Bank of America 8K Results of Operations and Financial Condition | BAC 17 Jul 13

Supplemental Information

Second Quarter 2013

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


Consolidated Financial Highlights	2
Supplemental Financial Data	3
Consolidated Statement of Income	4
Consolidated Statement of Comprehensive Income	5
Consolidated Balance Sheet	6
Capital Management	8
Net Interest Income Excluding Trading-related Net Interest Income	9
Quarterly Average Balances and Interest Rates	10
Year-to-Date Average Balances and Interest Rates	12
Debt Securities and Available-for-Sale Marketable Equity Securities	14
Quarterly Results by Business Segment	15
Year-to-Date Results by Business Segment	16
Consumer & Business Banking
Total Segment Results	17
Business Results	18
Key Indicators	21
Consumer Real Estate Services
Total Segment Results	22
Business Results	23
Key Indicators	26
Global Banking
Total Segment Results	27
Key Indicators	28
Investment Banking Product Rankings	29
Global Markets
Total Segment Results	30
Key Indicators	31
Global Wealth & Investment Management
Total Segment Results	32
Key Indicators	33
All Other
Total Results	34
Equity Investments	35
Outstanding Loans and Leases	36
Quarterly Average Loans and Leases by Business Segment	37
Commercial Credit Exposure by Industry	38
Net Credit Default Protection by Maturity Profile and Credit Exposure Debt Rating	39
Top 20 Non-U.S. Countries Exposure	40
Select European Countries	41
Nonperforming Loans, Leases and Foreclosed Properties	42
Nonperforming Loans, Leases and Foreclosed Properties Activity	43
Quarterly Net Charge-offs and Net Charge-off Ratios	44
Year-to-Date Net Charge-offs and Net Charge-off Ratios	45
Allocation of the Allowance for Credit Losses by Product Type	46

Exhibit A: Non-GAAP Reconciliations	47



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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Income statement
Net interest income	$	21,213		$	20,394		$	10,549		$	10,664		$	10,324		$	9,938		$	9,548
Noninterest income	24,711			23,852			12,178			12,533			8,336			10,490			12,420
Total revenue, net of interest expense	45,924			44,246			22,727			23,197			18,660			20,428			21,968
Provision for credit losses	2,924			4,191			1,211			1,713			2,204			1,774			1,773
Noninterest expense	35,518			36,189			16,018			19,500			18,360			17,544			17,048
Income tax expense (benefit)	1,987			750			1,486			501			(2,636		)	770			684
Net income	5,495			3,116			4,012			1,483			732			340			2,463
Preferred stock dividends	814			690			441			373			365			373			365
Net income (loss) applicable to common shareholders	4,681			2,426			3,571			1,110			367			(33		)	2,098
Diluted earnings per common share ⁽¹⁾	0.42			0.22			0.32			0.10			0.03			0.00			0.19
Average diluted common shares issued and outstanding ⁽¹⁾	11,549,693			11,509,945			11,524,510			11,154,778			10,884,921			10,776,173			11,556,011
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	0.50		%	0.29		%	0.74		%	0.27		%	0.13		%	0.06		%	0.45		%
Return on average common shareholders' equity	4.32			2.26			6.55			2.06			0.67			n/m			3.89
Return on average tangible common shareholders' equity ⁽²⁾	6.53			3.47			9.88			3.12			1.01			n/m			5.95
Return on average tangible shareholders' equity ⁽²⁾	6.84			3.94			9.98			3.69			1.77			0.84			6.16


At period end
Book value per share of common stock	$	20.18		$	20.16		$	20.18		$	20.19		$	20.24		$	20.40		$	20.16
Tangible book value per share of common stock ⁽²⁾	13.32			13.22			13.32			13.36			13.36			13.48			13.22
Market price per share of common stock:
Closing price	$	12.86		$	8.18		$	12.86		$	12.18		$	11.61		$	8.83		$	8.18
High closing price for the period	13.83			9.93			13.83			12.78			11.61			9.55			9.68
Low closing price for the period	11.03			5.80			11.44			11.03			8.93			7.04			6.83
Market capitalization	138,156			88,155			138,156			131,817			125,136			95,163			88,155

Number of banking centers - U.S.	5,328			5,594			5,328			5,389			5,478			5,540			5,594
Number of branded ATMs - U.S.	16,354			16,220			16,354			16,311			16,347			16,253			16,220
Full-time equivalent employees	257,158			275,460			257,158			262,812			267,190			272,594			275,460


⁽¹⁾	Due to a net loss applicable to common shareholders for the third quarter of 2012, the impact of antidilutive equity instruments was excluded from diluted earnings per share and average diluted common shares.

⁽²⁾

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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Net interest income	$	21,646		$	20,835		$	10,771		$	10,875		$	10,555		$	10,167		$	9,782
Total revenue, net of interest expense	46,357			44,687			22,949			23,408			18,891			20,657			22,202
Net interest yield ⁽²⁾	2.44		%	2.36		%	2.44		%	2.43		%	2.35		%	2.32		%	2.21		%
Efficiency ratio	76.62			80.98			69.80			83.31			97.19			84.93			76.79


⁽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 and, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, of $73 million and $99 million for the six months ended June 30, 2013 and 2012; $40 million and $33 million for the second and first quarters of 2013, and $42 million, $48 million and $52 million for the fourth, third and second quarters of 2012, 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.

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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
	2013			2012
Interest income
Loans and leases	$	18,238		$	19,917		$	9,060		$	9,178		$	9,366		$	9,597		$	9,744
Debt securities	5,097			4,651			2,548			2,549			2,196			2,062			1,905
Federal funds sold and securities borrowed or purchased under agreements to resell	634			820			319			315			329			353			360
Trading account assets	2,518			2,598			1,181			1,337			1,307			1,189			1,246
Other interest income	1,439			1,467			717			722			773			775			737
Total interest income	27,926			29,453			13,825			14,101			13,971			13,976			13,992

Interest expense
Deposits	748			1,068			366			382			438			484			519
Short-term borrowings	1,558			1,824			809			749			855			893			943
Trading account liabilities	899			925			427			472			420			418			448
Long-term debt	3,508			5,242			1,674			1,834			1,934			2,243			2,534
Total interest expense	6,713			9,059			3,276			3,437			3,647			4,038			4,444
Net interest income	21,213			20,394			10,549			10,664			10,324			9,938			9,548

Noninterest income
Card income	2,879			3,035			1,469			1,410			1,548			1,538			1,578
Service charges	3,636			3,846			1,837			1,799			1,820			1,934			1,934
Investment and brokerage services	6,170			5,723			3,143			3,027			2,889			2,781			2,847
Investment banking income	3,091			2,363			1,556			1,535			1,600			1,336			1,146
Equity investment income	1,243			1,133			680			563			699			238			368
Trading account profits	4,927			3,839			1,938			2,989			792			1,239			1,764
Mortgage banking income (loss)	2,441			3,271			1,178			1,263			(540		)	2,019			1,659
Gains on sales of debt securities	525			1,152			457			68			171			339			400
Other income (loss)	(188		)	(464		)	(76		)	(112		)	(642		)	(928		)	730
Other-than-temporary impairment losses on available-for-sale debt securities:
Total other-than-temporary impairment losses	(14		)	(62		)	(5		)	(14		)	(1		)	(9		)	(13		)
Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income	1			16			1			5			—			3			7
Net impairment losses recognized in earnings on available-for-sale debt securities	(13		)	(46		)	(4		)	(9		)	(1		)	(6		)	(6		)
Total noninterest income	24,711			23,852			12,178			12,533			8,336			10,490			12,420
Total revenue, net of interest expense	45,924			44,246			22,727			23,197			18,660			20,428			21,968

Provision for credit losses	2,924			4,191			1,211			1,713			2,204			1,774			1,773

Noninterest expense
Personnel	18,422			18,917			8,531			9,891			8,300			8,431			8,729
Occupancy	2,263			2,259			1,109			1,154			1,151			1,160			1,117
Equipment	1,082			1,157			532			550			551			561			546
Marketing	866			914			437			429			480			479			449
Professional fees	1,343			1,705			694			649			996			873			922
Amortization of intangibles	550			640			274			276			309			315			321
Data processing	1,591			1,548			779			812			773			640			692
Telecommunications	820			817			411			409			433			410			417
Other general operating	8,581			8,232			3,251			5,330			5,367			4,675			3,855
Total noninterest expense	35,518			36,189			16,018			19,500			18,360			17,544			17,048
Income (loss) before income taxes	7,482			3,866			5,498			1,984			(1,904		)	1,110			3,147
Income tax expense (benefit)	1,987			750			1,486			501			(2,636		)	770			684
Net income	$	5,495		$	3,116		$	4,012		$	1,483		$	732		$	340		$	2,463
Preferred stock dividends	814			690			441			373			365			373			365
Net income (loss) applicable to common shareholders	$	4,681		$	2,426		$	3,571		$	1,110		$	367		$	(33	)	$	2,098

Per common share information
Earnings	$	0.43		$	0.23		$	0.33		$	0.10		$	0.03		$	0.00		$	0.19
Diluted earnings	0.42			0.22			0.32			0.10			0.03			0.00			0.19
Dividends paid	0.02			0.02			0.01			0.01			0.01			0.01			0.01
Average common shares issued and outstanding	10,787,357			10,714,881			10,775,867			10,798,975			10,777,204			10,776,173			10,775,695
Average diluted common shares issued and outstanding ⁽¹⁾	11,549,693			11,509,945			11,524,510			11,154,778			10,884,921			10,776,173			11,556,011


⁽¹⁾	Due to a net loss applicable to common shareholders for the third quarter of 2012, 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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012		Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012		Second Quarter 2012
Net income	$	5,495		$	3,116		$	4,012		$	1,483		$	732		$	340	$	2,463
Other comprehensive income (loss), net-of-tax:
Net change in available-for-sale debt and marketable equity securities	(5,139		)	606			(4,233		)	(906		)	(1,169		)	2,365		1,530
Net change in derivatives	185			301			13			172			381			234		(81		)
Employee benefit plan adjustments	133			1,031			48			85			(1,171		)	75		79
Net change in foreign currency translation adjustments	(91		)	(1		)	(49		)	(42		)	(27		)	15		(32		)
Other comprehensive income (loss)	(4,912		)	1,937			(4,221		)	(691		)	(1,986		)	2,689		1,496
Comprehensive income (loss)	$	583		$	5,053		$	(209	)	$	792		$	(1,254	)	$	3,029	$	3,959

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 2013			March 31 2013			June 30 2012
Assets
Cash and cash equivalents	$	98,828		$	100,980		$	123,717
Time deposits placed and other short-term investments	12,916			12,740			22,350
Federal funds sold and securities borrowed or purchased under agreements to resell	224,168			220,623			226,116
Trading account assets	191,234			223,028			191,743
Derivative assets	56,772			52,247			59,939
Debt securities:
Carried at fair value	281,481			305,132			313,972
Held-to-maturity, at cost	54,922			49,577			35,168
Total debt securities	336,403			354,709			349,140
Loans and leases	921,570			911,592			892,315
Allowance for loan and lease losses	(21,235		)	(22,441		)	(30,288		)
Loans and leases, net of allowance	900,335			889,151			862,027
Premises and equipment, net	10,836			11,085			12,653
Mortgage servicing rights (includes $5,827, $5,776 and $5,708 measured at fair value)	5,839			5,896			5,880
Goodwill	69,930			69,930			69,976
Intangible assets	6,104			6,379			7,335
Loans held-for-sale	14,549			19,278			13,289
Customer and other receivables	67,526			70,981			71,458
Other assets	127,880			137,792			145,231
Total assets	$	2,123,320		$	2,174,819		$	2,160,854

Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
Trading account assets	$	6,507		$	9,113		$	8,499
Derivative assets	173			187			1,007
Loans and leases	113,045			116,236			128,386
Allowance for loan and lease losses	(3,157		)	(3,310		)	(4,074		)
Loans and leases, net of allowance	109,888			112,926			124,312
Loans held-for-sale	1,876			3,229			2,163
All other assets	3,927			4,728			4,113
Total assets of consolidated variable interest entities	$	122,371		$	130,183		$	140,094

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 2013			March 31 2013			June 30 2012
Liabilities
Deposits in U.S. offices:
Noninterest-bearing	$	352,447		$	357,623		$	343,308
Interest-bearing	654,370			661,930			621,076
Deposits in non-U.S. offices:
Noninterest-bearing	6,920			7,177			6,871
Interest-bearing	67,046			68,453			63,970
Total deposits	1,080,783			1,095,183			1,035,225
Federal funds purchased and securities loaned or sold under agreements to repurchase	232,609			248,149			285,914
Trading account liabilities	82,381			90,547			77,458
Derivative liabilities	48,532			47,825			51,515
Short-term borrowings	46,470			42,148			39,019
Accrued expenses and other liabilities (includes $474, $486 and $574 of reserve for unfunded lending commitments)	139,033			134,033			133,900
Long-term debt	262,480			279,641			301,848
Total liabilities	1,892,288			1,937,526			1,924,879
Shareholders’ equity
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,445,843, 3,685,410 and 3,685,410 shares	14,241			18,780			18,762
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 10,743,097,956, 10,822,379,936 and 10,776,869,270 shares	157,192			158,157			158,001
Retained earnings	67,308			63,844			62,712
Accumulated other comprehensive income (loss)	(7,709		)	(3,488		)	(3,500		)
Total shareholders’ equity	231,032			237,293			235,975
Total liabilities and shareholders’ equity	$	2,123,320		$	2,174,819		$	2,160,854

Liabilities of consolidated variable interest entities included in total liabilities above
Short-term borrowings	$	1,421		$	2,539		$	4,449
Long-term debt	25,946			31,461			38,456
All other liabilities	390			345			1,161
Total liabilities of consolidated variable interest entities	$	27,757		$	34,345		$	44,066

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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012

Risk-based capital ^{(1, 2)}:
Tier 1 common capital	$	139,519		$	136,119		$	133,403		$	136,406		$	134,082
Tier 1 capital	156,689			158,677			155,461			163,063			164,665
Total capital	196,752			201,211			196,680			205,172			208,936
Risk-weighted assets ⁽³⁾	1,288,159			1,298,187			1,205,976			1,195,722			1,193,422
Tier 1 common capital ratio ^{(3, 4)}	10.83		%	10.49		%	11.06		%	11.41		%	11.24		%
Tier 1 capital ratio	12.16			12.22			12.89			13.64			13.80
Total capital ratio	15.27			15.50			16.31			17.16			17.51
Tier 1 leverage ratio	7.49			7.49			7.37			7.84			7.84
Tangible equity ratio ⁽⁵⁾	7.67			7.78			7.62			7.85			7.73
Tangible common equity ratio ⁽⁵⁾	6.98			6.88			6.74			6.95			6.83


⁽¹⁾	Regulatory capital ratios are preliminary until filed with the Federal Reserve on Form Y-9C.


⁽²⁾	Basel 1 includes the Market Risk Final Rule for the second and first quarters of 2013 (Basel – 2013 Rules). Basel 1 did not include the Market Risk Final Rule for the fourth, third and second quarters of 2012.


⁽³⁾	On a pro-forma basis, under the Basel 1 – 2013 Rules, fourth quarter 2012 risk-weighted assets and the Tier 1 common capital ratio would have been $1,284,799 million and 10.38 percent.


⁽⁴⁾	Tier 1 common capital ratio equals Tier 1 capital excluding preferred stock, trust preferred securities, hybrid securities and minority interest divided by risk-weighted assets.

⁽⁵⁾

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.)



Basel 1 to Basel 3 (fully phased-in) Reconciliation ^{(1, 2)}
(Dollars in millions)
	June 30 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012
Regulatory capital – Basel 1 to Basel 3 (fully phased-in)
Basel 1 Tier 1 capital	$	156,689		$	158,677		$	155,461		$	163,063		$	164,665
Deduction of qualifying preferred stock and trust preferred securities	(17,170		)	(22,558		)	(22,058		)	(26,657		)	(30,583		)
Basel 1 Tier 1 common capital	139,519			136,119			133,403			136,406			134,082
Deduction of defined benefit pension assets	(787		)	(776		)	(737		)	(1,709		)	(3,057		)
Change in deferred tax assets and threshold deductions (deferred tax asset temporary differences, mortgage servicing rights and significant investments)	(6,761		)	(4,501		)	(3,020		)	(1,102		)	(3,745		)
Change in all other deductions, net	(6,125		)	(2,032		)	(1,020		)	1,040			(2,459		)
Basel 3 (fully phased-in) Tier 1 common capital	$	125,846		$	128,810		$	128,626		$	134,635		$	124,821

Risk-weighted assets – Basel 1 to Basel 3 (fully phased-in)
Basel 1 risk-weighted assets	$	1,288,159		$	1,298,187		$	1,205,976		$	1,195,722		$	1,193,422
Net change in credit and other risk-weighted assets	22,276			55,454			103,085			216,244			298,003
Increase due to Market Risk Final Rule	—			—			81,811			88,881			79,553
Basel 3 (fully phased-in) risk-weighted assets	$	1,310,435		$	1,353,641		$	1,390,872		$	1,500,847		$	1,570,978

Tier 1 common capital ratios
Basel 1	10.83		%	10.49		%	11.06		%	11.41		%	11.24		%
Basel 3 (fully phased-in)	9.60			9.52			9.25			8.97			7.95


⁽¹⁾	Basel 3 (fully phased-in) estimates as of June 30, 2013 are based on the Advanced Approach under the final Basel 3 rules issued on July 2, 2013.


⁽²⁾	Basel 1 includes the Market Risk Final Rule at June 30, 2013 and March 31, 2013. At December 31, 2012, September 30, 2012 and June 30, 2012, Basel 1 did not include the Market Risk Final Rule.

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 Trading-related Net Interest Income
(Dollars in millions)
	Six Months Ended June 30						Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Net interest income (FTE basis)
As reported ⁽¹⁾	$	21,646		$	20,835		$	10,771		$	10,875		$	10,555		$	10,167		$	9,782
Impact of trading-related net interest income	(1,929		)	(1,449		)	(919		)	(1,010		)	(1,012		)	(847		)	(653		)
Net interest income excluding trading-related net interest income ⁽²⁾	$	19,717		$	19,386		$	9,852		$	9,865		$	9,543		$	9,320		$	9,129

Average earning assets
As reported	$	1,784,975		$	1,770,336		$	1,769,336		$	1,800,786		$	1,788,936		$	1,750,275		$	1,772,568
Impact of trading-related earning assets	(492,510		)	(434,499		)	(487,345		)	(497,730		)	(482,366		)	(446,948		)	(444,584		)
Average earning assets excluding trading-related earning assets ⁽²⁾	$	1,292,465		$	1,335,837		$	1,281,991		$	1,303,056		$	1,306,570		$	1,303,327		$	1,327,984

Net interest yield contribution (FTE basis) ⁽³⁾
As reported ⁽¹⁾	2.44		%	2.36		%	2.44		%	2.43		%	2.35		%	2.32		%	2.21		%
Impact of trading-related activities	0.62			0.55			0.64			0.62			0.56			0.53			0.55
Net interest yield on earning assets excluding trading-related activities ⁽²⁾	3.06		%	2.91		%	3.08		%	3.05		%	2.91		%	2.85		%	2.76		%

⁽¹⁾

Net interest income and net interest yield include fees earned on overnight deposits placed with the Federal Reserve and, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, of $73 million and $99 million for the six months ended June 30, 2013 and 2012; $40 million and $33 million for the second and first quarters of 2013, and $42 million, $48 million and $52 million for the fourth, third and second quarters of 2012, respectively.


⁽²⁾	Represents a non-GAAP financial measure.


⁽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 2013						First Quarter 2013						Second Quarter 2012
	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⁾	$	15,088	$	46	1.21	%	$	16,129	$	46	1.17	%	$	27,476	$	64	0.94	%
Federal funds sold and securities borrowed or purchased under agreements to resell	233,394		319		0.55		237,463		315		0.54		234,148		360		0.62
Trading account assets	181,620		1,224		2.70		194,364		1,380		2.87		165,906		1,302		3.15
Debt securities ⁽²⁾	343,260		2,557		2.98		356,399		2,556		2.87		357,081		1,910		2.14
Loans and leases ⁽³⁾:
Residential mortgage	257,275		2,246		3.49		258,630		2,340		3.62		266,365		2,555		3.84
Home equity	101,708		951		3.74		105,939		997		3.80		119,785		1,091		3.66
U.S. credit card	89,722		2,192		9.80		91,712		2,249		9.95		95,018		2,356		9.97
Non-U.S. credit card	10,613		315		11.93		11,027		329		12.10		13,641		396		11.68
Direct/Indirect consumer	82,485		598		2.90		82,364		620		3.06		84,198		733		3.50
Other consumer	1,756		17		4.17		1,666		19		4.36		2,565		41		6.41
Total consumer	543,559		6,319		4.66		551,338		6,554		4.79		581,572		7,172		4.95
U.S. commercial	217,464		1,741		3.21		210,706		1,666		3.20		199,644		1,742		3.51
Commercial real estate	40,612		340		3.36		39,179		326		3.38		37,627		323		3.46
Commercial lease financing	23,579		205		3.48		23,534		236		4.01		21,446		216		4.02
Non-U.S. commercial	89,020		543		2.45		81,502		467		2.32		59,209		369		2.50
Total commercial	370,675		2,829		3.06		354,921		2,695		3.07		317,926		2,650		3.35
Total loans and leases	914,234		9,148		4.01		906,259		9,249		4.12		899,498		9,822		4.38
Other earning assets	81,740		713		3.50		90,172		733		3.29		88,459		716		3.24
Total earning assets⁽⁴⁾	1,769,336		14,007		3.17		1,800,786		14,279		3.20		1,772,568		14,174		3.21
Cash and cash equivalents ⁽¹⁾	104,486		40				92,846		33				116,025		52
Other assets, less allowance for loan and lease losses	310,788						318,798						305,970
Total assets	$	2,184,610					$	2,212,430					$	2,194,563

⁽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 Consolidated Balance Sheet presentation of these deposits. In addition, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, which are included in the time deposits placed and other short-term investments line in prior periods, have been included in the cash and cash equivalents line. Net interest income and net interest yield are calculated excluding these fees.


⁽²⁾	Yields on debt securities carried at fair value 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 2013				First Quarter 2013				Second Quarter 2012
Federal funds sold and securities borrowed or purchased under agreements to resell		$	13			$	11			$	36
Debt securities		(48		)		(122		)		(386		)
U.S. commercial		(27		)		(29		)		(16		)
Non-U.S. commercial		(1		)		(1		)		—
Net hedge expenses on assets		$	(63	)		$	(141	)		$	(366	)

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 2013						First Quarter 2013						Second Quarter 2012
	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	$	44,897	$	6	0.05	%	$	42,934	$	6	0.05	%	$	42,394	$	14	0.13	%
NOW and money market deposit accounts	500,628		107		0.09		501,177		117		0.09		460,788		188		0.16
Consumer CDs and IRAs	85,001		130		0.62		88,376		138		0.63		96,858		171		0.71
Negotiable CDs, public funds and other deposits	22,721		27		0.46		20,880		26		0.52		21,661		35		0.65
Total U.S. interest-bearing deposits	653,247		270		0.17		653,367		287		0.18		621,701		408		0.26
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries	10,832		17		0.64		12,153		19		0.64		14,598		25		0.69
Governments and official institutions	924		—		0.26		901		1		0.23		895		1		0.37
Time, savings and other	55,661		79		0.56		54,599		75		0.56		52,584		85		0.65
Total non-U.S. interest-bearing deposits	67,417		96		0.57		67,653		95		0.57		68,077		111		0.65
Total interest-bearing deposits	720,664		366		0.20		721,020		382		0.22		689,778		519		0.30
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings	318,028		809		1.02		337,644		749		0.90		318,909		943		1.19
Trading account liabilities	94,349		427		1.82		92,047		472		2.08		84,728		448		2.13
Long-term debt	270,198		1,674		2.48		273,999		1,834		2.70		333,173		2,534		3.05
Total interest-bearing liabilities ⁽¹⁾	1,403,239		3,276		0.94		1,424,710		3,437		0.98		1,426,588		4,444		1.25
Noninterest-bearing sources:
Noninterest-bearing deposits	359,292						354,260						343,110
Other liabilities	187,016						196,465						189,307
Shareholders’ equity	235,063						236,995						235,558
Total liabilities and shareholders’ equity	$	2,184,610					$	2,212,430					$	2,194,563
Net interest spread					2.23	%					2.22	%					1.96	%
Impact of noninterest-bearing sources					0.20						0.21						0.24
Net interest income/yield on earning assets ⁽²⁾			$	10,731	2.43	%			$	10,842	2.43	%			$	9,730	2.20	%


⁽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 2013				First Quarter 2013				Second Quarter 2012
NOW and money market deposit accounts		$	(1	)		$	—			$	(1	)
Consumer CDs and IRAs		21				13				22
Negotiable CDs, public funds and other deposits		4				3				4
Banks located in non-U.S. countries		3				3				3
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings		259				260				307
Long-term debt		(946		)		(897		)		(926		)
Net hedge income on liabilities		$	(660	)		$	(618	)		$	(591	)

⁽²⁾

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
	2013						2012
	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⁾	$	15,606	$	92	1.19	%	$	29,440	$	129	0.88	%
Federal funds sold and securities borrowed or purchased under agreements to resell	235,417		634		0.54		233,604		820		0.71
Trading account assets	187,957		2,604		2.79		165,010		2,701		3.29
Debt securities ⁽²⁾	349,794		5,113		2.92		349,350		4,662		2.67
Loans and leases ⁽³⁾:
Residential mortgage	257,949		4,586		3.56		269,436		5,145		3.82
Home equity	103,812		1,948		3.77		121,433		2,257		3.73
U.S. credit card	90,712		4,441		9.87		96,676		4,815		10.02
Non-U.S. credit card	10,819		644		12.01		13,896		804		11.64
Direct/Indirect consumer	82,425		1,218		2.98		86,259		1,534		3.58
Other consumer	1,710		36		4.26		2,592		81		6.33
Total consumer	547,427		12,873		4.73		590,292		14,636		4.98
U.S. commercial	214,103		3,407		3.21		197,377		3,498		3.56
Commercial real estate	39,899		666		3.37		38,408		662		3.47
Commercial lease financing	23,556		441		3.75		21,563		488		4.52
Non-U.S. commercial	85,284		1,010		2.39		58,970		760		2.59
Total commercial	362,842		5,524		3.07		316,318		5,408		3.44
Total loans and leases	910,269		18,397		4.07		906,610		20,044		4.44
Other earning assets	85,932		1,446		3.39		86,322		1,439		3.35
Total earning assets⁽⁴⁾	1,784,975		28,286		3.18		1,770,336		29,795		3.38
Cash and cash equivalents ⁽¹⁾	98,698		73				114,268		99
Other assets, less allowance for loan and lease losses	314,770						306,264
Total assets	$	2,198,443					$	2,190,868

⁽¹⁾


⁽²⁾	Yields on debt securities carried at fair value are calculated at 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:



	2013				2012
Federal funds sold and securities borrowed or purchased under agreements to resell		$	24			$	87
Debt securities		(170		)		(526		)
U.S. commercial		(56		)		(32		)
Non-U.S. commercial		(2		)		(1		)
Net hedge expenses on assets		$	(204	)		$	(472	)

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
	2013						2012
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-bearing liabilities
U.S. interest-bearing deposits:
Savings	$	43,921	$	12	0.05	%	$	41,468	$	28	0.13	%
NOW and money market deposit accounts	500,901		224		0.09		459,718		374		0.16
Consumer CDs and IRAs	86,679		268		0.62		98,451		365		0.75
Negotiable CDs, public funds and other deposits	21,806		53		0.49		22,125		71		0.64
Total U.S. interest-bearing deposits	653,307		557		0.17		621,762		838		0.27
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries	11,489		36		0.64		16,384		53		0.65
Governments and official institutions	912		1		0.24		1,091		2		0.40
Time, savings and other	55,133		154		0.56		53,912		175		0.65
Total non-U.S. interest-bearing deposits	67,534		191		0.57		71,387		230		0.65
Total interest-bearing deposits	720,841		748		0.21		693,149		1,068		0.31
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings	327,782		1,558		0.96		305,981		1,824		1.20
Trading account liabilities	93,204		899		1.95		78,300		925		2.38
Long-term debt	272,088		3,508		2.59		348,346		5,242		3.02
Total interest-bearing liabilities ⁽¹⁾	1,413,915		6,713		0.96		1,425,776		9,059		1.28
Noninterest-bearing sources:
Noninterest-bearing deposits	356,790						338,351
Other liabilities	191,714						192,679
Shareholders’ equity	236,024						234,062
Total liabilities and shareholders’ equity	$	2,198,443					$	2,190,868
Net interest spread					2.22	%					2.10	%
Impact of noninterest-bearing sources					0.21						0.25
Net interest income/yield on earning assets ⁽²⁾			$	21,573	2.43	%			$	20,736	2.35	%


⁽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:



	2013				2012
NOW and money market deposit accounts		$	(1	)		$	(1	)
Consumer CDs and IRAs		34				56
Negotiable CDs, public funds and other deposits		7				7
Banks located in non-U.S. countries		6				7
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings		519				632
Long-term debt		(1,843		)		(1,950		)
Net hedge income on liabilities		$	(1,278	)		$	(1,249	)

⁽²⁾

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, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale debt securities
U.S. Treasury and agency securities	$	2,984	$	144	$	(29	)	$	3,099
Mortgage-backed securities:
Agency	171,486		1,174		(3,476		)	169,184
Agency-collateralized mortgage obligations	31,315		1,095		(409		)	32,001
Non-agency residential	7,813		343		(130		)	8,026
Commercial	3,521		228		(1		)	3,748
Non-U.S. securities	6,397		47		(22		)	6,422
Corporate/Agency bonds	1,206		33		(8		)	1,231
Other taxable securities, substantially all asset-backed securities	11,468		24		(10		)	11,482
Total taxable securities	236,190		3,088		(4,085		)	235,193
Tax-exempt securities	4,995		12		(46		)	4,961
Total available-for-sale debt securities	241,185		3,100		(4,131		)	240,154
Other debt securities carried at fair value	42,698		158		(1,529		)	41,327
Total debt securities carried at fair value	283,883		3,258		(5,660		)	281,481
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities	54,922		10		(2,076		)	52,856
Total debt securities	$	338,805	$	3,268	$	(7,736	)	$	334,337
Available-for-sale marketable equity securities ⁽¹⁾	$	754	$	649	$	(1	)	$	1,402

	March 31, 2013
Available-for-sale debt securities
U.S. Treasury and agency securities	$	17,186	$	315	$	(62	)	$	17,439
Mortgage-backed securities:
Agency	170,842		4,050		(624		)	174,268
Agency-collateralized mortgage obligations	33,573		1,405		(217		)	34,761
Non-agency residential	8,591		402		(116		)	8,877
Non-agency commercial	3,539		295		—			3,834
Non-U.S. securities	5,606		52		(8		)	5,650
Corporate/Agency bonds	1,349		47		(11		)	1,385
Other taxable securities, substantially all asset-backed securities	11,014		52		(12		)	11,054
Total taxable securities	251,700		6,618		(1,050		)	257,268
Tax-exempt securities	4,607		17		(42		)	4,582
Total available-for-sale debt securities	256,307		6,635		(1,092		)	261,850
Other debt securities carried at fair value	43,442		129		(289		)	43,282
Total debt securities carried at fair value	299,749		6,764		(1,381		)	305,132
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities	49,577		446		(249		)	49,774
Total debt securities	$	349,326	$	7,210	$	(1,630	)	$	354,906
Available-for-sale marketable equity securities ⁽¹⁾	$	769	$	795	$	—		$	1,564


⁽¹⁾	Classified in other assets on the Corporation's Consolidated Balance Sheet.



Other Debt Securities Carried at Fair Value
(Dollars in millions)	June 30, 2013		March 31, 2013
U.S. Treasury and agency securities	$	—	$	3,861
Mortgage-backed securities:
Agency	26,121		29,178
Agency-collateralized mortgage obligations	1,006		958
Commercial	758		103
Non-U.S. securities ⁽¹⁾	13,442		9,182
Total	$	41,327	$	43,282


⁽¹⁾	These securities are used to satisfy certain international regulatory liquidity requirements.

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 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services			Global Banking			Global Markets			GWIM			All Other
Net interest income (FTE basis)	$	10,771	$	5,034	$	699		$	2,252		$	1,013		$	1,505		$	268
Noninterest income	12,178		2,400		1,416			1,887			3,176			2,994			305
Total revenue, net of interest expense (FTE basis)	22,949		7,434		2,115			4,139			4,189			4,499			573
Provision for credit losses	1,211		967		291			163			(16		)	(15		)	(179		)
Noninterest expense	16,018		4,183		3,394			1,859			2,769			3,272			541
Income (loss) before income taxes	5,720		2,284		(1,570		)	2,117			1,436			1,242			211
Income tax expense (benefit) (FTE basis)	1,708		892		(633		)	826			477			484			(338		)
Net income (loss)	$	4,012	$	1,392	$	(937	)	$	1,291		$	959		$	758		$	549

Average
Total loans and leases	$	914,234	$	163,593	$	90,114		$	255,674		n/m			$	109,589		$	238,910
Total assets ⁽¹⁾	2,184,610		584,143		122,275			327,531			$	653,116		263,735			233,810
Total deposits	1,079,956		522,259		n/m			227,668			n/m			235,344			33,774
Period end
Total loans and leases	$	921,570	$	164,851	$	89,257		$	258,502		n/m			$	111,785		$	234,047
Total assets ⁽¹⁾	2,123,320		587,576		124,031			334,820			$	607,050		263,867			205,976
Total deposits	1,080,783		525,099		n/m			229,586			n/m			235,012			34,597

	First Quarter 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services			Global Banking			Global Markets			GWIM			All Other
Net interest income (FTE basis)	$	10,875	$	5,013	$	743		$	2,160		$	1,109		$	1,596		$	254
Noninterest income	12,533		2,399		1,569			1,870			3,760			2,825			110
Total revenue, net of interest expense (FTE basis)	23,408		7,412		2,312			4,030			4,869			4,421			364
Provision for credit losses	1,713		952		335			149			5			22			250
Noninterest expense	19,500		4,170		5,406			1,837			3,073			3,253			1,761
Income (loss) before income taxes	2,195		2,290		(3,429		)	2,044			1,791			1,146			(1,647		)
Income tax expense (benefit) (FTE basis)	712		851		(1,272		)	760			622			426			(675		)
Net income (loss)	$	1,483	$	1,439	$	(2,157	)	$	1,284		$	1,169		$	720		$	(972	)

Average
Total loans and leases	$	906,259	$	165,845	$	92,963		$	244,068		n/m			$	106,082		$	244,557
Total assets ⁽¹⁾	2,212,430		564,469		128,331			318,044			$	667,265		282,298			252,023
Total deposits	1,075,280		502,508		n/m			222,120			n/m			253,413			35,549
Period end
Total loans and leases	$	911,592	$	163,820	$	90,971		$	250,985		n/m			$	107,048		$	241,406
Total assets ⁽¹⁾	2,174,819		593,167		129,116			322,039			$	625,639		268,263			236,595
Total deposits	1,095,183		530,581		n/m			228,248			n/m			239,853			35,759

	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	$	4,878	$	713		$	1,940		$	721		$	1,393		$	137
Noninterest income	12,420		2,617		1,816			1,968			2,857			2,701			461
Total revenue, net of interest expense (FTE basis)	22,202		7,495		2,529			3,908			3,578			4,094			598
Provision for credit losses	1,773		1,157		187			(152		)	(1		)	47			535
Noninterest expense	17,048		4,420		3,524			1,967			2,855			3,177			1,105
Income (loss) before income taxes	3,381		1,918		(1,182		)	2,093			724			870			(1,042		)
Income tax expense (benefit) (FTE basis)	918		710		(438		)	775			227			322			(678		)
Net income (loss)	$	2,463	$	1,208	$	(744	)	$	1,318		$	497		$	548		$	(364	)

Average
Total loans and leases	$	899,498	$	173,565	$	105,507		$	219,504		n/m			$	98,964		$	263,649
Total assets ⁽¹⁾	2,194,563		531,995		151,514			311,043			$	596,861		262,124			341,026
Total deposits	1,032,888		474,328		n/m			213,862			n/m			238,540			43,722
Period end
Total loans and leases	$	892,315	$	171,094	$	104,079		$	218,681		n/m			$	100,261		$	259,830
Total assets ⁽¹⁾	2,160,854		537,946		146,386			310,933			$	576,175		263,006			326,408
Total deposits	1,035,225		479,795		n/m			216,529			n/m			237,339			39,362


⁽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, 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services			Global Banking			Global Markets			GWIM		All Other
Net interest income (FTE basis)	$	21,646	$	10,047	$	1,442		$	4,412		$	2,122		$	3,101	$	522
Noninterest income	24,711		4,799		2,985			3,757			6,936			5,819		415
Total revenue, net of interest expense (FTE basis)	46,357		14,846		4,427			8,169			9,058			8,920		937
Provision for credit losses	2,924		1,919		626			312			(11		)	7		71
Noninterest expense	35,518		8,353		8,800			3,696			5,842			6,525		2,302
Income (loss) before income taxes	7,915		4,574		(4,999		)	4,161			3,227			2,388		(1,436		)
Income tax expense (benefit) (FTE basis)	2,420		1,743		(1,905		)	1,586			1,099			910		(1,013		)
Net income (loss)	$	5,495	$	2,831	$	(3,094	)	$	2,575		$	2,128		$	1,478	$	(423	)

Average
Total loans and leases	$	910,269	$	164,713	$	91,531		$	249,903		n/m			$	107,845	$	241,718
Total assets ⁽¹⁾	2,198,443		574,360		125,286			322,814			$	660,151		272,965		242,867
Total deposits	1,077,631		512,438		n/m			224,909			n/m			244,329		34,657
Period end
Total loans and leases	$	921,570	$	164,851	$	89,257		$	258,502		n/m			$	111,785	$	234,047
Total assets ⁽¹⁾	2,123,320		587,576		124,031			334,820			$	607,050		263,867		205,976
Total deposits	1,080,783		525,099		n/m			229,586			n/m			235,012		34,597

	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	$	10,160	$	1,481		$	4,027		$	1,628		$	2,924	$	615
Noninterest income (loss)	23,852		4,968		3,712			3,910			6,357			5,317		(412		)
Total revenue, net of interest expense (FTE basis)	44,687		15,128		5,193			7,937			7,985			8,241		203
Provision for credit losses	4,191		2,064		694			(427		)	(14		)	93		1,781
Noninterest expense	36,189		8,725		7,404			3,928			6,090			6,409		3,633
Income (loss) before income taxes	4,307		4,339		(2,905		)	4,436			1,909			1,739		(5,211		)
Income tax expense (benefit) (FTE basis)	1,191		1,599		(1,026		)	1,634			583			641		(2,240		)
Net income (loss)	$	3,116	$	2,740	$	(1,879	)	$	2,802		$	1,326		$	1,098	$	(2,971	)

Average
Total loans and leases	$	906,610	$	177,971	$	107,554		$	221,854		n/m			$	98,490	$	266,938
Total assets ⁽¹⁾	2,190,868		528,114		154,736			314,088			$	585,423		265,899		342,608
Total deposits	1,031,500		469,181		n/m			212,638			n/m			239,200		48,125
Period end
Total loans and leases	$	892,315	$	171,094	$	104,079		$	218,681		n/m			$	100,261	$	259,830
Total assets ⁽¹⁾	2,160,854		537,946		146,386			310,933			$	576,175		263,006		326,408
Total deposits	1,035,225		479,795		n/m			216,529			n/m			237,339		39,362


⁽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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Net interest income (FTE basis)	$	10,047		$	10,160		$	5,034		$	5,013		$	4,869		$	4,824		$	4,878
Noninterest income:
Card income	2,393			2,634			1,186			1,207			1,342			1,340			1,345
Service charges	2,048			2,143			1,035			1,013			1,034			1,101			1,081
All other income (loss)	358			191			179			179			156			(4		)	191
Total noninterest income	4,799			4,968			2,400			2,399			2,532			2,437			2,617
Total revenue, net of interest expense (FTE basis)	14,846			15,128			7,434			7,412			7,401			7,261			7,495

Provision for credit losses	1,919			2,064			967			952			1,078			1,006			1,157

Noninterest expense	8,353			8,725			4,183			4,170			4,182			4,119			4,420
Income before income taxes	4,574			4,339			2,284			2,290			2,141			2,136			1,918
Income tax expense (FTE basis)	1,743			1,599			892			851			700			790			710
Net income	$	2,831		$	2,740		$	1,392		$	1,439		$	1,441		$	1,346		$	1,208

Net interest yield (FTE basis)	3.80		%	4.19		%	3.72		%	3.89		%	3.88		%	3.89		%	4.00		%
Return on average allocated capital ^{(1, 2)}	19.06			—			18.64			19.48			—			—			—
Return on average economic capital ^{(1, 2)}	—			23.32			—			—			23.38			22.12			20.46
Efficiency ratio (FTE basis)	56.26			57.68			56.26			56.27			56.49			56.73			58.98

Balance Sheet
Average
Total loans and leases	$	164,713		$	177,971		$	163,593		$	165,845		$	167,219		$	169,092		$	173,565
Total earning assets⁽³⁾	532,966			487,268			542,697			523,128			499,245			493,204			490,845
Total assets ⁽³⁾	574,360			528,114			584,143			564,469			540,787			534,191			531,995
Total deposits	512,438			469,181			522,259			502,508			484,086			478,142			474,328
Allocated capital ^{(1, 2)}	30,000			—			30,000			30,000			—			—			—
Economic capital ^{(1, 2)}	—			23,682			—			—			24,561			24,271			23,807

Period end
Total loans and leases	$	164,851		$	171,094		$	164,851		$	163,820		$	169,266		$	168,296		$	171,094
Total earning assets⁽³⁾	545,685			496,708			545,685			550,989			513,114			498,248			496,708
Total assets ⁽³⁾	587,576			537,946			587,576			593,167			554,915			540,419			537,946
Total deposits	525,099			479,795			525,099			530,581			496,159			484,623			479,795

⁽¹⁾

Effective January 1, 2013, the Corporation revised, on a prospective basis, its methodology for allocating capital to the business segments. In connection with the change in methodology, the Corporation updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For more information, see Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.

⁽²⁾

Return on average allocated capital and return on average economic capital are calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital or average economic capital, as applicable. Allocated capital, economic capital and the related returns are non-GAAP financial measures. The Corporation believes 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⁾	Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.

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, 2013
	Total Consumer & Business Banking			Deposits ⁽¹⁾			Consumer Lending ⁽²⁾
Net interest income (FTE basis)	$	10,047		$	4,859		$	5,188
Noninterest income:
Card income	2,393			30			2,363
Service charges	2,048			2,048			—
All other income	358			219			139
Total noninterest income	4,799			2,297			2,502
Total revenue, net of interest expense (FTE basis)	14,846			7,156			7,690

Provision for credit losses	1,919			98			1,821

Noninterest expense	8,353			5,633			2,720
Income before income taxes	4,574			1,425			3,149
Income tax expense (FTE basis)	1,743			543			1,200
Net income	$	2,831		$	882		$	1,949

Net interest yield (FTE basis)	3.80		%	1.90		%	7.33		%
Return on average allocated capital ^{(3, 4)}	19.06			11.55			26.97
Efficiency ratio (FTE basis)	56.26			78.71			35.37

Balance Sheet
Average
Total loans and leases	$	164,713		$	22,525		$	142,188
Total earning assets ⁽⁵⁾	532,966			516,481			142,629
Total assets ⁽⁵⁾	574,360			549,273			151,231
Total deposits	512,438			511,978			n/m
Allocated capital ^{(3, 4)}	30,000			15,400			14,600

Period end
Total loans and leases	$	164,851		$	22,467		$	142,384
Total earning assets ⁽⁵⁾	545,685			528,738			142,824
Total assets ⁽⁵⁾	587,576			561,657			151,796
Total deposits	525,099			523,928			n/m

	Six Months Ended June 30, 2012
	Total Consumer & Business Banking			Deposits ⁽¹⁾			Consumer Lending ⁽²⁾
Net interest income (FTE basis)	$	10,160		$	4,669		$	5,491
Noninterest income:
Card income	2,634			31			2,603
Service charges	2,143			2,143			—
All other income	191			183			8
Total noninterest income	4,968			2,357			2,611
Total revenue, net of interest expense (FTE basis)	15,128			7,026			8,102

Provision for credit losses	2,064			278			1,786

Noninterest expense	8,725			5,739			2,986
Income before income taxes	4,339			1,009			3,330
Income tax expense (FTE basis)	1,599			372			1,227
Net income	$	2,740		$	637		$	2,103

Net interest yield (FTE basis)	4.19		%	1.99		%	7.11		%
Return on average economic capital ^{(3, 4)}	23.32			10.25			37.98
Efficiency ratio (FTE basis)	57.68			81.68			36.86

Balance Sheet
Average
Total loans and leases	$	177,971		$	23,842		$	154,129
Total earning assets ⁽⁵⁾	487,268			471,292			155,323
Total assets ⁽⁵⁾	528,114			504,744			162,717
Total deposits	469,181			468,854			n/m
Economic capital ^{(3, 4)}	23,682			12,513			11,169

Period end
Total loans and leases	$	171,094		$	23,356		$	147,738
Total earning assets ⁽⁵⁾	496,708			481,837			148,269
Total assets ⁽⁵⁾	537,946			514,813			156,531
Total deposits	479,795			478,869			n/m

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 2013
	Total Consumer & Business Banking			Deposits ⁽¹⁾			Consumer Lending ⁽²⁾
Net interest income (FTE basis)	$	5,034		$	2,472		$	2,562
Noninterest income:
Card income	1,186			15			1,171
Service charges	1,035			1,035			—
All other income	179			117			62
Total noninterest income	2,400			1,167			1,233
Total revenue, net of interest expense (FTE basis)	7,434			3,639			3,795

Provision for credit losses	967			35			932

Noninterest expense	4,183			2,812			1,371
Income before income taxes	2,284			792			1,492
Income tax expense (FTE basis)	892			308			584
Net income	$	1,392		$	484		$	908

Net interest yield (FTE basis)	3.72		%	1.88		%	7.26		%
Return on average allocated capital ^{(3, 4)}	18.64			12.62			24.98
Efficiency ratio (FTE basis)	56.26			77.24			36.14

Balance Sheet
Average
Total loans and leases	$	163,593		$	22,434		$	141,159
Total earning assets ⁽⁵⁾	542,697			526,322			141,599
Total assets ⁽⁵⁾	584,143			559,119			150,248
Total deposits	522,259			521,784			n/m
Allocated capital ^{(3, 4)}	30,000			15,400			14,600

Period end
Total loans and leases	$	164,851		$	22,467		$	142,384
Total earning assets ⁽⁵⁾	545,685			528,738			142,824
Total assets ⁽⁵⁾	587,576			561,657			151,796
Total deposits	525,099			523,928			n/m

	First Quarter 2013
	Total Consumer & Business Banking			Deposits ⁽¹⁾			Consumer Lending ⁽²⁾
Net interest income (FTE basis)	$	5,013		$	2,387		$	2,626
Noninterest income:
Card income	1,207			15			1,192
Service charges	1,013			1,013			—
All other income	179			102			77
Total noninterest income	2,399			1,130			1,269
Total revenue, net of interest expense (FTE basis)	7,412			3,517			3,895

Provision for credit losses	952			63			889

Noninterest expense	4,170			2,821			1,349
Income before income taxes	2,290			633			1,657
Income tax expense (FTE basis)	851			235			616
Net income	$	1,439		$	398		$	1,041

Net interest yield (FTE basis)	3.89		%	1.91		%	7.41		%
Return on average allocated capital ^{(3, 4)}	19.48			10.47			28.99
Efficiency ratio (FTE basis)	56.27			80.24			34.62

Balance Sheet
Average
Total loans and leases	$	165,845		$	22,616		$	143,229
Total earning assets ⁽⁵⁾	523,128			506,531			143,671
Total assets ⁽⁵⁾	564,469			539,319			152,224
Total deposits	502,508			502,063			n/m
Allocated capital ^{(3, 4)}	30,000			15,400			14,600

Period end
Total loans and leases	$	163,820		$	22,488		$	141,332
Total earning assets ⁽⁵⁾	550,989			534,098			141,778
Total assets ⁽⁵⁾	593,167			567,346			150,708
Total deposits	530,581			529,501			n/m

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 2012
	Total Consumer & Business Banking			Deposits ⁽¹⁾			Consumer Lending ⁽²⁾
Net interest income (FTE basis)	$	4,878		$	2,216		$	2,662
Noninterest income:
Card income	1,345			19			1,326
Service charges	1,081			1,081			—
All other income	191			97			94
Total noninterest income	2,617			1,197			1,420
Total revenue, net of interest expense (FTE basis)	7,495			3,413			4,082

Provision for credit losses	1,157			191			966

Noninterest expense	4,420			2,865			1,555
Income before income taxes	1,918			357			1,561
Income tax expense (FTE basis)	710			132			578
Net income	$	1,208		$	225		$	983

Net interest yield (FTE basis)	4.00		%	1.87		%	7.09		%
Return on average economic capital ^{(3, 4)}	20.46			7.06			36.15
Efficiency ratio (FTE basis)	58.98			83.91			38.14

Balance Sheet
Average
Total loans and leases	$	173,565		$	23,609		$	149,956
Total earning assets ⁽⁵⁾	490,845			475,573			151,031
Total assets ⁽⁵⁾	531,995			509,052			158,702
Total deposits	474,328			473,992			n/m
Economic capital ^{(3, 4)}	23,807			12,837			10,970

Period end
Total loans and leases	$	171,094		$	23,356		$	147,738
Total earning assets ⁽⁵⁾	496,708			481,837			148,269
Total assets ⁽⁵⁾	537,946			514,813			156,531
Total deposits	479,795			478,869			n/m


⁽¹⁾	During the first quarter of 2013, Business Banking results were moved to Deposits and prior periods were reclassified to conform to current period presentation.


⁽²⁾	During the second quarter of 2013, Card Services was renamed Consumer Lending as the result of the decision to move consumer Dealer Financial Services results from Global Banking to Consumer & Business Banking. Prior periods were reclassified to conform to current period presentation.

⁽³⁾

⁽⁴⁾


⁽⁵⁾	For presentation purposes, in segments or businesses where the total of liabilities and equity exceeds assets, we allocate assets from All Other to match the segments' and businesses' liabilities and allocated shareholders' equity. As a result, total earning assets and total assets of the businesses may not equal total Consumer & Business Banking.

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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Average deposit balances
Checking	$	233,004		$	205,972		$	238,033		$	227,920		$	217,811		$	212,142		$	209,250
Savings	42,077			39,203			43,183			40,959			39,121			39,371			40,119
MMS	158,781			140,081			162,432			155,088			148,171			145,592			142,096
CDs and IRAs	74,140			79,705			74,064			74,217			74,589			76,801			78,604
Non-U.S. and other	4,436			4,220			4,547			4,324			4,394			4,236			4,259
Total average deposit balances	$	512,438		$	469,181		$	522,259		$	502,508		$	484,086		$	478,142		$	474,328

Deposit spreads (excludes noninterest costs)
Checking	2.04		%	2.73		%	2.02		%	2.06		%	2.28		%	2.46		%	2.65		%
Savings	2.20			2.87			2.20			2.20			2.48			2.62			2.78
MMS	1.04			1.27			1.05			1.04			1.11			1.16			1.22
CDs and IRAs	0.53			0.58			0.51			0.55			0.57			0.58			0.62
Non-U.S. and other	1.01			1.03			1.00			1.02			0.93			1.02			1.06
Total deposit spreads	1.51			1.92			1.51			1.52			1.66			1.76			1.88

Client brokerage assets	$	84,182		$	72,226		$	84,182		$	82,616		$	75,946		$	75,852		$	72,226

Online banking active accounts (units in thousands)	29,867			30,232			29,867			30,102			29,638			29,809			30,232
Mobile banking active accounts (units in thousands)	13,214			10,290			13,214			12,641			12,013			11,097			10,290
Banking centers	5,328			5,594			5,328			5,389			5,478			5,540			5,594
ATMs	16,354			16,220			16,354			16,311			16,347			16,253			16,220

U.S. credit card
Loans
Average credit card outstandings	$	90,712		$	96,676		$	89,722		$	91,712		$	92,849		$	93,292		$	95,018
Ending credit card outstandings	90,523			94,291			90,523			90,047			94,835			93,162			94,291
Credit quality
Net charge-offs	$	1,864		$	2,575		$	917		$	947		$	978		$	1,079		$	1,244
	4.14		%	5.36		%	4.10		%	4.19		%	4.19		%	4.60		%	5.27		%
30+ delinquency	$	2,200		$	2,948		$	2,200		$	2,510		$	2,748		$	2,855		$	2,948
	2.43		%	3.13		%	2.43		%	2.79		%	2.90		%	3.06		%	3.13		%
90+ delinquency	$	1,167		$	1,594		$	1,167		$	1,360		$	1,437		$	1,471		$	1,594
	1.29		%	1.69		%	1.29		%	1.51		%	1.52		%	1.58		%	1.69		%
Other U.S. credit card indicators
Gross interest yield	9.87		%	10.02		%	9.80		%	9.95		%	10.01		%	10.04		%	9.97		%
Risk-adjusted margin	8.25			7.02			8.11			8.39			8.48			7.66			7.51
New account growth (in thousands)	1,863			1,564			957			906			837			857			782
Purchase volumes	$	98,577		$	93,683		$	51,945		$	46,632		$	51,628		$	48,189		$	48,886

Debit card data
Purchase volumes	$	132,375		$	128,025		$	67,740		$	64,635		$	66,217		$	64,121		$	64,993

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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Net interest income (FTE basis)	$	1,442		$	1,481		$	699		$	743		$	729		$	719		$	713
Noninterest income:
Mortgage banking income (loss)	2,898			3,648			1,411			1,487			(284		)	2,188			1,820
All other income (loss)	87			64			5			82			30			176			(4		)
Total noninterest income (loss)	2,985			3,712			1,416			1,569			(254		)	2,364			1,816
Total revenue, net of interest expense (FTE basis)	4,427			5,193			2,115			2,312			475			3,083			2,529

Provision for credit losses	626			694			291			335			485			263			187

Noninterest expense	8,800			7,404			3,394			5,406			5,607			4,179			3,524
Loss before income taxes	(4,999		)	(2,905		)	(1,570		)	(3,429		)	(5,617		)	(1,359		)	(1,182		)
Income tax benefit (FTE basis)	(1,905		)	(1,026		)	(633		)	(1,272		)	(1,913		)	(503		)	(438		)
Net loss	$	(3,094	)	$	(1,879	)	$	(937	)	$	(2,157	)	$	(3,704	)	$	(856	)	$	(744	)

Net interest yield (FTE basis)	2.80		%	2.34		%	2.75		%	2.85		%	2.66		%	2.41		%	2.28		%

Balance Sheet
Average
Total loans and leases	$	91,531		$	107,554		$	90,114		$	92,963		$	96,605		$	102,472		$	105,507
Total earning assets	103,890			127,320			102,086			105,715			109,139			118,909			125,600
Total assets	125,286			154,736			122,275			128,331			131,652			140,510			151,514
Allocated capital^{(1, 2)}	24,000			—			24,000			24,000			—			—			—
Economic capital ^{(1, 2)}	—			14,455			—			—			12,474			13,335			14,120

Period end
Total loans and leases	$	89,257		$	104,079		$	89,257		$	90,971		$	94,660		$	98,642		$	104,079
Total earning assets	102,211			123,629			102,211			105,544			106,974			112,977			123,629
Total assets	124,031			146,386			124,031			129,116			131,047			138,108			146,386

Period end (in billions)
Mortgage serviced portfolio ^{(3, 4)}	$	986.4		$	1,593.8		$	986.4		$	1,185.0		$	1,331.8		$	1,461.8		$	1,593.8

⁽¹⁾


⁽²⁾	Allocated capital and economic capital are non-GAAP financial measures. The Corporation believes 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⁾	Includes servicing of residential mortgage loans, home equity lines of credit and home equity loans.


⁽⁴⁾	Excludes loans for which servicing transferred to third parties as of June 30, 2013 with an effective mortgage servicing right sales date of July 1, 2013.

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, 2013
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	1,442		$	691		$	751
Noninterest income:
Mortgage banking income	2,898			1,351			1,547
All other income (loss)	87			(58		)	145
Total noninterest income	2,985			1,293			1,692
Total revenue, net of interest expense (FTE basis)	4,427			1,984			2,443

Provision for credit losses	626			156			470

Noninterest expense	8,800			1,676			7,124
Income (loss) before income taxes	(4,999		)	152			(5,151		)
Income tax expense (benefit) (FTE basis)	(1,905		)	58			(1,963		)
Net income (loss)	$	(3,094	)	$	94		$	(3,188	)

Balance Sheet
Average
Total loans and leases	$	91,531		$	47,048		$	44,483
Total earning assets	103,890			53,743			50,147
Total assets	125,286			54,251			71,035
Allocated capital ^{(2, 3)}	24,000			6,000			18,000

Period end
Total loans and leases	$	89,257		$	46,891		$	42,366
Total earning assets	102,211			53,571			48,640
Total assets	124,031			53,674			70,357

	Six Months Ended June 30, 2012
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	1,481		$	677		$	804
Noninterest income:
Mortgage banking income (loss)	3,648			1,541			2,107
All other income (loss)	64			(4		)	68
Total noninterest income	3,712			1,537			2,175
Total revenue, net of interest expense (FTE basis)	5,193			2,214			2,979

Provision for credit losses	694			19			675

Noninterest expense	7,404			1,644			5,760
Income (loss) before income taxes	(2,905		)	551			(3,456		)
Income tax expense (benefit) (FTE basis)	(1,026		)	203			(1,229		)
Net income (loss)	$	(1,879	)	$	348		$	(2,227	)

Balance Sheet
Average
Total loans and leases	$	107,554		$	51,122		$	56,432
Total earning assets	127,320			57,672			69,648
Total assets	154,736			58,623			96,113
Economic capital ^{(2, 3)}	14,455			3,583			10,872

Period end
Total loans and leases	$	104,079		$	50,112		$	53,967
Total earning assets	123,629			57,716			65,913
Total assets	146,386			58,986			87,400

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 2013
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	699		$	344		$	355
Noninterest income:
Mortgage banking income	1,411			654			757
All other income (loss)	5			6			(1		)
Total noninterest income	1,416			660			756
Total revenue, net of interest expense (FTE basis)	2,115			1,004			1,111

Provision for credit losses	291			64			227

Noninterest expense	3,394			863			2,531
Income (loss) before income taxes	(1,570		)	77			(1,647		)
Income tax expense (benefit) (FTE basis)	(633		)	30			(663		)
Net income (loss)	$	(937	)	$	47		$	(984	)

Balance Sheet
Average
Total loans and leases	$	90,114		$	46,870		$	43,244
Total earning assets	102,086			53,739			48,347
Total assets	122,275			54,000			68,275
Allocated capital ^{(2, 3)}	24,000			6,000			18,000

Period end
Total loans and leases	$	89,257		$	46,891		$	42,366
Total earning assets	102,211			53,571			48,640
Total assets	124,031			53,674			70,357

	First Quarter 2013
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	743		$	347		$	396
Noninterest income:
Mortgage banking income (loss)	1,487			697			790
All other income (loss)	82			(64		)	146
Total noninterest income	1,569			633			936
Total revenue, net of interest expense (FTE basis)	2,312			980			1,332

Provision for credit losses	335			92			243

Noninterest expense	5,406			813			4,593
Income (loss) before income taxes	(3,429		)	75			(3,504		)
Income tax expense (benefit) (FTE basis)	(1,272		)	28			(1,300		)
Net income (loss)	$	(2,157	)	$	47		$	(2,204	)

Balance Sheet
Average
Total loans and leases	$	92,963		$	47,228		$	45,735
Total earning assets	105,715			53,746			51,969
Total assets	128,331			54,505			73,826
Allocated capital ^{(2, 3)}	24,000			6,000			18,000

Period end
Total loans and leases	$	90,971		$	46,929		$	44,042
Total earning assets	105,544			55,111			50,433
Total assets	129,116			55,581			73,535

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 2012
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	713		$	330		$	383
Noninterest income:
Mortgage banking income	1,820			826			994
All other income (loss)	(4		)	(31		)	27
Total noninterest income	1,816			795			1,021
Total revenue, net of interest expense (FTE basis)	2,529			1,125			1,404

Provision for credit losses	187			(35		)	222

Noninterest expense	3,524			791			2,733
Income (loss) before income taxes	(1,182		)	369			(1,551		)
Income tax expense (benefit) (FTE basis)	(438		)	136			(574		)
Net income (loss)	$	(744	)	$	233		$	(977	)

Balance Sheet
Average
Total loans and leases	$	105,507		$	50,580		$	54,927
Total earning assets	125,600			57,869			67,731
Total assets	151,514			58,898			92,616
Economic capital ^{(2, 3)}	14,120			3,700			10,420

Period end
Total loans and leases	$	104,079		$	50,112		$	53,967
Total earning assets	123,629			57,716			65,913
Total assets	146,386			58,986			87,400


⁽¹⁾	Consumer Real Estate Services includes Home Loans and Legacy Assets & Servicing. The results of certain mortgage servicing rights 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.

⁽²⁾


⁽³⁾	Allocated capital and economic capital are non-GAAP financial measures. The Corporation believes 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.)

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 2013				First Quarter 2013				Fourth Quarter 2012				Third Quarter 2012				Second Quarter 2012
	2013				2012				Second Quarter 2013				First Quarter 2013				Fourth Quarter 2012				Third Quarter 2012				Second Quarter 2012
Mortgage servicing rights at fair value rollforward:
Balance, beginning of period	$	5,716			$	7,378			$	5,776			$	5,716			$	5,087			$	5,708			$	7,589
Net additions (sales)	(775		)		70				(715		)		(60		)		97				85				(7		)
Impact of customer payments ⁽¹⁾	(574		)		(803		)		(260		)		(314		)		(335		)		(346		)		(282		)
Other changes in mortgage servicing rights fair value ⁽²⁾	1,460				(937		)		1,026				434				867				(360		)		(1,592		)
Balance, end of period	$	5,827			$	5,708			$	5,827			$	5,776			$	5,716			$	5,087			$	5,708

Capitalized mortgage servicing rights (% of loans serviced for investors)	77			bps	47			bps	77			bps	61			bps	55			bps	45			bps	47			bps
Mortgage loans serviced for investors (in billions)	$	759			$	1,224			$	759			$	949			$	1,045			$	1,142			$	1,224

Loan production:
Total Corporation ⁽³⁾
First mortgage	$	49,196			$	33,243			$	25,276			$	23,920			$	21,516			$	20,315			$	18,005
Home equity	2,612				1,690				1,496				1,116				962				933				930
Consumer Real Estate Services
First mortgage	$	39,778			$	26,391			$	20,509			$	19,269			$	16,561			$	15,566			$	14,206
Home equity	2,225				1,321				1,283				942				765				746				724

Mortgage banking income (loss)
Production income (loss):
Core production revenue	$	1,675			$	1,830			$	860			$	815			$	986			$	944			$	902
Representations and warranties provision	(447		)		(677		)		(197		)		(250		)		(2,955		)		(307		)		(395		)
Total production income (loss)	1,228				1,153				663				565				(1,969		)		637				507
Servicing income:
Servicing fees	1,698				2,534				785				913				1,096				1,089				1,205
Impact of customer payments ⁽¹⁾	(574		)		(803		)		(260		)		(314		)		(335		)		(346		)		(282		)
Fair value changes of mortgage servicing rights, net of risk management activities used to hedge certain market risks ⁽⁴⁾	527				388				215				312				912				560				194
Other servicing-related revenue	19				376				8				11				12				248				196
Total net servicing income	1,670				2,495				748				922				1,685				1,551				1,313
Total Consumer Real Estate Services mortgage banking income (loss)	2,898				3,648				1,411				1,487				(284		)		2,188				1,820
Other business segments’ mortgage banking loss ⁽⁵⁾	(457		)		(377		)		(233		)		(224		)		(256		)		(169		)		(161		)
Total consolidated mortgage banking income (loss)	$	2,441			$	3,271			$	1,178			$	1,263			$	(540	)		$	2,019			$	1,659


⁽¹⁾	Represents the change in the value of the mortgage servicing rights asset due to the impact of customer payments received during the period.

⁽²⁾

These amounts reflect the changes in modeled mortgage servicing rights fair value primarily due to observed changes in interest rates, volatility, spreads and the shape of the forward swap curve. In addition, these amounts reflect periodic adjustments to the valuation model to reflect changes in the modeled relationship between inputs and their impact on projected cash flows, changes in certain cash flow assumptions such as cost to service and ancillary income per loan, changes in OAS rate inputs and the impact of periodic recalibrations of the model to reflect changes in the relationship between market interest rate spreads and projected cash flows.


⁽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 gains and losses on sales 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⁽¹⁾
(Dollars in millions)
	Six Months Ended June 30						Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Net interest income (FTE basis)	$	4,412		$	4,027		$	2,252		$	2,160		$	2,099		$	2,009		$	1,940
Noninterest income:
Service charges	1,387			1,448			701			686			694			725			726
Investment banking income	1,582			1,289			792			790			842			662			638
All other income	788			1,173			394			394			316			390			604
Total noninterest income	3,757			3,910			1,887			1,870			1,852			1,777			1,968
Total revenue, net of interest expense (FTE basis)	8,169			7,937			4,139			4,030			3,951			3,786			3,908

Provision for credit losses	312			(427		)	163			149			62			23			(152		)

Noninterest expense	3,696			3,928			1,859			1,837			1,755			1,936			1,967
Income before income taxes	4,161			4,436			2,117			2,044			2,134			1,827			2,093
Income tax expense (FTE basis)	1,586			1,634			826			760			743			676			775
Net income	$	2,575		$	2,802		$	1,291		$	1,284		$	1,391		$	1,151		$	1,318

Net interest yield (FTE basis)	3.16		%	2.96		%	3.15		%	3.16		%	2.84		%	2.82		%	2.89		%
Return on average allocated capital ^{(2, 3)}	22.58			—			22.52			22.65			—			—			—
Return on average economic capital ^{(2, 3)}	—			29.31			—			—			28.96			23.33			27.24
Efficiency ratio (FTE basis)	45.25			49.48			44.94			45.57			44.43			51.14			50.33

Balance Sheet
Average
Total loans and leases	$	249,903		$	221,854		$	255,674		$	244,068		$	232,396		$	221,185		$	219,504
Total earnings assets ⁽⁴⁾	281,743			273,170			286,522			276,911			293,679			283,182			270,190
Total assets ⁽⁴⁾	322,814			314,088			327,531			318,044			336,332			326,109			311,043
Total deposits	224,909			212,638			227,668			222,120			242,817			227,421			213,862
Allocated capital ^{(2, 3)}	23,000			—			23,000			23,000			—			—			—
Economic capital ^{(2, 3)}	—			19,243			—			—			19,123			19,639			19,472

Period end
Total loans and leases	$	258,502		$	218,681		$	258,502		$	250,985		$	242,340		$	226,152		$	218,681
Total earnings assets ⁽⁴⁾	293,733			268,373			293,733			280,928			289,036			282,968			268,373
Total assets ⁽⁴⁾	334,820			310,933			334,820			322,039			331,611			325,488			310,933
Total deposits	229,586			216,529			229,586			228,248			243,306			234,912			216,529


⁽¹⁾	During the second quarter of 2013, consumer Dealer Financial Services results were moved from Global Banking to Consumer & Business Banking. Prior periods were reclassified to conform to current period presentation.

⁽²⁾

⁽³⁾


⁽⁴⁾	Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.

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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Investment Banking fees ⁽¹⁾
Advisory ⁽²⁾	$	473		$	503		$	240		$	233		$	285		$	207		$	314
Debt issuance	833			599			405			428			450			341			253
Equity issuance	276			187			147			129			107			114			71
Total Investment Banking fees⁽³⁾	$	1,582		$	1,289		$	792		$	790		$	842		$	662		$	638

Business Lending
Corporate	$	1,706		$	1,697		$	855		$	851		$	739		$	765		$	836
Commercial	2,001			1,800			1,053			948			912			918			912
Total Business Lending revenue	$	3,707		$	3,497		$	1,908		$	1,799		$	1,651		$	1,683		$	1,748

Treasury Services
Corporate	$	1,368		$	1,286		$	702		$	666		$	687		$	660		$	630
Commercial	1,447			1,512			731			716			729			739			732
Total Treasury Services revenue	$	2,815		$	2,798		$	1,433		$	1,382		$	1,416		$	1,399		$	1,362

Average deposit balances
Interest-bearing	$	69,403		$	64,323		$	70,158		$	68,639		$	68,240		$	64,690		$	64,007
Noninterest-bearing	155,506			148,315			157,510			153,481			174,577			162,731			149,855
Total average deposits	$	224,909		$	212,638		$	227,668		$	222,120		$	242,817		$	227,421		$	213,862

Loan spread	1.87		%	1.90		%	1.89		%	1.86		%	1.83		%	1.90		%	1.87		%

Provision for credit losses	$	312		$	(427	)	$	163		$	149		$	62		$	23		$	(152	)

Credit quality ^{(4, 5)}
Reservable utilized criticized exposure	$	10,632		$	14,794		$	10,632		$	10,342		$	10,952		$	12,297		$	14,794
	3.73		%	5.86		%	3.73		%	3.71		%	4.06		%	4.81		%	5.86		%

Nonperforming loans, leases and foreclosed properties	$	1,087		$	3,305		$	1,087		$	1,643		$	2,052		$	2,647		$	3,305
	0.43		%	1.54		%	0.43		%	0.66		%	0.86		%	1.19		%	1.54		%

Average loans and leases by product
U.S. commercial	$	126,324		$	116,495		$	127,742		$	124,890		$	121,535		$	115,992		$	114,952
Commercial real estate	35,760			32,984			36,685			34,824			33,404			31,939			32,326
Commercial lease financing	24,536			23,255			24,584			24,486			24,057			23,214			23,122
Non-U.S. commercial	63,277			49,107			66,654			59,860			53,392			50,031			49,089
Other	6			13			9			8			8			9			15
Total average loans and leases	$	249,903		$	221,854		$	255,674		$	244,068		$	232,396		$	221,185		$	219,504

Total Corporation Investment Banking fees
Advisory ⁽²⁾	$	519		$	544		$	262		$	257		$	301		$	221		$	340
Debt issuance	2,009			1,419			987			1,022			1,078			865			646
Equity issuance	679			497			356			323			250			279			192
Total investment banking fees	3,207			2,460			1,605			1,602			1,629			1,365			1,178
Self-led	(116		)	(97		)	(49		)	(67		)	(29		)	(29		)	(32		)
Total Investment Banking fees	$	3,091		$	2,363		$	1,556		$	1,535		$	1,600		$	1,336		$	1,146


⁽¹⁾	Investment banking fees represent total investment banking fees for Global Banking inclusive of self-led deals and fees included within Business Lending.


⁽²⁾	Advisory includes fees on debt and equity advisory and mergers and acquisitions.


⁽³⁾	Investment banking fees represent only the fee component of Global Banking and do not include certain less significant items shared with the Investment Banking Group under internal revenue sharing agreements.

⁽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 commercial utilized reservable criticized 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, 2013
	Global			U.S.
	Product Ranking	Market Share		Product Ranking	Market Share
High-yield corporate debt	3	7.7	%	2	9.4	%
Leveraged loans	1	11.0		1	12.8
Mortgage-backed securities	3	9.6		3	10.3
Asset-backed securities	2	13.4		2	16.0
Convertible debt	3	9.1		3	13.5
Common stock underwriting	6	6.2		5	9.5
Investment-grade corporate debt	2	6.3		2	12.1
Syndicated loans	2	9.0		2	12.5
Net investment banking revenue	2	7.5		2	10.9
Announced mergers and acquisitions	5	14.6		3	24.7
Equity capital markets	6	6.5		5	10.1
Debt capital markets	5	5.4		3	9.3

Source: Dealogic data as of July 1, 2013. 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 minor stakeholder.

Highlights



Global top 3 rankings in:
High-yield corporate debt		Convertible debt
Leveraged loans		Investment-grade corporate debt
Mortgage-backed securities		Syndicated loans
Asset-backed securities

U.S. top 3 rankings in:
High-yield corporate debt		Investment-grade corporate debt
Leveraged loans		Syndicated loans
Mortgage-backed securities		Announced mergers and acquisitions
Asset-backed securities		Debt capital markets
Convertible debt

Top 3 rankings excluding self-led deals:


Global:	High-yield corporate debt, Leveraged loans, Mortgage-backed securities, Asset-backed securities, Convertible debt, Investment-grade corporate debt, Syndicated loans


U.S.:	High-yield corporate debt, Leveraged loans, Mortgage-backed securities, Asset-backed securities, Convertible debt, Investment-grade corporate debt, Syndicated loans,

Announced mergers and acquisitions



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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Net interest income (FTE basis)	$	2,122		$	1,628		$	1,013		$	1,109		$	1,114		$	929		$	721
Noninterest income:
Investment and brokerage services	1,077			962			549			528			430			428			448
Investment banking fees	1,347			994			668			679			668			552			438
Trading account profits	4,738			3,744			1,848			2,890			725			1,237			1,706
All other income (loss)	(226		)	657			111			(337		)	83			132			265
Total noninterest income	6,936			6,357			3,176			3,760			1,906			2,349			2,857
Total revenue, net of interest expense (FTE basis) ⁽¹⁾	9,058			7,985			4,189			4,869			3,020			3,278			3,578

Provision for credit losses	(11		)	(14		)	(16		)	5			17			31			(1		)

Noninterest expense	5,842			6,090			2,769			3,073			2,625			2,574			2,855
Income before income taxes	3,227			1,909			1,436			1,791			378			673			724
Income tax expense (FTE basis)	1,099			583			477			622			196			948			227
Net income (loss)	$	2,128		$	1,326		$	959		$	1,169		$	182		$	(275	)	$	497

Return on average allocated capital ^{(2, 3)}	14.33		%	—			12.85		%	15.83		%	—			—			—
Return on average economic capital ^{(2, 3)}	—			19.32		%	—			—			5.14		%	n/m			15.10		%
Efficiency ratio (FTE basis)	64.50			76.27			66.12			63.10			86.93			78.53		%	79.79

Balance Sheet
Average
Total trading-related assets ⁽⁴⁾	$	497,582		$	454,300		$	490,972		$	504,266		$	493,188		$	462,138		$	459,869
Total earning assets⁽⁴⁾	504,516			446,695			499,396			509,694			493,901			458,335			456,552
Total assets	660,151			585,423			653,116			667,265			642,930			598,626			596,861
Allocated capital ^{(2, 3)}	30,000			—			30,000			30,000			—			—			—
Economic capital ^{(2, 3)}	—			13,849			—			—			14,184			13,414			13,316

Period end
Total trading-related assets ⁽⁴⁾	$	446,505		$	443,948		$	446,505		$	467,826		$	465,836		$	455,161		$	443,948
Total earning assets⁽⁴⁾	465,166			440,469			465,166			480,039			486,470			456,581			440,469
Total assets	607,050			576,175			607,050			625,639			630,570			597,587			576,175

Trading-related assets (average)
Trading account securities	$	230,589		$	188,069		$	225,796		$	235,437		$	220,434		$	193,694		$	190,250
Reverse repurchases	154,188			160,456			150,568			157,847			166,399			162,040			160,832
Securities borrowed	60,134			50,292			62,813			57,425			52,391			51,757			53,297
Derivative assets	52,671			55,483			51,795			53,557			53,964			54,647			55,490
Total trading-related assets ⁽⁴⁾	$	497,582		$	454,300		$	490,972		$	504,266		$	493,188		$	462,138		$	459,869


⁽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⁾

⁽³⁾


⁽⁴⁾	Trading-related assets include derivative assets, which are considered non-earning 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 2013		First Quarter 2013			Fourth Quarter 2012		Third Quarter 2012		Second Quarter 2012
	2013			2012		Second Quarter 2013		First Quarter 2013			Fourth Quarter 2012		Third Quarter 2012		Second Quarter 2012
Sales and trading revenue ⁽¹⁾
Fixed income, currency and commodities	$	5,228		$	5,261	$	2,292	$	2,936		$	1,551	$	2,000	$	2,418
Equities	2,358			1,673		1,199		1,159			674		667		761
Total sales and trading revenue	$	7,586		$	6,934	$	3,491	$	4,095		$	2,225	$	2,667	$	3,179

Sales and trading revenue, excluding debit valuation adjustment ⁽²⁾
Fixed income, currency and commodities	$	5,260		$	6,685	$	2,259	$	3,001		$	1,788	$	2,534	$	2,555
Equities	2,343			1,839		1,194		1,149			713		715		780
Total sales and trading revenue, excluding debit valuation adjustment	$	7,603		$	8,524	$	3,453	$	4,150		$	2,501	$	3,249	$	3,335

Sales and trading revenue breakdown
Net interest income	$	1,950		$	1,448	$	930	$	1,020		$	1,014	$	846	$	650
Commissions	1,077			962		549		528			430		428		448
Trading	4,738			3,744		1,848		2,890			725		1,237		1,706
Other	(179		)	780		164		(343		)	56		156		375
Total sales and trading revenue	$	7,586		$	6,934	$	3,491	$	4,095		$	2,225	$	2,667	$	3,179


⁽¹⁾	Includes Global Banking sales and trading revenue of $210 million and $363 million for the six months ended June 30, 2013 and 2012; $142 million and $68 million for the second and first quarters of 2013, and $49 million, $111 million and $248 million for the fourth, third and second quarters of 2012, respectively.

⁽²⁾

For this presentation, sales and trading revenue excludes debit valuation adjustment gains/losses which represents a non-GAAP financial measure. Net debit valuation adjustment losses included in fixed income, currency and commodities revenue were $32 million and $1.4 billion for the six months ended June 30, 2013 and 2012; gains of $33 million and losses of $65 million for the second and first quarters of 2013, and losses of $237 million, $534 million and $137 million for the fourth, third and second quarters of 2012, respectively. Net debit valuation adjustment gains included in equities revenue were $15 million and losses $166 million for the six months ended June 30, 2013 and 2012; gains of $5 million and $10 million for the second and first quarters of 2013, and losses of $39 million, $48 million and $19 million for the fourth, third and second quarters of 2012, 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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Net interest income (FTE basis)	$	3,101		$	2,924		$	1,505		$	1,596		$	1,490		$	1,413		$	1,393
Noninterest income:
Investment and brokerage services	4,772			4,396			2,441			2,331			2,272			2,181			2,221
All other income	1,047			921			553			494			431			489			480
Total noninterest income	5,819			5,317			2,994			2,825			2,703			2,670			2,701
Total revenue, net of interest expense (FTE basis)	8,920			8,241			4,499			4,421			4,193			4,083			4,094

Provision for credit losses	7			93			(15		)	22			112			61			47

Noninterest expense	6,525			6,409			3,272			3,253			3,196			3,115			3,177
Income before income taxes	2,388			1,739			1,242			1,146			885			907			870
Income tax expense (FTE basis)	910			641			484			426			309			336			322
Net income	$	1,478		$	1,098		$	758		$	720		$	576		$	571		$	548

Net interest yield (FTE basis)	2.46		%	2.38		%	2.47		%	2.46		%	2.30		%	2.28		%	2.31		%
Return on average allocated capital ^{(1, 2)}	29.98			—			30.57			29.38			—			—			—
Return on average economic capital ^{(1, 2)}	—			33.24			—			—			28.36			29.22			31.76
Efficiency ratio (FTE basis)	73.15			77.77			72.72			73.58			76.24			76.30			77.61

Balance Sheet
Average
Total loans and leases	$	107,845		$	98,490		$	109,589		$	106,082		$	103,785		$	101,016		$	98,964
Total earning assets ⁽³⁾	254,113			246,785			244,845			263,484			257,339			246,674			242,843
Total assets ⁽³⁾	272,965			265,899			263,735			282,298			276,408			265,639			262,124
Total deposits	244,329			239,200			235,344			253,413			249,658			241,411			238,540
Allocated capital ^{(1, 2)}	10,000			—			10,000			10,000			—			—			—
Economic capital ^{(1, 2)}	—			6,716			—			—			8,149			7,840			7,011

Period end
Total loans and leases	$	111,785		$	100,261		$	111,785		$	107,048		$	105,928		$	102,390		$	100,261
Total earning assets ⁽³⁾	244,361			243,552			244,361			248,960			277,103			248,807			243,552
Total assets ⁽³⁾	263,867			263,006			263,867			268,263			297,326			268,408			263,006
Total deposits	235,012			237,339			235,012			239,853			266,188			243,518			237,339

⁽¹⁾

⁽²⁾


⁽³⁾	Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.

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
(Dollars in millions, except as noted)
	Six Months Ended June 30						Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012		Third Quarter 2012			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012		Third Quarter 2012			Second Quarter 2012
Revenues
Merrill Lynch Global Wealth Management	$	7,422		$	6,828		$	3,742		$	3,680		$	3,500	$	3,407		$	3,387
U.S. Trust	1,461			1,363			740			721			690		656			683
Other ⁽¹⁾	37			50			17			20			3		20			24
Total revenues	$	8,920		$	8,241		$	4,499		$	4,421		$	4,193	$	4,083		$	4,094

Client Balances
Client Balances by Business
Merrill Lynch Global Wealth Management	$	1,800,151		$	1,676,759		$	1,800,151		$	1,812,412		$	1,743,459	$	1,731,154		$	1,676,759
U.S. Trust	351,119			323,711			351,119			354,721			341,292		332,792			323,711
Other ⁽¹⁾	63,781			66,091			63,781			64,603			66,874		64,239			66,091

Client Balances by Type
Assets under management	$	743,613		$	667,452		$	743,613		$	745,260		$	698,095	$	692,854		$	667,452
Brokerage assets	992,664			946,712			992,664			1,009,507			960,351		970,662			946,712
Assets in custody	128,854			111,351			128,854			127,013			117,686		115,350			111,351
Deposits	235,012			237,339			235,012			239,853			266,188		243,518			237,339
Loans and leases ⁽²⁾	114,908			103,707			114,908			110,103			109,305		105,801			103,707
Total client balances	$	2,215,051		$	2,066,561		$	2,215,051		$	2,231,736		$	2,151,625	$	2,128,185		$	2,066,561

Assets Under Management Flows
Liquidity assets under management ⁽³⁾	$	(2,922	)	$	(52	)	$	(695	)	$	(2,227	)	$	2,545	$	(1,875	)	$	(122	)
Long-term assets under management ⁽⁴⁾	28,053			11,491			7,692			20,361			9,120		5,779			3,796
Total assets under management flows	$	25,131		$	11,439		$	6,997		$	18,134		$	11,665	$	3,904		$	3,674

Associates ⁽⁵⁾
Number of Financial Advisors	15,759			16,764			15,759			16,065			16,411		16,759			16,764
Total Wealth Advisors	16,989			18,060			16,989			17,293			17,640		18,036			18,060
Total Client Facing Professionals	19,689			20,844			19,689			20,018			20,386		20,778			20,844

Merrill Lynch Global Wealth Management Metrics
Financial Advisory Productivity ⁽⁶⁾ (in thousands)	$	991		$	893		$	1,012		$	971		$	927	$	897		$	895

U.S. Trust Metrics
Client Facing Professionals	2,084			2,162			2,084			2,090			2,077		2,119			2,162


⁽¹⁾	Other includes the results of BofA Global Capital Management and other administrative items.


⁽²⁾	Includes margin receivables which are classified in customer and other receivables on the Corporation's 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 1,587 and 1,383 for the six months ended June 30, 2013 and 2012 and 1,587, 1,591, 1,496, 1,457 and 1,383 at June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, respectively.


⁽⁶⁾	Financial Advisor Productivity is defined as annualized Merrill Lynch Global Wealth Management 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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Net interest income (FTE basis)	$	522		$	615		$	268		$	254		$	254		$	273		$	137
Noninterest income:
Card income	166			171			81			85			96			93			84
Equity investment income (loss)	1,096			394			576			520			569			172			(36		)
Gains on sales of debt securities	519			1,066			452			67			117			328			354
All other income (loss)	(1,366		)	(2,043		)	(804		)	(562		)	(1,185		)	(1,700		)	59
Total noninterest income (loss)	415			(412		)	305			110			(403		)	(1,107		)	461
Total revenue, net of interest expense (FTE basis)	937			203			573			364			(149		)	(834		)	598

Provision for credit losses	71			1,781			(179		)	250			450			390			535

Noninterest expense	2,302			3,633			541			1,761			995			1,621			1,105
Income (loss) before income taxes	(1,436		)	(5,211		)	211			(1,647		)	(1,594		)	(2,845		)	(1,042		)
Income tax benefit (FTE basis)	(1,013		)	(2,240		)	(338		)	(675		)	(2,440		)	(1,248		)	(678		)
Net income (loss)	$	(423	)	$	(2,971	)	$	549		$	(972	)	$	846		$	(1,597	)	$	(364	)

Balance Sheet
Average
Total loans and leases	$	241,718		$	266,938		$	238,910		$	244,557		$	247,128		$	256,130		$	263,649
Total assets ⁽²⁾	242,867			342,608			233,810			252,023			282,256			308,237			341,026
Total deposits	34,657			48,125			33,774			35,549			36,939			39,266			43,722

Period end
Total loans and leases	$	234,047		$	259,830		$	234,047		$	241,406		$	241,981		$	252,592		$	259,830
Total assets ⁽³⁾	205,976			326,408			205,976			236,595			264,505			296,152			326,408
Total deposits	34,597			39,362			34,597			35,759			36,061			37,555			39,362

⁽¹⁾

All Other consists of ALM activities, equity investments, the international consumer card business, liquidating businesses, residual expense allocations and other. ALM activities encompass the whole-loan residential mortgage portfolio and investment securities, interest rate and foreign currency risk management activities including the residual net interest income allocation, gains/losses on structured liabilities, the impact of certain allocation methodologies and accounting hedge ineffectiveness. Equity investments include Global Principal Investments, strategic and certain other investments. Additionally, All Other includes certain residential mortgage loans that are managed by Legacy Assets & Servicing.

⁽²⁾

Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $526.7 billion and $489.9 billion for the six months ended June 30, 2013 and 2012; $525.9 billion, $527.6 billion, $526.9 billion, $514.4 billion and $492.7 billion for the second and first quarters of 2013, and the fourth, third and second quarters of 2012, respectively.


⁽³⁾	Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $530.3 billion, $538.6 billion, $538.5 billion, $513.8 billion and $502.2 billion at June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, 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 (Loss)
	June 30, 2013						March 31, 2013		June 30, 2013
	Book Value		Unfunded Commitments		Total		Total		Three Months Ended			Six Months Ended
Global Principal Investments:
Private Equity Investments	$	493	$	23	$	516	$	672	$	38		$	151
Global Real Estate	320		30		350		451		(16		)	(42		)
Global Strategic Capital	862		108		970		1,120		(19		)	(44		)
Legacy/Other Investments	539		—		539		741		49			91
Total Global Principal Investments	$	2,214	$	161	$	2,375	$	2,984	$	52		$	156



Components of Equity Investment Income
(Dollars in millions)
	Six Months Ended June 30				Second Quarter 2013		First Quarter 2013		Fourth Quarter 2012		Third Quarter 2012		Second Quarter 2012
	2013		2012		Second Quarter 2013		First Quarter 2013		Fourth Quarter 2012		Third Quarter 2012		Second Quarter 2012
Global Principal Investments	$	156	$	267	$	52	$	104	$	167	$	156	$	(137	)
Strategic and other investments	940		127		524		416		402		16		101
Total equity investment income (loss) included in All Other	1,096		394		576		520		569		172		(36		)
Total equity investment income included in the business segments	147		739		104		43		130		66		404
Total consolidated equity investment income	$	1,243	$	1,133	$	680	$	563	$	699	$	238	$	368

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 2013		March 31 2013		June 30 2012
Consumer
Residential mortgage ⁽¹⁾	$	253,959	$	256,804	$	262,569
Home equity	100,011		103,338		118,136
U.S. credit card	90,523		90,047		94,291
Non-U.S. credit card	10,340		10,620		13,431
Direct/Indirect consumer ⁽²⁾	83,358		81,518		83,164
Other consumer ⁽³⁾	1,803		1,696		2,568
Total consumer loans excluding loans accounted for under the fair value option	539,994		544,023		574,159
Consumer loans accounted for under the fair value option ⁽⁴⁾	1,052		1,041		1,172
Total consumer	541,046		545,064		575,331

Commercial
U.S. commercial ⁽⁵⁾	219,367		213,762		197,718
Commercial real estate ⁽⁶⁾	42,126		39,060		36,535
Commercial lease financing	23,912		23,467		21,692
Non-U.S. commercial	86,710		82,460		53,850
Total commercial loans excluding loans accounted for under the fair value option	372,115		358,749		309,795
Commercial loans accounted for under the fair value option ⁽⁴⁾	8,409		7,779		7,189
Total commercial	380,524		366,528		316,984
Total loans and leases	$	921,570	$	911,592	$	892,315


⁽¹⁾	Includes pay option loans of $5.8 billion, $6.5 billion and $9.0 billion and non-U.S. residential mortgages of $83 million, $86 million and $92 million at June 30, 2013, March 31, 2013 and June 30, 2012, respectively. The Corporation no longer originates pay option loans.

⁽²⁾

Includes dealer financial services loans of $36.8 billion, $36.1 billion and $36.7 billion, consumer lending loans of $3.6 billion, $4.1 billion and $6.3 billion, U.S. securities-based lending margin loans of $30.0 billion, $28.2 billion and $25.7 billion, student loans of $4.4 billion, $4.6 billion and $5.4 billion, non-U.S. consumer loans of $7.5 billion, $7.4 billion and $7.8 billion, and other consumer loans of $1.1 billion, $1.1 billion and $1.3 billion at June 30, 2013, March 31, 2013 and June 30, 2012, respectively.


⁽³⁾	Includes consumer finance loans of $1.3 billion, $1.4 billion and $1.5 billion, consumer leases of $351 million, $222 million, and $0 million, other non-U.S. consumer loans of $5 million, $5 million and $908 million, and consumer overdrafts of $149 million, $115 million and $127 million at June 30, 2013, March 31, 2013 and June 30, 2012, respectively.

⁽⁴⁾

Consumer loans accounted for under the fair value option were residential mortgage loans of $1.1 billion, $1.0 billion and $1.2 billion at June 30, 2013, March 31, 2013 and June 30, 2012, respectively. Commercial loans accounted for under the fair value option were U.S. commercial loans of $2.0 billion, $2.1 billion and $1.9 billion, and non-U.S. commercial loans of $6.4 billion, $5.7 billion and $5.3 billion at June 30, 2013, March 31, 2013 and June 30, 2012, respectively.


⁽⁵⁾	Includes U.S. small business commercial loans, including card-related products, of $12.4 billion, $12.4 billion and $12.8 billion at June 30, 2013, March 31, 2013 and June 30, 2012, respectively.


⁽⁶⁾	Includes U.S. commercial real estate loans of $40.3 billion, $37.6 billion and $35.0 billion, and non-U.S. commercial real estate loans of $1.8 billion, $1.4 billion and $1.5 billion at June 30, 2013, March 31, 2013 and June 30, 2012, 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.	36



Bank of America Corporation and Subsidiaries
Quarterly Average Loans and Leases by Business Segment
(Dollars in millions)
	Second Quarter 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services		Global Banking		Global Markets		GWIM		All Other
Consumer
Residential mortgage	$	257,275	$	564	$	2,254	$	—	$	86	$	43,234	$	211,137
Home equity	101,708		147		87,749		—		78		12,254		1,480
U.S. credit card	89,722		89,722		—		—		—		—		—
Non-U.S. credit card	10,613		—		—		—		—		—		10,613
Direct/Indirect consumer	82,485		40,187		50		—		24		33,390		8,834
Other consumer	1,756		420		—		9		—		7		1,320
Total consumer	543,559		131,040		90,053		9		188		88,885		233,384

Commercial
U.S. commercial	217,464		31,183		60		127,742		32,776		19,099		6,604
Commercial real estate	40,612		1,359		1		36,685		694		1,417		456
Commercial lease financing	23,579		—		—		24,584		618		4		(1,627		)
Non-U.S. commercial	89,020		11		—		66,654		22,078		184		93
Total commercial	370,675		32,553		61		255,665		56,166		20,704		5,526
Total loans and leases	$	914,234	$	163,593	$	90,114	$	255,674	$	56,354	$	109,589	$	238,910

	First Quarter 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services		Global Banking		Global Markets		GWIM		All Other
Consumer
Residential mortgage	$	258,630	$	499	$	1,332	$	—	$	90	$	41,509	$	215,200
Home equity	105,939		144		91,509		—		84		12,674		1,528
U.S. credit card	91,712		91,712		—		—		—		—		—
Non-U.S. credit card	11,027		—		—		—		—		—		11,027
Direct/Indirect consumer	82,364		40,605		59		—		3		32,261		9,436
Other consumer	1,666		273		—		8		—		7		1,378
Total consumer	551,338		133,233		92,900		8		177		86,451		238,569

Commercial
U.S. commercial	210,706		30,585		62		124,890		30,013		18,121		7,035
Commercial real estate	39,179		2,021		1		34,824		446		1,369		518
Commercial lease financing	23,534		—		—		24,486		694		4		(1,650		)
Non-U.S. commercial	81,502		6		—		59,860		21,414		137		85
Total commercial	354,921		32,612		63		244,060		52,567		19,631		5,988
Total loans and leases	$	906,259	$	165,845	$	92,963	$	244,068	$	52,744	$	106,082	$	244,557

	Second Quarter 2012
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services		Global Banking		Global Markets		GWIM		All Other
Consumer
Residential mortgage	$	266,365	$	338	$	1,111	$	—	$	101	$	37,717	$	227,098
Home equity	119,785		146		104,285		—		1		13,936		1,417
U.S. credit card	95,018		95,018		—		—		—		—		—
Non-U.S. credit card	13,641		—		—		—		—		—		13,641
Direct/Indirect consumer	84,198		44,605		85		—		76		28,722		10,710
Other consumer	2,565		99		—		15		—		8		2,443
Total consumer	581,572		140,206		105,481		15		178		80,383		255,309

Commercial
U.S. commercial	199,644		31,055		25		114,952		30,061		16,966		6,585
Commercial real estate	37,627		2,290		1		32,326		194		1,531		1,285
Commercial lease financing	21,446		—		—		23,122		—		4		(1,680		)
Non-U.S. commercial	59,209		14		—		49,089		7,876		80		2,150
Total commercial	317,926		33,359		26		219,489		38,131		18,581		8,340
Total loans and leases	$	899,498	$	173,565	$	105,507	$	219,504	$	38,309	$	98,964	$	263,649

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, 2013		March 31, 2013		June 30, 2012		June 30, 2013			March 31, 2013			June 30, 2012
Diversified financials	$	77,827	$	70,405	$	60,797	$	115,066		$	105,591		$	93,272
Real estate ⁽⁴⁾	49,564		47,513		44,420		70,162			65,855			59,886
Retailing	31,051		29,337		26,861		51,906			49,757			45,159
Capital goods	26,737		24,995		22,850		50,699			48,444			45,987
Banking	42,395		40,135		35,429		49,730			45,623			39,530
Government and public education	39,260		39,671		41,816		47,871			48,022			53,991
Healthcare equipment and services	29,327		29,107		30,171		46,418			45,556			45,385
Materials	22,831		22,243		19,236		43,369			42,264			36,710
Energy	21,052		21,167		14,030		41,133			40,853			31,487
Consumer services	21,721		22,193		22,672		34,743			35,195			35,795
Food, beverage and tobacco	14,704		14,909		14,441		31,488			32,936			31,019
Commercial services and supplies	18,932		18,345		18,388		30,478			29,861			29,564
Utilities	8,811		8,900		8,675		23,660			23,104			23,444
Transportation	15,492		15,606		12,784		22,716			21,968			19,505
Media	13,249		12,907		11,099		21,824			21,835			20,215
Individuals and trusts	14,367		14,107		13,937		18,081			18,166			17,298
Software and services	6,389		5,571		4,464		13,417			11,740			10,134
Insurance, including monolines	5,880		6,800		8,832		12,315			12,503			15,312
Pharmaceuticals and biotechnology	4,243		4,439		4,457		11,473			11,191			11,555
Technology hardware and equipment	4,840		4,735		4,643		11,289			10,761			10,694
Telecommunication services	3,871		3,689		3,792		10,588			10,191			9,756
Consumer durables and apparel	5,404		5,198		3,997		9,942			9,362			8,192
Automobiles and components	3,263		3,349		3,277		8,262			7,702			7,583
Food and staples retailing	4,363		4,004		3,191		7,848			7,334			6,470
Religious and social organizations	5,895		6,235		7,842		7,824			8,435			10,361
Other	5,678		4,721		3,338		8,550			7,706			6,118
Total commercial credit exposure by industry	$	497,146	$	480,281	$	445,439	$	800,852		$	771,955		$	724,422
Net credit default protection purchased on total commitments ⁽⁵⁾							$	(11,060	)	$	(12,444	)	$	(18,697	)

⁽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 $50.5 billion, $57.7 billion and $59.3 billion at June 30, 2013, March 31, 2013 and June 30, 2012, respectively. Not reflected in utilized and committed exposure is additional derivative collateral held of $18.4 billion, $18.0 billion and $17.1 billion which consists primarily of other marketable securities at June 30, 2013, March 31, 2013 and June 30, 2012, respectively.

⁽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 $8.4 billion, $7.8 billion and $7.2 billion and issued letters of credit at notional value of $563 million, $567 million and $748 million at June 30, 2013, March 31, 2013 and June 30, 2012, respectively. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $15.3 billion, $15.1 billion and $21.1 billion at June 30, 2013, March 31, 2013 and June 30, 2012, respectively.


⁽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 on 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, 2013		March 31, 2013
Less than or equal to one year	25	%	26	%
Greater than one year and less than or equal to five years	73		71
Greater than five years	2		3
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, 2013					March 31, 2013
Ratings ^{(2, 3)}	Net Notional ⁽⁴⁾			Percent		Net Notional ⁽⁴⁾			Percent
AAA	$	(107	)	1.0	%	$	(120	)	1.0	%
AA	(232		)	2.1		(412		)	3.3
A	(4,651		)	42.1		(4,951		)	39.8
BBB	(4,427		)	40.0		(5,133		)	41.2
BB	(1,039		)	9.4		(1,075		)	8.6
B	(559		)	5.1		(699		)	5.6
CCC and below	(146		)	1.3		(216		)	1.7
NR ⁽⁵⁾	101			(1.0	)	162			(1.2	)
Total net credit default protection	$	(11,060	)	100.0	%	$	(12,444	)	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⁾	Represents net credit default protection (purchased) sold.


⁽⁵⁾	"NR" is comprised of names that have not been rated.

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
Top 20 Non-U.S. Countries Exposure
(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, 2013		Hedges and Credit Default Protection ⁽⁴⁾			Net Country Exposure at June 30 2013 ⁽⁵⁾		Increase (Decrease) from March 31, 2013
United Kingdom	$	23,120	$	11,107	$	6,552	$	5,423	$	46,202	$	(3,327	)	$	42,875	$	(3,640	)
Canada	5,888		6,773		1,489		5,213		19,363		(1,260		)	18,103		(1,148		)
France	3,245		6,075		1,468		6,558		17,346		(3,590		)	13,756		(184		)
Brazil	8,585		432		338		4,254		13,609		(205		)	13,404		9
Germany	6,650		5,162		2,715		3,284		17,811		(4,747		)	13,064		1,378
China	8,800		347		909		2,666		12,722		(608		)	12,114		1,575
India	7,604		614		345		2,919		11,482		(92		)	11,390		(1,210		)
Australia	4,882		3,192		1,089		1,958		11,121		(907		)	10,214		125
Japan	4,119		495		1,812		5,449		11,875		(1,668		)	10,207		3,399
Netherlands	4,304		3,765		629		1,152		9,850		(1,699		)	8,151		78
Hong Kong	5,547		667		124		772		7,110		(202		)	6,908		596
South Korea	4,697		667		539		2,292		8,195		(1,303		)	6,892		(567		)
Russian Federation	5,316		495		182		471		6,464		(474		)	5,990		(374		)
Singapore	3,376		257		278		1,885		5,796		(129		)	5,667		30
Switzerland	2,295		2,747		691		414		6,147		(703		)	5,444		(465		)
Italy	3,535		2,753		2,075		802		9,165		(3,961		)	5,204		1,245
Mexico	2,768		743		327		1,287		5,125		(502		)	4,623		800
Taiwan	2,431		44		177		1,054		3,706		(36		)	3,670		13
United Arab Emirates	2,616		333		211		31		3,191		(239		)	2,952		639
Spain	2,610		973		203		293		4,079		(1,172		)	2,907		252
Total top 20 non-U.S. countries exposure	$	112,388	$	47,641	$	22,153	$	48,177	$	230,359	$	(26,824	)	$	203,535	$	2,551


⁽¹⁾	Includes loans, leases and other extensions of credit and funds, including letters of credit and due from placements, which have not been reduced by collateral, hedges or credit default protection. Funded loans and loan equivalents are reported net of charge-offs but prior to any allowance for loan and lease losses.

⁽²⁾

Net counterparty exposure includes the fair value of derivatives, including the counterparty risk associated with credit default swaps, and secured financing transactions. Derivative exposures are presented net of $39.0 billion in collateral, which is predominantly cash, pledged under legally enforceable master netting agreements. Secured financing transaction exposures are presented net of eligible cash or securities pledged as collateral. The notional amount of reverse repurchase transactions was $82.0 billion. Counterparty exposure is not presented net of hedges or credit default protection.


⁽³⁾	Long securities exposures are netted on a single-name basis to, but not below, zero by short exposures and net credit default swaps purchased, consisting of single-name and net indexed and tranched credit default swaps.


⁽⁴⁾	Represents credit default protection purchased, net of credit default protection sold, which is used to mitigate the Corporation's risk to country exposures as listed, consisting of net single-name and net indexed and tranched credit default swaps. Amounts are calculated based on the credit default swaps notional amount assuming a zero recovery rate less any fair value receivable or payable.


⁽⁵⁾	Represents country exposure less hedges and credit default protection purchased, net of credit default protection sold.

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
Select 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, 2013		Hedges and Credit Default Protection ⁽⁴⁾			Net Country Exposure at June 30 2013 ⁽⁵⁾			Increase (Decrease) from March 31, 2013
Greece
Sovereign	$	—	$	—	$	—	$	31	$	31	$	—		$	31		$	24
Financial institutions	—		—		3		11		14		(13		)	1			3
Corporates	64		125		9		9		207		(54		)	153			(42		)
Total Greece	$	64	$	125	$	12	$	51	$	252	$	(67	)	$	185		$	(15	)
Ireland
Sovereign	$	19	$	—	$	24	$	117	$	160	$	(10	)	$	150		$	55
Financial institutions	349		19		205		26		599		(15		)	584			(62		)
Corporates	442		327		40		57		866		(13		)	853			(77		)
Total Ireland	$	810	$	346	$	269	$	200	$	1,625	$	(38	)	$	1,587		$	(84	)
Italy
Sovereign	$	—	$	—	$	1,710	$	472	$	2,182	$	(1,839	)	$	343		$	939
Financial institutions	1,970		4		254		23		2,251		(878		)	1,373			(25		)
Corporates	1,565		2,749		111		307		4,732		(1,244		)	3,488			331
Total Italy	$	3,535	$	2,753	$	2,075	$	802	$	9,165	$	(3,961	)	$	5,204		$	1,245
Portugal
Sovereign	$	—	$	—	$	20	$	22	$	42	$	(37	)	$	5		$	(12	)
Financial institutions	5		—		2		25		32		(70		)	(38		)	(63		)
Corporates	66		99		2		3		170		(201		)	(31		)	(132		)
Total Portugal	$	71	$	99	$	24	$	50	$	244	$	(308	)	$	(64	)	$	(207	)
Spain
Sovereign	$	34	$	—	$	53	$	118	$	205	$	(67	)	$	138		$	326
Financial institutions	832		6		107		38		983		(254		)	729			(115		)
Corporates	1,744		967		43		137		2,891		(851		)	2,040			41
Total Spain	$	2,610	$	973	$	203	$	293	$	4,079	$	(1,172	)	$	2,907		$	252
Total
Sovereign	$	53	$	—	$	1,807	$	760	$	2,620	$	(1,953	)	$	667		$	1,332
Financial institutions	3,156		29		571		123		3,879		(1,230		)	2,649			(262		)
Corporates	3,881		4,267		205		513		8,866		(2,363		)	6,503			121
Total select European exposure	$	7,090	$	4,296	$	2,583	$	1,396	$	15,365	$	(5,546	)	$	9,819		$	1,191


⁽¹⁾	Includes loans, leases and other extensions of credit and funds, including letters of credit and due from placements, which have not been reduced by collateral, hedges or credit default protection. Funded loans and loan equivalents are reported net of charge-offs but prior to any allowance for loan and lease losses.

⁽²⁾

Net counterparty exposure includes the fair value of derivatives, including the counterparty risk associated with credit default swaps, and secured financing transactions. Derivative exposures are presented net of $2.9 billion in collateral, which is predominantly cash, pledged under legally enforceable master netting agreements. Secured financing transaction exposures are presented net of eligible cash or securities pledged as collateral. The notional amount of reverse repurchase transactions was $3.6 billion. Counterparty exposure is not presented net of hedges or credit default protection.


⁽³⁾	Long securities exposures are netted on a single-name basis to, but not below, zero by short exposures of $7.0 billion and net credit default swaps purchased of $947 million, consisting of $963 million of net single-name credit default swaps purchased and $16 million of net indexed and tranched credit default swaps sold.

⁽⁴⁾

Represents credit default protection purchased, net of credit default protection sold, which is used to mitigate the Corporation's risk to country exposures as listed, including $3.3 billion, consisting of $1.7 billion in net single-name credit default swaps purchased and $1.6 billion in net indexed and tranched credit default swaps purchased, to hedge loans and securities, $2.0 billion in additional credit default protection purchased to hedge derivative assets and $210 million in other short exposures. Amounts are calculated based on the credit default swaps notional amount assuming a zero recovery rate less any fair value receivable or payable.


⁽⁵⁾	Represents country exposure less hedges and credit default protection purchased, net of credit default protection sold.

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, 2013			March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012
Residential mortgage ⁽¹⁾	$	14,316		$	15,001		$	15,055		$	15,440		$	14,876
Home equity ⁽¹⁾	4,151			4,196			4,282			4,276			4,209
Direct/Indirect consumer	72			84			92			36			35
Other consumer	1			1			2			1			1
Total consumer	18,540			19,282			19,431			19,753			19,121
U.S. commercial	1,279			1,354			1,484			1,609			1,841
Commercial real estate	627			1,139			1,513			2,028			2,498
Commercial lease financing	10			19			44			33			39
Non-U.S. commercial	80			112			68			139			194
	1,996			2,624			3,109			3,809			4,572
U.S. small business commercial	107			110			115			139			143
Total commercial	2,103			2,734			3,224			3,948			4,715
Total nonperforming loans and leases	20,643			22,016			22,655			23,701			23,836
Foreclosed properties ⁽²⁾	637			826			900			1,224			1,541
Total nonperforming loans, leases and foreclosed properties ^{(3, 4, 5)}	$	21,280		$	22,842		$	23,555		$	24,925		$	25,377

Fully-insured home loans past due 90 days or more and still accruing	$	20,604		$	21,617		$	22,157		$	21,817		$	22,287
Consumer credit card past due 90 days or more and still accruing	1,325			1,541			1,649			1,695			1,847
Other loans past due 90 days or more and still accruing	662			655			776			807			865
Total loans past due 90 days or more and still accruing ^{(4, 6, 7)}	$	22,591		$	23,813		$	24,582		$	24,319		$	24,999

Nonperforming loans, leases and foreclosed properties/Total assets ⁽⁸⁾	1.01		%	1.05		%	1.07		%	1.15		%	1.18		%
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties ⁽⁸⁾	2.33			2.53			2.62			2.81			2.87
Nonperforming loans and leases/Total loans and leases ⁽⁸⁾	2.26			2.44			2.52			2.68			2.70

Commercial utilized reservable criticized exposure ⁽⁹⁾	$	14,928		$	15,006		$	15,936		$	17,374		$	20,442
Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure ⁽⁹⁾	3.62		%	3.75		%	4.10		%	4.69		%	5.64		%
Total commercial utilized criticized exposure/Commercial utilized exposure ⁽⁹⁾	3.64			4.08			4.40			5.03			5.92

⁽¹⁾

During the fourth and third quarters of 2012, as a result of regulatory guidance, we changed the treatment of loans discharged in Chapter 7 bankruptcy to write down these loans to collateral value and classify as nonperforming. As a result of this change, we reclassified residential mortgage loans of $49 million, home equity loans of $5 million and direct/indirect consumer loans of $58 million to nonperforming as of December 31, 2012, and residential mortgage loans of $567 million and home equity loans of $483 million as of September 30, 2012. Prior period amounts have not been restated.


⁽²⁾	Foreclosed property balances do not include loans that are insured by the Federal Housing Administration and have entered foreclosure of $1.6 billion, $2.3 billion, $2.5 billion, $2.4 billion and $1.2 billion at June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, respectively.


⁽³⁾	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.


⁽⁴⁾	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.



⁽⁵⁾Balances do not include the following:	June 30, 2013		March 31, 2013		December 31, 2012		September 30, 2012		June 30, 2012
Nonperforming loans held-for-sale	$	891	$	1,050	$	1,059	$	1,397	$	1,363
Nonperforming loans accounted for under the fair value option	398		412		401		458		453
Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010	485		512		521		540		461

⁽⁶⁾

Balances do not include loans held-for-sale past due 90 days or more and still accruing of $17 million, $18 million, $130 million, $26 million and $31 million at June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, respectively. At June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, there were no loans accounted for under the fair value option past due 90 days or more and still accruing interest.


⁽⁷⁾	These balances are excluded from total nonperforming loans, leases and foreclosed properties.


⁽⁸⁾	Total assets and total loans and leases do not include loans accounted for under the fair value option of $9.5 billion, $8.8 billion, $9.0 billion, $7.6 billion and $8.4 billion at June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, respectively.


⁽⁹⁾	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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Nonperforming Consumer Loans and Leases:
Balance, beginning of period	$	19,282		$	19,431		$	19,753		$	19,121		$	19,724
Additions to nonperforming loans and leases:
New nonperforming loans and leases	2,289			2,661			3,211			3,306			3,259
Implementation of change in treatment of loans discharged in bankruptcies ⁽²⁾	n/a			n/a			112			1,050			n/a
Reductions to nonperforming loans and leases:
Paydowns and payoffs	(695		)	(680		)	(968		)	(822		)	(858		)
Sales	(175		)	—			(47		)	—			—
Returns to performing status ⁽³⁾	(1,139		)	(943		)	(1,076		)	(943		)	(1,271		)
Charge-offs ⁽⁴⁾	(932		)	(1,072		)	(1,439		)	(1,827		)	(1,541		)
Transfers to foreclosed properties	(90		)	(115		)	(115		)	(132		)	(192		)
Total net additions (reductions) to nonperforming loans and leases	(742		)	(149		)	(322		)	632			(603		)
Total nonperforming consumer loans and leases, end of period	18,540			19,282			19,431			19,753			19,121
Foreclosed properties	508			620			650			799			1,108
Nonperforming consumer loans, leases and foreclosed properties, end of period	$	19,048		$	19,902		$	20,081		$	20,552		$	20,229

Nonperforming Commercial Loans and Leases ⁽⁵⁾:
Balance, beginning of period	$	2,734		$	3,224		$	3,948		$	4,715		$	5,751
Additions to nonperforming loans and leases:
New nonperforming loans and leases	269			350			473			474			788
Advances	3			6			5			42			14
Reductions to nonperforming loans and leases:
Paydowns	(312		)	(328		)	(445		)	(548		)	(806		)
Sales	(171		)	(147		)	(198		)	(113		)	(392		)
Return to performing status ⁽⁶⁾	(243		)	(167		)	(249		)	(262		)	(152		)
Charge-offs	(170		)	(177		)	(273		)	(221		)	(379		)
Transfers to foreclosed properties	(7		)	(21		)	(37		)	(93		)	(109		)
Transfers to loans held-for-sale	—			(6		)	—			(46		)	—
Total net reductions to nonperforming loans and leases	(631		)	(490		)	(724		)	(767		)	(1,036		)
Total nonperforming commercial loans and leases, end of period	2,103			2,734			3,224			3,948			4,715
Foreclosed properties	129			206			250			425			433
Nonperforming commercial loans, leases and foreclosed properties, end of period	$	2,232		$	2,940		$	3,474		$	4,373		$	5,148


⁽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 fourth and third quarters of 2012, as a result of regulatory guidance, we changed the treatment of loans discharged in Chapter 7 bankruptcy to write down these loans to collateral value and classify as nonperforming. Prior period amounts have not be restated.

⁽³⁾

Consumer 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. Certain troubled debt restructurings are classified as nonperforming at the time of restructuring 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 non-bankruptcy related 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. Small business card loans are excluded as they are not classified as nonperforming.

⁽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.

n/a = not applicable

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, 2, 3, 4)}
(Dollars in millions)
	Second Quarter 2013					First Quarter 2013					Fourth Quarter 2012				Third Quarter 2012					Second Quarter 2012
Net Charge-offs	Amount			Percent		Amount			Percent		Amount		Percent		Amount			Percent		Amount		Percent
Residential mortgage	$	271		0.43	%	$	383		0.60	%	$	729	1.14	%	$	720		1.10	%	$	749	1.14	%
Home equity	486			1.92		684			2.62		768		2.77		1,623			5.55		893		3.00
U.S. credit card	917			4.10		947			4.19		978		4.19		1,079			4.60		1,244		5.27
Non-U.S. credit card	104			3.93		112			4.14		119		3.62		124			3.70		135		3.97
Direct/Indirect consumer	86			0.42		124			0.61		195		0.94		161			0.78		181		0.86
Other consumer	51			11.57		52			12.76		64		15.78		63			9.53		49		7.71
Total consumer	1,915			1.42		2,302			1.70		2,853		2.04		3,770			2.64		3,251		2.25
U.S. commercial ⁽⁵⁾	43			0.09		45			0.09		27		0.05		55			0.12		94		0.20
Commercial real estate	44			0.43		93			0.96		84		0.88		91			0.97		77		0.83
Commercial lease financing	(5		)	(0.08	)	(10		)	(0.18	)	1		0.02		(12		)	(0.22	)	14		0.25
Non-U.S. commercial	16			0.08		(15		)	(0.08	)	17		0.12		9			0.06		7		0.06
	98			0.11		113			0.14		129		0.16		143			0.19		192		0.26
U.S. small business commercial	98			3.15		102			3.33		122		3.86		209			6.59		183		5.74
Total commercial	196			0.22		215			0.25		251		0.30		352			0.45		375		0.49
Total net charge-offs	$	2,111		0.94		$	2,517		1.14		$	3,104	1.40		$	4,122		1.86		$	3,626	1.64

By Business Segment
Consumer & Business Banking	$	1,158		2.84	%	$	1,241		3.03	%	$	1,383	3.29	%	$	1,539		3.62	%	$	1,707	3.96	%
Consumer Real Estate Services	465			2.09		660			2.91		732		3.05		1,567			6.15		845		3.25
Global Banking	78			0.12		68			0.12		132		0.23		76			0.14		121		0.23
Global Markets	(1		)	—		2			0.01		1		0.01		—			—		—		—
Global Wealth & Investment Management	51			0.19		61			0.23		91		0.35		97			0.38		88		0.36
All Other	360			0.60		485			0.80		765		1.23		843			1.31		865		1.32
Total net charge-offs	$	2,111		0.94		$	2,517		1.14		$	3,104	1.40		$	4,122		1.86		$	3,626	1.64

⁽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. Excluding the purchased credit-impaired loan portfolio, total annualized net charge-offs as a percentage of total average loans and leases outstanding were 0.97, 1.18, 1.44, 1.93 and 1.69 for the three months ended June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, respectively.

⁽²⁾

Excludes write-offs of purchased credit-impaired loans of $313 million, $839 million, $1.1 billion and $1.7 billion for the three months ended June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively. There were no write-offs of purchased credit-impaired loans at June 30, 2012. Including the write-offs of purchased credit-impaired loans, total annualized net charge-offs and purchased credit-impaired write-offs as a percentage of total average loans and leases outstanding were 1.07, 1.52, 1.90 and 2.63 for the three months ended June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively.

⁽³⁾

During the three months ended September 30, 2012, the Corporation changed the treatment of loans discharged in Chapter 7 bankruptcy to write down these loans to collateral value irrespective of the borrower's payment status. As a result of the completion of implementation, the Corporation charged off $73 million and $478 million of current or less than 60 days delinquent loans for the three months ended December 31, 2012 and September 30, 2012.


⁽⁴⁾	Includes $435 million of charge-offs incurred during the three months ended September 30, 2012 as a result of National Mortgage Settlement activities.


⁽⁵⁾	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.	44



Bank of America Corporation and Subsidiaries
Year-to-Date Net Charge-offs and Net Charge-off Ratios ^{(1, 2)}
(Dollars in millions)
	Six Months Ended June 30
	2013					2012
Net Charge-offs	Amount			Percent		Amount		Percent
Residential mortgage	$	654		0.51	%	$	1,662	1.25	%
Home equity	1,170			2.27		1,851		3.07
U.S. credit card	1,864			4.14		2,575		5.36
Non-U.S. credit card	216			4.03		338		4.89
Direct/Indirect consumer	210			0.51		407		0.95
Other consumer	103			12.15		105		8.15
Total consumer	4,217			1.56		6,938		2.37
U.S. commercial ⁽³⁾	88			0.09		160		0.18
Commercial real estate	137			0.69		209		1.10
Commercial lease financing	(15		)	(0.13	)	5		0.04
Non-U.S. commercial	1			—		2		0.01
	211			0.12		376		0.26
U.S. small business commercial	200			3.24		368		5.68
Total commercial	411			0.23		744		0.48
Total net charge-offs	$	4,628		1.04		$	7,682	1.72

By Business Segment
Consumer & Business Banking	$	2,399		2.94	%	$	3,531	3.99	%
Consumer Real Estate Services	1,125			2.51		1,760		3.34
Global Banking	146			0.12		228		0.21
Global Markets	1			—		13		0.08
Global Wealth & Investment Management	112			0.21		182		0.37
All Other	845			0.71		1,968		1.48
Total net charge-offs	$	4,628		1.04		$	7,682	1.72

⁽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. Excluding the purchased credit-impaired loan portfolio, total annualized net charge-offs as a percentage of total average loans and leases outstanding were 1.07 and 1.78 for the six months ended June 30, 2013 and 2012.

⁽²⁾

Excludes write-offs of consumer purchased credit-impaired loans of $1.2 billion for the six months ended June 30, 2013. There were no write-offs of purchased credit-impaired loans for the six months ended June 30, 2012. Including the write-offs of purchased credit-impaired loans, total annualized net charge-offs and purchased credit-impaired write-offs as a percentage of total average loans and leases outstanding were 1.29 for the six months ended June 30, 2013.


⁽³⁾	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, 2013						March 31, 2013						June 30, 2012
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	$	6,071	28.59	%	2.39	%	$	6,731	29.99	%	2.62	%	$	7,970	26.32	%	3.04	%
Home equity	6,325		29.79		6.32		6,707		29.89		6.50		11,994		39.60		10.16
U.S. credit card	4,468		21.04		4.94		4,506		20.08		5.00		5,228		17.26		5.54
Non-U.S. credit card	498		2.34		4.82		572		2.55		5.38		777		2.57		5.79
Direct/Indirect consumer	603		2.84		0.72		690		3.08		0.85		875		2.89		1.05
Other consumer	102		0.48		5.68		106		0.47		6.24		144		0.47		5.59
Total consumer	18,067		85.08		3.35		19,312		86.06		3.55		26,988		89.11		4.70
U.S. commercial ⁽²⁾	1,874		8.83		0.85		1,866		8.31		0.87		2,016		6.66		1.02
Commercial real estate	801		3.77		1.90		815		3.63		2.09		967		3.19		2.65
Commercial lease financing	87		0.41		0.37		85		0.38		0.36		80		0.26		0.37
Non-U.S. commercial	406		1.91		0.47		363		1.62		0.44		237		0.78		0.44
Total commercial ⁽³⁾	3,168		14.92		0.85		3,129		13.94		0.87		3,300		10.89		1.07
Allowance for loan and lease losses	21,235		100.00	%	2.33		22,441		100.00	%	2.49		30,288		100.00	%	3.43
Reserve for unfunded lending commitments	474						486						574
Allowance for credit losses	$	21,709					$	22,927					$	30,862

Asset Quality Indicators

Allowance for loan and lease losses/Total loans and leases ⁽⁴⁾			2.33	%					2.49	%					3.43	%
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)}			1.96						2.06						2.50
Allowance for loan and lease losses/Total nonperforming loans and leases⁽⁶⁾			103						102						127
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total nonperforming loans and leases ⁽⁵⁾			84						82						90
Ratio of the allowance for loan and lease losses/Annualized net charge-offs ⁽⁷⁾			2.51						2.20						2.08
Ratio of the allowance for loan and lease losses (excluding purchased credit-impaired loans)/Annualized net charge-offs ⁽⁵⁾			2.04						1.76						1.46
Ratio of the allowance for loan and lease losses/Annualized net charge-offs and purchased credit-impaired write-offs ⁽⁸⁾			2.18						1.65						2.08

⁽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 included residential mortgage loans of $1.1 billion, $1.0 billion and $1.2 billion at June 30, 2013, March 31, 2013 and June 30, 2012, respectively. Commercial loans accounted for under the fair value option included U.S. commercial loans of $2.0 billion, $2.1 billion and $1.9 billion and non-U.S. commercial loans of $6.4 billion, $5.7 billion and $5.3 billion at June 30, 2013, March 31, 2013 and June 30, 2012, respectively.


⁽²⁾	Includes allowance for loan and lease losses for U.S. small business commercial loans of $584 million, $611 million and $812 million at June 30, 2013, March 31, 2013 and June 30, 2012, respectively.


⁽³⁾	Includes allowance for loan and lease losses for impaired commercial loans of $328 million, $408 million and $603 million at June 30, 2013, March 31, 2013 and June 30, 2012, respectively.


⁽⁴⁾	Total loans and leases do not include loans accounted for under the fair value option of $9.5 billion, $8.8 billion and $8.4 billion at June 30, 2013, March 31, 2013 and June 30, 2012, respectively.


⁽⁵⁾	Excludes valuation allowance on purchased credit-impaired loans of $3.9 billion, $4.5 billion and $9.0 billion at June 30, 2013, March 31, 2013 and June 30, 2012, respectively.

⁽⁶⁾

Allowance for loan and lease losses includes $9.9 billion, $10.7 billion and $16.3 billion allocated to products (primarily the Consumer Lending portfolios within Consumer & Business Banking and purchased credit-impaired loans) that are excluded from nonperforming loans and leases at June 30, 2013, March 31, 2013 and June 30, 2012, respectively. Excluding these amounts, allowance for loan and lease losses as a percentage of total nonperforming loans and leases was 55 percent, 53 percent and 59 percent at June 30, 2013, March 31, 2013 and June 30, 2012, respectively.


⁽⁷⁾	Net charge-offs exclude $313 million and $839 million of write-offs in the purchased credit-impaired loan portfolio at June 30, 2013 and March 31, 2013. These write-offs decreased the purchased credit-impaired valuation allowance included as part of the allowance for loan and lease losses.


⁽⁸⁾	There were no write-offs of purchased credit-impaired loans at June 30, 2012.

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. For purposes of this calculation, the Corporation uses the federal statutory tax rate of 35 percent. 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 measures 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. Tangible equity represents an adjusted shareholders' equity or common shareholders' equity amount which has been reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible common shareholders' equity measures the Corporation's earnings contribution as a percentage of adjusted average common shareholders' equity. Return on average tangible shareholders' equity measures the Corporation's earnings contribution as a percentage of adjusted average shareholders' equity. The tangible common equity ratio represents adjusted ending common shareholders' equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. The tangible equity ratio represents total adjusted ending shareholders' equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Tangible book value per common share represents adjusted ending common shareholders' equity divided by ending common shares outstanding. These measures are used to evaluate the Corporation's use of equity (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.

Effective January 1, 2013, on a prospective basis, the Corporation adjusted the amount of capital being allocated to its business segments. The adjustment reflects a refinement to the prior-year methodology (economic capital) which focused solely on internal risk-based economic capital models. The refined methodology (allocated capital) now also considers the effect of regulatory capital requirements in addition to internal risk-based economic capital models. The Corporation's internal risk-based capital models use a risk-adjusted methodology incorporating each segment's credit, market, interest rate, business and operational risk components. The capital allocated to the Corporation's business segments is currently referred to as allocated capital and, prior to January 1, 2013, was referred to as economic capital, both of which represent non-GAAP financial measures. Allocated capital in the Corporation's business segments is subject to change over time.

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 six months ended June 30, 2013 and 2012, and the three months ended June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012. 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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis

Net interest income	$	21,213		$	20,394		$	10,549		$	10,664		$	10,324		$	9,938		$	9,548
Fully taxable-equivalent adjustment	433			441			222			211			231			229			234
Net interest income on a fully taxable-equivalent basis	$	21,646		$	20,835		$	10,771		$	10,875		$	10,555		$	10,167		$	9,782

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	$	45,924		$	44,246		$	22,727		$	23,197		$	18,660		$	20,428		$	21,968
Fully taxable-equivalent adjustment	433			441			222			211			231			229			234
Total revenue, net of interest expense on a fully taxable-equivalent basis	$	46,357		$	44,687		$	22,949		$	23,408		$	18,891		$	20,657		$	22,202

Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis

Income tax expense (benefit)	$	1,987		$	750		$	1,486		$	501		$	(2,636	)	$	770		$	684
Fully taxable-equivalent adjustment	433			441			222			211			231			229			234
Income tax expense (benefit) on a fully taxable-equivalent basis	$	2,420		$	1,191		$	1,708		$	712		$	(2,405	)	$	999		$	918

Reconciliation of average common shareholders' equity to average tangible common shareholders' equity

Common shareholders' equity	$	218,509		$	215,466		$	218,790		$	218,225		$	219,744		$	217,273		$	216,782
Goodwill	(69,937		)	(69,971		)	(69,930		)	(69,945		)	(69,976		)	(69,976		)	(69,976		)
Intangible assets (excluding mortgage servicing rights)	(6,409		)	(7,701		)	(6,270		)	(6,549		)	(6,874		)	(7,194		)	(7,533		)
Related deferred tax liabilities	2,393			2,663			2,360			2,425			2,490			2,556			2,626
Tangible common shareholders' equity	$	144,556		$	140,457		$	144,950		$	144,156		$	145,384		$	142,659		$	141,899

Reconciliation of average shareholders' equity to average tangible shareholders' equity

Shareholders' equity	$	236,024		$	234,062		$	235,063		$	236,995		$	238,512		$	236,039		$	235,558
Goodwill	(69,937		)	(69,971		)	(69,930		)	(69,945		)	(69,976		)	(69,976		)	(69,976		)
Intangible assets (excluding mortgage servicing rights)	(6,409		)	(7,701		)	(6,270		)	(6,549		)	(6,874		)	(7,194		)	(7,533		)
Related deferred tax liabilities	2,393			2,663			2,360			2,425			2,490			2,556			2,626
Tangible shareholders' equity	$	162,071		$	159,053		$	161,223		$	162,926		$	164,152		$	161,425		$	160,675

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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Reconciliation of period-end common shareholders' equity to period-end tangible common shareholders' equity

Common shareholders' equity	$	216,791		$	217,213		$	216,791		$	218,513		$	218,188		$	219,838		$	217,213
Goodwill	(69,930		)	(69,976		)	(69,930		)	(69,930		)	(69,976		)	(69,976		)	(69,976		)
Intangible assets (excluding mortgage servicing rights)	(6,104		)	(7,335		)	(6,104		)	(6,379		)	(6,684		)	(7,030		)	(7,335		)
Related deferred tax liabilities	2,297			2,559			2,297			2,363			2,428			2,494			2,559
Tangible common shareholders' equity	$	143,054		$	142,461		$	143,054		$	144,567		$	143,956		$	145,326		$	142,461

Reconciliation of period-end shareholders' equity to period-end tangible shareholders' equity

Shareholders' equity	$	231,032		$	235,975		$	231,032		$	237,293		$	236,956		$	238,606		$	235,975
Goodwill	(69,930		)	(69,976		)	(69,930		)	(69,930		)	(69,976		)	(69,976		)	(69,976		)
Intangible assets (excluding mortgage servicing rights)	(6,104		)	(7,335		)	(6,104		)	(6,379		)	(6,684		)	(7,030		)	(7,335		)
Related deferred tax liabilities	2,297			2,559			2,297			2,363			2,428			2,494			2,559
Tangible shareholders' equity	$	157,295		$	161,223		$	157,295		$	163,347		$	162,724		$	164,094		$	161,223

Reconciliation of period-end assets to period-end tangible assets

Assets	$	2,123,320		$	2,160,854		$	2,123,320		$	2,174,819		$	2,209,974		$	2,166,162		$	2,160,854
Goodwill	(69,930		)	(69,976		)	(69,930		)	(69,930		)	(69,976		)	(69,976		)	(69,976		)
Intangible assets (excluding mortgage servicing rights)	(6,104		)	(7,335		)	(6,104		)	(6,379		)	(6,684		)	(7,030		)	(7,335		)
Related deferred tax liabilities	2,297			2,559			2,297			2,363			2,428			2,494			2,559
Tangible assets	$	2,049,583		$	2,086,102		$	2,049,583		$	2,100,873		$	2,135,742		$	2,091,650		$	2,086,102

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 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Fourth Quarter 2012			Third Quarter 2012			Second Quarter 2012
Reconciliation of return on average allocated capital/economic capital ⁽¹⁾

Consumer & Business Banking

Reported net income	$	2,831		$	2,740		$	1,392		$	1,439		$	1,441		$	1,346		$	1,208
Adjustment related to intangibles ⁽²⁾	4			7			2			2			3			3			4
Adjusted net income	$	2,835		$	2,747		$	1,394		$	1,441		$	1,444		$	1,349		$	1,212

Average allocated equity ⁽³⁾	$	62,070		$	55,880		$	62,058		$	62,083		$	56,673		$	56,413		$	55,987
Adjustment related to goodwill and a percentage of intangibles	(32,070		)	(32,198		)	(32,058		)	(32,083		)	(32,112		)	(32,142		)	(32,180		)
Average allocated capital/economic capital	$	30,000		$	23,682		$	30,000		$	30,000		$	24,561		$	24,271		$	23,807

Global Banking

Reported net income	$	2,575		$	2,802		$	1,291		$	1,284		$	1,391		$	1,151		$	1,318
Adjustment related to intangibles ⁽²⁾	1			2			—			1			1			1			1
Adjusted net income	$	2,576		$	2,804		$	1,291		$	1,285		$	1,392		$	1,152		$	1,319

Average allocated equity ⁽³⁾	$	45,412		$	41,677		$	45,416		$	45,407		$	41,546		$	42,066		$	41,903
Adjustment related to goodwill and a percentage of intangibles	(22,412		)	(22,434		)	(22,416		)	(22,407		)	(22,423		)	(22,427		)	(22,431		)
Average allocated capital/economic capital	$	23,000		$	19,243		$	23,000		$	23,000		$	19,123		$	19,639		$	19,472

Global Markets

Reported net income (loss)	$	2,128		$	1,326		$	959		$	1,169		$	182		$	(275	)	$	497
Adjustment related to intangibles ⁽²⁾	4			5			2			2			2			2			3
Adjusted net income (loss)	$	2,132		$	1,331		$	961		$	1,171		$	184		$	(273	)	$	500

Average allocated equity ⁽³⁾	$	35,372		$	19,207		$	35,372		$	35,372		$	19,562		$	18,796		$	18,655
Adjustment related to goodwill and a percentage of intangibles	(5,372		)	(5,358		)	(5,372		)	(5,372		)	(5,378		)	(5,382		)	(5,339		)
Average allocated capital/economic capital	$	30,000		$	13,849		$	30,000		$	30,000		$	14,184		$	13,414		$	13,316

Global Wealth & Investment Management

Reported net income	$	1,478		$	1,098		$	758		$	720		$	576		$	571		$	548
Adjustment related to intangibles ⁽²⁾	9			12			5			4			5			6			6
Adjusted net income	$	1,487		$	1,110		$	763		$	724		$	581		$	577		$	554

Average allocated equity ⁽³⁾	$	20,311		$	17,107		$	20,300		$	20,323		$	18,489		$	18,199		$	17,391
Adjustment related to goodwill and a percentage of intangibles	(10,311		)	(10,391		)	(10,300		)	(10,323		)	(10,340		)	(10,359		)	(10,380		)
Average allocated capital/economic capital	$	10,000		$	6,716		$	10,000		$	10,000		$	8,149		$	7,840		$	7,011

For footnotes 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 2013			First Quarter 2013			Second Quarter 2012
	2013			2012			Second Quarter 2013			First Quarter 2013			Second Quarter 2012
Consumer & Business Banking

Deposits

Reported net income	$	882		$	637		$	484		$	398		$	225
Adjustment related to intangibles ⁽²⁾	—			1			—			—			1
Adjusted net income	$	882		$	638		$	484		$	398		$	226

Average allocated equity ⁽³⁾	$	35,404		$	32,540		$	35,403		$	35,407		$	32,862
Adjustment related to goodwill and a percentage of intangibles	(20,004		)	(20,027		)	(20,003		)	(20,007		)	(20,025		)
Average allocated capital/economic capital	$	15,400		$	12,513		$	15,400		$	15,400		$	12,837

Consumer Lending

Reported net income	$	1,949		$	2,103		$	908		$	1,041		$	983
Adjustment related to intangibles ⁽²⁾	4			6			2			2			3
Adjusted net income	$	1,953		$	2,109		$	910		$	1,043		$	986

Average allocated equity ⁽³⁾	$	26,666		$	23,340		$	26,655		$	26,676		$	23,125
Adjustment related to goodwill and a percentage of intangibles	(12,066		)	(12,171		)	(12,055		)	(12,076		)	(12,155		)
Average allocated capital/economic capital	$	14,600		$	11,169		$	14,600		$	14,600		$	10,970


⁽¹⁾	There are no adjustments to reported net income (loss) or average allocated equity for Consumer Real Estate Services.


⁽²⁾	Represents cost of funds, earnings credits and certain expenses related to intangibles.


⁽³⁾	Average allocated equity is comprised of average allocated capital (or economic capital prior to 2013) plus capital for the portion of goodwill and intangibles specifically assigned to the business segment.

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

Bank of America (BAC) 8-KResults of Operations and Financial Condition