EX-99.(B) 3 bac-exhibit99b042814.htm EXHIBIT BAC-Exhibit 99(b) 04.28.14


Bank of America Corporation and Subsidiaries
Capital Management
(Dollars in millions)
 
Basel 3 Transition
 
 
Basel 1
 
March 31
2014
 
 
December 31
2013
 
September 30
2013
 
June 30
2013
 
March 31
2013
Risk-based capital metrics (1, 2):
 
 
 
 
 
 
 
 
 
 
Common equity tier 1 capital (3)
$
150,922

 
 
n/a

 
n/a

 
n/a

 
n/a

Tier 1 common capital
n/a

 
 
$
141,522

 
$
139,410

 
$
136,546

 
$
133,298

Tier 1 capital
152,936

 
 
157,742

 
155,593

 
153,716

 
155,856

Total capital
190,124

 
 
196,567

 
194,585

 
193,779

 
198,391

Risk-weighted assets (3)
1,282,117

 
 
1,297,593

 
1,289,501

 
1,288,207

 
1,298,234

Common equity tier 1 capital ratio
11.8
%
 
 
n/a

 
n/a

 
n/a

 
n/a

Tier 1 common capital ratio (4)
n/a

 
 
10.9
%
 
10.8
%
 
10.6
%
 
10.3
%
Tier 1 capital ratio
11.9

 
 
12.2

 
12.1

 
11.9

 
12.0

Total capital ratio
14.8

 
 
15.1

 
15.1

 
15.0

 
15.3

Tier 1 leverage ratio
7.4

 
 
7.7

 
7.6

 
7.4

 
7.4

 
 
 
 
 
 
 
 
 
 
 
(1) 
Regulatory capital ratios are preliminary until filed with the Federal Reserve on Form Y-9C.
(2) 
On January 1, 2014, the Basel 3 rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting common equity tier 1 capital and Tier 1 capital. The Corporation reported under Basel 1 (which included the Market Risk Final Rules) for 2013.
(3) 
On a pro-forma basis, under the transition provisions for the Basel 3 Standardized approach (Basel 3 Standardized transition), fourth quarter 2013 common equity tier 1 capital and risk-weighted assets would have been $152,743 million and $1,315,949 million.
(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.

n/a = not applicable


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




Bank of America Corporation and Subsidiaries
 
 
 
 
 
 
 
 
 
Regulatory Capital Reconciliations (1, 2)
 
 
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
December 31
2013
 
September 30
2013
 
June 30
2013
 
March 31
2013
Regulatory capital – Basel 1 to Basel 3 (fully phased-in)
 
 
 
 
 
 
 
 
 
Basel 1 Tier 1 capital
 
 
$
157,742

 
$
155,593

 
$
153,716

 
$
155,856

Deduction of qualifying preferred stock and trust preferred securities
 
 
(16,220
)
 
(16,183
)
 
(17,170
)
 
(22,558
)
Basel 1 Tier 1 common capital
 
 
141,522

 
139,410

 
136,546

 
133,298

Deduction of defined benefit pension assets
 
 
(829
)
 
(935
)
 
(787
)
 
(776
)
Deferred tax assets and threshold deductions (deferred tax asset temporary differences, MSRs and significant investments)
 
 
(5,459
)
 
(5,361
)
 
(7,465
)
 
(5,161
)
Net unrealized losses in accumulated OCI on AFS debt and certain marketable equity securities, and employee benefit plans
 
 
(5,664
)
 
(3,806
)
 
(4,557
)
 
(373
)
Other deductions, net
 
 
(1,624
)
 
(1,514
)
 
(1,568
)
 
(1,658
)
Basel 3 common equity tier 1 capital (fully phased-in)
 
 
$
127,946

 
$
127,794

 
$
122,169

 
$
125,330

 
 
 
 
 
 
 
 
 
 
 
March 31
2014
 
 
 
 
 
 
 
 
Regulatory capital – Basel 3 transition to fully phased-in
 
 
 
 
 
 
 
 
 
Common equity tier 1 capital (transition)
$
150,922

 
 
 
 
 
 
 
 
Adjustments and deductions recognized in Tier 1 capital during transition
(11,302
)
 
 
 
 
 
 
 
 
Other adjustments and deductions phased in during transition
(9,474
)
 
 
 
 
 
 
 
 
Common equity tier 1 capital (fully phased-in)
$
130,146

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31
2014
 
December 31
2013
 
September 30
2013
 
June 30
2013
 
March 31
2013
Risk-weighted assets – As reported to Basel 3 (fully phased-in)
 
 
 
 
 
 
 
 
 
As reported risk weighted assets
$
1,282,117

 
$
1,297,593

 
$
1,289,501

 
$
1,288,207

 
$
1,298,234

Change in risk-weighted assets from reported to fully phased-in
165,332

 
162,731

 
 
 
 
 
 
Basel 3 Standardized approach risk-weighted assets (fully phased-in)
1,447,449

 
1,460,324

 
 
 
 
 
 
Change in risk-weighted assets for advanced models
(86,234
)
 
(133,027
)
 
35,476

 
20,841

 
54,094

Basel 3 Advanced approaches risk-weighted assets (fully phased-in)
$
1,361,215

 
$
1,327,297

 
$
1,324,977

 
$
1,309,048

 
$
1,352,328

 
 
 
 
 
 
 
 
 
 
Regulatory capital ratios
 
 
 
 
 
 
 
 
 
Basel 1 Tier 1 common
n/a

 
10.9
%
 
10.8
%
 
10.6
%
 
10.3
%
Basel 3 Standardized approach common equity tier 1 (transition)
11.8
%
 
n/a

 
n/a

 
n/a

 
n/a

Basel 3 Standardized approach common equity tier 1 (fully phased-in)
9.0

 
8.8

 
n/a

 
n/a

 
n/a

Basel 3 Advanced approaches common equity tier 1 (fully phased-in)
9.6

 
9.6

 
9.7

 
9.3

 
9.3

 
 
 
 
 
 
 
 
 
 
(1) 
Based on the Basel 3 Advanced approaches, assuming all regulatory model approvals, except for the potential reduction to risk-weighted assets resulting from the removal of the Comprehensive Risk Measure surcharge.
(2) 
On January 1, 2014, the Basel 3 rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting common equity tier 1 capital and Tier 1 capital. The Corporation reported under Basel 1 (which included the Market Risk Final Rules) for 2013.

n/a = not applicable


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