Bank of America Reports Fourth-Quarter 2011 Net Income of $2.0 Billion, or $0.15 Per Diluted Share Full-Year 2011 Net Income of $1.4 Billion, or $0.01 Per Diluted Share
Supplemental Fourth Quarter 2011 Financial Information
Strong Capital Generation With Tier 1 Common Equity Ratio at 9.86 Percent
Global Excess Liquidity Sources Remain Strong at
Investment Bank Maintained No. 2 Global Ranking in Net Investment Banking Fees and Gained Market Share in 2011
Total Average Commercial and Industrial Loan Balances Increased 13 Percent From the Fourth Quarter of 2010
Small Business Loan Originations and Commitments up Approximately 20 Percent in 2011, More Than 500 Small Business Bankers Hired in 2011
Global Wealth and Investment Management Adds Nearly 1,700
Extended Approximately
More Than 1 Million Mortgage Loan Modifications Completed Since 2008
For the full year, the company reported net income of
"We enter 2012 stronger and more efficient after two years of simplifying and streamlining our company," said Chief Executive Officer
“Our fourth-quarter results reflect the aggressive steps we have been taking to strengthen the balance sheet and position the company for long-term growth," said Chief Financial Officer
“Reflecting a gradually improving economy,” continued Moynihan, "we saw solid business activity by companies of all sizes, with commercial and industrial loan balances rising 13 percent from the fourth quarter of 2010, and small business loan originations increasing approximately 20 percent in calendar year 2011."
Selected Financial Highlights | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
(Dollars in millions except per share data) | December 31 2011 |
December 31 2010 |
December 31 2011 |
December 31 2010 | ||||||||||||
Net interest income, FTE basis1 | $ | 10,959 | $ | 12,709 | $ | 45,588 | $ | 52,693 | ||||||||
Noninterest income | 14,187 | 9,959 | 48,838 | 58,697 | ||||||||||||
Total revenue, net of interest expense, FTE basis | 25,146 | 22,668 | 94,426 | 111,390 | ||||||||||||
Provision for credit losses | 2,934 | 5,129 | 13,410 | 28,435 | ||||||||||||
Noninterest expense2 |
18,941 | 18,864 | 77,090 | 70,708 | ||||||||||||
Goodwill impairment charges | 581 | 2,000 | 3,184 | 12,400 | ||||||||||||
Net income (loss) | 1,991 | (1,244 | ) | 1,446 | (2,238 | ) | ||||||||||
Diluted earnings (loss) per common share | $ | 0.15 | $ | (0.16 | ) | $ | 0.01 | $ | (0.37 | ) | ||||||
1 Fully taxable-equivalent (FTE) basis is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 25-27 of this press release. Net interest income on a GAAP basis was $10.7 billion and $12.4 billion for the three months ended December 31, 2011 and 2010, and $44.6 billion and $51.5 billion for the years ended December 31, 2011 and 2010. Total revenue, net of interest expense on a GAAP basis, was $24.9 billion and $22.4 billion for the three months ended December 31, 2011 and 2010, and $93.5 billion and $110.2 billion for the years ended December 31, 2011 and 2010. | ||||||||||||||||
2 Excludes goodwill impairment charges of $581 million and $2.0 billion in the three months ended December 31, 2011 and 2010, and $3.2 billion and $12.4 billion for the years ended December 31, 2011 and 2010. Noninterest expense, excluding goodwill charges, is a non-GAAP financial measure. | ||||||||||||||||
The following is a list of selected items that affected fourth-quarter 2011 financial results. | ||||||
Selected Fourth-Quarter 2011 Items1 | ||||||
(Dollars in billions) | ||||||
Gain on sale of China Construction Bank shares | $ | 2.9 | ||||
Gain on exchange of trust preferred securities | 1.2 | |||||
Gains on sales of debt securities | 1.2 | |||||
Representations and warranties provision | (0.3 | ) | ||||
Debit Valuation Adjustments (DVA) on trading liabilities | (0.5 | ) | ||||
Goodwill impairment | (0.6 | ) | ||||
Fair value adjustment on structured liabilities | (0.8 | ) | ||||
Mortgage-related litigation expense | (1.5 | ) | ||||
1 All items pretax. | ||||||
Key Business Highlights
The company made significant progress in 2011 in line with its operating principles, including the following developments:
Focus on customer-driven businesses
Bank of America extended approximately$557 billion in credit in 2011. This included$317.7 billion in commercial non-real estate loans,$151.8 billion in residential first mortgages,$36.5 billion in commercial real estate loans,$19.4 billion in U.S. consumer and small business card,$4.4 billion in home equity products and$27.5 billion in other consumer credit.
- The
$151.8 billion in residential first mortgages funded in 2011 helped more than 695,000 homeowners either purchase a home or refinance an existing mortgage. This included approximately 47,000 first-time homebuyer mortgages originated by retail channels, and more than 237,000 mortgages to low- and moderate-income borrowers. Approximately 40 percent of funded first mortgages were for home purchases and 60 percent were refinances.
- The company originated
$6.4 billion in small business loans and commitments in 2011 and hired more than 500 new small business bankers during the year to further support small business customers.
- The company raised
$644 billion in capital for clients in 2011 to help support the economy.
- Average deposit balances rose nearly
$25 billion to $1.03 trillion in the fourth quarter of 2011 from$1.01 trillion in the fourth quarter of 2010.
- Global Wealth and Investment Management added more than 200
Financial Advisors in the fourth quarter of 2011, bringing the total number ofFinancial Advisors added in 2011 to nearly 1,700.
- Business activity with corporate banking clients continued to increase with average loans and leases up 29 percent from the fourth quarter of 2010 and average deposit balances up 10 percent from the fourth quarter of 2010.
Bank of America Merrill Lynch maintained its No. 2 global ranking in net investment banking fees and increased its market share in 2011 to 7.4 percent from 6.8 percent in 2010, excluding self-led deals, as reported byDealogic . Also,Bank of America Merrill Lynch was named "Top Global Research Firm of 2011" by Institutional Investor.
Building a fortress balance sheet
- Regulatory capital ratios increased significantly, with the Tier 1 common equity ratio increasing to 9.86 percent in the fourth quarter of 2011, up 121 basis points from the third quarter of 2011 and 126 basis points higher than the fourth quarter of 2010. The tangible common equity ratio2 increased to 6.64 percent in the fourth quarter of 2011, up 39 basis points from the third quarter of 2011 and 65 basis points higher than the fourth quarter of 2010.
- The company substantially improved its funding position in 2011 by increasing overall liquidity and reducing debt. Global Excess Liquidity Sources increased to
$378 billion atDecember 31, 2011 , up from$363 billion atSeptember 30, 2011 and$336 billion atDecember 31, 2010 . Long-term debt declined to$372 billion atDecember 31, 2011 from$399 billion atSeptember 30, 2011 and$448 billion atDecember 31, 2010 .
- Time-to-required funding increased to 29 months at the end of 2011 from 27 months at
September 30, 2011 and 24 months atDecember 31, 2010 .
- In 2011,
Bank of America generated$34 billion in proceeds from the sale of non-core assets and businesses, generating 79 basis points of Tier 1 common equity and reducing risk-weighted assets by$29 billion .
Pursuing operational excellence in efficiency and risk management
- The company continued to focus on strengthening its risk culture in 2011, driving accountability more deeply into the company, and simplifying the organization by selling non-core assets and businesses.
- The provision for credit losses declined 43 percent from the year-ago quarter, reflecting improved credit quality across all major consumer and commercial portfolios and underwriting changes implemented over the past several years.
- The allowance for loan and lease losses to annualized net charge-off coverage ratio increased in the fourth quarter to 2.10 times, compared with 1.74 times in the third quarter of 2011 and 1.56 times in the fourth quarter of 2010. Excluding purchased credit-impaired loans, the allowance to annualized net charge-off coverage ratio was 1.57 times, 1.33 times and 1.32 times for the same periods, respectively.
- The company continued to prudently manage its sovereign and non-sovereign exposures in
Europe . Total exposure toGreece ,Italy ,Ireland ,Portugal , andSpain , excluding net credit default protection, declined to$14.4 billion atDecember 31, 2011 , compared to$15.8 billion atDecember 31, 2010 . Since the end of 2009, total exposure to these countries is down 44 percent.
- At
December 31, 2011 , the number of full-time employees was down to 281,791 from 288,739 at the end of the third quarter of 2011 and 288,128 atDecember 31, 2010 .
- At the center of the company's pursuit of operational excellence is Project New BAC, a comprehensive two-phase initiative designed to simplify and streamline the company, align expenses and increase revenues. Phase 1 evaluations were completed in the third quarter of 2011. Phase 2 evaluations, which began in the fourth quarter of 2011, are expected to continue into early 2012 and cover the balance of businesses and operations that were not evaluated in Phase 1.
Delivering on the shareholder return model
- The company continued to focus on streamlining the balance sheet by selling non-core assets, addressing legacy issues, reducing debt and implementing its customer-focused strategy while focusing on reducing expenses to position the company for long-term growth.
- Tangible book value per share3 was
$12.95 atDecember 31, 2011 , compared to$12.98 atDecember 31, 2010 . Book value per share was$20.09 atDecember 31, 2011 , compared to$20.99 atDecember 31, 2010 .
- The company took significant actions during the fourth quarter to strengthen the balance sheet. In aggregate, these actions increased the Tier 1 common equity ratio by 121 basis points from the third quarter of 2011.
Continuing to address legacy issues
- Since 2008, more than 1 million modifications of first and second lien mortgages have been completed, of which 78 percent were completed using
Bank of America proprietary programs, and the remainder were completed through the federal government's HAMP and 2MP programs.
- The mortgage servicing portfolio declined to
$1.8 trillion at the end of 2011 from$1.9 trillion at the end of the third quarter of 2011 and$2.1 trillion at the end of 2010 as the company continued to reduce the size of this portfolio.
- The number of 60+ day delinquent first mortgage loans serviced by Legacy Asset Servicing declined to 1.1 million at the end of the fourth quarter of 2011 from 1.2 million at the end of the third quarter of 2011 and 1.4 million at the end of the fourth quarter of 2010.
- The company ended 2011 with
$15.9 billion reserved to address potential representations and warranties mortgage repurchase claims, a significant increase from the year-ago liability of$5.4 billion .
1 Fully taxable-equivalent (FTE) basis is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 25-27 of this press release. Total revenue, net of interest expense on a GAAP basis, was
2 Tangible common equity ratio is a non-GAAP financial measure. For a reconciliation to GAAP financial measures, refer to pages 25-27 of this press release. The common equity ratio was 9.94 percent at December 31, 2011, 9.50 percent at September 30, 2011 and 9.35 percent at December 31, 2010.
3 Tangible book value per share is a non-GAAP financial measure. For a reconciliation to GAAP financial measures, refer to pages 25-27 of this press release.
Business Segment Results | ||||||||||||||||
Deposits | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
(Dollars in millions) | December 31 2011 |
December 31 2010 |
December 31 2011 |
December 31 2010 | ||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 3,080 | $ | 3,003 | $ | 12,689 | $ | 13,562 | ||||||||
Provision for credit losses | 57 | 41 | 173 | 201 | ||||||||||||
Noninterest expense | 2,798 | 3,270 | 10,633 | 11,196 | ||||||||||||
Net income (loss) | $ | 141 | $ | (200 | ) | $ | 1,192 | $ | 1,362 | |||||||
Return on average equity | 2.34 | % | n/m | 5.02 | % | 5.62 | % | |||||||||
Return on average economic capital1 | 9.51 | % | n/m | 20.66 | % | 21.97 | % | |||||||||
Average deposits | $ | 417,110 | $ | 413,150 | $ | 421,106 | $ | 414,877 | ||||||||
At December |
At December | |||||||||||||||
Client brokerage assets | $ | 66,576 | $ | 63,597 | ||||||||||||
1 Return on average economic capital is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 25-27 of this press release. | ||||||||||||||||
n/m = not meaningful |
Business Highlights
- Average deposit balances increased
$4.0 billion from the year-ago quarter, driven by growth in liquid products in a low-rate environment. The rates paid on deposits declined 12 basis points to 0.23 percent in the fourth quarter of 2011 from 0.35 percent in the year-ago quarter due to pricing discipline and a shift in the mix of deposits.
- The number of mobile banking customers continued to grow in 2011, with total mobile banking customers increasing 45 percent from a year ago to 9.2 million customers.
Financial Overview
Deposits reported net income of
Revenue of
Noninterest expense was down
Card Services | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
(Dollars in millions) | December 31 2011 |
December 31 2010 |
December 31 2011 |
December 31 2010 | ||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,060 | $ | 5,357 | $ | 18,143 | $ | 22,340 | ||||||||
Provision for credit losses | 1,138 | 1,846 | 3,072 | 10,962 | ||||||||||||
Noninterest expense1 |
1,393 | 1,463 | 6,024 | 16,357 | ||||||||||||
Net income (loss) | $ | 1,022 | $ | 1,289 | $ | 5,788 | $ | (6,980 | ) | |||||||
Return on average equity | 19.69 | % | 21.74 | % | 27.40 | % | n/m | |||||||||
Return on average economic capital2 |
40.48 | % | 40.28 | % | 55.08 | % | 23.62 | % | ||||||||
Average loans | $ | 121,124 | $ | 136,738 | $ | 126,084 | $ | 145,081 | ||||||||
At December |
At December | |||||||||||||||
Period-end loans |
$ | 120,669 | $ | 137,024 | ||||||||||||
1 Includes a goodwill impairment charge of $10.4 billion in the third quarter of 2010. | ||||||||||||||||
2 Return on average economic capital is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 25-27 of this press release. | ||||||||||||||||
n/m = not meaningful |
Business Highlights
- New U.S. credit card accounts grew 53 percent in the fourth quarter of 2011 as compared to the year-ago quarter.
- Credit quality continued to improve with the 30+ day delinquency rate declining for the 11th consecutive quarter.
- Return on average equity remained strong at 19.69 percent in the fourth quarter of 2011.
Financial Overview
Card Services reported net income of
Revenue declined 24 percent to
Provision for credit losses decreased
Global Wealth and Investment Management | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
(Dollars in millions) | December 31 2011 |
December 31 2010 |
December 31 2011 |
December 31 2010 | ||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,164 | $ | 4,161 | $ | 17,376 | $ | 16,289 | ||||||||
Provision for credit losses | 118 | 155 | 398 | 646 | ||||||||||||
Noninterest expense | 3,649 | 3,489 | 14,395 | 13,227 | ||||||||||||
Net income | $ | 249 | $ | 319 | $ | 1,635 | $ | 1,340 | ||||||||
Return on average equity | 5.54 | % | 6.94 | % | 9.19 | % | 7.42 | % | ||||||||
Return on average economic capital1 | 14.13 | % | 17.97 | % | 23.44 | % | 19.57 | % | ||||||||
Average loans | $ | 102,708 | $ | 100,306 | $ | 102,143 | $ | 99,269 | ||||||||
Average deposits | 249,814 | 246,281 | 254,777 | 232,318 | ||||||||||||
(in billions) |
At December |
At December | ||||||||||||||
Assets under management | $ | 647.1 | $ | 643.3 | ||||||||||||
Total client balances2 |
2,135.8 | 2,181.3 | ||||||||||||||
1 Return on average economic capital is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 25-27 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
- Asset management fees increased 4 percent from the year-ago quarter to
$1.5 billion , driven by strong long-term assets under management flows of$27 billion in 2011, compared to$14 billion in 2010.
- Full-year average deposit balances increased 10 percent from 2010 to
$254.8 billion , and full-year average loan balances grew 3 percent to$102.1 billion .
Financial Overview
Global Wealth and Investment Management net income decreased 22 percent from the year-ago quarter. Revenue was flat compared to the year-ago quarter at
The provision for credit losses decreased
Noninterest expense increased 5 percent from the year-ago quarter to
Consumer Real Estate Services | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
(Dollars in millions) | December 31 2011 |
December 31 2010 |
December 31 2011 |
December 31 2010 | ||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 3,276 | $ | 480 | $ | (3,154 | ) | $ | 10,329 | |||||||
Provision for credit losses | 1,001 | 1,198 | 4,524 | 8,490 | ||||||||||||
Noninterest expense1 | 4,596 | 5,980 | 21,893 | 14,886 | ||||||||||||
Net loss | $ | (1,459 | ) | $ | (4,937 | ) | $ | (19,529 | ) | $ | (8,947 | ) | ||||
Average loans | 116,993 | 124,933 | 119,820 | 129,234 | ||||||||||||
At December |
At December | |||||||||||||||
Period-end loans | $ | 112,359 | $ | 122,933 | ||||||||||||
1 Includes goodwill impairment charges of $2.6 billion in the second quarter of 2011 and $2.0 billion in the fourth quarter of 2010. |
Business Highlights
- The company funded
$22.4 billion in residential home loans and home equity loans during the fourth quarter of 2011.
- The company continued to make progress on legacy issues. The mortgage servicing portfolio declined to
$1.8 trillion at the end of 2011 from$1.9 trillion at the end of the third quarter of 2011 and$2.1 trillion at the end of fourth quarter of 2010. The number of 60+ day delinquent first mortgage loans serviced by Legacy Asset Servicing declined to 1.1 million at the end of the fourth quarter of 2011 from 1.2 million at the end of the third quarter of 2011 and 1.4 million at the end of the fourth quarter of 2010.
Financial Overview
Consumer Real Estate Services reported a net loss of
The increase in revenue was primarily driven by a
Representations and warranties provision was
Provision for credit losses in the fourth quarter of 2011 decreased
Noninterest expense, excluding a goodwill impairment chargeof
Global Commercial Banking | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
(Dollars in millions) | December 31 2011 |
December 31 2010 |
December 31 2011 |
December 31 2010 | ||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 2,556 | $ | 2,614 | $ | 10,553 | $ | 11,226 | ||||||||
Provision for credit losses | (146 | ) | (136 | ) | (634 | ) | 1,979 | |||||||||
Noninterest expense | 1,039 | 1,061 | 4,234 | 4,130 | ||||||||||||
Net income | $ | 1,048 | $ | 1,053 | $ | 4,402 | $ | 3,218 | ||||||||
Return on average equity | 10.22 | % | 9.72 | % | 10.77 | % | 7.38 | % | ||||||||
Return on average economic capital1 | 20.78 | % | 18.75 | % | 21.83 | % | 14.07 | % | ||||||||
Average loans and leases | $ | 187,905 | $ | 195,293 | $ | 189,415 | $ | 203,824 | ||||||||
Average deposits | 176,010 | 156,672 | 169,192 | 148,638 | ||||||||||||
1 Return on average economic capital is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 25-27 of this press release. | ||||||||||||||||
Business Highlights
- Average commercial and industrial loans grew
$4 billion , or 4 percent, from the year-ago quarter driven by middle-market clients.
- Credit quality continued to improve as nonperforming assets declined by
$3.1 billion , or 35 percent, and total reservable criticized loans declined by$12.6 billion , or 38 percent, versus the year-ago quarter.
Financial Overview
Global Commercial Banking reported net income of
The provision for credit losses was relatively flat compared to the year-ago quarter with a benefit of
Average deposit balances continued to grow, increasing by
Global Banking and Markets | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
(Dollars in millions) | December 31 2011 |
December 31 2010 |
December 31 2011 |
December 31 2010 | ||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 3,722 | $ | 5,364 | $ | 23,618 | $ | 27,949 | ||||||||
Provision for credit losses | (27 | ) | (112 | ) | (296 | ) | (166 | ) | ||||||||
Noninterest expense | 4,287 | 4,321 | 18,179 | 17,535 | ||||||||||||
Net income (loss) | $ | (433 | ) | $ | 669 | $ | 2,967 | $ | 6,297 | |||||||
Return on average equity | n/m | 5.65 | % | 7.97 | % | 12.58 | % | |||||||||
Return on average economic capital1 | n/m | 7.28 | % | 11.22 | % | 15.82 | % | |||||||||
Total average assets | $ | 694,727 | $ | 733,732 | $ | 725,177 | $ | 753,844 | ||||||||
Total average deposits | 115,267 | 104,655 | 116,088 | 97,858 | ||||||||||||
1 Return on average economic capital is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 25-27 of this press release. | ||||||||||||||||
n/m = not meaningful | ||||||||||||||||
Business Highlights
- Average loan and lease balances and average deposit balances increased 30 percent and 10 percent versus the year-ago quarter, primarily driven by strong growth across all regions.
Bank of America Merrill Lynch maintained its No. 2 global ranking in net investment banking fees and increased its market share in 2011 to 7.4 percent from 6.8 percent in 2010, excluding self-led deals, as reported byDealogic . Also,Bank of America Merrill Lynch was named "Top Global Research Firm of 2011" by Institutional Investor.
Financial Overview
Global Banking and Markets reported a net loss of
Noninterest expense of
Provision for credit losses increased by
Sales and trading revenue was
Fixed Income, Currency and Commodities sales and trading revenue, excluding DVA losses, was
Firmwide investment banking fees, including self-led deals, declined to
All Other1 | ||||||||||||
Three Months Ended | Year Ended | |||||||||||
(Dollars in millions) | December 31 2011 |
December 31 2010 |
December 31 2011 |
December 31 2010 | ||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,288 | $ | 1,689 | $ | 15,201 | $ | 9,695 | ||||
Provision for credit losses | 793 | 2,137 | 6,173 | 6,323 | ||||||||
Noninterest expense | 1,760 | 1,280 | 4,916 | 5,777 | ||||||||
Net income | $ | 1,423 | $ | 563 | $ | 4,991 | $ | 1,472 | ||||
Total average loans | 272,807 | 282,125 | 283,890 | 281,642 | ||||||||
1 All Other consists primarily of equity investments, the residential mortgage portfolio associated with ALM activities, the residual impact of the cost allocation process, merger and restructuring charges, intersegment eliminations, fair value adjustments related to structured liabilities and the results of certain consumer finance, investment management and commercial lending businesses that are being liquidated. | ||||||||||||
All Other reported net income of
Equity investment income was
Provision for credit losses decreased
Corporate Overview | ||||||||||||||
Revenue and Expense | ||||||||||||||
Three Months Ended | Year Ended | |||||||||||||
(Dollars in millions) | December 31 2011 |
December 31 2010 |
December 31 2011 |
December 31 2010 | ||||||||||
Net interest income, FTE basis1 |
$ | 10,959 | $ | 12,709 | $ | 45,588 | $ | 52,693 | ||||||
Noninterest income | 14,187 | 9,959 | 48,838 | 58,697 | ||||||||||
Total revenue, net of interest expense, FTE basis | $ | 25,146 | $ | 22,668 | $ | 94,426 | $ | 111,390 | ||||||
Noninterest expense2 |
$ | 18,941 | $ | 18,864 | $ | 77,090 | $ | 70,708 | ||||||
Goodwill impairment charges | 581 | 2,000 | 3,184 | 12,400 | ||||||||||
Net income (loss) | $ | 1,991 | $ | (1,244 | ) | $ | 1,446 | $ | (2,238 | ) | ||||
1 Fully taxable-equivalent (FTE) basis is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 25-27 of this press release. Net interest income on a GAAP basis was $10.7 billion and $12.4 billion for the three months ended December 31, 2011 and 2010 and $44.6 billion and $51.5 billion for the years ended December 31, 2011 and 2010. Total revenue, net of interest expense on a GAAP basis was $24.9 billion and $22.4 billion for the three months ended December 31, 2011 and 2010, and $93.5 billion and $110.2 billion for the years ended December 31, 2011 and 2010. | ||||||||||||||
2 Excludes goodwill impairment charges of $581 million and $2.0 billion in the fourth quarters of 2011 and 2010, and $3.2 billion and $12.4 billion for the years ended December 31, 2011 and 2010, respectively. Noninterest expense, excluding goodwill impairment charges, is a non-GAAP financial measure. | ||||||||||||||
Revenue, net of interest expense, on a fully taxable-equivalent (FTE) basis rose 11 percent from the fourth quarter of 2010, reflecting higher noninterest income partially offset by lower net interest income.
Net interest income on an FTE basis decreased 14 percent from the year-ago quarter. The net interest yield fell 24 basis points from the year-ago quarter, driven by lower investment security yields along with reductions in consumer loan balances and yields.
Noninterest income increased
Noninterest expense decreased
The tax provision for the fourth quarter of 2011 was
Credit Quality | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
(Dollars in millions) | December 31 2011 |
December 31 2010 |
December 31 2011 |
December 31 2010 | ||||||||||||
Provision for credit losses | $ | 2,934 | $ | 5,129 | $ | 13,410 | $ | 28,435 | ||||||||
Net charge-offs | 4,054 | 6,783 | 20,833 | 34,334 | ||||||||||||
Net charge-off ratio1 | 1.74 | % | 2.87 | % | 2.24 | % | 3.60 | % | ||||||||
At December 31, 2011 | At December 31, 2010 | |||||||||||||||
Nonperforming loans, leases and foreclosed properties | $ | 27,708 | $ | 32,664 | ||||||||||||
Nonperforming loans, leases and foreclosed properties ratio2 | 3.01 | % | 3.48 | % | ||||||||||||
Allowance for loan and lease losses | $ | 33,783 | $ | 41,885 | ||||||||||||
Allowance for loan and lease losses ratio3 | 3.68 | % | 4.47 | % | ||||||||||||
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 fourth quarter, with net charge-offs declining across all major portfolios, compared to the fourth quarter of 2010. Provision for credit losses decreased significantly from a year ago. Additionally, 30+ day performing delinquent loans, excluding
Net charge-offs declined to
The provision for credit losses declined to
The allowance for loan and lease losses to annualized net charge-off coverage ratio increased in the fourth quarter of 2011 to 2.10 times, compared with 1.74 times in the third quarter of 2011 and 1.56 times in the fourth quarter of 2010. Excluding purchased credit-impaired loans, the allowance to annualized net charge-off coverage ratio was 1.57 times, 1.33 times and 1.32 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 December 31 |
At September 30 |
At December 31 | |||||||||
Total shareholders’ equity | $ | 230,101 | $ | 230,252 | $ | 228,248 | ||||||
Tier 1 common equity | 126,690 | 117,658 | 125,139 | |||||||||
Tier 1 common equity ratio | 9.86 | % | 8.65 | % | 8.60 | % | ||||||
Tangible common equity ratio1 |
6.64 | 6.25 | 5.99 | |||||||||
Common equity ratio | 9.94 | 9.50 | 9.35 | |||||||||
Tangible book value per share1 |
$ | 12.95 | $ | 13.22 | $ | 12.98 | ||||||
Book value per share | 20.09 | 20.80 | 20.99 | |||||||||
1 Tangible common equity ratio and tangible book value per share are non-GAAP financial measures. For reconciliation to GAAP financial measures, refer to pages 25-27 of this press release. | ||||||||||||
Regulatory capital ratios increased significantly during the fourth quarter, compared to the prior quarter and the fourth quarter of 2010, with the Tier 1 common equity ratio at 9.86 percent, and the Tangible common equity ratio at 6.64 percent. This compares with a Tier 1 common equity ratio of 8.65 percent at
Significant capital actions taken during the quarter that contributed to these increases were the exchange of preferred and trust preferred securities for 400 million shares of common stock and
The company's total Global Excess Liquidity Sources increased approximately
During the fourth quarter of 2011, 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
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 |
Year Ended December 31 |
Fourth Quarter 2011 |
Third Quarter 2011 |
Fourth Quarter 2010 | ||||||||||||||||
2011 | 2010 | |||||||||||||||||||
Net interest income | $ | 44,616 | $ | 51,523 | $ | 10,701 | $ | 10,490 | $ | 12,439 | ||||||||||
Noninterest income | 48,838 | 58,697 | 14,187 | 17,963 | 9,959 | |||||||||||||||
Total revenue, net of interest expense |
93,454 | 110,220 | 24,888 | 28,453 | 22,398 | |||||||||||||||
Provision for credit losses | 13,410 | 28,435 | 2,934 | 3,407 | 5,129 | |||||||||||||||
Goodwill impairment | 3,184 | 12,400 | 581 | — | 2,000 | |||||||||||||||
Merger and restructuring charges | 638 | 1,820 | 101 | 176 | 370 | |||||||||||||||
All other noninterest expense (1) | 76,452 | 68,888 | 18,840 | 17,437 | 18,494 | |||||||||||||||
Income (loss) before income taxes | (230 | ) | (1,323 | ) | 2,432 | 7,433 | (3,595 | ) | ||||||||||||
Income tax expense (benefit) | (1,676 | ) | 915 | 441 | 1,201 | (2,351 | ) | |||||||||||||
Net income (loss) | $ | 1,446 | $ | (2,238 | ) | $ | 1,991 | $ | 6,232 | $ | (1,244 | ) | ||||||||
Preferred stock dividends | 1,361 | 1,357 | 407 | 343 | 321 | |||||||||||||||
Net income (loss) applicable to common shareholders | $ | 85 | $ | (3,595 | ) | $ | 1,584 | $ | 5,889 | $ | (1,565 | ) | ||||||||
Earnings (loss) per common share | $ | 0.01 | $ | (0.37 | ) | $ | 0.15 | $ | 0.58 | $ | (0.16 | ) | ||||||||
Diluted earnings (loss) per common share | 0.01 | (0.37 | ) | 0.15 | 0.56 | (0.16 | ) | |||||||||||||
Summary Average Balance Sheet |
Year Ended December 31 |
Fourth Quarter 2011 |
Third Quarter 2011 |
Fourth Quarter 2010 | ||||||||||||||||
2011 | 2010 | |||||||||||||||||||
Total loans and leases | $ | 938,096 | $ | 958,331 | $ | 932,898 | $ | 942,032 | $ | 940,614 | ||||||||||
Debt securities | 337,120 | 323,946 | 332,990 | 344,327 | 341,867 | |||||||||||||||
Total earning assets | 1,834,659 | 1,897,573 | 1,783,986 | 1,841,135 | 1,883,539 | |||||||||||||||
Total assets | 2,296,322 | 2,439,606 | 2,207,567 | 2,301,454 | 2,370,258 | |||||||||||||||
Total deposits | 1,035,802 | 988,586 | 1,032,531 | 1,051,320 | 1,007,738 | |||||||||||||||
Common shareholders’ equity | 211,709 | 212,686 | 209,324 | 204,928 | 218,728 | |||||||||||||||
Total shareholders’ equity | 229,095 | 233,235 | 228,235 | 222,410 | 235,525 | |||||||||||||||
Performance Ratios |
Year Ended December 31 |
Fourth Quarter 2011 |
Third Quarter 2011 |
Fourth Quarter 2010 | ||||||||||||||||
2011 | 2010 | |||||||||||||||||||
Return on average assets | 0.06 | % | n/m | 0.36 | % | 1.07 | % | n/m | ||||||||||||
Return on average tangible shareholders’ equity (2) | 0.96 | n/m | 5.20 | 17.03 | n/m | |||||||||||||||
Credit Quality |
Year Ended December 31 |
Fourth Quarter 2011 |
Third Quarter 2011 |
Fourth Quarter 2010 | ||||||||||||||||
2011 | 2010 | |||||||||||||||||||
Total net charge-offs | $ | 20,833 | $ | 34,334 | $ | 4,054 | $ | 5,086 | $ | 6,783 | ||||||||||
Net charge-offs as a % of average loans and leases outstanding (3) | 2.24 | % | 3.60 | % | 1.74 | % | 2.17 | % | 2.87 | % | ||||||||||
Provision for credit losses | $ | 13,410 | $ | 28,435 | $ | 2,934 | $ | 3,407 | $ | 5,129 | ||||||||||
December 31 2011 |
September 30 2011 |
December 31 2010 | ||||||||||||||||||
Total nonperforming loans, leases and foreclosed properties (4) | $ | 27,708 | $ | 29,059 | $ | 32,664 | ||||||||||||||
Nonperforming loans, leases and foreclosed properties as a % of total loans, leases and foreclosed properties (3) |
3.01 | % | 3.15 | % | 3.48 | % | ||||||||||||||
Allowance for loan and lease losses | $ | 33,783 | $ | 35,082 | $ | 41,885 | ||||||||||||||
Allowance for loan and lease losses as a % of total loans and leases outstanding (3) | 3.68 | % | 3.81 | % | 4.47 | % | ||||||||||||||
For footnotes, see page 22. | ||||||||||||||||||||
Bank of America Corporation and Subsidiaries |
||||||||||||||||||||
Selected Financial Data | ||||||||||||||||||||
(Dollars in millions, except per share data; shares in thousands) | ||||||||||||||||||||
Capital Management |
December 31 2011 |
September 30 2011 |
December 31 2010 | |||||||||||||||||
Risk-based capital (5): |
||||||||||||||||||||
Tier 1 common equity (6) |
$ | 126,690 | $ | 117,658 | $ | 125,139 | ||||||||||||||
Tier 1 common equity ratio (6) | 9.86 | % | 8.65 | % | 8.60 | % | ||||||||||||||
Tier 1 leverage ratio | 7.53 | 7.11 | 7.21 | |||||||||||||||||
Tangible equity ratio (7) | 7.54 | 7.16 | 6.75 | |||||||||||||||||
Tangible common equity ratio (7) | 6.64 | 6.25 | 5.99 | |||||||||||||||||
Period-end common shares issued and outstanding | 10,535,938 | 10,134,432 | 10,085,155 | |||||||||||||||||
Year Ended December 31 |
Fourth Quarter 2011 |
Third Quarter 2011 |
Fourth Quarter 2010 | |||||||||||||||||
2011 | 2010 | |||||||||||||||||||
Common shares issued (8) | 450,783 | 1,434,911 | 401,506 | 1,242 | 51,450 | |||||||||||||||
Average common shares issued and outstanding | 10,142,625 | 9,790,472 | 10,281,397 | 10,116,284 | 10,036,575 | |||||||||||||||
Average diluted common shares issued and outstanding | 10,254,824 | 9,790,472 | 11,124,523 | 10,464,395 | 10,036,575 | |||||||||||||||
Dividends paid per common share | $ | 0.04 | $ | 0.04 | $ | 0.01 | $ | 0.01 | $ | 0.01 | ||||||||||
Summary Period-End Balance Sheet |
December 31 2011 |
September 30 2011 |
December 31 2010 | |||||||||||||||||
Total loans and leases | $ | 926,200 | $ | 932,531 | $ | 940,440 | ||||||||||||||
Total debt securities | 311,416 | 350,725 | 338,054 | |||||||||||||||||
Total earning assets | 1,704,855 | 1,797,600 | 1,819,659 | |||||||||||||||||
Total assets | 2,129,046 | 2,219,628 | 2,264,909 | |||||||||||||||||
Total deposits | 1,033,041 | 1,041,353 | 1,010,430 | |||||||||||||||||
Total shareholders’ equity | 230,101 | 230,252 | 228,248 | |||||||||||||||||
Common shareholders’ equity | 211,704 | 210,772 | 211,686 | |||||||||||||||||
Book value per share of common stock | $ | 20.09 | $ | 20.80 | $ | 20.99 | ||||||||||||||
Tangible book value per share of common stock (2) | 12.95 | 13.22 | 12.98 | |||||||||||||||||
(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. See Reconciliations to GAAP Financial Measures on pages 25-27. | ||||||||||||||||||||
(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 Federal Housing Administration and individually insured long-term stand-by agreements (fully-insured home loans), and in general, other consumer and commercial loans not secured by real estate; purchased credit-impaired loans even though the customer may be contractually past due; nonperforming loans held-for-sale; nonperforming loans accounted for under the fair value option; and nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010. | ||||||||||||||||||||
(5) Reflects preliminary data for current period risk-based capital. | ||||||||||||||||||||
(6) 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. | ||||||||||||||||||||
(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. See Reconciliations to GAAP Financial Measures on pages 25-27. | ||||||||||||||||||||
(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. | ||||||||||||||||||||
n/m = not meaningful | ||||||||||||||||||||
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) | Fourth Quarter 2011 | ||||||||||||||||||||||||||
Deposits | Card
Services (1) |
Consumer
Real Estate Services |
Global
Commercial Banking |
Global
Banking & Markets |
GWIM | All
Other (1) | |||||||||||||||||||||
Total revenue, net of interest expense (2) | $ | 3,080 | $ | 4,060 | $ | 3,276 | $ | 2,556 | $ | 3,722 | $ | 4,164 | $ | 4,288 | |||||||||||||
Provision for credit losses | 57 | 1,138 | 1,001 | (146 | ) | (27 | ) | 118 | 793 | ||||||||||||||||||
Noninterest expense | 2,798 | 1,393 | 4,596 | 1,039 | 4,287 | 3,649 | 1,760 | ||||||||||||||||||||
Net income (loss) | 141 | 1,022 | (1,459 | ) | 1,048 | (433 | ) | 249 | 1,423 | ||||||||||||||||||
Return on average equity | 2.34 | % | 19.69 | % | n/m | 10.22 | % | n/m | 5.54 | % | n/m | ||||||||||||||||
Return on average economic capital (3) | 9.51 | 40.48 | n/m | 20.78 | n/m | 14.13 | n/m | ||||||||||||||||||||
Balance Sheet |
|||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||
Total loans and leases | n/m | $ | 121,124 | $ | 116,993 | $ | 187,905 | $ | 130,640 | $ | 102,708 | $ | 272,807 | ||||||||||||||
Total deposits | $ | 417,110 | n/m | n/m | 176,010 | 115,267 | 249,814 | 46,057 | |||||||||||||||||||
Allocated equity | 23,862 | 20,610 | 14,757 | 40,718 | 33,707 | 17,860 | 76,721 | ||||||||||||||||||||
Economic capital (3) | 5,923 | 10,061 | 14,757 | 20,026 | 22,749 | 7,196 | n/m | ||||||||||||||||||||
Period end | |||||||||||||||||||||||||||
Total loans and leases | n/m | $ | 120,669 | $ | 112,359 | $ | 188,262 | $ | 133,126 | $ | 103,459 | $ | 267,621 | ||||||||||||||
Total deposits | $ | 421,871 | n/m | n/m | 176,941 | 122,296 | 253,029 | 32,870 | |||||||||||||||||||
Third Quarter 2011 | |||||||||||||||||||||||||||
Deposits | Card
Services (1) |
Consumer
Real Estate Services |
Global
Commercial Banking |
Global
Banking & Markets |
GWIM | All
Other (1) | |||||||||||||||||||||
Total revenue, net of interest expense (2) | $ | 3,119 | $ | 4,505 | $ | 2,822 | $ | 2,533 | $ | 5,222 | $ | 4,230 | $ | 6,271 | |||||||||||||
Provision for credit losses | 52 | 1,037 | 918 | (150 | ) | 15 | 162 | 1,373 | |||||||||||||||||||
Noninterest expense | 2,627 | 1,457 | 3,852 | 1,018 | 4,480 | 3,516 | 663 | ||||||||||||||||||||
Net income (loss) | 276 | 1,263 | (1,137 | ) | 1,050 | (302 | ) | 347 | 4,735 | ||||||||||||||||||
Return on average equity | 4.61 | % | 24.13 | % | n/m | 10.22 | % | n/m | 7.72 | % | n/m | ||||||||||||||||
Return on average economic capital (3) | 18.78 | 49.31 | n/m | 20.78 | n/m | 19.66 | n/m | ||||||||||||||||||||
Balance Sheet |
|||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||
Total loans and leases | n/m | $ | 123,547 | $ | 120,079 | $ | 188,037 | $ | 120,143 | $ | 102,785 | $ | 286,753 | ||||||||||||||
Total deposits | $ | 422,331 | n/m | n/m | 173,837 | 121,389 | 255,658 | 52,855 | |||||||||||||||||||
Allocated equity | 23,820 | 20,755 | 14,240 | 40,726 | 36,372 | 17,839 | 68,658 | ||||||||||||||||||||
Economic capital (3) | 5,873 | 10,194 | 14,240 | 20,037 | 25,589 | 7,148 | n/m | ||||||||||||||||||||
Period end | |||||||||||||||||||||||||||
Total loans and leases | n/m | $ | 122,223 | $ | 119,823 | $ | 188,650 | $ | 124,527 | $ | 102,361 | $ | 274,269 | ||||||||||||||
Total deposits | $ | 424,267 | n/m | n/m | 171,297 | 115,724 | 251,027 | 52,947 | |||||||||||||||||||
Fourth Quarter 2010 | |||||||||||||||||||||||||||
Deposits | Card
Services (1) |
Consumer
Real Estate Services |
Global
Commercial Banking |
Global
Banking & Markets |
GWIM | All
Other (1) | |||||||||||||||||||||
Total revenue, net of interest expense (2) | $ | 3,003 | $ | 5,357 | $ | 480 | $ | 2,614 | $ | 5,364 | $ | 4,161 | $ | 1,689 | |||||||||||||
Provision for credit losses | 41 | 1,846 | 1,198 | (136 | ) | (112 | ) | 155 | 2,137 | ||||||||||||||||||
Noninterest expense | 3,270 | 1,463 | 5,980 | 1,061 | 4,321 | 3,489 | 1,280 | ||||||||||||||||||||
Net income (loss) | (200 | ) | 1,289 | (4,937 | ) | 1,053 | 669 | 319 | 563 | ||||||||||||||||||
Return on average equity | n/m | 21.74 | % | n/m | 9.72 | % | 5.65 | % | 6.94 | % | n/m | ||||||||||||||||
Return on average economic capital (3) | n/m | 40.28 | n/m | 18.75 | 7.28 | 17.97 | n/m | ||||||||||||||||||||
Balance Sheet |
|||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||
Total loans and leases | n/m | $ | 136,738 | $ | 124,933 | $ | 195,293 | $ | 100,606 | $ | 100,306 | $ | 282,125 | ||||||||||||||
Total deposits | $ | 413,150 | n/m | n/m | 156,672 | 104,655 | 246,281 | 55,301 | |||||||||||||||||||
Allocated equity | 24,128 | 23,518 | 24,310 | 42,997 | 46,935 | 18,227 | 55,410 | ||||||||||||||||||||
Economic capital (3) | 6,161 | 12,846 | 19,511 | 22,294 | 36,695 | 7,475 | n/m | ||||||||||||||||||||
Period end | |||||||||||||||||||||||||||
Total loans and leases | n/m | $ | 137,024 | $ | 122,933 | $ | 194,038 | $ | 99,964 | $ | 100,724 | $ | 285,087 | ||||||||||||||
Total deposits | $ | 415,189 | n/m | n/m | 161,279 | 109,691 | 257,982 | 40,142 | |||||||||||||||||||
(1) During the third quarter of 2011, as a result of the decision to exit the international consumer card business, the Global Card Services business segment was renamed to Card Services. The international consumer card business results have been moved to All Other and prior periods have been reclassified. | |||||||||||||||||||||||||||
(2) Fully taxable-equivalent basis. 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. | |||||||||||||||||||||||||||
(3) 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 25-27. | |||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
Year-to-Date Results by Business Segment | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||||||||
Deposits | Card
Services (1) |
Consumer
Real Estate Services |
Global
Commercial Banking |
Global
Banking & Markets |
GWIM | All
Other (1) | |||||||||||||||||||||
Total revenue, net of interest expense (2) | $ | 12,689 | $ | 18,143 | $ | (3,154 | ) | $ | 10,553 | $ | 23,618 | $ | 17,376 | $ | 15,201 | ||||||||||||
Provision for credit losses | 173 | 3,072 | 4,524 | (634 | ) | (296 | ) | 398 | 6,173 | ||||||||||||||||||
Noninterest expense | 10,633 | 6,024 | 21,893 | 4,234 | 18,179 | 14,395 | 4,916 | ||||||||||||||||||||
Net income (loss) | 1,192 | 5,788 | (19,529 | ) | 4,402 | 2,967 | 1,635 | 4,991 | |||||||||||||||||||
Return on average equity | 5.02 | % | 27.40 | % | n/m | 10.77 | % | 7.97 | % | 9.19 | % | n/m | |||||||||||||||
Return on average economic capital (3) | 20.66 | 55.08 | n/m | 21.83 | 11.22 | 23.44 | n/m | ||||||||||||||||||||
Balance Sheet |
|||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||
Total loans and leases | n/m | $ | 126,084 | $ | 119,820 | $ | 189,415 | $ | 116,075 | $ | 102,143 | $ | 283,890 | ||||||||||||||
Total deposits | $ | 421,106 | n/m | n/m | 169,192 | 116,088 | 254,777 | 49,283 | |||||||||||||||||||
Allocated equity | 23,735 | 21,128 | 16,202 | 40,867 | 37,233 | 17,802 | 72,128 | ||||||||||||||||||||
Economic capital (3) | 5,786 | 10,539 | 14,852 | 20,172 | 26,583 | 7,106 | n/m | ||||||||||||||||||||
Period end | |||||||||||||||||||||||||||
Total loans and leases | n/m | $ | 120,669 | $ | 112,359 | $ | 188,262 | $ | 133,126 | $ | 103,459 | $ | 267,621 | ||||||||||||||
Total deposits | $ | 421,871 | n/m | n/m | 176,941 | 122,296 | 253,029 | 32,870 | |||||||||||||||||||
Year Ended December 31, 2010 | |||||||||||||||||||||||||||
Deposits | Card
Services (1) |
Consumer
Real Estate Services |
Global
Commercial Banking |
Global
Banking & Markets |
GWIM | All
Other (1) | |||||||||||||||||||||
Total revenue, net of interest expense (2) | $ | 13,562 | $ | 22,340 | $ | 10,329 | $ | 11,226 | $ | 27,949 | $ | 16,289 | $ | 9,695 | |||||||||||||
Provision for credit losses | 201 | 10,962 | 8,490 | 1,979 | (166 | ) | 646 | 6,323 | |||||||||||||||||||
Noninterest expense | 11,196 | 16,357 | 14,886 | 4,130 | 17,535 | 13,227 | 5,777 | ||||||||||||||||||||
Net income (loss) | 1,362 | (6,980 | ) | (8,947 | ) | 3,218 | 6,297 | 1,340 | 1,472 | ||||||||||||||||||
Return on average equity | 5.62 | % | n/m | n/m | 7.38 | % | 12.58 | % | 7.42 | % | n/m | ||||||||||||||||
Return on average economic capital (3) | 21.97 | 23.62 | n/m | 14.07 | 15.82 | 19.57 | n/m | ||||||||||||||||||||
Balance Sheet |
|||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||
Total loans and leases | n/m | $ | 145,081 | $ | 129,234 | $ | 203,824 | $ | 98,593 | $ | 99,269 | $ | 281,642 | ||||||||||||||
Total deposits | $ | 414,877 | n/m | n/m | 148,638 | 97,858 | 232,318 | 67,945 | |||||||||||||||||||
Allocated equity | 24,222 | 32,418 | 26,016 | 43,590 | 50,037 | 18,068 | 38,884 | ||||||||||||||||||||
Economic capital (3) | 6,247 | 14,774 | 21,214 | 22,906 | 39,931 | 7,290 | n/m | ||||||||||||||||||||
Period end | |||||||||||||||||||||||||||
Total loans and leases | n/m | $ | 137,024 | $ | 122,933 | $ | 194,038 | $ | 99,964 | $ | 100,724 | $ | 285,087 | ||||||||||||||
Total deposits | $ | 415,189 | n/m | n/m | 161,279 | 109,691 | 257,982 | 40,142 | |||||||||||||||||||
(1) During the third quarter of 2011, as a result of the decision to exit the international consumer card business, the Global Card Services business segment was renamed to Card Services. The international consumer card business results have been moved to All Other and prior periods have been reclassified. | |||||||||||||||||||||||||||
(2) Fully taxable-equivalent basis. 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. | |||||||||||||||||||||||||||
(3) 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 25-27. | |||||||||||||||||||||||||||
n/m = not meaningful | |||||||||||||||||||||||||||
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation. | |||||||||||||||||||||||||||
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||
Supplemental Financial Data | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||
Fully taxable-equivalent basis data (1) |
Year Ended December 31 |
Fourth Quarter 2011 |
Third Quarter 2011 |
Fourth Quarter 2010 | |||||||||||||||||
2011 | 2010 | ||||||||||||||||||||
Net interest income | $ | 45,588 | $ | 52,693 | $ | 10,959 | $ | 10,739 | $ | 12,709 | |||||||||||
Total revenue, net of interest expense | 94,426 | 111,390 | 25,146 | 28,702 | 22,668 | ||||||||||||||||
Net interest yield (2) | 2.48 | % | 2.78 | % | 2.45 | % | 2.32 | % | 2.69 | % | |||||||||||
Efficiency ratio | 85.01 | 74.61 | 77.64 | 61.37 | 92.04 | ||||||||||||||||
Other Data |
December 31 2011 |
September 30 2011 |
December 31 2010 | ||||||||||||||||||
Number of banking centers - U.S. | 5,702 | 5,715 | 5,856 | ||||||||||||||||||
Number of branded ATMs - U.S. | 17,756 | 17,752 | 17,926 | ||||||||||||||||||
Full-time equivalent employees | 284,635 | 290,509 | 288,471 | ||||||||||||||||||
(1) Fully taxable-equivalent basis is a non-GAAP financial 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 Reconciliations to GAAP Financial Measures on pages 25-27. | |||||||||||||||||||||
(2) Calculation includes fees earned on overnight deposits placed with the Federal Reserve of $186 million and $368 million for the years ended December 31, 2011 and 2010; $36 million and $38 million for the fourth and third quarters of 2011, and $63 million for the fourth quarter of 2010, respectively. | |||||||||||||||||||||
n/m = not meaningful | |||||||||||||||||||||
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 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 ending 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 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 goodwill impairment charges of $581 million and $2.6 billion recorded in the fourth and second quarters of 2011, and $2.0 billion and $10.4 billion recorded in the fourth and third quarters of 2010. Accordingly, these are non-GAAP financial measures. |
See the tables below and on pages 25-26 for reconciliations of these non-GAAP financial measures with financial measures defined by GAAP for the three months ended December 31, 2011, September 30, 2011 and December 31, 2010, and the years ended December 31, 2011 and 2010. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate supplemental financial data differently. |
Year Ended December 31 |
Fourth Quarter 2011 |
Third Quarter 2011 |
Fourth Quarter 2010 | |||||||||||||||||
2011 | 2010 | |||||||||||||||||||
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis |
||||||||||||||||||||
Net interest income | $ | 44,616 | $ | 51,523 | $ | 10,701 | $ | 10,490 | $ | 12,439 | ||||||||||
Fully taxable-equivalent adjustment | 972 | 1,170 | 258 | 249 | 270 | |||||||||||||||
Net interest income on a fully taxable-equivalent basis | $ | 45,588 | $ | 52,693 | $ | 10,959 | $ | 10,739 | $ | 12,709 | ||||||||||
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 | $ | 93,454 | $ | 110,220 | $ | 24,888 | $ | 28,453 | $ | 22,398 | ||||||||||
Fully taxable-equivalent adjustment | 972 | 1,170 | 258 | 249 | 270 | |||||||||||||||
Total revenue, net of interest expense on a fully taxable-equivalent basis | $ | 94,426 | $ | 111,390 | $ | 25,146 | $ | 28,702 | $ | 22,668 | ||||||||||
Reconciliation of total noninterest expense to total noninterest expense, excluding goodwill impairment charges |
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Total noninterest expense | $ | 80,274 | $ | 83,108 | $ | 19,522 | $ | 17,613 | $ | 20,864 | ||||||||||
Goodwill impairment charges | (3,184 | ) | (12,400 | ) | (581 | ) | — | (2,000 | ) | |||||||||||
Total noninterest expense, excluding goodwill impairment charges | $ | 77,090 | $ | 70,708 | $ | 18,941 | $ | 17,613 | $ | 18,864 | ||||||||||
Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis |
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Income tax expense (benefit) | $ | (1,676 | ) | $ | 915 | $ | 441 | $ | 1,201 | $ | (2,351 | ) | ||||||||
Fully taxable-equivalent adjustment | 972 | 1,170 | 258 | 249 | 270 | |||||||||||||||
Income tax expense (benefit) on a fully taxable-equivalent basis | $ | (704 | ) | $ | 2,085 | $ | 699 | $ | 1,450 | $ | (2,081 | ) | ||||||||
Reconciliation of net income (loss) to net income, excluding goodwill impairment charges |
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Net income (loss) | $ | 1,446 | $ | (2,238 | ) | $ | 1,991 | $ | 6,232 | $ | (1,244 | ) | ||||||||
Goodwill impairment charges | 3,184 | 12,400 | 581 | — | 2,000 | |||||||||||||||
Net income, excluding goodwill impairment charges | $ | 4,630 | $ | 10,162 | $ | 2,572 | $ | 6,232 | $ | 756 | ||||||||||
Reconciliation of net income (loss) applicable to common shareholders to net income applicable to common shareholders, excluding goodwill impairment charges |
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Net income (loss) applicable to common shareholders | $ | 85 | $ | (3,595 | ) | $ | 1,584 | $ | 5,889 | $ | (1,565 | ) | ||||||||
Goodwill impairment charges | 3,184 | 12,400 | 581 | — | 2,000 | |||||||||||||||
Net income applicable to common shareholders, excluding goodwill impairment charges | $ | 3,269 | $ | 8,805 | $ | 2,165 | $ | 5,889 | $ | 435 | ||||||||||
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) | |||||||||||||||||||||
Year Ended December 31 |
Fourth Quarter 2011 |
Third Quarter 2011 |
Fourth Quarter 2010 | ||||||||||||||||||
2011 | 2010 | ||||||||||||||||||||
Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity |
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Common shareholders’ equity | $ | 211,709 | $ | 212,686 | $ | 209,324 | $ | 204,928 | $ | 218,728 | |||||||||||
Common Equivalent Securities | — | 2,900 | — | — | — | ||||||||||||||||
Goodwill | (72,334 | ) | (82,600 | ) | (70,647 | ) | (71,070 | ) | (75,584 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (9,180 | ) | (10,985 | ) | (8,566 | ) | (9,005 | ) | (10,211 | ) | |||||||||||
Related deferred tax liabilities | 2,898 | 3,306 | 2,775 | 2,852 | 3,121 | ||||||||||||||||
Tangible common shareholders’ equity | $ | 133,093 | $ | 125,307 | $ | 132,886 | $ | 127,705 | $ | 136,054 | |||||||||||
Reconciliation of average shareholders’ equity to average tangible shareholders’ equity |
|||||||||||||||||||||
Shareholders’ equity | $ | 229,095 | $ | 233,235 | $ | 228,235 | $ | 222,410 | $ | 235,525 | |||||||||||
Goodwill | (72,334 | ) | (82,600 | ) | (70,647 | ) | (71,070 | ) | (75,584 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (9,180 | ) | (10,985 | ) | (8,566 | ) | (9,005 | ) | (10,211 | ) | |||||||||||
Related deferred tax liabilities | 2,898 | 3,306 | 2,775 | 2,852 | 3,121 | ||||||||||||||||
Tangible shareholders’ equity | $ | 150,479 | $ | 142,956 | $ | 151,797 | $ | 145,187 | $ | 152,851 | |||||||||||
Reconciliation of period-end common shareholders’ equity to period-end tangible common shareholders’ equity |
|||||||||||||||||||||
Common shareholders’ equity | $ | 211,704 | $ | 211,686 | $ | 211,704 | $ | 210,772 | $ | 211,686 | |||||||||||
Goodwill | (69,967 | ) | (73,861 | ) | (69,967 | ) | (70,832 | ) | (73,861 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (8,021 | ) | (9,923 | ) | (8,021 | ) | (8,764 | ) | (9,923 | ) | |||||||||||
Related deferred tax liabilities | 2,702 | 3,036 | 2,702 | 2,777 | 3,036 | ||||||||||||||||
Tangible common shareholders’ equity | $ | 136,418 | $ | 130,938 | $ | 136,418 | $ | 133,953 | $ | 130,938 | |||||||||||
Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity |
|||||||||||||||||||||
Shareholders’ equity | $ | 230,101 | $ | 228,248 | $ | 230,101 | $ | 230,252 | $ | 228,248 | |||||||||||
Goodwill | (69,967 | ) | (73,861 | ) | (69,967 | ) | (70,832 | ) | (73,861 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (8,021 | ) | (9,923 | ) | (8,021 | ) | (8,764 | ) | (9,923 | ) | |||||||||||
Related deferred tax liabilities | 2,702 | 3,036 | 2,702 | 2,777 | 3,036 | ||||||||||||||||
Tangible shareholders’ equity | $ | 154,815 | $ | 147,500 | $ | 154,815 | $ | 153,433 | $ | 147,500 | |||||||||||
Reconciliation of period-end assets to period-end tangible assets |
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Assets | $ | 2,129,046 | $ | 2,264,909 | $ | 2,129,046 | $ | 2,219,628 | $ | 2,264,909 | |||||||||||
Goodwill | (69,967 | ) | (73,861 | ) | (69,967 | ) | (70,832 | ) | (73,861 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (8,021 | ) | (9,923 | ) | (8,021 | ) | (8,764 | ) | (9,923 | ) | |||||||||||
Related deferred tax liabilities | 2,702 | 3,036 | 2,702 | 2,777 | 3,036 | ||||||||||||||||
Tangible assets | $ | 2,053,760 | $ | 2,184,161 | $ | 2,053,760 | $ | 2,142,809 | $ | 2,184,161 | |||||||||||
Book value per share of common stock |
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Common shareholders’ equity | $ | 211,704 | $ | 211,686 | $ | 211,704 | $ | 210,772 | $ | 211,686 | |||||||||||
Ending common shares issued and outstanding | 10,535,938 | 10,085,155 | 10,535,938 | 10,134,432 | 10,085,155 | ||||||||||||||||
Book value per share of common stock | $ | 20.09 | $ | 20.99 | $ | 20.09 | $ | 20.80 | $ | 20.99 | |||||||||||
Tangible book value per share of common stock |
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Tangible common shareholders’ equity | $ | 136,418 | $ | 130,938 | $ | 136,418 | $ | 133,953 | $ | 130,938 | |||||||||||
Ending common shares issued and outstanding | 10,535,938 | 10,085,155 | 10,535,938 | 10,134,432 | 10,085,155 | ||||||||||||||||
Tangible book value per share of common stock | $ | 12.95 | $ | 12.98 | $ | 12.95 | $ | 13.22 | $ | 12.98 | |||||||||||
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) | |||||||||||||||||||||
Year Ended December 31 |
Fourth Quarter 2011 |
Third Quarter 2011 |
Fourth Quarter 2010 | ||||||||||||||||||
2011 | 2010 | ||||||||||||||||||||
Reconciliation of return on average economic capital |
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Deposits |
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Reported net income (loss) | $ | 1,192 | $ | 1,362 | $ | 141 | $ | 276 | $ | (200 | ) | ||||||||||
Adjustment related to intangibles (1) | 3 | 10 | 2 | 1 | 2 | ||||||||||||||||
Adjusted net income (loss) | $ | 1,195 | $ | 1,372 | $ | 143 | $ | 277 | $ | (198 | ) | ||||||||||
Average allocated equity | $ | 23,735 | $ | 24,222 | $ | 23,862 | $ | 23,820 | $ | 24,128 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (17,949 | ) | (17,975 | ) | (17,939 | ) | (17,947 | ) | (17,967 | ) | |||||||||||
Average economic capital | $ | 5,786 | $ | 6,247 | $ | 5,923 | $ | 5,873 | $ | 6,161 | |||||||||||
Card Services |
|||||||||||||||||||||
Reported net income (loss) | $ | 5,788 | $ | (6,980 | ) | $ | 1,022 | $ | 1,263 | $ | 1,289 | ||||||||||
Adjustment related to intangibles (1) | 17 | 70 | 5 | 4 | 15 | ||||||||||||||||
Goodwill impairment charge | — | 10,400 | — | — | — | ||||||||||||||||
Adjusted net income | $ | 5,805 | $ | 3,490 | $ | 1,027 | $ | 1,267 | $ | 1,304 | |||||||||||
Average allocated equity | $ | 21,128 | $ | 32,418 | $ | 20,610 | $ | 20,755 | $ | 23,518 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (10,589 | ) | (17,644 | ) | (10,549 | ) | (10,561 | ) | (10,672 | ) | |||||||||||
Average economic capital | $ | 10,539 | $ | 14,774 | $ | 10,061 | $ | 10,194 | $ | 12,846 | |||||||||||
Consumer Real Estate Services |
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Reported net loss | $ | (19,529 | ) | $ | (8,947 | ) | $ | (1,459 | ) | $ | (1,137 | ) | $ | (4,937 | ) | ||||||
Adjustment related to intangibles (1) | — | 3 | — | — | — | ||||||||||||||||
Goodwill impairment charges | 2,603 | 2,000 | — | — | 2,000 | ||||||||||||||||
Adjusted net loss | $ | (16,926 | ) | $ | (6,944 | ) | $ | (1,459 | ) | $ | (1,137 | ) | $ | (2,937 | ) | ||||||
Average allocated equity | $ | 16,202 | $ | 26,016 | $ | 14,757 | $ | 14,240 | $ | 24,310 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (1,350 | ) | (4,802 | ) | — | — | (4,799 | ) | |||||||||||||
Average economic capital | $ | 14,852 | $ | 21,214 | $ | 14,757 | $ | 14,240 | $ | 19,511 | |||||||||||
Global Commercial Bank |
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Reported net income | $ | 4,402 | $ | 3,218 | $ | 1,048 | $ | 1,050 | $ | 1,053 | |||||||||||
Adjustment related to intangibles (1) | 2 | 5 | — | — | 1 | ||||||||||||||||
Adjusted net income | $ | 4,404 | $ | 3,223 | $ | 1,048 | $ | 1,050 | $ | 1,054 | |||||||||||
Average allocated equity | $ | 40,867 | $ | 43,590 | $ | 40,718 | $ | 40,726 | $ | 42,997 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (20,695 | ) | (20,684 | ) | (20,692 | ) | (20,689 | ) | (20,703 | ) | |||||||||||
Average economic capital | $ | 20,172 | $ | 22,906 | $ | 20,026 | $ | 20,037 | $ | 22,294 | |||||||||||
Global Banking and Markets |
|||||||||||||||||||||
Reported net income (loss) | $ | 2,967 | $ | 6,297 | $ | (433 | ) | $ | (302 | ) | $ | 669 | |||||||||
Adjustment related to intangibles (1) | 17 | 19 | 4 | 5 | 4 | ||||||||||||||||
Adjusted net income (loss) | $ | 2,984 | $ | 6,316 | $ | (429 | ) | $ | (297 | ) | $ | 673 | |||||||||
Average allocated equity | $ | 37,233 | $ | 50,037 | $ | 33,707 | $ | 36,372 | $ | 46,935 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (10,650 | ) | (10,106 | ) | (10,958 | ) | (10,783 | ) | (10,240 | ) | |||||||||||
Average economic capital | $ | 26,583 | $ | 39,931 | $ | 22,749 | $ | 25,589 | $ | 36,695 | |||||||||||
Global Wealth and Investment Management |
|||||||||||||||||||||
Reported net income | $ | 1,635 | $ | 1,340 | $ | 249 | $ | 347 | $ | 319 | |||||||||||
Adjustment related to intangibles (1) | 30 | 86 | 7 | 7 | 20 | ||||||||||||||||
Adjusted net income | $ | 1,665 | $ | 1,426 | $ | 256 | $ | 354 | $ | 339 | |||||||||||
Average allocated equity | $ | 17,802 | $ | 18,068 | $ | 17,860 | $ | 17,839 | $ | 18,227 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (10,696 | ) | (10,778 | ) | (10,664 | ) | (10,691 | ) | (10,752 | ) | |||||||||||
Average economic capital | $ | 7,106 | $ | 7,290 | $ | 7,196 | $ | 7,148 | $ | 7,475 | |||||||||||
(1) Represents cost of funds and earnings credit on 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
or
Reporters May Contact:
Jerry Dubrowski, Bank of America, 1.980.388.2840
jerome.f.dubrowski@bankofamerica.com