Bank of America Reports Record Quarterly Earnings of $7.3 Billion, EPS $0.70 Full-Year Earnings of $28.1 Billion, EPS $2.61; 16 Consecutive Quarters of Positive Operating Leverage Q4-18 Financial Highlights1 Q4-18 Business Segment Highlights1,3 • Net income of $7.3 billion rose 208% (39% Consumer Banking • Net income rose 52% to $3.3 billion 2 adjusting for the impact of the Tax Act in 2017) , • Loans up 5% to $290 billion driven by continued strong operating leverage • Deposits up 3% to $687 billion and asset quality, as well as the benefit of tax reform impacting 2018 • Full-year Merrill Edge brokerage client flows of $25 billion • Diluted earnings per share of $0.70 rose 250% (49% on an adjusted basis)2 • Efficiency ratio improved to 45% • Pretax income of $8.7 billion rose 41% (22% on • 26.4 million mobile banking users, up 9% an adjusted basis)2 • Consumer payments $721 billion, up 7% • Revenue, net of interest expense, increased 11% Global Wealth and Investment • Net income rose 43% to $1.1 billion (6% on an adjusted basis)2 to $22.7 billion, led Management • Pretax margin increased to 29% by net interest income (NII), reflecting benefits from higher interest rates as well as loan and • Full-year client balance flows of $56 deposit growth(A) billion • Net interest yield (FTE basis) of 2.48%, up 9 • Loans increased 4% to $164 billion (A) bps • 2018 organic growth in net new ML • Provision for credit losses decreased $96 million households more than 4 times 2017 to $905 million Global Banking • Net income rose 25% to $2.1 billion – Net charge-off ratio declined to 0.39% • Firmwide investment banking fees of • Noninterest expense declined $141 million, or $1.3• billion (excludes self-led) 1%, to $13.1 billion; efficiency ratio improved to • Loans increased 2% to $357 billion 58% • Deposits increased 9% to $360 billion • Average loan and lease balances in business • segments rose $25 billion, or 3%, to $881 billion Efficiency ratio remained low at 42% – Loans to consumers up 4% and commercial Global Markets • Net income rose 20% to $493 million up 2% • Sales and trading revenue of $2.6 billion, • Average deposit balances rose $51 billion, or 4%, including net debit valuation adjustment to $1.3 trillion (DVA) gains of $52 million • Excluding net DVA, sales and trading • Repurchased $20.1 billion in common stock and (B) paid $5.4 billion in common dividends during revenue down 6% to $2.5 billion 2018 – Equities up 11% to $1.1 billion(B) – FICC down 15% to $1.4 billion(B) Q4-18 Financial Highlights Q4-18 Reported vs. ($ in billions, except per share data) Q4-18 vs. Q4-17 Reported Q4-17 Excl. Tax Act Excl. Tax Act Q4-18 Q4-17 % Inc / (Dec) Q4-172,4 % Inc / (Dec) Total revenue, net of interest expense $22.7 $20.4 11% $21.4 6% Pretax income 8.7 6.2 41 7.1 22 Net income 7.3 2.4 208 5.3 39 Diluted earnings per share $0.70 $0.20 250 $0.47 49 Return on average assets 1.24% 0.41% 0.90% Return on average common shareholders’ equity 11.6 3.3 7.8 Return on average tangible common shareholders’ equity4 16.3 4.6 10.9 Efficiency ratio 58 65 62 See page 11 for endnotes. 1 Financial Highlights and Business Segment Highlights compare to the year-ago quarter unless noted. Loan and deposit balances are shown on an average basis unless noted. 2 On December 22, 2017, the Tax Cuts and Jobs Act (the Tax Act) was enacted, which included a lower U.S. corporate tax rate effective in 2018. The Tax Act reduced Q4-17 net income by $2.9 billion, or $0.27 per diluted common share, which included a $0.9 billion pretax charge in other noninterest income predominantly related to the revaluation of certain tax-advantaged energy investments, as well as $1.9 billion of tax expense principally associated with the revaluation of certain deferred tax assets and liabilities. Adjusted net income, diluted earnings per share, pretax income and revenue are non-GAAP financial measures and exclude the Q4-17 impact of the enactment of the Tax Act. 3 The Corporation reports the results of operations of its four business segments and All Other on a fully-taxable equivalent (FTE) basis. 4 Represents a non-GAAP financial measure. For additional information (including reconciliation information), see endnotes C and D on page 11 and page 19. 1
Full-Year Financial Highlights FY 2018 Reported vs. ($ in billions, except per share data) FY 2018 vs. FY 2017 Reported FY 2017 Excl. Tax Act Excl. Tax Act FY 2018 FY 2017 % Inc / (Dec) FY 20171,2 % Inc / (Dec) Total revenue, net of interest expense $91.2 $87.4 4% $88.3 3% Pretax income 34.6 29.2 18 30.2 15 Net income 28.1 18.2 54 21.1 33 Diluted earnings per share $2.61 $1.56 67 $1.83 43 Return on average assets 1.21% 0.80% 0.93% Return on average common shareholders’ equity 11.0 6.7 7.9 Return on average tangible common shareholders’ equity2 15.5 9.4 11.0 Efficiency ratio 59 63 62 CEO Commentary “I am proud of our teammates who produced record earnings for the quarter and the year by driving responsible growth. Our teammates worked for our customers and delivered solid loan and deposit growth, and other activity, while managing risk well. Operating leverage based on disciplined expense management while investing in our future, solid asset quality, and loan and deposit growth drove this quarter’s results. In addition to lending and investing activities, we shared success in many ways: returning nearly $26 billion in capital to our shareholders; a second bonus since U.S. tax reform passed last year, impacting 95% of our teammates, to share success from our performance and the benefits of tax reduction; and more than $200 million of philanthropic giving to our communities. “Through the trillions of dollars of consumer transactions we process and from the steady confidence and activity of our small business and commercial clients, we see a healthy consumer and business climate driving a solid economy. Each of our businesses faces opportunities to grow even more. We are well positioned to serve clients, teammates, and communities by listening to their answer when we ask them: ‘What would you like the power to do?’” — Brian Moynihan, Chairman and Chief Executive Officer CFO Commentary “We have now seen 16 consecutive quarters of positive operating leverage, enabled by responsible growth. Our net income grew robustly and our EPS grew faster as we invested part of our profits in share repurchases. We significantly improved our returns in the fourth quarter, with a 1.24% return on average assets and a 16.3% return on average tangible common shareholders’ equity. Each line of business contributed to these results. With a strong balance sheet, we’re ready to deliver again in 2019.” — Paul Donofrio, Chief Financial Officer 1 On December 22, 2017, the Tax Act was enacted, which included a lower U.S. corporate tax rate effective in 2018. The Tax Act reduced 2017 net income by $2.9 billion, or $0.27 per diluted common share, which included a $0.9 billion pretax charge in other noninterest income predominantly related to the revaluation of certain tax-advantaged energy investments, as well as $1.9 billion of tax expense principally associated with the revaluation of certain deferred tax assets and liabilities. 2 Represents a non-GAAP financial measure. For additional information (including reconciliation information), see endnotes C and D on page 11 and page 19. . 2
Consumer Banking Three months ended Financial Results1 ($ in millions) 12/31/2018 9/30/2018 12/31/2017 2 • Net income of $3.3 billion, up $1.1 billion or 52% Total revenue $9,877 $9,403 $8,955 Provision for credit losses 915 870 886 • Revenue increased $922 million, or 10%, to $9.9 billion. NII increased $777 million, or 12%, driven by Noninterest expense 4,483 4,354 4,509 higher interest rates and deposit and loan growth. Pretax income 4,479 4,179 3,560 Noninterest income included higher card income and Income tax expense 1,141 1,066 1,364 service charges Net income $3,338 $3,113 $2,196 • Provision for credit losses increased $29 million to 1 Comparisons are to the year-ago quarter unless noted. $915 million 2 Revenue, net of interest expense. Tax expense compared to prior year impacted by a lower U.S. corporate tax rate. – Net charge-offs increased due to credit card portfolio seasoning and loan growth – Net charge-off ratio was 1.22% compared to 1.21% • Noninterest expense decreased $26 million, or 1%, to $4.5 billion as investments for business growth were more than offset by improved productivity and lower FDIC expense Three months ended Business Highlights1,2 ($ in billions) 12/31/2018 9/30/2018 12/31/2017 • Average deposits grew $21 billion, or 3%; average Average deposits $686.8 $687.5 $665.5 loans grew $14 billion, or 5% Average loans and leases 289.9 285.0 275.7 • Merrill Edge brokerage assets grew $9 billion, or 5%, Brokerage assets (EOP) 185.9 203.9 177.0 to $186 billion, as $25 billion in client flows more Active mobile banking users 26.4 25.9 24.2 than offset lower market valuations (MM) • Combined credit/debit card spending up 6% Number of financial centers 4,341 4,385 4,477 • Digital usage continued to grow Efficiency ratio 45% 46% 50% – 26.4 million active mobile banking users, up 9% Return on average allocated 36 33 24 capital – Digital sales were 27% of all Consumer Banking 2 sales Total U.S. Consumer Credit Card – Mobile channel usage up 16% Average credit card $95.8 $94.7 $93.5 outstanding balances – 51.6 million person-to-person payments through Zelle®, more than double the year-ago quarter Total credit/debit spend 151.9 146.4 143.4 • Efficiency ratio improved to 45% from 50% Risk-adjusted margin 8.8% 8.2% 8.7% 1 Comparisons are to the year-ago quarter unless noted. 2 The U.S. consumer credit card portfolio includes Consumer Banking and GWIM. 3
Global Wealth and Investment Management Three months ended Financial Results1 ($ in millions) 12/31/2018 9/30/2018 12/31/2017 2 • Record net income of $1.1 billion, up $318 million or Total revenue $4,990 $4,783 $4,683 43% Provision for credit losses 23 13 6 • Revenue increased $307 million, or 7%, primarily Noninterest expense 3,542 3,414 3,470 driven by higher net interest income and higher asset Pretax income 1,425 1,356 1,207 management fees as well as a small gain on sale of a non-core asset, partially offset by lower transactional Income tax expense 363 346 463 revenue Net income $1,062 $1,010 $744 1 Comparisons are to the year-ago quarter unless noted. • Noninterest expense increased 2% as higher revenue- 2 Revenue, net of interest expense. Tax expense compared to prior year impacted by a lower related incentives, as well as investments for U.S. corporate tax rate. business growth, were partially offset by continued expense discipline Three months ended Business Highlights1 ($ in billions) 12/31/2018 9/30/2018 12/31/2017 • Total client balances decreased $131 billion, or 5%, Average deposits $247.4 $238.3 $240.1 to $2.6 trillion, as positive client flows of $56 billion Average loans and leases 163.5 161.9 157.1 were more than offset by impact of lower market Total client balances (EOP) 2,620.9 2,841.4 2,751.9 valuations AUM flows (6.2) 7.6 18.2 • Average loans and leases grew $6 billion, or 4%, driven by mortgages and custom lending Pretax margin 29% 28% 26% Return on average allocated 29 28 21 • Pretax margin improved to 29% capital 2 • Wealth advisors up 1% to 19,459 1 Comparisons are to the year-ago quarter unless noted. 2 Includes financial advisors in Consumer Banking of 2,722 and 2,402 in Q4-18 and Q4-17. • Accelerated organic wealth management household growth – Net new Merrill Lynch relationships up more than 4 times the 2017 level – U.S. Trust new relationships up 9% in 2018 4
Global Banking Three months ended Financial Results1 ($ in millions) 12/31/2018 9/30/2018 12/31/2017 • Record net income of $2.1 billion, up $426 million or Total revenue2,3 $5,050 $4,738 $5,019 25% Provision for credit losses 85 (70) 132 • Record revenue of $5.1 billion, up $31 million or 1% Noninterest expense 2,119 2,121 2,161 - Reflects higher NII from the benefit of higher Pretax income 2,846 2,687 2,726 interest rates and growth in deposits Income tax expense 740 699 1,046 - Noninterest income includes lower investment banking fees Net income $2,106 $1,988 $1,680 1 Comparisons are to the year-ago quarter unless noted. • Provision improved to $85 million, primarily driven by 2 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities, and sales and trading activities. the absence of the prior year's single-name non-U.S. 3 2 Revenue, net of interest expense. Tax expense compared to prior year impacted by a lower commercial charge-off U.S. corporate tax rate. • Noninterest expense fell 2%, primarily due to lower FDIC expense, partially offset by continued investment in the business Three months ended Business Highlights1,2 ($ in billions) 12/31/2018 9/30/2018 12/31/2017 • Average deposits increased $30 billion, or 9%, to Average deposits $359.6 $337.7 $329.8 $360 billion Average loans and leases 357.4 352.7 350.3 • Average loans and leases grew $7 billion, or 2%, to Total Corp. IB fees (excl. self- 1.3 1.2 1.4 2 $357 billion led) 2 • Total firmwide investment banking fees (excluding Global Banking IB fees 0.8 0.6 0.8 self-led deals) decreased 5% to $1.3 billion, driven Business Lending revenue 2.2 2.1 2.3 primarily by lower debt underwriting and advisory Global Transaction Services 2.1 2.0 1.9 fees revenue • Efficiency ratio remained low at 42% Efficiency ratio 42% 45% 43% Return on average allocated 20 19 17 capital 1 Comparisons are to the year-ago quarter unless noted. 2 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities, and sales and trading activities. 5
Global Markets Three months ended Financial Results1 ($ in millions) 12/31/2018 9/30/2018 12/31/2017 2,3 • Net income of $493 million, up $83 million or 20% Total revenue $3,213 $3,843 $3,396 Net DVA4 52 (99) (118) • Revenue of $3.2 billion, down $183 million or 5%; excluding net DVA, revenue decreased 10%4 Total revenue $3,161 $3,942 $3,514 (excl. net DVA)2,3,4 - Reflects sales and trading revenue decline of 6% (ex-DVA), the absence of a prior-year gain on the Provision for credit losses 6 (2) 162 sale of a non-core asset and lower investment Noninterest expense 2,540 2,613 2,614 banking fees Pretax income 667 1,232 620 • Provision improved to $6 million, driven by the Income tax expense 174 320 210 absence of the prior year’s single-name non-U.S. Net income $493 $912 $410 commercial charge-off2 Net income (excl. net $453 $987 $483 • Noninterest expense decreased $74 million, or 3%, to DVA)4 $2.5 billion driven by lower revenue-related expenses 1 Comparisons are to the year-ago quarter unless noted. 2 5 Global Banking and Global Markets share in certain deal economics from investment banking, • Average VaR of $36 million remained low loan origination activities, and sales and trading activities. 3 Revenue, net of interest expense. Tax expense compared to prior year impacted by a lower U.S. corporate tax rate. 4 Revenue and net income, excluding net DVA, are non-GAAP financial measures. See endnote B for more information. 5 VaR model uses a historical simulation approach based on three years of historical data and an expected shortfall methodology equivalent to a 99% confidence level. Average VaR was $36MM, $31MM and $36MM for Q4-18, Q3-18 and Q4-17, respectively. Three months ended Business Highlights1,2 ($ in billions) 12/31/2018 9/30/2018 12/31/2017 • Reported sales and trading revenue increased 1% to Average total assets $655.1 $652.5 $659.4 $2.6 billion Average trading-related 464.0 460.3 449.7 assets • Excluding net DVA, sales and trading revenue decreased 6% to $2.5 billion(B) Average loans and leases 70.6 71.2 73.6 2 – FICC revenue of $1.4 billion decreased 15%, due Sales and trading revenue 2.6 3.0 2.5 to weakness in credit and mortgage markets and Sales and trading revenue 2.5 3.1 2.7 lower client activity in credit products (excl. net DVA)(B),2 – Equities revenue of $1.1 billion increased 11%, Global Markets IB fees2 0.5 0.5 0.6 due to strength in client financing and derivatives Efficiency ratio 79% 68% 77% Return on average allocated 6 10 5 capital 1 Comparisons are to the year-ago quarter unless noted. 2 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities, and sales and trading activities. 6
All Other Three months ended Financial Results1 ($ in millions) 12/31/2018 9/30/2018 12/31/2017 2 • Net income of $0.3 billion compared with a loss of Total revenue $(239) $161 $(1,366) $2.7 billion Provision for credit losses (124) (95) (185) - Q4-17 included charges of $2.9 billion from the Noninterest expense 449 565 520 enactment of the Tax Act, comprised of a charge Pretax loss (564) (309) (1,701) of $0.9 billion in other income and $1.9 billion of tax expense Income tax expense (benefit) (843) (453) 964 • Revenue improved $1.1 billion from Q4-17 Net income (loss) $279 $144 $(2,665) 1 Comparisons are to the year-ago quarter unless noted. - Excluding the Tax Act impact, revenue improved 2 Revenue, net of interest expense. Tax expense compared to prior year impacted by a lower U.S. $0.2 billion from Q4-17, driven by a small gain corporate tax rate. from the sale of non-core consumer real estate Note: All Other consists of asset and liability management (ALM) activities, equity investments, loans non-core mortgage loans and servicing activities, the net impact of periodic revisions to the mortgage servicing rights (MSR) valuation model for core and non-core MSRs and the related economic hedge results, liquidating businesses and residual expense allocations. ALM activities • Benefit in provision for credit losses declined $61 encompass certain residential mortgages, debt securities, interest rate and foreign currency risk million to $124 million due to a slower pace of management activities, the impact of certain allocation methodologies and hedge ineffectiveness. The results of certain ALM activities are allocated to our business segments. portfolio improvement driven by runoff and the sale Equity investments include our merchant services joint venture, as well as a portfolio of equity, of non-core consumer real estate loans real estate and other alternative investments. • Noninterest expense decreased $71 million to $449 million, reflecting lower FDIC expense and other costs • Q4-18 included $0.2 billion in net tax benefits, including lower tax expense on international earnings due to updated tax guidance, partially offset by charges related to a variety of other tax matters 7
Credit Quality Three months ended Highlights1 ($ in millions) 12/31/2018 9/30/2018 12/31/2017 • Overall credit quality remained strong across both Provision for credit losses $905 $716 $1,001 the consumer and commercial portfolios Net charge-offs 924 932 1,237 2 • Net charge-offs declined $313 million to $924 Net charge-off ratio 0.39% 0.40% 0.53% million, primarily driven by the absence of the prior At period-end year's single-name non-U.S. commercial charge-off Nonperforming assets $5,244 $5,449 $6,758 – The net charge-off ratio declined 14 bps to 0.39% Nonperforming assets ratio3 0.56% 0.59% 0.73% • The provision for credit losses decreased $96 million Allowance for loan and lease $9,601 $9,734 $10,393 to $905 million losses – Q4-18 provision expense closely matched net Allowance for loan and lease 1.02% 1.05% 1.12% charge-offs losses ratio4 • Nonperforming assets declined $1.5 billion to $5.2 1 Comparisons are to the year-ago quarter unless noted. 2 Net charge-off ratio is calculated as annualized net charge-offs divided by average billion, primarily driven by improvements in consumer outstanding loans and leases during the period. 3 Nonperforming assets ratio is calculated as nonperforming loans, leases and foreclosed • Commercial reservable criticized utilized exposure properties (nonperforming assets) divided by outstanding loans, leases and foreclosed down $2.5 billion, or 18%, to $11.1 billion properties at the end of the period. 4 Allowance for loan and lease losses ratio is calculated as allowance for loan and lease losses divided by loans and leases outstanding at the end of the period. Note: Ratios do not include loans accounted for under the fair value option. 8
Leadership in high-tech, high-touch (Figures are for Q4-18 unless otherwise specified) High-Tech High-Touch No. 1 in mobile banking, online banking and digital sales 4,341 financial centers functionality • 81 new openings in last 12 months Digital banking has won 30+ digital awards in the last two years • 567 renovations in last 12 months Online- and Mobile-certified by J.D. Power as providing “Outstanding Customer Experience” 16,255 ATMs No. 1 Mobile Banking app in S&P Global Market Intelligence’s • 5,365 new or replaced in last 12 months 2018 U.S. Mobile Banking Market Report • 100% contactless-enabled “Best in Class” in Javelin’s 2018 Mobile Banking Scorecard No. 1 Overall | No. 1 Ease of Use | No. 1 in Functionality in Dynatrace’s Q4-18 Online Banker Scorecard Erica chosen as 2018 BAI Global Innovation Award winner for Expanded in 26 new and existing Customer Experience in the “People’s Choice” category markets in 2018 Consumer digital banking momentum 36.3MM active digital banking users 26.4MM active mobile banking users 66MM Consumer and Small Business 1.5B logins to consumer banking app clients 27% of all Consumer sales through digital • 49% of all digital sales came from mobile 19,459 Wealth advisors in Global Wealth and Investment Management • 19% of total consumer mortgage applications came from and Consumer Banking digital 52MM P2P payments via Zelle®, representing $14B, up 97% YoY 490K digital appointments Global footprint serving middle- 4.8MM users have completed 23MM interactions with Erica since market, large corporate and launch institutional clients Innovation in Global Banking 55,000 relationships with companies and ~485K digital channel users across our commercial, large institutions corporate and business banking businesses 35+ countries • CashPro Mobile users up 104% YoY; logins up 186% in 2018 79% of the 2018 Global Fortune 500 and • Volume of Intelligent Receivables, which uses AI to match 94% of the U.S. Fortune 1,000 have a payments and receivables, grew 5X YoY and won “New Product relationship with us Development” award from Aite Group Increased client-facing professionals to • Digital Disbursements, the business-to-consumer payments further strengthen local market coverage solution that leverages the bank’s investment in Zelle, saw domestic volumes grow 66% in 2018 BofAML ranks No. 1 in all four of • Electronic signature and document exchange, introduced in Greenwich Associates’ 2018 surveys 2018, provides capability to reduce processing time from 4 of European equities: Trading Share, days to 4 hours Algorithmic Trading Share, Electronic Trading Quality, and Trading & Execution Innovation in wealth management Service Quality 26% increase in clients using the Merrill Lynch mobile app in 2018 Digital innovation supporting our advisors’ growth objectives: • 88% of ML advisors have an online digital presence • Evolved broad suite of acquisition and collaboration capabilities, including personalized advisor websites, LinkedIn Sales Navigator and compliant texting 9
Balance Sheet, Liquidity and Capital Highlights ($ in billions except per share data, end of period, unless otherwise noted) Three months ended 12/31/2018 9/30/2018 12/31/2017 Ending Balance Sheet Total assets $2,354.5 $2,338.8 $2,281.2 Total loans and leases 946.9 929.8 936.7 Total loans and leases in business segments (excluding All Other) 898.8 874.8 867.3 Total deposits 1,381.5 1,345.6 1,309.5 Average Balance Sheet Average total assets $2,334.6 $2,317.8 $2,301.7 Average loans and leases 934.7 930.7 927.8 Average deposits 1,345.0 1,316.3 1,293.6 Funding and Liquidity Long-term debt $229.3 $234.1 $227.4 Global Liquidity Sources, average(E) 544 537 522 Equity Common shareholders’ equity $243.0 $239.8 $244.8 Common equity ratio 10.3% 10.3% 10.7% Tangible common shareholders’ equity1 $173.1 $169.9 $174.5 Tangible common equity ratio1 7.6% 7.5% 7.9% Per Share Data Common shares outstanding (in billions) 9.67 9.86 10.29 Book value per common share $25.13 $24.33 $23.80 Tangible book value per common share1 17.91 17.23 16.96 Regulatory Capital(F) Basel 3 CET1 capital $167.3 $164.4 $168.5 Standardized approach Risk-weighted assets $1,437 $1,439 $1,443 CET1 ratio 11.6% 11.4% 11.7% Advanced approaches Risk-weighted assets $1,408 $1,424 $1,459 CET1 ratio 11.9% 11.5% 11.5% Supplementary leverage Supplementary leverage ratio (SLR) 6.8% 6.7% n/a 1 Represents a non-GAAP financial measure. For reconciliation, see page 19 of this press release. n/a = not applicable 10
Endnotes A We also measure net interest income on an FTE basis, which is a non-GAAP financial measure. FTE basis is a performance measure used in operating the business that management believes provides investors a more accurate picture of the interest margin for comparative purposes. We believe that this presentation allows for comparison of amounts from both taxable and tax-exempt sources, and is consistent with industry practices. Net interest income on an FTE basis was $12.5 billion, $12.0 billion and $11.7 billion for the three months ended December 31, 2018, September 30, 2018 and December 31, 2017, respectively. The FTE adjustment was $155 million, $151 million and $251 million for the three months ended December 31, 2018, September 30, 2018 and December 31, 2017, respectively. B Global Markets revenue and net income, excluding net debit valuation adjustments (DVA), and sales and trading revenue, excluding net DVA, are non- GAAP financial measures. Net DVA gains (losses) were $52 million, $(99) million and $(118) million for the three months ended December 31, 2018, September 30, 2018 and December 31, 2017, respectively. FICC net DVA gains (losses) were $45 million, $(80) million and $(112) million for the three months ended December 31, 2018, September 30, 2018 and December 31, 2017, respectively. Equities net DVA gains (losses) were $7 million, $(19) million and $(6) million for the three months ended December 31, 2018, September 30, 2018 and December 31, 2017, respectively. C Enactment of the Tax Act reduced Q4-17 and FY 2017 net income by $2.9 billion, or $0.27 per diluted common share, which included a $0.9 billion pretax charge in other noninterest income (which reduced pretax income and revenue, net of interest expense) predominantly related to the revaluation of certain tax-advantaged energy investments, as well as $1.9 billion of tax expense principally associated with the revaluation of certain deferred tax assets and liabilities. The enactment negatively impacted Q4-17 and FY 2017 return on average assets by 49 bps and 13 bps, respectively; return on average common shareholders’ equity by 455 bps and 117 bps, respectively; return on average tangible common shareholders’ equity by 630 bps and 162 bps, respectively; and efficiency ratio by 287 bps and 67 bps, respectively. Reported metrics are shown on pages 1 and 2 of this press release. D Return on average tangible common shareholders’ equity is a non-GAAP financial measure. See page 19 of this press release for reconciliation to GAAP financial measures. E Global Liquidity Sources (GLS) include cash and high-quality, liquid, unencumbered securities, limited to U.S. government securities, U.S. agency securities, U.S. agency MBS, and a select group of non-U.S. government and supranational securities, and are readily available to meet funding requirements as they arise. They do not include Federal Reserve Discount Window or Federal Home Loan Bank borrowing capacity. Transfers of liquidity among legal entities may be subject to certain regulatory and other restrictions. F Regulatory capital ratios at December 31, 2018 are preliminary. We report regulatory capital ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is used to assess capital adequacy, which for CET1 is the Standardized approach at December 31, 2018 and September 30, 2018 and the Advanced approaches at December 31, 2017. Basel 3 transition provisions for regulatory capital adjustments and deductions were fully phased-in as of January 1, 2018. Prior periods are presented on a fully phased-in basis. SLR requirements became effective January 1, 2018. 11
Contact Information and Investor Conference Call Invitation Note: Chief Executive Officer Brian Moynihan and Chief Financial Officer Paul Donofrio will discuss fourth- quarter 2018 financial results in a conference call at 8:00 a.m. ET today. The presentation and supporting materials can be accessed on the Bank of America Investor Relations website at http://investor.bankofamerica.com. For a listen-only connection to the conference call, dial 1.877.200.4456 (U.S.) or 1.785.424.1732 (international). The conference ID is 79795. Please dial in 10 minutes prior to the start of the call. Investors Investor Call can access replays of the conference call by visiting the Investor Relations website or by calling Information 1.800.934.4850 (U.S.) or 1.402.220.1178 (international) from January 16 through January 23. Investors May Contact: Reporters May Contact: Lee McEntire, Bank of America, 1.980.388.6780 Lawrence Grayson, Bank of America, 1.704.995.5825 lawrence.grayson@bankofamerica.com Jonathan Blum, Bank of America (Fixed Income), 1.212.449.3112 Bank of America Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 1,800 lending centers, 2,200 Merrill Edge investment centers and 1,500 business centers; approximately 16,300 ATMs; and award-winning digital banking with more than 36 million active users, including over 26 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange. Forward-Looking Statements Bank of America Corporation (the “Company”) and its management may make certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements represent the Company’s current expectations, plans or forecasts of its future results, revenues, expenses, efficiency ratio, capital measures, strategy, and future business and economic conditions more generally, and other future matters. These statements are not guarantees of future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond the Company’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements. 12
You should not place undue reliance on any forward-looking statement and should consider the following uncertainties and risks, as well as the risks and uncertainties more fully discussed under Item 1A. Risk Factors of the Company’s 2017 Annual Report on Form 10-K and in any of the Company’s subsequent Securities and Exchange Commission filings: the Company’s potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions, and the possibility that amounts may be in excess of the Company’s recorded liability and estimated range of possible loss for litigation and regulatory exposures; the possibility that the Company could face increased servicing, securities, fraud, indemnity, contribution or other claims from one or more counterparties, including trustees, purchasers of loans, underwriters, issuers, other parties involved in securitizations, monolines or private-label and other investors; the possibility that future representations and warranties losses may occur in excess of the Company’s recorded liability and estimated range of possible loss for its representations and warranties exposures; the Company’s ability to resolve representations and warranties repurchase and related claims, including claims brought by investors or trustees seeking to avoid the statute of limitations for repurchase claims; the risks related to the discontinuation of LIBOR and other reference rates, including increased expenses and litigation and the effectiveness of hedging strategies; uncertainties about the financial stability and growth rates of non-U.S. jurisdictions, the risk that those jurisdictions may face difficulties servicing their sovereign debt, and related stresses on financial markets, currencies and trade, and the Company’s exposures to such risks, including direct, indirect and operational; the impact of U.S. and global interest rates, inflation, currency exchange rates, economic conditions, trade policies, including tariffs, and potential geopolitical instability; the impact on the Company’s business, financial condition and results of operations of a potential higher interest rate environment; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior, adverse developments with respect to U.S. or global economic conditions and other uncertainties; the Company’s ability to achieve its expense targets, net interest income expectations, or other projections; adverse changes to the Company’s credit ratings from the major credit rating agencies; estimates of the fair value of certain of the Company’s assets and liabilities; uncertainty regarding the content, timing and impact of regulatory capital and liquidity requirements; the impact of adverse changes to total loss-absorbing capacity requirements and/or global systemically important bank surcharges; the potential impact of Federal Reserve actions on the Company’s capital plans; the effect of regulations, other guidance or additional information on our estimated impact of the Tax Act; the impact of implementation and compliance with U.S. and international laws, regulations and regulatory interpretations, including, but not limited to, recovery and resolution planning requirements, Federal Deposit Insurance Corporation (FDIC) assessments, the Volcker Rule, fiduciary standards and derivatives regulations; a failure in or breach of the Company’s operational or security systems or infrastructure, or those of third parties, including as a result of cyber-attacks; the impact on the Company’s business, financial condition and results of operations from the planned exit of the United Kingdom from the European Union; the impact of a prolonged federal government shutdown and threats not to increase the federal government’s debt limit; and other similar matters. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made. “Bank of America Merrill Lynch” is the marketing name for the Global Banking and Global Markets businesses of Bank of America Corporation. Lending, derivatives and other commercial banking activities are performed by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, financial advisory and other investment banking activities are performed by investment banking affiliates of Bank of America Corporation (Investment Banking Affiliates), including Merrill Lynch, Pierce, Fenner & Smith Incorporated, which are registered broker-dealers and members of FINRA and SIPC. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed. Bank of America Corporation’s broker-dealers are not banks and are separate legal entities from their bank affiliates. The obligations of the broker- dealers are not obligations of their bank affiliates (unless explicitly stated otherwise), and these bank affiliates are not responsible for securities sold, offered or recommended by the broker-dealers. The foregoing also applies to other non-bank affiliates. For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom at https://newsroom.bankofamerica.com. www.bankofamerica.com 13
14 Bank of America Corporation and Subsidiaries Selected Financial Data (In millions, except per share data) Year Ended Fourth Third Fourth December 31 Quarter Quarter Quarter Summary Income Statement 2018 2017 2018 2018 2017 Net interest income $ 47,432 $ 44,667 $ 12,304 $ 11,870 $ 11,462 Noninterest income 43,815 42,685 10,432 10,907 8,974 Total revenue, net of interest expense 91,247 87,352 22,736 22,777 20,436 Provision for credit losses 3,282 3,396 905 716 1,001 Noninterest expense 53,381 54,743 13,133 13,067 13,274 Income before income taxes 34,584 29,213 8,698 8,994 6,161 Income tax expense 6,437 10,981 1,420 1,827 3,796 Net income $ 28,147 $ 18,232 $ 7,278 $ 7,167 $ 2,365 Preferred stock dividends 1,451 1,614 239 466 286 Net income applicable to common shareholders $ 26,696 $ 16,618 $ 7,039 $ 6,701 $ 2,079 Average common shares issued and outstanding 10,096.5 10,195.6 9,855.8 10,031.6 10,470.7 Average diluted common shares issued and outstanding 10,236.9 10,778.4 9,996.0 10,170.8 10,621.8 Summary Average Balance Sheet Total debt securities $ 437,312 $ 435,005 $ 440,967 $ 445,813 $ 441,624 Total loans and leases 933,049 918,731 934,721 930,736 927,790 Total earning assets 1,980,231 1,922,061 1,986,734 1,972,437 1,950,048 Total assets 2,325,246 2,268,633 2,334,586 2,317,829 2,301,687 Total deposits 1,314,941 1,269,796 1,344,951 1,316,345 1,293,572 Common shareholders’ equity 241,799 247,101 241,372 241,812 250,838 Total shareholders’ equity 264,748 271,289 263,698 264,653 273,162 Performance Ratios Return on average assets 1.21% 0.80% 1.24% 1.23% 0.41% Return on average common shareholders’ equity 11.04 6.72 11.57 10.99 3.29 Return on average tangible common shareholders’ equity (1) 15.55 9.41 16.29 15.48 4.56 Per Common Share Information Earnings $ 2.64 $ 1.63 $ 0.71 $ 0.67 $ 0.20 Diluted earnings 2.61 1.56 0.70 0.66 0.20 Dividends paid 0.54 0.39 0.15 0.15 0.12 Book value 25.13 23.80 25.13 24.33 23.80 Tangible book value (1) 17.91 16.96 17.91 17.23 16.96 December 31 September 30 December 31 Summary Period-End Balance Sheet 2018 2018 2017 Total debt securities $ 441,753 $ 446,107 $ 440,130 Total loans and leases 946,895 929,801 936,749 Total earning assets 2,011,474 1,982,338 1,941,542 Total assets 2,354,507 2,338,833 2,281,234 Total deposits 1,381,476 1,345,649 1,309,545 Common shareholders’ equity 242,999 239,832 244,823 Total shareholders’ equity 265,325 262,158 267,146 Common shares issued and outstanding 9,669.3 9,858.3 10,287.3 Year Ended Fourth Third Fourth December 31 Quarter Quarter Quarter Credit Quality 2018 2017 2018 2018 2017 Total net charge-offs (2) $ 3,763 $ 3,979 $ 924 $ 932 $ 1,237 Net charge-offs as a percentage of average loans and leases outstanding (3) 0.41% 0.44% 0.39% 0.40% 0.53% Provision for credit losses $ 3,282 $ 3,396 $ 905 $ 716 $ 1,001 December 31 September 30 December 31 2018 2018 2017 Total nonperforming loans, leases and foreclosed properties (4) $ 5,244 $ 5,449 $ 6,758 Nonperforming loans, leases and foreclosed properties as a percentage of total loans, leases and foreclosed properties (3) 0.56% 0.59% 0.73% Allowance for loan and lease losses $ 9,601 $ 9,734 $ 10,393 Allowance for loan and lease losses as a percentage of total loans and leases outstanding (3) 1.02% 1.05% 1.12% For footnotes, see page 15. Current period information is preliminary and based on company data available at the time of the presentation.
15 Bank of America Corporation and Subsidiaries Selected Financial Data (continued) (Dollars in millions) Basel 3 Capital Management December 31 September 30 December 31 2018 2018 2017 Regulatory capital metrics (5): Common equity tier 1 capital $ 167,272 $ 164,386 $ 168,461 Common equity tier 1 capital ratio - Standardized approach 11.6% 11.4% 11.7% Common equity tier 1 capital ratio - Advanced approaches 11.9 11.5 11.5 Tier 1 leverage ratio 8.4 8.3 8.6 Tangible equity ratio (6) 8.6 8.5 8.9 Tangible common equity ratio (6) 7.6 7.5 7.9 (1) Return on average tangible common shareholders’ equity and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income. Tangible book value per share provides additional useful information about the level of tangible assets in relation to outstanding shares of common stock. See Reconciliations to GAAP Financial Measures on page 19. (2) Includes non-U.S. credit card net charge-offs of $75 million for the year ended December 31, 2017. These net charge-offs represent net charge-offs of non-U.S. credit card loans, which were sold in the second quarter of 2017. (3) Ratios do not include loans accounted for under the fair value option. Charge-off ratios are annualized for the quarterly presentation. (4) Balances do not include past due consumer credit card loans, 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; purchased credit-impaired loans even though the customer may be contractually past due; and nonperforming loans held-for-sale or accounted for under the fair value option. (5) Regulatory capital ratios at December 31, 2018 are preliminary. Bank of America Corporation (the Corporation) reports regulatory capital ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is used to assess capital adequacy, which for CET1 is the Standardized approach at December 31, 2018 and September 30, 2018 and the Advanced approaches at December 31, 2017. Basel 3 transition provisions for regulatory capital adjustments and deductions were fully phased-in as of January 1, 2018. Prior periods are presented on a fully phased-in basis. (6) Tangible equity ratio equals period-end tangible shareholders’ equity divided by period-end tangible assets. Tangible common equity ratio 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 ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income. See Reconciliations to GAAP Financial Measures on page 19. Current period information is preliminary and based on company data available at the time of the presentation.
16 Bank of America Corporation and Subsidiaries Quarterly Results by Business Segment and All Other (Dollars in millions) Fourth Quarter 2018 Consumer Global Global All Banking GWIM Banking Markets Other Total revenue, net of interest expense $ 9,877 $ 4,990 $ 5,050 $ 3,213 $ (239) Provision for credit losses 915 23 85 6 (124) Noninterest expense 4,483 3,542 2,119 2,540 449 Net income 3,338 1,062 2,106 493 279 Return on average allocated capital (1) 36% 29% 20% 6% n/m Balance Sheet Average Total loans and leases $ 289,862 $ 163,516 $ 357,410 $ 70,609 $ 53,324 Total deposits 686,826 247,427 359,642 31,077 19,979 Allocated capital (1) 37,000 14,500 41,000 35,000 n/m Quarter end Total loans and leases $ 294,335 $ 164,854 $ 365,717 $ 73,928 $ 48,061 Total deposits 696,146 268,700 360,248 37,841 18,541 Third Quarter 2018 Consumer Global Global All Banking GWIM Banking Markets Other Total revenue, net of interest expense $ 9,403 $ 4,783 $ 4,738 $ 3,843 $ 161 Provision for credit losses 870 13 (70) (2) (95) Noninterest expense 4,354 3,414 2,121 2,613 565 Net income 3,113 1,010 1,988 912 144 Return on average allocated capital (1) 33% 28% 19% 10% n/m Balance Sheet Average Total loans and leases $ 284,994 $ 161,869 $ 352,712 $ 71,231 $ 59,930 Total deposits 687,530 238,291 337,685 30,721 22,118 Allocated capital (1) 37,000 14,500 41,000 35,000 n/m Quarter end Total loans and leases $ 287,277 $ 162,191 $ 352,332 $ 73,023 $ 54,978 Total deposits 692,770 239,654 350,748 41,102 21,375 Fourth Quarter 2017 Consumer Global Global All Banking GWIM Banking Markets Other Total revenue, net of interest expense $ 8,955 $ 4,683 $ 5,019 $ 3,396 $ (1,366) Provision for credit losses 886 6 132 162 (185) Noninterest expense 4,509 3,470 2,161 2,614 520 Net income (loss) 2,196 744 1,680 410 (2,665) Return on average allocated capital (1) 24% 21% 17% 5% n/m Balance Sheet Average Total loans and leases $ 275,716 $ 157,063 $ 350,262 $ 73,552 $ 71,197 Total deposits 665,536 240,126 329,761 34,250 23,899 Allocated capital (1) 37,000 14,000 40,000 35,000 n/m Quarter end Total loans and leases $ 280,473 $ 159,378 $ 350,668 $ 76,778 $ 69,452 Total deposits 676,530 246,994 329,273 34,029 22,719 (1) Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently. n/m = not meaningful Certain prior period amounts have been reclassified among the segments to conform to current period presentation. The Company reports the results of operations of its four business segments and All Other on a fully-taxable equivalent (FTE) basis. Current period information is preliminary and based on company data available at the time of the presentation.
17 Bank of America Corporation and Subsidiaries Annual Results by Business Segment and All Other (Dollars in millions) Year Ended December 31, 2018 Consumer Global Global All Banking GWIM Banking Markets Other Total revenue, net of interest expense $ 37,523 $ 19,338 $ 19,644 $ 16,063 $ (711) Provision for credit losses 3,664 86 8 — (476) Noninterest expense 17,713 13,777 8,591 10,686 2,614 Net income (loss) 12,029 4,079 8,173 3,979 (113) Return on average allocated capital (1) 33% 28% 20% 11% n/m Balance Sheet Average Total loans and leases $ 283,807 $ 161,342 $ 354,236 $ 72,651 $ 61,013 Total deposits 684,173 241,256 336,337 31,209 21,966 Allocated capital (1) 37,000 14,500 41,000 35,000 n/m Year end Total loans and leases $ 294,335 $ 164,854 $ 365,717 $ 73,928 $ 48,061 Total deposits 696,146 268,700 360,248 37,841 18,541 Year Ended December 31, 2017 Consumer Global Global All Banking GWIM Banking Markets Other Total revenue, net of interest expense $ 34,521 $ 18,590 $ 19,999 $ 15,951 $ (784) Provision for credit losses 3,525 56 212 164 (561) Noninterest expense 17,795 13,556 8,596 10,731 4,065 Net income (loss) 8,202 3,093 6,953 3,293 (3,309) Return on average allocated capital (1) 22% 22% 17% 9% n/m Balance Sheet Average Total loans and leases $ 266,058 $ 152,682 $ 346,089 $ 71,413 $ 82,489 Total deposits 653,320 245,559 312,859 32,864 25,194 Allocated capital (1) 37,000 14,000 40,000 35,000 n/m Year end Total loans and leases $ 280,473 $ 159,378 $ 350,668 $ 76,778 $ 69,452 Total deposits 676,530 246,994 329,273 34,029 22,719 (1) Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently. n/m = not meaningful Certain prior period amounts have been reclassified among the segments to conform to current period presentation. Current period information is preliminary and based on company data available at the time of the presentation.
18 Bank of America Corporation and Subsidiaries Supplemental Financial Data (Dollars in millions) Year Ended Fourth Third Fourth December 31 Quarter Quarter Quarter FTE basis data (1) 2018 2017 2018 2018 2017 Net interest income $ 48,042 $ 45,592 $ 12,459 $ 12,021 $ 11,713 Total revenue, net of interest expense 91,857 88,277 22,891 22,928 20,687 Net interest yield 2.42% 2.37% 2.48% 2.42% 2.39% Efficiency ratio 58.11 62.01 57.37 56.99 64.16 December 31 September 30 December 31 Other Data 2018 2018 2017 Number of financial centers - U.S. 4,341 4,385 4,477 Number of branded ATMs - U.S. 16,255 16,089 16,039 Headcount 204,489 204,681 209,376 (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 a more accurate picture of the interest margin for comparative purposes. The Corporation believes that this presentation allows for comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practices. Net interest income includes FTE adjustments of $610 million and $925 million for the years ended December 31, 2018 and 2017, and $155 million, $151 million and $251 million for the fourth and third quarters of 2018 and the fourth quarter of 2017, respectively. Certain prior period amounts have been reclassified to conform to current period presentation. Current period information is preliminary and based on company data available at the time of the presentation.
19 Bank of America Corporation and Subsidiaries Reconciliations to GAAP Financial Measures (Dollars in millions) The Corporation 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. 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. Return on average tangible shareholders’ equity measures the Corporation’s earnings contribution as a percentage of adjusted average total shareholders’ equity. The tangible equity ratio represents 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. In addition, profitability, relationship and investment models all use return on average tangible shareholders’ equity as key measures to support our overall growth goals. See the tables below for reconciliations of these non-GAAP financial measures to financial measures defined by GAAP for the years ended December 31, 2018 and 2017 and the three months ended December 31, 2018, September 30, 2018 and December 31, 2017. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in understanding its results of operations and trends. Other companies may define or calculate supplemental financial data differently. Year Ended Fourth Third Fourth December 31 Quarter Quarter Quarter 2018 2017 2018 2018 2017 Reconciliation of average shareholders’ equity to average tangible common shareholders’ equity and average tangible shareholders’ equity Shareholders’ equity $ 264,748 $ 271,289 $ 263,698 $ 264,653 $ 273,162 Goodwill (68,951) (69,286) (68,951) (68,951) (68,954) Intangible assets (excluding mortgage servicing rights) (2,058) (2,652) (1,857) (1,992) (2,399) Related deferred tax liabilities 906 1,463 874 896 1,344 Tangible shareholders’ equity $ 194,645 $ 200,814 $ 193,764 $ 194,606 $ 203,153 Preferred stock (22,949) (24,188) (22,326) (22,841) (22,324) Tangible common shareholders’ equity $ 171,696 $ 176,626 $ 171,438 $ 171,765 $ 180,829 Reconciliation of period-end shareholders’ equity to period-end tangible common shareholders’ equity and period-end tangible shareholders’ equity Shareholders’ equity $ 265,325 $ 267,146 $ 265,325 $ 262,158 $ 267,146 Goodwill (68,951) (68,951) (68,951) (68,951) (68,951) Intangible assets (excluding mortgage servicing rights) (1,774) (2,312) (1,774) (1,908) (2,312) Related deferred tax liabilities 858 943 858 878 943 Tangible shareholders’ equity $ 195,458 $ 196,826 $ 195,458 $ 192,177 $ 196,826 Preferred stock (22,326) (22,323) (22,326) (22,326) (22,323) Tangible common shareholders’ equity $ 173,132 $ 174,503 $ 173,132 $ 169,851 $ 174,503 Reconciliation of period-end assets to period-end tangible assets Assets $ 2,354,507 $ 2,281,234 $ 2,354,507 $ 2,338,833 $ 2,281,234 Goodwill (68,951) (68,951) (68,951) (68,951) (68,951) Intangible assets (excluding mortgage servicing rights) (1,774) (2,312) (1,774) (1,908) (2,312) Related deferred tax liabilities 858 943 858 878 943 Tangible assets $ 2,284,640 $ 2,210,914 $ 2,284,640 $ 2,268,852 $ 2,210,914 Book value per share of common stock Common shareholders’ equity $ 242,999 $ 244,823 $ 242,999 $ 239,832 $ 244,823 Ending common shares issued and outstanding 9,669.3 10,287.3 9,669.3 9,858.3 10,287.3 Book value per share of common stock $ 25.13 $ 23.80 $ 25.13 $ 24.33 $ 23.80 Tangible book value per share of common stock Tangible common shareholders’ equity $ 173,132 $ 174,503 $ 173,132 $ 169,851 $ 174,503 Ending common shares issued and outstanding 9,669.3 10,287.3 9,669.3 9,858.3 10,287.3 Tangible book value per share of common stock $ 17.91 $ 16.96 $ 17.91 $ 17.23 $ 16.96 Certain prior period amounts have been reclassified to conform to current period presentation. Current period information is preliminary and based on company data available at the time of the presentation.
