Exhibit 12
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||
Ratio of Earnings to Fixed Charges | |||||||||||||||||||||||||
Ratio of Earnings to Fixed Charges and Preferred Dividends | |||||||||||||||||||||||||
Six Months Ended | Year Ended December 31 | ||||||||||||||||||||||||
(Dollars in millions) | June 30, 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
Excluding Interest on Deposits | |||||||||||||||||||||||||
Income before income taxes | $ | 8,184 | $ | 4,360 | $ | 4,428 | $ | 20,924 | $ | 31,973 | $ | 24,480 | |||||||||||||
Equity in undistributed earnings of unconsolidated subsidiaries | (458 | ) | (1,833 | ) | (144 | ) | (95 | ) | (315 | ) | (151 | ) | |||||||||||||
Fixed charges: | |||||||||||||||||||||||||
Interest expense | 10,208 | 23,000 | 25,074 | 34,778 | 29,514 | 18,397 | |||||||||||||||||||
1/3 of net rent expense(1) | 555 | 1,110 | 791 | 669 | 609 | 585 | |||||||||||||||||||
Total fixed charges | 10,763 | 24,110 | 25,865 | 35,447 | 30,123 | 18,982 | |||||||||||||||||||
Preferred dividend requirements | 893 | 5,921 | 1,461 | 254 | 33 | 27 | |||||||||||||||||||
Fixed charges and preferred dividends | 11,656 | 30,031 | 27,326 | 35,701 | 30,156 | 19,009 | |||||||||||||||||||
Earnings | $ | 18,489 | $ | 26,637 | $ | 30,149 | $ | 56,276 | $ | 61,781 | $ | 43,311 | |||||||||||||
Ratio of earnings to fixed charges | 1.72 | 1.10 | 1.17 | 1.59 | 2.05 | 2.28 | |||||||||||||||||||
Ratio of earnings to fixed charges and preferred dividends(2) | 1.59 | - | 1.10 | 1.58 | 2.05 | 2.28 | |||||||||||||||||||
Six Months Ended | Year Ended December 31 | ||||||||||||||||||||||||
(Dollars in millions) | June 30, 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
Including Interest on Deposits | |||||||||||||||||||||||||
Income before income taxes | $ | 8,184 | $ | 4,360 | $ | 4,428 | $ | 20,924 | $ | 31,973 | $ | 24,480 | |||||||||||||
Equity in undistributed earnings of unconsolidated subsidiaries | (458 | ) | (1,833 | ) | (144 | ) | (95 | ) | (315 | ) | (151 | ) | |||||||||||||
Fixed charges: | |||||||||||||||||||||||||
Interest expense | 12,361 | 30,807 | 40,324 | 52,871 | 43,994 | 27,889 | |||||||||||||||||||
1/3 of net rent expense(1) | 555 | 1,110 | 791 | 669 | 609 | 585 | |||||||||||||||||||
Total fixed charges | 12,916 | 31,917 | 41,115 | 53,540 | 44,603 | 28,474 | |||||||||||||||||||
Preferred dividend requirements | 893 | 5,921 | 1,461 | 254 | 33 | 27 | |||||||||||||||||||
Fixed charges and preferred dividends | 13,809 | 37,838 | 42,576 | 53,794 | 44,636 | 28,501 | |||||||||||||||||||
Earnings | $ | 20,642 | $ | 34,444 | $ | 45,399 | $ | 74,369 | $ | 76,261 | $ | 52,803 | |||||||||||||
Ratio of earnings to fixed charges | 1.60 | 1.08 | 1.10 | 1.39 | 1.71 | 1.85 | |||||||||||||||||||
Ratio of earnings to fixed charges and preferred dividends(2) | 1.49 | - | 1.07 | 1.38 | 1.71 | 1.85 | |||||||||||||||||||
(1) | Represents an appropriate interest factor. | |
(2) | The earnings for 2009 were inadequate to cover fixed charges and preferred stock dividends. The earnings deficiency is a result of the accelerated accretion of $4.0 billion recorded as a result of the repurchase of TARP Preferred Stock. The coverage deficiency for fixed charges and preferred dividends was $3.4 billion. |