Bank of America (BAC) 10-Q 2014 Q3 Quarterly report

Bank of America Corporation and Subsidiaries												Exhibit 12
Ratio of Earnings to Fixed Charges
Ratio of Earnings to Fixed Charges and Preferred Dividends
				Year Ended December 31
(Dollars in millions)	Nine Months Ended September 30, 2014			2013			2012		2011			2010			2009
Excluding Interest on Deposits
Income (loss) before income taxes	$	2,545		$	16,172		$	3,072	$	(230	)	$	(1,323	)	$	4,360
Equity in undistributed earnings (loss) of unconsolidated subsidiaries	(268		)	(66		)	212		596			1,210			(1,833		)
Fixed charges:
Interest expense	7,574			11,359			14,754		18,618			19,977			23,000
1/3 of net rent expense (1)	771			1,091			1,092		1,072			1,099			1,110
Total fixed charges	8,345			12,450			15,846		19,690			21,076			24,110
Preferred dividend requirements (2)	1,045			1,767			1,080		n/m			802			5,921
Fixed charges and preferred dividends	9,390			14,217			16,926		19,690			21,878			30,031
Earnings	$	10,622		$	28,556		$	19,130	$	20,056		$	20,963		$	26,637
Ratio of earnings to fixed charges (3)	1.27			2.29			1.21		1.02			0.99			1.10
Ratio of earnings to fixed charges and preferred dividends (3, 4)	1.13			2.01			1.13		1.02			0.96			0.89
				Year Ended December 31
(Dollars in millions)	Nine Months Ended September 30, 2014			2013			2012		2011			2010			2009
Including Interest on Deposits
Income (loss) before income taxes	$	2,545		$	16,172		$	3,072	$	(230	)	$	(1,323	)	$	4,360
Equity in undistributed earnings (loss) of unconsolidated subsidiaries	(268		)	(66		)	212		596			1,210			(1,833		)
Fixed charges:
Interest expense	8,417			12,755			16,744		21,620			23,974			30,807
1/3 of net rent expense (1)	771			1,091			1,092		1,072			1,099			1,110
Total fixed charges	9,188			13,846			17,836		22,692			25,073			31,917
Preferred dividend requirements (2)	1,045			1,767			1,080		n/m			802			5,921
Fixed charges and preferred dividends	10,233			15,613			18,916		22,692			25,875			37,838
Earnings	$	11,465		$	29,952		$	21,120	$	23,058		$	24,960		$	34,444
Ratio of earnings to fixed charges (3)	1.25			2.16			1.18		1.02			1.00			1.08
Ratio of earnings to fixed charges and preferred dividends (3, 4)	1.12			1.92			1.12		1.02			0.96			0.91

⁽¹⁾  Represents an appropriate interest factor.

⁽²⁾  The earnings for 2011 reflect the impact of $8.8 billion of mortgage banking losses and $3.2 billion of goodwill impairment charges, which resulted in a negative preferred dividend requirement.

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

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

n/m = not meaningful