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, 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||
Excluding Interest on Deposits | |||||||||||||||||||||||
Income (loss) before income taxes | $ | 4,976 | $ | (230 | ) | $ | (1,323 | ) | $ | 4,360 | $ | 4,428 | $ | 20,924 | |||||||||
Equity in undistributed earnings (loss) of unconsolidated subsidiaries | 83 | 596 | 1,210 | (1,833 | ) | (144 | ) | (95 | ) | ||||||||||||||
Fixed charges: | |||||||||||||||||||||||
Interest expense | 11,545 | 18,618 | 19,977 | 23,000 | 25,074 | 34,778 | |||||||||||||||||
1/3 of net rent expense (1) | 820 | 1,072 | 1,099 | 1,110 | 791 | 669 | |||||||||||||||||
Total fixed charges | 12,365 | 19,690 | 21,076 | 24,110 | 25,865 | 35,447 | |||||||||||||||||
Preferred dividend requirements (2) | 1,594 | n/m | 802 | 5,921 | 1,461 | 254 | |||||||||||||||||
Fixed charges and preferred dividends | 13,959 | 19,690 | 21,878 | 30,031 | 27,326 | 35,701 | |||||||||||||||||
Earnings | $ | 17,424 | $ | 20,056 | $ | 20,963 | $ | 26,637 | $ | 30,149 | $ | 56,276 | |||||||||||
Ratio of earnings to fixed charges (3) | 1.41 | 1.02 | 0.99 | 1.10 | 1.17 | 1.59 | |||||||||||||||||
Ratio of earnings to fixed charges and preferred dividends (3, 4) | 1.25 | 1.02 | 0.96 | 0.89 | 1.10 | 1.58 | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||
(Dollars in millions) | Nine Months Ended September 30, 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||
Including Interest on Deposits | |||||||||||||||||||||||
Income (loss) before income taxes | $ | 4,976 | $ | (230 | ) | $ | (1,323 | ) | $ | 4,360 | $ | 4,428 | $ | 20,924 | |||||||||
Equity in undistributed earnings (loss) of unconsolidated subsidiaries | 83 | 596 | 1,210 | (1,833 | ) | (144 | ) | (95 | ) | ||||||||||||||
Fixed charges: | |||||||||||||||||||||||
Interest expense | 13,097 | 21,620 | 23,974 | 30,807 | 40,324 | 52,871 | |||||||||||||||||
1/3 of net rent expense (1) | 820 | 1,072 | 1,099 | 1,110 | 791 | 669 | |||||||||||||||||
Total fixed charges | 13,917 | 22,692 | 25,073 | 31,917 | 41,115 | 53,540 | |||||||||||||||||
Preferred dividend requirements (2) | 1,594 | n/m | 802 | 5,921 | 1,461 | 254 | |||||||||||||||||
Fixed charges and preferred dividends | 15,511 | 22,692 | 25,875 | 37,838 | 42,576 | 53,794 | |||||||||||||||||
Earnings | $ | 18,976 | $ | 23,058 | $ | 24,960 | $ | 34,444 | $ | 45,399 | $ | 74,369 | |||||||||||
Ratio of earnings to fixed charges | 1.36 | 1.02 | 1.00 | 1.08 | 1.10 | 1.39 | |||||||||||||||||
Ratio of earnings to fixed charges and preferred dividends (3, 4) | 1.22 | 1.02 | 0.96 | 0.91 | 1.07 | 1.38 | |||||||||||||||||
(1) | Represents an appropriate interest factor. |
(2) | Reflects the impact of $8.8 billion of mortgage banking losses and $3.2 billion of goodwill impairment charges during 2011 which resulted in a negative preferred dividend requirement. |
(3) | The earnings for 2010 were inadequate to cover fixed charges and the ratio of earnings to fixed charges and preferred dividends. The earnings deficiency is a result of $12.4 billion of goodwill impairment charges during 2010. The coverage deficiency for fixed charges was $113 million and the coverage deficiency for fixed charges and preferred dividends was $915 million. |
(4) | The earnings for 2009 were inadequate to cover fixed charges and preferred dividends. The earnings deficiency is a result of 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. |