Bank of America Reports Fourth-Quarter 2012 Net Income of $0.7 Billion, or $0.03 Per Diluted Share
Bank of America Corporation today reported net income of $0.7 billion,
or $0.03 per diluted share, for the fourth quarter of 2012, compared to
$2.0 billion, or $0.15 per diluted share in the year-ago period.
Revenue, net of interest expense, on a fully taxable-equivalent (FTE)B
basis was $18.9 billion.
Fourth-quarter 2012 revenue, net of interest expense, on an FTE basis,
excluding $0.7 billion of debit valuation and fair value option
adjustments, was $19.6 billion; excluding $3.0 billion of provisions for
representations and warranties and obligations related to mortgage
insurance rescissions related to settlement agreements with the Federal
National Mortgage Association (Fannie Mae) revenue net of interest
expense, on an FTE basis, was $22.6 billionB.
For the full year, the company reported net income of $4.2 billion, or
$0.25 per diluted share, compared to $1.4 billion, or $0.01 per diluted
share in 2011.
“We enter 2013 strong and well positioned for further growth,” said
Chief Executive Officer Brian Moynihan. “Double-digit growth since last
year in mortgage production, commercial lending, and Global Markets
revenue demonstrates the power of deeper customer and client
relationships as we intensify the focus on connecting all our
capabilities.”
As previously announced, financial results in the fourth quarter of 2012
were negatively impacted by a provision of $2.7 billion related to the
settlements with Fannie Mae with respect to representations and
warranties and compensatory fees; other provision items of $2.5 billion
which included a $1.1 billion provision for the Independent Foreclosure
Review (IFR) acceleration agreement, total litigation expense of $0.9
billion and a $0.5 billion provision for obligations related to mortgage
insurance rescissions; and $0.7 billion of negative debit valuation
adjustments (DVA) and fair value option (FVO) adjustments due to
improvement in the company's credit spreads. These items were partially
offset by a net income tax benefit of $1.3 billion primarily due to the
recognition of foreign tax credits of certain non-U.S. subsidiaries; a
gain of $0.4 billion on the previously announced sale of the company's
49-percent stake in Mitsubishi UFJ Merrill Lynch PB Securities; and a
positive valuation adjustment on mortgage servicing rights (MSR) of $0.3
billion related to the previously announced servicing sales.
The year-ago quarter included $1.3 billion of negative DVA and FVO
adjustments, $1.8 billion of total litigation expense and a $0.6 billion
goodwill impairment charge in the European consumer card business. In
addition, the year-ago quarter included, among other significant items,
a $2.9 billion pretax gain on the sale of a portion of the company's
investment in China Construction Bank (CCB), a $1.2 billion gain on the
exchange of trust preferred securities, and a $1.2 billion gain on the
sale of debt securities.
Relative to the year-ago quarter, the results for the fourth quarter of
2012 were driven by improved credit quality across most major
portfolios, increased sales and trading revenue (excluding the impact of
DVAE), increased investment and brokerage income, higher
investment banking fees, partially offset by an increase in consumer
real estate losses, reflecting the Fannie Mae settlements and the
provision for the IFR acceleration agreement. In addition, noninterest
expense declined from the year-ago quarter, driven primarily by cost
savings achieved through Project New BAC initiatives over the course of
2012.
"We addressed significant legacy issues in 2012 and our strengths are
coming through," said Chief Financial Officer Bruce Thompson. "Capital
and liquidity remain strong and credit continues to improve. Our primary
focus this year is to grow revenue, manage expenses and drive core
earnings growth."
Selected Financial Highlights
|
|
|
Three Months Ended
|
|
Year Ended
|
(Dollars in millions, except per share data)
|
|
|
December 31 2012
|
|
December 31 2011
|
|
December 31 2012
|
|
December 31 2011
|
Net interest income, FTE basis1 |
|
|
$
|
10,555
|
|
|
$
|
10,959
|
|
|
$
|
41,557
|
|
|
$
|
45,588
|
Noninterest income
|
|
|
8,336
|
|
|
14,187
|
|
|
42,678
|
|
|
48,838
|
Total revenue, net of interest expense, FTE basis
|
|
|
18,891
|
|
|
25,146
|
|
|
84,235
|
|
|
94,426
|
Total revenue, net of interest expense, FTE basis, excluding DVA
and FVO2 |
|
|
19,610
|
|
|
26,434
|
|
|
91,819
|
|
|
90,106
|
Provision for credit losses
|
|
|
2,204
|
|
|
2,934
|
|
|
8,169
|
|
|
13,410
|
Noninterest expense3 |
|
|
18,360
|
|
|
18,941
|
|
|
72,093
|
|
|
77,090
|
Goodwill impairment charges
|
|
|
—
|
|
|
581
|
|
|
—
|
|
|
3,184
|
Net income
|
|
|
$
|
732
|
|
|
$
|
1,991
|
|
|
$
|
4,188
|
|
|
$
|
1,446
|
Diluted earnings per common share
|
|
|
$
|
0.03
|
|
|
$
|
0.15
|
|
|
$
|
0.25
|
|
|
$
|
0.01
|
1 Fully taxable-equivalent (FTE) basis is a non-GAAP
financial measure. For reconciliation to GAAP financial measures, refer
to pages 25-28 of this press release. Net interest income on a GAAP
basis was $10.3 billion and $10.7 billion for the three months ended
December 31, 2012 and 2011, and $40.7 billion and $44.6 billion for the
years ended December 31, 2012 and 2011. Total revenue, net of interest
expense, on a GAAP basis was $18.7 billion and $24.9 billion for the
three months ended December 31, 2012 and 2011, and $83.3 billion and
$93.5 billion for the years ended December 31, 2012 and 2011.
2 Total revenue, net of interest expense, on an FTE basis
excluding DVA and FVO adjustments is a non-GAAP financial measure. DVA
gains (losses) were $(277) million and $(474) million for the three
months ended December 31, 2012 and 2011, and $(2.5) billion and $1.0
billion for the years ended December 31, 2012 and 2011. Valuation gains
(losses) related to FVO were $(442) million and $(814) million for the
three months ended December 31, 2012 and 2011, and $(5.1) billion and
$3.3 billion for the years ended December 31, 2012 and 2011.
3 Excludes goodwill impairment charges of $581 million in the
three months ended December 31, 2011, and $3.2 billion for the year
ended December 31, 2011. Noninterest expense, excluding goodwill
impairment charges, is a non-GAAP financial measure.
Key Business Highlights
The company made significant progress in 2012 in line with its operating
principles, including the following developments:
Focus on customer-driven businesses
-
Bank of America extended approximately $475 billion in credit in 2012.
This included $310.5 billion in commercial non-real estate loans,
$75.1 billion in residential first mortgages, $40.0 billion in
commercial real estate loans, $17.9 billion in U.S. consumer and small
business card, $3.6 billion in home equity products and $27.9 billion
in other consumer credit.
-
The $75.1 billion in residential first mortgages funded in 2012 helped
more than 305,000 homeowners either purchase a home or refinance an
existing mortgage. This included approximately 17,500 first-time
homebuyer mortgages originated by retail channels, and more than
96,000 mortgages to low- and moderate-income borrowers. Approximately
16 percent of funded first mortgages were for home purchases and 84
percent were refinances.
-
The company originated approximately $8.7 billion in small business
loans and commitments in 2012, up 28 percent from 2011, reflecting a
continued focus on supporting small businesses.
-
Bank of America provided assistance to more than 2 million customer
accounts in 14 states affected by Hurricane Sandy with comprehensive
customer assistance programs including financial contributions to
relief efforts, payment deferrals and fee waivers.
-
Total client balances in Global Wealth and Investment Management
increased 7 percent from 2011 led by market gains and solid flows in
long-term assets under management (AUM), deposits and loans.
-
The company continued to deepen and broaden customer relationships.
The number of mobile banking customers increased 31 percent from
December 31, 2011 to 12.0 million customers, and the number of new
U.S. credit card accounts opened in 2012 grew 7 percent from 2011.
-
Merrill Edge brokerage assets increased $9.4 billion from the end of
2011 to $75.9 billion, driven by market improvement and an increase in
new accounts.
-
The company continued to increase its specialized sales force of
Financial Solutions Advisors, Mortgage Loan Officers and Small
Business Bankers during the quarter to nearly 6,200 specialists at the
end of 2012.
-
The company continued to support the economy by:
-
Helping clients raise $605 billion in capital in 2012.
-
Extending approximately $475 billion in credit in 2012.
-
Bank of America Merrill Lynch (BofA Merrill) continued to rank No. 2
globally in net investment banking fees in 2012, as reported by
Dealogic. Results for the fourth quarter of 2012 included record debt
issuance fees since the Bank of America Merrill Lynch merger.
Continue to build a fortress balance sheet
-
The Tier 1 common capital ratio under Basel 1 was 11.06 percent at
December 31, 2012, down 35 bps from September 30, 2012 and 120 bps
higher than December 31, 2011.
-
The Tier 1 common capital ratio under Basel 3 on a fully phased-in
basis is estimated at 9.25 percent at December 31, 2012, up from 8.97
percent at September 30, 2012.A
-
The company reduced long-term debt by nearly $100 billion from the end
of 2011 while maintaining significant excess liquidity. Global Excess
Liquidity Sources totaled $372 billion at December 31, 2012, slightly
less than $380 billion at September 30, 2012 and $378 billion at
December 31, 2011. Long-term debt declined to $276 billion at
December 31, 2012 from $287 billion at September 30, 2012 and $372
billion at December 31, 2011.
Managing risk well
-
The provision for credit losses declined 25 percent from the year-ago
quarter, reflecting improved credit quality across major consumer and
commercial portfolios and the benefit of underwriting changes
implemented over the past several years.
-
The U.S. credit card loss rate declined in the fourth quarter of 2012
to the lowest level since the second quarter of 2006C while
the 30+ day delinquency rate was at a historic low.
-
Consumer loan loss rates declined in the fourth quarter of 2012 to
their lowest level since early 2008 and commercial loan loss rates
declined to their lowest level since the fourth quarter of 2006C.
Delivering for our shareholders
-
Tangible book value per share increased to $13.36 at December 31,
2012, compared to $12.95 at December 31, 2011D. Book
value per share was $20.24 at December 31, 2012, compared to $20.09 at
December 31, 2011.
-
The company continued to make progress on its legacy issues, reaching
settlements with Fannie Mae to resolve substantially all outstanding
and potential agency mortgage repurchase claims on loans originated
and sold directly to Fannie Mae from January 1, 2000 through December
31, 2008 by legacy Countrywide and Bank of America, National
Association (BANA); settling substantially all of Fannie Mae's
outstanding and future claims for compensatory fees arising out of
alleged past foreclosure delays; and clarifying the parties'
obligations with respect to mortgage insurance.
Managing efficiency well
-
Fourth-quarter 2012 noninterest expense declined 6 percent from the
year-ago quarter, reflecting a decrease in personnel expense as the
company continued to streamline processes and achieve cost savings.
-
At December 31, 2012, the company had 267,190 full-time employees,
down 5,404 from the end of the prior quarter, and 14,601 fewer than
December 31, 2011.
Business Segment Results
The company reports results through five business segments: Consumer and
Business Banking (CBB), Consumer Real Estate Services (CRES), Global
Wealth and Investment Management (GWIM), Global Banking, and Global
Markets, with the remaining operations recorded in All Other.
Consumer and Business Banking (CBB)
|
|
|
Three Months Ended
|
|
Year Ended
|
(Dollars in millions)
|
|
|
December 31 2012
|
|
December 31 2011
|
|
December 31 2012
|
|
December 31 2011
|
Total revenue, net of interest expense, FTE basis
|
|
|
$
|
7,204
|
|
|
$
|
7,606
|
|
|
$
|
29,023
|
|
|
$
|
32,880
|
|
Provision for credit losses
|
|
|
963
|
|
|
1,297
|
|
|
3,941
|
|
|
3,490
|
|
Noninterest expense
|
|
|
4,121
|
|
|
4,429
|
|
|
16,793
|
|
|
17,719
|
|
Net income
|
|
|
$
|
1,428
|
|
|
$
|
1,242
|
|
|
$
|
5,321
|
|
|
$
|
7,447
|
|
Return on average equity
|
|
|
10.48
|
%
|
|
9.30
|
%
|
|
9.92
|
%
|
|
14.07
|
%
|
Return on average economic capital1 |
|
|
23.94
|
|
|
22.08
|
|
|
23.01
|
|
|
33.52
|
|
Average loans
|
|
|
$
|
132,421
|
|
|
$
|
147,150
|
|
|
$
|
136,171
|
|
|
$
|
153,641
|
|
Average deposits
|
|
|
486,467
|
|
|
459,819
|
|
|
477,440
|
|
|
462,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2012
|
|
At December 31, 2011
|
Client brokerage assets
|
|
|
|
|
|
|
$
|
75,946
|
|
|
$
|
66,576
|
|
1 Return on average economic capital is a non-GAAP financial
measure. For reconciliation to GAAP financial measures, refer to pages
25-28 of this press release.
Business Highlights
-
Average deposit balances increased $26.6 billion from the year-ago
quarter, driven by growth in liquid products in a low-rate
environment. The average rate paid on deposits declined 5 basis points
to 16 basis points in the fourth quarter of 2012 from the year-ago
quarter due to pricing discipline and a shift in the mix of deposits.
-
During the fourth quarter of 2012, purchase volumes per average active
credit card account rose 7 percent from the year ago quarter; the
number of BankAmericard Cash Rewards cards increased by nearly 24
percent in the fourth quarter of 2012 to a total of 2.1 million cards
since the product was launched in the third quarter of 2011.
Financial Overview
Consumer and Business Banking net income was $1.4 billion, up $186
million, or 15 percent, from the year-ago quarter due to lower credit
costs and noninterest expense, partially offset by a decrease in net
interest income primarily from lower average loans and the continued
low-rate environment. Noninterest income of $2.5 billion remained
relatively flat.
Provision for credit losses decreased $334 million from the year-ago
quarter to $963 million due to improvement in delinquencies and
bankruptcies primarily within the Card Services business. Noninterest
expense decreased $308 million to $4.1 billion compared to the fourth
quarter of 2011 as a result of lower FDIC expense and lower operating
expenses.
Consumer Real Estate Services (CRES)
|
|
|
Three Months Ended
|
|
Year Ended
|
(Dollars in millions)
|
|
|
December 31 2012
|
|
December 31 2011
|
|
December 31 2012
|
|
December 31 2011
|
Total revenue, net of interest expense, FTE basis
|
|
|
$
|
468
|
|
|
$
|
3,275
|
|
|
$
|
8,759
|
|
|
$
|
(3,154
|
)
|
Provision for credit losses
|
|
|
485
|
|
|
1,001
|
|
|
1,442
|
|
|
4,524
|
|
Noninterest expense1 |
|
|
5,629
|
|
|
4,569
|
|
|
17,306
|
|
|
21,791
|
|
Net loss
|
|
|
$
|
(3,722
|
)
|
|
$
|
(1,442
|
)
|
|
$
|
(6,507
|
)
|
|
$
|
(19,465
|
)
|
Average loans and leases
|
|
|
97,912
|
|
|
116,993
|
|
|
104,754
|
|
|
119,820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2012
|
|
At December 31, 2011
|
Period-end loans and leases
|
|
|
|
|
|
|
$
|
95,972
|
|
|
$
|
112,359
|
|
1 Full-year results include a goodwill impairment charge of
$2.6 billion in the second quarter of 2011.
Business Highlights
-
Bank of America funded $22.5 billion in residential home loans and
home equity loans during the fourth quarter of 2012, up 41 percent
from the fourth quarter of 2011, excluding correspondent originations
of $6.5 billion in the year-ago quarter. The company exited the
correspondent business in late 2011.
-
The number of 60+ day delinquent first mortgage loans serviced by
Legacy Assets and Servicing declined by 163,000, or 17 percent, during
the fourth quarter of 2012 to 773,000 from 936,000 at the end of the
third quarter of 2012 and 1.16 million at the end of the fourth
quarter of 2011.
Financial Overview
Consumer Real Estate Services reported a net loss of $3.7 billion for
the fourth quarter of 2012, compared to a net loss of $1.4 billion for
the same period in 2011 primarily due to mortgage banking losses driven
by the Fannie Mae settlements and higher expenses, partially offset by
lower provision for credit losses.
Revenue decreased $2.8 billion from the fourth quarter of 2011 to $468
million in the fourth quarter of 2012, due largely to higher
representations and warranties provision and lower servicing income,
driven by less favorable MSR results, net of hedges. This was partially
offset by higher core production income. The MSR results, net of hedges,
included the previously described MSR valuation adjustment related to
MSR sales.
Excluding the impact of correspondent channel originations, CRES direct
originations increased 42 percent and core production revenue increased
$472 million in the fourth quarter of 2012 from the year-ago quarter
primarily due to higher margins on increased volume of direct
originations.
Representations and warranties provision was $3.0 billion in the fourth
quarter of 2012, compared to $264 million in the fourth quarter of 2011,
an increase of $2.7 billion. The fourth-quarter provision included $2.5
billion for representations and warranties and provision of $0.5 billion
for obligations related to mortgage insurance rescissions related to the
Fannie Mae settlements.
The provision for credit losses in the fourth quarter of 2012 decreased
$516 million from the year-ago quarter to $485 million, driven by
improved portfolio trends in the non-purchased credit-impaired home
equity portfolio and reserve reductions in the purchased credit-impaired
(PCI) home equity portfolio due to the improved home price outlook.
Noninterest expense increased $1.1 billion from the fourth quarter of
2011 to $5.6 billion, primarily due to $1.1 billion of expense related
to the IFR acceleration agreement. In connection with this agreement,
the company agreed to a cessation of the IFR process and to make a $1.1
billion payment to a fund established for the benefit of borrowers
pursuant to a plan agreed to by the Office of the Comptroller of the
Currency and the Board of Governors of the Federal Reserve System. The
company will also provide $1.8 billion in borrower assistance, including
loan modifications and other foreclosure prevention actions. In
addition, there was an increase in default-related servicing expenses
from the year-ago quarter and an increase in mortgage-related
assessments, waivers and other similar costs associated with foreclosure
delays, including a provision of $260 million for compensatory fees in
connection with the Fannie Mae settlements. These increases were
partially offset by $800 million in lower litigation expense from the
fourth quarter of 2011.
The MSR asset was $5.7 billion at December 31, 2012, up $629 million
from September 30, 2012, due in part to the previously described MSR
valuation adjustment related to MSR sales.
Global Wealth and Investment Management (GWIM)
|
|
|
Three Months Ended
|
|
Year Ended
|
(Dollars in millions)
|
|
|
December 31 2012
|
|
December 31 2011
|
|
December 31 2012
|
|
December 31 2011
|
Total revenue, net of interest expense, FTE basis
|
|
|
$
|
4,194
|
|
|
$
|
3,943
|
|
|
$
|
16,517
|
|
|
$
|
16,495
|
|
Provision for credit losses
|
|
|
112
|
|
|
118
|
|
|
266
|
|
|
398
|
|
Noninterest expense
|
|
|
3,195
|
|
|
3,392
|
|
|
12,755
|
|
|
13,383
|
|
Net income
|
|
|
$
|
578
|
|
|
$
|
272
|
|
|
$
|
2,223
|
|
|
$
|
1,718
|
|
Return on average equity
|
|
|
12.43
|
%
|
|
6.22
|
%
|
|
12.53
|
%
|
|
9.90
|
%
|
Return on average economic capital1 |
|
|
28.46
|
|
|
16.02
|
|
|
30.52
|
|
|
25.46
|
|
Average loans and leases
|
|
|
$
|
103,785
|
|
|
$
|
97,722
|
|
|
$
|
100,456
|
|
|
$
|
96,974
|
|
Average deposits
|
|
|
249,658
|
|
|
237,098
|
|
|
242,384
|
|
|
241,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in billions)
|
|
|
|
|
|
|
At December 31, 2012
|
|
At December 31, 2011
|
Assets under management
|
|
|
|
|
|
|
$
|
698.1
|
|
|
$
|
635.6
|
|
Total client balances2 |
|
|
|
|
|
|
2,166.7
|
|
|
2,030.5
|
|
1 Return on average economic capital is a non-GAAP financial
measure. For reconciliation to GAAP financial measures, refer to pages
25-28 of this press release.
2 Total client balances are defined as assets under
management, assets in custody, client brokerage assets, client deposits
and loans.
Business Highlights
-
Record net income of $578 million for the quarter and $2.2 billion for
the year, up 29 percent from full-year 2011.
-
Record asset management fees of $1.6 billion for the quarter and $6.1
billion for the year.
-
Client activity was strong in 2012. For the full year, period-end
deposit balances increased $25.6 billion, up 11 percent from the
year-ago quarter to a record $266.2 billion; period-end loan balances
grew $7.3 billion, or 7 percent, to a record $105.9 billion; and
long-term AUM flows were $26.4 billion for the year. Fourth-quarter
2012 long-term AUM flows of $9.1 billion were the 14th consecutive
quarter of positive flows.
Financial Overview
Global Wealth and Investment Management net income rose $306 million
from the fourth quarter of 2011 to $578 million due to higher revenue
and lower noninterest expense. Revenue increased 6 percent to $4.2
billion, driven by higher asset management fees due to higher market
levels and long-term AUM flows, as well as higher brokerage
transactional revenue. The pretax margin was 21 percent for both the
fourth quarter of 2012 and full-year 2012, up from 11 percent in the
year-ago quarter and 16 percent for the full-year 2011.
Noninterest expense decreased 6 percent from the year-ago quarter to
$3.2 billion, due to lower FDIC expense and lower litigation and other
related expenses, partially offset by higher revenue-related
compensation. The provision for credit losses was $112 million which was
relatively flat compared to $118 million in the year-ago quarter.
Client balances rose 7 percent to $2.17 trillion driven by higher market
levels and net inflows, driven by client activity in long-term AUM,
deposits and loans. Assets under management rose $62.5 billion from the
fourth quarter of 2011 to $698.1 billion, driven by higher market levels
and long-term AUM flows.
Global Banking
|
|
Three Months Ended
|
|
Year Ended
|
(Dollars in millions)
|
|
December 31 2012
|
|
December 31 2011
|
|
December 31 2012
|
|
December 31 2011
|
Total revenue, net of interest expense, FTE basis
|
|
$
|
4,326
|
|
|
$
|
4,002
|
|
|
$
|
17,207
|
|
|
$
|
17,312
|
|
Provision for credit losses
|
|
180
|
|
|
(256
|
)
|
|
(103
|
)
|
|
(1,118
|
)
|
Noninterest expense
|
|
1,946
|
|
|
2,136
|
|
|
8,308
|
|
|
8,884
|
|
Net income
|
|
$
|
1,432
|
|
|
$
|
1,337
|
|
|
$
|
5,725
|
|
|
$
|
6,046
|
|
Return on average equity
|
|
12.47
|
%
|
|
11.51
|
%
|
|
12.47
|
%
|
|
12.76
|
%
|
Return on average economic capital1 |
|
27.32
|
|
|
25.06
|
|
|
27.21
|
|
|
26.59
|
|
Average loans and leases
|
|
$
|
278,218
|
|
|
$
|
276,850
|
|
|
$
|
272,625
|
|
|
$
|
265,568
|
|
Average deposits
|
|
268,045
|
|
|
240,757
|
|
|
249,317
|
|
|
237,312
|
|
1 Return on average economic capital is a non-GAAP financial
measure. For reconciliation to GAAP financial measures, refer to pages
25-28 of this press release.
Business Highlights
-
BofA Merrill was ranked No. 2 globally in investment banking fees for
both the fourth quarter and the full year of 2012, according to
Dealogic. Based on deal volumes for the year, BofA Merrill was ranked
among the top three banks in high-yield corporate debt, leveraged
loans, investment-grade corporate debt, asset-backed securities and
syndicated loans. Debt issuance fees of approximately $1.1 billion
during the fourth quarter of 2012 were the highest since the merger
between Bank of America and Merrill Lynch.
-
Period-end loan and lease balances increased $10.1 billion, or 4
percent from the year-ago quarter, to $288.3 billion at the end of the
fourth quarter of 2012, with growth in the commercial and industrial
and leasing portfolios.
-
Period-end deposits rose to $269.7 billion at the end of the fourth
quarter of 2012 from $246.4 billion at the end of the fourth quarter
of 2011.
Financial Overview
Global Banking net income of $1.4 billion was up $95
million from the year-ago quarter, as higher revenue and a decline in
noninterest expense were partially offset by an increase in provision
expense. Revenue of $4.3 billion was up 8 percent from the year-ago
quarter, primarily due to higher investment banking fees and net
interest income.
Firmwide investment banking fees of $1.6 billion, excluding self-led
deals, increased $587 million, or 58 percent from the year-ago quarter,
mainly due to a 84 percent increase in debt underwriting fees, a record
performance since the merger between Bank of America and Merrill Lynch.
Global Banking investment banking fees, excluding self-led deals, were
$842 million in the fourth quarter of 2012 compared to $629 million in
the year-ago quarter. Global Corporate Banking revenue of $1.4 billion
and Global Commercial Banking revenue of $2.0 billion remained
relatively unchanged compared to the year-ago quarter. Business Lending
revenue of $1.8 billion and Treasury Services revenue of $1.6 billion
remained in line with the year-ago quarter.
The provision for credit losses was $180 million in the fourth quarter
of 2012, compared to $68 million in the third quarter of 2012 and a
benefit of $256 million in the prior-year quarter. The increase from the
prior quarter was driven primarily by the impact of regulatory guidance
on consumer dealer finance loans discharged from bankruptcy and
commercial loan growth. Compared to the year-ago quarter, provision
expense increased primarily due to lower reserve releases as asset
quality stabilized in the portfolio. Noninterest expense was $1.9
billion, down 9 percent from the year-ago quarter, primarily from lower
personnel-related and operating expenses.
Global Markets
|
|
|
Three Months Ended
|
|
Year Ended
|
(Dollars in millions)
|
|
|
December 31 2012
|
|
December 31 2011
|
|
December 31 2012
|
|
December 31 2011
|
Total revenue, net of interest expense, FTE basis
|
|
|
$
|
2,844
|
|
|
$
|
1,807
|
|
|
$
|
13,519
|
|
|
$
|
14,798
|
|
Total revenue, net of interest expense, FTE basis, excluding DVA1 |
|
|
3,120
|
|
|
2,281
|
|
|
15,967
|
|
|
13,797
|
|
Provision for credit losses
|
|
|
16
|
|
|
(18
|
)
|
|
3
|
|
|
(56
|
)
|
Noninterest expense
|
|
|
2,498
|
|
|
2,895
|
|
|
10,839
|
|
|
12,244
|
|
Net income (loss)
|
|
|
$
|
152
|
|
|
$
|
(768
|
)
|
|
$
|
1,054
|
|
|
$
|
988
|
|
Net income (loss), excluding DVA and U.K. tax1 |
|
|
326
|
|
|
(469
|
)
|
|
3,377
|
|
|
1,131
|
|
Return on average equity2 |
|
|
3.39
|
%
|
|
n/m
|
|
5.99
|
%
|
|
4.36
|
%
|
Return on average economic capital3 |
|
|
4.63
|
|
|
n/m
|
|
8.20
|
|
|
5.54
|
|
Total average assets
|
|
|
$
|
628,449
|
|
|
$
|
552,911
|
|
|
$
|
588,459
|
|
|
$
|
590,474
|
|
1 Total revenue, net of interest expense, on an FTE basis
excluding DVA is a non-GAAP financial measure. DVA gains (losses) were
$(276) million and $(474) million for the three months ended
December 31, 2012 and 2011, and $(2.4) billion and $1.0 billion for the
years ended December 31, 2012 and 2011. U.K. corporate tax rate
adjustments were $781 million and $774 million for the years ended
December 31, 2012 and 2011.
2 Return on average equity, excluding DVA and U.K. corporate
tax rate adjustments was 19.19% and 4.99% for the years ended
December 31, 2012 and 2011.
3 Return on average economic capital is a non-GAAP financial
measure. Return on average economic capital excluding DVA and the U.K.
corporate tax rate adjustments was 26.14% and 6.34% for the years ended
December 31, 2012 and 2011. For reconciliation to GAAP financial
measures, refer to pages 25-28 of this press release.
n/m = not meaningful
Business Highlights
-
Total revenue, excluding the impact of DVAE, increased 37
percent in the fourth quarter of 2012 to $3.1 billion from $2.3
billion in the fourth quarter of 2011. Sales and trading revenue,
excluding the impact of DVAE, was $2.5 billion in the
fourth quarter of 2012, compared to $2.0 billion in the fourth quarter
of 2011.
Financial Overview
Global Markets reported net income in the fourth quarter of 2012 of $152
million, compared to a net loss of $768 million in the year-ago quarter.
Excluding DVAE losses, net income was $326 million in the
fourth quarter of 2012, compared to net income of $789 million in the
third quarter of 2012 (excluding the impact of the U.K. tax rate change)
and a net loss of $469 million in the year-ago quarter.
Global Markets revenue increased $1.0 billion from the year-ago quarter
to $2.8 billion. Excluding DVAE, revenue increased $839
million to $3.1 billion driven by higher sales and trading revenue and
an increase in debt issuance activity. The current quarter included DVA
losses of $276 million, compared to DVA losses of $474 million in the
year-ago quarter.
Fixed Income, Currency and Commodities (FICC) sales and trading revenue,
excluding DVAF, was $1.8 billion in the fourth quarter of
2012, an increase of $485 million from the year-ago quarter, driven by
credit businesses which benefited from improved credit markets in Europe
and in the financial sector. Equities sales and trading revenue,
excluding DVAF, was $713 million, an increase of $61 million
from the year-ago quarter due to increased client balances in financing
and improved trading performance in derivatives.
Noninterest expense declined to $2.5 billion from $2.9 billion in the
year-ago quarter, primarily driven by a decrease in personnel-related
expense.
All Other1
|
|
|
Three Months Ended
|
|
Year Ended
|
(Dollars in millions)
|
|
|
December 31 2012
|
|
December 31 2011
|
|
December 31 2012
|
|
December 31 2011
|
Total revenue, net of interest expense, FTE basis
|
|
|
$
|
(145
|
)
|
|
$
|
4,513
|
|
|
$
|
(790
|
)
|
|
$
|
16,095
|
Provision for credit losses
|
|
|
448
|
|
|
792
|
|
|
2,620
|
|
|
6,172
|
Noninterest expense
|
|
|
971
|
|
|
2,101
|
|
|
6,092
|
|
|
6,253
|
Net income (loss)
|
|
|
$
|
864
|
|
|
$
|
1,350
|
|
|
$
|
(3,628
|
)
|
|
$
|
4,712
|
Total average loans
|
|
|
245,820
|
|
|
277,744
|
|
|
258,012
|
|
|
289,010
|
1 All Other consists of ALM activities, equity investments,
liquidating businesses and other. ALM activities encompass the
whole-loan residential mortgage portfolio and investment securities,
interest rate and foreign currency risk management activities including
the residual net interest income allocation, gains/losses on structured
liabilities, and the impact of certain allocation methodologies and
accounting hedge ineffectiveness. Equity Investments includes Global
Principal Investments, strategic and certain other investments. Other
includes certain residential mortgage and discontinued real estate loans
that are managed by Legacy Assets & Servicing within CRES.
All Other reported net income of $864 million in the fourth quarter of
2012, compared to net income of $1.4 billion for the year-ago quarter,
as a reduction in revenue was partially offset by lower provision for
credit losses, lower noninterest expense and the income tax benefit
related to the recognition of certain foreign tax credits.
The decline in revenue was primarily driven by lower equity investment
income, $1.2 billion in gains related to exchanges of trust preferred
securities in the year-ago quarter and a decrease of $1.0 billion in
gains on the sale of debt securities from the fourth quarter of 2011.
This decline was partially offset by lower negative FVO adjustments in
the most recent quarter compared to a year ago. Negative FVO adjustments
totaled $442 million in the fourth quarter of 2012, compared to a
negative $814 million in the fourth quarter of 2011.
Equity investment income was $570 million in the fourth quarter of 2012,
compared to $3.1 billion in the year-ago quarter. The fourth quarter of
2012 included a $370 million gain on the sale of our interest in the
Japanese brokerage joint venture and the year-ago period included a $2.9
billion gain on the sale of a portion of the company's investment in
CCB. Gains on the sale of debt securities totaled $116 million in the
fourth quarter of 2012, down from $1.1 billion in the year-ago quarter.
The decrease in the provision for credit losses was driven primarily by
the impact of an improved home price outlook on the discontinued real
estate and residential mortgage PCI portfolios driving reserve
reductions in the current quarter compared to reserve builds a year ago.
Noninterest expense decreased compared to the fourth quarter of 2011 as
the year-ago period included a $581 million goodwill impairment charge
in the European consumer card business.
Corporate Overview
Revenue and Expense
|
|
|
Three Months Ended
|
|
Year Ended
|
(Dollars in millions, except per share data)
|
|
|
December 31 2012
|
|
December 31 2011
|
|
December 31 2012
|
|
December 31 2011
|
Net interest income, FTE basis1 |
|
|
$
|
10,555
|
|
|
$
|
10,959
|
|
|
$
|
41,557
|
|
|
$
|
45,588
|
Noninterest income
|
|
|
8,336
|
|
|
14,187
|
|
|
42,678
|
|
|
48,838
|
Total revenue, net of interest expense, FTE basis
|
|
|
18,891
|
|
|
25,146
|
|
|
84,235
|
|
|
94,426
|
Total revenue, net of interest expense, FTE basis, excluding DVA
and FVO2 |
|
|
19,610
|
|
|
26,434
|
|
|
91,819
|
|
|
90,106
|
Provision for credit losses
|
|
|
2,204
|
|
|
2,934
|
|
|
8,169
|
|
|
13,410
|
Noninterest expense3 |
|
|
18,360
|
|
|
18,941
|
|
|
72,093
|
|
|
77,090
|
Goodwill impairment charges
|
|
|
—
|
|
|
581
|
|
|
—
|
|
|
3,184
|
Net income
|
|
|
$
|
732
|
|
|
$
|
1,991
|
|
|
$
|
4,188
|
|
|
$
|
1,446
|
Diluted earnings per common share
|
|
|
$
|
0.03
|
|
|
$
|
0.15
|
|
|
$
|
0.25
|
|
|
$
|
0.01
|
1 Fully taxable-equivalent (FTE) basis is a non-GAAP
financial measure. For reconciliation to GAAP financial measures, refer
to pages 25-28 of this press release. Net interest income on a GAAP
basis was $10.3 billion and $10.7 billion for the three months ended
December 31, 2012 and 2011, and $40.7 billion and $44.6 billion for the
years ended December 31, 2012 and 2011. Total revenue, net of interest
expense, on a GAAP basis, was $18.7 billion and $24.9 billion for the
three months ended December 31, 2012 and 2011, and $83.3 billion and
$93.5 billion for the years ended December 31, 2012 and 2011.
2 Total revenue, net of interest expense, on an FTE basis
excluding DVA and FVO adjustments is a non-GAAP financial measure. DVA
gains (losses) were $(277) million and $(474) million for the three
months ended December 31, 2012 and 2011 and $(2.5) billion and $1.0
billion for the years ended December 31, 2012 and 2011. Valuation gains
(losses) related to FVO were $(442) million and $(814) million for the
three months ended December 31, 2012 and 2011, and $(5.1) billion and
$3.3 billion for the years ended December 31, 2012 and 2011.
3 Excludes goodwill impairment charges of $581 million for
the three months ended December 31, 2011, and $3.2 billion for the year
ended December 31, 2011. Noninterest expense, excluding goodwill
impairment charges, is a non-GAAP financial measure.
Revenue, net of interest expense, on an FTE basis was $18.9 billion,
down from $25.1 billion in the fourth quarter of 2011, driven largely by
mortgage banking losses as a result of the recently announced
settlements with Fannie Mae, lower equity investment income, reduced
gains on the sale of debt securities and lower other income. These
decreases were partially offset by higher investment banking income and
increased trading account profits.
Fourth-quarter 2012 revenue, net of interest expense, on an FTE basis,
excluding $0.7 billion of debit valuation adjustments and fair value
option adjustments, was $19.6 billion; excluding $3.0 billion of Fannie
Mae settlement-related provisions for representations and warranties and
obligations related to mortgage insurance rescissions related to
settlement agreements with Fannie Mae revenue, net of interest expense,
on an FTE basis was $22.6 billionB.
Net interest income, on an FTE basis, totaled $10.6 billion in the
fourth quarter of 2012, compared to $10.2 billion in the third quarter
of 2012 and $11.0 billion in the fourth quarter of 2011B. The
decline from the year-ago quarter was due to the impact of lower
consumer loan balances and the Asset and Liability Management (ALM)
portfolio recouponing at lower rates, partially offset by ongoing
reductions in long-term debt balances and lower rates paid on deposits.
Net interest income in the fourth quarter of 2012 also included
unfavorable market-related premium amortization expense of $61 million.
Net interest margin was 2.35 percent in the fourth quarter of 2012,
compared to 2.32 percent in the third quarter of 2012 and 2.45 percent
in the fourth quarter of 2011.
Noninterest income decreased $5.9 billion from the year-ago quarter,
driven largely by mortgage banking losses as a result of Fannie Mae
settlement-related provisions of $2.5 billion for representations and
warranties and $0.5 billion for obligations related to mortgage
insurance rescissions, and a $2.9 billion gain related to the sale of a
portion of the company's investment in CCB in the year-ago quarter.
Equity investment income was down $2.5 billion from the fourth quarter
of 2011, reflecting the impact of the CCB gain mentioned above. In
addition, other income decreased as the year-ago quarter included $1.2
billion of gains related to liability management activities, partially
offset by lower negative FVO adjustments of $442 million in the fourth
quarter of 2012, compared to a negative $814 million in the fourth
quarter of 2011. Results in the fourth quarter of 2012 were also
impacted by DVA losses of $277 million, compared to losses of $474
million in the year-ago quarter. Gains on the sale of debt securities
totaled $171 million in the fourth quarter of 2012, down from $1.2
billion in the year-ago quarter.
Noninterest expense decreased $1.2 billion compared to the year-ago
quarter primarily as a result of a decrease in personnel expense as the
company continues to streamline processes and achieve cost savings.
Also, the year-ago period included a $581 million goodwill impairment
charge. Other general operating expense in the current quarter included
$1.1 billion to cease the IFR. Litigation expense was $916 million in
the fourth quarter of 2012, compared to $1.8 billion in the fourth
quarter of 2011.
Income tax benefit for the fourth quarter of 2012 was $2.6 billion on a
$1.9 billion pretax loss and included a $1.3 billion net income tax
benefit primarily from the recognition of foreign tax credits of certain
non-U.S. subsidiaries. This compares to income tax expense of $441
million on $2.4 billion of pretax income in the year-ago quarter.
Credit Quality
|
|
|
Three Months Ended
|
|
Year Ended
|
(Dollars in millions)
|
|
|
December 31 2012
|
|
December 31 2011
|
|
December 31 2012
|
|
December 31 2011
|
Provision for credit losses
|
|
|
$
|
2,204
|
|
|
$
|
2,934
|
|
|
$
|
8,169
|
|
|
$
|
13,410
|
|
Net charge-offs
|
|
|
3,104
|
|
|
4,054
|
|
|
14,908
|
|
|
20,833
|
|
Net charge-off ratio1 |
|
|
1.40
|
%
|
|
1.74
|
%
|
|
1.67
|
%
|
|
2.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31 2012
|
|
December 31 2011
|
Nonperforming loans, leases and foreclosed properties
|
|
|
|
|
|
|
$
|
23,555
|
|
|
$
|
27,708
|
|
Nonperforming loans, leases and foreclosed properties ratio2 |
|
|
|
|
|
|
2.62
|
%
|
|
3.01
|
%
|
Allowance for loan and lease losses
|
|
|
|
|
|
|
$
|
24,179
|
|
|
$
|
33,783
|
|
Allowance for loan and lease losses ratio3 |
|
|
|
|
|
|
2.69
|
%
|
|
3.68
|
%
|
1 Net charge-off ratios are calculated as net charge-offs
divided by average outstanding loans and leases during the period;
quarterly results are annualized.
2 Nonperforming loans, leases and foreclosed properties
ratios are calculated as nonperforming loans, leases and foreclosed
properties divided by outstanding loans, leases and foreclosed
properties at the end of the period.
3 Allowance for loan and lease losses ratios are 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 measured under the fair value option.
Credit quality continued to improve in the fourth quarter of 2012, with
net charge-offs declining across nearly all major portfolios and the
provision for credit losses decreasing significantly from a year ago.
Additionally, 30+ day performing delinquent loans, excluding fully
insured loans, declined across all major consumer portfolios, and
reservable criticized balances also continued to decline, down 42
percent from the year-ago period.
Net charge-offs of $3.1 billion in the fourth quarter of 2012 decreased
$1.0 billion from the third quarter of 2012 and declined $950 million
from the fourth quarter of 2011. The decline from the prior quarter was
due to the absence of $435 million in charge-offs related to the
National Mortgage Settlement and $478 million related to the impact of a
change in regulatory guidance regarding the treatment of loans
discharged in bankruptcy. Excluding these impacts, the decline was
driven primarily by lower delinquencies in the Card Services portfolio.
The improvement from a year ago was driven by credit quality improvement
across nearly all major portfolios.
The provision for credit losses increased by $430 million in the fourth
quarter of 2012 to $2.2 billion compared to the third quarter of 2012
and declined $730 million from $2.9 billion in the fourth quarter of
2011. The provision for credit losses in the fourth quarter of 2012 was
$900 million lower than net charge-offs, resulting in a reduction in the
allowance for credit losses. This included a $430 million benefit in the
PCI portfolio due to an improved home price outlook. The remaining
reduction was driven primarily by improvement in bankruptcies and
delinquencies across the Card Services portfolio.
The allowance for loan and lease losses to annualized net charge-off
coverage ratio was 1.96 times in the fourth quarter of 2012, compared
with 1.60 times in the third quarter of 2012 and 2.10 times in the
fourth quarter of 2011. The increase from the third quarter of 2012 was
due to the net charge-off events noted above. Excluding PCI loans, the
allowance to annualized net charge-off coverage ratio was 1.51 times,
1.17 times and 1.57 times for the same periods, respectively.
Nonperforming loans, leases and foreclosed properties were $23.6 billion
at December 31, 2012, a decrease from $24.9 billion at September 30,
2012 and $27.7 billion at December 31, 2011.
Capital and Liquidity Management
(Dollars in millions, except per share information)
|
|
|
At December 31 2012
|
|
At September 30 2012
|
|
At December 31 2011
|
Total shareholders’ equity
|
|
|
$
|
236,956
|
|
|
$
|
238,606
|
|
|
$
|
230,101
|
|
Tier 1 common capital
|
|
|
133,403
|
|
|
136,406
|
|
|
126,690
|
|
Tier 1 common capital ratio
|
|
|
11.06
|
%
|
|
11.41
|
%
|
|
9.86
|
%
|
Tangible common equity ratio1 |
|
|
6.74
|
|
|
6.95
|
|
|
6.64
|
|
Common equity ratio
|
|
|
9.87
|
|
|
10.15
|
|
|
9.94
|
|
Tangible book value per share1 |
|
|
$
|
13.36
|
|
|
$
|
13.48
|
|
|
$
|
12.95
|
|
Book value per share
|
|
|
20.24
|
|
|
20.40
|
|
|
20.09
|
|
1 Tangible common equity ratio and tangible book value per
share are non-GAAP financial measures. For reconciliation to GAAP
financial measures, refer to pages 25-28 of this press release.
The Tier 1 common capital ratio under Basel 1 was 11.06 percent at
December 31, 2012, compared to 11.41 percent at September 30, 2012 and
9.86 percent at December 31, 2011. The Tier 1 capital ratio was 12.89
percent at December 31, 2012, compared to 13.64 percent at September 30,
2012 and 12.40 percent at December 31, 2011. The decline in the Tier 1
common capital ratio (Basel 1) from the third quarter of 2012 was
primarily driven by a decline in Tier 1 common capital due to pretax
losses and higher risk-weighted assets on commercial loan growth.
As of December 31, 2012, the company's Tier 1 common capital ratio on a
Basel 3 fully phased-in basis was estimated at 9.25 percent, up from
8.97 percent at September 30, 2012A.Basel 3
estimates are based on the company's current understanding of the U.S.
Basel 3 NPRs, assuming all regulatory model approvals, except for the
potential reduction to the risk-weighted assets resulting from the
Comprehensive Risk Measure after one year. Under Basel 3, the Tier 1
common capital ratio increased from the estimate for the third quarter
of 2012 as the adverse impacts of the pretax losses, the unrealized loss
on available-for-sale debt securities that was recognized in other
comprehensive income and the increase in threshold deductions were more
than offset by lower risk-weighted assets. The decline in risk-weighted
assets was primarily due to lower exposures and updates of recent loss
experience in our credit models.
At December 31, 2012, the company's total Global Excess Liquidity
Sources were $372 billion, a modest reduction of $6 billion from the
fourth quarter of 2011, while long-term debt declined by $96.7 billion
from the year-ago period. Time-to-required funding was 33 months at
December 31, 2012, compared to 35 months at September 30, 2012 and 29
months at December 31, 2011.
During the fourth quarter of 2012, a cash dividend of $0.01 per common
share was paid and the company recorded $365 million in preferred
dividends. Period-end common shares issued and outstanding were 10.78
billion and 10.54 billion for the fourth quarter of 2012 and 2011.
------------------------------
A Basel 3 Tier 1 common capital ratio is a non-GAAP financial
measure. For a reconciliation to GAAP financial measures, refer to page
21 of this press release. Basel 3 estimates reflect the company's
current understanding of the U.S. Basel 3 NPRs and assume all necessary
regulatory model approvals, except for the potential reduction to the
risk-weighted assets resulting from the Comprehensive Risk Measure after
one year.
B Fully taxable-equivalent (FTE) basis is a non-GAAP
financial measure. Revenue, net of interest expense, on a FTE basis
excluding debit valuation adjustments and fair value option adjustments,
and also excluding provisions for representations and warranties and
mortgage insurance rescissions related to the settlement agreements with
Fannie Mae, are non-GAAP financial measures. For reconciliation to GAAP
financial measures, refer to pages 25-28 of this press release. Net
interest income on a GAAP basis was $10.3 billion and $10.7 billion for
the three months ended December 31, 2012 and 2011, and $40.7 billion and
$44.6 billion for the years ended December 31, 2012 and 2011. Total
revenue, net of interest expense, on a GAAP basis, was $18.7 billion and
$24.9 billion for the three months ended December 31, 2012 and 2011, and
$83.3 billion and $93.5 billion for the years ended December 31, 2012
and 2011.
C 2006 and 2008 amounts are on a managed basis.
D Tangible book value per share of common stock is a non-GAAP
financial measure. Other companies may define or calculate this measure
differently. For a reconciliation to GAAP financial measures, refer to
pages 25-28 of this press release.
E Sales and trading revenue, excluding the impact of DVA, is
a non-GAAP financial measure. DVA gains (losses) were $(276) million and
$(474) million for the three months ended December 31, 2012 and 2011,
and $(2.4) billion and $1.0 billion for the years ended December 31,
2012 and 2011.
F Fixed Income, Currency and Commodities sales and trading
revenue, excluding DVA, is a non-GAAP financial measure. DVA
gains(losses) were $(237) million and $(495) million for the three
months ended December 31, 2012 and 2011, and $(2.2) billion and $794
million for the years ended December 31, 2012 and 2011. Equities
revenue, excluding DVA, is a non-GAAP financial measure. DVA gains
(losses) were $(39) million and $21 million for the three months ended
December 31, 2012 and 2011, and $(253) million and $207 million for the
years ended December 31, 2012 and 2011.
Note: Chief Executive Officer Brian Moynihan and Chief Financial
Officer Bruce Thompson will discuss fourth-quarter 2012 results in a
conference call at 8:30 a.m. ET today. The presentation and supporting
materials can be accessed on the Bank of America Investor Relations Web
site at http://investor.bankofamerica.com.
For a listen-only connection to the conference call, dial 1.877.200.4456
(U.S.) or 1.785.424.1734 (international) and the conference ID:
79795.
Bank of America
Bank of America is one of the world's largest 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 53 million consumer and small business
relationships with approximately 5,500 retail banking offices and
approximately 16,300 ATMs and award-winning online banking with 30
million active users. Bank of America is among the world's leading
wealth management companies and is a global leader in 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 in more than 40 countries. Bank of America
Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial
Average and is listed on the New York Stock Exchange.
Forward-looking Statements
Bank of America 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,” “estimates,” “intends,” “plans,”
“goals,” “believes” and other similar expressions or future or
conditional verbs such as “will,” “should,” “would” and “could.” The
forward-looking statements made represent Bank of America's current
expectations, plans or forecasts of its future results and revenues,
including continued momentum in deposits, first-lien mortgage
production, GWIM earnings, commercial loans and investment banking; the
company's stated primary focus in 2013 to grow revenue, manage expenses
and drive core earnings growth; the estimates of liability and range of
possible loss for various representations and warranties claims; actions
to be taken pursuant to and effects of the Fannie Mae settlements and
the IFR acceleration agreement; and other similar matters. These
statements are not guarantees of future results or performance and
involve certain risks, uncertainties and assumptions that are difficult
to predict and are often beyond Bank of America's control. Actual
outcomes and results may differ materially from those expressed in, or
implied by, any of these forward-looking statements.
You should not place undue reliance on any forward-looking statement
and should consider all of the following uncertainties and risks, as
well as those more fully discussed under Item 1A. “Risk Factors” of Bank
of America's 2011 Annual Report on Form 10-K, and in any of Bank of
America's subsequent SEC filings; the company's ability to obtain
required approvals or consents from third parties with respect to the
MSR sale agreements, including that there is no assurance that the
applicable approvals and consents will be obtained, and accordingly some
of these transfers may not be consummated; the company's resolution of
remaining differences with the government-sponsored enterprises (GSEs)
regarding representations and warranties repurchase claims, including in
some cases with respect to mortgage insurance rescissions and
foreclosure delays; the company's ability to resolve representations and
warranties claims made by monolines and private-label and other
investors, including as a result of any adverse court rulings, and the
chance that the company could face related servicing, securities, fraud,
indemnity or other claims from one or more of the monolines or
private-label and other investors; if future representations and
warranties losses occur in excess of the company's recorded liability
and estimated range of possible loss for GSE and non-GSE exposures;
uncertainties about the financial stability of several countries in the
European Union (EU), the increasing risk that those countries may
default on their sovereign debt or exit the EU and related stresses on
financial markets, the euro and the EU and the company's direct and
indirect exposures to such risks; the uncertainty regarding the timing
and final substance of any capital or liquidity standards, including the
final Basel 3 requirements and their implementation for U.S. banks
through rulemaking by the Federal Reserve, including anticipated
requirements to hold higher levels of regulatory capital, liquidity and
meet higher regulatory capital ratios as a result of final Basel 3 or
other capital or liquidity standards; the negative impact of the
Dodd-Frank Wall Street Reform and Consumer Protection Act on the
company's businesses and earnings, including as a result of additional
regulatory interpretation and rulemaking and the success of the
company's actions to mitigate such impacts; the company's satisfaction
of its borrower assistance programs under the global settlement
agreement with federal agencies and state attorneys general and under
the acceleration agreement with the OCC and the Federal Reserve; 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; unexpected claims, damages and fines resulting from
pending or future litigation and regulatory proceedings; the company's
ability to fully realize the cost savings and other anticipated benefits
from Project New BAC, including in accordance with currently anticipated
timeframes; and other similar matters.
Forward-looking statements speak only as of the date they are made,
and Bank of America 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.
BofA Global Capital Management Group, LLC (BofA Global Capital
Management) is an asset management division of Bank of America
Corporation. BofA Global Capital Management entities furnish investment
management services and products for institutional and individual
investors.
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, visit the Bank of America newsroom at http://newsroom.bankofamerica.com.
www.bankofamerica.com
|
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|
|
|
|
|
|
|
|
|
|
|
Bank of America Corporation and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions, except per share data; shares in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Income Statement
|
|
Year Ended December 31
|
|
|
|
Fourth Quarter 2012
|
|
|
|
|
Third Quarter 2012
|
|
|
|
|
Fourth Quarter 2011
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
40,656
|
|
|
$
|
44,616
|
|
|
|
|
$
|
10,324
|
|
|
|
|
|
$
|
9,938
|
|
|
|
|
|
$
|
10,701
|
|
Noninterest income
|
|
42,678
|
|
|
48,838
|
|
|
|
|
8,336
|
|
|
|
|
|
10,490
|
|
|
|
|
|
14,187
|
|
Total revenue, net of interest expense
|
|
83,334
|
|
|
93,454
|
|
|
|
|
18,660
|
|
|
|
|
|
20,428
|
|
|
|
|
|
24,888
|
|
Provision for credit losses
|
|
8,169
|
|
|
13,410
|
|
|
|
|
2,204
|
|
|
|
|
|
1,774
|
|
|
|
|
|
2,934
|
|
Goodwill impairment
|
|
—
|
|
|
3,184
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
581
|
|
Merger and restructuring charges
|
|
—
|
|
|
638
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
101
|
|
All other noninterest expense (1) |
|
72,093
|
|
|
76,452
|
|
|
|
|
18,360
|
|
|
|
|
|
17,544
|
|
|
|
|
|
18,840
|
|
Income (loss) before income taxes
|
|
3,072
|
|
|
(230
|
)
|
|
|
|
(1,904
|
)
|
|
|
|
|
1,110
|
|
|
|
|
|
2,432
|
|
Income tax expense (benefit)
|
|
(1,116
|
)
|
|
(1,676
|
)
|
|
|
|
(2,636
|
)
|
|
|
|
|
770
|
|
|
|
|
|
441
|
|
Net income
|
|
$
|
4,188
|
|
|
$
|
1,446
|
|
|
|
|
$
|
732
|
|
|
|
|
|
$
|
340
|
|
|
|
|
|
$
|
1,991
|
|
Preferred stock dividends
|
|
1,428
|
|
|
1,361
|
|
|
|
|
365
|
|
|
|
|
|
373
|
|
|
|
|
|
407
|
|
Net income (loss) applicable to common shareholders
|
|
$
|
2,760
|
|
|
$
|
85
|
|
|
|
|
$
|
367
|
|
|
|
|
|
$
|
(33
|
)
|
|
|
|
|
$
|
1,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
$
|
0.26
|
|
|
$
|
0.01
|
|
|
|
|
$
|
0.03
|
|
|
|
|
|
$
|
0.00
|
|
|
|
|
|
$
|
0.15
|
|
Diluted earnings per common share
|
|
0.25
|
|
|
0.01
|
|
|
|
|
0.03
|
|
|
|
|
|
0.00
|
|
|
|
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Average Balance Sheet
|
|
Year Ended December 31
|
|
|
|
Fourth Quarter 2012
|
|
|
|
|
Third Quarter 2012
|
|
|
|
|
Fourth Quarter 2011
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases
|
|
$
|
898,768
|
|
|
$
|
938,096
|
|
|
|
|
$
|
893,166
|
|
|
|
|
|
$
|
888,859
|
|
|
|
|
|
$
|
932,898
|
|
Debt securities
|
|
337,653
|
|
|
337,120
|
|
|
|
|
339,779
|
|
|
|
|
|
340,773
|
|
|
|
|
|
332,990
|
|
Total earning assets
|
|
1,769,969
|
|
|
1,834,659
|
|
|
|
|
1,788,936
|
|
|
|
|
|
1,750,275
|
|
|
|
|
|
1,783,986
|
|
Total assets
|
|
2,191,356
|
|
|
2,296,322
|
|
|
|
|
2,210,365
|
|
|
|
|
|
2,173,312
|
|
|
|
|
|
2,207,567
|
|
Total deposits
|
|
1,047,782
|
|
|
1,035,802
|
|
|
|
|
1,078,076
|
|
|
|
|
|
1,049,697
|
|
|
|
|
|
1,032,531
|
|
Common shareholders’ equity
|
|
216,996
|
|
|
211,709
|
|
|
|
|
219,744
|
|
|
|
|
|
217,273
|
|
|
|
|
|
209,324
|
|
Total shareholders’ equity
|
|
235,677
|
|
|
229,095
|
|
|
|
|
238,512
|
|
|
|
|
|
236,039
|
|
|
|
|
|
228,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
|
|
Year Ended December 31
|
|
|
|
Fourth Quarter 2012
|
|
|
|
|
Third Quarter 2012
|
|
|
|
|
Fourth Quarter 2011
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
0.19
|
%
|
|
0.06
|
%
|
|
|
|
0.13
|
%
|
|
|
|
|
0.06
|
%
|
|
|
|
|
0.36
|
%
|
Return on average tangible shareholders’ equity (2) |
|
2.60
|
|
|
0.96
|
|
|
|
|
1.77
|
|
|
|
|
|
0.84
|
|
|
|
|
|
5.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Quality
|
|
Year Ended December 31
|
|
|
|
Fourth Quarter 2012
|
|
|
|
|
Third Quarter 2012
|
|
|
|
|
Fourth Quarter 2011
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
Total net charge-offs
|
|
$
|
14,908
|
|
|
$
|
20,833
|
|
|
|
|
$
|
3,104
|
|
|
|
|
|
$
|
4,122
|
|
|
|
|
|
$
|
4,054
|
|
Net charge-offs as a % of average loans and leases outstanding (3) |
|
1.67
|
%
|
|
2.24
|
%
|
|
|
|
1.40
|
%
|
|
|
|
|
1.86
|
%
|
|
|
|
|
1.74
|
%
|
Provision for credit losses
|
|
$
|
8,169
|
|
|
$
|
13,410
|
|
|
|
|
$
|
2,204
|
|
|
|
|
|
$
|
1,774
|
|
|
|
|
|
$
|
2,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31 2012
|
|
|
|
|
September 30 2012
|
|
|
|
|
December 31 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming loans, leases and foreclosed properties (4) |
|
|
|
|
|
|
|
$
|
23,555
|
|
|
|
|
|
$
|
24,925
|
|
|
|
|
|
$
|
27,708
|
|
Nonperforming loans, leases and foreclosed properties as a % of
total loans, leases and foreclosed properties (3) |
|
|
|
|
|
|
|
2.62
|
%
|
|
|
|
|
2.81
|
%
|
|
|
|
|
3.01
|
%
|
Allowance for loan and lease losses
|
|
|
|
|
|
|
|
$
|
24,179
|
|
|
|
|
|
$
|
26,233
|
|
|
|
|
|
$
|
33,783
|
|
Allowance for loan and lease losses as a % of total loans and leases
outstanding (3) |
|
|
|
|
|
|
|
2.69
|
%
|
|
|
|
|
2.96
|
%
|
|
|
|
|
3.68
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This information is preliminary and based on company data
available at the time of the presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of America Corporation and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions, except per share data; shares in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Management
|
|
|
|
|
|
|
|
December 31 2012
|
|
|
|
September 30 2012
|
|
|
|
|
December 31 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk-based capital (5):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 common capital (6) |
|
|
|
|
|
|
|
$
|
133,403
|
|
|
|
|
$
|
136,406
|
|
|
|
|
|
$
|
126,690
|
|
Tier 1 common capital ratio (6) |
|
|
|
|
|
|
|
11.06
|
%
|
|
|
|
11.41
|
%
|
|
|
|
|
9.86
|
%
|
Tier 1 leverage ratio
|
|
|
|
|
|
|
|
7.36
|
|
|
|
|
7.84
|
|
|
|
|
|
7.53
|
|
Tangible equity ratio (7) |
|
|
|
|
|
|
|
7.62
|
|
|
|
|
7.85
|
|
|
|
|
|
7.54
|
|
Tangible common equity ratio (7) |
|
|
|
|
|
|
|
6.74
|
|
|
|
|
6.95
|
|
|
|
|
|
6.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end common shares issued and outstanding
|
|
|
|
|
|
|
|
10,778,264
|
|
|
|
|
10,777,267
|
|
|
|
|
|
10,535,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basel 1 to Basel 3 Reconciliation
(8)
|
|
|
|
|
|
|
|
December 31 2012
|
|
|
|
September 30 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital – Basel 1 to Basel 3 (fully phased-in)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basel 1 Tier 1 capital
|
|
|
|
|
|
|
|
$
|
155,461
|
|
|
|
|
$
|
163,063
|
|
|
|
|
|
|
Deduction of preferred stock, non-qualifying preferred stock and
minority interest in equity accounts of consolidated subsidiaries
|
|
|
|
|
|
|
|
(22,058
|
)
|
|
|
|
(26,657
|
)
|
|
|
|
|
|
Basel 1 Tier 1 common capital
|
|
|
|
|
|
|
|
133,403
|
|
|
|
|
136,406
|
|
|
|
|
|
|
Deduction of defined benefit pension assets
|
|
|
|
|
|
|
|
(737
|
)
|
|
|
|
(1,709
|
)
|
|
|
|
|
|
Change in deferred tax asset and other threshold deductions (MSRs
and significant investments)
|
|
|
|
|
|
|
|
(3,020
|
)
|
|
|
|
(1,102
|
)
|
|
|
|
|
|
Change in all other deductions, net
|
|
|
|
|
|
|
|
(1,020
|
)
|
|
|
|
1,040
|
|
|
|
|
|
|
Basel 3 (fully phased-in) Tier 1 common capital
|
|
|
|
|
|
|
|
$
|
128,626
|
|
|
|
|
$
|
134,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets – Basel 1 to Basel 3 (fully phased-in)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basel 1
|
|
|
|
|
|
|
|
$
|
1,205,660
|
|
|
|
|
$
|
1,195,722
|
|
|
|
|
|
|
Net change in credit and other risk-weighted assets
|
|
|
|
|
|
|
|
103,401
|
|
|
|
|
216,244
|
|
|
|
|
|
|
Increase due to market risk amendment
|
|
|
|
|
|
|
|
81,811
|
|
|
|
|
88,881
|
|
|
|
|
|
|
Basel 3 (fully phased-in)
|
|
|
|
|
|
|
|
$
|
1,390,872
|
|
|
|
|
$
|
1,500,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 common capital ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basel 1
|
|
|
|
|
|
|
|
11.06
|
%
|
|
|
|
11.41
|
%
|
|
|
|
|
|
Basel 3 (fully phased-in)
|
|
|
|
|
|
|
|
9.25
|
|
|
|
|
8.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31
|
|
|
|
Fourth Quarter 2012
|
|
|
|
Third Quarter 2012
|
|
|
|
|
Fourth Quarter 2011
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
Common shares issued (9) |
|
242,326
|
|
|
450,783
|
|
|
|
|
997
|
|
|
|
|
398
|
|
|
|
|
|
401,506
|
|
Average common shares issued and outstanding
|
|
10,746,028
|
|
|
10,142,625
|
|
|
|
|
10,777,204
|
|
|
|
|
10,776,173
|
|
|
|
|
|
10,281,397
|
|
Average diluted common shares issued and outstanding
|
|
10,840,854
|
|
|
10,254,824
|
|
|
|
|
10,884,921
|
|
|
|
|
10,776,173
|
|
|
|
|
|
11,124,523
|
|
Dividends paid per common share
|
|
$
|
0.04
|
|
|
$
|
0.04
|
|
|
|
|
$
|
0.01
|
|
|
|
|
$
|
0.01
|
|
|
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Period-End Balance Sheet
|
|
|
|
|
|
|
|
December 31 2012
|
|
|
|
September 30 2012
|
|
|
|
|
December 31 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases
|
|
|
|
|
|
|
|
$
|
907,819
|
|
|
|
|
$
|
893,035
|
|
|
|
|
|
$
|
926,200
|
|
Total debt securities
|
|
|
|
|
|
|
|
336,387
|
|
|
|
|
345,847
|
|
|
|
|
|
311,416
|
|
Total earning assets
|
|
|
|
|
|
|
|
1,788,305
|
|
|
|
|
1,756,257
|
|
|
|
|
|
1,704,855
|
|
Total assets
|
|
|
|
|
|
|
|
2,209,974
|
|
|
|
|
2,166,162
|
|
|
|
|
|
2,129,046
|
|
Total deposits
|
|
|
|
|
|
|
|
1,105,261
|
|
|
|
|
1,063,307
|
|
|
|
|
|
1,033,041
|
|
Total shareholders’ equity
|
|
|
|
|
|
|
|
236,956
|
|
|
|
|
238,606
|
|
|
|
|
|
230,101
|
|
Common shareholders’ equity
|
|
|
|
|
|
|
|
218,188
|
|
|
|
|
219,838
|
|
|
|
|
|
211,704
|
|
Book value per share of common stock
|
|
|
|
|
|
|
|
$
|
20.24
|
|
|
|
|
$
|
20.40
|
|
|
|
|
|
$
|
20.09
|
|
Tangible book value per share of common stock (2) |
|
|
|
|
|
|
|
13.36
|
|
|
|
|
13.48
|
|
|
|
|
|
12.95
|
|
(1) Excludes merger and restructuring charges and goodwill impairment
charges.
(2) Return on average tangible shareholders’ equity 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
Reconciliations to GAAP Financial Measures on pages 25-28.
(3) Ratios do not include loans accounted for under the fair value
option during the period. Charge-off ratios are annualized for the
quarterly presentation.
(4) Balances do not include past due consumer credit card, consumer
loans secured by real estate where repayments are insured by the Federal
Housing Administration and individually insured long-term stand-by
agreements (fully-insured home loans), and in general, other consumer
and commercial loans not secured by real estate; purchased
credit-impaired loans even though the customer may be contractually past
due; nonperforming loans held-for-sale; nonperforming loans accounted
for under the fair value option; and nonaccruing troubled debt
restructured loans removed from the purchased credit-impaired portfolio
prior to January 1, 2010.
(5) Reflects preliminary data for current period risk-based capital.
(6) Tier 1 common equity ratio equals Tier 1 capital excluding preferred
stock, trust preferred securities, hybrid securities and minority
interest divided by risk-weighted assets.
(7) 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. Other companies may define or calculate
non-GAAP financial measures differently. See Reconciliations to GAAP
Financial Measures on pages 25-28.
(8) Basel 3 estimates are based on the U.S. Basel 3 Advanced NPR.
(9) Includes 400 million of common shares issued as part of the exchange
of trust preferred securities and preferred stock during the fourth
quarter of 2011.
Certain prior period amounts have been reclassified to conform to
current period presentation.
This information is preliminary and based on company data available at
the time of the presentation.
|
Bank of America Corporation and Subsidiaries
|
Quarterly Results by Business Segment
|
(Dollars in millions)
|
|
|
|
|
Fourth Quarter 2012
|
|
|
|
|
Consumer &
Business
Banking
|
|
|
|
Consumer
Real Estate
Services
|
|
|
|
Global
Banking
|
|
|
|
Global
Markets
|
|
|
|
GWIM
|
|
|
|
All
Other
|
Total revenue, net of interest expense (FTE basis) (1) |
|
|
|
$
|
7,204
|
|
|
|
|
$
|
468
|
|
|
|
|
$
|
4,326
|
|
|
|
|
$
|
2,844
|
|
|
|
|
$
|
4,194
|
|
|
|
|
$
|
(145
|
)
|
Provision for credit losses
|
|
|
|
963
|
|
|
|
|
485
|
|
|
|
|
180
|
|
|
|
|
16
|
|
|
|
|
112
|
|
|
|
|
448
|
|
Noninterest expense
|
|
|
|
4,121
|
|
|
|
|
5,629
|
|
|
|
|
1,946
|
|
|
|
|
2,498
|
|
|
|
|
3,195
|
|
|
|
|
971
|
|
Net income (loss)
|
|
|
|
1,428
|
|
|
|
|
(3,722
|
)
|
|
|
|
1,432
|
|
|
|
|
152
|
|
|
|
|
578
|
|
|
|
|
864
|
|
Return on average allocated equity
|
|
|
|
10.48
|
%
|
|
|
|
n/m
|
|
|
|
12.47
|
%
|
|
|
|
3.39
|
%
|
|
|
|
12.43
|
%
|
|
|
|
n/m
|
Return on average economic capital (2) |
|
|
|
23.94
|
|
|
|
|
n/m
|
|
|
|
27.32
|
|
|
|
|
4.63
|
|
|
|
|
28.46
|
|
|
|
|
n/m
|
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases
|
|
|
|
$
|
132,421
|
|
|
|
|
$
|
97,912
|
|
|
|
|
$
|
278,218
|
|
|
|
|
n/m
|
|
|
|
$
|
103,785
|
|
|
|
|
$
|
245,820
|
|
Total deposits
|
|
|
|
486,467
|
|
|
|
|
n/m
|
|
|
|
268,045
|
|
|
|
|
n/m
|
|
|
|
249,658
|
|
|
|
|
36,939
|
|
Allocated equity
|
|
|
|
54,194
|
|
|
|
|
12,525
|
|
|
|
|
45,729
|
|
|
|
|
$
|
17,859
|
|
|
|
|
18,508
|
|
|
|
|
89,697
|
|
Economic capital (2) |
|
|
|
23,777
|
|
|
|
|
12,525
|
|
|
|
|
20,880
|
|
|
|
|
13,210
|
|
|
|
|
8,149
|
|
|
|
|
n/m
|
Period end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases
|
|
|
|
$
|
134,657
|
|
|
|
|
$
|
95,972
|
|
|
|
|
$
|
288,261
|
|
|
|
|
n/m
|
|
|
|
$
|
105,928
|
|
|
|
|
$
|
240,667
|
|
Total deposits
|
|
|
|
498,669
|
|
|
|
|
n/m
|
|
|
|
269,738
|
|
|
|
|
n/m
|
|
|
|
266,188
|
|
|
|
|
36,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter 2012
|
|
|
|
|
Consumer &
Business
Banking
|
|
|
|
Consumer
Real Estate
Services
|
|
|
|
Global
Banking
|
|
|
|
Global
Markets
|
|
|
|
GWIM
|
|
|
|
All
Other
|
Total revenue, net of interest expense (FTE basis) (1) |
|
|
|
$
|
7,070
|
|
|
|
|
$
|
3,096
|
|
|
|
|
$
|
4,146
|
|
|
|
|
$
|
3,109
|
|
|
|
|
$
|
4,083
|
|
|
|
|
$
|
(847
|
)
|
Provision for credit losses
|
|
|
|
970
|
|
|
|
|
264
|
|
|
|
|
68
|
|
|
|
|
21
|
|
|
|
|
61
|
|
|
|
|
390
|
|
Noninterest expense
|
|
|
|
4,061
|
|
|
|
|
4,223
|
|
|
|
|
2,021
|
|
|
|
|
2,548
|
|
|
|
|
3,128
|
|
|
|
|
1,563
|
|
Net income (loss)
|
|
|
|
1,285
|
|
|
|
|
(876
|
)
|
|
|
|
1,296
|
|
|
|
|
(359
|
)
|
|
|
|
562
|
|
|
|
|
(1,568
|
)
|
Return on average allocated equity
|
|
|
|
9.47
|
%
|
|
|
|
n/m
|
|
|
|
11.15
|
%
|
|
|
|
n/m
|
|
|
|
12.27
|
%
|
|
|
|
n/m
|
Return on average economic capital (2) |
|
|
|
21.77
|
|
|
|
|
n/m
|
|
|
|
24.14
|
|
|
|
|
n/m
|
|
|
|
28.81
|
|
|
|
|
n/m
|
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases
|
|
|
|
$
|
133,881
|
|
|
|
|
$
|
103,708
|
|
|
|
|
$
|
267,390
|
|
|
|
|
n/m
|
|
|
|
$
|
101,016
|
|
|
|
|
$
|
254,894
|
|
Total deposits
|
|
|
|
480,342
|
|
|
|
|
n/m
|
|
|
|
252,226
|
|
|
|
|
n/m
|
|
|
|
241,411
|
|
|
|
|
39,262
|
|
Allocated equity
|
|
|
|
53,982
|
|
|
|
|
13,332
|
|
|
|
|
46,223
|
|
|
|
|
$
|
17,070
|
|
|
|
|
18,229
|
|
|
|
|
87,203
|
|
Economic capital (2) |
|
|
|
23,535
|
|
|
|
|
13,332
|
|
|
|
|
21,371
|
|
|
|
|
12,419
|
|
|
|
|
7,840
|
|
|
|
|
n/m
|
Period end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases
|
|
|
|
$
|
133,308
|
|
|
|
|
$
|
99,890
|
|
|
|
|
$
|
272,052
|
|
|
|
|
n/m
|
|
|
|
$
|
102,390
|
|
|
|
|
$
|
251,345
|
|
Total deposits
|
|
|
|
486,857
|
|
|
|
|
n/m
|
|
|
|
260,030
|
|
|
|
|
n/m
|
|
|
|
243,518
|
|
|
|
|
37,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2011
|
|
|
|
|
Consumer &
Business
Banking
|
|
|
|
Consumer
Real Estate
Services
|
|
|
|
Global
Banking
|
|
|
|
Global
Markets
|
|
|
|
GWIM
|
|
|
|
All
Other
|
Total revenue, net of interest expense (FTE basis) (1) |
|
|
|
$
|
7,606
|
|
|
|
|
$
|
3,275
|
|
|
|
|
$
|
4,002
|
|
|
|
|
$
|
1,807
|
|
|
|
|
$
|
3,943
|
|
|
|
|
$
|
4,513
|
|
Provision for credit losses
|
|
|
|
1,297
|
|
|
|
|
1,001
|
|
|
|
|
(256
|
)
|
|
|
|
(18
|
)
|
|
|
|
118
|
|
|
|
|
792
|
|
Noninterest expense
|
|
|
|
4,429
|
|
|
|
|
4,569
|
|
|
|
|
2,136
|
|
|
|
|
2,895
|
|
|
|
|
3,392
|
|
|
|
|
2,101
|
|
Net income (loss)
|
|
|
|
1,242
|
|
|
|
|
(1,442
|
)
|
|
|
|
1,337
|
|
|
|
|
(768
|
)
|
|
|
|
272
|
|
|
|
|
1,350
|
|
Return on average allocated equity
|
|
|
|
9.30
|
%
|
|
|
|
n/m
|
|
|
|
11.51
|
%
|
|
|
|
n/m
|
|
|
|
6.22
|
%
|
|
|
|
n/m
|
Return on average economic capital (2) |
|
|
|
22.08
|
|
|
|
|
n/m
|
|
|
|
25.06
|
|
|
|
|
n/m
|
|
|
|
16.02
|
|
|
|
|
n/m
|
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases
|
|
|
|
$
|
147,150
|
|
|
|
|
$
|
116,993
|
|
|
|
|
$
|
276,850
|
|
|
|
|
n/m
|
|
|
|
$
|
97,722
|
|
|
|
|
$
|
277,744
|
|
Total deposits
|
|
|
|
459,819
|
|
|
|
|
n/m
|
|
|
|
240,757
|
|
|
|
|
n/m
|
|
|
|
237,098
|
|
|
|
|
58,946
|
|
Allocated equity
|
|
|
|
53,004
|
|
|
|
|
14,757
|
|
|
|
|
46,087
|
|
|
|
|
$
|
19,806
|
|
|
|
|
17,366
|
|
|
|
|
77,215
|
|
Economic capital (2) |
|
|
|
22,417
|
|
|
|
|
14,757
|
|
|
|
|
21,188
|
|
|
|
|
15,154
|
|
|
|
|
6,914
|
|
|
|
|
n/m
|
Period end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases
|
|
|
|
$
|
146,378
|
|
|
|
|
$
|
112,359
|
|
|
|
|
$
|
278,177
|
|
|
|
|
n/m
|
|
|
|
$
|
98,654
|
|
|
|
|
$
|
272,385
|
|
Total deposits
|
|
|
|
464,264
|
|
|
|
|
n/m
|
|
|
|
246,360
|
|
|
|
|
n/m
|
|
|
|
240,540
|
|
|
|
|
45,532
|
|
(1) Fully taxable-equivalent 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.
(2) Return on average economic capital is calculated as net income
adjusted for cost of funds and earnings credits and certain expenses
related to intangibles, divided by average economic capital. Economic
capital represents allocated equity less goodwill and a percentage of
intangible assets (excluding mortgage servicing rights). Economic
capital and return on average economic capital are non-GAAP financial
measures. We believe the use of these non-GAAP financial measures
provides additional clarity in assessing the results of the segments.
Other companies may define or calculate these measures differently. See
Reconciliations to GAAP Financial Measures on pages 25-28.
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.
|
Bank of America Corporation and Subsidiaries
|
Annual Results by Business Segment
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2012
|
|
|
Consumer &
Business
Banking
|
|
|
|
Consumer
Real Estate
Services
|
|
|
|
Global
Banking
|
|
|
|
Global
Markets
|
|
|
|
GWIM
|
|
|
|
All
Other
|
Total revenue, net of interest expense (FTE basis) (1) |
|
$
|
29,023
|
|
|
|
|
$
|
8,759
|
|
|
|
|
$
|
17,207
|
|
|
|
|
$
|
13,519
|
|
|
|
|
$
|
16,517
|
|
|
|
|
$
|
(790
|
)
|
Provision for credit losses
|
|
3,941
|
|
|
|
|
1,442
|
|
|
|
|
(103
|
)
|
|
|
|
3
|
|
|
|
|
266
|
|
|
|
|
2,620
|
|
Noninterest expense
|
|
16,793
|
|
|
|
|
17,306
|
|
|
|
|
8,308
|
|
|
|
|
10,839
|
|
|
|
|
12,755
|
|
|
|
|
6,092
|
|
Net income (loss)
|
|
5,321
|
|
|
|
|
(6,507
|
)
|
|
|
|
5,725
|
|
|
|
|
1,054
|
|
|
|
|
2,223
|
|
|
|
|
(3,628
|
)
|
Return on average allocated equity
|
|
9.92
|
%
|
|
|
|
n/m
|
|
|
|
12.47
|
%
|
|
|
|
5.99
|
%
|
|
|
|
12.53
|
%
|
|
|
|
n/m
|
Return on average economic capital (2) |
|
23.01
|
|
|
|
|
n/m
|
|
|
|
27.21
|
|
|
|
|
8.20
|
|
|
|
|
30.52
|
|
|
|
|
n/m
|
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases
|
|
$
|
136,171
|
|
|
|
|
$
|
104,754
|
|
|
|
|
$
|
272,625
|
|
|
|
|
n/m
|
|
|
|
$
|
100,456
|
|
|
|
|
$
|
258,012
|
|
Total deposits
|
|
477,440
|
|
|
|
|
n/m
|
|
|
|
249,317
|
|
|
|
|
n/m
|
|
|
|
242,384
|
|
|
|
|
43,083
|
|
Allocated equity
|
|
53,646
|
|
|
|
|
13,687
|
|
|
|
|
45,907
|
|
|
|
|
$
|
17,595
|
|
|
|
|
17,739
|
|
|
|
|
87,103
|
|
Economic capital (2) |
|
23,178
|
|
|
|
|
13,687
|
|
|
|
|
21,053
|
|
|
|
|
12,956
|
|
|
|
|
7,359
|
|
|
|
|
n/m
|
Period end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases
|
|
$
|
134,657
|
|
|
|
|
$
|
95,972
|
|
|
|
|
$
|
288,261
|
|
|
|
|
n/m
|
|
|
|
$
|
105,928
|
|
|
|
|
$
|
240,667
|
|
Total deposits
|
|
498,669
|
|
|
|
|
n/m
|
|
|
|
269,738
|
|
|
|
|
n/m
|
|
|
|
266,188
|
|
|
|
|
36,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2011
|
|
|
Consumer &
Business
Banking
|
|
|
|
Consumer
Real Estate
Services
|
|
|
|
Global
Banking
|
|
|
|
Global
Markets
|
|
|
|
GWIM
|
|
|
|
All
Other
|
Total revenue, net of interest expense (FTE basis) (1) |
|
$
|
32,880
|
|
|
|
|
$
|
(3,154
|
)
|
|
|
|
$
|
17,312
|
|
|
|
|
$
|
14,798
|
|
|
|
|
$
|
16,495
|
|
|
|
|
$
|
16,095
|
|
Provision for credit losses
|
|
3,490
|
|
|
|
|
4,524
|
|
|
|
|
(1,118
|
)
|
|
|
|
(56
|
)
|
|
|
|
398
|
|
|
|
|
6,172
|
|
Noninterest expense
|
|
17,719
|
|
|
|
|
21,791
|
|
|
|
|
8,884
|
|
|
|
|
12,244
|
|
|
|
|
13,383
|
|
|
|
|
6,253
|
|
Net income (loss)
|
|
7,447
|
|
|
|
|
(19,465
|
)
|
|
|
|
6,046
|
|
|
|
|
988
|
|
|
|
|
1,718
|
|
|
|
|
4,712
|
|
Return on average allocated equity
|
|
14.07
|
%
|
|
|
|
n/m
|
|
|
|
12.76
|
%
|
|
|
|
4.36
|
%
|
|
|
|
9.90
|
%
|
|
|
|
n/m
|
Return on average economic capital (2) |
|
33.52
|
|
|
|
|
n/m
|
|
|
|
26.59
|
|
|
|
|
5.54
|
|
|
|
|
25.46
|
|
|
|
|
n/m
|
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases
|
|
$
|
153,641
|
|
|
|
|
$
|
119,820
|
|
|
|
|
$
|
265,568
|
|
|
|
|
n/m
|
|
|
|
$
|
96,974
|
|
|
|
|
$
|
289,010
|
|
Total deposits
|
|
462,087
|
|
|
|
|
n/m
|
|
|
|
237,312
|
|
|
|
|
n/m
|
|
|
|
241,535
|
|
|
|
|
62,582
|
|
Allocated equity
|
|
52,908
|
|
|
|
|
16,202
|
|
|
|
|
47,384
|
|
|
|
|
$
|
22,671
|
|
|
|
|
17,352
|
|
|
|
|
72,578
|
|
Economic capital (2) |
|
22,273
|
|
|
|
|
14,852
|
|
|
|
|
22,761
|
|
|
|
|
18,046
|
|
|
|
|
6,866
|
|
|
|
|
n/m
|
Period end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases
|
|
$
|
146,378
|
|
|
|
|
$
|
112,359
|
|
|
|
|
$
|
278,177
|
|
|
|
|
n/m
|
|
|
|
$
|
98,654
|
|
|
|
|
$
|
272,385
|
|
Total deposits
|
|
464,264
|
|
|
|
|
n/m
|
|
|
|
246,360
|
|
|
|
|
n/m
|
|
|
|
240,540
|
|
|
|
|
45,532
|
|
(1) Fully taxable-equivalent 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.
(2) Return on average economic capital is calculated as net income
adjusted for cost of funds and earnings credits and certain expenses
related to intangibles, divided by average economic capital. Economic
capital represents allocated equity less goodwill and a percentage of
intangible assets (excluding mortgage servicing rights). Economic
capital and return on average economic capital are non-GAAP financial
measures. We believe the use of these non-GAAP financial measures
provides additional clarity in assessing the results of the segments.
Other companies may define or calculate these measures differently. See
Reconciliations to GAAP Financial Measures on pages 25-28.
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments
to conform to the current period presentation.
This information is preliminary and based on company data available at
the time of the presentation.
|
Bank of America Corporation and Subsidiaries
|
Supplemental Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully taxable-equivalent (FTE) basis data
(1)
|
Year Ended December 31
|
|
|
|
Fourth Quarter 2012
|
|
|
|
Third Quarter 2012
|
|
|
|
Fourth Quarter 2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Net interest income
|
$
|
41,557
|
|
|
$
|
45,588
|
|
|
|
|
$
|
10,555
|
|
|
|
|
$
|
10,167
|
|
|
|
|
$
|
10,959
|
|
Total revenue, net of interest expense
|
84,235
|
|
|
94,426
|
|
|
|
|
18,891
|
|
|
|
|
20,657
|
|
|
|
|
25,146
|
|
Net interest yield (2) |
2.35
|
%
|
|
2.48
|
%
|
|
|
|
2.35
|
%
|
|
|
|
2.32
|
%
|
|
|
|
2.45
|
%
|
Efficiency ratio
|
85.59
|
|
|
85.01
|
|
|
|
|
97.19
|
|
|
|
|
84.93
|
|
|
|
|
77.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data
|
|
|
|
|
|
|
December 31 2012
|
|
|
September 30 2012
|
|
|
December 31 2011
|
Number of banking centers - U.S.
|
|
|
|
|
|
|
5,478
|
|
|
|
|
5,540
|
|
|
|
|
5,702
|
|
Number of branded ATMs - U.S.
|
|
|
|
|
|
|
16,347
|
|
|
|
|
16,253
|
|
|
|
|
17,756
|
|
Ending full-time equivalent employees
|
|
|
|
|
|
|
267,190
|
|
|
|
|
272,594
|
|
|
|
|
281,791
|
|
(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 Reconciliations to
GAAP Financial Measures on pages 25-28.
(2) Calculation includes fees earned on overnight deposits placed with
the Federal Reserve and, beginning in the third quarter of 2012,
deposits, primarily overnight, placed with certain non-U.S. central
banks of $189 million and $186 million for the years ended December 31,
2012 and 2011; $42 million and $48 million for the fourth and third
quarters of 2012, respectively, and $36 million for the fourth quarter
of 2011.
Certain prior period amounts have been reclassified to conform to
current period presentation.
This information is preliminary and based on company data available at
the time of the presentation.
Bank of America Corporation and Subsidiaries
|
Reconciliations to GAAP Financial Measures
|
(Dollars in millions)
|
The Corporation evaluates its business based on a fully
taxable-equivalent basis, a non-GAAP financial measure. The Corporation
believes managing the business with net interest income on a fully
taxable-equivalent basis provides a more accurate picture of the
interest margin for comparative purposes. Total revenue, net of interest
expense, includes net interest income on a fully taxable-equivalent
basis and noninterest income. The Corporation views related ratios and
analyses (i.e., efficiency ratios and net interest yield) on a fully
taxable-equivalent basis. To derive the fully taxable-equivalent basis,
net interest income is adjusted to reflect tax-exempt income on an
equivalent before-tax basis with a corresponding increase in income tax
expense. This measure ensures comparability of net interest income
arising from taxable and tax-exempt sources. The efficiency ratio
measures the costs expended to generate a dollar of revenue, and net
interest yield evaluates the basis points the Corporation earns over the
cost of funds.
The Corporation also evaluates its business based on the following
ratios that utilize tangible equity, a non-GAAP financial measure.
Return on average tangible common shareholders’ equity measures the
Corporation’s earnings contribution as a percentage of average common
shareholders’ equity less goodwill and intangible assets (excluding
mortgage servicing rights), net of related deferred tax liabilities.
Return on average tangible shareholders’ equity measures the
Corporation’s earnings contribution as a percentage of average
shareholders’ equity less goodwill and intangible assets (excluding
mortgage servicing rights), net of related deferred tax liabilities. The
tangible common equity ratio represents ending common shareholders’
equity less goodwill and intangible assets (excluding mortgage servicing
rights), net of related deferred tax liabilities divided by total assets
less goodwill and intangible assets (excluding mortgage servicing
rights), net of related deferred tax liabilities. The tangible equity
ratio represents total ending shareholders’ equity less goodwill and
intangible assets (excluding mortgage servicing rights), net of related
deferred tax liabilities divided by total assets less goodwill and
intangible assets (excluding mortgage servicing rights), net of related
deferred tax liabilities. Tangible book value per common share
represents ending common shareholders’ equity less goodwill and
intangible assets (excluding mortgage servicing rights), net of related
deferred tax liabilities divided by ending common shares outstanding.
These measures are used to evaluate the Corporation’s use of equity
(i.e., capital). In addition, profitability, relationship and investment
models all use return on average tangible shareholders’ equity as key
measures to support our overall growth goals.
In addition, the Corporation evaluates its business segment results
based on return on average economic capital, a non-GAAP financial
measure. Return on average economic capital for the segments is
calculated as net income adjusted for cost of funds and earnings credits
and certain expenses related to intangibles, divided by average economic
capital. Economic capital represents average allocated equity less
goodwill and a percentage of intangible assets (excluding mortgage
servicing rights). It also believes the use of this non-GAAP financial
measure provides additional clarity in assessing the segments.
In certain presentations, earnings and diluted earnings per common
share, the efficiency ratio, return on average assets, return on common
shareholders’ equity, return on average tangible common shareholders’
equity and return on average tangible shareholders’ equity are
calculated excluding the impact of goodwill impairment charges of $581
million and $2.6 billion recorded in the fourth and second quarters of
2011. Accordingly, these are non-GAAP financial measures.
See the tables below and on pages 26-28 for reconciliations of these
non-GAAP financial measures with financial measures defined by GAAP for
the three months ended December 31, 2012, September 30, 2012 and
December 31, 2011, and the years ended December 31, 2012 and 2011. The
Corporation believes the use of these non-GAAP financial measures
provides additional clarity in assessing the results of the Corporation.
Other companies may define or calculate supplemental financial data
differently.
|
|
Year Ended December 31
|
|
|
|
|
Fourth Quarter 2012
|
|
|
|
Third Quarter 2012
|
|
|
|
Fourth Quarter 2011
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Reconciliation of net interest income to
net interest income on a fully taxable-equivalent basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
40,656
|
|
|
$
|
44,616
|
|
|
|
|
|
$
|
10,324
|
|
|
|
|
$
|
9,938
|
|
|
|
|
$
|
10,701
|
|
Fully taxable-equivalent adjustment
|
|
901
|
|
|
972
|
|
|
|
|
|
231
|
|
|
|
|
229
|
|
|
|
|
258
|
|
Net interest income on a fully taxable-equivalent basis
|
|
$
|
41,557
|
|
|
$
|
45,588
|
|
|
|
|
|
$
|
10,555
|
|
|
|
|
$
|
10,167
|
|
|
|
|
$
|
10,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of total revenue, net of
interest expense to total revenue, net of interest expense on a
fully taxable-equivalent basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue, net of interest expense
|
|
$
|
83,334
|
|
|
$
|
93,454
|
|
|
|
|
|
$
|
18,660
|
|
|
|
|
$
|
20,428
|
|
|
|
|
$
|
24,888
|
|
Fully taxable-equivalent adjustment
|
|
901
|
|
|
972
|
|
|
|
|
|
231
|
|
|
|
|
229
|
|
|
|
|
258
|
|
Total revenue, net of interest expense on a fully
taxable-equivalent basis
|
|
$
|
84,235
|
|
|
$
|
94,426
|
|
|
|
|
|
$
|
18,891
|
|
|
|
|
$
|
20,657
|
|
|
|
|
$
|
25,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of total noninterest
expense to total noninterest expense, excluding goodwill
impairment charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense
|
|
$
|
72,093
|
|
|
$
|
80,274
|
|
|
|
|
|
$
|
18,360
|
|
|
|
|
$
|
17,544
|
|
|
|
|
$
|
19,522
|
|
Goodwill impairment charges
|
|
—
|
|
|
(3,184
|
)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(581
|
)
|
Total noninterest expense, excluding goodwill impairment charges
|
|
$
|
72,093
|
|
|
$
|
77,090
|
|
|
|
|
|
$
|
18,360
|
|
|
|
|
$
|
17,544
|
|
|
|
|
$
|
18,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of income tax expense
(benefit) to income tax expense (benefit) on a fully
taxable-equivalent basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
|
$
|
(1,116
|
)
|
|
$
|
(1,676
|
)
|
|
|
|
|
$
|
(2,636
|
)
|
|
|
|
$
|
770
|
|
|
|
|
$
|
441
|
|
Fully taxable-equivalent adjustment
|
|
901
|
|
|
972
|
|
|
|
|
|
231
|
|
|
|
|
229
|
|
|
|
|
258
|
|
Income tax expense (benefit) on a fully taxable-equivalent basis
|
|
$
|
(215
|
)
|
|
$
|
(704
|
)
|
|
|
|
|
$
|
(2,405
|
)
|
|
|
|
$
|
999
|
|
|
|
|
$
|
699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income to net
income, excluding goodwill impairment charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
4,188
|
|
|
$
|
1,446
|
|
|
|
|
|
$
|
732
|
|
|
|
|
$
|
340
|
|
|
|
|
$
|
1,991
|
|
Goodwill impairment charges
|
|
—
|
|
|
3,184
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
581
|
|
Net income, excluding goodwill impairment charges
|
|
$
|
4,188
|
|
|
$
|
4,630
|
|
|
|
|
|
$
|
732
|
|
|
|
|
$
|
340
|
|
|
|
|
$
|
2,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income (loss)
applicable to common shareholders to net income (loss) applicable
to common shareholders, excluding goodwill impairment charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) applicable to common shareholders
|
|
$
|
2,760
|
|
|
$
|
85
|
|
|
|
|
|
$
|
367
|
|
|
|
|
$
|
(33
|
)
|
|
|
|
$
|
1,584
|
|
Goodwill impairment charges
|
|
—
|
|
|
3,184
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
581
|
|
Net income (loss) applicable to common shareholders, excluding
goodwill impairment charges
|
|
$
|
2,760
|
|
|
$
|
3,269
|
|
|
|
|
|
$
|
367
|
|
|
|
|
$
|
(33
|
)
|
|
|
|
$
|
2,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain prior period amounts have been reclassified to conform to
current period presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This information is preliminary and based on company data
available at the time of the presentation.
|
Bank of America Corporation and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations to GAAP Financial Measures (continued)
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31
|
|
|
|
|
Fourth Quarter 2012
|
|
|
|
Third Quarter 2012
|
|
|
|
Fourth Quarter 2011
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Reconciliation of average common
shareholders’ equity to average tangible common shareholders’
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shareholders’ equity
|
|
$
|
216,996
|
|
|
$
|
211,709
|
|
|
|
|
|
$
|
219,744
|
|
|
|
|
$
|
217,273
|
|
|
|
|
$
|
209,324
|
|
Goodwill
|
|
(69,974
|
)
|
|
(72,334
|
)
|
|
|
|
|
(69,976
|
)
|
|
|
|
(69,976
|
)
|
|
|
|
(70,647
|
)
|
Intangible assets (excluding mortgage servicing rights)
|
|
(7,366
|
)
|
|
(9,180
|
)
|
|
|
|
|
(6,874
|
)
|
|
|
|
(7,194
|
)
|
|
|
|
(8,566
|
)
|
Related deferred tax liabilities
|
|
2,593
|
|
|
2,898
|
|
|
|
|
|
2,490
|
|
|
|
|
2,556
|
|
|
|
|
2,775
|
|
Tangible common shareholders’ equity
|
|
$
|
142,249
|
|
|
$
|
133,093
|
|
|
|
|
|
$
|
145,384
|
|
|
|
|
$
|
142,659
|
|
|
|
|
$
|
132,886
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of average shareholders’
equity to average tangible shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity
|
|
$
|
235,677
|
|
|
$
|
229,095
|
|
|
|
|
|
$
|
238,512
|
|
|
|
|
$
|
236,039
|
|
|
|
|
$
|
228,235
|
|
Goodwill
|
|
(69,974
|
)
|
|
(72,334
|
)
|
|
|
|
|
(69,976
|
)
|
|
|
|
(69,976
|
)
|
|
|
|
(70,647
|
)
|
Intangible assets (excluding mortgage servicing rights)
|
|
(7,366
|
)
|
|
(9,180
|
)
|
|
|
|
|
(6,874
|
)
|
|
|
|
(7,194
|
)
|
|
|
|
(8,566
|
)
|
Related deferred tax liabilities
|
|
2,593
|
|
|
2,898
|
|
|
|
|
|
2,490
|
|
|
|
|
2,556
|
|
|
|
|
2,775
|
|
Tangible shareholders’ equity
|
|
$
|
160,930
|
|
|
$
|
150,479
|
|
|
|
|
|
$
|
164,152
|
|
|
|
|
$
|
161,425
|
|
|
|
|
$
|
151,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of period-end common
shareholders’ equity to period-end tangible common shareholders’
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shareholders’ equity
|
|
$
|
218,188
|
|
|
$
|
211,704
|
|
|
|
|
|
$
|
218,188
|
|
|
|
|
$
|
219,838
|
|
|
|
|
$
|
211,704
|
|
Goodwill
|
|
(69,976
|
)
|
|
(69,967
|
)
|
|
|
|
|
(69,976
|
)
|
|
|
|
(69,976
|
)
|
|
|
|
(69,967
|
)
|
Intangible assets (excluding mortgage servicing rights)
|
|
(6,684
|
)
|
|
(8,021
|
)
|
|
|
|
|
(6,684
|
)
|
|
|
|
(7,030
|
)
|
|
|
|
(8,021
|
)
|
Related deferred tax liabilities
|
|
2,428
|
|
|
2,702
|
|
|
|
|
|
2,428
|
|
|
|
|
2,494
|
|
|
|
|
2,702
|
|
Tangible common shareholders’ equity
|
|
$
|
143,956
|
|
|
$
|
136,418
|
|
|
|
|
|
$
|
143,956
|
|
|
|
|
$
|
145,326
|
|
|
|
|
$
|
136,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of period-end
shareholders’ equity to period-end tangible shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity
|
|
$
|
236,956
|
|
|
$
|
230,101
|
|
|
|
|
|
$
|
236,956
|
|
|
|
|
$
|
238,606
|
|
|
|
|
$
|
230,101
|
|
Goodwill
|
|
(69,976
|
)
|
|
(69,967
|
)
|
|
|
|
|
(69,976
|
)
|
|
|
|
(69,976
|
)
|
|
|
|
(69,967
|
)
|
Intangible assets (excluding mortgage servicing rights)
|
|
(6,684
|
)
|
|
(8,021
|
)
|
|
|
|
|
(6,684
|
)
|
|
|
|
(7,030
|
)
|
|
|
|
(8,021
|
)
|
Related deferred tax liabilities
|
|
2,428
|
|
|
2,702
|
|
|
|
|
|
2,428
|
|
|
|
|
2,494
|
|
|
|
|
2,702
|
|
Tangible shareholders’ equity
|
|
$
|
162,724
|
|
|
$
|
154,815
|
|
|
|
|
|
$
|
162,724
|
|
|
|
|
$
|
164,094
|
|
|
|
|
$
|
154,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of period-end assets to
period-end tangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
$
|
2,209,974
|
|
|
$
|
2,129,046
|
|
|
|
|
|
$
|
2,209,974
|
|
|
|
|
$
|
2,166,162
|
|
|
|
|
$
|
2,129,046
|
|
Goodwill
|
|
(69,976
|
)
|
|
(69,967
|
)
|
|
|
|
|
(69,976
|
)
|
|
|
|
(69,976
|
)
|
|
|
|
(69,967
|
)
|
Intangible assets (excluding mortgage servicing rights)
|
|
(6,684
|
)
|
|
(8,021
|
)
|
|
|
|
|
(6,684
|
)
|
|
|
|
(7,030
|
)
|
|
|
|
(8,021
|
)
|
Related deferred tax liabilities
|
|
2,428
|
|
|
2,702
|
|
|
|
|
|
2,428
|
|
|
|
|
2,494
|
|
|
|
|
2,702
|
|
Tangible assets
|
|
$
|
2,135,742
|
|
|
$
|
2,053,760
|
|
|
|
|
|
$
|
2,135,742
|
|
|
|
|
$
|
2,091,650
|
|
|
|
|
$
|
2,053,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share of common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shareholders’ equity
|
|
$
|
218,188
|
|
|
$
|
211,704
|
|
|
|
|
|
$
|
218,188
|
|
|
|
|
$
|
219,838
|
|
|
|
|
$
|
211,704
|
|
Ending common shares issued and outstanding
|
|
10,778,264
|
|
|
10,535,938
|
|
|
|
|
|
10,778,264
|
|
|
|
|
10,777,267
|
|
|
|
|
10,535,938
|
|
Book value per share of common stock
|
|
$
|
20.24
|
|
|
$
|
20.09
|
|
|
|
|
|
$
|
20.24
|
|
|
|
|
$
|
20.40
|
|
|
|
|
$
|
20.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share of common
stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common shareholders’ equity
|
|
$
|
143,956
|
|
|
$
|
136,418
|
|
|
|
|
|
$
|
143,956
|
|
|
|
|
$
|
145,326
|
|
|
|
|
$
|
136,418
|
|
Ending common shares issued and outstanding
|
|
10,778,264
|
|
|
10,535,938
|
|
|
|
|
|
10,778,264
|
|
|
|
|
10,777,267
|
|
|
|
|
10,535,938
|
|
Tangible book value per share of common stock
|
|
$
|
13.36
|
|
|
$
|
12.95
|
|
|
|
|
|
$
|
13.36
|
|
|
|
|
$
|
13.48
|
|
|
|
|
$
|
12.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
Bank of America Corporation and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations to GAAP Financial Measures (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31
|
|
|
|
|
Fourth Quarter 2012
|
|
|
|
Third Quarter 2012
|
|
|
|
Fourth Quarter 2011
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Reconciliation of return on average
economic capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer & Business Banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
|
|
$
|
5,321
|
|
|
$
|
7,447
|
|
|
|
|
|
$
|
1,428
|
|
|
|
|
$
|
1,285
|
|
|
|
|
$
|
1,242
|
|
Adjustment related to intangibles (1) |
|
13
|
|
|
20
|
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
|
|
5
|
|
Adjusted net income
|
|
$
|
5,334
|
|
|
$
|
7,467
|
|
|
|
|
|
$
|
1,431
|
|
|
|
|
$
|
1,288
|
|
|
|
|
$
|
1,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average allocated equity
|
|
$
|
53,646
|
|
|
$
|
52,908
|
|
|
|
|
|
$
|
54,194
|
|
|
|
|
$
|
53,982
|
|
|
|
|
$
|
53,004
|
|
Adjustment related to goodwill and a percentage of intangibles
|
|
(30,468
|
)
|
|
(30,635
|
)
|
|
|
|
|
(30,417
|
)
|
|
|
|
(30,447
|
)
|
|
|
|
(30,587
|
)
|
Average economic capital
|
|
$
|
23,178
|
|
|
$
|
22,273
|
|
|
|
|
|
$
|
23,777
|
|
|
|
|
$
|
23,535
|
|
|
|
|
$
|
22,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net loss
|
|
$
|
(6,507
|
)
|
|
$
|
(19,465
|
)
|
|
|
|
|
$
|
(3,722
|
)
|
|
|
|
$
|
(876
|
)
|
|
|
|
$
|
(1,442
|
)
|
Adjustment related to intangibles (1) |
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Goodwill impairment charge
|
|
—
|
|
|
2,603
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Adjusted net loss
|
|
$
|
(6,507
|
)
|
|
$
|
(16,862
|
)
|
|
|
|
|
$
|
(3,722
|
)
|
|
|
|
$
|
(876
|
)
|
|
|
|
$
|
(1,442
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average allocated equity
|
|
$
|
13,687
|
|
|
$
|
16,202
|
|
|
|
|
|
$
|
12,525
|
|
|
|
|
$
|
13,332
|
|
|
|
|
$
|
14,757
|
|
Adjustment related to goodwill and a percentage of intangibles
(excluding mortgage servicing rights)
|
|
—
|
|
|
(1,350
|
)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Average economic capital
|
|
$
|
13,687
|
|
|
$
|
14,852
|
|
|
|
|
|
$
|
12,525
|
|
|
|
|
$
|
13,332
|
|
|
|
|
$
|
14,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
|
|
$
|
5,725
|
|
|
$
|
6,046
|
|
|
|
|
|
$
|
1,432
|
|
|
|
|
$
|
1,296
|
|
|
|
|
$
|
1,337
|
|
Adjustment related to intangibles (1) |
|
4
|
|
|
6
|
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
1
|
|
Adjusted net income
|
|
$
|
5,729
|
|
|
$
|
6,052
|
|
|
|
|
|
$
|
1,433
|
|
|
|
|
$
|
1,297
|
|
|
|
|
$
|
1,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average allocated equity
|
|
$
|
45,907
|
|
|
$
|
47,384
|
|
|
|
|
|
$
|
45,729
|
|
|
|
|
$
|
46,223
|
|
|
|
|
$
|
46,087
|
|
Adjustment related to goodwill and a percentage of intangibles
|
|
(24,854
|
)
|
|
(24,623
|
)
|
|
|
|
|
(24,849
|
)
|
|
|
|
(24,852
|
)
|
|
|
|
(24,899
|
)
|
Average economic capital
|
|
$
|
21,053
|
|
|
$
|
22,761
|
|
|
|
|
|
$
|
20,880
|
|
|
|
|
$
|
21,371
|
|
|
|
|
$
|
21,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income (loss)
|
|
$
|
1,054
|
|
|
$
|
988
|
|
|
|
|
|
$
|
152
|
|
|
|
|
$
|
(359
|
)
|
|
|
|
$
|
(768
|
)
|
Adjustment related to intangibles (1) |
|
9
|
|
|
12
|
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
3
|
|
Adjusted net income (loss)
|
|
$
|
1,063
|
|
|
$
|
1,000
|
|
|
|
|
|
$
|
154
|
|
|
|
|
$
|
(357
|
)
|
|
|
|
$
|
(765
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average allocated equity
|
|
$
|
17,595
|
|
|
$
|
22,671
|
|
|
|
|
|
$
|
17,859
|
|
|
|
|
$
|
17,070
|
|
|
|
|
$
|
19,806
|
|
Adjustment related to goodwill and a percentage of intangibles
|
|
(4,639
|
)
|
|
(4,625
|
)
|
|
|
|
|
(4,649
|
)
|
|
|
|
(4,651
|
)
|
|
|
|
(4,652
|
)
|
Average economic capital
|
|
$
|
12,956
|
|
|
$
|
18,046
|
|
|
|
|
|
$
|
13,210
|
|
|
|
|
$
|
12,419
|
|
|
|
|
$
|
15,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Wealth & Investment Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
|
|
$
|
2,223
|
|
|
$
|
1,718
|
|
|
|
|
|
$
|
578
|
|
|
|
|
$
|
562
|
|
|
|
|
$
|
272
|
|
Adjustment related to intangibles (1) |
|
23
|
|
|
30
|
|
|
|
|
|
5
|
|
|
|
|
6
|
|
|
|
|
7
|
|
Adjusted net income
|
|
$
|
2,246
|
|
|
$
|
1,748
|
|
|
|
|
|
$
|
583
|
|
|
|
|
$
|
568
|
|
|
|
|
$
|
279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average allocated equity
|
|
$
|
17,739
|
|
|
$
|
17,352
|
|
|
|
|
|
$
|
18,508
|
|
|
|
|
$
|
18,229
|
|
|
|
|
$
|
17,366
|
|
Adjustment related to goodwill and a percentage of intangibles
|
|
(10,380
|
)
|
|
(10,486
|
)
|
|
|
|
|
(10,359
|
)
|
|
|
|
(10,389
|
)
|
|
|
|
(10,452
|
)
|
Average economic capital
|
|
$
|
7,359
|
|
|
$
|
6,866
|
|
|
|
|
|
$
|
8,149
|
|
|
|
|
$
|
7,840
|
|
|
|
|
$
|
6,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
Bank of America Corporation and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations to GAAP Financial Measures (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31
|
|
|
|
Fourth Quarter 2012
|
|
|
|
Third Quarter 2012
|
|
|
|
Fourth Quarter 2011
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
Consumer & Business Banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
|
|
$
|
917
|
|
|
$
|
1,217
|
|
|
|
|
$
|
216
|
|
|
|
|
$
|
207
|
|
|
|
|
$
|
154
|
|
Adjustment related to intangibles (1) |
|
1
|
|
|
3
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1
|
|
Adjusted net income
|
|
$
|
918
|
|
|
$
|
1,220
|
|
|
|
|
$
|
216
|
|
|
|
|
$
|
207
|
|
|
|
|
$
|
155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average allocated equity
|
|
$
|
24,329
|
|
|
$
|
23,734
|
|
|
|
|
$
|
25,076
|
|
|
|
|
$
|
25,047
|
|
|
|
|
$
|
23,861
|
|
Adjustment related to goodwill and a percentage of intangibles
|
|
(17,924
|
)
|
|
(17,948
|
)
|
|
|
|
(17,915
|
)
|
|
|
|
(17,920
|
)
|
|
|
|
(17,939
|
)
|
Average economic capital
|
|
$
|
6,405
|
|
|
$
|
5,786
|
|
|
|
|
$
|
7,161
|
|
|
|
|
$
|
7,127
|
|
|
|
|
$
|
5,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Card Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
|
|
$
|
4,061
|
|
|
$
|
5,811
|
|
|
|
|
$
|
1,099
|
|
|
|
|
$
|
994
|
|
|
|
|
$
|
1,028
|
|
Adjustment related to intangibles (1) |
|
12
|
|
|
17
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
|
|
4
|
|
Adjusted net income
|
|
$
|
4,073
|
|
|
$
|
5,828
|
|
|
|
|
$
|
1,102
|
|
|
|
|
$
|
997
|
|
|
|
|
$
|
1,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average allocated equity
|
|
$
|
20,578
|
|
|
$
|
21,127
|
|
|
|
|
$
|
20,652
|
|
|
|
|
$
|
20,463
|
|
|
|
|
$
|
20,610
|
|
Adjustment related to goodwill and a percentage of intangibles
|
|
(10,447
|
)
|
|
(10,589
|
)
|
|
|
|
(10,405
|
)
|
|
|
|
(10,429
|
)
|
|
|
|
(10,549
|
)
|
Average economic capital
|
|
$
|
10,131
|
|
|
$
|
10,538
|
|
|
|
|
$
|
10,247
|
|
|
|
|
$
|
10,034
|
|
|
|
|
$
|
10,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
|
|
$
|
343
|
|
|
$
|
419
|
|
|
|
|
$
|
113
|
|
|
|
|
$
|
84
|
|
|
|
|
$
|
60
|
|
Adjustment related to intangibles (1) |
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Adjusted net income
|
|
$
|
343
|
|
|
$
|
419
|
|
|
|
|
$
|
113
|
|
|
|
|
$
|
84
|
|
|
|
|
$
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average allocated equity
|
|
$
|
8,739
|
|
|
$
|
8,047
|
|
|
|
|
$
|
8,466
|
|
|
|
|
$
|
8,472
|
|
|
|
|
$
|
8,533
|
|
Adjustment related to goodwill and a percentage of intangibles
|
|
(2,097
|
)
|
|
(2,098
|
)
|
|
|
|
(2,097
|
)
|
|
|
|
(2,098
|
)
|
|
|
|
(2,099
|
)
|
Average economic capital
|
|
$
|
6,642
|
|
|
$
|
5,949
|
|
|
|
|
$
|
6,369
|
|
|
|
|
$
|
6,374
|
|
|
|
|
$
|
6,434
|
|
(1) Represents cost of funds, earnings credits and certain expenses
related to intangibles.
Certain prior period amounts have been reclassified to conform to
current period presentation.
This information is preliminary and based on company data available at
the time of the presentation.