Bank of America (BAC) 10-Q 2012 Q3 Quarterly report

Bank of America Corporation and Subsidiaries												Exhibit 12
Ratio of Earnings to Fixed Charges
Ratio of Earnings to Fixed Charges and Preferred Dividends
			Year Ended December 31
(Dollars in millions)	Nine Months Ended September 30, 2012		2011			2010			2009			2008			2007
Excluding Interest on Deposits
Income (loss) before income taxes	$	4,976	$	(230	)	$	(1,323	)	$	4,360		$	4,428		$	20,924
Equity in undistributed earnings (loss) of unconsolidated subsidiaries	83		596			1,210			(1,833		)	(144		)	(95		)
Fixed charges:
Interest expense	11,545		18,618			19,977			23,000			25,074			34,778
1/3 of net rent expense (1)	820		1,072			1,099			1,110			791			669
Total fixed charges	12,365		19,690			21,076			24,110			25,865			35,447
Preferred dividend requirements (2)	1,594		n/m			802			5,921			1,461			254
Fixed charges and preferred dividends	13,959		19,690			21,878			30,031			27,326			35,701
Earnings	$	17,424	$	20,056		$	20,963		$	26,637		$	30,149		$	56,276
Ratio of earnings to fixed charges (3)	1.41		1.02			0.99			1.10			1.17			1.59
Ratio of earnings to fixed charges and preferred dividends (3, 4)	1.25		1.02			0.96			0.89			1.10			1.58
			Year Ended December 31
(Dollars in millions)	Nine Months Ended September 30, 2012		2011			2010			2009			2008			2007
Including Interest on Deposits
Income (loss) before income taxes	$	4,976	$	(230	)	$	(1,323	)	$	4,360		$	4,428		$	20,924
Equity in undistributed earnings (loss) of unconsolidated subsidiaries	83		596			1,210			(1,833		)	(144		)	(95		)
Fixed charges:
Interest expense	13,097		21,620			23,974			30,807			40,324			52,871
1/3 of net rent expense (1)	820		1,072			1,099			1,110			791			669
Total fixed charges	13,917		22,692			25,073			31,917			41,115			53,540
Preferred dividend requirements (2)	1,594		n/m			802			5,921			1,461			254
Fixed charges and preferred dividends	15,511		22,692			25,875			37,838			42,576			53,794
Earnings	$	18,976	$	23,058		$	24,960		$	34,444		$	45,399		$	74,369
Ratio of earnings to fixed charges	1.36		1.02			1.00			1.08			1.10			1.39
Ratio of earnings to fixed charges and preferred dividends (3, 4)	1.22		1.02			0.96			0.91			1.07			1.38

⁽¹⁾  Represents an appropriate interest factor.

⁽²⁾  Reflects the impact of $8.8 billion of mortgage banking losses and $3.2 billion of goodwill impairment charges during 2011 which resulted in a negative preferred dividend requirement.

⁽³⁾  The earnings for 2010 were inadequate to cover fixed charges and the ratio of earnings to fixed charges and preferred dividends. The earnings deficiency is a result of $12.4 billion of goodwill impairment charges during 2010. The coverage deficiency for fixed charges was $113 million and the coverage deficiency for fixed charges and preferred dividends was $915 million.

⁽⁴⁾  The earnings for 2009 were inadequate to cover fixed charges and preferred dividends. The earnings deficiency is a result of accelerated accretion of $4.0 billion recorded as a result of the repurchase of TARP Preferred Stock. The coverage deficiency for fixed charges and preferred dividends was $3.4 billion.

n/m = not meaningful