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Revised Supplemental Information
to Reflect Segment Realignment
Full Years 2014 and 2013
Quarterly Information for 2014
This information is preliminary and based on company data available at the time of this Form 8-K filing. 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.
Bank of America Corporation and Subsidiaries | |
Table of Contents | Page |
Consumer Banking | |
Global Wealth & Investment Management | |
Global Banking | |
Global Markets | |
Legacy Assets & Servicing | |
All Other | |
Description of Segment Realignment From time to time, including in its Annual Report on Form 10-K for the year ended December 31, 2014 (the Annual Report), Bank of America Corporation (the Corporation) has indicated that it may reclassify its business segment results based on, among other things, changes in its organizational alignment. In the Annual Report, the Corporation reported its results of operations through five business segments: Consumer & Business Banking (CBB), Consumer Real Estate Services (CRES), Global Wealth & Investment Management (GWIM), Global Banking and Global Markets, with the remaining operations recorded in All Other. Effective January 1, 2015, to align the segments with how we manage the businesses in 2015, the Corporation changed its basis of presentation, and following such change, reports its results of operations through the following five business segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, Global Markets and Legacy Assets & Servicing (LAS), with the remaining operations recorded in All Other. The Home Loans subsegment, which was included in the former CRES segment, is now included in Consumer Banking, and LAS has become a separate segment. A portion of the Business Banking business, based on the size of the client, was moved from the former CBB segment to Global Banking, and the former CBB segment was renamed Consumer Banking. Also, Bank of America Merchant Services, the Corporation's merchant processing joint venture, moved from the former CBB segment to All Other. In addition, certain management accounting methodologies, including the treatment of intersegment assets and liabilities, and related allocations were refined. Prior periods have been reclassified for comparability. |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Quarterly Results by Business Segment | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Fourth Quarter 2014 | |||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 9,865 | $ | 4,966 | $ | 1,407 | $ | 2,420 | $ | 1,032 | $ | 390 | $ | (350 | ) | ||||||||||||||
Noninterest income | 9,090 | 2,793 | 3,195 | 1,912 | 1,338 | 248 | (396 | ) | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 18,955 | 7,759 | 4,602 | 4,332 | 2,370 | 638 | (746 | ) | |||||||||||||||||||||
Provision for credit losses | 219 | 653 | 14 | (31 | ) | 26 | (113 | ) | (330 | ) | |||||||||||||||||||
Noninterest expense | 14,196 | 4,409 | 3,440 | 2,002 | 2,500 | 1,364 | 481 | ||||||||||||||||||||||
Income (loss) before income taxes (FTE basis) | 4,540 | 2,697 | 1,148 | 2,361 | (156 | ) | (613 | ) | (897 | ) | |||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 1,490 | 1,036 | 442 | 850 | (84 | ) | (231 | ) | (523 | ) | |||||||||||||||||||
Net income (loss) | $ | 3,050 | $ | 1,661 | $ | 706 | $ | 1,511 | $ | (72 | ) | $ | (382 | ) | $ | (374 | ) | ||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 884,733 | $ | 199,215 | $ | 123,544 | $ | 287,017 | $ | 58,094 | $ | 33,772 | $ | 183,091 | |||||||||||||||
Total assets (1) | 2,137,551 | 582,115 | 266,716 | 369,292 | 611,713 | 48,557 | 259,158 | ||||||||||||||||||||||
Total deposits | 1,122,514 | 517,580 | 238,835 | 296,205 | n/m | n/m | 22,163 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 881,391 | $ | 202,000 | $ | 125,431 | $ | 288,905 | $ | 59,388 | $ | 33,055 | $ | 172,612 | |||||||||||||||
Total assets (1) | 2,104,534 | 589,048 | 274,887 | 357,081 | 579,512 | 45,958 | 258,048 | ||||||||||||||||||||||
Total deposits | 1,118,936 | 524,413 | 245,391 | 283,191 | n/m | n/m | 19,242 | ||||||||||||||||||||||
Third Quarter 2014 | |||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 10,444 | $ | 5,081 | $ | 1,459 | $ | 2,455 | $ | 994 | $ | 387 | $ | 68 | |||||||||||||||
Noninterest income | 10,990 | 2,668 | 3,207 | 1,908 | 3,148 | 169 | (110 | ) | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 21,434 | 7,749 | 4,666 | 4,363 | 4,142 | 556 | (42 | ) | |||||||||||||||||||||
Provision for credit losses | 636 | 668 | (15 | ) | (64 | ) | 45 | 267 | (265 | ) | |||||||||||||||||||
Noninterest expense | 20,142 | 4,447 | 3,403 | 2,050 | 3,335 | 6,647 | 260 | ||||||||||||||||||||||
Income (loss) before income taxes (FTE basis) | 656 | 2,634 | 1,278 | 2,377 | 762 | (6,358 | ) | (37 | ) | ||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 888 | 956 | 465 | 866 | 389 | (1,245 | ) | (543 | ) | ||||||||||||||||||||
Net income (loss) | $ | (232 | ) | $ | 1,678 | $ | 813 | $ | 1,511 | $ | 373 | $ | (5,113 | ) | $ | 506 | |||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 899,241 | $ | 197,374 | $ | 121,002 | $ | 283,284 | $ | 62,939 | $ | 35,238 | $ | 199,404 | |||||||||||||||
Total assets (1) | 2,136,109 | 578,927 | 266,324 | 368,394 | 599,884 | 53,762 | 268,818 | ||||||||||||||||||||||
Total deposits | 1,127,488 | 514,549 | 239,352 | 295,715 | n/m | n/m | 29,880 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 891,315 | $ | 198,467 | $ | 122,395 | $ | 284,968 | $ | 62,645 | $ | 34,484 | $ | 188,356 | |||||||||||||||
Total assets (1) | 2,123,613 | 580,381 | 266,240 | 358,786 | 598,668 | 56,900 | 262,638 | ||||||||||||||||||||||
Total deposits | 1,111,981 | 515,580 | 238,710 | 286,128 | n/m | n/m | 25,418 | ||||||||||||||||||||||
(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 segment information is preliminary and based on company data available at the time of this filing. | 2 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Quarterly Results by Business Segment (continued) | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Second Quarter 2014 | |||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 10,226 | $ | 5,060 | $ | 1,485 | $ | 2,446 | $ | 958 | $ | 362 | $ | (85 | ) | ||||||||||||||
Noninterest income | 11,734 | 2,589 | 3,104 | 2,001 | 3,632 | 438 | (30 | ) | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 21,960 | 7,649 | 4,589 | 4,447 | 4,590 | 800 | (115 | ) | |||||||||||||||||||||
Provision for credit losses | 411 | 550 | (8 | ) | 136 | 20 | (39 | ) | (248 | ) | |||||||||||||||||||
Noninterest expense | 18,541 | 4,505 | 3,445 | 2,020 | 2,861 | 5,231 | 479 | ||||||||||||||||||||||
Income (loss) before income taxes (FTE basis) | 3,008 | 2,594 | 1,152 | 2,291 | 1,709 | (4,392 | ) | (346 | ) | ||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 717 | 960 | 426 | 849 | 604 | (1,653 | ) | (469 | ) | ||||||||||||||||||||
Net income (loss) | $ | 2,291 | $ | 1,634 | $ | 726 | $ | 1,442 | $ | 1,105 | $ | (2,739 | ) | $ | 123 | ||||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 912,580 | $ | 195,413 | $ | 118,512 | $ | 287,795 | $ | 63,579 | $ | 36,705 | $ | 210,576 | |||||||||||||||
Total assets (1) | 2,169,555 | 578,514 | 266,781 | 362,605 | 617,087 | 55,626 | 288,942 | ||||||||||||||||||||||
Total deposits | 1,128,563 | 514,137 | 240,042 | 287,786 | n/m | n/m | 36,472 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 911,899 | $ | 197,021 | $ | 120,187 | $ | 286,976 | $ | 66,260 | $ | 35,984 | $ | 205,471 | |||||||||||||||
Total assets (1) | 2,170,557 | 579,870 | 263,957 | 374,376 | 610,364 | 52,647 | 289,343 | ||||||||||||||||||||||
Total deposits | 1,134,329 | 514,838 | 237,046 | 299,188 | n/m | n/m | 33,824 | ||||||||||||||||||||||
First Quarter 2014 | |||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 10,286 | $ | 5,071 | $ | 1,485 | $ | 2,507 | $ | 1,002 | $ | 377 | $ | (156 | ) | ||||||||||||||
Noninterest income | 12,481 | 2,580 | 3,062 | 2,028 | 4,015 | 309 | 487 | ||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 22,767 | 7,651 | 4,547 | 4,535 | 5,017 | 686 | 331 | ||||||||||||||||||||||
Provision for credit losses | 1,009 | 809 | 23 | 281 | 19 | 12 | (135 | ) | |||||||||||||||||||||
Noninterest expense | 22,238 | 4,495 | 3,359 | 2,190 | 3,075 | 7,401 | 1,718 | ||||||||||||||||||||||
Income (loss) before income taxes (FTE basis) | (480 | ) | 2,347 | 1,165 | 2,064 | 1,923 | (6,727 | ) | (1,252 | ) | |||||||||||||||||||
Income tax expense (benefit) (FTE basis) | (204 | ) | 879 | 436 | 773 | 610 | (1,847 | ) | (1,055 | ) | |||||||||||||||||||
Net income (loss) | $ | (276 | ) | $ | 1,468 | $ | 729 | $ | 1,291 | $ | 1,313 | $ | (4,880 | ) | $ | (197 | ) | ||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 919,482 | $ | 196,425 | $ | 115,945 | $ | 287,920 | $ | 63,696 | $ | 38,104 | $ | 217,392 | |||||||||||||||
Total assets (1) | 2,139,266 | 569,650 | 270,275 | 362,264 | 601,427 | 57,400 | 278,250 | ||||||||||||||||||||||
Total deposits | 1,118,178 | 504,849 | 242,792 | 285,594 | n/m | n/m | 34,982 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 916,217 | $ | 194,676 | $ | 116,482 | $ | 289,645 | $ | 64,598 | $ | 37,401 | $ | 213,415 | |||||||||||||||
Total assets (1) | 2,149,851 | 586,472 | 271,211 | 359,786 | 594,792 | 58,605 | 278,985 | ||||||||||||||||||||||
Total deposits | 1,133,650 | 521,453 | 244,051 | 286,285 | n/m | n/m | 34,854 | ||||||||||||||||||||||
(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 segment information is preliminary and based on company data available at the time of this filing. | 3 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Annual Results by Business Segment | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 40,821 | $ | 20,178 | $ | 5,836 | $ | 9,828 | $ | 3,986 | $ | 1,516 | $ | (523 | ) | ||||||||||||||
Noninterest income | 44,295 | 10,630 | 12,568 | 7,849 | 12,133 | 1,164 | (49 | ) | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 85,116 | 30,808 | 18,404 | 17,677 | 16,119 | 2,680 | (572 | ) | |||||||||||||||||||||
Provision for credit losses | 2,275 | 2,680 | 14 | 322 | 110 | 127 | (978 | ) | |||||||||||||||||||||
Noninterest expense | 75,117 | 17,856 | 13,647 | 8,262 | 11,771 | 20,643 | 2,938 | ||||||||||||||||||||||
Income (loss) before income taxes (FTE basis) | 7,724 | 10,272 | 4,743 | 9,093 | 4,238 | (18,090 | ) | (2,532 | ) | ||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 2,891 | 3,831 | 1,769 | 3,338 | 1,519 | (4,976 | ) | (2,590 | ) | ||||||||||||||||||||
Net income (loss) | $ | 4,833 | $ | 6,441 | $ | 2,974 | $ | 5,755 | $ | 2,719 | $ | (13,114 | ) | $ | 58 | ||||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 903,901 | $ | 197,115 | $ | 119,775 | $ | 286,493 | $ | 62,064 | $ | 35,941 | $ | 202,513 | |||||||||||||||
Total assets (1) | 2,145,590 | 577,340 | 267,511 | 365,665 | 607,535 | 52,134 | 275,405 | ||||||||||||||||||||||
Total deposits | 1,124,207 | 512,818 | 240,242 | 291,366 | n/m | n/m | 30,837 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 881,391 | $ | 202,000 | $ | 125,431 | $ | 288,905 | $ | 59,388 | $ | 33,055 | $ | 172,612 | |||||||||||||||
Total assets (1) | 2,104,534 | 589,048 | 274,887 | 357,081 | 579,512 | 45,958 | 258,048 | ||||||||||||||||||||||
Total deposits | 1,118,936 | 524,413 | 245,391 | 283,191 | n/m | n/m | 19,242 | ||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 43,124 | $ | 20,620 | $ | 6,064 | $ | 9,704 | $ | 4,224 | $ | 1,541 | $ | 971 | |||||||||||||||
Noninterest income | 46,677 | 11,313 | 11,726 | 7,800 | 11,166 | 2,915 | 1,757 | ||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 89,801 | 31,933 | 17,790 | 17,504 | 15,390 | 4,456 | 2,728 | ||||||||||||||||||||||
Provision for credit losses | 3,556 | 3,166 | 56 | 1,142 | 140 | (283 | ) | (665 | ) | ||||||||||||||||||||
Noninterest expense | 69,214 | 18,911 | 13,033 | 8,149 | 11,995 | 12,483 | 4,643 | ||||||||||||||||||||||
Income (loss) before income taxes (FTE basis) | 17,031 | 9,856 | 4,701 | 8,213 | 3,255 | (7,744 | ) | (1,250 | ) | ||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 5,600 | 3,613 | 1,724 | 3,013 | 2,101 | (2,839 | ) | (2,012 | ) | ||||||||||||||||||||
Net income (loss) | $ | 11,431 | $ | 6,243 | $ | 2,977 | $ | 5,200 | $ | 1,154 | $ | (4,905 | ) | $ | 762 | ||||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 918,641 | $ | 196,177 | $ | 111,023 | $ | 273,320 | $ | 60,058 | $ | 42,604 | $ | 235,459 | |||||||||||||||
Total assets (1) | 2,163,513 | 556,045 | 266,047 | 331,947 | 632,681 | 67,129 | 309,664 | ||||||||||||||||||||||
Total deposits | 1,089,735 | 489,464 | 242,161 | 265,733 | n/m | n/m | 35,443 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 928,233 | $ | 199,703 | $ | 115,846 | $ | 285,880 | $ | 67,381 | $ | 38,732 | $ | 220,691 | |||||||||||||||
Total assets (1) | 2,102,273 | 567,741 | 271,290 | 360,789 | 575,473 | 59,458 | 267,522 | ||||||||||||||||||||||
Total deposits | 1,119,271 | 502,054 | 244,901 | 294,559 | n/m | n/m | 28,165 | ||||||||||||||||||||||
(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 segment information is preliminary and based on company data available at the time of this filing. | 4 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||
Consumer Banking Segment Results | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 20,178 | $ | 20,620 | $ | 4,966 | $ | 5,081 | $ | 5,060 | $ | 5,071 | |||||||||||||
Noninterest income: | |||||||||||||||||||||||||
Card income | 4,844 | 4,756 | 1,325 | 1,219 | 1,152 | 1,148 | |||||||||||||||||||
Service charges | 4,160 | 3,979 | 1,043 | 1,085 | 1,039 | 993 | |||||||||||||||||||
Mortgage banking income | 813 | 1,916 | 192 | 206 | 237 | 178 | |||||||||||||||||||
All other income | 813 | 662 | 233 | 158 | 161 | 261 | |||||||||||||||||||
Total noninterest income | 10,630 | 11,313 | 2,793 | 2,668 | 2,589 | 2,580 | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 30,808 | 31,933 | 7,759 | 7,749 | 7,649 | 7,651 | |||||||||||||||||||
Provision for credit losses | 2,680 | �� | 3,166 | 653 | 668 | 550 | 809 | ||||||||||||||||||
Noninterest expense | 17,856 | 18,911 | 4,409 | 4,447 | 4,505 | 4,495 | |||||||||||||||||||
Income before income taxes (FTE basis) | 10,272 | 9,856 | 2,697 | 2,634 | 2,594 | 2,347 | |||||||||||||||||||
Income tax expense (FTE basis) | 3,831 | 3,613 | 1,036 | 956 | 960 | 879 | |||||||||||||||||||
Net income | $ | 6,441 | $ | 6,243 | $ | 1,661 | $ | 1,678 | $ | 1,634 | $ | 1,468 | |||||||||||||
Net interest yield (FTE basis) | 3.73 | % | 3.96 | % | 3.61 | % | 3.71 | % | 3.74 | % | 3.85 | % | |||||||||||||
Return on average allocated capital (1) | 21 | 20 | 22 | 22 | 22 | 20 | |||||||||||||||||||
Efficiency ratio (FTE basis) | 57.96 | 59.22 | 56.80 | 57.40 | 58.90 | 58.76 | |||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||
Average | |||||||||||||||||||||||||
Total loans and leases | $ | 197,115 | $ | 196,177 | $ | 199,215 | $ | 197,374 | $ | 195,413 | $ | 196,425 | |||||||||||||
Total earning assets (2) | 541,225 | 520,476 | 545,721 | 542,858 | 542,421 | 533,751 | |||||||||||||||||||
Total assets (2) | 577,340 | 556,045 | 582,115 | 578,927 | 578,514 | 569,650 | |||||||||||||||||||
Total deposits | 512,818 | 489,464 | 517,580 | 514,549 | 514,137 | 504,849 | |||||||||||||||||||
Allocated capital (1) | 30,000 | 30,700 | 30,000 | 30,000 | 30,000 | 30,000 | |||||||||||||||||||
Period end | |||||||||||||||||||||||||
Total loans and leases | $ | 202,000 | $ | 199,703 | $ | 202,000 | $ | 198,467 | $ | 197,021 | $ | 194,676 | |||||||||||||
Total earning assets (2) | 552,117 | 531,557 | 552,117 | 544,916 | 543,827 | 550,413 | |||||||||||||||||||
Total assets (2) | 589,048 | 567,741 | 589,048 | 580,381 | 579,870 | 586,472 | |||||||||||||||||||
Total deposits | 524,413 | 502,054 | 524,413 | 515,580 | 514,838 | 521,453 | |||||||||||||||||||
(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 25-27.) |
(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 segment information is preliminary and based on company data available at the time of this filing. | 5 |
Bank of America Corporation and Subsidiaries | |||||||||||||
Consumer Banking Annual Results | |||||||||||||
(Dollars in millions) | |||||||||||||
Year Ended December 31, 2014 | |||||||||||||
Total Consumer Banking | Deposits | Consumer Lending | |||||||||||
Net interest income (FTE basis) | $ | 20,178 | $ | 9,437 | $ | 10,741 | |||||||
Noninterest income: | |||||||||||||
Card income | 4,844 | 10 | 4,834 | ||||||||||
Service charges | 4,160 | 4,159 | 1 | ||||||||||
Mortgage banking income | 813 | — | 813 | ||||||||||
All other income | 813 | 415 | 398 | ||||||||||
Total noninterest income | 10,630 | 4,584 | 6,046 | ||||||||||
Total revenue, net of interest expense (FTE basis) | 30,808 | 14,021 | 16,787 | ||||||||||
Provision for credit losses | 2,680 | 268 | 2,412 | ||||||||||
Noninterest expense | 17,856 | 9,848 | 8,008 | ||||||||||
Income before income taxes (FTE basis) | 10,272 | 3,905 | 6,367 | ||||||||||
Income tax expense (FTE basis) | 3,831 | 1,456 | 2,375 | ||||||||||
Net income | $ | 6,441 | $ | 2,449 | $ | 3,992 | |||||||
Net interest yield (FTE basis) | 3.73 | % | 1.83 | % | 5.54 | % | |||||||
Return on average allocated capital (1) | 21 | 22 | 21 | ||||||||||
Efficiency ratio (FTE basis) | 57.96 | 70.24 | 47.70 | ||||||||||
Balance Sheet | |||||||||||||
Average | |||||||||||||
Total loans and leases | $ | 197,115 | $ | 6,059 | $ | 191,056 | |||||||
Total earning assets (2) | 541,225 | 516,142 | 193,923 | ||||||||||
Total assets (2) | 577,340 | 542,850 | 203,330 | ||||||||||
Total deposits | 512,818 | 511,923 | n/m | ||||||||||
Allocated capital (1) | 30,000 | 11,000 | 19,000 | ||||||||||
Period end | |||||||||||||
Total loans and leases | $ | 202,000 | $ | 5,951 | $ | 196,049 | |||||||
Total earning assets (2) | 552,117 | 527,045 | 199,097 | ||||||||||
Total assets (2) | 589,048 | 554,344 | 208,729 | ||||||||||
Total deposits | 524,413 | 523,348 | n/m | ||||||||||
Year Ended December 31, 2013 | |||||||||||||
Total Consumer Banking | Deposits | Consumer Lending | |||||||||||
Net interest income (FTE basis) | $ | 20,620 | $ | 9,028 | $ | 11,592 | |||||||
Noninterest income: | |||||||||||||
Card income | 4,756 | 12 | 4,744 | ||||||||||
Service charges | 3,979 | 3,978 | 1 | ||||||||||
Mortgage banking income | 1,916 | — | 1,916 | ||||||||||
All other income | 662 | 374 | 288 | ||||||||||
Total noninterest income | 11,313 | 4,364 | 6,949 | ||||||||||
Total revenue, net of interest expense (FTE basis) | 31,933 | 13,392 | 18,541 | ||||||||||
Provision for credit losses | 3,166 | 231 | 2,935 | ||||||||||
Noninterest expense | 18,911 | 10,249 | 8,662 | ||||||||||
Income before income taxes (FTE basis) | 9,856 | 2,912 | 6,944 | ||||||||||
Income tax expense (FTE basis) | 3,613 | 1,066 | 2,547 | ||||||||||
Net income | $ | 6,243 | $ | 1,846 | $ | 4,397 | |||||||
Net interest yield (FTE basis) | 3.96 | % | 1.83 | % | 5.92 | % | |||||||
Return on average allocated capital (1) | 20 | 18 | 21 | ||||||||||
Efficiency ratio (FTE basis) | 59.22 | 76.53 | 46.72 | ||||||||||
Balance Sheet | |||||||||||||
Average | |||||||||||||
Total loans and leases | $ | 196,177 | $ | 6,373 | $ | 189,804 | |||||||
Total earning assets (2) | 520,476 | 492,555 | 195,869 | ||||||||||
Total assets (2) | 556,045 | 519,133 | 204,860 | ||||||||||
Total deposits | 489,464 | 488,915 | n/m | ||||||||||
Allocated capital (1) | 30,700 | 10,100 | 20,600 | ||||||||||
Period end | |||||||||||||
Total loans and leases | $ | 199,703 | $ | 6,166 | $ | 193,537 | |||||||
Total earning assets (2) | 531,557 | 504,428 | 197,987 | ||||||||||
Total assets (2) | 567,741 | 531,290 | 207,309 | ||||||||||
Total deposits | 502,054 | 501,220 | n/m | ||||||||||
For footnotes see page 9.
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 6 |
Bank of America Corporation and Subsidiaries | |||||||||||||
Consumer Banking Quarterly Results | |||||||||||||
(Dollars in millions) | |||||||||||||
Fourth Quarter 2014 | |||||||||||||
Total Consumer Banking | Deposits | Consumer Lending | |||||||||||
Net interest income (FTE basis) | $ | 4,966 | $ | 2,312 | $ | 2,654 | |||||||
Noninterest income: | |||||||||||||
Card income | 1,325 | 3 | 1,322 | ||||||||||
Service charges | 1,043 | 1,042 | 1 | ||||||||||
Mortgage banking income | 192 | — | 192 | ||||||||||
All other income | 233 | 120 | 113 | ||||||||||
Total noninterest income | 2,793 | 1,165 | 1,628 | ||||||||||
Total revenue, net of interest expense (FTE basis) | 7,759 | 3,477 | 4,282 | ||||||||||
Provision for credit losses | 653 | 61 | 592 | ||||||||||
Noninterest expense | 4,409 | 2,490 | 1,919 | ||||||||||
Income before income taxes (FTE basis) | 2,697 | 926 | 1,771 | ||||||||||
Income tax expense (FTE basis) | 1,036 | 358 | 678 | ||||||||||
Net income | $ | 1,661 | $ | 568 | $ | 1,093 | |||||||
Net interest yield (FTE basis) | 3.61 | % | 1.76 | % | 5.38 | % | |||||||
Return on average allocated capital (1) | 22 | 20 | 23 | ||||||||||
Efficiency ratio (FTE basis) | 56.80 | 71.58 | 44.80 | ||||||||||
Balance Sheet | |||||||||||||
Average | |||||||||||||
Total loans and leases | $ | 199,215 | $ | 5,966 | $ | 193,249 | |||||||
Total earning assets (2) | 545,721 | 520,456 | 195,788 | ||||||||||
Total assets (2) | 582,115 | 547,358 | 205,280 | ||||||||||
Total deposits | 517,580 | 516,479 | n/m | ||||||||||
Allocated capital (1) | 30,000 | 11,000 | 19,000 | ||||||||||
Period end | |||||||||||||
Total loans and leases | $ | 202,000 | $ | 5,951 | $ | 196,049 | |||||||
Total earning assets (2) | 552,117 | 527,045 | 199,097 | ||||||||||
Total assets (2) | 589,048 | 554,344 | 208,729 | ||||||||||
Total deposits | 524,413 | 523,348 | n/m | ||||||||||
Third Quarter 2014 | |||||||||||||
Total Consumer Banking | Deposits | Consumer Lending | |||||||||||
Net interest income (FTE basis) | $ | 5,081 | $ | 2,389 | $ | 2,692 | |||||||
Noninterest income: | |||||||||||||
Card income | 1,219 | 2 | 1,217 | ||||||||||
Service charges | 1,085 | 1,085 | — | ||||||||||
Mortgage banking income | 206 | — | 206 | ||||||||||
All other income | 158 | 116 | 42 | ||||||||||
Total noninterest income | 2,668 | 1,203 | 1,465 | ||||||||||
Total revenue, net of interest expense (FTE basis) | 7,749 | 3,592 | 4,157 | ||||||||||
Provision for credit losses | 668 | 93 | 575 | ||||||||||
Noninterest expense | 4,447 | 2,420 | 2,027 | ||||||||||
Income before income taxes (FTE basis) | 2,634 | 1,079 | 1,555 | ||||||||||
Income tax expense (FTE basis) | 956 | 391 | 565 | ||||||||||
Net income | $ | 1,678 | $ | 688 | $ | 990 | |||||||
Net interest yield (FTE basis) | 3.71 | % | 1.83 | % | 5.51 | % | |||||||
Return on average allocated capital (1) | 22 | 25 | 21 | ||||||||||
Efficiency ratio (FTE basis) | 57.40 | 67.41 | 48.75 | ||||||||||
Balance Sheet | |||||||||||||
Average | |||||||||||||
Total loans and leases | $ | 197,374 | $ | 6,076 | $ | 191,298 | |||||||
Total earning assets (2) | 542,858 | 518,120 | 193,970 | ||||||||||
Total assets (2) | 578,927 | 544,618 | 203,541 | ||||||||||
Total deposits | 514,549 | 513,668 | n/m | ||||||||||
Allocated capital (1) | 30,000 | 11,000 | 19,000 | ||||||||||
Period end | |||||||||||||
Total loans and leases | $ | 198,467 | $ | 6,038 | $ | 192,429 | |||||||
Total earning assets (2) | 544,916 | 518,862 | 195,728 | ||||||||||
Total assets (2) | 580,381 | 545,295 | 204,760 | ||||||||||
Total deposits | 515,580 | 514,437 | n/m | ||||||||||
For footnotes see page 9.
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 7 |
Bank of America Corporation and Subsidiaries | |||||||||||||
Consumer Banking Quarterly Results (continued) | |||||||||||||
(Dollars in millions) | |||||||||||||
Second Quarter 2014 | |||||||||||||
Total Consumer Banking | Deposits | Consumer Lending | |||||||||||
Net interest income (FTE basis) | $ | 5,060 | $ | 2,396 | $ | 2,664 | |||||||
Noninterest income: | |||||||||||||
Card income | 1,152 | 3 | 1,149 | ||||||||||
Service charges | 1,039 | 1,039 | — | ||||||||||
Mortgage banking income | 237 | — | 237 | ||||||||||
All other income | 161 | 88 | 73 | ||||||||||
Total noninterest income | 2,589 | 1,130 | 1,459 | ||||||||||
Total revenue, net of interest expense (FTE basis) | 7,649 | 3,526 | 4,123 | ||||||||||
Provision for credit losses | 550 | 50 | 500 | ||||||||||
Noninterest expense | 4,505 | 2,473 | 2,032 | ||||||||||
Income before income taxes (FTE basis) | 2,594 | 1,003 | 1,591 | ||||||||||
Income tax expense (FTE basis) | 960 | 371 | 589 | ||||||||||
Net income | $ | 1,634 | $ | 632 | $ | 1,002 | |||||||
Net interest yield (FTE basis) | 3.74 | % | 1.86 | % | 5.56 | % | |||||||
Return on average allocated capital (1) | 22 | 23 | 21 | ||||||||||
Efficiency ratio (FTE basis) | 58.90 | 70.12 | 49.29 | ||||||||||
Balance Sheet | |||||||||||||
Average | |||||||||||||
Total loans and leases | $ | 195,413 | $ | 6,103 | $ | 189,310 | |||||||
Total earning assets (2) | 542,421 | 517,509 | 192,238 | ||||||||||
Total assets (2) | 578,514 | 544,248 | 201,592 | ||||||||||
Total deposits | 514,137 | 513,326 | n/m | ||||||||||
Allocated capital (1) | 30,000 | 11,000 | 19,000 | ||||||||||
Period end | |||||||||||||
Total loans and leases | $ | 197,021 | $ | 6,127 | $ | 190,894 | |||||||
Total earning assets (2) | 543,827 | 518,429 | 194,220 | ||||||||||
Total assets (2) | 579,870 | 544,925 | 203,767 | ||||||||||
Total deposits | 514,838 | 513,944 | n/m | ||||||||||
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 8 |
Bank of America Corporation and Subsidiaries | |||||||||||||
Consumer Banking Quarterly Results (continued) | |||||||||||||
(Dollars in millions) | |||||||||||||
First Quarter 2014 | |||||||||||||
Total Consumer Banking | Deposits | Consumer Lending | |||||||||||
Net interest income (FTE basis) | $ | 5,071 | $ | 2,340 | $ | 2,731 | |||||||
Noninterest income: | |||||||||||||
Card income | 1,148 | 2 | 1,146 | ||||||||||
Service charges | 993 | 993 | — | ||||||||||
Mortgage banking income | 178 | — | 178 | ||||||||||
All other income | 261 | 91 | 170 | ||||||||||
Total noninterest income | 2,580 | 1,086 | 1,494 | ||||||||||
Total revenue, net of interest expense (FTE basis) | 7,651 | 3,426 | 4,225 | ||||||||||
Provision for credit losses | 809 | 64 | 745 | ||||||||||
Noninterest expense | 4,495 | 2,465 | 2,030 | ||||||||||
Income before income taxes (FTE basis) | 2,347 | 897 | 1,450 | ||||||||||
Income tax expense (FTE basis) | 879 | 336 | 543 | ||||||||||
Net income | $ | 1,468 | $ | 561 | $ | 907 | |||||||
Net interest yield (FTE basis) | 3.85 | % | 1.87 | % | 5.72 | % | |||||||
Return on average allocated capital (1) | 20 | 21 | 19 | ||||||||||
Efficiency ratio (FTE basis) | 58.76 | 71.97 | 48.05 | ||||||||||
Balance Sheet | |||||||||||||
Average | |||||||||||||
Total loans and leases | $ | 196,425 | $ | 6,092 | $ | 190,333 | |||||||
Total earning assets (2) | 533,751 | 508,332 | 193,671 | ||||||||||
Total assets (2) | 569,650 | 535,023 | 202,879 | ||||||||||
Total deposits | 504,849 | 504,065 | n/m | ||||||||||
Allocated capital (1) | 30,000 | 11,000 | 19,000 | ||||||||||
Period end | |||||||||||||
Total loans and leases | $ | 194,676 | $ | 6,110 | $ | 188,566 | |||||||
Total earning assets (2) | 550,413 | 524,853 | 192,570 | ||||||||||
Total assets (2) | 586,472 | 551,609 | 201,873 | ||||||||||
Total deposits | 521,453 | 520,580 | n/m | ||||||||||
(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 25-27.) |
(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 Banking. |
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 9 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||
Consumer Banking Key Indicators | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Average deposit balances | |||||||||||||||||||||||||
Checking | $ | 236,140 | $ | 215,510 | $ | 241,254 | $ | 238,133 | $ | 236,197 | $ | 228,815 | |||||||||||||
Savings | 44,616 | 42,134 | 43,972 | 45,124 | 45,769 | 43,588 | |||||||||||||||||||
MMS | 168,493 | 157,328 | 172,992 | 168,815 | 167,058 | 165,016 | |||||||||||||||||||
CDs and IRAs | 60,766 | 71,163 | 56,476 | 59,666 | 62,293 | 64,731 | |||||||||||||||||||
Non-U.S. and other | 2,803 | 3,329 | 2,886 | 2,811 | 2,820 | 2,699 | |||||||||||||||||||
Total average deposit balances | $ | 512,818 | $ | 489,464 | $ | 517,580 | $ | 514,549 | $ | 514,137 | $ | 504,849 | |||||||||||||
Deposit spreads (excludes noninterest costs) | |||||||||||||||||||||||||
Checking | 2.08 | % | 2.07 | % | 2.08 | % | 2.08 | % | 2.07 | % | 2.07 | % | |||||||||||||
Savings | 2.31 | 2.21 | 2.32 | 2.32 | 2.31 | 2.29 | |||||||||||||||||||
MMS | 1.18 | 1.08 | 1.21 | 1.19 | 1.17 | 1.14 | |||||||||||||||||||
CDs and IRAs | 0.50 | 0.52 | 0.52 | 0.50 | 0.49 | 0.50 | |||||||||||||||||||
Non-U.S. and other | 0.46 | 1.09 | 0.40 | 0.40 | 0.42 | 0.65 | |||||||||||||||||||
Total deposit spreads | 1.60 | 1.53 | 1.63 | 1.61 | 1.60 | 1.57 | |||||||||||||||||||
Client brokerage assets | $ | 113,763 | $ | 96,048 | $ | 113,763 | $ | 108,533 | $ | 105,926 | $ | 100,206 | |||||||||||||
Online banking active accounts (units in thousands) | 30,904 | 29,950 | 30,904 | 30,821 | 30,429 | 30,470 | |||||||||||||||||||
Mobile banking active accounts (units in thousands) | 16,539 | 14,395 | 16,539 | 16,107 | 15,475 | 14,986 | |||||||||||||||||||
Banking centers | 4,855 | 5,151 | 4,855 | 4,947 | 5,023 | 5,095 | |||||||||||||||||||
ATMs | 15,838 | 16,259 | 15,838 | 15,675 | 15,976 | 16,214 | |||||||||||||||||||
Total U.S. credit card (1) | |||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Average credit card outstandings | $ | 88,962 | $ | 90,369 | $ | 89,381 | $ | 88,866 | $ | 88,058 | $ | 89,545 | |||||||||||||
Ending credit card outstandings | 91,879 | 92,338 | 91,879 | 89,026 | 89,020 | 87,692 | |||||||||||||||||||
Credit quality | |||||||||||||||||||||||||
Net charge-offs | $ | 2,638 | $ | 3,376 | $ | 612 | $ | 625 | $ | 683 | $ | 718 | |||||||||||||
2.96 | % | 3.74 | % | 2.71 | % | 2.79 | % | 3.11 | % | 3.25 | % | ||||||||||||||
30+ delinquency | $ | 1,701 | $ | 2,074 | $ | 1,701 | $ | 1,702 | $ | 1,698 | $ | 1,878 | |||||||||||||
1.85 | % | 2.25 | % | 1.85 | % | 1.91 | % | 1.91 | % | 2.14 | % | ||||||||||||||
90+ delinquency | $ | 866 | $ | 1,053 | $ | 866 | $ | 831 | $ | 868 | $ | 966 | |||||||||||||
0.94 | % | 1.14 | % | 0.94 | % | 0.93 | % | 0.98 | % | 1.10 | % | ||||||||||||||
Other Total U.S. credit card indicators (1) | |||||||||||||||||||||||||
Gross interest yield | 9.35 | % | 9.73 | % | 9.26 | % | 9.34 | % | 9.30 | % | 9.48 | % | |||||||||||||
Risk adjusted margin | 9.44 | 8.68 | 9.96 | 9.33 | 8.97 | 9.49 | |||||||||||||||||||
New accounts (in thousands) | 4,541 | 3,911 | 1,184 | 1,202 | 1,128 | 1,027 | |||||||||||||||||||
Purchase volumes | $ | 212,088 | $ | 205,914 | $ | 55,858 | $ | 53,784 | $ | 53,583 | $ | 48,863 | |||||||||||||
Debit card data | |||||||||||||||||||||||||
Purchase volumes | $ | 272,576 | $ | 267,087 | $ | 69,204 | $ | 67,990 | $ | 69,492 | $ | 65,890 | |||||||||||||
For footnotes see page 11.
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 10 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||
Consumer Banking Key Indicators (continued) | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Loan production: | |||||||||||||||||||||||||
Total (2) | |||||||||||||||||||||||||
First mortgage | $ | 43,290 | $ | 83,421 | $ | 11,616 | $ | 11,725 | $ | 11,099 | $ | 8,850 | |||||||||||||
Home equity | 11,233 | 6,361 | 3,420 | 3,225 | 2,604 | 1,984 | |||||||||||||||||||
Consumer Banking | |||||||||||||||||||||||||
First mortgage | $ | 32,340 | $ | 66,913 | $ | 8,316 | $ | 8,861 | $ | 8,461 | $ | 6,702 | |||||||||||||
Home equity | 10,286 | 5,498 | 3,129 | 2,970 | 2,396 | 1,791 | |||||||||||||||||||
Mortgage banking income | |||||||||||||||||||||||||
Consumer Lending: | |||||||||||||||||||||||||
Core production revenue | $ | 875 | $ | 2,097 | $ | 214 | $ | 239 | $ | 233 | $ | 189 | |||||||||||||
Representations and warranties provision | 10 | (104 | ) | (4 | ) | (15 | ) | 22 | 7 | ||||||||||||||||
Other consumer mortgage banking income (3) | (72 | ) | (77 | ) | (18 | ) | (18 | ) | (18 | ) | (18 | ) | |||||||||||||
Total Consumer Lending mortgage banking income | 813 | 1,916 | 192 | 206 | 237 | 178 | |||||||||||||||||||
LAS mortgage banking income (4) | 1,053 | 2,670 | 241 | 152 | 369 | 291 | |||||||||||||||||||
Eliminations (5) | (303 | ) | (712 | ) | (81 | ) | (86 | ) | (79 | ) | (57 | ) | |||||||||||||
Total consolidated mortgage banking income | $ | 1,563 | $ | 3,874 | $ | 352 | $ | 272 | $ | 527 | $ | 412 | |||||||||||||
(1) | In addition to the U.S. credit card portfolio in Consumer Banking, the remaining U.S. credit card portfolio is in GWIM. |
(2) | In addition to loan production in Consumer Banking, the remaining first mortgage and home equity loan production is primarily in GWIM. |
(3) | Primarily intercompany charge for loan servicing from Legacy Assets & Servicing. |
(4) | Amounts for Legacy Assets & Servicing are included in this Consumer Banking table to show the components of consolidated mortgage banking income. |
(5) | Includes the effect of transfers of mortgage loans from Consumer Banking to the ALM portfolio included in All Other and intercompany charge for loan servicing. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 11 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||
Global Wealth & Investment Management Segment Results | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 5,836 | $ | 6,064 | $ | 1,407 | $ | 1,459 | $ | 1,485 | $ | 1,485 | |||||||||||||
Noninterest income: | |||||||||||||||||||||||||
Investment and brokerage services | 10,722 | 9,709 | 2,763 | 2,713 | 2,642 | 2,604 | |||||||||||||||||||
All other income | 1,846 | 2,017 | 432 | 494 | 462 | 458 | |||||||||||||||||||
Total noninterest income | 12,568 | 11,726 | 3,195 | 3,207 | 3,104 | 3,062 | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 18,404 | 17,790 | 4,602 | 4,666 | 4,589 | 4,547 | |||||||||||||||||||
Provision for credit losses | 14 | 56 | 14 | (15 | ) | (8 | ) | 23 | |||||||||||||||||
Noninterest expense | 13,647 | 13,033 | 3,440 | 3,403 | 3,445 | 3,359 | |||||||||||||||||||
Income before income taxes (FTE basis) | 4,743 | 4,701 | 1,148 | 1,278 | 1,152 | 1,165 | |||||||||||||||||||
Income tax expense (FTE basis) | 1,769 | 1,724 | 442 | 465 | 426 | 436 | |||||||||||||||||||
Net income | $ | 2,974 | $ | 2,977 | $ | 706 | $ | 813 | $ | 726 | $ | 729 | |||||||||||||
Net interest yield (FTE basis) | 2.34 | % | 2.46 | % | 2.24 | % | 2.33 | % | 2.40 | % | 2.40 | % | |||||||||||||
Return on average allocated capital (1) | 25 | 30 | 23 | 27 | 24 | 25 | |||||||||||||||||||
Efficiency ratio (FTE basis) | 74.15 | 73.26 | 74.76 | 72.94 | 75.07 | 73.86 | |||||||||||||||||||
Balance sheet | |||||||||||||||||||||||||
Average | |||||||||||||||||||||||||
Total loans and leases | $ | 119,775 | $ | 111,023 | $ | 123,544 | $ | 121,002 | $ | 118,512 | $ | 115,945 | |||||||||||||
Total earning assets (2) | 248,979 | 246,653 | 248,613 | 248,223 | 248,380 | 250,732 | |||||||||||||||||||
Total assets (2) | 267,511 | 266,047 | 266,716 | 266,324 | 266,781 | 270,275 | |||||||||||||||||||
Total deposits | 240,242 | 242,161 | 238,835 | 239,352 | 240,042 | 242,792 | |||||||||||||||||||
Allocated capital (1) | 12,000 | 10,000 | 12,000 | 12,000 | 12,000 | 12,000 | |||||||||||||||||||
Period end | |||||||||||||||||||||||||
Total loans and leases | $ | 125,431 | $ | 115,846 | $ | 125,431 | $ | 122,395 | $ | 120,187 | $ | 116,482 | |||||||||||||
Total earning assets (2) | 256,519 | 251,209 | 256,519 | 248,072 | 245,555 | 251,779 | |||||||||||||||||||
Total assets (2) | 274,887 | 271,290 | 274,887 | 266,240 | 263,957 | 271,211 | |||||||||||||||||||
Total deposits | 245,391 | 244,901 | 245,391 | 238,710 | 237,046 | 244,051 | |||||||||||||||||||
(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 25-27.) |
(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 segment information is preliminary and based on company data available at the time of this filing. | 12 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||
Global Wealth & Investment Management Key Indicators | |||||||||||||||||||||||||
(Dollars in millions, except as noted) | |||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Merrill Lynch Global Wealth Management | $ | 15,256 | $ | 14,771 | $ | 3,827 | $ | 3,874 | $ | 3,791 | $ | 3,764 | |||||||||||||
U.S. Trust | 3,084 | 2,953 | 758 | 775 | 783 | 768 | |||||||||||||||||||
Other (1) | 64 | 66 | 17 | 17 | 15 | 15 | |||||||||||||||||||
Total revenues | $ | 18,404 | $ | 17,790 | $ | 4,602 | $ | 4,666 | $ | 4,589 | $ | 4,547 | |||||||||||||
Client Balances | |||||||||||||||||||||||||
Client Balances by Business | |||||||||||||||||||||||||
Merrill Lynch Global Wealth Management | $ | 2,033,801 | $ | 1,916,803 | $ | 2,033,801 | $ | 2,004,391 | $ | 2,017,051 | $ | 1,946,922 | |||||||||||||
U.S. Trust | 387,491 | 376,487 | 387,491 | 381,054 | 380,281 | 378,177 | |||||||||||||||||||
Other (1) | 76,705 | 73,148 | 76,705 | 76,640 | 70,836 | 70,720 | |||||||||||||||||||
Client Balances by Type | |||||||||||||||||||||||||
Assets under management | $ | 902,872 | $ | 821,449 | $ | 902,872 | $ | 888,006 | $ | 878,741 | $ | 841,818 | |||||||||||||
Brokerage assets | 1,081,434 | 1,045,122 | 1,081,434 | 1,073,858 | 1,091,558 | 1,054,052 | |||||||||||||||||||
Assets in custody | 139,555 | 136,190 | 139,555 | 135,886 | 137,391 | 136,342 | |||||||||||||||||||
Deposits | 245,391 | 244,901 | 245,391 | 238,710 | 237,046 | 244,051 | |||||||||||||||||||
Loans and leases (2) | 128,745 | 118,776 | 128,745 | 125,625 | 123,432 | 119,556 | |||||||||||||||||||
Total client balances | $ | 2,497,997 | $ | 2,366,438 | $ | 2,497,997 | $ | 2,462,085 | $ | 2,468,168 | $ | 2,395,819 | |||||||||||||
Assets Under Management Flows | |||||||||||||||||||||||||
Liquidity assets under management (3) | $ | 3,361 | $ | 6,502 | $ | (255 | ) | $ | 5,910 | $ | 135 | $ | (2,429 | ) | |||||||||||
Long-term assets under management (4) | 49,800 | 47,819 | 9,380 | 11,168 | 11,870 | 17,382 | |||||||||||||||||||
Total assets under management flows | $ | 53,161 | $ | 54,321 | $ | 9,125 | $ | 17,078 | $ | 12,005 | $ | 14,953 | |||||||||||||
Associates (5) | |||||||||||||||||||||||||
Number of Financial Advisors | 16,035 | 15,317 | 16,035 | 15,867 | 15,560 | 15,323 | |||||||||||||||||||
Total Wealth Advisors | 17,231 | 16,517 | 17,231 | 17,039 | 16,721 | 16,481 | |||||||||||||||||||
Total Client Facing Professionals | 19,750 | 19,217 | 19,750 | 19,727 | 19,416 | 19,199 | |||||||||||||||||||
Merrill Lynch Global Wealth Management Metrics | |||||||||||||||||||||||||
Financial Advisor Productivity (6) (in thousands) | $ | 1,065 | $ | 1,005 | $ | 1,070 | $ | 1,077 | $ | 1,060 | $ | 1,056 | |||||||||||||
U.S. Trust Metrics | |||||||||||||||||||||||||
Client Facing Professionals | 2,155 | 2,091 | 2,155 | 2,135 | 2,110 | 2,117 | |||||||||||||||||||
(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 Banking segment of 1,950, 1,868, 1,716, 1,598 and 1,545 at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 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 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 segment information is preliminary and based on company data available at the time of this filing. | 13 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||
Global Banking Segment Results | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 9,828 | $ | 9,704 | $ | 2,420 | $ | 2,455 | $ | 2,446 | $ | 2,507 | ||||||||||||
Noninterest income: | ||||||||||||||||||||||||
Service charges | 2,900 | 2,967 | 712 | 730 | 725 | 733 | ||||||||||||||||||
Investment banking fees | 3,213 | 3,234 | 830 | 727 | 834 | 822 | ||||||||||||||||||
All other income | 1,736 | 1,599 | 370 | 451 | 442 | 473 | ||||||||||||||||||
Total noninterest income | 7,849 | 7,800 | 1,912 | 1,908 | 2,001 | 2,028 | ||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 17,677 | 17,504 | 4,332 | 4,363 | 4,447 | 4,535 | ||||||||||||||||||
Provision for credit losses | 322 | 1,142 | (31 | ) | (64 | ) | 136 | 281 | ||||||||||||||||
Noninterest expense | 8,262 | 8,149 | 2,002 | 2,050 | 2,020 | 2,190 | ||||||||||||||||||
Income before income taxes (FTE basis) | 9,093 | 8,213 | 2,361 | 2,377 | 2,291 | 2,064 | ||||||||||||||||||
Income tax expense (FTE basis) | 3,338 | 3,013 | 850 | 866 | 849 | 773 | ||||||||||||||||||
Net income | $ | 5,755 | $ | 5,200 | $ | 1,511 | $ | 1,511 | $ | 1,442 | $ | 1,291 | ||||||||||||
Net interest yield (FTE basis) | 3.07 | % | 3.38 | % | 2.96 | % | 3.00 | % | 3.10 | % | 3.23 | % | ||||||||||||
Return on average allocated capital (1) | 17 | 20 | 18 | 18 | 17 | 16 | ||||||||||||||||||
Efficiency ratio (FTE basis) | 46.74 | 46.56 | 46.20 | 46.97 | 45.43 | 48.30 | ||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 286,493 | $ | 273,320 | $ | 287,017 | $ | 283,284 | $ | 287,795 | $ | 287,920 | ||||||||||||
Total earnings assets (2) | 320,194 | 287,228 | 324,388 | 324,688 | 316,860 | 314,685 | ||||||||||||||||||
Total assets (2) | 365,665 | 331,947 | 369,292 | 368,394 | 362,605 | 362,264 | ||||||||||||||||||
Total deposits | 291,366 | 265,733 | 296,205 | 295,715 | 287,786 | 285,594 | ||||||||||||||||||
Allocated capital (1) | 33,500 | 25,400 | 33,500 | 33,500 | 33,500 | 33,500 | ||||||||||||||||||
Period end | ||||||||||||||||||||||||
Total loans and leases | $ | 288,905 | $ | 285,880 | $ | 288,905 | $ | 284,968 | $ | 286,976 | $ | 289,645 | ||||||||||||
Total earnings assets (2) | 311,782 | 316,349 | 311,782 | 314,727 | 328,370 | 314,565 | ||||||||||||||||||
Total assets (2) | 357,081 | 360,789 | 357,081 | 358,786 | 374,376 | 359,786 | ||||||||||||||||||
Total deposits | 283,191 | 294,559 | 283,191 | 286,128 | 299,188 | 286,285 | ||||||||||||||||||
(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 25-27.) |
(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 segment information is preliminary and based on company data available at the time of this filing. | 14 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||
Global Banking Key Indicators | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Investment Banking fees (1) | |||||||||||||||||||||||||
Advisory (2) | $ | 1,098 | $ | 1,019 | $ | 316 | $ | 291 | $ | 234 | $ | 257 | |||||||||||||
Debt issuance | 1,532 | 1,620 | 379 | 318 | 388 | 447 | |||||||||||||||||||
Equity issuance | 583 | 595 | 135 | 118 | 212 | 118 | |||||||||||||||||||
Total Investment Banking fees (3) | $ | 3,213 | $ | 3,234 | $ | 830 | $ | 727 | $ | 834 | $ | 822 | |||||||||||||
Business Lending | |||||||||||||||||||||||||
Corporate | $ | 3,420 | $ | 3,432 | $ | 800 | $ | 878 | $ | 830 | $ | 912 | |||||||||||||
Commercial | 3,942 | 3,967 | 991 | 934 | 1,006 | 1,011 | |||||||||||||||||||
Business Banking | 364 | 320 | 92 | 91 | 92 | 89 | |||||||||||||||||||
Total Business Lending revenue | $ | 7,726 | $ | 7,719 | $ | 1,883 | $ | 1,903 | $ | 1,928 | $ | 2,012 | |||||||||||||
Global Transaction Services | |||||||||||||||||||||||||
Corporate | $ | 3,028 | $ | 2,804 | $ | 755 | $ | 776 | $ | 761 | $ | 736 | |||||||||||||
Commercial | 2,887 | 2,939 | 710 | 727 | 717 | 733 | |||||||||||||||||||
Business Banking | 714 | 705 | 182 | 179 | 176 | 177 | |||||||||||||||||||
Total Global Transaction Services revenue | $ | 6,629 | $ | 6,448 | $ | 1,647 | $ | 1,682 | $ | 1,654 | $ | 1,646 | |||||||||||||
Average deposit balances | |||||||||||||||||||||||||
Interest-bearing | $ | 80,630 | $ | 78,648 | $ | 73,504 | $ | 81,218 | $ | 84,123 | $ | 83,782 | |||||||||||||
Noninterest-bearing | 210,736 | 187,085 | 222,701 | 214,497 | 203,663 | 201,812 | |||||||||||||||||||
Total average deposits | $ | 291,366 | $ | 265,733 | $ | 296,205 | $ | 295,715 | $ | 287,786 | $ | 285,594 | |||||||||||||
Loan spread | 1.73 | % | 1.80 | % | 1.69 | % | 1.70 | % | 1.72 | % | 1.80 | % | |||||||||||||
Provision for credit losses | $ | 322 | $ | 1,142 | $ | (31 | ) | $ | (64 | ) | $ | 136 | $ | 281 | |||||||||||
Credit quality (4, 5) | |||||||||||||||||||||||||
Reservable utilized criticized exposure | $ | 9,662 | $ | 10,889 | $ | 9,662 | $ | 10,314 | $ | 10,788 | $ | 10,965 | |||||||||||||
3.07 | % | 3.49 | % | 3.07 | % | 3.32 | % | 3.46 | % | 3.48 | % | ||||||||||||||
Nonperforming loans, leases and foreclosed properties | $ | 892 | $ | 1,019 | $ | 892 | $ | 1,080 | $ | 1,023 | $ | 1,009 | |||||||||||||
0.31 | % | 0.36 | % | 0.31 | % | 0.38 | % | 0.36 | % | 0.35 | % | ||||||||||||||
Average loans and leases by product | |||||||||||||||||||||||||
U.S. commercial | $ | 151,772 | $ | 143,566 | $ | 153,256 | $ | 150,918 | $ | 151,923 | $ | 150,971 | |||||||||||||
Commercial real estate | 43,194 | 39,228 | 41,445 | 41,818 | 44,437 | 45,132 | |||||||||||||||||||
Commercial lease financing | 25,205 | 24,760 | 25,105 | 25,127 | 25,165 | 25,427 | |||||||||||||||||||
Non-U.S. commercial | 66,304 | 65,747 | 67,192 | 65,401 | 66,250 | 66,371 | |||||||||||||||||||
Other | 18 | 19 | 19 | 20 | 20 | 19 | |||||||||||||||||||
Total average loans and leases | $ | 286,493 | $ | 273,320 | $ | 287,017 | $ | 283,284 | $ | 287,795 | $ | 287,920 | |||||||||||||
Total Corporation Investment Banking fees | |||||||||||||||||||||||||
Advisory (2) | $ | 1,207 | $ | 1,125 | $ | 341 | $ | 316 | $ | 264 | $ | 286 | |||||||||||||
Debt issuance | 3,583 | 3,804 | 883 | 784 | 891 | 1,025 | |||||||||||||||||||
Equity issuance | 1,490 | 1,472 | 348 | 315 | 514 | 313 | |||||||||||||||||||
Total investment banking fees including self-led deals | 6,280 | 6,401 | 1,572 | 1,415 | 1,669 | 1,624 | |||||||||||||||||||
Self-led deals | (215 | ) | (275 | ) | (31 | ) | (64 | ) | (38 | ) | (82 | ) | |||||||||||||
Total Investment Banking fees | $ | 6,065 | $ | 6,126 | $ | 1,541 | $ | 1,351 | $ | 1,631 | $ | 1,542 | |||||||||||||
(1) | Investment banking fees represent total investment banking fees for Global Banking inclusive of self-led deals and fees included within Business Lending. |
(2) | Advisory includes fees on debt and equity advisory and mergers and acquisitions. |
(3) | Investment banking fees represent only the fee component of Global Banking and do not include certain less significant items shared with the Investment Banking Group under internal revenue sharing agreements. |
(4) | Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure is on an end-of-period basis and is also shown as a percentage of total commercial utilized reservable criticized exposure, including loans and leases, standby letters of credit, financial guarantees, commercial letters of credit and bankers' acceptances. |
(5) | Nonperforming loans, leases and foreclosed properties are on an end-of-period basis. The nonperforming ratio is nonperforming assets divided by loans, leases and foreclosed properties. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 15 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||
Global Markets Segment Results (1) | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 3,986 | $ | 4,224 | $ | 1,032 | $ | 994 | $ | 958 | $ | 1,002 | ||||||||||||
Noninterest income: | ||||||||||||||||||||||||
Investment and brokerage services | 2,163 | 2,046 | 540 | 522 | 540 | 561 | ||||||||||||||||||
Investment banking fees | 2,743 | 2,724 | 670 | 577 | 760 | 736 | ||||||||||||||||||
Trading account profits | 5,997 | 6,734 | 76 | 1,786 | 1,768 | 2,367 | ||||||||||||||||||
All other income (loss) | 1,230 | (338 | ) | 52 | 263 | 564 | 351 | |||||||||||||||||
Total noninterest income | 12,133 | 11,166 | 1,338 | 3,148 | 3,632 | 4,015 | ||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (2) | 16,119 | 15,390 | 2,370 | 4,142 | 4,590 | 5,017 | ||||||||||||||||||
Provision for credit losses | 110 | 140 | 26 | 45 | 20 | 19 | ||||||||||||||||||
Noninterest expense | 11,771 | 11,995 | 2,500 | 3,335 | 2,861 | 3,075 | ||||||||||||||||||
Income (loss) before income taxes (FTE basis) | 4,238 | 3,255 | (156 | ) | 762 | 1,709 | 1,923 | |||||||||||||||||
Income tax expense (benefit) (FTE basis) | 1,519 | 2,101 | (84 | ) | 389 | 604 | 610 | |||||||||||||||||
Net income (loss) | $ | 2,719 | $ | 1,154 | $ | (72 | ) | $ | 373 | $ | 1,105 | $ | 1,313 | |||||||||||
Return on average allocated capital (3) | 8 | % | 4 | % | n/m | 4 | % | 13 | % | 16 | % | |||||||||||||
Efficiency ratio (FTE basis) | 73.03 | 77.94 | 105.48 | % | 80.51 | 62.34 | 61.30 | |||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total trading-related assets (4) | $ | 449,814 | $ | 468,934 | $ | 455,535 | $ | 446,490 | $ | 459,938 | $ | 437,128 | ||||||||||||
Total loans and leases | 62,064 | 60,058 | 58,094 | 62,939 | 63,579 | 63,696 | ||||||||||||||||||
Total earning assets (4) | 461,179 | 481,433 | 451,922 | 457,814 | 478,191 | 456,879 | ||||||||||||||||||
Total assets | 607,535 | 632,681 | 611,713 | 599,884 | 617,087 | 601,427 | ||||||||||||||||||
Allocated capital (3) | 34,000 | 30,000 | 34,000 | 34,000 | 34,000 | 34,000 | ||||||||||||||||||
Period end | ||||||||||||||||||||||||
Total trading-related assets (4) | $ | 418,860 | $ | 411,080 | $ | 418,860 | $ | 433,597 | $ | 443,383 | $ | 430,894 | ||||||||||||
Total loans and leases | 59,388 | 67,381 | 59,388 | 62,645 | 66,260 | 64,598 | ||||||||||||||||||
Total earning assets (4) | 421,799 | 432,807 | 421,799 | 443,363 | 465,380 | 455,103 | ||||||||||||||||||
Total assets | 579,512 | 575,473 | 579,512 | 598,668 | 610,364 | 594,792 | ||||||||||||||||||
Trading-related assets (average) | ||||||||||||||||||||||||
Trading account securities | $ | 201,955 | $ | 215,885 | $ | 201,867 | $ | 201,963 | $ | 200,725 | $ | 203,281 | ||||||||||||
Reverse repurchases | 116,085 | 137,670 | 118,286 | 116,853 | 119,823 | 109,271 | ||||||||||||||||||
Securities borrowed | 85,098 | 65,532 | 81,071 | 83,369 | 94,989 | 80,981 | ||||||||||||||||||
Derivative assets | 46,676 | 49,847 | 54,311 | 44,305 | 44,401 | 43,595 | ||||||||||||||||||
Total trading-related assets (4) | $ | 449,814 | $ | 468,934 | $ | 455,535 | $ | 446,490 | $ | 459,938 | $ | 437,128 | ||||||||||||
(1) | In 2014, the results for structured liabilities including debit valuation adjustment were moved into Global Markets from All Other to better align the performance and risk management of these instruments. As such, net debit valuation adjustment in Global Markets 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 17. |
(3) | 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 25-27.) |
(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 segment information is preliminary and based on company data available at the time of this filing. | 16 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||
Global Markets Key Indicators | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Sales and trading revenue (1) | ||||||||||||||||||||||||
Fixed income, currency and commodities | $ | 8,706 | $ | 8,231 | $ | 879 | $ | 2,381 | $ | 2,422 | $ | 3,024 | ||||||||||||
Equities | 4,215 | 4,180 | 862 | 1,105 | 1,055 | 1,193 | ||||||||||||||||||
Total sales and trading revenue | $ | 12,921 | $ | 12,411 | $ | 1,741 | $ | 3,486 | $ | 3,477 | $ | 4,217 | ||||||||||||
Sales and trading revenue, excluding debit valuation adjustment and funding valuation adjustment (2) | ||||||||||||||||||||||||
Fixed income, currency and commodities | $ | 9,013 | $ | 9,345 | $ | 1,456 | $ | 2,247 | $ | 2,366 | $ | 2,944 | ||||||||||||
Equities | 4,148 | 4,224 | 911 | 1,034 | 1,042 | 1,161 | ||||||||||||||||||
Total sales and trading revenue, excluding debit valuation adjustment and funding valuation adjustment | $ | 13,161 | $ | 13,569 | $ | 2,367 | $ | 3,281 | $ | 3,408 | $ | 4,105 | ||||||||||||
Sales and trading revenue breakdown | ||||||||||||||||||||||||
Net interest income | $ | 3,643 | $ | 3,891 | $ | 943 | $ | 914 | $ | 872 | $ | 914 | ||||||||||||
Commissions | 2,163 | 2,046 | 540 | 522 | 540 | 561 | ||||||||||||||||||
Trading | 5,997 | 6,734 | 76 | 1,786 | 1,768 | 2,367 | ||||||||||||||||||
Other | 1,118 | (260 | ) | 182 | 264 | 297 | 375 | |||||||||||||||||
Total sales and trading revenue | $ | 12,921 | $ | 12,411 | $ | 1,741 | $ | 3,486 | $ | 3,477 | $ | 4,217 | ||||||||||||
(1) | Includes Global Banking sales and trading revenue of $382 million and $385 million for the years ended December 31, 2014 and 2013; $162 million, $68 million, $67 million and $85 million for the fourth, third, second and first quarters of 2014, 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. Sales and trading revenue excluding net debit valuation adjustment gains (losses) represents a non-GAAP financial measure. In the fourth quarter of 2014, the Corporation adopted a funding valuation adjustment on uncollateralized derivatives in the Corporation's Global Markets business. This methodology seeks to account for the value of funding costs today rather than accruing the cost over the life of the derivatives. The adoption resulted in a one-time transitional charge of $497 million recorded in the fourth quarter of 2014. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 17 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||
Legacy Assets & Servicing Segment Results | |||||||||||||||||||||||||
(Dollars in millions; except as noted) | |||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 1,516 | $ | 1,541 | $ | 390 | $ | 387 | $ | 362 | $ | 377 | |||||||||||||
Noninterest income: | |||||||||||||||||||||||||
Mortgage banking income | 1,053 | 2,670 | 241 | 152 | 369 | 291 | |||||||||||||||||||
All other income | 111 | 245 | 7 | 17 | 69 | 18 | |||||||||||||||||||
Total noninterest income | 1,164 | 2,915 | 248 | 169 | 438 | 309 | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 2,680 | 4,456 | 638 | 556 | 800 | 686 | |||||||||||||||||||
Provision for credit losses | 127 | (283 | ) | (113 | ) | 267 | (39 | ) | 12 | ||||||||||||||||
Noninterest expense | 20,643 | 12,483 | 1,364 | 6,647 | 5,231 | 7,401 | |||||||||||||||||||
Loss before income taxes (FTE basis) | (18,090 | ) | (7,744 | ) | (613 | ) | (6,358 | ) | (4,392 | ) | (6,727 | ) | |||||||||||||
Income tax benefit (FTE basis) | (4,976 | ) | (2,839 | ) | (231 | ) | (1,245 | ) | (1,653 | ) | (1,847 | ) | |||||||||||||
Net loss | $ | (13,114 | ) | $ | (4,905 | ) | $ | (382 | ) | $ | (5,113 | ) | $ | (2,739 | ) | $ | (4,880 | ) | |||||||
Net interest yield (FTE basis) | 4.03 | % | 3.19 | % | 4.23 | % | 3.78 | % | 3.65 | % | 3.82 | % | |||||||||||||
Balance Sheet | |||||||||||||||||||||||||
Average | |||||||||||||||||||||||||
Total loans and leases | $ | 35,941 | $ | 42,604 | $ | 33,772 | $ | 35,238 | $ | 36,705 | $ | 38,104 | |||||||||||||
Total earning assets | 37,593 | 48,272 | 36,581 | 40,636 | 39,863 | 40,026 | |||||||||||||||||||
Total assets | 52,134 | 67,129 | 48,557 | 53,762 | 55,626 | 57,400 | |||||||||||||||||||
Allocated capital (1) | 17,000 | 18,000 | 17,000 | 17,000 | 17,000 | 17,000 | |||||||||||||||||||
Period end | |||||||||||||||||||||||||
Total loans and leases | $ | 33,055 | $ | 38,732 | $ | 33,055 | $ | 34,484 | $ | 35,984 | $ | 37,401 | |||||||||||||
Total earning assets | 33,923 | 43,092 | 33,923 | 44,916 | 37,233 | 39,141 | |||||||||||||||||||
Total assets | 45,958 | 59,458 | 45,958 | 56,900 | 52,647 | 58,605 | |||||||||||||||||||
Period end (in billions) | |||||||||||||||||||||||||
Mortgage servicing portfolio (2) | $ | 693.0 | $ | 810.0 | $ | 693.0 | $ | 722.0 | $ | 760.0 | $ | 780.0 | |||||||||||||
(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 25-27.) |
(2) | Includes servicing of residential mortgage loans, home equity lines of credit and home equity loans. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 18 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||
Legacy Assets & Servicing Key Indicators | ||||||||||||||||||||||||||
(Dollars in millions, except as noted) | ||||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Mortgage servicing rights at fair value rollforward: | ||||||||||||||||||||||||||
Balance, beginning of period | $ | 5,042 | $ | 5,716 | $ | 3,986 | $ | 4,134 | $ | 4,577 | $ | 5,042 | ||||||||||||||
Net additions (sales) | 275 | (1,572 | ) | 73 | 140 | 32 | 30 | |||||||||||||||||||
Amortization of expected cash flows (1) | (818 | ) | (1,043 | ) | (198 | ) | (201 | ) | (209 | ) | (210 | ) | ||||||||||||||
Other changes in mortgage servicing rights fair value (2) | (1,228 | ) | 1,941 | (590 | ) | (87 | ) | (266 | ) | (285 | ) | |||||||||||||||
Balance, end of period (3) | $ | 3,271 | $ | 5,042 | $ | 3,271 | $ | 3,986 | $ | 4,134 | $ | 4,577 | ||||||||||||||
Capitalized mortgage servicing rights (% of loans serviced for investors) | 69 | bps | 92 | bps | 69 | bps | 81 | bps | 82 | bps | 87 | bps | ||||||||||||||
Mortgage loans serviced for investors (in billions) | $ | 474 | $ | 550 | $ | 474 | $ | 491 | $ | 505 | $ | 527 | ||||||||||||||
Mortgage banking income | ||||||||||||||||||||||||||
Servicing income: | ||||||||||||||||||||||||||
Servicing fees | $ | 1,957 | $ | 3,105 | $ | 461 | $ | 471 | $ | 492 | $ | 533 | ||||||||||||||
Amortization of expected cash flows (1) | (818 | ) | (1,043 | ) | (198 | ) | (201 | ) | (209 | ) | (210 | ) | ||||||||||||||
Fair value changes of mortgage servicing rights, net of risk management activities used to hedge certain market risks (4) | 294 | 867 | 142 | (19 | ) | 105 | 66 | |||||||||||||||||||
Other servicing-related revenue | 8 | 30 | — | — | 4 | 4 | ||||||||||||||||||||
Total net servicing income | 1,441 | 2,959 | 405 | 251 | 392 | 393 | ||||||||||||||||||||
Representations and warranties provision | (693 | ) | (736 | ) | (246 | ) | (152 | ) | (110 | ) | (185 | ) | ||||||||||||||
Other mortgage banking income (5) | 305 | 447 | 82 | 53 | 87 | 83 | ||||||||||||||||||||
Total Legacy Assets & Servicing mortgage banking income | $ | 1,053 | $ | 2,670 | $ | 241 | $ | 152 | $ | 369 | $ | 291 | ||||||||||||||
(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 option-adjusted spread rate assumptions 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) | Does not include certain non-U.S. residential mortgage MSR balances, which are recorded in Global Markets. |
(4) | Includes gains and losses on sales of mortgage servicing rights. |
(5) | Consists primarily of revenue from sales of loans that had returned to performing status. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 19 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||
All Other Results (1) | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | (523 | ) | $ | 971 | $ | (350 | ) | $ | 68 | $ | (85 | ) | $ | (156 | ) | ||||||||
Noninterest income: | ||||||||||||||||||||||||
Card income | 356 | 329 | 89 | 92 | 88 | 87 | ||||||||||||||||||
Equity investment income | 729 | 2,737 | (36 | ) | (26 | ) | 95 | 696 | ||||||||||||||||
Gains on sales of debt securities | 1,310 | 1,231 | 161 | 410 | 382 | 357 | ||||||||||||||||||
All other loss | (2,444 | ) | (2,540 | ) | (610 | ) | (586 | ) | (595 | ) | (653 | ) | ||||||||||||
Total noninterest income | (49 | ) | 1,757 | (396 | ) | (110 | ) | (30 | ) | 487 | ||||||||||||||
Total revenue, net of interest expense (FTE basis) | (572 | ) | 2,728 | (746 | ) | (42 | ) | (115 | ) | 331 | ||||||||||||||
Provision for credit losses | (978 | ) | (665 | ) | (330 | ) | (265 | ) | (248 | ) | (135 | ) | ||||||||||||
Noninterest expense | 2,938 | 4,643 | 481 | 260 | 479 | 1,718 | ||||||||||||||||||
Loss before income taxes (FTE basis) | (2,532 | ) | (1,250 | ) | (897 | ) | (37 | ) | (346 | ) | (1,252 | ) | ||||||||||||
Income tax benefit (FTE basis) | (2,590 | ) | (2,012 | ) | (523 | ) | (543 | ) | (469 | ) | (1,055 | ) | ||||||||||||
Net income (loss) | $ | 58 | $ | 762 | $ | (374 | ) | $ | 506 | $ | 123 | $ | (197 | ) | ||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 202,513 | $ | 235,459 | $ | 183,091 | $ | 199,404 | $ | 210,576 | $ | 217,392 | ||||||||||||
Total assets (2) | 275,405 | 309,664 | 259,158 | 268,818 | 288,942 | 278,250 | ||||||||||||||||||
Total deposits | 30,837 | 35,443 | 22,163 | 29,880 | 36,472 | 34,982 | ||||||||||||||||||
Period end | ||||||||||||||||||||||||
Total loans and leases | $ | 172,612 | $ | 220,691 | $ | 172,612 | $ | 188,356 | $ | 205,471 | $ | 213,415 | ||||||||||||
Total assets (3) | 258,048 | 267,522 | 258,048 | 262,638 | 289,343 | 278,985 | ||||||||||||||||||
Total deposits | 19,242 | 28,165 | 19,242 | 25,418 | 33,824 | 34,854 | ||||||||||||||||||
(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. Additionally, All Other includes certain residential mortgage loans that are managed by Legacy Assets & Servicing. The results of certain ALM activities are allocated to our business segments. Equity investments include Global Principal Investments which is comprised of a portfolio of equity, real estate and other alternative investments. These investments are made either directly in a company or held through a fund with related income recorded in equity investment income. Equity investments also include the results of our merchant services joint venture. In 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 $483.7 billion and $448.9 billion for the years ended December 31, 2014 and 2013; $485.1 billion, $489.8 billion, $483.6 billion and $476.3 billion for the fourth, third, second and first quarters of 2014, respectively. |
(3) | Includes elimination of segments' excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $478.2 billion, $477.5 billion, $490.4 billion and $492.1 billion at December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 20 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||
Equity Investments | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Equity Investments Exposures | |||||||||||||||||||||||
December 31, 2014 | September 30 2014 | June 30 2014 | March 31 2014 | ||||||||||||||||||||
Book Value | Unfunded Commitments | Total | Total | ||||||||||||||||||||
Equity Investments | |||||||||||||||||||||||
Global Principal Investments | $ | 913 | $ | 31 | $ | 944 | $ | 1,045 | $ | 1,190 | $ | 1,369 | |||||||||||
Strategic and other investments | 3,973 | 6 | 3,979 | 4,010 | 4,007 | 4,065 | |||||||||||||||||
Total Equity Investments | $ | 4,886 | $ | 37 | $ | 4,923 | $ | 5,055 | $ | 5,197 | $ | 5,434 | |||||||||||
Components of Equity Investment Income | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Global Principal Investments | $ | (46 | ) | $ | 379 | $ | (52 | ) | $ | (37 | ) | $ | 71 | $ | (28 | ) | ||||||||
Strategic and other investments | 775 | 2,358 | 16 | 11 | 24 | 724 | ||||||||||||||||||
Total equity investment income (loss) included in All Other | 729 | 2,737 | (36 | ) | (26 | ) | 95 | 696 | ||||||||||||||||
Total equity investment income included in the business segments | 401 | 164 | 16 | 35 | 262 | 88 | ||||||||||||||||||
Total consolidated equity investment income (loss) | $ | 1,130 | $ | 2,901 | $ | (20 | ) | $ | 9 | $ | 357 | $ | 784 | |||||||||||
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 21 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Quarterly Average Loans and Leases by Business Segment | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Fourth Quarter 2014 | ||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | ||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Residential mortgage | $ | 223,132 | $ | 9,306 | $ | 50,537 | $ | 7 | $ | — | $ | 931 | $ | 162,351 | ||||||||||||||
Home equity | 86,825 | 45,804 | 6,276 | 5 | 189 | 32,813 | 1,738 | |||||||||||||||||||||
U.S. credit card | 89,381 | 86,193 | 3,188 | — | — | — | — | |||||||||||||||||||||
Non-U.S. credit card | 10,950 | — | — | — | — | — | 10,950 | |||||||||||||||||||||
Direct/Indirect consumer | 83,121 | 39,541 | 39,694 | 5 | 14 | — | 3,867 | |||||||||||||||||||||
Other consumer | 2,031 | 1,113 | 8 | 2 | — | — | 908 | |||||||||||||||||||||
Total consumer | 495,440 | 181,957 | 99,703 | 19 | 203 | 33,744 | 179,814 | |||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
U.S. commercial | 231,215 | 17,228 | 21,824 | 153,256 | 34,426 | 28 | 4,453 | |||||||||||||||||||||
Commercial real estate | 46,996 | 30 | 1,875 | 41,445 | 3,446 | — | 200 | |||||||||||||||||||||
Commercial lease financing | 24,238 | — | 4 | 25,105 | 552 | — | (1,423 | ) | ||||||||||||||||||||
Non-U.S. commercial | 86,844 | — | 138 | 67,192 | 19,467 | — | 47 | |||||||||||||||||||||
Total commercial | 389,293 | 17,258 | 23,841 | 286,998 | 57,891 | 28 | 3,277 | |||||||||||||||||||||
Total loans and leases | $ | 884,733 | $ | 199,215 | $ | 123,544 | $ | 287,017 | $ | 58,094 | $ | 33,772 | $ | 183,091 | ||||||||||||||
Third Quarter 2014 | ||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | ||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Residential mortgage | $ | 235,272 | $ | 7,523 | $ | 49,610 | $ | 6 | $ | — | $ | 950 | $ | 177,183 | ||||||||||||||
Home equity | 88,590 | 46,093 | 6,412 | 9 | 165 | 34,258 | 1,653 | |||||||||||||||||||||
U.S. credit card | 88,866 | 85,674 | 3,192 | — | — | — | — | |||||||||||||||||||||
Non-U.S. credit card | 11,784 | — | — | — | — | — | 11,784 | |||||||||||||||||||||
Direct/Indirect consumer | 82,669 | 39,763 | 38,555 | 4 | 17 | — | 4,330 | |||||||||||||||||||||
Other consumer | 2,110 | 1,042 | 5 | 1 | — | — | 1,062 | |||||||||||||||||||||
Total consumer | 509,291 | 180,095 | 97,774 | 20 | 182 | 35,208 | 196,012 | |||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
U.S. commercial | 230,891 | 17,248 | 21,283 | 150,918 | 36,894 | 30 | 4,518 | |||||||||||||||||||||
Commercial real estate | 46,069 | 31 | 1,796 | 41,818 | 2,201 | — | 223 | |||||||||||||||||||||
Commercial lease financing | 24,325 | — | 4 | 25,127 | 644 | — | (1,450 | ) | ||||||||||||||||||||
Non-U.S. commercial | 88,665 | — | 145 | 65,401 | 23,018 | — | 101 | |||||||||||||||||||||
Total commercial | 389,950 | 17,279 | 23,228 | 283,264 | 62,757 | 30 | 3,392 | |||||||||||||||||||||
Total loans and leases | $ | 899,241 | $ | 197,374 | $ | 121,002 | $ | 283,284 | $ | 62,939 | $ | 35,238 | $ | 199,404 | ||||||||||||||
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 22 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Quarterly Average Loans and Leases by Business Segment (continued) | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Second Quarter 2014 | ||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | ||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Residential mortgage | $ | 243,406 | $ | 5,731 | $ | 48,855 | $ | 6 | $ | — | $ | 961 | $ | 187,853 | ||||||||||||||
Home equity | 90,729 | 46,676 | 6,578 | 8 | 160 | 35,710 | 1,597 | |||||||||||||||||||||
U.S. credit card | 88,058 | 84,849 | 3,209 | — | — | — | — | |||||||||||||||||||||
Non-U.S. credit card | 11,759 | — | — | — | — | — | 11,759 | |||||||||||||||||||||
Direct/Indirect consumer | 82,102 | 40,069 | 37,348 | 5 | 12 | — | 4,668 | |||||||||||||||||||||
Other consumer | 2,011 | 889 | 9 | 1 | — | — | 1,112 | |||||||||||||||||||||
Total consumer | 518,065 | 178,214 | 95,999 | 20 | 172 | 36,671 | 206,989 | |||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
U.S. commercial | 230,486 | 17,169 | 20,688 | 151,923 | 35,906 | 34 | 4,766 | |||||||||||||||||||||
Commercial real estate | 48,315 | 30 | 1,672 | 44,437 | 1,937 | — | 239 | |||||||||||||||||||||
Commercial lease financing | 24,409 | — | 4 | 25,165 | 743 | — | (1,503 | ) | ||||||||||||||||||||
Non-U.S. commercial | 91,305 | — | 149 | 66,250 | 24,821 | — | 85 | |||||||||||||||||||||
Total commercial | 394,515 | 17,199 | 22,513 | 287,775 | 63,407 | 34 | 3,587 | |||||||||||||||||||||
Total loans and leases | $ | 912,580 | $ | 195,413 | $ | 118,512 | $ | 287,795 | $ | 63,579 | $ | 36,705 | $ | 210,576 | ||||||||||||||
First Quarter 2014 | ||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | ||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Residential mortgage | $ | 247,560 | $ | 4,364 | $ | 48,236 | $ | 8 | $ | — | $ | 963 | $ | 193,989 | ||||||||||||||
Home equity | 92,755 | 47,262 | 6,696 | 5 | 168 | 37,094 | 1,530 | |||||||||||||||||||||
U.S. credit card | 89,545 | 86,270 | 3,260 | — | — | — | 15 | |||||||||||||||||||||
Non-U.S. credit card | 11,554 | — | — | — | — | — | 11,554 | |||||||||||||||||||||
Direct/Indirect consumer | 81,728 | 40,800 | 35,800 | 4 | 45 | — | 5,079 | |||||||||||||||||||||
Other consumer | 1,962 | 791 | 4 | 2 | — | — | 1,165 | |||||||||||||||||||||
Total consumer | 525,104 | 179,487 | 93,996 | 19 | 213 | 38,057 | 213,332 | |||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
U.S. commercial | 228,059 | 16,910 | 20,095 | 150,971 | 34,719 | 47 | 5,317 | |||||||||||||||||||||
Commercial real estate | 48,753 | 28 | 1,698 | 45,132 | 1,625 | — | 270 | |||||||||||||||||||||
Commercial lease financing | 24,727 | — | 4 | 25,427 | 836 | — | (1,540 | ) | ||||||||||||||||||||
Non-U.S. commercial | 92,839 | — | 152 | 66,371 | 26,303 | — | 13 | |||||||||||||||||||||
Total commercial | 394,378 | 16,938 | 21,949 | 287,901 | 63,483 | 47 | 4,060 | |||||||||||||||||||||
Total loans and leases | $ | 919,482 | $ | 196,425 | $ | 115,945 | $ | 287,920 | $ | 63,696 | $ | 38,104 | $ | 217,392 | ||||||||||||||
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 23 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||
Net Charge-offs and Net Charge-off Ratios | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||
Net Charge-offs | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||
Consumer Banking | $ | 3,497 | 1.77 | % | $ | 4,636 | 2.36 | % | $ | 832 | 1.66 | % | $ | 815 | 1.64 | % | $ | 894 | 1.83 | % | $ | 956 | 1.97 | % | ||||||||||||||||||
Global Wealth & Investment Management | 71 | 0.06 | 173 | 0.16 | 36 | 0.12 | 6 | 0.02 | 4 | 0.01 | 25 | 0.09 | ||||||||||||||||||||||||||||||
Global Banking | 31 | 0.01 | 247 | 0.09 | 2 | — | 52 | 0.07 | (8 | ) | (0.01 | ) | (15 | ) | (0.02 | ) | ||||||||||||||||||||||||||
Global Markets | 2 | — | 2 | — | — | — | — | — | 3 | 0.02 | (1 | ) | (0.01 | ) | ||||||||||||||||||||||||||||
Legacy Assets & Servicing | 627 | 1.79 | 1,383 | 3.33 | 199 | 2.40 | 42 | 0.48 | 169 | 1.90 | 217 | 2.37 | ||||||||||||||||||||||||||||||
All Other | 155 | 0.08 | 1,456 | 0.62 | (190 | ) | (0.41 | ) | 128 | 0.26 | 11 | 0.02 | 206 | 0.39 | ||||||||||||||||||||||||||||
Total net charge-offs | $ | 4,383 | 0.49 | $ | 7,897 | 0.87 | $ | 879 | 0.40 | $ | 1,043 | 0.46 | $ | 1,073 | 0.48 | $ | 1,388 | 0.62 | ||||||||||||||||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 24 |
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.
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 26-27 for reconciliations of these non-GAAP financial measures to financial measures defined by GAAP for the years ended December 31, 2014 and 2013, and the three months ended December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014. 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.
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis | |||||||||||||||||||||||||
Net interest income | $ | 39,952 | $ | 42,265 | $ | 9,635 | $ | 10,219 | $ | 10,013 | $ | 10,085 | |||||||||||||
Fully taxable-equivalent adjustment | 869 | 859 | 230 | 225 | 213 | 201 | |||||||||||||||||||
Net interest income on a fully taxable-equivalent basis | $ | 40,821 | $ | 43,124 | $ | 9,865 | $ | 10,444 | $ | 10,226 | $ | 10,286 | |||||||||||||
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 | $ | 84,247 | $ | 88,942 | $ | 18,725 | $ | 21,209 | $ | 21,747 | $ | 22,566 | |||||||||||||
Fully taxable-equivalent adjustment | 869 | 859 | 230 | 225 | 213 | 201 | |||||||||||||||||||
Total revenue, net of interest expense on a fully taxable-equivalent basis | $ | 85,116 | $ | 89,801 | $ | 18,955 | $ | 21,434 | $ | 21,960 | $ | 22,767 | |||||||||||||
Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis | |||||||||||||||||||||||||
Income tax expense (benefit) | $ | 2,022 | $ | 4,741 | $ | 1,260 | $ | 663 | $ | 504 | $ | (405 | ) | ||||||||||||
Fully taxable-equivalent adjustment | 869 | 859 | 230 | 225 | 213 | 201 | |||||||||||||||||||
Income tax expense (benefit) on a fully taxable-equivalent basis | $ | 2,891 | $ | 5,600 | $ | 1,490 | $ | 888 | $ | 717 | $ | (204 | ) | ||||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 25 |
Exhibit A: Non-GAAP Reconciliations (continued) | |||||||||||||||||||||||||
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||
Reconciliations to GAAP Financial Measures | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Reconciliation of return on average allocated capital (1) | |||||||||||||||||||||||||
Consumer Banking | |||||||||||||||||||||||||
Reported net income | $ | 6,441 | $ | 6,243 | $ | 1,661 | $ | 1,678 | $ | 1,634 | $ | 1,468 | |||||||||||||
Adjustment related to intangibles (2) | 4 | 7 | 1 | 1 | 1 | 1 | |||||||||||||||||||
Adjusted net income | $ | 6,445 | $ | 6,250 | $ | 1,662 | $ | 1,679 | $ | 1,635 | $ | 1,469 | |||||||||||||
Average allocated equity (3) | $ | 60,393 | $ | 61,179 | $ | 60,367 | $ | 60,386 | $ | 60,403 | $ | 60,417 | |||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (30,393 | ) | (30,479 | ) | (30,367 | ) | (30,386 | ) | (30,403 | ) | (30,417 | ) | |||||||||||||
Average allocated capital | $ | 30,000 | $ | 30,700 | $ | 30,000 | $ | 30,000 | $ | 30,000 | $ | 30,000 | |||||||||||||
Global Wealth & Investment Management | |||||||||||||||||||||||||
Reported net income | $ | 2,974 | $ | 2,977 | $ | 706 | $ | 813 | $ | 726 | $ | 729 | |||||||||||||
Adjustment related to intangibles (2) | 13 | 16 | 4 | 3 | 3 | 3 | |||||||||||||||||||
Adjusted net income | $ | 2,987 | $ | 2,993 | $ | 710 | $ | 816 | $ | 729 | $ | 732 | |||||||||||||
Average allocated equity (3) | $ | 22,214 | $ | 20,292 | $ | 22,186 | $ | 22,204 | $ | 22,222 | $ | 22,243 | |||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (10,214 | ) | (10,292 | ) | (10,186 | ) | (10,204 | ) | (10,222 | ) | (10,243 | ) | |||||||||||||
Average allocated capital | $ | 12,000 | $ | 10,000 | $ | 12,000 | $ | 12,000 | $ | 12,000 | $ | 12,000 | |||||||||||||
Global Banking | |||||||||||||||||||||||||
Reported net income | $ | 5,755 | $ | 5,200 | $ | 1,511 | $ | 1,511 | $ | 1,442 | $ | 1,291 | |||||||||||||
Adjustment related to intangibles (2) | 2 | 3 | — | 1 | — | 1 | |||||||||||||||||||
Adjusted net income | $ | 5,757 | $ | 5,203 | $ | 1,511 | $ | 1,512 | $ | 1,442 | $ | 1,292 | |||||||||||||
Average allocated equity (3) | $ | 57,450 | $ | 49,358 | $ | 57,446 | $ | 57,449 | $ | 57,451 | $ | 57,453 | |||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (23,950 | ) | (23,958 | ) | (23,946 | ) | (23,949 | ) | (23,951 | ) | (23,953 | ) | |||||||||||||
Average allocated capital | $ | 33,500 | $ | 25,400 | $ | 33,500 | $ | 33,500 | $ | 33,500 | $ | 33,500 | |||||||||||||
Global Markets | |||||||||||||||||||||||||
Reported net income (loss) | $ | 2,719 | $ | 1,154 | $ | (72 | ) | $ | 373 | $ | 1,105 | $ | 1,313 | ||||||||||||
Adjustment related to intangibles (2) | 9 | 9 | 3 | 2 | 2 | 2 | |||||||||||||||||||
Adjusted net income (loss) | $ | 2,728 | $ | 1,163 | $ | (69 | ) | $ | 375 | $ | 1,107 | $ | 1,315 | ||||||||||||
Average allocated equity (3) | $ | 39,374 | $ | 35,370 | $ | 39,369 | $ | 39,374 | $ | 39,376 | $ | 39,377 | |||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (5,374 | ) | (5,370 | ) | (5,369 | ) | (5,374 | ) | (5,376 | ) | (5,377 | ) | |||||||||||||
Average allocated capital | $ | 34,000 | $ | 30,000 | $ | 34,000 | $ | 34,000 | $ | 34,000 | $ | 34,000 | |||||||||||||
For footnotes see page 27.
Certain prior period amounts have been reclassified to conform to current period presentation.
This segment information is preliminary and based on company data available at the time of this filing. | 26 |
Exhibit A: Non-GAAP Reconciliations (continued) | |||||||||||||||||||||||||
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||
Reconciliations to GAAP Financial Measures | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | First Quarter 2014 | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Consumer Banking | |||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||
Reported net income | $ | 2,449 | $ | 1,846 | $ | 568 | $ | 688 | $ | 632 | $ | 561 | |||||||||||||
Adjustment related to intangibles (2) | — | 1 | — | — | — | — | |||||||||||||||||||
Adjusted net income | $ | 2,449 | $ | 1,847 | $ | 568 | $ | 688 | $ | 632 | $ | 561 | |||||||||||||
Average allocated equity (3) | $ | 29,427 | $ | 28,535 | $ | 29,426 | $ | 29,428 | $ | 29,428 | $ | 29,425 | |||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (18,427 | ) | (18,435 | ) | (18,426 | ) | (18,428 | ) | (18,428 | ) | (18,425 | ) | |||||||||||||
Average allocated capital | $ | 11,000 | $ | 10,100 | $ | 11,000 | $ | 11,000 | $ | 11,000 | $ | 11,000 | |||||||||||||
Consumer Lending | |||||||||||||||||||||||||
Reported net income | $ | 3,992 | $ | 4,397 | $ | 1,093 | $ | 990 | $ | 1,002 | $ | 907 | |||||||||||||
Adjustment related to intangibles (2) | 4 | 7 | 1 | 1 | 1 | 1 | |||||||||||||||||||
Adjusted net income | $ | 3,996 | $ | 4,404 | $ | 1,094 | $ | 991 | $ | 1,003 | $ | 908 | |||||||||||||
Average allocated equity (3) | $ | 30,966 | $ | 32,644 | $ | 30,941 | $ | 30,958 | $ | 30,975 | $ | 30,993 | |||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (11,966 | ) | (12,044 | ) | (11,941 | ) | (11,958 | ) | (11,975 | ) | (11,993 | ) | |||||||||||||
Average allocated capital | $ | 19,000 | $ | 20,600 | $ | 19,000 | $ | 19,000 | $ | 19,000 | $ | 19,000 | |||||||||||||
(1) | There are no adjustments to reported net income (loss) or average allocated equity for Legacy Assets & Servicing. |
(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 segment information is preliminary and based on company data available at the time of this filing. | 27 |