Bank of America Reports First-Quarter 2012 Financial Results
Supplemental First Quarter 2012 Financial Information
Net Income of
Results Include Negative Valuation Adjustments of
Fortress Balance Sheet Strengthened; Record Tier 1 Common Equity Ratio of 10.78 Percent
Global Excess Liquidity Sources Increased to a Record
Strong Performance in Global Markets; Sales and Trading Revenue Excluding DVA Third Highest Since Merrill Lynch Acquisition
Investment Bank Ranked No. 2 in Global Net Investment Banking Fees
Average U.S. Commercial Loans With Corporate and Commercial Clients Increased for the Fifth
Consecutive Quarter, Reflecting 3 Percent Growth From the Fourth Quarter of 2011
Global Wealth and Investment Management Earns
Provision for Credit Losses Declines to Lowest Level Since Third Quarter of 2007 as Credit Quality Continues to Improve
The results compare to net income of
“By focusing on building strong customer and client relationships, we’re doing more business and winning in the marketplace,” said Chief Executive Officer
“The narrowing of our credit spreads reflects the significant progress we’ve made to strengthen the balance sheet,” said Chief Financial Officer
1 Fully taxable-equivalent (FTE) basis is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 23-26 of this press release. Total revenue, net of interest expense on a GAAP basis, was
Selected Financial Highlights | ||||||||||||||
Three Months Ended | ||||||||||||||
(Dollars in millions except per share data) | March 31, 2012 |
December 31, 2011 |
March 31, 2011 | |||||||||||
Net interest income, FTE basis1 | $ | 11,053 | $ | 10,959 | $ | 12,397 | ||||||||
Noninterest income | 11,432 | 14,187 | 14,698 | |||||||||||
Total revenue, net of interest expense, FTE basis | 22,485 | 25,146 | 27,095 | |||||||||||
Total revenue, net of interest expense, FTE basis excluding DVA and FVO valuation adjustments2 | 27,258 | 26,434 | 28,038 | |||||||||||
Provision for credit losses | 2,418 | 2,934 | 3,814 | |||||||||||
Noninterest expense | 19,141 | 19,522 | 20,283 | |||||||||||
Net income | 653 | 1,991 | 2,049 | |||||||||||
Diluted earnings per common share | $ | 0.03 | $ | 0.15 | $ | 0.17 |
1 Fully taxable-equivalent (FTE) basis is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 23-26 of this press release. Net interest income on a GAAP basis was
2 Total revenue, net of interest expense, FTE basis excluding DVA and FVO adjustments is a non-GAAP financial measure. DVA losses were
The following selected items affected financial results in the first quarter of 2012.
Selected First-Quarter 2012 Items1 | |||||||
(Dollars in billions) | |||||||
Gains on debt and trust-preferred repurchases | $ | 1.2 | |||||
Equity investment income | 0.8 | ||||||
Net gains on sales of debt securities | 0.8 | ||||||
Fair value adjustment on structured liabilities | (3.3 | ) | |||||
Debit valuation adjustments (DVA) on trading liabilities | (1.5 | ) | |||||
Annual retirement-eligible compensation costs | (0.9 | ) | |||||
Litigation expense | (0.8 | ) |
1 All items pretax.
Key Business Highlights
The company made significant progress in the first quarter of 2012 in line with its operating principles, including the following developments:
Be customer-driven
Bank of America extended approximately$102 billion in credit in the first quarter of 2012. This included$66.6 billion in commercial non-real estate loans,$15.2 billion in residential first mortgages,$8.9 billion in commercial real estate loans,$4.4 billion in U.S. consumer and small business card,$760 million in home equity products and$5.9 billion in other consumer credit.- The
$15.2 billion in residential first mortgages funded in the first quarter helped nearly 63,000 homeowners either purchase a home or refinance an existing mortgage. This included almost 5,000 first-time homebuyer mortgages originated by retail channels, and more than 17,000 mortgages to low- and moderate-income borrowers. Approximately 16 percent of funded first mortgages were for home purchases and 84 percent were refinances. - The company originated approximately
$1.6 billion in small business loans and commitments and hired over 100 small business bankers in the first quarter of 2012 to further support small business customers, bringing the total number of small business bankers hired to more than 700. - The company raised
$159 billion in capital for clients in the first quarter of 2012 which helped clients support the economy. - Average deposit balances were up
$7 billion from the first quarter of 2011 to$1.03 trillion . - The company continued to deepen relationships with customers and clients. The number of mobile banking customers rose 39 percent from the year-ago quarter to 9.7 million customers, and the number of new U.S. consumer credit card accounts opened in the first quarter of 2012 was up 19 percent from the year-ago quarter.
Bank of America added more than 200Financial Advisors in the first quarter of 2012, bringing the total number ofFinancial Advisors to nearly 17,500. The total number of client-facing professionals in Global Wealth and Investment Management, including thoseFinancial Advisors in Consumer and Business Banking, rose for the eleventh consecutive quarter.- The company continued to expand relationships with corporate banking clients, with average loans and leases up 24 percent and average deposit balances up 2 percent from the first quarter of 2011.
Bank of America Merrill Lynch (BAML) was ranked No. 2 globally in net investment banking fees in the first quarter of 2012, including self-led deals, with a 6.2 percent market share, as reported by Dealogic. Also, BAML was No. 1 in the EMEA first-quarter 2012 syndicated loan league tables for the first time in the company’s history.- BAML participated in 106 municipal issuances in the first quarter of 2012, according to
Thomson Financial , helping state and local governments raise nearly$11 billion for improvements to various infrastructure projects such as highways, bridges and schools.
Continue to build a fortress balance sheet
- Regulatory capital ratios increased significantly, with the Tier 1 common equity ratio increasing to 10.78 percent in the first quarter of 2012, up 92 basis points from the fourth quarter of 2011 and 214 basis points higher than the first quarter of 2011. Tier 1 capital ratio was 13.37 percent in the first quarter of 2012, compared to 12.40 percent in the fourth quarter of 2011 and 11.32 percent in the first quarter of 2011.
- The company continued to maintain strong liquidity in the first quarter of 2012 while positioning the balance sheet for significant debt reductions. Global Excess Liquidity Sources increased to
$406 billion at March 31, 2012, up from$378 billion at December 31, 2011 and$386 billion at March 31, 2011. Long-term debt declined to$355 billion at March 31, 2012 from$372 billion at December 31, 2011 and$434 billion at March 31, 2011. - Time-to-required funding increased to 31 months at March 31, 2012 from 29 months at December 31, 2011 and 25 months at March 31, 2011. The company remains well positioned to address upcoming debt maturities, including the remaining
$24 billion related to the Temporary Liquidity Guarantee Program that matures in the second quarter of 2012.
Manage risk well
- The company continued to focus on strengthening its risk culture in the first quarter of 2012, continuing to drive accountability deeply into the company in all matters of risk.
- The provision for credit losses declined 37 percent from the year-ago quarter, reflecting improved credit quality across all major consumer and commercial portfolios and the impact of underwriting changes implemented over the past several years.
- The allowance for loan and lease losses to annualized net charge-off coverage ratio was 1.97 times in the first quarter of 2012, compared with 2.10 times in the fourth quarter of 2011 and 1.63 times in the first quarter of 2011. Excluding purchased credit-impaired loans, the allowance to annualized net charge-off coverage ratio was 1.43 times, 1.57 times and 1.31 times for the same periods, respectively.
- The company continued to manage its sovereign and non-sovereign exposures in
Europe . Total exposure toGreece ,Italy ,Ireland ,Portugal andSpain , including net credit default protection, declined to$9.8 billion at March 31, 2012, compared to$10.3 billion atDecember 31, 2011 and$11.5 billion at March 31, 2011.
Deliver for our shareholders
- The company continued to focus on strengthening the balance sheet by increasing capital, building liquidity and maintaining strong reserve levels. The benefits of this strategy were reflected in the 2012 Comprehensive Capital Analysis and Review.
- Earnings, excluding DVA and FVO adjustments, improved in the first quarter of 2012 from the fourth quarter of 2011 as all five of the company’s businesses reported improved profitability.
- The company retired
$4.2 billion of debt for cash and exchanged$730 million of trust-preferred securities for cash and common stock that resulted in total gains on debt retirement of$1.2 billion . These actions, combined with preferred stock exchanges, increased Tier 1 common equity by$1.7 billion , or approximately 13 basis points, in the first quarter of 2012.
Manage efficiency well
- Noninterest expense declined to
$19.1 billion in the first quarter of 2012 from$19.5 billion in the fourth quarter of 2011 and$20.3 billion in the first quarter of 2011 as the company continued to focus on streamlining and simplifying its businesses. - The company continued to approve and implement employee-generated ideas as part of Project New BAC. To date, approximately 570 of the more than 2,000 Phase 1 decisions have already been implemented and Phase 2 evaluations, which began in the fourth quarter of 2011, are nearing completion.
- At March 31, 2012, the company had 278,688 full-time employees, down 3,103 from the end of the prior quarter, and 10,225 lower than at March 31, 2011. Excluding FTE increases to staff the Legacy Assets and Servicing team to handle increasing government and private programs for housing, the number of full-time employees is down nearly 5,600 from
December 31, 2011 and 20,000 from the year-ago quarter.
Business Segment Results
The company reports results through five business segments: Consumer and Business Banking (CBB), Consumer Real Estate Services (CRES), Global Banking, Global Markets, and Global Wealth and Investment Management (GWIM), with the remaining operations recorded in All Other.
Effective
Consumer and Business Banking | |||||||||||||||
Three Months Ended | |||||||||||||||
(Dollars in millions) | March 31, 2012 |
December 31, 2011 |
March 31, 2011 | ||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 7,420 | $ | 7,605 | $ | 8,464 | |||||||||
Provision for credit losses | 877 | 1,297 | 661 | ||||||||||||
Noninterest expense | 4,246 | 4,426 | 4,561 | ||||||||||||
Net income | 1,454 | 1,243 | 2,041 | ||||||||||||
Return on average equity | 11.05 | % | 9.31 | % | 15.41 | % | |||||||||
Return on average economic capital1 | 26.15 | 22.10 | 36.10 | ||||||||||||
Average loans | $ | 141,578 | $ | 147,150 | $ | 160,976 | |||||||||
Average deposits | 466,239 | 459,819 | 457,037 | ||||||||||||
At March 31, 2012 |
At December 31, 2011 |
At March 31, 2011 | |||||||||||||
Client brokerage assets | $ | 73,422 | $ | 66,576 | $ | 66,703 |
1 Return on average economic capital is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 23-26 of this press release.
Business Highlights
- The number of new U.S. consumer credit card accounts opened in the first quarter of 2012 was up 19 percent from the year-ago quarter, and more than 1 million BankAmericard Cash Rewards cards have been issued since its introduction in the third quarter of 2011.
- The company originated approximately
$1.6 billion in small business loans and commitments and hired more than 100 small business bankers in the first quarter of 2012, reflecting the company’s continued focus on supporting small businesses. - The number of mobile banking customers continued to grow in the first quarter of 2012, with total mobile banking customers increasing 39 percent from a year ago to 9.7 million customers.
- Average deposit balances increased
$9.2 billion from the year-ago quarter, driven by growth in liquid products in a low-rate environment. The rates paid on deposits declined 10 basis points in the first quarter of 2012 from the year-ago quarter due to pricing discipline and a shift in the mix of deposits.
Financial Overview
Consumer and Business Banking reported net income of
Revenue of
Consumer Real Estate Services | |||||||||||||||
Three Months Ended | |||||||||||||||
(Dollars in millions) | March 31, 2012 |
December 31, 2011 |
March 31, 2011 | ||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 2,674 | $ | 3,276 | $ | 2,063 | |||||||||
Provision for credit losses | 507 | 1,001 | 1,098 | ||||||||||||
Noninterest expense | 3,905 | 4,573 | 4,777 | ||||||||||||
Net loss | (1,145 | ) | (1,444 | ) | (2,400 | ) | |||||||||
Average loans | 110,755 | 116,993 | 120,560 | ||||||||||||
At March 31, 2012 |
At December 31, 2011 |
At March 31, 2011 | |||||||||||||
Period-end loans | $ | 109,264 | $ | 112,359 | $ | 118,749 | |||||||||
Business Highlights
Bank of America funded$16.0 billion in residential home loans and home equity loans during the first quarter of 2012.
- The mortgage portfolio serviced for investors declined to
$1.3 trillion at the end of the first quarter of 2012 from$1.4 trillion at the end of the fourth quarter of 2011 and$1.6 trillion at the end of the first quarter of 2011. Capitalized mortgage servicing rights (MSR) as a percent of the portfolio declined from 95 basis points at March 31, 2011, to 58 basis points atMarch 31, 2012 . The MSR balance was$7.6 billion atMarch 31, 2012 , compared with$7.4 billion atDecember 31, 2011 and$15.3 billion atMarch 31, 2011 . - The company continued to make progress on certain legacy issues. The number of 60+ day delinquent first mortgage loans serviced by Legacy Assets and Servicing declined to 1.09 million at the end of the first quarter of 2012 from 1.16 million at the end of the fourth quarter of 2011 and 1.30 million at the end of the first quarter of 2011.
Financial Overview
Consumer Real Estate Services reported a net loss of
Revenue increased to
Representations and warranties provision was
Noninterest expense decreased 18 percent to
Global Banking | |||||||||||||||
Three Months Ended | |||||||||||||||
(Dollars in millions) | March 31, 2012 |
December 31, 2011 |
March 31, 2011 | ||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,451 | $ | 4,003 | $ | 4,702 | |||||||||
Provision for credit losses | (238 | ) | (256 | ) | (123 | ) | |||||||||
Noninterest expense | 2,178 | 2,137 | 2,309 | ||||||||||||
Net income | 1,590 | 1,337 | 1,584 | ||||||||||||
Return on average equity | 13.79 | % | 11.34 | % | 13.00 | % | |||||||||
Return on average economic capital1 | 30.68 | 25.06 | 26.46 | ||||||||||||
Average loans and leases | $ | 277,096 | $ | 276,844 | $ | 256,846 | |||||||||
Average deposits | 237,532 | 240,732 | 225,785 |
1 Return on average economic capital is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 23-26 of this press release.
Business Highlights
Bank of America Merrill Lynch (BAML) was ranked No. 2 globally in net investment banking fees, including self-led deals, in the first quarter of 2012, according to Dealogic. During the first quarter of 2012, BAML was among the top three banks globally in high-yield corporate debt, leveraged loans, convertible debt, investment-grade corporate debt, asset-backed securities and syndicated loans.- Average loans and leases increased
$20.3 billion , or 8 percent, and average deposits rose$11.7 billion , or 5 percent, from the year-ago quarter. - Credit quality continued to improve as nonperforming assets declined by
$2.7 billion , or 39 percent, and total reservable criticized loans declined by$12.4 billion , or 41 percent, compared to the year-ago quarter.
Financial Overview
Global Banking reported net income of
The provision for credit losses was a benefit of
Firm-wide investment banking fees, including self-led deals, declined to
Global Markets | |||||||||||||||
Three Months Ended | |||||||||||||||
(Dollars in millions) | March 31, 2012 |
December 31, 2011 |
March 31, 2011 | ||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,193 | $ | 1,805 | $ | 5,272 | |||||||||
Total revenue, excluding DVA losses1 | 5,627 | 2,279 | 5,629 | ||||||||||||
Provision for credit losses | (20 | ) | (18 | ) | (33 | ) | |||||||||
Noninterest expense | 3,076 | 2,893 | 3,114 | ||||||||||||
Net income (loss) | 798 | (768 | ) | 1,394 | |||||||||||
Return on average equity | 18.19 | % | n/m | 22.02 | % | ||||||||||
Return on average economic capital2 | 23.54 | n/m | 25.99 | ||||||||||||
Total average assets | $ | 557,911 | $ | 552,190 | $ | 581,074 |
1 DVA losses for Global Markets were
2 Return on average economic capital is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 23-26 of this press release.
n/m = not meaningful
Business Highlights
- Sales and trading revenue, excluding DVA, was
$5.2 billion in the first quarter of 2012, compared to$2.0 billion in the fourth quarter of 2011 and$5.0 billion in the first quarter of 2011.
- FICC revenue, excluding DVA, was
$4.1 billion in the first quarter of 2012, up from$1.3 billion in the fourth quarter of 2011 and$3.7 billion in the first quarter of 2011, reflecting increases in almost all product categories.
Financial Overview
Global Markets revenue more than doubled from the fourth quarter of 2011 to
Net income was
Fixed Income, Currency and Commodities sales and trading revenue, excluding DVA losses, was
Global Wealth and Investment Management | ||||||||||||||||
Three Months Ended | ||||||||||||||||
(Dollars in millions) | March 31, 2012 |
December 31, 2011 |
March 31, 2011 | |||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,360 | $ | 4,167 | $ | 4,496 | ||||||||||
Provision for credit losses | 46 | 118 | 46 | |||||||||||||
Noninterest expense | 3,450 | 3,637 | 3,589 | |||||||||||||
Net income | 547 | 259 | 542 | |||||||||||||
Return on average equity | 12.78 | % | 5.78 | % | 12.26 | % | ||||||||||
Return on average economic capital1 | 33.81 | 14.73 | 30.98 | |||||||||||||
Average loans | $ | 103,036 | $ | 102,709 | $ | 100,852 | ||||||||||
Average deposits | 252,705 | 250,040 | 258,719 | |||||||||||||
(in billions) |
At March 31, 2012 |
At December 31, 2011 |
At March 31, 2011 | |||||||||||||
Assets under management | $ | 693.0 | $ | 647.1 | $ | 664.6 | ||||||||||
Total client balances2 | 2,241.3 | 2,139.2 | 2,230.4 |
1 Return on average economic capital is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 23-26 of this press release.
2 Total client balances are defined as assets under management, assets in custody, client brokerage assets, client deposits and loans.
Business Highlights
- Net income of
$547 million was the second-highest since the Merrill Lynch acquisition, driven by solid revenue and expense discipline. - Pretax margin for the first quarter of 2012 was 19.8 percent, compared with 19.2 percent in the year-ago quarter.
- Long-term Assets Under Management flows of
$7.8 billion were the second-highest since the Merrill Lynch acquisition.
Financial Overview
Global Wealth and Investment Management net income was comparable to the year-ago quarter while revenue was down 3 percent to
Noninterest expense decreased 4 percent from the year-ago quarter to
Assets Under Management rose
All Other 1 | ||||||||||||||||
Three Months Ended | ||||||||||||||||
(Dollars in millions) | March 31, 2012 |
December 31, 2011 |
March 31, 2011 | |||||||||||||
Total revenue, net of interest expense, FTE basis | $ | (613 | ) | $ | 4,290 | $ | 2,098 | |||||||||
Provision for credit losses | 1,246 | 792 | 2,165 | |||||||||||||
Noninterest expense | 2,286 | 1,856 | 1,933 | |||||||||||||
Net income (loss) | (2,591 | ) | 1,364 | (1,112 | ) | |||||||||||
Total average loans | 264,113 | 272,808 | 288,301 |
1 All Other consists of two broad groupings, Equity Investments and Other. Equity Investments includes Global Principal Investments, strategic and other investments. Other includes liquidating businesses, merger and restructuring charges, ALM functions (i.e., residential mortgage portfolio and investment securities) and related activities (i.e., economic hedges, fair value option on structured liabilities), and the impact of certain allocation methodologies. Other also includes certain residential mortgage and discontinued real estate products that are managed by Legacy Assets and Servicing within Consumer Real Estate Services.
All Other reported a net loss of
Provision for credit losses decreased
Corporate Overview
Revenue and Expense | |||||||||||||||
Three Months Ended | |||||||||||||||
(Dollars in millions) | March 31, 2012 |
December 31, 2011 |
March 31, 2011 | ||||||||||||
Net interest income, FTE basis1 | $ | 11,053 | $ | 10,959 | $ | 12,397 | |||||||||
Noninterest income | 11,432 | 14,187 | 14,698 | ||||||||||||
Total revenue, net of interest expense, FTE basis | 22,485 | 25,146 | 27,095 | ||||||||||||
Total revenue, net of interest expense, FTE basis excluding DVA and FVO valuation adjustments2 | 27,258 | 26,434 | 28,038 | ||||||||||||
Noninterest expense | 19,141 | 19,522 | 20,283 | ||||||||||||
Net income | 653 | 1,991 | 2,049 |
1 Fully taxable-equivalent (FTE) basis is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 23-26 of this press release. Net interest income on a GAAP basis was
2 Total revenue, net of interest expense, FTE basis excluding DVA and FVO adjustments is a non-GAAP financial measure. DVA losses were
Revenue, net of interest expense, on an FTE basis fell 17 percent from the first quarter of 2011, driven by
Net interest income on an FTE basis decreased 11 percent from the year-ago quarter. The net interest yield fell 16 basis points from the year-ago quarter, driven primarily by lower consumer loan balances and yields. This was partially offset by a reduction in long-term debt balances.
Noninterest income decreased
Noninterest expense decreased
Income tax expense for the first quarter of 2012 was
Credit Quality | ||||||||||||||||
Three Months Ended | ||||||||||||||||
(Dollars in millions) | March 31, 2012 |
December 31, 2011 |
March 31, 2011 | |||||||||||||
Provision for credit losses | $ | 2,418 | $ | 2,934 | $ | 3,814 | ||||||||||
Net charge-offs | 4,056 | 4,054 | 6,028 | |||||||||||||
Net charge-off ratio1 | 1.80 | % | 1.74 | % | 2.61 | % | ||||||||||
At March 31, 2012 |
At December 31, 2011 |
At March 31, 2011 | ||||||||||||||
Nonperforming loans, leases and foreclosed properties | $ | 27,790 | $ | 27,708 | $ | 31,643 | ||||||||||
Nonperforming loans, leases and foreclosed properties ratio2 | 3.10 | % | 3.01 | % | 3.40 | % | ||||||||||
Allowance for loan and lease losses | $ | 32,211 | $ | 33,783 | $ | 39,843 | ||||||||||
Allowance for loan and lease losses ratio3 | 3.61 | % | 3.68 | % | 4.29 | % |
1 Net charge-off/loss ratios are calculated as net charge-offs divided by average outstanding loans and leases during the period; quarterly results are annualized.
2 Nonperforming loans, leases and foreclosed properties ratios are calculated as nonperforming loans, leases and foreclosed properties divided by outstanding loans, leases and foreclosed properties at the end of the period.
3 Allowance for loan and lease losses ratios are calculated as allowance for loan and lease losses divided by loans and leases outstanding at the end of the period.
Note: Ratios do not include loans measured under the fair value option.
Credit quality continued to improve in the first quarter of 2012, with net charge-offs declining across most major portfolios, compared to the first quarter of 2011. Provision for credit losses decreased significantly from a year ago. Additionally, 30+ day performing delinquent loans, excluding
Net charge-offs were flat at
The provision for credit losses declined to
The allowance for loan and lease losses to annualized net charge-off coverage ratio decreased in the first quarter of 2012 to 1.97 times, compared with 2.10 times in the fourth quarter of 2011 related to the recoveries occurring in the prior quarter noted above, but increased from 1.63 times in the first quarter of 2011. Excluding purchased credit-impaired loans, the allowance to annualized net charge-off coverage ratio was 1.43 times, 1.57 times and 1.31 times for the same periods, respectively.
Nonperforming loans, leases and foreclosed properties were
Capital and Liquidity Management | ||||||||||||||||
(Dollars in millions, except per share information) |
At March 31, 2012 |
At December 31, 2011 |
At March 31, 2011 | |||||||||||||
Total shareholders’ equity | $ | 232,499 | $ | 230,101 | $ | 230,876 | ||||||||||
Tier 1 common equity | 131,602 | 126,690 | 123,882 | |||||||||||||
Tier 1 common equity ratio | 10.78 | % | 9.86 | % | 8.64 | % | ||||||||||
Tier 1 capital ratio | 13.37 | 12.40 | 11.32 | |||||||||||||
Common equity ratio | 9.80 | 9.94 | 9.42 | |||||||||||||
Tangible book value per share1 | $ | 12.87 | $ | 12.95 | $ | 13.21 | ||||||||||
Book value per share | 19.83 | 20.09 | 21.15 |
1 Tangible book value per share is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 23-26 of this press release.
The Tier 1 common equity ratio increased significantly during the first quarter to 10.78 percent from 9.86 percent at December 31, 2011 and 8.64 percent at March 31, 2011. The Tier 1 capital ratio was 13.37 percent at
The company’s total Global Excess Liquidity Sources increased
During the first quarter of 2012, a cash dividend of
Note: Chief Executive Officer
You should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risks, as well as those more fully discussed under Item 1A. “Risk Factors” of Bank of America’s 2011 Annual Report on Form 10-K, and in any of
Forward-looking statements speak only as of the date they are made, and
For more
Bank of America Corporation and Subsidiaries |
||||||||||||||||
Selected Financial Data | ||||||||||||||||
(Dollars in millions, except per share data; shares in thousands) | ||||||||||||||||
Summary Income Statement |
First Quarter 2012 |
Fourth Quarter 2011 |
First Quarter 2011 | |||||||||||||
Net interest income | $ | 10,846 | $ | 10,701 | $ | 12,179 | ||||||||||
Noninterest income | 11,432 | 14,187 | 14,698 | |||||||||||||
Total revenue, net of interest expense | 22,278 | 24,888 | 26,877 | |||||||||||||
Provision for credit losses | 2,418 | 2,934 | 3,814 | |||||||||||||
Goodwill impairment | — | 581 | — | |||||||||||||
Merger and restructuring charges | — | 101 | 202 | |||||||||||||
All other noninterest expense (1) | 19,141 | 18,840 | 20,081 | |||||||||||||
Income before income taxes | 719 | 2,432 | 2,780 | |||||||||||||
Income tax expense | 66 | 441 | 731 | |||||||||||||
Net income | $ | 653 | $ | 1,991 | $ | 2,049 | ||||||||||
Preferred stock dividends | 325 | 407 | 310 | |||||||||||||
Net income applicable to common shareholders | $ | 328 | $ | 1,584 | $ | 1,739 | ||||||||||
Earnings per common share | $ | 0.03 | $ | 0.15 | $ | 0.17 | ||||||||||
Diluted earnings per common share | 0.03 | 0.15 | 0.17 | |||||||||||||
Summary Average Balance Sheet |
First Quarter 2012 |
Fourth Quarter 2011 |
First Quarter 2011 | |||||||||||||
Total loans and leases | $ | 913,722 | $ | 932,898 | $ | 938,966 | ||||||||||
Debt securities | 327,758 | 332,990 | 335,847 | |||||||||||||
Total earning assets | 1,768,105 | 1,783,986 | 1,869,863 | |||||||||||||
Total assets | 2,187,174 | 2,207,567 | 2,338,538 | |||||||||||||
Total deposits | 1,030,112 | 1,032,531 | 1,023,140 | |||||||||||||
Common shareholders’ equity | 214,150 | 209,324 | 214,206 | |||||||||||||
Total shareholders’ equity | 232,566 | 228,235 | 230,769 | |||||||||||||
Performance Ratios |
First Quarter 2012 |
Fourth Quarter 2011 |
First Quarter 2011 | |||||||||||||
Return on average assets | 0.12 | % | 0.36 | % | 0.36 | % | ||||||||||
Return on average tangible shareholders’ equity (2) | 1.67 | 5.20 | 5.54 | |||||||||||||
Credit Quality |
First Quarter 2012 |
Fourth Quarter 2011 |
First Quarter 2011 | |||||||||||||
Total net charge-offs | $ | 4,056 | $ | 4,054 | $ | 6,028 | ||||||||||
Net charge-offs as a % of average loans and leases outstanding (3) | 1.80 | % | 1.74 | % | 2.61 | % | ||||||||||
Provision for credit losses | $ | 2,418 | $ | 2,934 | $ | 3,814 | ||||||||||
March 31 2012 |
December 31 2011 |
March 31 2011 | ||||||||||||||
Total nonperforming loans, leases and foreclosed properties (4) | $ | 27,790 | $ | 27,708 | $ | 31,643 | ||||||||||
Nonperforming loans, leases and foreclosed properties as a % of total loans, leases and foreclosed properties (3) | 3.10 | % | 3.01 | % | 3.40 | % | ||||||||||
Allowance for loan and lease losses | $ | 32,211 | $ | 33,783 | $ | 39,843 | ||||||||||
Allowance for loan and lease losses as a % of total loans and leases outstanding (3) | 3.61 | % | 3.68 | % | 4.29 | % | ||||||||||
For footnotes, see page 20. |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||
Selected Financial Data (continued) | |||||||||||||||||||||||||||||||||
(Dollars in millions, except per share data; shares in thousands) | |||||||||||||||||||||||||||||||||
Capital Management |
March 31 2012 |
December 31 2011 |
March 31 2011 | ||||||||||||||||||||||||||||||
Risk-based capital (5): | |||||||||||||||||||||||||||||||||
Tier 1 common capital (6) | $ | 131,602 | $ | 126,690 | $ | 123,882 | |||||||||||||||||||||||||||
Tier 1 common capital ratio (6) | 10.78 | % | 9.86 | % | 8.64 | % | |||||||||||||||||||||||||||
Tier 1 leverage ratio | 7.79 | 7.53 | 7.25 | ||||||||||||||||||||||||||||||
Tangible equity ratio (7) | 7.48 | 7.54 | 6.85 | ||||||||||||||||||||||||||||||
Tangible common equity ratio (7) | 6.58 | 6.64 | 6.10 | ||||||||||||||||||||||||||||||
Period-end common shares issued and outstanding | 10,775,604 | 10,535,938 | 10,131,803 | ||||||||||||||||||||||||||||||
First Quarter 2012 |
Fourth Quarter 2011 |
First Quarter 2011 | |||||||||||||||||||||||||||||||
Common shares issued (8) | 239,666 | 401,506 | 46,648 | ||||||||||||||||||||||||||||||
Average common shares issued and outstanding | 10,651,367 | 10,281,397 | 10,075,875 | ||||||||||||||||||||||||||||||
Average diluted common shares issued and outstanding | 10,761,917 | 11,124,523 | 10,181,351 | ||||||||||||||||||||||||||||||
Dividends paid per common share | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||||||||||||||||||||||
Summary Period-End Balance Sheet |
March 31 2012 |
December 31 2011 |
March 31 2011 | ||||||||||||||||||||||||||||||
Total loans and leases | $ | 902,294 | $ | 926,200 | $ | 932,425 | |||||||||||||||||||||||||||
Total debt securities | 331,245 | 311,416 | 330,776 | ||||||||||||||||||||||||||||||
Total earning assets | 1,744,452 | 1,704,855 | 1,838,871 | ||||||||||||||||||||||||||||||
Total assets | 2,181,449 | 2,129,046 | 2,274,532 | ||||||||||||||||||||||||||||||
Total deposits | 1,041,311 | 1,033,041 | 1,020,175 | ||||||||||||||||||||||||||||||
Total shareholders’ equity | 232,499 | 230,101 | 230,876 | ||||||||||||||||||||||||||||||
Common shareholders’ equity | 213,711 | 211,704 | 214,314 | ||||||||||||||||||||||||||||||
Book value per share of common stock | $ | 19.83 | $ | 20.09 | $ | 21.15 | |||||||||||||||||||||||||||
Tangible book value per share of common stock (2) | 12.87 | 12.95 | 13.21 |
(1) Excludes merger and restructuring charges and goodwill impairment charges.
(2) Return on average tangible shareholders’ equity and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. See Reconciliations to GAAP Financial Measures on pages 23-26.
(3) Ratios do not include loans accounted for under the fair value option during the period. Charge-off ratios are annualized for the quarterly presentation.
(4) Balances do not include past due consumer credit card, consumer loans secured by real estate where repayments are insured by the
(5) Reflects preliminary data for current period risk-based capital.
(6) Tier 1 common capital ratio equals Tier 1 capital excluding preferred stock, trust preferred securities, hybrid securities and minority interest divided by risk-weighted assets.
(7) 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 financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. See Reconciliations to GAAP Financial Measures on pages 23-26.
(8) Includes 400 million of common shares issued as part of the exchange of trust preferred securities and preferred stock during the fourth quarter of 2011.
Certain prior period amounts have been reclassified to conform to current period presentation.
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||
Quarterly Results by Business Segment | ||||||||||||||||||||||||||||
(Dollars in millions) | First Quarter 2012 | |||||||||||||||||||||||||||
Consumer & Business Banking |
Consumer Real Estate Services |
Global
Banking |
Global
Markets |
GWIM | All
Other | |||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 7,420 | $ | 2,674 | $ | 4,451 | $ | 4,193 | $ | 4,360 | $ | (613 | ) | |||||||||||||||
Provision for credit losses | 877 | 507 | (238 | ) | (20 | ) | 46 | 1,246 | ||||||||||||||||||||
Noninterest expense | 4,246 | 3,905 | 2,178 | 3,076 | 3,450 | 2,286 | ||||||||||||||||||||||
Net income (loss) | 1,454 | (1,145 | ) | 1,590 | 798 | 547 | (2,591 | ) | ||||||||||||||||||||
Return on average allocated equity | 11.05 | % | n/m | 13.79 | % | 18.19 | % | 12.78 | % | n/m | ||||||||||||||||||
Return on average economic capital (2) | 26.15 | n/m | 30.68 | 23.54 | 33.81 | n/m | ||||||||||||||||||||||
Balance Sheet |
||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||
Total loans and leases | $ | 141,578 | $ | 110,755 | $ | 277,096 | n/m | $ | 103,036 | $ | 264,113 | |||||||||||||||||
Total deposits | 466,239 | n/m | 237,532 | n/m | 252,705 | 39,774 | ||||||||||||||||||||||
Allocated equity | 52,947 | 14,791 | 46,393 | $ | 17,642 | 17,228 | 83,565 | |||||||||||||||||||||
Economic capital (2) | 22,424 | 14,791 | 20,857 | 13,669 | 6,587 | n/m | ||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||
Total loans and leases | $ | 138,909 | $ | 109,264 | $ | 272,224 | n/m | $ | 102,903 | $ | 260,006 | |||||||||||||||||
Total deposits | 486,160 | n/m | 237,608 | n/m | 252,755 | 30,146 | ||||||||||||||||||||||
Fourth Quarter 2011 | ||||||||||||||||||||||||||||
Consumer & Business Banking |
Consumer
Real Estate Services |
Global
Banking |
Global
Markets |
GWIM | All
Other | |||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 7,605 | $ | 3,276 | $ | 4,003 | $ | 1,805 | $ | 4,167 | $ | 4,290 | ||||||||||||||||
Provision for credit losses | 1,297 | 1,001 | (256 | ) | (18 | ) | 118 | 792 | ||||||||||||||||||||
Noninterest expense | 4,426 | 4,573 | 2,137 | 2,893 | 3,637 | 1,856 | ||||||||||||||||||||||
Net income (loss) | 1,243 | (1,444 | ) | 1,337 | (768 | ) | 259 | 1,364 | ||||||||||||||||||||
Return on average allocated equity | 9.31 | % | n/m | 11.34 | % | n/m | 5.78 | % | n/m | |||||||||||||||||||
Return on average economic capital (2) | 22.10 | n/m | 25.06 | n/m | 14.73 | n/m | ||||||||||||||||||||||
Balance Sheet |
||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||
Total loans and leases | $ | 147,150 | $ | 116,993 | $ | 276,844 | n/m | $ | 102,709 | $ | 272,808 | |||||||||||||||||
Total deposits | 459,819 | n/m | 240,732 | n/m | 250,040 | 46,055 | ||||||||||||||||||||||
Allocated equity | 53,005 | 14,757 | 46,762 | $ | 19,130 | 17,845 | 76,736 | |||||||||||||||||||||
Economic capital (2) | 22,418 | 14,757 | 21,187 | 15,154 | 7,182 | n/m | ||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||
Total loans and leases | $ | 146,378 | $ | 112,359 | $ | 278,177 | n/m | $ | 103,460 | $ | 267,621 | |||||||||||||||||
Total deposits | 464,263 | n/m | 246,466 | n/m | 253,264 | 32,729 | ||||||||||||||||||||||
First Quarter 2011 | ||||||||||||||||||||||||||||
Consumer & |
Consumer
Real Estate Services |
Global
Banking |
Global
Markets |
GWIM | All
Other | |||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 8,464 | $ | 2,063 | $ | 4,702 | $ | 5,272 | $ | 4,496 | $ | 2,098 | ||||||||||||||||
Provision for credit losses | 661 | 1,098 | (123 | ) | (33 | ) | 46 | 2,165 | ||||||||||||||||||||
Noninterest expense | 4,561 | 4,777 | 2,309 | 3,114 | 3,589 | 1,933 | ||||||||||||||||||||||
Net income (loss) | 2,041 | (2,400 | ) | 1,584 | 1,394 | 542 | (1,112 | ) | ||||||||||||||||||||
Return on average allocated equity | 15.41 | % | n/m | 13.00 | % | 22.02 | % | 12.26 | % | n/m | ||||||||||||||||||
Return on average economic capital (2) | 36.10 | n/m | 26.46 | 25.99 | 30.98 | n/m | ||||||||||||||||||||||
Balance Sheet |
||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||
Total loans and leases | $ | 160,976 | $ | 120,560 | $ | 256,846 | n/m | $ | 100,852 | $ | 288,301 | |||||||||||||||||
Total deposits | 457,037 | n/m | 225,785 | n/m | 258,719 | 50,107 | ||||||||||||||||||||||
Allocated equity | 53,700 | 18,736 | 49,407 | $ | 25,687 | 17,932 | 65,307 | |||||||||||||||||||||
Economic capital (2) | 23,002 | 15,994 | 24,299 | 21,814 | 7,204 | n/m | ||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||
Total loans and leases | $ | 156,950 | $ | 118,749 | $ | 257,468 | n/m | $ | 101,287 | $ | 286,531 | |||||||||||||||||
Total deposits | 471,009 | n/m | 229,199 | n/m | 256,751 | 36,154 |
(1) 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.
(2) Return on average economic capital is calculated as net income adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average economic capital. Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights). Economic capital and return on average economic capital are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. See Reconciliations to GAAP Financial Measures on pages 23-26.
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||
Supplemental Financial Data | |||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||
Fully taxable-equivalent (FTE) basis data (1) |
First Quarter 2012 |
Fourth Quarter 2011 |
First Quarter 2011 | ||||||||||||||||||||||||||||||
Net interest income | $ | 11,053 | $ | 10,959 | $ | 12,397 | |||||||||||||||||||||||||||
Total revenue, net of interest expense | 22,485 | 25,146 | 27,095 | ||||||||||||||||||||||||||||||
Net interest yield (2) | 2.51 | % | 2.45 | % | 2.67 | % | |||||||||||||||||||||||||||
Efficiency ratio | 85.13 | 77.64 | 74.86 | ||||||||||||||||||||||||||||||
Other Data |
March 31 2012 |
December 31 2011 |
March 31 2011 | ||||||||||||||||||||||||||||||
Number of banking centers - U.S. | 5,651 | 5,702 | 5,805 | ||||||||||||||||||||||||||||||
Number of branded ATMs - U.S. | 17,255 | 17,756 | 17,886 | ||||||||||||||||||||||||||||||
Ending full-time equivalent employees | 278,688 | 281,791 | 288,913 |
(1) FTE basis is a non-GAAP financial measure. FTE basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. See Reconciliations to GAAP Financial Measures on pages 23-26.
(2) Calculation includes fees earned on overnight deposits placed with the Federal Reserve of
Certain prior period amounts have been reclassified to conform to current period presentation.
Bank of America Corporation and Subsidiaries |
Reconciliations to GAAP Financial Measures |
(Dollars in millions) |
The Corporation evaluates its business based on a fully taxable-equivalent basis, a non-GAAP financial measure. The Corporation believes managing the business with net interest income on a fully taxable-equivalent basis provides a more accurate picture of the interest margin for comparative purposes. Total revenue, net of interest expense, includes net interest income on a fully taxable-equivalent basis and noninterest income. The Corporation views related ratios and analyses (i.e., efficiency ratios and net interest yield) on a fully taxable-equivalent basis. To derive the fully taxable-equivalent basis, net interest income is adjusted to reflect tax exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. 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 financial measure. Return on average tangible common shareholders’ equity measures the Corporation’s earnings contribution as a percentage of average common shareholders’ equity 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 ending common 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. The tangible equity ratio represents total ending 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 addition, the Corporation evaluates its business segment results based on return on average economic capital, a non-GAAP financial measure. Return on average economic capital for the segments is calculated as net income adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average economic capital. Economic capital represents average allocated equity less goodwill and a percentage of intangible assets. It also believes the use of this non-GAAP financial measure provides additional clarity in assessing the segments.
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 a goodwill impairment charge of
See the tables below and on pages 24-26 for reconciliations of these non-GAAP financial measures with financial measures defined by GAAP for the three months ended March 31, 2012, December 31, 2011 and March 31, 2011. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate supplemental financial data differently.
First Quarter 2012 |
Fourth Quarter 2011 |
First Quarter 2011 | ||||||||||||||
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis |
||||||||||||||||
Net interest income | $ | 10,846 | $ | 10,701 | $ | 12,179 | ||||||||||
Fully taxable-equivalent adjustment | 207 | 258 | 218 | |||||||||||||
Net interest income on a fully taxable-equivalent basis | $ | 11,053 | $ | 10,959 | $ | 12,397 | ||||||||||
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 | $ | 22,278 | $ | 24,888 | $ | 26,877 | ||||||||||
Fully taxable-equivalent adjustment | 207 | 258 | 218 | |||||||||||||
Total revenue, net of interest expense on a fully taxable-equivalent basis | $ | 22,485 | $ | 25,146 | $ | 27,095 | ||||||||||
Reconciliation of total noninterest expense to total noninterest expense, excluding goodwill impairment charge |
||||||||||||||||
Total noninterest expense | $ | 19,141 | $ | 19,522 | $ | 20,283 | ||||||||||
Goodwill impairment charge | — | (581 | ) | — | ||||||||||||
Total noninterest expense, excluding goodwill impairment charge | $ | 19,141 | $ | 18,941 | $ | 20,283 | ||||||||||
Reconciliation of income tax expense to income tax expense on a fully taxable-equivalent basis |
||||||||||||||||
Income tax expense | $ | 66 | $ | 441 | $ | 731 | ||||||||||
Fully taxable-equivalent adjustment | 207 | 258 | 218 | |||||||||||||
Income tax expense on a fully taxable-equivalent basis | $ | 273 | $ | 699 | $ | 949 | ||||||||||
Reconciliation of net income to net income, excluding goodwill impairment charge |
||||||||||||||||
Net income | $ | 653 | $ | 1,991 | $ | 2,049 | ||||||||||
Goodwill impairment charge | — | 581 | — | |||||||||||||
Net income, excluding goodwill impairment charge | $ | 653 | $ | 2,572 | $ | 2,049 | ||||||||||
|
||||||||||||||||
Reconciliation of net income applicable to common shareholders to net income applicable to common shareholders, excluding goodwill impairment charge |
| |||||||||||||||
Net income applicable to common shareholders | $ | 328 | $ | 1,584 | $ | 1,739 | ||||||||||
Goodwill impairment charge | — | 581 | — | |||||||||||||
Net income applicable to common shareholders, excluding goodwill impairment charge | $ | 328 | $ | 2,165 | $ | 1,739 | ||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
Bank of America Corporation and Subsidiaries | |||||||||||||||||
Reconciliations to GAAP Financial Measures (continued) | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
First Quarter 2012 |
Fourth Quarter 2011 |
First Quarter 2011 | |||||||||||||||
Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity |
|||||||||||||||||
Common shareholders’ equity | $ | 214,150 | $ | 209,324 | $ | 214,206 | |||||||||||
Goodwill | (69,967 | ) | (70,647 | ) | (73,922 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (7,869 | ) | (8,566 | ) | (9,769 | ) | |||||||||||
Related deferred tax liabilities | 2,700 | 2,775 | 3,035 | ||||||||||||||
Tangible common shareholders’ equity | $ | 139,014 | $ | 132,886 | $ | 133,550 | |||||||||||
Reconciliation of average shareholders’ equity to average tangible shareholders’ equity |
|||||||||||||||||
Shareholders’ equity | $ | 232,566 | $ | 228,235 | $ | 230,769 | |||||||||||
Goodwill | (69,967 | ) | (70,647 | ) | (73,922 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (7,869 | ) | (8,566 | ) | (9,769 | ) | |||||||||||
Related deferred tax liabilities | 2,700 | 2,775 | 3,035 | ||||||||||||||
Tangible shareholders’ equity | $ | 157,430 | $ | 151,797 | $ | 150,113 | |||||||||||
Reconciliation of period-end common shareholders’ equity to period-end tangible common shareholders’ equity |
|||||||||||||||||
Common shareholders’ equity | $ | 213,711 | $ | 211,704 | $ | 214,314 | |||||||||||
Goodwill | (69,976 | ) | (69,967 | ) | (73,869 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (7,696 | ) | (8,021 | ) | (9,560 | ) | |||||||||||
Related deferred tax liabilities | 2,628 | 2,702 | 2,933 | ||||||||||||||
Tangible common shareholders’ equity | $ | 138,667 | $ | 136,418 | $ | 133,818 | |||||||||||
Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity |
|||||||||||||||||
Shareholders’ equity | $ | 232,499 | $ | 230,101 | $ | 230,876 | |||||||||||
Goodwill | (69,976 | ) | (69,967 | ) | (73,869 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (7,696 | ) | (8,021 | ) | (9,560 | ) | |||||||||||
Related deferred tax liabilities | 2,628 | 2,702 | 2,933 | ||||||||||||||
Tangible shareholders’ equity | $ | 157,455 | $ | 154,815 | $ | 150,380 | |||||||||||
Reconciliation of period-end assets to period-end tangible assets |
|||||||||||||||||
Assets | $ | 2,181,449 | $ | 2,129,046 | $ | 2,274,532 | |||||||||||
Goodwill | (69,976 | ) | (69,967 | ) | (73,869 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (7,696 | ) | (8,021 | ) | (9,560 | ) | |||||||||||
Related deferred tax liabilities | 2,628 | 2,702 | 2,933 | ||||||||||||||
Tangible assets | $ | 2,106,405 | $ | 2,053,760 | $ | 2,194,036 | |||||||||||
Book value per share of common stock |
|||||||||||||||||
Common shareholders’ equity | $ | 213,711 | $ | 211,704 | $ | 214,314 | |||||||||||
Ending common shares issued and outstanding | 10,775,604 | 10,535,938 | 10,131,803 | ||||||||||||||
Book value per share of common stock | $ | 19.83 | $ | 20.09 | $ | 21.15 | |||||||||||
Tangible book value per share of common stock |
|||||||||||||||||
Tangible common shareholders’ equity | $ | 138,667 | $ | 136,418 | $ | 133,818 | |||||||||||
Ending common shares issued and outstanding | 10,775,604 | 10,535,938 | 10,131,803 | ||||||||||||||
Tangible book value per share of common stock | $ | 12.87 | $ | 12.95 | $ | 13.21 | |||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
Bank of America Corporation and Subsidiaries | |||||||||||||||||
Reconciliations to GAAP Financial Measures (continued) | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
First Quarter 2012 |
Fourth Quarter 2011 |
First Quarter 2011 | |||||||||||||||
Reconciliation of return on average economic capital |
|||||||||||||||||
Consumer & Business Banking |
|||||||||||||||||
Reported net income | $ | 1,454 | $ | 1,243 | $ | 2,041 | |||||||||||
Adjustment related to intangibles (1) | 3 | 5 | 7 | ||||||||||||||
Adjusted net income | $ | 1,457 | $ | 1,248 | $ | 2,048 | |||||||||||
Average allocated equity | $ | 52,947 | $ | 53,005 | $ | 53,700 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (30,523 | ) | (30,587 | ) | (30,698 | ) | |||||||||||
Average economic capital | $ | 22,424 | $ | 22,418 | $ | 23,002 | |||||||||||
Consumer Real Estate Services |
|||||||||||||||||
Reported net loss | $ | (1,145 | ) | $ | (1,444 | ) | $ | (2,400 | ) | ||||||||
Adjustment related to intangibles (1) | — | — | — | ||||||||||||||
Adjusted net loss | $ | (1,145 | ) | $ | (1,444 | ) | $ | (2,400 | ) | ||||||||
Average allocated equity | $ | 14,791 | $ | 14,757 | $ | 18,736 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles (excluding mortgage servicing rights) |
— | — | (2,742 | ) | |||||||||||||
Average economic capital | $ | 14,791 | $ | 14,757 | $ | 15,994 | |||||||||||
Global Banking |
|||||||||||||||||
Reported net income | $ | 1,590 | $ | 1,337 | $ | 1,584 | |||||||||||
Adjustment related to intangibles (1) | 1 | 1 | 2 | ||||||||||||||
Adjusted net income | $ | 1,591 | $ | 1,338 | $ | 1,586 | |||||||||||
Average allocated equity | $ | 46,393 | $ | 46,762 | $ | 49,407 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (25,536 | ) | (25,575 | ) | (25,108 | ) | |||||||||||
Average economic capital | $ | 20,857 | $ | 21,187 | $ | 24,299 | |||||||||||
Global Markets |
|||||||||||||||||
Reported net income (loss) | $ | 798 | $ | (768 | ) | $ | 1,394 | ||||||||||
Adjustment related to intangibles (1) | 2 | 3 | 3 | ||||||||||||||
Adjusted net income (loss) | $ | 800 | $ | (765 | ) | $ | 1,397 | ||||||||||
Average allocated equity | $ | 17,642 | $ | 19,130 | $ | 25,687 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (3,973 | ) | (3,976 | ) | (3,873 | ) | |||||||||||
Average economic capital | $ | 13,669 | $ | 15,154 | $ | 21,814 | |||||||||||
Global Wealth & Investment Management |
|||||||||||||||||
Reported net income | $ | 547 | $ | 259 | $ | 542 | |||||||||||
Adjustment related to intangibles (1) | 6 | 7 | 9 | ||||||||||||||
Adjusted net income | $ | 553 | $ | 266 | $ | 551 | |||||||||||
Average allocated equity | $ | 17,228 | $ | 17,845 | $ | 17,932 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (10,641 | ) | (10,663 | ) | (10,728 | ) | |||||||||||
Average economic capital | $ | 6,587 | $ | 7,182 | $ | 7,204 | |||||||||||
For footnote see page 26.
Certain prior period amounts have been reclassified to conform to current period presentation.
Bank of America Corporation and Subsidiaries | |||||||||||||||||
Reconciliations to GAAP Financial Measures (continued) | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
First Quarter 2012 |
Fourth Quarter 2011 |
First Quarter 2011 | |||||||||||||||
Consumer & Business Banking |
|||||||||||||||||
Deposits |
|||||||||||||||||
Reported net income | $ | 310 | $ | 149 | $ | 361 | |||||||||||
Adjustment related to intangibles (1) | — | 1 | 1 | ||||||||||||||
Adjusted net income | $ | 310 | $ | 150 | $ | 362 | |||||||||||
Average allocated equity | $ | 23,194 | $ | 23,862 | $ | 23,641 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (17,932 | ) | (17,939 | ) | (17,958 | ) | |||||||||||
Average economic capital | $ | 5,262 | $ | 5,923 | $ | 5,683 | |||||||||||
Card Services |
|||||||||||||||||
Reported net income | $ | 1,038 | $ | 1,029 | $ | 1,571 | |||||||||||
Adjustment related to intangibles (1) | 3 | 4 | 6 | ||||||||||||||
Adjusted net income | $ | 1,041 | $ | 1,033 | $ | 1,577 | |||||||||||
Average allocated equity | $ | 20,671 | $ | 20,610 | $ | 22,149 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (10,492 | ) | (10,549 | ) | (10,640 | ) | |||||||||||
Average economic capital | $ | 10,179 | $ | 10,061 | $ | 11,509 | |||||||||||
Business Banking |
|||||||||||||||||
Reported net income | $ | 106 | $ | 65 | $ | 109 | |||||||||||
Adjustment related to intangibles (1) | — | — | — | ||||||||||||||
Adjusted net income | $ | 106 | $ | 65 | $ | 109 | |||||||||||
Average allocated equity | $ | 9,082 | $ | 8,533 | $ | 7,910 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (2,099 | ) | (2,099 | ) | (2,100 | ) | |||||||||||
Average economic capital | $ | 6,983 | $ | 6,434 | $ | 5,810 | |||||||||||
(1) Represents cost of funds, earnings credits and certain expenses related to intangibles.
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.
Source:
Investors May Contact:
Kevin Stitt, Bank of America, 1.980.386.5667
Lee McEntire, Bank of America, 1.980.388.6780
Reporters May Contact:
Jerry Dubrowski, Bank of America, 1.980.388.2840
jerome.f.dubrowski@bankofamerica.com