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Supplemental Information
Second Quarter 2015
This information is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this information are subject to the forward-looking language contained in Bank of America’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC’s website (www.sec.gov) or at Bank of America’s website (www.bankofamerica.com). Bank of America’s future financial performance is subject to risks and uncertainties as described in its SEC filings.
Bank of America Corporation and Subsidiaries | |
Table of Contents | Page |
Consumer Banking | |
Global Wealth & Investment Management | |
Global Banking | |
Global Markets | |
Legacy Assets & Servicing | |
All Other | |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Consolidated Financial Highlights | ||||||||||||||||||||||||||||
(Dollars in millions, except per share information; shares in thousands) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Income statement | ||||||||||||||||||||||||||||
Net interest income | $ | 19,939 | $ | 20,098 | $ | 10,488 | $ | 9,451 | $ | 9,635 | $ | 10,219 | $ | 10,013 | ||||||||||||||
Noninterest income | 23,380 | 24,215 | 11,629 | 11,751 | 9,090 | 10,990 | 11,734 | |||||||||||||||||||||
Total revenue, net of interest expense | 43,319 | 44,313 | 22,117 | 21,202 | 18,725 | 21,209 | 21,747 | |||||||||||||||||||||
Provision for credit losses | 1,545 | 1,420 | 780 | 765 | 219 | 636 | 411 | |||||||||||||||||||||
Noninterest expense | 29,513 | 40,779 | 13,818 | 15,695 | 14,196 | 20,142 | 18,541 | |||||||||||||||||||||
Income tax expense | 3,584 | 99 | 2,199 | 1,385 | 1,260 | 663 | 504 | |||||||||||||||||||||
Net income (loss) | 8,677 | 2,015 | 5,320 | 3,357 | 3,050 | (232 | ) | 2,291 | ||||||||||||||||||||
Preferred stock dividends | 712 | 494 | 330 | 382 | 312 | 238 | 256 | |||||||||||||||||||||
Net income (loss) applicable to common shareholders | 7,965 | 1,521 | 4,990 | 2,975 | 2,738 | (470 | ) | 2,035 | ||||||||||||||||||||
Diluted earnings (loss) per common share (1) | 0.72 | 0.14 | 0.45 | 0.27 | 0.25 | (0.04 | ) | 0.19 | ||||||||||||||||||||
Average diluted common shares issued and outstanding (1) | 11,252,417 | 10,599,641 | 11,238,060 | 11,266,511 | 11,273,773 | 10,515,790 | 11,265,123 | |||||||||||||||||||||
Dividends paid per common share | $ | 0.10 | $ | 0.02 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.01 | ||||||||||||||
Performance ratios | ||||||||||||||||||||||||||||
Return on average assets | 0.82 | % | 0.19 | % | 0.99 | % | 0.64 | % | 0.57 | % | n/m | 0.42 | % | |||||||||||||||
Return on average common shareholders' equity | 7.07 | 1.38 | 8.75 | 5.35 | 4.84 | n/m | 3.68 | |||||||||||||||||||||
Return on average tangible common shareholders' equity (2) | 10.38 | 2.05 | 12.78 | 7.88 | 7.15 | n/m | 5.47 | |||||||||||||||||||||
Return on average tangible shareholders' equity (2) | 9.93 | 2.49 | 11.93 | 7.85 | 7.08 | n/m | 5.64 | |||||||||||||||||||||
At period end | ||||||||||||||||||||||||||||
Book value per share of common stock | $ | 21.91 | $ | 21.16 | $ | 21.91 | $ | 21.66 | $ | 21.32 | $ | 20.99 | $ | 21.16 | ||||||||||||||
Tangible book value per share of common stock (2) | 15.02 | 14.24 | 15.02 | 14.79 | 14.43 | 14.09 | 14.24 | |||||||||||||||||||||
Market price per share of common stock: | ||||||||||||||||||||||||||||
Closing price | $ | 17.02 | $ | 15.37 | $ | 17.02 | $ | 15.39 | $ | 17.89 | $ | 17.05 | $ | 15.37 | ||||||||||||||
High closing price for the period | 17.90 | 17.92 | 17.67 | 17.90 | 18.13 | 17.18 | 17.34 | |||||||||||||||||||||
Low closing price for the period | 15.15 | 14.51 | 15.41 | 15.15 | 15.76 | 14.98 | 14.51 | |||||||||||||||||||||
Market capitalization | 178,231 | 161,628 | 178,231 | 161,909 | 188,141 | 179,296 | 161,628 | |||||||||||||||||||||
Number of financial centers - U.S. | 4,789 | 5,023 | 4,789 | 4,835 | 4,855 | 4,947 | 5,023 | |||||||||||||||||||||
Number of branded ATMs - U.S. | 15,992 | 15,973 | 15,992 | 15,903 | 15,834 | 15,671 | 15,973 | |||||||||||||||||||||
Full-time equivalent employees | 216,679 | 233,201 | 216,679 | 219,658 | 223,715 | 229,538 | 233,201 | |||||||||||||||||||||
(1) | The diluted earnings (loss) per common share excludes the effect of any equity instruments that are antidilutive to earnings per share. There were no potential common shares that were dilutive in the third quarter of 2014 because of the net loss applicable to common shareholders. |
(2) | Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 45-48.) |
n/m = not meaningful
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 2 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Supplemental Financial Data | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Fully taxable-equivalent (FTE) basis data (1) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Net interest income | $ | 20,386 | $ | 20,512 | $ | 10,716 | $ | 9,670 | $ | 9,865 | $ | 10,444 | $ | 10,226 | ||||||||||||||
Total revenue, net of interest expense | 43,766 | 44,727 | 22,345 | 21,421 | 18,955 | 21,434 | 21,960 | |||||||||||||||||||||
Net interest yield | 2.27 | % | 2.26 | % | 2.37 | % | 2.17 | % | 2.18 | % | 2.29 | % | 2.22 | % | ||||||||||||||
Efficiency ratio | 67.43 | 91.17 | 61.84 | 73.27 | 74.90 | 93.97 | 84.43 | |||||||||||||||||||||
(1) | FTE basis is a non-GAAP financial measure. FTE basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 45-48.) |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 3 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Consolidated Statement of Income | ||||||||||||||||||||||||||||
(Dollars in millions, except per share information; shares in thousands) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||
Loans and leases | $ | 16,014 | $ | 17,395 | $ | 7,978 | $ | 8,036 | $ | 8,377 | $ | 8,535 | $ | 8,635 | ||||||||||||||
Debt securities | 4,957 | 4,121 | 3,070 | 1,887 | 1,675 | 2,225 | 2,124 | |||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 499 | 562 | 268 | 231 | 238 | 239 | 297 | |||||||||||||||||||||
Trading account assets | 2,157 | 2,352 | 1,074 | 1,083 | 1,098 | 1,111 | 1,175 | |||||||||||||||||||||
Other interest income | 1,468 | 1,446 | 742 | 726 | 764 | 748 | 710 | |||||||||||||||||||||
Total interest income | 25,095 | 25,876 | 13,132 | 11,963 | 12,152 | 12,858 | 12,941 | |||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||
Deposits | 436 | 573 | 216 | 220 | 237 | 270 | 282 | |||||||||||||||||||||
Short-term borrowings | 1,271 | 1,372 | 686 | 585 | 615 | 591 | 763 | |||||||||||||||||||||
Trading account liabilities | 729 | 833 | 335 | 394 | 351 | 392 | 398 | |||||||||||||||||||||
Long-term debt | 2,720 | 3,000 | 1,407 | 1,313 | 1,314 | 1,386 | 1,485 | |||||||||||||||||||||
Total interest expense | 5,156 | 5,778 | 2,644 | 2,512 | 2,517 | 2,639 | 2,928 | |||||||||||||||||||||
Net interest income | 19,939 | 20,098 | 10,488 | 9,451 | 9,635 | 10,219 | 10,013 | |||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||
Card income | 2,871 | 2,834 | 1,477 | 1,394 | 1,610 | 1,500 | 1,441 | |||||||||||||||||||||
Service charges | 3,621 | 3,692 | 1,857 | 1,764 | 1,844 | 1,907 | 1,866 | |||||||||||||||||||||
Investment and brokerage services | 6,765 | 6,560 | 3,387 | 3,378 | 3,397 | 3,327 | 3,291 | |||||||||||||||||||||
Investment banking income | 3,013 | 3,173 | 1,526 | 1,487 | 1,541 | 1,351 | 1,631 | |||||||||||||||||||||
Equity investment income (loss) | 115 | 1,141 | 88 | 27 | (20 | ) | 9 | 357 | ||||||||||||||||||||
Trading account profits | 3,894 | 4,299 | 1,647 | 2,247 | 111 | 1,899 | 1,832 | |||||||||||||||||||||
Mortgage banking income | 1,695 | 939 | 1,001 | 694 | 352 | 272 | 527 | |||||||||||||||||||||
Gains on sales of debt securities | 436 | 759 | 168 | 268 | 163 | 432 | 382 | |||||||||||||||||||||
Other income | 970 | 818 | 478 | 492 | 92 | 293 | 407 | |||||||||||||||||||||
Total noninterest income | 23,380 | 24,215 | 11,629 | 11,751 | 9,090 | 10,990 | 11,734 | |||||||||||||||||||||
Total revenue, net of interest expense | 43,319 | 44,313 | 22,117 | 21,202 | 18,725 | 21,209 | 21,747 | |||||||||||||||||||||
Provision for credit losses | 1,545 | 1,420 | 780 | 765 | 219 | 636 | 411 | |||||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||||||
Personnel | 17,504 | 18,055 | 7,890 | 9,614 | 7,693 | 8,039 | 8,306 | |||||||||||||||||||||
Occupancy | 2,054 | 2,194 | 1,027 | 1,027 | 996 | 1,070 | 1,079 | |||||||||||||||||||||
Equipment | 1,012 | 1,080 | 500 | 512 | 531 | 514 | 534 | |||||||||||||||||||||
Marketing | 885 | 892 | 445 | 440 | 491 | 446 | 450 | |||||||||||||||||||||
Professional fees | 915 | 1,184 | 494 | 421 | 677 | 611 | 626 | |||||||||||||||||||||
Amortization of intangibles | 425 | 474 | 212 | 213 | 228 | 234 | 235 | |||||||||||||||||||||
Data processing | 1,567 | 1,594 | 715 | 852 | 796 | 754 | 761 | |||||||||||||||||||||
Telecommunications | 373 | 694 | 202 | 171 | 254 | 311 | 324 | |||||||||||||||||||||
Other general operating | 4,778 | 14,612 | 2,333 | 2,445 | 2,530 | 8,163 | 6,226 | |||||||||||||||||||||
Total noninterest expense | 29,513 | 40,779 | 13,818 | 15,695 | 14,196 | 20,142 | 18,541 | |||||||||||||||||||||
Income before income taxes | 12,261 | 2,114 | 7,519 | 4,742 | 4,310 | 431 | 2,795 | |||||||||||||||||||||
Income tax expense | 3,584 | 99 | 2,199 | 1,385 | 1,260 | 663 | 504 | |||||||||||||||||||||
Net income (loss) | $ | 8,677 | $ | 2,015 | $ | 5,320 | $ | 3,357 | $ | 3,050 | $ | (232 | ) | $ | 2,291 | |||||||||||||
Preferred stock dividends | 712 | 494 | 330 | 382 | 312 | 238 | 256 | |||||||||||||||||||||
Net income (loss) applicable to common shareholders | $ | 7,965 | $ | 1,521 | $ | 4,990 | $ | 2,975 | $ | 2,738 | $ | (470 | ) | $ | 2,035 | |||||||||||||
Per common share information | ||||||||||||||||||||||||||||
Earnings (loss) | $ | 0.76 | $ | 0.14 | $ | 0.48 | $ | 0.28 | $ | 0.26 | $ | (0.04 | ) | $ | 0.19 | |||||||||||||
Diluted earnings (loss) (1) | 0.72 | 0.14 | 0.45 | 0.27 | 0.25 | (0.04 | ) | 0.19 | ||||||||||||||||||||
Dividends paid | 0.10 | 0.02 | 0.05 | 0.05 | 0.05 | 0.05 | 0.01 | |||||||||||||||||||||
Average common shares issued and outstanding | 10,503,379 | 10,539,769 | 10,488,137 | 10,518,790 | 10,516,334 | 10,515,790 | 10,519,359 | |||||||||||||||||||||
Average diluted common shares issued and outstanding (1) | 11,252,417 | 10,599,641 | 11,238,060 | 11,266,511 | 11,273,773 | 10,515,790 | 11,265,123 | |||||||||||||||||||||
(1) | The diluted earnings (loss) per common share excludes the effect of any equity instruments that are antidilutive to earnings per share. There were no potential common shares that were dilutive in the third quarter of 2014 because of the net loss applicable to common shareholders. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 4 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Consolidated Statement of Comprehensive Income | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Net income (loss) | $ | 8,677 | $ | 2,015 | $ | 5,320 | $ | 3,357 | $ | 3,050 | $ | (232 | ) | $ | 2,291 | |||||||||||||
Other comprehensive income (loss), net-of-tax: | ||||||||||||||||||||||||||||
Net change in available-for-sale debt and marketable equity securities | (1,201 | ) | 3,594 | (2,537 | ) | 1,336 | 2,021 | (994 | ) | 2,305 | ||||||||||||||||||
Net change in derivatives | 289 | 215 | 246 | 43 | 205 | 196 | 7 | |||||||||||||||||||||
Employee benefit plan adjustments | 50 | 56 | 25 | 25 | (1,007 | ) | 8 | 7 | ||||||||||||||||||||
Net change in foreign currency translation adjustments | (8 | ) | (119 | ) | 43 | (51 | ) | (24 | ) | (14 | ) | 7 | ||||||||||||||||
Other comprehensive income (loss) | (870 | ) | 3,746 | (2,223 | ) | 1,353 | 1,195 | (804 | ) | 2,326 | ||||||||||||||||||
Comprehensive income (loss) | $ | 7,807 | $ | 5,761 | $ | 3,097 | $ | 4,710 | $ | 4,245 | $ | (1,036 | ) | $ | 4,617 | |||||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 5 |
Bank of America Corporation and Subsidiaries | |||||||||||
Consolidated Balance Sheet | |||||||||||
(Dollars in millions) | |||||||||||
June 30 2015 | March 31 2015 | June 30 2014 | |||||||||
Assets | |||||||||||
Cash and due from banks | $ | 29,974 | $ | 30,106 | $ | 31,969 | |||||
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | 133,540 | 132,437 | 120,930 | ||||||||
Cash and cash equivalents | 163,514 | 162,543 | 152,899 | ||||||||
Time deposits placed and other short-term investments | 7,996 | 7,418 | 8,646 | ||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 199,903 | 206,708 | 229,449 | ||||||||
Trading account assets | 189,106 | 186,860 | 196,952 | ||||||||
Derivative assets | 50,977 | 61,331 | 47,892 | ||||||||
Debt securities: | |||||||||||
Carried at fair value | 332,307 | 324,174 | 292,861 | ||||||||
Held-to-maturity, at cost | 60,072 | 59,815 | 60,022 | ||||||||
Total debt securities | 392,379 | 383,989 | 352,883 | ||||||||
Loans and leases | 886,449 | 877,956 | 911,899 | ||||||||
Allowance for loan and lease losses | (13,068 | ) | (13,676 | ) | (15,811 | ) | |||||
Loans and leases, net of allowance | 873,381 | 864,280 | 896,088 | ||||||||
Premises and equipment, net | 9,700 | 9,833 | 10,146 | ||||||||
Mortgage servicing rights | 3,521 | 3,394 | 4,368 | ||||||||
Goodwill | 69,775 | 69,776 | 69,810 | ||||||||
Intangible assets | 4,188 | 4,391 | 5,099 | ||||||||
Loans held-for-sale | 6,914 | 9,732 | 9,200 | ||||||||
Customer and other receivables | 64,505 | 63,716 | 65,475 | ||||||||
Other assets | 113,175 | 109,574 | 121,650 | ||||||||
Total assets | $ | 2,149,034 | $ | 2,143,545 | $ | 2,170,557 | |||||
Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities) | |||||||||||
Trading account assets | $ | 4,863 | $ | 5,182 | $ | 7,236 | |||||
Loans and leases | 85,467 | 89,771 | 102,799 | ||||||||
Allowance for loan and lease losses | (1,711 | ) | (1,869 | ) | (2,326 | ) | |||||
Loans and leases, net of allowance | 83,756 | 87,902 | 100,473 | ||||||||
Loans held-for-sale | 413 | 1,226 | 601 | ||||||||
All other assets | 3,681 | 2,953 | 3,971 | ||||||||
Total assets of consolidated variable interest entities | $ | 92,713 | $ | 97,263 | $ | 112,281 |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 6 |
Bank of America Corporation and Subsidiaries | |||||||||||
Consolidated Balance Sheet (continued) | |||||||||||
(Dollars in millions) | |||||||||||
June 30 2015 | March 31 2015 | June 30 2014 | |||||||||
Liabilities | |||||||||||
Deposits in U.S. offices: | |||||||||||
Noninterest-bearing | $ | 411,862 | $ | 412,902 | $ | 390,781 | |||||
Interest-bearing | 668,447 | 673,431 | 662,823 | ||||||||
Deposits in non-U.S. offices: | |||||||||||
Noninterest-bearing | 8,294 | 8,473 | 7,419 | ||||||||
Interest-bearing | 60,957 | 58,362 | 73,306 | ||||||||
Total deposits | 1,149,560 | 1,153,168 | 1,134,329 | ||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 213,024 | 203,758 | 217,829 | ||||||||
Trading account liabilities | 72,596 | 74,791 | 88,342 | ||||||||
Derivative liabilities | 43,583 | 52,234 | 38,647 | ||||||||
Short-term borrowings | 39,903 | 33,270 | 45,873 | ||||||||
Accrued expenses and other liabilities (includes $588, $537 and $503 of reserve for unfunded lending commitments) | 135,295 | 138,278 | 151,055 | ||||||||
Long-term debt | 243,414 | 237,858 | 257,071 | ||||||||
Total liabilities | 1,897,375 | 1,893,357 | 1,933,146 | ||||||||
Shareholders' equity | |||||||||||
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,767,790, 3,767,790 and 3,467,790 shares | 22,273 | 22,273 | 14,846 | ||||||||
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 10,471,836,636, 10,520,400,507 and 10,515,824,628 shares | 152,638 | 153,410 | 153,468 | ||||||||
Retained earnings | 81,938 | 77,472 | 73,808 | ||||||||
Accumulated other comprehensive income (loss) | (5,190 | ) | (2,967 | ) | (4,711 | ) | |||||
Total shareholders' equity | 251,659 | 250,188 | 237,411 | ||||||||
Total liabilities and shareholders' equity | $ | 2,149,034 | $ | 2,143,545 | $ | 2,170,557 | |||||
Liabilities of consolidated variable interest entities included in total liabilities above | |||||||||||
Short-term borrowings | $ | 358 | $ | 630 | $ | 927 | |||||
Long-term debt | 14,471 | 13,942 | 16,333 | ||||||||
All other liabilities | 109 | 123 | 93 | ||||||||
Total liabilities of consolidated variable interest entities | $ | 14,938 | $ | 14,695 | $ | 17,353 |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 7 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||
Capital Management | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Basel 3 Standardized Transition | |||||||||||||||||||
June 30 2015 | March 31 2015 | December 31 2014 | September 30 2014 | June 30 2014 | |||||||||||||||
Risk-based capital metrics (1, 2): | |||||||||||||||||||
Common equity tier 1 capital | $ | 158,326 | $ | 155,438 | $ | 155,361 | $ | 152,444 | $ | 153,582 | |||||||||
Tier 1 capital | 176,247 | 173,155 | 168,973 | 163,040 | 160,760 | ||||||||||||||
Total capital | 217,889 | 214,481 | 208,670 | 200,759 | 197,028 | ||||||||||||||
Risk-weighted assets | 1,407,509 | 1,405,267 | 1,261,544 | 1,271,723 | 1,284,924 | ||||||||||||||
Common equity tier 1 capital ratio | 11.2 | % | 11.1 | % | 12.3 | % | 12.0 | % | 12.0 | % | |||||||||
Tier 1 capital ratio | 12.5 | 12.3 | 13.4 | 12.8 | 12.5 | ||||||||||||||
Total capital ratio | 15.5 | 15.3 | 16.5 | 15.8 | 15.3 | ||||||||||||||
Tier 1 leverage ratio | 8.5 | 8.4 | 8.2 | 7.9 | 7.7 | ||||||||||||||
Tangible equity ratio (3) | 8.6 | 8.6 | 8.4 | 8.1 | 7.8 | ||||||||||||||
Tangible common equity ratio (3) | 7.6 | 7.5 | 7.5 | 7.2 | 7.1 | ||||||||||||||
(1) | Regulatory capital ratios are preliminary. |
(2) | Common equity tier 1 capital ratios at June 30, 2015 and March 31, 2015 reflects the migration of the risk-weighted assets calculation from the general risk-based approach to the Basel 3 Standardized approach, and Common equity tier 1 capital includes the 2015 phase-in of regulatory capital transition provisions. |
(3) | Tangible equity ratio equals period-end tangible shareholders' equity divided by period-end tangible assets. Tangible common equity ratio equals period-end tangible common shareholders' equity divided by period-end tangible assets. Tangible shareholders' equity and tangible assets are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on pages 45-48.) |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 8 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||
Regulatory Capital Reconciliations (1, 2) | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
June 30 2015 | March 31 2015 | December 31 2014 | September 30 2014 | June 30 2014 | |||||||||||||||
Regulatory capital – Basel 3 transition to fully phased-in | |||||||||||||||||||
Common equity tier 1 capital (transition) (3) | $ | 158,326 | $ | 155,438 | $ | 155,361 | $ | 152,444 | $ | 153,582 | |||||||||
Deferred tax assets arising from net operating loss and tax credit carryforwards phased in during transition | (5,705 | ) | (6,031 | ) | (8,905 | ) | (10,502 | ) | (11,118 | ) | |||||||||
DVA related to liabilities and derivatives phased in during transition | 384 | 498 | 925 | 974 | 1,229 | ||||||||||||||
Defined benefit pension fund assets phased in during transition | (476 | ) | (459 | ) | (599 | ) | (663 | ) | (658 | ) | |||||||||
Accumulated OCI phased in during transition | (1,884 | ) | (378 | ) | (1,592 | ) | (2,399 | ) | (1,597 | ) | |||||||||
Intangibles phased in during transition | (1,751 | ) | (1,821 | ) | (2,556 | ) | (2,697 | ) | (2,854 | ) | |||||||||
Other adjustments and deductions phased in during transition | (588 | ) | (48 | ) | (1,417 | ) | (2,051 | ) | (1,401 | ) | |||||||||
Common equity tier 1 capital (fully phased-in) | $ | 148,306 | $ | 147,199 | $ | 141,217 | $ | 135,106 | $ | 137,183 | |||||||||
Risk-weighted assets – As reported to Basel 3 (fully phased-in) | |||||||||||||||||||
As reported risk-weighted assets (3) | $ | 1,407,509 | $ | 1,405,267 | $ | 1,261,544 | $ | 1,271,723 | $ | 1,284,924 | |||||||||
Change in risk-weighted assets from reported to fully phased-in | 25,461 | 25,394 | 153,722 | 146,516 | 151,901 | ||||||||||||||
Basel 3 Standardized approach risk-weighted assets (fully phased-in) | 1,432,970 | 1,430,661 | 1,415,266 | 1,418,239 | 1,436,825 | ||||||||||||||
Change in risk-weighted assets for advanced models | (6,067 | ) | 30,529 | 50,213 | (8,375 | ) | (49,390 | ) | |||||||||||
Basel 3 Advanced approaches risk-weighted assets (fully phased-in) | $ | 1,426,903 | $ | 1,461,190 | $ | 1,465,479 | $ | 1,409,864 | $ | 1,387,435 | |||||||||
Regulatory capital ratios | |||||||||||||||||||
Basel 3 Standardized approach Common equity tier 1 (transition) (3) | 11.2 | % | 11.1 | % | 12.3 | % | 12.0 | % | 12.0 | % | |||||||||
Basel 3 Standardized approach Common equity tier 1 (fully phased-in) | 10.3 | 10.3 | 10.0 | 9.5 | 9.5 | ||||||||||||||
Basel 3 Advanced approaches Common equity tier 1 (fully phased-in) | 10.4 | 10.1 | 9.6 | 9.6 | 9.9 | ||||||||||||||
(1) | Regulatory capital ratios are preliminary. |
(2) | Basel 3 Common equity tier 1 capital and risk-weighted assets on a fully phased-in basis are non-GAAP financial measures. For reconciliations to GAAP financial measures, see above. The Corporation’s fully phased-in Basel 3 estimates are based on its current understanding of the Standardized and Advanced approaches under the Basel 3 rules. Under the Basel 3 Advanced approaches, risk-weighted assets are determined primarily for market risk and credit risk, similar to the Standardized approach, but also incorporate operational risk and a credit valuation adjustment component. Market risk capital measurements are consistent with the Standardized approach, except for securitization exposures, where the Supervisory Formula Approach is also permitted. Credit risk exposures are measured using internal ratings-based models to determine the applicable risk weight by estimating the probability of default, loss given default and, in certain instances, exposure at default. The internal analytical models primarily rely on internal historical default and loss experience. The calculations under Basel 3 require management to make estimates, assumptions and interpretations, including the probability of future events based on historical experience. Actual results could differ from those estimates and assumptions. These estimates assume approval by U.S. banking regulators of our internal analytical models, including approval of the internal models methodology, but do not include the benefit of the removal of the surcharge applicable to the comprehensive risk measure. Our estimates under the Basel 3 Advanced approaches may be refined over time as a result of further rulemaking or clarification by U.S. banking regulators or as our understanding and interpretation of the rules evolve. The U.S. banking regulators have requested modifications to certain internal analytical models including the wholesale (e.g., commercial) and other credit models which would increase our risk-weighted assets and, as a result, negatively impact our capital ratios. If the requested modifications to these models were included, the estimated Common equity tier 1 capital ratio under the Basel 3 Advanced approaches on a fully phased-in basis would be approximately 9.3 percent at June 30, 2015. The Corporation is currently working with the U.S. banking regulators in order to exit parallel run. |
(3) | Common equity tier 1 capital ratios at June 30, 2015 and March 31, 2015 reflect the migration of the risk-weighted assets calculation from the general risk-based approach to the Basel 3 Standardized approach, and Common equity tier 1 capital includes the 2015 phase-in of regulatory capital transition provisions. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 9 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Net Interest Income Excluding Trading-related Net Interest Income | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Net interest income (FTE basis) | ||||||||||||||||||||||||||||
As reported | $ | 20,386 | $ | 20,512 | $ | 10,716 | $ | 9,670 | $ | 9,865 | $ | 10,444 | $ | 10,226 | ||||||||||||||
Impact of trading-related net interest income | (1,838 | ) | (1,769 | ) | (921 | ) | (917 | ) | (939 | ) | (907 | ) | (864 | ) | ||||||||||||||
Net interest income excluding trading-related net interest income (1) | $ | 18,548 | $ | 18,743 | $ | 9,795 | $ | 8,753 | $ | 8,926 | $ | 9,537 | $ | 9,362 | ||||||||||||||
Average earning assets | ||||||||||||||||||||||||||||
As reported | $ | 1,810,178 | $ | 1,822,177 | $ | 1,815,892 | $ | 1,804,399 | $ | 1,802,121 | $ | 1,813,482 | $ | 1,840,850 | ||||||||||||||
Impact of trading-related earning assets | (418,729 | ) | (453,105 | ) | (419,238 | ) | (418,214 | ) | (435,408 | ) | (441,661 | ) | (463,395 | ) | ||||||||||||||
Average earning assets excluding trading-related earning assets (1) | $ | 1,391,449 | $ | 1,369,072 | $ | 1,396,654 | $ | 1,386,185 | $ | 1,366,713 | $ | 1,371,821 | $ | 1,377,455 | ||||||||||||||
Net interest yield contribution (FTE basis) (2) | ||||||||||||||||||||||||||||
As reported | 2.27 | % | 2.26 | % | 2.37 | % | 2.17 | % | 2.18 | % | 2.29 | % | 2.22 | % | ||||||||||||||
Impact of trading-related activities | 0.41 | 0.49 | 0.44 | 0.38 | 0.42 | 0.47 | 0.50 | |||||||||||||||||||||
Net interest yield on earning assets excluding trading-related activities (1) | 2.68 | % | 2.75 | % | 2.81 | % | 2.55 | % | 2.60 | % | 2.76 | % | 2.72 | % | ||||||||||||||
(1) | Represents a non-GAAP financial measure. |
(2) | Calculated on an annualized basis. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 10 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||
Quarterly Average Balances and Interest Rates – Fully Taxable-equivalent Basis | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Second Quarter 2015 | First Quarter 2015 | Second Quarter 2014 | |||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||||||||||||
Earning assets | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | $ | 125,762 | $ | 81 | 0.26 | % | $ | 126,189 | $ | 84 | 0.27 | % | $ | 123,582 | $ | 85 | 0.28 | % | |||||||||||||||||
Time deposits placed and other short-term investments | 8,183 | 34 | 1.63 | 8,379 | 33 | 1.61 | 10,509 | 40 | 1.51 | ||||||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 214,326 | 268 | 0.50 | 213,931 | 231 | 0.44 | 235,393 | 298 | 0.51 | ||||||||||||||||||||||||||
Trading account assets | 137,137 | 1,114 | 3.25 | 138,946 | 1,122 | 3.26 | 147,798 | 1,214 | 3.29 | ||||||||||||||||||||||||||
Debt securities | 386,357 | 3,082 | 3.21 | 383,120 | 1,898 | 2.01 | 345,889 | 2,133 | 2.46 | ||||||||||||||||||||||||||
Loans and leases (1): | |||||||||||||||||||||||||||||||||||
Residential mortgage | 207,356 | 1,782 | 3.44 | 215,030 | 1,851 | 3.45 | 243,406 | 2,195 | 3.61 | ||||||||||||||||||||||||||
Home equity | 82,640 | 769 | 3.73 | 84,915 | 770 | 3.66 | 90,729 | 842 | 3.72 | ||||||||||||||||||||||||||
U.S. credit card | 87,460 | 1,980 | 9.08 | 88,695 | 2,027 | 9.27 | 88,058 | 2,042 | 9.30 | ||||||||||||||||||||||||||
Non-U.S. credit card | 10,012 | 264 | 10.56 | 10,002 | 262 | 10.64 | 11,759 | 308 | 10.51 | ||||||||||||||||||||||||||
Direct/Indirect consumer | 83,698 | 504 | 2.42 | 80,713 | 491 | 2.47 | 82,102 | 524 | 2.56 | ||||||||||||||||||||||||||
Other consumer | 1,885 | 15 | 3.14 | 1,847 | 15 | 3.29 | 2,011 | 18 | 3.60 | ||||||||||||||||||||||||||
Total consumer | 473,051 | 5,314 | 4.50 | 481,202 | 5,416 | 4.54 | 518,065 | 5,929 | 4.58 | ||||||||||||||||||||||||||
U.S. commercial | 244,540 | 1,705 | 2.80 | 234,907 | 1,645 | 2.84 | 230,486 | 1,670 | 2.91 | ||||||||||||||||||||||||||
Commercial real estate | 50,478 | 382 | 3.03 | 48,234 | 347 | 2.92 | 48,315 | 357 | 2.97 | ||||||||||||||||||||||||||
Commercial lease financing | 24,723 | 180 | 2.92 | 24,495 | 216 | 3.53 | 24,409 | 193 | 3.16 | ||||||||||||||||||||||||||
Non-U.S. commercial | 88,623 | 479 | 2.17 | 83,555 | 485 | 2.35 | 91,305 | 571 | 2.51 | ||||||||||||||||||||||||||
Total commercial | 408,364 | 2,746 | 2.70 | 391,191 | 2,693 | 2.79 | 394,515 | 2,791 | 2.84 | ||||||||||||||||||||||||||
Total loans and leases | 881,415 | 8,060 | 3.67 | 872,393 | 8,109 | 3.75 | 912,580 | 8,720 | 3.83 | ||||||||||||||||||||||||||
Other earning assets | 62,712 | 721 | 4.59 | 61,441 | 705 | 4.66 | 65,099 | 665 | 4.09 | ||||||||||||||||||||||||||
Total earning assets (2) | 1,815,892 | 13,360 | 2.95 | 1,804,399 | 12,182 | 2.73 | 1,840,850 | 13,155 | 2.86 | ||||||||||||||||||||||||||
Cash and due from banks | 30,751 | 27,695 | 27,377 | ||||||||||||||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 305,323 | 306,480 | 301,328 | ||||||||||||||||||||||||||||||||
Total assets | $ | 2,151,966 | $ | 2,138,574 | $ | 2,169,555 | |||||||||||||||||||||||||||||
(1) | Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan. |
(2) | The impact of interest rate risk management derivatives on interest income is presented below. Interest income includes the impact of interest rate risk management contracts, which increased (decreased) interest income on: |
Second Quarter 2015 | First Quarter 2015 | Second Quarter 2014 | ||||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | $ | 13 | $ | 12 | $ | 14 | ||||||||||||||||||||
Debt securities | (3 | ) | (8 | ) | (13 | ) | ||||||||||||||||||||
U.S. commercial loans and leases | (18 | ) | (15 | ) | (14 | ) | ||||||||||||||||||||
Net hedge expense on assets | $ | (8 | ) | $ | (11 | ) | $ | (13 | ) |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 11 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||
Quarterly Average Balances and Interest Rates – Fully Taxable-equivalent Basis (continued) | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Second Quarter 2015 | First Quarter 2015 | Second Quarter 2014 | |||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||
U.S. interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
Savings | $ | 47,381 | $ | 2 | 0.02 | % | $ | 46,224 | $ | 2 | 0.02 | % | $ | 47,450 | $ | — | — | % | |||||||||||||||||
NOW and money market deposit accounts | 536,201 | 71 | 0.05 | 531,827 | 67 | 0.05 | 519,399 | 79 | 0.06 | ||||||||||||||||||||||||||
Consumer CDs and IRAs | 55,832 | 42 | 0.30 | 58,704 | 45 | 0.31 | 68,706 | 70 | 0.41 | ||||||||||||||||||||||||||
Negotiable CDs, public funds and other deposits | 29,904 | 22 | 0.30 | 28,796 | 22 | 0.31 | 33,426 | 30 | 0.35 | ||||||||||||||||||||||||||
Total U.S. interest-bearing deposits | 669,318 | 137 | 0.08 | 665,551 | 136 | 0.08 | 668,981 | 179 | 0.11 | ||||||||||||||||||||||||||
Non-U.S. interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
Banks located in non-U.S. countries | 5,162 | 9 | 0.67 | 4,544 | 8 | 0.74 | 10,537 | 15 | 0.56 | ||||||||||||||||||||||||||
Governments and official institutions | 1,239 | 1 | 0.38 | 1,382 | 1 | 0.21 | 1,754 | 1 | 0.12 | ||||||||||||||||||||||||||
Time, savings and other | 55,030 | 69 | 0.51 | 54,276 | 75 | 0.55 | 64,078 | 87 | 0.55 | ||||||||||||||||||||||||||
Total non-U.S. interest-bearing deposits | 61,431 | 79 | 0.52 | 60,202 | 84 | 0.56 | 76,369 | 103 | 0.54 | ||||||||||||||||||||||||||
Total interest-bearing deposits | 730,749 | 216 | 0.12 | 725,753 | 220 | 0.12 | 745,350 | 282 | 0.15 | ||||||||||||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings | 252,088 | 686 | 1.09 | 244,134 | 585 | 0.97 | 271,247 | 765 | 1.13 | ||||||||||||||||||||||||||
Trading account liabilities | 77,772 | 335 | 1.73 | 78,787 | 394 | 2.03 | 95,154 | 398 | 1.68 | ||||||||||||||||||||||||||
Long-term debt | 242,230 | 1,407 | 2.33 | 240,127 | 1,313 | 2.20 | 259,825 | 1,484 | 2.29 | ||||||||||||||||||||||||||
Total interest-bearing liabilities (1) | 1,302,839 | 2,644 | 0.81 | 1,288,801 | 2,512 | 0.79 | 1,371,576 | 2,929 | 0.86 | ||||||||||||||||||||||||||
Noninterest-bearing sources: | |||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 416,040 | 404,973 | 383,213 | ||||||||||||||||||||||||||||||||
Other liabilities | 182,033 | 199,056 | 178,963 | ||||||||||||||||||||||||||||||||
Shareholders' equity | 251,054 | 245,744 | 235,803 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,151,966 | $ | 2,138,574 | $ | 2,169,555 | |||||||||||||||||||||||||||||
Net interest spread | 2.14 | % | 1.94 | % | 2.00 | % | |||||||||||||||||||||||||||||
Impact of noninterest-bearing sources | 0.23 | 0.23 | 0.22 | ||||||||||||||||||||||||||||||||
Net interest income/yield on earning assets | $ | 10,716 | 2.37 | % | $ | 9,670 | 2.17 | % | $ | 10,226 | 2.22 | % | |||||||||||||||||||||||
(1) | The impact of interest rate risk management derivatives on interest expense is presented below. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest expense on: |
Second Quarter 2015 | First Quarter 2015 | Second Quarter 2014 | ||||||||||||||||||||||||
NOW and money market deposit accounts | $ | (1 | ) | $ | — | $ | (1 | ) | ||||||||||||||||||
Consumer CDs and IRAs | 6 | 6 | 12 | |||||||||||||||||||||||
Negotiable CDs, public funds and other deposits | 4 | 3 | 4 | |||||||||||||||||||||||
Banks located in non-U.S. countries | 1 | 1 | 6 | |||||||||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings | 247 | 249 | 263 | |||||||||||||||||||||||
Long-term debt | (766 | ) | (841 | ) | (905 | ) | ||||||||||||||||||||
Net hedge income on liabilities | $ | (509 | ) | $ | (582 | ) | $ | (621 | ) |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 12 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||
Year-to-Date Average Balances and Interest Rates – Fully Taxable-equivalent Basis | ||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||
Six Months Ended June 30 | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||||||||||
Earning assets | ||||||||||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | $ | 125,974 | $ | 165 | 0.26 | % | $ | 118,106 | $ | 157 | 0.27 | % | ||||||||||||||||||
Time deposits placed and other short-term investments | 8,280 | 67 | 1.62 | 12,185 | 88 | 1.46 | ||||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 214,130 | 499 | 0.47 | 224,012 | 562 | 0.51 | ||||||||||||||||||||||||
Trading account assets | 138,036 | 2,236 | 3.26 | 147,691 | 2,427 | 3.31 | ||||||||||||||||||||||||
Debt securities | 384,747 | 4,980 | 2.61 | 337,845 | 4,139 | 2.43 | ||||||||||||||||||||||||
Loans and leases (1): | ||||||||||||||||||||||||||||||
Residential mortgage | 211,172 | 3,633 | 3.44 | 245,472 | 4,433 | 3.61 | ||||||||||||||||||||||||
Home equity | 83,771 | 1,539 | 3.69 | 91,736 | 1,695 | 3.72 | ||||||||||||||||||||||||
U.S. credit card | 88,074 | 4,007 | 9.18 | 88,797 | 4,134 | 9.39 | ||||||||||||||||||||||||
Non-U.S. credit card | 10,007 | 526 | 10.60 | 11,657 | 616 | 10.65 | ||||||||||||||||||||||||
Direct/Indirect consumer | 82,214 | 995 | 2.44 | 81,916 | 1,054 | 2.59 | ||||||||||||||||||||||||
Other consumer | 1,866 | 30 | 3.22 | 1,987 | 35 | 3.63 | ||||||||||||||||||||||||
Total consumer | 477,104 | 10,730 | 4.52 | 521,565 | 11,967 | 4.61 | ||||||||||||||||||||||||
U.S. commercial | 239,751 | 3,350 | 2.82 | 229,279 | 3,322 | 2.92 | ||||||||||||||||||||||||
Commercial real estate | 49,362 | 729 | 2.98 | 48,533 | 725 | 3.01 | ||||||||||||||||||||||||
Commercial lease financing | 24,609 | 396 | 3.22 | 24,567 | 427 | 3.47 | ||||||||||||||||||||||||
Non-U.S. commercial | 86,103 | 964 | 2.26 | 92,068 | 1,114 | 2.44 | ||||||||||||||||||||||||
Total commercial | 399,825 | 5,439 | 2.74 | 394,447 | 5,588 | 2.85 | ||||||||||||||||||||||||
Total loans and leases | 876,929 | 16,169 | 3.71 | 916,012 | 17,555 | 3.85 | ||||||||||||||||||||||||
Other earning assets | 62,082 | 1,426 | 4.62 | 66,326 | 1,362 | 4.13 | ||||||||||||||||||||||||
Total earning assets (2) | 1,810,178 | 25,542 | 2.84 | 1,822,177 | 26,290 | 2.90 | ||||||||||||||||||||||||
Cash and due from banks | 29,231 | 27,815 | ||||||||||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 305,898 | 304,502 | ||||||||||||||||||||||||||||
Total assets | $ | 2,145,307 | $ | 2,154,494 | ||||||||||||||||||||||||||
(1) | Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan. |
(2) | The impact of interest rate risk management derivatives on interest income is presented below. Interest income includes the impact of interest rate risk management contracts, which increased (decreased) interest income on: |
2015 | 2014 | |||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | $ | 25 | $ | 27 | ||||||||||||||
Debt securities | (11 | ) | (15 | ) | ||||||||||||||
U.S. commercial loans and leases | (33 | ) | (30 | ) | ||||||||||||||
Net hedge expense on assets | $ | (19 | ) | $ | (18 | ) |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 13 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||
Year-to-Date Average Balances and Interest Rates – Fully Taxable-equivalent Basis (continued) | ||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||
Six Months Ended June 30 | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||
U.S. interest-bearing deposits: | ||||||||||||||||||||||||||||||
Savings | $ | 46,806 | $ | 4 | 0.02 | % | $ | 46,329 | $ | 1 | 0.01 | % | ||||||||||||||||||
NOW and money market deposit accounts | 534,026 | 138 | 0.05 | 521,307 | 162 | 0.06 | ||||||||||||||||||||||||
Consumer CDs and IRAs | 57,260 | 87 | 0.31 | 69,916 | 154 | 0.44 | ||||||||||||||||||||||||
Negotiable CDs, public funds and other deposits | 29,353 | 44 | 0.31 | 31,637 | 57 | 0.36 | ||||||||||||||||||||||||
Total U.S. interest-bearing deposits | 667,445 | 273 | 0.08 | 669,189 | 374 | 0.11 | ||||||||||||||||||||||||
Non-U.S. interest-bearing deposits: | ||||||||||||||||||||||||||||||
Banks located in non-U.S. countries | 4,855 | 17 | 0.70 | 10,803 | 31 | 0.57 | ||||||||||||||||||||||||
Governments and official institutions | 1,310 | 2 | 0.29 | 1,805 | 1 | 0.12 | ||||||||||||||||||||||||
Time, savings and other | 54,655 | 144 | 0.53 | 62,302 | 167 | 0.54 | ||||||||||||||||||||||||
Total non-U.S. interest-bearing deposits | 60,820 | 163 | 0.54 | 74,910 | 199 | 0.53 | ||||||||||||||||||||||||
Total interest-bearing deposits | 728,265 | 436 | 0.12 | 744,099 | 573 | 0.16 | ||||||||||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings | 248,133 | 1,271 | 1.03 | 262,161 | 1,372 | 1.06 | ||||||||||||||||||||||||
Trading account liabilities | 78,277 | 729 | 1.88 | 92,814 | 833 | 1.81 | ||||||||||||||||||||||||
Long-term debt | 241,184 | 2,720 | 2.27 | 256,768 | 3,000 | 2.34 | ||||||||||||||||||||||||
Total interest-bearing liabilities (1) | 1,295,859 | 5,156 | 0.80 | 1,355,842 | 5,778 | 0.86 | ||||||||||||||||||||||||
Noninterest-bearing sources: | ||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 410,536 | 379,300 | ||||||||||||||||||||||||||||
Other liabilities | 190,499 | 183,173 | ||||||||||||||||||||||||||||
Shareholders' equity | 248,413 | 236,179 | ||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,145,307 | $ | 2,154,494 | ||||||||||||||||||||||||||
Net interest spread | 2.04 | % | 2.04 | % | ||||||||||||||||||||||||||
Impact of noninterest-bearing sources | 0.23 | 0.22 | ||||||||||||||||||||||||||||
Net interest income/yield on earning assets | $ | 20,386 | 2.27 | % | $ | 20,512 | 2.26 | % | ||||||||||||||||||||||
(1) | The impact of interest rate risk management derivatives on interest expense is presented below. Interest expense includes the impact of interest rate risk management contracts, which increased(decreased) interest expense on: |
2015 | 2014 | |||||||||||||||||
NOW and money market deposit accounts | $ | (1 | ) | $ | (1 | ) | ||||||||||||
Consumer CDs and IRAs | 12 | 32 | ||||||||||||||||
Negotiable CDs, public funds and other deposits | 7 | 7 | ||||||||||||||||
Banks located in non-U.S. countries | 2 | 9 | ||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings | 496 | 520 | ||||||||||||||||
Long-term debt | (1,607 | ) | (1,780 | ) | ||||||||||||||
Net hedge income on liabilities | $ | (1,091 | ) | $ | (1,213 | ) |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 14 |
Bank of America Corporation and Subsidiaries | |||||||||||||||
Debt Securities and Available-for-Sale Marketable Equity Securities | |||||||||||||||
(Dollars in millions) | |||||||||||||||
June 30, 2015 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Available-for-sale debt securities | |||||||||||||||
U.S. Treasury and agency securities | $ | 57,699 | $ | 661 | $ | (16 | ) | $ | 58,344 | ||||||
Mortgage-backed securities: | |||||||||||||||
Agency | 189,228 | 931 | (1,899 | ) | 188,260 | ||||||||||
Agency-collateralized mortgage obligations | 12,749 | 224 | (42 | ) | 12,931 | ||||||||||
Non-agency residential | 3,649 | 299 | (62 | ) | 3,886 | ||||||||||
Commercial | 5,087 | 54 | (31 | ) | 5,110 | ||||||||||
Non-U.S. securities | 6,124 | 25 | (4 | ) | 6,145 | ||||||||||
Corporate/Agency bonds | 252 | 6 | (1 | ) | 257 | ||||||||||
Other taxable securities, substantially all asset-backed securities | 10,389 | 35 | (21 | ) | 10,403 | ||||||||||
Total taxable securities | 285,177 | 2,235 | (2,076 | ) | 285,336 | ||||||||||
Tax-exempt securities | 10,811 | 15 | (25 | ) | 10,801 | ||||||||||
Total available-for-sale debt securities | 295,988 | 2,250 | (2,101 | ) | 296,137 | ||||||||||
Other debt securities carried at fair value | 36,452 | 164 | (446 | ) | 36,170 | ||||||||||
Total debt securities carried at fair value | 332,440 | 2,414 | (2,547 | ) | 332,307 | ||||||||||
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities | 60,072 | 160 | (1,069 | ) | 59,163 | ||||||||||
Total debt securities | $ | 392,512 | $ | 2,574 | $ | (3,616 | ) | $ | 391,470 | ||||||
Available-for-sale marketable equity securities (1) | $ | 336 | $ | 104 | $ | — | $ | 440 | |||||||
March 31, 2015 | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
U.S. Treasury and agency securities | $ | 58,501 | $ | 1,018 | $ | (3 | ) | $ | 59,516 | ||||||
Mortgage-backed securities: | |||||||||||||||
Agency | 179,255 | 2,858 | (275 | ) | 181,838 | ||||||||||
Agency-collateralized mortgage obligations | 13,696 | 296 | (31 | ) | 13,961 | ||||||||||
Non-agency residential | 3,791 | 295 | (60 | ) | 4,026 | ||||||||||
Commercial | 3,853 | 137 | (1 | ) | 3,989 | ||||||||||
Non-U.S. securities | 5,923 | 32 | (3 | ) | 5,952 | ||||||||||
Corporate/Agency bonds | 356 | 10 | (1 | ) | 365 | ||||||||||
Other taxable securities, substantially all asset-backed securities | 9,554 | 42 | (18 | ) | 9,578 | ||||||||||
Total taxable securities | 274,929 | 4,688 | (392 | ) | 279,225 | ||||||||||
Tax-exempt securities | 9,725 | 11 | (19 | ) | 9,717 | ||||||||||
Total available-for-sale debt securities | 284,654 | 4,699 | (411 | ) | 288,942 | ||||||||||
Other debt securities carried at fair value | 35,166 | 264 | (198 | ) | 35,232 | ||||||||||
Total debt securities carried at fair value | 319,820 | 4,963 | (609 | ) | 324,174 | ||||||||||
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities | 59,815 | 496 | (422 | ) | 59,889 | ||||||||||
Total debt securities | $ | 379,635 | $ | 5,459 | $ | (1,031 | ) | $ | 384,063 | ||||||
Available-for-sale marketable equity securities (1) | $ | 336 | $ | 59 | $ | — | $ | 395 | |||||||
(1) | Classified in other assets on the Consolidated Balance Sheet. |
Other Debt Securities Carried at Fair Value | |||||||
(Dollars in millions) | June 30 2015 | March 31 2015 | |||||
U.S. Treasury and agency securities | $ | — | $ | 1,272 | |||
Mortgage-backed securities: | |||||||
Agency | 14,885 | 15,670 | |||||
Agency-collateralized mortgage obligations | 9 | — | |||||
Non-agency residential | 3,787 | 3,869 | |||||
Non-U.S. securities (1) | 17,198 | 14,124 | |||||
Other taxable securities, substantially all asset-backed securities | 291 | 297 | |||||
Total | $ | 36,170 | $ | 35,232 |
(1) | These securities are primarily used to satisfy certain international regulatory liquidity requirements. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 15 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Quarterly Results by Business Segment | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Second Quarter 2015 | |||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 10,716 | $ | 4,910 | $ | 1,359 | $ | 2,213 | $ | 1,028 | $ | 416 | $ | 790 | |||||||||||||||
Card income | 1,477 | 1,206 | 41 | 128 | 37 | — | 65 | ||||||||||||||||||||||
Service charges | 1,857 | 1,033 | 19 | 728 | 73 | — | 4 | ||||||||||||||||||||||
Investment and brokerage services | 3,387 | 68 | 2,749 | 20 | 550 | — | — | ||||||||||||||||||||||
Investment banking income (loss) | 1,526 | 1 | 84 | 777 | 718 | — | (54 | ) | |||||||||||||||||||||
Equity investment income | 88 | — | 3 | 3 | 71 | — | 11 | ||||||||||||||||||||||
Trading account profits (losses) | 1,647 | — | 53 | 20 | 1,693 | (1 | ) | (118 | ) | ||||||||||||||||||||
Mortgage banking income | 1,001 | 257 | 2 | — | — | 682 | 60 | ||||||||||||||||||||||
Gains (losses) on sales of debt securities | 168 | — | (1 | ) | — | 7 | — | 162 | |||||||||||||||||||||
Other income (loss) | 478 | 69 | 264 | 226 | 82 | (8 | ) | (155 | ) | ||||||||||||||||||||
Total noninterest income | 11,629 | 2,634 | 3,214 | 1,902 | 3,231 | 673 | (25 | ) | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 22,345 | 7,544 | 4,573 | 4,115 | 4,259 | 1,089 | 765 | ||||||||||||||||||||||
Provision for credit losses | 780 | 506 | 15 | 177 | 6 | 57 | 19 | ||||||||||||||||||||||
Noninterest expense | 13,818 | 4,321 | 3,457 | 1,941 | 2,723 | 961 | 415 | ||||||||||||||||||||||
Income before income taxes (FTE basis) | 7,747 | 2,717 | 1,101 | 1,997 | 1,530 | 71 | 331 | ||||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 2,427 | 1,013 | 411 | 746 | 537 | 26 | (306 | ) | |||||||||||||||||||||
Net income | $ | 5,320 | $ | 1,704 | $ | 690 | $ | 1,251 | $ | 993 | $ | 45 | $ | 637 | |||||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 881,415 | $ | 201,703 | $ | 130,270 | $ | 300,631 | $ | 61,908 | $ | 30,897 | $ | 156,006 | |||||||||||||||
Total assets (1) | 2,151,966 | 609,019 | 268,835 | 361,853 | 602,732 | 52,449 | 257,078 | ||||||||||||||||||||||
Total deposits | 1,146,789 | 545,454 | 239,974 | 288,117 | 39,718 | n/m | 22,482 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 886,449 | $ | 204,380 | $ | 132,377 | $ | 307,085 | $ | 66,026 | $ | 30,024 | $ | 146,557 | |||||||||||||||
Total assets (1) | 2,149,034 | 611,122 | 267,021 | 367,045 | 580,955 | 50,853 | 272,038 | ||||||||||||||||||||||
Total deposits | 1,149,560 | 547,343 | 237,624 | 292,261 | 39,326 | n/m | 22,964 | ||||||||||||||||||||||
First Quarter 2015 | |||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 9,670 | $ | 4,871 | $ | 1,351 | $ | 2,260 | $ | 1,009 | $ | 428 | $ | (249 | ) | ||||||||||||||
Card income | 1,394 | 1,167 | 49 | 100 | 9 | — | 69 | ||||||||||||||||||||||
Service charges | 1,764 | 966 | 18 | 710 | 65 | — | 5 | ||||||||||||||||||||||
Investment and brokerage services | 3,378 | 65 | 2,723 | 24 | 567 | — | (1 | ) | |||||||||||||||||||||
Investment banking income (loss) | 1,487 | — | 72 | 852 | 630 | — | (67 | ) | |||||||||||||||||||||
Equity investment income (loss) | 27 | (1 | ) | — | 9 | 18 | — | 1 | |||||||||||||||||||||
Trading account profits (losses) | 2,247 | — | 55 | 64 | 2,127 | 2 | (1 | ) | |||||||||||||||||||||
Mortgage banking income (loss) | 694 | 288 | 1 | — | — | 461 | (56 | ) | |||||||||||||||||||||
Gains on sales of debt securities | 268 | 1 | 1 | — | 3 | — | 263 | ||||||||||||||||||||||
Other income (loss) | 492 | 93 | 247 | 259 | 186 | 23 | (316 | ) | |||||||||||||||||||||
Total noninterest income | 11,751 | 2,579 | 3,166 | 2,018 | 3,605 | 486 | (103 | ) | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 21,421 | 7,450 | 4,517 | 4,278 | 4,614 | 914 | (352 | ) | |||||||||||||||||||||
Provision for credit losses | 765 | 716 | 23 | 96 | 21 | 91 | (182 | ) | |||||||||||||||||||||
Noninterest expense | 15,695 | 4,389 | 3,459 | 2,010 | 3,131 | 1,203 | 1,503 | ||||||||||||||||||||||
Income (loss) before income taxes (FTE basis) | 4,961 | 2,345 | 1,035 | 2,172 | 1,462 | (380 | ) | (1,673 | ) | ||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 1,604 | 870 | 384 | 806 | 517 | (141 | ) | (832 | ) | ||||||||||||||||||||
Net income (loss) | $ | 3,357 | $ | 1,475 | $ | 651 | $ | 1,366 | $ | 945 | $ | (239 | ) | $ | (841 | ) | |||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 872,393 | $ | 199,581 | $ | 126,129 | $ | 289,522 | $ | 56,992 | $ | 32,411 | $ | 167,758 | |||||||||||||||
Total assets (1) | 2,138,574 | 594,916 | 275,130 | 361,826 | 598,595 | 52,617 | 255,490 | ||||||||||||||||||||||
Total deposits | 1,130,726 | 531,365 | 243,561 | 286,434 | 39,699 | n/m | 19,406 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 877,956 | $ | 200,153 | $ | 127,556 | $ | 295,653 | $ | 63,019 | $ | 31,690 | $ | 159,885 | |||||||||||||||
Total assets (1) | 2,143,545 | 613,130 | 272,777 | 365,121 | 586,843 | 53,538 | 252,136 | ||||||||||||||||||||||
Total deposits | 1,153,168 | 549,489 | 244,080 | 290,422 | 38,668 | n/m | 19,467 | ||||||||||||||||||||||
(1) | Total assets include asset allocations to match liabilities (i.e., deposits). |
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 16 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
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 | $ | 2,442 | $ | 962 | $ | 362 | $ | (85 | ) | ||||||||||||||
Card income | 1,441 | 1,152 | 46 | 117 | 38 | — | 88 | ||||||||||||||||||||||
Service charges | 1,866 | 1,039 | 19 | 725 | 76 | — | 7 | ||||||||||||||||||||||
Investment and brokerage services | 3,291 | 62 | 2,642 | 31 | 544 | — | 12 | ||||||||||||||||||||||
Investment banking income (loss) | 1,631 | (1 | ) | 75 | 834 | 760 | — | (37 | ) | ||||||||||||||||||||
Equity investment income | 357 | — | 2 | 1 | 259 | — | 95 | ||||||||||||||||||||||
Trading account profits (losses) | 1,832 | — | 45 | 33 | 1,768 | 3 | (17 | ) | |||||||||||||||||||||
Mortgage banking income (loss) | 527 | 237 | 1 | — | — | 369 | (80 | ) | |||||||||||||||||||||
Gains (losses) on sales of debt securities | 382 | 1 | — | — | (7 | ) | 6 | 382 | |||||||||||||||||||||
Other income (loss) | 407 | 99 | 274 | 255 | 199 | 60 | (480 | ) | |||||||||||||||||||||
Total noninterest income | 11,734 | 2,589 | 3,104 | 1,996 | 3,637 | 438 | (30 | ) | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 21,960 | 7,649 | 4,589 | 4,438 | 4,599 | 800 | (115 | ) | |||||||||||||||||||||
Provision for credit losses | 411 | 550 | (8 | ) | 136 | 20 | (39 | ) | (248 | ) | |||||||||||||||||||
Noninterest expense | 18,541 | 4,505 | 3,445 | 2,007 | 2,875 | 5,234 | 475 | ||||||||||||||||||||||
Income (loss) before income taxes (FTE basis) | 3,008 | 2,594 | 1,152 | 2,295 | 1,704 | (4,395 | ) | (342 | ) | ||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 717 | 960 | 426 | 850 | 602 | (1,654 | ) | (467 | ) | ||||||||||||||||||||
Net income (loss) | $ | 2,291 | $ | 1,634 | $ | 726 | $ | 1,445 | $ | 1,102 | $ | (2,741 | ) | $ | 125 | ||||||||||||||
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 | 359,755 | 617,156 | 55,626 | 291,723 | ||||||||||||||||||||||
Total deposits | 1,128,563 | 514,137 | 240,042 | 284,947 | 41,323 | n/m | 36,471 | ||||||||||||||||||||||
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 | 263,958 | 370,561 | 610,435 | 52,647 | 293,086 | ||||||||||||||||||||||
Total deposits | 1,134,329 | 514,838 | 237,046 | 295,382 | 41,951 | n/m | 33,824 | ||||||||||||||||||||||
(1) | Total assets include asset allocations to match liabilities (i.e., deposits). |
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 17 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Year-to-Date Results by Business Segment | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 20,386 | $ | 9,781 | $ | 2,710 | $ | 4,473 | $ | 2,037 | $ | 844 | $ | 541 | |||||||||||||||
Card income | 2,871 | 2,373 | 90 | 228 | 46 | — | 134 | ||||||||||||||||||||||
Service charges | 3,621 | 1,999 | 37 | 1,438 | 138 | — | 9 | ||||||||||||||||||||||
Investment and brokerage services | 6,765 | 133 | 5,472 | 44 | 1,117 | — | (1 | ) | |||||||||||||||||||||
Investment banking income (loss) | 3,013 | 1 | 156 | 1,629 | 1,348 | — | (121 | ) | |||||||||||||||||||||
Equity investment income (loss) | 115 | (1 | ) | 3 | 12 | 89 | — | 12 | |||||||||||||||||||||
Trading account profits (losses) | 3,894 | — | 108 | 84 | 3,820 | 1 | (119 | ) | |||||||||||||||||||||
Mortgage banking income | 1,695 | 545 | 3 | — | — | 1,143 | 4 | ||||||||||||||||||||||
Gains on sales of debt securities | 436 | 1 | — | — | 10 | — | 425 | ||||||||||||||||||||||
Other income (loss) | 970 | 162 | 511 | 485 | 268 | 15 | (471 | ) | |||||||||||||||||||||
Total noninterest income | 23,380 | 5,213 | 6,380 | 3,920 | 6,836 | 1,159 | (128 | ) | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 43,766 | 14,994 | 9,090 | 8,393 | 8,873 | 2,003 | 413 | ||||||||||||||||||||||
Provision for credit losses | 1,545 | 1,222 | 38 | 273 | 27 | 148 | (163 | ) | |||||||||||||||||||||
Noninterest expense | 29,513 | 8,710 | 6,916 | 3,951 | 5,854 | 2,164 | 1,918 | ||||||||||||||||||||||
Income (loss) before income taxes (FTE basis) | 12,708 | 5,062 | 2,136 | 4,169 | 2,992 | (309 | ) | (1,342 | ) | ||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 4,031 | 1,883 | 795 | 1,552 | 1,054 | (115 | ) | (1,138 | ) | ||||||||||||||||||||
Net income (loss) | $ | 8,677 | $ | 3,179 | $ | 1,341 | $ | 2,617 | $ | 1,938 | $ | (194 | ) | $ | (204 | ) | |||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 876,929 | $ | 200,648 | $ | 128,211 | $ | 295,107 | $ | 59,463 | $ | 31,650 | $ | 161,850 | |||||||||||||||
Total assets (1) | 2,145,307 | 602,006 | 271,965 | 361,840 | 600,675 | 52,532 | 256,289 | ||||||||||||||||||||||
Total deposits | 1,138,801 | 538,448 | 241,758 | 287,280 | 39,709 | n/m | 20,951 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 886,449 | $ | 204,380 | $ | 132,377 | $ | 307,085 | $ | 66,026 | $ | 30,024 | $ | 146,557 | |||||||||||||||
Total assets (1) | 2,149,034 | 611,122 | 267,021 | 367,045 | 580,955 | 50,853 | 272,038 | ||||||||||||||||||||||
Total deposits | 1,149,560 | 547,343 | 237,624 | 292,261 | 39,326 | n/m | 22,964 | ||||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | |||||||||||||||||||||||
Net interest income (FTE basis) | $ | 20,512 | $ | 10,130 | $ | 2,970 | $ | 4,946 | $ | 1,968 | $ | 739 | $ | (241 | ) | ||||||||||||||
Card income | 2,834 | 2,300 | 98 | 213 | 47 | — | 176 | ||||||||||||||||||||||
Service charges | 3,692 | 2,032 | 38 | 1,459 | 149 | — | 14 | ||||||||||||||||||||||
Investment and brokerage services | 6,560 | 123 | 5,246 | 51 | 1,110 | — | 30 | ||||||||||||||||||||||
Investment banking income (loss) | 3,173 | — | 140 | 1,656 | 1,496 | — | (119 | ) | |||||||||||||||||||||
Equity investment income | 1,141 | — | 4 | 57 | 287 | — | 793 | ||||||||||||||||||||||
Trading account profits (losses) | 4,299 | — | 91 | 76 | 4,135 | 5 | (8 | ) | |||||||||||||||||||||
Mortgage banking income (loss) | 939 | 415 | 1 | — | 1 | 660 | (138 | ) | |||||||||||||||||||||
Gains on sales of debt securities | 759 | 1 | — | — | 3 | 16 | 739 | ||||||||||||||||||||||
Other income (loss) | 818 | 299 | 548 | 506 | 429 | 66 | (1,030 | ) | |||||||||||||||||||||
Total noninterest income | 24,215 | 5,170 | 6,166 | 4,018 | 7,657 | 747 | 457 | ||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 44,727 | 15,300 | 9,136 | 8,964 | 9,625 | 1,486 | 216 | ||||||||||||||||||||||
Provision for credit losses | 1,420 | 1,359 | 15 | 417 | 38 | (27 | ) | (382 | ) | ||||||||||||||||||||
Noninterest expense | 40,779 | 9,000 | 6,803 | 4,184 | 5,964 | 12,637 | 2,191 | ||||||||||||||||||||||
Income (loss) before income taxes (FTE basis) | 2,528 | 4,941 | 2,318 | 4,363 | 3,623 | (11,124 | ) | (1,593 | ) | ||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 513 | 1,839 | 863 | 1,625 | 1,211 | (3,502 | ) | (1,523 | ) | ||||||||||||||||||||
Net income (loss) | $ | 2,015 | $ | 3,102 | $ | 1,455 | $ | 2,738 | $ | 2,412 | $ | (7,622 | ) | $ | (70 | ) | |||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 916,012 | $ | 195,916 | $ | 117,235 | $ | 287,857 | $ | 63,637 | $ | 37,401 | $ | 213,966 | |||||||||||||||
Total assets (1) | 2,154,494 | 574,107 | 268,518 | 359,669 | 609,370 | 56,508 | 286,322 | ||||||||||||||||||||||
Total deposits | 1,123,399 | 509,519 | 241,409 | 283,943 | 41,493 | n/m | 35,731 | ||||||||||||||||||||||
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 | 263,958 | 370,561 | 610,435 | 52,647 | 293,086 | ||||||||||||||||||||||
Total deposits | 1,134,329 | 514,838 | 237,046 | 295,382 | 41,951 | n/m | 33,824 | ||||||||||||||||||||||
(1) | Total assets include asset allocations to match liabilities (i.e., deposits). |
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 18 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Consumer Banking Segment Results | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 9,781 | $ | 10,130 | $ | 4,910 | $ | 4,871 | $ | 4,967 | $ | 5,081 | $ | 5,060 | |||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||
Card income | 2,373 | 2,300 | 1,206 | 1,167 | 1,324 | 1,219 | 1,152 | ||||||||||||||||||||||
Service charges | 1,999 | 2,032 | 1,033 | 966 | 1,042 | 1,085 | 1,039 | ||||||||||||||||||||||
Mortgage banking income | 545 | 415 | 257 | 288 | 193 | 206 | 237 | ||||||||||||||||||||||
All other income | 296 | 423 | 138 | 158 | 233 | 158 | 161 | ||||||||||||||||||||||
Total noninterest income | 5,213 | 5,170 | 2,634 | 2,579 | 2,792 | 2,668 | 2,589 | ||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 14,994 | 15,300 | 7,544 | 7,450 | 7,759 | 7,749 | 7,649 | ||||||||||||||||||||||
Provision for credit losses | 1,222 | 1,359 | 506 | 716 | 653 | 668 | 550 | ||||||||||||||||||||||
Noninterest expense | 8,710 | 9,000 | 4,321 | 4,389 | 4,407 | 4,447 | 4,505 | ||||||||||||||||||||||
Income before income taxes (FTE basis) | 5,062 | 4,941 | 2,717 | 2,345 | 2,699 | 2,634 | 2,594 | ||||||||||||||||||||||
Income tax expense (FTE basis) | 1,883 | 1,839 | 1,013 | 870 | 1,037 | 956 | 960 | ||||||||||||||||||||||
Net income | $ | 3,179 | $ | 3,102 | $ | 1,704 | $ | 1,475 | $ | 1,662 | $ | 1,678 | $ | 1,634 | |||||||||||||||
Net interest yield (FTE basis) | 3.49 | % | 3.80 | % | 3.44 | % | 3.54 | % | 3.61 | % | 3.71 | % | 3.74 | % | |||||||||||||||
Return on average allocated capital (1) | 22 | 21 | 24 | 21 | 22 | 22 | 22 | ||||||||||||||||||||||
Efficiency ratio (FTE basis) | 58.09 | 58.82 | 57.28 | 58.91 | 56.79 | 57.39 | 58.89 | ||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 200,648 | $ | 195,916 | $ | 201,703 | $ | 199,581 | $ | 199,215 | $ | 197,374 | $ | 195,413 | |||||||||||||||
Total earning assets (2) | 565,643 | 538,110 | 572,378 | 558,833 | 545,721 | 542,857 | 542,421 | ||||||||||||||||||||||
Total assets (2) | 602,006 | 574,107 | 609,019 | 594,916 | 582,116 | 578,927 | 578,514 | ||||||||||||||||||||||
Total deposits | 538,448 | 509,519 | 545,454 | 531,365 | 517,580 | 514,549 | 514,137 | ||||||||||||||||||||||
Allocated capital (1) | 29,000 | 30,000 | 29,000 | 29,000 | 30,000 | 30,000 | 30,000 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 204,380 | $ | 197,021 | $ | 204,380 | $ | 200,153 | $ | 202,000 | $ | 198,467 | $ | 197,021 | |||||||||||||||
Total earning assets (2) | 575,284 | 543,827 | 575,284 | 576,868 | 552,117 | 544,916 | 543,827 | ||||||||||||||||||||||
Total assets (2) | 611,122 | 579,870 | 611,122 | 613,130 | 589,048 | 580,381 | 579,870 | ||||||||||||||||||||||
Total deposits | 547,343 | 514,838 | 547,343 | 549,489 | 524,413 | 515,580 | 514,838 | ||||||||||||||||||||||
(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 45-48.) |
(2) | Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 19 |
Bank of America Corporation and Subsidiaries | |||||||||||||
Consumer Banking Year-to-Date Results | |||||||||||||
(Dollars in millions) | |||||||||||||
Six Months Ended June 30, 2015 | |||||||||||||
Total Consumer Banking | Deposits | Consumer Lending | |||||||||||
Net interest income (FTE basis) | $ | 9,781 | $ | 4,687 | $ | 5,094 | |||||||
Noninterest income: | |||||||||||||
Card income | 2,373 | 5 | 2,368 | ||||||||||
Service charges | 1,999 | 1,998 | 1 | ||||||||||
Mortgage banking income | 545 | — | 545 | ||||||||||
All other income | 296 | 223 | 73 | ||||||||||
Total noninterest income | 5,213 | 2,226 | 2,987 | ||||||||||
Total revenue, net of interest expense (FTE basis) | 14,994 | 6,913 | 8,081 | ||||||||||
Provision for credit losses | 1,222 | 87 | 1,135 | ||||||||||
Noninterest expense | 8,710 | 4,814 | 3,896 | ||||||||||
Income before income taxes (FTE basis) | 5,062 | 2,012 | 3,050 | ||||||||||
Income tax expense (FTE basis) | 1,883 | 748 | 1,135 | ||||||||||
Net income | $ | 3,179 | $ | 1,264 | $ | 1,915 | |||||||
Net interest yield (FTE basis) | 3.49 | % | 1.74 | % | 5.21 | % | |||||||
Return on average allocated capital (1) | 22 | 21 | 23 | ||||||||||
Efficiency ratio (FTE basis) | 58.09 | 69.64 | 48.21 | ||||||||||
Balance Sheet | |||||||||||||
Average | |||||||||||||
Total loans and leases | $ | 200,648 | $ | 5,834 | $ | 194,814 | |||||||
Total earning assets (2) | 565,643 | 542,441 | 197,279 | ||||||||||
Total assets (2) | 602,006 | 569,404 | 206,679 | ||||||||||
Total deposits | 538,448 | 537,353 | n/m | ||||||||||
Allocated capital (1) | 29,000 | 12,000 | 17,000 | ||||||||||
Period end | |||||||||||||
Total loans and leases | $ | 204,380 | $ | 5,834 | $ | 198,546 | |||||||
Total earning assets (2) | 575,284 | 551,705 | 201,319 | ||||||||||
Total assets (2) | 611,122 | 578,227 | 210,635 | ||||||||||
Total deposits | 547,343 | 546,169 | n/m | ||||||||||
Six Months Ended June 30, 2014 | |||||||||||||
Total Consumer Banking | Deposits | Consumer Lending | |||||||||||
Net interest income (FTE basis) | $ | 10,130 | $ | 4,736 | $ | 5,394 | |||||||
Noninterest income: | |||||||||||||
Card income | 2,300 | 5 | 2,295 | ||||||||||
Service charges | 2,032 | 2,031 | 1 | ||||||||||
Mortgage banking income | 415 | — | 415 | ||||||||||
All other income | 423 | 180 | 243 | ||||||||||
Total noninterest income | 5,170 | 2,216 | 2,954 | ||||||||||
Total revenue, net of interest expense (FTE basis) | 15,300 | 6,952 | 8,348 | ||||||||||
Provision for credit losses | 1,359 | 114 | 1,245 | ||||||||||
Noninterest expense | 9,000 | 4,938 | 4,062 | ||||||||||
Income before income taxes (FTE basis) | 4,941 | 1,900 | 3,041 | ||||||||||
Income tax expense (FTE basis) | 1,839 | 707 | 1,132 | ||||||||||
Net income | $ | 3,102 | $ | 1,193 | $ | 1,909 | |||||||
Net interest yield (FTE basis) | 3.80 | % | 1.86 | % | 5.64 | % | |||||||
Return on average allocated capital (1) | 21 | 22 | 20 | ||||||||||
Efficiency ratio (FTE basis) | 58.82 | 71.03 | 48.66 | ||||||||||
Balance Sheet | |||||||||||||
Average | |||||||||||||
Total loans and leases | $ | 195,916 | $ | 6,097 | $ | 189,819 | |||||||
Total earning assets (2) | 538,110 | 512,945 | 192,951 | ||||||||||
Total assets (2) | 574,107 | 539,661 | 202,232 | ||||||||||
Total deposits | 509,519 | 508,721 | 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 information is preliminary and based on company data available at the time of the presentation. | 20 |
Bank of America Corporation and Subsidiaries | |||||||||||||
Consumer Banking Quarterly Results | |||||||||||||
(Dollars in millions) | |||||||||||||
Second Quarter 2015 | |||||||||||||
Total Consumer Banking | Deposits | Consumer Lending | |||||||||||
Net interest income (FTE basis) | $ | 4,910 | $ | 2,390 | $ | 2,520 | |||||||
Noninterest income: | |||||||||||||
Card income | 1,206 | 2 | 1,204 | ||||||||||
Service charges | 1,033 | 1,032 | 1 | ||||||||||
Mortgage banking income | 257 | — | 257 | ||||||||||
All other income | 138 | 120 | 18 | ||||||||||
Total noninterest income | 2,634 | 1,154 | 1,480 | ||||||||||
Total revenue, net of interest expense (FTE basis) | 7,544 | 3,544 | 4,000 | ||||||||||
Provision for credit losses | 506 | 24 | 482 | ||||||||||
Noninterest expense | 4,321 | 2,363 | 1,958 | ||||||||||
Income before income taxes (FTE basis) | 2,717 | 1,157 | 1,560 | ||||||||||
Income tax expense (FTE basis) | 1,013 | 431 | 582 | ||||||||||
Net income | $ | 1,704 | $ | 726 | $ | 978 | |||||||
Net interest yield (FTE basis) | 3.44 | % | 1.75 | % | 5.09 | % | |||||||
Return on average allocated capital (1) | 24 | 24 | 23 | ||||||||||
Efficiency ratio (FTE basis) | 57.28 | 66.71 | 48.92 | ||||||||||
Balance Sheet | |||||||||||||
Average | |||||||||||||
Total loans and leases | $ | 201,703 | $ | 5,789 | $ | 195,914 | |||||||
Total earning assets (2) | 572,378 | 549,252 | 198,501 | ||||||||||
Total assets (2) | 609,019 | 576,417 | 207,977 | ||||||||||
Total deposits | 545,454 | 544,340 | n/m | ||||||||||
Allocated capital (1) | 29,000 | 12,000 | 17,000 | ||||||||||
Period end | |||||||||||||
Total loans and leases | $ | 204,380 | $ | 5,834 | $ | 198,546 | |||||||
Total earning assets (2) | 575,284 | 551,705 | 201,319 | ||||||||||
Total assets (2) | 611,122 | 578,227 | 210,635 | ||||||||||
Total deposits | 547,343 | 546,169 | n/m | ||||||||||
First Quarter 2015 | |||||||||||||
Total Consumer Banking | Deposits | Consumer Lending | |||||||||||
Net interest income (FTE basis) | $ | 4,871 | $ | 2,297 | $ | 2,574 | |||||||
Noninterest income: | |||||||||||||
Card income | 1,167 | 3 | 1,164 | ||||||||||
Service charges | 966 | 966 | — | ||||||||||
Mortgage banking income | 288 | — | 288 | ||||||||||
All other income | 158 | 103 | 55 | ||||||||||
Total noninterest income | 2,579 | 1,072 | 1,507 | ||||||||||
Total revenue, net of interest expense (FTE basis) | 7,450 | 3,369 | 4,081 | ||||||||||
Provision for credit losses | 716 | 63 | 653 | ||||||||||
Noninterest expense | 4,389 | 2,451 | 1,938 | ||||||||||
Income before income taxes (FTE basis) | 2,345 | 855 | 1,490 | ||||||||||
Income tax expense (FTE basis) | 870 | 317 | 553 | ||||||||||
Net income | $ | 1,475 | $ | 538 | $ | 937 | |||||||
Net interest yield (FTE basis) | 3.54 | % | 1.74 | % | 5.32 | % | |||||||
Return on average allocated capital (1) | 21 | 18 | 22 | ||||||||||
Efficiency ratio (FTE basis) | 58.91 | 72.71 | 47.51 | ||||||||||
Balance Sheet | |||||||||||||
Average | |||||||||||||
Total loans and leases | $ | 199,581 | $ | 5,879 | $ | 193,702 | |||||||
Total earning assets (2) | 558,833 | 535,555 | 196,044 | ||||||||||
Total assets (2) | 594,916 | 562,314 | 205,368 | ||||||||||
Total deposits | 531,365 | 530,290 | n/m | ||||||||||
Allocated capital (1) | 29,000 | 12,000 | 17,000 | ||||||||||
Period end | |||||||||||||
Total loans and leases | $ | 200,153 | $ | 5,824 | $ | 194,329 | |||||||
Total earning assets (2) | 576,868 | 553,574 | 197,738 | ||||||||||
Total assets (2) | 613,130 | 580,337 | 207,237 | ||||||||||
Total deposits | 549,489 | 548,303 | n/m | ||||||||||
For footnotes see page 22.
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 21 |
Bank of America Corporation and Subsidiaries | |||||||||||||
Consumer 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) | 58.89 | 70.12 | 49.28 | ||||||||||
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 | ||||||||||
(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 45-48.) |
(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 information is preliminary and based on company data available at the time of the presentation. | 22 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Consumer Banking Key Indicators | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
Average deposit balances | |||||||||||||||||||||||||||||
Checking | $ | 254,652 | $ | 232,527 | $ | 259,007 | $ | 250,248 | $ | 241,254 | $ | 238,133 | $ | 236,197 | |||||||||||||||
Savings | 45,140 | 44,685 | 45,748 | 44,525 | 43,972 | 45,124 | 45,769 | ||||||||||||||||||||||
MMS | 183,433 | 166,043 | 186,750 | 180,078 | 172,992 | 168,815 | 167,058 | ||||||||||||||||||||||
CDs and IRAs | 52,492 | 63,506 | 51,178 | 53,820 | 56,476 | 59,666 | 62,293 | ||||||||||||||||||||||
Non-U.S. and other | 2,731 | 2,758 | 2,771 | 2,694 | 2,886 | 2,811 | 2,820 | ||||||||||||||||||||||
Total average deposit balances | $ | 538,448 | $ | 509,519 | $ | 545,454 | $ | 531,365 | $ | 517,580 | $ | 514,549 | $ | 514,137 | |||||||||||||||
Deposit spreads (excludes noninterest costs) | |||||||||||||||||||||||||||||
Checking | 2.03 | % | 2.07 | % | 2.04 | % | 2.03 | % | 2.08 | % | 2.08 | % | 2.07 | % | |||||||||||||||
Savings | 2.30 | 2.30 | 2.29 | 2.31 | 2.32 | 2.32 | 2.31 | ||||||||||||||||||||||
MMS | 1.22 | 1.15 | 1.22 | 1.23 | 1.21 | 1.19 | 1.17 | ||||||||||||||||||||||
CDs and IRAs | 0.56 | 0.50 | 0.58 | 0.54 | 0.52 | 0.50 | 0.49 | ||||||||||||||||||||||
Non-U.S. and other | 0.43 | 0.53 | 0.45 | 0.42 | 0.40 | 0.40 | 0.42 | ||||||||||||||||||||||
Total deposit spreads | 1.62 | 1.59 | 1.63 | 1.62 | 1.63 | 1.61 | 1.60 | ||||||||||||||||||||||
Client brokerage assets | $ | 121,961 | $ | 105,926 | $ | 121,961 | $ | 118,492 | $ | 113,763 | $ | 108,533 | $ | 105,926 | |||||||||||||||
Online banking active accounts (units in thousands) | 31,322 | 30,429 | 31,322 | 31,479 | 30,904 | 30,821 | 30,429 | ||||||||||||||||||||||
Mobile banking active accounts (units in thousands) (1) | 17,626 | 15,475 | 17,626 | 17,092 | 16,539 | 16,107 | 15,475 | ||||||||||||||||||||||
Financial centers | 4,789 | 5,023 | 4,789 | 4,835 | 4,855 | 4,947 | 5,023 | ||||||||||||||||||||||
ATMs | 15,992 | 15,973 | 15,992 | 15,903 | 15,834 | 15,671 | 15,973 | ||||||||||||||||||||||
Total U.S. credit card (2) | |||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Average credit card outstandings | $ | 88,074 | $ | 88,797 | $ | 87,460 | $ | 88,695 | $ | 89,381 | $ | 88,866 | $ | 88,058 | |||||||||||||||
Ending credit card outstandings | 88,403 | 89,020 | 88,403 | 87,288 | 91,879 | 89,027 | 89,020 | ||||||||||||||||||||||
Credit quality | |||||||||||||||||||||||||||||
Net charge-offs | $ | 1,205 | $ | 1,401 | $ | 584 | $ | 621 | $ | 612 | $ | 625 | $ | 683 | |||||||||||||||
2.76 | % | 3.18 | % | 2.68 | % | 2.84 | % | 2.71 | % | 2.79 | % | 3.11 | % | ||||||||||||||||
30+ delinquency | $ | 1,486 | $ | 1,698 | $ | 1,486 | $ | 1,581 | $ | 1,701 | $ | 1,702 | $ | 1,698 | |||||||||||||||
1.68 | % | 1.91 | % | 1.68 | % | 1.81 | % | 1.85 | % | 1.91 | % | 1.91 | % | ||||||||||||||||
90+ delinquency | $ | 742 | $ | 868 | $ | 742 | $ | 795 | $ | 866 | $ | 831 | $ | 868 | |||||||||||||||
0.84 | % | 0.98 | % | 0.84 | % | 0.91 | % | 0.94 | % | 0.93 | % | 0.98 | % | ||||||||||||||||
Other Total U.S. credit card indicators (2) | |||||||||||||||||||||||||||||
Gross interest yield | 9.18 | % | 9.39 | % | 9.08 | % | 9.27 | % | 9.26 | % | 9.34 | % | 9.30 | % | |||||||||||||||
Risk-adjusted margin | 8.99 | 9.23 | 8.92 | 9.05 | 9.96 | 9.33 | 8.97 | ||||||||||||||||||||||
New accounts (in thousands) | 2,456 | 2,155 | 1,295 | 1,161 | 1,184 | 1,202 | 1,128 | ||||||||||||||||||||||
Purchase volumes | $ | 106,154 | $ | 102,447 | $ | 55,976 | $ | 50,178 | $ | 55,857 | $ | 53,784 | $ | 53,583 | |||||||||||||||
Debit card data | |||||||||||||||||||||||||||||
Purchase volumes | $ | 137,653 | $ | 135,382 | $ | 70,754 | $ | 66,898 | $ | 69,204 | $ | 67,990 | $ | 69,492 | |||||||||||||||
For footnotes see page 24.
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 23 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Consumer Banking Key Indicators (continued) | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
Loan production (3): | |||||||||||||||||||||||||||||
Total (4) | |||||||||||||||||||||||||||||
First mortgage | $ | 29,675 | $ | 19,949 | $ | 15,962 | $ | 13,713 | $ | 11,616 | $ | 11,725 | $ | 11,099 | |||||||||||||||
Home equity | 6,426 | 4,588 | 3,209 | 3,217 | 3,420 | 3,225 | 2,604 | ||||||||||||||||||||||
Consumer Banking | |||||||||||||||||||||||||||||
First mortgage | $ | 21,120 | $ | 15,163 | $ | 11,266 | $ | 9,854 | $ | 8,316 | $ | 8,861 | $ | 8,461 | |||||||||||||||
Home equity | 5,957 | 4,186 | 2,940 | 3,017 | 3,129 | 2,970 | 2,396 | ||||||||||||||||||||||
Mortgage banking income | |||||||||||||||||||||||||||||
Consumer Lending: | |||||||||||||||||||||||||||||
Core production revenue | $ | 573 | $ | 422 | $ | 273 | $ | 300 | $ | 214 | $ | 239 | $ | 233 | |||||||||||||||
Representations and warranties provision | 7 | 29 | 1 | 6 | (4 | ) | (15 | ) | 22 | ||||||||||||||||||||
Other consumer mortgage banking income (5) | (35 | ) | (36 | ) | (17 | ) | (18 | ) | (17 | ) | (18 | ) | (18 | ) | |||||||||||||||
Total Consumer Lending mortgage banking income | 545 | 415 | 257 | 288 | 193 | 206 | 237 | ||||||||||||||||||||||
Legacy Assets & Servicing mortgage banking income (6) | 1,143 | 660 | 682 | 461 | 241 | 152 | 369 | ||||||||||||||||||||||
Eliminations (7) | 7 | (136 | ) | 62 | (55 | ) | (82 | ) | (86 | ) | (79 | ) | |||||||||||||||||
Total consolidated mortgage banking income | $ | 1,695 | $ | 939 | $ | 1,001 | $ | 694 | $ | 352 | $ | 272 | $ | 527 | |||||||||||||||
(1) | Beginning in the first quarter of 2015, mobile users include Merrill Edge and MyMerrill users of approximately 150 thousand. |
(2) | In addition to the U.S. credit card portfolio in Consumer Banking, the remaining U.S. credit card portfolio is in GWIM. |
(3) | The above loan production amounts represent the unpaid principal balance of loans and in the case of home equity, the principal amount of the total line of credit. |
(4) | In addition to loan production in Consumer Banking, there is also first mortgage and home equity loan production in GWIM. |
(5) | Primarily intercompany charge for loan servicing activities provided by Legacy Assets & Servicing. |
(6) | Amounts for Legacy Assets & Servicing are included in this Consumer Banking table to show the components of consolidated mortgage banking income. |
(7) | Includes the effect of transfers of mortgage loans from Consumer Banking to the ALM portfolio included in All Other, intercompany charges for loan servicing and net gains or losses on intercompany trades related to mortgage servicing rights risk management. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 24 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Global Wealth & Investment Management Segment Results | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 2,710 | $ | 2,970 | $ | 1,359 | $ | 1,351 | $ | 1,406 | $ | 1,459 | $ | 1,485 | |||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||
Investment and brokerage services | 5,472 | 5,246 | 2,749 | 2,723 | 2,763 | 2,713 | 2,642 | ||||||||||||||||||||||
All other income | 908 | 920 | 465 | 443 | 434 | 494 | 462 | ||||||||||||||||||||||
Total noninterest income | 6,380 | 6,166 | 3,214 | 3,166 | 3,197 | 3,207 | 3,104 | ||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 9,090 | 9,136 | 4,573 | 4,517 | 4,603 | 4,666 | 4,589 | ||||||||||||||||||||||
Provision for credit losses | 38 | 15 | 15 | 23 | 14 | (15 | ) | (8 | ) | ||||||||||||||||||||
Noninterest expense | 6,916 | 6,803 | 3,457 | 3,459 | 3,441 | 3,403 | 3,445 | ||||||||||||||||||||||
Income before income taxes (FTE basis) | 2,136 | 2,318 | 1,101 | 1,035 | 1,148 | 1,278 | 1,152 | ||||||||||||||||||||||
Income tax expense (FTE basis) | 795 | 863 | 411 | 384 | 442 | 465 | 426 | ||||||||||||||||||||||
Net income | $ | 1,341 | $ | 1,455 | $ | 690 | $ | 651 | $ | 706 | $ | 813 | $ | 726 | |||||||||||||||
Net interest yield (FTE basis) | 2.15 | % | 2.40 | % | 2.17 | % | 2.13 | % | 2.24 | % | 2.33 | % | 2.40 | % | |||||||||||||||
Return on average allocated capital (1) | 23 | 25 | 23 | 22 | 23 | 27 | 24 | ||||||||||||||||||||||
Efficiency ratio (FTE basis) | 76.08 | 74.47 | 75.60 | 76.57 | 74.76 | 72.94 | 75.07 | ||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 128,211 | $ | 117,235 | $ | 130,270 | $ | 126,129 | $ | 123,544 | $ | 121,002 | $ | 118,512 | |||||||||||||||
Total earning assets (2) | 254,560 | 249,549 | 251,528 | 257,625 | 248,614 | 248,223 | 248,380 | ||||||||||||||||||||||
Total assets (2) | 271,965 | 268,518 | 268,835 | 275,130 | 266,717 | 266,324 | 266,781 | ||||||||||||||||||||||
Total deposits | 241,758 | 241,409 | 239,974 | 243,561 | 238,835 | 239,352 | 240,042 | ||||||||||||||||||||||
Allocated capital (1) | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 132,377 | $ | 120,187 | $ | 132,377 | $ | 127,556 | $ | 125,431 | $ | 122,395 | $ | 120,187 | |||||||||||||||
Total earning assets (2) | 250,720 | 245,556 | 250,720 | 255,840 | 256,519 | 248,072 | 245,556 | ||||||||||||||||||||||
Total assets (2) | 267,021 | 263,958 | 267,021 | 272,777 | 274,887 | 266,240 | 263,958 | ||||||||||||||||||||||
Total deposits | 237,624 | 237,046 | 237,624 | 244,080 | 245,391 | 238,710 | 237,046 | ||||||||||||||||||||||
(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 45-48.) |
(2) | Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 25 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Global Wealth & Investment Management Key Indicators | |||||||||||||||||||||||||||||
(Dollars in millions, except as noted) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Merrill Lynch Global Wealth Management | $ | 7,540 | $ | 7,555 | $ | 3,792 | $ | 3,748 | $ | 3,827 | $ | 3,874 | $ | 3,791 | |||||||||||||||
U.S. Trust | 1,515 | 1,551 | 764 | 751 | 758 | 775 | 783 | ||||||||||||||||||||||
Other (1) | 35 | 30 | 17 | 18 | 18 | 17 | 15 | ||||||||||||||||||||||
Total revenues | $ | 9,090 | $ | 9,136 | $ | 4,573 | $ | 4,517 | $ | 4,603 | $ | 4,666 | $ | 4,589 | |||||||||||||||
Client Balances | |||||||||||||||||||||||||||||
Client Balances by Business | |||||||||||||||||||||||||||||
Merrill Lynch Global Wealth Management | $ | 2,051,514 | $ | 2,017,051 | $ | 2,051,514 | $ | 2,043,447 | $ | 2,033,801 | $ | 2,004,391 | $ | 2,017,051 | |||||||||||||||
U.S. Trust | 388,829 | 380,281 | 388,829 | 391,105 | 387,491 | 381,054 | 380,281 | ||||||||||||||||||||||
Other (1) | 81,318 | 70,836 | 81,318 | 75,295 | 76,705 | 76,640 | 70,836 | ||||||||||||||||||||||
Client Balances by Type | |||||||||||||||||||||||||||||
Assets under management | $ | 930,360 | $ | 878,741 | $ | 930,360 | $ | 917,257 | $ | 902,872 | $ | 888,006 | $ | 878,741 | |||||||||||||||
Brokerage assets | 1,079,084 | 1,091,558 | 1,079,084 | 1,076,277 | 1,081,434 | 1,073,858 | 1,091,558 | ||||||||||||||||||||||
Assets in custody | 138,774 | 137,391 | 138,774 | 141,273 | 139,555 | 135,886 | 137,391 | ||||||||||||||||||||||
Deposits | 237,624 | 237,046 | 237,624 | 244,080 | 245,391 | 238,710 | 237,046 | ||||||||||||||||||||||
Loans and leases (2) | 135,819 | 123,432 | 135,819 | 130,960 | 128,745 | 125,625 | 123,432 | ||||||||||||||||||||||
Total client balances | $ | 2,521,661 | $ | 2,468,168 | $ | 2,521,661 | $ | 2,509,847 | $ | 2,497,997 | $ | 2,462,085 | $ | 2,468,168 | |||||||||||||||
Assets Under Management Flows | |||||||||||||||||||||||||||||
Long-term assets under management (3) | $ | 23,247 | $ | 29,252 | $ | 8,593 | $ | 14,654 | $ | 9,380 | $ | 11,168 | $ | 11,870 | |||||||||||||||
Liquidity assets under management (4) | 4,530 | (2,294 | ) | 6,023 | (1,493 | ) | (255 | ) | 5,910 | 135 | |||||||||||||||||||
Total assets under management flows | $ | 27,777 | $ | 26,958 | $ | 14,616 | $ | 13,161 | $ | 9,125 | $ | 17,078 | $ | 12,005 | |||||||||||||||
Associates (5) | |||||||||||||||||||||||||||||
Number of Financial Advisors | 16,419 | 15,560 | 16,419 | 16,175 | 16,035 | 15,867 | 15,560 | ||||||||||||||||||||||
Total Wealth Advisors | 17,798 | 16,721 | 17,798 | 17,508 | 17,231 | 17,039 | 16,721 | ||||||||||||||||||||||
Total Client-Facing Professionals | 20,286 | 19,416 | 20,286 | 20,018 | 19,750 | 19,727 | 19,416 | ||||||||||||||||||||||
Merrill Lynch Global Wealth Management Metrics | |||||||||||||||||||||||||||||
Financial Advisor Productivity (6) (in thousands) | $ | 1,041 | $ | 1,058 | $ | 1,041 | $ | 1,041 | $ | 1,070 | $ | 1,077 | $ | 1,060 | |||||||||||||||
U.S. Trust Metrics | |||||||||||||||||||||||||||||
Client-Facing Professionals | 2,155 | 2,110 | 2,155 | 2,157 | 2,155 | 2,135 | 2,110 | ||||||||||||||||||||||
(1) | Includes the results of BofA Global Capital Management and certain 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 duration of the investment strategy is longer than one year. |
(4) | 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. |
(5) | Includes Financial Advisors in the Consumer Banking segment of 2,049, 1,992, 1,950, 1,868 and 1,716 at June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, 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 information is preliminary and based on company data available at the time of the presentation. | 26 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Global Banking Segment Results | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 4,473 | $ | 4,946 | $ | 2,213 | $ | 2,260 | $ | 2,415 | $ | 2,450 | $ | 2,442 | ||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||
Service charges | 1,438 | 1,459 | 728 | 710 | 712 | 730 | 725 | |||||||||||||||||||||
Investment banking fees | 1,629 | 1,656 | 777 | 852 | 830 | 727 | 834 | |||||||||||||||||||||
All other income | 853 | 903 | 397 | 456 | 364 | 446 | 437 | |||||||||||||||||||||
Total noninterest income | 3,920 | 4,018 | 1,902 | 2,018 | 1,906 | 1,903 | 1,996 | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 8,393 | 8,964 | 4,115 | 4,278 | 4,321 | 4,353 | 4,438 | |||||||||||||||||||||
Provision for credit losses | 273 | 417 | 177 | 96 | (31 | ) | (64 | ) | 136 | |||||||||||||||||||
Noninterest expense | 3,951 | 4,184 | 1,941 | 2,010 | 1,988 | 2,037 | 2,007 | |||||||||||||||||||||
Income before income taxes (FTE basis) | 4,169 | 4,363 | 1,997 | 2,172 | 2,364 | 2,380 | 2,295 | |||||||||||||||||||||
Income tax expense (FTE basis) | 1,552 | 1,625 | 746 | 806 | 851 | 867 | 850 | |||||||||||||||||||||
Net income | $ | 2,617 | $ | 2,738 | $ | 1,251 | $ | 1,366 | $ | 1,513 | $ | 1,513 | $ | 1,445 | ||||||||||||||
Net interest yield (FTE basis) | 2.85 | % | 3.19 | % | 2.80 | % | 2.89 | % | 2.99 | % | 3.03 | % | 3.12 | % | ||||||||||||||
Return on average allocated capital (1) | 15 | 16 | 14 | 16 | 18 | 18 | 17 | |||||||||||||||||||||
Efficiency ratio (FTE basis) | 47.08 | 46.68 | 47.16 | 47.00 | 46.01 | 46.78 | 45.22 | |||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||
Total loans and leases | $ | 295,107 | $ | 287,857 | $ | 300,631 | $ | 289,522 | $ | 287,003 | $ | 283,264 | $ | 287,795 | ||||||||||||||
Total earnings assets (2) | 316,951 | 313,081 | 316,898 | 317,005 | 320,365 | 320,955 | 314,079 | |||||||||||||||||||||
Total assets (2) | 361,840 | 359,669 | 361,853 | 361,826 | 365,167 | 364,589 | 359,755 | |||||||||||||||||||||
Total deposits | 287,280 | 283,943 | 288,117 | 286,434 | 292,096 | 291,927 | 284,947 | |||||||||||||||||||||
Allocated capital (1) | 35,000 | 33,500 | 35,000 | 35,000 | 33,500 | 33,500 | 33,500 | |||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||
Total loans and leases | $ | 307,085 | $ | 286,976 | $ | 307,085 | $ | 295,653 | $ | 288,905 | $ | 284,908 | $ | 286,976 | ||||||||||||||
Total earnings assets (2) | 322,971 | 324,626 | 322,971 | 318,872 | 308,448 | 310,987 | 324,626 | |||||||||||||||||||||
Total assets (2) | 367,045 | 370,561 | 367,045 | 365,121 | 353,667 | 354,967 | 370,561 | |||||||||||||||||||||
Total deposits | 292,261 | 295,382 | 292,261 | 290,422 | 279,793 | 282,325 | 295,382 | |||||||||||||||||||||
(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 45-48.) |
(2) | Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 27 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Global Banking Key Indicators | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
Investment Banking fees (1) | |||||||||||||||||||||||||||||
Advisory (2) | $ | 634 | $ | 491 | $ | 247 | $ | 387 | $ | 316 | $ | 291 | $ | 234 | |||||||||||||||
Debt issuance | 706 | 835 | 371 | 335 | 379 | 318 | 388 | ||||||||||||||||||||||
Equity issuance | 289 | 330 | 159 | 130 | 135 | 118 | 212 | ||||||||||||||||||||||
Total Investment Banking fees (3) | $ | 1,629 | $ | 1,656 | $ | 777 | $ | 852 | $ | 830 | $ | 727 | $ | 834 | |||||||||||||||
Business Lending | |||||||||||||||||||||||||||||
Corporate | $ | 1,597 | $ | 1,742 | $ | 708 | $ | 889 | $ | 800 | $ | 878 | $ | 830 | |||||||||||||||
Commercial | 1,916 | 2,017 | 1,004 | 912 | 991 | 934 | 1,006 | ||||||||||||||||||||||
Business Banking | 174 | 181 | 87 | 87 | 92 | 91 | 92 | ||||||||||||||||||||||
Total Business Lending revenue | $ | 3,687 | $ | 3,940 | $ | 1,799 | $ | 1,888 | $ | 1,883 | $ | 1,903 | $ | 1,928 | |||||||||||||||
Global Transaction Services | |||||||||||||||||||||||||||||
Corporate | $ | 1,369 | $ | 1,483 | $ | 709 | $ | 660 | $ | 748 | $ | 769 | $ | 754 | |||||||||||||||
Commercial | 1,292 | 1,447 | 642 | 650 | 705 | 724 | 715 | ||||||||||||||||||||||
Business Banking | 336 | 353 | 170 | 166 | 184 | 179 | 176 | ||||||||||||||||||||||
Total Global Transaction Services revenue | $ | 2,997 | $ | 3,283 | $ | 1,521 | $ | 1,476 | $ | 1,637 | $ | 1,672 | $ | 1,645 | |||||||||||||||
Average deposit balances | |||||||||||||||||||||||||||||
Interest-bearing | $ | 65,742 | $ | 82,783 | $ | 65,504 | $ | 65,982 | $ | 71,148 | $ | 79,127 | $ | 82,826 | |||||||||||||||
Noninterest-bearing | 221,538 | 201,160 | 222,613 | 220,452 | 220,948 | 212,800 | 202,121 | ||||||||||||||||||||||
Total average deposits | $ | 287,280 | $ | 283,943 | $ | 288,117 | $ | 286,434 | $ | 292,096 | $ | 291,927 | $ | 284,947 | |||||||||||||||
Loan spread | 1.64 | % | 1.76 | % | 1.60 | % | 1.68 | % | 1.69 | % | 1.70 | % | 1.72 | % | |||||||||||||||
Provision for credit losses | $ | 273 | $ | 417 | $ | 177 | $ | 96 | $ | (31 | ) | $ | (64 | ) | $ | 136 | |||||||||||||
Credit quality (4, 5) | |||||||||||||||||||||||||||||
Reservable utilized criticized exposure | $ | 11,411 | $ | 10,788 | $ | 11,411 | $ | 10,471 | $ | 9,662 | $ | 10,314 | $ | 10,788 | |||||||||||||||
3.44 | % | 3.46 | % | 3.44 | % | 3.28 | % | 3.07 | % | 3.32 | % | 3.46 | % | ||||||||||||||||
Nonperforming loans, leases and foreclosed properties | $ | 1,179 | $ | 1,023 | $ | 1,179 | $ | 979 | $ | 892 | $ | 1,080 | $ | 1,023 | |||||||||||||||
0.38 | % | 0.36 | % | 0.38 | % | 0.33 | % | 0.31 | % | 0.38 | % | 0.36 | % | ||||||||||||||||
Average loans and leases by product | |||||||||||||||||||||||||||||
U.S. commercial | $ | 159,376 | $ | 151,450 | $ | 162,580 | $ | 156,137 | $ | 153,256 | $ | 150,918 | $ | 151,924 | |||||||||||||||
Commercial real estate | 43,119 | 44,783 | 44,066 | 42,163 | 41,445 | 41,818 | 44,437 | ||||||||||||||||||||||
Commercial lease financing | 25,585 | 25,295 | 25,728 | 25,442 | 25,105 | 25,127 | 25,165 | ||||||||||||||||||||||
Non-U.S. commercial | 67,010 | 66,310 | 68,241 | 65,763 | 67,178 | 65,382 | 66,249 | ||||||||||||||||||||||
Other | 17 | 19 | 16 | 17 | 19 | 19 | 20 | ||||||||||||||||||||||
Total average loans and leases | $ | 295,107 | $ | 287,857 | $ | 300,631 | $ | 289,522 | $ | 287,003 | $ | 283,264 | $ | 287,795 | |||||||||||||||
Total Corporation Investment Banking fees | |||||||||||||||||||||||||||||
Advisory (2) | $ | 704 | $ | 550 | $ | 276 | $ | 428 | $ | 341 | $ | 316 | $ | 264 | |||||||||||||||
Debt issuance | 1,668 | 1,916 | 887 | 781 | 883 | 784 | 891 | ||||||||||||||||||||||
Equity issuance | 762 | 827 | 417 | 345 | 348 | 315 | 514 | ||||||||||||||||||||||
Total investment banking fees including self-led deals | 3,134 | 3,293 | 1,580 | 1,554 | 1,572 | 1,415 | 1,669 | ||||||||||||||||||||||
Self-led deals | (121 | ) | (120 | ) | (54 | ) | (67 | ) | (31 | ) | (64 | ) | (38 | ) | |||||||||||||||
Total Investment Banking fees | $ | 3,013 | $ | 3,173 | $ | 1,526 | $ | 1,487 | $ | 1,541 | $ | 1,351 | $ | 1,631 | |||||||||||||||
(1) | Investment banking fees represent total investment banking fees for Global Banking inclusive of self-led deals and fees included within Business Lending. |
(2) | Advisory includes fees on debt and equity advisory and mergers and acquisitions. |
(3) | Investment banking fees represent only the fee component in Global Banking and do not include certain less significant items shared with the Investment Banking Group under internal revenue sharing agreements. |
(4) | Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure is on an end-of-period basis and is also shown as a percentage of total commercial utilized reservable criticized exposure, including loans and leases, standby letters of credit, financial guarantees, commercial letters of credit and bankers' acceptances. |
(5) | Nonperforming loans, leases and foreclosed properties are on an end-of-period basis. The nonperforming ratio is nonperforming assets divided by loans, leases and foreclosed properties. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 28 |
Bank of America Corporation and Subsidiaries | |||||||||||
Investment Banking Product Rankings | |||||||||||
Six Months Ended June 30, 2015 | |||||||||||
Global | U.S. | ||||||||||
Product Ranking | Market Share | Product Ranking | Market Share | ||||||||
Net investment banking revenue | 3 | 6.2 | % | 3 | 8.6 | % | |||||
Announced mergers and acquisitions | 4 | 22.1 | 5 | 20.2 | |||||||
Equity capital markets | 4 | 6.3 | 2 | 10.2 | |||||||
Debt capital markets | 3 | 6.0 | 2 | 9.8 | |||||||
High-yield corporate debt | 4 | 7.4 | 2 | 9.1 | |||||||
Leveraged loans | 2 | 8.5 | 2 | 10.8 | |||||||
Mortgage-backed securities | 5 | 7.5 | 7 | 8.0 | |||||||
Asset-backed securities | 3 | 9.5 | 2 | 12.7 | |||||||
Convertible debt | 2 | 9.4 | 2 | 14.0 | |||||||
Common stock underwriting | 5 | 6.0 | 4 | 9.5 | |||||||
Investment-grade corporate debt | 2 | 6.6 | 2 | 11.9 | |||||||
Syndicated loans | 2 | 8.1 | 2 | 11.6 |
Source: Dealogic data as of July 6, 2015. Figures above include self-led transactions.
• | Rankings based on deal volumes except net investment banking revenue rankings which reflect fees. |
• | Debt capital markets excludes loans but includes agencies. |
• | Mergers and acquisitions fees included in investment banking revenues reflect 10 percent fee credit at announcement and 90 percent fee credit at completion as per Dealogic. |
• | Mergers and acquisitions volume rankings are for announced transactions and provide credit to all investment banks advising either side of the transaction. |
• | Each advisor receives full credit for the deal amount unless advising a minor stakeholder. |
Highlights
Global top 3 rankings in: | ||
Leveraged loans | Investment-grade corporate debt | |
Asset-backed securities | Syndicated loans | |
Convertible debt | Debt capital markets | |
U.S. top 3 rankings in: | ||
High-yield corporate debt | Investment-grade corporate debt | |
Leveraged loans | Syndicated loans | |
Asset-backed securities | Equity capital markets | |
Convertible debt | Debt capital markets |
Top 3 rankings excluding self-led deals:
Global: | Leveraged loans, Asset-backed securities, Convertible debt, Investment-grade corporate debt, Syndicated loans, Debt capital markets |
U.S.: | High-yield corporate debt, Leveraged loans, Asset-backed securities, Convertible debt, Investment-grade corporate debt, Syndicated loans, Equity capital markets, Debt capital markets |
This information is preliminary and based on company data available at the time of the presentation. | 29 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Global Markets Segment Results | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 2,037 | $ | 1,968 | $ | 1,028 | $ | 1,009 | $ | 1,036 | $ | 999 | $ | 962 | ||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||
Investment and brokerage services | 1,117 | 1,110 | 550 | 567 | 545 | 527 | 544 | |||||||||||||||||||||
Investment banking fees | 1,348 | 1,496 | 718 | 630 | 670 | 577 | 760 | |||||||||||||||||||||
Trading account profits | 3,820 | 4,135 | 1,693 | 2,127 | 76 | 1,786 | 1,768 | |||||||||||||||||||||
All other income | 551 | 916 | 270 | 281 | 53 | 264 | 565 | |||||||||||||||||||||
Total noninterest income | 6,836 | 7,657 | 3,231 | 3,605 | 1,344 | 3,154 | 3,637 | |||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | 8,873 | 9,625 | 4,259 | 4,614 | 2,380 | 4,153 | 4,599 | |||||||||||||||||||||
Provision for credit losses | 27 | 38 | 6 | 21 | 26 | 45 | 20 | |||||||||||||||||||||
Noninterest expense | 5,854 | 5,964 | 2,723 | 3,131 | 2,513 | 3,348 | 2,875 | |||||||||||||||||||||
Income (loss) before income taxes (FTE basis) | 2,992 | 3,623 | 1,530 | 1,462 | (159 | ) | 760 | 1,704 | ||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 1,054 | 1,211 | 537 | 517 | (85 | ) | 388 | 602 | ||||||||||||||||||||
Net income (loss) | $ | 1,938 | $ | 2,412 | $ | 993 | $ | 945 | $ | (74 | ) | $ | 372 | $ | 1,102 | |||||||||||||
Return on average allocated capital (2) | 11 | % | 14 | % | 11 | % | 11 | % | n/m | 4 | % | 13 | % | |||||||||||||||
Efficiency ratio (FTE basis) | 65.98 | 61.96 | 63.92 | 67.88 | 105.56 | % | 80.63 | 62.51 | ||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||
Total trading-related assets (3) | $ | 443,225 | $ | 448,596 | $ | 442,506 | $ | 443,951 | $ | 455,535 | $ | 446,490 | $ | 459,938 | ||||||||||||||
Total loans and leases | 59,463 | 63,637 | 61,908 | 56,992 | 58,108 | 62,959 | 63,579 | |||||||||||||||||||||
Total earning assets (3) | 435,500 | 467,594 | 436,077 | 434,916 | 451,937 | 457,835 | 478,192 | |||||||||||||||||||||
Total assets | 600,675 | 609,370 | 602,732 | 598,595 | 611,828 | 599,976 | 617,156 | |||||||||||||||||||||
Total deposits | 39,709 | 41,493 | 39,718 | 39,699 | 40,941 | 39,344 | 41,323 | |||||||||||||||||||||
Allocated capital (2) | 35,000 | 34,000 | 35,000 | 35,000 | 34,000 | 34,000 | 34,000 | |||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||
Total trading-related assets (3) | $ | 406,404 | $ | 443,383 | $ | 406,404 | $ | 424,996 | $ | 418,860 | $ | 433,597 | $ | 443,383 | ||||||||||||||
Total loans and leases | 66,026 | 66,260 | 66,026 | 63,019 | 59,388 | 62,705 | 66,260 | |||||||||||||||||||||
Total earning assets (3) | 408,857 | 465,380 | 408,857 | 421,520 | 421,799 | 443,423 | 465,380 | |||||||||||||||||||||
Total assets | 580,955 | 610,435 | 580,955 | 586,843 | 579,593 | 598,806 | 610,435 | |||||||||||||||||||||
Total deposits | 39,326 | 41,951 | 39,326 | 38,668 | 40,746 | 39,133 | 41,951 | |||||||||||||||||||||
Trading-related assets (average) | ||||||||||||||||||||||||||||
Trading account securities | $ | 195,312 | $ | 201,996 | $ | 197,113 | $ | 193,491 | $ | 201,867 | $ | 201,963 | $ | 200,726 | ||||||||||||||
Reverse repurchases | 112,461 | 114,576 | 109,626 | 115,328 | 118,286 | 116,853 | 119,823 | |||||||||||||||||||||
Securities borrowed | 79,909 | 88,024 | 81,091 | 78,713 | 81,071 | 83,369 | 94,989 | |||||||||||||||||||||
Derivative assets | 55,543 | 44,000 | 54,676 | 56,419 | 54,311 | 44,305 | 44,400 | |||||||||||||||||||||
Total trading-related assets (3) | $ | 443,225 | $ | 448,596 | $ | 442,506 | $ | 443,951 | $ | 455,535 | $ | 446,490 | $ | 459,938 | ||||||||||||||
(1) Substantially all of Global Markets total revenue is sales and trading revenue and investment banking fees, with a small portion related to certain revenue sharing agreements with other business segments. For additional sales and trading revenue information, see page 31.
(2) | 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 45-48.) |
(3) | Trading-related assets include derivative assets, which are considered non-earning assets. |
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 30 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Global Markets Key Indicators | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Sales and trading revenue (1) | ||||||||||||||||||||||||||||
Fixed income, currency and commodities | $ | 4,977 | $ | 5,445 | $ | 2,228 | $ | 2,749 | $ | 880 | $ | 2,380 | $ | 2,422 | ||||||||||||||
Equities | 2,364 | 2,248 | 1,199 | 1,165 | 862 | 1,105 | 1,055 | |||||||||||||||||||||
Total sales and trading revenue | $ | 7,341 | $ | 7,693 | $ | 3,427 | $ | 3,914 | $ | 1,742 | $ | 3,485 | $ | 3,477 | ||||||||||||||
Sales and trading revenue, excluding net debit valuation adjustment and funding valuation adjustment (2) | ||||||||||||||||||||||||||||
Fixed income, currency and commodities | $ | 4,891 | $ | 5,309 | $ | 2,146 | $ | 2,745 | $ | 1,457 | $ | 2,247 | $ | 2,366 | ||||||||||||||
Equities | 2,329 | 2,203 | 1,179 | 1,150 | 911 | 1,033 | 1,042 | |||||||||||||||||||||
Total sales and trading revenue, excluding net debit valuation adjustment and funding valuation adjustment | $ | 7,220 | $ | 7,512 | $ | 3,325 | $ | 3,895 | $ | 2,368 | $ | 3,280 | $ | 3,408 | ||||||||||||||
Sales and trading revenue breakdown | ||||||||||||||||||||||||||||
Net interest income | $ | 1,846 | $ | 1,786 | $ | 925 | $ | 921 | $ | 944 | $ | 914 | $ | 872 | ||||||||||||||
Commissions | 1,106 | 1,101 | 544 | 562 | 541 | 522 | 540 | |||||||||||||||||||||
Trading | 3,801 | 4,135 | 1,676 | 2,125 | 76 | 1,784 | 1,769 | |||||||||||||||||||||
Other | 588 | 671 | 282 | 306 | 181 | 265 | 296 | |||||||||||||||||||||
Total sales and trading revenue | $ | 7,341 | $ | 7,693 | $ | 3,427 | $ | 3,914 | $ | 1,742 | $ | 3,485 | $ | 3,477 | ||||||||||||||
(1) | Includes Global Banking sales and trading revenue of $210 million and $153 million for the six months ended June 30, 2015 and 2014; $133 million and $76 million for the second and first quarters of 2015, and $163 million, $66 million and $67 million for the fourth, third, and second quarters of 2014, respectively. |
(2) | For this presentation, sales and trading revenue excludes net debit valuation adjustment gains (losses) which include net debit valuation adjustments 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 information is preliminary and based on company data available at the time of the presentation. | 31 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Legacy Assets & Servicing Segment Results | |||||||||||||||||||||||||||||
(Dollars in millions; except as noted) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 844 | $ | 739 | $ | 416 | $ | 428 | $ | 390 | $ | 387 | $ | 362 | |||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||
Mortgage banking income | 1,143 | 660 | 682 | 461 | 241 | 152 | 369 | ||||||||||||||||||||||
All other income (loss) | 16 | 87 | (9 | ) | 25 | 7 | 17 | 69 | |||||||||||||||||||||
Total noninterest income | 1,159 | 747 | 673 | 486 | 248 | 169 | 438 | ||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 2,003 | 1,486 | 1,089 | 914 | 638 | 556 | 800 | ||||||||||||||||||||||
Provision for credit losses | 148 | (27 | ) | 57 | 91 | (113 | ) | 267 | (39 | ) | |||||||||||||||||||
Noninterest expense | 2,164 | 12,637 | 961 | 1,203 | 1,364 | 6,648 | 5,234 | ||||||||||||||||||||||
Income (loss) before income taxes (FTE basis) | (309 | ) | (11,124 | ) | 71 | (380 | ) | (613 | ) | (6,359 | ) | (4,395 | ) | ||||||||||||||||
Income tax expense (benefit) (FTE basis) | (115 | ) | (3,502 | ) | 26 | (141 | ) | (231 | ) | (1,245 | ) | (1,654 | ) | ||||||||||||||||
Net income (loss) | $ | (194 | ) | $ | (7,622 | ) | $ | 45 | $ | (239 | ) | $ | (382 | ) | $ | (5,114 | ) | $ | (2,741 | ) | |||||||||
Net interest yield (FTE basis) | 4.07 | % | 3.73 | % | 3.95 | % | 4.19 | % | 4.23 | % | 3.78 | % | 3.65 | % | |||||||||||||||
Return on average allocated capital (1) | n/m | n/m | 1 | n/m | n/m | n/m | n/m | ||||||||||||||||||||||
Efficiency ratio (FTE basis) | n/m | n/m | 88.27 | n/m | n/m | n/m | n/m | ||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||
Total loans and leases | $ | 31,650 | $ | 37,401 | $ | 30,897 | $ | 32,411 | $ | 33,772 | $ | 35,238 | $ | 36,705 | |||||||||||||||
Total earning assets (2) | 41,822 | 39,944 | 42,267 | 41,371 | 36,581 | 40,636 | 39,863 | ||||||||||||||||||||||
Total assets (2) | 52,532 | 56,508 | 52,449 | 52,617 | 48,557 | 53,762 | 55,626 | ||||||||||||||||||||||
Allocated capital (1) | 24,000 | 17,000 | 24,000 | 24,000 | 17,000 | 17,000 | 17,000 | ||||||||||||||||||||||
Period end | |||||||||||||||||||||||||||||
Total loans and leases | $ | 30,024 | $ | 35,984 | $ | 30,024 | $ | 31,690 | $ | 33,055 | $ | 34,484 | $ | 35,984 | |||||||||||||||
Total earning assets (2) | 40,799 | 37,233 | 40,799 | 42,590 | 33,923 | 44,916 | 37,233 | ||||||||||||||||||||||
Total assets (2) | 50,853 | 52,647 | 50,853 | 53,538 | 45,958 | 56,900 | 52,647 | ||||||||||||||||||||||
Period end (in billions) | |||||||||||||||||||||||||||||
Mortgage serviced portfolio (3) | $ | 610.0 | $ | 760.0 | $ | 610.0 | $ | 669.0 | $ | 693.0 | $ | 722.0 | $ | 760.0 | |||||||||||||||
(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 45-48.) |
(2) | Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity |
(3) | 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 information is preliminary and based on company data available at the time of the presentation. | 32 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Legacy Assets & Servicing Key Indicators | |||||||||||||||||||||||||||||
(Dollars in millions, except as noted) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
Mortgage servicing rights at fair value rollforward: | |||||||||||||||||||||||||||||
Balance, beginning of period | $ | 3,271 | $ | 5,042 | $ | 3,108 | $ | 3,271 | $ | 3,986 | $ | 4,134 | $ | 4,577 | |||||||||||||||
Net additions | (69 | ) | 62 | (174 | ) | 105 | 73 | 140 | 32 | ||||||||||||||||||||
Amortization of expected cash flows (1) | (385 | ) | (419 | ) | (187 | ) | (198 | ) | (198 | ) | (201 | ) | (209 | ) | |||||||||||||||
Other changes in mortgage servicing rights fair value (2) | 384 | (551 | ) | 454 | (70 | ) | (590 | ) | (87 | ) | (266 | ) | |||||||||||||||||
Balance, end of period (3) | $ | 3,201 | $ | 4,134 | $ | 3,201 | $ | 3,108 | $ | 3,271 | $ | 3,986 | $ | 4,134 | |||||||||||||||
Capitalized mortgage servicing rights (% of loans serviced for investors) | 78 | bps | 82 | bps | 78 | bps | 68 | bps | 69 | bps | 81 | bps | 82 | bps | |||||||||||||||
Mortgage loans serviced for investors (in billions) | $ | 409 | $ | 505 | $ | 409 | $ | 459 | $ | 474 | $ | 491 | $ | 505 | |||||||||||||||
Mortgage banking income | |||||||||||||||||||||||||||||
Servicing income: | |||||||||||||||||||||||||||||
Servicing fees | $ | 822 | $ | 1,025 | $ | 392 | $ | 430 | $ | 461 | $ | 471 | $ | 492 | |||||||||||||||
Amortization of expected cash flows (1) | (385 | ) | (419 | ) | (187 | ) | (198 | ) | (198 | ) | (201 | ) | (209 | ) | |||||||||||||||
Fair value changes of mortgage servicing rights, net of risk management activities used to hedge certain market risks (4) | 443 | 171 | 193 | 250 | 142 | (19 | ) | 105 | |||||||||||||||||||||
Other servicing-related revenue | — | 8 | — | — | — | — | 4 | ||||||||||||||||||||||
Total net servicing income | 880 | 785 | 398 | 482 | 405 | 251 | 392 | ||||||||||||||||||||||
Representations and warranties provision | 114 | (295 | ) | 204 | (90 | ) | (246 | ) | (152 | ) | (110 | ) | |||||||||||||||||
Other mortgage banking income (5) | 149 | 170 | 80 | 69 | 82 | 53 | 87 | ||||||||||||||||||||||
Total Legacy Assets & Servicing mortgage banking income | $ | 1,143 | $ | 660 | $ | 682 | $ | 461 | $ | 241 | $ | 152 | $ | 369 | |||||||||||||||
(1) | Represents the net change in fair value of the mortgage servicing rights 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 and periodic adjustments to valuation based on third-party price discovery. 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 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 repurchased loans that had returned to performing status. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 33 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
All Other Results (1) | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 541 | $ | (241 | ) | $ | 790 | $ | (249 | ) | $ | (349 | ) | $ | 68 | $ | (85 | ) | ||||||||||
Noninterest income: | ||||||||||||||||||||||||||||
Card income | 134 | 176 | 65 | 69 | 90 | 92 | 88 | |||||||||||||||||||||
Equity investment income | 12 | 793 | 11 | 1 | (37 | ) | (26 | ) | 95 | |||||||||||||||||||
Gains on sales of debt securities | 425 | 739 | 162 | 263 | 161 | 410 | 382 | |||||||||||||||||||||
All other loss | (699 | ) | (1,251 | ) | (263 | ) | (436 | ) | (611 | ) | (587 | ) | (595 | ) | ||||||||||||||
Total noninterest income | (128 | ) | 457 | (25 | ) | (103 | ) | (397 | ) | (111 | ) | (30 | ) | |||||||||||||||
Total revenue, net of interest expense (FTE basis) | 413 | 216 | 765 | (352 | ) | (746 | ) | (43 | ) | (115 | ) | |||||||||||||||||
Provision for credit losses | (163 | ) | (382 | ) | 19 | (182 | ) | (330 | ) | (265 | ) | (248 | ) | |||||||||||||||
Noninterest expense | 1,918 | 2,191 | 415 | 1,503 | 483 | 259 | 475 | |||||||||||||||||||||
Income (loss) before income taxes (FTE basis) | (1,342 | ) | (1,593 | ) | 331 | (1,673 | ) | (899 | ) | (37 | ) | (342 | ) | |||||||||||||||
Income tax benefit (FTE basis) | (1,138 | ) | (1,523 | ) | (306 | ) | (832 | ) | (524 | ) | (543 | ) | (467 | ) | ||||||||||||||
Net income (loss) | $ | (204 | ) | $ | (70 | ) | $ | 637 | $ | (841 | ) | $ | (375 | ) | $ | 506 | $ | 125 | ||||||||||
Balance Sheet | ||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||
Total loans and leases | $ | 161,850 | $ | 213,966 | $ | 156,006 | $ | 167,758 | $ | 183,091 | $ | 199,404 | $ | 210,576 | ||||||||||||||
Total assets (2) | 256,289 | 286,322 | 257,078 | 255,490 | 263,166 | 272,531 | 291,723 | |||||||||||||||||||||
Total deposits | 20,951 | 35,731 | 22,482 | 19,406 | 22,163 | 29,880 | 36,471 | |||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||
Total loans and leases | $ | 146,557 | $ | 205,471 | $ | 146,557 | $ | 159,885 | $ | 172,612 | $ | 188,356 | $ | 205,471 | ||||||||||||||
Total equity investments | 4,670 | 5,126 | 4,670 | 4,716 | 4,886 | 5,001 | 5,126 | |||||||||||||||||||||
Total assets (3) | 272,038 | 293,086 | 272,038 | 252,136 | 261,381 | 266,319 | 293,086 | |||||||||||||||||||||
Total deposits | 22,964 | 33,824 | 22,964 | 19,467 | 19,241 | 25,419 | 33,824 | |||||||||||||||||||||
(1) | All Other consists of ALM activities, equity investments, the international consumer card business, liquidating businesses, residual expense allocations and other. ALM activities encompass residential mortgage 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. Beginning with new originations in 2014, we retain certain residential mortgages in Consumer Banking, consistent with where the overall relationship is managed; previously such mortgages were in All Other. Additionally, certain residential mortgage loans that are managed by Legacy Assets & Servicing are held in All Other. The results of certain ALM activities are allocated to our business segments. Equity investments include our merchant services joint venture as well as Global Principal Investments which is comprised of a portfolio of equity, real estate and other alternative investments. |
(2) | Includes elimination of segments' excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $497.4 billion and $477.2 billion for the six months ended June 30, 2015 and 2014; $493.0 billion, $501.8 billion, $483.2 billion, $490.7 billion and $480.8 billion for the second and first quarters of 2015, and the fourth, third and second quarters of 2014, respectively. |
(3) | Includes elimination of segments' excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $488.5 billion, $512.6 billion, $474.8 billion, $483.5 billion and $486.6 billion at June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, respectively. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 34 |
Bank of America Corporation and Subsidiaries | |||||||||||
Outstanding Loans and Leases | |||||||||||
(Dollars in millions) | |||||||||||
June 30 2015 | March 31 2015 | June 30 2014 | |||||||||
Consumer | |||||||||||
Residential mortgage (1) | $ | 198,825 | $ | 207,925 | $ | 237,136 | |||||
Home equity | 81,006 | 83,571 | 89,499 | ||||||||
U.S. credit card | 88,403 | 87,288 | 89,020 | ||||||||
Non-U.S. credit card | 10,276 | 9,660 | 11,999 | ||||||||
Direct/Indirect consumer (2) | 84,754 | 82,141 | 82,586 | ||||||||
Other consumer (3) | 2,000 | 1,842 | 2,079 | ||||||||
Total consumer loans excluding loans accounted for under the fair value option | 465,264 | 472,427 | 512,319 | ||||||||
Consumer loans accounted for under the fair value option (4) | 1,971 | 2,055 | 2,154 | ||||||||
Total consumer | 467,235 | 474,482 | 514,473 | ||||||||
Commercial | |||||||||||
U.S. commercial (5) | 248,296 | 238,307 | 231,622 | ||||||||
Commercial real estate (6) | 52,344 | 49,446 | 46,815 | ||||||||
Commercial lease financing | 25,342 | 24,468 | 24,565 | ||||||||
Non-U.S. commercial | 87,574 | 84,842 | 85,677 | ||||||||
Total commercial loans excluding loans accounted for under the fair value option | 413,556 | 397,063 | 388,679 | ||||||||
Commercial loans accounted for under the fair value option (4) | 5,658 | 6,411 | 8,747 | ||||||||
Total commercial | 419,214 | 403,474 | 397,426 | ||||||||
Total loans and leases | $ | 886,449 | $ | 877,956 | $ | 911,899 | |||||
(1) | Includes pay option loans of $2.6 billion, $2.9 billion and $3.7 billion at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. The Corporation no longer originates pay option loans. |
(2) | Includes auto and specialty lending loans of $39.6 billion, $38.9 billion and $37.7 billion, unsecured consumer lending loans of $1.1 billion, $1.3 billion and $2.0 billion, U.S. securities-based lending loans of $38.6 billion, $36.6 billion and $33.8 billion, non-U.S. consumer loans of $4.0 billion, $4.0 billion and $4.4 billion, student loans of $596 million, $611 million and $3.8 billion and other consumer loans of $809 million, $743 million and $937 million at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. |
(3) | Includes consumer finance loans of $618 million, $646 million and $1.1 billion, consumer leases of $1.2 billion, $1.1 billion and $819 million, consumer overdrafts of $227 million, $120 million and $170 million and other non-U.S. consumer loans of $3 million, $3 million and $3 million at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. |
(4) | Consumer loans accounted for under the fair value option were residential mortgage loans of $1.8 billion, $1.9 billion and $2.0 billion and home equity loans of $208 million, $205 million and $170 million at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. Commercial loans accounted for under the fair value option were U.S. commercial loans of $2.3 billion, $2.0 billion and $1.3 billion and non-U.S. commercial loans of $3.4 billion, $4.5 billion and $7.4 billion at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. |
(5) | Includes U.S. small business commercial loans, including card-related products, of $13.2 billion, $13.2 billion and $13.5 billion at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. |
(6) | Includes U.S. commercial real estate loans of $48.6 billion, $46.7 billion and $45.5 billion and non-U.S. commercial real estate loans of $3.7 billion, $2.8 billion and $1.3 billion at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 35 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Quarterly Average Loans and Leases by Business Segment | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Second Quarter 2015 | ||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | ||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Residential mortgage | $ | 207,356 | $ | 13,928 | $ | 52,944 | $ | 7 | $ | 3 | $ | 900 | $ | 139,574 | ||||||||||||||
Home equity | 82,640 | 44,662 | 5,919 | 4 | 206 | 29,977 | 1,872 | |||||||||||||||||||||
U.S. credit card | 87,460 | 84,385 | 3,075 | — | — | — | — | |||||||||||||||||||||
Non-U.S. credit card | 10,012 | — | — | — | — | — | 10,012 | |||||||||||||||||||||
Direct/Indirect consumer | 83,698 | 40,539 | 42,464 | 4 | — | — | 691 | |||||||||||||||||||||
Other consumer | 1,885 | 1,243 | 8 | 1 | — | — | 633 | |||||||||||||||||||||
Total consumer | 473,051 | 184,757 | 104,410 | 16 | 209 | 30,877 | 152,782 | |||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
U.S. commercial | 244,540 | 16,922 | 23,608 | 162,580 | 36,993 | 20 | 4,417 | |||||||||||||||||||||
Commercial real estate | 50,478 | 24 | 2,049 | 44,066 | 4,173 | — | 166 | |||||||||||||||||||||
Commercial lease financing | 24,723 | — | 4 | 25,728 | 373 | — | (1,382 | ) | ||||||||||||||||||||
Non-U.S. commercial | 88,623 | — | 199 | 68,241 | 20,160 | — | 23 | |||||||||||||||||||||
Total commercial | 408,364 | 16,946 | 25,860 | 300,615 | 61,699 | 20 | 3,224 | |||||||||||||||||||||
Total loans and leases | $ | 881,415 | $ | 201,703 | $ | 130,270 | $ | 300,631 | $ | 61,908 | $ | 30,897 | $ | 156,006 | ||||||||||||||
First Quarter 2015 | ||||||||||||||||||||||||||||
Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | ||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Residential mortgage | $ | 215,030 | $ | 11,151 | $ | 51,647 | $ | 7 | $ | — | $ | 920 | $ | 151,305 | ||||||||||||||
Home equity | 84,915 | 45,331 | 6,112 | 4 | 197 | 31,467 | 1,804 | |||||||||||||||||||||
U.S. credit card | 88,695 | 85,577 | 3,118 | — | — | — | — | |||||||||||||||||||||
Non-U.S. credit card | 10,002 | — | — | — | — | — | 10,002 | |||||||||||||||||||||
Direct/Indirect consumer | 80,713 | 39,293 | 40,619 | 4 | — | — | 797 | |||||||||||||||||||||
Other consumer | 1,847 | 1,166 | 16 | 2 | 1 | — | 662 | |||||||||||||||||||||
Total consumer | 481,202 | 182,518 | 101,512 | 17 | 198 | 32,387 | 164,570 | |||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
U.S. commercial | 234,907 | 17,035 | 22,572 | 156,137 | 34,747 | 24 | 4,392 | |||||||||||||||||||||
Commercial real estate | 48,234 | 28 | 1,908 | 42,163 | 3,951 | — | 184 | |||||||||||||||||||||
Commercial lease financing | 24,495 | — | 4 | 25,442 | 450 | — | (1,401 | ) | ||||||||||||||||||||
Non-U.S. commercial | 83,555 | — | 133 | 65,763 | 17,646 | — | 13 | |||||||||||||||||||||
Total commercial | 391,191 | 17,063 | 24,617 | 289,505 | 56,794 | 24 | 3,188 | |||||||||||||||||||||
Total loans and leases | $ | 872,393 | $ | 199,581 | $ | 126,129 | $ | 289,522 | $ | 56,992 | $ | 32,411 | $ | 167,758 | ||||||||||||||
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 | 890 | 9 | 1 | — | — | 1,111 | |||||||||||||||||||||
Total consumer | 518,065 | 178,215 | 95,999 | 20 | 172 | 36,671 | 206,988 | |||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
U.S. commercial | 230,486 | 17,168 | 20,688 | 151,924 | 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 | 66,249 | 24,821 | — | 86 | |||||||||||||||||||||
Total commercial | 394,515 | 17,198 | 22,513 | 287,775 | 63,407 | 34 | 3,588 | |||||||||||||||||||||
Total loans and leases | $ | 912,580 | $ | 195,413 | $ | 118,512 | $ | 287,795 | $ | 63,579 | $ | 36,705 | $ | 210,576 | ||||||||||||||
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 36 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||
Commercial Credit Exposure by Industry (1, 2, 3) | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Commercial Utilized | Total Commercial Committed | ||||||||||||||||||||||
June 30 2015 | March 31 2015 | June 30 2014 | June 30 2015 | March 31 2015 | June 30 2014 | ||||||||||||||||||
Diversified financials | $ | 68,976 | $ | 65,579 | $ | 72,302 | $ | 114,441 | $ | 111,306 | $ | 120,705 | |||||||||||
Real estate (4) | 58,006 | 57,930 | 52,982 | 78,965 | 78,357 | 74,535 | |||||||||||||||||
Retailing | 36,731 | 34,612 | 33,941 | 63,136 | 58,701 | 54,983 | |||||||||||||||||
Capital goods | 30,566 | 29,254 | 28,921 | 55,057 | 54,171 | 53,444 | |||||||||||||||||
Government and public education | 43,055 | 42,894 | 40,174 | 50,582 | 51,066 | 47,613 | |||||||||||||||||
Healthcare equipment and services | 33,232 | 31,636 | 32,410 | 50,548 | 49,022 | 55,737 | |||||||||||||||||
Banking | 42,764 | 46,539 | 42,543 | 48,942 | 51,732 | 51,100 | |||||||||||||||||
Energy | 22,473 | 22,174 | 20,744 | 47,341 | 45,416 | 40,826 | |||||||||||||||||
Materials | 24,382 | 24,586 | 23,292 | 46,661 | 46,503 | 42,809 | |||||||||||||||||
Food, beverage and tobacco | 17,796 | 17,100 | 15,357 | 35,664 | 35,083 | 31,792 | |||||||||||||||||
Consumer services | 21,635 | 21,987 | 21,414 | 34,310 | 34,094 | 34,391 | |||||||||||||||||
Commercial services and supplies | 19,132 | 18,473 | 19,259 | 31,892 | 30,623 | 31,013 | |||||||||||||||||
Media | 12,181 | 11,615 | 11,801 | 27,153 | 21,596 | 23,283 | |||||||||||||||||
Transportation | 18,391 | 18,050 | 16,227 | 26,006 | 25,655 | 23,787 | |||||||||||||||||
Utilities | 11,161 | 10,559 | 9,898 | 25,601 | 25,679 | 26,549 | |||||||||||||||||
Individuals and trusts | 17,614 | 16,723 | 15,790 | 22,375 | 21,568 | 19,811 | |||||||||||||||||
Software and services | 5,607 | 5,542 | 6,296 | 14,451 | 15,052 | 13,360 | |||||||||||||||||
Technology hardware and equipment | 6,187 | 5,158 | 6,883 | 13,792 | 14,125 | 13,428 | |||||||||||||||||
Pharmaceuticals and biotechnology | 6,049 | 5,956 | 4,534 | 13,054 | 16,800 | 13,221 | |||||||||||||||||
Consumer durables and apparel | 6,110 | 6,457 | 5,793 | 10,633 | 10,827 | 10,274 | |||||||||||||||||
Automobiles and components | 4,799 | 5,203 | 3,446 | 10,185 | 10,479 | 9,000 | |||||||||||||||||
Insurance, including monolines | 4,404 | 4,758 | 4,827 | 10,154 | 10,402 | 11,075 | |||||||||||||||||
Telecommunication services | 3,934 | 3,991 | 4,269 | 9,990 | 10,407 | 10,207 | |||||||||||||||||
Food and staples retailing | 3,831 | 3,812 | 4,079 | 7,286 | 7,482 | 7,831 | |||||||||||||||||
Religious and social organizations | 4,700 | 4,692 | 5,144 | 6,257 | 6,215 | 6,965 | |||||||||||||||||
Other | 5,754 | 7,249 | 5,544 | 13,838 | 12,704 | 8,686 | |||||||||||||||||
Total commercial credit exposure by industry | $ | 529,470 | $ | 522,529 | $ | 507,870 | $ | 868,314 | $ | 855,065 | $ | 836,425 | |||||||||||
Net credit default protection purchased on total commitments (5) | $ | (5,584 | ) | $ | (6,720 | ) | $ | (8,678 | ) | ||||||||||||||
(1) | Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held-for-sale, commercial letters of credit, bankers' acceptances, securitized assets, foreclosed properties and other collateral acquired. Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by the amount of cash collateral applied of $39.7 billion, $52.7 billion and $41.2 billion at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $22.6 billion, $21.8 billion and $16.3 billion, which consists primarily of other marketable securities at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. |
(2) | Total commercial utilized and total commercial committed exposure include loans and letters of credit accounted for under the fair value option and are comprised of loans outstanding of $5.7 billion, $6.4 billion and $8.7 billion and issued letters of credit at notional value of $246 million, $469 million and $553 million at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $7.9 billion, $8.4 billion and $9.5 billion at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. |
(3) | Includes U.S. small business commercial exposure. |
(4) | Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based on the borrowers' or counterparties' primary business activity using operating cash flows and primary source of repayment as key factors. |
(5) | Represents net notional credit protection purchased. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 37 |
Bank of America Corporation and Subsidiaries | ||||||
Net Credit Default Protection by Maturity Profile (1) | ||||||
June 30 2015 | March 31 2015 | |||||
Less than or equal to one year | 35 | % | 40 | % | ||
Greater than one year and less than or equal to five years | 63 | 58 | ||||
Greater than five years | 2 | 2 | ||||
Total net credit default protection | 100 | % | 100 | % |
(1) | To mitigate the cost of purchasing credit protection, credit exposure can be added by selling credit protection. The distribution of maturities for net credit default protection purchased is shown in this table. |
Net Credit Default Protection by Credit Exposure Debt Rating (1) | ||||||||||||||
(Dollars in millions) | ||||||||||||||
June 30, 2015 | March 31, 2015 | |||||||||||||
Ratings (2, 3) | Net Notional (4) | Percent of Total | Net Notional (4) | Percent of Total | ||||||||||
A | $ | (622 | ) | 11.1 | % | $ | (758 | ) | 11.3 | % | ||||
BBB | (2,196 | ) | 39.3 | (3,168 | ) | 47.1 | ||||||||
BB | (1,908 | ) | 34.2 | (2,013 | ) | 30.0 | ||||||||
B | (762 | ) | 13.6 | (689 | ) | 10.3 | ||||||||
CCC and below | (70 | ) | 1.3 | (56 | ) | 0.8 | ||||||||
NR (5) | (26 | ) | 0.5 | (36 | ) | 0.5 | ||||||||
Total net credit default protection | $ | (5,584 | ) | 100.0 | % | $ | (6,720 | ) | 100.0 | % |
(1) | To mitigate the cost of purchasing credit protection, credit exposure can be added by selling credit protection. The distribution of debt rating for net notional credit default protection purchased is shown as a negative and the net notional credit protection sold is shown as a positive amount. |
(2) | Ratings are refreshed on a quarterly basis. |
(3) | Ratings of BBB- or higher are considered to meet the definition of investment grade. |
(4) | Represents net credit default protection (purchased) sold. |
(5) | NR is comprised of index positions held and any names that have not been rated. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 38 |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||
Top 20 Non-U.S. Countries Exposure | |||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||
Funded Loans and Loan Equivalents (1) | Unfunded Loan Commitments | Net Counterparty Exposure (2) | Securities/ Other Investments (3) | Country Exposure at June 30 2015 | Hedges and Credit Default Protection (4) | Net Country Exposure at June 30 2015 (5) | Increase (Decrease) from March 31 2015 | ||||||||||||||||||||||||
United Kingdom | $ | 26,804 | $ | 12,270 | $ | 7,914 | $ | 5,527 | $ | 52,515 | $ | (2,846 | ) | $ | 49,669 | $ | 3,345 | ||||||||||||||
Canada | 6,385 | 6,948 | 2,060 | 4,355 | 19,748 | (1,922 | ) | 17,826 | 249 | ||||||||||||||||||||||
Germany | 5,534 | 4,401 | 4,199 | 5,047 | 19,181 | (3,299 | ) | 15,882 | 472 | ||||||||||||||||||||||
Brazil | 10,801 | 315 | 452 | 4,252 | 15,820 | (340 | ) | 15,480 | (1,002 | ) | |||||||||||||||||||||
Japan | 9,491 | 500 | 3,992 | 2,845 | 16,828 | (1,762 | ) | 15,066 | (1,228 | ) | |||||||||||||||||||||
France | 2,428 | 4,709 | 1,500 | 6,302 | 14,939 | (2,877 | ) | 12,062 | 2,022 | ||||||||||||||||||||||
China | 9,799 | 385 | 691 | 1,251 | 12,126 | (841 | ) | 11,285 | (138 | ) | |||||||||||||||||||||
India | 6,779 | 324 | 181 | 3,533 | 10,817 | (263 | ) | 10,554 | (888 | ) | |||||||||||||||||||||
Hong Kong | 7,896 | 340 | 1,022 | 591 | 9,849 | (35 | ) | 9,814 | 1,682 | ||||||||||||||||||||||
Netherlands | 3,143 | 3,373 | 957 | 1,644 | 9,117 | (893 | ) | 8,224 | (391 | ) | |||||||||||||||||||||
South Korea | 4,036 | 963 | 1,138 | 2,548 | 8,685 | (696 | ) | 7,989 | 419 | ||||||||||||||||||||||
Australia | 3,320 | 2,027 | 680 | 1,819 | 7,846 | (532 | ) | 7,314 | 97 | ||||||||||||||||||||||
Switzerland | 3,567 | 3,127 | 688 | 733 | 8,115 | (1,023 | ) | 7,092 | (35 | ) | |||||||||||||||||||||
Italy | 2,988 | 1,475 | 1,618 | 929 | 7,010 | (1,522 | ) | 5,488 | 1,148 | ||||||||||||||||||||||
Singapore | 2,417 | 240 | 675 | 1,126 | 4,458 | (64 | ) | 4,394 | 288 | ||||||||||||||||||||||
Spain | 2,300 | 529 | 269 | 1,105 | 4,203 | (499 | ) | 3,704 | (281 | ) | |||||||||||||||||||||
Mexico | 2,904 | 917 | 222 | 41 | 4,084 | (611 | ) | 3,473 | (321 | ) | |||||||||||||||||||||
Turkey | 2,998 | 173 | 26 | 50 | 3,247 | (192 | ) | 3,055 | 386 | ||||||||||||||||||||||
Russia | 3,310 | 51 | 245 | 19 | 3,625 | (741 | ) | 2,884 | 60 | ||||||||||||||||||||||
United Arab Emirates | 1,733 | 258 | 976 | 35 | 3,002 | (125 | ) | 2,877 | 526 | ||||||||||||||||||||||
Total top 20 non-U.S. countries exposure | $ | 118,633 | $ | 43,325 | $ | 29,505 | $ | 43,752 | $ | 235,215 | $ | (21,083 | ) | $ | 214,132 | $ | 6,410 |
(1) | Includes loans, leases, and other extensions of credit and funds, including letters of credit and due from placements, which have not been reduced by collateral, hedges or credit default protection. Funded loans and loan equivalents are reported net of charge-offs but prior to any allowance for loan and lease losses. |
(2) | Net counterparty exposure includes the fair value of derivatives, including the counterparty risk associated with credit default swaps, and secured financing transactions. Derivative exposures are presented net of $27.2 billion in collateral, which is predominantly cash, pledged under legally enforceable master netting agreements. Secured financing transaction exposures are presented net of eligible cash or securities pledged as collateral. The notional amount of reverse repurchase transactions was $98.3 billion. Counterparty exposure is not presented net of hedges or credit default protection. |
(3) | Long securities exposures are netted on a single-name basis to, but not below, zero by short exposures and net credit default swaps purchased, consisting of single-name and net indexed and tranched credit default swaps. |
(4) | Represents credit default protection purchased, net of credit default protection sold, which is used to mitigate the Corporation's risk to country exposures as listed, consisting of net single-name and net indexed and tranched credit default swaps. Amounts are calculated based on the credit default swaps notional amount assuming a zero recovery rate less any fair value receivable or payable. |
(5) | Represents country exposure less hedges and credit default protection purchased, net of credit default protection sold. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 39 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||
Nonperforming Loans, Leases and Foreclosed Properties | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
June 30 2015 | March 31 2015 | December 31 2014 | September 30 2014 | June 30 2014 | ||||||||||||||||
Residential mortgage | $ | 5,985 | $ | 6,421 | $ | 6,889 | $ | 8,118 | $ | 9,235 | ||||||||||
Home equity | 3,563 | 3,759 | 3,901 | 4,026 | 4,181 | |||||||||||||||
Direct/Indirect consumer | 26 | 28 | 28 | 30 | 29 | |||||||||||||||
Other consumer | 1 | 1 | 1 | 14 | 15 | |||||||||||||||
Total consumer | 9,575 | 10,209 | 10,819 | 12,188 | 13,460 | |||||||||||||||
U.S. commercial | 869 | 680 | 701 | 757 | 849 | |||||||||||||||
Commercial real estate | 126 | 132 | 321 | 445 | 252 | |||||||||||||||
Commercial lease financing | 19 | 16 | 3 | 7 | 8 | |||||||||||||||
Non-U.S. commercial | 80 | 79 | 1 | 45 | 7 | |||||||||||||||
1,094 | 907 | 1,026 | 1,254 | 1,116 | ||||||||||||||||
U.S. small business commercial | 78 | 89 | 87 | 98 | 100 | |||||||||||||||
Total commercial | 1,172 | 996 | 1,113 | 1,352 | 1,216 | |||||||||||||||
Total nonperforming loans and leases | 10,747 | 11,205 | 11,932 | 13,540 | 14,676 | |||||||||||||||
Foreclosed properties (1) | 818 | 896 | 697 | 692 | 624 | |||||||||||||||
Total nonperforming loans, leases and foreclosed properties (2, 3, 4) | $ | 11,565 | $ | 12,101 | $ | 12,629 | $ | 14,232 | $ | 15,300 | ||||||||||
Fully-insured home loans past due 30 days or more and still accruing | $ | 11,871 | $ | 12,743 | $ | 14,617 | $ | 16,280 | $ | 17,347 | ||||||||||
Consumer credit card past due 30 days or more and still accruing | 1,650 | 1,749 | 1,884 | 1,903 | 1,923 | |||||||||||||||
Other loans past due 30 days or more and still accruing | 3,429 | 3,532 | 3,953 | 4,326 | 4,064 | |||||||||||||||
Total loans past due 30 days or more and still accruing (3, 5, 6) | $ | 16,950 | $ | 18,024 | $ | 20,454 | $ | 22,509 | $ | 23,334 | ||||||||||
Fully-insured home loans past due 90 days or more and still accruing | $ | 8,917 | $ | 9,912 | $ | 11,407 | $ | 13,045 | $ | 14,137 | ||||||||||
Consumer credit card past due 90 days or more and still accruing | 828 | 883 | 961 | 935 | 990 | |||||||||||||||
Other loans past due 90 days or more and still accruing | 195 | 173 | 286 | 609 | 523 | |||||||||||||||
Total loans past due 90 days or more and still accruing (3, 5, 6) | $ | 9,940 | $ | 10,968 | $ | 12,654 | $ | 14,589 | $ | 15,650 | ||||||||||
Nonperforming loans, leases and foreclosed properties/Total assets (7) | 0.54 | % | 0.57 | % | 0.60 | % | 0.67 | % | 0.71 | % | ||||||||||
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties (7) | 1.31 | 1.39 | 1.45 | 1.61 | 1.70 | |||||||||||||||
Nonperforming loans and leases/Total loans and leases (7) | 1.22 | 1.29 | 1.37 | 1.53 | 1.63 | |||||||||||||||
Commercial utilized reservable criticized exposure (8) | $ | 13,312 | $ | 12,303 | $ | 11,570 | $ | 11,766 | $ | 12,430 | ||||||||||
Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure (8) | 2.97 | % | 2.85 | % | 2.74 | % | 2.79 | % | 2.92 | % | ||||||||||
Total commercial utilized criticized exposure/Commercial utilized exposure (8) | 3.08 | 2.99 | 2.97 | 2.97 | 3.15 | |||||||||||||||
(1) | Foreclosed property balances do not include properties insured by certain government-guaranteed loans, principally FHA-insured loans, that entered foreclosure of $1.3 billion, $1.2 billion, $1.1 billion, $1.1 billion and $1.1 billion at June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, respectively. |
(2) | Balances do not include past due consumer credit card, consumer loans secured by real estate where repayments are insured by the Federal Housing Administration and individually insured long-term stand-by agreements (fully-insured home loans), and in general, other consumer and commercial loans not secured by real estate. |
(3) | Balances do not include purchased credit-impaired loans even though the customer may be contractually past due. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan. |
(4) Balances do not include the following: | June 30 2015 | March 31 2015 | December 31 2014 | September 30 2014 | June 30 2014 | |||||||||||||||
Nonperforming loans held-for-sale | $ | 298 | $ | 344 | $ | 219 | $ | 255 | $ | 598 | ||||||||||
Nonperforming loans accounted for under the fair value option | 339 | 380 | 392 | 436 | 427 | |||||||||||||||
Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010 | 72 | 86 | 102 | 101 | 140 |
(5) | Balances do not include loans held-for-sale past due 30 days or more and still accruing of $42 million, $125 million, $475 million, $42 million and $37 million at June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, respectively, and loans held-for-sale past due 90 days or more and still accruing of $0, $44 million, $249 million, $0 and $0 at June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, respectively. At June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, there were $141 million, $132 million, $147 million, $147 million and $153 million, respectively, of loans accounted for under the fair value option past due 30 days or more and still accruing interest. |
(6) | These balances are excluded from total nonperforming loans, leases and foreclosed properties. |
(7) | Total assets and total loans and leases do not include loans accounted for under the fair value option of $7.6 billion, $8.5 billion, $8.7 billion, $8.2 billion and $10.9 billion at June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, respectively. |
(8) | Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure excludes loans held-for-sale, exposure accounted for under the fair value option and other nonreservable exposure. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 40 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||
Nonperforming Loans, Leases and Foreclosed Properties Activity (1) | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | ||||||||||||||||
Nonperforming Consumer Loans and Leases: | ||||||||||||||||||||
Balance, beginning of period | $ | 10,209 | $ | 10,819 | $ | 12,188 | $ | 13,460 | $ | 15,844 | ||||||||||
Additions to nonperforming loans and leases: | ||||||||||||||||||||
New nonperforming loans and leases | 1,424 | 1,469 | 1,709 | 1,516 | 1,825 | |||||||||||||||
Reductions to nonperforming loans and leases: | ||||||||||||||||||||
Paydowns and payoffs | (289 | ) | (253 | ) | (310 | ) | (522 | ) | (325 | ) | ||||||||||
Sales | (542 | ) | (371 | ) | (1,347 | ) | (957 | ) | (1,825 | ) | ||||||||||
Returns to performing status (2) | (631 | ) | (867 | ) | (728 | ) | (810 | ) | (939 | ) | ||||||||||
Charge-offs (3) | (484 | ) | (460 | ) | (533 | ) | (431 | ) | (640 | ) | ||||||||||
Transfers to foreclosed properties | (112 | ) | (128 | ) | (160 | ) | (183 | ) | (157 | ) | ||||||||||
Transfers (to) from loans held-for-sale | — | — | — | 115 | (323 | ) | ||||||||||||||
Total net reductions to nonperforming loans and leases | (634 | ) | (610 | ) | (1,369 | ) | (1,272 | ) | (2,384 | ) | ||||||||||
Total nonperforming consumer loans and leases, end of period | 9,575 | 10,209 | 10,819 | 12,188 | 13,460 | |||||||||||||||
Foreclosed properties | 553 | 632 | 630 | 614 | 547 | |||||||||||||||
Nonperforming consumer loans, leases and foreclosed properties, end of period | $ | 10,128 | $ | 10,841 | $ | 11,449 | $ | 12,802 | $ | 14,007 | ||||||||||
Nonperforming Commercial Loans and Leases (4): | ||||||||||||||||||||
Balance, beginning of period | $ | 996 | $ | 1,113 | $ | 1,352 | $ | 1,216 | $ | 1,265 | ||||||||||
Additions to nonperforming loans and leases: | ||||||||||||||||||||
New nonperforming loans and leases | 419 | 287 | 214 | 477 | 275 | |||||||||||||||
Advances | 15 | 2 | 6 | 33 | 1 | |||||||||||||||
Reductions to nonperforming loans and leases: | ||||||||||||||||||||
Paydowns | (103 | ) | (110 | ) | (202 | ) | (161 | ) | (183 | ) | ||||||||||
Sales | (65 | ) | (16 | ) | (81 | ) | (12 | ) | (29 | ) | ||||||||||
Return to performing status (5) | (27 | ) | (24 | ) | (77 | ) | (80 | ) | (41 | ) | ||||||||||
Charge-offs | (56 | ) | (51 | ) | (95 | ) | (116 | ) | (71 | ) | ||||||||||
Transfers to foreclosed properties | (7 | ) | (205 | ) | (4 | ) | (5 | ) | (1 | ) | ||||||||||
Total net additions (reductions) to nonperforming loans and leases | 176 | (117 | ) | (239 | ) | 136 | (49 | ) | ||||||||||||
Total nonperforming commercial loans and leases, end of period | 1,172 | 996 | 1,113 | 1,352 | 1,216 | |||||||||||||||
Foreclosed properties | 265 | 264 | 67 | 78 | 77 | |||||||||||||||
Nonperforming commercial loans, leases and foreclosed properties, end of period | $ | 1,437 | $ | 1,260 | $ | 1,180 | $ | 1,430 | $ | 1,293 | ||||||||||
(1) | For amounts excluded from nonperforming loans, leases and foreclosed properties, see footnotes to Nonperforming Loans, Leases and Foreclosed Properties table on page 40. |
(2) | Consumer loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Certain troubled debt restructurings are classified as nonperforming at the time of restructuring and may only be returned to performing status after considering the borrower's sustained repayment performance for a reasonable period, generally six months. |
(3) | Our policy is not to classify consumer credit card and non-bankruptcy related consumer loans not secured by real estate as nonperforming; therefore, the charge-offs on these loans have no impact on nonperforming activity and, accordingly, are excluded from this table. |
(4) | Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming. |
(5) | Commercial loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Troubled debt restructurings are generally classified as performing after a sustained period of demonstrated payment performance. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 41 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||
Quarterly Net Charge-offs and Net Charge-off Ratios (1, 2) | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||
Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | ||||||||||||||||||||||||||||||
Net Charge-offs | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||
Residential mortgage (3) | $ | 177 | 0.35 | % | $ | 197 | 0.37 | % | $ | (259 | ) | (0.46 | )% | $ | 53 | 0.09 | % | $ | (35 | ) | (0.06 | )% | ||||||||||||
Home equity | 151 | 0.73 | 172 | 0.82 | 277 | 1.27 | 89 | 0.40 | 239 | 1.06 | ||||||||||||||||||||||||
U.S. credit card | 584 | 2.68 | 621 | 2.84 | 612 | 2.71 | 625 | 2.79 | 683 | 3.11 | ||||||||||||||||||||||||
Non-U.S. credit card | 51 | 2.03 | 44 | 1.80 | 52 | 1.90 | 67 | 2.26 | 47 | 1.59 | ||||||||||||||||||||||||
Direct/Indirect consumer | 24 | 0.11 | 34 | 0.17 | 44 | 0.21 | 34 | 0.17 | 33 | 0.16 | ||||||||||||||||||||||||
Other consumer | 33 | 7.00 | 49 | 10.88 | 68 | 13.31 | 56 | 10.48 | 47 | 9.26 | ||||||||||||||||||||||||
Total consumer | 1,020 | 0.87 | 1,117 | 0.95 | 794 | 0.64 | 924 | 0.72 | 1,014 | 0.79 | ||||||||||||||||||||||||
U.S. commercial (4) | (1 | ) | — | 7 | 0.01 | 19 | 0.04 | 58 | 0.11 | 6 | 0.01 | |||||||||||||||||||||||
Commercial real estate | (4 | ) | (0.03 | ) | 5 | 0.04 | (8 | ) | (0.07 | ) | (6 | ) | (0.05 | ) | (32 | ) | (0.27 | ) | ||||||||||||||||
Commercial lease financing | — | — | 5 | 0.09 | 1 | 0.02 | (3 | ) | (0.05 | ) | (5 | ) | (0.07 | ) | ||||||||||||||||||||
Non-U.S. commercial | 2 | 0.01 | (2 | ) | (0.01 | ) | 2 | 0.01 | 1 | — | 12 | 0.06 | ||||||||||||||||||||||
(3 | ) | — | 15 | 0.02 | 14 | 0.02 | 50 | 0.05 | (19 | ) | (0.02 | ) | ||||||||||||||||||||||
U.S. small business commercial | 51 | 1.56 | 62 | 1.90 | 71 | 2.10 | 69 | 2.03 | 78 | 2.34 | ||||||||||||||||||||||||
Total commercial | 48 | 0.05 | 77 | 0.08 | 85 | 0.09 | 119 | 0.12 | 59 | 0.06 | ||||||||||||||||||||||||
Total net charge-offs | $ | 1,068 | 0.49 | $ | 1,194 | 0.56 | $ | 879 | 0.40 | $ | 1,043 | 0.46 | $ | 1,073 | 0.48 | |||||||||||||||||||
By Business Segment | ||||||||||||||||||||||||||||||||||
Consumer Banking | $ | 726 | 1.44 | % | $ | 806 | 1.64 | % | $ | 832 | 1.66 | % | $ | 815 | 1.64 | % | $ | 894 | 1.83 | % | ||||||||||||||
Global Wealth & Investment Management | 17 | 0.05 | 18 | 0.06 | 36 | 0.12 | 6 | 0.02 | 4 | 0.01 | ||||||||||||||||||||||||
Global Banking | (2 | ) | — | 6 | 0.01 | 2 | — | 52 | 0.07 | (8 | ) | (0.01 | ) | |||||||||||||||||||||
Global Markets | — | — | — | — | — | — | — | — | 3 | 0.02 | ||||||||||||||||||||||||
Legacy Assets & Servicing | 99 | 1.32 | 122 | 1.56 | 199 | 2.40 | 42 | 0.48 | 169 | 1.90 | ||||||||||||||||||||||||
All Other | 228 | 0.59 | 242 | 0.59 | (190 | ) | (0.41 | ) | 128 | 0.26 | 11 | 0.02 | ||||||||||||||||||||||
Total net charge-offs | $ | 1,068 | 0.49 | $ | 1,194 | 0.56 | $ | 879 | 0.40 | $ | 1,043 | 0.46 | $ | 1,073 | 0.48 | |||||||||||||||||||
(1) | Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option during the period for each loan and lease category. Excluding the purchased credit-impaired loan portfolio, total annualized net charge-offs as a percentage of total average loans and leases outstanding were 0.50, 0.57, 0.41, 0.48 and 0.49 for the three months ended June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, respectively. |
(2) | Excludes write-offs of purchased credit-impaired loans of $290 million, $288 million, $13 million, $246 million and $160 million for the three months ended June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, respectively. Including the write-offs of purchased credit-impaired loans, total annualized net charge-offs and purchased credit-impaired write-offs as a percentage of total average loans and leases outstanding were 0.62, 0.70, 0.40, 0.57 and 0.55 for the three months ended June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, respectively. |
(3) | Includes nonperforming loan sales recoveries and other recoveries of $27 million, $40 million, $314 million, $39 million and $185 million for the three months ended June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, respectively. |
(4) | Excludes U.S. small business commercial loans. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 42 |
Bank of America Corporation and Subsidiaries | |||||||||||||
Year-to-Date Net Charge-offs and Net Charge-off Ratios (1, 2) | |||||||||||||
(Dollars in millions) | |||||||||||||
Six Months Ended June 30 | |||||||||||||
2015 | 2014 | ||||||||||||
Net Charge-offs | Amount | Percent | Amount | Percent | |||||||||
Residential mortgage (3) | $ | 374 | 0.36 | % | $ | 92 | 0.08 | % | |||||
Home equity | 323 | 0.78 | 541 | 1.19 | |||||||||
U.S. credit card | 1,205 | 2.76 | 1,401 | 3.18 | |||||||||
Non-U.S. credit card | 95 | 1.91 | 123 | 2.12 | |||||||||
Direct/Indirect consumer | 58 | 0.14 | 91 | 0.22 | |||||||||
Other consumer | 82 | 8.91 | 105 | 10.64 | |||||||||
Total consumer | 2,137 | 0.91 | 2,353 | 0.91 | |||||||||
U.S. commercial (4) | 6 | 0.01 | 11 | 0.01 | |||||||||
Commercial real estate | 1 | 0.01 | (69 | ) | (0.29 | ) | |||||||
Commercial lease financing | 5 | 0.04 | (7 | ) | (0.05 | ) | |||||||
Non-U.S. commercial | — | — | 31 | 0.07 | |||||||||
12 | 0.01 | (34 | ) | (0.02 | ) | ||||||||
U.S. small business commercial | 113 | 1.73 | 142 | 2.14 | |||||||||
Total commercial | 125 | 0.06 | 108 | 0.06 | |||||||||
Total net charge-offs | $ | 2,262 | 0.53 | $ | 2,461 | 0.55 | |||||||
By Business Segment | |||||||||||||
Consumer Banking | $ | 1,532 | 1.54 | % | $ | 1,850 | 1.90 | % | |||||
Global Wealth & Investment Management | 35 | 0.06 | 29 | 0.05 | |||||||||
Global Banking | 4 | — | (23 | ) | (0.02 | ) | |||||||
Global Markets | — | — | 2 | 0.01 | |||||||||
Legacy Assets & Servicing | 221 | 1.45 | 386 | 2.14 | |||||||||
All Other | 470 | 0.59 | 217 | 0.21 | |||||||||
Total net charge-offs | $ | 2,262 | 0.53 | $ | 2,461 | 0.55 | |||||||
(1) | Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option during the period for each loan and lease category. Excluding the purchased credit-impaired loan portfolio, total annualized net charge-offs as a percentage of total average loans and leases outstanding were 0.54 and 0.56 for the six months ended June 30, 2015 and 2014. |
(2) | Excludes write-offs of purchased credit-impaired loans of $578 million and $551 million for the six months ended June 30, 2015 and 2014. Including the write-offs of purchased credit-impaired loans, total annualized net charge-offs and purchased credit-impaired write-offs as a percentage of total average loans and leases outstanding were 0.66 and 0.67 for the six months ended June 30, 2015 and 2014. |
(3) | Includes nonperforming loan sales recoveries and other recoveries of $67 million and $185 million for the six months ended June 30, 2015 and 2014. |
(4) | Excludes U.S. small business commercial loans. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 43 |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||
Allocation of the Allowance for Credit Losses by Product Type | ||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||
June 30, 2015 | March 31, 2015 | June 30, 2014 | ||||||||||||||||||||||||||||
Allowance for loan and lease losses | Amount | Percent of Total | Percent of Loans and Leases Outstanding (1, 2) | Amount | Percent of Total | Percent of Loans and Leases Outstanding (1, 2) | Amount | Percent of Total | Percent of Loans and Leases Outstanding (1, 2) | |||||||||||||||||||||
Residential mortgage | $ | 1,997 | 15.28 | % | 1.00 | % | $ | 2,426 | 17.74 | % | 1.17 | % | $ | 3,214 | 20.33 | % | 1.36 | % | ||||||||||||
Home equity | 2,744 | 21.00 | 3.39 | 2,824 | 20.65 | 3.38 | 3,694 | 23.36 | 4.13 | |||||||||||||||||||||
U.S. credit card | 3,060 | 23.42 | 3.46 | 3,252 | 23.78 | 3.73 | 3,524 | 22.29 | 3.96 | |||||||||||||||||||||
Non-U.S. credit card | 339 | 2.59 | 3.30 | 343 | 2.51 | 3.55 | 424 | 2.68 | 3.53 | |||||||||||||||||||||
Direct/Indirect consumer | 254 | 1.94 | 0.30 | 282 | 2.06 | 0.34 | 371 | 2.35 | 0.45 | |||||||||||||||||||||
Other consumer | 49 | 0.37 | 2.45 | 52 | 0.38 | 2.79 | 98 | 0.62 | 4.71 | |||||||||||||||||||||
Total consumer | 8,443 | 64.60 | 1.81 | 9,179 | 67.12 | 1.94 | 11,325 | 71.63 | 2.21 | |||||||||||||||||||||
U.S. commercial (3) | 2,694 | 20.62 | 1.08 | 2,633 | 19.25 | 1.11 | 2,712 | 17.15 | 1.17 | |||||||||||||||||||||
Commercial real estate | 1,041 | 7.97 | 1.99 | 1,031 | 7.54 | 2.09 | 963 | 6.09 | 2.06 | |||||||||||||||||||||
Commercial lease financing | 157 | 1.20 | 0.62 | 150 | 1.10 | 0.61 | 137 | 0.87 | 0.56 | |||||||||||||||||||||
Non-U.S. commercial | 733 | 5.61 | 0.84 | 683 | 4.99 | 0.80 | 674 | 4.26 | 0.79 | |||||||||||||||||||||
Total commercial (4) | 4,625 | 35.40 | 1.12 | 4,497 | 32.88 | 1.13 | 4,486 | 28.37 | 1.15 | |||||||||||||||||||||
Allowance for loan and lease losses | 13,068 | 100.00 | % | 1.49 | 13,676 | 100.00 | % | 1.57 | 15,811 | 100.00 | % | 1.75 | ||||||||||||||||||
Reserve for unfunded lending commitments | 588 | 537 | 503 | |||||||||||||||||||||||||||
Allowance for credit losses | $ | 13,656 | $ | 14,213 | $ | 16,314 | ||||||||||||||||||||||||
Asset Quality Indicators | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses/Total loans and leases (2) | 1.49 | % | 1.57 | % | 1.75 | % | ||||||||||||||||||||||||
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total loans and leases (excluding purchased credit-impaired loans) (2, 5) | 1.39 | 1.45 | 1.59 | |||||||||||||||||||||||||||
Allowance for loan and lease losses/Total nonperforming loans and leases (6) | 122 | 122 | 108 | |||||||||||||||||||||||||||
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total nonperforming loans and leases (5) | 111 | 110 | 95 | |||||||||||||||||||||||||||
Ratio of the allowance for loan and lease losses/Annualized net charge-offs (7) | 3.05 | 2.82 | 3.67 | |||||||||||||||||||||||||||
Ratio of the allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Annualized net charge-offs (5, 7) | 2.79 | 2.55 | 3.25 | |||||||||||||||||||||||||||
Ratio of the allowance for loan and lease losses/Annualized net charge-offs and purchased credit-impaired write-offs | 2.40 | 2.28 | 3.20 | |||||||||||||||||||||||||||
(1) | Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option. Consumer loans accounted for under the fair value option included residential mortgage loans of $1.8 billion, $1.9 billion and $2.0 billion and home equity loans of $208 million, $205 million and $170 million at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. Commercial loans accounted for under the fair value option included U.S. commercial loans of $2.3 billion, $2.0 billion and $1.3 billion and non-U.S. commercial loans of $3.4 billion, $4.5 billion and $7.4 billion at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. |
(2) | Total loans and leases do not include loans accounted for under the fair value option of $7.6 billion, $8.5 billion and $10.9 billion at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. |
(3) | Includes allowance for loan and lease losses for U.S. small business commercial loans of $525 million, $533 million and $511 million at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. |
(4) | Includes allowance for loan and lease losses for impaired commercial loans of $156 million, $155 million and $278 million at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. |
(5) | Excludes valuation allowance on purchased credit-impaired loans of $1.1 billion, $1.3 billion and $1.8 billion at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. |
(6) | Allowance for loan and lease losses includes $5.1 billion, $5.5 billion and $6.5 billion allocated to products (primarily the Consumer Lending portfolios within Consumer Banking and purchased credit-impaired loans) that are excluded from nonperforming loans and leases at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. Excluding these amounts, allowance for loan and lease losses as a percentage of total nonperforming loans and leases was 75 percent, 73 percent and 64 percent at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. |
(7) | Net charge-offs exclude $290 million, $288 million and $160 million of write-offs in the purchased credit-impaired loan portfolio at June 30, 2015, March 31, 2015 and June 30, 2014. These write-offs decreased the purchased credit-impaired valuation allowance included as part of the allowance for loan and lease losses. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 44 |
Exhibit A: Non-GAAP Reconciliations | |||||
Bank of America Corporation and Subsidiaries | |||||
Reconciliations to GAAP Financial Measures | |||||
(Dollars in millions) |
The Corporation evaluates its business based on a fully taxable-equivalent basis, a non-GAAP financial measure. The Corporation believes managing the business with net interest income on a fully taxable-equivalent basis provides a more accurate picture of the interest margin for comparative purposes. Total revenue, net of interest expense, includes net interest income on a fully taxable-equivalent basis and noninterest income. The Corporation views related ratios and analyses (i.e., efficiency ratios and net interest yield) on a fully taxable-equivalent basis. To derive the fully taxable-equivalent basis, net interest income is adjusted to reflect tax-exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. For purposes of this calculation, the Corporation uses the federal statutory tax rate of 35 percent. This measure ensures comparability of net interest income arising from taxable and tax-exempt sources. The efficiency ratio measures the costs expended to generate a dollar of revenue, and net interest yield measures the basis points the Corporation earns over the cost of funds.
The Corporation also evaluates its business based on the following ratios that utilize tangible equity, a non-GAAP financial measure. Tangible equity represents an adjusted shareholders' equity or common shareholders' equity amount which has been reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible common shareholders' equity measures the Corporation's earnings contribution as a percentage of adjusted average common shareholders' equity. The tangible common equity ratio represents adjusted ending common shareholders' equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible shareholders' equity measures the Corporation's earnings contribution as a percentage of adjusted average total shareholders' equity. The tangible equity ratio represents adjusted ending shareholders' equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Tangible book value per common share represents adjusted ending common shareholders' equity divided by ending common shares outstanding. These measures are used to evaluate the Corporation's use of equity. In addition, profitability, relationship and investment models all use return on average tangible shareholders' equity as key measures to support our overall growth goals.
In addition, the Corporation periodically reviews capital allocated to its businesses and allocates capital annually during the strategic and capital planning processes. We utilize 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, risk-weighted assets measured under Basel 3 Standardized and Advanced approaches, business segment exposures and risk profile, and strategic plans. As part of this process, in 2015, the Corporation adjusted the amount of capital being allocated to its business segments, primarily Legacy Assets & Servicing.
See the tables below and on pages 46-48 for reconciliations of these non-GAAP financial measures to financial measures defined by GAAP for the six months ended June 30, 2015 and 2014 and the three months ended June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 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.
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis | |||||||||||||||||||||||||||||
Net interest income | $ | 19,939 | $ | 20,098 | $ | 10,488 | $ | 9,451 | $ | 9,635 | $ | 10,219 | $ | 10,013 | |||||||||||||||
Fully taxable-equivalent adjustment | 447 | 414 | 228 | 219 | 230 | 225 | 213 | ||||||||||||||||||||||
Net interest income on a fully taxable-equivalent basis | $ | 20,386 | $ | 20,512 | $ | 10,716 | $ | 9,670 | $ | 9,865 | $ | 10,444 | $ | 10,226 | |||||||||||||||
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 | $ | 43,319 | $ | 44,313 | $ | 22,117 | $ | 21,202 | $ | 18,725 | $ | 21,209 | $ | 21,747 | |||||||||||||||
Fully taxable-equivalent adjustment | 447 | 414 | 228 | 219 | 230 | 225 | 213 | ||||||||||||||||||||||
Total revenue, net of interest expense on a fully taxable-equivalent basis | $ | 43,766 | $ | 44,727 | $ | 22,345 | $ | 21,421 | $ | 18,955 | $ | 21,434 | $ | 21,960 | |||||||||||||||
Reconciliation of income tax expense to income tax expense on a fully taxable-equivalent basis | |||||||||||||||||||||||||||||
Income tax expense | $ | 3,584 | $ | 99 | $ | 2,199 | $ | 1,385 | $ | 1,260 | $ | 663 | $ | 504 | |||||||||||||||
Fully taxable-equivalent adjustment | 447 | 414 | 228 | 219 | 230 | 225 | 213 | ||||||||||||||||||||||
Income tax expense on a fully taxable-equivalent basis | $ | 4,031 | $ | 513 | $ | 2,427 | $ | 1,604 | $ | 1,490 | $ | 888 | $ | 717 | |||||||||||||||
Reconciliation of average common shareholders' equity to average tangible common shareholders' equity | |||||||||||||||||||||||||||||
Common shareholders' equity | $ | 227,078 | $ | 222,711 | $ | 228,780 | $ | 225,357 | $ | 224,479 | $ | 222,374 | $ | 222,221 | |||||||||||||||
Goodwill | (69,776 | ) | (69,832 | ) | (69,775 | ) | (69,776 | ) | (69,782 | ) | (69,792 | ) | (69,822 | ) | |||||||||||||||
Intangible assets (excluding mortgage servicing rights) | (4,412 | ) | (5,354 | ) | (4,307 | ) | (4,518 | ) | (4,747 | ) | (4,992 | ) | (5,235 | ) | |||||||||||||||
Related deferred tax liabilities | 1,922 | 2,132 | 1,885 | 1,959 | 2,019 | 2,077 | 2,100 | ||||||||||||||||||||||
Tangible common shareholders' equity | $ | 154,812 | $ | 149,657 | $ | 156,583 | $ | 153,022 | $ | 151,969 | $ | 149,667 | $ | 149,264 | |||||||||||||||
Reconciliation of average shareholders' equity to average tangible shareholders' equity | |||||||||||||||||||||||||||||
Shareholders' equity | $ | 248,413 | $ | 236,179 | $ | 251,054 | $ | 245,744 | $ | 243,454 | $ | 238,040 | $ | 235,803 | |||||||||||||||
Goodwill | (69,776 | ) | (69,832 | ) | (69,775 | ) | (69,776 | ) | (69,782 | ) | (69,792 | ) | (69,822 | ) | |||||||||||||||
Intangible assets (excluding mortgage servicing rights) | (4,412 | ) | (5,354 | ) | (4,307 | ) | (4,518 | ) | (4,747 | ) | (4,992 | ) | (5,235 | ) | |||||||||||||||
Related deferred tax liabilities | 1,922 | 2,132 | 1,885 | 1,959 | 2,019 | 2,077 | 2,100 | ||||||||||||||||||||||
Tangible shareholders' equity | $ | 176,147 | $ | 163,125 | $ | 178,857 | $ | 173,409 | $ | 170,944 | $ | 165,333 | $ | 162,846 | |||||||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 45 |
Exhibit A: Non-GAAP Reconciliations (continued) | |||||||||||||||||||||||||||||
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Reconciliations to GAAP Financial Measures | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
Reconciliation of period-end common shareholders' equity to period-end tangible common shareholders' equity | |||||||||||||||||||||||||||||
Common shareholders' equity | $ | 229,386 | $ | 222,565 | $ | 229,386 | $ | 227,915 | $ | 224,162 | $ | 220,768 | $ | 222,565 | |||||||||||||||
Goodwill | (69,775 | ) | (69,810 | ) | (69,775 | ) | (69,776 | ) | (69,777 | ) | (69,784 | ) | (69,810 | ) | |||||||||||||||
Intangible assets (excluding mortgage servicing rights) | (4,188 | ) | (5,099 | ) | (4,188 | ) | (4,391 | ) | (4,612 | ) | (4,849 | ) | (5,099 | ) | |||||||||||||||
Related deferred tax liabilities | 1,813 | 2,078 | 1,813 | 1,900 | 1,960 | 2,019 | 2,078 | ||||||||||||||||||||||
Tangible common shareholders' equity | $ | 157,236 | $ | 149,734 | $ | 157,236 | $ | 155,648 | $ | 151,733 | $ | 148,154 | $ | 149,734 | |||||||||||||||
Reconciliation of period-end shareholders' equity to period-end tangible shareholders' equity | |||||||||||||||||||||||||||||
Shareholders' equity | $ | 251,659 | $ | 237,411 | $ | 251,659 | $ | 250,188 | $ | 243,471 | $ | 238,681 | $ | 237,411 | |||||||||||||||
Goodwill | (69,775 | ) | (69,810 | ) | (69,775 | ) | (69,776 | ) | (69,777 | ) | (69,784 | ) | (69,810 | ) | |||||||||||||||
Intangible assets (excluding mortgage servicing rights) | (4,188 | ) | (5,099 | ) | (4,188 | ) | (4,391 | ) | (4,612 | ) | (4,849 | ) | (5,099 | ) | |||||||||||||||
Related deferred tax liabilities | 1,813 | 2,078 | 1,813 | 1,900 | 1,960 | 2,019 | 2,078 | ||||||||||||||||||||||
Tangible shareholders' equity | $ | 179,509 | $ | 164,580 | $ | 179,509 | $ | 177,921 | $ | 171,042 | $ | 166,067 | $ | 164,580 | |||||||||||||||
Reconciliation of period-end assets to period-end tangible assets | |||||||||||||||||||||||||||||
Assets | $ | 2,149,034 | $ | 2,170,557 | $ | 2,149,034 | $ | 2,143,545 | $ | 2,104,534 | $ | 2,123,613 | $ | 2,170,557 | |||||||||||||||
Goodwill | (69,775 | ) | (69,810 | ) | (69,775 | ) | (69,776 | ) | (69,777 | ) | (69,784 | ) | (69,810 | ) | |||||||||||||||
Intangible assets (excluding mortgage servicing rights) | (4,188 | ) | (5,099 | ) | (4,188 | ) | (4,391 | ) | (4,612 | ) | (4,849 | ) | (5,099 | ) | |||||||||||||||
Related deferred tax liabilities | 1,813 | 2,078 | 1,813 | 1,900 | 1,960 | 2,019 | 2,078 | ||||||||||||||||||||||
Tangible assets | $ | 2,076,884 | $ | 2,097,726 | $ | 2,076,884 | $ | 2,071,278 | $ | 2,032,105 | $ | 2,050,999 | $ | 2,097,726 | |||||||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 46 |
Exhibit A: Non-GAAP Reconciliations (continued) | |||||||||||||||||||||||||||||
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Reconciliations to GAAP Financial Measures | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Fourth Quarter 2014 | Third Quarter 2014 | Second Quarter 2014 | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
Reconciliation of return on average allocated capital (1) | |||||||||||||||||||||||||||||
Consumer Banking | |||||||||||||||||||||||||||||
Reported net income | $ | 3,179 | $ | 3,102 | $ | 1,704 | $ | 1,475 | $ | 1,662 | $ | 1,678 | $ | 1,634 | |||||||||||||||
Adjustment related to intangibles (2) | 2 | 2 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||
Adjusted net income | $ | 3,181 | $ | 3,104 | $ | 1,705 | $ | 1,476 | $ | 1,663 | $ | 1,679 | $ | 1,635 | |||||||||||||||
Average allocated equity (3) | $ | 59,339 | $ | 60,410 | $ | 59,330 | $ | 59,348 | $ | 60,367 | $ | 60,386 | $ | 60,403 | |||||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (30,339 | ) | (30,410 | ) | (30,330 | ) | (30,348 | ) | (30,367 | ) | (30,386 | ) | (30,403 | ) | |||||||||||||||
Average allocated capital | $ | 29,000 | $ | 30,000 | $ | 29,000 | $ | 29,000 | $ | 30,000 | $ | 30,000 | $ | 30,000 | |||||||||||||||
Global Wealth & Investment Management | |||||||||||||||||||||||||||||
Reported net income | $ | 1,341 | $ | 1,455 | $ | 690 | $ | 651 | $ | 706 | $ | 813 | $ | 726 | |||||||||||||||
Adjustment related to intangibles (2) | 6 | 7 | 3 | 3 | 3 | 3 | 3 | ||||||||||||||||||||||
Adjusted net income | $ | 1,347 | $ | 1,462 | $ | 693 | $ | 654 | $ | 709 | $ | 816 | $ | 729 | |||||||||||||||
Average allocated equity (3) | $ | 22,137 | $ | 22,233 | $ | 22,106 | $ | 22,168 | $ | 22,186 | $ | 22,204 | $ | 22,222 | |||||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (10,137 | ) | (10,233 | ) | (10,106 | ) | (10,168 | ) | (10,186 | ) | (10,204 | ) | (10,222 | ) | |||||||||||||||
Average allocated capital | $ | 12,000 | $ | 12,000 | $ | 12,000 | $ | 12,000 | $ | 12,000 | $ | 12,000 | $ | 12,000 | |||||||||||||||
Global Banking | |||||||||||||||||||||||||||||
Reported net income | $ | 2,617 | $ | 2,738 | $ | 1,251 | $ | 1,366 | $ | 1,513 | $ | 1,513 | $ | 1,445 | |||||||||||||||
Adjustment related to intangibles (2) | — | 1 | — | — | — | — | — | ||||||||||||||||||||||
Adjusted net income | $ | 2,617 | $ | 2,739 | $ | 1,251 | $ | 1,366 | $ | 1,513 | $ | 1,513 | $ | 1,445 | |||||||||||||||
Average allocated equity (3) | $ | 58,936 | $ | 57,449 | $ | 58,952 | $ | 58,920 | $ | 57,437 | $ | 57,440 | $ | 57,447 | |||||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (23,936 | ) | (23,949 | ) | (23,952 | ) | (23,920 | ) | (23,937 | ) | (23,940 | ) | (23,947 | ) | |||||||||||||||
Average allocated capital | $ | 35,000 | $ | 33,500 | $ | 35,000 | $ | 35,000 | $ | 33,500 | $ | 33,500 | $ | 33,500 | |||||||||||||||
Global Markets | |||||||||||||||||||||||||||||
Reported net income (loss) | $ | 1,938 | $ | 2,412 | $ | 993 | $ | 945 | $ | (74 | ) | $ | 372 | $ | 1,102 | ||||||||||||||
Adjustment related to intangibles (2) | 4 | 5 | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||
Adjusted net income (loss) | $ | 1,942 | $ | 2,417 | $ | 995 | $ | 947 | $ | (72 | ) | $ | 374 | $ | 1,104 | ||||||||||||||
Average allocated equity (3) | $ | 40,424 | $ | 39,380 | $ | 40,458 | $ | 40,389 | $ | 39,378 | $ | 39,383 | $ | 39,380 | |||||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (5,424 | ) | (5,380 | ) | (5,458 | ) | (5,389 | ) | (5,378 | ) | (5,383 | ) | (5,380 | ) | |||||||||||||||
Average allocated capital | $ | 35,000 | $ | 34,000 | $ | 35,000 | $ | 35,000 | $ | 34,000 | $ | 34,000 | $ | 34,000 | |||||||||||||||
For footnotes see page 48.
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 47 |
Exhibit A: Non-GAAP Reconciliations (continued) | |||||||||||||||||||||
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||
Reconciliations to GAAP Financial Measures | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||
Six Months Ended June 30 | Second Quarter 2015 | First Quarter 2015 | Second Quarter 2014 | ||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Consumer Banking | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Reported net income | $ | 1,264 | $ | 1,193 | $ | 726 | $ | 538 | $ | 632 | |||||||||||
Adjustment related to intangibles (2) | — | — | — | — | — | ||||||||||||||||
Adjusted net income | $ | 1,264 | $ | 1,193 | $ | 726 | $ | 538 | $ | 632 | |||||||||||
Average allocated equity (3) | $ | 30,423 | $ | 29,426 | $ | 30,423 | $ | 30,424 | $ | 29,428 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (18,423 | ) | (18,426 | ) | (18,423 | ) | (18,424 | ) | (18,428 | ) | |||||||||||
Average allocated capital | $ | 12,000 | $ | 11,000 | $ | 12,000 | $ | 12,000 | $ | 11,000 | |||||||||||
Consumer Lending | |||||||||||||||||||||
Reported net income | $ | 1,915 | $ | 1,909 | $ | 978 | $ | 937 | $ | 1,002 | |||||||||||
Adjustment related to intangibles (2) | 2 | 2 | 1 | 1 | 1 | ||||||||||||||||
Adjusted net income | $ | 1,917 | $ | 1,911 | $ | 979 | $ | 938 | $ | 1,003 | |||||||||||
Average allocated equity (3) | $ | 28,915 | $ | 30,984 | $ | 28,907 | $ | 28,923 | $ | 30,975 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (11,915 | ) | (11,984 | ) | (11,907 | ) | (11,923 | ) | (11,975 | ) | |||||||||||
Average allocated capital | $ | 17,000 | $ | 19,000 | $ | 17,000 | $ | 17,000 | $ | 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 information is preliminary and based on company data available at the time of the presentation. | 48 |