 30, 2013 and September 30, 2012, respectively.


⁽⁷⁾	Net charge-offs exclude $443 million, $313 million and $1.7 billion of write-offs in the purchased credit-impaired loan portfolio at September 30, 2013, June 30, 2013 and September 30, 2012. These write-offs decreased the purchased credit-impaired valuation allowance included as part of the allowance for loan and lease losses.

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. For purposes of this calculation, the Corporation uses the federal statutory tax rate of 35 percent. 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 measures 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. Tangible equity represents an adjusted shareholders' equity or common shareholders' equity amount which has been reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible common shareholders' equity measures the Corporation's earnings contribution as a percentage of adjusted average common shareholders' equity. Return on average tangible shareholders' equity measures the Corporation's earnings contribution as a percentage of adjusted average shareholders' equity. The tangible common equity ratio represents adjusted ending common shareholders' equity 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 adjusted ending shareholders' equity 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 adjusted ending common shareholders' equity 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.

Effective January 1, 2013, on a prospective basis, the Corporation adjusted the amount of capital being allocated to its business segments. The adjustment reflects a refinement to the prior-year methodology (economic capital) which focused solely on internal risk-based economic capital models. The refined methodology (allocated capital) now also considers the effect of regulatory capital requirements in addition to internal risk-based economic capital models. The Corporation's internal risk-based capital models use a risk-adjusted methodology incorporating each segment's credit, market, interest rate, business and operational risk components. The capital allocated to the Corporation's business segments is currently referred to as allocated capital and, prior to January 1, 2013, was referred to as economic capital, both of which represent non-GAAP financial measures. Allocated capital in the Corporation's business segments is subject to change over time.

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 nine months ended September 30, 2013 and 2012, and the three months ended September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012. 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.



	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012			Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis

Net interest income	$	31,479		$	30,332		$	10,266		$	10,549		$	10,664		$	10,324		$	9,938
Fully taxable-equivalent adjustment	646			670			213			222			211			231			229
Net interest income on a fully taxable-equivalent basis	$	32,125		$	31,002		$	10,479		$	10,771		$	10,875		$	10,555		$	10,167

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	$	67,454		$	64,674		$	21,530		$	22,727		$	23,197		$	18,660		$	20,428
Fully taxable-equivalent adjustment	646			670			213			222			211			231			229
Total revenue, net of interest expense on a fully taxable-equivalent basis	$	68,100		$	65,344		$	21,743		$	22,949		$	23,408		$	18,891		$	20,657

Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis

Income tax expense (benefit)	$	4,335		$	1,520		$	2,348		$	1,486		$	501		$	(2,636	)	$	770
Fully taxable-equivalent adjustment	646			670			213			222			211			231			229
Income tax expense (benefit) on a fully taxable-equivalent basis	$	4,981		$	2,190		$	2,561		$	1,708		$	712		$	(2,405	)	$	999

Reconciliation of average common shareholders' equity to average tangible common shareholders' equity

Common shareholders' equity	$	217,922		$	216,073		$	216,766		$	218,790		$	218,225		$	219,744		$	217,273
Goodwill	(69,926		)	(69,973		)	(69,903		)	(69,930		)	(69,945		)	(69,976		)	(69,976		)
Intangible assets (excluding mortgage servicing rights)	(6,269		)	(7,531		)	(5,993		)	(6,270		)	(6,549		)	(6,874		)	(7,194		)
Related deferred tax liabilities	2,360			2,627			2,296			2,360			2,425			2,490			2,556
Tangible common shareholders' equity	$	144,087		$	141,196		$	143,166		$	144,950		$	144,156		$	145,384		$	142,659

Reconciliation of average shareholders' equity to average tangible shareholders' equity

Shareholders' equity	$	234,126		$	234,726		$	230,392		$	235,063		$	236,995		$	238,512		$	236,039
Goodwill	(69,926		)	(69,973		)	(69,903		)	(69,930		)	(69,945		)	(69,976		)	(69,976		)
Intangible assets (excluding mortgage servicing rights)	(6,269		)	(7,531		)	(5,993		)	(6,270		)	(6,549		)	(6,874		)	(7,194		)
Related deferred tax liabilities	2,360			2,627			2,296			2,360			2,425			2,490			2,556
Tangible shareholders' equity	$	160,291		$	159,849		$	156,792		$	161,223		$	162,926		$	164,152		$	161,425

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)
	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012			Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Reconciliation of period-end common shareholders' equity to period-end tangible common shareholders' equity

Common shareholders' equity	$	218,967		$	219,838		$	218,967		$	216,791		$	218,513		$	218,188		$	219,838
Goodwill	(69,891		)	(69,976		)	(69,891		)	(69,930		)	(69,930		)	(69,976		)	(69,976		)
Intangible assets (excluding mortgage servicing rights)	(5,843		)	(7,030		)	(5,843		)	(6,104		)	(6,379		)	(6,684		)	(7,030		)
Related deferred tax liabilities	2,231			2,494			2,231			2,297			2,363			2,428			2,494
Tangible common shareholders' equity	$	145,464		$	145,326		$	145,464		$	143,054		$	144,567		$	143,956		$	145,326

Reconciliation of period-end shareholders' equity to period-end tangible shareholders' equity

Shareholders' equity	$	232,282		$	238,606		$	232,282		$	231,032		$	237,293		$	236,956		$	238,606
Goodwill	(69,891		)	(69,976		)	(69,891		)	(69,930		)	(69,930		)	(69,976		)	(69,976		)
Intangible assets (excluding mortgage servicing rights)	(5,843		)	(7,030		)	(5,843		)	(6,104		)	(6,379		)	(6,684		)	(7,030		)
Related deferred tax liabilities	2,231			2,494			2,231			2,297			2,363			2,428			2,494
Tangible shareholders' equity	$	158,779		$	164,094		$	158,779		$	157,295		$	163,347		$	162,724		$	164,094

Reconciliation of period-end assets to period-end tangible assets

Assets	$	2,126,653		$	2,166,162		$	2,126,653		$	2,123,320		$	2,174,819		$	2,209,974		$	2,166,162
Goodwill	(69,891		)	(69,976		)	(69,891		)	(69,930		)	(69,930		)	(69,976		)	(69,976		)
Intangible assets (excluding mortgage servicing rights)	(5,843		)	(7,030		)	(5,843		)	(6,104		)	(6,379		)	(6,684		)	(7,030		)
Related deferred tax liabilities	2,231			2,494			2,231			2,297			2,363			2,428			2,494
Tangible assets	$	2,053,150		$	2,091,650		$	2,053,150		$	2,049,583		$	2,100,873		$	2,135,742		$	2,091,650

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)
	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
	2013			2012			Third Quarter 2013			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012
Reconciliation of return on average allocated capital/economic capital ⁽¹⁾

Consumer & Business Banking

Reported net income	$	4,621		$	4,101		$	1,779		$	1,395		$	1,447		$	1,446		$	1,351
Adjustment related to intangibles ⁽²⁾	6			10			2			2			2			3			3
Adjusted net income	$	4,627		$	4,111		$	1,781		$	1,397		$	1,449		$	1,449		$	1,354

Average allocated equity ⁽³⁾	$	62,058		$	56,059		$	62,032		$	62,058		$	62,083		$	56,673		$	56,413
Adjustment related to goodwill and a percentage of intangibles	(32,058		)	(32,179		)	(32,032		)	(32,058		)	(32,083		)	(32,112		)	(32,142		)
Average allocated capital/economic capital	$	30,000		$	23,880		$	30,000		$	30,000		$	30,000		$	24,561		$	24,271

Global Banking

Reported net income	$	3,707		$	3,952		$	1,134		$	1,292		$	1,281		$	1,392		$	1,151
Adjustment related to intangibles ⁽²⁾	2			3			1			—			1			1			1
Adjusted net income	$	3,709		$	3,955		$	1,135		$	1,292		$	1,282		$	1,393		$	1,152

Average allocated equity ⁽³⁾	$	45,412		$	41,807		$	45,413		$	45,416		$	45,407		$	41,546		$	42,066
Adjustment related to goodwill and a percentage of intangibles	(22,412		)	(22,431		)	(22,413		)	(22,416		)	(22,407		)	(22,423		)	(22,427		)
Average allocated capital/economic capital	$	23,000		$	19,376		$	23,000		$	23,000		$	23,000		$	19,123		$	19,639

Global Markets

Reported net income (loss)	$	1,348		$	1,048		$	(778	)	$	958		$	1,168		$	181		$	(276	)
Adjustment related to intangibles ⁽²⁾	6			7			2			2			2			2			2
Adjusted net income (loss)	$	1,354		$	1,055		$	(776	)	$	960		$	1,170		$	183		$	(274	)

Average allocated equity ⁽³⁾	$	35,371		$	19,069		$	35,369		$	35,372		$	35,372		$	19,562		$	18,796
Adjustment related to goodwill and a percentage of intangibles	(5,371		)	(5,366		)	(5,369		)	(5,372		)	(5,372		)	(5,378		)	(5,382		)
Average allocated capital/economic capital	$	30,000		$	13,703		$	30,000		$	30,000		$	30,000		$	14,184		$	13,414

Global Wealth & Investment Management

Reported net income	$	2,197		$	1,669		$	719		$	758		$	720		$	576		$	571
Adjustment related to intangibles ⁽²⁾	13			18			4			5			4			5			6
Adjusted net income	$	2,210		$	1,687		$	723		$	763		$	724		$	581		$	577

Average allocated equity ⁽³⁾	$	20,302		$	17,473		$	20,283		$	20,300		$	20,323		$	18,489		$	18,199
Adjustment related to goodwill and a percentage of intangibles	(10,302		)	(10,380		)	(10,283		)	(10,300		)	(10,323		)	(10,340		)	(10,359		)
Average allocated capital/economic capital	$	10,000		$	7,093		$	10,000		$	10,000		$	10,000		$	8,149		$	7,840

For footnotes 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)
	Nine Months Ended September 30						Third Quarter 2013			Second Quarter 2013			Third Quarter 2012
	2013			2012			Third Quarter 2013			Second Quarter 2013			Third Quarter 2012
Consumer & Business Banking

Deposits

Reported net income	$	1,454		$	928		$	572		$	484		$	291
Adjustment related to intangibles ⁽²⁾	—			1			—			—			—
Adjusted net income	$	1,454		$	929		$	572		$	484		$	291

Average allocated equity ⁽³⁾	$	35,403		$	32,847		$	35,398		$	35,402		$	33,454
Adjustment related to goodwill and a percentage of intangibles	(20,003		)	(20,024		)	(19,998		)	(20,002		)	(20,018		)
Average allocated capital/economic capital	$	15,400		$	12,823		$	15,400		$	15,400		$	13,436

Consumer Lending

Reported net income	$	3,167		$	3,173		$	1,207		$	911		$	1,060
Adjustment related to intangibles ⁽²⁾	6			9			2			2			3
Adjusted net income	$	3,173		$	3,182		$	1,209		$	913		$	1,063

Average allocated equity ⁽³⁾	$	26,655		$	23,212		$	26,634		$	26,655		$	22,959
Adjustment related to goodwill and a percentage of intangibles	(12,055		)	(12,155		)	(12,034		)	(12,055		)	(12,124		)
Average allocated capital/economic capital	$	14,600		$	11,057		$	14,600		$	14,600		$	10,835


⁽¹⁾	There are no adjustments to reported net income (loss) or average allocated equity for Consumer Real Estate Services.


⁽²⁾	Represents cost of funds, earnings credits and certain expenses related to intangibles.


⁽³⁾	Average allocated equity is comprised of average allocated capital (or economic capital prior to 2013) plus capital for the portion of goodwill and intangibles specifically assigned to the business segment.

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