Exhibit 99.3
Supplemental Information
First Quarter 2011
This information is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this information are subject to the forward-looking language contained in Bank of America’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC’s website (www.sec.gov) or at Bank of America’s website (www.bankofamerica.com). Bank of America’s future financial performance is subject to risks and uncertainties as described in its SEC filings.
Bank of America Corporation and Subsidiaries | ||||
Table of Contents | Page | |||
Consolidated Financial Highlights | 2 | |||
Supplemental Financial Data | 3 | |||
Consolidated Statement of Income | 4 | |||
Consolidated Balance Sheet | 5,6 | |||
Capital Management | 7 | |||
Core Net Interest Income | 8 | |||
Quarterly Average Balances and Interest Rates | 9,10 | |||
Quarterly Average Balances and Interest Rates - Isolating Hedge Income/Expense | 11,12 | |||
Debt Securities and Available-for-Sale Marketable Equity Securities | 13 | |||
Quarterly Results by Business Segment | 14 | |||
Deposits | ||||
Total Segment Results | 15 | |||
Key Indicators | 16 | |||
Global Card Services | ||||
Total Segment Results | 17 | |||
Key Indicators | 18 | |||
Consumer Real Estate Services | ||||
Total Segment Results | 19 | |||
Quarter-to-Date Results | 20 | |||
Key Indicators | 21 | |||
Global Commercial Banking | ||||
Total Segment Results | 22 | |||
Key Indicators | 23 | |||
Global Banking & Markets | ||||
Total Segment Results | 24 | |||
Key Indicators | 25 | |||
Super Senior Collateralized Debt Obligation Exposure | 26 | |||
Investment Banking Product Rankings | 27 | |||
Global Wealth & Investment Management | ||||
Total Segment Results | 28 | |||
Key Indicators | 29 | |||
All Other | ||||
Total Segment Results | 30 | |||
Equity Investments | 31 | |||
Outstanding Loans and Leases | 32 | |||
Quarterly Average Loans and Leases by Business Segment | 33 | |||
Commercial Credit Exposure by Industry | 34 | |||
Net Credit Default Protection by Maturity Profile and Credit Exposure Debt Rating | 35 | |||
Selected Emerging Markets | 36 | |||
Nonperforming Loans, Leases and Foreclosed Properties | 37 | |||
Nonperforming Loans, Leases and Foreclosed Properties Activity | 38 | |||
Quarterly Net Charge-offs and Net Charge-off Ratios | 39 | |||
Allocation of the Allowance for Credit Losses by Product Type | 40 | |||
Exhibit A: Non-GAAP Reconciliations | 41,42 | |||
Appendix: Selected Slides from the First Quarter 2011 Earnings Release Presentation | 43 |
1
Bank of America Corporation and Subsidiaries
Consolidated Financial Highlights
(Dollars in millions, except per share information; shares in thousands)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | $ | 12,179 | $ | 12,439 | $ | 12,435 | $ | 12,900 | $ | 13,749 | ||||||||||
Noninterest income | 14,698 | 9,959 | 14,265 | 16,253 | 18,220 | |||||||||||||||
Total revenue, net of interest expense | 26,877 | 22,398 | 26,700 | 29,153 | 31,969 | |||||||||||||||
Provision for credit losses | 3,814 | 5,129 | 5,396 | 8,105 | 9,805 | |||||||||||||||
Goodwill impairment | — | 2,000 | 10,400 | — | — | |||||||||||||||
Merger and restructuring charges | 202 | 370 | 421 | 508 | 521 | |||||||||||||||
All other noninterest expense(1) | 20,081 | 18,494 | 16,395 | 16,745 | 17,254 | |||||||||||||||
Income tax expense (benefit) | 731 | (2,351 | ) | 1,387 | 672 | 1,207 | ||||||||||||||
Net income (loss) | 2,049 | (1,244 | ) | (7,299 | ) | 3,123 | 3,182 | |||||||||||||
Preferred stock dividends | 310 | 321 | 348 | 340 | 348 | |||||||||||||||
Net income (loss) applicable to common shareholders | 1,739 | (1,565 | ) | (7,647 | ) | 2,783 | 2,834 | |||||||||||||
Diluted earnings (loss) per common share(2) | 0.17 | (0.16 | ) | (0.77 | ) | 0.27 | 0.28 | |||||||||||||
Average diluted common shares issued and outstanding(2) | 10,181,351 | 10,036,575 | 9,976,351 | 10,029,776 | 10,005,254 | |||||||||||||||
Dividends paid per common share | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | ||||||||||
Performance ratios | ||||||||||||||||||||
Return on average assets | 0.36 | % | n/m | n/m | 0.50 | % | 0.51 | % | ||||||||||||
Return on average common shareholders’ equity | 3.29 | n/m | n/m | 5.18 | 5.73 | |||||||||||||||
Return on average tangible common shareholders’ equity(3) | 5.28 | n/m | n/m | 9.19 | 9.79 | |||||||||||||||
Return on average tangible shareholders’ equity(3) | 5.54 | n/m | n/m | 8.98 | 9.55 | |||||||||||||||
At period end | ||||||||||||||||||||
Book value per share of common stock | $ | 21.15 | $ | 20.99 | $ | 21.17 | $ | 21.45 | $ | 21.12 | ||||||||||
Tangible book value per share of common stock(3) | 13.21 | 12.98 | 12.91 | 12.14 | 11.70 | |||||||||||||||
Market price per share of common stock: | ||||||||||||||||||||
Closing price | $ | 13.33 | $ | 13.34 | $ | 13.10 | $ | 14.37 | $ | 17.85 | ||||||||||
High closing price for the period | 15.25 | 13.56 | 15.67 | 19.48 | 18.04 | |||||||||||||||
Low closing price for the period | 13.33 | 10.95 | 12.32 | 14.37 | 14.45 | |||||||||||||||
Market capitalization | 135,057 | 134,536 | 131,442 | 144,174 | 179,071 | |||||||||||||||
Number of banking centers - U.S. | 5,805 | 5,856 | 5,879 | 5,900 | 5,939 | |||||||||||||||
Number of branded ATMs - U.S. | 17,886 | 17,931 | 17,929 | 18,078 | 18,135 | |||||||||||||||
Full-time equivalent employees | 288,062 | 288,471 | 287,293 | 284,628 | 284,638 |
(1) | Excludes merger and restructuring charges and goodwill impairment charge. |
(2) | Due to a net loss applicable to common shareholders for the fourth and third quarters of 2010, no dilutive potential common shares were included in the calculations of diluted earnings per share and average diluted common shares because they were antidilutive. |
(3) | Tangible equity ratios and tangible book value per share of common stock are non-GAAP measures. We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 41-42.) |
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, except per share information)
Fully taxable-equivalent basis data(1)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||||
Net interest income | $ | 12,397 | $ | 12,709 | $ | 12,717 | $ | 13,197 | $ | 14,070 | ||||||||||||||||||||||||||||||
Total revenue, net of interest expense | 27,095 | 22,668 | 26,982 | 29,450 | 32,290 | |||||||||||||||||||||||||||||||||||
Net interest yield(2) | 2.67 | % | 2.69 | % | 2.72 | % | 2.77 | % | 2.93 | % | ||||||||||||||||||||||||||||||
Efficiency ratio | 74.86 | 92.04 | 100.87 | 58.58 | 55.05 |
Performance ratios, excluding goodwill impairment charges(3)
Fourth Quarter 2010 | Third Quarter 2010 | |||||||||||||||
Per common share information | ||||||||||||||||
Earnings | $ | 0.04 | $ | 0.27 | ||||||||||||
Diluted earnings | 0.04 | 0.27 | ||||||||||||||
Efficiency ratio(1) | 83.22 | % | 62.33 | % | ||||||||||||
Return on average assets | 0.13 | 0.52 | ||||||||||||||
Return on average common shareholders’ equity | 0.79 | 5.06 | ||||||||||||||
Return on average tangible common shareholders’ equity(3) | 1.27 | 8.67 | ||||||||||||||
Return on average tangible shareholders’ equity(3) | 1.96 | 8.54 |
(1) | Fully taxable-equivalent basis is a non-GAAP measure. Fully taxable-equivalent 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 41-42). |
(2) | Calculation includes fees earned on overnight deposits placed with the Federal Reserve of $63 million for the first quarter of 2011, and $63 million, $107 million, $106 million and $92 million for the fourth, third, second and first quarters of 2010, respectively. For more information see Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis on pages 9-10. |
(3) | Total noninterest expense, excluding goodwill impairment charges, net income, excluding goodwill impairment charges and net income applicable to common shareholders, excluding goodwill impairment charges and tangible equity ratios are non-GAAP measures. We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation.(See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 41-42). |
Certain | prior period amounts have been reclassified to conform to current period presentation. |
This information is preliminary and based on company data available at the time of the presentation. | 3 |
Bank of America Corporation and Subsidiaries
Consolidated Statement of Income
(Dollars in millions, except per share information; shares in thousands)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||
Interest income | ||||||||||||||||||||
Loans and leases | $ | 11,929 | $ | 12,149 | $ | 12,485 | $ | 12,887 | $ | 13,475 | ||||||||||
Debt securities | 2,882 | 3,029 | 2,605 | 2,917 | 3,116 | |||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 517 | 486 | 441 | 457 | 448 | |||||||||||||||
Trading account assets | 1,626 | 1,661 | 1,641 | 1,796 | 1,743 | |||||||||||||||
Other interest income | 968 | 965 | 1,037 | 1,062 | 1,097 | |||||||||||||||
Total interest income | 17,922 | 18,290 | 18,209 | 19,119 | 19,879 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 839 | 894 | 950 | 1,031 | 1,122 | |||||||||||||||
Short-term borrowings | 1,184 | 1,142 | 848 | 891 | 818 | |||||||||||||||
Trading account liabilities | 627 | 561 | 635 | 715 | 660 | |||||||||||||||
Long-term debt | 3,093 | 3,254 | 3,341 | 3,582 | 3,530 | |||||||||||||||
Total interest expense | 5,743 | 5,851 | 5,774 | 6,219 | 6,130 | |||||||||||||||
Net interest income | 12,179 | 12,439 | 12,435 | 12,900 | 13,749 | |||||||||||||||
Noninterest income | ||||||||||||||||||||
Card income | 1,828 | 2,127 | 1,982 | 2,023 | 1,976 | |||||||||||||||
Service charges | 2,032 | 2,036 | 2,212 | 2,576 | 2,566 | |||||||||||||||
Investment and brokerage services | 3,101 | 2,879 | 2,724 | 2,994 | 3,025 | |||||||||||||||
Investment banking income | 1,578 | 1,590 | 1,371 | 1,319 | 1,240 | |||||||||||||||
Equity investment income | 1,475 | 1,512 | 357 | 2,766 | 625 | |||||||||||||||
Trading account profits | 2,722 | 995 | 2,596 | 1,227 | 5,236 | |||||||||||||||
Mortgage banking income (loss) | 630 | (1,419 | ) | 1,755 | 898 | 1,500 | ||||||||||||||
Insurance income | 613 | 598 | 75 | 678 | 715 | |||||||||||||||
Gains on sales of debt securities | 546 | 872 | 883 | 37 | 734 | |||||||||||||||
Other income (loss) | 261 | (1,114 | ) | 433 | 1,861 | 1,204 | ||||||||||||||
Other-than-temporary impairment losses on available-for-sale debt securities: | ||||||||||||||||||||
Total other-than-temporary impairment losses | (111 | ) | (612 | ) | (156 | ) | (462 | ) | (1,819 | ) | ||||||||||
Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income | 23 | 495 | 33 | 336 | 1,218 | |||||||||||||||
Net impairment losses recognized in earnings on available-for-sale debt securities | (88 | ) | (117 | ) | (123 | ) | (126 | ) | (601 | ) | ||||||||||
Total noninterest income | 14,698 | 9,959 | 14,265 | 16,253 | 18,220 | |||||||||||||||
Total revenue, net of interest expense | 26,877 | 22,398 | 26,700 | 29,153 | 31,969 | |||||||||||||||
Provision for credit losses | 3,814 | 5,129 | 5,396 | 8,105 | 9,805 | |||||||||||||||
Noninterest expense | ||||||||||||||||||||
Personnel | 10,168 | 8,800 | 8,402 | 8,789 | 9,158 | |||||||||||||||
Occupancy | 1,189 | 1,212 | 1,150 | 1,182 | 1,172 | |||||||||||||||
Equipment | 606 | 607 | 619 | 613 | 613 | |||||||||||||||
Marketing | 564 | 484 | 497 | 495 | 487 | |||||||||||||||
Professional fees | 646 | 883 | 651 | 644 | 517 | |||||||||||||||
Amortization of intangibles | 385 | 420 | 426 | 439 | 446 | |||||||||||||||
Data processing | 695 | 662 | 602 | 632 | 648 | |||||||||||||||
Telecommunications | 371 | 366 | 361 | 359 | 330 | |||||||||||||||
Other general operating | 5,457 | 5,060 | 3,687 | 3,592 | 3,883 | |||||||||||||||
Goodwill impairment | — | 2,000 | 10,400 | — | — | |||||||||||||||
Merger and restructuring charges | 202 | 370 | 421 | 508 | 521 | |||||||||||||||
Total noninterest expense | 20,283 | 20,864 | 27,216 | 17,253 | 17,775 | |||||||||||||||
Income (loss) before income taxes | 2,780 | (3,595 | ) | (5,912 | ) | 3,795 | 4,389 | |||||||||||||
Income tax expense (benefit) | 731 | (2,351 | ) | 1,387 | 672 | 1,207 | ||||||||||||||
Net income (loss) | $ | 2,049 | $ | (1,244 | ) | $ | (7,299 | ) | $ | 3,123 | $ | 3,182 | ||||||||
Preferred stock dividends | 310 | 321 | 348 | 340 | 348 | |||||||||||||||
Net income (loss) applicable to common shareholders | $ | 1,739 | $ | (1,565 | ) | $ | (7,647 | ) | $ | 2,783 | $ | 2,834 | ||||||||
Per common share information | ||||||||||||||||||||
Earnings (loss) | $ | 0.17 | $ | (0.16 | ) | $ | (0.77 | ) | $ | 0.28 | $ | 0.28 | ||||||||
Diluted earnings (loss)(1) | 0.17 | (0.16 | ) | (0.77 | ) | 0.27 | 0.28 | |||||||||||||
Dividends paid | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | |||||||||||||||
Average common shares issued and outstanding | 10,075,875 | 10,036,575 | 9,976,351 | 9,956,773 | 9,177,468 | |||||||||||||||
Average diluted common shares issued and outstanding(1) | 10,181,351 | 10,036,575 | 9,976,351 | 10,029,776 | 10,005,254 | |||||||||||||||
(1) | Due to a net loss applicable to common shareholders for the fourth and third quarters of 2010, the impact of antidilutive equity instruments was excluded from diluted earnings per share and average diluted common shares. |
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 Balance Sheet
(Dollars in millions)
March 31 2011 | December 31 2010 | March 31 2010 | ||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 97,542 | $ | 108,427 | $ | 144,794 | ||||||
Time deposits placed and other short-term investments | 23,707 | 26,433 | 20,256 | |||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 234,056 | 209,616 | 197,038 | |||||||||
Trading account assets | 208,761 | 194,671 | 206,018 | |||||||||
Derivative assets | 65,334 | 73,000 | 83,511 | |||||||||
Debt securities: | ||||||||||||
Available-for-sale | 330,345 | 337,627 | 316,020 | |||||||||
Held-to-maturity, at cost | 431 | 427 | 340 | |||||||||
Total debt securities | 330,776 | 338,054 | 316,360 | |||||||||
Loans and leases | 932,425 | 940,440 | 976,042 | |||||||||
Allowance for loan and lease losses | (39,843 | ) | (41,885 | ) | (46,835 | ) | ||||||
Loans and leases, net of allowance | 892,582 | 898,555 | 929,207 | |||||||||
Premises and equipment, net | 14,151 | 14,306 | 15,147 | |||||||||
Mortgage servicing rights (includes$15,282, $14,900 and $18,842 measured at fair value) | 15,560 | 15,177 | 19,146 | |||||||||
Goodwill | 73,869 | 73,861 | 86,305 | |||||||||
Intangible assets | 9,560 | 9,923 | 11,548 | |||||||||
Loans held-for-sale | 25,003 | 35,058 | 35,386 | |||||||||
Customer and other receivables | 97,318 | 85,704 | 83,636 | |||||||||
Other assets | 186,313 | 182,124 | 196,282 | |||||||||
Total assets | $ | 2,274,532 | $ | 2,264,909 | $ | 2,344,634 | ||||||
Assets of consolidated VIEs included in total assets above (substantially all pledged as collateral) | ||||||||||||
Trading account assets | $ | 12,012 | $ | 19,627 | $ | 11,826 | ||||||
Derivative assets | 2,280 | 2,027 | 4,194 | |||||||||
Available-for-sale debt securities | 2,104 | 2,601 | 12,074 | |||||||||
Loans and leases | 146,309 | 145,469 | 129,432 | |||||||||
Allowance for loan and lease losses | (8,335 | ) | (8,935 | ) | (11,140 | ) | ||||||
Loans and leases, net of allowance | 137,974 | 136,534 | 118,292 | |||||||||
Loans held-for-sale | 1,605 | 1,953 | 5,471 | |||||||||
All other assets | 4,883 | 7,086 | 9,637 | |||||||||
Total assets of consolidated VIEs | $ | 160,858 | $ | 169,828 | $ | 161,494 |
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 (continued)
(Dollars in millions)
March 31 2011 | December 31 2010 | March 31 2010 | ||||||||||
Liabilities | ||||||||||||
Deposits in U.S. offices: | ||||||||||||
Noninterest-bearing | $ | 286,357 | $ | 285,200 | $ | 255,470 | ||||||
Interest-bearing | 652,096 | 645,713 | 643,943 | |||||||||
Deposits in non-U.S. offices: | ||||||||||||
Noninterest-bearing | 7,894 | 6,101 | 5,614 | |||||||||
Interest-bearing | 73,828 | 73,416 | 71,075 | |||||||||
Total deposits | 1,020,175 | 1,010,430 | 976,102 | |||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 260,521 | 245,359 | 270,601 | |||||||||
Trading account liabilities | 88,478 | 71,985 | 82,532 | |||||||||
Derivative liabilities | 53,501 | 55,914 | 52,861 | |||||||||
Commercial paper and other short-term borrowings | 58,324 | 59,962 | 85,406 | |||||||||
Accrued expenses and other liabilities (includes$961, $1,188 and $1,521 of reserve for unfunded lending commitments) | 128,221 | 144,580 | 135,656 | |||||||||
Long-term debt | 434,436 | 448,431 | 511,653 | |||||||||
Total liabilities | 2,043,656 | 2,036,661 | 2,114,811 | |||||||||
Shareholders’ equity | ||||||||||||
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding -3,943,660, 3,943,660 and 3,960,660 shares | 16,562 | 16,562 | 17,964 | |||||||||
Common stock and additional paid-in capital, $0.01 par value; authorized - 12,800,000,000, 12,800,000,000 and 11,300,000,000 shares; issued and outstanding - 10,131,803,417, 10,085,154,806 and 10,032,001,150 shares | 151,379 | 150,905 | 149,048 | |||||||||
Retained earnings | 62,483 | 60,849 | 67,811 | |||||||||
Accumulated other comprehensive income (loss) | 463 | (66 | ) | (4,929 | ) | |||||||
Other | (11 | ) | (2 | ) | (71 | ) | ||||||
Total shareholders’ equity | 230,876 | 228,248 | 229,823 | |||||||||
Total liabilities and shareholders’ equity | $ | 2,274,532 | $ | 2,264,909 | $ | 2,344,634 | ||||||
Liabilities of consolidated VIEs included in total liabilities above | ||||||||||||
Commercial paper and other short-term borrowings | $ | 6,954 | $ | 6,742 | $ | 21,631 | ||||||
Long-term debt | 65,197 | 71,013 | 90,329 | |||||||||
All other liabilities | 1,240 | 9,141 | 5,135 | |||||||||
Total liabilities of consolidated VIEs | $ | 73,391 | $ | 86,896 | $ | 117,095 |
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
Capital Management
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||
Risk-based capital(1): | ||||||||||||||||||||||||||||||
Tier 1 common | $ | 123,882 | $ | 125,139 | $ | 124,756 | $ | 119,716 | $ | 115,520 | ||||||||||||||||||||
Tier 1 capital | 162,295 | 163,626 | 164,763 | 159,551 | 155,428 | |||||||||||||||||||||||||
Total capital | 229,094 | 229,594 | 231,120 | 220,827 | 219,913 | |||||||||||||||||||||||||
Risk-weighted assets | 1,433,377 | 1,455,951 | 1,476,774 | 1,494,990 | 1,519,723 | |||||||||||||||||||||||||
Tier 1 common equity ratio(2) | 8.64 | % | 8.60 | % | 8.45 | % | 8.01 | % | 7.60 | % | ||||||||||||||||||||
Tier 1 capital ratio | 11.32 | 11.24 | 11.16 | 10.67 | 10.23 | |||||||||||||||||||||||||
Total capital ratio | 15.98 | 15.77 | 15.65 | 14.77 | 14.47 | |||||||||||||||||||||||||
Tier 1 leverage ratio | 7.25 | 7.21 | 7.21 | 6.68 | 6.44 | |||||||||||||||||||||||||
Tangible equity ratio(3) | 6.85 | 6.75 | 6.54 | 6.14 | 6.02 | |||||||||||||||||||||||||
Tangible common equity ratio(3) | 6.10 | 5.99 | 5.74 | 5.35 | 5.22 |
(1) | Reflects preliminary data for current period risk-based capital. |
(2) | Tier 1 common equity ratio equals Tier 1 capital excluding preferred stock, trust preferred securities, hybrid securities and minority interest divided by risk-weighted assets. |
(3) | Tangible equity ratio equals period end tangible shareholders’ equity divided by period end tangible assets. Tangible common equity equals period end tangible common shareholders’ equity divided by period end tangible assets. Tangible shareholders’ equity and tangible assets are non-GAAP measures. We believe the use of these non-GAAP measures provide additional clarity in assessing the results of the Corporation. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on pages 41-42). |
* | Preliminary data on risk-based capital |
Outstanding Common Stock
No common shares were repurchased in the first quarter of 2011.
There is no existing Board authorized share repurchase program.
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
Core Net Interest Income
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||||
Net interest income(1) | ||||||||||||||||||||||||||||||||||||||||
As reported (2) | $ | 12,397 | $ | 12,709 | $ | 12,717 | $ | 13,197 | $ | 14,070 | ||||||||||||||||||||||||||||||
Impact of market-based net interest income(3) | (1,051 | ) | (1,150 | ) | (1,045 | ) | (1,049 | ) | (1,186 | ) | ||||||||||||||||||||||||||||||
Core net interest income | $ | 11,346 | $ | 11,559 | $ | 11,672 | $ | 12,148 | $ | 12,884 | ||||||||||||||||||||||||||||||
Average earning assets | ||||||||||||||||||||||||||||||||||||||||
As reported | $ | 1,869,863 | $ | 1,883,539 | $ | 1,863,819 | $ | 1,910,790 | $ | 1,933,060 | ||||||||||||||||||||||||||||||
Impact of market-based earning assets(3) | (467,042 | ) | (475,021 | ) | (494,772 | ) | (521,010 | ) | (527,316 | ) | ||||||||||||||||||||||||||||||
Core average earning assets | $ | 1,402,821 | $ | 1,408,518 | $ | 1,369,047 | $ | 1,389,780 | $ | 1,405,744 | ||||||||||||||||||||||||||||||
Net interest yield contribution(1, 4) | ||||||||||||||||||||||||||||||||||||||||
As reported (2) | 2.67 | % | 2.69 | % | 2.72 | % | 2.77 | % | 2.93 | % | ||||||||||||||||||||||||||||||
Impact of market-based activities(3) | 0.59 | 0.58 | 0.67 | 0.73 | 0.76 | |||||||||||||||||||||||||||||||||||
Core net interest yield on earning assets | 3.26 | % | 3.27 | % | 3.39 | % | 3.50 | % | 3.69 | % | ||||||||||||||||||||||||||||||
(1) | Fully taxable-equivalent basis |
(2) | Balance and calculation include fees earned on overnight deposits placed with the Federal Reserve of $63 million for the first quarter of 2011 and $63 million, $107 million, $106 million, and $92 million for the fourth, third, second and first quarters of 2010, respectively. |
(3) | Represents the impact of market-based amounts included in Global Banking & Markets. |
(4) | 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. | 8 |
Bank of America Corporation and Subsidiaries
Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest | Interest | Interest | ||||||||||||||||||||||||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||||||||||||||||||||
Earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Time deposits placed and other short-term investments(1) | $ | 31,294 | $ | 88 | 1.14 | % | $ | 28,141 | $ | 75 | 1.07 | % | $ | 27,600 | $ | 61 | 0.89 | % | ||||||||||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 227,379 | 517 | 0.92 | 243,589 | 486 | 0.79 | 266,070 | 448 | 0.68 | |||||||||||||||||||||||||||||||||||||||
Trading account assets | 221,041 | 1,669 | 3.05 | 216,003 | 1,710 | 3.15 | 214,542 | 1,795 | 3.37 | |||||||||||||||||||||||||||||||||||||||
Debt securities(2) | 335,847 | 2,917 | 3.49 | 341,867 | 3,065 | 3.58 | 311,136 | 3,173 | 4.09 | |||||||||||||||||||||||||||||||||||||||
Loans and leases(3): | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage(4) | 262,049 | 2,881 | 4.40 | 254,051 | 2,857 | 4.50 | 243,833 | 3,100 | 5.09 | |||||||||||||||||||||||||||||||||||||||
Home equity | 136,089 | 1,335 | 3.96 | 139,772 | 1,410 | 4.01 | 152,536 | 1,586 | 4.20 | |||||||||||||||||||||||||||||||||||||||
Discontinued real estate | 12,899 | 110 | 3.42 | 13,297 | 118 | 3.57 | 14,433 | 153 | 4.24 | |||||||||||||||||||||||||||||||||||||||
U.S. credit card | 109,941 | 2,837 | 10.47 | 112,673 | 3,040 | 10.70 | 125,353 | 3,370 | 10.90 | |||||||||||||||||||||||||||||||||||||||
Non-U.S. credit card | 27,633 | 779 | 11.43 | 27,457 | 815 | 11.77 | 29,872 | 906 | 12.30 | |||||||||||||||||||||||||||||||||||||||
Direct/Indirect consumer (5) | 90,097 | 993 | 4.47 | 91,549 | 1,088 | 4.72 | 100,920 | 1,302 | 5.23 | |||||||||||||||||||||||||||||||||||||||
Other consumer(6) | 2,753 | 45 | 6.58 | 2,796 | 45 | 6.32 | 3,002 | 48 | 6.35 | |||||||||||||||||||||||||||||||||||||||
Total consumer | 641,461 | 8,980 | 5.65 | 641,595 | 9,373 | 5.81 | 669,949 | 10,465 | 6.30 | |||||||||||||||||||||||||||||||||||||||
U.S. commercial | 191,353 | 1,926 | 4.08 | 193,608 | 1,894 | 3.88 | 202,662 | 1,970 | 3.94 | |||||||||||||||||||||||||||||||||||||||
Commercial real estate(7) | 48,359 | 437 | 3.66 | 51,617 | 432 | 3.32 | 68,526 | 575 | 3.40 | |||||||||||||||||||||||||||||||||||||||
Commercial lease financing | 21,634 | 322 | 5.95 | 21,363 | 250 | 4.69 | 21,675 | 304 | 5.60 | |||||||||||||||||||||||||||||||||||||||
Non-U.S. commercial | 36,159 | 299 | 3.35 | 32,431 | 289 | 3.53 | 28,803 | 264 | 3.72 | |||||||||||||||||||||||||||||||||||||||
Total commercial | 297,505 | 2,984 | 4.06 | 299,019 | 2,865 | 3.81 | 321,666 | 3,113 | 3.92 | |||||||||||||||||||||||||||||||||||||||
Total loans and leases | 938,966 | 11,964 | 5.14 | 940,614 | 12,238 | 5.18 | 991,615 | 13,578 | 5.53 | |||||||||||||||||||||||||||||||||||||||
Other earning assets | 115,336 | 922 | 3.24 | 113,325 | 923 | 3.23 | 122,097 | 1,053 | 3.50 | |||||||||||||||||||||||||||||||||||||||
Total earning assets(8) | 1,869,863 | 18,077 | 3.92 | 1,883,539 | 18,497 | 3.90 | 1,933,060 | 20,108 | 4.19 | |||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents(1) | 138,241 | 63 | 136,967 | 63 | 196,911 | 92 | ||||||||||||||||||||||||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 330,434 | 349,752 | 386,638 | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 2,338,538 | $ | 2,370,258 | $ | 2,516,609 | ||||||||||||||||||||||||||||||||||||||||||
(1) | For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Corporation's Consolidated Balance Sheet presentation of these deposits. Net interest income and net interest yield are calculated excluding these fees. |
(2) | Yields on available-for-sale debt securities are calculated based on fair value rather than the cost basis. The use of fair value does not have a material impact on net interest yield. |
(3) | Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis. Purchased credit-impaired loans were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan. |
(4) | Includes non-U.S. residential mortgages of $92 million in the first quarter of 2011, and $96 million and $538 million in the fourth and first quarters of 2010. |
(5) | Includes non-U.S. consumer loans of $8.2 billion in the first quarter of 2011, and $7.9 billion and $8.1 billion in the fourth and first quarters of 2010. |
(6) | Includes consumer finance loans of $1.9 billion in the first quarter of 2011, and $2.0 billion and $2.2 billion in the fourth and first quarters of 2010; other non-U.S. consumer loans of $777 million in the first quarter of 2011, and $791 million and $664 million in the fourth and first quarters of 2010; and consumer overdrafts of $76 million in the first quarter of 2011, and $34 million and $132 million for the fourth and first quarters of 2010. |
(7) | Includes U.S. commercial real estate loans of $45.7 billion in the first quarter of 2011, and $49.0 billion and $65.6 billion in the fourth and first quarters of 2010, and non-U.S. commercial real estate loans of $2.7 billion in the first quarter of 2011, and $2.6 billion and $3.0 billion in the fourth and first quarters of 2010. |
(8) | Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $388 million in the first quarter of 2011, and $29 million and $272 million in the fourth and first quarters of 2010. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities $621 million in the first quarter of 2011, and $672 million and $970 million in the fourth and first quarters of 2010. |
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
Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis (continued)
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest | Interest | Interest | ||||||||||||||||||||||||||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||
Savings | $ | 38,905 | $ | 32 | 0.34 | % | $ | 37,145 | $ | 35 | 0.36 | % | $ | 35,126 | $ | 43 | 0.50 | % | ||||||||||||||||||||||||||||||
NOW and money market deposit accounts | 475,954 | 316 | 0.27 | 464,531 | 333 | 0.28 | 416,110 | 341 | 0.33 | |||||||||||||||||||||||||||||||||||||||
Consumer CDs and IRAs | 118,306 | 300 | 1.03 | 124,855 | 338 | 1.07 | 166,189 | 567 | 1.38 | |||||||||||||||||||||||||||||||||||||||
Negotiable CDs, public funds and other time deposits | 13,995 | 39 | 1.11 | 16,334 | 47 | 1.16 | 19,763 | 63 | 1.31 | |||||||||||||||||||||||||||||||||||||||
Total U.S. interest-bearing deposits | 647,160 | 687 | 0.43 | 642,865 | 753 | 0.46 | 637,188 | 1,014 | 0.65 | |||||||||||||||||||||||||||||||||||||||
Non-U.S. interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||
Banks located in non-U.S. countries | 21,534 | 38 | 0.72 | 16,827 | 38 | 0.91 | 18,424 | 32 | 0.71 | |||||||||||||||||||||||||||||||||||||||
Governments and official institutions | 2,307 | 2 | 0.35 | 1,560 | 2 | 0.42 | 5,626 | 3 | 0.22 | |||||||||||||||||||||||||||||||||||||||
Time, savings and other | 60,432 | 112 | 0.76 | 58,746 | 101 | 0.69 | 54,885 | 73 | 0.53 | |||||||||||||||||||||||||||||||||||||||
Total non-U.S. interest-bearing deposits | 84,273 | 152 | 0.73 | 77,133 | 141 | 0.73 | 78,935 | 108 | 0.55 | |||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 731,433 | 839 | 0.46 | 719,998 | 894 | 0.49 | 716,123 | 1,122 | 0.64 | |||||||||||||||||||||||||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings | 371,573 | 1,184 | 1.29 | 369,738 | 1,142 | 1.23 | 508,332 | 818 | 0.65 | |||||||||||||||||||||||||||||||||||||||
Trading account liabilities | 83,914 | 627 | 3.03 | 81,313 | 561 | 2.74 | 90,134 | 660 | 2.97 | |||||||||||||||||||||||||||||||||||||||
Long-term debt | 440,511 | 3,093 | 2.84 | 465,875 | 3,254 | 2.78 | 513,634 | 3,530 | 2.77 | |||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities(8) | 1,627,431 | 5,743 | 1.43 | 1,636,924 | 5,851 | 1.42 | 1,828,223 | 6,130 | 1.35 | |||||||||||||||||||||||||||||||||||||||
Noninterest-bearing sources: | ||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 291,707 | 287,740 | 264,892 | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 188,631 | 210,069 | 193,584 | |||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 230,769 | 235,525 | 229,910 | |||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,338,538 | $ | 2,370,258 | $ | 2,516,609 | ||||||||||||||||||||||||||||||||||||||||||
Net interest spread | 2.49 | % | 2.48 | % | 2.84 | % | ||||||||||||||||||||||||||||||||||||||||||
Impact of noninterest-bearing sources | 0.17 | 0.18 | 0.08 | |||||||||||||||||||||||||||||||||||||||||||||
Net interest income/yield on earning assets(1) | $ | 12,334 | 2.66 | % | $ | 12,646 | 2.66 | % | $ | 13,978 | 2.92 | % | ||||||||||||||||||||||||||||||||||||
For footnotes see page 9.
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 - Isolating Hedge Income/Expense(1)
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | ||||||||||||||||||||||||||||||||||||||||
Earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Time deposits placed and other short-term investments | $ | 31,294 | $ | 88 | 1.14 | % | $ | 28,141 | $ | 75 | 1.07 | % | $ | 27,600 | $ | 61 | 0.89 | % | ||||||||||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell(2) | 227,379 | 462 | 0.82 | 243,589 | 420 | 0.68 | 266,070 | 368 | 0.56 | |||||||||||||||||||||||||||||||||||||||
Trading account assets (2) | 221,041 | 1,739 | 3.19 | 216,003 | 1,776 | 3.27 | 214,542 | 1,833 | 3.45 | |||||||||||||||||||||||||||||||||||||||
Debt securities(2) | 335,847 | 3,279 | 3.96 | 341,867 | 3,085 | 3.58 | 311,136 | 3,454 | 4.45 | |||||||||||||||||||||||||||||||||||||||
Loans and leases: | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 262,049 | 2,881 | 4.40 | 254,051 | 2,857 | 4.50 | 243,833 | 3,100 | 5.09 | |||||||||||||||||||||||||||||||||||||||
Home equity | 136,089 | 1,335 | 3.96 | 139,772 | 1,410 | 4.01 | 152,536 | 1,586 | 4.20 | |||||||||||||||||||||||||||||||||||||||
Discontinued real estate | 12,899 | 110 | 3.42 | 13,297 | 118 | 3.57 | 14,433 | 153 | 4.24 | |||||||||||||||||||||||||||||||||||||||
U.S. credit card | 109,941 | 2,837 | 10.47 | 112,673 | 3,040 | 10.70 | 125,353 | 3,370 | 10.90 | |||||||||||||||||||||||||||||||||||||||
Non-U.S. credit card | 27,633 | 779 | 11.43 | 27,457 | 815 | 11.77 | 29,872 | 906 | 12.30 | |||||||||||||||||||||||||||||||||||||||
Direct/Indirect consumer | 90,097 | 993 | 4.47 | 91,549 | 1,088 | 4.72 | 100,920 | 1,302 | 5.23 | |||||||||||||||||||||||||||||||||||||||
Other consumer | 2,753 | 45 | 6.58 | 2,796 | 45 | 6.32 | 3,002 | 48 | 6.35 | |||||||||||||||||||||||||||||||||||||||
Total consumer | 641,461 | 8,980 | 5.65 | 641,595 | 9,373 | 5.81 | 669,949 | 10,465 | 6.30 | |||||||||||||||||||||||||||||||||||||||
U.S. commercial(2) | 191,353 | 1,937 | 4.11 | 193,608 | 1,902 | 3.90 | 202,662 | 2,003 | 4.01 | |||||||||||||||||||||||||||||||||||||||
Commercial real estate | 48,359 | 437 | 3.66 | 51,617 | 432 | 3.32 | 68,526 | 575 | 3.40 | |||||||||||||||||||||||||||||||||||||||
Commercial lease financing | 21,634 | 322 | 5.95 | 21,363 | 250 | 4.69 | 21,675 | 304 | 5.60 | |||||||||||||||||||||||||||||||||||||||
Non-U.S. commercial(2) | 36,159 | 299 | 3.35 | 32,431 | 290 | 3.54 | 28,803 | 264 | 3.72 | |||||||||||||||||||||||||||||||||||||||
Total commercial | 297,505 | 2,995 | 4.08 | 299,019 | 2,874 | 3.82 | 321,666 | 3,146 | 3.96 | |||||||||||||||||||||||||||||||||||||||
Total loans and leases | 938,966 | 11,975 | 5.17 | 940,614 | 12,247 | 5.18 | 991,615 | 13,611 | 5.54 | |||||||||||||||||||||||||||||||||||||||
Other earning assets | 115,336 | 922 | 3.24 | 113,325 | 923 | 3.23 | 122,097 | 1,053 | 3.50 | |||||||||||||||||||||||||||||||||||||||
Total earning assets - excluding hedge impact | 1,869,863 | 18,465 | 4.00 | 1,883,539 | 18,526 | 3.90 | 1,933,060 | 20,380 | 4.27 | |||||||||||||||||||||||||||||||||||||||
Net hedge expense on assets | (388 | ) | (29 | ) | (272 | ) | ||||||||||||||||||||||||||||||||||||||||||
Total earning assets - including hedge impact | 1,869,863 | 18,077 | 3.92 | 1,883,539 | 18,497 | 3.90 | 1,933,060 | 20,108 | 4.19 | |||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 138,241 | 63 | 136,967 | 63 | 196,911 | 92 | ||||||||||||||||||||||||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 330,434 | 349,752 | 386,638 | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 2,338,538 | $ | 2,370,258 | $ | 2,516,609 | ||||||||||||||||||||||||||||||||||||||||||
(1) | This table presents a non-GAAP financial measure. The impact of interest rate risk management derivatives is shown separately. Interest income and interest expense amounts, and the yields and rates have been adjusted. Management believes this presentation is useful to investors because it adjusts for the impact of our hedging decisions and provides a better understanding of our hedging activities. The impact of interest rate risk management derivatives is not material to the average balances presented above. |
(2) | The impact of interest rate risk management derivatives on interest income and interest expense is presented below. |
Interest income excludes the impact of interest rate risk management contracts, which increased (decreased) interest income on:
First Quarter 2011 | Fourth Quarter 2010 | First Quarter 2010 | ||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | $ | 55 | $ | 66 | $ | 80 | ||||||
Trading account assets | (70 | ) | (66 | ) | (38 | ) | ||||||
Debt securities | (362 | ) | (20 | ) | (281 | ) | ||||||
U.S. commercial | (11 | ) | (8 | ) | (33 | ) | ||||||
Non-U.S. commercial | — | (1 | ) | — | ||||||||
Net hedge expense on assets | $ | (388 | ) | $ | (29 | ) | $ | (272 | ) | |||
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 - Isolating Hedge Income/Expense(1) (continued)
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 38,905 | $ | 32 | 0.34 | % | $ | 37,145 | $ | 35 | 0.36 | % | $ | 35,126 | $ | 43 | 0.50 | % | ||||||||||||||||||||||||||||||
NOW and money market deposit accounts(2) | 475,954 | 317 | 0.27 | 464,531 | 333 | 0.28 | 416,110 | 341 | 0.33 | |||||||||||||||||||||||||||||||||||||||
Consumer CDs and IRAs (2) | 118,306 | 253 | 0.87 | 124,855 | 290 | 0.92 | 166,189 | 523 | 1.28 | |||||||||||||||||||||||||||||||||||||||
Negotiable CDs, public funds and other time deposits(2) | 13,995 | 35 | 1.01 | 16,334 | 44 | 1.08 | 19,763 | 60 | 1.23 | |||||||||||||||||||||||||||||||||||||||
Total U.S. interest-bearing deposits | 647,160 | 637 | 0.40 | 642,865 | 702 | 0.43 | 637,188 | 967 | 0.62 | |||||||||||||||||||||||||||||||||||||||
Non-U.S. interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||
Banks located in non-U.S. countries(2) | 21,534 | 20 | 0.38 | 16,827 | 19 | 0.47 | 18,424 | 15 | 0.33 | |||||||||||||||||||||||||||||||||||||||
Governments and official institutions | 2,307 | 2 | 0.35 | 1,560 | 2 | 0.42 | 5,626 | 3 | 0.22 | |||||||||||||||||||||||||||||||||||||||
Time, savings and other | 60,432 | 112 | 0.76 | 58,746 | 101 | 0.69 | 54,885 | 73 | 0.53 | |||||||||||||||||||||||||||||||||||||||
Total non-U.S. interest-bearing deposits | 84,273 | 134 | 0.64 | 77,133 | 122 | 0.63 | 78,935 | 91 | 0.47 | |||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 731,433 | 771 | 0.43 | 719,998 | 824 | 0.45 | 716,123 | 1,058 | 0.60 | |||||||||||||||||||||||||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings(2) | 371,573 | 739 | 0.81 | 369,738 | 740 | 0.79 | 508,332 | 716 | 0.57 | |||||||||||||||||||||||||||||||||||||||
Trading account liabilities | 83,914 | 627 | 3.03 | 81,313 | 561 | 2.74 | 90,134 | 660 | 2.97 | |||||||||||||||||||||||||||||||||||||||
Long-term debt(2) | 440,511 | 4,227 | 3.89 | 465,875 | 4,398 | 3.76 | 513,634 | 4,666 | 3.66 | |||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities - excluding hedge impact | 1,627,431 | 6,364 | 1.59 | 1,636,924 | 6,523 | 1.59 | 1,828,223 | 7,100 | 1.57 | |||||||||||||||||||||||||||||||||||||||
Net hedge income on liabilities | (621 | ) | (672 | ) | (970 | ) | ||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities - including hedge impact | 1,627,431 | 5,743 | 1.43 | 1,636,924 | 5,851 | 1.42 | 1,828,223 | 6,130 | 1.35 | |||||||||||||||||||||||||||||||||||||||
Noninterest-bearing sources: | ||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 291,707 | 287,740 | 264,892 | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 188,631 | 210,069 | 193,584 | |||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 230,769 | 235,525 | 229,910 | |||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,338,538 | $ | 2,370,258 | $ | 2,516,609 | ||||||||||||||||||||||||||||||||||||||||||
Net interest spread | 2.41 | % | 2.31 | % | 2.70 | % | ||||||||||||||||||||||||||||||||||||||||||
Impact of noninterest-bearing sources | 0.21 | 0.22 | 0.09 | |||||||||||||||||||||||||||||||||||||||||||||
Net interest income/yield on earning assets - excluding hedge impact | 12,101 | 2.62 | % | 12,003 | 2.53 | % | 13,280 | 2.79 | % | |||||||||||||||||||||||||||||||||||||||
Net impact of hedge income | 233 | 0.04 | 643 | 0.13 | 698 | 0.13 | ||||||||||||||||||||||||||||||||||||||||||
Net interest income/yield on earning assets | $ | 12,334 | 2.66 | % | $ | 12,646 | 2.66 | % | $ | 13,978 | 2.92 | % | ||||||||||||||||||||||||||||||||||||
(1) | This table presents a non-GAAP financial measure. The impact of interest rate risk management derivatives is shown separately. Interest income and interest expense amounts, and the yields and rates have been adjusted. Management believes this presentation is useful to investors because it adjusts for the impact of our hedging decisions and provides a better understanding of our hedging activities. The impact of interest rate risk management derivatives is not material to the average balances presented above. |
(2) | The impact of interest rate risk management derivatives on interest income and interest expense is presented below. |
Interest expense excludes the impact of interest rate risk management contracts, which increased (decreased) interest expense on:
First Quarter 2011 | Fourth Quarter 2010 | First Quarter 2010 | ||||||||||
NOW and money market deposit accounts | $ | (1 | ) | $ | — | $ | — | |||||
Consumer CDs and IRAs | 47 | 48 | 44 | |||||||||
Negotiable CDs, public funds and other time deposits | 4 | 3 | 3 | |||||||||
Banks located in non-U.S. countries | 18 | 19 | 17 | |||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings | 445 | 402 | 102 | |||||||||
Long-term debt | (1,134 | ) | (1,144 | ) | (1,136 | ) | ||||||
Net hedge income on liabilities | $ | (621 | ) | $ | (672 | ) | $ | (970 | ) | |||
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 12 |
Bank of America Corporation and Subsidiaries
Debt Securities and Available-for-Sale Marketable Equity Securities
(Dollars in millions)
March 31, 2011 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Available-for-sale debt securities | ||||||||||||||||
U.S. Treasury and agency securities | $ | 49,361 | $ | 625 | $ | (887 | ) | $ | 49,099 | |||||||
Mortgage-backed securities: | ||||||||||||||||
Agency | 192,301 | 2,605 | (3,136 | ) | 191,770 | |||||||||||
Agency collateralized mortgage obligations | 34,819 | 237 | (29 | ) | 35,027 | |||||||||||
Non-agency residential | 20,625 | 536 | (507 | ) | 20,654 | |||||||||||
Non-agency commercial | 6,116 | 684 | (1 | ) | 6,799 | |||||||||||
Non-U.S. securities | 4,250 | 63 | (11 | ) | 4,302 | |||||||||||
Corporate bonds | 4,340 | 134 | (5 | ) | 4,469 | |||||||||||
Other taxable securities(1) | 12,883 | 75 | (90 | ) | 12,868 | |||||||||||
Total taxable securities | $ | 324,695 | $ | 4,959 | $ | (4,666 | ) | $ | 324,988 | |||||||
Tax-exempt securities | 5,546 | 31 | (220 | ) | 5,357 | |||||||||||
Total available-for-sale debt securities | $ | 330,241 | $ | 4,990 | $ | (4,886 | ) | $ | 330,345 | |||||||
Held-to-maturity debt securities | 431 | — | — | 431 | ||||||||||||
Total debt securities | $ | 330,672 | $ | 4,990 | $ | (4,886 | ) | $ | 330,776 | |||||||
Available-for-sale marketable equity securities(2) | $ | 8,535 | $ | 11,925 | $ | (15 | ) | $ | 20,445 | |||||||
December 31, 2010 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Available-for-sale debt securities | ||||||||||||||||
U.S. Treasury and agency securities | $ | 49,413 | $ | 604 | $ | (912 | ) | $ | 49,105 | |||||||
Mortgage-backed securities: | ||||||||||||||||
Agency | 190,409 | 3,048 | (2,240 | ) | 191,217 | |||||||||||
Agency collateralized mortgage obligations | 36,639 | 401 | (23 | ) | 37,017 | |||||||||||
Non-agency residential | 23,458 | 588 | (929 | ) | 23,117 | |||||||||||
Non-agency commercial | 6,167 | 686 | (1 | ) | 6,852 | |||||||||||
Non-U.S. securities | 4,054 | 92 | (7 | ) | 4,139 | |||||||||||
Corporate bonds | 5,157 | 144 | (10 | ) | 5,291 | |||||||||||
Other taxable securities(1) | 15,514 | 39 | (161 | ) | 15,392 | |||||||||||
Total taxable securities | $ | 330,811 | $ | 5,602 | $ | (4,283 | ) | $ | 332,130 | |||||||
Tax-exempt securities | 5,687 | 32 | (222 | ) | 5,497 | |||||||||||
Total available-for-sale debt securities | $ | 336,498 | $ | 5,634 | $ | (4,505 | ) | $ | 337,627 | |||||||
Held-to-maturity debt securities | 427 | — | — | 427 | ||||||||||||
Total debt securities | $ | 336,925 | $ | 5,634 | $ | (4,505 | ) | $ | 338,054 | |||||||
Available-for-sale marketable equity securities(2) | $ | 8,650 | $ | 10,628 | $ | (13 | ) | $ | 19,265 | |||||||
(1) | Substantially all asset-backed securities. |
(2) | Classified in other assets on the Consolidated Balance Sheet. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 13 |
Bank of America Corporation and Subsidiaries
Quarterly Results by Business Segment
(Dollars in millions)
First Quarter 2011 | ||||||||||||||||||||||||||||||||||||
Total Corporation | Deposits | Global Card Services | Consumer Real Estate Services | Global Commercial Banking | Global Banking & Markets | GWIM | All Other | |||||||||||||||||||||||||||||
Net interest income(1) | $ | 12,397 | $ | 2,205 | $ | 3,743 | $ | 904 | $ | 1,846 | $ | 2,038 | $ | 1,569 | $ | 92 | ||||||||||||||||||||
Noninterest income | 14,698 | 984 | 1,828 | 1,278 | 802 | 5,849 | 2,921 | 1,036 | ||||||||||||||||||||||||||||
Total revenue, net of interest expense | 27,095 | 3,189 | 5,571 | 2,182 | 2,648 | 7,887 | 4,490 | 1,128 | ||||||||||||||||||||||||||||
Provision for credit losses | 3,814 | 33 | 964 | 1,098 | 76 | (202 | ) | 46 | 1,799 | |||||||||||||||||||||||||||
Noninterest expense | 20,283 | 2,592 | 1,887 | 4,884 | 1,106 | 4,726 | 3,600 | 1,488 | ||||||||||||||||||||||||||||
Income (loss) before income taxes | 2,998 | 564 | 2,720 | (3,800 | ) | 1,466 | 3,363 | 844 | (2,159 | ) | ||||||||||||||||||||||||||
Income tax expense (benefit)(1) | 949 | 209 | 1,008 | (1,408 | ) | 543 | 1,231 | 313 | (947 | ) | ||||||||||||||||||||||||||
Net income (loss) | $ | 2,049 | $ | 355 | $ | 1,712 | $ | (2,392 | ) | $ | 923 | $ | 2,132 | $ | 531 | $ | (1,212 | ) | ||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 938,966 | n/m | $ | 162,885 | $ | 120,560 | $ | 191,977 | $ | 103,704 | $ | 100,851 | $ | 258,350 | |||||||||||||||||||||
Total assets(2) | 2,338,538 | $ | 443,461 | 165,170 | 210,302 | 312,557 | 708,231 | 291,907 | 206,910 | |||||||||||||||||||||||||||
Total deposits | 1,023,140 | 418,298 | n/m | n/m | 160,217 | 112,028 | 258,518 | 48,608 | ||||||||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 932,425 | n/m | $ | 158,900 | $ | 118,750 | $ | 190,293 | $ | 105,651 | $ | 101,286 | $ | 256,930 | |||||||||||||||||||||
Total assets(2) | 2,274,532 | $ | 456,248 | 163,435 | 205,504 | 309,917 | 698,399 | 280,524 | 160,505 | |||||||||||||||||||||||||||
Total deposits | 1,020,175 | 431,022 | n/m | n/m | 161,584 | 115,212 | 256,526 | 34,817 | ||||||||||||||||||||||||||||
Fourth Quarter 2010 | ||||||||||||||||||||||||||||||||||||
Total Corporation | Deposits | Global Card Services | Consumer Real Estate Services | Global Commercial Banking | Global Banking & Markets | GWIM | All Other | |||||||||||||||||||||||||||||
Net interest income(1) | $ | 12,709 | $ | 2,006 | $ | 4,203 | $ | 1,131 | $ | 1,861 | $ | 2,007 | $ | 1,425 | $ | 76 | ||||||||||||||||||||
Noninterest income (loss) | 9,959 | 997 | 2,043 | (647 | ) | 749 | 3,481 | 2,734 | 602 | |||||||||||||||||||||||||||
Total revenue, net of interest expense | 22,668 | 3,003 | 6,246 | 484 | 2,610 | 5,488 | 4,159 | 678 | ||||||||||||||||||||||||||||
Provision for credit losses | 5,129 | 41 | 2,141 | 1,198 | (132 | ) | (112 | ) | 155 | 1,838 | ||||||||||||||||||||||||||
Noninterest expense | 20,864 | 3,253 | 1,741 | 6,046 | 1,058 | 4,394 | 3,494 | 878 | ||||||||||||||||||||||||||||
Income (loss) before income taxes | (3,325 | ) | (291 | ) | 2,364 | (6,760 | ) | 1,684 | 1,206 | 510 | (2,038 | ) | ||||||||||||||||||||||||
Income tax expense (benefit)(1) | (2,081 | ) | (101 | ) | 876 | (1,784 | ) | 634 | 505 | 195 | (2,406 | ) | ||||||||||||||||||||||||
Net income (loss) | $ | (1,244 | ) | $ | (190 | ) | $ | 1,488 | $ | (4,976 | ) | $ | 1,050 | $ | 701 | $ | 315 | $ | 368 | |||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 940,614 | n/m | $ | 167,156 | $ | 124,934 | $ | 194,819 | $ | 100,606 | $ | 100,306 | $ | 252,180 | |||||||||||||||||||||
Total assets(2) | 2,370,258 | $ | 438,346 | 167,722 | 219,106 | 314,766 | 738,036 | 284,881 | 207,401 | |||||||||||||||||||||||||||
Total deposits | 1,007,738 | 413,150 | n/m | n/m | 156,671 | 114,942 | 246,281 | 44,841 | ||||||||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 940,440 | n/m | $ | 167,367 | $ | 122,934 | $ | 193,568 | $ | 99,964 | $ | 100,724 | $ | 255,213 | |||||||||||||||||||||
Total assets(2) | 2,264,909 | $ | 440,954 | 169,745 | 213,363 | 312,787 | 651,638 | 289,954 | 186,468 | |||||||||||||||||||||||||||
Total deposits | 1,010,430 | 415,189 | n/m | n/m | 161,278 | 110,971 | 257,983 | 38,748 | ||||||||||||||||||||||||||||
First Quarter 2010 | ||||||||||||||||||||||||||||||||||||
Total Corporation | Deposits | Global Card Services | Consumer Real Estate Services | Global Commercial Banking | Global Banking & Markets | GWIM | All Other | |||||||||||||||||||||||||||||
Net interest income(1) | $ | 14,070 | $ | 2,175 | $ | 4,818 | $ | 1,213 | $ | 2,189 | $ | 2,170 | $ | 1,464 | $ | 41 | ||||||||||||||||||||
Noninterest income | 18,220 | 1,543 | 1,985 | 2,410 | 899 | 7,523 | 2,574 | 1,286 | ||||||||||||||||||||||||||||
Total revenue, net of interest expense | 32,290 | 3,718 | 6,803 | 3,623 | 3,088 | 9,693 | 4,038 | 1,327 | ||||||||||||||||||||||||||||
Provision for credit losses | 9,805 | 38 | 3,535 | 3,600 | 936 | 236 | 242 | 1,218 | ||||||||||||||||||||||||||||
Noninterest expense | 17,775 | 2,562 | 1,732 | 3,328 | 1,030 | 4,292 | 3,103 | 1,728 | ||||||||||||||||||||||||||||
Income (loss) before income taxes | 4,710 | 1,118 | 1,536 | (3,305 | ) | 1,122 | 5,165 | 693 | (1,619 | ) | ||||||||||||||||||||||||||
Income tax expense (benefit)(1) | 1,528 | 417 | 573 | (1,233 | ) | 419 | 1,927 | 259 | (834 | ) | ||||||||||||||||||||||||||
Net income (loss) | $ | 3,182 | $ | 701 | $ | 963 | $ | (2,072 | ) | $ | 703 | $ | 3,238 | $ | 434 | $ | (785 | ) | ||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 991,615 | n/m | $ | 189,307 | $ | 133,744 | $ | 213,838 | $ | 99,034 | $ | 98,841 | $ | 256,156 | |||||||||||||||||||||
Total assets(2) | 2,516,609 | $ | 441,854 | 195,809 | 234,010 | 298,007 | 776,584 | 249,799 | 320,546 | |||||||||||||||||||||||||||
Total deposits | 981,015 | 416,842 | n/m | n/m | 143,635 | 103,634 | 221,613 | 70,858 | ||||||||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 976,042 | n/m | $ | 181,763 | $ | 132,427 | $ | 211,250 | $ | 95,580 | $ | 98,343 | $ | 255,869 | |||||||||||||||||||||
Total assets(2) | 2,344,634 | $ | 445,237 | 190,949 | 224,469 | 304,058 | 685,445 | 257,299 | 237,177 | |||||||||||||||||||||||||||
Total deposits | 976,102 | 420,251 | n/m | n/m | 145,669 | 104,700 | 227,148 | 56,855 |
(1) | Fully taxable-equivalent basis |
(2) | Total assets include asset allocations to match liabilities (i.e., deposits). |
n/m | = not meaningful |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 14 |
Bank of America Corporation and Subsidiaries
Deposits Segment Results
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||||
Net interest income(1) | $ | 2,205 | $ | 2,006 | $ | 1,953 | $ | 2,144 | $ | 2,175 | ||||||||||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||||||||||
Service charges | 923 | 946 | 1,138 | 1,494 | 1,479 | |||||||||||||||||||||||||||||||||||
All other income | 61 | 51 | 55 | 57 | 64 | |||||||||||||||||||||||||||||||||||
Total noninterest income | 984 | 997 | 1,193 | 1,551 | 1,543 | |||||||||||||||||||||||||||||||||||
Total revenue, net of interest expense | 3,189 | 3,003 | 3,146 | 3,695 | 3,718 | |||||||||||||||||||||||||||||||||||
Provision for credit losses | 33 | 41 | 62 | 60 | 38 | |||||||||||||||||||||||||||||||||||
Noninterest expense | 2,592 | 3,253 | 2,756 | 2,567 | 2,562 | |||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 564 | (291 | ) | 328 | 1,068 | 1,118 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit)(1) | 209 | (101 | ) | 119 | 390 | 417 | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 355 | $ | (190 | ) | $ | 209 | $ | 678 | $ | 701 | |||||||||||||||||||||||||||||
Net interest yield(1) | 2.14 | % | 1.93 | % | 1.89 | % | 2.06 | % | 2.12 | % | ||||||||||||||||||||||||||||||
Return on average equity | 6.09 | n/m | 3.40 | 11.22 | 11.78 | |||||||||||||||||||||||||||||||||||
Return on average economic capital(2) | 25.43 | n/m | 13.09 | 43.74 | 46.33 | |||||||||||||||||||||||||||||||||||
Efficiency ratio(1) | 81.28 | 108.33 | 87.61 | 69.45 | 68.92 | |||||||||||||||||||||||||||||||||||
Balance sheet | ||||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||
Total earning assets(3) | $ | 417,218 | $ | 411,765 | $ | 410,330 | $ | 417,132 | $ | 415,228 | ||||||||||||||||||||||||||||||
Total assets(3) | 443,461 | 438,346 | 436,479 | 443,520 | 441,854 | |||||||||||||||||||||||||||||||||||
Total deposits | 418,298 | 413,150 | 411,117 | 418,480 | 416,842 | |||||||||||||||||||||||||||||||||||
Allocated equity | 23,641 | 24,128 | 24,402 | 24,226 | 24,132 | |||||||||||||||||||||||||||||||||||
Economic capital(4) | 5,683 | 6,161 | 6,424 | 6,239 | 6,164 | |||||||||||||||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||||||||||||||
Total earning assets(3) | $ | 429,956 | $ | 414,215 | $ | 408,734 | $ | 413,648 | $ | 418,873 | ||||||||||||||||||||||||||||||
Total assets(3) | 456,248 | 440,954 | 434,854 | 439,770 | 445,237 | |||||||||||||||||||||||||||||||||||
Total deposits | 431,022 | 415,189 | 409,365 | 414,470 | 420,251 |
(1) | Fully taxable-equivalent basis |
(2) | Return on average economic capital is calculated as net income, excluding cost of funds and earnings credit on intangibles, divided by average economic capital. |
(3) | Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits). |
(4) | Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights). |
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. | 15 |
Bank of America Corporation and Subsidiaries
Deposits Key Indicators
(Dollars in millions, except as noted)
First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||||||||||||||||||||||
Average deposit balances | ||||||||||||||||||||||||||||||||||||||||
Checking | $ | 160,452 | $ | 154,333 | $ | 150,117 | $ | 152,130 | $ | 146,610 | ||||||||||||||||||||||||||||||
Savings | 36,701 | 35,120 | 35,135 | 35,467 | 33,345 | |||||||||||||||||||||||||||||||||||
MMS | 125,941 | 124,446 | 122,996 | 122,123 | 116,826 | |||||||||||||||||||||||||||||||||||
CDs and IRAs | 91,954 | 95,860 | 99,702 | 105,592 | 116,907 | |||||||||||||||||||||||||||||||||||
Non-U.S. and other | 3,250 | 3,391 | 3,167 | 3,168 | 3,154 | |||||||||||||||||||||||||||||||||||
Total average deposit balances | $ | 418,298 | $ | 413,150 | $ | 411,117 | $ | 418,480 | $ | 416,842 | ||||||||||||||||||||||||||||||
Deposit spreads (excludes noninterest costs) | ||||||||||||||||||||||||||||||||||||||||
Checking | 3.50 | % | 3.60 | % | 3.76 | % | 3.81 | % | 3.82 | % | ||||||||||||||||||||||||||||||
Savings | 3.42 | 3.51 | 3.63 | 3.70 | 3.73 | |||||||||||||||||||||||||||||||||||
MMS | 1.55 | 1.55 | 1.53 | 0.84 | 0.77 | |||||||||||||||||||||||||||||||||||
CDs and IRAs | 0.35 | 0.32 | 0.28 | 0.22 | 0.12 | |||||||||||||||||||||||||||||||||||
Non-U.S. and other | 3.97 | 4.10 | 4.24 | 4.34 | 4.40 | |||||||||||||||||||||||||||||||||||
Total deposit spreads | 2.20 | 2.20 | 2.23 | 2.02 | 1.91 | |||||||||||||||||||||||||||||||||||
Client brokerage assets (1) | $ | 66,703 | $ | 63,597 | $ | 59,984 | $ | 51,102 | $ | 55,856 | ||||||||||||||||||||||||||||||
Online banking (end of period) | ||||||||||||||||||||||||||||||||||||||||
Active accounts (units in thousands) | 30,065 | 29,345 | 29,313 | 29,195 | 29,850 | |||||||||||||||||||||||||||||||||||
Active billpay accounts (units in thousands) | 15,345 | 14,986 | 14,941 | 14,902 | 15,078 |
Bank of America maintains a strong active online banking customer base with 30.1 million subscribers.
Bank of America uses a strict Active User standard - customers must have used our online services within the last 90 days.
15.3 million active bill pay users paid $78.9 billion worth of bills this quarter.
(1) | During the first quarter of 2011, the Merrill Edge business was moved from GWIM along with historical results. |
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. | 16 |
Bank of America Corporation and Subsidiaries
Global Card Services Segment Results
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||||
Net interest income(1) | $ | 3,743 | $ | 4,203 | $ | 4,361 | $ | 4,439 | $ | 4,818 | ||||||||||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||||||||||
Card income | 1,728 | 2,000 | 1,877 | 1,900 | 1,881 | |||||||||||||||||||||||||||||||||||
All other income (loss) | 100 | 43 | (527 | ) | 522 | 104 | ||||||||||||||||||||||||||||||||||
Total noninterest income | 1,828 | 2,043 | 1,350 | 2,422 | 1,985 | |||||||||||||||||||||||||||||||||||
Total revenue, net of interest expense | 5,571 | 6,246 | 5,711 | 6,861 | 6,803 | |||||||||||||||||||||||||||||||||||
Provision for credit losses | 964 | 2,141 | 3,177 | 3,795 | 3,535 | |||||||||||||||||||||||||||||||||||
Goodwill impairment | — | — | 10,400 | — | — | |||||||||||||||||||||||||||||||||||
All other noninterest expense | 1,887 | 1,741 | 1,706 | 1,776 | 1,732 | |||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 2,720 | 2,364 | (9,572 | ) | 1,290 | 1,536 | ||||||||||||||||||||||||||||||||||
Income tax expense(1) | 1,008 | 876 | 303 | 470 | 573 | |||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 1,712 | $ | 1,488 | $ | (9,875 | ) | $ | 820 | $ | 963 | |||||||||||||||||||||||||||||
Net interest yield(1) | 9.28 | % | 9.94 | % | 10.09 | % | 10.01 | % | 10.32 | % | ||||||||||||||||||||||||||||||
Return on average equity | 26.63 | 21.46 | n/m | 8.12 | 9.05 | |||||||||||||||||||||||||||||||||||
Return on average economic capital(2) | 51.95 | 40.37 | 13.94 | 19.44 | 20.08 | |||||||||||||||||||||||||||||||||||
Efficiency ratio(1) | 33.89 | 27.89 | n/m | 25.88 | 25.47 | |||||||||||||||||||||||||||||||||||
Efficiency ratio, excluding goodwill impairment charge(1) | 33.89 | 27.89 | 29.85 | 25.88 | 25.47 | |||||||||||||||||||||||||||||||||||
Balance sheet | ||||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 162,885 | $ | 167,156 | $ | 171,191 | $ | 177,571 | $ | 189,307 | ||||||||||||||||||||||||||||||
Total earning assets | 163,577 | 167,716 | 171,456 | 177,868 | 189,353 | |||||||||||||||||||||||||||||||||||
Total assets | 165,170 | 167,722 | 177,602 | 186,153 | 195,809 | |||||||||||||||||||||||||||||||||||
Allocated equity | 26,073 | 27,499 | 35,270 | 40,517 | 43,170 | |||||||||||||||||||||||||||||||||||
Economic capital(3) | 13,407 | 14,798 | 15,529 | 17,349 | 19,901 | |||||||||||||||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 158,900 | $ | 167,367 | $ | 168,845 | $ | 173,021 | $ | 181,763 | ||||||||||||||||||||||||||||||
Total earning assets | 159,971 | 168,224 | 169,615 | 173,497 | 182,267 | |||||||||||||||||||||||||||||||||||
Total assets | 163,435 | 169,745 | 169,786 | 183,298 | 190,949 |
(1) | Fully taxable-equivalent basis |
(2) | Return on average economic capital is calculated as net income, excluding goodwill impairment charge, cost of funds and earnings credit on intangibles, divided by average economic capital. |
(3) | Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights). |
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
Global Card Services Key Indicators
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||||
Credit Card Data(1) | ||||||||||||||||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||||||
Average credit card outstandings | $ | 137,574 | $ | 140,130 | $ | 142,298 | $ | 146,444 | $ | 155,225 | ||||||||||||||||||||||||||||||
Ending credit card outstandings | 134,342 | 141,250 | 140,871 | 143,130 | 149,555 | |||||||||||||||||||||||||||||||||||
Credit Quality | ||||||||||||||||||||||||||||||||||||||||
Net charge-offs | $ | 2,676 | $ | 2,911 | $ | 3,270 | $ | 4,459 | $ | 4,594 | ||||||||||||||||||||||||||||||
7.89 | % | 8.24 | % | 9.12 | % | 12.21 | % | 12.00 | % | |||||||||||||||||||||||||||||||
30+ delinquency | $ | 6,478 | $ | 7,268 | $ | 7,643 | $ | 8,256 | $ | 10,172 | ||||||||||||||||||||||||||||||
4.82 | % | 5.15 | % | 5.43 | % | 5.77 | % | 6.80 | % | |||||||||||||||||||||||||||||||
90+ delinquency | $ | 3,570 | $ | 3,919 | $ | 4,007 | $ | 4,542 | $ | 5,589 | ||||||||||||||||||||||||||||||
2.65 | % | 2.77 | % | 2.84 | % | 3.17 | % | 3.74 | % | |||||||||||||||||||||||||||||||
Other Global Card Services Key Indicators | ||||||||||||||||||||||||||||||||||||||||
Credit card data | ||||||||||||||||||||||||||||||||||||||||
Gross interest yield | 10.67 | % | 10.92 | % | 11.13 | % | 10.89 | % | 11.18 | % | ||||||||||||||||||||||||||||||
Risk adjusted margin | 4.97 | 5.40 | 3.28 | 1.33 | 1.83 | |||||||||||||||||||||||||||||||||||
New account growth (in thousands) | 918 | 790 | 710 | 664 | 739 | |||||||||||||||||||||||||||||||||||
Purchase volumes | $ | 50,496 | $ | 56,458 | $ | 54,257 | $ | 53,924 | $ | 48,677 | ||||||||||||||||||||||||||||||
Debit Card Data | ||||||||||||||||||||||||||||||||||||||||
Debit purchase volumes | $ | 59,996 | $ | 60,866 | $ | 58,011 | $ | 59,136 | $ | 56,067 |
(1) | Credit Card includes U.S., Europe and Canada consumer credit card and does not include business card, debit card and unsecured consumer lending. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 18 |
Bank of America Corporation and Subsidiaries
Consumer Real Estate Services Segment Results
(Dollars in millions; except as noted)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||||
Net interest income(1) | $ | 904 | $ | 1,131 | $ | 1,346 | $ | 1,000 | $ | 1,213 | ||||||||||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||||||||||
Mortgage banking income (loss) | 694 | (1,338 | ) | 1,756 | 1,020 | 1,641 | ||||||||||||||||||||||||||||||||||
Insurance income | 499 | 532 | 574 | 561 | 590 | |||||||||||||||||||||||||||||||||||
All other income | 85 | 159 | 68 | 215 | 179 | |||||||||||||||||||||||||||||||||||
Total noninterest income (loss) | 1,278 | (647 | ) | 2,398 | 1,796 | 2,410 | ||||||||||||||||||||||||||||||||||
Total revenue, net of interest expense | 2,182 | 484 | 3,744 | 2,796 | 3,623 | |||||||||||||||||||||||||||||||||||
Provision for credit losses | 1,098 | 1,198 | 1,302 | 2,390 | 3,600 | |||||||||||||||||||||||||||||||||||
Goodwill impairment | — | 2,000 | — | — | — | |||||||||||||||||||||||||||||||||||
All other noninterest expense | 4,884 | 4,046 | 2,971 | 2,819 | 3,328 | |||||||||||||||||||||||||||||||||||
Loss before income taxes | (3,800 | ) | (6,760 | ) | (529 | ) | (2,413 | ) | (3,305 | ) | ||||||||||||||||||||||||||||||
Income tax benefit(1) | (1,408 | ) | (1,784 | ) | (190 | ) | (878 | ) | (1,233 | ) | ||||||||||||||||||||||||||||||
Net loss | $ | (2,392 | ) | $ | (4,976 | ) | $ | (339 | ) | $ | (1,535 | ) | $ | (2,072 | ) | |||||||||||||||||||||||||
Net interest yield(1) | 2.11 | % | 2.48 | % | 2.87 | % | 2.13 | % | 2.58 | % | ||||||||||||||||||||||||||||||
Efficiency ratio(1) | n/m | n/m | 79.38 | 100.84 | 91.84 | |||||||||||||||||||||||||||||||||||
Balance sheet | ||||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 120,560 | $ | 124,934 | $ | 127,713 | $ | 130,663 | $ | 133,744 | ||||||||||||||||||||||||||||||
Total earning assets | 173,315 | 180,960 | 186,021 | 188,145 | 190,804 | |||||||||||||||||||||||||||||||||||
Total assets | 210,302 | 219,106 | 223,042 | 229,070 | 234,010 | |||||||||||||||||||||||||||||||||||
Allocated equity | 18,846 | 24,451 | 26,627 | 26,346 | 27,280 | |||||||||||||||||||||||||||||||||||
Economic capital(2) | 16,095 | 19,643 | 21,818 | 21,535 | 22,466 | |||||||||||||||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 118,750 | $ | 122,934 | $ | 127,700 | $ | 129,798 | $ | 132,427 | ||||||||||||||||||||||||||||||
Total earning assets | 167,280 | 173,032 | 178,969 | 188,090 | 183,897 | |||||||||||||||||||||||||||||||||||
Total assets | 205,504 | 213,363 | 215,505 | 225,398 | 224,469 | |||||||||||||||||||||||||||||||||||
Period end (in billions) | ||||||||||||||||||||||||||||||||||||||||
Mortgage servicing portfolio (3) | $ | 2,028.0 | $ | 2,056.8 | $ | 2,079.5 | $ | 2,127.6 | $ | 2,143.7 |
(1) | Fully taxable-equivalent basis |
(2) | Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights). |
(3) | Servicing of residential mortgage loans, home equity lines of credit, home equity loans and discontinued real estate mortgage loans. |
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. | 19 |
Bank of America Corporation and Subsidiaries
Consumer Real Estate Services Results(1)
(Dollars in millions)
Three Months Ended March 31, 2011 | ||||||||||||||||||||||||
Total Consumer Real Estate Services | Home Loans & Insurance | Legacy Asset Servicing | Other | |||||||||||||||||||||
Net interest income(2) | $ | 904 | $ | 571 | $ | 342 | $ | (9 | ) | |||||||||||||||
Noninterest income: | ||||||||||||||||||||||||
Mortgage banking income (loss) | 694 | 711 | (19 | ) | 2 | |||||||||||||||||||
Insurance income | 499 | 499 | — | — | ||||||||||||||||||||
All other income | 85 | 79 | 6 | — | ||||||||||||||||||||
Total noninterest income (loss) | 1,278 | 1,289 | (13 | ) | 2 | |||||||||||||||||||
Total revenue, net of interest expense | 2,182 | 1,860 | 329 | (7 | ) | |||||||||||||||||||
Provision for credit losses | 1,098 | — | 1,098 | — | ||||||||||||||||||||
Noninterest expense | 4,884 | 1,654 | 3,230 | — | ||||||||||||||||||||
Income (loss) before income taxes | (3,800 | ) | 206 | (3,999 | ) | (7 | ) | |||||||||||||||||
Income tax expense (benefit)(2) | (1,408 | ) | 76 | (1,482 | ) | (2 | ) | |||||||||||||||||
Net income (loss) | $ | (2,392 | ) | $ | 130 | $ | (2,517 | ) | $ | (5 | ) | |||||||||||||
Balance sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 120,560 | $ | 56,282 | $ | 64,278 | $ | — | ||||||||||||||||
Total earning assets | 173,315 | 80,582 | 66,625 | 26,108 | ||||||||||||||||||||
Total assets | 210,302 | 88,679 | 78,293 | 43,330 | ||||||||||||||||||||
Allocated equity | 18,846 | n/a | n/a | n/a | ||||||||||||||||||||
Economic capital (3) | 16,095 | n/a | n/a | n/a | ||||||||||||||||||||
Period end | ||||||||||||||||||||||||
Total loans and leases | $ | 118,750 | $ | 55,694 | $ | 63,056 | $ | — | ||||||||||||||||
Total earning assets | 167,280 | 75,038 | 65,251 | 26,991 | ||||||||||||||||||||
Total assets | 205,504 | 82,301 | 76,600 | 46,603 |
(1) | Consumer Real Estate Services includes Home Loans & Insurance and Legacy Asset Servicing with results related to mortgage servicing rights included in Other. |
(2) | Fully taxable-equivalent basis |
(3) | Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights). |
n/m | = not meaningful |
n/a | = not applicable |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 20 |
Bank of America Corporation and Subsidiaries
Consumer Real Estate Services Key Indicators
(Dollars in millions, except as noted)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||||
Mortgage servicing rights at fair value rollforward: | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 14,900 | $ | 12,251 | $ | 14,745 | $ | 18,842 | $ | 19,465 | ||||||||||||||||||||||||||||||
Net additions | 841 | 757 | 745 | 882 | 1,131 | |||||||||||||||||||||||||||||||||||
Impact of customer payments | (706 | ) | (799 | ) | (923 | ) | (981 | ) | (1,056 | ) | ||||||||||||||||||||||||||||||
Other changes in mortgage servicing rights fair value(1) | 247 | 2,691 | (2,316 | ) | (3,998 | ) | (698 | ) | ||||||||||||||||||||||||||||||||
Balance, end of period | $ | 15,282 | $ | 14,900 | $ | 12,251 | $ | 14,745 | $ | 18,842 | ||||||||||||||||||||||||||||||
Capitalized mortgage servicing rights | ||||||||||||||||||||||||||||||||||||||||
(% of loans serviced for investors) | 95 | bps | 92 | bps | 73 | bps | 86 | bps | 110 | bps | ||||||||||||||||||||||||||||||
Mortgage loans serviced for investors (in billions) | $ | 1,610 | $ | 1,628 | $ | 1,669 | $ | 1,706 | $ | 1,717 | ||||||||||||||||||||||||||||||
Loan production: | ||||||||||||||||||||||||||||||||||||||||
Consumer Real Estate Services | ||||||||||||||||||||||||||||||||||||||||
First mortgage | $ | 52,519 | $ | 81,255 | $ | 69,875 | $ | 69,141 | $ | 66,965 | ||||||||||||||||||||||||||||||
Home equity | 1,575 | 2,024 | 2,000 | 1,831 | 1,771 | |||||||||||||||||||||||||||||||||||
Total Corporation(2) | ||||||||||||||||||||||||||||||||||||||||
First mortgage | 56,734 | 84,673 | 71,925 | 71,938 | 69,502 | |||||||||||||||||||||||||||||||||||
Home equity | 1,728 | 2,137 | 2,136 | 2,137 | 2,027 | |||||||||||||||||||||||||||||||||||
Mortgage banking income (loss) | ||||||||||||||||||||||||||||||||||||||||
Production income (loss): | ||||||||||||||||||||||||||||||||||||||||
Core production revenue | $ | 668 | $ | 1,538 | $ | 1,849 | $ | 1,428 | $ | 1,283 | ||||||||||||||||||||||||||||||
Representations and warranties provision | (1,013 | ) | (4,140 | ) | (872 | ) | (1,248 | ) | (526 | ) | ||||||||||||||||||||||||||||||
Total production income (loss) | (345 | ) | (2,602 | ) | 977 | 180 | 757 | |||||||||||||||||||||||||||||||||
Servicing income: | ||||||||||||||||||||||||||||||||||||||||
Servicing fees | 1,606 | 1,634 | 1,623 | 1,649 | 1,569 | |||||||||||||||||||||||||||||||||||
Impact of customer payments(3) | (706 | ) | (799 | ) | (924 | ) | (981 | ) | (1,056 | ) | ||||||||||||||||||||||||||||||
Fair value changes of mortgage servicing rights, net of economic hedge results(4) | 2 | 257 | (90 | ) | 12 | 197 | ||||||||||||||||||||||||||||||||||
Other servicing-related revenue | 137 | 172 | 170 | 160 | 174 | |||||||||||||||||||||||||||||||||||
Total net servicing income | 1,039 | 1,264 | 779 | 840 | 884 | |||||||||||||||||||||||||||||||||||
Total Consumer Real Estate Services mortgage banking income (loss) | 694 | (1,338 | ) | 1,756 | 1,020 | 1,641 | ||||||||||||||||||||||||||||||||||
Other business segments' mortgage banking loss(5) | (64 | ) | (81 | ) | (1 | ) | (122 | ) | (141 | ) | ||||||||||||||||||||||||||||||
Total consolidated mortgage banking income (loss) | $ | 630 | $ | (1,419 | ) | $ | 1,755 | $ | 898 | $ | 1,500 | |||||||||||||||||||||||||||||
(1) | These amounts reflect the change in discount rates and prepayment speed assumptions, mostly due to changes in interest rates, as well as the effect of changes in other assumptions. |
(2) | In addition to loan production in Consumer Real Estate Services, the remaining first mortgage and home equity loan production is primarily in GWIM. |
(3) | Represents the change in the market value of the mortgage servicing rights asset due to the impact of customer payments received during the year. |
(4) | Includes sale of mortgage servicing rights. |
(5) | Includes the effect of transfers of mortgage loans from Consumer Real Estate Services to the asset and liability management portfolio included in All Other. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 21 |
Bank of America Corporation and Subsidiaries
Global Commercial Banking Segment Results
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||||
Net interest income(1) | $ | 1,846 | $ | 1,861 | $ | 1,849 | $ | 2,093 | $ | 2,189 | ||||||||||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||||||||||
Service charges | 606 | 563 | 589 | 589 | 599 | |||||||||||||||||||||||||||||||||||
All other income | 196 | 186 | 191 | 198 | 300 | |||||||||||||||||||||||||||||||||||
Total noninterest income | 802 | 749 | 780 | 787 | 899 | |||||||||||||||||||||||||||||||||||
Total revenue, net of interest expense | 2,648 | 2,610 | 2,629 | 2,880 | 3,088 | |||||||||||||||||||||||||||||||||||
Provision for credit losses | 76 | (132 | ) | 556 | 623 | 936 | ||||||||||||||||||||||||||||||||||
Noninterest expense | 1,106 | 1,058 | 1,059 | 974 | 1,030 | |||||||||||||||||||||||||||||||||||
Income before income taxes | 1,466 | 1,684 | 1,014 | 1,283 | 1,122 | |||||||||||||||||||||||||||||||||||
Income tax expense(1) | 543 | 634 | 371 | 470 | 419 | |||||||||||||||||||||||||||||||||||
Net income | $ | 923 | $ | 1,050 | $ | 643 | $ | 813 | $ | 703 | ||||||||||||||||||||||||||||||
Net interest yield(1) | 2.73 | % | 2.66 | % | 2.60 | % | 3.13 | % | 3.39 | % | ||||||||||||||||||||||||||||||
Return on average equity | 9.02 | 9.69 | 5.94 | 7.44 | 6.40 | |||||||||||||||||||||||||||||||||||
Return on average economic capital(2) | 17.97 | 18.71 | 11.50 | 14.11 | 11.94 | |||||||||||||||||||||||||||||||||||
Efficiency ratio(1) | 41.74 | 40.58 | 40.30 | 33.80 | 33.35 | |||||||||||||||||||||||||||||||||||
Balance sheet | ||||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 191,977 | $ | 194,819 | $ | 198,835 | $ | 206,107 | $ | 213,838 | ||||||||||||||||||||||||||||||
Total earning assets(3) | 274,648 | 277,385 | 281,732 | 268,533 | 261,640 | |||||||||||||||||||||||||||||||||||
Total assets(3) | 312,557 | 314,766 | 318,382 | 305,776 | 298,007 | |||||||||||||||||||||||||||||||||||
Total deposits | 160,217 | 156,671 | 148,605 | 145,499 | 143,635 | |||||||||||||||||||||||||||||||||||
Allocated equity | 41,493 | 42,978 | 42,912 | 43,858 | 44,566 | |||||||||||||||||||||||||||||||||||
Economic capital(4) | 20,793 | 22,274 | 22,205 | 23,147 | 23,950 | |||||||||||||||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 190,293 | $ | 193,568 | $ | 195,853 | $ | 203,169 | $ | 211,250 | ||||||||||||||||||||||||||||||
Total earning assets(3) | 272,410 | 274,622 | 267,817 | 269,492 | 268,141 | |||||||||||||||||||||||||||||||||||
Total assets(3) | 309,917 | 312,787 | 304,521 | 306,222 | 304,058 | |||||||||||||||||||||||||||||||||||
Total deposits | 161,584 | 161,278 | 150,994 | 147,414 | 145,669 |
(1) | Fully taxable-equivalent basis |
(2) | Return on average economic capital is calculated as net income, excluding cost of funds and earnings credit on intangibles, divided by average economic capital. |
(3) | Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits). |
(4) | Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights). |
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
Global Commercial Banking Key Indicators
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||
Revenue, net of interest expense by service segment | ||||||||||||||||||||||||||||||||||||||
Business lending | $ | 1,484 | $ | 1,505 | $ | 1,556 | $ | 1,656 | $ | 1,879 | ||||||||||||||||||||||||||||
Treasury services | 1,164 | 1,105 | 1,073 | 1,224 | 1,209 | |||||||||||||||||||||||||||||||||
Total revenue, net of interest expense(1) | $ | 2,648 | $ | 2,610 | $ | 2,629 | $ | 2,880 | $ | 3,088 | ||||||||||||||||||||||||||||
Average loans and leases by product | ||||||||||||||||||||||||||||||||||||||
U.S. commercial | $ | 104,703 | $ | 102,914 | $ | 101,447 | $ | 104,262 | $ | 108,081 | ||||||||||||||||||||||||||||
Commercial real estate | 42,796 | 45,854 | 49,747 | 53,721 | 57,918 | |||||||||||||||||||||||||||||||||
Direct/Indirect consumer | 41,976 | 43,711 | 45,400 | 45,776 | 45,400 | |||||||||||||||||||||||||||||||||
Other | 2,502 | 2,340 | 2,241 | 2,348 | 2,439 | |||||||||||||||||||||||||||||||||
Total average loans and leases | $ | 191,977 | $ | 194,819 | $ | 198,835 | $ | 206,107 | $ | 213,838 | ||||||||||||||||||||||||||||
Loan spread | 2.39 | % | 2.27 | % | 2.29 | % | 2.32 | % | 2.30 | % | ||||||||||||||||||||||||||||
Credit quality | ||||||||||||||||||||||||||||||||||||||
Reservable utilized criticized exposure(2) | $ | 30,643 | $ | 32,816 | $ | 36,332 | $ | 37,613 | $ | 39,586 | ||||||||||||||||||||||||||||
15.83 | % | 16.74 | % | 18.45 | % | 18.50 | % | 18.53 | % | |||||||||||||||||||||||||||||
Nonperforming loans, leases and foreclosed properties(3) | $ | 8,321 | $ | 8,681 | $ | 9,414 | $ | 10,027 | $ | 10,814 | ||||||||||||||||||||||||||||
4.36 | % | 4.47 | % | 4.79 | % | 4.92 | % | 5.10 | % | |||||||||||||||||||||||||||||
Average deposit balances | ||||||||||||||||||||||||||||||||||||||
Interest-bearing | $ | 54,678 | $ | 55,354 | $ | 53,565 | $ | 54,195 | $ | 54,189 | ||||||||||||||||||||||||||||
Noninterest-bearing | 105,539 | 101,317 | 95,040 | 91,304 | 89,446 | |||||||||||||||||||||||||||||||||
Total | $ | 160,217 | $ | 156,671 | $ | 148,605 | $ | 145,499 | $ | 143,635 | ||||||||||||||||||||||||||||
(1) | Fully taxable-equivalent basis |
(2) | 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 reservable commercial utilized credit exposure, including loans and leases, standby letters of credit, financial guarantees, commercial letters of credit and bankers acceptances. |
(3) | Nonperforming loans, leases and foreclosed properties are presented on an end-of-period basis. The nonperforming ratio is calculated as nonperforming loans, leases and foreclosed properties 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. | 23 |
Bank of America Corporation and Subsidiaries
Global Banking & Markets Segment Results
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||
Net interest income(1) | $ | 2,038 | $ | 2,007 | $ | 1,901 | $ | 2,002 | $ | 2,170 | ||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||
Service charges | 475 | 501 | 459 | 468 | 463 | |||||||||||||||||||||||||
Investment and brokerage services | 677 | 563 | 581 | 676 | 623 | |||||||||||||||||||||||||
Investment banking income | 1,511 | 1,583 | 1,306 | 1,301 | 1,216 | |||||||||||||||||||||||||
Trading account profits | 2,620 | 962 | 2,453 | 1,202 | 5,072 | |||||||||||||||||||||||||
All other income (loss) | 566 | (128 | ) | 407 | 255 | 149 | ||||||||||||||||||||||||
Total noninterest income | 5,849 | 3,481 | 5,206 | 3,902 | 7,523 | |||||||||||||||||||||||||
Total revenue, net of interest expense | 7,887 | 5,488 | 7,107 | 5,904 | 9,693 | |||||||||||||||||||||||||
Provision for credit losses | (202 | ) | (112 | ) | (157 | ) | (133 | ) | 236 | |||||||||||||||||||||
Noninterest expense | 4,726 | 4,394 | 4,393 | 4,733 | 4,292 | |||||||||||||||||||||||||
Income before income taxes | 3,363 | 1,206 | 2,871 | 1,304 | 5,165 | |||||||||||||||||||||||||
Income tax expense(1) | 1,231 | 505 | 1,433 | 405 | 1,927 | |||||||||||||||||||||||||
Net income | $ | 2,132 | $ | 701 | $ | 1,438 | $ | 899 | $ | 3,238 | ||||||||||||||||||||
Return on average equity | 20.57 | % | 5.85 | % | 11.24 | % | 7.04 | % | 24.72 | % | ||||||||||||||||||||
Return on average economic capital(2) | 28.00 | 7.80 | 14.41 | 9.08 | 31.14 | |||||||||||||||||||||||||
Efficiency ratio(1) | 59.92 | 80.06 | 61.82 | 80.16 | 44.28 | |||||||||||||||||||||||||
Balance sheet | ||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||
Total trading-related assets (3) | $ | 455,932 | $ | 478,554 | $ | 497,896 | $ | 512,529 | $ | 508,914 | ||||||||||||||||||||
Total loans and leases | 103,704 | 100,606 | 98,874 | 95,839 | 99,034 | |||||||||||||||||||||||||
Total market-based earning assets | 467,042 | 475,021 | 494,772 | 521,010 | 527,316 | |||||||||||||||||||||||||
Total earning assets (4) | 573,505 | 584,632 | 590,503 | 613,044 | 625,339 | |||||||||||||||||||||||||
Total assets (4) | 708,231 | 738,036 | 743,041 | 769,285 | 776,584 | |||||||||||||||||||||||||
Total deposits | 112,028 | 114,942 | 106,472 | 112,565 | 103,634 | |||||||||||||||||||||||||
Allocated equity | 42,029 | 47,511 | 50,756 | 51,245 | 53,131 | |||||||||||||||||||||||||
Economic capital(5) | 31,197 | 36,810 | 40,237 | 40,705 | 42,470 | |||||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||||
Total trading-related assets (3) | $ | 455,889 | $ | 413,567 | $ | 508,577 | $ | 471,117 | $ | 440,479 | ||||||||||||||||||||
Total loans and leases | 105,651 | 99,964 | 99,525 | 95,756 | 95,580 | |||||||||||||||||||||||||
Total market-based earning assets | 465,609 | 416,174 | 500,664 | 463,069 | 440,304 | |||||||||||||||||||||||||
Total earning assets(4) | 563,921 | 510,358 | 599,139 | 552,556 | 535,770 | |||||||||||||||||||||||||
Total assets (4) | 698,399 | 651,638 | 746,777 | 705,911 | 685,445 | |||||||||||||||||||||||||
Total deposits | 115,212 | 110,971 | 109,601 | 105,678 | 104,700 | |||||||||||||||||||||||||
Trading-related assets (average) | ||||||||||||||||||||||||||||||
Trading account securities | $ | 206,177 | $ | 201,006 | $ | 201,494 | $ | 204,139 | $ | 203,996 | ||||||||||||||||||||
Reverse repurchases | 149,667 | 160,266 | 174,297 | 184,146 | 189,118 | |||||||||||||||||||||||||
Securities borrowed | 44,799 | 50,491 | 54,730 | 57,276 | 54,783 | |||||||||||||||||||||||||
Derivative assets | 55,289 | 66,791 | 67,375 | 66,968 | 61,017 | |||||||||||||||||||||||||
Total trading-related assets(3) | $ | 455,932 | $ | 478,554 | $ | 497,896 | $ | 512,529 | $ | 508,914 | ||||||||||||||||||||
(1) | Fully taxable-equivalent basis |
(2) | Return on average economic capital is calculated as net income, excluding cost of funds and earnings credit on intangibles, divided by average economic capital. |
(3) | Includes assets which are not considered earning assets (i.e. derivative assets). |
(4) | Total earning assets and total assets include asset allocations to match liabilities (i.e. deposits). |
(5) | Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights). |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 24 |
Bank of America Corporation and Subsidiaries
Global Banking & Markets Key Indicators
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||
Sales and trading revenue | ||||||||||||||||||||||||||||||||||||||
Fixed income, currency and commodities | $ | 3,646 | $ | 1,757 | $ | 3,477 | $ | 2,230 | $ | 5,487 | ||||||||||||||||||||||||||||
Equity income | 1,249 | 781 | 967 | 882 | 1,514 | |||||||||||||||||||||||||||||||||
Total sales and trading revenue | $ | 4,895 | $ | 2,538 | $ | 4,444 | $ | 3,112 | $ | 7,001 | ||||||||||||||||||||||||||||
Investment banking income | ||||||||||||||||||||||||||||||||||||||
Advisory(1) | $ | 319 | $ | 336 | $ | 273 | $ | 242 | $ | 167 | ||||||||||||||||||||||||||||
Debt issuance | 799 | 808 | 743 | 773 | 735 | |||||||||||||||||||||||||||||||||
Equity issuance | 393 | 439 | 290 | 286 | 314 | |||||||||||||||||||||||||||||||||
Total investment banking income | $ | 1,511 | $ | 1,583 | $ | 1,306 | $ | 1,301 | $ | 1,216 | ||||||||||||||||||||||||||||
Corporate Banking | ||||||||||||||||||||||||||||||||||||||
Business lending | $ | 841 | $ | 750 | $ | 778 | $ | 872 | $ | 874 | ||||||||||||||||||||||||||||
Treasury services | 640 | 617 | 579 | 619 | 602 | |||||||||||||||||||||||||||||||||
Total revenue, net of interest expense | $ | 1,481 | $ | 1,367 | $ | 1,357 | $ | 1,491 | $ | 1,476 | ||||||||||||||||||||||||||||
Global Corporate & Investment Banking Key Indicators | ||||||||||||||||||||||||||||||||||||||
Average deposit balances | ||||||||||||||||||||||||||||||||||||||
Interest-bearing | $ | 53,145 | $ | 59,068 | $ | 55,833 | $ | 55,109 | $ | 50,607 | ||||||||||||||||||||||||||||
Noninterest-bearing | 52,214 | 48,454 | 43,981 | 49,009 | 44,426 | |||||||||||||||||||||||||||||||||
Total average deposits | $ | 105,359 | $ | 107,522 | $ | 99,814 | $ | 104,118 | $ | 95,033 | ||||||||||||||||||||||||||||
Loan spread | 2.29 | % | 1.62 | % | 1.77 | % | 1.94 | % | 1.94 | % | ||||||||||||||||||||||||||||
Provision for credit losses | $ | (164 | ) | $ | (110 | ) | $ | (102 | ) | $ | (191 | ) | $ | 201 | ||||||||||||||||||||||||
Credit quality(2, 3) | ||||||||||||||||||||||||||||||||||||||
Reservable utilized criticized exposure | $ | 5,298 | $ | 5,924 | $ | 7,131 | $ | 7,290 | $ | 9,664 | ||||||||||||||||||||||||||||
4.87 | % | 5.67 | % | 6.95 | % | 7.29 | % | 9.69 | % | |||||||||||||||||||||||||||||
Nonperforming loans, leases and foreclosed properties | $ | 314 | $ | 645 | $ | 993 | $ | 905 | $ | 922 | ||||||||||||||||||||||||||||
0.35 | % | 0.76 | % | 1.19 | % | 1.13 | % | 1.16 | % | |||||||||||||||||||||||||||||
Average loans and leases by product | ||||||||||||||||||||||||||||||||||||||
U.S. commercial | $ | 33,704 | $ | 33,522 | $ | 32,681 | $ | 33,593 | $ | 36,178 | ||||||||||||||||||||||||||||
Commercial real estate | 82 | 24 | 26 | 31 | 36 | |||||||||||||||||||||||||||||||||
Commercial lease financing | 23,478 | 23,271 | 23,356 | 23,250 | 23,696 | |||||||||||||||||||||||||||||||||
Non-U.S. commercial | 30,220 | 26,550 | 24,650 | 22,710 | 21,905 | |||||||||||||||||||||||||||||||||
Other | 46 | 42 | 43 | 43 | 44 | |||||||||||||||||||||||||||||||||
Total average loans and leases | $ | 87,530 | $ | 83,409 | $ | 80,756 | $ | 79,627 | $ | 81,859 | ||||||||||||||||||||||||||||
(1) | Advisory includes fees on debt and equity advisory and mergers and acquisitions. |
(2) | 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 reservable commercial utilized credit exposure, including loans and leases, standby letters of credit, financial guarantees, commercial letters of credit and bankers’ acceptances. |
(3) | Nonperforming loans, leases and foreclosed properties are on an end-of-period basis and defined as nonperforming loans and leases plus foreclosed properties. The nonperforming ratio is nonperforming assets divided by commercial loans and leases plus commercial 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. | 25 |
Bank of America Corporation and Subsidiaries
Super Senior Collateralized Debt Obligation Exposure
(Dollars in millions)
March 31, 2011 | ||||||||||||||||||||
Subprime (1) | Retained Positions | Total Subprime | Non- Subprime (2) | Total | ||||||||||||||||
Unhedged | $ | 404 | $ | 101 | $ | 505 | $ | 483 | $ | 988 | ||||||||||
Hedged (3) | 679 | — | 679 | 229 | 908 | |||||||||||||||
Total | $ | 1,083 | $ | 101 | $ | 1,184 | $ | 712 | $ | 1,896 | ||||||||||
(1) | Classified as subprime when subprime consumer real estate loans make up at least 35 percent of the ultimate underlying collateral’s original net exposure value. |
(2) | Includes highly-rated collateralized loan obligations and commercial mortgage-backed securities super senior exposure. |
(3) | Hedged amounts are presented at carrying value before consideration of the insurance. |
Credit Default Swaps with Monoline Financial Guarantors
(Dollars in millions)
March 31, 2011 | ||||||||||||||||||||||
Super Senior CDOs | Other Guaranteed Positions | Total | ||||||||||||||||||||
Notional | $ | 3,225 | $ | 35,273 | $ | 38,498 | ||||||||||||||||
Mark-to-market or guarantor receivable | 2,693 | 5,623 | 8,316 | |||||||||||||||||||
Credit valuation adjustment | (2,444 | ) | (2,838 | ) | (5,282 | ) | ||||||||||||||||
Total | $ | 249 | $ | 2,785 | $ | 3,034 | ||||||||||||||||
Credit valuation adjustment % | 91 | % | 50 | % | 64 | % | ||||||||||||||||
Losses during the three months ended March 31, 2011 | $ | (276 | ) | $ | (131 | ) | $ | (407 | ) |
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. | 26 |
Bank of America Corporation and Subsidiaries
Investment Banking Product Rankings
Three Months Ended March 31, 2011 | ||||||||||||||||||||
Global | U.S. | |||||||||||||||||||
Product Ranking | Market Share | Product Ranking | Market Share | |||||||||||||||||
High-yield corporate debt | 3 | 10.3 | % | 2 | 11.7 | % | ||||||||||||||
Leveraged loans | 1 | 15.1 | 1 | 18.1 | ||||||||||||||||
Mortgage-backed securities | 3 | 9.4 | 2 | 11.3 | ||||||||||||||||
Asset-backed securities | 2 | 11.5 | 2 | 18.9 | ||||||||||||||||
Convertible debt | 8 | 4.0 | 5 | 6.4 | ||||||||||||||||
Common stock underwriting | 2 | 7.9 | 4 | 9.8 | ||||||||||||||||
Investment grade corporate debt | 2 | 6.9 | 2 | 12.8 | ||||||||||||||||
Syndicated loans | 2 | 9.4 | 2 | 17.9 | ||||||||||||||||
Net investment banking revenue | 2 | 7.9 | 2 | 12.3 | ||||||||||||||||
Announced mergers and acquisitions | 7 | 14.3 | 8 | 18.0 | ||||||||||||||||
Equity capital markets | 2 | 7.4 | 5 | 9.4 | ||||||||||||||||
Debt capital markets | 5 | 5.3 | 4 | 9.4 |
Source:Dealogic data as of April 4, 2011. Figures above include self-led transactions.
• | Rankings based on deal volumes except for investment banking revenue rankings which reflect fees. |
• | Debt capital markets excludes loans. |
• | 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 give full credit to all advisors advising either the target or acquiror. |
Highlights
Global top 3 rankings in: | ||
High-yield corporate debt | Common stock underwriting | |
Leveraged loans | Investment grade corporate debt | |
Mortgage-backed securities | Syndicated loans | |
Asset-backed securities | Equity capital markets | |
U.S. top 3 rankings in: | ||
High-yield corporate debt | Asset-backed securities | |
Leveraged loans | Investment grade corporate debt | |
Mortgage-backed securities | Syndicated loans |
Excluding self-mandated deals:
Global: #1 - Leveraged loans, investment grade corporate debt
Global: #2 - Mortgage-backed securities, asset-backed securities, common stock underwriting, syndicated loans, equity capital markets
Global: #3 - High-yield corporate debt
US: #1 - Leveraged loans, investment grade corporate debt
US: #2 - High-yield corporate debt, mortgage-backed securities, asset-backed securities, syndicated loans
US: #3 - Debt capital markets
This information is preliminary and based on company data available at the time of the presentation. | 27 |
Bank of America Corporation and Subsidiaries
Global Wealth & Investment Management Segment Results
(Dollars in millions, except as noted)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||||
Net interest income(1) | $ | 1,569 | $ | 1,425 | $ | 1,344 | $ | 1,442 | $ | 1,464 | ||||||||||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||||||||||
Investment and brokerage services | 2,377 | 2,265 | 2,089 | 2,194 | 2,106 | |||||||||||||||||||||||||||||||||||
All other income | 544 | 469 | 463 | 552 | 468 | |||||||||||||||||||||||||||||||||||
Total noninterest income | 2,921 | 2,734 | 2,552 | 2,746 | 2,574 | |||||||||||||||||||||||||||||||||||
Total revenue, net of interest expense | 4,490 | 4,159 | 3,896 | 4,188 | 4,038 | |||||||||||||||||||||||||||||||||||
Provision for credit losses | 46 | 155 | 128 | 121 | 242 | |||||||||||||||||||||||||||||||||||
Noninterest expense | 3,600 | 3,494 | 3,373 | 3,277 | 3,103 | |||||||||||||||||||||||||||||||||||
Income before income taxes | 844 | 510 | 395 | 790 | 693 | |||||||||||||||||||||||||||||||||||
Income tax expense(1) | 313 | 195 | 145 | 466 | 259 | |||||||||||||||||||||||||||||||||||
Net income | $ | 531 | $ | 315 | $ | 250 | $ | 324 | $ | 434 | ||||||||||||||||||||||||||||||
Net interest yield(1) | 2.34 | % | 2.14 | % | 2.21 | % | 2.45 | % | 2.60 | % | ||||||||||||||||||||||||||||||
Return on average equity | 12.01 | 6.84 | 5.50 | 7.15 | 9.87 | |||||||||||||||||||||||||||||||||||
Return on average economic capital(2) | 30.34 | 17.73 | 14.81 | 18.81 | 26.35 | |||||||||||||||||||||||||||||||||||
Efficiency ratio(1) | 80.18 | 84.03 | 86.57 | 78.24 | 76.86 | |||||||||||||||||||||||||||||||||||
Balance sheet | ||||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 100,851 | $ | 100,306 | $ | 99,103 | $ | 98,811 | $ | 98,841 | ||||||||||||||||||||||||||||||
Total earning assets(3) | 271,564 | 264,110 | 241,559 | 236,583 | 227,956 | |||||||||||||||||||||||||||||||||||
Total assets(3) | 291,907 | 284,881 | 262,053 | 257,198 | 249,799 | |||||||||||||||||||||||||||||||||||
Total deposits | 258,518 | 246,281 | 234,808 | 226,277 | 221,613 | |||||||||||||||||||||||||||||||||||
Allocated equity | 17,938 | 18,227 | 18,039 | 18,179 | 17,825 | |||||||||||||||||||||||||||||||||||
Economic capital(4) | 7,210 | 7,476 | 7,264 | 7,381 | 7,037 | |||||||||||||||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 101,286 | $ | 100,724 | $ | 99,511 | $ | 99,157 | $ | 98,343 | ||||||||||||||||||||||||||||||
Total earning assets(3) | 259,805 | 268,963 | 242,203 | 229,890 | 235,519 | |||||||||||||||||||||||||||||||||||
Total assets(3) | 280,524 | 289,954 | 263,322 | 251,022 | 257,299 | |||||||||||||||||||||||||||||||||||
Total deposits | 256,526 | 257,983 | 240,381 | 226,572 | 227,148 |
(1) | Fully taxable-equivalent basis |
(2) | Return on average economic capital is calculated as net income, excluding cost of funds and earnings credit on intangibles, divided by average economic capital. |
(3) | Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits). |
(4) | Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights). |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 28 |
Bank of America Corporation and Subsidiaries
Global Wealth & Investment Management - Key Indicators and Metrics
(Dollars in millions, except as noted)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||
Revenues | ||||||||||||||||||||
Merrill Lynch Global Wealth Management | $ | 3,540 | $ | 3,428 | $ | 3,178 | $ | 3,138 | $ | 2,988 | ||||||||||
U.S. Trust | 696 | 709 | 691 | 681 | 641 | |||||||||||||||
Retirement Services | 272 | 225 | 243 | 244 | 239 | |||||||||||||||
Other(1) | (18 | ) | (203 | ) | (216 | ) | 125 | 170 | ||||||||||||
Total revenues | $ | 4,490 | $ | 4,159 | $ | 3,896 | $ | 4,188 | $ | 4,038 | ||||||||||
Client Balances(2) | ||||||||||||||||||||
Client Balances by Business | ||||||||||||||||||||
Merrill Lynch Global Wealth Management | $ | 1,554,300 | $ | 1,515,903 | $ | 1,466,354 | $ | 1,402,554 | $ | 1,453,722 | ||||||||||
U.S. Trust | 345,086 | 340,334 | 334,142 | 327,335 | 351,525 | |||||||||||||||
Retirement Services | 255,046 | 246,775 | 234,249 | 224,930 | 233,304 | |||||||||||||||
Other (1, 3) | 71,759 | 78,275 | 86,199 | 92,227 | 199,738 | |||||||||||||||
Client Balances by Type | ||||||||||||||||||||
Assets under management(3) | $ | 664,466 | $ | 630,498 | $ | 611,461 | $ | 591,872 | $ | 721,022 | ||||||||||
Client brokerage assets | 1,087,097 | 1,077,049 | 1,055,384 | 1,010,751 | 1,062,292 | |||||||||||||||
Assets in custody | 116,816 | 115,033 | 114,207 | 118,694 | 129,484 | |||||||||||||||
Client deposits | 256,526 | 257,983 | 240,381 | 226,572 | 227,148 | |||||||||||||||
Loans and leases | 101,286 | 100,724 | 99,511 | 99,157 | 98,343 | |||||||||||||||
Total client balances | $ | 2,226,191 | $ | 2,181,287 | $ | 2,120,944 | $ | 2,047,046 | $ | 2,238,289 | ||||||||||
Assets Under Management Flows(3) | ||||||||||||||||||||
Liquidity assets under management(4) | $ | (6,659 | ) | $ | (8,050 | ) | $ | (6,599 | ) | $ | (9,788 | ) | $ | (17,278 | ) | |||||
Long-term assets under management(5) | 14,117 | 5,507 | 3,935 | 1,257 | 3,014 | |||||||||||||||
Total assets under management | $ | 7,458 | $ | (2,543 | ) | $ | (2,664 | ) | $ | (8,531 | ) | $ | (14,264 | ) | ||||||
Associates(6) | ||||||||||||||||||||
Number of Financial Advisors | 15,695 | 15,511 | 15,486 | 15,299 | 15,178 | |||||||||||||||
Total Wealth Advisors | 17,201 | 17,025 | 16,983 | 16,781 | 16,682 | |||||||||||||||
Total Client Facing Professionals | 20,273 | 20,069 | 20,014 | 19,745 | 19,573 | |||||||||||||||
Merrill Lynch Global Wealth Management Metrics | ||||||||||||||||||||
Financial Advisor Productivity(7) (in thousands) | $ | 931 | $ | 913 | $ | 846 | $ | 843 | $ | 808 | ||||||||||
U.S. Trust Metrics | ||||||||||||||||||||
Client Facing Professionals | 2,313 | 2,311 | 2,302 | 2,277 | 2,302 |
(1) | Other includes the results of BofA Global Capital Management (the former Columbia cash management business) and residual net interest income. |
(2) | During the first quarter of 2011, the Merrill Edge business was moved to Deposits along with historical results. |
(3) | Includes the Columbia Management long-term asset management business through the date of sale on May 1, 2010. |
(4) | 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 are less than one year. |
(5) | Assets under advisory and discretion of GWIM in which the duration of the investment strategy is longer than one year. |
(6) | Includes Merrill Edge® |
(7) | Financial Advisor Productivity is defined as annualized MLGWM total revenue divided by the total number of financial advisors (excluding Merrill Edge Financial Advisors). |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 29 |
Bank of America Corporation and Subsidiaries
All Other Results(1)
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||
Net interest income(2) | $ | 92 | $ | 76 | $ | (37 | ) | $ | 77 | $ | 41 | |||||||||
Noninterest income: | ||||||||||||||||||||
Equity investment income | 1,409 | 1,500 | 267 | 2,253 | 512 | |||||||||||||||
Gains on sales of debt securities | 468 | 858 | 794 | 14 | 648 | |||||||||||||||
All other income (loss) | (841 | ) | (1,756 | ) | (275 | ) | 782 | 126 | ||||||||||||
Total noninterest income | 1,036 | 602 | 786 | 3,049 | 1,286 | |||||||||||||||
Total revenue, net of interest expense | 1,128 | 678 | 749 | 3,126 | 1,327 | |||||||||||||||
Provision for credit losses | 1,799 | 1,838 | 328 | 1,249 | 1,218 | |||||||||||||||
Merger and restructuring charges | 202 | 370 | 421 | 508 | 521 | |||||||||||||||
All other noninterest expense | 1,286 | 508 | 137 | 599 | 1,207 | |||||||||||||||
Income (loss) before income taxes | (2,159 | ) | (2,038 | ) | (137 | ) | 770 | (1,619 | ) | |||||||||||
Income tax benefit(2) | (947 | ) | (2,406 | ) | (512 | ) | (354 | ) | (834 | ) | ||||||||||
Net income (loss) | $ | (1,212 | ) | $ | 368 | $ | 375 | $ | 1,124 | $ | (785 | ) | ||||||||
Balance sheet | ||||||||||||||||||||
Average | ||||||||||||||||||||
Total loans and leases | $ | 258,350 | $ | 252,180 | $ | 238,441 | $ | 257,322 | $ | 256,156 | ||||||||||
Total assets(3) | 206,910 | 207,401 | 218,798 | 303,430 | 320,546 | |||||||||||||||
Total deposits | 48,608 | 44,841 | 44,870 | 64,708 | 70,858 | |||||||||||||||
Allocated equity | 60,749 | 50,731 | 35,972 | 29,090 | 19,807 | |||||||||||||||
Period end | ||||||||||||||||||||
Total loans and leases | $ | 256,930 | $ | 255,213 | $ | 241,799 | $ | 254,515 | $ | 255,869 | ||||||||||
Total assets(3) | 160,505 | 186,468 | 204,895 | 256,763 | 237,177 | |||||||||||||||
Total deposits | 34,817 | 38,748 | 37,653 | 57,425 | 56,855 |
(1) | All Other consists of equity investment activities including Global Principal Investments, Corporate Investments prior to its sale in the first quarter of 2010 and Strategic Investments (including the Corporation’s equity investment interest in BlackRock, Inc.), the residual impact of cost allocation processes, merger and restructuring charges, intersegment eliminations, the results of First Republic Bank prior to its sale on July 1, 2010, fair value adjustments related to certain structured notes and the results of certain businesses that are expected to be or have been sold or are in the process of being liquidated. All Other also includes certain amounts associated with asset and liability management activities, including the residual impact of funds transfer pricing allocation methodologies, amounts associated with the change in the value of derivatives used as economic hedges of interest rate and foreign exchange rate fluctuations, foreign exchange rate fluctuations related to revaluation of non-U.S.-denominated debt issuances, certain gains (losses) on sales of whole mortgage loans, gains (losses) on sales of debt securities and impairment on debt securities. All Other also includes adjustments to noninterest income and income tax expense to remove the fully taxable-equivalent basis impact of items (primarily low-income housing tax credits) that have been grossed up within noninterest income to a fully taxable-equivalent basis amount in the business segments. |
(2) | Fully taxable-equivalent basis |
(3) | Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) of $668.4 billion, $661.1 billion, $634.3 billion, $611.7 billion and $589.4 billion for the first quarter of 2011, and the fourth, third, second and first quarters of 2010, and $661.6 billion, $647.8 billion, $621.5 billion, $604.0 billion and $612.1 billion for the first quarter of 2011, and the fourth, third, second and first quarters of 2010. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 30 |
Bank of America Corporation and Subsidiaries
Equity Investments
(Dollars in millions)
Global Principal Investments Exposures | Equity Investment Income | |||||||||||||||||||
March 31, 2011 | December 31, 2010 | |||||||||||||||||||
Book Value | Unfunded Commitments | Total | Total | First Quarter 2011 | ||||||||||||||||
Global Principal Investments: | ||||||||||||||||||||
Private Equity Investments | $ | 5,008 | $ | 186 | $ | 5,194 | $ | 4,988 | $ | 1,203 | ||||||||||
Global Real Estate | 1,492 | 212 | 1,704 | 1,995 | 74 | |||||||||||||||
Global Strategic Capital | 2,469 | 464 | 2,933 | 3,122 | 92 | |||||||||||||||
Legacy/Other Investments | 2,252 | 404 | 2,656 | 2,935 | (4 | ) | ||||||||||||||
Total Global Principal Investments | $ | 11,221 | $ | 1,266 | $ | 12,487 | $ | 13,040 | $ | 1,365 | ||||||||||
Components of Equity Investment Income
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||
Global Principal Investments | $ | 1,365 | $ | 867 | $ | 46 | $ | 814 | $ | 577 | ||||||||||
Corporate Investments | 14 | 6 | 6 | 6 | (311 | ) | ||||||||||||||
Strategic and other investments(1) | 30 | 627 | 215 | 1,433 | 246 | |||||||||||||||
Total equity investment income included in All Other | 1,409 | 1,500 | 267 | 2,253 | 512 | |||||||||||||||
Total equity investment income included in the business segments | 66 | 12 | 90 | 513 | 113 | |||||||||||||||
Total consolidated equity investment income | $ | 1,475 | $ | 1,512 | $ | 357 | $ | 2,766 | $ | 625 | ||||||||||
(1) | Includes the Corporation’s equity investment interest in BlackRock. |
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 31 |
Bank of America Corporation and Subsidiaries
Outstanding Loans and Leases
(Dollars in millions)
March 31 2011 | December 31 2010 | Increase (Decrease) | ||||||||||
Consumer | ||||||||||||
Residential mortgage(1) | $ | 261,934 | $ | 257,973 | $ | 3,961 | ||||||
Home equity | 133,629 | 137,981 | (4,352 | ) | ||||||||
Discontinued real estate(2) | 12,694 | 13,108 | (414 | ) | ||||||||
U.S. credit card | 107,107 | 113,785 | (6,678 | ) | ||||||||
Non-U.S. credit card | 27,235 | 27,465 | (230 | ) | ||||||||
Direct/Indirect consumer (3) | 89,444 | 90,308 | (864 | ) | ||||||||
Other consumer(4) | 2,754 | 2,830 | (76 | ) | ||||||||
Total consumer | 634,797 | 643,450 | (8,653 | ) | ||||||||
Commercial | ||||||||||||
U.S. commercial(5) | 188,449 | 190,305 | (1,856 | ) | ||||||||
Commercial real estate(6) | 47,008 | 49,393 | (2,385 | ) | ||||||||
Commercial lease financing | 21,563 | 21,942 | (379 | ) | ||||||||
Non-U.S. commercial | 36,921 | 32,029 | 4,892 | |||||||||
Total commercial loans excluding loans measured at fair value | 293,941 | 293,669 | 272 | |||||||||
Commercial loans measured at fair value(7) | 3,687 | 3,321 | 366 | |||||||||
Total commercial | 297,628 | 296,990 | 638 | |||||||||
Total loans and leases | $ | 932,425 | $ | 940,440 | $ | (8,015 | ) | |||||
(1) | Includes non-U.S. residential mortgages of $92 million and $90 million at March 31, 2011 and December 31, 2010. |
(2) | Includes $11.4 billion and $11.8 billion of pay option loans, and $1.3 billion and $1.3 billion of subprime loans at March 31, 2011 and December 31, 2010. The Corporation no longer originates these products. |
(3) | Includes dealer financial services loans of $41.0 billion and $42.9 billion, consumer lending of $11.5 billion and $12.9 billion, U.S. securities-based lending margin loans of $19.7 billion and $16.6 billion, student loans of $6.6 billion and $6.8 billion, non-U.S. consumer loans of $8.5 billion and $8.0 billion, and other consumer loans of $2.1 billion and $3.1 billion at March 31, 2011 and December 31, 2010. |
(4) | Includes consumer finance loans of $1.9 billion and $1.9 billion, other non-U.S. consumer loans of $818 million and $803 million, and consumer overdrafts of $69 million and $88 million at March 31, 2011 and December 31, 2010. |
(5) | Includes U.S. small business commercial loans, including card related products, of $14.3 billion and $14.7 billion at March 31, 2011 and December 31, 2010. |
(6) | Includes U.S. commercial real estate loans of $44.7 billion and $46.9 billion, and non-U.S. commercial real estate loans of $2.4 billion and $2.5 billion at March 31, 2011 and December 31, 2010. |
(7) | Certain commercial loans are accounted for under the fair value option and include U.S. commercial loans of $1.4 billion and $1.6 billion, non-U.S. commercial loans of $2.3 billion and $1.7 billion, and commercial real estate loans of $68 million and $79 million at March 31, 2011 and December 31, 2010. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 32 |
Bank of America Corporation and Subsidiaries
Quarterly Average Loans and Leases by Business Segment
(Dollars in millions)
First Quarter 2011 | ||||||||||||||||||||||||||||||||||||
Total Corporation | Deposits | Global Card Services | Consumer Real Estate Services | Global Commercial Banking | Global Banking & Markets | GWIM | All Other | |||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 262,049 | $ | 183 | $ | — | $ | — | $ | 283 | $ | 99 | $ | 35,752 | $ | 225,732 | ||||||||||||||||||||
Home equity | 136,089 | 131 | — | 119,123 | 1,013 | — | 15,686 | 136 | ||||||||||||||||||||||||||||
Discontinued real estate | 12,899 | — | — | — | — | — | — | 12,899 | ||||||||||||||||||||||||||||
U.S. credit card | 109,941 | — | 109,941 | — | — | — | — | — | ||||||||||||||||||||||||||||
Non-U.S. credit card | 27,633 | — | 27,633 | — | — | — | — | — | ||||||||||||||||||||||||||||
Direct/Indirect consumer | 90,097 | 56 | 12,744 | 97 | 41,976 | 371 | 28,110 | 6,743 | ||||||||||||||||||||||||||||
Other consumer | 2,753 | 69 | 771 | (15 | ) | — | 5 | 17 | 1,906 | |||||||||||||||||||||||||||
Total consumer | 641,461 | 439 | 151,089 | 119,205 | 43,272 | 475 | 79,565 | 247,416 | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||
U.S. commercial | 191,353 | 198 | 10,521 | 1,349 | 104,703 | 45,511 | 19,355 | 9,716 | ||||||||||||||||||||||||||||
Commercial real estate | 48,359 | 2 | 257 | 5 | 42,796 | 934 | 1,731 | 2,634 | ||||||||||||||||||||||||||||
Commercial lease financing | 21,634 | — | — | — | — | 23,478 | 34 | (1,878 | ) | |||||||||||||||||||||||||||
Non-U.S. commercial | 36,159 | — | 1,018 | 1 | 1,206 | 33,306 | 166 | 462 | ||||||||||||||||||||||||||||
Total commercial | 297,505 | 200 | 11,796 | 1,355 | 148,705 | 103,229 | 21,286 | 10,934 | ||||||||||||||||||||||||||||
Total loans and leases | $ | 938,966 | $ | 639 | $ | 162,885 | $ | 120,560 | $ | 191,977 | $ | 103,704 | $ | 100,851 | $ | 258,350 | ||||||||||||||||||||
Fourth Quarter 2010 | ||||||||||||||||||||||||||||||||||||
Total Corporation | Deposits | Global Card Services | Consumer Real Estate Services | Global Commercial Banking | Global Banking & Markets | GWIM | All Other | |||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 254,051 | $ | 160 | $ | — | $ | — | $ | 282 | $ | 104 | $ | 35,327 | $ | 218,178 | ||||||||||||||||||||
Home equity | 139,772 | 131 | — | 122,521 | 974 | — | 16,004 | 142 | ||||||||||||||||||||||||||||
Discontinued real estate | 13,297 | — | — | — | — | — | — | 13,297 | ||||||||||||||||||||||||||||
U.S. credit card | 112,673 | — | 112,673 | — | — | — | — | — | ||||||||||||||||||||||||||||
Non-U.S. credit card | 27,457 | — | 27,457 | — | — | — | — | — | ||||||||||||||||||||||||||||
Direct/Indirect consumer | 91,549 | 60 | 14,197 | 107 | 43,711 | 302 | 26,224 | 6,948 | ||||||||||||||||||||||||||||
Other consumer | 2,796 | 27 | 785 | (356 | ) | — | 5 | 18 | 2,317 | |||||||||||||||||||||||||||
Total consumer | 641,595 | 378 | 155,112 | 122,272 | 44,967 | 411 | 77,573 | 240,882 | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||
U.S. commercial | 193,608 | 231 | 10,730 | 2,656 | 102,914 | 46,386 | 20,711 | 9,980 | ||||||||||||||||||||||||||||
Commercial real estate | 51,617 | 2 | 234 | 6 | 45,853 | 952 | 1,830 | 2,740 | ||||||||||||||||||||||||||||
Commercial lease financing | 21,363 | — | — | — | 1 | 23,271 | 35 | (1,944 | ) | |||||||||||||||||||||||||||
Non-U.S. commercial | 32,431 | 2 | 1,080 | — | 1,084 | 29,586 | 157 | 522 | ||||||||||||||||||||||||||||
Total commercial | 299,019 | 235 | 12,044 | 2,662 | 149,852 | 100,195 | 22,733 | 11,298 | ||||||||||||||||||||||||||||
Total loans and leases | $ | 940,614 | $ | 613 | $ | 167,156 | $ | 124,934 | $ | 194,819 | $ | 100,606 | $ | 100,306 | $ | 252,180 | ||||||||||||||||||||
First Quarter 2010 | ||||||||||||||||||||||||||||||||||||
Total Corporation | Deposits | Global Card Services | Consumer Real Estate Services | Global Commercial Banking | Global Banking & Markets | GWIM | All Other | |||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 243,833 | $ | (5 | ) | $ | — | $ | — | $ | 323 | $ | 545 | $ | 35,346 | $ | 207,624 | |||||||||||||||||||
Home equity | 152,536 | 123 | — | 133,018 | 980 | — | 16,692 | 1,723 | ||||||||||||||||||||||||||||
Discontinued real estate | 14,433 | — | — | — | — | — | — | 14,433 | ||||||||||||||||||||||||||||
U.S. credit card | 125,353 | — | 125,348 | — | — | — | — | 5 | ||||||||||||||||||||||||||||
Non-U.S. credit card | 29,872 | — | 29,878 | — | — | — | — | (6 | ) | |||||||||||||||||||||||||||
Direct/Indirect consumer | 100,920 | 74 | 19,846 | 87 | 45,400 | 67 | 23,595 | 11,851 | ||||||||||||||||||||||||||||
Other consumer | 3,002 | 119 | 657 | (790 | ) | — | 7 | 23 | 2,986 | |||||||||||||||||||||||||||
Total consumer | 669,949 | 311 | 175,729 | 132,315 | 46,703 | 619 | 75,656 | 238,616 | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||
U.S. commercial | 202,662 | 376 | 12,086 | 1,421 | 108,081 | 48,087 | 20,925 | 11,686 | ||||||||||||||||||||||||||||
Commercial real estate | 68,526 | 6 | 178 | 8 | 57,917 | 1,079 | 2,085 | 7,253 | ||||||||||||||||||||||||||||
Commercial lease financing | 21,675 | — | — | — | 1 | 23,696 | 31 | (2,053 | ) | |||||||||||||||||||||||||||
Non-U.S. commercial | 28,803 | 2 | 1,314 | — | 1,136 | 25,553 | 144 | 654 | ||||||||||||||||||||||||||||
Total commercial | 321,666 | 384 | 13,578 | 1,429 | 167,135 | 98,415 | 23,185 | 17,540 | ||||||||||||||||||||||||||||
Total loans and leases | $ | 991,615 | $ | 695 | $ | 189,307 | $ | 133,744 | $ | 213,838 | $ | 99,034 | $ | 98,841 | $ | 256,156 | ||||||||||||||||||||
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 33 |
Bank of America Corporation and Subsidiaries
Commercial Credit Exposure by Industry(1, 2, 3)
(Dollars in millions)
Commercial Utilized | Total Commercial Committed | |||||||||||||||||||||||
March 31 2011 | December 31 2010 | Increase (Decrease) | March 31 2011 | December 31 2010 | Increase (Decrease) | |||||||||||||||||||
Diversified financials | $ | 54,085 | $ | 55,196 | $ | (1,111 | ) | $ | 81,676 | $ | 83,248 | $ | (1,572 | ) | ||||||||||
Real estate(4) | 56,084 | 58,531 | (2,447 | ) | 69,273 | 72,004 | (2,731 | ) | ||||||||||||||||
Government and public education | 42,292 | 44,131 | (1,839 | ) | 58,174 | 59,594 | (1,420 | ) | ||||||||||||||||
Healthcare equipment and services | 29,227 | 30,420 | (1,193 | ) | 46,124 | 47,569 | (1,445 | ) | ||||||||||||||||
Capital goods | 22,151 | 21,940 | 211 | 45,833 | 46,087 | (254 | ) | |||||||||||||||||
Retailing | 24,994 | 24,660 | 334 | 44,506 | 43,950 | 556 | ||||||||||||||||||
Consumer services | 23,261 | 24,759 | (1,498 | ) | 38,441 | 39,694 | (1,253 | ) | ||||||||||||||||
Materials | 16,162 | 15,873 | 289 | 34,277 | 33,046 | 1,231 | ||||||||||||||||||
Banks | 29,454 | 26,831 | 2,623 | 32,894 | 29,667 | 3,227 | ||||||||||||||||||
Commercial services and supplies | 21,013 | 20,056 | 957 | 31,139 | 30,517 | 622 | ||||||||||||||||||
Food, beverage and tobacco | 14,789 | 14,777 | 12 | 28,550 | 28,126 | 424 | ||||||||||||||||||
Energy | 10,426 | 9,765 | 661 | 27,471 | 26,328 | 1,143 | ||||||||||||||||||
Utilities | 7,355 | 6,990 | 365 | 26,325 | 24,207 | 2,118 | ||||||||||||||||||
Insurance, including monolines | 16,673 | 17,263 | (590 | ) | 23,483 | 24,417 | (934 | ) | ||||||||||||||||
Individuals and trusts | 16,935 | 18,278 | (1,343 | ) | 21,802 | 22,899 | (1,097 | ) | ||||||||||||||||
Media | 10,517 | 11,611 | (1,094 | ) | 19,944 | 20,619 | (675 | ) | ||||||||||||||||
Transportation | 11,721 | 12,070 | (349 | ) | 17,894 | 18,436 | (542 | ) | ||||||||||||||||
Pharmaceuticals and biotechnology | 4,569 | 3,859 | 710 | 12,063 | 11,009 | 1,054 | ||||||||||||||||||
Technology hardware and equipment | 4,270 | 4,373 | (103 | ) | 10,798 | 10,932 | (134 | ) | ||||||||||||||||
Religious and social organizations | 8,013 | 8,409 | (396 | ) | 10,384 | 10,823 | (439 | ) | ||||||||||||||||
Telecommunication services | 3,717 | 3,823 | (106 | ) | 9,527 | 9,321 | 206 | |||||||||||||||||
Software and services | 3,358 | 3,837 | (479 | ) | 8,882 | 9,531 | (649 | ) | ||||||||||||||||
Consumer durables and apparel | 4,247 | 4,297 | (50 | ) | 8,599 | 8,836 | (237 | ) | ||||||||||||||||
Food and staples retailing | 3,824 | 3,222 | 602 | 6,940 | 6,161 | 779 | ||||||||||||||||||
Automobiles and components | 2,256 | 2,090 | 166 | 5,905 | 5,941 | (36 | ) | |||||||||||||||||
Other | 7,556 | 13,361 | (5,805 | ) | 11,122 | 17,133 | (6,011 | ) | ||||||||||||||||
Total commercial credit exposure by industry | $ | 448,949 | $ | 460,422 | $ | (11,473 | ) | $ | 732,026 | $ | 740,095 | $ | (8,069 | ) | ||||||||||
Net credit default protection purchased on total commitments(5) | $ | (19,179 | ) | $ | (20,118 | ) |
(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 reported on a mark-to-market basis and have been reduced by the amount of cash collateral applied of $57.7 billion and $58.3 billion at March 31, 2011 and December 31, 2010. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $14.9 billion and $17.7 billion which consists primarily of other marketable securities at March 31, 2011 and December 31, 2010. |
(2) | Total commercial utilized and total commercial committed exposure includes loans and letters of credit measured at fair value and are comprised of loans outstanding of $3.7 billion and $3.3 billion and issued letters of credit at notional value of $1.4 billion at both March 31, 2011 and December 31, 2010. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $27.0 billion and $25.9 billion at March 31, 2011 and December 31, 2010. |
(3) | Includes U.S. small business commercial exposure. |
(4) | Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based on the borrowers’ or counterparties’ primary business activity using operating cash flows and primary source of repayment as key factors. |
(5) | Represents net notional credit protection purchased. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 34 |
Bank of America Corporation and Subsidiaries
Net Credit Default Protection by Maturity Profile (1)
March 31 2011 | December 31 2010 | |||||||||||||||
Less than or equal to one year | 13 | % | 14 | % | ||||||||||||
Greater than one year and less than or equal to five years | 78 | 80 | ||||||||||||||
Greater than five years | 9 | 6 | ||||||||||||||
Total net credit default protection | 100 | % | 100 | % |
(1) | To mitigate the cost of purchasing credit protection, credit exposure can be added by selling credit protection. The distribution of maturities for net credit default protection purchased is shown above. |
Net Credit Default Protection by Credit Exposure Debt Rating(1, 2)
(Dollars in millions)
March 31, 2011 | December 31, 2010 | |||||||||||||||||||||||
Ratings(3) | Net Notional | Percent | Net Notional | Percent | ||||||||||||||||||||
AA | $ | (223 | ) | 1.2 | % | $ | (188 | ) | 0.9 | % | ||||||||||||||
A | (6,967 | ) | 36.3 | (6,485 | ) | 32.2 | ||||||||||||||||||
BBB | (7,105 | ) | 37.0 | (7,731 | ) | 38.4 | ||||||||||||||||||
BB | (1,871 | ) | 9.8 | (2,106 | ) | 10.5 | ||||||||||||||||||
B | (1,231 | ) | 6.4 | (1,260 | ) | 6.3 | ||||||||||||||||||
CCC and below | (756 | ) | 3.9 | (762 | ) | 3.8 | ||||||||||||||||||
NR(4) | (1,026 | ) | 5.4 | (1,586 | ) | 7.9 | ||||||||||||||||||
Total net credit default protection | $ | (19,179 | ) | 100.0 | % | $ | (20,118 | ) | 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) | The Corporation considers ratings of BBB- or higher to meet the definition of investment grade. |
(4) | In addition to names which have not been rated, “NR” includes $(921) million and $(1.5) billion in net credit default swap index positions at March 31, 2011 and December 31, 2010. While index positions are principally investment grade, credit default swaps indices include names in and across each of the ratings categories. |
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
Selected Emerging Markets(1)
(Dollars in millions)
Loans and Leases, and Loan Commitments | Other Financing (2) | Derivative Assets(3) | Securities / Other Investments (4) | Total Cross–border Exposure(5) | Local Country Exposure Net of Local Liabilities(6) | Total Emerging Markets Exposure at March 31, 2011 | Increase (Decrease) from December 31, 2010 | |||||||||||||||||||||||||
Region/Country | ||||||||||||||||||||||||||||||||
Asia Pacific | ||||||||||||||||||||||||||||||||
China(7) | $ | 2,044 | $ | 864 | $ | 659 | $ | 22,587 | $ | 26,154 | $ | — | $ | 26,154 | $ | 2,226 | ||||||||||||||||
India | 3,461 | 1,716 | 554 | 2,657 | 8,388 | 428 | 8,816 | 548 | ||||||||||||||||||||||||
South Korea | 395 | 1,408 | 557 | 2,582 | 4,942 | 2,322 | 7,264 | 1,985 | ||||||||||||||||||||||||
Singapore | 473 | 67 | 557 | 1,398 | 2,495 | — | 2,495 | (51 | ) | |||||||||||||||||||||||
Taiwan | 387 | 122 | 66 | 765 | 1,340 | 1,006 | 2,346 | 491 | ||||||||||||||||||||||||
Hong Kong | 454 | 310 | 198 | 1,084 | 2,046 | — | 2,046 | 4 | ||||||||||||||||||||||||
Thailand | 20 | 14 | 19 | 471 | 524 | 108 | 632 | (37 | ) | |||||||||||||||||||||||
Indonesia | 53 | 19 | 13 | 443 | 528 | — | 528 | 379 | ||||||||||||||||||||||||
Other Asia Pacific (8) | 256 | 41 | 194 | 354 | 845 | — | 845 | 280 | ||||||||||||||||||||||||
Total Asia Pacific | 7,543 | 4,561 | 2,817 | 32,341 | 47,262 | 3,864 | 51,126 | 5,825 | ||||||||||||||||||||||||
Latin America | ||||||||||||||||||||||||||||||||
Brazil | 1,006 | 321 | 1,174 | 3,378 | 5,879 | 1,876 | 7,755 | 1,949 | ||||||||||||||||||||||||
Mexico | 1,863 | 286 | 266 | 882 | 3,297 | — | 3,297 | (1,088 | ) | |||||||||||||||||||||||
Chile | 988 | 134 | 302 | 49 | 1,473 | 39 | 1,512 | (14 | ) | |||||||||||||||||||||||
Colombia | 136 | 468 | 11 | 4 | 619 | — | 619 | (58 | ) | |||||||||||||||||||||||
Other Latin America (8) | 266 | 329 | 22 | 376 | 993 | 150 | 1,143 | (235 | ) | |||||||||||||||||||||||
Total Latin America | 4,259 | 1,538 | 1,775 | 4,689 | 12,261 | 2,065 | 14,326 | 554 | ||||||||||||||||||||||||
Middle East and Africa | ||||||||||||||||||||||||||||||||
United Arab Emirates | 937 | 4 | 133 | 52 | 1,126 | — | 1,126 | (50 | ) | |||||||||||||||||||||||
Bahrain | 79 | 1 | 4 | 1,000 | 1,084 | 2 | 1,086 | (74 | ) | |||||||||||||||||||||||
Other Middle East and Africa (8) | 769 | 90 | 206 | 245 | 1,310 | 26 | 1,336 | (16 | ) | |||||||||||||||||||||||
Total Middle East and Africa | 1,785 | 95 | 343 | 1,297 | 3,520 | 28 | 3,548 | (140 | ) | |||||||||||||||||||||||
Central and Eastern Europe | ||||||||||||||||||||||||||||||||
Turkey | 371 | 31 | 20 | 218 | 640 | 98 | 738 | 238 | ||||||||||||||||||||||||
Russian Federation | 216 | 93 | 32 | 139 | 480 | 22 | 502 | (34 | ) | |||||||||||||||||||||||
Other Central and Eastern Europe (8) | 120 | 184 | 360 | 827 | 1,491 | — | 1,491 | 238 | ||||||||||||||||||||||||
Total Central and Eastern Europe | 707 | 308 | 412 | 1,184 | 2,611 | 120 | 2,731 | 442 | ||||||||||||||||||||||||
Total emerging market exposure | $ | 14,294 | $ | 6,502 | $ | 5,347 | $ | 39,511 | $ | 65,654 | $ | 6,077 | $ | 71,731 | $ | 6,681 |
(1) | There is no generally accepted definition of emerging markets. The definition that we use includes all countries in Asia Pacific excluding Japan, Australia and New Zealand; all countries in Latin America excluding Cayman Islands and Bermuda; all countries in Middle East and Africa; and all countries in Central and Eastern Europe. At March 31, 2011 and December 31, 2010, there was $368 million and $460 million in emerging market exposure accounted for under the fair value option. |
(2) | Includes acceptances, due froms, standby letters of credit, commercial letters of credit and formal guarantees. |
(3) | Derivative assets are carried at fair value and have been reduced by the amount of cash collateral applied of $881 million and $1.2 billion at March 31, 2011 and December 31, 2010. At March 31, 2011 and December 31, 2010, there were $306 million and $408 million of other marketable securities collateralizing derivative assets. |
(4) | Generally, cross-border resale agreements are presented based on the domicile of the counterparty, consistent with Federal Financial Institutions Examination Council (FFIEC) reporting requirements. Cross-border resale agreements where the underlying securities are U.S. Treasury securities, in which case the domicile is the U.S., are excluded from this presentation. |
(5) | Cross-border exposure includes amounts payable to the Corporation by borrowers or counterparties with a country of residence other than the one in which the credit is booked, regardless of the currency in which the claim is denominated, consistent with FFIEC reporting requirements. |
(6) | Local country exposure includes amounts payable to the Corporation by borrowers with a country of residence in which the credit is booked, regardless of the currency in which the claim is denominated. Local funding or liabilities are subtracted from local exposures consistent with FFIEC reporting requirements. Total amount of available local liabilities funding local country exposure at March 31, 2011 was $18.4 billion compared to $15.7 billion at December 31, 2010. Local liabilities at March 31, 2011 in Asia Pacific, Latin America, and Middle East and Africa were $16.3 billion, $1.9 billion and $263 million, respectively, of which $7.4 billion was in Singapore, $2.5 billion in Hong Kong, $2.1 billion in China, $1.9 billion in Mexico, $1.5 billion in India, $983 million in Korea, and $713 million in Taiwan. There were no other countries with available local liabilities funding local country exposure greater than $500 million. |
(7) | Securities/Other Investments includes an investment of $21.0 billion in China Construction Bank. |
(8) | No country included in Other Asia Pacific, Other Latin America, Other Middle East and Africa, or Other Central and Eastern Europe had total non-U.S. exposure of more than $500 million. |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 36 |
Bank of America Corporation and Subsidiaries
Nonperforming Loans, Leases and Foreclosed Properties
(Dollars in millions)
March 31 2011 | December 31 2010 | September 30 2010 | June 30 2010 | March 31 2010 | ||||||||||||||||
Residential mortgage | $ | 17,466 | $ | 17,691 | $ | 18,291 | $ | 18,283 | $ | 17,763 | ||||||||||
Home equity | 2,559 | 2,694 | 2,702 | 2,951 | 3,335 | |||||||||||||||
Discontinued real estate | 327 | 331 | 297 | 293 | 279 | |||||||||||||||
Direct/Indirect consumer | 68 | 90 | 83 | 85 | 91 | |||||||||||||||
Other consumer | 36 | 48 | 56 | 72 | 89 | |||||||||||||||
Total consumer | 20,456 | 20,854 | 21,429 | 21,684 | 21,557 | |||||||||||||||
U.S. commercial(1) | 3,056 | 3,453 | 3,894 | 4,217 | 4,407 | |||||||||||||||
Commercial real estate | 5,695 | 5,829 | 6,376 | 6,704 | 7,177 | |||||||||||||||
Commercial lease financing | 53 | 117 | 123 | 140 | 147 | |||||||||||||||
Non-U.S. commercial | 155 | 233 | 272 | 130 | 150 | |||||||||||||||
8,959 | 9,632 | 10,665 | 11,191 | 11,881 | ||||||||||||||||
U.S. small business commercial | 172 | 204 | 202 | 222 | 179 | |||||||||||||||
Total commercial | 9,131 | 9,836 | 10,867 | 11,413 | 12,060 | |||||||||||||||
Total nonperforming loans and leases | 29,587 | 30,690 | 32,296 | 33,097 | 33,617 | |||||||||||||||
Foreclosed properties | 2,056 | 1,974 | 2,260 | 2,501 | 2,308 | |||||||||||||||
Total nonperforming loans, leases and foreclosed properties (2, 3, 4) | $ | 31,643 | $ | 32,664 | $ | 34,556 | $ | 35,598 | $ | 35,925 | ||||||||||
Federal Housing Administration insured loans past due 90 days or more and still accruing | $ | 19,754 | $ | 16,768 | $ | 16,427 | $ | 15,338 | $ | 13,589 | ||||||||||
Other loans past due 90 days or more and still accruing | 5,129 | 5,611 | 5,781 | 6,448 | 7,851 | |||||||||||||||
Total loans past due 90 days or more and still accruing (3, 5) | $ | 24,883 | $ | 22,379 | $ | 22,208 | $ | 21,786 | $ | 21,440 | ||||||||||
Nonperforming loans, leases and foreclosed properties/Total assets (6) | 1.39 | % | 1.44 | % | 1.48 | % | 1.51 | % | 1.53 | % | ||||||||||
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties (6) | 3.40 | 3.48 | 3.71 | 3.73 | 3.69 | |||||||||||||||
Nonperforming loans and leases/Total loans and leases (6) | 3.19 | 3.27 | 3.47 | 3.48 | 3.46 | |||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||
Allowance for loan and lease losses(7) | $ | 39,843 | $ | 41,885 | $ | 43,581 | $ | 45,255 | $ | 46,835 | ||||||||||
Reserve for unfunded lending commitments | 961 | 1,188 | 1,294 | 1,413 | 1,521 | |||||||||||||||
Total allowance for credit losses | $ | 40,804 | $ | 43,073 | $ | 44,875 | $ | 46,668 | $ | 48,356 | ||||||||||
Allowance for loan and lease losses/Total loans and leases(6) | 4.29 | % | 4.47 | % | 4.69 | % | 4.75 | % | 4.82 | % | ||||||||||
Allowance for loan and lease losses/Total nonperforming loans and leases | 135 | 136 | 135 | 137 | 139 | |||||||||||||||
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total nonperforming loans and leases | 108 | 116 | 118 | 121 | 124 | |||||||||||||||
Commercial utilized reservable criticized exposure(8) | $ | 39,435 | $ | 42,621 | $ | 47,698 | $ | 50,319 | $ | 55,322 | ||||||||||
Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure (8) | 10.94 | % | 11.80 | % | 13.06 | % | 13.48 | % | 14.43 | % | ||||||||||
Total commercial utilized criticized exposure/Commercial utilized exposure (8) | 11.73 | 12.43 | 13.61 | 14.26 | 15.49 |
(1) | Excludes U.S. small business commercial loans. |
(2) | Balances do not include past due consumer credit card, business card loans, consumer loans secured by real estate where repayments are insured by the Federal Housing Administration and in general, consumer 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 written down to fair value upon acquisition and accrete interest income over the remaining life of the loan. |
43 | 43 | 43 | 43 | 43 | ||||||||||||||||
(4) Balances do not include the following: | March 31 2011 | December 31 2010 | September 30 2010 | June 30 2010 | March 31 2010 | |||||||||||||||
Nonperforming loans held-for-sale | $ | 2,421 | $ | 2,540 | $ | 3,654 | $ | 4,044 | $ | 4,195 | ||||||||||
Nonperforming loans accounted for under the fair value option | 15 | 30 | 15 | 15 | 70 | |||||||||||||||
Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010 | 456 | 426 | 378 | 403 | 301 | |||||||||||||||
(5) Balances do not include the following: | ||||||||||||||||||||
Loans accounted for under the fair value option past due 90 days or more and still accruing | $ | — | $ | — | $ | — | $ | — | $ | 49 | ||||||||||
Loans held-for-sale past due 90 days or more and still accruing | 48 | 60 | 79 | 158 | 241 |
(6) | Ratios do not include loans accounted for under the fair value option of $3.7 billion, $3.3 billion, $3.7 billion, $3.9 billion and $4.1 billion at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. |
(7) | Balances include the allowance for loan and lease losses on purchased credit-impaired loans of $8.0 billion, $6.4 billion, $5.6 billion, $5.3 billion and $5.1 billion at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. |
(8) | Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable exposure excludes loans held-for-sale exposure accounted for under the fair value option and other nonreservable exposure both of which are included in total commercial utilized exposure. |
Loans are classified as U.S. or non-U.S. based upon the domicile of the borrower.
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 37 |
Bank of America Corporation and Subsidiaries
Nonperforming Loans, Leases and Foreclosed Properties Activity(1)
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||
Nonperforming Consumer Loans: | ||||||||||||||||||||
Balance, beginning of period | $ | 20,854 | $ | 21,429 | $ | 21,684 | $ | 21,557 | $ | 20,839 | ||||||||||
Additions to nonperforming loans: | ||||||||||||||||||||
Consolidation of VIEs | — | — | — | — | 448 | |||||||||||||||
New nonaccrual loans | 4,127 | 4,568 | 4,551 | 5,409 | 6,608 | |||||||||||||||
Reductions in nonperforming loans: | ||||||||||||||||||||
Paydowns and payoffs | (779 | ) | (739 | ) | (917 | ) | (528 | ) | (625 | ) | ||||||||||
Returns to performing status(2) | (1,340 | ) | (1,841 | ) | (1,469 | ) | (1,816 | ) | (2,521 | ) | ||||||||||
Charge-offs (3) | (2,020 | ) | (2,261 | ) | (1,987 | ) | (2,607 | ) | (2,917 | ) | ||||||||||
Transfers to foreclosed properties | (386 | ) | (302 | ) | (433 | ) | (331 | ) | (275 | ) | ||||||||||
Total net additions to (reductions in) nonperforming loans | (398 | ) | (575 | ) | (255 | ) | 127 | 718 | ||||||||||||
Total nonperforming consumer loans, end of period | 20,456 | 20,854 | 21,429 | 21,684 | 21,557 | |||||||||||||||
Foreclosed properties | 1,331 | 1,249 | 1,485 | 1,744 | 1,388 | |||||||||||||||
Total nonperforming consumer loans and foreclosed properties, end of period | $ | 21,787 | $ | 22,103 | $ | 22,914 | $ | 23,428 | $ | 22,945 | ||||||||||
Nonperforming Commercial Loans and Leases(4): | ||||||||||||||||||||
Balance, beginning of period | $ | 9,836 | $ | 10,867 | $ | 11,413 | $ | 12,060 | $ | 12,703 | ||||||||||
Additions to nonperforming loans and leases: | ||||||||||||||||||||
New nonaccrual loans and leases | 1,299 | 1,820 | 1,852 | 2,256 | 1,881 | |||||||||||||||
Advances | 67 | 102 | 83 | 62 | 83 | |||||||||||||||
Reductions in nonperforming loans and leases: | ||||||||||||||||||||
Paydowns and payoffs | (764 | ) | (1,113 | ) | (906 | ) | (1,148 | ) | (771 | ) | ||||||||||
Sales | (247 | ) | (228 | ) | (187 | ) | (256 | ) | (170 | ) | ||||||||||
Return to performing status(5) | (320 | ) | (465 | ) | (415 | ) | (404 | ) | (323 | ) | ||||||||||
Charge-offs(6) | (488 | ) | (767 | ) | (628 | ) | (870 | ) | (956 | ) | ||||||||||
Transfers to foreclosed properties | (200 | ) | (304 | ) | (217 | ) | (205 | ) | (319 | ) | ||||||||||
Transfers to loans held-for-sale | (52 | ) | (76 | ) | (128 | ) | (82 | ) | (68 | ) | ||||||||||
Total net reductions in nonperforming loans and leases | (705 | ) | (1,031 | ) | (546 | ) | (647 | ) | (643 | ) | ||||||||||
Total nonperforming loans and leases, end of period | 9,131 | 9,836 | 10,867 | 11,413 | 12,060 | |||||||||||||||
Foreclosed properties | 725 | 725 | 775 | 757 | 920 | |||||||||||||||
Total nonperforming commercial loans, leases and foreclosed properties, end of period | $ | 9,856 | $ | 10,561 | $ | 11,642 | $ | 12,170 | $ | 12,980 | ||||||||||
(1) | For amounts excluded from nonperforming loans, leases and foreclosed properties, see footnotes to Nonperforming Loans, Leases and Foreclosed Properties table on page 37. |
(2) | Consumer loans 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 restructure 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 generally is not to classify consumer credit card and consumer loans not secured by real estate as nonperforming; therefore, the charge-offs on these loans have no impact on nonperforming activity and therefore are excluded from this table. |
(4) | Includes U.S. small business commercial activity. |
(5) | Commercial loans and leases may be restored 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. |
(6) | Business card loans are not classified as nonperforming; therefore, the charge-offs on these loans have no impact on nonperforming activity. |
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
Quarterly Net Charge-offs and Net Charge-off Ratios(1)
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||||||||||||||||||||||
Net Charge-offs | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||
Residential mortgage | $ | 905 | 1.40 | % | $ | 970 | 1.51 | % | $ | 660 | 1.10 | % | $ | 971 | 1.57 | % | $ | 1,069 | 1.78 | % | ||||||||||||||||||||
Home equity | 1,179 | 3.51 | 1,271 | 3.61 | 1,372 | 3.80 | 1,741 | 4.71 | 2,397 | 6.37 | ||||||||||||||||||||||||||||||
Discontinued real estate | 20 | 0.61 | 11 | 0.35 | 17 | 0.48 | 19 | 0.54 | 21 | 0.60 | ||||||||||||||||||||||||||||||
U.S. credit card | 2,274 | 8.39 | 2,572 | 9.05 | 2,975 | 10.24 | 3,517 | 11.88 | 3,963 | 12.82 | ||||||||||||||||||||||||||||||
Non-U.S. credit card | 402 | 5.91 | 339 | 4.90 | 295 | 4.32 | 942 | 13.64 | 631 | 8.57 | ||||||||||||||||||||||||||||||
Direct/Indirect consumer | 525 | 2.36 | 641 | 2.78 | 707 | 2.93 | 879 | 3.58 | 1,109 | 4.46 | ||||||||||||||||||||||||||||||
Other consumer | 40 | 5.93 | 50 | 6.96 | 80 | 10.68 | 73 | 10.01 | 58 | 7.80 | ||||||||||||||||||||||||||||||
Total consumer | 5,345 | 3.38 | 5,854 | 3.62 | 6,106 | 3.81 | 8,142 | 4.96 | 9,248 | 5.60 | ||||||||||||||||||||||||||||||
U.S. commercial(2) | (21 | ) | (0.05 | ) | 210 | 0.47 | 206 | 0.47 | 179 | 0.41 | 286 | 0.63 | ||||||||||||||||||||||||||||
Commercial real estate | 288 | 2.42 | 347 | 2.67 | 410 | 2.93 | 645 | 4.03 | 615 | 3.64 | ||||||||||||||||||||||||||||||
Commercial lease financing | 1 | 0.02 | 20 | 0.38 | 19 | 0.34 | (3 | ) | (0.06 | ) | 21 | 0.40 | ||||||||||||||||||||||||||||
Non-U.S. commercial | 103 | 1.22 | 8 | 0.10 | 12 | 0.17 | 66 | 0.98 | 25 | 0.37 | ||||||||||||||||||||||||||||||
371 | 0.54 | 585 | 0.83 | 647 | 0.91 | 887 | 1.23 | 947 | 1.28 | |||||||||||||||||||||||||||||||
U.S. small business commercial | 312 | 8.68 | 344 | 9.13 | 444 | 11.38 | 528 | 12.94 | 602 | 14.21 | ||||||||||||||||||||||||||||||
Total commercial | 683 | 0.94 | 929 | 1.25 | 1,091 | 1.46 | 1,415 | 1.86 | 1,549 | 1.98 | ||||||||||||||||||||||||||||||
Total net charge-offs | $ | 6,028 | 2.61 | $ | 6,783 | 2.87 | $ | 7,197 | 3.07 | $ | 9,557 | 3.98 | $ | 10,797 | 4.44 | |||||||||||||||||||||||||
By Business Segment | ||||||||||||||||||||||||||||||||||||||||
Deposits | $ | 34 | 21.34 | % | $ | 40 | 25.64 | % | $ | 70 | 39.43 | % | $ | 66 | 35.64 | % | $ | 43 | 25.26 | % | ||||||||||||||||||||
Global Card Services | 3,343 | 8.32 | 3,693 | 8.76 | 4,232 | 9.81 | 5,674 | 12.82 | 6,011 | 12.88 | ||||||||||||||||||||||||||||||
Consumer Real Estate Services | 1,114 | 3.75 | 1,183 | 3.76 | 1,323 | 4.11 | 1,664 | 5.11 | 2,317 | 7.03 | ||||||||||||||||||||||||||||||
Global Commercial Banking | 513 | 1.08 | 639 | 1.30 | 728 | 1.45 | 958 | 1.87 | 1,076 | 2.04 | ||||||||||||||||||||||||||||||
Global Banking & Markets | (3 | ) | (0.01 | ) | 25 | 0.10 | 52 | 0.22 | 87 | 0.38 | 143 | 0.61 | ||||||||||||||||||||||||||||
Global Wealth & Investment Management | 88 | 0.36 | 131 | 0.52 | 112 | 0.45 | 115 | 0.47 | 119 | 0.49 | ||||||||||||||||||||||||||||||
All Other | 939 | 1.47 | 1,072 | 1.69 | 680 | 1.13 | 993 | 1.55 | 1,088 | 1.72 | ||||||||||||||||||||||||||||||
Total net charge-offs | $ | 6,028 | 2.61 | $ | 6,783 | 2.87 | $ | 7,197 | 3.07 | $ | 9,557 | 3.98 | $ | 10,797 | 4.44 | |||||||||||||||||||||||||
(1) | Net charge-off/loss 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. |
(2) | Excludes U.S. small business commercial loans. |
Loans are classified as U.S. or non-U.S. based upon the domicile of the borrower.
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
Allocation of the Allowance for Credit Losses by Product Type
(Dollars in millions)
March 31, 2011 | December 31, 2010 | March 31, 2010 | ||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | Amount | Percent of Total | Percent of Loans and Leases Outstanding (1) | Amount | Percent of Total | Percent of Loans and Leases Outstanding (1) | Amount | Percent of Total | Percent of Loans and Leases Outstanding (1) | |||||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 5,369 | 13.48 | % | 2.05 | % | $ | 5,082 | 12.14 | % | 1.97 | % | $ | 4,960 | 10.59 | % | 2.02 | % | ||||||||||||||||||||||||||||||
Home equity | 12,857 | 32.27 | 9.62 | 12,887 | 30.77 | 9.34 | 12,133 | 25.91 | 8.09 | |||||||||||||||||||||||||||||||||||||||
Discontinued real estate | 1,871 | 4.69 | 14.74 | 1,283 | 3.06 | 9.79 | 878 | 1.87 | 6.18 | |||||||||||||||||||||||||||||||||||||||
U.S. credit card | 9,100 | 22.84 | 8.50 | 10,876 | 25.97 | 9.56 | 13,703 | 29.26 | 11.34 | |||||||||||||||||||||||||||||||||||||||
Non-U.S.credit card | 2,069 | 5.19 | 7.60 | 2,045 | 4.88 | 7.45 | 2,394 | 5.11 | 8.32 | |||||||||||||||||||||||||||||||||||||||
Direct/Indirect consumer | 1,939 | 4.87 | 2.17 | 2,381 | 5.68 | 2.64 | 3,395 | 7.25 | 3.42 | |||||||||||||||||||||||||||||||||||||||
Other consumer | 163 | 0.41 | 5.92 | 161 | 0.38 | 5.67 | 191 | 0.41 | 6.35 | |||||||||||||||||||||||||||||||||||||||
Total consumer | 33,368 | 83.75 | 5.26 | 34,715 | 82.88 | 5.40 | 37,654 | 80.40 | 5.70 | |||||||||||||||||||||||||||||||||||||||
U.S. commercial(2) | 3,156 | 7.92 | 1.67 | 3,576 | 8.54 | 1.88 | 4,956 | 10.58 | 2.53 | |||||||||||||||||||||||||||||||||||||||
Commercial real estate | 2,904 | 7.29 | 6.18 | 3,137 | 7.49 | 6.35 | 3,569 | 7.62 | 5.36 | |||||||||||||||||||||||||||||||||||||||
Commercial lease financing | 124 | 0.31 | 0.57 | 126 | 0.30 | 0.57 | 278 | 0.59 | 1.30 | |||||||||||||||||||||||||||||||||||||||
Non-U.S.commercial | 291 | 0.73 | 0.79 | 331 | 0.79 | 1.03 | 378 | 0.81 | 1.41 | |||||||||||||||||||||||||||||||||||||||
Total commercial (3) | 6,475 | 16.25 | 2.20 | 7,170 | 17.12 | 2.44 | 9,181 | 19.60 | 2.95 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | 39,843 | 100.00 | % | 4.29 | 41,885 | 100.00 | % | 4.47 | 46,835 | 100.00 | % | 4.82 | ||||||||||||||||||||||||||||||||||||
Reserve for unfunded lending commitments | 961 | 1,188 | 1,521 | |||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses (4) | $ | 40,804 | $ | 43,073 | $ | 48,356 | ||||||||||||||||||||||||||||||||||||||||||
(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 for each loan and lease category. Loans accounted for under the fair value option include U.S. commercial loans of $1.4 billion, $1.6 billion and $2.5 billion, non-U.S. commercial loans of $2.3 billion, $1.7 billion and $1.5 billion, and commercial real estate loans of $68 million, $79 million and $101 million at March 31, 2011, December 31, 2010 and March 31, 2010, respectively. |
(2) | Includes allowance for U.S. small business commercial loans of $1.3 billion, $1.5 billion and $2.1 billion at March 31, 2011, December 31, 2010 and March 31, 2010, respectively. |
(3) | Includes allowance for loan and lease losses for impaired commercial loans of $996 million, $1.1 billion and $1.5 billion at March 31, 2011, December 31, 2010 and March 31, 2010, respectively. |
(4) | Includes $8.0 billion, $6.4 billion and $5.1 billion of allowance for credit losses related to purchased credit-impaired loans at March 31, 2011, December 31, 2010 and March 31, 2010, 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. | 40 |
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 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. 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 evaluates 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 measure. Return on average tangible common shareholders’ equity measures the Corporation’s earnings contribution as a percentage of common shareholders’ equity plus any Common Equivalent Securities 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 average shareholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. The tangible common equity ratio represents common shareholders’ equity plus any Common Equivalent Securities less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. The tangible equity ratio represents total shareholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities 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 ending common shareholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by ending common shares outstanding. These measures are used to evaluate the Corporation’s use of equity (i.e., capital). 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 certain presentations, earnings and diluted earnings per common share, the efficiency ratio, return on average assets, return on common shareholders’ equity, return on average tangible common shareholders’ equity and return on average tangible shareholders’ equity are calculated excluding the impact of goodwill impairment charges of $2.0 billion and $10.4 billion recorded in the fourth and third quarters of 2010. Accordingly, these are non-GAAP measures.
See the tables below and on page 42 for reconciliations of these non-GAAP measures with financial measures defined by GAAP for the three months ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010. The Corporation believes the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate supplemental financial data differently.
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis |
| |||||||||||||||||||
Net interest income | $ | 12,179 | $ | 12,439 | $ | 12,435 | $ | 12,900 | $ | 13,749 | ||||||||||
Fully taxable-equivalent adjustment | 218 | 270 | 282 | 297 | 321 | |||||||||||||||
Net interest income on a fully taxable-equivalent basis | $ | 12,397 | $ | 12,709 | $ | 12,717 | $ | 13,197 | $ | 14,070 | ||||||||||
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 | $ | 26,877 | $ | 22,398 | $ | 26,700 | $ | 29,153 | $ | 31,969 | ||||||||||
Fully taxable-equivalent adjustment | 218 | 270 | 282 | 297 | 321 | |||||||||||||||
Total revenue, net of interest expense on a fully taxable-equivalent basis | $ | 27,095 | $ | 22,668 | $ | 26,982 | $ | 29,450 | $ | 32,290 | ||||||||||
Reconciliation of total noninterest expense to total noninterest expense, excluding goodwill impairment charges |
| |||||||||||||||||||
Total noninterest expense | $ | 20,283 | $ | 20,864 | $ | 27,216 | $ | 17,253 | $ | 17,775 | ||||||||||
Goodwill impairment charges | — | (2,000 | ) | (10,400 | ) | — | — | |||||||||||||
Total noninterest expense, excluding goodwill impairment charges | $ | 20,283 | $ | 18,864 | $ | 16,816 | $ | 17,253 | $ | 17,775 | ||||||||||
Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis |
| |||||||||||||||||||
Income tax expense (benefit) | $ | 731 | $ | (2,351 | ) | $ | 1,387 | $ | 672 | $ | 1,207 | |||||||||
Fully taxable-equivalent adjustment | 218 | 270 | 282 | 297 | 321 | |||||||||||||||
Income tax expense (benefit) on a fully taxable-equivalent basis | $ | 949 | $ | (2,081 | ) | $ | 1,669 | $ | 969 | $ | 1,528 | |||||||||
Reconciliation of net income (loss) to net income, excluding goodwill impairment charges |
| |||||||||||||||||||
Net income (loss) | $ | 2,049 | $ | (1,244 | ) | $ | (7,299 | ) | $ | 3,123 | $ | 3,182 | ||||||||
Goodwill impairment charges | — | 2,000 | 10,400 | — | — | |||||||||||||||
Net income, excluding goodwill impairment charges | $ | 2,049 | $ | 756 | $ | 3,101 | $ | 3,123 | $ | 3,182 | ||||||||||
Reconciliation of net income (loss) applicable to common shareholders to net income applicable to common shareholders, excluding goodwill impairment charges | ||||||||||||||||||||
Net income (loss) applicable to common shareholders | $ | 1,739 | $ | (1,565 | ) | $ | (7,647 | ) | $ | 2,783 | $ | 2,834 | ||||||||
Goodwill impairment charges | — | 2,000 | 10,400 | — | — | |||||||||||||||
Net income applicable to common shareholders, excluding goodwill impairment charges | $ | 1,739 | $ | 435 | $ | 2,753 | $ | 2,783 | $ | 2,834 | ||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. | 41 |
Exhibit A: Non-GAAP Reconciliations - continued
Bank of America Corporation and Subsidiaries
Reconciliations to GAAP Financial Measures
(Dollars in millions)
First Quarter 2011 | Fourth Quarter 2010 | Third Quarter 2010 | Second Quarter 2010 | First Quarter 2010 | ||||||||||||||||
Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity |
| |||||||||||||||||||
Common shareholders’ equity | $ | 214,206 | $ | 218,728 | $ | 215,911 | $ | 215,468 | $ | 200,399 | ||||||||||
Common Equivalent Securities | — | — | — | — | 11,760 | |||||||||||||||
Goodwill | (73,922 | ) | (75,584 | ) | (82,484 | ) | (86,099 | ) | (86,353 | ) | ||||||||||
Intangible assets (excluding mortgage servicing rights) | (9,769 | ) | (10,211 | ) | (10,629 | ) | (11,216 | ) | (11,906 | ) | ||||||||||
Related deferred tax liabilities | 3,035 | 3,121 | 3,214 | 3,395 | 3,497 | |||||||||||||||
Tangible common shareholders’ equity | $ | 133,550 | $ | 136,054 | $ | 126,012 | $ | 121,548 | $ | 117,397 | ||||||||||
Reconciliation of average shareholders’ equity to average tangible shareholders’ equity |
| |||||||||||||||||||
Shareholders’ equity | $ | 230,769 | $ | 235,525 | $ | 233,978 | $ | 233,461 | $ | 229,910 | ||||||||||
Goodwill | (73,922 | ) | (75,584 | ) | (82,484 | ) | (86,099 | ) | (86,353 | ) | ||||||||||
Intangible assets (excluding mortgage servicing rights) | (9,769 | ) | (10,211 | ) | (10,629 | ) | (11,216 | ) | (11,906 | ) | ||||||||||
Related deferred tax liabilities | 3,035 | 3,121 | 3,214 | 3,395 | 3,497 | |||||||||||||||
Tangible shareholders’ equity | $ | 150,113 | $ | 152,851 | $ | 144,079 | $ | 139,541 | $ | 135,148 | ||||||||||
Reconciliation of period end common shareholders’ equity to period end tangible common shareholders’ equity |
| |||||||||||||||||||
Common shareholders’ equity | $ | 214,314 | $ | 211,686 | $ | 212,391 | $ | 215,181 | $ | 211,859 | ||||||||||
Goodwill | (73,869 | ) | (73,861 | ) | (75,602 | ) | (85,801 | ) | (86,305 | ) | ||||||||||
Intangible assets (excluding mortgage servicing rights) | (9,560 | ) | (9,923 | ) | (10,402 | ) | (10,796 | ) | (11,548 | ) | ||||||||||
Related deferred tax liabilities | 2,933 | 3,036 | 3,123 | 3,215 | 3,396 | |||||||||||||||
Tangible common shareholders’ equity | $ | 133,818 | $ | 130,938 | $ | 129,510 | $ | 121,799 | $ | 117,402 | ||||||||||
Reconciliation of period end shareholders’ equity to period end tangible shareholders’ equity |
| |||||||||||||||||||
Shareholders’ equity | $ | 230,876 | $ | 228,248 | $ | 230,495 | $ | 233,174 | $ | 229,823 | ||||||||||
Goodwill | (73,869 | ) | (73,861 | ) | (75,602 | ) | (85,801 | ) | (86,305 | ) | ||||||||||
Intangible assets (excluding mortgage servicing rights) | (9,560 | ) | (9,923 | ) | (10,402 | ) | (10,796 | ) | (11,548 | ) | ||||||||||
Related deferred tax liabilities | 2,933 | 3,036 | 3,123 | 3,215 | 3,396 | |||||||||||||||
Tangible shareholders’ equity | $ | 150,380 | $ | 147,500 | $ | 147,614 | $ | 139,792 | $ | 135,366 | ||||||||||
Reconciliation of period end assets to period end tangible assets |
| |||||||||||||||||||
Assets | $ | 2,274,532 | $ | 2,264,909 | $ | 2,339,660 | $ | 2,368,384 | $ | 2,344,634 | ||||||||||
Goodwill | (73,869 | ) | (73,861 | ) | (75,602 | ) | (85,801 | ) | (86,305 | ) | ||||||||||
Intangible assets (excluding mortgage servicing rights) | (9,560 | ) | (9,923 | ) | (10,402 | ) | (10,796 | ) | (11,548 | ) | ||||||||||
Related deferred tax liabilities | 2,933 | 3,036 | 3,123 | 3,215 | 3,396 | |||||||||||||||
Tangible assets | $ | 2,194,036 | $ | 2,184,161 | $ | 2,256,779 | $ | 2,275,002 | $ | 2,250,177 | ||||||||||
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 |
Appendix: Selected Slides from the
First Quarter 2011 Earnings Release Presentation
This information is preliminary and based on company data available at the time of the presentation. | 43 |
Key Takeaways from 1Q11 Results
Franchise Growth
Key hires in Capital Markets and Corporate & Investment Banking
Consumer banking transformation on schedule
Increasing financial advisors and small business bankers
Credit Quality
Net losses improved $755M from 4Q10 to lowest level since 2Q08
Consumer 30+ performing delinquencies, excluding FHA, improved 12% from 4Q10
Nonperforming loans, leases and foreclosed properties improved 3% from 4Q10
Loan loss reserves remain strong, covering current period annualized losses 1.6 times
Capital & Liquidity
Tangible Common Equity of $133.8B, or $13.21 per share
Tier 1 Common Equity ratio up slightly to 8.64%
Global excess liquidity grew to $386B
Long-term debt levels were reduced $14.0B
Customer Demand
Core commercial loans increased slightly
Deposit balances grew to $1.02T
Consumer spending up 6% over last year
Long-term AUM flows of client assets into wealth management of $14.1B
Simplification Progress
Sale of Balboa on target
Reduced capital markets legacy assets by 13% in the quarter
Reduced mortgage exposure to monolines with key settlement
Balance Sheet Highlights
($ in billions except per share amounts)
March 31, 2011
March 31, 2010
Increase
(Decrease)
Total assets $ 2,274.5 $ 2,344.6 $ (70.1)
Total risk-weighted assets 1,433.4 1,519.7 (86.3)
Total deposits 1,020.2 976.1 44.1
Long-term debt 434.4 511.7 (77.3)
Tangible common shareholders’ equity 1 133.8 117.4 16.4
Tier 1 common equity 123.9 115.5 8.4
Global excess liquidity sources 386 269 117
Tier 1 common equity ratio 8.64 % 7.60 % 104 bps
Tangible book value per share 1 $ 13.21 $ 11.70 $ 1.51
Asset Quality
Allowance for loan and lease losses $ 39.8 $ 46.8 $ (7.0)
as a % of loans and leases 2 4.29 % 4.82 % (53) bps
coverage for annualized net losses 1.63 x 1.07 x 0.56 x
Nonperforming loans, leases
and foreclosed properties $ 31.6 $ 35.9 $ (4.3)
1 Represents non-GAAP financial measure
2 Excluded FVO loans
Business Segment Highlights
Deposits
• Net income of $355M in 1Q11 improved from a loss of $190M in 4Q10 due to higher litigation costs in the prior quarter
• Solid deposit growth with disciplined pricing
– Rates paid on deposits improved 4 bps down to 32 bps
• Improvement in account closures and new accounts reflect continued focus on quality relationships and retention
• Early test market results are very positive in our consumer banking transformation
– Launched Customer Solutions in test markets allowing sales efforts to focus on the value of relationships with retail customers
– Platinum PrivilegesTM was rolled out in test markets focused on our Preferred Customer segment
Global Card Services
• Net income of $1.7B increased 15% over 4Q10 as credit improvements more than offset lower net interest income from continued loan balance declines and lower yields as well as seasonal decline in retail volume
• Total retail volume of debit and credit transactions was down seasonally from 4Q10, but increased 6% from 1Q10
• U.S. credit card net losses improved for the 6th consecutive quarter as delinquencies near all-time lows
• Payment rate on U.S. credit card improved for the 7th straight quarter
• New U.S. credit card accounts continue to grow and are up 26% from 4Q10
Business Segment Highlights (cont’d)
Global Wealth & Investment Management
• Net income of $531M improved $216M from 4Q10 driven by a record quarter in fee income, higher net interest income and lower credit costs offset somewhat by higher advisor compensation expenses
• Client balances grew by $45B driven by market and long-term AUM flows of $14B
• Experienced the 7th consecutive quarter of increasing client-facing associates driven by 184 new Financial Advisors
Global Commercial Banking
• Net income of $923M was down $127M from 4Q10 driven by lower credit reserve reductions
• Continue to see moderate deposit growth across most commercial segments as customers remain liquid
• Loan pipeline is robust in upper-end middle market and real estate, and soft but promising growth across other segments
– Average commercial and industrial loans grew 2% from 4Q10
• Middle market revolver utilization rates improved to 35%
• Asset quality solidly improved
Business Segment Highlights (cont’d)
Global Banking & Markets
• Net income of $2.1B improved $1.4B from 4Q10 on higher sales and trading results as well as strong investment banking fees and corporate banking revenue somewhat offset by continued investment in the franchise
• Sales and trading was up significantly from 4Q10 but below the record quarter of 1Q10
– Results include DVA losses of $357M in 1Q11 compared to gains of $31M in 4Q10 and gains of $169M in 1Q10
• Strong investment banking fees were in line with 4Q10 and up 24% compared to 1Q10
– Significant deals in Asia and Emerging Markets helped diversify revenue outside the U.S.
• Investment banking pipeline looks strong and ahead of last year at this time
• Legacy capital markets assets were reduced 13% from 4Q10, generally at levels at or above their valuations
• Increase in corporate loan balances, primarily non-U.S., reflecting growth in international trade finance and core loans
Business Segment Highlights (cont’d)
Consumer Real Estate Services (previously Home Loans & Insurance)
• A net loss of $2.4B improved from a loss of $5.0B in 4Q10, but legacy costs continue to impact results and originations have slowed
• 1Q11 includes roughly $3.0B in costs for representations and warranties, litigation, and mortgage-related assessments and waivers
• This quarter, for the first time, we have segregated the results of our Legacy Asset Servicing unit from the rest of our Home Loans & Insurance operations
– Legacy Asset Servicing recorded a loss of $2.5B while Home Loans & Insurance reported a small profit
• We continue to make solid progress in addressing legacy issues
– Comprehensive action plan reached and identified in a consent order outlining remediation measures on foreclosure process
– Restarted foreclosures in 4Q10 with the progress mostly in non-judicial states
– Announced agreement with monoline insurer, Assured Guaranty, fully addressing their outstanding and potential repurchase claims representing original collateral exposure of $35.8B and principal at-risk of $10.9B
Focus on Costs
$ in billions 1Q11 4Q10
Total noninterest expense $ 20.3 $ 20.9
Selected large items
Mortgage-related assessments and waivers $ 0.9 $ 0.2
Retirement eligible stock-based compensation expense 1.0 -
Litigation expense 0.9 1.5
Merger & restructuring charges 0.2 0.4
Goodwill impairment charge—2.0
Total selected large items(3.0)(4.1)
Noninterest expense adjusted for select items (1) $ 17.3 $ 16.8
1Q11 vs. 4Q10 expense, adjusted for large items, reflects slightly higher costs for increased revenue in our capital markets and wealth management businesses
Launching company-wide efficiency initiative
Goal is to increase earnings by reducing expenses, increasing revenue, enhancing risk control and making changes to allow us to better execute and serve customers while delivering more value for shareholders
Tangible results on expense levels expected to benefit financial performance in second half of 2012
1 Represents non-GAAP financial measure
Significant Items in 1Q11
Significant items in 1Q11 earnings include ($ in billions, except EPS)
Pre-tax
Approximate EPS Impact 1
Revenue
Representations and warranties provision $ (1.0) $ (0.06)
Negative fair value adjustment on structured liabilities (0.6) (0.04)
Equity investment gains 1.1 0.07
Debt securities gains 0.5 0.03
Trading DVA loss (0.4) (0.02)
Expense
Litigation expense (0.9) (0.06)
Mortgage-related assessments and waivers (0.9) (0.06)
Retirement eligible stock-based compensation expense (1.0) (0.06)
Merger and restructuring charges (0.2) (0.01)
Provision
Loan loss reserve reduction 2.2 0.14
1 Reflects estimated diluted EPS impact
1Q11 Loan Activity 1
Total Loans
(end of period loans, $ in billions)
$2.9 $940.4
$6.0 $932.4
$4.9
12/31 Loans
Loan-runoff
Net charge-offs
Net increase in loans
3/31 Loans
Addition to loan balance Subtraction from loan balance
Commercial excl. CRE
(end of period loans, $ in billions)
$3.5
$247.6 $0.1 $0.4 $250.6
12/31 Loans Loan-runoff Net charge-offs Net increase in loans 3/31 Loans
Addition to loan balance Subtraction from loan balance
Total Consumer
(end of period loans, $ in billions)
$1.4 $643.4
$4.7 $5.3 $634.8
12/31 Loans Loan-runoff Net charge- offs Net increase in loans 3/31 Loans
Addition to loan balance Subtraction from loan balance
Commercial Real Estate (CRE)
(end of period loans, $ in billions)
$49.4 $0.1 $0.3 $2.0 $47.0
12/31 Loans Loan-runoff Net charge- offs Net decrease in loans 3/31 Loans
Addition to loan balance Subtraction from loan balance
1 Loan run-off excludes the impact of net charge-offs as total net charge-offs are shown as a separate column.
Card Revenue
$3,000
$2,500
$2,127
$1,976 $2,023 $1,982
$2,000 $1,828
millions in $ $1,500
$1,000
$500
$0
1Q10 2Q10 3Q10 4Q10 1Q11
Commentary vs. 4Q10
• Card revenue decreased $299M primarily as a result of seasonally lower retail volume
– Retail spending volume (debit and credit) decreased 6% from 4Q10, but is up 6% from 1Q10
• Continue to see signals of increasing consumer confidence and improving economy
– Unemployment rate declined to less than 9%
– In U.S. card, retail spend per average active account has increased 13% from 1Q10
– In U.S. card, payment rate, or the rate at which customers are paying off balances, improved for the seventh straight quarter
• Focus remains on growth with lower risk customers and continued expansion of existing customer relationships
• New U.S. consumer card accounts opened in the quarter were up 26% from 4Q10
Consumer Real Estate Services
Consumer Real Estate Services (previously Home Loans & Insurance) originates first- and second-lien mortgage loans. The first-lien mortgage loans are generally sold into the secondary mortgage market or to Corporate Investments in All Other while retaining servicing and the customer relationship. Second-lien mortgages are retained on Consumer Real Estate Services’ balance sheet. Consumer Real Estate Services services mortgage loans, including those it owns, loans owned by other segments and loans owned by outside investors. Consumer Real Estate Services receives fees from other segments for servicing their loans. The financial results of the on-balance sheet loans are reported in the segment that owns the loan. Consumer Real Estate Services also provides insurance services. The components of Consumer Real Estate Services are:
• Home Loans & Insurance includes the ongoing loan production activities, servicing activities related to current loans, insurance operations and the Consumer Real Estate Services home equity portfolio not selected for inclusion in the Legacy Asset Servicing portfolio. Its results represent the ongoing activities of Consumer Real Estate Services.
• Legacy Asset Servicing is responsible for servicing delinquent loans and managing the runoff and exposures related to selected residential mortgage, home equity and discontinued loan portfolios, including owned loans and loans serviced for others (Legacy Asset Servicing portfolio). Its results represent the net cost of legacy exposures that is included in the results of Consumer Real Estate Services, including representations and warranties provision, litigation costs, financial results of the Consumer Real Estate Services home equity portfolio selected as part of the Legacy Asset Servicing portfolio and the financial results of the Legacy Asset Servicing portfolio serviced for others, including fees from other segments.
• Other includes the results related to MSRs, including risk management. It includes the change in MSR value, net of hedge results, together with any related assets or liabilities. These amounts are not allocated between Home Loans & Insurance and Legacy Asset Servicing since the MSR is managed as a single asset.
Note: Home Loans & Insurance and Legacy Asset Servicing provide services to each other and receive fees for such services.
Investment and Brokerage Revenue
$3,500
$3,025 $2,994 $3,101
$3,000 $2,879
$2,724
$2,500
$1,511 $1,565 $1,614
millions in $ $2,000 $1,392 $1,477
$1,500
$1,000
$1,273
$1,347 $1,332 $1,402 $1,487
$500
$241
$0 $82
1Q10 2Q10 3Q10 4Q10 1Q11
Commentary vs. 4Q10
• Investment and brokerage revenue increased by $222M due to higher asset management fees and brokerage income
• Asset management fees increased $85M, reflecting a strong market and positive long-term AUM flows
– Revenue from inflows into higher valued products more than offset outflows in lower valued products such as custody and money market funds
• Brokerage fees increased $137M due to increased transactional activity
Key Wealth Management Statistics 1
1Q11 4Q10 1Q10
Financial Advisors 15,695 15,511 15,178
Client Facing Professionals 20,273 20,069 19,573
Assets under management ($ in B) 2 $ 664.7 $ 630.8 $ 721.4
Total client balances ($ in B) 2 $2,277.0 $2,229.8 $2,283.5
Merrill Lynch: Active accounts (in millions) 3.33 3.31 3.14
Merrill Lynch: Net new $250K+ households 5,833 8,052 7,285
1 Includes Merrill Edge®
2 1Q10 includes $98B in both assets under management (AUM) and total client balances of Columbia Management long-term asset management business through the date of sale on May 1, 2010
Sales and Trading Revenue
$ in millions
$9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0
$7,001
$1,514
$5,487
$3,112
$882
$2,230
$4,444
$967
$3,477
$2,538
$781
$1,757
$4,895
$1,249
$3,646
1Q10
2Q10
3Q10
4Q10
1Q11
Fixed income, currency and commodities
Equity income
Commentary vs. 4Q10
• Sales and trading revenue increased $2.4B from 4Q10 as intra-quarter volatility increased investor demand and positive market and event-specific news resulted in a more favorable trading environment
– Compared to record results in 1Q10, results were down 30%
• FICC revenue of $3.6B increased $1.9B compared to 4Q10 due to increased client activity
• Equity revenue of $1.2B increased $468M from 4Q10 primarily due to improved positioning and client activity in the equity derivatives business and higher commission revenue in the cash business
• Proprietary trading revenue was down 54% vs. 1Q10 as a result of downsizing the business, consistent with new regulatory guidelines
• Results for 1Q11 include DVA losses of $357M
Investment Banking Fees
$ in millions
$2,500 $2,000 $1,500 $1,000 $500 $0 $(500)
$1,240
$343
$774
$167
$1,319
$318
$827
$242
$1,371
$341
$798
$273
$1,590
$496
$869
$336
$1,578
$448
$845
$319
$(44) $(68) $(41) $(111) $(34)
1Q10 2Q10 3Q10 4Q10 1Q11
Advisory Debt issuance Equity issuance Other (primarily self-led deals)
Commentary vs. 4Q10
• Investment banking fees remained strong and BAML maintained a #2 ranking globally. Global market share of 7.9% reflects a 1.6% improvement over the quarter and was the largest increase among the top 15 banks 2
• Strong performance outside the US as demonstrated by the execution of several large transactions, including: the largest Japanese equity deal of 2011, on which BAML was the only non-Japanese book manager, and Joint Global Coordinator and Joint Bookrunner on the largest ECM deal in Russia since May 2007
• Continued leadership and strength globally in Leveraged Finance with lead involvement on several significant transactions
BAML 1Q11 Product Ranking Highlights 1, 2
Global Ranking U.S. Ranking
Net investment banking fees 2 2
Leveraged loans 1 1
Asset-backed securities 2 2
Syndicated loans 2 2
Investment grade corporate debt 2 2
Common stock underwriting 2 4
Mortgage-backed securities 3 2
High-yield corporate debt 3 2
1 BAML = Bank of America Merrill Lynch.
2 Source: Dealogic data as of April 4, 2011; includes self-led transactions.
Noninterest Expense Levels
$30,000 $27,216
$25,000
$10,400 $20,864 $20,283
$20,000 $17,775 $17,253 $2,000
millions in $ $15,000 $10,115
$8,617 $8,464 $8,414 $10,064
$10,000 $16,816 $18,864
$5,000 $9,158 $8,789 $8,402 $8,800 $10,168
$0
1Q10 2Q10 3Q10 4Q10 1Q11
Personnel expense Non-personnel expense Goodwill impairment
Commentary vs. 4Q10
• Excluding the goodwill impairment charge in 4Q10, 1Q11 expense increased $1.4B, or 8%, from 4Q10
– Personnel costs increased $1.4B primarily as a result of $1.0B retirement eligible stock-based compensation expense and compensation costs linked to increased revenue in sales and trading and investment and brokerage fees
– Non-personnel expenses were flat as costs outside of mortgage and litigation were managed down
• Litigation costs of $940M in 1Q11 were lower than 4Q10 of $1.5B
• Costs associated with mortgage-related assessments and waivers were $874M, including $548M for compensatory fees resulting from foreclosure delays compared to $230M in 4Q10, with the remainder being out-of-pocket costs that we do not expect to recover.
Credit Trends Are Positive
Consumer 30+ Day Performing Delinquencies
$12,000
$10,000
$8,000
millions in $ $6,000 $6,478
$4,490
$4,000
$2,258
$2,000 $1,827
$-
1Q10 2Q10 3Q10 4Q10 1Q11
Residential mortgage excl. FHA Home equity Credit card Direct/Indirect
Consumer Net Charge-offs
$5,000
$4,000
$3,000
millions in $ $2,676
$2,000
$1,179
$1,000 $905
$525
$- $40
1Q10 2Q10 3Q10 4Q10 1Q11
Residential mortgage Home equity Credit card
Direct/Indirect Other Consumer
Nonperforming Loans, Leases and Foreclosed Properties
$40.0
$35.9 $35.6 $34.6
$32.7 $31.6
$30.0 $13.0 $12.2 $11.6 $10.6 $9.9
billions in $ $20.0
$13.3 $14.3 $14.8
$15.1 $15.2
$10.0
$9.6 $9.1 $8.2 $7.0 $6.5
$-
1Q10 2Q10 3Q10 4Q10 1Q11
Consumer < 180 DPD Consumer > 180 DPD Commercial
Commercial Net Charge-offs
$800
$600
millions in $ $400
$312
$288
$200
$82
$-
1Q10 2Q10 3Q10 4Q10 1Q11
Commercial & Industrial 2 Small business Commercial real estate
1 FHA insured loans are excluded for comparison purposes
2 Includes U.S. commercial (excluding small business) and non-U.S. commercial, excluding leasing
Credit Highlights
($ in millions) Net Charge-offs Allowance for Credit Losses
1Q11 4Q10 Inc/ (Dec) 1Q11 4Q10 Inc/ (Dec)
Residential mortgage $ 905 $ 970 $ (65) $ 5,369 $ 5,082 $ 287
Home equity 1,179 1,271 (92) 12,857 12,887 (30)
Discontinued real estate 20 11 9 1,871 1,283 588
U.S. credit card 2,274 2,572 (298) 9,100 10,876 (1,776)
Non-U.S. credit card 402 339 63 2,069 2,045 24
Direct / Indirect consumer 525 641 (116) 1,939 2,381 (442)
Other consumer 40 50 (10) 163 161 2
Total consumer 5,345 5,854 (509) 33,368 34,715 (1,347)
U.S. Commercial (excl small business) (21) 210 (231) 1,893 2,062 (169)
U.S. small business commercial 312 344 (32) 1,263 1,514 (251)
Commercial real estate 288 347 (59) 2,904 3,137 (233)
Commercial leasing financing 1 20 (19) 124 126 (2)
Non-U.S. commercial 103 8 95 291 331 (40)
Total commercial 683 929 (246) 6,475 7,170 (695)
Total loans and leases $ 6,028 $ 6,783 $ (755) 39,843 41,885 (2,042)
Reserve for unfunded lending commitments 961 1,188 (227)
Allowance for credit losses $ 40,804 $ 43,073 $ (2,269)
Commentary vs. 4Q10
• Net charge-offs declined $755M to $6.0B in 1Q11 and the net charge-off ratio declined 26 bps to 2.61%
– Charge-offs declined across most products with the greatest decline in U.S. credit card
• Total provision expense was $3.8B ($6.0B charge-offs and reserve release of $2.2B)
• $39.8B allowance for loan and lease losses provides coverage for 4.29% of loans compared to $41.9B and 4.47% coverage in 4Q10
– Allowance now covers 1.63 times current period annualized net charge-offs compared to 1.56 times in 4Q10 (excluding purchased credit-impaired allowance: 1.31 times in 1Q11 vs. 1.32 times in 4Q10)
Consumer Purchased Credit-Impaired Loans
$ in billions 1Q11 3/31/2011
Impairment Allowance
Home equity $ 0.5 $ 5.0
Residential mortgage 0.2 1.1
Discontinued real estate 0.8 1.8
Total Legacy Countrywide 1.5 7.9
Merrill Lynch consumer 0.1 0.1
Total purchased credit-impaired $ 1.6 $ 8.0
Total carrying value, net of allowance $ 27.7
Legal claim as of March 31, 2011 $ 41.7
Carrying value as % of legal claim 66%
Commentary
• 1Q11 included $1.6B impairment driven primarily by deterioration in home prices resulting in a revised home price outlook
– Given recent observed declines in both home price data and industry expectations, we revised our forecast for home prices downward, reflecting further declines in prices over 2011 and slower appreciation versus previous expectations in 2012-2015
• Including the $8.0B allowance, the portfolio is now carried at 66% of legal claim
1Q11 Results by Business Segment
($ in millions)
Total Corporation Deposits Global Card Services Consumer Real Estate Commercial Services Global Banking & Banking Global Markets Global Wealth & All Other Investment Management
Net interest income (FTE) $12,397 $2,205 $3,743 $904 $1,846 $2,038 $1,569 $92
Card income 1,828 1 1,728 1 60 19 19 -
Service charges 2,032 923—5 606 475 23 -
Investment and brokerage services 3,101 44—- 9 677 2,377(6)
Investment banking income (loss) 1,578—— 8 1,511 94(35)
Equity investment income 1,475—6 1 6 41 12 1,409
Trading account profits (losses) 2,722——(3) 2,620 44 61
Mortgage banking income (loss) 630—- 694—13 9(86)
Insurance income (loss) 613 2 69 499—- 81(38)
Gains on sales of debt securities 546—- 6—72—468
All other income (loss) 173 14 25 72 116 421 262(737)
Total noninterest income 14,698 984 1,828 1,278 802 5,849 2,921 1,036
Total revenue, net of interest expense (FTE) 27,095 3,189 5,571 2,182 2,648 7,887 4,490 1,128
Total noninterest expense 20,283 2,592 1,887 4,884 1,106 4,726 3,600 1,488
Pre-tax, pre-provision earnings (loss) 6,812 597 3,684(2,702) 1,542 3,161 890(360)
Provision for credit losses 3,814 33 964 1,098 76(202) 46 1,799
Income (loss) before income taxes 2,998 564 2,720(3,800) 1,466 3,363 844(2,159)
Income tax expense (benefit) FTE 949 209 1,008(1,408) 543 1,231 313(947)
Net income (loss) $2,049 $355 $1,712 $(2,392) $923 $2,132 $531 $(1,212)
Impact of FHA-Insured Loans on Delinquencies
($ in millions) 1Q10 2Q10 3Q10 4Q10 1Q11
FHA-insured 30+ Day Performing Delinquencies $ 14,917 $ 16,988 $ 18,178 $ 19,069 $ 22,891
Change from prior period 2,676 2,071 1,190 891 3,822
30+ Day Performing Delinquency Amounts
Total consumer as reported 36,799 35,860 36,167 36,254 38,072
Total consumer excluding FHA 1 21,882 18,872 17,989 17,185 15,181
Residential mortgages as reported 20,858 22,536 23,573 24,267 27,381
Residential mortgages excluding FHA 1 5,941 5,548 5,395 5,198 4,490
30+ Day Performing Delinquency Ratios
Total consumer as reported 5.57% 5.52% 5.70% 5.63% 6.00%
Total consumer excluding FHA 1 3.64% 3.22% 3.21% 3.10% 2.83%
Residential mortgages as reported 8.51% 9.18% 9.69% 9.41% 10.45%
Residential mortgages excluding FHA 1 2.81% 2.68% 2.77% 2.69% 2.39%
Commentary vs. 4Q10
• We continue to repurchase delinquent FHA-insured loans which masks the continued improvement in our 30+ day performing delinquency trends
– Total consumer 30+ day performing delinquency excluding FHA improved for the 8th consecutive quarter, lower by $2.0B driven by declines in U.S. Credit Card of $820M and Residential Mortgage excluding FHA of $708M
1 Excludes purchased credit-impaired loans
Consumer Asset Quality Key Indicators
($ in millions)
Residential Mortgage Home Equity Discontinued Real Estate
1Q11 4Q10 1Q11 4Q10 1Q11 4Q10
As Reported Excluding Countrywide Purchased Credit- Impaired Reported and FHA Insured Portfolios Excluding Countrywide Purchased As Impaired Portfolios Credit- Reported and FHA Insured As Excluding Countrywide Purchased Reported Credit- Impaired Excluding Countrywide As Purchased Impaired Excluding Countrywide Purchased Reported Credit- Impaired As Excluding Countrywide Purchased Reported Credit- Impaired As Credit-
Loans end of period $ 261,934 $ 187,895 $ 257,973 $ 193,435 $ 133,629 $ 121,160 $ 137,981 $ 125,391 $ 12,694 $ 1,399 $ 13,108 $ 1,456
Loans average 262,049 191,309 254,051 196,693 136,089 123,589 139,772 127,116 12,899 1,424 13,297 1,508
Net charge-offs $ 905 $ 905 $ 970 $ 970 $ 1,179 $ 1,179 $ 1,271 $ 1,271 $ 20 $ 20 $ 11 $ 11
% of average loans 1.40% 1.92% 1.51% 1.96% 3.51% 3.87% 3.61% 3.97% 0.61% 5.57% 0.35% 3.10%
Allowance for loan losses $ 5,369 $ 4,276 $ 5,082 $ 4,419 $ 12,857 $ 7,915 $ 12,887 $ 8,420 $ 1,871 $ 61 $ 1,283 $ 79
% of Loans 2.05% 2.24% 1.97% 2.28% 9.62% 6.53% 9.34% 6.72% 14.74% 4.39% 9.79% 5.45%
Average refreshed (C)LTV 1 82 81 86 85 80 81
90%+ refreshed (C)LTV 1 33% 33% 44% 41% 28% 29%
Average refreshed FICO 718 719 723 723 637 639
% below 620 FICO 14% 14% 13% 12% 46% 46%
1 Loan-to-value (LTV) calculations apply to the residential mortgage and discontinued real estate portfolio. Combined loan-to-value (CLTV) calculations apply to the home equity portfolio
Consumer Asset Quality Key
(cont’d)
($ in millions)
Credit Card Other Total Consumer
1Q11 4Q10 1Q11 4Q10 1Q11 4Q10
Loans end of period $ 134,342 $ 141,250 $ 92,198 $ 93,138 $ 634,797 $ 643,450
Loans average 137,574 140,130 92,850 94,345 641,461 641,595
Net charge-offs $ 2,676 $ 2,911 $ 565 $ 691 $ 5,345 $ 5,854
% of average loans 7.89% 8.24% 2.47% 2.91% 3.38% 3.62%
Allowance for loan losses $ 11,169 $ 12,921 $ 2,102 $ 2,542 $ 33,368 $ 34,715
% of Loans 8.31% 9.15% 2.28% 2.73% 5.26% 5.40%
Commentary vs. 4Q10
• The average refreshed FICO for the U.S. Credit Card portfolio was 707 at 1Q11 compared to 706 at 4Q10
• The percentage below 620 was 12% at both 1Q11 and 4Q10
• The 1Q11 credit card loss rate of 7.89% is down 35bps from 8.24% in 4Q10
1 Other primarily consists of the consumer lending and dealer financial services portfolios
Commercial Asset Quality Key Indicators 1
($ in millions) Commercial and Commercial Commercial
Small Business Total Commercial
Industrial 2 Real Estate Lease Financing
1Q11 4Q10 1Q11 4Q10 1Q11 4Q10 1Q11 4Q10 1Q11 4Q10
Loans end of period $ 211,064 $ 207,615 $ 47,008 $ 49,393 $ 14,306 $ 14,719 $ 21,563 $ 21,942 $ 293,941 $ 293,669
Loans average $ 209,339 $ 207,551 $ 48,286 $ 51,538 $ 14,542 $ 14,939 $ 21,634 $ 21,363 $ 293,801 $ 295,391
Net Charge-offs $ 82 $ 218 $ 288 $ 347 $ 312 $ 344 $ 1 $ 20 $ 683 $ 929
% of average loans 0.16% 0.42% 2.42% 2.67% 8.68% 9.13% 0.02% 0.38% 0.94% 1.25%
90+ DPD Performing 3 $ 130 $ 242 $ 168 $ 47 $ 302 $ 325 $ 16 $ 18 $ 616 $ 632
% of loans 3 0.06% 0.12% 0.36% 0.10% 2.11% 2.21% 0.07% 0.08% 0.21% 0.22%
Nonperforming loans 3 $ 3,211 $ 3,686 $ 5,695 $ 5,829 $ 172 $ 204 $ 53 $ 117 $ 9,131 $ 9,836
% of loans 3 1.52% 1.78% 12.11% 11.80% 1.20% 1.39% 0.25% 0.53% 3.11% 3.35%
Allowance for loan losses $ 2,184 $ 2,393 $ 2,904 $ 3,137 $ 1,263 $ 1,514 $ 124 $ 126 $ 6,475 $ 7,170
% of loans 1.03% 1.15% 6.18% 6.35% 8.83% 10.28% 0.57% 0.57% 2.20% 2.44%
Reservable criticized utilized
exposure 1, 3 $ 17,455 $ 19,238 $ 19,186 $ 20,518 $ 1,637 $ 1,677 $ 1,157 $ 1,188 $ 39,435 $ 42,621
% of total reservable exposure 1, 3 6.36% 7.08% 38.24% 38.88% 11.43% 11.37% 5.36% 5.41% 10.94% 11.80%
1 Excludes derivatives, foreclosed property, assets held for sale, debt securities and FVO loans
2 Includes U.S. commercial, excluding small business, and non-U.S. commercial
3 Excludes the Merrill Lynch purchased credit-impaired loan portfolio
Focus on Home Equity Loans
Loan Balances (end of period)
$200.0
$149.9 $146.3
$150.0 $141.6 $138.0
$133.6
billions in $ $100.0
$50.0
$0.0
1Q10 2Q10 3Q10 4Q10 1Q11
Non-purchased credit-impaired second lien First-lien Purchased credit-impaired
Home Equity Portfolio Characteristics
• 90% of portfolio are stand-alone originations versus piggy back loans • $12.5B legacy Countrywide purchased credit-impaired (PCI) loan portfolio
• For the non-PCI portfolio:
–$25.4B are in first-lien position; $95.7B are second-lien positions
• Of second-liens, ~40% or $38.5B have CLTV greater than 100%??Does not mean 100% severity in the event of default??Assuming proceeds of 85% of the collateral value, we estimate collateral value of $9.7B available for second liens??Additionally, on 93% of second liens with CLTVs greater than 100%, the customer is current
• Allowance on the non-PCI home equity portfolio is $7.9B
Allowance for Non-purchased Credit-impaired Loans
$10,000
$8,701 $8,489
$8,263 $8,420 $7,915
$8,000
Millions in $ $6,000
$4,000
$2,000
$0
1Q10 2Q10 3Q10 4Q10 1Q11
Net Charge-offs 1
$3,000
$2,397
$2,000 $1,741
millions in $ $1,372 $1,271
$1,179
$1,000
$0
1Q10 2Q10 3Q10 4Q10 1Q11
Net charge-offs include $643M in 1Q10 and $128M in 2Q10 on collateral dependent modified loans
1 Charge-offs do not include Countrywide purchased credit-impaired portfolio as those losses were considered in establishing the nonaccretable difference in the original purchase accounting
Run-off Loan Portfolios
Loan balances (end of period)
($ in billions)
March 31, December 31, Increase 1Q11
2011 2010 (Decrease) Revenue less
net charge-offs
Residential mortgage $ 12.1 $ 12.4 $ (0.3) $ (0.3) 1
Home equity 35.3 36.7 (1.4) (0.7) 1
Discontinued real estate 12.7 13.1 (0.4) (0.7) 1
Direct/Indirect consumer 32.0 35.4 (3.4) (0.1)
Other consumer 1.4 1.4 — —
Total consumer 93.5 99.0 (5.5) (1.8)
Total commercial 7.3 7.6 (0.3) (0.1)
Total run-off loans $ 100.8 $ 106.6 $ (5.8) $ (1.9)
1Q11 Run-off Portfolio Highlights
• Total run-off loans were down $5.8B from 4Q10
• Includes purchased credit-impaired loans of $35.7B ($11.8B residential mortgage, $12.6B home equity, $11.3B discontinued real estate)
• Direct/Indirect consumer loans include consumer finance loans of $11.1B, bulk purchase programs of $12.3B and other loans of $8.6B
1 Incremental provisions to the lifetime loss estimates of the purchased credit-impaired portfolios have been included in revenue less net charge-offs