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Supplemental Information
Second Quarter 2012
This information is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this information are subject to the forward-looking language contained in Bank of America’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC’s website (www.sec.gov) or at Bank of America’s website (www.bankofamerica.com). Bank of America’s future financial performance is subject to risks and uncertainties as described in its SEC filings.
Bank of America Corporation and Subsidiaries | |
Table of Contents | Page |
Consumer & Business Banking | |
Consumer Real Estate Services | |
Global Banking | |
Global Markets | |
Global Wealth & Investment Management | |
All Other | |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Consolidated Financial Highlights | ||||||||||||||||||||||||||||
(Dollars in millions, except per share information; shares in thousands) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | |||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||
Income statement | ||||||||||||||||||||||||||||
Net interest income | $ | 20,394 | $ | 23,425 | $ | 9,548 | $ | 10,846 | $ | 10,701 | $ | 10,490 | $ | 11,246 | ||||||||||||||
Noninterest income | 23,852 | 16,688 | 12,420 | 11,432 | 14,187 | 17,963 | 1,990 | |||||||||||||||||||||
Total revenue, net of interest expense | 44,246 | 40,113 | 21,968 | 22,278 | 24,888 | 28,453 | 13,236 | |||||||||||||||||||||
Provision for credit losses | 4,191 | 7,069 | 1,773 | 2,418 | 2,934 | 3,407 | 3,255 | |||||||||||||||||||||
Goodwill impairment | — | 2,603 | — | — | 581 | — | 2,603 | |||||||||||||||||||||
Merger and restructuring charges | — | 361 | — | — | 101 | 176 | 159 | |||||||||||||||||||||
All other noninterest expense (1) | 36,189 | 40,175 | 17,048 | 19,141 | 18,840 | 17,437 | 20,094 | |||||||||||||||||||||
Income tax expense (benefit) | 750 | (3,318 | ) | 684 | 66 | 441 | 1,201 | (4,049 | ) | |||||||||||||||||||
Net income (loss) | 3,116 | (6,777 | ) | 2,463 | 653 | 1,991 | 6,232 | (8,826 | ) | |||||||||||||||||||
Preferred stock dividends | 690 | 611 | 365 | 325 | 407 | 343 | 301 | |||||||||||||||||||||
Net income (loss) applicable to common shareholders | 2,426 | (7,388 | ) | 2,098 | 328 | 1,584 | 5,889 | (9,127 | ) | |||||||||||||||||||
Diluted earnings (loss) per common share (2) | 0.22 | (0.73 | ) | 0.19 | 0.03 | 0.15 | 0.56 | (0.90 | ) | |||||||||||||||||||
Average diluted common shares issued and outstanding (2) | 11,509,945 | 10,085,479 | 11,556,011 | 10,761,917 | 11,124,523 | 10,464,395 | 10,094,928 | |||||||||||||||||||||
Dividends paid per common share | $ | 0.02 | $ | 0.02 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | ||||||||||||||
Performance ratios | ||||||||||||||||||||||||||||
Return on average assets | 0.29 | % | n/m | 0.45 | % | 0.12 | % | 0.36 | % | 1.07 | % | n/m | ||||||||||||||||
Return on average common shareholders' equity | 2.26 | n/m | 3.89 | 0.62 | 3.00 | 11.40 | n/m | |||||||||||||||||||||
Return on average tangible common shareholders' equity (3) | 3.47 | n/m | 5.95 | 0.95 | 4.72 | 18.30 | n/m | |||||||||||||||||||||
Return on average tangible shareholders' equity (3) | 3.94 | n/m | 6.16 | 1.67 | 5.20 | 17.03 | n/m | |||||||||||||||||||||
At period end | ||||||||||||||||||||||||||||
Book value per share of common stock | $ | 20.16 | $ | 20.29 | $ | 20.16 | $ | 19.83 | $ | 20.09 | $ | 20.80 | $ | 20.29 | ||||||||||||||
Tangible book value per share of common stock (3) | 13.22 | 12.65 | 13.22 | 12.87 | 12.95 | 13.22 | 12.65 | |||||||||||||||||||||
Market price per share of common stock: | ||||||||||||||||||||||||||||
Closing price | $ | 8.18 | $ | 10.96 | $ | 8.18 | $ | 9.57 | $ | 5.56 | $ | 6.12 | $ | 10.96 | ||||||||||||||
High closing price for the period | 9.93 | 15.25 | 9.68 | 9.93 | 7.35 | 11.09 | 13.72 | |||||||||||||||||||||
Low closing price for the period | 5.80 | 10.50 | 6.83 | 5.80 | 4.99 | 6.06 | 10.50 | |||||||||||||||||||||
Market capitalization | 88,155 | 111,060 | 88,155 | 103,123 | 58,580 | 62,023 | 111,060 | |||||||||||||||||||||
Number of banking centers - U.S. | 5,594 | 5,742 | 5,594 | 5,651 | 5,702 | 5,715 | 5,742 | |||||||||||||||||||||
Number of branded ATMs - U.S. | 16,220 | 17,817 | 16,220 | 17,255 | 17,756 | 17,752 | 17,817 | |||||||||||||||||||||
Full-time equivalent employees | 275,460 | 288,084 | 275,460 | 278,688 | 281,791 | 288,739 | 288,084 | |||||||||||||||||||||
(1) | Excludes merger and restructuring charges and goodwill impairment charges. |
(2) | Due to a net loss applicable to common shareholders for the second quarter of 2011, the impact of antidilutive equity instruments was excluded from diluted earnings per share and average diluted common shares. |
(3) | Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) |
n/m = not meaningful
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 2 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Supplemental Financial Data | ||||||||||||||||||||||||||||
(Dollars in millions, except per share information) | ||||||||||||||||||||||||||||
Fully taxable-equivalent (FTE) basis data (1) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | |||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||
Net interest income | $ | 20,835 | $ | 23,890 | $ | 9,782 | $ | 11,053 | $ | 10,959 | $ | 10,739 | $ | 11,493 | ||||||||||||||
Total revenue, net of interest expense | 44,687 | 40,578 | 22,202 | 22,485 | 25,146 | 28,702 | 13,483 | |||||||||||||||||||||
Net interest yield (2) | 2.36 | % | 2.58 | % | 2.21 | % | 2.51 | % | 2.45 | % | 2.32 | % | 2.50 | % | ||||||||||||||
Efficiency ratio | 80.98 | n/m | 76.79 | 85.13 | 77.64 | 61.37 | n/m | |||||||||||||||||||||
Performance ratios, excluding goodwill impairment charges (3, 4) | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2011 | Fourth Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||||
Per common share information | ||||||||||||||||||||||||||||
Earnings (loss) | $ | (0.48 | ) | $ | 0.21 | $ | (0.65 | ) | ||||||||||||||||||||
Diluted earnings (loss) | (0.48 | ) | 0.20 | (0.65 | ) | |||||||||||||||||||||||
Efficiency ratio (FTE basis) | n/m | 75.33 | % | n/m | ||||||||||||||||||||||||
Return on average assets | n/m | 0.46 | n/m | |||||||||||||||||||||||||
Return on average common shareholders’ equity | n/m | 4.10 | n/m | |||||||||||||||||||||||||
Return on average tangible common shareholders’ equity | n/m | 6.46 | n/m | |||||||||||||||||||||||||
Return on average tangible shareholders’ equity | n/m | 6.72 | n/m | |||||||||||||||||||||||||
(1) | FTE basis is a non-GAAP financial measure. FTE basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) |
(2) | Calculation includes fees earned on overnight deposits placed with the Federal Reserve of $99 million and $112 million for the six months ended June 30, 2012 and 2011; $52 million and $47 million for the second and first quarters of 2012, and $36 million, $38 million and $49 million for the fourth, third and second quarters of 2011, respectively. For more information, see Quarterly and Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis on pages 10-11 and 12-13. |
(3) | Performance ratios, excluding goodwill impairment charges, are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) |
(4) | There were no goodwill impairment charges for the second and first quarters of 2012, and the third quarter of 2011. |
n/m = not meaningful
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 3 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Consolidated Statement of Income | ||||||||||||||||||||||||||||
(Dollars in millions, except per share information; shares in thousands) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | |||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||
Loans and leases | $ | 19,917 | $ | 23,249 | $ | 9,744 | $ | 10,173 | $ | 10,512 | $ | 11,205 | $ | 11,320 | ||||||||||||||
Debt securities | 4,627 | 5,557 | 1,902 | 2,725 | 2,235 | 1,729 | 2,675 | |||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 820 | 1,114 | 360 | 460 | 449 | 584 | 597 | |||||||||||||||||||||
Trading account assets | 2,598 | 3,164 | 1,246 | 1,352 | 1,297 | 1,500 | 1,538 | |||||||||||||||||||||
Other interest income | 1,491 | 1,886 | 740 | 751 | 920 | 835 | 918 | |||||||||||||||||||||
Total interest income | 29,453 | 34,970 | 13,992 | 15,461 | 15,413 | 15,853 | 17,048 | |||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||
Deposits | 1,068 | 1,682 | 519 | 549 | 616 | 704 | 843 | |||||||||||||||||||||
Short-term borrowings | 1,824 | 2,525 | 943 | 881 | 921 | 1,153 | 1,341 | |||||||||||||||||||||
Trading account liabilities | 925 | 1,254 | 448 | 477 | 411 | 547 | 627 | |||||||||||||||||||||
Long-term debt | 5,242 | 6,084 | 2,534 | 2,708 | 2,764 | 2,959 | 2,991 | |||||||||||||||||||||
Total interest expense | 9,059 | 11,545 | 4,444 | 4,615 | 4,712 | 5,363 | 5,802 | |||||||||||||||||||||
Net interest income | 20,394 | 23,425 | 9,548 | 10,846 | 10,701 | 10,490 | 11,246 | |||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||
Card income | 3,035 | 3,795 | 1,578 | 1,457 | 1,478 | 1,911 | 1,967 | |||||||||||||||||||||
Service charges | 3,846 | 4,044 | 1,934 | 1,912 | 1,982 | 2,068 | 2,012 | |||||||||||||||||||||
Investment and brokerage services | 5,723 | 6,110 | 2,847 | 2,876 | 2,694 | 3,022 | 3,009 | |||||||||||||||||||||
Investment banking income | 2,363 | 3,262 | 1,146 | 1,217 | 1,013 | 942 | 1,684 | |||||||||||||||||||||
Equity investment income | 1,133 | 2,687 | 368 | 765 | 3,227 | 1,446 | 1,212 | |||||||||||||||||||||
Trading account profits | 3,839 | 4,813 | 1,764 | 2,075 | 280 | 1,604 | 2,091 | |||||||||||||||||||||
Mortgage banking income (loss) | 3,271 | (12,566 | ) | 1,659 | 1,612 | 2,119 | 1,617 | (13,196 | ) | |||||||||||||||||||
Insurance income (loss) | 67 | 1,013 | 127 | (60 | ) | 143 | 190 | 400 | ||||||||||||||||||||
Gains on sales of debt securities | 1,152 | 1,445 | 400 | 752 | 1,192 | 737 | 899 | |||||||||||||||||||||
Other income (loss) | (531 | ) | 2,218 | 603 | (1,134 | ) | 140 | 4,511 | 1,957 | |||||||||||||||||||
Other-than-temporary impairment losses on available-for-sale debt securities: | ||||||||||||||||||||||||||||
Total other-than-temporary impairment losses | (62 | ) | (157 | ) | (13 | ) | (51 | ) | (127 | ) | (114 | ) | (63 | ) | ||||||||||||||
Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income | 16 | 24 | 7 | 11 | 46 | 29 | 18 | |||||||||||||||||||||
Net impairment losses recognized in earnings on available-for-sale debt securities | (46 | ) | (133 | ) | (6 | ) | (40 | ) | (81 | ) | (85 | ) | (45 | ) | ||||||||||||||
Total noninterest income | 23,852 | 16,688 | 12,420 | 11,432 | 14,187 | 17,963 | 1,990 | |||||||||||||||||||||
Total revenue, net of interest expense | 44,246 | 40,113 | 21,968 | 22,278 | 24,888 | 28,453 | 13,236 | |||||||||||||||||||||
Provision for credit losses | 4,191 | 7,069 | 1,773 | 2,418 | 2,934 | 3,407 | 3,255 | |||||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||||||
Personnel | 18,917 | 19,339 | 8,729 | 10,188 | 8,761 | 8,865 | 9,171 | |||||||||||||||||||||
Occupancy | 2,259 | 2,434 | 1,117 | 1,142 | 1,131 | 1,183 | 1,245 | |||||||||||||||||||||
Equipment | 1,157 | 1,199 | 546 | 611 | 525 | 616 | 593 | |||||||||||||||||||||
Marketing | 914 | 1,124 | 449 | 465 | 523 | 556 | 560 | |||||||||||||||||||||
Professional fees | 1,705 | 1,412 | 922 | 783 | 1,032 | 937 | 766 | |||||||||||||||||||||
Amortization of intangibles | 640 | 767 | 321 | 319 | 365 | 377 | 382 | |||||||||||||||||||||
Data processing | 1,548 | 1,338 | 692 | 856 | 688 | 626 | 643 | |||||||||||||||||||||
Telecommunications | 817 | 762 | 417 | 400 | 386 | 405 | 391 | |||||||||||||||||||||
Other general operating | 8,232 | 11,800 | 3,855 | 4,377 | 5,429 | 3,872 | 6,343 | |||||||||||||||||||||
Goodwill impairment | — | 2,603 | — | — | 581 | — | 2,603 | |||||||||||||||||||||
Merger and restructuring charges | — | 361 | — | — | 101 | 176 | 159 | |||||||||||||||||||||
Total noninterest expense | 36,189 | 43,139 | 17,048 | 19,141 | 19,522 | 17,613 | 22,856 | |||||||||||||||||||||
Income (loss) before income taxes | 3,866 | (10,095 | ) | 3,147 | 719 | 2,432 | 7,433 | (12,875 | ) | |||||||||||||||||||
Income tax expense (benefit) | 750 | (3,318 | ) | 684 | 66 | 441 | 1,201 | (4,049 | ) | |||||||||||||||||||
Net income (loss) | $ | 3,116 | $ | (6,777 | ) | $ | 2,463 | $ | 653 | $ | 1,991 | $ | 6,232 | $ | (8,826 | ) | ||||||||||||
Preferred stock dividends | 690 | 611 | 365 | 325 | 407 | 343 | 301 | |||||||||||||||||||||
Net income (loss) applicable to common shareholders | $ | 2,426 | $ | (7,388 | ) | $ | 2,098 | $ | 328 | $ | 1,584 | $ | 5,889 | $ | (9,127 | ) | ||||||||||||
Per common share information | ||||||||||||||||||||||||||||
Earnings (loss) | $ | 0.23 | $ | (0.73 | ) | $ | 0.19 | $ | 0.03 | $ | 0.15 | $ | 0.58 | $ | (0.90 | ) | ||||||||||||
Diluted earnings (loss) (1) | 0.22 | (0.73 | ) | 0.19 | 0.03 | 0.15 | 0.56 | (0.90 | ) | |||||||||||||||||||
Dividends paid | 0.02 | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | |||||||||||||||||||||
Average common shares issued and outstanding | 10,714,881 | 10,085,479 | 10,775,695 | 10,651,367 | 10,281,397 | 10,116,284 | 10,094,928 | |||||||||||||||||||||
Average diluted common shares issued and outstanding (1) | 11,509,945 | 10,085,479 | 11,556,011 | 10,761,917 | 11,124,523 | 10,464,395 | 10,094,928 | |||||||||||||||||||||
(1) | Due to a net loss applicable to common shareholders for the second quarter of 2011, the impact of antidilutive equity instruments was excluded from diluted earnings per share and average diluted common shares. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 4 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Consolidated Statement of Comprehensive Income | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | |||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||
Net income (loss) | $ | 3,116 | $ | (6,777 | ) | $ | 2,463 | $ | 653 | $ | 1,991 | $ | 6,232 | $ | (8,826 | ) | ||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||||||
Net change in available-for-sale debt and marketable equity securities | 606 | 754 | 1,530 | (924 | ) | (2,866 | ) | (2,158 | ) | 593 | ||||||||||||||||||
Net change in derivatives | 301 | (66 | ) | (81 | ) | 382 | 281 | (764 | ) | (332 | ) | |||||||||||||||||
Employee benefit plan adjustments | 1,031 | 138 | 79 | 952 | (648 | ) | 66 | 63 | ||||||||||||||||||||
Net change in foreign currency translation adjustments | (1 | ) | 33 | (32 | ) | 31 | (133 | ) | (8 | ) | 6 | |||||||||||||||||
Other comprehensive income (loss) | 1,937 | 859 | 1,496 | 441 | (3,366 | ) | (2,864 | ) | 330 | |||||||||||||||||||
Comprehensive income (loss) | $ | 5,053 | $ | (5,918 | ) | $ | 3,959 | $ | 1,094 | $ | (1,375 | ) | $ | 3,368 | $ | (8,496 | ) | |||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 5 |
Bank of America Corporation and Subsidiaries | |||||||||||
Consolidated Balance Sheet | |||||||||||
(Dollars in millions) | |||||||||||
June 30 2012 | March 31 2012 | June 30 2011 | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 123,717 | $ | 128,792 | $ | 119,527 | |||||
Time deposits placed and other short-term investments | 22,350 | 20,479 | 20,291 | ||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 226,116 | 225,784 | 235,181 | ||||||||
Trading account assets | 204,725 | 209,775 | 196,939 | ||||||||
Derivative assets | 59,939 | 59,051 | 66,598 | ||||||||
Debt securities: | |||||||||||
Available-for-sale | 300,049 | 297,040 | 330,871 | ||||||||
Held-to-maturity, at cost | 35,168 | 34,205 | 181 | ||||||||
Total debt securities | 335,217 | 331,245 | 331,052 | ||||||||
Loans and leases | 892,315 | 902,294 | 941,257 | ||||||||
Allowance for loan and lease losses | (30,288 | ) | (32,211 | ) | (37,312 | ) | |||||
Loans and leases, net of allowance | 862,027 | 870,083 | 903,945 | ||||||||
Premises and equipment, net | 12,653 | 13,104 | 13,793 | ||||||||
Mortgage servicing rights (includes $5,708, $7,589 and $12,372 measured at fair value) | 5,880 | 7,723 | 12,642 | ||||||||
Goodwill | 69,976 | 69,976 | 71,074 | ||||||||
Intangible assets | 7,335 | 7,696 | 9,176 | ||||||||
Loans held-for-sale | 13,289 | 12,973 | 20,092 | ||||||||
Customer and other receivables | 71,458 | 74,358 | 86,550 | ||||||||
Other assets | 146,172 | 150,410 | 174,459 | ||||||||
Total assets | $ | 2,160,854 | $ | 2,181,449 | $ | 2,261,319 | |||||
Assets of consolidated VIEs included in total assets above (substantially all pledged as collateral) | |||||||||||
Trading account assets | $ | 8,499 | $ | 8,920 | $ | 10,746 | |||||
Derivative assets | 1,007 | 1,109 | 2,293 | ||||||||
Available-for-sale debt securities | — | — | 251 | ||||||||
Loans and leases | 128,385 | 133,742 | 151,928 | ||||||||
Allowance for loan and lease losses | (4,074 | ) | (4,509 | ) | (6,367 | ) | |||||
Loans and leases, net of allowance | 124,311 | 129,233 | 145,561 | ||||||||
Loans held-for-sale | 2,163 | 1,577 | 1,561 | ||||||||
All other assets | 4,113 | 3,118 | 7,115 | ||||||||
Total assets of consolidated VIEs | $ | 140,093 | $ | 143,957 | $ | 167,527 |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 6 |
Bank of America Corporation and Subsidiaries | |||||||||||
Consolidated Balance Sheet (continued) | |||||||||||
(Dollars in millions) | |||||||||||
June 30 2012 | March 31 2012 | June 30 2011 | |||||||||
Liabilities | |||||||||||
Deposits in U.S. offices: | |||||||||||
Noninterest-bearing | $ | 343,308 | $ | 338,215 | $ | 301,558 | |||||
Interest-bearing | 621,076 | 630,822 | 647,480 | ||||||||
Deposits in non-U.S. offices: | |||||||||||
Noninterest-bearing | 6,871 | 7,240 | 6,555 | ||||||||
Interest-bearing | 63,970 | 65,034 | 82,815 | ||||||||
Total deposits | 1,035,225 | 1,041,311 | 1,038,408 | ||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 285,914 | 258,491 | 239,521 | ||||||||
Trading account liabilities | 77,458 | 70,414 | 74,989 | ||||||||
Derivative liabilities | 51,515 | 49,172 | 54,414 | ||||||||
Commercial paper and other short-term borrowings | 39,019 | 39,254 | 50,632 | ||||||||
Accrued expenses and other liabilities (includes $574, $651 and $897 of reserve for unfunded lending commitments) | 133,900 | 135,396 | 154,520 | ||||||||
Long-term debt | 301,848 | 354,912 | 426,659 | ||||||||
Total liabilities | 1,924,879 | 1,948,950 | 2,039,143 | ||||||||
Shareholders’ equity | |||||||||||
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 3,685,410, 3,685,410 and 3,943,660 shares | 18,762 | 18,788 | 16,562 | ||||||||
Common stock and additional paid-in capital, $0.01 par value; authorized - 12,800,000,000 shares; issued and outstanding - 10,776,869,270, 10,775,604,276 and 10,133,189,501 shares | 158,001 | 157,973 | 151,567 | ||||||||
Retained earnings | 62,712 | 60,734 | 53,254 | ||||||||
Accumulated other comprehensive income (loss) | (3,500 | ) | (4,996 | ) | 793 | ||||||
Total shareholders’ equity | 235,975 | 232,499 | 222,176 | ||||||||
Total liabilities and shareholders’ equity | $ | 2,160,854 | $ | 2,181,449 | $ | 2,261,319 | |||||
Liabilities of consolidated VIEs included in total liabilities above | |||||||||||
Commercial paper and other short-term borrowings | $ | 4,449 | $ | 5,598 | $ | 5,421 | |||||
Long-term debt | 38,456 | 44,267 | 64,745 | ||||||||
All other liabilities | 1,161 | 978 | 1,127 | ||||||||
Total liabilities of consolidated VIEs | $ | 44,066 | $ | 50,843 | $ | 71,293 |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 7 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||
Capital Management | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | |||||||||||||||
Risk-based capital (1): | |||||||||||||||||||
Tier 1 common | $ | 134,082 | $ | 131,602 | $ | 126,690 | $ | 117,658 | $ | 114,684 | |||||||||
Tier 1 capital | 164,665 | 163,199 | 159,232 | 156,074 | 153,134 | ||||||||||||||
Total capital | 208,936 | 213,480 | 215,101 | 215,596 | 217,986 | ||||||||||||||
Risk-weighted assets | 1,193,422 | 1,220,827 | 1,284,467 | 1,359,564 | 1,392,747 | ||||||||||||||
Tier 1 common capital ratio (2) | 11.24 | % | 10.78 | % | 9.86 | % | 8.65 | % | 8.23 | % | |||||||||
Tier 1 capital ratio | 13.80 | 13.37 | 12.40 | 11.48 | 11.00 | ||||||||||||||
Total capital ratio | 17.51 | 17.49 | 16.75 | 15.86 | 15.65 | ||||||||||||||
Tier 1 leverage ratio | 7.82 | 7.79 | 7.53 | 7.11 | 6.86 | ||||||||||||||
Tangible equity ratio (3) | 7.73 | 7.48 | 7.54 | 7.16 | 6.63 | ||||||||||||||
Tangible common equity ratio (3) | 6.83 | 6.58 | 6.64 | 6.25 | 5.87 | ||||||||||||||
(1) | Reflects preliminary data for current period risk-based capital. |
(2) | Tier 1 common capital ratio equals Tier 1 capital excluding preferred stock, trust preferred securities, hybrid securities and minority interest divided by risk-weighted assets. |
(3) | Tangible equity ratio equals period-end tangible shareholders’ equity divided by period-end tangible assets. Tangible common equity equals period-end tangible common shareholders’ equity divided by period-end tangible assets. Tangible shareholders’ equity and tangible assets are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on pages 47-50.) |
![](https://capedge.com/proxy/8-K/0000070858-12-000302/capmgmtgrapha05.jpg)
*Preliminary data on risk-based capital
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 8 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Net Interest Income Excluding Market-based Net Interest Income | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | |||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||
Net interest income (FTE basis) | ||||||||||||||||||||||||||||
As reported (1) | $ | 20,835 | $ | 23,890 | $ | 9,782 | $ | 11,053 | $ | 10,959 | $ | 10,739 | $ | 11,493 | ||||||||||||||
Impact of market-based net interest income (2) | (1,449 | ) | (1,894 | ) | (653 | ) | (796 | ) | (866 | ) | (929 | ) | (874 | ) | ||||||||||||||
Net interest income excluding market-based net interest income | $ | 19,386 | $ | 21,996 | $ | 9,129 | $ | 10,257 | $ | 10,093 | $ | 9,810 | $ | 10,619 | ||||||||||||||
Average earning assets | ||||||||||||||||||||||||||||
As reported | $ | 1,770,336 | $ | 1,857,124 | $ | 1,772,568 | $ | 1,768,105 | $ | 1,783,986 | $ | 1,841,135 | $ | 1,844,525 | ||||||||||||||
Impact of market-based earning assets (2) | (434,447 | ) | (461,526 | ) | (444,537 | ) | (424,358 | ) | (414,136 | ) | (445,431 | ) | (457,845 | ) | ||||||||||||||
Average earning assets excluding market-based earning assets | $ | 1,335,889 | $ | 1,395,598 | $ | 1,328,031 | $ | 1,343,747 | $ | 1,369,850 | $ | 1,395,704 | $ | 1,386,680 | ||||||||||||||
Net interest yield contribution (FTE basis) (3) | ||||||||||||||||||||||||||||
As reported (1) | 2.36 | % | 2.58 | % | 2.21 | % | 2.51 | % | 2.45 | % | 2.32 | % | 2.50 | % | ||||||||||||||
Impact of market-based activities (2) | 0.55 | 0.58 | 0.55 | 0.55 | 0.49 | 0.48 | 0.57 | |||||||||||||||||||||
Net interest yield on earning assets excluding market-based activities | 2.91 | % | 3.16 | % | 2.76 | % | 3.06 | % | 2.94 | % | 2.80 | % | 3.07 | % | ||||||||||||||
(1) | Net interest income and net interest yield include fees earned on overnight deposits placed with the Federal Reserve of $99 million and $112 million for the six months ended June 30, 2012 and 2011; $52 million and $47 million for the second and first quarters of 2012, and $36 million, $38 million and $49 million for the fourth, third and second quarters of 2011, respectively. |
(2) | Represents the impact of market-based amounts included in Global Markets. |
(3) | Calculated on an annualized basis. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 9 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||
Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Second Quarter 2012 | First Quarter 2012 | Second Quarter 2011 | |||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||||||||||||
Earning assets | |||||||||||||||||||||||||||||||||||
Time deposits placed and other short-term investments (1) | $ | 27,476 | $ | 64 | 0.94 | % | $ | 31,404 | $ | 65 | 0.83 | % | $ | 27,298 | $ | 106 | 1.56 | % | |||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 234,148 | 360 | 0.62 | 233,061 | 460 | 0.79 | 259,069 | 597 | 0.92 | ||||||||||||||||||||||||||
Trading account assets | 180,694 | 1,302 | 2.89 | 175,778 | 1,399 | 3.19 | 186,760 | 1,576 | 3.38 | ||||||||||||||||||||||||||
Debt securities (2) | 342,244 | 1,907 | 2.23 | 327,758 | 2,732 | 3.33 | 335,269 | 2,696 | 3.22 | ||||||||||||||||||||||||||
Loans and leases (3): | |||||||||||||||||||||||||||||||||||
Residential mortgage | 255,349 | 2,462 | 3.86 | 260,573 | 2,489 | 3.82 | 265,420 | 2,763 | 4.16 | ||||||||||||||||||||||||||
Home equity | 119,657 | 1,090 | 3.66 | 122,933 | 1,164 | 3.80 | 131,786 | 1,261 | 3.83 | ||||||||||||||||||||||||||
Discontinued real estate | 11,144 | 94 | 3.36 | 12,082 | 103 | 3.42 | 15,997 | 129 | 3.22 | ||||||||||||||||||||||||||
U.S. credit card | 95,018 | 2,356 | 9.97 | 98,334 | 2,459 | 10.06 | 106,164 | 2,718 | 10.27 | ||||||||||||||||||||||||||
Non-U.S. credit card | 13,641 | 396 | 11.68 | 14,151 | 408 | 11.60 | 27,259 | 760 | 11.18 | ||||||||||||||||||||||||||
Direct/Indirect consumer | 84,198 | 733 | 3.50 | 88,321 | 801 | 3.65 | 89,403 | 945 | 4.24 | ||||||||||||||||||||||||||
Other consumer | 2,565 | 41 | 6.41 | 2,617 | 40 | 6.24 | 2,745 | 47 | 6.76 | ||||||||||||||||||||||||||
Total consumer | 581,572 | 7,172 | 4.95 | 599,011 | 7,464 | 5.00 | 638,774 | 8,623 | 5.41 | ||||||||||||||||||||||||||
U.S. commercial | 199,644 | 1,742 | 3.51 | 195,111 | 1,756 | 3.62 | 190,479 | 1,827 | 3.85 | ||||||||||||||||||||||||||
Commercial real estate | 37,627 | 323 | 3.46 | 39,190 | 339 | 3.48 | 45,762 | 382 | 3.35 | ||||||||||||||||||||||||||
Commercial lease financing | 21,446 | 216 | 4.02 | 21,679 | 272 | 5.01 | 21,284 | 235 | 4.41 | ||||||||||||||||||||||||||
Non-U.S. commercial | 59,209 | 369 | 2.50 | 58,731 | 391 | 2.68 | 42,214 | 339 | 3.22 | ||||||||||||||||||||||||||
Total commercial | 317,926 | 2,650 | 3.35 | 314,711 | 2,758 | 3.52 | 299,739 | 2,783 | 3.72 | ||||||||||||||||||||||||||
Total loans and leases | 899,498 | 9,822 | 4.38 | 913,722 | 10,222 | 4.49 | 938,513 | 11,406 | 4.87 | ||||||||||||||||||||||||||
Other earning assets | 88,508 | 719 | 3.26 | 86,382 | 743 | 3.46 | 97,616 | 866 | 3.56 | ||||||||||||||||||||||||||
Total earning assets (4) | 1,772,568 | 14,174 | 3.21 | 1,768,105 | 15,621 | 3.55 | 1,844,525 | 17,247 | 3.75 | ||||||||||||||||||||||||||
Cash and cash equivalents (1) | 116,025 | 52 | 112,512 | 47 | 115,956 | 49 | |||||||||||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 305,970 | 306,557 | 378,629 | ||||||||||||||||||||||||||||||||
Total assets | $ | 2,194,563 | $ | 2,187,174 | $ | 2,339,110 | |||||||||||||||||||||||||||||
(1) | For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Corporation’s Consolidated Balance Sheet presentation of these deposits. Net interest income and net interest yield are calculated excluding these fees. |
(2) | Yields on available-for-sale debt securities are calculated based on fair value rather than the cost basis. The use of fair value does not have a material impact on net interest yield. |
(3) | Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cost recovery basis. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan. |
(4) | The impact of interest rate risk management derivatives on interest income is presented below. Interest income includes the impact of interest rate risk management contracts, which increased (decreased) interest income on: |
Second Quarter 2012 | First Quarter 2012 | Second Quarter 2011 | ||||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | $ | 36 | $ | 51 | $ | 43 | ||||||||||||||||||||
Trading account assets | — | — | (88 | ) | ||||||||||||||||||||||
Debt securities | (386 | ) | (140 | ) | (681 | ) | ||||||||||||||||||||
U.S. commercial | (16 | ) | (16 | ) | (11 | ) | ||||||||||||||||||||
Non-U.S. commercial | — | (1 | ) | (2 | ) | |||||||||||||||||||||
Net hedge expenses on assets | $ | (366 | ) | $ | (106 | ) | $ | (739 | ) |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 10 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||
Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis (continued) | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Second Quarter 2012 | First Quarter 2012 | Second Quarter 2011 | |||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||
U.S. interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
Savings | $ | 42,394 | $ | 14 | 0.13 | % | $ | 40,543 | $ | 14 | 0.14 | % | $ | 41,668 | $ | 31 | 0.30 | % | |||||||||||||||||
NOW and money market deposit accounts | 460,788 | 188 | 0.16 | 458,649 | 186 | 0.16 | 478,690 | 304 | 0.25 | ||||||||||||||||||||||||||
Consumer CDs and IRAs | 96,858 | 171 | 0.71 | 100,044 | 194 | 0.78 | 113,728 | 281 | 0.99 | ||||||||||||||||||||||||||
Negotiable CDs, public funds and other deposits | 21,661 | 35 | 0.65 | 22,586 | 36 | 0.64 | 13,842 | 42 | 1.22 | ||||||||||||||||||||||||||
Total U.S. interest-bearing deposits | 621,701 | 408 | 0.26 | 621,822 | 430 | 0.28 | 647,928 | 658 | 0.41 | ||||||||||||||||||||||||||
Non-U.S. interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
Banks located in non-U.S. countries | 14,598 | 25 | 0.69 | 18,170 | 28 | 0.62 | 19,234 | 37 | 0.77 | ||||||||||||||||||||||||||
Governments and official institutions | 895 | 1 | 0.37 | 1,286 | 1 | 0.41 | 2,131 | 2 | 0.38 | ||||||||||||||||||||||||||
Time, savings and other | 52,584 | 85 | 0.65 | 55,241 | 90 | 0.66 | 64,889 | 146 | 0.90 | ||||||||||||||||||||||||||
Total non-U.S. interest-bearing deposits | 68,077 | 111 | 0.65 | 74,697 | 119 | 0.64 | 86,254 | 185 | 0.86 | ||||||||||||||||||||||||||
Total interest-bearing deposits | 689,778 | 519 | 0.30 | 696,519 | 549 | 0.32 | 734,182 | 843 | 0.46 | ||||||||||||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings | 318,909 | 943 | 1.19 | 293,056 | 881 | 1.21 | 338,692 | 1,342 | 1.59 | ||||||||||||||||||||||||||
Trading account liabilities | 84,728 | 448 | 2.13 | 71,872 | 477 | 2.67 | 96,108 | 627 | 2.62 | ||||||||||||||||||||||||||
Long-term debt | 333,173 | 2,534 | 3.05 | 363,518 | 2,708 | 2.99 | 435,144 | 2,991 | 2.75 | ||||||||||||||||||||||||||
Total interest-bearing liabilities (1) | 1,426,588 | 4,444 | 1.25 | 1,424,965 | 4,615 | 1.30 | 1,604,126 | 5,803 | 1.45 | ||||||||||||||||||||||||||
Noninterest-bearing sources: | |||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 343,110 | 333,593 | 301,762 | ||||||||||||||||||||||||||||||||
Other liabilities | 189,307 | 196,050 | 198,155 | ||||||||||||||||||||||||||||||||
Shareholders’ equity | 235,558 | 232,566 | 235,067 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,194,563 | $ | 2,187,174 | $ | 2,339,110 | |||||||||||||||||||||||||||||
Net interest spread | 1.96 | % | 2.25 | % | 2.30 | % | |||||||||||||||||||||||||||||
Impact of noninterest-bearing sources | 0.24 | 0.25 | 0.19 | ||||||||||||||||||||||||||||||||
Net interest income/yield on earning assets (2) | $ | 9,730 | 2.20 | % | $ | 11,006 | 2.50 | % | $ | 11,444 | 2.49 | % | |||||||||||||||||||||||
(1) | The impact of interest rate risk management derivatives on interest expense is presented below. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest expense on: |
Second Quarter 2012 | First Quarter 2012 | Second Quarter 2011 | ||||||||||||||||||||||||
NOW and money market deposit accounts | $ | (1 | ) | $ | — | $ | — | |||||||||||||||||||
Consumer CDs and IRAs | 22 | 34 | 46 | |||||||||||||||||||||||
Negotiable CDs, public funds and other deposits | 4 | 3 | 3 | |||||||||||||||||||||||
Banks located in non-U.S. countries | 3 | 4 | 16 | |||||||||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings | 307 | 325 | 511 | |||||||||||||||||||||||
Long-term debt | (926 | ) | (1,024 | ) | (1,201 | ) | ||||||||||||||||||||
Net hedge income on liabilities | $ | (591 | ) | $ | (658 | ) | $ | (625 | ) |
(2) | For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Corporation's Consolidated Balance Sheet presentation of these deposits. Net interest income and net interest yield are calculated excluding these fees. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 11 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||
Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis | ||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||
Six Months Ended June 30 | ||||||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||||||||||
Earning assets | ||||||||||||||||||||||||||||||
Time deposits placed and other short-term investments (1) | $ | 29,440 | $ | 129 | 0.88 | % | $ | 29,285 | $ | 194 | 1.34 | % | ||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 233,604 | 820 | 0.71 | 243,311 | 1,114 | 0.92 | ||||||||||||||||||||||||
Trading account assets | 178,236 | 2,701 | 3.04 | 203,806 | 3,245 | 3.21 | ||||||||||||||||||||||||
Debt securities (2) | 335,001 | 4,639 | 2.77 | 335,556 | 5,613 | 3.35 | ||||||||||||||||||||||||
Loans and leases (3): | ||||||||||||||||||||||||||||||
Residential mortgage | 257,961 | 4,951 | 3.84 | 263,744 | 5,644 | 4.28 | ||||||||||||||||||||||||
Home equity | 121,295 | 2,254 | 3.73 | 133,926 | 2,596 | 3.90 | ||||||||||||||||||||||||
Discontinued real estate | 11,613 | 197 | 3.39 | 14,457 | 239 | 3.31 | ||||||||||||||||||||||||
U.S. credit card | 96,676 | 4,815 | 10.02 | 108,042 | 5,555 | 10.37 | ||||||||||||||||||||||||
Non-U.S. credit card | 13,896 | 804 | 11.64 | 27,445 | 1,539 | 11.31 | ||||||||||||||||||||||||
Direct/Indirect consumer | 86,259 | 1,534 | 3.58 | 89,748 | 1,938 | 4.36 | ||||||||||||||||||||||||
Other consumer | 2,592 | 81 | 6.33 | 2,748 | 92 | 6.75 | ||||||||||||||||||||||||
Total consumer | 590,292 | 14,636 | 4.98 | 640,110 | 17,603 | 5.53 | ||||||||||||||||||||||||
U.S. commercial | 197,377 | 3,498 | 3.56 | 190,914 | 3,753 | 3.96 | ||||||||||||||||||||||||
Commercial real estate | 38,408 | 662 | 3.47 | 47,053 | 819 | 3.51 | ||||||||||||||||||||||||
Commercial lease financing | 21,563 | 488 | 4.52 | 21,458 | 557 | 5.18 | ||||||||||||||||||||||||
Non-U.S. commercial | 58,970 | 760 | 2.59 | 39,203 | 638 | 3.28 | ||||||||||||||||||||||||
Total commercial | 316,318 | 5,408 | 3.44 | 298,628 | 5,767 | 3.89 | ||||||||||||||||||||||||
Total loans and leases | 906,610 | 20,044 | 4.44 | 938,738 | 23,370 | 5.01 | ||||||||||||||||||||||||
Other earning assets | 87,445 | 1,462 | 3.36 | 106,428 | 1,788 | 3.39 | ||||||||||||||||||||||||
Total earning assets (4) | 1,770,336 | 29,795 | 3.38 | 1,857,124 | 35,324 | 3.84 | ||||||||||||||||||||||||
Cash and cash equivalents (1) | 114,268 | 99 | 127,037 | 112 | ||||||||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 306,264 | 354,665 | ||||||||||||||||||||||||||||
Total assets | $ | 2,190,868 | $ | 2,338,826 | ||||||||||||||||||||||||||
(1) | For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Corporation’s Consolidated Balance Sheet presentation of these deposits. Net interest income and net interest yield in the table are calculated excluding these fees. |
(2) | Yields on available-for-sale debt securities are calculated based on fair value rather than the cost basis. The use of fair value does not have a material impact on net interest yield. |
(3) | Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cost recovery basis. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan. |
(4) | The impact of interest rate risk management derivatives on interest income is presented below. Interest income includes the impact of interest rate risk management contracts, which increased (decreased) interest income on: |
2012 | 2011 | |||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | $ | 87 | $ | 98 | ||||||
Trading account assets | — | (158 | ) | |||||||
Debt securities | (526 | ) | (1,043 | ) | ||||||
U.S. commercial | (32 | ) | (22 | ) | ||||||
Non-U.S. commercial | (1 | ) | (2 | ) | ||||||
Net hedge expenses on assets | $ | (472 | ) | $ | (1,127 | ) |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 12 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||
Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis (continued) | ||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||
Six Months Ended June 30 | ||||||||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||
U.S. interest-bearing deposits: | ||||||||||||||||||||||||||||||
Savings | $ | 41,468 | $ | 28 | 0.13 | % | $ | 40,294 | $ | 63 | 0.32 | % | ||||||||||||||||||
NOW and money market deposit accounts | 459,718 | 374 | 0.16 | 477,330 | 620 | 0.26 | ||||||||||||||||||||||||
Consumer CDs and IRAs | 98,451 | 365 | 0.75 | 116,004 | 581 | 1.01 | ||||||||||||||||||||||||
Negotiable CDs, public funds and other deposits | 22,125 | 71 | 0.64 | 13,918 | 81 | 1.17 | ||||||||||||||||||||||||
Total U.S. interest-bearing deposits | 621,762 | 838 | 0.27 | 647,546 | 1,345 | 0.42 | ||||||||||||||||||||||||
Non-U.S. interest-bearing deposits: | ||||||||||||||||||||||||||||||
Banks located in non-U.S. countries | 16,384 | 53 | 0.65 | 20,378 | 75 | 0.74 | ||||||||||||||||||||||||
Governments and official institutions | 1,091 | 2 | 0.40 | 2,219 | 4 | 0.36 | ||||||||||||||||||||||||
Time, savings and other | 53,912 | 175 | 0.65 | 62,673 | 258 | 0.83 | ||||||||||||||||||||||||
Total non-U.S. interest-bearing deposits | 71,387 | 230 | 0.65 | 85,270 | 337 | 0.80 | ||||||||||||||||||||||||
Total interest-bearing deposits | 693,149 | 1,068 | 0.31 | 732,816 | 1,682 | 0.46 | ||||||||||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings | 305,981 | 1,824 | 1.20 | 355,042 | 2,526 | 1.43 | ||||||||||||||||||||||||
Trading account liabilities | 78,300 | 925 | 2.38 | 90,044 | 1,254 | 2.81 | ||||||||||||||||||||||||
Long-term debt | 348,346 | 5,242 | 3.02 | 437,812 | 6,084 | 2.80 | ||||||||||||||||||||||||
Total interest-bearing liabilities (1) | 1,425,776 | 9,059 | 1.28 | 1,615,714 | 11,546 | 1.44 | ||||||||||||||||||||||||
Noninterest-bearing sources: | ||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 338,351 | 296,762 | ||||||||||||||||||||||||||||
Other liabilities | 192,679 | 193,420 | ||||||||||||||||||||||||||||
Shareholders’ equity | 234,062 | 232,930 | ||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,190,868 | $ | 2,338,826 | ||||||||||||||||||||||||||
Net interest spread | 2.10 | % | 2.40 | % | ||||||||||||||||||||||||||
Impact of noninterest-bearing sources | 0.25 | 0.17 | ||||||||||||||||||||||||||||
Net interest income/yield on earning assets (2) | $ | 20,736 | 2.35 | % | $ | 23,778 | 2.57 | % | ||||||||||||||||||||||
(1) | The impact of interest rate risk management derivatives on interest expense is presented below. Interest expense includes the impact of interest rate risk management contracts, which increased(decreased) interest expense on: |
2012 | 2011 | |||||||||
NOW and money market deposit accounts | $ | (1 | ) | $ | (1 | ) | ||||
Consumer CDs and IRAs | 56 | 93 | ||||||||
Negotiable CDs, public funds and other deposits | 7 | 7 | ||||||||
Banks located in non-U.S. countries | 7 | 34 | ||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings | 632 | 956 | ||||||||
Long-term debt | (1,950 | ) | (2,335 | ) | ||||||
Net hedge income on liabilities | $ | (1,249 | ) | $ | (1,246 | ) |
(2) | For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Corporation's Consolidated Balance Sheet presentation of these deposits. Net interest income and net interest yield are calculated excluding these fees. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 13 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||
Debt Securities and Available-for-Sale Marketable Equity Securities | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
June 30, 2012 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Available-for-sale debt securities | ||||||||||||||||
U.S. Treasury and agency securities | $ | 30,034 | $ | 237 | $ | (440 | ) | $ | 29,831 | |||||||
Mortgage-backed securities: | ||||||||||||||||
Agency | 189,167 | 5,075 | (51 | ) | 194,191 | |||||||||||
Agency collateralized mortgage obligations | 38,553 | 752 | (156 | ) | 39,149 | |||||||||||
Non-agency residential | 10,514 | 256 | (255 | ) | 10,515 | |||||||||||
Non-agency commercial | 3,751 | 376 | — | 4,127 | ||||||||||||
Non-U.S. securities | 5,736 | 37 | (8 | ) | 5,765 | |||||||||||
Corporate bonds | 2,073 | 75 | (26 | ) | 2,122 | |||||||||||
Other taxable securities (1) | 11,494 | 68 | (40 | ) | 11,522 | |||||||||||
Total taxable securities | $ | 291,322 | $ | 6,876 | $ | (976 | ) | $ | 297,222 | |||||||
Tax-exempt securities | 2,862 | 17 | (52 | ) | 2,827 | |||||||||||
Total available-for-sale debt securities | $ | 294,184 | $ | 6,893 | $ | (1,028 | ) | $ | 300,049 | |||||||
Held-to-maturity debt securities | 35,168 | 826 | — | 35,994 | ||||||||||||
Total debt securities | $ | 329,352 | $ | 7,719 | $ | (1,028 | ) | $ | 336,043 | |||||||
Available-for-sale marketable equity securities (2) | $ | 62 | $ | 27 | $ | (6 | ) | $ | 83 | |||||||
March 31, 2012 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Available-for-sale debt securities | ||||||||||||||||
U.S. Treasury and agency securities | $ | 40,609 | $ | 231 | $ | (874 | ) | $ | 39,966 | |||||||
Mortgage-backed securities: | ||||||||||||||||
Agency | 172,335 | 3,177 | (421 | ) | 175,091 | |||||||||||
Agency collateralized mortgage obligations | 41,698 | 802 | (145 | ) | 42,355 | |||||||||||
Non-agency residential | 11,398 | 300 | (228 | ) | 11,470 | |||||||||||
Non-agency commercial | 4,333 | 567 | (1 | ) | 4,899 | |||||||||||
Non-U.S. securities | 6,530 | 56 | (18 | ) | 6,568 | |||||||||||
Corporate bonds | 2,364 | 85 | (28 | ) | 2,421 | |||||||||||
Other taxable securities (1) | 10,595 | 74 | (52 | ) | 10,617 | |||||||||||
Total taxable securities | $ | 289,862 | $ | 5,292 | $ | (1,767 | ) | $ | 293,387 | |||||||
Tax-exempt securities | 3,694 | 16 | (57 | ) | 3,653 | |||||||||||
Total available-for-sale debt securities | $ | 293,556 | $ | 5,308 | $ | (1,824 | ) | $ | 297,040 | |||||||
Held-to-maturity debt securities | 34,205 | 246 | (11 | ) | 34,440 | |||||||||||
Total debt securities | $ | 327,761 | $ | 5,554 | $ | (1,835 | ) | $ | 331,480 | |||||||
Available-for-sale marketable equity securities (2) | $ | 64 | $ | 28 | $ | (5 | ) | $ | 87 | |||||||
(1) | Substantially all asset-backed securities. |
(2) | Classified in other assets on the Consolidated Balance Sheet. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 14 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Quarterly Results by Business Segment | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Second Quarter 2012 | |||||||||||||||||||||||||||||
Total Corporation | Consumer & Business Banking | Consumer Real Estate Services | Global Banking | Global Markets | GWIM | All Other | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 9,782 | $ | 4,704 | $ | 714 | $ | 2,184 | $ | 650 | $ | 1,446 | $ | 84 | |||||||||||||||
Noninterest income | 12,420 | 2,622 | 1,807 | 2,101 | 2,715 | 2,871 | 304 | ||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 22,202 | 7,326 | 2,521 | 4,285 | 3,365 | 4,317 | 388 | ||||||||||||||||||||||
Provision for credit losses | 1,773 | 1,131 | 186 | (113 | ) | (14 | ) | 47 | 536 | ||||||||||||||||||||
Noninterest expense | 17,048 | 4,359 | 3,556 | 2,165 | 2,711 | 3,408 | 849 | ||||||||||||||||||||||
Income (loss) before income taxes | 3,381 | 1,836 | (1,221 | ) | 2,233 | 668 | 862 | (997 | ) | ||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 918 | 680 | (453 | ) | 827 | 206 | 319 | (661 | ) | ||||||||||||||||||||
Net income (loss) | $ | 2,463 | $ | 1,156 | $ | (768 | ) | $ | 1,406 | $ | 462 | $ | 543 | $ | (336 | ) | |||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 899,498 | $ | 136,872 | $ | 106,725 | $ | 267,812 | n/m | $ | 104,102 | $ | 257,341 | ||||||||||||||||
Total assets (1) | 2,194,563 | 531,747 | 152,777 | 341,044 | $ | 581,952 | 276,914 | 310,129 | |||||||||||||||||||||
Total deposits | 1,032,888 | 476,580 | n/m | 239,054 | n/m | 251,121 | 31,274 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 892,315 | $ | 135,523 | $ | 105,304 | $ | 265,393 | n/m | $ | 105,395 | $ | 253,505 | ||||||||||||||||
Total assets (1) | 2,160,854 | 537,647 | 147,638 | 340,559 | $ | 561,815 | 277,988 | 295,207 | |||||||||||||||||||||
Total deposits | 1,035,225 | 481,939 | n/m | 241,344 | n/m | 249,755 | 27,157 | ||||||||||||||||||||||
First Quarter 2012 | |||||||||||||||||||||||||||||
Total Corporation | Consumer & Business Banking | Consumer Real Estate Services | Global Banking | Global Markets | GWIM | All Other | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 11,053 | $ | 5,080 | $ | 775 | $ | 2,399 | $ | 798 | $ | 1,578 | $ | 423 | |||||||||||||||
Noninterest income (loss) | 11,432 | 2,342 | 1,899 | 2,051 | 3,395 | 2,782 | (1,037 | ) | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 22,485 | 7,422 | 2,674 | 4,450 | 4,193 | 4,360 | (614 | ) | |||||||||||||||||||||
Provision for credit losses | 2,418 | 877 | 507 | (238 | ) | (20 | ) | 46 | 1,246 | ||||||||||||||||||||
Noninterest expense | 19,141 | 4,247 | 3,905 | 2,177 | 3,076 | 3,450 | 2,286 | ||||||||||||||||||||||
Income (loss) before income taxes | 926 | 2,298 | (1,738 | ) | 2,511 | 1,137 | 864 | (4,146 | ) | ||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 273 | 843 | (593 | ) | 921 | 339 | 317 | (1,554 | ) | ||||||||||||||||||||
Net income (loss) | $ | 653 | $ | 1,455 | $ | (1,145 | ) | $ | 1,590 | $ | 798 | $ | 547 | $ | (2,592 | ) | |||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 913,722 | $ | 141,578 | $ | 110,755 | $ | 277,074 | n/m | $ | 103,036 | $ | 264,112 | ||||||||||||||||
Total assets (1) | 2,187,174 | 523,658 | 159,105 | 348,417 | $ | 558,594 | 284,926 | 312,474 | |||||||||||||||||||||
Total deposits | 1,030,112 | 466,240 | n/m | 237,531 | n/m | 252,705 | 39,774 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 902,294 | $ | 138,909 | $ | 109,264 | $ | 272,279 | n/m | $ | 102,903 | $ | 260,005 | ||||||||||||||||
Total assets (1) | 2,181,449 | 543,855 | 158,207 | 340,645 | $ | 548,558 | 278,185 | 311,999 | |||||||||||||||||||||
Total deposits | 1,041,311 | 486,162 | n/m | 237,602 | n/m | 252,755 | 30,150 | ||||||||||||||||||||||
Second Quarter 2011 | |||||||||||||||||||||||||||||
Total Corporation | Consumer & Business Banking | Consumer Real Estate Services | Global Banking | Global Markets | GWIM | All Other | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 11,493 | $ | 5,549 | $ | 579 | $ | 2,375 | $ | 874 | $ | 1,573 | $ | 543 | |||||||||||||||
Noninterest income (loss) | 1,990 | 3,132 | (11,894 | ) | 2,284 | 3,539 | 2,922 | 2,007 | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 13,483 | 8,681 | (11,315 | ) | 4,659 | 4,413 | 4,495 | 2,550 | |||||||||||||||||||||
Provision for credit losses | 3,255 | 400 | 1,507 | (557 | ) | (8 | ) | 72 | 1,841 | ||||||||||||||||||||
Noninterest expense | 22,856 | 4,377 | 8,625 | 2,221 | 3,263 | 3,624 | 746 | ||||||||||||||||||||||
Income (loss) before income taxes | (12,628 | ) | 3,904 | (21,447 | ) | 2,995 | 1,158 | 799 | (37 | ) | |||||||||||||||||||
Income tax expense (benefit) (FTE basis) | (3,802 | ) | 1,402 | (6,941 | ) | 1,074 | 247 | 286 | 130 | ||||||||||||||||||||
Net income (loss) | $ | (8,826 | ) | $ | 2,502 | $ | (14,506 | ) | $ | 1,921 | $ | 911 | $ | 513 | $ | (167 | ) | ||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 938,513 | $ | 155,122 | $ | 121,683 | $ | 260,144 | n/m | $ | 102,201 | $ | 287,840 | ||||||||||||||||
Total assets (1) | 2,339,110 | 523,258 | 198,030 | 331,084 | $ | 622,915 | 289,262 | 374,561 | |||||||||||||||||||||
Total deposits | 1,035,944 | 467,179 | n/m | 235,662 | n/m | 255,432 | 48,109 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 941,257 | $ | 153,391 | $ | 121,553 | $ | 263,065 | n/m | $ | 102,878 | $ | 287,424 | ||||||||||||||||
Total assets (1) | 2,261,319 | 521,823 | 185,398 | 340,535 | $ | 561,361 | 284,504 | 367,698 | |||||||||||||||||||||
Total deposits | 1,038,408 | 465,457 | n/m | 244,025 | n/m | 255,796 | 43,768 | ||||||||||||||||||||||
(1) | Total assets include asset allocations to match liabilities (i.e., deposits). |
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 15 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Year-to-Date Results by Business Segment | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2012 | |||||||||||||||||||||||||||||
Total Corporation | Consumer & Business Banking | Consumer Real Estate Services | Global Banking | Global Markets | GWIM | All Other | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 20,835 | $ | 9,784 | $ | 1,489 | $ | 4,583 | $ | 1,448 | $ | 3,024 | $ | 507 | |||||||||||||||
Noninterest income (loss) | 23,852 | 4,964 | 3,706 | 4,152 | 6,110 | 5,653 | (733 | ) | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 44,687 | 14,748 | 5,195 | 8,735 | 7,558 | 8,677 | (226 | ) | |||||||||||||||||||||
Provision for credit losses | 4,191 | 2,008 | 693 | (351 | ) | (34 | ) | 93 | 1,782 | ||||||||||||||||||||
Noninterest expense | 36,189 | 8,606 | 7,461 | 4,342 | 5,787 | 6,858 | 3,135 | ||||||||||||||||||||||
Income (loss) before income taxes | 4,307 | 4,134 | (2,959 | ) | 4,744 | 1,805 | 1,726 | (5,143 | ) | ||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 1,191 | 1,523 | (1,046 | ) | 1,748 | 545 | 636 | (2,215 | ) | ||||||||||||||||||||
Net income (loss) | $ | 3,116 | $ | 2,611 | $ | (1,913 | ) | $ | 2,996 | $ | 1,260 | $ | 1,090 | $ | (2,928 | ) | |||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 906,610 | $ | 139,225 | $ | 108,740 | $ | 272,443 | n/m | $ | 103,569 | $ | 260,727 | ||||||||||||||||
Total assets (1) | 2,190,868 | 527,702 | 155,941 | 344,730 | $ | 570,273 | 280,920 | 311,302 | |||||||||||||||||||||
Total deposits | 1,031,500 | 471,410 | n/m | 238,292 | n/m | 251,913 | 35,524 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 892,315 | $ | 135,523 | $ | 105,304 | $ | 265,393 | n/m | $ | 105,395 | $ | 253,505 | ||||||||||||||||
Total assets (1) | 2,160,854 | 537,647 | 147,638 | 340,559 | $ | 561,815 | 277,988 | 295,207 | |||||||||||||||||||||
Total deposits | 1,035,225 | 481,939 | n/m | 241,344 | n/m | 249,755 | 27,157 | ||||||||||||||||||||||
Six Months Ended June 30, 2011 | |||||||||||||||||||||||||||||
Total Corporation | Consumer & Business Banking | Consumer Real Estate Services | Global Banking | Global Markets | GWIM | All Other | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 23,890 | $ | 11,150 | $ | 1,475 | $ | 4,858 | $ | 1,894 | $ | 3,143 | $ | 1,370 | |||||||||||||||
Noninterest income (loss) | 16,688 | 5,997 | (10,727 | ) | 4,502 | 7,791 | 5,848 | 3,277 | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 40,578 | 17,147 | (9,252 | ) | 9,360 | 9,685 | 8,991 | 4,647 | |||||||||||||||||||||
Provision for credit losses | 7,069 | 1,061 | 2,605 | (681 | ) | (41 | ) | 118 | 4,007 | ||||||||||||||||||||
Noninterest expense | 43,139 | 8,938 | 13,402 | 4,531 | 6,376 | 7,213 | 2,679 | ||||||||||||||||||||||
Income (loss) before income taxes | (9,630 | ) | 7,148 | (25,259 | ) | 5,510 | 3,350 | 1,660 | (2,039 | ) | |||||||||||||||||||
Income tax expense (benefit) (FTE basis) | (2,853 | ) | 2,604 | (8,353 | ) | 2,006 | 1,044 | 605 | (759 | ) | |||||||||||||||||||
Net income (loss) | $ | (6,777 | ) | $ | 4,544 | $ | (16,906 | ) | $ | 3,504 | $ | 2,306 | $ | 1,055 | $ | (1,280 | ) | ||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 938,738 | $ | 158,033 | $ | 121,125 | $ | 258,508 | n/m | $ | 101,530 | $ | 288,068 | ||||||||||||||||
Total assets (1) | 2,338,826 | 518,737 | 203,648 | 326,632 | $ | 602,447 | 293,369 | 393,993 | |||||||||||||||||||||
Total deposits | 1,029,578 | 462,136 | n/m | 230,744 | n/m | 257,066 | 49,110 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 941,257 | $ | 153,391 | $ | 121,553 | $ | 263,065 | n/m | $ | 102,878 | $ | 287,424 | ||||||||||||||||
Total assets (1) | 2,261,319 | 521,823 | 185,398 | 340,535 | $ | 561,361 | 284,504 | 367,698 | |||||||||||||||||||||
Total deposits | 1,038,408 | 465,457 | n/m | 244,025 | n/m | 255,796 | 43,768 | ||||||||||||||||||||||
(1) | Total assets include asset allocations to match liabilities (i.e., deposits). |
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 16 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Consumer & Business Banking Segment Results | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 9,784 | $ | 11,150 | $ | 4,704 | $ | 5,080 | $ | 5,080 | $ | 5,149 | $ | 5,549 | |||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||
Card income | 2,609 | 3,263 | 1,331 | 1,278 | 1,303 | 1,720 | 1,686 | ||||||||||||||||||||||
Service charges | 2,147 | 2,175 | 1,083 | 1,064 | 1,145 | 1,204 | 1,096 | ||||||||||||||||||||||
All other income | 208 | 559 | 208 | — | 78 | 54 | 350 | ||||||||||||||||||||||
Total noninterest income | 4,964 | 5,997 | 2,622 | 2,342 | 2,526 | 2,978 | 3,132 | ||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 14,748 | 17,147 | 7,326 | 7,422 | 7,606 | 8,127 | 8,681 | ||||||||||||||||||||||
Provision for credit losses | 2,008 | 1,061 | 1,131 | 877 | 1,297 | 1,132 | 400 | ||||||||||||||||||||||
Noninterest expense | 8,606 | 8,938 | 4,359 | 4,247 | 4,426 | 4,343 | 4,377 | ||||||||||||||||||||||
Income before income taxes | 4,134 | 7,148 | 1,836 | 2,298 | 1,883 | 2,652 | 3,904 | ||||||||||||||||||||||
Income tax expense (FTE basis) | 1,523 | 2,604 | 680 | 843 | 639 | 986 | 1,402 | ||||||||||||||||||||||
Net income | $ | 2,611 | $ | 4,544 | $ | 1,156 | $ | 1,455 | $ | 1,244 | $ | 1,666 | $ | 2,502 | |||||||||||||||
Net interest yield (FTE basis) | 4.03 | % | 4.66 | % | 3.85 | % | 4.22 | % | 4.23 | % | 4.25 | % | 4.57 | % | |||||||||||||||
Return on average allocated equity | 9.87 | 17.25 | 8.70 | 11.05 | 9.31 | 12.62 | 19.10 | ||||||||||||||||||||||
Return on average economic capital (1) | 23.20 | 40.90 | 20.31 | 26.16 | 22.11 | 30.46 | 45.87 | ||||||||||||||||||||||
Efficiency ratio (FTE basis) | 58.35 | 52.12 | 59.49 | 57.23 | 58.20 | 53.44 | 50.41 | ||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 139,225 | $ | 158,033 | $ | 136,872 | $ | 141,578 | $ | 147,150 | $ | 151,492 | $ | 155,122 | |||||||||||||||
Total earning assets (2) | 488,325 | 482,863 | 492,085 | 484,565 | 476,399 | 480,312 | 486,679 | ||||||||||||||||||||||
Total assets (2) | 527,702 | 518,737 | 531,747 | 523,658 | 515,339 | 519,512 | 523,258 | ||||||||||||||||||||||
Total deposits | 471,410 | 462,136 | 476,580 | 466,240 | 459,819 | 464,256 | 467,179 | ||||||||||||||||||||||
Allocated equity | 53,199 | 53,126 | 53,452 | 52,947 | 53,004 | 52,381 | 52,559 | ||||||||||||||||||||||
Economic capital (1) | 22,696 | 22,450 | 22,967 | 22,425 | 22,417 | 21,781 | 21,903 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 135,523 | $ | 153,391 | $ | 135,523 | $ | 138,909 | $ | 146,378 | $ | 149,739 | $ | 153,391 | |||||||||||||||
Total earning assets (2) | 497,920 | 483,245 | 497,920 | 502,788 | 480,972 | 481,158 | 483,245 | ||||||||||||||||||||||
Total assets (2) | 537,647 | 521,823 | 537,647 | 543,855 | 521,097 | 520,125 | 521,823 | ||||||||||||||||||||||
Total deposits | 481,939 | 465,457 | 481,939 | 486,162 | 464,264 | 465,774 | 465,457 | ||||||||||||||||||||||
(1) | 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. 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 Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) |
(2) | Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits). |
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 17 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||
Consumer & Business Banking Year-to-Date Results | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Six Months Ended June 30, 2012 | |||||||||||||||||
Total Consumer & Business Banking | Deposits | Card Services | Business Banking | ||||||||||||||
Net interest income (FTE basis) | $ | 9,784 | $ | 4,034 | $ | 5,097 | $ | 653 | |||||||||
Noninterest income: | |||||||||||||||||
Card income | 2,609 | — | 2,609 | — | |||||||||||||
Service charges | 2,147 | 1,960 | — | 187 | |||||||||||||
All other income | 208 | 131 | 20 | 57 | |||||||||||||
Total noninterest income | 4,964 | 2,091 | 2,629 | 244 | |||||||||||||
Total revenue, net of interest expense (FTE basis) | 14,748 | 6,125 | 7,726 | 897 | |||||||||||||
Provision for credit losses | 2,008 | 91 | 1,730 | 187 | |||||||||||||
Noninterest expense | 8,606 | 5,242 | 2,882 | 482 | |||||||||||||
Income before income taxes | 4,134 | 792 | 3,114 | 228 | |||||||||||||
Income tax expense (FTE basis) | 1,523 | 292 | 1,147 | 84 | |||||||||||||
Net income | $ | 2,611 | $ | 500 | $ | 1,967 | $ | 144 | |||||||||
Net interest yield (FTE basis) | 4.03 | % | 1.90 | % | 8.88 | % | 2.86 | % | |||||||||
Return on average allocated equity | 9.87 | 4.27 | 19.20 | 3.21 | |||||||||||||
Return on average economic capital (1) | 23.20 | 17.81 | 39.21 | 4.18 | |||||||||||||
Efficiency ratio (FTE basis) | 58.35 | 85.58 | 37.30 | 53.71 | |||||||||||||
Balance Sheet | |||||||||||||||||
Average | |||||||||||||||||
Total loans and leases | $ | 139,225 | n/m | $ | 114,197 | $ | 24,314 | ||||||||||
Total earning assets (2) | 488,325 | $ | 427,604 | 115,391 | 45,977 | ||||||||||||
Total assets (2) | 527,702 | 453,858 | 121,247 | 53,243 | |||||||||||||
Total deposits | 471,410 | 428,902 | n/m | 42,192 | |||||||||||||
Allocated equity | 53,199 | 23,588 | 20,598 | 9,013 | |||||||||||||
Economic capital (1) | 22,696 | 5,659 | 10,122 | 6,915 | |||||||||||||
Period end | |||||||||||||||||
Total loans and leases | $ | 135,523 | n/m | $ | 111,071 | $ | 23,700 | ||||||||||
Total earning assets (2) | 497,920 | $ | 440,559 | 111,602 | 43,502 | ||||||||||||
Total assets (2) | 537,647 | 466,362 | 118,288 | 50,739 | |||||||||||||
Total deposits | 481,939 | 439,470 | n/m | 41,563 | |||||||||||||
Six Months Ended June 30, 2011 | |||||||||||||||||
Total Consumer & Business Banking | Deposits | Card Services | Business Banking | ||||||||||||||
Net interest income (FTE basis) | $ | 11,150 | $ | 4,486 | $ | 5,917 | $ | 747 | |||||||||
Noninterest income: | |||||||||||||||||
Card income | 3,263 | — | 3,263 | — | |||||||||||||
Service charges | 2,175 | 1,891 | — | 284 | |||||||||||||
All other income | 559 | 116 | 384 | 59 | |||||||||||||
Total noninterest income | 5,997 | 2,007 | 3,647 | 343 | |||||||||||||
Total revenue, net of interest expense (FTE basis) | 17,147 | 6,493 | 9,564 | 1,090 | |||||||||||||
Provision for credit losses | 1,061 | 64 | 897 | 100 | |||||||||||||
Noninterest expense | 8,938 | 5,179 | 3,140 | 619 | |||||||||||||
Income before income taxes | 7,148 | 1,250 | 5,527 | 371 | |||||||||||||
Income tax expense (FTE basis) | 2,604 | 455 | 2,011 | 138 | |||||||||||||
Net income | $ | 4,544 | $ | 795 | $ | 3,516 | $ | 233 | |||||||||
Net interest yield (FTE basis) | 4.66 | % | 2.14 | % | 9.11 | % | 3.63 | % | |||||||||
Return on average allocated equity | 17.25 | 6.78 | 32.85 | 5.96 | |||||||||||||
Return on average economic capital (1) | 40.90 | 28.29 | 64.86 | 8.11 | |||||||||||||
Efficiency ratio (FTE basis) | 52.12 | 79.76 | 32.83 | 56.73 | |||||||||||||
Balance Sheet | |||||||||||||||||
Average | |||||||||||||||||
Total loans and leases | $ | 158,033 | n/m | $ | 129,894 | $ | 27,507 | ||||||||||
Total earning assets (2) | 482,863 | $ | 421,863 | 131,007 | 41,526 | ||||||||||||
Total assets (2) | 518,737 | 448,081 | 132,189 | 50,000 | |||||||||||||
Total deposits | 462,136 | 422,514 | n/m | 39,331 | |||||||||||||
Allocated equity | 53,126 | 23,627 | 21,580 | 7,919 | |||||||||||||
Economic capital (1) | 22,450 | 5,672 | 10,956 | 5,822 | |||||||||||||
Period end | |||||||||||||||||
Total loans and leases | $ | 153,391 | n/m | $ | 125,139 | $ | 27,589 | ||||||||||
Total earning assets (2) | 483,245 | $ | 423,162 | 126,322 | 44,034 | ||||||||||||
Total assets (2) | 521,823 | 449,641 | 130,704 | 51,751 | |||||||||||||
Total deposits | 465,457 | 424,579 | n/m | 40,572 | |||||||||||||
For footnotes see page 20.
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 18 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||
Consumer & Business Banking Quarterly Results | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Second Quarter 2012 | |||||||||||||||||
Total Consumer & Business Banking | Deposits | Card Services | Business Banking | ||||||||||||||
Net interest income (FTE basis) | $ | 4,704 | $ | 1,914 | $ | 2,481 | $ | 309 | |||||||||
Noninterest income: | |||||||||||||||||
Card income | 1,331 | — | 1,331 | — | |||||||||||||
Service charges | 1,083 | 991 | — | 92 | |||||||||||||
All other income | 208 | 71 | 105 | 32 | |||||||||||||
Total noninterest income | 2,622 | 1,062 | 1,436 | 124 | |||||||||||||
Total revenue, net of interest expense (FTE basis) | 7,326 | 2,976 | 3,917 | 433 | |||||||||||||
Provision for credit losses | 1,131 | 40 | 940 | 151 | |||||||||||||
Noninterest expense | 4,359 | 2,634 | 1,502 | 223 | |||||||||||||
Income before income taxes | 1,836 | 302 | 1,475 | 59 | |||||||||||||
Income tax expense (FTE basis) | 680 | 112 | 546 | 22 | |||||||||||||
Net income | $ | 1,156 | $ | 190 | $ | 929 | $ | 37 | |||||||||
Net interest yield (FTE basis) | 3.85 | % | 1.78 | % | 8.81 | % | 2.78 | % | |||||||||
Return on average allocated equity | 8.70 | 3.19 | 18.21 | 1.67 | |||||||||||||
Return on average economic capital (1) | 20.31 | 12.66 | 37.25 | 2.18 | |||||||||||||
Efficiency ratio (FTE basis) | 59.49 | 88.50 | 38.36 | 51.21 | |||||||||||||
Balance Sheet | |||||||||||||||||
Average | |||||||||||||||||
Total loans and leases | $ | 136,872 | n/m | $ | 112,127 | $ | 24,025 | ||||||||||
Total earning assets (2) | 492,085 | $ | 433,075 | 113,202 | 44,808 | ||||||||||||
Total assets (2) | 531,747 | 459,217 | 119,316 | 52,213 | |||||||||||||
Total deposits | 476,580 | 433,781 | n/m | 42,475 | |||||||||||||
Allocated equity | 53,452 | 23,982 | 20,525 | 8,945 | |||||||||||||
Economic capital (1) | 22,967 | 6,056 | 10,065 | 6,846 | |||||||||||||
Period end | |||||||||||||||||
Total loans and leases | $ | 135,523 | n/m | $ | 111,071 | $ | 23,700 | ||||||||||
Total earning assets (2) | 497,920 | $ | 440,559 | 111,602 | 43,502 | ||||||||||||
Total assets (2) | 537,647 | 466,362 | 118,288 | 50,739 | |||||||||||||
Total deposits | 481,939 | 439,470 | n/m | 41,563 | |||||||||||||
First Quarter 2012 | |||||||||||||||||
Total Consumer & Business Banking | Deposits | Card Services | Business Banking | ||||||||||||||
Net interest income (FTE basis) | $ | 5,080 | $ | 2,120 | $ | 2,616 | $ | 344 | |||||||||
Noninterest income: | |||||||||||||||||
Card income | 1,278 | — | 1,278 | — | |||||||||||||
Service charges | 1,064 | 969 | — | 95 | |||||||||||||
All other income (loss) | — | 60 | (85 | ) | 25 | ||||||||||||
Total noninterest income | 2,342 | 1,029 | 1,193 | 120 | |||||||||||||
Total revenue, net of interest expense (FTE basis) | 7,422 | 3,149 | 3,809 | 464 | |||||||||||||
Provision for credit losses | 877 | 51 | 790 | 36 | |||||||||||||
Noninterest expense | 4,247 | 2,608 | 1,380 | 259 | |||||||||||||
Income before income taxes | 2,298 | 490 | 1,639 | 169 | |||||||||||||
Income tax expense (FTE basis) | 843 | 180 | 601 | 62 | |||||||||||||
Net income | $ | 1,455 | $ | 310 | $ | 1,038 | $ | 107 | |||||||||
Net interest yield (FTE basis) | 4.22 | % | 2.02 | % | 8.95 | % | 2.93 | % | |||||||||
Return on average allocated equity | 11.05 | 5.38 | 20.19 | 4.73 | |||||||||||||
Return on average economic capital (1) | 26.16 | 23.74 | 41.14 | 6.14 | |||||||||||||
Efficiency ratio (FTE basis) | 57.23 | 82.82 | 36.22 | 56.04 | |||||||||||||
Balance Sheet | |||||||||||||||||
Average | |||||||||||||||||
Total loans and leases | $ | 141,578 | n/m | $ | 116,267 | $ | 24,603 | ||||||||||
Total earning assets (2) | 484,565 | $ | 422,132 | 117,580 | 47,146 | ||||||||||||
Total assets (2) | 523,658 | 448,500 | 123,179 | 54,274 | |||||||||||||
Total deposits | 466,240 | 424,023 | n/m | 41,909 | |||||||||||||
Allocated equity | 52,947 | 23,194 | 20,671 | 9,082 | |||||||||||||
Economic capital (1) | 22,425 | 5,262 | 10,179 | 6,984 | |||||||||||||
Period end | |||||||||||||||||
Total loans and leases | $ | 138,909 | n/m | $ | 113,861 | $ | 24,376 | ||||||||||
Total earning assets (2) | 502,788 | $ | 441,152 | 115,177 | 47,328 | ||||||||||||
Total assets (2) | 543,855 | 467,721 | 121,425 | 55,578 | |||||||||||||
Total deposits | 486,162 | 443,129 | n/m | 42,224 | |||||||||||||
For footnotes see page 20.
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 19 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||
Consumer & Business Banking Quarterly Results (continued) | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Second Quarter 2011 | |||||||||||||||||
Total Consumer & Business Banking | Deposits | Card Services | Business Banking | ||||||||||||||
Net interest income (FTE basis) | $ | 5,549 | $ | 2,281 | $ | 2,903 | $ | 365 | |||||||||
Noninterest income: | |||||||||||||||||
Card income | 1,686 | — | 1,686 | — | |||||||||||||
Service charges | 1,096 | 967 | — | 129 | |||||||||||||
All other income | 350 | 55 | 260 | 35 | |||||||||||||
Total noninterest income | 3,132 | 1,022 | 1,946 | 164 | |||||||||||||
Total revenue, net of interest expense (FTE basis) | 8,681 | 3,303 | 4,849 | 529 | |||||||||||||
Provision for credit losses | 400 | 31 | 302 | 67 | |||||||||||||
Noninterest expense | 4,377 | 2,597 | 1,517 | 263 | |||||||||||||
Income before income taxes | 3,904 | 675 | 3,030 | 199 | |||||||||||||
Income tax expense (FTE basis) | 1,402 | 242 | 1,086 | 74 | |||||||||||||
Net income | $ | 2,502 | $ | 433 | $ | 1,944 | $ | 125 | |||||||||
Net interest yield (FTE basis) | 4.57 | % | 2.15 | % | 9.06 | % | 3.45 | % | |||||||||
Return on average allocated equity | 19.10 | 7.35 | 37.11 | 6.34 | |||||||||||||
Return on average economic capital (1) | 45.87 | 30.62 | 75.04 | 8.62 | |||||||||||||
Efficiency ratio (FTE basis) | 50.41 | 78.62 | 31.27 | 49.73 | |||||||||||||
Balance Sheet | |||||||||||||||||
Average | |||||||||||||||||
Total loans and leases | $ | 155,122 | n/m | $ | 127,343 | $ | 27,153 | ||||||||||
Total earning assets (2) | 486,679 | $ | 425,926 | 128,505 | 42,352 | ||||||||||||
Total assets (2) | 523,258 | 452,119 | 130,356 | 50,886 | |||||||||||||
Total deposits | 467,179 | 426,684 | n/m | 40,190 | |||||||||||||
Allocated equity | 52,559 | 23,612 | 21,016 | 7,931 | |||||||||||||
Economic capital (1) | 21,903 | 5,661 | 10,409 | 5,833 | |||||||||||||
Period end | |||||||||||||||||
Total loans and leases | $ | 153,391 | n/m | $ | 125,139 | $ | 27,589 | ||||||||||
Total earning assets (2) | 483,245 | $ | 423,162 | 126,322 | 44,034 | ||||||||||||
Total assets (2) | 521,823 | 449,641 | 130,704 | 51,751 | |||||||||||||
Total deposits | 465,457 | 424,579 | n/m | 40,572 | |||||||||||||
(1) | 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. 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 Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) |
(2) | For presentation purposes, in segments or businesses where the total of liabilities and equity exceeds assets, we allocate assets to match liabilities. As a result, the total earning assets and total assets of the businesses may not equal total Consumer & Business Banking results. |
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 20 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Consumer & Business Banking Key Indicators | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||
Average deposit balances | |||||||||||||||||||||||||||||
Checking | $ | 207,713 | $ | 192,042 | $ | 211,014 | $ | 204,412 | $ | 198,274 | $ | 196,807 | $ | 195,968 | |||||||||||||||
Savings | 39,203 | 38,140 | 40,119 | 38,286 | 37,409 | 38,822 | 39,391 | ||||||||||||||||||||||
MMS | 140,528 | 135,781 | 142,543 | 138,512 | 136,257 | 137,508 | 137,094 | ||||||||||||||||||||||
CDs and IRAs | 79,743 | 92,268 | 78,642 | 80,844 | 83,719 | 87,105 | 90,729 | ||||||||||||||||||||||
Non-U.S. and other | 4,223 | 3,905 | 4,262 | 4,186 | 4,160 | 4,014 | 3,997 | ||||||||||||||||||||||
Total average deposit balances | $ | 471,410 | $ | 462,136 | $ | 476,580 | $ | 466,240 | $ | 459,819 | $ | 464,256 | $ | 467,179 | |||||||||||||||
Deposit spreads (excludes noninterest costs) | |||||||||||||||||||||||||||||
Checking | 2.72 | % | 3.31 | % | 2.64 | % | 2.81 | % | 2.95 | % | 3.09 | % | 3.25 | % | |||||||||||||||
Savings | 2.87 | 3.37 | 2.78 | 2.97 | 3.11 | 3.25 | 3.32 | ||||||||||||||||||||||
MMS | 1.26 | 1.45 | 1.22 | 1.30 | 1.35 | 1.37 | 1.41 | ||||||||||||||||||||||
CDs and IRAs | 0.58 | 0.35 | 0.62 | 0.55 | 0.46 | 0.39 | 0.36 | ||||||||||||||||||||||
Non-U.S. and other | 1.03 | 3.90 | 1.06 | 1.00 | 3.44 | 3.63 | 3.82 | ||||||||||||||||||||||
Total deposit spreads | 1.92 | 2.17 | 1.87 | 1.96 | 2.03 | 2.09 | 2.15 | ||||||||||||||||||||||
Client brokerage assets | $ | 72,226 | $ | 69,000 | $ | 72,226 | $ | 73,422 | $ | 66,576 | $ | 61,918 | $ | 69,000 | |||||||||||||||
Online banking active accounts (units in thousands) | 30,232 | 29,660 | 30,232 | 30,439 | 29,870 | 29,917 | 29,660 | ||||||||||||||||||||||
Mobile banking active accounts (units in thousands) | 10,290 | 7,652 | 10,290 | 9,702 | 9,166 | 8,531 | 7,652 | ||||||||||||||||||||||
Banking centers | 5,594 | 5,742 | 5,594 | 5,651 | 5,702 | 5,715 | 5,742 | ||||||||||||||||||||||
ATMs | 16,220 | 17,817 | 16,220 | 17,255 | 17,756 | 17,752 | 17,817 | ||||||||||||||||||||||
U.S. credit card | |||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Average credit card outstandings | $ | 96,676 | $ | 108,042 | $ | 95,018 | $ | 98,334 | $ | 102,241 | $ | 103,671 | $ | 106,164 | |||||||||||||||
Ending credit card outstandings | 94,291 | 104,659 | 94,291 | 96,433 | 102,291 | 102,803 | 104,659 | ||||||||||||||||||||||
Credit quality | |||||||||||||||||||||||||||||
Net charge-offs | $ | 2,575 | $ | 4,205 | $ | 1,244 | $ | 1,331 | $ | 1,432 | $ | 1,639 | $ | 1,931 | |||||||||||||||
5.36 | % | 7.85 | % | 5.27 | % | 5.44 | % | 5.55 | % | 6.28 | % | 7.29 | % | ||||||||||||||||
30+ delinquency | $ | 2,948 | $ | 4,263 | $ | 2,948 | $ | 3,384 | $ | 3,823 | $ | 4,019 | $ | 4,263 | |||||||||||||||
3.13 | % | 4.07 | % | 3.13 | % | 3.51 | % | 3.74 | % | 3.91 | % | 4.07 | % | ||||||||||||||||
90+ delinquency | $ | 1,594 | $ | 2,413 | $ | 1,594 | $ | 1,866 | $ | 2,070 | $ | 2,128 | $ | 2,413 | |||||||||||||||
1.69 | % | 2.31 | % | 1.69 | % | 1.93 | % | 2.02 | % | 2.07 | % | 2.31 | % | ||||||||||||||||
Other U.S. credit card indicators | |||||||||||||||||||||||||||||
Gross interest yield | 10.02 | % | 10.37 | % | 9.97 | % | 10.06 | % | 10.10 | % | 10.14 | % | 10.27 | % | |||||||||||||||
Risk adjusted margin | 7.02 | 5.23 | 7.51 | 6.55 | 6.77 | 6.08 | 6.23 | ||||||||||||||||||||||
New account growth (in thousands) | 1,564 | 1,387 | 782 | 782 | 797 | 851 | 730 | ||||||||||||||||||||||
Purchase volumes | $ | 93,683 | $ | 92,910 | $ | 48,886 | $ | 44,797 | $ | 50,901 | $ | 48,547 | $ | 48,974 | |||||||||||||||
Debit card data | |||||||||||||||||||||||||||||
Purchase volumes | $ | 127,808 | $ | 124,045 | $ | 64,867 | $ | 62,941 | $ | 63,726 | $ | 62,774 | $ | 64,049 | |||||||||||||||
Business Banking | |||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Average outstandings | $ | 24,314 | $ | 27,507 | $ | 24,025 | $ | 24,603 | $ | 25,306 | $ | 27,258 | $ | 27,153 | |||||||||||||||
Credit spread | 2.01 | % | 2.64 | % | 2.01 | % | 2.01 | % | 1.77 | % | 2.37 | % | 2.44 | % | |||||||||||||||
Credit quality | |||||||||||||||||||||||||||||
Net charge-offs | $ | 228 | $ | 244 | $ | 131 | $ | 97 | $ | 118 | $ | 100 | $ | 127 | |||||||||||||||
1.89 | % | 1.79 | % | 2.21 | % | 1.58 | % | 1.85 | % | 1.46 | % | 1.88 | % | ||||||||||||||||
Nonperforming assets | $ | 1,146 | $ | 1,716 | $ | 1,146 | $ | 1,228 | $ | 1,300 | $ | 1,548 | $ | 1,716 | |||||||||||||||
4.84 | % | 6.22 | % | 4.84 | % | 5.04 | % | 5.20 | % | 5.77 | % | 6.22 | % | ||||||||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 21 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Consumer Real Estate Services Segment Results | |||||||||||||||||||||||||||||
(Dollars in millions; except as noted) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 1,489 | $ | 1,475 | $ | 714 | $ | 775 | $ | 809 | $ | 923 | $ | 579 | |||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||
Mortgage banking income (loss) | 3,642 | (12,323 | ) | 1,811 | 1,831 | 2,329 | 1,800 | (13,018 | ) | ||||||||||||||||||||
Insurance income (loss) | 7 | 730 | 1 | 6 | (3 | ) | 23 | 299 | |||||||||||||||||||||
All other income (loss) | 57 | 866 | (5 | ) | 62 | 140 | 76 | 825 | |||||||||||||||||||||
Total noninterest income (loss) | 3,706 | (10,727 | ) | 1,807 | 1,899 | 2,466 | 1,899 | (11,894 | ) | ||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 5,195 | (9,252 | ) | 2,521 | 2,674 | 3,275 | 2,822 | (11,315 | ) | ||||||||||||||||||||
Provision for credit losses | 693 | 2,605 | 186 | 507 | 1,001 | 918 | 1,507 | ||||||||||||||||||||||
Goodwill impairment | — | 2,603 | — | — | — | — | 2,603 | ||||||||||||||||||||||
All other noninterest expense | 7,461 | 10,799 | 3,556 | 3,905 | 4,572 | 3,830 | 6,022 | ||||||||||||||||||||||
Loss before income taxes | (2,959 | ) | (25,259 | ) | (1,221 | ) | (1,738 | ) | (2,298 | ) | (1,926 | ) | (21,447 | ) | |||||||||||||||
Income tax benefit (FTE basis) | (1,046 | ) | (8,353 | ) | (453 | ) | (593 | ) | (854 | ) | (802 | ) | (6,941 | ) | |||||||||||||||
Net loss | $ | (1,913 | ) | $ | (16,906 | ) | $ | (768 | ) | $ | (1,145 | ) | $ | (1,444 | ) | $ | (1,124 | ) | $ | (14,506 | ) | ||||||||
Net interest yield (FTE basis) | 2.33 | % | 1.80 | % | 2.27 | % | 2.39 | % | 2.30 | % | 2.45 | % | 1.46 | % | |||||||||||||||
Balance Sheet | |||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 108,740 | $ | 121,125 | $ | 106,725 | $ | 110,755 | $ | 116,993 | $ | 120,079 | $ | 121,683 | |||||||||||||||
Total earning assets | 128,512 | 165,469 | 126,823 | 130,201 | 139,789 | 149,177 | 158,674 | ||||||||||||||||||||||
Total assets | 155,941 | 203,648 | 152,777 | 159,105 | 171,763 | 182,843 | 198,030 | ||||||||||||||||||||||
Allocated equity | 14,454 | 17,933 | 14,116 | 14,791 | 14,757 | 14,240 | 17,139 | ||||||||||||||||||||||
Economic capital (1) | 14,454 | 15,211 | 14,116 | 14,791 | 14,757 | 14,240 | 14,437 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 105,304 | $ | 121,553 | $ | 105,304 | $ | 109,264 | $ | 112,359 | $ | 119,823 | $ | 121,553 | |||||||||||||||
Total earning assets | 124,854 | 149,908 | 124,854 | 130,420 | 132,381 | 144,831 | 149,908 | ||||||||||||||||||||||
Total assets | 147,638 | 185,398 | 147,638 | 158,207 | 163,712 | 188,769 | 185,398 | ||||||||||||||||||||||
Period end (in billions) | |||||||||||||||||||||||||||||
Mortgage servicing portfolio (2) | $ | 1,586.4 | $ | 1,991.3 | $ | 1,586.4 | $ | 1,686.7 | $ | 1,763.0 | $ | 1,917.4 | $ | 1,991.3 | |||||||||||||||
(1) | Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding MSRs). Economic capital is a non-GAAP financial measure. We believe the use of this non-GAAP financial measure provides additional clarity in assessing the results of the segment. Other companies may define or calculate this measure differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) |
(2) | Includes servicing of residential mortgage loans, home equity lines of credit, home equity loans and discontinued real estate mortgage loans. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 22 |
Bank of America Corporation and Subsidiaries | |||||||||||||
Consumer Real Estate Services Year-to-Date Results (1) | |||||||||||||
(Dollars in millions) | |||||||||||||
Six Months Ended June 30, 2012 | |||||||||||||
Total Consumer Real Estate Services | Home Loans | Legacy Assets & Servicing | |||||||||||
Net interest income (FTE basis) | $ | 1,489 | $ | 677 | $ | 812 | |||||||
Noninterest income: | |||||||||||||
Mortgage banking income | 3,642 | 1,541 | 2,101 | ||||||||||
Insurance income | 7 | 7 | — | ||||||||||
All other income (loss) | 57 | (11 | ) | 68 | |||||||||
Total noninterest income | 3,706 | 1,537 | 2,169 | ||||||||||
Total revenue, net of interest expense (FTE basis) | 5,195 | 2,214 | 2,981 | ||||||||||
Provision for credit losses | 693 | 19 | 674 | ||||||||||
Noninterest expense | 7,461 | 1,612 | 5,849 | ||||||||||
Income (loss) before income taxes | (2,959 | ) | 583 | (3,542 | ) | ||||||||
Income tax expense (benefit) (FTE basis) | (1,046 | ) | 215 | (1,261 | ) | ||||||||
Net income (loss) | $ | (1,913 | ) | $ | 368 | $ | (2,281 | ) | |||||
Balance Sheet | |||||||||||||
Average | |||||||||||||
Total loans and leases | $ | 108,740 | $ | 51,122 | $ | 57,618 | |||||||
Total earning assets | 128,512 | 57,672 | 70,840 | ||||||||||
Total assets | 155,941 | 58,623 | 97,318 | ||||||||||
Allocated equity | 14,454 | n/a | n/a | ||||||||||
Economic capital (2) | 14,454 | n/a | n/a | ||||||||||
�� | |||||||||||||
Period end | |||||||||||||
Total loans and leases | $ | 105,304 | $ | 50,112 | $ | 55,192 | |||||||
Total earning assets | 124,854 | 57,716 | 67,138 | ||||||||||
Total assets | 147,638 | 58,986 | 88,652 | ||||||||||
Six Months Ended June 30, 2011 | |||||||||||||
Total Consumer Real Estate Services | Home Loans | Legacy Assets & Servicing | |||||||||||
Net interest income (FTE basis) | $ | 1,475 | $ | 998 | $ | 477 | |||||||
Noninterest income: | |||||||||||||
Mortgage banking income (loss) | (12,323 | ) | 1,217 | (13,540 | ) | ||||||||
Insurance income | 730 | 730 | — | ||||||||||
All other income | 866 | 829 | 37 | ||||||||||
Total noninterest income (loss) | (10,727 | ) | 2,776 | (13,503 | ) | ||||||||
Total revenue, net of interest expense (FTE basis) | (9,252 | ) | 3,774 | (13,026 | ) | ||||||||
Provision for credit losses | 2,605 | 121 | 2,484 | ||||||||||
Goodwill impairment | 2,603 | — | 2,603 | ||||||||||
Noninterest expense | 10,799 | 2,733 | 8,066 | ||||||||||
Income (loss) before income taxes | (25,259 | ) | 920 | (26,179 | ) | ||||||||
Income tax expense (benefit) (FTE basis) | (8,353 | ) | 339 | (8,692 | ) | ||||||||
Net income (loss) | $ | (16,906 | ) | $ | 581 | $ | (17,487 | ) | |||||
Balance Sheet | |||||||||||||
Average | |||||||||||||
Total loans and leases | $ | 121,125 | $ | 54,749 | $ | 66,376 | |||||||
Total earning assets | 165,469 | 74,773 | 90,696 | ||||||||||
Total assets | 203,648 | 74,866 | 128,782 | ||||||||||
Allocated equity | 17,933 | n/a | n/a | ||||||||||
Economic capital (2) | 15,211 | n/a | n/a | ||||||||||
Period end | |||||||||||||
Total loans and leases | $ | 121,553 | $ | 55,283 | $ | 66,270 | |||||||
Total earning assets | 149,908 | 69,646 | 80,262 | ||||||||||
Total assets | 185,398 | 70,247 | 115,151 | ||||||||||
For footnotes see page 25.
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 23 |
Bank of America Corporation and Subsidiaries | |||||||||||||
Consumer Real Estate Services Quarterly Results (1) | |||||||||||||
(Dollars in millions) | |||||||||||||
Second Quarter 2012 | |||||||||||||
Total Consumer Real Estate Services | Home Loans | Legacy Assets & Servicing | |||||||||||
Net interest income (FTE basis) | $ | 714 | $ | 330 | $ | 384 | |||||||
Noninterest income: | |||||||||||||
Mortgage banking income | 1,811 | 827 | 984 | ||||||||||
Insurance income | 1 | 1 | — | ||||||||||
All other income (loss) | (5 | ) | (33 | ) | 28 | ||||||||
Total noninterest income | 1,807 | 795 | 1,012 | ||||||||||
Total revenue, net of interest expense (FTE basis) | 2,521 | 1,125 | 1,396 | ||||||||||
Provision for credit losses | 186 | (34 | ) | 220 | |||||||||
Noninterest expense | 3,556 | 776 | 2,780 | ||||||||||
Income (loss) before income taxes | (1,221 | ) | 383 | (1,604 | ) | ||||||||
Income tax expense (benefit) (FTE basis) | (453 | ) | 142 | (595 | ) | ||||||||
Net income (loss) | $ | (768 | ) | $ | 241 | $ | (1,009 | ) | |||||
Balance Sheet | |||||||||||||
Average | |||||||||||||
Total loans and leases | $ | 106,725 | $ | 50,580 | $ | 56,145 | |||||||
Total earning assets | 126,823 | 57,869 | 68,954 | ||||||||||
Total assets | 152,777 | 58,898 | 93,879 | ||||||||||
Allocated equity | 14,116 | n/a | n/a | ||||||||||
Economic capital (2) | 14,116 | n/a | n/a | ||||||||||
Period end | |||||||||||||
Total loans and leases | $ | 105,304 | $ | 50,112 | $ | 55,192 | |||||||
Total earning assets | 124,854 | 57,716 | 67,138 | ||||||||||
Total assets | 147,638 | 58,986 | 88,652 | ||||||||||
First Quarter 2012 | |||||||||||||
Total Consumer Real Estate Services | Home Loans | Legacy Assets & Servicing | |||||||||||
Net interest income (FTE basis) | $ | 775 | $ | 347 | $ | 428 | |||||||
Noninterest income: | |||||||||||||
Mortgage banking income | 1,831 | 714 | 1,117 | ||||||||||
Insurance income | 6 | 6 | — | ||||||||||
All other income | 62 | 22 | 40 | ||||||||||
Total noninterest income | 1,899 | 742 | 1,157 | ||||||||||
Total revenue, net of interest expense (FTE basis) | 2,674 | 1,089 | 1,585 | ||||||||||
Provision for credit losses | 507 | 53 | 454 | ||||||||||
Noninterest expense | 3,905 | 836 | 3,069 | ||||||||||
Income (loss) before income taxes | (1,738 | ) | 200 | (1,938 | ) | ||||||||
Income tax expense (benefit) (FTE basis) | (593 | ) | 73 | (666 | ) | ||||||||
Net income (loss) | $ | (1,145 | ) | $ | 127 | $ | (1,272 | ) | |||||
Balance Sheet | |||||||||||||
Average | |||||||||||||
Total loans and leases | $ | 110,755 | $ | 51,663 | $ | 59,092 | |||||||
Total earning assets | 130,201 | 57,474 | 72,727 | ||||||||||
Total assets | 159,105 | 58,348 | 100,757 | ||||||||||
Allocated equity | 14,791 | n/a | n/a | ||||||||||
Economic capital (2) | 14,791 | n/a | n/a | ||||||||||
Period end | |||||||||||||
Total loans and leases | $ | 109,264 | $ | 51,002 | $ | 58,262 | |||||||
Total earning assets | 130,420 | 57,723 | 72,697 | ||||||||||
Total assets | 158,207 | 58,682 | 99,525 | ||||||||||
For footnotes see page 25.
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 24 |
Bank of America Corporation and Subsidiaries | |||||||||||||
Consumer Real Estate Services Quarterly Results (1) (continued) | |||||||||||||
(Dollars in millions) | |||||||||||||
Second Quarter 2011 | |||||||||||||
Total Consumer Real Estate Services | Home Loans | Legacy Assets & Servicing | |||||||||||
Net interest income (FTE basis) | $ | 579 | $ | 449 | $ | 130 | |||||||
Noninterest income: | |||||||||||||
Mortgage banking income (loss) | (13,018 | ) | 674 | (13,692 | ) | ||||||||
Insurance income | 299 | 299 | — | ||||||||||
All other income | 825 | 799 | 26 | ||||||||||
Total noninterest income (loss) | (11,894 | ) | 1,772 | (13,666 | ) | ||||||||
Total revenue, net of interest expense (FTE basis) | (11,315 | ) | 2,221 | (13,536 | ) | ||||||||
Provision for credit losses | 1,507 | 121 | 1,386 | ||||||||||
Goodwill impairment | 2,603 | — | 2,603 | ||||||||||
Noninterest expense | 6,022 | 1,288 | 4,734 | ||||||||||
Income (loss) before income taxes | (21,447 | ) | 812 | (22,259 | ) | ||||||||
Income tax expense (benefit) (FTE basis) | (6,941 | ) | 299 | (7,240 | ) | ||||||||
Net income (loss) | $ | (14,506 | ) | $ | 513 | $ | (15,019 | ) | |||||
Balance Sheet | |||||||||||||
Average | |||||||||||||
Total loans and leases | $ | 121,683 | $ | 55,010 | $ | 66,673 | |||||||
Total earning assets | 158,674 | 71,614 | 87,060 | ||||||||||
Total assets | 198,030 | 71,806 | 126,224 | ||||||||||
Allocated equity | 17,139 | n/a | n/a | ||||||||||
Economic capital (2) | 14,437 | n/a | n/a | ||||||||||
Period end | |||||||||||||
Total loans and leases | $ | 121,553 | $ | 55,283 | $ | 66,270 | |||||||
Total earning assets | 149,908 | 69,646 | 80,262 | ||||||||||
Total assets | 185,398 | 70,247 | 115,151 | ||||||||||
(1) | Consumer Real Estate Services includes Home Loans and Legacy Assets & Servicing. The results of certain mortgage servicing right activities, including net hedge results which were previously included in Home Loans, together with any related assets or liabilities used as economic hedges are included in Legacy Assets & Servicing. The goodwill asset and related impairment charge that was recorded in 2011 are included in Legacy Assets & Servicing. |
(2) | Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding MSRs). Economic capital is a non-GAAP financial measure. We believe the use of this non-GAAP financial measure provides additional clarity in assessing the results of the segment. Other companies may define or calculate this measure differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) |
n/a = not applicable
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 25 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Consumer Real Estate Services Key Indicators | |||||||||||||||||||||||||||||
(Dollars in millions, except as noted) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||
Mortgage servicing rights at fair value rollforward: | |||||||||||||||||||||||||||||
Balance, beginning of period | $ | 7,378 | $ | 14,900 | $ | 7,589 | $ | 7,378 | $ | 7,881 | $ | 12,372 | $ | 15,282 | |||||||||||||||
Net additions | 71 | 1,017 | (6 | ) | 77 | (290 | ) | 33 | 176 | ||||||||||||||||||||
Impact of customer payments (1) | (803 | ) | (1,345 | ) | (282 | ) | (521 | ) | (612 | ) | (664 | ) | (639 | ) | |||||||||||||||
Other changes in mortgage servicing rights fair value (2) | (938 | ) | (2,200 | ) | (1,593 | ) | 655 | 399 | (3,860 | ) | (2,447 | ) | |||||||||||||||||
Balance, end of period | $ | 5,708 | $ | 12,372 | $ | 5,708 | $ | 7,589 | $ | 7,378 | $ | 7,881 | $ | 12,372 | |||||||||||||||
Capitalized mortgage servicing rights (% of loans serviced for investors) | 47 | bps | 78 | bps | 47 | bps | 58 | bps | 54 | bps | 52 | bps | 78 | bps | |||||||||||||||
Mortgage loans serviced for investors (in billions) | $ | 1,224 | $ | 1,578 | $ | 1,224 | $ | 1,313 | $ | 1,379 | $ | 1,512 | $ | 1,578 | |||||||||||||||
Loan production: | |||||||||||||||||||||||||||||
Consumer Real Estate Services | |||||||||||||||||||||||||||||
First mortgage | $ | 26,391 | $ | 90,772 | $ | 14,206 | $ | 12,185 | $ | 18,053 | $ | 30,448 | $ | 38,253 | |||||||||||||||
Home equity | 1,321 | 2,454 | 724 | 597 | 580 | 660 | 879 | ||||||||||||||||||||||
Total Corporation (3) | |||||||||||||||||||||||||||||
First mortgage | 33,243 | 97,104 | 18,005 | 15,238 | 21,614 | 33,038 | 40,370 | ||||||||||||||||||||||
Home equity | 1,690 | 2,782 | 930 | 760 | 759 | 847 | 1,054 | ||||||||||||||||||||||
Mortgage banking income (loss) | |||||||||||||||||||||||||||||
Production income (loss): | |||||||||||||||||||||||||||||
Core production revenue | $ | 1,814 | $ | 1,492 | $ | 885 | $ | 929 | $ | 501 | $ | 803 | $ | 824 | |||||||||||||||
Representations and warranties provision | (677 | ) | (15,050 | ) | (395 | ) | (282 | ) | (263 | ) | (278 | ) | (14,037 | ) | |||||||||||||||
Total production income (loss) | 1,137 | (13,558 | ) | 490 | 647 | 238 | 525 | (13,213 | ) | ||||||||||||||||||||
Servicing income: | |||||||||||||||||||||||||||||
Servicing fees | 2,545 | 3,162 | 1,213 | 1,332 | 1,333 | 1,464 | 1,556 | ||||||||||||||||||||||
Impact of customer payments (1) | (803 | ) | (1,345 | ) | (282 | ) | (521 | ) | (612 | ) | (664 | ) | (639 | ) | |||||||||||||||
Fair value changes of mortgage servicing rights, net of economic hedge results (4) | 388 | (870 | ) | 194 | 194 | 1,165 | 361 | (873 | ) | ||||||||||||||||||||
Other servicing-related revenue | 375 | 288 | 196 | 179 | 205 | 114 | 151 | ||||||||||||||||||||||
Total net servicing income | 2,505 | 1,235 | 1,321 | 1,184 | 2,091 | 1,275 | 195 | ||||||||||||||||||||||
Total Consumer Real Estate Services mortgage banking income (loss) | 3,642 | (12,323 | ) | 1,811 | 1,831 | 2,329 | 1,800 | (13,018 | ) | ||||||||||||||||||||
Other business segments’ mortgage banking loss (5) | (371 | ) | (243 | ) | (152 | ) | (219 | ) | (210 | ) | (183 | ) | (178 | ) | |||||||||||||||
Total consolidated mortgage banking income (loss) | $ | 3,271 | $ | (12,566 | ) | $ | 1,659 | $ | 1,612 | $ | 2,119 | $ | 1,617 | $ | (13,196 | ) | |||||||||||||
(1) | Represents the change in the market value of the mortgage servicing rights asset due to the impact of customer payments received during the year. |
(2) | These amounts reflect the change in discount rates and prepayment speed assumptions, mostly due to changes in interest rates, as well as the effect of changes in other assumptions. |
(3) | In addition to loan production in Consumer Real Estate Services, the remaining first mortgage and home equity loan production is primarily in GWIM. |
(4) | Includes sale of mortgage servicing rights. |
(5) | Includes the effect of transfers of mortgage loans from Consumer Real Estate Services to the asset and liability management portfolio included in All Other. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 26 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Global Banking Segment Results | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | |||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 4,583 | $ | 4,858 | $ | 2,184 | $ | 2,399 | $ | 2,309 | $ | 2,323 | $ | 2,375 | ||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||
Service charges | 1,622 | 1,789 | 815 | 807 | 802 | 828 | 876 | |||||||||||||||||||||
Investment banking income | 1,284 | 1,815 | 633 | 651 | 629 | 616 | 948 | |||||||||||||||||||||
All other income | 1,246 | 898 | 653 | 593 | 261 | 184 | 460 | |||||||||||||||||||||
Total noninterest income | 4,152 | 4,502 | 2,101 | 2,051 | 1,692 | 1,628 | 2,284 | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 8,735 | 9,360 | 4,285 | 4,450 | 4,001 | 3,951 | 4,659 | |||||||||||||||||||||
Provision for credit losses | (351 | ) | (681 | ) | (113 | ) | (238 | ) | (256 | ) | (182 | ) | (557 | ) | ||||||||||||||
Noninterest expense | 4,342 | 4,531 | 2,165 | 2,177 | 2,136 | 2,218 | 2,221 | |||||||||||||||||||||
Income before income taxes | 4,744 | 5,510 | 2,233 | 2,511 | 2,121 | 1,915 | 2,995 | |||||||||||||||||||||
Income tax expense (FTE basis) | 1,748 | 2,006 | 827 | 921 | 784 | 710 | 1,074 | |||||||||||||||||||||
Net income | $ | 2,996 | $ | 3,504 | $ | 1,406 | $ | 1,590 | $ | 1,337 | $ | 1,205 | $ | 1,921 | ||||||||||||||
Net interest yield (FTE basis) | 3.08 | % | 3.50 | % | 2.97 | % | 3.18 | % | 3.04 | % | 3.06 | % | 3.33 | % | ||||||||||||||
Return on average allocated equity | 13.14 | 14.75 | 12.31 | 13.98 | 11.51 | 10.03 | 16.37 | |||||||||||||||||||||
Return on average economic capital (1) | 28.74 | 30.14 | 26.83 | 30.67 | 25.05 | 20.86 | 34.06 | |||||||||||||||||||||
Efficiency ratio (FTE basis) | 49.71 | 48.41 | 50.53 | 48.92 | 53.36 | 56.13 | 47.70 | |||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||
Total loans and leases | $ | 272,443 | $ | 258,508 | $ | 267,812 | $ | 277,074 | $ | 276,848 | $ | 268,174 | $ | 260,144 | ||||||||||||||
Total earnings assets (2) | 299,442 | 280,074 | 295,808 | 303,075 | 300,884 | 301,271 | 285,211 | |||||||||||||||||||||
Total assets (2) | 344,730 | 326,632 | 341,044 | 348,417 | 347,227 | 347,974 | 331,084 | |||||||||||||||||||||
Total deposits | 238,292 | 230,744 | 239,054 | 237,531 | 240,730 | 246,282 | 235,662 | |||||||||||||||||||||
Allocated equity | 45,838 | 47,891 | 45,958 | 45,719 | 46,087 | 47,682 | 47,060 | |||||||||||||||||||||
Economic capital (1) | 20,980 | 23,461 | 21,102 | 20,858 | 21,188 | 22,958 | 22,632 | |||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||
Total loans and leases | $ | 265,393 | $ | 263,065 | $ | 265,393 | $ | 272,279 | $ | 278,178 | $ | 273,549 | $ | 263,065 | ||||||||||||||
Total earnings assets (2) | 293,655 | 293,789 | 293,655 | 293,414 | 301,627 | 293,814 | 293,789 | |||||||||||||||||||||
Total assets (2) | 340,559 | 340,535 | 340,559 | 340,645 | 348,738 | 341,100 | 340,535 | |||||||||||||||||||||
Total deposits | 241,344 | 244,025 | 241,344 | 237,602 | 246,325 | 236,565 | 244,025 | |||||||||||||||||||||
(1) | Return on average economic capital is calculated as net income, adjusted for cost of funds and earnings credit and certain expenses related to intangibles, divided by average economic capital. Economic capital represents allocated equity less goodwill and a percentage of intangible assets. Economic capital and return on average economic capital are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provide additional clarity in assessing the results of the segments. Other companies may define or calculate this measure differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) |
(2) | Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits). |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 27 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Global Banking Key Indicators | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||
Investment Banking fees (1) | |||||||||||||||||||||||||||||
Advisory (2) | $ | 504 | $ | 657 | $ | 314 | $ | 190 | $ | 265 | $ | 260 | $ | 356 | |||||||||||||||
Debt issuance | 594 | 809 | 248 | 346 | 254 | 230 | 420 | ||||||||||||||||||||||
Equity issuance | 186 | 349 | 71 | 115 | 110 | 126 | 172 | ||||||||||||||||||||||
Total Investment Banking fees (3) | $ | 1,284 | $ | 1,815 | $ | 633 | $ | 651 | $ | 629 | $ | 616 | $ | 948 | |||||||||||||||
Business Lending | |||||||||||||||||||||||||||||
Corporate | $ | 1,730 | $ | 1,772 | $ | 850 | $ | 880 | $ | 693 | $ | 775 | $ | 786 | |||||||||||||||
Commercial | 2,276 | 2,608 | 1,129 | 1,147 | 1,176 | 1,169 | 1,370 | ||||||||||||||||||||||
Total Business Lending revenue (3) | $ | 4,006 | $ | 4,380 | $ | 1,979 | $ | 2,027 | $ | 1,869 | $ | 1,944 | $ | 2,156 | |||||||||||||||
Treasury Services | |||||||||||||||||||||||||||||
Corporate | $ | 1,264 | $ | 1,259 | $ | 619 | $ | 645 | $ | 632 | $ | 616 | $ | 638 | |||||||||||||||
Commercial | 1,836 | 1,766 | 893 | 943 | 910 | 856 | 912 | ||||||||||||||||||||||
Total Treasury Services revenue (3) | $ | 3,100 | $ | 3,025 | $ | 1,512 | $ | 1,588 | $ | 1,542 | $ | 1,472 | $ | 1,550 | |||||||||||||||
Average deposit balances | |||||||||||||||||||||||||||||
Interest-bearing | $ | 75,247 | $ | 95,619 | $ | 74,280 | $ | 76,213 | $ | 78,599 | $ | 90,684 | $ | 96,701 | |||||||||||||||
Noninterest-bearing | 163,045 | 135,125 | 164,774 | 161,318 | 162,131 | 155,598 | 138,961 | ||||||||||||||||||||||
Total average deposits | $ | 238,292 | $ | 230,744 | $ | 239,054 | $ | 237,531 | $ | 240,730 | $ | 246,282 | $ | 235,662 | |||||||||||||||
Loan spread | 1.86 | % | 2.17 | % | 1.82 | % | 1.90 | % | 1.85 | % | 1.97 | % | 2.02 | % | |||||||||||||||
Provision for credit losses | $ | (351 | ) | $ | (681 | ) | $ | (113 | ) | $ | (238 | ) | $ | (256 | ) | $ | (182 | ) | $ | (557 | ) | ||||||||
Credit quality (4, 5) | |||||||||||||||||||||||||||||
Reservable utilized criticized exposure | $ | 14,843 | $ | 26,813 | $ | 14,843 | $ | 17,983 | $ | 20,072 | $ | 22,859 | $ | 26,813 | |||||||||||||||
5.42 | % | 9.70 | % | 5.42 | % | 6.43 | % | 7.05 | % | 8.16 | % | 9.70 | % | ||||||||||||||||
Nonperforming loans, leases and foreclosed properties | $ | 3,305 | $ | 5,984 | $ | 3,305 | $ | 4,130 | $ | 4,646 | $ | 5,376 | $ | 5,984 | |||||||||||||||
1.27 | % | 2.31 | % | 1.27 | % | 1.54 | % | 1.70 | % | 2.00 | % | 2.31 | % | ||||||||||||||||
Average loans and leases by product | |||||||||||||||||||||||||||||
U.S. commercial | $ | 127,144 | $ | 117,621 | $ | 125,424 | $ | 128,864 | $ | 124,885 | $ | 119,158 | $ | 118,172 | |||||||||||||||
Commercial real estate | 32,993 | 39,836 | 32,335 | 33,651 | 34,603 | 36,457 | 38,770 | ||||||||||||||||||||||
Commercial lease financing | 23,255 | 23,259 | 23,123 | 23,387 | 23,050 | 23,101 | 23,041 | ||||||||||||||||||||||
Non-U.S. commercial | 49,107 | 36,041 | 49,089 | 49,126 | 50,878 | 47,182 | 39,089 | ||||||||||||||||||||||
Direct/Indirect consumer | 39,936 | 41,727 | 37,834 | 42,040 | 43,427 | 42,254 | 41,048 | ||||||||||||||||||||||
Other | 8 | 24 | 7 | 6 | 5 | 22 | 24 | ||||||||||||||||||||||
Total average loans and leases | $ | 272,443 | $ | 258,508 | $ | 267,812 | $ | 277,074 | $ | 276,848 | $ | 268,174 | $ | 260,144 | |||||||||||||||
Total Corporation Investment Banking fees | |||||||||||||||||||||||||||||
Advisory (2) | $ | 543 | $ | 702 | $ | 340 | $ | 203 | $ | 273 | $ | 273 | $ | 382 | |||||||||||||||
Debt issuance | 1,424 | 1,785 | 647 | 777 | 589 | 515 | 939 | ||||||||||||||||||||||
Equity issuance | 497 | 869 | 192 | 305 | 267 | 316 | 422 | ||||||||||||||||||||||
Total investment banking fees | 2,464 | 3,356 | 1,179 | 1,285 | 1,129 | 1,104 | 1,743 | ||||||||||||||||||||||
Self-Led | (101 | ) | (94 | ) | (32 | ) | (69 | ) | (116 | ) | (162 | ) | (59 | ) | |||||||||||||||
Total Investment Banking fees | $ | 2,363 | $ | 3,262 | $ | 1,147 | $ | 1,216 | $ | 1,013 | $ | 942 | $ | 1,684 | |||||||||||||||
(1) | Includes self-led deals and represents fees attributable to Global Banking under an internal sharing arrangement. |
(2) | Advisory includes fees on debt and equity advisory and mergers and acquisitions. |
(3) | Total Global Banking revenue includes certain insignificant items that are not included in Investment Banking fees, Business Lending revenue or Treasury Services revenue. |
(4) | Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure is on an end-of-period basis and is also shown as a percentage of total reservable commercial utilized credit exposure, including loans and leases, standby letters of credit, financial guarantees, commercial letters of credit and bankers' acceptances. |
(5) | Nonperforming loans, leases and foreclosed properties are on an end-of-period basis. The nonperforming ratio is nonperforming assets divided by loans, leases and foreclosed properties. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 28 |
Bank of America Corporation and Subsidiaries | |||||||||
Investment Banking Product Rankings | |||||||||
Six Months Ended June 30, 2012 | |||||||||
Global | U.S. | ||||||||
Product Ranking | Market Share | Product Ranking | Market Share | ||||||
High-yield corporate debt | 2 | 9.7 | % | 2 | 11.2 | % | |||
Leveraged loans | 2 | 10.0 | 2 | 15.2 | |||||
Mortgage-backed securities | 6 | 6.9 | 6 | 7.8 | |||||
Asset-backed securities | 3 | 11.3 | 3 | 14.0 | |||||
Convertible debt | 4 | 9.6 | 1 | 22.1 | |||||
Common stock underwriting | 5 | 7.0 | 5 | 10.2 | |||||
Investment-grade corporate debt | 3 | 5.5 | 2 | 11.6 | |||||
Syndicated loans | 2 | 8.4 | 2 | 16.0 | |||||
Net investment banking revenue | 2 | 6.1 | 2 | 9.3 | |||||
Announced mergers and acquisitions | 8 | 12.6 | 8 | 12.6 | |||||
Equity capital markets | 5 | 7.2 | 3 | 11.2 | |||||
Debt capital markets | 5 | 4.8 | 4 | 8.6 |
Source: Dealogic data as of July 2, 2012. Figures above include self-led transactions.
• | Rankings based on deal volumes except for net investment banking revenue rankings which reflect fees. |
• | Debt capital markets excludes loans but includes agencies. |
• | Mergers and acquisitions fees included in investment banking revenues reflect 10 percent fee credit at announcement and 90 percent fee credit at completion as per Dealogic. |
• | Mergers and acquisitions volume rankings are for announced transactions and provide credit to all investment banks advising the target or acquiror. |
• | Each advisor receives full credit for the deal amount unless advising a minority stakeholder. |
Highlights
Global top 3 rankings in: | ||
High-yield corporate debt | Investment-grade corporate debt | |
Leveraged loans | Syndicated loans | |
Asset-backed securities | ||
U.S. top 3 rankings in: | ||
High-yield corporate debt | Investment-grade corporate debt | |
Leveraged loans | Syndicated loans | |
Asset-backed securities | Equity capital markets | |
Convertible debt |
Top 3 rankings excluding self-led deals:
Global: | High-yield corporate debt, Leveraged loans, Asset-backed securities, Investment-grade corporate debt, Syndicated loans |
U.S.: | High-yield corporate debt, Leveraged loans, Asset-backed securities, Convertible debt, Investment-grade corporate debt, Syndicated loans, Equity capital markets |
This information is preliminary and based on company data available at the time of the presentation. | 29 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Global Markets Segment Results | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 1,448 | $ | 1,894 | $ | 650 | $ | 798 | $ | 863 | $ | 925 | $ | 874 | |||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||
Investment and brokerage services | 955 | 1,204 | 445 | 510 | 447 | 584 | 557 | ||||||||||||||||||||||
Investment banking fees | 994 | 1,350 | 438 | 556 | 425 | 438 | 700 | ||||||||||||||||||||||
Trading account profits | 3,744 | 4,628 | 1,707 | 2,037 | 369 | 1,421 | 2,014 | ||||||||||||||||||||||
All other income (loss) | 417 | 609 | 125 | 292 | (299 | ) | (73 | ) | 268 | ||||||||||||||||||||
Total noninterest income | 6,110 | 7,791 | 2,715 | 3,395 | 942 | 2,370 | 3,539 | ||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | 7,558 | 9,685 | 3,365 | 4,193 | 1,805 | 3,295 | 4,413 | ||||||||||||||||||||||
Provision for credit losses | (34 | ) | (41 | ) | (14 | ) | (20 | ) | (18 | ) | 3 | (8 | ) | ||||||||||||||||
Noninterest expense | 5,787 | 6,376 | 2,711 | 3,076 | 2,893 | 2,966 | 3,263 | ||||||||||||||||||||||
Income (loss) before income taxes | 1,805 | 3,350 | 668 | 1,137 | (1,070 | ) | 326 | 1,158 | |||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 545 | 1,044 | 206 | 339 | (302 | ) | 878 | 247 | |||||||||||||||||||||
Net income (loss) | $ | 1,260 | $ | 2,306 | $ | 462 | $ | 798 | $ | (768 | ) | $ | (552 | ) | $ | 911 | |||||||||||||
Return on average allocated equity | 14.29 | % | 18.85 | % | 10.84 | % | 17.52 | % | n/m | n/m | 15.90 | % | |||||||||||||||||
Return on average economic capital (2) | 19.42 | 23.23 | 14.92 | 23.54 | n/m | n/m | 19.99 | ||||||||||||||||||||||
Efficiency ratio (FTE basis) | 76.58 | 65.84 | 80.59 | 73.36 | n/m | 90.00 | % | 73.94 | |||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||
Total trading-related assets (3) | $ | 454,300 | $ | 478,242 | $ | 459,869 | $ | 448,731 | $ | 444,319 | $ | 489,172 | $ | 499,274 | |||||||||||||||
Total earning assets (3) | 434,447 | 461,526 | 444,537 | 424,358 | 414,136 | 445,431 | 457,845 | ||||||||||||||||||||||
Total assets | 570,273 | 602,447 | 581,952 | 558,594 | 552,861 | 604,333 | 622,915 | ||||||||||||||||||||||
Allocated equity | 17,725 | 24,667 | 17,132 | 18,317 | 19,805 | 21,609 | 22,990 | ||||||||||||||||||||||
Economic capital (2) | 13,096 | 20,069 | 12,524 | 13,669 | 15,154 | 16,954 | 18,344 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total trading-related assets (3) | $ | 443,948 | $ | 444,556 | $ | 443,948 | $ | 440,091 | $ | 397,876 | $ | 446,697 | $ | 444,556 | |||||||||||||||
Total earning assets (3) | 428,940 | 405,398 | 428,940 | 417,580 | 372,851 | 413,677 | 405,398 | ||||||||||||||||||||||
Total assets | 561,815 | 561,361 | 561,815 | 548,558 | 501,824 | 552,772 | 561,361 | ||||||||||||||||||||||
Trading-related assets (average) | |||||||||||||||||||||||||||||
Trading account securities | $ | 188,069 | $ | 209,586 | $ | 190,250 | $ | 185,890 | $ | 172,955 | $ | 199,201 | $ | 213,631 | |||||||||||||||
Reverse repurchases | 160,456 | 162,302 | 160,832 | 160,079 | 162,507 | 174,574 | 173,270 | ||||||||||||||||||||||
Securities borrowed | 50,292 | 49,419 | 53,297 | 47,286 | 46,476 | 46,930 | 53,756 | ||||||||||||||||||||||
Derivative assets | 55,483 | 56,935 | 55,490 | 55,476 | 62,381 | 68,467 | 58,617 | ||||||||||||||||||||||
Total trading-related assets (3) | $ | 454,300 | $ | 478,242 | $ | 459,869 | $ | 448,731 | $ | 444,319 | $ | 489,172 | $ | 499,274 | |||||||||||||||
(1) | Substantially all of Global Markets total revenue is sales and trading revenue and investment banking fees, with a small portion related to certain revenue sharing agreements with other business segments. For additional sales and trading revenue information, see page 31. |
(2) | 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. 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 Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) |
(3) | Trading-related assets include assets which are not considered earning assets (i.e., derivative assets). |
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 30 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Global Markets Key Indicators | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||
Sales and trading revenue (1) | |||||||||||||||||||||||||||||
Fixed income, currency and commodities | $ | 5,261 | $ | 6,031 | $ | 2,418 | $ | 2,843 | $ | 808 | $ | 2,058 | $ | 2,642 | |||||||||||||||
Equity income | 1,666 | 2,316 | 759 | 907 | 670 | 957 | 1,077 | ||||||||||||||||||||||
Total sales and trading revenue | $ | 6,927 | $ | 8,347 | $ | 3,177 | $ | 3,750 | $ | 1,478 | $ | 3,015 | $ | 3,719 | |||||||||||||||
Sales and trading revenue, excluding DVA | |||||||||||||||||||||||||||||
Fixed income, currency and commodities | $ | 6,685 | $ | 6,247 | $ | 2,555 | $ | 4,130 | $ | 1,303 | $ | 553 | $ | 2,550 | |||||||||||||||
Equity income | 1,832 | 2,334 | 778 | 1,054 | 649 | 753 | 1,046 | ||||||||||||||||||||||
Total sales and trading revenue, excluding DVA | $ | 8,517 | $ | 8,581 | $ | 3,333 | $ | 5,184 | $ | 1,952 | $ | 1,306 | $ | 3,596 | |||||||||||||||
Sales and trading revenue breakdown | |||||||||||||||||||||||||||||
Net interest income | $ | 1,448 | $ | 1,894 | $ | 650 | $ | 798 | $ | 863 | $ | 925 | $ | 874 | |||||||||||||||
Commissions | 955 | 1,204 | 445 | 510 | 447 | 584 | 557 | ||||||||||||||||||||||
Trading | 3,744 | 4,628 | 1,707 | 2,037 | 369 | 1,421 | 2,014 | ||||||||||||||||||||||
Other | 780 | 621 | 375 | 405 | (201 | ) | 85 | 274 | |||||||||||||||||||||
Total sales and trading revenue | $ | 6,927 | $ | 8,347 | $ | 3,177 | $ | 3,750 | $ | 1,478 | $ | 3,015 | $ | 3,719 | |||||||||||||||
(1) | Includes Global Banking sales and trading revenue of $445 million and $136 million for the six months ended June 30, 2012 and 2011; $240 million and $205 million for the second and first quarters of 2012, and $59 million, $78 million and $32 million for the fourth, third and second quarters of 2011, respectively. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 31 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Global Wealth & Investment Management Segment Results | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 3,024 | $ | 3,143 | $ | 1,446 | $ | 1,578 | $ | 1,497 | $ | 1,412 | $ | 1,573 | |||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||
Investment and brokerage services | 4,630 | 4,756 | 2,334 | 2,296 | 2,190 | 2,364 | 2,378 | ||||||||||||||||||||||
All other income | 1,023 | 1,092 | 537 | 486 | 481 | 462 | 544 | ||||||||||||||||||||||
Total noninterest income | 5,653 | 5,848 | 2,871 | 2,782 | 2,671 | 2,826 | 2,922 | ||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 8,677 | 8,991 | 4,317 | 4,360 | 4,168 | 4,238 | 4,495 | ||||||||||||||||||||||
Provision for credit losses | 93 | 118 | 47 | 46 | 118 | 162 | 72 | ||||||||||||||||||||||
Noninterest expense | 6,858 | 7,213 | 3,408 | 3,450 | 3,637 | 3,507 | 3,624 | ||||||||||||||||||||||
Income before income taxes | 1,726 | 1,660 | 862 | 864 | 413 | 569 | 799 | ||||||||||||||||||||||
Income tax expense (FTE basis) | 636 | 605 | 319 | 317 | 153 | 211 | 286 | ||||||||||||||||||||||
Net income | $ | 1,090 | $ | 1,055 | $ | 543 | $ | 547 | $ | 260 | $ | 358 | $ | 513 | |||||||||||||||
Net interest yield (FTE basis) | 2.33 | % | 2.32 | % | 2.26 | % | 2.39 | % | 2.24 | % | 2.07 | % | 2.34 | % | |||||||||||||||
Return on average allocated equity | 12.46 | 11.98 | 12.15 | 12.78 | 5.78 | 7.97 | 11.71 | ||||||||||||||||||||||
Return on average economic capital (1) | 31.81 | 30.72 | 30.03 | 33.81 | 14.73 | 20.31 | 30.45 | ||||||||||||||||||||||
Efficiency ratio (FTE basis) | 79.03 | 80.24 | 78.94 | 79.11 | 87.25 | 82.74 | 80.64 | ||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 103,569 | $ | 101,530 | $ | 104,102 | $ | 103,036 | $ | 102,709 | $ | 102,786 | $ | 102,201 | |||||||||||||||
Total earning assets (2) | 261,112 | 273,193 | 256,958 | 265,267 | 265,078 | 271,207 | 269,208 | ||||||||||||||||||||||
Total assets (2) | 280,920 | 293,369 | 276,914 | 284,926 | 284,629 | 290,974 | 289,262 | ||||||||||||||||||||||
Total deposits | 251,913 | 257,066 | 251,121 | 252,705 | 250,040 | 255,882 | 255,432 | ||||||||||||||||||||||
Allocated equity | 17,601 | 17,745 | 17,974 | 17,228 | 17,845 | 17,826 | 17,560 | ||||||||||||||||||||||
Economic capital (1) | 6,970 | 7,028 | 7,353 | 6,587 | 7,182 | 7,135 | 6,854 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 105,395 | $ | 102,878 | $ | 105,395 | $ | 102,903 | $ | 103,460 | $ | 102,362 | $ | 102,878 | |||||||||||||||
Total earning assets (2) | 257,884 | 264,104 | 257,884 | 258,200 | 263,501 | 260,940 | 264,104 | ||||||||||||||||||||||
Total assets (2) | 277,988 | 284,504 | 277,988 | 278,185 | 284,062 | 280,897 | 284,504 | ||||||||||||||||||||||
Total deposits | 249,755 | 255,796 | 249,755 | 252,755 | 253,264 | 251,251 | 255,796 | ||||||||||||||||||||||
(1) | 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. 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 Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) |
(2) | Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits). |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 32 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Global Wealth & Investment Management - Key Indicators and Metrics | |||||||||||||||||||||||||||||
(Dollars in millions, except as noted) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Merrill Lynch Global Wealth Management | $ | 7,319 | $ | 7,561 | $ | 3,637 | $ | 3,682 | $ | 3,463 | $ | 3,594 | $ | 3,770 | |||||||||||||||
U.S. Trust | 1,308 | 1,388 | 655 | 653 | 679 | 626 | 706 | ||||||||||||||||||||||
Other (1) | 50 | 42 | 25 | 25 | 26 | 18 | 19 | ||||||||||||||||||||||
Total revenues | $ | 8,677 | $ | 8,991 | $ | 4,317 | $ | 4,360 | $ | 4,168 | $ | 4,238 | $ | 4,495 | |||||||||||||||
Client Balances | |||||||||||||||||||||||||||||
Client Balances by Business | |||||||||||||||||||||||||||||
Merrill Lynch Global Wealth Management | $ | 1,802,271 | $ | 1,795,860 | $ | 1,802,271 | $ | 1,841,106 | $ | 1,749,059 | $ | 1,686,404 | $ | 1,795,860 | |||||||||||||||
U.S. Trust | 323,711 | 341,924 | 323,711 | 333,876 | 324,003 | 315,244 | 341,924 | ||||||||||||||||||||||
Other (1) | 66,091 | 67,875 | 66,091 | 66,309 | 66,182 | 65,153 | 67,875 | ||||||||||||||||||||||
Client Balances by Type | |||||||||||||||||||||||||||||
Assets under management | $ | 682,227 | $ | 661,010 | $ | 682,227 | $ | 692,959 | $ | 647,126 | $ | 616,899 | $ | 661,010 | |||||||||||||||
Client brokerage assets | 1,039,942 | 1,065,996 | 1,039,942 | 1,074,454 | 1,024,193 | 986,718 | 1,065,996 | ||||||||||||||||||||||
Assets in custody | 111,357 | 116,499 | 111,357 | 114,938 | 107,989 | 106,293 | 116,499 | ||||||||||||||||||||||
Client deposits | 249,755 | 255,796 | 249,755 | 252,755 | 253,264 | 251,251 | 255,796 | ||||||||||||||||||||||
Loans and leases (2) | 108,792 | 106,358 | 108,792 | 106,185 | 106,672 | 105,640 | 106,358 | ||||||||||||||||||||||
Total client balances | $ | 2,192,073 | $ | 2,205,659 | $ | 2,192,073 | $ | 2,241,291 | $ | 2,139,244 | $ | 2,066,801 | $ | 2,205,659 | |||||||||||||||
Assets Under Management Flows | |||||||||||||||||||||||||||||
Liquidity assets under management (3) | $ | (52 | ) | $ | (10,430 | ) | $ | (122 | ) | $ | 70 | $ | 1,029 | $ | (2,568 | ) | $ | (3,771 | ) | ||||||||||
Long-term assets under management (4) | 11,865 | 18,694 | 4,113 | 7,752 | 4,462 | 4,493 | 4,535 | ||||||||||||||||||||||
Total assets under management flows | $ | 11,813 | $ | 8,264 | $ | 3,991 | $ | 7,822 | $ | 5,491 | $ | 1,925 | $ | 764 | |||||||||||||||
Associates (5) | |||||||||||||||||||||||||||||
Number of Financial Advisors | 17,534 | 16,443 | 17,534 | 17,512 | 17,308 | 17,094 | 16,443 | ||||||||||||||||||||||
Total Wealth Advisors | 18,843 | 17,836 | 18,843 | 18,840 | 18,667 | 18,498 | 17,836 | ||||||||||||||||||||||
Total Client Facing Professionals | 21,712 | 20,957 | 21,712 | 21,912 | 21,784 | 21,624 | 20,957 | ||||||||||||||||||||||
Merrill Lynch Global Wealth Management Metrics | |||||||||||||||||||||||||||||
Financial Advisory Productivity (6) (in thousands) | $ | 910 | $ | 985 | $ | 915 | $ | 905 | $ | 882 | $ | 921 | $ | 965 | |||||||||||||||
U.S. Trust Metrics | |||||||||||||||||||||||||||||
Client Facing Professionals | 2,161 | 2,279 | 2,161 | 2,223 | 2,247 | 2,270 | 2,279 | ||||||||||||||||||||||
(1) | Other includes the results of BofA Global Capital Management (the former Columbia cash management business) and other administrative items. |
(2) | Includes margin receivables which are classified in other assets on the Consolidated Balance Sheet. |
(3) | Defined as assets under advisory and discretion of GWIM in which the investment strategy seeks a high level of income while maintaining liquidity and capital preservation. The duration of these strategies is less than one year. |
(4) | Defined as assets under advisory and discretion of GWIM in which the duration of the investment strategy is longer than one year. |
(5) | Includes Financial Advisors in the Consumer & Business Banking segment of 1,383 and 796 for the six months ended June 30, 2012 and 2011 and 1,383, 1,337, 1,143, 1,032 and 796 at June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively. |
(6) | Financial Advisor Productivity is defined as annualized MLGWM total revenue divided by the total number of financial advisors (excluding Financial Advisors in the Consumer & Business Banking segment). Total revenue excludes corporate allocation of net interest income related to certain ALM activities. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 33 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
All Other Results (1) | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 507 | $ | 1,370 | $ | 84 | $ | 423 | $ | 401 | $ | 7 | $ | 543 | |||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||
Card income (2) | 171 | 303 | 84 | 87 | 91 | 72 | 149 | ||||||||||||||||||||||
Equity investment income (loss) | 354 | 2,554 | (63 | ) | 417 | 3,109 | 1,380 | 1,139 | |||||||||||||||||||||
Gains on sales of debt securities | 1,066 | 1,299 | 354 | 712 | 1,101 | 697 | 831 | ||||||||||||||||||||||
All other income (loss) | (2,324 | ) | (879 | ) | (71 | ) | (2,253 | ) | (411 | ) | 4,113 | (112 | ) | ||||||||||||||||
Total noninterest income | (733 | ) | 3,277 | 304 | (1,037 | ) | 3,890 | 6,262 | 2,007 | ||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | (226 | ) | 4,647 | 388 | (614 | ) | 4,291 | 6,269 | 2,550 | ||||||||||||||||||||
Provision for credit losses | 1,782 | 4,007 | 536 | 1,246 | 792 | 1,374 | 1,841 | ||||||||||||||||||||||
Goodwill impairment | — | — | — | — | 581 | — | — | ||||||||||||||||||||||
Merger and restructuring charges | — | 361 | — | — | 101 | 176 | 159 | ||||||||||||||||||||||
All other noninterest expense | 3,135 | 2,318 | 849 | 2,286 | 1,176 | 573 | 587 | ||||||||||||||||||||||
Income (loss) before income taxes | (5,143 | ) | (2,039 | ) | (997 | ) | (4,146 | ) | 1,641 | 4,146 | (37 | ) | |||||||||||||||||
Income tax expense (benefit) (FTE basis) | (2,215 | ) | (759 | ) | (661 | ) | (1,554 | ) | 279 | (533 | ) | 130 | |||||||||||||||||
Net income (loss) | $ | (2,928 | ) | $ | (1,280 | ) | $ | (336 | ) | $ | (2,592 | ) | $ | 1,362 | $ | 4,679 | $ | (167 | ) | ||||||||||
Balance Sheet | |||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 260,727 | $ | 288,068 | $ | 257,341 | $ | 264,112 | $ | 272,809 | $ | 286,753 | $ | 287,840 | |||||||||||||||
Total assets (3) | 311,302 | 393,993 | 310,129 | 312,474 | 335,748 | 355,818 | 374,561 | ||||||||||||||||||||||
Total deposits | 35,524 | 49,110 | 31,274 | 39,774 | 46,057 | 52,855 | 48,109 | ||||||||||||||||||||||
Allocated equity (4) | 85,245 | 71,568 | 86,926 | 83,564 | 76,737 | 68,672 | 77,759 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 253,505 | $ | 287,424 | $ | 253,505 | $ | 260,005 | $ | 267,621 | $ | 274,268 | $ | 287,424 | |||||||||||||||
Total assets (5) | 295,207 | 367,698 | 295,207 | 311,999 | 309,613 | 335,965 | 367,698 | ||||||||||||||||||||||
Total deposits | 27,157 | 43,768 | 27,157 | 30,150 | 32,869 | 52,946 | 43,768 | ||||||||||||||||||||||
(1) | All Other consists of two broad groupings, Equity Investments and Other. Equity Investments includes Global Principal Investments, Strategic and other investments. Other includes liquidating businesses, merger and restructuring charges, ALM activities such as the residential mortgage portfolio and investment securities, and activities including economic hedges, gains/losses on structured liabilities, the impact of certain allocation methodologies and accounting hedge ineffectiveness. Other also includes certain residential mortgage and discontinued real estate loans that are managed by Legacy Assets & Servicing within Consumer Real Estate Services. |
(2) | During the third quarter of 2011, the international consumer card business results were moved to All Other from Consumer & Business Banking and prior periods were reclassified. |
(3) | Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) of $514.2 billion and $493.7 billion for the six months ended June 30, 2012 and 2011; $516.6 billion, $511.8 billion, $493.7 billion, $509.7 billion and $501.4 billion for the second and first quarters of 2012, and the fourth, third and second quarters of 2011, respectively. |
(4) | Represents the economic capital assigned to All Other as well as the remaining portion of equity not specifically allocated to the business segments. |
(5) | Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) of $526.4 billion, $519.2 billion, $495.3 billion, $489.5 billion and $502.3 billion at June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 34 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||
Equity Investments | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Global Principal Investments Exposures | Equity Investment Income | |||||||||||||||||||||||
June 30, 2012 | March 31 2012 | June 30, 2012 | ||||||||||||||||||||||
Book Value | Unfunded Commitments | Total | Total | Three Months Ended | Six Months Ended | |||||||||||||||||||
Global Principal Investments: | ||||||||||||||||||||||||
Private Equity Investments | $ | 1,236 | $ | 75 | $ | 1,311 | $ | 1,583 | $ | (101 | ) | $ | 67 | |||||||||||
Global Real Estate | 673 | 60 | 733 | 825 | — | 47 | ||||||||||||||||||
Global Strategic Capital | 1,365 | 138 | 1,503 | 1,684 | (19 | ) | 96 | |||||||||||||||||
Legacy/Other Investments | 849 | 9 | 858 | 1,062 | (17 | ) | 56 | |||||||||||||||||
Total Global Principal Investments | $ | 4,123 | $ | 282 | $ | 4,405 | $ | 5,154 | $ | (137 | ) | $ | 266 | |||||||||||
Components of Equity Investment Income | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | |||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||||||
Global Principal Investments | $ | 266 | $ | 1,768 | $ | (137 | ) | $ | 403 | $ | 212 | $ | (1,580 | ) | $ | 401 | ||||||||||||
Strategic and other investments | 88 | 786 | 74 | 14 | 2,897 | 2,960 | 738 | |||||||||||||||||||||
Total equity investment income (loss) included in All Other | 354 | 2,554 | (63 | ) | 417 | 3,109 | 1,380 | 1,139 | ||||||||||||||||||||
Total equity investment income included in the business segments | 779 | 133 | 431 | 348 | 118 | 66 | 73 | |||||||||||||||||||||
Total consolidated equity investment income | $ | 1,133 | $ | 2,687 | $ | 368 | $ | 765 | $ | 3,227 | $ | 1,446 | $ | 1,212 | ||||||||||||||
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 35 |
Bank of America Corporation and Subsidiaries | |||||||||||
Outstanding Loans and Leases | |||||||||||
(Dollars in millions) | |||||||||||
June 30 2012 | March 31 2012 | June 30 2011 | |||||||||
Consumer | |||||||||||
Residential mortgage (1) | $ | 252,635 | $ | 256,431 | $ | 266,333 | |||||
Home equity | 118,011 | 121,246 | 130,654 | ||||||||
Discontinued real estate (2) | 10,059 | 10,453 | 12,003 | ||||||||
U.S. credit card | 94,291 | 96,433 | 104,659 | ||||||||
Non-U.S. credit card | 13,431 | 13,914 | 26,037 | ||||||||
Direct/Indirect consumer (3) | 83,164 | 86,128 | 90,258 | ||||||||
Other consumer (4) | 2,568 | 2,607 | 2,762 | ||||||||
Total consumer loans excluding loans accounted for under the fair value option | 574,159 | 587,212 | 632,706 | ||||||||
Consumer loans accounted for under the fair value option (5) | 1,172 | 2,204 | 5,194 | ||||||||
Total consumer | 575,331 | 589,416 | 637,900 | ||||||||
Commercial | |||||||||||
U.S. commercial (6) | 197,718 | 193,684 | 190,606 | ||||||||
Commercial real estate (7) | 36,535 | 38,049 | 44,028 | ||||||||
Commercial lease financing | 21,692 | 21,556 | 21,391 | ||||||||
Non-U.S. commercial | 53,850 | 52,601 | 42,929 | ||||||||
Total commercial loans excluding loans accounted for under the option | 309,795 | 305,890 | 298,954 | ||||||||
Commercial loans accounted for under the fair value option (5) | 7,189 | 6,988 | 4,403 | ||||||||
Total commercial | 316,984 | 312,878 | 303,357 | ||||||||
Total loans and leases | $ | 892,315 | $ | 902,294 | $ | 941,257 | |||||
(1) | Includes non-U.S. residential mortgages of $92 million, $87 million and $90 million at June 30, 2012, March 31, 2012 and June 30, 2011. |
(2) | Includes $9.0 billion, $9.3 billion and $10.7 billion of pay option loans, and $1.1 billion, $1.1 billion and $1.3 billion of subprime loans at June 30, 2012, March 31, 2012 and June 30, 2011. The Corporation no longer originates these products. |
(3) | Includes dealer financial services loans of $36.7 billion, $40.2 billion and $42.1 billion, consumer lending loans of $6.3 billion, $7.1 billion and $9.9 billion, U.S. securities-based lending margin loans of $25.7 billion, $24.0 billion and $21.3 billion, student loans of $5.4 billion, $5.7 billion and $6.3 billion, non-U.S. consumer loans of $7.8 billion, $7.6 billion and $8.7 billion, and other consumer loans of $1.3 billion, $1.5 billion and $2.0 billion at June 30, 2012, March 31, 2012 and June 30, 2011. |
(4) | Includes consumer finance loans of $1.5 billion, $1.6 billion and $1.8 billion, other non-U.S. consumer loans of $908 million, $951 million and $866 million, and consumer overdrafts of $127 million, $58 million and $104 million at June 30, 2012, March 31, 2012 and June 30, 2011. |
(5) | Consumer loans are accounted for under the fair value option and include residential mortgages of $172 million, $881 million and $1.2 billion and discontinued real estate of $1.0 billion, $1.3 billion and $4.0 billion at June 30, 2012, March 31, 2012 and June 30, 2011 Commercial loans are accounted for under the fair value option and include U.S. commercial loans of $1.9 billion, $2.2 billion and $1.6 billion, non-U.S. commercial loans of $5.3 billion, $4.8 billion and $2.8 billion, and commercial real estate loans of $11 million at June 30, 2011. |
(6) | Includes U.S. small business commercial loans, including card related products, of $12.8 billion, $13.0 billion and $13.9 billion at June 30, 2012, March 31, 2012 and June 30, 2011. |
(7) | Includes U.S. commercial real estate loans of $35.0 billion, $36.3 billion and $41.7 billion, and non-U.S. commercial real estate loans of $1.5 billion, $1.7 billion and $2.3 billion at June 30, 2012, March 31, 2012 and June 30, 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. | 36 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Quarterly Average Loans and Leases by Business Segment | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Second Quarter 2012 | ||||||||||||||||||||||||||||
Total Corporation | Consumer & Business Banking | Consumer Real Estate Services | Global Banking | Global Markets | GWIM | All Other | ||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Residential mortgage | $ | 255,349 | $ | — | $ | 211 | $ | — | $ | 101 | $ | 37,718 | $ | 217,319 | ||||||||||||||
Home equity | 119,657 | — | 105,503 | — | 1 | 13,936 | 217 | |||||||||||||||||||||
Discontinued real estate | 11,144 | — | 901 | — | — | — | 10,243 | |||||||||||||||||||||
U.S. credit card | 95,018 | 95,018 | — | — | — | — | — | |||||||||||||||||||||
Non-U.S. credit card | 13,641 | — | — | — | — | — | 13,641 | |||||||||||||||||||||
Direct/Indirect consumer | 84,198 | 6,777 | 85 | 37,834 | 29 | 33,858 | 5,615 | |||||||||||||||||||||
Other consumer | 2,565 | 584 | — | 7 | — | 8 | 1,966 | |||||||||||||||||||||
Total consumer | 581,572 | 102,379 | 106,700 | 37,841 | 131 | 85,520 | 249,001 | |||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
U.S. commercial | 199,644 | 32,182 | 24 | 125,424 | 18,460 | 16,966 | 6,588 | |||||||||||||||||||||
Commercial real estate | 37,627 | 2,296 | 1 | 32,335 | 180 | 1,531 | 1,284 | |||||||||||||||||||||
Commercial lease financing | 21,446 | — | — | 23,123 | — | 4 | (1,681 | ) | ||||||||||||||||||||
Non-U.S. commercial | 59,209 | 15 | — | 49,089 | 7,875 | 81 | 2,149 | |||||||||||||||||||||
Total commercial | 317,926 | 34,493 | 25 | 229,971 | 26,515 | 18,582 | 8,340 | |||||||||||||||||||||
Total loans and leases | $ | 899,498 | $ | 136,872 | $ | 106,725 | $ | 267,812 | $ | 26,646 | $ | 104,102 | $ | 257,341 | ||||||||||||||
First Quarter 2012 | ||||||||||||||||||||||||||||
Total Corporation | Consumer & Business Banking | Consumer Real Estate Services | Global Banking | Global Markets | GWIM | All Other | ||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Residential mortgage | $ | 260,573 | $ | — | $ | 949 | $ | — | $ | 95 | $ | 37,201 | $ | 222,328 | ||||||||||||||
Home equity | 122,933 | — | 108,335 | — | — | 14,372 | 226 | |||||||||||||||||||||
Discontinued real estate | 12,082 | — | 1,304 | — | — | — | 10,778 | |||||||||||||||||||||
U.S. credit card | 98,334 | 98,334 | — | — | — | — | — | |||||||||||||||||||||
Non-U.S. credit card | 14,151 | — | — | — | — | — | 14,151 | |||||||||||||||||||||
Direct/Indirect consumer | 88,321 | 7,648 | 89 | 42,040 | 5 | 32,652 | 5,887 | |||||||||||||||||||||
Other consumer | 2,617 | 527 | — | 6 | — | 10 | 2,074 | |||||||||||||||||||||
Total consumer | 599,011 | 106,509 | 110,677 | 42,046 | 100 | 84,235 | 255,444 | |||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
U.S. commercial | 195,111 | 32,702 | 77 | 128,864 | 11,973 | 17,108 | 4,387 | |||||||||||||||||||||
Commercial real estate | 39,190 | 2,353 | 1 | 33,651 | 185 | 1,551 | 1,449 | |||||||||||||||||||||
Commercial lease financing | 21,679 | — | — | 23,387 | — | 4 | (1,712 | ) | ||||||||||||||||||||
Non-U.S. commercial | 58,731 | 14 | — | 49,126 | 4,909 | 138 | 4,544 | |||||||||||||||||||||
Total commercial | 314,711 | 35,069 | 78 | 235,028 | 17,067 | 18,801 | 8,668 | |||||||||||||||||||||
Total loans and leases | $ | 913,722 | $ | 141,578 | $ | 110,755 | $ | 277,074 | $ | 17,167 | $ | 103,036 | $ | 264,112 | ||||||||||||||
Second Quarter 2011 | ||||||||||||||||||||||||||||
Total Corporation | Consumer & Business Banking | Consumer Real Estate Services | Global Banking | Global Markets | GWIM | All Other | ||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Residential mortgage | $ | 265,420 | $ | — | $ | 1,167 | $ | — | $ | 101 | $ | 36,367 | $ | 227,785 | ||||||||||||||
Home equity | 131,786 | — | 115,250 | — | — | 15,248 | 1,288 | |||||||||||||||||||||
Discontinued real estate | 15,997 | — | 3,548 | — | — | 9 | 12,440 | |||||||||||||||||||||
U.S. credit card | 106,164 | 106,164 | — | — | — | — | — | |||||||||||||||||||||
Non-U.S. credit card | 27,259 | — | — | — | — | — | 27,259 | |||||||||||||||||||||
Direct/Indirect consumer | 89,403 | 10,565 | 94 | 41,048 | 559 | 30,231 | 6,906 | |||||||||||||||||||||
Other consumer | 2,745 | 1,691 | — | 24 | — | 9 | 1,021 | |||||||||||||||||||||
Total consumer | 638,774 | 118,420 | 120,059 | 41,072 | 660 | 81,864 | 276,699 | |||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
U.S. commercial | 190,479 | 34,118 | 1,619 | 118,172 | 8,873 | 18,322 | 9,375 | |||||||||||||||||||||
Commercial real estate | 45,762 | 2,568 | 5 | 38,770 | 445 | 1,792 | 2,182 | |||||||||||||||||||||
Commercial lease financing | 21,284 | — | — | 23,041 | 1 | 34 | (1,792 | ) | ||||||||||||||||||||
Non-U.S. commercial | 42,214 | 16 | — | 39,089 | 1,544 | 189 | 1,376 | |||||||||||||||||||||
Total commercial | 299,739 | 36,702 | 1,624 | 219,072 | 10,863 | 20,337 | 11,141 | |||||||||||||||||||||
Total loans and leases | $ | 938,513 | $ | 155,122 | $ | 121,683 | $ | 260,144 | $ | 11,523 | $ | 102,201 | $ | 287,840 | ||||||||||||||
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 37 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||
Commercial Credit Exposure by Industry (1, 2, 3) | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Commercial Utilized | Total Commercial Committed | ||||||||||||||||||||||
June 30 2012 | March 31 2012 | June 30 2011 | June 30 2012 | March 31 2012 | June 30 2011 | ||||||||||||||||||
Diversified financials | $ | 60,797 | $ | 56,119 | $ | 51,889 | $ | 93,272 | $ | 87,171 | $ | 79,056 | |||||||||||
Real estate (4) | 44,420 | 45,779 | 53,597 | 59,886 | 60,770 | 67,093 | |||||||||||||||||
Government and public education | 41,816 | 41,981 | 42,153 | 53,991 | 55,126 | 58,027 | |||||||||||||||||
Capital goods | 22,850 | 23,127 | 23,880 | 45,987 | 49,730 | 46,822 | |||||||||||||||||
Healthcare equipment and services | 30,171 | 30,636 | 28,757 | 45,385 | 47,590 | 45,608 | |||||||||||||||||
Retailing | 26,861 | 25,663 | 25,530 | 45,159 | 45,088 | 45,604 | |||||||||||||||||
Banks | 34,209 | 30,562 | 32,005 | 38,310 | 34,433 | 35,461 | |||||||||||||||||
Materials | 19,236 | 19,875 | 17,696 | 36,710 | 37,863 | 35,831 | |||||||||||||||||
Consumer services | 22,672 | 24,111 | 23,195 | 35,795 | 37,799 | 37,735 | |||||||||||||||||
Energy | 14,030 | 15,569 | 12,661 | 31,487 | 32,476 | 29,817 | |||||||||||||||||
Food, beverage and tobacco | 14,441 | 14,817 | 14,697 | 31,019 | 29,296 | 28,920 | |||||||||||||||||
Commercial services and supplies | 18,388 | 18,431 | 20,740 | 29,564 | 29,290 | 31,344 | |||||||||||||||||
Utilities | 8,675 | 7,938 | 6,407 | 23,444 | 24,229 | 24,697 | |||||||||||||||||
Media | 11,099 | 11,037 | 10,730 | 20,215 | 21,091 | 20,461 | |||||||||||||||||
Transportation | 12,784 | 12,625 | 11,778 | 19,505 | 19,503 | 18,129 | |||||||||||||||||
Individuals and trusts | 13,937 | 14,483 | 16,249 | 17,298 | 18,239 | 20,498 | |||||||||||||||||
Insurance, including monolines | 8,832 | 8,998 | 16,306 | 15,312 | 15,344 | 23,059 | |||||||||||||||||
Pharmaceuticals and biotechnology | 4,457 | 4,463 | 4,998 | 11,555 | 11,678 | 12,152 | |||||||||||||||||
Technology hardware and equipment | 4,643 | 4,680 | 4,557 | 10,694 | 10,954 | 11,005 | |||||||||||||||||
Religious and social organizations | 7,842 | 7,989 | 8,087 | 10,361 | 10,868 | 10,319 | |||||||||||||||||
Software and services | 4,464 | 4,517 | 3,480 | 10,134 | 10,676 | 8,995 | |||||||||||||||||
Telecommunication services | 3,792 | 3,936 | 3,890 | 9,756 | 9,977 | 10,096 | |||||||||||||||||
Consumer durables and apparel | 3,997 | 4,370 | 4,329 | 8,192 | 8,726 | 8,938 | |||||||||||||||||
Automobiles and components | 3,277 | 2,951 | 2,466 | 7,583 | 7,363 | 6,391 | |||||||||||||||||
Food and staples retailing | 3,191 | 3,226 | 3,123 | 6,470 | 6,470 | 6,521 | |||||||||||||||||
Other | 4,558 | 6,345 | 3,521 | 7,338 | 8,954 | 7,191 | |||||||||||||||||
Total commercial credit exposure by industry | $ | 445,439 | $ | 444,228 | $ | 446,721 | $ | 724,422 | $ | 730,704 | $ | 729,770 | |||||||||||
Net credit default protection purchased on total commitments (5) | $ | (18,697 | ) | $ | (19,880 | ) | $ | (19,861 | ) | ||||||||||||||
(1) | Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held-for-sale, commercial letters of credit, bankers’ acceptances, securitized assets, foreclosed properties and other collateral acquired. Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by the amount of cash collateral applied of $59.3 billion, $60.6 billion and $58.8 billion at June 30, 2012, March 31, 2012 and June 30, 2011. Not reflected in utilized and committed exposure is additional derivative collateral held of $17.1 billion, $16.7 billion and $15.7 billion which consists primarily of other marketable securities at June 30, 2012, March 31, 2012 and June 30, 2011. |
(2) | Total commercial utilized and total commercial committed exposure includes loans and letters of credit measured at fair value and are comprised of loans outstanding of $7.2 billion, $7.0 billion and $4.4 billion and issued letters of credit at notional value of $748 million, $1.0 billion and $1.2 billion at June 30, 2012, March 31, 2012 and June 30, 2011. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $21.1 billion, $23.0 billion and $26.8 billion at June 30, 2012, March 31, 2012 and June 30, 2011. |
(3) | Includes U.S. small business commercial exposure. |
(4) | Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based upon the borrowers’ or counterparties’ primary business activity using operating cash flows and primary source of repayment as key factors. |
(5) | Represents net notional credit protection purchased. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 38 |
Bank of America Corporation and Subsidiaries | ||||||
Net Credit Default Protection by Maturity Profile (1) | ||||||
June 30 2012 | March 31 2012 | |||||
Less than or equal to one year | 14 | % | 16 | % | ||
Greater than one year and less than or equal to five years | 80 | 78 | ||||
Greater than five years | 6 | 6 | ||||
Total net credit default protection | 100 | % | 100 | % |
(1) | To mitigate the cost of purchasing credit protection, credit exposure can be added by selling credit protection. The distribution of maturities for net credit default protection purchased is shown above. |
Net Credit Default Protection by Credit Exposure Debt Rating (1) | ||||||||||||||
(Dollars in millions) | ||||||||||||||
June 30, 2012 | March 31, 2012 | |||||||||||||
Ratings (2, 3) | Net Notional | Percent | Net Notional | Percent | ||||||||||
AAA | $ | (209 | ) | 1.1 | % | $ | (201 | ) | 1.0 | % | ||||
AA | (707 | ) | 3.8 | (583 | ) | 2.9 | ||||||||
A | (8,051 | ) | 43.1 | (8,667 | ) | 43.6 | ||||||||
BBB | (6,972 | ) | 37.3 | (7,387 | ) | 37.2 | ||||||||
BB | (1,106 | ) | 5.9 | (965 | ) | 4.9 | ||||||||
B | (1,211 | ) | 6.5 | (1,386 | ) | 7.0 | ||||||||
CCC and below | (494 | ) | 2.6 | (543 | ) | 2.7 | ||||||||
NR (4) | 53 | (0.3 | ) | (148 | ) | 0.7 | ||||||||
Total net credit default protection | $ | (18,697 | ) | 100.0 | % | $ | (19,880 | ) | 100.0 | % |
(1) | To mitigate the cost of purchasing credit protection, credit exposure can be added by selling credit protection. The distribution of debt rating for net notional credit default protection purchased is shown as a negative and the net notional credit protection sold is shown as a positive amount. |
(2) | Ratings are refreshed on a quarterly basis. |
(3) | Ratings of BBB- or higher are considered to meet the definition of investment-grade. |
(4) | In addition to names which have not been rated, “NR” includes $0 and $9 million in net credit default swap index positions at June 30, 2012 and March 31, 2012. While index positions are principally investment grade, credit default swaps indices include names in and across each of the ratings categories. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 39 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||
Selected Emerging Markets (1) | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Loans and Leases, and Loan Commitments | Other Financing (2) | Net Counterparty Exposure (3) | Securities / Other Investments (4) | Total Cross-border Exposure (5) | Local Country Exposure Net of Local Liabilities (6) | Total Selected Emerging Market Exposure at June 30, 2012 | Increase (Decrease) from March 31, 2012 | ||||||||||||||||||||||||
Region/Country | ||||||||||||||||||||||||||||||||
Asia Pacific | ||||||||||||||||||||||||||||||||
India | $ | 4,615 | $ | 1,156 | $ | 651 | $ | 2,756 | $ | 9,178 | $ | 328 | $ | 9,506 | $ | 429 | ||||||||||||||||
China (7) | 4,213 | 206 | 913 | 2,063 | 7,395 | 314 | 7,709 | 538 | ||||||||||||||||||||||||
South Korea | 1,182 | 1,028 | 437 | 2,824 | 5,471 | 1,800 | 7,271 | (564 | ) | |||||||||||||||||||||||
Hong Kong | 533 | 545 | 346 | 857 | 2,281 | 1,806 | 4,087 | 325 | ||||||||||||||||||||||||
Singapore | 597 | 134 | 463 | 1,598 | 2,792 | — | 2,792 | (77 | ) | |||||||||||||||||||||||
Taiwan | 523 | 21 | 142 | 940 | 1,626 | 780 | 2,406 | 53 | ||||||||||||||||||||||||
Thailand | 81 | 10 | 48 | 858 | 997 | — | 997 | (194 | ) | |||||||||||||||||||||||
Other Asia Pacific (8) | 764 | 42 | 175 | 700 | 1,681 | — | 1,681 | (44 | ) | |||||||||||||||||||||||
Total Asia Pacific | $ | 12,508 | $ | 3,142 | $ | 3,175 | $ | 12,596 | $ | 31,421 | $ | 5,028 | $ | 36,449 | $ | 466 | ||||||||||||||||
Latin America | ||||||||||||||||||||||||||||||||
Brazil | $ | 2,073 | $ | 138 | $ | 380 | $ | 2,496 | $ | 5,087 | $ | 2,363 | $ | 7,450 | $ | 172 | ||||||||||||||||
Mexico | 2,063 | 383 | 332 | 723 | 3,501 | — | 3,501 | 240 | ||||||||||||||||||||||||
Chile | 1,078 | 54 | 258 | 16 | 1,406 | 22 | 1,428 | 89 | ||||||||||||||||||||||||
Other Latin America (8) | 575 | 411 | 31 | 301 | 1,318 | 156 | 1,474 | (52 | ) | |||||||||||||||||||||||
Total Latin America | $ | 5,789 | $ | 986 | $ | 1,001 | $ | 3,536 | $ | 11,312 | $ | 2,541 | $ | 13,853 | $ | 449 | ||||||||||||||||
Middle East and Africa | ||||||||||||||||||||||||||||||||
United Arab Emirates | $ | 2,195 | $ | 46 | $ | 170 | $ | 66 | $ | 2,477 | $ | — | $ | 2,477 | $ | 525 | ||||||||||||||||
South Africa | 505 | 48 | 158 | 9 | 720 | — | 720 | 85 | ||||||||||||||||||||||||
Saudi Arabia | 167 | 72 | 445 | 4 | 688 | 22 | 710 | (14 | ) | |||||||||||||||||||||||
Other Middle East and Africa (8) | 677 | 109 | 104 | 206 | 1,096 | 8 | 1,104 | (144 | ) | |||||||||||||||||||||||
Total Middle East and Africa | $ | 3,544 | $ | 275 | $ | 877 | $ | 285 | $ | 4,981 | $ | 30 | $ | 5,011 | $ | 452 | ||||||||||||||||
Central and Eastern Europe | ||||||||||||||||||||||||||||||||
Russian Federation | $ | 1,999 | $ | 326 | $ | 30 | $ | 160 | $ | 2,515 | $ | 11 | $ | 2,526 | $ | (13 | ) | |||||||||||||||
Turkey | 1,190 | 553 | 34 | 449 | 2,226 | 89 | 2,315 | 649 | ||||||||||||||||||||||||
Other Central and Eastern Europe (8) | 103 | 229 | 163 | 404 | 899 | — | 899 | 215 | ||||||||||||||||||||||||
Total Central and Eastern Europe | $ | 3,292 | $ | 1,108 | $ | 227 | $ | 1,013 | $ | 5,640 | $ | 100 | $ | 5,740 | $ | 851 | ||||||||||||||||
Total emerging market exposure | $ | 25,133 | $ | 5,511 | $ | 5,280 | $ | 17,430 | $ | 53,354 | $ | 7,699 | $ | 61,053 | $ | 2,218 |
(1) | There is no generally accepted definition of emerging markets. The definition that we use includes all countries in Asia Pacific excluding Japan, Australia and New Zealand; all countries in Latin America excluding Cayman Islands and Bermuda; all countries in Middle East and Africa; and all countries in Central and Eastern Europe. At June 30, 2012 and March 31, 2012, there was $2.9 billion and $2.6 billion in emerging market exposure accounted for under the fair value option. |
(2) | Includes acceptances, due froms, standby letters of credit, commercial letters of credit and formal guarantees. |
(3) | Net counterparty exposure includes the fair value of derivatives and secured financing transactions. Derivatives have been reduced by $1.4 billion in collateral, predominantly in cash, pledged under legally enforceable netting agreements. Secured financing transactions have been reduced by eligible cash or securities pledged. The notional amount of repurchase transactions was $5.0 billion at June 30, 2012. |
(4) | Securities exposures are reduced by hedges and short positions on a single-name basis to but not below zero. |
(5) | Cross-border exposure includes amounts payable to the Corporation by borrowers or counterparties with a country of residence other than the one in which the credit is booked, regardless of the currency in which the claim is denominated, consistent with FFIEC reporting requirements. |
(6) | Local country exposure includes amounts payable to the Corporation by borrowers with a country of residence in which the credit is booked regardless of the currency in which the claim is denominated. Local funding or liabilities are subtracted from local exposures consistent with FFIEC reporting requirements. Total amount of available local liabilities funding local country exposure was $17.3 billion and $16.8 billion at June 30, 2012 and March 31, 2012. Local liabilities at June 30, 2012 in Asia Pacific, Latin America, and Middle East and Africa were $15.0 billion, $1.9 billion and $318 million, respectively, of which $6.3 billion was in Singapore, $2.6 billion in China, $1.6 billion in Hong Kong, $1.4 billion in both India and Mexico, $854 million in Korea, $653 million in Thailand, $593 million in Malaysia, $586 million in Taiwan and $545 million in Brazil. There were no other countries with available local liabilities funding local country exposure greater than $500 million. |
(7) | Securities/other investments includes investment of $716 million in China Construction Bank. |
(8) | No country included in the Other Asia Pacific, Other Latin America, Other Middle East and Africa, and Other Central and Eastern Europe had total non-U.S. exposure of more than $500 million. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 40 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||
Selected European Countries | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Funded Loans and Loan Equivalents (1) | Unfunded Loan Commitments | Net Counterparty Exposure (2) | Securities/ Other Investments (3) | Country Exposure at June 30, 2012 | Hedges and Credit Default Protection (4) | Net Country Exposure at June 30, 2012 (5) | Increase (Decrease) from March 31, 2012 | ||||||||||||||||||||||||
Greece | ||||||||||||||||||||||||||||||||
Sovereign | $ | — | $ | — | $ | — | $ | 6 | $ | 6 | $ | — | $ | 6 | $ | 7 | ||||||||||||||||
Financial Institutions | — | — | 10 | 12 | 22 | (4 | ) | 18 | 3 | |||||||||||||||||||||||
Corporates | 311 | 106 | 21 | 30 | 468 | (1 | ) | 467 | 5 | |||||||||||||||||||||||
Total Greece | $ | 311 | $ | 106 | $ | 31 | $ | 48 | $ | 496 | $ | (5 | ) | $ | 491 | $ | 15 | |||||||||||||||
Ireland | ||||||||||||||||||||||||||||||||
Sovereign | $ | 17 | $ | — | $ | 17 | $ | 8 | $ | 42 | $ | — | $ | 42 | $ | (3 | ) | |||||||||||||||
Financial Institutions | 121 | 328 | 157 | 395 | 1,001 | (14 | ) | 987 | 128 | |||||||||||||||||||||||
Corporates | 1,054 | 291 | 74 | 31 | 1,450 | (19 | ) | 1,431 | 242 | |||||||||||||||||||||||
Total Ireland | $ | 1,192 | $ | 619 | $ | 248 | $ | 434 | $ | 2,493 | $ | (33 | ) | $ | 2,460 | $ | 367 | |||||||||||||||
Italy | ||||||||||||||||||||||||||||||||
Sovereign | $ | — | $ | — | $ | 1,656 | $ | 526 | $ | 2,182 | $ | (1,701 | ) | $ | 481 | $ | (634 | ) | ||||||||||||||
Financial Institutions | 1,826 | 211 | 111 | 201 | 2,349 | (559 | ) | 1,790 | 392 | |||||||||||||||||||||||
Corporates | 1,844 | 1,512 | 173 | 175 | 3,704 | (1,221 | ) | 2,483 | (12 | ) | ||||||||||||||||||||||
Total Italy | $ | 3,670 | $ | 1,723 | $ | 1,940 | $ | 902 | $ | 8,235 | $ | (3,481 | ) | $ | 4,754 | $ | (254 | ) | ||||||||||||||
Portugal | ||||||||||||||||||||||||||||||||
Sovereign | $ | — | $ | — | $ | 44 | $ | — | $ | 44 | $ | (65 | ) | $ | (21 | ) | $ | (19 | ) | |||||||||||||
Financial Institutions | 15 | — | 13 | 60 | 88 | (13 | ) | 75 | 118 | |||||||||||||||||||||||
Corporates | 148 | 71 | 15 | 46 | 280 | (172 | ) | 108 | (13 | ) | ||||||||||||||||||||||
Total Portugal | $ | 163 | $ | 71 | $ | 72 | $ | 106 | $ | 412 | $ | (250 | ) | $ | 162 | $ | 86 | |||||||||||||||
Spain | ||||||||||||||||||||||||||||||||
Sovereign | $ | 36 | $ | 6 | $ | 28 | $ | 1 | $ | 71 | $ | (327 | ) | $ | (256 | ) | $ | (114 | ) | |||||||||||||
Financial Institutions | 49 | 13 | 138 | 148 | 348 | (73 | ) | 275 | (324 | ) | ||||||||||||||||||||||
Corporates | 1,609 | 632 | 153 | 63 | 2,457 | (746 | ) | 1,711 | 69 | |||||||||||||||||||||||
Total Spain | $ | 1,694 | $ | 651 | $ | 319 | $ | 212 | $ | 2,876 | $ | (1,146 | ) | $ | 1,730 | $ | (369 | ) | ||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Sovereign | $ | 53 | $ | 6 | $ | 1,745 | $ | 541 | $ | 2,345 | $ | (2,093 | ) | $ | 252 | $ | (763 | ) | ||||||||||||||
Financial Institutions | 2,011 | 552 | 429 | 816 | 3,808 | (663 | ) | 3,145 | 317 | |||||||||||||||||||||||
Corporates | 4,966 | 2,612 | 436 | 345 | 8,359 | (2,159 | ) | 6,200 | 291 | |||||||||||||||||||||||
Total selected European exposure | $ | 7,030 | $ | 3,170 | $ | 2,610 | $ | 1,702 | $ | 14,512 | $ | (4,915 | ) | $ | 9,597 | $ | (155 | ) |
(1) | Includes loans, leases, overdrafts, acceptances, due froms, standby letters of credit, commercial letters of credit and formal guarantees, which have not been reduced by collateral, hedges or credit default protection. Funded loans are reported prior to any impairment provision. |
(2) | Net counterparty exposure includes the fair value of derivatives and secured financing transactions. Derivatives have been reduced by $3.7 billion in collateral, predominantly in cash, pledged under legally enforceable netting agreements. Secured financing transactions have been reduced by eligible cash or securities pledged. The notional amount of the repurchase transactions was $732 million at June 30, 2012. Counterparty exposure has not been reduced by hedges or credit default protection. |
(3) | Securities exposures are reduced by hedges and short positions on a single-name basis to but not below zero. |
(4) | Represents unapplied net credit default protection purchased, including $(2.8) billion in net credit default protection purchased to hedge loans and securities, $(2.1) billion in additional credit default protection to hedge derivative assets and $(49) million in other short positions. Based on the credit default protection notional amount assuming zero recovery adjusted for any fair value receivable or payable. |
(5) | Represents country exposure less the fair value of hedges and credit default protection. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 41 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||
Nonperforming Loans, Leases and Foreclosed Properties | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
June 30 2012 | March 31 2012 | December 31 2011 | September 30 2011 | June 30 2011 | ||||||||||||||||
Residential mortgage | $ | 14,621 | $ | 15,049 | $ | 15,970 | $ | 16,430 | $ | 16,726 | ||||||||||
Home equity (1) | 4,207 | 4,360 | 2,453 | 2,333 | 2,345 | |||||||||||||||
Discontinued real estate | 257 | 269 | 290 | 308 | 324 | |||||||||||||||
Direct/Indirect consumer | 35 | 41 | 40 | 52 | 58 | |||||||||||||||
Other consumer | 1 | 5 | 15 | 24 | 25 | |||||||||||||||
Total consumer | 19,121 | 19,724 | 18,768 | 19,147 | 19,478 | |||||||||||||||
U.S. commercial | 1,841 | 2,048 | 2,174 | 2,518 | 2,767 | |||||||||||||||
Commercial real estate | 2,498 | 3,404 | 3,880 | 4,474 | 5,051 | |||||||||||||||
Commercial lease financing | 39 | 38 | 26 | 23 | 23 | |||||||||||||||
Non-U.S. commercial | 194 | 140 | 143 | 145 | 108 | |||||||||||||||
4,572 | 5,630 | 6,223 | 7,160 | 7,949 | ||||||||||||||||
U.S. small business commercial | 143 | 121 | 114 | 139 | 156 | |||||||||||||||
Total commercial | 4,715 | 5,751 | 6,337 | 7,299 | 8,105 | |||||||||||||||
Total nonperforming loans and leases | 23,836 | 25,475 | 25,105 | 26,446 | 27,583 | |||||||||||||||
Foreclosed properties | 1,541 | 2,315 | 2,603 | 2,613 | 2,475 | |||||||||||||||
Total nonperforming loans, leases and foreclosed properties (2, 3, 4) | $ | 25,377 | $ | 27,790 | $ | 27,708 | $ | 29,059 | $ | 30,058 | ||||||||||
Fully-insured home loans past due 90 days or more and still accruing | $ | 22,287 | $ | 21,176 | $ | 21,164 | $ | 20,299 | $ | 20,047 | ||||||||||
Consumer credit card past due 90 days or more and still accruing | 1,847 | 2,160 | 2,412 | 2,544 | 3,020 | |||||||||||||||
Other loans past due 90 days or more and still accruing | 865 | 984 | 1,060 | 1,163 | 1,223 | |||||||||||||||
Total loans past due 90 days or more and still accruing (3, 5, 6) | $ | 24,999 | $ | 24,320 | $ | 24,636 | $ | 24,006 | $ | 24,290 | ||||||||||
Nonperforming loans, leases and foreclosed properties/Total assets (7) | 1.18 | % | 1.28 | % | 1.31 | % | 1.32 | % | 1.33 | % | ||||||||||
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties (7) | 2.87 | 3.10 | 3.01 | 3.15 | 3.22 | |||||||||||||||
Nonperforming loans and leases/Total loans and leases (7) | 2.70 | 2.85 | 2.74 | 2.87 | 2.96 | |||||||||||||||
Commercial utilized reservable criticized exposure (8) | $ | 20,442 | $ | 24,457 | $ | 27,247 | $ | 30,901 | $ | 35,110 | ||||||||||
Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure (8) | 5.64 | % | 6.77 | % | 7.41 | % | 8.51 | % | 9.73 | % | ||||||||||
Total commercial utilized criticized exposure/Commercial utilized exposure (8) | 5.92 | 6.86 | 7.47 | 8.35 | 10.80 | |||||||||||||||
(1) | During the first quarter of 2012, the bank regulatory agencies jointly issued interagency supervisory guidance on nonaccrual status for junior-lien consumer real estate loans. In accordance with this regulatory interagency guidance, we classify junior-lien home equity loans as nonperforming when the first-lien loan becomes 90 days past due even if the junior-lien loan is performing. As a result of this change, we reclassified $1.9 billion of performing home equity loans to nonperforming at March 31, 2012. Prior period amounts have not been restated. |
(2) | 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. |
(3) | Balances do not include purchased credit-impaired loans even though the customer may be contractually past due. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan. |
(4) Balances do not include the following: | June 30 2012 | March 31 2012 | December 31 2011 | September 30 2011 | June 30 2011 | |||||||||||||||
Nonperforming loans held-for-sale | $ | 1,363 | $ | 1,491 | $ | 1,730 | $ | 1,750 | $ | 2,059 | ||||||||||
Nonperforming loans accounted for under the fair value option | 453 | 798 | 786 | 2,032 | 2,389 | |||||||||||||||
Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010 | 461 | 459 | 477 | 474 | 465 |
(5) | Balances do not include loans held-for-sale past due 90 days or more and still accruing of $31 million, $49 million, $41 million, $67 million and $19 million at June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively. At June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, there were no loans accounted for under the fair value option past due 90 days or more and still accruing interest. |
(6) | These balances are excluded from total nonperforming loans, leases and foreclosed properties. |
(7) | Total assets and total loans and leases do not include loans accounted for under the fair value option of $8.4 billion, $9.2 billion, $8.8 billion, $11.2 billion and $9.6 billion at June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively. |
(8) | Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure excludes loans held-for-sale, exposure accounted for under the fair value option and other nonreservable exposure. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 42 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||
Nonperforming Loans, Leases and Foreclosed Properties Activity (1) | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||
Nonperforming Consumer Loans: | ||||||||||||||||||||
Balance, beginning of period | $ | 19,724 | $ | 18,768 | $ | 19,147 | $ | 19,478 | $ | 20,456 | ||||||||||
Additions to nonperforming loans: | ||||||||||||||||||||
New nonperforming loans | 3,259 | 3,308 | 3,757 | 4,036 | 3,803 | |||||||||||||||
Impact of regulatory interagency guidance (2) | — | 1,853 | — | — | — | |||||||||||||||
Reductions in nonperforming loans: | ||||||||||||||||||||
Paydowns | (858 | ) | (1,153 | ) | (803 | ) | (944 | ) | (792 | ) | ||||||||||
Returns to performing status (3) | (1,271 | ) | (913 | ) | (1,018 | ) | (1,072 | ) | (1,311 | ) | ||||||||||
Charge-offs (4) | (1,541 | ) | (1,737 | ) | (1,833 | ) | (1,972 | ) | (2,270 | ) | ||||||||||
Transfers to foreclosed properties | (192 | ) | (402 | ) | (482 | ) | (379 | ) | (408 | ) | ||||||||||
Total net additions/(reductions) to nonperforming loans | (603 | ) | 956 | (379 | ) | (331 | ) | (978 | ) | |||||||||||
Total nonperforming consumer loans, end of period | 19,121 | 19,724 | 18,768 | 19,147 | 19,478 | |||||||||||||||
Foreclosed properties | 1,108 | 1,805 | 1,991 | 1,892 | 1,797 | |||||||||||||||
Total nonperforming consumer loans and foreclosed properties, end of period | $ | 20,229 | $ | 21,529 | $ | 20,759 | $ | 21,039 | $ | 21,275 | ||||||||||
Nonperforming Commercial Loans and Leases (5): | ||||||||||||||||||||
Balance, beginning of period | $ | 5,751 | $ | 6,337 | $ | 7,299 | $ | 8,105 | $ | 9,131 | ||||||||||
Additions to nonperforming loans and leases: | ||||||||||||||||||||
New nonperforming loans and leases | 788 | 599 | 1,084 | 1,231 | 1,042 | |||||||||||||||
Advances | 14 | 24 | 20 | 18 | 52 | |||||||||||||||
Reductions in nonperforming loans and leases: | ||||||||||||||||||||
Paydowns | (806 | ) | (573 | ) | (949 | ) | (721 | ) | (1,023 | ) | ||||||||||
Sales | (392 | ) | (137 | ) | (211 | ) | (554 | ) | (141 | ) | ||||||||||
Return to performing status (6) | (152 | ) | (145 | ) | (358 | ) | (143 | ) | (362 | ) | ||||||||||
Charge-offs (7) | (379 | ) | (291 | ) | (386 | ) | (412 | ) | (290 | ) | ||||||||||
Transfers to foreclosed properties | (109 | ) | (63 | ) | (128 | ) | (205 | ) | (241 | ) | ||||||||||
Transfers to loans held-for-sale | — | — | (34 | ) | (20 | ) | (63 | ) | ||||||||||||
Total net reductions in nonperforming loans and leases | (1,036 | ) | (586 | ) | (962 | ) | (806 | ) | (1,026 | ) | ||||||||||
Total nonperforming commercial loans and leases, end of period | 4,715 | 5,751 | 6,337 | 7,299 | 8,105 | |||||||||||||||
Foreclosed properties | 433 | 510 | 612 | 721 | 678 | |||||||||||||||
Total nonperforming commercial loans, leases and foreclosed properties, end of period | $ | 5,148 | $ | 6,261 | $ | 6,949 | $ | 8,020 | $ | 8,783 | ||||||||||
(1) | For amounts excluded from nonperforming loans, leases and foreclosed properties, see footnotes to Nonperforming Loans, Leases and Foreclosed Properties table on page 42. |
(2) | During the first quarter of 2012, the bank regulatory agencies jointly issued interagency supervisory guidance on nonaccrual status for junior-lien consumer real estate loans. In accordance with this regulatory interagency guidance, beginning in the first quarter of 2012, we classify junior-lien home equity loans as nonperforming when the first-lien loan becomes 90 days past due even if the junior-lien loan is performing. As a result of this change, we reclassified $1.9 billion of performing home equity loans to nonperforming at March 31, 2012. Prior period amounts have not been restated. |
(3) | Consumer loans may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Certain troubled debt restructurings are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. |
(4) | Our policy is not to classify consumer credit card and consumer loans not secured by real estate as nonperforming; therefore, the charge-offs on these loans have no impact on nonperforming activity and accordingly are excluded from this table. |
(5) | Includes U.S. small business commercial activity. |
(6) | Commercial loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected or when the loan otherwise becomes well-secured and is in the process of collection. Troubled debt restructurings are generally classified as performing after a sustained period of demonstrated payment performance. |
(7) | Small business card loans are not classified as nonperforming; therefore, the charge-offs on these loans have no impact on nonperforming activity and accordingly are excluded from this table. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 43 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||
Quarterly Net Charge-offs and Net Charge-off Ratios (1) | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||
Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||||||||
Net Charge-offs | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||
Residential mortgage | $ | 734 | 1.16 | % | $ | 898 | 1.39 | % | $ | 834 | 1.25 | % | $ | 989 | 1.47 | % | $ | 1,104 | 1.67 | % | ||||||||||||||
Home equity | 892 | 3.00 | 957 | 3.13 | 939 | 2.95 | 1,092 | 3.35 | 1,263 | 3.84 | ||||||||||||||||||||||||
Discontinued real estate | 16 | 0.65 | 16 | 0.59 | 22 | 0.76 | 24 | 0.80 | 26 | 0.84 | ||||||||||||||||||||||||
U.S. credit card | 1,244 | 5.27 | 1,331 | 5.44 | 1,432 | 5.55 | 1,639 | 6.28 | 1,931 | 7.29 | ||||||||||||||||||||||||
Non-U.S. credit card | 135 | 3.97 | 203 | 5.78 | (36 | ) | (0.89 | ) | 374 | 5.83 | 429 | 6.31 | ||||||||||||||||||||||
Direct/Indirect consumer | 181 | 0.86 | 226 | 1.03 | 284 | 1.24 | 301 | 1.32 | 366 | 1.64 | ||||||||||||||||||||||||
Other consumer | 49 | 7.71 | 56 | 8.59 | 63 | 9.04 | 56 | 7.81 | 43 | 6.44 | ||||||||||||||||||||||||
Total consumer | 3,251 | 2.25 | 3,687 | 2.48 | 3,538 | 2.28 | 4,475 | 2.82 | 5,162 | 3.27 | ||||||||||||||||||||||||
U.S. Commercial (2) | 94 | 0.20 | 66 | 0.15 | 78 | 0.17 | 78 | 0.18 | 60 | 0.14 | ||||||||||||||||||||||||
Commercial real estate | 77 | 0.83 | 132 | 1.36 | 200 | 1.95 | 296 | 2.73 | 163 | 1.43 | ||||||||||||||||||||||||
Commercial lease financing | 14 | 0.25 | (9 | ) | (0.16 | ) | 32 | 0.59 | (1 | ) | (0.01 | ) | (8 | ) | (0.15 | ) | ||||||||||||||||||
Non-U.S. commercial | 7 | 0.06 | (5 | ) | (0.04 | ) | 18 | 0.15 | 18 | 0.15 | 13 | 0.13 | ||||||||||||||||||||||
192 | 0.26 | 184 | 0.25 | 328 | 0.44 | 391 | 0.54 | 228 | 0.32 | |||||||||||||||||||||||||
U.S. small business commercial | 183 | 5.74 | 185 | 5.63 | 188 | 5.55 | 220 | 6.36 | 275 | 7.78 | ||||||||||||||||||||||||
Total commercial | 375 | 0.49 | 369 | 0.48 | 516 | 0.66 | 611 | 0.81 | 503 | 0.68 | ||||||||||||||||||||||||
Total net charge-offs | $ | 3,626 | 1.64 | $ | 4,056 | 1.80 | $ | 4,054 | 1.74 | $ | 5,086 | 2.17 | $ | 5,665 | 2.44 | |||||||||||||||||||
By Business Segment | ||||||||||||||||||||||||||||||||||
Consumer & Business Banking | $ | 1,669 | 4.91 | % | $ | 1,766 | 5.02 | % | $ | 1,925 | 5.19 | % | $ | 2,179 | 5.71 | % | $ | 2,598 | 6.72 | % | ||||||||||||||
Consumer Real Estate Services | 845 | 3.21 | 915 | 3.39 | 894 | 3.14 | 1,036 | 3.58 | 1,213 | 4.16 | ||||||||||||||||||||||||
Global Banking | 159 | 0.24 | 171 | 0.25 | 304 | 0.45 | 374 | 0.56 | 184 | 0.29 | ||||||||||||||||||||||||
Global Markets | — | — | 7 | 0.17 | 10 | 0.26 | — | — | — | — | ||||||||||||||||||||||||
Global Wealth & Investment Management | 89 | 0.34 | 93 | 0.36 | 113 | 0.44 | 135 | 0.52 | 129 | 0.50 | ||||||||||||||||||||||||
All Other | 864 | 1.35 | 1,104 | 1.68 | 808 | 1.17 | 1,362 | 1.89 | 1,541 | 2.15 | ||||||||||||||||||||||||
Total net charge-offs | $ | 3,626 | 1.64 | $ | 4,056 | 1.80 | $ | 4,054 | 1.74 | $ | 5,086 | 2.17 | $ | 5,665 | 2.44 | |||||||||||||||||||
(1) | Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option during the period for each loan and lease category. |
(2) | Excludes U.S. small business commercial loans. |
Certain prior period amounts have been reclassified to conform to current period presentation.
![](https://capedge.com/proxy/8-K/0000070858-12-000302/qtrnco2q12.jpg)
This information is preliminary and based on company data available at the time of the presentation. | 44 |
Bank of America Corporation and Subsidiaries | |||||||||||||
Year-to-Date Net Charge-offs and Net Charge-off Ratios (1) | |||||||||||||
(Dollars in millions) | |||||||||||||
Six Months Ended June 30 | |||||||||||||
2012 | 2011 | ||||||||||||
Net Charge-offs | Amount | Percent | Amount | Percent | |||||||||
Residential mortgage | $ | 1,632 | 1.28 | % | $ | 2,009 | 1.54 | % | |||||
Home equity | 1,849 | 3.06 | 2,442 | 3.68 | |||||||||
Discontinued real estate | 32 | 0.62 | 46 | 0.73 | |||||||||
U.S. credit card | 2,575 | 5.36 | 4,205 | 7.85 | |||||||||
Non-U.S. credit card | 338 | 4.89 | 831 | 6.11 | |||||||||
Direct/Indirect consumer | 407 | 0.95 | 891 | 2.00 | |||||||||
Other consumer | 105 | 8.15 | 83 | 6.19 | |||||||||
Total consumer | 6,938 | 2.37 | 10,507 | 3.32 | |||||||||
U.S. Commercial (2) | 160 | 0.18 | 39 | 0.05 | |||||||||
Commercial real estate | 209 | 1.10 | 451 | 1.93 | |||||||||
Commercial lease financing | 5 | 0.04 | (7 | ) | (0.06 | ) | |||||||
Non-U.S. commercial | 2 | 0.01 | 116 | 0.64 | |||||||||
376 | 0.26 | 599 | 0.43 | ||||||||||
U.S. small business commercial | 368 | 5.68 | 587 | 8.24 | |||||||||
Total commercial | 744 | 0.48 | 1,186 | 0.81 | |||||||||
Total net charge-offs | $ | 7,682 | 1.72 | $ | 11,693 | 2.53 | |||||||
By Business Segment | |||||||||||||
Consumer & Business Banking | $ | 3,435 | 4.96 | % | $ | 5,664 | 7.23 | % | |||||
Consumer Real Estate Services | 1,760 | 3.30 | 2,327 | 3.95 | |||||||||
Global Banking | 330 | 0.25 | 580 | 0.46 | |||||||||
Global Markets | 7 | 0.07 | (1 | ) | (0.02 | ) | |||||||
Global Wealth & Investment Management | 182 | 0.35 | 217 | 0.43 | |||||||||
All Other | 1,968 | 1.52 | 2,906 | 2.04 | |||||||||
Total net charge-offs | $ | 7,682 | 1.72 | $ | 11,693 | 2.53 | |||||||
(1) | Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option during the period for each loan and lease category. |
(2) | Excludes U.S. small business commercial loans. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 45 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||
Allocation of the Allowance for Credit Losses by Product Type | ||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||
June 30, 2012 | March 31, 2012 | June 30, 2011 | ||||||||||||||||||||||||||||
Allowance for loan and lease losses | Amount | Percent of Total | Percent of Loans and Leases Outstanding (1) | Amount | Percent of Total | Percent of Loans and Leases Outstanding (1) | Amount | Percent of Total | Percent of Loans and Leases Outstanding (1) | |||||||||||||||||||||
Residential mortgage | $ | 5,899 | 19.48 | % | 2.33 | % | $ | 6,141 | 19.06 | % | 2.39 | % | $ | 5,845 | 15.66 | % | 2.19 | % | ||||||||||||
Home equity | 11,994 | 39.60 | 10.16 | 12,701 | 39.43 | 10.48 | 13,111 | 35.14 | 10.03 | |||||||||||||||||||||
Discontinued real estate | 2,071 | 6.84 | 20.59 | 2,131 | 6.62 | 20.39 | 1,997 | 5.35 | 16.64 | |||||||||||||||||||||
U.S. credit card | 5,228 | 17.26 | 5.54 | 5,680 | 17.63 | 5.89 | 7,540 | 20.21 | 7.20 | |||||||||||||||||||||
Non-U.S. credit card | 777 | 2.57 | 5.79 | 828 | 2.57 | 5.95 | 1,771 | 4.75 | 6.80 | |||||||||||||||||||||
Direct/Indirect consumer | 875 | 2.89 | 1.05 | 1,001 | 3.11 | 1.16 | 1,475 | 3.95 | 1.63 | |||||||||||||||||||||
Other consumer | 144 | 0.47 | 5.59 | 155 | 0.48 | 5.96 | 145 | 0.39 | 5.25 | |||||||||||||||||||||
Total consumer | 26,988 | 89.11 | 4.70 | 28,637 | 88.90 | 4.88 | 31,884 | 85.45 | 5.04 | |||||||||||||||||||||
U.S. commercial (2) | 2,016 | 6.66 | 1.02 | 2,098 | 6.51 | 1.08 | 2,792 | 7.48 | 1.46 | |||||||||||||||||||||
Commercial real estate | 967 | 3.19 | 2.65 | 1,166 | 3.62 | 3.06 | 2,314 | 6.20 | 5.26 | |||||||||||||||||||||
Commercial lease financing | 80 | 0.26 | 0.37 | 79 | 0.25 | 0.37 | 99 | 0.27 | 0.46 | |||||||||||||||||||||
Non-U.S. commercial | 237 | 0.78 | 0.44 | 231 | 0.72 | 0.44 | 223 | 0.60 | 0.52 | |||||||||||||||||||||
Total commercial (3) | 3,300 | 10.89 | 1.07 | 3,574 | 11.10 | 1.17 | 5,428 | 14.55 | 1.82 | |||||||||||||||||||||
Allowance for loan and lease losses | 30,288 | 100.00 | % | 3.43 | 32,211 | 100.00 | % | 3.61 | 37,312 | 100.00 | % | 4.00 | ||||||||||||||||||
Reserve for unfunded lending commitments | 574 | 651 | 897 | |||||||||||||||||||||||||||
Allowance for credit losses | $ | 30,862 | $ | 32,862 | $ | 38,209 | ||||||||||||||||||||||||
Asset Quality Indicators | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses/Total loans and leases (5) | 3.43 | % | 3.61 | % | 4.00 | % | ||||||||||||||||||||||||
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total loans and leases (excluding purchased credit-impaired loans) (4, 5) | 2.50 | 2.70 | 3.24 | |||||||||||||||||||||||||||
Allowance for loan and lease losses/Total nonperforming loans and leases (6) | 127 | 126 | 135 | |||||||||||||||||||||||||||
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total nonperforming loans and leases (4) | 90 | 91 | 105 | |||||||||||||||||||||||||||
Allowance for loan and lease losses/Annualized net charge-offs | 2.08 | 1.97 | 1.64 | |||||||||||||||||||||||||||
Allowance for loan and lease losses (excluding purchased credit-impaired loans)/Annualized net charge-offs (4) | 1.46 | 1.43 | 1.28 | |||||||||||||||||||||||||||
(1) | Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option. Consumer loans accounted for under the fair value option includes residential mortgage loans of $172 million, $881 million and $1.2 billion, and discontinued real estate loans of $1.0 billion, $1.3 billion and $4.0 billion at June 30, 2012, March 31, 2012 and June 30, 2011, respectively. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $1.9 billion, $2.2 billion and $1.6 billion, non-U.S. commercial loans of $5.3 billion, $4.8 billion and $2.8 billion, and commercial real estate loans of $0, $0 and $11 million at June 30, 2012, March 31, 2012 and June 30, 2011, respectively. |
(2) | Includes allowance for U.S. small business commercial loans of $812 million, $811 million and $1.0 billion at June 30, 2012, March 31, 2012 and June 30, 2011, respectively. |
(3) | Includes allowance for loan and lease losses for impaired commercial loans of $419 million, $465 million and $778 million at June 30, 2012, March 31, 2012 and June 30, 2011, respectively. |
(4) | Excludes valuation allowance on Countrywide purchased credit-impaired loans of $9.0 billion, $8.9 billion and $8.4 billion at June 30, 2012, March 31, 2012 and June 30, 2011, respectively. |
(5) | Total loans and leases do not include loans accounted for under the fair value option of $8.4 billion, $9.2 billion and $9.6 billion at June 30, 2012, March 31, 2012 and June 30, 2011, respectively. |
(6) | Allowance for loan and lease losses includes $16.3 billion, $17.0 billion and $19.9 billion allocated to products (primarily the Card Services portfolios within Consumer & Business Banking and purchased credit-impaired loans) that are excluded from nonperforming loans and leases at June 30, 2012, March 31, 2012 and June 30, 2011, respectively. Excluding these amounts, allowance for loan and lease losses as a percentage of total nonperforming loans and leases was 59 percent, 60 percent and 63 percent at June 30, 2012, March 31, 2012 and June 30, 2011, respectively. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 46 |
Exhibit A: Non-GAAP Reconciliations | |||||
Bank of America Corporation and Subsidiaries | |||||
Reconciliations to GAAP Financial Measures | |||||
(Dollars in millions) |
The Corporation evaluates its business based on a fully taxable-equivalent basis, a non-GAAP financial measure. The Corporation believes managing the business with net interest income on a fully taxable-equivalent basis provides a more accurate picture of the interest margin for comparative purposes. Total revenue, net of interest expense, includes net interest income on a fully taxable-equivalent basis and noninterest income. The Corporation views related ratios and analyses (i.e., efficiency ratios and net interest yield) on a fully taxable-equivalent basis. To derive the fully taxable-equivalent basis, net interest income is adjusted to reflect tax exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. 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. 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 48-50 for reconciliations of these non-GAAP financial measures with financial measures defined by GAAP for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011 and the six months ended June 30, 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.
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis | |||||||||||||||||||||||||||||
Net interest income | $ | 20,394 | $ | 23,425 | $ | 9,548 | $ | 10,846 | $ | 10,701 | $ | 10,490 | $ | 11,246 | |||||||||||||||
Fully taxable-equivalent adjustment | 441 | 465 | 234 | 207 | 258 | 249 | 247 | ||||||||||||||||||||||
Net interest income on a fully taxable-equivalent basis | $ | 20,835 | $ | 23,890 | $ | 9,782 | $ | 11,053 | $ | 10,959 | $ | 10,739 | $ | 11,493 | |||||||||||||||
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 | $ | 44,246 | $ | 40,113 | $ | 21,968 | $ | 22,278 | $ | 24,888 | $ | 28,453 | $ | 13,236 | |||||||||||||||
Fully taxable-equivalent adjustment | 441 | 465 | 234 | 207 | 258 | 249 | 247 | ||||||||||||||||||||||
Total revenue, net of interest expense on a fully taxable-equivalent basis | $ | 44,687 | $ | 40,578 | $ | 22,202 | $ | 22,485 | $ | 25,146 | $ | 28,702 | $ | 13,483 | |||||||||||||||
Reconciliation of total noninterest expense to total noninterest expense, excluding goodwill impairment charges | |||||||||||||||||||||||||||||
Total noninterest expense | $ | 36,189 | $ | 43,139 | $ | 17,048 | $ | 19,141 | $ | 19,522 | $ | 17,613 | $ | 22,856 | |||||||||||||||
Goodwill impairment charges | �� | — | (2,603 | ) | — | — | (581 | ) | — | (2,603 | ) | ||||||||||||||||||
Total noninterest expense, excluding goodwill impairment charges | $ | 36,189 | $ | 40,536 | $ | 17,048 | $ | 19,141 | $ | 18,941 | $ | 17,613 | $ | 20,253 | |||||||||||||||
Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis | |||||||||||||||||||||||||||||
Income tax expense (benefit) | $ | 750 | $ | (3,318 | ) | $ | 684 | $ | 66 | $ | 441 | $ | 1,201 | $ | (4,049 | ) | |||||||||||||
Fully taxable-equivalent adjustment | 441 | 465 | 234 | 207 | 258 | 249 | 247 | ||||||||||||||||||||||
Income tax expense (benefit) on a fully taxable-equivalent basis | $ | 1,191 | $ | (2,853 | ) | $ | 918 | $ | 273 | $ | 699 | $ | 1,450 | $ | (3,802 | ) | |||||||||||||
Reconciliation of net income (loss) to net income (loss), excluding goodwill impairment charges | |||||||||||||||||||||||||||||
Net income (loss) | $ | 3,116 | $ | (6,777 | ) | $ | 2,463 | $ | 653 | $ | 1,991 | $ | 6,232 | $ | (8,826 | ) | |||||||||||||
Goodwill impairment charges | — | 2,603 | — | — | 581 | — | 2,603 | ||||||||||||||||||||||
Net income (loss), excluding goodwill impairment charges | $ | 3,116 | $ | (4,174 | ) | $ | 2,463 | $ | 653 | $ | 2,572 | $ | 6,232 | $ | (6,223 | ) | |||||||||||||
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 | $ | 2,426 | $ | (7,388 | ) | $ | 2,098 | $ | 328 | $ | 1,584 | $ | 5,889 | $ | (9,127 | ) | |||||||||||||
Goodwill impairment charges | — | 2,603 | — | — | 581 | — | 2,603 | ||||||||||||||||||||||
Net income (loss) applicable to common shareholders, excluding goodwill impairment charges | $ | 2,426 | $ | (4,785 | ) | $ | 2,098 | $ | 328 | $ | 2,165 | $ | 5,889 | $ | (6,524 | ) | |||||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 47 |
Exhibit A: Non-GAAP Reconciliations (continued) | |||||||||||||||||||||||||||||
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Reconciliations to GAAP Financial Measures | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||
Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity | |||||||||||||||||||||||||||||
Common shareholders’ equity | $ | 215,466 | $ | 216,367 | $ | 216,782 | $ | 214,150 | $ | 209,324 | $ | 204,928 | $ | 218,505 | |||||||||||||||
Goodwill | (69,971 | ) | (73,834 | ) | (69,976 | ) | (69,967 | ) | (70,647 | ) | (71,070 | ) | (73,748 | ) | |||||||||||||||
Intangible assets (excluding mortgage servicing rights) | (7,701 | ) | (9,580 | ) | (7,533 | ) | (7,869 | ) | (8,566 | ) | (9,005 | ) | (9,394 | ) | |||||||||||||||
Related deferred tax liabilities | 2,663 | 2,983 | 2,626 | 2,700 | 2,775 | 2,852 | 2,932 | ||||||||||||||||||||||
Tangible common shareholders’ equity | $ | 140,457 | $ | 135,936 | $ | 141,899 | $ | 139,014 | $ | 132,886 | $ | 127,705 | $ | 138,295 | |||||||||||||||
Reconciliation of average shareholders’ equity to average tangible shareholders’ equity | |||||||||||||||||||||||||||||
Shareholders’ equity | $ | 234,062 | $ | 232,930 | $ | 235,558 | $ | 232,566 | $ | 228,235 | $ | 222,410 | $ | 235,067 | |||||||||||||||
Goodwill | (69,971 | ) | (73,834 | ) | (69,976 | ) | (69,967 | ) | (70,647 | ) | (71,070 | ) | (73,748 | ) | |||||||||||||||
Intangible assets (excluding mortgage servicing rights) | (7,701 | ) | (9,580 | ) | (7,533 | ) | (7,869 | ) | (8,566 | ) | (9,005 | ) | (9,394 | ) | |||||||||||||||
Related deferred tax liabilities | 2,663 | 2,983 | 2,626 | 2,700 | 2,775 | 2,852 | 2,932 | ||||||||||||||||||||||
Tangible shareholders’ equity | $ | 159,053 | $ | 152,499 | $ | 160,675 | $ | 157,430 | $ | 151,797 | $ | 145,187 | $ | 154,857 | |||||||||||||||
Reconciliation of period-end common shareholders’ equity to period-end tangible common shareholders’ equity | |||||||||||||||||||||||||||||
Common shareholders’ equity | $ | 217,213 | $ | 205,614 | $ | 217,213 | $ | 213,711 | $ | 211,704 | $ | 210,772 | $ | 205,614 | |||||||||||||||
Goodwill | (69,976 | ) | (71,074 | ) | (69,976 | ) | (69,976 | ) | (69,967 | ) | (70,832 | ) | (71,074 | ) | |||||||||||||||
Intangible assets (excluding mortgage servicing rights) | (7,335 | ) | (9,176 | ) | (7,335 | ) | (7,696 | ) | (8,021 | ) | (8,764 | ) | (9,176 | ) | |||||||||||||||
Related deferred tax liabilities | 2,559 | 2,853 | 2,559 | 2,628 | 2,702 | 2,777 | 2,853 | ||||||||||||||||||||||
Tangible common shareholders’ equity | $ | 142,461 | $ | 128,217 | $ | 142,461 | $ | 138,667 | $ | 136,418 | $ | 133,953 | $ | 128,217 | |||||||||||||||
Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity | |||||||||||||||||||||||||||||
Shareholders’ equity | $ | 235,975 | $ | 222,176 | $ | 235,975 | $ | 232,499 | $ | 230,101 | $ | 230,252 | $ | 222,176 | |||||||||||||||
Goodwill | (69,976 | ) | (71,074 | ) | (69,976 | ) | (69,976 | ) | (69,967 | ) | (70,832 | ) | (71,074 | ) | |||||||||||||||
Intangible assets (excluding mortgage servicing rights) | (7,335 | ) | (9,176 | ) | (7,335 | ) | (7,696 | ) | (8,021 | ) | (8,764 | ) | (9,176 | ) | |||||||||||||||
Related deferred tax liabilities | 2,559 | 2,853 | 2,559 | 2,628 | 2,702 | 2,777 | 2,853 | ||||||||||||||||||||||
Tangible shareholders’ equity | $ | 161,223 | $ | 144,779 | $ | 161,223 | $ | 157,455 | $ | 154,815 | $ | 153,433 | $ | 144,779 | |||||||||||||||
Reconciliation of period-end assets to period-end tangible assets | |||||||||||||||||||||||||||||
Assets | $ | 2,160,854 | $ | 2,261,319 | $ | 2,160,854 | $ | 2,181,449 | $ | 2,129,046 | $ | 2,219,628 | $ | 2,261,319 | |||||||||||||||
Goodwill | (69,976 | ) | (71,074 | ) | (69,976 | ) | (69,976 | ) | (69,967 | ) | (70,832 | ) | (71,074 | ) | |||||||||||||||
Intangible assets (excluding mortgage servicing rights) | (7,335 | ) | (9,176 | ) | (7,335 | ) | (7,696 | ) | (8,021 | ) | (8,764 | ) | (9,176 | ) | |||||||||||||||
Related deferred tax liabilities | 2,559 | 2,853 | 2,559 | 2,628 | 2,702 | 2,777 | 2,853 | ||||||||||||||||||||||
Tangible assets | $ | 2,086,102 | $ | 2,183,922 | $ | 2,086,102 | $ | 2,106,405 | $ | 2,053,760 | $ | 2,142,809 | $ | 2,183,922 | |||||||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 48 |
Exhibit A: Non-GAAP Reconciliations (continued) | |||||||||||||||||||||||||||||
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Reconciliations to GAAP Financial Measures | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | ||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||
Reconciliation of return on average economic capital | |||||||||||||||||||||||||||||
Consumer & Business Banking | |||||||||||||||||||||||||||||
Reported net income | $ | 2,611 | $ | 4,544 | $ | 1,156 | $ | 1,455 | $ | 1,244 | $ | 1,666 | $ | 2,502 | |||||||||||||||
Adjustment related to intangibles (1) | 7 | 9 | 4 | 3 | 5 | 6 | 2 | ||||||||||||||||||||||
Adjusted net income | $ | 2,618 | $ | 4,553 | $ | 1,160 | $ | 1,458 | $ | 1,249 | $ | 1,672 | $ | 2,504 | |||||||||||||||
Average allocated equity | $ | 53,199 | $ | 53,126 | $ | 53,452 | $ | 52,947 | $ | 53,004 | $ | 52,381 | $ | 52,559 | |||||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (30,503 | ) | (30,676 | ) | (30,485 | ) | (30,522 | ) | (30,587 | ) | (30,600 | ) | (30,656 | ) | |||||||||||||||
Average economic capital | $ | 22,696 | $ | 22,450 | $ | 22,967 | $ | 22,425 | $ | 22,417 | $ | 21,781 | $ | 21,903 | |||||||||||||||
Consumer Real Estate Services | |||||||||||||||||||||||||||||
Reported net loss | $ | (1,913 | ) | $ | (16,906 | ) | $ | (768 | ) | $ | (1,145 | ) | $ | (1,444 | ) | $ | (1,124 | ) | $ | (14,506 | ) | ||||||||
Adjustment related to intangibles (1) | — | — | — | — | — | — | — | ||||||||||||||||||||||
Goodwill impairment charge | — | 2,603 | — | — | — | — | 2,603 | ||||||||||||||||||||||
Adjusted net loss | $ | (1,913 | ) | $ | (14,303 | ) | $ | (768 | ) | $ | (1,145 | ) | $ | (1,444 | ) | $ | (1,124 | ) | $ | (11,903 | ) | ||||||||
Average allocated equity | $ | 14,454 | $ | 17,933 | $ | 14,116 | $ | 14,791 | $ | 14,757 | $ | 14,240 | $ | 17,139 | |||||||||||||||
Adjustment related to goodwill and a percentage of intangibles (excluding mortgage servicing rights) | — | (2,722 | ) | — | — | — | — | (2,702 | ) | ||||||||||||||||||||
Average economic capital | $ | 14,454 | $ | 15,211 | $ | 14,116 | $ | 14,791 | $ | 14,757 | $ | 14,240 | $ | 14,437 | |||||||||||||||
Global Banking | |||||||||||||||||||||||||||||
Reported net income | $ | 2,996 | $ | 3,504 | $ | 1,406 | $ | 1,590 | $ | 1,337 | $ | 1,205 | $ | 1,921 | |||||||||||||||
Adjustment related to intangibles (1) | 2 | 3 | 1 | 1 | 1 | 2 | 1 | ||||||||||||||||||||||
Adjusted net income | $ | 2,998 | $ | 3,507 | $ | 1,407 | $ | 1,591 | $ | 1,338 | $ | 1,207 | $ | 1,922 | |||||||||||||||
Average allocated equity | $ | 45,838 | $ | 47,891 | $ | 45,958 | $ | 45,719 | $ | 46,087 | $ | 47,682 | $ | 47,060 | |||||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (24,858 | ) | (24,430 | ) | (24,856 | ) | (24,861 | ) | (24,899 | ) | (24,724 | ) | (24,428 | ) | |||||||||||||||
Average economic capital | $ | 20,980 | $ | 23,461 | $ | 21,102 | $ | 20,858 | $ | 21,188 | $ | 22,958 | $ | 22,632 | |||||||||||||||
Global Markets | |||||||||||||||||||||||||||||
Reported net income (loss) | $ | 1,260 | $ | 2,306 | $ | 462 | $ | 798 | $ | (768 | ) | $ | (552 | ) | $ | 911 | |||||||||||||
Adjustment related to intangibles (1) | 5 | 6 | 3 | 2 | 3 | 3 | 3 | ||||||||||||||||||||||
Adjusted net income (loss) | $ | 1,265 | $ | 2,312 | $ | 465 | $ | 800 | $ | (765 | ) | $ | (549 | ) | $ | 914 | |||||||||||||
Average allocated equity | $ | 17,725 | $ | 24,667 | $ | 17,132 | $ | 18,317 | $ | 19,805 | $ | 21,609 | $ | 22,990 | |||||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (4,629 | ) | (4,598 | ) | (4,608 | ) | (4,648 | ) | (4,651 | ) | (4,655 | ) | (4,646 | ) | |||||||||||||||
Average economic capital | $ | 13,096 | $ | 20,069 | $ | 12,524 | $ | 13,669 | $ | 15,154 | $ | 16,954 | $ | 18,344 | |||||||||||||||
Global Wealth & Investment Management | |||||||||||||||||||||||||||||
Reported net income | $ | 1,090 | $ | 1,055 | $ | 543 | $ | 547 | $ | 260 | $ | 358 | $ | 513 | |||||||||||||||
Adjustment related to intangibles (1) | 12 | 16 | 6 | 6 | 7 | 7 | 7 | ||||||||||||||||||||||
Adjusted net income | $ | 1,102 | $ | 1,071 | $ | 549 | $ | 553 | $ | 267 | $ | 365 | $ | 520 | |||||||||||||||
Average allocated equity | $ | 17,601 | $ | 17,745 | $ | 17,974 | $ | 17,228 | $ | 17,845 | $ | 17,826 | $ | 17,560 | |||||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (10,631 | ) | (10,717 | ) | (10,621 | ) | (10,641 | ) | (10,663 | ) | (10,691 | ) | (10,706 | ) | |||||||||||||||
Average economic capital | $ | 6,970 | $ | 7,028 | $ | 7,353 | $ | 6,587 | $ | 7,182 | $ | 7,135 | $ | 6,854 | |||||||||||||||
For footnote see page 50.
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 49 |
Exhibit A: Non-GAAP Reconciliations (continued) | |||||||||||||||||||||
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||
Reconciliations to GAAP Financial Measures | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2012 | First Quarter 2012 | Second Quarter 2011 | ||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
Consumer & Business Banking | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Reported net income | $ | 500 | $ | 795 | $ | 190 | $ | 310 | $ | 433 | |||||||||||
Adjustment related to intangibles (1) | 1 | 1 | 1 | — | — | ||||||||||||||||
Adjusted net income | $ | 501 | $ | 796 | $ | 191 | $ | 310 | $ | 433 | |||||||||||
Average allocated equity | $ | 23,588 | $ | 23,627 | $ | 23,982 | $ | 23,194 | $ | 23,612 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (17,929 | ) | (17,955 | ) | (17,926 | ) | (17,932 | ) | (17,951 | ) | |||||||||||
Average economic capital | $ | 5,659 | $ | 5,672 | $ | 6,056 | $ | 5,262 | $ | 5,661 | |||||||||||
Card Services | |||||||||||||||||||||
Reported net income | $ | 1,967 | $ | 3,516 | $ | 929 | $ | 1,038 | $ | 1,944 | |||||||||||
Adjustment related to intangibles (1) | 6 | 8 | 3 | 3 | 2 | ||||||||||||||||
Adjusted net income | $ | 1,973 | $ | 3,524 | $ | 932 | $ | 1,041 | $ | 1,946 | |||||||||||
Average allocated equity | $ | 20,598 | $ | 21,580 | $ | 20,525 | $ | 20,671 | $ | 21,016 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (10,476 | ) | (10,624 | ) | (10,460 | ) | (10,492 | ) | (10,607 | ) | |||||||||||
Average economic capital | $ | 10,122 | $ | 10,956 | $ | 10,065 | $ | 10,179 | $ | 10,409 | |||||||||||
Business Banking | |||||||||||||||||||||
Reported net income | $ | 144 | $ | 233 | $ | 37 | $ | 107 | $ | 125 | |||||||||||
Adjustment related to intangibles (1) | — | — | — | — | — | ||||||||||||||||
Adjusted net income | $ | 144 | $ | 233 | $ | 37 | $ | 107 | $ | 125 | |||||||||||
Average allocated equity | $ | 9,013 | $ | 7,919 | $ | 8,945 | $ | 9,082 | $ | 7,931 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (2,098 | ) | (2,097 | ) | (2,099 | ) | (2,098 | ) | (2,098 | ) | |||||||||||
Average economic capital | $ | 6,915 | $ | 5,822 | $ | 6,846 | $ | 6,984 | $ | 5,833 | |||||||||||
(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. | 50 |