Bank of America Reports Second-Quarter 2013 Net Income of $4.0 Billion, or $0.32 per Diluted Share on Revenue of $22.9 BillionA
Supplemental Second Quarter 2013 Financial Information
Business Momentum Continues
- Deposit Balances up 4 Percent Companywide From Q2-12 to
$1.1 Trillion - First-lien Mortgage Production up 40 Percent From Q2-12 to
$25 Billion - Global Wealth and Investment Management Reports Record Revenue, Pretax Margin, Net Income, Asset Management Fees and Loan Balances
- Commercial Loan Balances up 20 Percent From Q2-12 to
$381 Billion - Global Investment Banking Fees up 36 Percent From Q2-12 to
$1.6 Billion ; Maintained No. 2 Ranking in Global Investment Banking Fees - Total Noninterest Expense of
$16 Billion , Down$1 Billion From Q2-12 - Credit Quality Continued to Improve With Net Credit Loss Rates Below 1 Percent for the
First Time Since Second Quarter of 2006
Capital and Liquidity Remain Strong
Basel 1 Tier 1 Common Capital Ratio of 10.83 Percent, up From 10.49 Percent in Prior Quarter- Estimated
Basel 3 Tier 1 Common Capital Ratio of 9.60 Percent, up From 9.52 Percent in Prior QuarterB - Long-term Debt Down
$39 Billion FromYear-ago Quarter , Driven by Maturities and Liability Management Actions - Parent Company Liquidity Remained Strong With Time-to-required Funding at 32 Months
The results for the second quarter of 2013 were driven by year-over-year improvements in net interest income, investment and brokerage income, investment banking fees, sales and trading revenue, equity investment income and credit quality as well as expense reductions. These items were partially offset by the absence of year-ago gains related to liability management actions and lower mortgage banking income.
"We are doing more business with our customers and clients, and gaining momentum across every customer group we serve," said Chief Executive Officer
"At the beginning of the year, we said we would focus on three things – revenue stability, strengthening the balance sheet and managing costs," said Chief Financial Officer
Selected Financial Highlights |
||||||||||||||
Three Months Ended | ||||||||||||||
(Dollars in millions, except per share data) | June 30 2013 |
March 31 2013 |
June 30 2012 | |||||||||||
Net interest income, FTE basis1 | $ | 10,771 | $ | 10,875 | $ | 9,782 | ||||||||
Noninterest income | 12,178 | 12,533 | 12,420 | |||||||||||
Total revenue, net of interest expense, FTE basis | 22,949 | 23,408 | 22,202 | |||||||||||
Provision for credit losses | 1,211 | 1,713 | 1,773 | |||||||||||
Noninterest expense | 16,018 | 19,500 | 17,048 | |||||||||||
Net income | $ | 4,012 | $ | 1,483 | $ | 2,463 | ||||||||
Diluted earnings per common share | $ | 0.32 | $ | 0.10 | $ | 0.19 |
1Fully taxable-equivalent (FTE) basis is a non-GAAP financial measure. For reconciliations to GAAP financial measures, refer to pages 22-24 of this press release. Net interest income on a GAAP basis was
Revenue, net of interest expense, on an FTE basisA rose
Net interest income, on an FTE basis, totaled
Noninterest income decreased
Noninterest expense decreased
Previously,
Litigation expense was
Income tax expense for the second quarter of 2013 was
At June 30, 2013, the company had 257,158 full-time employees, down from 262,812 at March 31, 2013 and 275,460 at June 30, 2012.
Business Segment Results
The company reports results through five business segments: Consumer and Business Banking (CBB), Consumer Real Estate Services (CRES), Global Wealth and Investment Management (GWIM), Global Banking, and Global Markets, with the remaining operations recorded in All Other.
Unless otherwise noted, business segment revenue, on an FTE basis, is net of interest expense.
Consumer and Business Banking (CBB)1 | ||||||||||||
Three Months Ended | ||||||||||||
(Dollars in millions) | June 30 2013 |
March 31 2013 |
June 30 2012 | |||||||||
Total revenue, net of interest expense, FTE basis | $ | 7,434 | $ | 7,412 | $ | 7,495 | ||||||
Provision for credit losses | 967 | 952 | 1,157 | |||||||||
Noninterest expense | 4,183 | 4,170 | 4,420 | |||||||||
Net income | $ | 1,392 | $ | 1,439 | $ | 1,208 | ||||||
Return on average allocated capital2, 3 | 18.64 | % | 19.48 | % | — | |||||||
Return on average economic capital2, 3 | — | — | 20.46 | % | ||||||||
Average loans | $ | 163,593 | $ | 165,845 | $ | 173,565 | ||||||
Average deposits | 522,259 | 502,508 | 474,328 | |||||||||
At period-end | ||||||||||||
Brokerage assets | $ | 84,182 | $ | 82,616 | $ | 72,226 |
1During the second quarter of 2013, the results of consumer
2Effective
3Return on average allocated capital and return on average economic capital are non-GAAP financial measures. The company believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. For reconciliation to GAAP financial measures, refer to pages 22-24 of this press release.
Business Highlights
- Average deposit balances of
$522.3 billion increased$47.9 billion , or 10 percent, from the same period a year ago. The increase was driven by growth in liquid products in a low-rate environment and an$18 billion average impact of deposit transfers primarily from Global Wealth and Investment Management. The average rate paid on deposits in the second quarter of 2013 declined 7 basis points from the year-ago quarter due to pricing discipline and a shift in the mix of deposits. - The number of mobile banking customers increased 28 percent from the year-ago quarter to 13.2 million, and 11.7 million checks were deposited this quarter via Mobile Check Deposits, reflecting a continued focus on enhancing the customer experience.
- U.S. consumer credit card retail spending per average active account increased 9 percent from the second quarter of 2012.
Merrill Edge brokerage assets increased 17 percent from the same period a year ago to$84.2 billion due to positive account flows and market growth.- Small business loan originations and commitments rose 24 percent from the year-ago quarter to
$2.8 billion . - The company's specialized sales force of financial solutions advisors, mortgage loan officers and small business bankers increased to more than 6,800 specialists in the second quarter of 2013, up 21 percent from the same period a year ago, reflecting the company's continued commitment to deepening customer relationships.
Financial Overview
Consumer and Business Banking reported net income of
Net interest income of
Provision for credit losses decreased
Consumer Real Estate Services (CRES) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
(Dollars in millions) | June 30 2013 |
March 31 2013 |
June 30 2012 | ||||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 2,115 | $ | 2,312 | $ | 2,529 | |||||||||||
Provision for credit losses | 291 | 335 | 187 | ||||||||||||||
Noninterest expense | 3,394 | 5,406 | 3,524 | ||||||||||||||
Net loss | $ | (937 | ) | $ | (2,157 | ) | $ | (744 | ) | ||||||||
Average loans and leases | 90,114 | 92,963 | 105,507 | ||||||||||||||
At period-end | |||||||||||||||||
Loans and leases | $ | 89,257 | $ | 90,971 | $ | 104,079 |
Business Highlights
Bank of America funded$26.8 billion in residential home loans and home equity loans during the second quarter of 2013, up 7 percent from the first quarter of 2013, and 41 percent higher than the second quarter of 2012.- The residential fundings helped more than 112,000 homeowners either refinance an existing mortgage or purchase a home through our retail channels, including more than 4,600 first-time homebuyer mortgages and more than 40,000 mortgages to low- and moderate-income borrowers.
- The number of 60+ days delinquent first mortgage loans serviced by LAS declined 26 percent during the second quarter of 2013 to 492,000 loans from 667,000 loans at the end of the first quarter of 2013, and declined 54 percent from 1.06 million loans at the end of the second quarter of 2012.
Financial Overview
Consumer Real Estate Services reported a net loss of
Approximately 83 percent of funded first mortgages were refinances and 17 percent were for home purchases. The provision for representations and warranties was
The provision for credit losses increased
Global Wealth and Investment Management (GWIM) | |||||||||||||||
Three Months Ended | |||||||||||||||
(Dollars in millions) | June 30 2013 |
March 31 2013 |
June 30 2012 | ||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,499 | $ | 4,421 | $ | 4,094 | |||||||||
Provision for credit losses | (15 | ) | 22 | 47 | |||||||||||
Noninterest expense | 3,272 | 3,253 | 3,177 | ||||||||||||
Net income | $ | 758 | $ | 720 | $ | 548 | |||||||||
Return on average allocated capital1, 2 | 30.57 | % | 29.38 | % | — | ||||||||||
Return on average economic capital1, 2 | — | — | 31.76 | % | |||||||||||
Average loans and leases | $ | 109,589 | $ | 106,082 | $ | 98,964 | |||||||||
Average deposits | 235,344 | 253,413 | 238,540 | ||||||||||||
At period-end (Dollars in billions) | |||||||||||||||
Assets under management | $ | 743.6 | $ | 745.3 | $ | 667.5 | |||||||||
Total client balances3 | 2,215.1 | 2,231.7 | 2,066.6 |
1Effective
2Return on average allocated capital and return on average economic capital are non-GAAP financial measures. The company believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. For reconciliation to GAAP financial measures, refer to pages 22-24 of this press release.
3Total client balances are defined as assets under management, assets in custody, client brokerage assets, client deposits and loans (including margin receivables).
Business Highlights
- Record quarterly results in revenue, pretax margin, net income, asset management fees and loan balances.
- Client balances rose 8 percent (excluding balances transferred to Consumer and Business Banking) from the year-ago quarter to
$2.22 trillion . - Asset management fees grew to
$1.7 billion , up 10 percent from the year-ago quarter. - Long-term assets under management (AUM) flows more than doubled from the year-ago quarter to
$7.7 billion , marking the 16th consecutive quarter of positive flows. - Period-end loan balances increased to
$111.8 billion , up 11 percent from the year-ago quarter. - Period-end deposit balances decreased
$2.3 billion to $235.0 billion from the year-ago quarter as$15 billion of organic growth was offset by$17 billion of net transfers of deposits to Consumer and Business Banking.
Financial Overview
Global Wealth and Investment Management net income rose 38 percent from the second quarter of 2012 to
Revenue increased 10 percent from the year-ago quarter to
The provision for credit losses decreased
Client balances rose 8 percent (excluding balances transferred to Consumer and Business Banking) from the year-ago quarter to
Global Banking1 | |||||||||||||||
Three Months Ended | |||||||||||||||
(Dollars in millions) | June 30 2013 |
March 31 2013 |
June 30 2012 | ||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,139 | $ | 4,030 | $ | 3,908 | |||||||||
Provision for credit losses | 163 | 149 | (152 | ) | |||||||||||
Noninterest expense | 1,859 | 1,837 | 1,967 | ||||||||||||
Net income | $ | 1,291 | $ | 1,284 | $ | 1,318 | |||||||||
Return on average allocated capital2, 3 | 22.52 | % | 22.65 | % | — | ||||||||||
Return on average economic capital2, 3 | — | — | 27.24 | % | |||||||||||
Average loans and leases | $ | 255,674 | $ | 244,068 | $ | 219,504 | |||||||||
Average deposits | 227,668 | 222,120 | 213,862 |
1During the second quarter of 2013, the results of consumer
2Effective
3Return on average allocated capital and return on average economic capital are non-GAAP financial measures. The company believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. For reconciliation to GAAP financial measures, refer to pages 22-24 of this press release.
Business Highlights
Bank of America Merrill Lynch (BAML) maintained its No. 2 ranking in global net investment banking fees in the second quarter of 2013, with a 7.4 percent market share, according to Dealogic. BAML was also ranked among the top three financial institutions in high-yield corporate debt, leveraged loans, investment-grade corporate debt, asset-backed securities, mortgage-backed securities and syndicated loans during the second quarter, according to Dealogic.- Average loan and lease balances increased
$36.2 billion , or 16 percent, from the year-ago quarter to$255.7 billion and$11.6 billion , or 5 percent, from the prior quarter with growth primarily in the commercial and industrial portfolio and the commercial real estate portfolio. Average international loans increased 29 percent from the year-ago quarter, driven by gains across all regions.
- Average deposits rose
$13.8 billion , or 6 percent, from the year-ago quarter to$227.7 billion , due to growth in international deposits, which increased 22 percent from the year-ago quarter, reflecting the strength of the international franchise.
Financial Overview
Global Banking reported net income of
Firmwide investment banking fees of
Global Corporate Banking revenue of
The provision for credit losses increased
Global Markets | |||||||||||||||
Three Months Ended | |||||||||||||||
(Dollars in millions) | June 30 2013 |
March 31 2013 |
June 30 2012 | ||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,189 | $ | 4,869 | $ | 3,578 | |||||||||
Total revenue, net of interest expense, FTE basis, excluding DVA1 | 4,151 | 4,924 | 3,734 | ||||||||||||
Provision for credit losses | (16 | ) | 5 | (1 | ) | ||||||||||
Noninterest expense | 2,769 | 3,073 | 2,855 | ||||||||||||
Net income | $ | 959 | $ | 1,169 | $ | 497 | |||||||||
Net income, excluding DVA1 | 935 | 1,204 | 595 | ||||||||||||
Return on average allocated capital2, 3 | 12.85 | % | 15.83 | % | — | ||||||||||
Return on average economic capital2, 3 | — | — | 15.10 | % | |||||||||||
Total average assets | $ | 653,116 | $ | 667,265 | $ | 596,861 |
1Total revenue, net of interest expense, on an FTE basis excluding DVA and net income excluding DVA are non-GAAP financial measures. DVA gains (losses) were
2Effective
3Return on average allocated capital and return on average economic capital are non-GAAP financial measures. The company believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. For reconciliation to GAAP financial measures, refer to pages 22-24 of this press release.
Business Highlights
- Equities revenue, excluding DVAD, rose 53 percent from the second quarter of 2012, and was the highest since the first quarter of 2011, driven by increased market share and improved trading performance.
- International revenue, excluding DVAC, increased to 43 percent of global revenue compared to 34 percent in the year-ago quarter.
Financial Overview
Global Markets reported net income nearly doubled from the year-ago quarter to
Global Markets revenue increased
Fixed Income, Currency and Commodities sales and trading revenue, excluding DVAE, was
Noninterest expense declined
All Other1 |
|||||||||||||||
Three Months Ended | |||||||||||||||
(Dollars in millions) | June 30 2013 |
March 31 2013 |
June 30 2012 | ||||||||||||
Total revenue, net of interest expense, FTE basis2 | $ | 573 | $ | 364 | $ | 598 | |||||||||
Provision for credit losses | (179 | ) | 250 | 535 | |||||||||||
Noninterest expense | 541 | 1,761 | 1,105 | ||||||||||||
Net income (loss) | $ | 549 | $ | (972 | ) | $ | (364 | ) | |||||||
Total average loans | 238,910 | 244,557 | 263,649 |
1All Other consists of ALM activities, equity investments, the international consumer card business, liquidating businesses and other. ALM activities encompass the whole-loan residential mortgage portfolio and investment securities, interest rate and foreign currency risk management activities including the residual net interest income allocation, gains/losses on structured liabilities, and the impact of certain allocation methodologies and accounting hedge ineffectiveness. Equity Investments includes Global Principal Investments (GPI), strategic and certain other investments. Other includes certain residential mortgage loans that are managed by Legacy Assets and Servicing within CRES.
2Revenue includes equity investment income (loss) of
All Other reported net income of
The provision for credit losses decreased
Credit Quality | |||||||||||||||
Three Months Ended | |||||||||||||||
(Dollars in millions) | June 30 2013 |
March 31 2013 |
June 30 2012 | ||||||||||||
Provision for credit losses | $ | 1,211 | $ | 1,713 | $ | 1,773 | |||||||||
Net charge-offs1 | 2,111 | 2,517 | 3,626 | ||||||||||||
Net charge-off ratio1, 2 | 0.94 | % | 1.14 | % | 1.64 | % | |||||||||
Net charge-off ratio, excluding the PCI loan portfolio2, 3 | 0.97 | 1.18 | 1.69 | ||||||||||||
Net charge-off ratio, including PCI write-offs2, 3 | 1.07 | 1.52 | n/a | ||||||||||||
At period-end | |||||||||||||||
Nonperforming loans, leases and foreclosed properties | $ | 21,280 | $ | 22,842 | $ | 25,377 | |||||||||
Nonperforming loans, leases and foreclosed properties ratio3 | 2.33 | % | 2.53 | % | 2.87 | % | |||||||||
Allowance for loan and lease losses | $ | 21,235 | $ | 22,441 | $ | 30,288 | |||||||||
Allowance for loan and lease losses ratio4 | 2.33 | % | 2.49 | % | 3.43 | % |
1Excludes write-offs of PCI loans of
2Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases during the period; quarterly results are annualized.
3Nonperforming 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.
4Allowance 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.
n/a = not applicable
Note: Ratios do not include loans measured under the fair value option.
Credit quality continued to improve in the second quarter of 2013, with net charge-offs declining across nearly all major portfolios and the provision for credit losses decreasing from the first quarter of 2013 as well as the year-ago quarter. The number of 30+ days performing delinquent loans, excluding fully-insured loans, declined across all major consumer portfolios, reaching record low levels in the U.S. credit card portfolio. Additionally, reservable criticized balances and nonperforming loans, leases and foreclosed properties also continued to decline, down 27 percent and 16 percent from the year-ago period. Net charge-offs were
The provision for credit losses was
The allowance for loan and lease losses to annualized net charge-off coverage ratio was 2.51 times in the second quarter of 2013, compared with 2.20 times in the first quarter of 2013 and 2.08 times in the second quarter of 2012. The increase was due to the improvement in net charge-offs discussed above. The allowance to annualized net charge-off coverage ratio, excluding PCI, was 2.04 times, 1.76 times and 1.46 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 June 30 2013 |
At March 31 2013 |
At June 30 2012 | |||||||||||
Total shareholders’ equity | $ | 231,032 | $ | 237,293 | $ | 235,975 | ||||||||
Tier 1 common capital | 139,519 | 136,119 | 134,082 | |||||||||||
Tier 1 common capital ratio including Market Risk Final Rule2 | 10.83 | % | 10.49 | % | n/a | |||||||||
Tangible common equity ratio1 | 6.98 | 6.88 | 6.83 | |||||||||||
Common equity ratio | 10.21 | 10.05 | 10.05 | |||||||||||
Tangible book value per share1 | $ | 13.32 | $ | 13.36 | $ | 13.22 | ||||||||
Book value per share | 20.18 | 20.19 | 20.16 |
1Tangible common equity ratio and tangible book value per share are non-GAAP financial measures. For reconciliation to GAAP financial measures, refer to pages 22-24 of this press release.
2As of
n/a = not applicable
The Tier 1 common capital ratio, including the Market Risk Final Rule, was 10.83 percent at June 30, 2013, up from 10.49 percent at March 31, 2013. Prior to March 31, 2013, reported
As of June 30, 2013, the company's Tier 1 common capital ratio on a
Fully phased-in
Under
At June 30, 2013, the company's total Global Excess Liquidity Sources were
During the second quarter of 2013, a cash dividend of
The company previously announced that it was authorized to repurchase up to
Tangible book value per shareE was
------------------------------
A Fully taxable-equivalent (FTE) basis is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 22-24 of this press release. Total revenue, net of interest expense, on a GAAP basis, was
B
C Sales and trading revenue, international revenue and net income (loss) excluding the impact of DVA are non-GAAP financial measures. DVA gains (losses) were
D Fixed Income, Currency and Commodities (FICC) sales and trading revenue, excluding DVA, and Equity sales and trading revenue, excluding DVA, are non-GAAP financial measures. FICC DVA gains (losses) were
E Tangible book value per share of common stock is a non-GAAP measure. Other companies may define or calculate this measure differently. For reconciliation to GAAP measures, refer to pages 22-24 of this press release.
Note: Chief Executive Officer
A replay will be available via webcast through the
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 |
Six Months Ended June 30 |
Second Quarter 2013 |
First Quarter 2013 |
Second Quarter 2012 | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Net interest income | $ | 21,213 | $ | 20,394 | $ | 10,549 | $ | 10,664 | $ | 9,548 | |||||||||||||
Noninterest income | 24,711 | 23,852 | 12,178 | 12,533 | 12,420 | ||||||||||||||||||
Total revenue, net of interest expense | 45,924 | 44,246 | 22,727 | 23,197 | 21,968 | ||||||||||||||||||
Provision for credit losses | 2,924 | 4,191 | 1,211 | 1,713 | 1,773 | ||||||||||||||||||
Noninterest expense | 35,518 | 36,189 | 16,018 | 19,500 | 17,048 | ||||||||||||||||||
Income before income taxes | 7,482 | 3,866 | 5,498 | 1,984 | 3,147 | ||||||||||||||||||
Income tax expense | 1,987 | 750 | 1,486 | 501 | 684 | ||||||||||||||||||
Net income | $ | 5,495 | $ | 3,116 | $ | 4,012 | $ | 1,483 | $ | 2,463 | |||||||||||||
Preferred stock dividends | 814 | 690 | 441 | 373 | 365 | ||||||||||||||||||
Net income applicable to common shareholders | $ | 4,681 | $ | 2,426 | $ | 3,571 | $ | 1,110 | $ | 2,098 | |||||||||||||
Earnings per common share | $ | 0.43 | $ | 0.23 | $ | 0.33 | $ | 0.10 | $ | 0.19 | |||||||||||||
Diluted earnings per common share | 0.42 | 0.22 | 0.32 | 0.10 | 0.19 | ||||||||||||||||||
Summary Average Balance Sheet |
Six Months Ended June 30 |
Second Quarter 2013 |
First Quarter 2013 |
Second Quarter 2012 | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Total loans and leases | $ | 910,269 | $ | 906,610 | $ | 914,234 | $ | 906,259 | $ | 899,498 | |||||||||||||
Debt securities | 349,794 | 349,350 | 343,260 | 356,399 | 357,081 | ||||||||||||||||||
Total earning assets | 1,784,975 | 1,770,336 | 1,769,336 | 1,800,786 | 1,772,568 | ||||||||||||||||||
Total assets | 2,198,443 | 2,190,868 | 2,184,610 | 2,212,430 | 2,194,563 | ||||||||||||||||||
Total deposits | 1,077,631 | 1,031,500 | 1,079,956 | 1,075,280 | 1,032,888 | ||||||||||||||||||
Common shareholders’ equity | 218,509 | 215,466 | 218,790 | 218,225 | 216,782 | ||||||||||||||||||
Total shareholders’ equity | 236,024 | 234,062 | 235,063 | 236,995 | 235,558 | ||||||||||||||||||
Performance Ratios |
Six Months Ended June 30 |
Second Quarter 2013 |
First Quarter 2013 |
Second Quarter 2012 | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Return on average assets | 0.50 | % | 0.29 | % | 0.74 | % | 0.27 | % | 0.45 | % | |||||||||||||
Return on average tangible shareholders’ equity (1) | 6.84 | 3.94 | 9.98 | 3.69 | 6.16 | ||||||||||||||||||
Credit Quality |
Six Months Ended June 30 |
Second Quarter 2013 |
First Quarter 2013 |
Second Quarter 2012 | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Total net charge-offs | $ | 4,628 | $ | 7,682 | $ | 2,111 | $ | 2,517 | $ | 3,626 | |||||||||||||
Net charge-offs as a % of average loans and leases outstanding (2) | 1.04 | % | 1.72 | % | 0.94 | % | 1.14 | % | 1.64 | % | |||||||||||||
Provision for credit losses | $ | 2,924 | $ | 4,191 | $ | 1,211 | $ | 1,713 | $ | 1,773 | |||||||||||||
June 30 2013 |
March 31 2013 |
June 30 2012 | |||||||||||||||||||||
Total nonperforming loans, leases and foreclosed properties (3) | $ | 21,280 | $ | 22,842 | $ | 25,377 | |||||||||||||||||
Nonperforming loans, leases and foreclosed properties as a % of total loans, leases and foreclosed properties (2) | 2.33 | % | 2.53 | % | 2.87 | % | |||||||||||||||||
Allowance for loan and lease losses | $ | 21,235 | $ | 22,441 | $ | 30,288 | |||||||||||||||||
Allowance for loan and lease losses as a % of total loans and leases outstanding (2) | 2.33 | % | 2.49 | % | 3.43 | % | |||||||||||||||||
For footnotes see page 18. | |||||||||||||||||||||||
This information is preliminary and based on company data available at the time of the presentation. |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||
Selected Financial Data (continued) | |||||||||||||||||||||||
(Dollars in millions, except per share data; shares in thousands) | |||||||||||||||||||||||
Capital Management |
June 30 2013 |
March 31 2013 |
June 30 2012 | ||||||||||||||||||||
Risk-based capital (4, 5): | |||||||||||||||||||||||
Tier 1 common capital | $ | 139,519 | $ | 136,119 | $ | 134,082 | |||||||||||||||||
Tier 1 common capital ratio (6) | 10.83 | % | 10.49 | % | 11.24 | % | |||||||||||||||||
Tier 1 leverage ratio | 7.49 | 7.49 | 7.84 | ||||||||||||||||||||
Tangible equity ratio (7) | 7.67 | 7.78 | 7.73 | ||||||||||||||||||||
Tangible common equity ratio (7) | 6.98 | 6.88 | 6.83 | ||||||||||||||||||||
Period-end common shares issued and outstanding | 10,743,098 | 10,822,380 | 10,776,869 | ||||||||||||||||||||
Basel 1 to Basel 3 (fully phased-in) Reconciliation (5, 8) |
June 30 2013 |
March 31 2013 |
June 30 2012 | ||||||||||||||||||||
Regulatory capital – Basel 1 to Basel 3 (fully phased-in) | |||||||||||||||||||||||
Basel 1 Tier 1 capital | $ | 156,689 | $ | 158,677 | $ | 164,665 | |||||||||||||||||
Deduction of qualifying preferred stock and trust preferred securities | (17,170 | ) | (22,558 | ) | (30,583 | ) | |||||||||||||||||
Basel 1 Tier 1 common capital | 139,519 | 136,119 | 134,082 | ||||||||||||||||||||
Deduction of defined benefit pension assets | (787 | ) | (776 | ) | (3,057 | ) | |||||||||||||||||
Change in deferred tax assets and threshold deductions (deferred tax asset temporary differences, MSRs and significant investments) | (6,761 | ) | (4,501 | ) | (3,745 | ) | |||||||||||||||||
Change in all other deductions, net | (6,125 | ) | (2,032 | ) | (2,459 | ) | |||||||||||||||||
Basel 3 (fully phased-in) Tier 1 common capital | $ | 125,846 | $ | 128,810 | $ | 124,821 | |||||||||||||||||
Risk-weighted assets – Basel 1 to Basel 3 (fully phased-in) | |||||||||||||||||||||||
Basel 1 risk-weighted assets | $ | 1,288,159 | $ | 1,298,187 | $ | 1,193,422 | |||||||||||||||||
Net change in credit and other risk-weighted assets | 22,276 | 55,454 | 298,003 | ||||||||||||||||||||
Increase due to Market Risk Final Rule | — | — | 79,553 | ||||||||||||||||||||
Basel 3 (fully phased-in) risk-weighted assets | $ | 1,310,435 | $ | 1,353,641 | $ | 1,570,978 | |||||||||||||||||
Tier 1 common capital ratios | |||||||||||||||||||||||
Basel 1 | 10.83 | % | 10.49 | % | 11.24 | % | |||||||||||||||||
Basel 3 (fully phased-in) | 9.60 | 9.52 | 7.95 | ||||||||||||||||||||
Six Months Ended June 30 |
Second Quarter 2013 |
First Quarter 2013 |
Second Quarter 2012 | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Common shares issued | 44,480 | 240,931 | 364 | 44,116 | 1,265 | ||||||||||||||||||
Average common shares issued and outstanding | 10,787,357 | 10,714,881 | 10,775,867 | 10,798,975 | 10,775,695 | ||||||||||||||||||
Average diluted common shares issued and outstanding | 11,549,693 | 11,509,945 | 11,524,510 | 11,154,778 | 11,556,011 | ||||||||||||||||||
Dividends paid per common share | $ | 0.02 | $ | 0.02 | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||||||||
Summary Period-End Balance Sheet |
June 30 2013 |
March 31 2013 |
June 30 2012 | ||||||||||||||||||||
Total loans and leases | $ | 921,570 | $ | 911,592 | $ | 892,315 | |||||||||||||||||
Total debt securities | 336,403 | 354,709 | 349,140 | ||||||||||||||||||||
Total earning assets | 1,719,866 | 1,763,737 | 1,737,809 | ||||||||||||||||||||
Total assets | 2,123,320 | 2,174,819 | 2,160,854 | ||||||||||||||||||||
Total deposits | 1,080,783 | 1,095,183 | 1,035,225 | ||||||||||||||||||||
Total shareholders’ equity | 231,032 | 237,293 | 235,975 | ||||||||||||||||||||
Common shareholders’ equity | 216,791 | 218,513 | 217,213 | ||||||||||||||||||||
Book value per share of common stock | $ | 20.18 | $ | 20.19 | $ | 20.16 | |||||||||||||||||
Tangible book value per share of common stock (1) | 13.32 | 13.36 | 13.22 |
(1) 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 22-24.
(2) Ratios do not include loans accounted for under the fair value option during the period. Charge-off ratios are annualized for the quarterly presentation.
(3) Balances do not include past due consumer credit card, consumer loans secured by real estate where repayments are insured by the
(4) Regulatory capital ratios are preliminary until filed with the Federal Reserve on Form Y-9C.
(5) Includes the Market Risk Final Rule at
(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 22-24.
(8)
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.
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||
Quarterly Results by Business Segment | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||
Second Quarter 2013 | ||||||||||||||||||||||||||||||||||
Consumer & Business Banking |
Consumer
Real Estate Services |
Global
Banking |
Global
Markets |
GWIM | All
Other | |||||||||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 7,434 | $ | 2,115 | $ | 4,139 | $ | 4,189 | $ | 4,499 | $ | 573 | ||||||||||||||||||||||
Provision for credit losses | 967 | 291 | 163 | (16 | ) | (15 | ) | (179 | ) | |||||||||||||||||||||||||
Noninterest expense | 4,183 | 3,394 | 1,859 | 2,769 | 3,272 | 541 | ||||||||||||||||||||||||||||
Net income (loss) | 1,392 | (937 | ) | 1,291 | 959 | 758 | 549 | |||||||||||||||||||||||||||
Return on average allocated capital (2, 3) | 18.64 | % | n/m | 22.52 | % | 12.85 | % | 30.57 | % | n/m | ||||||||||||||||||||||||
Balance Sheet |
||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 163,593 | $ | 90,114 | $ | 255,674 | n/m | $ | 109,589 | $ | 238,910 | |||||||||||||||||||||||
Total deposits | 522,259 | n/m | 227,668 | n/m | 235,344 | 33,774 | ||||||||||||||||||||||||||||
Allocated capital (2, 3) | 30,000 | 24,000 | 23,000 | $ | 30,000 | 10,000 | n/m | |||||||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 164,851 | $ | 89,257 | $ | 258,502 | n/m | $ | 111,785 | $ | 234,047 | |||||||||||||||||||||||
Total deposits | 525,099 | n/m | 229,586 | n/m | 235,012 | 34,597 | ||||||||||||||||||||||||||||
First Quarter 2013 | ||||||||||||||||||||||||||||||||||
Consumer & Business Banking |
Consumer
Real Estate Services |
Global
Banking |
Global
Markets |
GWIM | All
Other | |||||||||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 7,412 | $ | 2,312 | $ | 4,030 | $ | 4,869 | $ | 4,421 | $ | 364 | ||||||||||||||||||||||
Provision for credit losses | 952 | 335 | 149 | 5 | 22 | 250 | ||||||||||||||||||||||||||||
Noninterest expense | 4,170 | 5,406 | 1,837 | 3,073 | 3,253 | 1,761 | ||||||||||||||||||||||||||||
Net income (loss) | 1,439 | (2,157 | ) | 1,284 | 1,169 | 720 | (972 | ) | ||||||||||||||||||||||||||
Return on average allocated capital (2, 3) | 19.48 | % | n/m | 22.65 | % | 15.83 | % | 29.38 | % | n/m | ||||||||||||||||||||||||
Balance Sheet |
||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 165,845 | $ | 92,963 | $ | 244,068 | n/m | $ | 106,082 | $ | 244,557 | |||||||||||||||||||||||
Total deposits | 502,508 | n/m | 222,120 | n/m | 253,413 | 35,549 | ||||||||||||||||||||||||||||
Allocated capital (2, 3) | 30,000 | 24,000 | 23,000 | $ | 30,000 | 10,000 | n/m | |||||||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 163,820 | $ | 90,971 | $ | 250,985 | n/m | $ | 107,048 | $ | 241,406 | |||||||||||||||||||||||
Total deposits | 530,581 | n/m | 228,248 | n/m | 239,853 | 35,759 | ||||||||||||||||||||||||||||
Second 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) | $ | 7,495 | $ | 2,529 | $ | 3,908 | $ | 3,578 | $ | 4,094 | $ | 598 | ||||||||||||||||||||||
Provision for credit losses | 1,157 | 187 | (152 | ) | (1 | ) | 47 | 535 | ||||||||||||||||||||||||||
Noninterest expense | 4,420 | 3,524 | 1,967 | 2,855 | 3,177 | 1,105 | ||||||||||||||||||||||||||||
Net income (loss) | 1,208 | (744 | ) | 1,318 | 497 | 548 | (364 | ) | ||||||||||||||||||||||||||
Return on average economic capital (2, 3) | 20.46 | % | n/m | 27.24 | % | 15.10 | % | 31.76 | % | n/m | ||||||||||||||||||||||||
Balance Sheet |
||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 173,565 | $ | 105,507 | $ | 219,504 | n/m | $ | 98,964 | $ | 263,649 | |||||||||||||||||||||||
Total deposits | 474,328 | n/m | 213,862 | n/m | 238,540 | 43,722 | ||||||||||||||||||||||||||||
Economic capital (2, 3) | 23,807 | 14,120 | 19,472 | $ | 13,316 | 7,011 | n/m | |||||||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 171,094 | $ | 104,079 | $ | 218,681 | n/m | $ | 100,261 | $ | 259,830 | |||||||||||||||||||||||
Total deposits | 479,795 | n/m | 216,529 | n/m | 237,339 | 39,362 |
(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) Effective
(3)Return on average allocated capital and return on average economic capital are calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital or average economic capital, as applicable. Allocated capital, economic capital and the related returns are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 22-24.)
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation.
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||
Year-to-Date Results by Business Segment | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
Consumer & Business Banking |
Consumer
Real Estate Services |
Global
Banking |
Global
Markets |
GWIM | All
Other | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 14,846 | $ | 4,427 | $ | 8,169 | $ | 9,058 | $ | 8,920 | $ | 937 | ||||||||||||
Provision for credit losses | 1,919 | 626 | 312 | (11 | ) | 7 | 71 | |||||||||||||||||
Noninterest expense | 8,353 | 8,800 | 3,696 | 5,842 | 6,525 | 2,302 | ||||||||||||||||||
Net income (loss) | 2,831 | (3,094 | ) | 2,575 | 2,128 | 1,478 | (423 | ) | ||||||||||||||||
Return on average allocated capital (2, 3) | 19.06 | % | n/m | 22.58 | % | 14.33 | % | 29.98 | % | n/m | ||||||||||||||
Balance Sheet |
||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 164,713 | $ | 91,531 | $ | 249,903 | n/m | $ | 107,845 | $ | 241,718 | |||||||||||||
Total deposits | 512,438 | n/m | 224,909 | n/m | 244,329 | 34,657 | ||||||||||||||||||
Allocated capital (2, 3) | 30,000 | 24,000 | 23,000 | $ | 30,000 | 10,000 | n/m | |||||||||||||||||
Period end | ||||||||||||||||||||||||
Total loans and leases | $ | 164,851 | $ | 89,257 | $ | 258,502 | n/m | $ | 111,785 | $ | 234,047 | |||||||||||||
Total deposits | 525,099 | n/m | 229,586 | n/m | 235,012 | 34,597 | ||||||||||||||||||
Six Months Ended June 30, 2012 | ||||||||||||||||||||||||
Consumer & Business Banking |
Consumer
Real Estate Services |
Global
Banking |
Global
Markets |
GWIM | All
Other | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 15,128 | $ | 5,193 | $ | 7,937 | $ | 7,985 | $ | 8,241 | $ | 203 | ||||||||||||
Provision for credit losses | 2,064 | 694 | (427 | ) | (14 | ) | 93 | 1,781 | ||||||||||||||||
Noninterest expense | 8,725 | 7,404 | 3,928 | 6,090 | 6,409 | 3,633 | ||||||||||||||||||
Net income (loss) | 2,740 | (1,879 | ) | 2,802 | 1,326 | 1,098 | (2,971 | ) | ||||||||||||||||
Return on average economic capital (2, 3) | 23.32 | % | n/m | 29.31 | % | 19.32 | % | 33.24 | % | n/m | ||||||||||||||
Balance Sheet |
||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 177,971 | $ | 107,554 | $ | 221,854 | n/m | $ | 98,490 | $ | 266,938 | |||||||||||||
Total deposits | 469,181 | n/m | 212,638 | n/m | 239,200 | 48,125 | ||||||||||||||||||
Economic capital (2, 3) | 23,682 | 14,455 | 19,243 | $ | 13,849 | 6,716 | n/m | |||||||||||||||||
Period end | ||||||||||||||||||||||||
Total loans and leases | $ | 171,094 | $ | 104,079 | $ | 218,681 | n/m | $ | 100,261 | $ | 259,830 | |||||||||||||
Total deposits | 479,795 | n/m | 216,529 | n/m | 237,339 | 39,362 |
(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) Effective
(3)Return on average allocated capital and return on average economic capital are calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital or average economic capital, as applicable. Allocated capital, economic capital and the related returns are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 22-24.)
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation.
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||
Supplemental Financial Data | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Fully taxable-equivalent (FTE) basis data (1) |
Six Months Ended June 30 |
Second Quarter 2013 |
First Quarter 2013 |
Second Quarter 2012 | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Net interest income | $ | 21,646 | $ | 20,835 | $ | 10,771 | $ | 10,875 | $ | 9,782 | |||||||||||||||
Total revenue, net of interest expense | 46,357 | 44,687 | 22,949 | 23,408 | 22,202 | ||||||||||||||||||||
Net interest yield (2) | 2.44 | % | 2.36 | % | 2.44 | % | 2.43 | % | 2.21 | % | |||||||||||||||
Efficiency ratio | 76.62 | 80.98 | 69.80 | 83.31 | 76.79 | ||||||||||||||||||||
Other Data |
June 30 2013 |
March 31 2013 |
June 30 2012 | ||||||||||||||||||||||
Number of banking centers - U.S. | 5,328 | 5,389 | 5,594 | ||||||||||||||||||||||
Number of branded ATMs - U.S. | 16,354 | 16,311 | 16,220 | ||||||||||||||||||||||
Ending full-time equivalent employees | 257,158 | 262,812 | 275,460 |
(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 22-24.
(2) Calculation includes fees earned on overnight deposits placed with the Federal Reserve and, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, of
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.
Bank of America Corporation and Subsidiaries |
Reconciliations to GAAP Financial Measures |
(Dollars in millions) |
The Corporation evaluates its business based on a fully taxable-equivalent basis, a non-GAAP financial measure. The Corporation believes managing the business with net interest income on a fully taxable-equivalent basis provides a more accurate picture of the interest margin for comparative purposes. Total revenue, net of interest expense, includes net interest income on a fully taxable-equivalent basis and noninterest income. The Corporation views related ratios and analyses (i.e., efficiency ratios and net interest yield) on a fully taxable-equivalent basis. To derive the fully taxable-equivalent basis, net interest income is adjusted to reflect tax-exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. For purposes of this calculation, the Corporation uses the federal statutory tax rate of 35 percent. This measure ensures comparability of net interest income arising from taxable and tax-exempt sources. The efficiency ratio measures the costs expended to generate a dollar of revenue, and net interest yield measures the basis points the Corporation earns over the cost of funds.
The Corporation also evaluates its business based on the following ratios that utilize tangible equity, a non-GAAP financial measure. Tangible equity represents an adjusted shareholders' equity or common shareholders' equity amount which has been reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible common shareholders' equity measures the Corporation's earnings contribution as a percentage of adjusted average common shareholders' equity. Return on average tangible shareholders' equity measures the Corporation's earnings contribution as a percentage of adjusted average shareholders' equity. The tangible common equity ratio represents adjusted ending common shareholders' equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. The tangible equity ratio represents total adjusted ending shareholders' equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Tangible book value per common share represents adjusted ending common shareholders' equity divided by ending common shares outstanding. These measures are used to evaluate the Corporation's use of equity (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.
Effective
See the tables below and on pages 23-24 for reconciliations of these non-GAAP financial measures with financial measures defined by GAAP for the six months ended
Six Months Ended June 30 |
Second Quarter 2013 |
First Quarter 2013 |
Second Quarter 2012 | ||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis |
|||||||||||||||||||||||||
Net interest income | $ | 21,213 | $ | 20,394 | $ | 10,549 | $ | 10,664 | $ | 9,548 | |||||||||||||||
Fully taxable-equivalent adjustment | 433 | 441 | 222 | 211 | 234 | ||||||||||||||||||||
Net interest income on a fully taxable-equivalent basis | $ | 21,646 | $ | 20,835 | $ | 10,771 | $ | 10,875 | $ | 9,782 | |||||||||||||||
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 | $ | 45,924 | $ | 44,246 | $ | 22,727 | $ | 23,197 | $ | 21,968 | |||||||||||||||
Fully taxable-equivalent adjustment | 433 | 441 | 222 | 211 | 234 | ||||||||||||||||||||
Total revenue, net of interest expense on a fully taxable-equivalent basis | $ | 46,357 | $ | 44,687 | $ | 22,949 | $ | 23,408 | $ | 22,202 | |||||||||||||||
Reconciliation of income tax expense to income tax expense on a fully taxable-equivalent basis |
|||||||||||||||||||||||||
Income tax expense | $ | 1,987 | $ | 750 | $ | 1,486 | $ | 501 | $ | 684 | |||||||||||||||
Fully taxable-equivalent adjustment | 433 | 441 | 222 | 211 | 234 | ||||||||||||||||||||
Income tax expense on a fully taxable-equivalent basis | $ | 2,420 | $ | 1,191 | $ | 1,708 | $ | 712 | $ | 918 | |||||||||||||||
Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity |
|||||||||||||||||||||||||
Common shareholders’ equity | $ | 218,509 | $ | 215,466 | $ | 218,790 | $ | 218,225 | $ | 216,782 | |||||||||||||||
Goodwill | (69,937 | ) | (69,971 | ) | (69,930 | ) | (69,945 | ) | (69,976 | ) | |||||||||||||||
Intangible assets (excluding mortgage servicing rights) | (6,409 | ) | (7,701 | ) | (6,270 | ) | (6,549 | ) | (7,533 | ) | |||||||||||||||
Related deferred tax liabilities | 2,393 | 2,663 | 2,360 | 2,425 | 2,626 | ||||||||||||||||||||
Tangible common shareholders’ equity | $ | 144,556 | $ | 140,457 | $ | 144,950 | $ | 144,156 | $ | 141,899 | |||||||||||||||
Reconciliation of average shareholders’ equity to average tangible shareholders’ equity |
|||||||||||||||||||||||||
Shareholders’ equity | $ | 236,024 | $ | 234,062 | $ | 235,063 | $ | 236,995 | $ | 235,558 | |||||||||||||||
Goodwill | (69,937 | ) | (69,971 | ) | (69,930 | ) | (69,945 | ) | (69,976 | ) | |||||||||||||||
Intangible assets (excluding mortgage servicing rights) | (6,409 | ) | (7,701 | ) | (6,270 | ) | (6,549 | ) | (7,533 | ) | |||||||||||||||
Related deferred tax liabilities | 2,393 | 2,663 | 2,360 | 2,425 | 2,626 | ||||||||||||||||||||
Tangible shareholders’ equity | $ | 162,071 | $ | 159,053 | $ | 161,223 | $ | 162,926 | $ | 160,675 |
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.
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||
Reconciliations to GAAP Financial Measures (continued) | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Six Months Ended June 30 |
Second Quarter 2013 |
First Quarter 2013 |
Second Quarter 2012 | ||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Reconciliation of period-end common shareholders’ equity to period-end tangible common shareholders’ equity |
|||||||||||||||||||||||||
Common shareholders’ equity | $ | 216,791 | $ | 217,213 | $ | 216,791 | $ | 218,513 | $ | 217,213 | |||||||||||||||
Goodwill | (69,930 | ) | (69,976 | ) | (69,930 | ) | (69,930 | ) | (69,976 | ) | |||||||||||||||
Intangible assets (excluding mortgage servicing rights) | (6,104 | ) | (7,335 | ) | (6,104 | ) | (6,379 | ) | (7,335 | ) | |||||||||||||||
Related deferred tax liabilities | 2,297 | 2,559 | 2,297 | 2,363 | 2,559 | ||||||||||||||||||||
Tangible common shareholders’ equity | $ | 143,054 | $ | 142,461 | $ | 143,054 | $ | 144,567 | $ | 142,461 | |||||||||||||||
Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity |
|||||||||||||||||||||||||
Shareholders’ equity | $ | 231,032 | $ | 235,975 | $ | 231,032 | $ | 237,293 | $ | 235,975 | |||||||||||||||
Goodwill | (69,930 | ) | (69,976 | ) | (69,930 | ) | (69,930 | ) | (69,976 | ) | |||||||||||||||
Intangible assets (excluding mortgage servicing rights) | (6,104 | ) | (7,335 | ) | (6,104 | ) | (6,379 | ) | (7,335 | ) | |||||||||||||||
Related deferred tax liabilities | 2,297 | 2,559 | 2,297 | 2,363 | 2,559 | ||||||||||||||||||||
Tangible shareholders’ equity | $ | 157,295 | $ | 161,223 | $ | 157,295 | $ | 163,347 | $ | 161,223 | |||||||||||||||
Reconciliation of period-end assets to period-end tangible assets |
|||||||||||||||||||||||||
Assets | $ | 2,123,320 | $ | 2,160,854 | $ | 2,123,320 | $ | 2,174,819 | $ | 2,160,854 | |||||||||||||||
Goodwill | (69,930 | ) | (69,976 | ) | (69,930 | ) | (69,930 | ) | (69,976 | ) | |||||||||||||||
Intangible assets (excluding mortgage servicing rights) | (6,104 | ) | (7,335 | ) | (6,104 | ) | (6,379 | ) | (7,335 | ) | |||||||||||||||
Related deferred tax liabilities | 2,297 | 2,559 | 2,297 | 2,363 | 2,559 | ||||||||||||||||||||
Tangible assets | $ | 2,049,583 | $ | 2,086,102 | $ | 2,049,583 | $ | 2,100,873 | $ | 2,086,102 | |||||||||||||||
Book value per share of common stock |
|||||||||||||||||||||||||
Common shareholders’ equity | $ | 216,791 | $ | 217,213 | $ | 216,791 | $ | 218,513 | $ | 217,213 | |||||||||||||||
Ending common shares issued and outstanding | 10,743,098 | 10,776,869 | 10,743,098 | 10,822,380 | 10,776,869 | ||||||||||||||||||||
Book value per share of common stock | $ | 20.18 | $ | 20.16 | $ | 20.18 | $ | 20.19 | $ | 20.16 | |||||||||||||||
Tangible book value per share of common stock |
|||||||||||||||||||||||||
Tangible common shareholders’ equity | $ | 143,054 | $ | 142,461 | $ | 143,054 | $ | 144,567 | $ | 142,461 | |||||||||||||||
Ending common shares issued and outstanding | 10,743,098 | 10,776,869 | 10,743,098 | 10,822,380 | 10,776,869 | ||||||||||||||||||||
Tangible book value per share of common stock | $ | 13.32 | $ | 13.22 | $ | 13.32 | $ | 13.36 | $ | 13.22 |
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.
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||
Reconciliations to GAAP Financial Measures (continued) | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Six Months Ended June 30 |
Second Quarter 2013 |
First Quarter 2013 |
Second Quarter 2012 | ||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Reconciliation of return on average allocated capital/economic capital (1) |
|||||||||||||||||||||||||
Consumer & Business Banking |
|||||||||||||||||||||||||
Reported net income | $ | 2,831 | $ | 2,740 | $ | 1,392 | $ | 1,439 | $ | 1,208 | |||||||||||||||
Adjustment related to intangibles (2) | 4 | 7 | 2 | 2 | 4 | ||||||||||||||||||||
Adjusted net income | $ | 2,835 | $ | 2,747 | $ | 1,394 | $ | 1,441 | $ | 1,212 | |||||||||||||||
Average allocated equity (3) | $ | 62,070 | $ | 55,880 | $ | 62,058 | $ | 62,083 | $ | 55,987 | |||||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (32,070 | ) | (32,198 | ) | (32,058 | ) | (32,083 | ) | (32,180 | ) | |||||||||||||||
Average allocated capital/economic capital | $ | 30,000 | $ | 23,682 | $ | 30,000 | $ | 30,000 | $ | 23,807 | |||||||||||||||
Global Banking |
|||||||||||||||||||||||||
Reported net income | $ | 2,575 | $ | 2,802 | $ | 1,291 | $ | 1,284 | $ | 1,318 | |||||||||||||||
Adjustment related to intangibles (2) | 1 | 2 | — | 1 | 1 | ||||||||||||||||||||
Adjusted net income | $ | 2,576 | $ | 2,804 | $ | 1,291 | $ | 1,285 | $ | 1,319 | |||||||||||||||
Average allocated equity (3) | $ | 45,412 | $ | 41,677 | $ | 45,416 | $ | 45,407 | $ | 41,903 | |||||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (22,412 | ) | (22,434 | ) | (22,416 | ) | (22,407 | ) | (22,431 | ) | |||||||||||||||
Average allocated capital/economic capital | $ | 23,000 | $ | 19,243 | $ | 23,000 | $ | 23,000 | $ | 19,472 | |||||||||||||||
Global Markets |
|||||||||||||||||||||||||
Reported net income | $ | 2,128 | $ | 1,326 | $ | 959 | $ | 1,169 | $ | 497 | |||||||||||||||
Adjustment related to intangibles (2) | 4 | 5 | 2 | 2 | 3 | ||||||||||||||||||||
Adjusted net income | $ | 2,132 | $ | 1,331 | $ | 961 | $ | 1,171 | $ | 500 | |||||||||||||||
Average allocated equity (3) | $ | 35,372 | $ | 19,207 | $ | 35,372 | $ | 35,372 | $ | 18,655 | |||||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (5,372 | ) | (5,358 | ) | (5,372 | ) | (5,372 | ) | (5,339 | ) | |||||||||||||||
Average allocated capital/economic capital | $ | 30,000 | $ | 13,849 | $ | 30,000 | $ | 30,000 | $ | 13,316 | |||||||||||||||
Global Wealth & Investment Management |
|||||||||||||||||||||||||
Reported net income | $ | 1,478 | $ | 1,098 | $ | 758 | $ | 720 | $ | 548 | |||||||||||||||
Adjustment related to intangibles (2) | 9 | 12 | 5 | 4 | 6 | ||||||||||||||||||||
Adjusted net income | $ | 1,487 | $ | 1,110 | $ | 763 | $ | 724 | $ | 554 | |||||||||||||||
Average allocated equity (3) | $ | 20,311 | $ | 17,107 | $ | 20,300 | $ | 20,323 | $ | 17,391 | |||||||||||||||
Adjustment related to goodwill and a percentage of intangibles | (10,311 | ) | (10,391 | ) | (10,300 | ) | (10,323 | ) | (10,380 | ) | |||||||||||||||
Average allocated capital/economic capital | $ | 10,000 | $ | 6,716 | $ | 10,000 | $ | 10,000 | $ | 7,011 |
(1) There are no adjustments to reported net income (loss) or average allocated equity for Consumer Real Estate Services.
(2) Represents cost of funds, earnings credits and certain expenses related to intangibles.
(3) Average allocated equity is comprised of average allocated capital (or economic capital prior to 2013) plus capital for the portion of goodwill and intangibles specifically assigned to the business segment.
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation.
Source:
Investors May Contact:
Anne Walker, Bank of America, 1.646.855.3644
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