Bank of America 8K Results of Operations and Financial Condition | BAC 16 Apr 14

Supplemental Information

First Quarter 2014

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
Regulatory Capital Reconciliations	9
Net Interest Income Excluding Trading-related Net Interest Income	10
Quarterly Average Balances and Interest Rates	11
Debt Securities and Available-for-Sale Marketable Equity Securities	13
Quarterly Results by Business Segment	14
Consumer & Business Banking
Total Segment Results	15
Business Results	16
Key Indicators	18
Consumer Real Estate Services
Total Segment Results	19
Business Results	20
Key Indicators	22
Global Wealth & Investment Management
Total Segment Results	23
Key Indicators	24
Global Banking
Total Segment Results	25
Key Indicators	26
Investment Banking Product Rankings	27
Global Markets
Total Segment Results	28
Key Indicators	29
All Other
Total Results	30
Equity Investments	31
Outstanding Loans and Leases	32
Quarterly Average Loans and Leases by Business Segment	33
Commercial Credit Exposure by Industry	34
Net Credit Default Protection by Maturity Profile and Credit Exposure Debt Rating	35
Top 20 Non-U.S. Countries Exposure	36
Select European Countries	37
Nonperforming Loans, Leases and Foreclosed Properties	38
Nonperforming Loans, Leases and Foreclosed Properties Activity	39
Quarterly Net Charge-offs and Net Charge-off Ratios	40
Allocation of the Allowance for Credit Losses by Product Type	41

Exhibit A: Non-GAAP Reconciliations	42



Bank of America Corporation and Subsidiaries
Consolidated Financial Highlights
(Dollars in millions, except per share information; shares in thousands)
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013

Income statement
Net interest income	$	10,085		$	10,786		$	10,266		$	10,549		$	10,664
Noninterest income	12,481			10,702			11,264			12,178			12,533
Total revenue, net of interest expense	22,566			21,488			21,530			22,727			23,197
Provision for credit losses	1,009			336			296			1,211			1,713
Noninterest expense	22,238			17,307			16,389			16,018			19,500
Income tax expense (benefit)	(405		)	406			2,348			1,486			501
Net income (loss)	(276		)	3,439			2,497			4,012			1,483
Preferred stock dividends	238			256			279			441			373
Net income (loss) applicable to common shareholders	(514		)	3,183			2,218			3,571			1,110
Diluted earnings (loss) per common share ⁽¹⁾	(0.05		)	0.29			0.20			0.32			0.10
Average diluted common shares issued and outstanding ⁽¹⁾	10,560,518			11,404,438			11,482,226			11,524,510			11,154,778
Dividends paid per common share	$	0.01		$	0.01		$	0.01		$	0.01		$	0.01

Performance ratios
Return on average assets	n/m			0.64		%	0.47		%	0.74		%	0.27		%
Return on average common shareholders' equity	n/m			5.74			4.06			6.55			2.06
Return on average tangible common shareholders' equity ⁽²⁾	n/m			8.61			6.15			9.88			3.12
Return on average tangible shareholders' equity ⁽²⁾	n/m			8.53			6.32			9.98			3.69


At period end
Book value per share of common stock	$	20.75		$	20.71		$	20.50		$	20.18		$	20.19
Tangible book value per share of common stock ⁽²⁾	13.81			13.79			13.62			13.32			13.36
Market price per share of common stock:
Closing price	$	17.20		$	15.57		$	13.80		$	12.86		$	12.18
High closing price for the period	17.92			15.88			14.95			13.83			12.78
Low closing price for the period	16.10			13.69			12.83			11.44			11.03
Market capitalization	181,117			164,914			147,429			138,156			131,817

Number of banking centers - U.S.	5,095			5,151			5,243			5,328			5,389
Number of branded ATMs - U.S.	16,214			16,259			16,201			16,354			16,311
Full-time equivalent employees	238,560			242,117			247,943			257,158			262,812


⁽¹⁾	The diluted earnings (loss) per common share excludes the effect of any equity instruments that are antidilutive to earnings per share. The number of antidilutive equity instruments was higher in the first quarter of 2014 due to the net loss.

⁽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 42-45.)

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)

Fully taxable-equivalent (FTE) basis data ⁽¹⁾

	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013

Net interest income	$	10,286		$	10,999		$	10,479		$	10,771		$	10,875
Total revenue, net of interest expense	22,767			21,701			21,743			22,949			23,408
Net interest yield ⁽²⁾	2.29		%	2.44		%	2.33		%	2.35		%	2.36		%
Efficiency ratio	97.68			79.75			75.38			69.80			83.31


⁽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 42-45.)


⁽²⁾	Beginning in the first quarter of 2014, interest-bearing deposits placed with the Federal Reserve and certain non-U.S. central banks are included in earning assets. Prior period yields have been reclassified to conform to current period presentation.

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)
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013

Interest income
Loans and leases	$	8,760		$	9,086		$	9,146		$	9,060		$	9,178
Debt securities	1,997			2,447			2,205			2,548			2,549
Federal funds sold and securities borrowed or purchased under agreements to resell	265			304			291			319			315
Trading account assets	1,177			1,139			1,049			1,181			1,337
Other interest income	736			736			691			717			722
Total interest income	12,935			13,712			13,382			13,825			14,101

Interest expense
Deposits	291			314			334			366			382
Short-term borrowings	609			682			683			809			749
Trading account liabilities	435			364			375			427			472
Long-term debt	1,515			1,566			1,724			1,674			1,834
Total interest expense	2,850			2,926			3,116			3,276			3,437
Net interest income	10,085			10,786			10,266			10,549			10,664

Noninterest income
Card income	1,393			1,503			1,444			1,469			1,410
Service charges	1,826			1,870			1,884			1,837			1,799
Investment and brokerage services	3,269			3,117			2,995			3,143			3,027
Investment banking income	1,542			1,738			1,297			1,556			1,535
Equity investment income	784			474			1,184			680			563
Trading account profits	2,467			863			1,266			1,938			2,989
Mortgage banking income	412			848			585			1,178			1,263
Gains on sales of debt securities	377			390			356			457			68
Other income (loss)	412			(101		)	260			(76		)	(112		)
Other-than-temporary impairment losses on available-for-sale debt securities:
Total other-than-temporary impairment losses	(1		)	—			(8		)	(5		)	(14		)
Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income	—			—			1			1			5
Net impairment losses recognized in earnings on available-for-sale debt securities	(1		)	—			(7		)	(4		)	(9		)
Total noninterest income	12,481			10,702			11,264			12,178			12,533
Total revenue, net of interest expense	22,566			21,488			21,530			22,727			23,197

Provision for credit losses	1,009			336			296			1,211			1,713

Noninterest expense
Personnel	9,749			7,987			8,310			8,531			9,891
Occupancy	1,115			1,116			1,096			1,109			1,154
Equipment	546			526			538			532			550
Marketing	442			457			511			437			429
Professional fees	558			839			702			694			649
Amortization of intangibles	239			266			270			274			276
Data processing	833			800			779			779			812
Telecommunications	370			376			397			411			409
Other general operating	8,386			4,940			3,786			3,251			5,330
Total noninterest expense	22,238			17,307			16,389			16,018			19,500
Income (loss) before income taxes	(681		)	3,845			4,845			5,498			1,984
Income tax expense (benefit)	(405		)	406			2,348			1,486			501
Net income (loss)	$	(276	)	$	3,439		$	2,497		$	4,012		$	1,483
Preferred stock dividends	238			256			279			441			373
Net income (loss) applicable to common shareholders	$	(514	)	$	3,183		$	2,218		$	3,571		$	1,110

Per common share information
Earnings (loss)	$	(0.05	)	$	0.30		$	0.21		$	0.33		$	0.10
Diluted earnings (loss) ⁽¹⁾	(0.05		)	0.29			0.20			0.32			0.10
Dividends paid	0.01			0.01			0.01			0.01			0.01
Average common shares issued and outstanding	10,560,518			10,633,030			10,718,918			10,775,867			10,798,975
Average diluted common shares issued and outstanding⁽¹⁾	10,560,518			11,404,438			11,482,226			11,524,510			11,154,778


⁽¹⁾	The diluted earnings (loss) per common share excludes the effect of any equity instruments that are antidilutive to earnings per share. The number of antidilutive equity instruments was higher in the first quarter of 2014 due to the net loss.

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)
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
Net income (loss)	$	(276	)	$	3,439		$	2,497		$	4,012		$	1,483
Other comprehensive income (loss), net-of-tax:
Net change in available-for-sale debt and marketable equity securities	1,289			(2,396		)	(631		)	(4,233		)	(906		)
Net change in derivatives	208			227			180			13			172
Employee benefit plan adjustments	49			536			1,380			48			85
Net change in foreign currency translation adjustments	(126		)	(1		)	(43		)	(49		)	(42		)
Other comprehensive income (loss)	1,420			(1,634		)	886			(4,221		)	(691		)
Comprehensive income (loss)	$	1,144		$	1,805		$	3,383		$	(209	)	$	792

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)
	March 31 2014			December 31 2013			March 31 2013
Assets
Cash and due from banks	$	31,099		$	36,852		$	33,461
Interest-bearing deposits with the Federal Reserve and non-U.S. central banks	120,546			94,470			67,519
Cash and cash equivalents	151,645			131,322			100,980
Time deposits placed and other short-term investments	12,793			11,540			12,740
Federal funds sold and securities borrowed or purchased under agreements to resell	215,299			190,328			220,623
Trading account assets	195,949			200,993			223,028
Derivative assets	45,302			47,495			52,247
Debt securities:
Carried at fair value	285,576			268,795			305,132
Held-to-maturity, at cost	55,120			55,150			49,577
Total debt securities	340,696			323,945			354,709
Loans and leases	916,217			928,233			911,592
Allowance for loan and lease losses	(16,618		)	(17,428		)	(22,441		)
Loans and leases, net of allowance	899,599			910,805			889,151
Premises and equipment, net	10,351			10,475			11,085
Mortgage servicing rights (includes $4,765, $5,042 and $5,776 measured at fair value)	4,765			5,052			5,896
Goodwill	69,842			69,844			69,930
Intangible assets	5,337			5,574			6,379
Loans held-for-sale	12,317			11,362			19,278
Customer and other receivables	64,135			59,448			70,981
Other assets	121,821			124,090			137,792
Total assets	$	2,149,851		$	2,102,273		$	2,174,819

Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
Trading account assets	$	8,052		$	8,412		$	9,113
Derivative assets	23			185			187
Loans and leases	104,556			109,118			116,236
Allowance for loan and lease losses	(2,614		)	(2,674		)	(3,310		)
Loans and leases, net of allowance	101,942			106,444			112,926
Loans held-for-sale	1,294			1,384			3,229
All other assets	3,970			4,577			4,728
Total assets of consolidated variable interest entities	$	115,281		$	121,002		$	130,183

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)
	March 31 2014			December 31 2013			March 31 2013
Liabilities
Deposits in U.S. offices:
Noninterest-bearing	$	375,196		$	373,084		$	357,635
Interest-bearing	676,328			667,714			661,930
Deposits in non-U.S. offices:
Noninterest-bearing	9,050			8,241			7,165
Interest-bearing	73,076			70,232			68,453
Total deposits	1,133,650			1,119,271			1,095,183
Federal funds purchased and securities loaned or sold under agreements to repurchase	203,108			198,106			248,149
Trading account liabilities	89,076			83,469			90,547
Derivative liabilities	36,911			37,407			47,825
Short-term borrowings	51,409			45,999			42,148
Accrued expenses and other liabilities (includes $509, $484 and $486 of reserve for unfunded lending commitments)	149,024			135,662			134,033
Long-term debt	254,785			249,674			279,641
Total liabilities	1,917,963			1,869,588			1,937,526
Shareholders' equity
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,407,790, 3,407,790 and 3,685,410 shares	13,352			13,352			18,780
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 10,530,045,485, 10,591,808,296 and 10,822,379,936 shares	153,696			155,293			158,157
Retained earnings	71,877			72,497			63,844
Accumulated other comprehensive income (loss)	(7,037		)	(8,457		)	(3,488		)
Total shareholders' equity	231,888			232,685			237,293
Total liabilities and shareholders' equity	$	2,149,851		$	2,102,273		$	2,174,819

Liabilities of consolidated variable interest entities included in total liabilities above
Short-term borrowings	$	1,176		$	1,150		$	2,539
Long-term debt	18,338			19,448			31,461
All other liabilities	179			253			345
Total liabilities of consolidated variable interest entities	$	19,693		$	20,851		$	34,345

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)
	Basel 3 Transition			Basel 1
	March 31 2014			December 31 2013			September 30 2013			June 30 2013			March 31 2013
Risk-based capital metrics ^{(1, 2)}:
Common equity tier 1 capital ⁽³⁾	$	151,642		n/a			n/a			n/a			n/a
Tier 1 common capital	n/a			$	145,235		$	142,825		$	139,519		$	136,119
Tier 1 capital	155,674			161,456			159,008			156,689			158,677
Total capital	192,867			200,281			198,001			196,752			201,211
Risk-weighted assets⁽³⁾	1,282,492			1,297,534			1,289,444			1,288,159			1,298,187
Common equity tier 1 capital ratio	11.8		%	n/a			n/a			n/a			n/a
Tier 1 common capital ratio ⁽⁴⁾	n/a			11.2		%	11.1		%	10.8		%	10.5		%
Tier 1 capital ratio	12.1			12.4			12.3			12.2			12.2
Total capital ratio	15.0			15.4			15.4			15.3			15.5
Tier 1 leverage ratio	7.6			7.9			7.8			7.5			7.5

Tangible equity ratio ⁽⁵⁾	7.65			7.86			7.73			7.67			7.78
Tangible common equity ratio⁽⁵⁾	7.00			7.20			7.08			6.98			6.88


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


⁽²⁾	On January 1, 2014, the Basel 3 rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting common equity tier 1 capital and Tier 1 capital. We reported under Basel 1 (which included the Market Risk Final Rules) at December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013.


⁽³⁾	On a pro-forma basis, under the transition provisions for the Basel 3 Standardized approach (Basel 3 Standardized transition), fourth quarter 2013 common equity tier 1 capital and risk-weighted assets would have been $153,502 million and $1,315,994 million.


⁽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 ratio equals period-end tangible common shareholders' equity divided by period-end tangible assets. Tangible shareholders' equity and tangible assets are non-GAAP financial measures. We believe the use of 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 - Reconciliation to GAAP Financial Measures on pages 42-45.)

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.	8



Bank of America Corporation and Subsidiaries
Regulatory Capital Reconciliations ^{(1, 2)}
(Dollars in millions)
				December 31 2013			September 30 2013			June 30 2013			March 31 2013
Regulatory capital – Basel 1 to Basel 3 (fully phased-in)
Basel 1 Tier 1 capital				$	161,456		$	159,008		$	156,689		$	158,677
Deduction of qualifying preferred stock and trust preferred securities				(16,221		)	(16,183		)	(17,170		)	(22,558		)
Basel 1 Tier 1 common capital				145,235			142,825			139,519			136,119
Deduction of defined benefit pension assets				(829		)	(935		)	(787		)	(776		)
Deferred tax assets and threshold deductions (deferred tax asset temporary differences, MSRs and significant investments)				(4,803		)	(4,758		)	(6,761		)	(4,501		)
Net unrealized losses in accumulated OCI on AFS debt and certain marketable equity securities, and employee benefit plans				(5,668		)	(3,808		)	(4,557		)	(372		)
Other deductions, net				(1,620		)	(1,511		)	(1,568		)	(1,660		)
Basel 3 common equity tier 1 capital (fully phased-in)				$	132,315		$	131,813		$	125,846		$	128,810

	March 31 2014
Regulatory capital – Basel 3 transition to fully phased-in
Common equity tier 1 capital (transition)	$	151,642
Adjustments and deductions recognized in Tier 1 capital during transition	(9,284		)
Other adjustments and deductions phased in during transition	(8,197		)
Common equity tier 1 capital (fully phased-in)	$	134,161

	March 31 2014			December 31 2013			September 30 2013			June 30 2013			March 31 2013
Risk-weighted assets – As reported to Basel 3 (fully phased-in)
As reported risk weighted assets	$	1,282,492		$	1,297,534		$	1,289,444		$	1,288,159		$	1,298,187
Change in risk-weighted assets from reported to fully phased-in	165,596			164,449
Basel 3 Standardized approach risk-weighted assets (fully phased-in)	1,448,088			1,461,983
Change in risk-weighted assets for advanced models	(86,201		)	(132,939		)	37,140			22,276			55,454
Basel 3 Advanced approaches risk-weighted assets (fully phased-in)	$	1,361,887		$	1,329,044		$	1,326,584		$	1,310,435		$	1,353,641

Regulatory capital ratios
Basel 1 Tier 1 common	n/a			11.2		%	11.1		%	10.8		%	10.5		%
Basel 3 Standardized approach common equity tier 1 (transition)	11.8		%	n/a			n/a			n/a			n/a
Basel 3 Standardized approach common equity tier 1 (fully phased-in)	9.3			9.1			n/a			n/a			n/a
Basel 3 Advanced approaches common equity tier 1 (fully phased-in)	9.9			10.0			9.9			9.6			9.5


⁽¹⁾	Based on the Basel 3 Advanced approaches, assuming all regulatory model approvals, except for the potential reduction to risk-weighted assets resulting from the removal of the Comprehensive Risk Measure surcharge.


⁽²⁾	On January 1, 2014, the Basel 3 rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting common equity tier 1 capital and Tier 1 capital. We reported under Basel 1 (which included the Market Risk Final Rules) at December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013.

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.	9



Bank of America Corporation and Subsidiaries
Net Interest Income Excluding Trading-related Net Interest Income
(Dollars in millions)
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
Net interest income (FTE basis)
As reported	$	10,286		$	10,999		$	10,479		$	10,771		$	10,875
Impact of trading-related net interest income	(903		)	(1,051		)	(888		)	(919		)	(1,010		)
Net interest income excluding trading-related net interest income ⁽¹⁾	$	9,383		$	9,948		$	9,591		$	9,852		$	9,865

Average earning assets ⁽²⁾
As reported	$	1,803,298		$	1,798,697		$	1,789,045		$	1,833,541		$	1,857,894
Impact of trading-related earning assets	(442,732		)	(445,725		)	(446,212		)	(487,345		)	(497,730		)
Average earning assets excluding trading-related earning assets ⁽¹⁾	$	1,360,566		$	1,352,972		$	1,342,833		$	1,346,196		$	1,360,164

Net interest yield contribution (FTE basis) ^{(2, 3)}
As reported	2.29		%	2.44		%	2.33		%	2.35		%	2.36		%
Impact of trading-related activities	0.48			0.49			0.51			0.58			0.56
Net interest yield on earning assets excluding trading-related activities ⁽¹⁾	2.77		%	2.93		%	2.84		%	2.93		%	2.92		%


⁽¹⁾	Represents a non-GAAP financial measure.

⁽²⁾

Beginning in the first quarter of 2014, interest-bearing deposits placed with the Federal Reserve and certain non-U.S. central banks are included in earning assets. In prior periods, these balances were included with cash and due from banks in the cash and cash equivalents line, consistent with the Consolidated Balance Sheet presentation. Prior periods have been reclassified to conform to current period presentation.


⁽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.	10



Bank of America Corporation and Subsidiaries
Quarterly Average Balances and Interest Rates – Fully Taxable-equivalent Basis
(Dollars in millions)
	First Quarter 2014						Fourth Quarter 2013						First Quarter 2013
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Earning assets
Interest-bearing deposits with the Federal Reserve and non-U.S. central banks ⁽¹⁾	$	112,570	$	72	0.26	%	$	90,196	$	59	0.26	%	$	57,108	$	33	0.23	%
Time deposits placed and other short-term investments	13,880		49		1.43		15,782		48		1.21		16,129		46		1.17
Federal funds sold and securities borrowed or purchased under agreements to resell	212,504		265		0.51		203,415		304		0.59		237,463		315		0.54
Trading account assets	147,583		1,213		3.32		156,194		1,182		3.01		194,364		1,380		2.87
Debt securities ⁽²⁾	329,711		2,005		2.41		325,119		2,455		3.02		356,399		2,556		2.87
Loans and leases ⁽³⁾:
Residential mortgage	247,556		2,240		3.62		253,974		2,374		3.74		258,630		2,340		3.62
Home equity	92,759		851		3.71		95,388		953		3.97		105,939		997		3.80
U.S. credit card	89,545		2,092		9.48		90,057		2,125		9.36		91,712		2,249		9.95
Non-U.S. credit card	11,554		308		10.79		11,171		310		11.01		11,027		329		12.10
Direct/Indirect consumer	81,728		530		2.63		82,990		565		2.70		82,364		620		3.06
Other consumer	1,962		18		3.66		1,929		17		3.73		1,666		19		4.36
Total consumer	525,104		6,039		4.64		535,509		6,344		4.72		551,338		6,554		4.79
U.S. commercial	228,058		1,651		2.93		225,596		1,700		2.99		210,706		1,666		3.20
Commercial real estate	48,753		368		3.06		46,341		374		3.20		39,179		326		3.38
Commercial lease financing	24,727		234		3.78		24,468		206		3.37		23,534		236		4.01
Non-U.S. commercial	92,840		543		2.37		97,863		544		2.20		81,502		467		2.32
Total commercial	394,378		2,796		2.87		394,268		2,824		2.84		354,921		2,695		3.07
Total loans and leases	919,482		8,835		3.88		929,777		9,168		3.92		906,259		9,249		4.12
Other earning assets	67,568		697		4.18		78,214		709		3.61		90,172		733		3.29
Total earning assets⁽⁴⁾	1,803,298		13,136		2.93		1,798,697		13,925		3.08		1,857,894		14,312		3.11
Cash and due from banks ⁽¹⁾	28,258						35,063						35,738
Other assets, less allowance for loan and lease losses	307,710						301,115						318,798
Total assets	$	2,139,266					$	2,134,875					$	2,212,430


⁽¹⁾	Beginning in the first quarter of 2014, interest-bearing deposits placed with the Federal Reserve and certain non-U.S. central banks are included in earning assets. In prior periods, these balances were included in the cash and cash equivalents line, consistent with the Consolidated Balance Sheet presentation. Prior periods have been reclassified to conform to current period presentation.


⁽²⁾	Beginning in the first quarter of 2014, yields on debt securities carried at fair value are calculated on the cost basis. Prior to the first quarter of 2014, yields on debt securities carried at fair value were calculated based on fair value rather than the cost basis. The use of fair value did 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 generally 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:



	First Quarter 2014				Fourth Quarter 2013				First Quarter 2013
Federal funds sold and securities borrowed or purchased under agreements to resell		$	13			$	15			$	11
Debt securities		(2		)		(1		)		(122		)
U.S. commercial		(16		)		(14		)		(29		)
Non-U.S. commercial		—				—				(1		)
Net hedge expenses on assets		$	(5	)		$	—			$	(141	)

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
Quarterly Average Balances and Interest Rates – Fully Taxable-equivalent Basis (continued)
(Dollars in millions)
	First Quarter 2014						Fourth Quarter 2013						First Quarter 2013
	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	$	45,196	$	1	0.01	%	$	43,665	$	5	0.05	%	$	42,934	$	6	0.05	%
NOW and money market deposit accounts	523,237		83		0.06		514,220		89		0.07		501,177		117		0.09
Consumer CDs and IRAs	71,141		84		0.48		74,635		96		0.51		85,109		135		0.64
Negotiable CDs, public funds and other deposits	29,826		27		0.37		29,060		29		0.39		24,147		29		0.50
Total U.S. interest-bearing deposits	669,400		195		0.12		661,580		219		0.13		653,367		287		0.18
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries	11,058		20		0.74		13,902		22		0.62		12,163		21		0.71
Governments and official institutions	1,857		1		0.14		1,750		1		0.18		1,546		1		0.17
Time, savings and other	60,519		75		0.50		58,513		72		0.49		53,944		73		0.55
Total non-U.S. interest-bearing deposits	73,434		96		0.53		74,165		95		0.51		67,653		95		0.57
Total interest-bearing deposits	742,834		291		0.16		735,745		314		0.17		721,020		382		0.22
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings	252,971		609		0.98		271,538		682		1.00		337,644		749		0.90
Trading account liabilities	90,448		435		1.95		82,393		364		1.75		92,047		472		2.08
Long-term debt	253,678		1,515		2.41		251,055		1,566		2.48		273,999		1,834		2.70
Total interest-bearing liabilities ⁽¹⁾	1,339,931		2,850		0.86		1,340,731		2,926		0.87		1,424,710		3,437		0.98
Noninterest-bearing sources:
Noninterest-bearing deposits	375,344						376,929						354,260
Other liabilities	187,438						183,800						196,465
Shareholders’ equity	236,553						233,415						236,995
Total liabilities and shareholders’ equity	$	2,139,266					$	2,134,875					$	2,212,430
Net interest spread					2.07	%					2.21	%					2.13	%
Impact of noninterest-bearing sources					0.22						0.23						0.23
Net interest income/yield on earning assets			$	10,286	2.29	%			$	10,999	2.44	%			$	10,875	2.36	%


⁽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:



	First Quarter 2014				Fourth Quarter 2013				First Quarter 2013
Consumer CDs and IRAs		$	20			$	20			$	13
Negotiable CDs, public funds and other deposits		3				3				3
Banks located in non-U.S. countries		3				4				3
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings		257				260				260
Long-term debt		(875		)		(875		)		(897		)
Net hedge income on liabilities		$	(592	)		$	(588	)		$	(618	)

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
Debt Securities and Available-for-Sale Marketable Equity Securities
(Dollars in millions)
	March 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale debt securities
U.S. Treasury and agency securities	$	29,580	$	108	$	(121	)	$	29,567
Mortgage-backed securities:
Agency	169,216		830		(4,299		)	165,747
Agency-collateralized mortgage obligations	18,464		217		(109		)	18,572
Non-agency residential	5,111		244		(97		)	5,258
Commercial	1,713		26		(5		)	1,734
Non-U.S. securities	7,109		31		(18		)	7,122
Corporate/Agency bonds	831		18		(4		)	845
Other taxable securities, substantially all asset-backed securities	14,695		42		(15		)	14,722
Total taxable securities	246,719		1,516		(4,668		)	243,567
Tax-exempt securities	6,443		4		(33		)	6,414
Total available-for-sale debt securities	253,162		1,520		(4,701		)	249,981
Other debt securities carried at fair value	36,453		82		(940		)	35,595
Total debt securities carried at fair value	289,615		1,602		(5,641		)	285,576
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities	55,120		50		(2,064		)	53,106
Total debt securities	$	344,735	$	1,652	$	(7,705	)	$	338,682
Available-for-sale marketable equity securities ⁽¹⁾	$	236	$	—	$	(20	)	$	216

	December 31, 2013
Available-for-sale debt securities
U.S. Treasury and agency securities	$	8,910	$	106	$	(62	)	$	8,954
Mortgage-backed securities:
Agency	170,112		777		(5,954		)	164,935
Agency-collateralized mortgage obligations	22,731		76		(315		)	22,492
Non-agency residential	6,124		238		(123		)	6,239
Commercial	2,429		63		(12		)	2,480
Non-U.S. securities	7,207		37		(24		)	7,220
Corporate/Agency bonds	860		20		(7		)	873
Other taxable securities, substantially all asset-backed securities	16,805		30		(5		)	16,830
Total taxable securities	235,178		1,347		(6,502		)	230,023
Tax-exempt securities	5,967		10		(49		)	5,928
Total available-for-sale debt securities	241,145		1,357		(6,551		)	235,951
Other debt securities carried at fair value	34,145		34		(1,335		)	32,844
Total debt securities carried at fair value	275,290		1,391		(7,886		)	268,795
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities	55,150		20		(2,740		)	52,430
Total debt securities	$	330,440	$	1,411	$	(10,626	)	$	321,225
Available-for-sale marketable equity securities ⁽¹⁾	$	230	$	—	$	(7	)	$	223


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



Other Debt Securities Carried at Fair Value
(Dollars in millions)	March 31 2014		December 31 2013
U.S. Treasury and agency securities	$	4,182	$	4,062
Mortgage-backed securities:
Agency	16,290		16,500
Agency-collateralized mortgage obligations	123		218
Commercial	770		749
Non-U.S. securities ⁽¹⁾	14,230		11,315
Total	$	35,595	$	32,844


⁽¹⁾	These securities are primarily 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.	13



Bank of America Corporation and Subsidiaries
Quarterly Results by Business Segment
(Dollars in millions)
	First Quarter 2014
	Total Corporation			Consumer & Business Banking		Consumer Real Estate Services			GWIM		Global Banking		Global Markets			All Other
Net interest income (FTE basis)	$	10,286		$	4,951	$	701		$	1,485	$	2,301	$	1,000		$	(152	)
Noninterest income	12,481			2,487		491			3,062		1,968		4,015			458
Total revenue, net of interest expense (FTE basis)	22,767			7,438		1,192			4,547		4,269		5,015			306
Provision for credit losses	1,009			812		25			23		265		19			(135		)
Noninterest expense	22,238			3,975		8,129			3,359		2,028		3,078			1,669
Income (loss) before income taxes	(480		)	2,651		(6,962		)	1,165		1,976		1,918			(1,228		)
Income tax expense (benefit) (FTE basis)	(204		)	993		(1,935		)	436		740		608			(1,046		)
Net income (loss)	$	(276	)	$	1,658	$	(5,027	)	$	729	$	1,236	$	1,310		$	(182	)

Average
Total loans and leases	$	919,482		$	162,042	$	88,914		$	115,945	$	271,475	$	63,696		$	217,410
Total assets ⁽¹⁾	2,139,266			595,549		110,564			273,080		392,991		601,541			165,541
Total deposits	1,118,178			534,576		n/m			242,792		256,349		n/m			34,152
Period end
Total loans and leases	$	916,217		$	160,116	$	88,355		$	116,482	$	273,239	$	64,598		$	213,427
Total assets ⁽¹⁾	2,149,851			613,244		112,264			274,234		396,952		594,936			158,221
Total deposits	1,133,650			552,256		n/m			244,051		257,437		n/m			32,403

	Fourth Quarter 2013
	Total Corporation			Consumer & Business Banking		Consumer Real Estate Services			GWIM		Global Banking		Global Markets			All Other
Net interest income (FTE basis)	$	10,999		$	4,948	$	716		$	1,485	$	2,301	$	1,143		$	406
Noninterest income	10,702			2,550		996			2,994		2,002		2,067			93
Total revenue, net of interest expense (FTE basis)	21,701			7,498		1,712			4,479		4,303		3,210			499
Provision for credit losses	336			427		(474		)	26		441		104			(188		)
Noninterest expense	17,307			4,051		3,788			3,263		1,926		3,280			999
Income (loss) before income taxes	4,058			3,020		(1,602		)	1,190		1,936		(174		)	(312		)
Income tax expense (benefit) (FTE basis)	619			1,058		(544		)	413		670		(131		)	(847		)
Net income (loss)	$	3,439		$	1,962	$	(1,058	)	$	777	$	1,266	$	(43	)	$	535

Average
Total loans and leases	$	929,777		$	163,152	$	89,687		$	115,546	$	268,849	$	66,494		$	226,049
Total assets ⁽¹⁾	2,134,875			590,195		113,584			268,683		379,855		603,111			179,447
Total deposits	1,112,674			528,808		n/m			240,395		259,122		n/m			34,029
Period end
Total loans and leases	$	928,233		$	165,090	$	89,753		$	115,846	$	269,469	$	67,381		$	220,694
Total assets ⁽¹⁾	2,102,273			593,163		113,386			274,112		378,590		575,710			167,312
Total deposits	1,119,271			531,707		n/m			244,901		265,102		n/m			27,701

	First Quarter 2013
	Total Corporation			Consumer & Business Banking		Consumer Real Estate Services			GWIM		Global Banking		Global Markets			All Other
Net interest income (FTE basis)	$	10,875		$	5,013	$	743		$	1,596	$	2,159	$	1,110		$	254
Noninterest income	12,533			2,399		1,569			2,825		1,871		3,670			199
Total revenue, net of interest expense (FTE basis)	23,408			7,412		2,312			4,421		4,030		4,780			453
Provision for credit losses	1,713			952		335			22		149		5			250
Noninterest expense	19,500			4,155		5,405			3,252		1,842		3,074			1,772
Income (loss) before income taxes	2,195			2,305		(3,428		)	1,147		2,039		1,701			(1,569		)
Income tax expense (benefit) (FTE basis)	712			857		(1,272		)	426		758		589			(646		)
Net income (loss)	$	1,483		$	1,448	$	(2,156	)	$	721	$	1,281	$	1,112		$	(923	)

Average
Total loans and leases	$	906,259		$	165,845	$	92,963		$	106,082	$	244,068	$	52,744		$	244,557
Total assets ⁽¹⁾	2,212,430			564,658		128,340			282,300		317,198		670,286			249,648
Total deposits	1,075,280			502,508		n/m			253,413		221,275		n/m			35,550
Period end
Total loans and leases	$	911,592		$	163,820	$	90,971		$	107,048	$	250,985	$	57,362		$	241,406
Total assets ⁽¹⁾	2,174,819			593,338		129,118			268,266		321,169		626,798			236,130
Total deposits	1,095,183			530,581		n/m			239,853		227,379		n/m			35,758


⁽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.	14



Bank of America Corporation and Subsidiaries
Consumer & Business Banking Segment Results
(Dollars in millions)
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013

Net interest income (FTE basis)	$	4,951		$	4,948		$	5,056		$	5,034		$	5,013
Noninterest income:
Card income	1,162			1,236			1,175			1,186			1,207
Service charges	1,045			1,097			1,063			1,035			1,013
All other income	280			217			230			179			179
Total noninterest income	2,487			2,550			2,468			2,400			2,399
Total revenue, net of interest expense (FTE basis)	7,438			7,498			7,524			7,434			7,412

Provision for credit losses	812			427			761			967			952

Noninterest expense	3,975			4,051			3,986			4,187			4,155
Income before income taxes	2,651			3,020			2,777			2,280			2,305
Income tax expense (FTE basis)	993			1,058			1,002			891			857
Net income	$	1,658		$	1,962		$	1,775		$	1,389		$	1,448

Net interest yield (FTE basis)	3.63		%	3.58		%	3.70		%	3.72		%	3.89		%
Return on average allocated capital ⁽¹⁾	22.81			25.96			23.49			18.60			19.61
Efficiency ratio (FTE basis)	53.46			54.03			52.99			56.32			56.07

Balance Sheet
Average
Total loans and leases	$	162,042		$	163,152		$	165,707		$	163,593		$	165,845
Total earning assets⁽²⁾	553,490			548,295			542,671			542,844			523,313
Total assets ⁽²⁾	595,549			590,195			583,980			584,289			564,658
Total deposits	534,576			528,808			522,023			522,259			502,508
Allocated capital ⁽¹⁾	29,500			30,000			30,000			30,000			30,000

Period end
Total loans and leases	$	160,116		$	165,090		$	167,254		$	164,851		$	163,820
Total earning assets⁽²⁾	571,081			550,795			547,350			545,847			551,159
Total assets ⁽²⁾	613,244			593,163			588,790			587,738			593,338
Total deposits	552,256			531,707			526,876			525,099			530,581

⁽¹⁾

Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return 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 42-45.)


⁽²⁾	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.	15



Bank of America Corporation and Subsidiaries
Consumer & Business Banking Quarterly Results
(Dollars in millions)
	First Quarter 2014
	Total Consumer & Business Banking			Deposits			Consumer Lending
Net interest income (FTE basis)	$	4,951		$	2,544		$	2,407
Noninterest income:
Card income	1,162			16			1,146
Service charges	1,045			1,045			—
All other income	280			115			165
Total noninterest income	2,487			1,176			1,311
Total revenue, net of interest expense (FTE basis)	7,438			3,720			3,718

Provision for credit losses	812			80			732

Noninterest expense	3,975			2,648			1,327
Income before income taxes	2,651			992			1,659
Income tax expense (FTE basis)	993			372			621
Net income	$	1,658		$	620		$	1,038

Net interest yield (FTE basis)	3.63		%	1.91		%	6.95		%
Return on average allocated capital ⁽¹⁾	22.81			15.24			32.41
Efficiency ratio (FTE basis)	53.46			71.22			35.69

Balance Sheet
Average
Total loans and leases	$	162,042		$	22,518		$	139,524
Total earning assets ⁽²⁾	553,490			539,404			140,407
Total assets ⁽²⁾	595,549			572,148			149,722
Total deposits	534,576			533,831			n/m
Allocated capital ⁽¹⁾	29,500			16,500			13,000

Period end
Total loans and leases	$	160,116		$	22,504		$	137,612
Total earning assets ⁽²⁾	571,081			556,997			138,774
Total assets ⁽²⁾	613,244			589,705			148,229
Total deposits	552,256			551,427			n/m

	Fourth Quarter 2013
	Total Consumer & Business Banking			Deposits			Consumer Lending
Net interest income (FTE basis)	$	4,948		$	2,492		$	2,456
Noninterest income:
Card income	1,236			15			1,221
Service charges	1,097			1,097			—
All other income	217			165			52
Total noninterest income	2,550			1,277			1,273
Total revenue, net of interest expense (FTE basis)	7,498			3,769			3,729

Provision for credit losses	427			105			322

Noninterest expense	4,051			2,631			1,420
Income before income taxes	3,020			1,033			1,987
Income tax expense (FTE basis)	1,058			363			695
Net income	$	1,962		$	670		$	1,292

Net interest yield (FTE basis)	3.58		%	1.86		%	6.87		%
Return on average allocated capital ⁽¹⁾	25.96			17.26			35.14
Efficiency ratio (FTE basis)	54.03			69.79			38.11

Balance Sheet
Average
Total loans and leases	$	163,152		$	22,333		$	140,819
Total earning assets ⁽²⁾	548,295			532,432			141,869
Total assets ⁽²⁾	590,195			565,340			150,861
Total deposits	528,808			528,203			n/m
Allocated capital ⁽¹⁾	30,000			15,400			14,600

Period end
Total loans and leases	$	165,090		$	22,574		$	142,516
Total earning assets ⁽²⁾	550,795			535,131			143,917
Total assets ⁽²⁾	593,163			568,022			153,394
Total deposits	531,707			530,947			n/m

For footnotes see page 17.

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 Quarterly Results (continued)
(Dollars in millions)
	First Quarter 2013
	Total Consumer & Business Banking			Deposits			Consumer Lending
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	4,155			2,822			1,333
Income before income taxes	2,305			632			1,673
Income tax expense (FTE basis)	857			235			622
Net income	$	1,448		$	397		$	1,051

Net interest yield (FTE basis)	3.89		%	1.91		%	7.41		%
Return on average allocated capital ⁽¹⁾	19.61			10.46			29.25
Efficiency ratio (FTE basis)	56.07			80.26			34.23

Balance Sheet
Average
Total loans and leases	$	165,845		$	22,616		$	143,229
Total earning assets ⁽²⁾	523,313			506,715			143,671
Total assets ⁽²⁾	564,658			539,507			152,224
Total deposits	502,508			502,063			n/m
Allocated capital ⁽¹⁾	30,000			15,400			14,600

Period end
Total loans and leases	$	163,820		$	22,488		$	141,332
Total earning assets ⁽²⁾	551,159			534,268			141,778
Total assets ⁽²⁾	593,338			567,517			150,708
Total deposits	530,581			529,501			n/m

⁽¹⁾


⁽²⁾	For presentation purposes, in segments or businesses where the total of liabilities and equity exceeds assets, the Corporation allocates 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.	17



Bank of America Corporation and Subsidiaries
Consumer & Business Banking Key Indicators
(Dollars in millions)
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
Average deposit balances
Checking	$	253,026		$	247,286		$	240,484		$	238,489		$	228,299
Savings	43,619			42,139			42,365			43,183			40,959
MMS	169,424			166,828			163,955			161,976			154,710
CDs and IRAs	65,270			68,192			70,888			74,064			74,217
Non-U.S. and other	3,237			4,363			4,331			4,547			4,323
Total average deposit balances	$	534,576		$	528,808		$	522,023		$	522,259		$	502,508

Deposit spreads (excludes noninterest costs)
Checking	2.02		%	2.01		%	2.01		%	2.02		%	2.06		%
Savings	2.29			2.23			2.21			2.20			2.20
MMS	1.13			1.11			1.08			1.05			1.04
CDs and IRAs	0.50			0.50			0.51			0.51			0.55
Non-U.S. and other	0.62			0.85			0.93			1.00			1.02
Total deposit spreads	1.56			1.54			1.52			1.51			1.52

Client brokerage assets	$	100,206		$	96,048		$	89,517		$	84,182		$	82,616

Online banking active accounts (units in thousands)	30,470			29,950			30,197			29,867			30,102
Mobile banking active accounts (units in thousands)	14,986			14,395			13,967			13,214			12,641
Banking centers	5,095			5,151			5,243			5,328			5,389
ATMs	16,214			16,259			16,201			16,354			16,311

Total U.S. credit card ⁽¹⁾
Loans
Average credit card outstandings	$	89,545		$	90,057		$	90,005		$	89,722		$	91,712
Ending credit card outstandings	87,692			92,338			90,280			90,523			90,047
Credit quality
Net charge-offs	$	718		$	724		$	788		$	917		$	947
	3.25		%	3.19		%	3.47		%	4.10		%	4.19		%
30+ delinquency	$	1,878		$	2,074		$	2,112		$	2,200		$	2,510
	2.14		%	2.25		%	2.34		%	2.43		%	2.79		%
90+ delinquency	$	966		$	1,053		$	1,049		$	1,167		$	1,360
	1.10		%	1.14		%	1.16		%	1.29		%	1.51		%
Other Total U.S. credit card indicators ⁽¹⁾
Gross interest yield	9.48		%	9.36		%	9.82		%	9.80		%	9.95		%
Risk-adjusted margin	9.49			9.11			8.68			8.41			8.51
New accounts (in thousands)	1,027			1,000			1,048			957			906
Purchase volumes	$	48,863		$	54,514		$	52,823		$	51,945		$	46,632

Debit card data
Purchase volumes	$	65,890		$	68,000		$	66,712		$	67,740		$	64,635


⁽¹⁾	In addition to the U.S. credit card portfolio in Consumer & Business Banking, the remaining U.S. credit card portfolio is in GWIM.

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.	18



Bank of America Corporation and Subsidiaries
Consumer Real Estate Services Segment Results
(Dollars in millions; except as noted)
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
Net interest income (FTE basis)	$	701		$	716		$	733		$	699		$	743
Noninterest income:
Mortgage banking income	469			913			775			1,411			1,487
All other income	22			83			69			5			82
Total noninterest income	491			996			844			1,416			1,569
Total revenue, net of interest expense (FTE basis)	1,192			1,712			1,577			2,115			2,312

Provision for credit losses	25			(474		)	(308		)	291			335

Noninterest expense	8,129			3,788			3,414			3,383			5,405
Loss before income taxes	(6,962		)	(1,602		)	(1,529		)	(1,559		)	(3,428		)
Income tax expense (benefit) (FTE basis)	(1,935		)	(544		)	(532		)	(629		)	(1,272		)
Net loss	$	(5,027	)	$	(1,058	)	$	(997	)	$	(930	)	$	(2,156	)

Net interest yield (FTE basis)	3.05		%	2.89		%	2.91		%	2.75		%	2.85		%

Balance Sheet
Average
Total loans and leases	$	88,914		$	89,687		$	88,406		$	90,114		$	92,963
Total earning assets	93,290			98,220			99,759			102,086			105,715
Total assets	110,564			113,584			118,226			122,276			128,340
Allocated capital⁽¹⁾	23,000			24,000			24,000			24,000			24,000

Period end
Total loans and leases	$	88,355		$	89,753		$	87,586		$	89,257		$	90,971
Total earning assets	92,937			97,163			98,247			102,211			105,544
Total assets	112,264			113,386			115,424			124,032			129,118

Period end (in billions)
Mortgage serviced portfolio ^{(2, 3)}	$	780.0		$	810.0		$	889.4		$	986.4		$	1,185.0


⁽¹⁾	Allocated capital is a non-GAAP financial measure. The Corporation believes the use of this non-GAAP financial measure 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 42-45.)


⁽²⁾	Includes servicing of residential mortgage loans, home equity lines of credit and home equity loans.


⁽³⁾	Excludes loans for which servicing transferred to third parties as of March 31, 2014 with an effective mortgage servicing right sales date of April 1, 2014.

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 Real Estate Services Quarterly Results ⁽¹⁾
(Dollars in millions)
	First Quarter 2014
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	701		$	324		$	377
Noninterest income:
Mortgage banking income	469			178			291
All other income	22			4			18
Total noninterest income	491			182			309
Total revenue, net of interest expense (FTE basis)	1,192			506			686

Provision for credit losses	25			13			12

Noninterest expense	8,129			715			7,414
Loss before income taxes	(6,962		)	(222		)	(6,740		)
Income tax benefit (FTE basis)	(1,935		)	(83		)	(1,852		)
Net loss	$	(5,027	)	$	(139	)	$	(4,888	)

Balance Sheet
Average
Total loans and leases	$	88,914		$	50,810		$	38,104
Total earning assets	93,290			53,264			40,026
Total assets	110,564			53,164			57,400
Allocated capital ⁽²⁾	23,000			6,000			17,000

Period end
Total loans and leases	$	88,355		$	50,954		$	37,401
Total earning assets	92,937			53,796			39,141
Total assets	112,264			53,658			58,606

	Fourth Quarter 2013
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	716		$	330		$	386
Noninterest income:
Mortgage banking income	913			220			693
All other income	83			17			66
Total noninterest income	996			237			759
Total revenue, net of interest expense (FTE basis)	1,712			567			1,145

Provision for credit losses	(474		)	(18		)	(456		)

Noninterest expense	3,788			755			3,033
Loss before income taxes	(1,602		)	(170		)	(1,432		)
Income tax benefit (FTE basis)	(544		)	(62		)	(482		)
Net loss	$	(1,058	)	$	(108	)	$	(950	)

Balance Sheet
Average
Total loans and leases	$	89,687		$	49,706		$	39,981
Total earning assets	98,220			53,052			45,168
Total assets	113,584			52,932			60,652
Allocated capital ⁽²⁾	24,000			6,000			18,000

Period end
Total loans and leases	$	89,753		$	51,021		$	38,732
Total earning assets	97,163			54,071			43,092
Total assets	113,386			53,927			59,459

For footnotes see page 21.

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 Real Estate Services Quarterly Results ⁽¹⁾ (continued)
(Dollars in millions)
	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	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	5,405			821			4,584
Income (loss) before income taxes	(3,428		)	67			(3,495		)
Income tax expense (benefit) (FTE basis)	(1,272		)	25			(1,297		)
Net income (loss)	$	(2,156	)	$	42		$	(2,198	)

Balance Sheet
Average
Total loans and leases	$	92,963		$	47,228		$	45,735
Total earning assets	105,715			53,746			51,969
Total assets	128,340			54,507			73,833
Allocated capital ⁽²⁾	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	129,118			55,582			73,536


⁽¹⁾	Consumer Real Estate Services includes Home Loans and Legacy Assets & Servicing. The results of certain mortgage servicing rights activities, including net hedge results, together with any related assets or liabilities used as economic hedges, are included in Legacy Assets & Servicing.


⁽²⁾	Allocated capital is a non-GAAP financial measure. The Corporation believes the use of this non-GAAP financial measure 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 42-45.)

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.	21



Bank of America Corporation and Subsidiaries
Consumer Real Estate Services Key Indicators
(Dollars in millions, except as noted)
	First Quarter 2014				Fourth Quarter 2013				Third Quarter 2013				Second Quarter 2013				First Quarter 2013
	First Quarter 2014				Fourth Quarter 2013				Third Quarter 2013				Second Quarter 2013				First Quarter 2013
Mortgage servicing rights at fair value rollforward:
Balance, beginning of period	$	5,042			$	5,058			$	5,827			$	5,776			$	5,716
Net additions (sales)	30				(197		)		(600		)		(715		)		(60		)
Amortization of expected cash flows ⁽¹⁾	(210		)		(229		)		(240		)		(260		)		(314		)
Other changes in mortgage servicing rights fair value ⁽²⁾	(285		)		410				71				1,026				434
Balance, end of period	$	4,577			$	5,042			$	5,058			$	5,827			$	5,776

Capitalized mortgage servicing rights (% of loans serviced for investors)	87			bps	92			bps	82			bps	77			bps	61			bps
Mortgage loans serviced for investors (in billions)	$	527			$	550			$	616			$	759			$	949

Loan production:
Total ⁽³⁾
First mortgage	$	8,850			$	11,624			$	22,601			$	25,276			$	23,920
Home equity	1,983				1,915				1,831				1,497				1,118
Consumer Real Estate Services
First mortgage	$	6,702			$	9,303			$	17,833			$	20,509			$	19,269
Home equity	1,791				1,674				1,599				1,283				942

Mortgage banking income
Production income:
Core production revenue	$	273			$	404			$	465			$	860			$	815
Representations and warranties provision	(178		)		(70		)		(323		)		(197		)		(250		)
Total production income	95				334				142				663				565
Servicing income:
Servicing fees	514				629				700				785				916
Amortization of expected cash flows ⁽¹⁾	(210		)		(229		)		(240		)		(260		)		(314		)
Fair value changes of mortgage servicing rights, net of risk management activities used to hedge certain market risks ⁽⁴⁾	66				174				167				215				311
Other servicing-related revenue	4				5				6				8				9
Total net servicing income	374				579				633				748				922
Total Consumer Real Estate Services mortgage banking income	469				913				775				1,411				1,487
Other business segments’ mortgage banking loss ⁽⁵⁾	(57		)		(65		)		(190		)		(233		)		(224		)
Total consolidated mortgage banking income	$	412			$	848			$	585			$	1,178			$	1,263


⁽¹⁾	Represents the net change in fair value of the MSR asset due to the recognition of modeled cash flows.

⁽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.	22



Bank of America Corporation and Subsidiaries
Global Wealth & Investment Management Segment Results
(Dollars in millions)
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013

Net interest income (FTE basis)	$	1,485		$	1,485		$	1,478		$	1,505		$	1,596
Noninterest income:
Investment and brokerage services	2,604			2,524			2,413			2,441			2,331
All other income	458			470			499			553			494
Total noninterest income	3,062			2,994			2,912			2,994			2,825
Total revenue, net of interest expense (FTE basis)	4,547			4,479			4,390			4,499			4,421

Provision for credit losses	23			26			23			(15		)	22

Noninterest expense	3,359			3,263			3,248			3,270			3,252
Income before income taxes	1,165			1,190			1,119			1,244			1,147
Income tax expense (FTE basis)	436			413			399			485			426
Net income	$	729		$	777		$	720		$	759		$	721

Net interest yield (FTE basis)	2.38		%	2.37		%	2.35		%	2.47		%	2.46		%
Return on average allocated capital ⁽¹⁾	24.74			30.99			28.71			30.59			29.41
Efficiency ratio (FTE basis)	73.88			72.85			73.98			72.70			73.56

Balance Sheet
Average
Total loans and leases	$	115,945		$	115,546		$	112,752		$	109,589		$	106,082
Total earning assets ⁽²⁾	253,537			248,156			249,203			244,860			263,554
Total assets ⁽²⁾	273,080			268,683			268,611			263,735			282,300
Total deposits	242,792			240,395			239,663			235,344			253,413
Allocated capital ⁽¹⁾	12,000			10,000			10,000			10,000			10,000

Period end
Total loans and leases	$	116,482		$	115,846		$	114,175		$	111,785		$	107,048
Total earning assets ⁽²⁾	254,801			254,031			250,677			244,340			248,941
Total assets ⁽²⁾	274,234			274,112			270,484			263,867			268,266
Total deposits	244,051			244,901			241,553			235,012			239,853

⁽¹⁾


⁽²⁾	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.	23



Bank of America Corporation and Subsidiaries
Global Wealth & Investment Management Key Indicators
(Dollars in millions, except as noted)
	First Quarter 2014			Fourth Quarter 2013		Third Quarter 2013		Second Quarter 2013			First Quarter 2013
	First Quarter 2014			Fourth Quarter 2013		Third Quarter 2013		Second Quarter 2013			First Quarter 2013
Revenues
Merrill Lynch Global Wealth Management	$	3,764		$	3,703	$	3,646	$	3,742		$	3,680
U.S. Trust	768			762		730		740			721
Other ⁽¹⁾	15			14		14		17			20
Total revenues	$	4,547		$	4,479	$	4,390	$	4,499		$	4,421

Client Balances
Client Balances by Business
Merrill Lynch Global Wealth Management	$	1,946,922		$	1,916,803	$	1,853,980	$	1,800,151		$	1,812,412
U.S. Trust	378,177			376,487		362,791		351,119			354,721
Other ⁽¹⁾	70,720			73,148		66,665		63,781			64,603

Client Balances by Type
Assets under management	$	841,818		$	821,449	$	779,614	$	743,613		$	745,260
Brokerage assets	1,054,052			1,045,122		1,013,688		992,664			1,009,507
Assets in custody	136,342			136,190		131,386		128,854			127,013
Deposits	244,051			244,901		241,553		235,012			239,853
Loans and leases ⁽²⁾	119,556			118,776		117,195		114,908			110,103
Total client balances	$	2,395,819		$	2,366,438	$	2,283,436	$	2,215,051		$	2,231,736

Assets Under Management Flows
Liquidity assets under management ⁽³⁾	$	(2,429	)	$	6,492	$	2,932	$	(695	)	$	(2,227	)
Long-term assets under management ⁽⁴⁾	17,382			9,425		10,341		7,692			20,361
Total assets under management flows	$	14,953		$	15,917	$	13,273	$	6,997		$	18,134

Associates ⁽⁵⁾
Number of Financial Advisors	15,323			15,317		15,624		15,759			16,065
Total Wealth Advisors	16,481			16,517		16,846		16,989			17,293
Total Client Facing Professionals	19,198			19,217		19,524		19,679			20,018

Merrill Lynch Global Wealth Management Metrics
Financial Advisor Productivity ⁽⁶⁾ (in thousands)	$	1,056		$	1,039	$	1,000	$	1,012		$	971

U.S. Trust Metrics
Client Facing Professionals	2,116			2,091		2,080		2,074			2,090


⁽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 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 primarily 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 1,598, 1,545, 1,585, 1,587 and 1,591 at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, 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.	24



Bank of America Corporation and Subsidiaries
Global Banking Segment Results
(Dollars in millions)
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013

Net interest income (FTE basis)	$	2,301		$	2,301		$	2,201		$	2,252		$	2,159
Noninterest income:
Service charges	687			684			716			701			686
Investment banking income	822			958			693			792			790
All other income	459			360			398			393			395
Total noninterest income	1,968			2,002			1,807			1,886			1,871
Total revenue, net of interest expense (FTE basis)	4,269			4,303			4,008			4,138			4,030

Provision for credit losses	265			441			322			163			149

Noninterest expense	2,028			1,926			1,927			1,856			1,842
Income before income taxes	1,976			1,936			1,759			2,119			2,039
Income tax expense (FTE basis)	740			670			625			827			758
Net income	$	1,236		$	1,266		$	1,134		$	1,292		$	1,281

Net interest yield (FTE basis)	2.68		%	2.71		%	2.87		%	3.17		%	3.18		%
Return on average allocated capital ⁽¹⁾	16.18			21.84			19.57			22.55			22.59
Efficiency ratio (FTE basis)	47.50			44.77			48.06			44.87			45.70

Balance Sheet
Average
Total loans and leases	$	271,475		$	268,849		$	260,085		$	255,674		$	244,068
Total earnings assets ⁽²⁾	347,843			336,301			304,686			284,955			275,186
Total assets ⁽²⁾	392,991			379,855			346,371			326,729			317,198
Total deposits	256,349			259,122			239,148			226,866			221,275
Allocated capital ⁽¹⁾	31,000			23,000			23,000			23,000			23,000

Period end
Total loans and leases	$	273,239		$	269,469		$	267,165		$	258,502		$	250,985
Total earnings assets ⁽²⁾	354,150			336,538			329,968			292,250			279,235
Total assets ⁽²⁾	396,952			378,590			372,451			334,116			321,169
Total deposits	257,437			265,102			262,463			228,882			227,379

⁽¹⁾


⁽²⁾	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.	25



Bank of America Corporation and Subsidiaries
Global Banking Key Indicators
(Dollars in millions)
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
Investment Banking fees ⁽¹⁾
Advisory ⁽²⁾	$	257		$	323		$	226		$	240		$	233
Debt issuance	447			443			343			405			429
Equity issuance	118			192			124			147			128
Total Investment Banking fees⁽³⁾	$	822		$	958		$	693		$	792		$	790

Business Lending
Corporate	$	904		$	817		$	884		$	855		$	851
Commercial	1,009			1,011			960			1,050			946
Total Business Lending revenue	$	1,913		$	1,828		$	1,844		$	1,905		$	1,797

Global Treasury Services
Corporate	$	740		$	734		$	713		$	702		$	666
Commercial	735			747			741			733			718
Total Global Treasury Services revenue	$	1,475		$	1,481		$	1,454		$	1,435		$	1,384

Average deposit balances
Interest-bearing	$	77,566		$	78,223		$	73,011		$	69,362		$	67,797
Noninterest-bearing	178,783			180,899			166,137			157,504			153,478
Total average deposits	$	256,349		$	259,122		$	239,148		$	226,866		$	221,275

Loan spread	1.80		%	1.75		%	1.78		%	1.89		%	1.86		%

Provision for credit losses	$	265		$	441		$	322		$	163		$	149

Credit quality ^{(4, 5)}
Reservable utilized criticized exposure	$	9,512		$	9,357		$	10,111		$	10,632		$	10,342
	3.19		%	3.17		%	3.44		%	3.73		%	3.71		%

Nonperforming loans, leases and foreclosed properties	$	650		$	639		$	919		$	1,087		$	1,643
	0.24		%	0.24		%	0.35		%	0.43		%	0.66		%

Average loans and leases by product
U.S. commercial	$	135,247		$	132,249		$	128,600		$	127,742		$	124,891
Commercial real estate	44,436			42,622			39,172			36,684			34,825
Commercial lease financing	25,427			25,115			24,846			24,584			24,486
Non-U.S. commercial	66,362			68,860			67,459			66,656			59,859
Other	3			3			8			8			7
Total average loans and leases	$	271,475		$	268,849		$	260,085		$	255,674		$	244,068

Total Corporation Investment Banking fees
Advisory ⁽²⁾	$	286		$	356		$	256		$	262		$	257
Debt issuance	1,025			986			810			987			1,022
Equity issuance	313			461			329			356			323
Total investment banking fees including self-led	1,624			1,803			1,395			1,605			1,602
Self-led	(82		)	(65		)	(98		)	(49		)	(67		)
Total Investment Banking fees	$	1,542		$	1,738		$	1,297		$	1,556		$	1,535


⁽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 in 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.	26



Bank of America Corporation and Subsidiaries
Investment Banking Product Rankings

	Three Months Ended March 31, 2014
	Global			U.S.
	Product Ranking	Market Share		Product Ranking	Market Share
Net investment banking revenue	3	6.8	%	2	10.0	%
Announced mergers and acquisitions	4	20.8		4	32.3
Equity capital markets	4	7.3		5	10.3
Debt capital markets	3	6.2		2	10.9
High-yield corporate debt	7	6.8		5	8.4
Leveraged loans	2	9.2		2	10.2
Mortgage-backed securities	6	8.0		6	8.9
Asset-backed securities	1	16.9		1	20.1
Convertible debt	4	7.5		4	10.2
Common stock underwriting	3	7.3		3	10.3
Investment-grade corporate debt	1	7.2		2	13.6
Syndicated loans	2	7.9		2	10.7

Source: Dealogic data as of April 1, 2014. 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 only to the investment bank advising the parent company that is domiciled within that region.


•	Each advisor receives full credit for the deal amount unless advising a minor stakeholder.

Highlights



Global top 3 rankings in:
Leveraged loans		Investment-grade corporate debt
Asset-backed securities		Syndicated loans
Common stock underwriting		Debt capital markets

U.S. top 3 rankings in:
Leveraged loans		Investment-grade corporate debt
Asset-backed securities		Syndicated loans
Common stock underwriting		Debt capital markets

Top 3 rankings excluding self-led deals:


Global:	Leveraged loans, Asset-backed securities, Common stock underwriting, Investment-grade corporate debt, Syndicated loans, Equity capital markets


U.S.:	Leveraged loans, Asset-backed securities, Common stock underwriting, Investment-grade corporate debt, Syndicated loans



This information is preliminary and based on company data available at the time of the presentation.	27



Bank of America Corporation and Subsidiaries
Global Markets Segment Results ⁽¹⁾
(Dollars in millions)
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013

Net interest income (FTE basis)	$	1,000		$	1,143		$	975		$	1,013		$	1,110
Noninterest income:
Investment and brokerage services	561			489			480			549			528
Investment banking fees	736			755			622			668			679
Trading account profits	2,367			795			1,201			1,848			2,890
All other income (loss)	351			28			(53		)	121			(427		)
Total noninterest income	4,015			2,067			2,250			3,186			3,670
Total revenue, net of interest expense (FTE basis) ⁽²⁾	5,015			3,210			3,225			4,199			4,780

Provision for credit losses	19			104			47			(16		)	5

Noninterest expense	3,078			3,280			2,882			2,770			3,074
Income (loss) before income taxes	1,918			(174		)	296			1,445			1,701
Income tax expense (benefit) (FTE basis)	608			(131		)	1,168			480			589
Net income (loss)	$	1,310		$	(43	)	$	(872	)	$	965		$	1,112

Return on average allocated capital ⁽³⁾	15.65		%	n/m			n/m			12.92		%	15.06		%
Efficiency ratio (FTE basis)	61.38			102.17		%	89.41		%	65.98			64.30

Balance Sheet
Average
Total trading-related assets ⁽⁴⁾	$	437,128		$	438,909		$	442,597		$	490,972		$	504,266
Total loans and leases	63,696			66,494			64,490			56,354			52,744
Total earning assets⁽⁴⁾	456,911			458,988			458,657			499,396			509,694
Total assets	601,541			603,111			602,633			656,260			670,286
Allocated capital ⁽³⁾	34,000			30,000			30,000			30,000			30,000

Period end
Total trading-related assets ⁽⁴⁾	$	430,894		$	411,080		$	438,137		$	446,505		$	467,826
Total loans and leases	64,598			67,381			68,662			63,128			57,362
Total earning assets⁽⁴⁾	455,135			432,821			464,613			465,166			480,039
Total assets	594,936			575,710			601,140			608,908			626,798

Trading-related assets (average)
Trading account securities	$	203,281		$	209,734		$	193,108		$	225,796		$	235,437
Reverse repurchases	109,271			114,417			128,426			150,568			157,847
Securities borrowed	80,981			67,862			73,820			62,813			57,425
Derivative assets	43,595			46,896			47,243			51,795			53,557
Total trading-related assets ⁽⁴⁾	$	437,128		$	438,909		$	442,597		$	490,972		$	504,266

⁽¹⁾

During the first quarter of 2014, the management of structured liabilities and the associated debit valuation adjustment were moved into Global Markets from All Other to better align the performance risk of these instruments. As such, net debit valuation adjustment represents the combined total of net debit valuation adjustment on derivatives and structured liabilities. Prior periods have been reclassified to conform to current period presentation.


⁽²⁾	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 29.

⁽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.	28



Bank of America Corporation and Subsidiaries
Global Markets Key Indicators
(Dollars in millions)
	First Quarter 2014		Fourth Quarter 2013		Third Quarter 2013			Second Quarter 2013		First Quarter 2013
	First Quarter 2014		Fourth Quarter 2013		Third Quarter 2013			Second Quarter 2013		First Quarter 2013
Sales and trading revenue ⁽¹⁾
Fixed income, currency and commodities	$	3,030	$	1,545	$	1,641		$	2,220	$	2,852
Equities	1,185		822		919			1,281		1,153
Total sales and trading revenue	$	4,215	$	2,367	$	2,560		$	3,501	$	4,005

Sales and trading revenue, excluding net debit valuation adjustment ⁽²⁾
Fixed income, currency and commodities	$	2,950	$	2,080	$	2,033		$	2,259	$	3,001
Equities	1,153		904		970			1,194		1,149
Total sales and trading revenue, excluding net debit valuation adjustment	$	4,103	$	2,984	$	3,003		$	3,453	$	4,150

Sales and trading revenue breakdown
Net interest income	$	912	$	1,059	$	898		$	930	$	1,020
Commissions	561		489		480			549		528
Trading	2,367		795		1,201			1,848		2,890
Other	375		24		(19		)	174		(433		)
Total sales and trading revenue	$	4,215	$	2,367	$	2,560		$	3,501	$	4,005


⁽¹⁾	Includes Global Banking sales and trading revenue of $85 million for the first quarter of 2014, and $65 million, $108 million, $142 million and $67 million for the fourth, third, second and first quarters of 2013, respectively.


⁽²⁾	For this presentation, sales and trading revenue excludes net debit valuation adjustment gains (losses) which include net debit valuation adjustment on derivatives and structured liabilities, and are presented in the table below. Sales and trading revenue excluding net debit valuation adjustment gains (losses) represents a non-GAAP financial measure.



	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
Net debit valuation adjustment gains (losses) on derivatives:
Fixed income, currency and commodities	$	(92	)	$	(193	)	$	(266	)	$	33		$	(65	)
Equities	7			(7		)	(25		)	5			10
Total	$	(85	)	$	(200	)	$	(291	)	$	38		$	(55	)

Net debit valuation adjustment gains (losses) on structured liabilities:
Fixed income, currency and commodities	$	172		$	(342	)	$	(126	)	$	(72	)	$	(84	)
Equities	25			(75		)	(26		)	82			(6		)
Total	$	197		$	(417	)	$	(152	)	$	10		$	(90	)

Total net debit valuation adjustment gains (losses):
Fixed income, currency and commodities	$	80		$	(535	)	$	(392	)	$	(39	)	$	(149	)
Equities	32			(82		)	(51		)	87			4
Total	$	112		$	(617	)	$	(443	)	$	48		$	(145	)

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.	29



Bank of America Corporation and Subsidiaries
All Other Results ⁽¹⁾
(Dollars in millions)
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
Net interest income (FTE basis)	$	(152	)	$	406		$	36		$	268		$	254
Noninterest income:
Card income	86			83			79			81			85
Equity investment income	674			393			1,122			576			520
Gains on sales of debt securities	357			363			347			452			67
All other loss	(659		)	(746		)	(565		)	(813		)	(473		)
Total noninterest income	458			93			983			296			199
Total revenue, net of interest expense (FTE basis)	306			499			1,019			564			453

Provision for credit losses	(135		)	(188		)	(549		)	(179		)	250

Noninterest expense	1,669			999			932			552			1,772
Income (loss) before income taxes	(1,228		)	(312		)	636			191			(1,569		)
Income tax expense (benefit) (FTE basis)	(1,046		)	(847		)	(101		)	(346		)	(646		)
Net income (loss)	$	(182	)	$	535		$	737		$	537		$	(923	)

Balance Sheet
Average
Total loans and leases	$	217,410		$	226,049		$	232,538		$	238,910		$	244,557
Total assets ⁽²⁾	165,541			179,447			203,609			231,321			249,648
Total deposits	34,152			34,029			35,126			33,774			35,550

Period end
Total loans and leases	$	213,427		$	220,694		$	229,550		$	234,047		$	241,406
Total assets ⁽³⁾	158,221			167,312			178,364			204,659			236,130
Total deposits	32,403			27,701			30,704			34,597			35,758

⁽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, the impact of certain allocation methodologies and accounting hedge ineffectiveness. The results of certain ALM activities are allocated to our business segments. Equity investments include Global Principal Investments and certain other investments. Additionally, All Other includes certain residential mortgage loans that are managed by Legacy Assets & Servicing. During the first quarter of 2014, the management of structured liabilities and the associated debit valuation adjustment (previously referred to as fair value adjustments on structured liabilities) were moved into Global Markets from All Other to better align the performance risk of these instruments. Prior periods have been reclassified to conform to current period presentation.


⁽²⁾	Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $585.2 billion, $564.0 billion, $540.5 billion, $524.5 billion and $526.1 billion for the first quarter of 2014, and the fourth, third, second and first quarters of 2013, respectively.


⁽³⁾	Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $609.2 billion, $569.8 billion, $557.5 billion, $529.0 billion and $537.0 billion at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, 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.	30



Bank of America Corporation and Subsidiaries
Equity Investments
(Dollars in millions)
	Global Principal Investments Exposures
	March 31, 2014						December 31 2013		Equity Investment Income (Loss)
	Book Value		Unfunded Commitments		Total		Total		First Quarter 2014
Global Principal Investments:
Private Equity Investments	$	16	$	—	$	16	$	20	$	1
Global Real Estate	263		8		271		327		(7		)
Global Strategic Capital	614		60		674		855		(30		)
Legacy/Other Investments	409		—		409		529		8
Total Global Principal Investments	$	1,302	$	68	$	1,370	$	1,731	$	(28	)



Components of Equity Investment Income
(Dollars in millions)
	First Quarter 2014			Fourth Quarter 2013		Third Quarter 2013		Second Quarter 2013		First Quarter 2013
	First Quarter 2014			Fourth Quarter 2013		Third Quarter 2013		Second Quarter 2013		First Quarter 2013
Global Principal Investments	$	(28	)	$	101	$	122	$	52	$	104
Strategic and other investments	702			292		1,000		524		416
Total equity investment income included in All Other	674			393		1,122		576		520
Total equity investment income included in the business segments	110			81		62		104		43
Total consolidated equity investment income	$	784		$	474	$	1,184	$	680	$	563

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
Outstanding Loans and Leases
(Dollars in millions)
	March 31 2014		December 31 2013		March 31 2013
Consumer
Residential mortgage ⁽¹⁾	$	242,977	$	248,066	$	256,804
Home equity	91,476		93,672		103,338
U.S. credit card	87,692		92,338		90,047
Non-U.S. credit card	11,563		11,541		10,620
Direct/Indirect consumer ⁽²⁾	81,552		82,192		81,518
Other consumer ⁽³⁾	1,980		1,977		1,696
Total consumer loans excluding loans accounted for under the fair value option	517,240		529,786		544,023
Consumer loans accounted for under the fair value option ⁽⁴⁾	2,149		2,164		1,041
Total consumer	519,389		531,950		545,064

Commercial
U.S. commercial ⁽⁵⁾	228,795		225,851		213,762
Commercial real estate ⁽⁶⁾	48,840		47,893		39,060
Commercial lease financing	24,649		25,199		23,467
Non-U.S. commercial	85,630		89,462		82,460
Total commercial loans excluding loans accounted for under the fair value option	387,914		388,405		358,749
Commercial loans accounted for under the fair value option ⁽⁴⁾	8,914		7,878		7,779
Total commercial	396,828		396,283		366,528
Total loans and leases	$	916,217	$	928,233	$	911,592


⁽¹⁾	Includes pay option loans of $3.8 billion, $4.4 billion and $6.5 billion and non-U.S. residential mortgage loans of $0, $0 and $86 million at March 31, 2014, December 31, 2013 and March 31, 2013, respectively. The Corporation no longer originates pay option loans.

⁽²⁾

Includes dealer financial services loans of $38.0 billion, $38.5 billion and $36.1 billion, consumer lending loans of $2.3 billion, $2.7 billion and $4.1 billion, U.S. securities-based lending loans of $31.8 billion, $31.2 billion and $28.2 billion, non-U.S. consumer loans of $4.6 billion, $4.7 billion and $7.4 billion, student loans of $3.9 billion, $4.1 billion and $4.6 billion and other consumer loans of $899 million, $1.0 billion and $1.1 billion at March 31, 2014, December 31, 2013 and March 31, 2013, respectively.


⁽³⁾	Includes consumer finance loans of $1.1 billion, $1.2 billion and $1.4 billion, consumer leases of $701 million, $606 million and $222 million, consumer overdrafts of $137 million, $176 million and $115 million and other non-U.S. consumer loans of $5 million, $5 million and $5 million at March 31, 2014, December 31, 2013 and March 31, 2013, respectively.

⁽⁴⁾

Consumer loans accounted for under the fair value option were residential mortgage loans of $2.0 billion, $2.0 billion and $1.0 billion and home equity loans of $152 million, $147 million and $0 at March 31, 2014, December 31, 2013 and March 31, 2013, respectively. Commercial loans accounted for under the fair value option were U.S. commercial loans of $1.4 billion, $1.5 billion and $2.1 billion and non-U.S. commercial loans of $7.5 billion, $6.4 billion and $5.7 billion at March 31, 2014, December 31, 2013 and March 31, 2013, respectively.


⁽⁵⁾	Includes U.S. small business commercial loans, including card-related products, of $13.4 billion, $13.3 billion and $12.4 billion at March 31, 2014, December 31, 2013 and March 31, 2013, respectively.


⁽⁶⁾	Includes U.S. commercial real estate loans of $47.1 billion, $46.3 billion and $37.6 billion and non-U.S. commercial real estate loans of $1.7 billion, $1.6 billion and $1.4 billion at March 31, 2014, December 31, 2013 and March 31, 2013, 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.	32



Bank of America Corporation and Subsidiaries
Quarterly Average Loans and Leases by Business Segment
(Dollars in millions)
	First Quarter 2014
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services		GWIM		Global Banking		Global Markets		All Other
Consumer
Residential mortgage	$	247,556	$	727	$	4,602	$	48,236	$	—	$	—	$	193,991
Home equity	92,759		148		84,217		6,696		—		168		1,530
U.S. credit card	89,545		86,285		—		3,260		—		—		—
Non-U.S. credit card	11,554		—		—		—		—		—		11,554
Direct/Indirect consumer	81,728		40,758		47		35,800		1		45		5,077
Other consumer	1,962		791		—		5		2		—		1,164
Total consumer	525,104		128,709		88,866		93,997		3		213		213,316

Commercial
U.S. commercial	228,058		32,601		48		20,094		135,247		34,719		5,349
Commercial real estate	48,753		723		—		1,698		44,436		1,625		271
Commercial lease financing	24,727		—		—		4		25,427		836		(1,540		)
Non-U.S. commercial	92,840		9		—		152		66,362		26,303		14
Total commercial	394,378		33,333		48		21,948		271,472		63,483		4,094
Total loans and leases	$	919,482	$	162,042	$	88,914	$	115,945	$	271,475	$	63,696	$	217,410

	Fourth Quarter 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services		GWIM		Global Banking		Global Markets		All Other
Consumer
Residential mortgage	$	253,974	$	678	$	4,262	$	47,407	$	—	$	56	$	201,571
Home equity	95,388		145		85,274		8,364		—		144		1,461
U.S. credit card	90,057		86,746		—		3,311		—		—		—
Non-U.S. credit card	11,171		—		—		—		—		—		11,171
Direct/Indirect consumer	82,990		42,002		45		35,094		1		37		5,811
Other consumer	1,929		707		—		5		2		—		1,215
Total consumer	535,509		130,278		89,581		94,181		3		237		221,229

Commercial
U.S. commercial	225,596		32,134		106		19,623		132,249		35,430		6,054
Commercial real estate	46,341		732		—		1,587		42,622		1,075		325
Commercial lease financing	24,468		—		—		4		25,115		929		(1,580		)
Non-U.S. commercial	97,863		8		—		151		68,860		28,823		21
Total commercial	394,268		32,874		106		21,365		268,846		66,257		4,820
Total loans and leases	$	929,777	$	163,152	$	89,687	$	115,546	$	268,849	$	66,494	$	226,049

	First Quarter 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services		GWIM		Global Banking		Global Markets		All Other
Consumer
Residential mortgage	$	258,630	$	499	$	1,332	$	41,509	$	—	$	90	$	215,200
Home equity	105,939		144		91,509		12,674		—		84		1,528
U.S. credit card	91,712		91,712		—		—		—		—		—
Non-U.S. credit card	11,027		—		—		—		—		—		11,027
Direct/Indirect consumer	82,364		40,604		59		32,261		4		3		9,433
Other consumer	1,666		272		—		6		3		—		1,385
Total consumer	551,338		133,231		92,900		86,450		7		177		238,573

Commercial
U.S. commercial	210,706		30,585		63		18,122		124,891		30,013		7,032
Commercial real estate	39,179		2,021		—		1,369		34,825		446		518
Commercial lease financing	23,534		—		—		4		24,486		694		(1,650		)
Non-U.S. commercial	81,502		8		—		137		59,859		21,414		84
Total commercial	354,921		32,614		63		19,632		244,061		52,567		5,984
Total loans and leases	$	906,259	$	165,845	$	92,963	$	106,082	$	244,068	$	52,744	$	244,557

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
Commercial Credit Exposure by Industry ^{(1, 2, 3)}
(Dollars in millions)
	Commercial Utilized						Total Commercial Committed
	March 31 2014		December 31 2013		March 31 2013		March 31 2014			December 31 2013			March 31 2013
Diversified financials	$	69,137	$	76,673	$	68,098	$	111,172		$	118,092		$	102,132
Real estate ⁽⁴⁾	55,613		54,336		47,513		77,337			76,418			65,855
Retailing	33,836		32,859		29,337		53,902			54,616			49,757
Capital goods	28,012		28,016		24,995		52,356			52,849			48,444
Banking	42,296		41,399		42,442		49,821			48,078			49,082
Healthcare equipment and services	31,854		30,828		29,107		48,681			49,063			45,556
Government and public education	40,435		40,253		39,671		48,175			48,322			48,022
Materials	23,163		22,384		22,243		42,291			42,699			42,264
Energy	19,835		19,739		21,167		39,846			41,156			40,853
Consumer services	21,147		21,080		22,193		34,010			34,217			35,195
Commercial services and supplies	19,448		19,770		18,345		31,529			32,007			29,861
Food, beverage and tobacco	15,359		14,437		14,909		31,379			30,541			32,936
Utilities	9,404		9,253		8,900		25,346			25,243			23,104
Media	13,066		13,070		12,907		23,880			22,655			21,835
Transportation	15,351		15,280		15,606		22,425			22,595			21,968
Individuals and trusts	15,159		14,864		14,107		18,743			18,681			18,166
Software and services	6,667		6,814		5,571		13,933			14,172			11,740
Pharmaceuticals and biotechnology	6,052		6,455		4,439		13,111			13,986			11,191
Technology hardware and equipment	6,051		6,166		4,735		12,697			12,733			10,761
Insurance, including monolines	5,473		5,926		6,800		11,744			12,203			12,503
Telecommunication services	4,654		4,541		3,689		10,328			11,423			10,191
Consumer durables and apparel	5,797		5,427		5,198		10,002			9,757			9,362
Automobiles and components	3,303		3,165		3,349		8,601			8,424			7,702
Food and staples retailing	4,083		3,950		4,004		7,779			7,909			7,334
Religious and social organizations	5,404		5,452		6,235		7,384			7,677			8,435
Other	5,167		5,357		4,721		8,097			8,309			7,706
Total commercial credit exposure by industry	$	505,766	$	507,494	$	480,281	$	814,569		$	823,825		$	771,955
Net credit default protection purchased on total commitments ⁽⁵⁾							$	(8,341	)	$	(8,085	)	$	(12,444	)

⁽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 $42.8 billion, $47.3 billion and $57.7 billion at March 31, 2014, December 31, 2013 and March 31, 2013, respectively. Not reflected in utilized and committed exposure is additional derivative collateral held of $16.1 billion, $17.1 billion and $18.0 billion, which consists primarily of other marketable securities, at March 31, 2014, December 31, 2013 and March 31, 2013, respectively.

⁽²⁾

Total commercial utilized and total commercial committed exposure includes loans and letters of credit accounted for under the fair value option and are comprised of loans outstanding of $8.9 billion, $7.9 billion and $7.8 billion and issued letters of credit at notional value of $576 million, $503 million and $567 million at March 31, 2014, December 31, 2013 and March 31, 2013, respectively. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $11.3 billion, $12.5 billion and $15.1 billion at March 31, 2014, December 31, 2013 and March 31, 2013, 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.	34



Bank of America Corporation and Subsidiaries
Net Credit Default Protection by Maturity Profile ⁽¹⁾

	March 31 2014		December 31 2013
Less than or equal to one year	32	%	35	%
Greater than one year and less than or equal to five years	64		63
Greater than five years	4		2
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)
	March 31, 2014					December 31, 2013
Ratings ^{(2, 3)}	Net Notional ⁽⁴⁾			Percent of Total		Net Notional ⁽⁴⁾			Percent of Total
AA	$	(42	)	0.5	%	$	(7	)	0.1	%
A	(2,173		)	26.1		(2,560		)	31.7
BBB	(4,379		)	52.5		(3,880		)	48.0
BB	(1,082		)	13.0		(1,137		)	14.1
B	(571		)	6.8		(452		)	5.6
CCC and below	(130		)	1.6		(115		)	1.4
NR ⁽⁵⁾	36			(0.5	)	66			(0.9	)
Total net credit default protection	$	(8,341	)	100.0	%	$	(8,085	)	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 index positions held and any 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.	35



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 March 31 2014		Hedges and Credit Default Protection ⁽⁴⁾			Net Country Exposure at March 31 2014 ⁽⁵⁾		Increase (Decrease) from December 31 2013
United Kingdom	$	25,526	$	12,766	$	5,994	$	6,929	$	51,215	$	(3,913	)	$	47,302	$	3,716
Canada	6,555		6,569		2,188		5,427		20,739		(1,451		)	19,288		877
Germany	6,129		4,901		2,112		4,590		17,732		(4,119		)	13,613		895
China	10,984		461		618		1,282		13,345		(301		)	13,044		123
Brazil	8,930		590		393		3,226		13,139		(222		)	12,917		(715		)
France	3,500		6,595		1,204		6,007		17,306		(4,485		)	12,821		2,658
India	5,929		632		307		3,614		10,482		(82		)	10,400		149
Australia	3,722		2,106		466		2,362		8,656		(354		)	8,302		305
Netherlands	4,031		3,809		488		1,030		9,358		(1,424		)	7,934		299
Hong Kong	5,809		344		74		760		6,987		(101		)	6,886		1,529
South Korea	3,901		871		542		1,956		7,270		(571		)	6,699		264
Switzerland	2,343		2,951		641		603		6,538		(1,180		)	5,358		(188		)
Russian Federation	5,709		201		319		68		6,297		(1,084		)	5,213		(1,509		)
Singapore	3,065		167		152		1,491		4,875		(50		)	4,825		996
Italy	2,780		2,014		2,115		1,646		8,555		(4,064		)	4,491		(711		)
Japan	3,639		509		1,168		1,106		6,422		(2,171		)	4,251		(3,864		)
Taiwan	2,691		100		144		1,284		4,219		(15		)	4,204		132
Mexico	3,058		716		113		334		4,221		(458		)	3,763		(236		)
Spain	2,999		834		125		584		4,542		(1,585		)	2,957		(446		)
Turkey	2,188		75		38		111		2,412		(25		)	2,387		(306		)
Total top 20 non-U.S. countries exposure	$	113,488	$	47,211	$	19,201	$	44,410	$	224,310	$	(27,655	)	$	196,655	$	3,968


⁽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 $32.3 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 $95.4 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.	36



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 March 31 2014		Hedges and Credit Default Protection ⁽⁴⁾			Net Country Exposure at March 31 2014 ⁽⁵⁾			Increase (Decrease) from December 31 2013
Greece
Sovereign	$	—	$	—	$	—	$	27	$	27	$	—		$	27		$	(31	)
Financial institutions	—		—		1		2		3		(18		)	(15		)	(12		)
Corporates	63		68		—		8		139		(26		)	113			15
Total Greece	$	63	$	68	$	1	$	37	$	169	$	(44	)	$	125		$	(28	)
Ireland
Sovereign	$	19	$	—	$	10	$	62	$	91	$	(10	)	$	81		$	86
Financial institutions	794		27		119		25		965		(11		)	954			(26		)
Corporates	395		347		77		47		866		(22		)	844			75
Total Ireland	$	1,208	$	374	$	206	$	134	$	1,922	$	(43	)	$	1,879		$	135
Italy
Sovereign	$	20	$	—	$	1,790	$	1,293	$	3,103	$	(2,091	)	$	1,012		$	1,225
Financial institutions	1,484		3		178		64		1,729		(1,078		)	651			(759		)
Corporates	1,276		2,011		147		289		3,723		(895		)	2,828			(1,177		)
Total Italy	$	2,780	$	2,014	$	2,115	$	1,646	$	8,555	$	(4,064	)	$	4,491		$	(711	)
Portugal
Sovereign	$	—	$	—	$	17	$	144	$	161	$	(35	)	$	126		$	103
Financial institutions	13		—		1		—		14		(50		)	(36		)	66
Corporates	90		103		—		50		243		(217		)	26			85
Total Portugal	$	103	$	103	$	18	$	194	$	418	$	(302	)	$	116		$	254
Spain
Sovereign	$	36	$	—	$	66	$	7	$	109	$	(293	)	$	(184	)	$	(123	)
Financial institutions	1,157		1		22		105		1,285		(281		)	1,004			56
Corporates	1,806		833		37		472		3,148		(1,011		)	2,137			(379		)
Total Spain	$	2,999	$	834	$	125	$	584	$	4,542	$	(1,585	)	$	2,957		$	(446	)
Total
Sovereign	$	75	$	—	$	1,883	$	1,533	$	3,491	$	(2,429	)	$	1,062		$	1,260
Financial institutions	3,448		31		321		196		3,996		(1,438		)	2,558			(675		)
Corporates	3,630		3,362		261		866		8,119		(2,171		)	5,948			(1,381		)
Total select European exposure	$	7,153	$	3,393	$	2,465	$	2,595	$	15,606	$	(6,038	)	$	9,568		$	(796	)


⁽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 $1.6 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 $4.9 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 $4.3 billion and net credit default swaps purchased of $807 million, consisting of $435 million of net single-name credit default swaps purchased and $372 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, includes $3.6 billion to hedge loans and securities, consisting of $2.0 billion in net single-name credit default swaps purchased and $1.6 billion in net indexed and tranched credit default swaps purchased, $2.4 billion in additional credit default protection purchased to hedge derivative assets and $120 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.	37



Bank of America Corporation and Subsidiaries
Nonperforming Loans, Leases and Foreclosed Properties
(Dollars in millions)
	March 31 2014			December 31 2013			September 30 2013			June 30 2013			March 31 2013
Residential mortgage	$	11,611		$	11,712		$	13,328		$	14,316		$	15,001
Home equity	4,185			4,075			4,176			4,151			4,196
Direct/Indirect consumer	32			35			59			72			84
Other consumer	16			18			18			1			1
Total consumer	15,844			15,840			17,581			18,540			19,282
U.S. commercial	841			819			1,059			1,279			1,354
Commercial real estate	300			322			488			627			1,139
Commercial lease financing	10			16			49			10			19
Non-U.S. commercial	18			64			86			80			112
	1,169			1,221			1,682			1,996			2,624
U.S. small business commercial	96			88			103			107			110
Total commercial	1,265			1,309			1,785			2,103			2,734
Total nonperforming loans and leases	17,109			17,149			19,366			20,643			22,016
Foreclosed properties ⁽¹⁾	623			623			662			637			826
Total nonperforming loans, leases and foreclosed properties ^{(2, 3, 4)}	$	17,732		$	17,772		$	20,028		$	21,280		$	22,842

Fully-insured home loans past due 30 days or more and still accruing	$	18,098		$	20,681		$	21,797		$	24,072		$	24,733
Consumer credit card past due 30 days or more and still accruing	2,115			2,321			2,376			2,487			2,847
Other loans past due 30 days or more and still accruing	5,472			5,416			5,512			5,587			6,147
Total loans past due 30 days or more and still accruing ^{(3, 5, 6)}	$	25,685		$	28,418		$	29,685		$	32,146		$	33,727

Fully-insured home loans past due 90 days or more and still accruing	$	15,125		$	16,961		$	17,960		$	20,604		$	21,617
Consumer credit card past due 90 days or more and still accruing	1,090			1,184			1,191			1,325			1,541
Other loans past due 90 days or more and still accruing	649			614			723			662			655
Total loans past due 90 days or more and still accruing ^{(3, 5, 6)}	$	16,864		$	18,759		$	19,874		$	22,591		$	23,813

Nonperforming loans, leases and foreclosed properties/Total assets ⁽⁷⁾	0.83		%	0.85		%	0.95		%	1.01		%	1.05		%
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties ⁽⁷⁾	1.96			1.93			2.17			2.33			2.53
Nonperforming loans and leases/Total loans and leases ⁽⁷⁾	1.89			1.87			2.10			2.26			2.44

Commercial utilized reservable criticized exposure ⁽⁸⁾	$	12,781		$	12,861		$	14,086		$	14,928		$	15,006
Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure ⁽⁸⁾	3.01		%	3.02		%	3.31		%	3.62		%	3.75		%
Total commercial utilized criticized exposure/Commercial utilized exposure ⁽⁸⁾	3.21			3.08			3.48			3.64			4.08


⁽¹⁾	Foreclosed property balances do not include loans that are insured by the Federal Housing Administration and have entered foreclosure of $1.1 billion, $1.4 billion, $1.6 billion, $1.6 billion and $2.3 billion at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively.


⁽²⁾	Balances do not include past due consumer credit card, consumer loans secured by real estate where repayments are insured by the Federal Housing Administration and individually insured long-term stand-by agreements (fully-insured home loans), and in general, other consumer and commercial loans not secured by real estate.


⁽³⁾	Balances do not include purchased credit-impaired loans even though the customer may be contractually past due. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan.



⁽⁴⁾Balances do not include the following:	March 31 2014		December 31 2013		September 30 2013		June 30 2013		March 31 2013
Nonperforming loans held-for-sale	$	293	$	672	$	972	$	891	$	1,050
Nonperforming loans accounted for under the fair value option	431		448		467		398		412
Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010	257		260		356		485		512

⁽⁵⁾

Balances do not include loans held-for-sale past due 30 days or more and still accruing of $80 million, $106 million, $301 million, $374 million and $315 million at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively, and loans held-for-sale past due 90 days or more and still accruing of $6 million, $8 million, $0, $17 million and $18 million at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. At March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, there were $129 million, $158 million, $153 million, $81 million and $83 million, respectively, of loans accounted for under the fair value option past due 30 days or more and still accruing interest.


⁽⁶⁾	These balances are excluded from total nonperforming loans, leases and foreclosed properties.


⁽⁷⁾	Total assets and total loans and leases do not include loans accounted for under the fair value option of $11.1 billion, $10.0 billion, $10.2 billion, $9.5 billion and $8.8 billion at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively.


⁽⁸⁾	Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure excludes loans held-for-sale, exposure accounted for under the fair value option and other nonreservable exposure.

Certain prior period amounts have been reclassified to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	38



Bank of America Corporation and Subsidiaries
Nonperforming Loans, Leases and Foreclosed Properties Activity ⁽¹⁾
(Dollars in millions)
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
Nonperforming Consumer Loans and Leases:
Balance, beginning of period	$	15,840		$	17,581		$	18,540		$	19,282		$	19,431
Additions to nonperforming loans and leases:
New nonperforming loans and leases	2,027			2,199			2,503			2,289			2,661
Reductions to nonperforming loans and leases:
Paydowns and payoffs	(468		)	(863		)	(544		)	(695		)	(680		)
Sales	—			(729		)	(624		)	(175		)	—
Returns to performing status ⁽²⁾	(800		)	(1,112		)	(1,079		)	(1,139		)	(943		)
Charge-offs ⁽³⁾	(583		)	(752		)	(758		)	(932		)	(1,072		)
Transfers to foreclosed properties	(172		)	(147		)	(131		)	(90		)	(115		)
Transfers to loans held-for-sale	—			(337		)	(326		)	—			—
Total net additions (reductions) to nonperforming loans and leases	4			(1,741		)	(959		)	(742		)	(149		)
Total nonperforming consumer loans and leases, end of period	15,844			15,840			17,581			18,540			19,282
Foreclosed properties	538			533			546			508			620
Nonperforming consumer loans, leases and foreclosed properties, end of period	$	16,382		$	16,373		$	18,127		$	19,048		$	19,902

Nonperforming Commercial Loans and Leases ⁽⁴⁾:
Balance, beginning of period	$	1,309		$	1,785		$	2,103		$	2,734		$	3,224
Additions to nonperforming loans and leases:
New nonperforming loans and leases	262			143			350			269			350
Advances	8			12			9			3			6
Reductions to nonperforming loans and leases:
Paydowns	(171		)	(322		)	(380		)	(312		)	(328		)
Sales	(27		)	(92		)	(88		)	(171		)	(147		)
Return to performing status ⁽⁵⁾	(63		)	(87		)	(91		)	(243		)	(167		)
Charge-offs	(50		)	(98		)	(104		)	(170		)	(177		)
Transfers to foreclosed properties	(3		)	(12		)	(14		)	(7		)	(21		)
Transfers to loans held-for-sale	—			(20		)	—			—			(6		)
Total net reductions to nonperforming loans and leases	(44		)	(476		)	(318		)	(631		)	(490		)
Total nonperforming commercial loans and leases, end of period	1,265			1,309			1,785			2,103			2,734
Foreclosed properties	85			90			116			129			206
Nonperforming commercial loans, leases and foreclosed properties, end of period	$	1,350		$	1,399		$	1,901		$	2,232		$	2,940


⁽¹⁾	For amounts excluded from nonperforming loans, leases and foreclosed properties, see footnotes to Nonperforming Loans, Leases and Foreclosed Properties table on page 38.

⁽²⁾

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.


⁽³⁾	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.


⁽⁴⁾	Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming.

⁽⁵⁾

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.

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
Quarterly Net Charge-offs and Net Charge-off Ratios ^{(1, 2)}
(Dollars in millions)
	First Quarter 2014					Fourth Quarter 2013					Third Quarter 2013					Second Quarter 2013					First Quarter 2013
Net Charge-offs	Amount			Percent		Amount			Percent		Amount			Percent		Amount			Percent		Amount			Percent
Residential mortgage ⁽³⁾	$	127		0.21	%	$	209		0.33	%	$	221		0.35	%	$	271		0.43	%	$	383		0.60	%
Home equity ⁽³⁾	302			1.32		331			1.38		302			1.22		486			1.92		684			2.62
U.S. credit card	718			3.25		724			3.19		788			3.47		917			4.10		947			4.19
Non-U.S. credit card	76			2.66		94			3.34		89			3.32		104			3.93		112			4.14
Direct/Indirect consumer	58			0.29		73			0.35		62			0.30		86			0.42		124			0.61
Other consumer	58			12.07		66			13.58		65			13.75		51			11.57		52			12.76
Total consumer ⁽³⁾	1,339			1.04		1,497			1.11		1,527			1.12		1,915			1.42		2,302			1.70
U.S. commercial ⁽⁴⁾	5			0.01		(28		)	(0.05	)	68			0.13		43			0.09		45			0.09
Commercial real estate	(37		)	(0.31	)	1			—		11			0.11		44			0.43		93			0.96
Commercial lease financing	(2		)	(0.04	)	(2		)	(0.03	)	(8		)	(0.13	)	(5		)	(0.08	)	(10		)	(0.18	)
Non-U.S. commercial	19			0.09		46			0.20		(2		)	(0.01	)	16			0.08		(15		)	(0.08	)
	(15		)	(0.02	)	17			0.02		69			0.08		98			0.11		113			0.14
U.S. small business commercial	64			1.95		68			2.07		91			2.86		98			3.15		102			3.33
Total commercial	49			0.05		85			0.09		160			0.17		196			0.22		215			0.25
Total net charge-offs ⁽³⁾	$	1,388		0.62		$	1,582		0.68		$	1,687		0.73		$	2,111		0.94		$	2,517		1.14

By Business Segment
Consumer & Business Banking	$	881		2.20	%	$	922		2.24	%	$	1,027		2.46	%	$	1,158		2.84	%	$	1,241		3.03	%
Consumer Real Estate Services	294			1.36		323			1.45		281			1.28		465			2.09		660			2.91
Global Wealth & Investment Management	25			0.09		35			0.12		26			0.09		51			0.19		61			0.23
Global Banking	(17		)	(0.03	)	7			0.01		35			0.05		78			0.12		68			0.12
Global Markets	(1		)	(0.01	)	1			0.01		—			—		(1		)	—		2			0.01
All Other	206			0.39		294			0.52		318			0.54		360			0.60		485			0.80
Total net charge-offs	$	1,388		0.62		$	1,582		0.68		$	1,687		0.73		$	2,111		0.94		$	2,517		1.14

⁽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 0.64, 0.70, 0.75, 0.97 and 1.18 for the three months ended March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively.

⁽²⁾

Excludes write-offs of purchased credit-impaired loans of $391 million, $741 million, $443 million, $313 million and $839 million for the three months ended March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. 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 0.79, 1.00, 0.92, 1.07 and 1.52 for the three months ended March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively.

⁽³⁾

Includes the impact of a clarification of regulatory guidance on accounting for troubled debt restructurings of $56 million for residential mortgage loans and $88 million for home equity loans for the three months ended December 31, 2013. Excluding this impact, annualized net charge-offs as a percentage of total average loans and leases outstanding were 0.24 for residential mortgage loans, 1.01 for home equity loans, 1.01 for total consumer loans and 0.62 for total net charge-offs for the three months ended December 31, 2013.


⁽⁴⁾	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.	40



Bank of America Corporation and Subsidiaries
Allocation of the Allowance for Credit Losses by Product Type
(Dollars in millions)
	March 31, 2014						December 31, 2013						March 31, 2013
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	$	3,502	21.07	%	1.44	%	$	4,084	23.43	%	1.65	%	$	6,731	29.99	%	2.62	%
Home equity	4,054		24.40		4.43		4,434		25.44		4.73		6,707		29.89		6.50
U.S. credit card	3,857		23.21		4.40		3,930		22.55		4.26		4,506		20.08		5.00
Non-U.S. credit card	432		2.60		3.74		459		2.63		3.98		572		2.55		5.38
Direct/Indirect consumer	389		2.34		0.48		417		2.39		0.51		690		3.08		0.85
Other consumer	97		0.58		4.86		99		0.58		5.02		106		0.47		6.24
Total consumer	12,331		74.20		2.38		13,423		77.02		2.53		19,312		86.06		3.55
U.S. commercial ⁽²⁾	2,563		15.43		1.12		2,394		13.74		1.06		1,866		8.31		0.87
Commercial real estate	972		5.85		1.99		917		5.26		1.91		815		3.63		2.09
Commercial lease financing	122		0.73		0.50		118		0.68		0.47		85		0.38		0.36
Non-U.S. commercial	630		3.79		0.74		576		3.30		0.64		363		1.62		0.44
Total commercial ⁽³⁾	4,287		25.80		1.11		4,005		22.98		1.03		3,129		13.94		0.87
Allowance for loan and lease losses	16,618		100.00	%	1.84		17,428		100.00	%	1.90		22,441		100.00	%	2.49
Reserve for unfunded lending commitments	509						484						486
Allowance for credit losses	$	17,127					$	17,912					$	22,927

Asset Quality Indicators

Allowance for loan and lease losses/Total loans and leases ⁽⁴⁾			1.84	%					1.90	%					2.49	%
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)}			1.65						1.67						2.06
Allowance for loan and lease losses/Total nonperforming loans and leases⁽⁶⁾			97						102						102
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total nonperforming loans and leases ⁽⁵⁾			85						87						82
Ratio of the allowance for loan and lease losses/Annualized net charge-offs ⁽⁷⁾			2.95						2.78						2.20
Ratio of the allowance for loan and lease losses (excluding purchased credit-impaired loans)/Annualized net charge-offs ⁽⁵⁾			2.58						2.38						1.76
Ratio of the allowance for loan and lease losses/Annualized net charge-offs and purchased credit-impaired write-offs			2.30						1.89						1.65

⁽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 $2.0 billion, $2.0 billion and $1.0 billion and home equity loans of $152 million, $147 million and $0 at March 31, 2014, December 31, 2013 and March 31, 2013, respectively. Commercial loans accounted for under the fair value option included U.S. commercial loans of $1.4 billion, $1.5 billion and $2.1 billion and non-U.S. commercial loans of $7.5 billion, $6.4 billion and $5.7 billion at March 31, 2014, December 31, 2013 and March 31, 2013, respectively.


⁽²⁾	Includes allowance for loan and lease losses for U.S. small business commercial loans of $462 million, $462 million and $611 million at March 31, 2014, December 31, 2013 and March 31, 2013, respectively.


⁽³⁾	Includes allowance for loan and lease losses for impaired commercial loans of $277 million, $277 million and $408 million at March 31, 2014, December 31, 2013 and March 31, 2013, respectively.


⁽⁴⁾	Total loans and leases do not include loans accounted for under the fair value option of $11.1 billion, $10.0 billion and $8.8 billion at March 31, 2014, December 31, 2013 and March 31, 2013, respectively.


⁽⁵⁾	Excludes valuation allowance on purchased credit-impaired loans of $2.1 billion, $2.5 billion and $4.5 billion at March 31, 2014, December 31, 2013 and March 31, 2013, respectively.

⁽⁶⁾

Allowance for loan and lease losses includes $7.1 billion, $7.7 billion and $10.7 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 March 31, 2014, December 31, 2013 and March 31, 2013, respectively. Excluding these amounts, allowance for loan and lease losses as a percentage of total nonperforming loans and leases was 55 percent, 57 percent and 53 percent at March 31, 2014, December 31, 2013 and March 31, 2013, respectively.


⁽⁷⁾	Net charge-offs exclude $391 million, $741 million and $839 million of write-offs in the purchased credit-impaired loan portfolio at March 31, 2014, December 31, 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.

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



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. The tangible common equity ratio represents adjusted ending common shareholders' equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible shareholders' equity measures the Corporation's earnings contribution as a percentage of adjusted average total shareholders' equity. The tangible equity ratio represents adjusted ending shareholders' equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Tangible book value per common share represents adjusted ending common shareholders' equity divided by ending common shares outstanding. These measures are used to evaluate the Corporation's use of equity. In addition, profitability, relationship and investment models all use return on average tangible shareholders' equity as key measures to support our overall growth goals.

In addition, the Corporation evaluates its business segment results based on measures that utilize average allocated capital. The Corporation allocates capital to its business segments using a methodology that considers the effect of regulatory capital requirements in addition to internal risk-based 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. Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return both represent non-GAAP financial measures. Allocated capital is reviewed periodically and refinements are made based on multiple considerations that include, but are not limited to, business segment exposures and risk profile, regulatory constraints and strategic plans. As part of this process, in the first quarter of 2014, the Corporation adjusted the amount of capital being allocated to its business segments. This change resulted in a reduction of the unallocated capital, which is reflected in All Other, and an aggregate increase to the amount of capital being allocated to the business segments. Prior periods were not restated.

See the tables below and on pages 43-45 for reconciliations of these non-GAAP financial measures to financial measures defined by GAAP for the three months ended March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013. 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.



	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis
Net interest income	$	10,085		$	10,786		$	10,266		$	10,549		$	10,664
Fully taxable-equivalent adjustment	201			213			213			222			211
Net interest income on a fully taxable-equivalent basis	$	10,286		$	10,999		$	10,479		$	10,771		$	10,875

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	$	22,566		$	21,488		$	21,530		$	22,727		$	23,197
Fully taxable-equivalent adjustment	201			213			213			222			211
Total revenue, net of interest expense on a fully taxable-equivalent basis	$	22,767		$	21,701		$	21,743		$	22,949		$	23,408

Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis
Income tax expense (benefit)	$	(405	)	$	406		$	2,348		$	1,486		$	501
Fully taxable-equivalent adjustment	201			213			213			222			211
Income tax expense (benefit) on a fully taxable-equivalent basis	$	(204	)	$	619		$	2,561		$	1,708		$	712

Reconciliation of average common shareholders' equity to average tangible common shareholders' equity
Common shareholders' equity	$	223,201		$	220,088		$	216,766		$	218,790		$	218,225
Goodwill	(69,842		)	(69,864		)	(69,903		)	(69,930		)	(69,945		)
Intangible assets (excluding mortgage servicing rights)	(5,474		)	(5,725		)	(5,993		)	(6,270		)	(6,549		)
Related deferred tax liabilities	2,165			2,231			2,296			2,360			2,425
Tangible common shareholders' equity	$	150,050		$	146,730		$	143,166		$	144,950		$	144,156

Reconciliation of average shareholders' equity to average tangible shareholders' equity
Shareholders' equity	$	236,553		$	233,415		$	230,392		$	235,063		$	236,995
Goodwill	(69,842		)	(69,864		)	(69,903		)	(69,930		)	(69,945		)
Intangible assets (excluding mortgage servicing rights)	(5,474		)	(5,725		)	(5,993		)	(6,270		)	(6,549		)
Related deferred tax liabilities	2,165			2,231			2,296			2,360			2,425
Tangible shareholders' equity	$	163,402		$	160,057		$	156,792		$	161,223		$	162,926

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



Exhibit A: Non-GAAP Reconciliations (continued)

Bank of America Corporation and Subsidiaries
Reconciliations to GAAP Financial Measures
(Dollars in millions)
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
Reconciliation of period-end common shareholders' equity to period-end tangible common shareholders' equity
Common shareholders' equity	$	218,536		$	219,333		$	218,967		$	216,791		$	218,513
Goodwill	(69,842		)	(69,844		)	(69,891		)	(69,930		)	(69,930		)
Intangible assets (excluding mortgage servicing rights)	(5,337		)	(5,574		)	(5,843		)	(6,104		)	(6,379		)
Related deferred tax liabilities	2,100			2,166			2,231			2,297			2,363
Tangible common shareholders' equity	$	145,457		$	146,081		$	145,464		$	143,054		$	144,567

Reconciliation of period-end shareholders' equity to period-end tangible shareholders' equity
Shareholders' equity	$	231,888		$	232,685		$	232,282		$	231,032		$	237,293
Goodwill	(69,842		)	(69,844		)	(69,891		)	(69,930		)	(69,930		)
Intangible assets (excluding mortgage servicing rights)	(5,337		)	(5,574		)	(5,843		)	(6,104		)	(6,379		)
Related deferred tax liabilities	2,100			2,166			2,231			2,297			2,363
Tangible shareholders' equity	$	158,809		$	159,433		$	158,779		$	157,295		$	163,347

Reconciliation of period-end assets to period-end tangible assets
Assets	$	2,149,851		$	2,102,273		$	2,126,653		$	2,123,320		$	2,174,819
Goodwill	(69,842		)	(69,844		)	(69,891		)	(69,930		)	(69,930		)
Intangible assets (excluding mortgage servicing rights)	(5,337		)	(5,574		)	(5,843		)	(6,104		)	(6,379		)
Related deferred tax liabilities	2,100			2,166			2,231			2,297			2,363
Tangible assets	$	2,076,772		$	2,029,021		$	2,053,150		$	2,049,583		$	2,100,873

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



Exhibit A: Non-GAAP Reconciliations (continued)

Bank of America Corporation and Subsidiaries
Reconciliations to GAAP Financial Measures
(Dollars in millions)
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
	First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013			Second Quarter 2013			First Quarter 2013
Reconciliation of return on average allocated capital ⁽¹⁾

Consumer & Business Banking
Reported net income	$	1,658		$	1,962		$	1,775		$	1,389		$	1,448
Adjustment related to intangibles ⁽²⁾	1			1			2			2			2
Adjusted net income	$	1,659		$	1,963		$	1,777		$	1,391		$	1,450

Average allocated equity ⁽³⁾	$	61,483		$	62,007		$	62,033		$	62,058		$	62,084
Adjustment related to goodwill and a percentage of intangibles	(31,983		)	(32,007		)	(32,033		)	(32,058		)	(32,084		)
Average allocated capital	$	29,500		$	30,000		$	30,000		$	30,000		$	30,000

Global Wealth & Investment Management
Reported net income	$	729		$	777		$	720		$	759		$	721
Adjustment related to intangibles ⁽²⁾	3			4			4			4			4
Adjusted net income	$	732		$	781		$	724		$	763		$	725

Average allocated equity ⁽³⁾	$	22,243		$	20,265		$	20,283		$	20,300		$	20,323
Adjustment related to goodwill and a percentage of intangibles	(10,243		)	(10,265		)	(10,283		)	(10,300		)	(10,323		)
Average allocated capital	$	12,000		$	10,000		$	10,000		$	10,000		$	10,000

Global Banking
Reported net income	$	1,236		$	1,266		$	1,134		$	1,292		$	1,281
Adjustment related to intangibles ⁽²⁾	—			—			1			—			1
Adjusted net income	$	1,236		$	1,266		$	1,135		$	1,292		$	1,282

Average allocated equity ⁽³⁾	$	53,407		$	45,410		$	45,413		$	45,416		$	45,406
Adjustment related to goodwill and a percentage of intangibles	(22,407		)	(22,410		)	(22,413		)	(22,416		)	(22,406		)
Average allocated capital	$	31,000		$	23,000		$	23,000		$	23,000		$	23,000

Global Markets
Reported net income (loss)	$	1,310		$	(43	)	$	(872	)	$	965		$	1,112
Adjustment related to intangibles ⁽²⁾	2			2			2			2			2
Adjusted net income (loss)	$	1,312		$	(41	)	$	(870	)	$	967		$	1,114

Average allocated equity ⁽³⁾	$	39,377		$	35,380		$	35,369		$	35,372		$	35,372
Adjustment related to goodwill and a percentage of intangibles	(5,377		)	(5,380		)	(5,369		)	(5,372		)	(5,372		)
Average allocated capital	$	34,000		$	30,000		$	30,000		$	30,000		$	30,000

For footnotes see page 45.

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



Exhibit A: Non-GAAP Reconciliations (continued)

Bank of America Corporation and Subsidiaries
Reconciliations to GAAP Financial Measures
(Dollars in millions)
	First Quarter 2014			Fourth Quarter 2013			First Quarter 2013
	First Quarter 2014			Fourth Quarter 2013			First Quarter 2013
Consumer & Business Banking

Deposits
Reported net income	$	620		$	670		$	397
Adjustment related to intangibles ⁽²⁾	—			—			—
Adjusted net income	$	620		$	670		$	397

Average allocated equity ⁽³⁾	$	36,490		$	35,394		$	35,407
Adjustment related to goodwill and a percentage of intangibles	(19,990		)	(19,994		)	(20,007		)
Average allocated capital	$	16,500		$	15,400		$	15,400

Consumer Lending
Reported net income	$	1,038		$	1,292		$	1,051
Adjustment related to intangibles ⁽²⁾	1			1			2
Adjusted net income	$	1,039		$	1,293		$	1,053

Average allocated equity ⁽³⁾	$	24,993		$	26,613		$	26,676
Adjustment related to goodwill and a percentage of intangibles	(11,993		)	(12,013		)	(12,076		)
Average allocated capital	$	13,000		$	14,600		$	14,600


⁽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 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.	45

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