Bank of America Corporation and Subsidiaries
 
 
 
 
 
 
 
Exhibit 12
 
Ratio of Earnings to Fixed Charges
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges and Preferred Dividends
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31
(Dollars in millions)
 
Nine Months Ended September 30, 2011
 
2010
 
2009
 
2008
 
2007
 
2006
Excluding Interest on Deposits
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(2,662
)
 
$
(1,323
)
 
$
4,360

 
$
4,428

 
$
20,924

 
$
31,973

Equity in undistributed earnings (loss) of unconsolidated subsidiaries
 
(5,241
)
 
1,285

 
(1,833
)
 
(144
)
 
(95
)
 
(315
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
14,522

 
19,977

 
23,000

 
25,074

 
34,778

 
29,514

1/3 of net rent expense (1)
 
821

 
1,099

 
1,110

 
791

 
669

 
609

Total fixed charges
 
15,343

 
21,076

 
24,110

 
25,865

 
35,447

 
30,123

Preferred dividend requirements (2)
 
4,660

 
n/m

 
5,921

 
1,461

 
254

 
33

Fixed charges and preferred dividends
 
20,003

 
21,076

 
30,031

 
27,326

 
35,701

 
30,156

Earnings
 
$
7,440

 
$
21,038

 
$
26,637

 
$
30,149

 
$
56,276

 
$
61,781

Ratio of earnings to fixed charges (3)
 
0.48

 
1.00

 
1.10

 
1.17

 
1.59

 
2.05

Ratio of earnings to fixed charges and preferred dividends (2, 3, 4)
 
0.37

 
n/m

 
0.89

 
1.10

 
1.58

 
2.05

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31
(Dollars in millions)
 
Nine Months Ended September 30, 2011
 
2010
 
2009
 
2008
 
2007
 
2006
Including Interest on Deposits
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(2,662
)
 
$
(1,323
)
 
$
4,360

 
$
4,428

 
$
20,924

 
$
31,973

Equity in undistributed earnings (loss) of unconsolidated subsidiaries
 
(5,241
)
 
1,285

 
(1,833
)
 
(144
)
 
(95
)
 
(315
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
16,908

 
23,974

 
30,807

 
40,324

 
52,871

 
43,994

1/3 of net rent expense (1)
 
821

 
1,099

 
1,110

 
791

 
669

 
609

Total fixed charges
 
17,729

 
25,073

 
31,917

 
41,115

 
53,540

 
44,603

Preferred dividend requirements (2)
 
4,660

 
n/m

 
5,921

 
1,461

 
254

 
33

Fixed charges and preferred dividends
 
22,389

 
25,073

 
37,838

 
42,576

 
53,794

 
44,636

Earnings
 
$
9,826

 
$
25,035

 
$
34,444

 
$
45,399

 
$
74,369

 
$
76,261

Ratio of earnings to fixed charges (3)
 
0.55

 
1.00

 
1.08

 
1.10

 
1.39

 
1.71

Ratio of earnings to fixed charges and preferred dividends (2, 3, 4)
 
0.44

 
n/m

 
0.90

 
1.07

 
1.38

 
1.71

(1) 
Represents an appropriate interest factor.
(2) 
Reflects the impact of $12.4 billion of goodwill impairment charges during 2010 which resulted in a negative preferred dividend requirement.
(3) 
The earnings for the nine months ended September 30, 2011 were inadequate to cover the ratio of earnings to fixed charges and the ratio of earnings to fixed charges and preferred dividends. The earnings deficiency reflects the impact of $10.9 billion of mortgage banking losses. The coverage deficiency for fixed charges was $7.9 billion and the coverage deficiency for fixed charges and preferred dividends was $12.6 billion.
(4) 
The earnings for 2009 were inadequate to cover fixed charges and preferred stock dividends. The earnings deficiency is a result of the accelerated accretion of $4.0 billion recorded as a result of the repurchase of TARP Preferred Stock. The coverage deficiency for fixed charges and preferred dividends was $3.4 billion.
n/m = not meaningful