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) | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
Excluding Interest on Deposits | ||||||||||||||||||||
Income (loss) before income taxes | $ | (230 | ) | $ | (1,323 | ) | $ | 4,360 | $ | 4,428 | $ | 20,924 | ||||||||
Equity in undistributed earnings (loss) of unconsolidated subsidiaries | (2,112 | ) | 1,285 | (1,833 | ) | (144 | ) | (95 | ) | |||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense | 18,618 | 19,977 | 23,000 | 25,074 | 34,778 | |||||||||||||||
1/3 of net rent expense (1) | 1,072 | 1,099 | 1,110 | 791 | 669 | |||||||||||||||
Total fixed charges | 19,690 | 21,076 | 24,110 | 25,865 | 35,447 | |||||||||||||||
Preferred dividend requirements (2) | 211 | n/m | 5,921 | 1,461 | 254 | |||||||||||||||
Fixed charges and preferred dividends | 19,901 | 21,076 | 30,031 | 27,326 | 35,701 | |||||||||||||||
Earnings | $ | 17,348 | $ | 21,038 | $ | 26,637 | $ | 30,149 | $ | 56,276 | ||||||||||
Ratio of earnings to fixed charges (3) | 0.88 | 1.00 | 1.10 | 1.17 | 1.59 | |||||||||||||||
Ratio of earnings to fixed charges and preferred dividends (2, 3, 4) | 0.87 | n/m | 0.89 | 1.10 | 1.58 | |||||||||||||||
Year Ended December 31 | ||||||||||||||||||||
(Dollars in millions) | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
Including Interest on Deposits | ||||||||||||||||||||
Income (loss) before income taxes | $ | (230 | ) | $ | (1,323 | ) | $ | 4,360 | $ | 4,428 | $ | 20,924 | ||||||||
Equity in undistributed earnings (loss) of unconsolidated subsidiaries | (2,112 | ) | 1,285 | (1,833 | ) | (144 | ) | (95 | ) | |||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense | 21,620 | 23,974 | 30,807 | 40,324 | 52,871 | |||||||||||||||
1/3 of net rent expense (1) | 1,072 | 1,099 | 1,110 | 791 | 669 | |||||||||||||||
Total fixed charges | 22,692 | 25,073 | 31,917 | 41,115 | 53,540 | |||||||||||||||
Preferred dividend requirements (2) | 211 | n/m | 5,921 | 1,461 | 254 | |||||||||||||||
Fixed charges and preferred dividends | 22,903 | 25,073 | 37,838 | 42,576 | 53,794 | |||||||||||||||
Earnings | $ | 20,350 | $ | 25,035 | $ | 34,444 | $ | 45,399 | $ | 74,369 | ||||||||||
Ratio of earnings to fixed charges (3) | 0.90 | 1.00 | 1.08 | 1.10 | 1.39 | |||||||||||||||
Ratio of earnings to fixed charges and preferred dividends (2, 3, 4) | 0.89 | n/m | 0.90 | 1.07 | 1.38 | |||||||||||||||
(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 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 $8.8 billion of mortgage banking losses. The coverage deficiency for fixed charges was $2.3 billion and the coverage deficiency for fixed charges and preferred dividends was $2.6 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. |