[ü] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2013 |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class | Name of each exchange on which registered | |||
Common Stock, par value $0.01 per share | New York Stock Exchange | |||
London Stock Exchange | ||||
Tokyo Stock Exchange | ||||
Warrants to purchase Common Stock (expiring October 28, 2018) | New York Stock Exchange | |||
Warrants to purchase Common Stock (expiring January 16, 2019) | New York Stock Exchange | |||
Depositary Shares, each representing a 1/1,000th interest in a share of 6.204% Non-Cumulative Preferred Stock, Series D | New York Stock Exchange | |||
Depositary Shares, each representing a 1/1,000th interest in a share of Floating Rate Non-Cumulative Preferred Stock, Series E | New York Stock Exchange | |||
Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Non-Cumulative Preferred Stock, Series I | New York Stock Exchange | |||
7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L | New York Stock Exchange | |||
Depositary Shares, each representing a 1/1,200th interest in a share of Bank of America Corporation Floating Rate Non-Cumulative Preferred Stock, Series 1 | New York Stock Exchange | |||
Depositary Shares, each representing a 1/1,200th interest in a share of Bank of America Corporation Floating Rate Non-Cumulative Preferred Stock, Series 2 | New York Stock Exchange |
Title of each class | Name of each exchange on which registered | |||
Depositary Shares, each representing a 1/1,200th interest in a share of Bank of America Corporation 6.375% Non-Cumulative Preferred Stock, Series 3 | New York Stock Exchange | |||
Depositary Shares, each representing a 1/1,200th interest in a share of Bank of America Corporation Floating Rate Non-Cumulative Preferred Stock, Series 4 | New York Stock Exchange | |||
Depositary Shares, each representing a 1/1,200th interest in a share of Bank of America Corporation Floating Rate Non-Cumulative Preferred Stock, Series 5 | New York Stock Exchange | |||
6.75% Trust Preferred Securities of Countrywide Capital IV (and the guarantees related thereto) | New York Stock Exchange | |||
7.00% Capital Securities of Countrywide Capital V (and the guarantees related thereto) | New York Stock Exchange | |||
6% Capital Securities of BAC Capital Trust VIII (and the guarantee related thereto) | New York Stock Exchange | |||
Floating Rate Preferred Hybrid Income Term Securities of BAC Capital Trust XIII (and the guarantee related thereto) | New York Stock Exchange | |||
5.63% Fixed to Floating Rate Preferred Hybrid Income Term Securities of BAC Capital Trust XIV (and the guarantee related thereto) | New York Stock Exchange | |||
MBNA Capital B Floating Rate Capital Securities, Series B (and the guarantee related thereto) | New York Stock Exchange | |||
Trust Preferred Securities of Merrill Lynch Capital Trust I (and the guarantee of the Registrant with respect thereto) | New York Stock Exchange | |||
Trust Preferred Securities of Merrill Lynch Capital Trust II (and the guarantee of the Registrant with respect thereto) | New York Stock Exchange | |||
Trust Preferred Securities of Merrill Lynch Capital Trust III (and the guarantee of the Registrant with respect thereto) | New York Stock Exchange | |||
Market Index Target-Term Securities® Linked to the Dow Jones Industrial AverageSM due December 2, 2014 | NYSE Arca, Inc. | |||
Market Index Target-Term Securities® Linked to the S&P 500® Index, due April 25, 2014 | NYSE Arca, Inc. | |||
Market Index Target-Term Securities® Linked to the S&P 500® Index, due March 28, 2014 | NYSE Arca, Inc. | |||
Market Index Target-Term Securities® Linked to the S&P 500® Index, due February 28, 2014 | NYSE Arca, Inc. | |||
Market Index Target-Term Securities® Linked to the Dow Jones Industrial AverageSM, due January 30, 2015 | NYSE Arca, Inc. | |||
Market Index Target-Term Securities® Linked to the S&P 500® Index, due February 27, 2015 | NYSE Arca, Inc. | |||
Market Index Target-Term Securities® Linked to the Dow Jones Industrial AverageSM, due March 27, 2015 | NYSE Arca, Inc. | |||
Market Index Target-Term Securities® Linked to the Dow Jones Industrial AverageSM, due April 24, 2015 | NYSE Arca, Inc. | |||
Market Index Target-Term Securities® Linked to the Dow Jones Industrial AverageSM, due May 29, 2015 | NYSE Arca, Inc. | |||
Market Index Target-Term Securities® Linked to the Dow Jones Industrial AverageSM, due June 26, 2015 | NYSE Arca, Inc. | |||
Market Index Target-Term Securities® Linked to the S&P 500® Index, due July 31, 2015 | NYSE Arca, Inc. |
Large accelerated filer ü | Accelerated filer | Non-accelerated filer | Smaller reporting company | |||
(do not check if a smaller reporting company) |
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Facility Name | Location | General Character of the Physical Property | Primary Business Segment | Property Status | Property Square Feet (1) | |||||
Corporate Center | Charlotte, NC | 60 Story Building | Principal Executive Offices | Owned | 1,200,392 | |||||
One Bryant Park | New York, NY | 54 Story Building | GWIM, Global Banking and Global Markets | Leased (2) | 1,798,373 | |||||
Merrill Lynch Financial Centre | London, UK | 4 Building Campus | GWIM, Global Banking and Global Markets | Leased | 563,944 | |||||
Nihonbashi 1-Chome Building | Tokyo, Japan | 24 Story Building | Global Banking and Global Markets | Leased | 186,901 |
(1) | For leased properties, property square feet represents the square footage occupied by the Corporation. |
(2) | The Corporation has a 49.9 percent joint venture interest in this property. |
20 Bank of America 2013 |
Quarter | High | Low | ||||||||
2012 | first | $ | 9.93 | $ | 5.80 | |||||
second | 9.68 | 6.83 | ||||||||
third | 9.55 | 7.04 | ||||||||
fourth | 11.61 | 8.93 | ||||||||
2013 | first | 12.78 | 11.03 | |||||||
second | 13.83 | 11.44 | ||||||||
third | 14.95 | 12.83 | ||||||||
fourth | 15.88 | 13.69 |
Quarter | Dividend | |||
2012 | first | $ | 0.01 | |
second | 0.01 | |||
third | 0.01 | |||
fourth | 0.01 | |||
2013 | first | 0.01 | ||
second | 0.01 | |||
third | 0.01 | |||
fourth | 0.01 |
(Dollars in millions, except per share information; shares in thousands) | Common Shares Repurchased (1) | Weighted-Average Per Share Price | Shares Purchased as Part of Publicly Announced Programs | Remaining Buyback Authority Amounts (2) | |||||||||
October 1 - 31, 2013 | 23,734 | $ | 14.39 | 23,403 | $ | 2,794 | |||||||
November 1 - 30, 2013 | 57,961 | 14.55 | 57,894 | 1,951 | |||||||||
December 1 - 31, 2013 | 10,840 | 15.88 | 10,800 | 1,780 | |||||||||
Three months ended December 31, 2013 | 92,535 | 14.67 |
(1) | Includes shares of the Corporation’s common stock acquired by the Corporation in connection with satisfaction of tax withholding obligations on vested restricted stock or restricted stock units and certain forfeitures and terminations of employment-related awards under equity incentive plans. |
(2) | On March 14, 2013, the Corporation announced that its Board of Directors authorized the repurchase of up to $5.0 billion of the Corporation’s common stock through open market purchases or privately negotiated transactions, including Rule 10b5-1 plans, over four quarters beginning with the second quarter of 2013. For additional information, see Capital Management – Regulatory Capital on page 65 and Note 13 – Shareholders’ Equity to the Consolidated Financial Statements. |
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Item 7. Bank of America Corporation and Subsidiaries Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||
Table of Contents | ||
Page | ||
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Table 1 | Selected Financial Data | ||||||
(Dollars in millions, except per share information) | 2013 | 2012 | |||||
Income statement | |||||||
Revenue, net of interest expense (FTE basis) (1) | $ | 89,801 | $ | 84,235 | |||
Net income | 11,431 | 4,188 | |||||
Diluted earnings per common share | 0.90 | 0.25 | |||||
Dividends paid per common share | 0.04 | 0.04 | |||||
Performance ratios | |||||||
Return on average assets | 0.53 | % | 0.19 | % | |||
Return on average tangible shareholders’ equity (1) | 7.13 | 2.60 | |||||
Efficiency ratio (FTE basis) (1) | 77.07 | 85.59 | |||||
Asset quality | |||||||
Allowance for loan and lease losses at December 31 | $ | 17,428 | $ | 24,179 | |||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31 (2) | 1.90 | % | 2.69 | % | |||
Nonperforming loans, leases and foreclosed properties at December 31 (2) | $ | 17,772 | $ | 23,555 | |||
Net charge-offs (3) | 7,897 | 14,908 | |||||
Net charge-offs as a percentage of average loans and leases outstanding (2, 3) | 0.87 | % | 1.67 | % | |||
Net charge-offs as a percentage of average loans and leases outstanding, excluding the purchased credit-impaired loan portfolio (2) | 0.90 | 1.73 | |||||
Net charge-offs and purchased credit-impaired write-offs as a percentage of average loans and leases outstanding (2) | 1.13 | 1.99 | |||||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs (3) | 2.21 | 1.62 | |||||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs, excluding the purchased credit-impaired loan portfolio | 1.89 | 1.25 | |||||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs and purchased credit-impaired write-offs | 1.70 | 1.36 | |||||
Balance sheet at year end | |||||||
Total loans and leases | $ | 928,233 | $ | 907,819 | |||
Total assets | 2,102,273 | 2,209,974 | |||||
Total deposits | 1,119,271 | 1,105,261 | |||||
Total common shareholders’ equity | 219,333 | 218,188 | |||||
Total shareholders’ equity | 232,685 | 236,956 | |||||
Capital ratios at year end (4) | |||||||
Tier 1 common capital | 11.19 | % | 11.06 | % | |||
Tier 1 capital | 12.44 | 12.89 | |||||
Total capital | 15.44 | 16.31 | |||||
Tier 1 leverage | 7.86 | 7.37 |
(1) | Fully taxable-equivalent (FTE) basis, return on average tangible shareholders’ equity and the efficiency ratio are non-GAAP financial measures. Other companies may define or calculate these measures differently. For more information, see Supplemental Financial Data on page 33, and for corresponding reconciliations to GAAP financial measures, see Statistical Table XV. |
(2) | Balances and ratios do not include loans accounted for under the fair value option. For additional exclusions from nonperforming loans, leases and foreclosed properties, see Consumer Portfolio Credit Risk Management – Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity on page 89 and corresponding Table 41, and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 96 and corresponding Table 50. |
(3) | Net charge-offs exclude $2.3 billion of write-offs in the purchased credit-impaired loan portfolio for 2013 compared to $2.8 billion for 2012. These write-offs decreased the purchased credit-impaired valuation allowance included as part of the allowance for loan and lease losses. For more information on purchased credit-impaired write-offs, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page 85. |
(4) | Presents capital ratios in accordance with the Basel 1 – 2013 Rules, which include the Market Risk Final Rule at December 31, 2013. Basel 1 did not include the Basel 1 – 2013 Rules at December 31, 2012. |
26 Bank of America 2013 |
Table 2 | Summary Income Statement | |||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Net interest income (FTE basis) (1) | $ | 43,124 | $ | 41,557 | ||||
Noninterest income | 46,677 | 42,678 | ||||||
Total revenue, net of interest expense (FTE basis) (1) | 89,801 | 84,235 | ||||||
Provision for credit losses | 3,556 | 8,169 | ||||||
Noninterest expense | 69,214 | 72,093 | ||||||
Income before income taxes | 17,031 | 3,973 | ||||||
Income tax expense (benefit) (FTE basis) (1) | 5,600 | (215 | ) | |||||
Net income | 11,431 | 4,188 | ||||||
Preferred stock dividends | 1,349 | 1,428 | ||||||
Net income applicable to common shareholders | $ | 10,082 | $ | 2,760 | ||||
Per common share information | ||||||||
Earnings | $ | 0.94 | $ | 0.26 | ||||
Diluted earnings | 0.90 | 0.25 |
(1) | FTE basis is a non-GAAP financial measure. For more information on this measure, see Supplemental Financial Data on page 33, and for a corresponding reconciliation to GAAP financial measures, see Statistical Table XV. |
Table 3 | Noninterest Income | |||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Card income | $ | 5,826 | $ | 6,121 | ||||
Service charges | 7,390 | 7,600 | ||||||
Investment and brokerage services | 12,282 | 11,393 | ||||||
Investment banking income | 6,126 | 5,299 | ||||||
Equity investment income | 2,901 | 2,070 | ||||||
Trading account profits | 7,056 | 5,870 | ||||||
Mortgage banking income | 3,874 | 4,750 | ||||||
Gains on sales of debt securities | 1,271 | 1,662 | ||||||
Other loss | (29 | ) | (2,034 | ) | ||||
Net impairment losses recognized in earnings on AFS debt securities | (20 | ) | (53 | ) | ||||
Total noninterest income | $ | 46,677 | $ | 42,678 |
| Card income decreased $295 million primarily driven by lower revenue as a result of our exit of consumer protection products. |
| Investment and brokerage services income increased $889 million primarily driven by the impact of long-term assets under management (AUM) inflows and higher market levels. |
| Investment banking income increased $827 million primarily due to strong equity issuance fees attributable to a significant increase in global equity capital markets volume and higher debt issuance fees, primarily within leveraged finance and investment-grade underwriting. |
| Equity investment income increased $831 million. The results for 2013 included $753 million of gains related to the sale of our remaining investment in China Construction Bank Corporation (CCB) and gains of $1.4 billion on the sales of a portion of an equity investment. The results for 2012 included $1.6 billion of gains related to sales of certain equity and strategic investments. |
| Trading account profits increased $1.2 billion. Net debit valuation adjustment (DVA) losses on derivatives were $508 million in 2013 compared to losses of $2.5 billion in 2012. Excluding net DVA, trading account profits decreased $783 million due to decreases in our fixed-income, currency and commodities (FICC) businesses driven by a challenging trading environment, partially offset by an increase in our equities businesses. |
| Mortgage banking income decreased $876 million primarily driven by lower servicing income and lower core production revenue, partially offset by lower representations and warranties provision. |
| Other loss decreased $2.0 billion due to lower negative fair value adjustments on our structured liabilities of $649 million compared to negative fair value adjustments of $5.1 billion in 2012. The prior year included gains of $1.6 billion related to debt repurchases and exchanges of trust preferred securities. |
Bank of America 2013 27 |
Table 4 | Noninterest Expense | |||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Personnel | $ | 34,719 | $ | 35,648 | ||||
Occupancy | 4,475 | 4,570 | ||||||
Equipment | 2,146 | 2,269 | ||||||
Marketing | 1,834 | 1,873 | ||||||
Professional fees | 2,884 | 3,574 | ||||||
Amortization of intangibles | 1,086 | 1,264 | ||||||
Data processing | 3,170 | 2,961 | ||||||
Telecommunications | 1,593 | 1,660 | ||||||
Other general operating | 17,307 | 18,274 | ||||||
Total noninterest expense | $ | 69,214 | $ | 72,093 |
Table 5 | Income Tax Expense | |||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Income before income taxes | $ | 16,172 | $ | 3,072 | ||||
Income tax expense (benefit) | 4,741 | (1,116 | ) | |||||
Effective tax rate | 29.3 | % | (36.3 | )% |
28 Bank of America 2013 |
Table 6 | Selected Balance Sheet Data | |||||||||||||||||||||
December 31 | Average Balance | |||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | % Change | 2013 | 2012 | % Change | ||||||||||||||||
Assets | ||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | $ | 190,328 | $ | 219,924 | (13 | )% | $ | 224,331 | $ | 236,042 | (5 | )% | ||||||||||
Trading account assets | 200,993 | 227,775 | (12 | ) | 217,865 | 203,799 | 7 | |||||||||||||||
Debt securities | 323,945 | 360,331 | (10 | ) | 337,953 | 353,577 | (4 | ) | ||||||||||||||
Loans and leases | 928,233 | 907,819 | 2 | 918,641 | 898,768 | 2 | ||||||||||||||||
Allowance for loan and lease losses | (17,428 | ) | (24,179 | ) | (28 | ) | (21,188 | ) | (29,843 | ) | (29 | ) | ||||||||||
All other assets | 476,202 | 518,304 | (8 | ) | 485,911 | 529,013 | (8 | ) | ||||||||||||||
Total assets | $ | 2,102,273 | $ | 2,209,974 | (5 | ) | $ | 2,163,513 | $ | 2,191,356 | (1 | ) | ||||||||||
Liabilities | ||||||||||||||||||||||
Deposits | $ | 1,119,271 | $ | 1,105,261 | 1 | $ | 1,089,735 | $ | 1,047,782 | 4 | ||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 198,106 | 293,259 | (32 | ) | 257,601 | 281,900 | (9 | ) | ||||||||||||||
Trading account liabilities | 83,469 | 73,587 | 13 | 88,323 | 78,554 | 12 | ||||||||||||||||
Short-term borrowings | 45,999 | 30,731 | 50 | 43,816 | 36,500 | 20 | ||||||||||||||||
Long-term debt | 249,674 | 275,585 | (9 | ) | 263,416 | 316,393 | (17 | ) | ||||||||||||||
All other liabilities | 173,069 | 194,595 | (11 | ) | 186,675 | 194,550 | (4 | ) | ||||||||||||||
Total liabilities | 1,869,588 | 1,973,018 | (5 | ) | 1,929,566 | 1,955,679 | (1 | ) | ||||||||||||||
Shareholders’ equity | 232,685 | 236,956 | (2 | ) | 233,947 | 235,677 | (1 | ) | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,102,273 | $ | 2,209,974 | (5 | ) | $ | 2,163,513 | $ | 2,191,356 | (1 | ) |
Bank of America 2013 29 |
30 Bank of America 2013 |
Table 7 | Five-year Summary of Selected Financial Data | |||||||||||||||||||
(In millions, except per share information) | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
Income statement | ||||||||||||||||||||
Net interest income | $ | 42,265 | $ | 40,656 | $ | 44,616 | $ | 51,523 | $ | 47,109 | ||||||||||
Noninterest income | 46,677 | 42,678 | 48,838 | 58,697 | 72,534 | |||||||||||||||
Total revenue, net of interest expense | 88,942 | 83,334 | 93,454 | 110,220 | 119,643 | |||||||||||||||
Provision for credit losses | 3,556 | 8,169 | 13,410 | 28,435 | 48,570 | |||||||||||||||
Goodwill impairment | — | — | 3,184 | 12,400 | — | |||||||||||||||
Merger and restructuring charges | — | — | 638 | 1,820 | 2,721 | |||||||||||||||
All other noninterest expense (1) | 69,214 | 72,093 | 76,452 | 68,888 | 63,992 | |||||||||||||||
Income (loss) before income taxes | 16,172 | 3,072 | (230 | ) | (1,323 | ) | 4,360 | |||||||||||||
Income tax expense (benefit) | 4,741 | (1,116 | ) | (1,676 | ) | 915 | (1,916 | ) | ||||||||||||
Net income (loss) | 11,431 | 4,188 | 1,446 | (2,238 | ) | 6,276 | ||||||||||||||
Net income (loss) applicable to common shareholders | 10,082 | 2,760 | 85 | (3,595 | ) | (2,204 | ) | |||||||||||||
Average common shares issued and outstanding | 10,731 | 10,746 | 10,143 | 9,790 | 7,729 | |||||||||||||||
Average diluted common shares issued and outstanding (2) | 11,491 | 10,841 | 10,255 | 9,790 | 7,729 | |||||||||||||||
Performance ratios | ||||||||||||||||||||
Return on average assets | 0.53 | % | 0.19 | % | 0.06 | % | n/m | 0.26 | % | |||||||||||
Return on average common shareholders’ equity | 4.62 | 1.27 | 0.04 | n/m | n/m | |||||||||||||||
Return on average tangible common shareholders’ equity (3) | 6.97 | 1.94 | 0.06 | n/m | n/m | |||||||||||||||
Return on average tangible shareholders’ equity (3) | 7.13 | 2.60 | 0.96 | n/m | 4.18 | |||||||||||||||
Total ending equity to total ending assets | 11.07 | 10.72 | 10.81 | 10.08 | % | 10.38 | ||||||||||||||
Total average equity to total average assets | 10.81 | 10.75 | 9.98 | 9.56 | 10.01 | |||||||||||||||
Dividend payout | 4.25 | 15.86 | n/m | n/m | n/m | |||||||||||||||
Per common share data | ||||||||||||||||||||
Earnings (loss) | $ | 0.94 | $ | 0.26 | $ | 0.01 | $ | (0.37 | ) | $ | (0.29 | ) | ||||||||
Diluted earnings (loss) (2) | 0.90 | 0.25 | 0.01 | (0.37 | ) | (0.29 | ) | |||||||||||||
Dividends paid | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | |||||||||||||||
Book value | 20.71 | 20.24 | 20.09 | 20.99 | 21.48 | |||||||||||||||
Tangible book value (3) | 13.79 | 13.36 | 12.95 | 12.98 | 11.94 | |||||||||||||||
Market price per share of common stock | ||||||||||||||||||||
Closing | $ | 15.57 | $ | 11.61 | $ | 5.56 | $ | 13.34 | $ | 15.06 | ||||||||||
High closing | 15.88 | 11.61 | 15.25 | 19.48 | 18.59 | |||||||||||||||
Low closing | 11.03 | 5.80 | 4.99 | 10.95 | 3.14 | |||||||||||||||
Market capitalization | $ | 164,914 | $ | 125,136 | $ | 58,580 | $ | 134,536 | $ | 130,273 |
(1) | Excludes merger and restructuring charges and goodwill impairment charges. |
(2) | Due to a net loss applicable to common shareholders for 2010 and 2009, the impact of antidilutive equity instruments was excluded from diluted earnings (loss) per share and average diluted common shares. |
(3) | Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. Other companies may define or calculate these measures differently. For more information on these ratios, see Supplemental Financial Data on page 33, and for corresponding reconciliations to GAAP financial measures, see Statistical Table XV on page 143. |
(4) | For more information on the impact of the purchased credit-impaired loan portfolio on asset quality, see Consumer Portfolio Credit Risk Management on page 77. |
(5) | Includes the allowance for loan and lease losses and the reserve for unfunded lending commitments. |
(6) | Balances and ratios do not include loans accounted for under the fair value option. For additional exclusions from nonperforming loans, leases and foreclosed properties, see Consumer Portfolio Credit Risk Management – Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity on page 89 and corresponding Table 41, and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 96 and corresponding Table 50. |
(7) | Primarily includes amounts allocated to the U.S. credit card and unsecured consumer lending portfolios in CBB, purchased credit-impaired loans and the non-U.S. credit card portfolio in All Other. |
(8) | Net charge-offs exclude $2.3 billion and $2.8 billion of write-offs in the purchased credit-impaired loan portfolio for 2013 and 2012. These write-offs decreased the purchased credit-impaired valuation allowance included as part of the allowance for loan and lease losses. For more information on purchased credit-impaired write-offs, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page 85. |
(9) | There were no write-offs of PCI loans in 2011, 2010, and 2009. |
(10) | Presents capital ratios in accordance with the Basel 1 – 2013 Rules, which include the Market Risk Final Rule at December 31, 2013. Basel 1 did not include the Basel 1 – 2013 Rules at December 31, 2012. |
Bank of America 2013 31 |
Table 7 | Five-year Summary of Selected Financial Data (continued) | |||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
Average balance sheet | ||||||||||||||||||||
Total loans and leases | $ | 918,641 | $ | 898,768 | $ | 938,096 | $ | 958,331 | $ | 948,805 | ||||||||||
Total assets | 2,163,513 | 2,191,356 | 2,296,322 | 2,439,606 | 2,443,068 | |||||||||||||||
Total deposits | 1,089,735 | 1,047,782 | 1,035,802 | 988,586 | 980,966 | |||||||||||||||
Long-term debt | 263,416 | 316,393 | 421,229 | 490,497 | 446,634 | |||||||||||||||
Common shareholders’ equity | 218,468 | 216,996 | 211,709 | 212,686 | 182,288 | |||||||||||||||
Total shareholders’ equity | 233,947 | 235,677 | 229,095 | 233,235 | 244,645 | |||||||||||||||
Asset quality (4) | ||||||||||||||||||||
Allowance for credit losses (5) | $ | 17,912 | $ | 24,692 | $ | 34,497 | $ | 43,073 | $ | 38,687 | ||||||||||
Nonperforming loans, leases and foreclosed properties (6) | 17,772 | 23,555 | 27,708 | 32,664 | 35,747 | |||||||||||||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (6) | 1.90 | % | 2.69 | % | 3.68 | % | 4.47 | % | 4.16 | % | ||||||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (6) | 102 | 107 | 135 | 136 | 111 | |||||||||||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the PCI loan portfolio (6) | 87 | 82 | 101 | 116 | 99 | |||||||||||||||
Amounts included in allowance that are excluded from nonperforming loans and leases (7) | $ | 7,680 | $ | 12,021 | $ | 17,490 | $ | 22,908 | $ | 17,690 | ||||||||||
Allowance as a percentage of total nonperforming loans and leases, excluding amounts included in the allowance that are excluded from nonperforming loans and leases (7) | 57 | % | 54 | % | 65 | % | 62 | % | 58 | % | ||||||||||
Net charge-offs (8) | $ | 7,897 | $ | 14,908 | $ | 20,833 | $ | 34,334 | $ | 33,688 | ||||||||||
Net charge-offs as a percentage of average loans and leases outstanding (6, 8) | 0.87 | % | 1.67 | % | 2.24 | % | 3.60 | % | 3.58 | % | ||||||||||
Net charge-offs as a percentage of average loans and leases outstanding, excluding the PCI loan portfolio (6) | 0.90 | 1.73 | 2.32 | 3.73 | 3.71 | |||||||||||||||
Net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding (6, 9) | 1.13 | 1.99 | 2.24 | 3.60 | 3.58 | |||||||||||||||
Nonperforming loans and leases as a percentage of total loans and leases outstanding (6) | 1.87 | 2.52 | 2.74 | 3.27 | 3.75 | |||||||||||||||
Nonperforming loans, leases and foreclosed properties as a percentage of total loans, leases and foreclosed properties (6) | 1.93 | 2.62 | 3.01 | 3.48 | 3.98 | |||||||||||||||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs (8) | 2.21 | 1.62 | 1.62 | 1.22 | 1.10 | |||||||||||||||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs, excluding the PCI loan portfolio | 1.89 | 1.25 | 1.22 | 1.04 | 1.00 | |||||||||||||||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs and PCI write-offs (9) | 1.70 | 1.36 | 1.62 | 1.22 | 1.10 | |||||||||||||||
Capital ratios at year end (10) | ||||||||||||||||||||
Risk-based capital: | ||||||||||||||||||||
Tier 1 common capital | 11.19 | % | 11.06 | % | 9.86 | % | 8.60 | % | 7.81 | % | ||||||||||
Tier 1 capital | 12.44 | 12.89 | 12.40 | 11.24 | 10.40 | |||||||||||||||
Total capital | 15.44 | 16.31 | 16.75 | 15.77 | 14.66 | |||||||||||||||
Tier 1 leverage | 7.86 | 7.37 | 7.53 | 7.21 | 6.88 | |||||||||||||||
Tangible equity (3) | 7.86 | 7.62 | 7.54 | 6.75 | 6.40 | |||||||||||||||
Tangible common equity (3) | 7.20 | 6.74 | 6.64 | 5.99 | 5.56 |
32 Bank of America 2013 |
| Return on average tangible common shareholders’ equity measures our earnings contribution as a percentage of adjusted common shareholders’ equity. The tangible common equity ratio represents adjusted ending common shareholders’ equity divided by total assets less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities. |
| ROTE measures our earnings contribution as a percentage of adjusted average total shareholders’ equity. The tangible equity ratio represents adjusted ending shareholders’ equity divided by total assets less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities. |
| Tangible book value per common share represents adjusted ending common shareholders’ equity divided by ending common shares outstanding. |
Table 8 | Five-year Supplemental Financial Data | |||||||||||||||||||
(Dollars in millions, except per share information) | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
Fully taxable-equivalent basis data | ||||||||||||||||||||
Net interest income (1) | $ | 43,124 | $ | 41,557 | $ | 45,588 | $ | 52,693 | $ | 48,410 | ||||||||||
Total revenue, net of interest expense | 89,801 | 84,235 | 94,426 | 111,390 | 120,944 | |||||||||||||||
Net interest yield (1) | 2.47 | % | 2.35 | % | 2.48 | % | 2.78 | % | 2.65 | % | ||||||||||
Efficiency ratio | 77.07 | 85.59 | 85.01 | 74.61 | 55.16 | |||||||||||||||
Performance ratios, excluding goodwill impairment charges (2) | ||||||||||||||||||||
Per common share information | ||||||||||||||||||||
Earnings | $ | 0.32 | $ | 0.87 | ||||||||||||||||
Diluted earnings | 0.32 | 0.86 | ||||||||||||||||||
Efficiency ratio (FTE basis) | 81.64 | % | 63.48 | % | ||||||||||||||||
Return on average assets | 0.20 | 0.42 | ||||||||||||||||||
Return on average common shareholders’ equity | 1.54 | 4.14 | ||||||||||||||||||
Return on average tangible common shareholders’ equity | 2.46 | 7.03 | ||||||||||||||||||
Return on average tangible shareholders’ equity | 3.08 | 7.11 |
(1) | Net interest income and net interest yield include fees earned on overnight deposits placed with the Federal Reserve and fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks. |
(2) | Performance ratios are calculated excluding the impact of goodwill impairment charges of $3.2 billion and $12.4 billion recorded in 2011 and 2010. |
Bank of America 2013 33 |
Table 9 | Net Interest Income Excluding Trading-related Net Interest Income | |||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Net interest income (FTE basis) | ||||||||
As reported (1) | $ | 43,124 | $ | 41,557 | ||||
Impact of trading-related net interest income | (3,868 | ) | (3,308 | ) | ||||
Net interest income excluding trading-related net interest income (2) | $ | 39,256 | $ | 38,249 | ||||
Average earning assets | ||||||||
As reported | $ | 1,746,974 | $ | 1,769,969 | ||||
Impact of trading-related earning assets | (469,048 | ) | (449,660 | ) | ||||
Average earning assets excluding trading-related earning assets (2) | $ | 1,277,926 | $ | 1,320,309 | ||||
Net interest yield contribution (FTE basis) | ||||||||
As reported (1) | 2.47 | % | 2.35 | % | ||||
Impact of trading-related activities | 0.60 | 0.55 | ||||||
Net interest yield on earning assets excluding trading-related activities (2) | 3.07 | % | 2.90 | % |
(1) | Net interest income and net interest yield include fees earned on overnight deposits placed with the Federal Reserve and fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks. |
(2) | Represents a non-GAAP financial measure. |
34 Bank of America 2013 |
Bank of America 2013 35 |
Table 10 | Business Segment Results | |||||||||||||||||||||||||||||||
Total Revenue (1) | Provision for Credit Losses | Noninterest Expense | Net Income (Loss) | |||||||||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Consumer & Business Banking | $ | 29,867 | $ | 29,790 | $ | 3,107 | $ | 4,148 | $ | 16,357 | $ | 16,995 | $ | 6,588 | $ | 5,546 | ||||||||||||||||
Consumer Real Estate Services | 7,716 | 8,751 | (156 | ) | 1,442 | 16,013 | 17,190 | (5,155 | ) | (6,439 | ) | |||||||||||||||||||||
Global Wealth & Investment Management | 17,790 | 16,518 | 56 | 266 | 13,038 | 12,721 | 2,974 | 2,245 | ||||||||||||||||||||||||
Global Banking | 16,481 | 15,674 | 1,075 | (342 | ) | 7,552 | 7,619 | 4,974 | 5,344 | |||||||||||||||||||||||
Global Markets | 16,058 | 14,284 | 140 | 34 | 12,013 | 11,295 | 1,563 | 1,229 | ||||||||||||||||||||||||
All Other | 1,889 | (782 | ) | (666 | ) | 2,621 | 4,241 | 6,273 | 487 | (3,737 | ) | |||||||||||||||||||||
Total FTE basis | 89,801 | 84,235 | 3,556 | 8,169 | 69,214 | 72,093 | 11,431 | 4,188 | ||||||||||||||||||||||||
FTE adjustment | (859 | ) | (901 | ) | — | — | — | — | — | — | ||||||||||||||||||||||
Total Consolidated | $ | 88,942 | $ | 83,334 | $ | 3,556 | $ | 8,169 | $ | 69,214 | $ | 72,093 | $ | 11,431 | $ | 4,188 |
(1) | Total revenue is net of interest expense and is on a FTE basis which for consolidated revenue is a non-GAAP financial measure. For more information on this measure, see Supplemental Financial Data on page 33, and for a corresponding reconciliation to a GAAP financial measure, see Statistical Table XV. |
36 Bank of America 2013 |
Deposits | Consumer Lending | Total Consumer & Business Banking | ||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | % Change | |||||||||||||||||
Net interest income (FTE basis) | $ | 9,808 | $ | 9,046 | $ | 10,243 | $ | 10,807 | $ | 20,051 | $ | 19,853 | 1 | % | ||||||||||
Noninterest income: | ||||||||||||||||||||||||
Card income | 60 | 62 | 4,744 | 5,253 | 4,804 | 5,315 | (10 | ) | ||||||||||||||||
Service charges | 4,208 | 4,277 | — | — | 4,208 | 4,277 | (2 | ) | ||||||||||||||||
All other income (loss) | 509 | 397 | 295 | (52 | ) | 804 | 345 | 133 | ||||||||||||||||
Total noninterest income | 4,777 | 4,736 | 5,039 | 5,201 | 9,816 | 9,937 | (1 | ) | ||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 14,585 | 13,782 | 15,282 | 16,008 | 29,867 | 29,790 | — | |||||||||||||||||
Provision for credit losses | 299 | 488 | 2,808 | 3,660 | 3,107 | 4,148 | (25 | ) | ||||||||||||||||
Noninterest expense | 10,927 | 11,310 | 5,430 | 5,685 | 16,357 | 16,995 | (4 | ) | ||||||||||||||||
Income before income taxes | 3,359 | 1,984 | 7,044 | 6,663 | 10,403 | 8,647 | 20 | |||||||||||||||||
Income tax expense (FTE basis) | 1,232 | 723 | 2,583 | 2,378 | 3,815 | 3,101 | 23 | |||||||||||||||||
Net income | $ | 2,127 | $ | 1,261 | $ | 4,461 | $ | 4,285 | $ | 6,588 | $ | 5,546 | 19 | |||||||||||
Net interest yield (FTE basis) | 1.88 | % | 1.90 | % | 7.18 | % | 7.18 | % | 3.72 | % | 4.04 | % | ||||||||||||
Return on average allocated capital (1) | 13.82 | — | 30.60 | — | 21.98 | — | ||||||||||||||||||
Return on average economic capital (1) | — | 9.72 | — | 38.83 | — | 23.12 | ||||||||||||||||||
Efficiency ratio (FTE basis) | 74.92 | 82.07 | 35.53 | 35.51 | 54.76 | 57.05 | ||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 22,437 | $ | 23,369 | $ | 142,133 | $ | 149,667 | $ | 164,570 | $ | 173,036 | (5 | ) | ||||||||||
Total earning assets (2) | 522,870 | 477,142 | 142,725 | 150,515 | 539,213 | 491,767 | 10 | |||||||||||||||||
Total assets (2) | 555,653 | 510,384 | 151,443 | 158,333 | 580,714 | 532,827 | 9 | |||||||||||||||||
Total deposits | 518,470 | 474,822 | n/m | n/m | 518,980 | 475,180 | 9 | |||||||||||||||||
Allocated capital (1) | 15,400 | — | 14,600 | — | 30,000 | — | n/m | |||||||||||||||||
Economic capital (1) | — | 12,985 | — | 11,066 | — | 24,051 | n/m | |||||||||||||||||
Year end | ||||||||||||||||||||||||
Total loans and leases | $ | 22,574 | $ | 22,907 | $ | 142,516 | $ | 146,359 | $ | 165,090 | $ | 169,266 | (2 | ) | ||||||||||
Total earning assets (2) | 534,946 | 498,147 | 143,917 | 146,809 | 550,610 | 513,109 | 7 | |||||||||||||||||
Total assets (2) | 567,837 | 531,354 | 153,394 | 155,408 | 592,978 | 554,915 | 7 | |||||||||||||||||
Total deposits | 530,947 | 495,711 | n/m | n/m | 531,707 | 496,159 | 7 |
(1) | Effective January 1, 2013, we revised, on a prospective basis, the methodology for allocating capital to the business segments. In connection with the change in methodology, we updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For additional information, see Business Segment Operations on page 35. |
(2) | For presentation purposes, in segments and businesses where the total of liabilities and equity exceeds assets, we allocate assets from All Other to match the segments’ and businesses’ liabilities and allocated shareholders’ equity. As a result, total earning assets and total assets of the businesses may not equal total CBB. |
Bank of America 2013 37 |
Key Statistics | |||||||
2013 | 2012 | ||||||
Total deposit spreads (excludes noninterest costs) | 1.52 | % | 1.81 | % | |||
Year end | |||||||
Client brokerage assets (in millions) | $ | 96,048 | $ | 75,946 | |||
Online banking active accounts (units in thousands) | 29,950 | 29,638 | |||||
Mobile banking active accounts (units in thousands) | 14,395 | 12,013 | |||||
Banking centers | 5,151 | 5,478 | |||||
ATMs | 16,259 | 16,347 |
38 Bank of America 2013 |
Key Statistics | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Total Corporation U.S. credit card (1) | |||||||
Gross interest yield | 9.73 | % | 10.02 | % | |||
Risk-adjusted margin | 8.68 | 7.54 | |||||
New accounts (in thousands) | 3,911 | 3,258 | |||||
Purchase volumes | $ | 205,914 | $ | 193,500 | |||
Debit card purchase volumes | $ | 267,087 | $ | 258,363 |
(1) | In addition to the U.S. credit card portfolio in CBB, the remaining U.S. credit card portfolio is in GWIM. |
Bank of America 2013 39 |
Home Loans | Legacy Assets & Servicing | Total Consumer Real Estate Services | ||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | % Change | |||||||||||||||||
Net interest income (FTE basis) | $ | 1,349 | $ | 1,361 | $ | 1,541 | $ | 1,569 | $ | 2,890 | $ | 2,930 | (1 | )% | ||||||||||
Noninterest income: | ||||||||||||||||||||||||
Mortgage banking income | 1,916 | 3,284 | 2,669 | 2,269 | 4,585 | 5,553 | (17 | ) | ||||||||||||||||
All other income (loss) | (6 | ) | 1 | 247 | 267 | 241 | 268 | (10 | ) | |||||||||||||||
Total noninterest income | 1,910 | 3,285 | 2,916 | 2,536 | 4,826 | 5,821 | (17 | ) | ||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 3,259 | 4,646 | 4,457 | 4,105 | 7,716 | 8,751 | (12 | ) | ||||||||||||||||
Provision for credit losses | 127 | 72 | (283 | ) | 1,370 | (156 | ) | 1,442 | n/m | |||||||||||||||
Noninterest expense | 3,318 | 3,195 | 12,695 | 13,995 | 16,013 | 17,190 | (7 | ) | ||||||||||||||||
Income (loss) before income taxes | (186 | ) | 1,379 | (7,955 | ) | (11,260 | ) | (8,141 | ) | (9,881 | ) | (18 | ) | |||||||||||
Income tax expense (benefit) (FTE basis) | (68 | ) | 502 | (2,918 | ) | (3,944 | ) | (2,986 | ) | (3,442 | ) | (13 | ) | |||||||||||
Net income (loss) | $ | (118 | ) | $ | 877 | $ | (5,037 | ) | $ | (7,316 | ) | $ | (5,155 | ) | $ | (6,439 | ) | (20 | ) | |||||
Net interest yield (FTE basis) | 2.54 | % | 2.41 | % | 3.19 | % | 2.45 | % | 2.85 | % | 2.43 | % | ||||||||||||
Efficiency ratio (FTE basis) | n/m | 68.77 | n/m | n/m | n/m | n/m | ||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 47,675 | $ | 50,023 | $ | 42,603 | $ | 53,501 | $ | 90,278 | $ | 103,524 | (13 | ) | ||||||||||
Total earning assets | 53,148 | 56,581 | 48,272 | 64,055 | 101,420 | 120,636 | (16 | ) | ||||||||||||||||
Total assets | 53,429 | 57,552 | 67,131 | 87,817 | 120,560 | 145,369 | (17 | ) | ||||||||||||||||
Allocated capital (1) | 6,000 | — | 18,000 | — | 24,000 | — | n/m | |||||||||||||||||
Economic capital (1) | — | 3,734 | — | 9,942 | — | 13,676 | n/m | |||||||||||||||||
Year end | ||||||||||||||||||||||||
Total loans and leases | $ | 51,021 | $ | 47,742 | $ | 38,732 | $ | 46,918 | $ | 89,753 | $ | 94,660 | (5 | ) | ||||||||||
Total earning assets | 54,071 | 54,394 | 43,092 | 52,580 | 97,163 | 106,974 | (9 | ) | ||||||||||||||||
Total assets | 53,927 | 55,465 | 59,459 | 75,594 | 113,386 | 131,059 | (13 | ) |
(1) | Effective January 1, 2013, we revised, on a prospective basis, the methodology for allocating capital to the business segments. In connection with the change in methodology, we updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For additional information, see Business Segment Operations on page 35. |
40 Bank of America 2013 |
Bank of America 2013 41 |
Legacy Residential Mortgage Serviced Portfolio, a subset of the Residential Mortgage Serviced Portfolio (1, 2) | ||||||||||||
December 31 | ||||||||||||
(Dollars in billions) | 2013 | 2012 | 2011 | |||||||||
Unpaid principal balance | ||||||||||||
Residential mortgage loans | ||||||||||||
Total | $ | 203 | $ | 467 | $ | 659 | ||||||
60 days or more past due | 49 | 137 | 235 | |||||||||
Number of loans serviced (in thousands) | ||||||||||||
Residential mortgage loans | ||||||||||||
Total | 1,083 | 2,542 | 3,440 | |||||||||
60 days or more past due | 258 | 649 | 1,061 |
(1) | Excludes loans for which servicing transferred to third parties as of December 31, 2013, with an effective MSR sale date of January 2, 2014, totaling $57 million of unpaid principal balance. |
(2) | Excludes $39 billion, $52 billion and $84 billion of home equity loans and HELOCs at December 31, 2013, 2012 and 2011, respectively. |
Non-Legacy Residential Mortgage Serviced Portfolio, a subset of the Residential Mortgage Serviced Portfolio (1, 2) | ||||||||||||
December 31 | ||||||||||||
(Dollars in billions) | 2013 | 2012 | 2011 | |||||||||
Unpaid principal balance | ||||||||||||
Residential mortgage loans | ||||||||||||
Total | $ | 516 | $ | 755 | $ | 953 | ||||||
60 days or more past due | 12 | 22 | 17 | |||||||||
Number of loans serviced (in thousands) | ||||||||||||
Residential mortgage loans | ||||||||||||
Total | 3,267 | 4,764 | 5,731 | |||||||||
60 days or more past due | 67 | 124 | 95 |
(1) | Excludes loans for which servicing transferred to third parties as of December 31, 2013, with an effective MSR sale date of January 2, 2014, totaling $163 million of unpaid principal balance. |
(2) | Excludes $52 billion, $58 billion and $67 billion of home equity loans and HELOCs at December 31, 2013, 2012 and 2011, respectively. |
Mortgage Banking Income | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Production income: | |||||||
Core production revenue | $ | 2,543 | $ | 3,760 | |||
Representations and warranties provision | (840 | ) | (3,939 | ) | |||
Total production income (loss) | 1,703 | (179 | ) | ||||
Servicing income: | |||||||
Servicing fees | 3,030 | 4,729 | |||||
Amortization of expected cash flows (1) | (1,043 | ) | (1,484 | ) | |||
Fair value changes of MSRs, net of risk management activities used to hedge certain market risks (2) | 867 | 1,852 | |||||
Other servicing-related revenue | 28 | 635 | |||||
Total net servicing income | 2,882 | 5,732 | |||||
Total CRES mortgage banking income | 4,585 | 5,553 | |||||
Eliminations (3) | (711 | ) | (803 | ) | |||
Total consolidated mortgage banking income | $ | 3,874 | $ | 4,750 |
(1) | Represents the net change in fair value of the MSR asset due to the recognition of modeled cash flows. |
(2) | Includes gains (losses) on sales of MSRs. |
(3) | Includes the effect of transfers of mortgage loans from CRES to the ALM portfolio in All Other. |
42 Bank of America 2013 |
Key Statistics | ||||||||
(Dollars in millions, except as noted) | 2013 | 2012 | ||||||
Loan production | ||||||||
Total Corporation (1): | ||||||||
First mortgage | $ | 83,421 | $ | 75,074 | ||||
Home equity | 6,355 | 3,585 | ||||||
CRES: | ||||||||
First mortgage | $ | 66,914 | $ | 55,518 | ||||
Home equity | 5,498 | 2,832 | ||||||
Year end | ||||||||
Mortgage serviced portfolio (in billions) (2, 3) | $ | 810 | $ | 1,332 | ||||
Mortgage loans serviced for investors (in billions) | 550 | 1,045 | ||||||
Mortgage servicing rights: | ||||||||
Balance | 5,042 | 5,716 | ||||||
Capitalized mortgage servicing rights (% of loans serviced for investors) | 92 | bps | 55 | bps |
(1) | In addition to loan production in CRES, the remaining first mortgage and home equity loan production is primarily in GWIM. |
(2) | Servicing of residential mortgage loans, HELOCs and home equity loans. |
(3) | Excludes loans for which servicing transferred to third parties as of December 31, 2013, with an effective MSR sale date of January 2, 2014, totaling $220 million. |
Bank of America 2013 43 |
(Dollars in millions) | 2013 | 2012 | % Change | ||||||||
Net interest income (FTE basis) | $ | 6,064 | $ | 5,827 | 4 | % | |||||
Noninterest income: | |||||||||||
Investment and brokerage services | 9,709 | 8,849 | 10 | ||||||||
All other income | 2,017 | 1,842 | 10 | ||||||||
Total noninterest income | 11,726 | 10,691 | 10 | ||||||||
Total revenue, net of interest expense (FTE basis) | 17,790 | 16,518 | 8 | ||||||||
Provision for credit losses | 56 | 266 | (79 | ) | |||||||
Noninterest expense | 13,038 | 12,721 | 2 | ||||||||
Income before income taxes | 4,696 | 3,531 | 33 | ||||||||
Income tax expense (FTE basis) | 1,722 | 1,286 | 34 | ||||||||
Net income | $ | 2,974 | $ | 2,245 | 32 | ||||||
Net interest yield (FTE basis) | 2.41 | % | 2.35 | % | |||||||
Return on average allocated capital (1) | 29.90 | — | |||||||||
Return on average economic capital (1) | — | 30.80 | |||||||||
Efficiency ratio (FTE basis) | 73.29 | 77.02 | |||||||||
Balance Sheet | |||||||||||
Average | |||||||||||
Total loans and leases | $ | 111,023 | $ | 100,456 | 11 | ||||||
Total earning assets | 251,394 | 248,475 | 1 | ||||||||
Total assets | 270,788 | 268,475 | 1 | ||||||||
Total deposits | 242,161 | 242,384 | — | ||||||||
Allocated capital (1) | 10,000 | — | n/m | ||||||||
Economic capital (1) | — | 7,359 | n/m | ||||||||
Year end | |||||||||||
Total loans and leases | $ | 115,846 | $ | 105,928 | 9 | ||||||
Total earning assets | 254,031 | 277,121 | (8 | ) | |||||||
Total assets | 274,112 | 297,326 | (8 | ) | |||||||
Total deposits | 244,901 | 266,188 | (8 | ) |
(1) | Effective January 1, 2013, we revised, on a prospective basis, the methodology for allocating capital to the business segments. In connection with the change in methodology, we updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For additional information, see Business Segment Operations on page 35. |
44 Bank of America 2013 |
Net Migration Summary | |||||||
December 31 | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Total deposits, net – GWIM from / (to) CBB | $ | (20,974 | ) | $ | 1,170 | ||
Total loans, net – GWIM from / (to) CBB, CRES and the ALM portfolio | (1,356 | ) | (335 | ) |
Client Balances by Type | |||||||
December 31 | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Assets under management | $ | 821,449 | $ | 698,095 | |||
Brokerage assets | 1,045,122 | 960,351 | |||||
Assets in custody | 136,190 | 117,686 | |||||
Deposits | 244,901 | 266,188 | |||||
Loans and leases (1) | 118,776 | 109,305 | |||||
Total client balances | $ | 2,366,438 | $ | 2,151,625 |
(1) | Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet. |
Bank of America 2013 45 |
(Dollars in millions) | 2013 | 2012 | % Change | ||||||||
Net interest income (FTE basis) | $ | 8,914 | $ | 8,135 | 10 | % | |||||
Noninterest income: | |||||||||||
Service charges | 2,787 | 2,867 | (3 | ) | |||||||
Investment banking fees | 3,235 | 2,793 | 16 | ||||||||
All other income | 1,545 | 1,879 | (18 | ) | |||||||
Total noninterest income | 7,567 | 7,539 | — | ||||||||
Total revenue, net of interest expense (FTE basis) | 16,481 | 15,674 | 5 | ||||||||
Provision for credit losses | 1,075 | (342 | ) | n/m | |||||||
Noninterest expense | 7,552 | 7,619 | (1 | ) | |||||||
Income before income taxes | 7,854 | 8,397 | (6 | ) | |||||||
Income tax expense (FTE basis) | 2,880 | 3,053 | (6 | ) | |||||||
Net income | $ | 4,974 | $ | 5,344 | (7 | ) | |||||
Net interest yield (FTE basis) | 2.96 | % | 2.90 | % | |||||||
Return on average allocated capital (1) | 21.64 | — | |||||||||
Return on average economic capital (1) | — | 27.69 | |||||||||
Efficiency ratio (FTE basis) | 45.82 | 48.61 | |||||||||
Balance Sheet | |||||||||||
Average | |||||||||||
Total loans and leases | $ | 257,245 | $ | 224,336 | 15 | ||||||
Total earning assets | 301,204 | 280,605 | 7 | ||||||||
Total assets | 343,464 | 322,701 | 6 | ||||||||
Total deposits | 237,457 | 223,940 | 6 | ||||||||
Allocated equity (1) | 23,000 | — | n/m | ||||||||
Economic capital (1) | — | 19,312 | n/m | ||||||||
Year end | |||||||||||
Total loans and leases | $ | 269,469 | $ | 242,340 | 11 | ||||||
Total earning assets | 337,154 | 288,072 | 17 | ||||||||
Total assets | 379,207 | 331,611 | 14 | ||||||||
Total deposits | 265,718 | 243,306 | 9 |
(1) | Effective January 1, 2013, we revised, on a prospective basis, the methodology for allocating capital to the business segments. In connection with the change in methodology, we updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For additional information, see Business Segment Operations on page 35. |
46 Bank of America 2013 |
Global Corporate and Global Commercial Banking | ||||||||||||||||||||||||
Global Corporate Banking | Global Commercial Banking | Total | ||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Business Lending | $ | 3,407 | $ | 3,201 | $ | 3,967 | $ | 3,622 | $ | 7,374 | $ | 6,823 | ||||||||||||
Treasury Services | 2,815 | 2,633 | 2,939 | 2,988 | 5,754 | 5,621 | ||||||||||||||||||
Total revenue, net of interest expense | $ | 6,222 | $ | 5,834 | $ | 6,906 | $ | 6,610 | $ | 13,128 | $ | 12,444 | ||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 126,669 | $ | 110,130 | $ | 130,563 | $ | 113,640 | $ | 257,232 | $ | 223,770 | ||||||||||||
Total deposits | 128,198 | 114,200 | 109,225 | 109,704 | 237,423 | 223,904 | ||||||||||||||||||
Year end | ||||||||||||||||||||||||
Total loans and leases | $ | 130,092 | $ | 116,239 | $ | 139,374 | $ | 126,093 | $ | 269,466 | $ | 242,332 | ||||||||||||
Total deposits | 144,312 | 131,184 | 121,407 | 112,083 | 265,719 | 243,267 |
Investment Banking Fees | |||||||||||||||
Global Banking | Total Corporation | ||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Products | |||||||||||||||
Advisory | $ | 1,022 | $ | 995 | $ | 1,131 | $ | 1,066 | |||||||
Debt issuance | 1,620 | 1,390 | 3,805 | 3,362 | |||||||||||
Equity issuance | 593 | 408 | 1,469 | 1,026 | |||||||||||
Gross investment banking fees | 3,235 | 2,793 | 6,405 | 5,454 | |||||||||||
Self-led | (92 | ) | (43 | ) | (279 | ) | (155 | ) | |||||||
Total investment banking fees | $ | 3,143 | $ | 2,750 | $ | 6,126 | $ | 5,299 |
Bank of America 2013 47 |
(Dollars in millions) | 2013 | 2012 | % Change | ||||||||
Net interest income (FTE basis) | $ | 4,239 | $ | 3,672 | 15 | % | |||||
Noninterest income: | |||||||||||
Investment and brokerage services | 2,046 | 1,820 | 12 | ||||||||
Investment banking fees | 2,722 | 2,214 | 23 | ||||||||
Trading account profits | 6,734 | 5,706 | 18 | ||||||||
All other income | 317 | 872 | (64 | ) | |||||||
Total noninterest income | 11,819 | 10,612 | 11 | ||||||||
Total revenue, net of interest expense (FTE basis) | 16,058 | 14,284 | 12 | ||||||||
Provision for credit losses | 140 | 34 | n/m | ||||||||
Noninterest expense | 12,013 | 11,295 | 6 | ||||||||
Income before income taxes | 3,905 | 2,955 | 32 | ||||||||
Income tax expense (FTE basis) | 2,342 | 1,726 | 36 | ||||||||
Net income | $ | 1,563 | $ | 1,229 | 27 | ||||||
Return on average allocated capital (1) | 5.24 | % | — | ||||||||
Return on average economic capital (1) | — | 8.95 | % | ||||||||
Efficiency ratio (FTE basis) | 74.81 | 79.08 | |||||||||
Balance Sheet | |||||||||||
Average | |||||||||||
Total trading-related assets (2) | $ | 468,934 | $ | 466,045 | 1 | ||||||
Total earning assets (2) | 481,482 | 461,487 | 4 | ||||||||
Total assets | 632,804 | 606,249 | 4 | ||||||||
Allocated capital (1) | 30,000 | — | n/m | ||||||||
Economic capital (1) | — | 13,824 | n/m | ||||||||
Year end | |||||||||||
Total trading-related assets (2) | $ | 411,080 | $ | 465,836 | (12 | ) | |||||
Total earning assets (2) | 432,821 | 486,470 | (11 | ) | |||||||
Total assets | 575,709 | 632,263 | (9 | ) |
(1) | Effective January 1, 2013, we revised, on a prospective basis, the methodology for allocating capital to the business segments. In connection with the change in methodology, we updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For additional information, see Business Segment Operations on page 35. |
(2) | Trading-related assets include derivative assets, which are considered non-earning assets. |
48 Bank of America 2013 |
Sales and Trading Revenue (1, 2) | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Sales and trading revenue | |||||||
Fixed income, currencies and commodities | $ | 8,882 | $ | 8,812 | |||
Equities | 4,200 | 3,014 | |||||
Total sales and trading revenue | $ | 13,082 | $ | 11,826 | |||
Sales and trading revenue, excluding net DVA (3) | |||||||
Fixed income, currencies and commodities | $ | 9,373 | $ | 11,007 | |||
Equities | 4,217 | 3,267 | |||||
Total sales and trading revenue, excluding net DVA | $ | 13,590 | $ | 14,274 |
(1) | Includes FTE adjustments of $179 million and $220 million for 2013 and 2012. For more information on sales and trading revenue, see Note 2 – Derivatives to the Consolidated Financial Statements. |
(2) | Includes Global Banking sales and trading revenue of $385 million and $522 million for 2013 and 2012. |
(3) | For this presentation, sales and trading revenue excludes the impact of credit spreads on DVA, which represents a non-GAAP financial measure. Net DVA losses of $491 million and $2.2 billion were included in FICC revenue, and net DVA losses of $17 million and $253 million were included in equities revenue in 2013 and 2012. |
Bank of America 2013 49 |
(Dollars in millions) | 2013 | 2012 | % Change | ||||||||
Net interest income (FTE basis) | $ | 966 | $ | 1,140 | (15 | )% | |||||
Noninterest income: | |||||||||||
Card income | 328 | 360 | (9 | ) | |||||||
Equity investment income | 2,610 | 1,135 | 130 | ||||||||
Gains on sales of debt securities | 1,230 | 1,510 | (19 | ) | |||||||
All other loss | (3,245 | ) | (4,927 | ) | (34 | ) | |||||
Total noninterest income (loss) | 923 | (1,922 | ) | n/m | |||||||
Total revenue, net of interest expense (FTE basis) | 1,889 | (782 | ) | n/m | |||||||
Provision for credit losses | (666 | ) | 2,621 | n/m | |||||||
Noninterest expense | 4,241 | 6,273 | (32 | ) | |||||||
Loss before income taxes | (1,686 | ) | (9,676 | ) | (83 | ) | |||||
Income tax benefit (FTE basis) | (2,173 | ) | (5,939 | ) | (63 | ) | |||||
Net income (loss) | $ | 487 | $ | (3,737 | ) | n/m | |||||
Balance Sheet | |||||||||||
Average | |||||||||||
Loans and leases: | |||||||||||
Residential mortgage | $ | 208,535 | $ | 223,795 | (7 | ) | |||||
Non-U.S. credit card | 10,861 | 13,549 | (20 | ) | |||||||
Other | 16,058 | 21,897 | (27 | ) | |||||||
Total loans and leases | 235,454 | 259,241 | (9 | ) | |||||||
Total assets (1) | 215,183 | 315,735 | (32 | ) | |||||||
Total deposits | 34,617 | 43,087 | (20 | ) | |||||||
Year end | |||||||||||
Loans and leases: | |||||||||||
Residential mortgage | $ | 197,061 | $ | 211,476 | (7 | ) | |||||
Non-U.S. credit card | 11,541 | 11,697 | (1 | ) | |||||||
Other | 12,092 | 18,808 | (36 | ) | |||||||
Total loans and leases | 220,694 | 241,981 | (9 | ) | |||||||
Total assets (1) | 166,881 | 262,800 | (36 | ) | |||||||
Total deposits | 27,702 | 36,061 | (23 | ) |
(1) | For presentation purposes, in segments where the total of liabilities and equity exceeds assets, which are generally deposit-taking segments, we allocate assets from All Other to those segments to match liabilities (i.e., deposits) and allocated shareholders’ equity. Such allocated assets were $539.5 billion and $504.2 billion for 2013 and 2012, and $570.3 billion and $537.6 billion at December 31, 2013 and 2012. |
50 Bank of America 2013 |
Equity Investments | |||||||
December 31 | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Global Principal Investments | $ | 1,604 | $ | 3,470 | |||
Strategic and other investments | 807 | 2,038 | |||||
Total equity investments included in All Other | $ | 2,411 | $ | 5,508 |
Equity Investment Income | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Global Principal Investments | $ | 378 | $ | 589 | |||
Strategic and other investments | 2,232 | 546 | |||||
Total equity investment income included in All Other | 2,610 | 1,135 | |||||
Total equity investment income included in the business segments | 291 | 935 | |||||
Total consolidated equity investment income | $ | 2,901 | $ | 2,070 |
Bank of America 2013 51 |
Table 11 | Contractual Obligations | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
(Dollars in millions) | Due in One Year or Less | Due After One Year Through Three Years | Due After Three Years Through Five Years | Due After Five Years | Total | |||||||||||||||
Long-term debt | $ | 46,076 | $ | 63,241 | $ | 62,830 | $ | 77,527 | $ | 249,674 | ||||||||||
Operating lease obligations | 2,841 | 4,531 | 3,003 | 5,672 | 16,047 | |||||||||||||||
Purchase obligations | 6,205 | 6,859 | 3,873 | 3,838 | 20,775 | |||||||||||||||
Time deposits | 98,201 | 8,784 | 1,972 | 2,278 | 111,235 | |||||||||||||||
Other long-term liabilities | 1,289 | 915 | 720 | 1,132 | 4,056 | |||||||||||||||
Estimated interest expense on long-term debt and time deposits (1) | 5,189 | 10,045 | 9,081 | 13,247 | 37,562 | |||||||||||||||
Total contractual obligations | $ | 159,801 | $ | 94,375 | $ | 81,479 | $ | 103,694 | $ | 439,349 |
(1) | Represents estimated, forecasted net interest expense on long-term debt and time deposits. Forecasts are based on the contractual maturity dates of each liability, and are net of derivative hedges. |
52 Bank of America 2013 |
Table 12 | Unresolved Repurchase Claims by Counterparty (1, 2) | |||||||
December 31 | ||||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Private-label securitization trustees, whole-loan investors, including third-party securitization sponsors and other (3) | $ | 17,953 | $ | 12,222 | ||||
Monolines | 1,532 | 2,442 | ||||||
GSEs | 170 | 13,437 | ||||||
Total unresolved repurchase claims (3) | $ | 19,655 | $ | 28,101 |
(1) | The total notional amount of unresolved repurchase claims does not include any repurchase claims related to the trusts covered by the BNY Mellon Settlement. |
(2) | At December 31, 2013 and 2012, unresolved repurchase claims did not include repurchase demands of $1.2 billion and $1.6 billion where the Corporation believes the claimants have not satisfied the contractual thresholds. |
(3) | Includes $13.8 billion and $11.7 billion of claims based on individual file reviews and $4.1 billion and $519 million of claims submitted without individual file reviews at December 31, 2013 and 2012. |
Bank of America 2013 53 |
54 Bank of America 2013 |
Table 13 | Overview of Non-Agency Securitization and Whole-loan Balances | |||||||||||||||||||||||||||||||||||
Principal Balance | Defaulted or Severely Delinquent | |||||||||||||||||||||||||||||||||||
(Dollars in billions) By Entity | Original Principal Balance | Outstanding Principal Balance December 31, 2013 | Outstanding Principal Balance 180 Days or More Past Due | Defaulted Principal Balance | Defaulted or Severely Delinquent | Borrower Made Less than 13 Payments | Borrower Made 13 to 24 Payments | Borrower Made 25 to 36 Payments | Borrower Made More than 36 Payments | |||||||||||||||||||||||||||
Bank of America | $ | 100 | $ | 18 | $ | 3 | $ | 7 | $ | 10 | $ | 1 | $ | 2 | $ | 2 | $ | 5 | ||||||||||||||||||
Countrywide | 716 | 173 | 43 | 144 | 187 | 24 | 45 | 45 | 73 | |||||||||||||||||||||||||||
Merrill Lynch | 67 | 15 | 3 | 16 | 19 | 3 | 4 | 3 | 9 | |||||||||||||||||||||||||||
First Franklin | 82 | 15 | 4 | 25 | 29 | 5 | 6 | 5 | 13 | |||||||||||||||||||||||||||
Total (1, 2) | $ | 965 | $ | 221 | $ | 53 | $ | 192 | $ | 245 | $ | 33 | $ | 57 | $ | 55 | $ | 100 | ||||||||||||||||||
By Product | ||||||||||||||||||||||||||||||||||||
Prime | $ | 302 | $ | 66 | $ | 8 | $ | 26 | $ | 34 | $ | 2 | $ | 6 | $ | 7 | $ | 19 | ||||||||||||||||||
Alt-A | 172 | 50 | 11 | 39 | 50 | 7 | 12 | 12 | 19 | |||||||||||||||||||||||||||
Pay option | 150 | 37 | 14 | 41 | 55 | 5 | 13 | 15 | 22 | |||||||||||||||||||||||||||
Subprime | 247 | 55 | 18 | 66 | 84 | 17 | 20 | 16 | 31 | |||||||||||||||||||||||||||
Home equity | 88 | 11 | — | 18 | 18 | 2 | 5 | 4 | 7 | |||||||||||||||||||||||||||
Other | 6 | 2 | 2 | 2 | 4 | — | 1 | 1 | 2 | |||||||||||||||||||||||||||
Total | $ | 965 | $ | 221 | $ | 53 | $ | 192 | $ | 245 | $ | 33 | $ | 57 | $ | 55 | $ | 100 |
(1) | Excludes transactions sponsored by Bank of America and Merrill Lynch where no representations or warranties were made. |
(2) | Includes exposures on third-party sponsored transactions related to legacy entity originations. |
Bank of America 2013 55 |
56 Bank of America 2013 |
Bank of America 2013 57 |
58 Bank of America 2013 |
Bank of America 2013 59 |
60 Bank of America 2013 |
Bank of America 2013 61 |
62 Bank of America 2013 |
Bank of America 2013 63 |
(1) | Chart is not comprehensive; there may be additional subcommittees not represented in this chart. This presentation does not include committees for other legal entities. |
(2) | Reports through the Audit Committee for compliance and through the Enterprise Risk Committee for operational and reputational risk. |
(3) | Reports to the CEO and CFO with oversight by the Audit Committee. |
64 Bank of America 2013 |
Bank of America 2013 65 |
Table 14 | Bank of America Corporation Regulatory Capital – Actual and Pro-Forma | |||||||
December 31 | ||||||||
(Dollars in billions) | 2013 | 2012 | ||||||
Tier 1 common capital ratio | 11.19 | % | 11.06 | % | ||||
Tier 1 common capital ratio (pro forma) (1) | n/a | 10.38 | ||||||
Tier 1 capital ratio | 12.44 | 12.89 | ||||||
Total capital ratio | 15.44 | 16.31 | ||||||
Tier 1 leverage ratio | 7.86 | 7.37 | ||||||
Risk-weighted assets | $ | 1,298 | $ | 1,206 | ||||
Adjusted quarterly average total assets (2) | 2,053 | 2,111 |
(1) | Pro-forma Tier 1 common capital ratio at December 31, 2012 includes the estimated impact of the Basel 1 – 2013 Rules. Represents a non-GAAP financial measure. On a pro-forma basis, risk-weighted assets would have been approximately $1,285 billion with the inclusion of $78.8 billion in pro-forma risk-weighted assets. |
(2) | Reflects adjusted average total assets for the three months ended December 31, 2013 and |
66 Bank of America 2013 |
Table 15 | Risk-weighted Asset Activity | |||
(Dollars in billions) | 2013 | |||
Risk-weighted assets, January 1 | $ | 1,206 | ||
Changes to risk-weighted assets | ||||
Increase related to Comprehensive Risk Measure (1) | 22 | |||
Increase related to Incremental Risk Charge (1) | 7 | |||
Increase related to market risk regulatory VaR | 21 | |||
Standard specific risk (2) | 28 | |||
Increase due to items no longer eligible to be included in market risk | 9 | |||
Increases related to implementation of Basel 1 – 2013 Rules | 87 | |||
Decrease related to trading and banking book exposures | (3 | ) | ||
Other changes | 8 | |||
Total risk-weighted assets, December 31 | $ | 1,298 |
(1) | For additional information, see Capital Management – Regulatory Capital Changes on page 68. |
(2) | A measure of the risk of loss on a position that could result from factors other than broad market movements. |
Table 16 | Capital Composition | |||||||
December 31 | ||||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Total common shareholders’ equity | $ | 219,333 | $ | 218,188 | ||||
Goodwill | (69,844 | ) | (69,976 | ) | ||||
Nonqualifying intangible assets (includes core deposit intangibles, affinity relationships, customer relationships and other intangibles) | (4,263 | ) | (4,994 | ) | ||||
Net unrealized (gains) losses on AFS debt and marketable equity securities and net losses on derivatives recorded in accumulated OCI, net-of-tax | 5,538 | (2,036 | ) | |||||
Unamortized net periodic benefit costs recorded in accumulated OCI, net-of-tax | 2,407 | 4,456 | ||||||
Fair value adjustments related to structured liabilities (1) | 4,485 | 4,084 | ||||||
Disallowed deferred tax asset | (13,974 | ) | (17,940 | ) | ||||
Other | 1,553 | 1,621 | ||||||
Total Tier 1 common capital | 145,235 | 133,403 | ||||||
Qualifying preferred stock | 10,435 | 15,851 | ||||||
Trust preferred securities | 5,786 | 6,207 | ||||||
Total Tier 1 capital | 161,456 | 155,461 | ||||||
Long-term debt qualifying as Tier 2 capital | 21,175 | 24,287 | ||||||
Allowance for loan and lease losses | 17,428 | 24,179 | ||||||
Reserve for unfunded lending commitments | 484 | 513 | ||||||
Allowance for loan and lease losses exceeding 1.25 percent of risk-weighted assets | (1,637 | ) | (9,459 | ) | ||||
45 percent of the pre-tax net unrealized gains (losses) on AFS marketable equity securities | (3 | ) | 329 | |||||
Other | 1,378 | 1,370 | ||||||
Total capital | $ | 200,281 | $ | 196,680 |
(1) | Represents loss on structured liabilities, net-of-tax, that is excluded from Tier 1 common capital, Tier 1 capital and Total capital for regulatory capital purposes. |
Bank of America 2013 67 |
68 Bank of America 2013 |
Table 17 | Summary of Certain Basel 3 Regulatory Capital Transition Provisions | |||||||||
Beginning on January 1 of each year | 2014 | 2015 | 2016 | 2017 | 2018 | |||||
Tier 1 common capital | ||||||||||
Percent of total amount deducted from Tier 1 common capital includes: | 20% | 40% | 60% | 80% | 100% | |||||
Deferred tax assets arising from net operating loss and tax credit carryforwards; intangibles, other than mortgage servicing rights and goodwill; defined benefit pension fund net assets; net gains (losses) related to changes in own credit risk on liabilities, including derivatives, measured at fair value; direct and indirect investments in own Tier 1 common capital instruments; certain amounts exceeding the threshold by 10 percent individually and 15 percent in aggregate | ||||||||||
Percent of total amount used to adjust Tier 1 common capital includes (1): | 80% | 60% | 40% | 20% | 0% | |||||
Net unrealized gains (losses) on AFS debt and certain marketable equity securities recorded in accumulated OCI; employee benefit plan adjustments recorded in accumulated OCI | ||||||||||
Tier 1 capital | ||||||||||
Percent of total amount deducted from Tier 1 capital includes: | 80% | 60% | 40% | 20% | 0% | |||||
Deferred tax assets arising from net operating loss and tax credit carryforwards; defined benefit pension fund net assets; net gains (losses) related to changes in own credit risk on liabilities, including derivatives, measured at fair value |
(1) | Represents the phase-out percentage of the exclusion by year (e.g., 20 percent of net unrealized gains (losses) on AFS debt and certain marketable equity securities recorded in accumulated OCI will be included in 2014). |
Bank of America 2013 69 |
Table 18 | Basel 1 to Basel 3 (fully phased-in) Reconciliation (1) | |||||||
December 31 | ||||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Regulatory capital – Basel 1 to Basel 3 (fully phased-in) | ||||||||
Basel 1 Tier 1 capital | $ | 161,456 | $ | 155,461 | ||||
Deduction of qualifying preferred stock and trust preferred securities | (16,221 | ) | (22,058 | ) | ||||
Basel 1 Tier 1 common capital | 145,235 | 133,403 | ||||||
Deduction of defined benefit pension assets | (829 | ) | (737 | ) | ||||
Deferred tax assets and threshold deductions (deferred tax asset temporary differences, MSRs and significant investments) | (4,803 | ) | (3,020 | ) | ||||
Net unrealized gains (losses) in accumulated OCI on AFS debt and certain marketable equity securities, and employee benefit plans | (5,668 | ) | 449 | |||||
Other deductions, net | (1,620 | ) | (1,469 | ) | ||||
Basel 3 Advanced approach (fully phased-in) Tier 1 common capital | $ | 132,315 | $ | 128,626 | ||||
Risk-weighted assets – Basel 1 to Basel 3 (fully phased-in) | ||||||||
Basel 1 risk-weighted assets | $ | 1,297,534 | $ | 1,205,976 | ||||
Credit and other risk-weighted assets | 31,510 | 103,085 | ||||||
Increase due to Market Risk Final Rule (2) | — | 81,811 | ||||||
Basel 3 Advanced approach (fully phased-in) risk-weighted assets | $ | 1,329,044 | $ | 1,390,872 | ||||
Tier 1 common capital ratios | ||||||||
Basel 1 | 11.19 | % | 11.06 | % | ||||
Basel 3 Advanced approach (fully phased-in) | 9.96 | 9.25 |
(1) | Includes the Market Risk Final Rule at December 31, 2013. Basel 1 did not include the Market Risk Final Rule at December 31, 2012. |
(2) | Excludes the benefit of certain hedges at December 31, 2012. Including these hedges, the increase due to the Market Risk Final Rule would have been $78.8 billion. For additional information, see Capital Management – Capital Composition and Ratios on page 66. |
70 Bank of America 2013 |
Table 19 | Bank of America, N.A. and FIA Card Services, N.A. Regulatory Capital (1) | |||||||||||||
December 31 | ||||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in millions) | Ratio | Amount | Ratio | Amount | ||||||||||
Tier 1 capital | ||||||||||||||
Bank of America, N.A. | 12.34 | % | $ | 125,886 | 12.44 | % | $ | 118,431 | ||||||
FIA Card Services, N.A. | 16.83 | 20,135 | 17.34 | 22,061 | ||||||||||
Total capital | ||||||||||||||
Bank of America, N.A. | 13.84 | 141,232 | 14.76 | 140,434 | ||||||||||
FIA Card Services, N.A. | 18.12 | 21,672 | 18.64 | 23,707 | ||||||||||
Tier 1 leverage | ||||||||||||||
Bank of America, N.A. | 9.21 | 125,886 | 8.59 | 118,431 | ||||||||||
FIA Card Services, N.A. | 12.91 | 20,135 | 13.67 | 22,061 |
(1) | BANA regulatory capital information included the Basel 1 – 2013 Rules at December 31, 2013. At December 31, 2012, BANA regulatory capital information did not include the Basel 1 – 2013 Rules. FIA is not impacted by the Basel 1 – 2013 Rules. |
Bank of America 2013 71 |
Table 20 | Global Excess Liquidity Sources | ||||||||||
December 31 | Average for Three Months Ended December 31 2013 | ||||||||||
(Dollars in billions) | 2013 | 2012 | |||||||||
Parent company | $ | 95 | $ | 103 | $ | 92 | |||||
Bank subsidiaries | 249 | 247 | 248 | ||||||||
Other regulated entities | 32 | 22 | 30 | ||||||||
Total Global Excess Liquidity Sources | $ | 376 | $ | 372 | $ | 370 |
Table 21 | Global Excess Liquidity Sources Composition | |||||||
December 31 | ||||||||
(Dollars in billions) | 2013 | 2012 | ||||||
Cash on deposit | $ | 90 | $ | 65 | ||||
U.S. Treasuries | 20 | 21 | ||||||
U.S. agency securities and mortgage-backed securities | 245 | 271 | ||||||
Non-U.S. government and supranational securities | 21 | 15 | ||||||
Total Global Excess Liquidity Sources | $ | 376 | $ | 372 |
72 Bank of America 2013 |
Bank of America 2013 73 |
Table 22 | Long-term Debt by Major Currency | |||||||
December 31 | ||||||||
(Dollars in millions) | 2013 | 2012 | ||||||
U.S. Dollar | $ | 176,294 | $ | 180,329 | ||||
Euro | 46,029 | 58,985 | ||||||
British Pound | 9,772 | 11,126 | ||||||
Japanese Yen | 9,115 | 12,749 | ||||||
Canadian Dollar | 2,402 | 3,560 | ||||||
Australian Dollar | 1,870 | 2,760 | ||||||
Swiss Franc | 1,274 | 1,917 | ||||||
Other | 2,918 | 4,159 | ||||||
Total long-term debt | $ | 249,674 | $ | 275,585 |
74 Bank of America 2013 |
Table 23 | Senior Debt Ratings | |||||||||||||||||
Moody’s Investor Service | Standard & Poor’s | Fitch Ratings | ||||||||||||||||
Long-term | Short-term | Outlook | Long-term | Short-term | Outlook | Long-term | Short-term | Outlook | ||||||||||
Bank of America Corporation | Baa2 | P-2 | Stable | A- | A-2 | Negative | A | F1 | Stable | |||||||||
Bank of America, N.A. | A2 | P-1 | Stable | A | A-1 | Negative | A | F1 | Stable | |||||||||
Merrill Lynch, Pierce, Fenner & Smith | NR | NR | NR | A | A-1 | Negative | A | F1 | Stable | |||||||||
Merrill Lynch International | NR | NR | NR | A | A-1 | Negative | A | F1 | Stable |
Bank of America 2013 75 |
Table 24 | Additional Collateral Required to be Posted Upon Downgrade | ||||||
December 31, 2013 | |||||||
(Dollars in millions) | One incremental notch | Second incremental notch | |||||
Bank of America Corporation | $ | 1,302 | $ | 4,101 | |||
Bank of America, N.A. and subsidiaries (1) | 881 | 3,039 |
(1) | Included in Bank of America Corporation collateral requirements in this table. |
Table 25 | Derivative Liability Subject to Unilateral Termination Upon Downgrade | ||||||
December 31, 2013 | |||||||
(Dollars in millions) | One incremental notch | Second incremental notch | |||||
Derivative liability | $ | 927 | $ | 1,878 | |||
Collateral posted | 733 | 1,467 |
76 Bank of America 2013 |
Bank of America 2013 77 |
Table 26 | Consumer Loans and Leases | |||||||||||||||
December 31 | ||||||||||||||||
Outstandings | Purchased Credit-impaired Loan Portfolio | |||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Residential mortgage (1) | $ | 248,066 | $ | 252,929 | $ | 18,672 | $ | 17,451 | ||||||||
Home equity | 93,672 | 108,140 | 6,593 | 8,667 | ||||||||||||
U.S. credit card | 92,338 | 94,835 | n/a | n/a | ||||||||||||
Non-U.S. credit card | 11,541 | 11,697 | n/a | n/a | ||||||||||||
Direct/Indirect consumer (2) | 82,192 | 83,205 | n/a | n/a | ||||||||||||
Other consumer (3) | 1,977 | 1,628 | n/a | n/a | ||||||||||||
Consumer loans excluding loans accounted for under the fair value option | 529,786 | 552,434 | 25,265 | 26,118 | ||||||||||||
Loans accounted for under the fair value option (4) | 2,164 | 1,005 | n/a | n/a | ||||||||||||
Total consumer loans and leases | $ | 531,950 | $ | 553,439 | $ | 25,265 | $ | 26,118 |
(1) | Outstandings include pay option loans of $4.4 billion and $6.7 billion and non-U.S. residential mortgage loans of $0 and $93 million at December 31, 2013 and 2012. We no longer originate pay option loans. |
(2) | Outstandings include dealer financial services loans of $38.5 billion and $35.9 billion, consumer lending loans of $2.7 billion and $4.7 billion, U.S. securities-based lending loans of $31.2 billion and $28.3 billion, non-U.S. consumer loans of $4.7 billion and $8.3 billion, student loans of $4.1 billion and $4.8 billion and other consumer loans of $1.0 billion and $1.2 billion at December 31, 2013 and 2012. |
(3) | Outstandings include consumer finance loans of $1.2 billion and $1.4 billion, consumer leases of $606 million and $34 million, consumer overdrafts of $176 million and $177 million and other non-U.S. consumer loans of $5 million and $5 million at December 31, 2013 and 2012. |
(4) | Consumer loans accounted for under the fair value option include residential mortgage loans of $2.0 billion and $1.0 billion and home equity loans of $147 million and $0 at December 31, 2013 and 2012. For more information on the fair value option, see Consumer Portfolio Credit Risk Management – Consumer Loans Accounted for Under the Fair Value Option on page 89 and Note 21 – Fair Value Option to the Consolidated Financial Statements. |
78 Bank of America 2013 |
Table 27 | Consumer Credit Quality | |||||||||||||||
December 31 | ||||||||||||||||
Nonperforming | Accruing Past Due 90 Days or More | |||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Residential mortgage (1) | $ | 11,712 | $ | 15,055 | $ | 16,961 | $ | 22,157 | ||||||||
Home equity | 4,075 | 4,282 | — | — | ||||||||||||
U.S. credit card | n/a | n/a | 1,053 | 1,437 | ||||||||||||
Non-U.S. credit card | n/a | n/a | 131 | 212 | ||||||||||||
Direct/Indirect consumer | 35 | 92 | 408 | 545 | ||||||||||||
Other consumer | 18 | 2 | 2 | 2 | ||||||||||||
Total (2) | $ | 15,840 | $ | 19,431 | $ | 18,555 | $ | 24,353 | ||||||||
Consumer loans and leases as a percentage of outstanding consumer loans and leases (2) | 2.99 | % | 3.52 | % | 3.50 | % | 4.41 | % | ||||||||
Consumer loans and leases as a percentage of outstanding loans and leases, excluding PCI and fully-insured loan portfolios (2) | 3.80 | 4.46 | 0.38 | 0.50 |
(1) | Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At December 31, 2013 and 2012, residential mortgage included $13.0 billion and $17.8 billion of loans on which interest has been curtailed by the FHA, and therefore are no longer accruing interest, although principal is still insured, and $4.0 billion and $4.4 billion of loans on which interest was still accruing. |
(2) | Balances exclude consumer loans accounted for under the fair value option. At December 31, 2013 and 2012, $445 million and $391 million of loans accounted for under the fair value option were past due 90 days or more and not accruing interest. |
Table 28 | Consumer Net Charge-offs and Related Ratios | |||||||||||||
Net Charge-offs (1) | Net Charge-off Ratios (1, 2) | |||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Residential mortgage | $ | 1,084 | $ | 3,111 | 0.42 | % | 1.18 | % | ||||||
Home equity | 1,803 | 4,242 | 1.80 | 3.62 | ||||||||||
U.S. credit card | 3,376 | 4,632 | 3.74 | 4.88 | ||||||||||
Non-U.S. credit card | 399 | 581 | 3.68 | 4.29 | ||||||||||
Direct/Indirect consumer | 345 | 763 | 0.42 | 0.90 | ||||||||||
Other consumer | 234 | 232 | 12.96 | 9.85 | ||||||||||
Total | $ | 7,241 | $ | 13,561 | 1.34 | 2.36 |
(1) | Net charge-offs exclude write-offs in the PCI loan portfolio of $1.2 billion in home equity and $1.1 billion in residential mortgage in 2013 compared to $2.8 billion in home equity in 2012. These write-offs decreased the PCI valuation allowance included as part of the allowance for loan and lease losses. For more information on PCI write-offs, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page 85. |
(2) | Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option. |
Bank of America 2013 79 |
Table 29 | Home Loans Portfolio (1) | |||||||||||||||||||||||
December 31 | ||||||||||||||||||||||||
Outstandings | Nonperforming | Net Charge-offs (2) | ||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Core portfolio | ||||||||||||||||||||||||
Residential mortgage | $ | 177,336 | $ | 170,116 | $ | 3,316 | $ | 3,193 | $ | 274 | $ | 544 | ||||||||||||
Home equity | 54,499 | 60,851 | 1,431 | 1,265 | 439 | 811 | ||||||||||||||||||
Total Core portfolio | 231,835 | 230,967 | 4,747 | 4,458 | 713 | 1,355 | ||||||||||||||||||
Legacy Assets & Servicing portfolio | ||||||||||||||||||||||||
Residential mortgage | 70,730 | 82,813 | 8,396 | 11,862 | 810 | 2,567 | ||||||||||||||||||
Home equity | 39,173 | 47,289 | 2,644 | 3,017 | 1,364 | 3,431 | ||||||||||||||||||
Total Legacy Assets & Servicing portfolio | 109,903 | 130,102 | 11,040 | 14,879 | 2,174 | 5,998 | ||||||||||||||||||
Home loans portfolio | ||||||||||||||||||||||||
Residential mortgage | 248,066 | 252,929 | 11,712 | 15,055 | 1,084 | 3,111 | ||||||||||||||||||
Home equity | 93,672 | 108,140 | 4,075 | 4,282 | 1,803 | 4,242 | ||||||||||||||||||
Total home loans portfolio | $ | 341,738 | $ | 361,069 | $ | 15,787 | $ | 19,337 | $ | 2,887 | $ | 7,353 | ||||||||||||
December 31 | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses | Provision for Loan and Lease Losses | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Core portfolio | ||||||||||||||||||||||||
Residential mortgage | $ | 728 | $ | 829 | $ | 166 | $ | 523 | ||||||||||||||||
Home equity | 965 | 1,286 | 119 | 256 | ||||||||||||||||||||
Total Core portfolio | 1,693 | 2,115 | 285 | 779 | ||||||||||||||||||||
Legacy Assets & Servicing portfolio | ||||||||||||||||||||||||
Residential mortgage | 3,356 | 6,259 | (979 | ) | 1,802 | |||||||||||||||||||
Home equity | 3,469 | 6,559 | (430 | ) | 1,492 | |||||||||||||||||||
Total Legacy Assets & Servicing portfolio | 6,825 | 12,818 | (1,409 | ) | 3,294 | |||||||||||||||||||
Home loans portfolio | ||||||||||||||||||||||||
Residential mortgage | 4,084 | 7,088 | (813 | ) | 2,325 | |||||||||||||||||||
Home equity | 4,434 | 7,845 | (311 | ) | 1,748 | |||||||||||||||||||
Total home loans portfolio | $ | 8,518 | $ | 14,933 | $ | (1,124 | ) | $ | 4,073 |
(1) | Outstandings and nonperforming amounts exclude loans accounted for under the fair value option. Consumer loans accounted for under the fair value option include residential mortgage loans of $2.0 billion and $1.0 billion and home equity loans of $147 million and $0 at December 31, 2013 and 2012. For more information on the fair value option, see Consumer Portfolio Credit Risk Management – Consumer Loans Accounted for Under the Fair Value Option on page 89 and Note 21 – Fair Value Option to the Consolidated Financial Statements. |
(2) | Net charge-offs exclude write-offs in the PCI loan portfolio of $1.2 billion in home equity and $1.1 billion in residential mortgage in 2013, which are included in the Legacy Assets & Servicing portfolio, compared to $2.8 billion in home equity in 2012. Write-offs in the PCI loan portfolio decrease the PCI valuation allowance included as part of the allowance for loan and lease losses. For more information on PCI write-offs, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page 85. |
80 Bank of America 2013 |
Table 30 | Residential Mortgage – Key Credit Statistics | |||||||||||||||
December 31 | ||||||||||||||||
Reported Basis (1) | Excluding Purchased Credit-impaired and Fully-insured Loans | |||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Outstandings | $ | 248,066 | $ | 252,929 | $ | 142,147 | $ | 144,624 | ||||||||
Accruing past due 30 days or more | 23,052 | 28,815 | 2,371 | 3,117 | ||||||||||||
Accruing past due 90 days or more | 16,961 | 22,157 | — | — | ||||||||||||
Nonperforming loans | 11,712 | 15,055 | 11,712 | 15,055 | ||||||||||||
Percent of portfolio | ||||||||||||||||
Refreshed LTV greater than 90 but less than or equal to 100 | 12 | % | 15 | % | 7 | % | 10 | % | ||||||||
Refreshed LTV greater than 100 | 13 | 28 | 10 | 20 | ||||||||||||
Refreshed FICO below 620 | 21 | 23 | 11 | 14 | ||||||||||||
2006 and 2007 vintages (2) | 21 | 25 | 27 | 34 | ||||||||||||
Net charge-off ratio (3) | 0.42 | 1.18 | 0.74 | 2.04 |
(1) | Outstandings, accruing past due, nonperforming loans and percentages of portfolio exclude loans accounted for under the fair value option. There were $2.0 billion and $1.0 billion of residential mortgage loans accounted for under the fair value option at December 31, 2013 and 2012. For more information on the fair value option, see Consumer Portfolio Credit Risk Management – Consumer Loans Accounted for Under the Fair Value Option on page 89 and Note 21 – Fair Value Option to the Consolidated Financial Statements. |
(2) | These vintages of loans account for 53 percent and 61 percent of nonperforming residential mortgage loans at December 31, 2013 and 2012, and 60 percent and 71 percent of residential mortgage net charge-offs in 2013 and 2012. |
(3) | Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option. |
Bank of America 2013 81 |
Table 31 | Residential Mortgage State Concentrations | |||||||||||||||||||||||
December 31 | ||||||||||||||||||||||||
Outstandings (1) | Nonperforming (1) | Net Charge-offs (2) | ||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
California | $ | 47,885 | $ | 48,671 | $ | 3,396 | $ | 4,580 | $ | 148 | $ | 1,139 | ||||||||||||
New York (3) | 11,787 | 11,290 | 789 | 972 | 59 | 82 | ||||||||||||||||||
Florida (3) | 10,777 | 11,100 | 1,359 | 1,773 | 117 | 371 | ||||||||||||||||||
Texas | 6,766 | 6,928 | 407 | 498 | 25 | 55 | ||||||||||||||||||
Virginia | 4,774 | 5,096 | 369 | 410 | 31 | 52 | ||||||||||||||||||
Other U.S./Non-U.S. | 60,158 | 61,539 | 5,392 | 6,822 | 704 | 1,412 | ||||||||||||||||||
Residential mortgage loans (4) | $ | 142,147 | $ | 144,624 | $ | 11,712 | $ | 15,055 | $ | 1,084 | $ | 3,111 | ||||||||||||
Fully-insured loan portfolio | 87,247 | 90,854 | ||||||||||||||||||||||
Purchased credit-impaired residential mortgage loan portfolio | 18,672 | 17,451 | ||||||||||||||||||||||
Total residential mortgage loan portfolio | $ | 248,066 | $ | 252,929 |
(1) | Outstandings and nonperforming amounts exclude loans accounted for under the fair value option. There were $2.0 billion and $1.0 billion of residential mortgage loans accounted for under the fair value option at December 31, 2013 and 2012. For more information on the fair value option, see Consumer Portfolio Credit Risk Management – Consumer Loans Accounted for Under the Fair Value Option on page 89 and Note 21 – Fair Value Option to the Consolidated Financial Statements. |
(2) | Net charge-offs exclude $1.1 billion of write-offs in the residential mortgage PCI loan portfolio in 2013 compared to none in 2012. These write-offs decreased the PCI valuation allowance included as part of the allowance for loan and lease losses. For more information on PCI write-offs, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page 85. |
(3) | In these states, foreclosure requires a court order following a legal proceeding (judicial states). |
(4) | Amount excludes the PCI residential mortgage and fully-insured loan portfolios. |
82 Bank of America 2013 |
Table 32 | Home Equity – Key Credit Statistics | |||||||||||||||
December 31 | ||||||||||||||||
Reported Basis (1) | Excluding Purchased Credit-impaired Loans | |||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Outstandings | $ | 93,672 | $ | 108,140 | $ | 87,079 | $ | 99,473 | ||||||||
Accruing past due 30 days or more (2) | 901 | 1,099 | 901 | 1,099 | ||||||||||||
Nonperforming loans (2) | 4,075 | 4,282 | 4,075 | 4,282 | ||||||||||||
Percent of portfolio | ||||||||||||||||
Refreshed combined LTV greater than 90 but less than or equal to 100 | 9 | % | 10 | % | 9 | % | 10 | % | ||||||||
Refreshed combined LTV greater than 100 | 22 | 31 | 19 | 29 | ||||||||||||
Refreshed FICO below 620 | 8 | 9 | 8 | 8 | ||||||||||||
2006 and 2007 vintages (3) | 48 | 48 | 45 | 46 | ||||||||||||
Net charge-off ratio (4) | 1.80 | 3.62 | 1.94 | 3.99 |
(1) | Outstandings, accruing past due, nonperforming loans and percentages of portfolio exclude loans accounted for under the fair value option. There were $147 million of home equity loans accounted for under the fair value option at December 31, 2013 compared to none at December 31, 2012. For more information on the fair value option, see Consumer Portfolio Credit Risk Management – Consumer Loans Accounted for Under the Fair Value Option on page 89 and Note 21 – Fair Value Option to the Consolidated Financial Statements. |
(2) | Accruing past due 30 days or more includes $164 million and $321 million and nonperforming loans includes $410 million and $824 million of loans where we serviced the underlying first-lien at December 31, 2013 and 2012. |
(3) | These vintages of loans have higher refreshed combined LTV ratios and accounted for 50 percent and 51 percent of nonperforming home equity loans at December 31, 2013 and 2012, and accounted for 63 percent and 60 percent of net charge-offs in 2013 and 2012. |
(4) | Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option. |
Bank of America 2013 83 |
84 Bank of America 2013 |
Table 33 | Home Equity State Concentrations | |||||||||||||||||||||||
December 31 | ||||||||||||||||||||||||
Outstandings (1) | Nonperforming (1) | Net Charge-offs (2) | ||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
California | $ | 25,061 | $ | 28,730 | $ | 1,047 | $ | 1,128 | $ | 509 | $ | 1,333 | ||||||||||||
Florida (3) | 10,604 | 11,899 | 643 | 706 | 315 | 602 | ||||||||||||||||||
New Jersey (3) | 6,153 | 6,789 | 304 | 312 | 93 | 210 | ||||||||||||||||||
New York (3) | 6,035 | 6,736 | 405 | 419 | 110 | 222 | ||||||||||||||||||
Massachusetts | 3,881 | 4,381 | 144 | 140 | 42 | 91 | ||||||||||||||||||
Other U.S./Non-U.S. | 35,345 | 40,938 | 1,532 | 1,577 | 734 | 1,784 | ||||||||||||||||||
Home equity loans (4) | $ | 87,079 | $ | 99,473 | $ | 4,075 | $ | 4,282 | $ | 1,803 | $ | 4,242 | ||||||||||||
Purchased credit-impaired home equity portfolio | 6,593 | 8,667 | ||||||||||||||||||||||
Total home equity loan portfolio | $ | 93,672 | $ | 108,140 |
(1) | Outstandings and nonperforming amounts exclude loans accounted for under the fair value option. There were $147 million of home equity loans accounted for under the fair value option at December 31, 2013 compared to none at December 31, 2012. For more information on the fair value option, see Consumer Portfolio Credit Risk Management – Consumer Loans Accounted for Under the Fair Value Option on page 89 and Note 21 – Fair Value Option to the Consolidated Financial Statements. |
(2) | Net charge-offs exclude $1.2 billion of write-offs in the home equity PCI loan portfolio in 2013 compared to $2.8 billion in 2012. These write-offs decreased the PCI valuation allowance included as part of the allowance for loan and lease losses. For more information on PCI write-offs, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page 85. |
(3) | In these states, foreclosure requires a court order following a legal proceeding (judicial states). |
(4) | Amount excludes the PCI home equity portfolio. |
Bank of America 2013 85 |
Table 34 | Purchased Credit-impaired Loan Portfolio | ||||||||||||||||||
December 31, 2013 | |||||||||||||||||||
(Dollars in millions) | Unpaid Principal Balance | Carrying Value | Related Valuation Allowance | Carrying Value Net of Valuation Allowance | Percent of Unpaid Principal Balance | ||||||||||||||
Residential mortgage | $ | 19,558 | $ | 18,672 | $ | 1,446 | $ | 17,226 | 88.08 | % | |||||||||
Home equity | 6,523 | 6,593 | 1,047 | 5,546 | 85.02 | ||||||||||||||
Total purchased credit-impaired loan portfolio | $ | 26,081 | $ | 25,265 | $ | 2,493 | $ | 22,772 | 87.31 | ||||||||||
December 31, 2012 | |||||||||||||||||||
Residential mortgage | $ | 18,069 | $ | 17,451 | $ | 3,108 | $ | 14,343 | 79.38 | % | |||||||||
Home equity | 8,434 | 8,667 | 2,428 | 6,239 | 73.97 | ||||||||||||||
Total purchased credit-impaired loan portfolio | $ | 26,503 | $ | 26,118 | $ | 5,536 | $ | 20,582 | 77.66 |
Table 35 | Outstanding Purchased Credit-impaired Loan Portfolio – Residential Mortgage State Concentrations | |||||||
December 31 | ||||||||
(Dollars in millions) | 2013 | 2012 | ||||||
California | $ | 8,180 | $ | 9,238 | ||||
Florida (1) | 1,750 | 1,797 | ||||||
Virginia | 760 | 715 | ||||||
Maryland | 728 | 417 | ||||||
Texas | 433 | 192 | ||||||
Other U.S./Non-U.S. | 6,821 | 5,092 | ||||||
Total | $ | 18,672 | $ | 17,451 |
(1) | In this state, foreclosure requires a court order following a legal proceeding (judicial state). |
86 Bank of America 2013 |
Table 36 | Outstanding Purchased Credit-impaired Loan Portfolio – Home Equity State Concentrations | |||||||
December 31 | ||||||||
(Dollars in millions) | 2013 | 2012 | ||||||
California | $ | 1,921 | $ | 2,629 | ||||
Florida (1) | 356 | 524 | ||||||
Virginia | 310 | 383 | ||||||
Arizona | 214 | 297 | ||||||
Colorado | 199 | 264 | ||||||
Other U.S./Non-U.S. | 3,593 | 4,570 | ||||||
Total | $ | 6,593 | $ | 8,667 |
(1) | In this state, foreclosure requires a court order following a legal proceeding (judicial state). |
Table 37 | U.S. Credit Card – Key Credit Statistics | |||||||
December 31 | ||||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Outstandings | $ | 92,338 | $ | 94,835 | ||||
Accruing past due 30 days or more | 2,073 | 2,748 | ||||||
Accruing past due 90 days or more | 1,053 | 1,437 | ||||||
2013 | 2012 | |||||||
Net charge-offs | $ | 3,376 | $ | 4,632 | ||||
Net charge-off ratios (1) | 3.74 | % | 4.88 | % |
(1) | Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans. |
Bank of America 2013 87 |
Table 38 | U.S. Credit Card State Concentrations | |||||||||||||||||||||||
December 31 | ||||||||||||||||||||||||
Outstandings | Accruing Past Due 90 Days or More | Net Charge-offs | ||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
California | $ | 13,689 | $ | 14,101 | $ | 162 | $ | 235 | $ | 562 | $ | 840 | ||||||||||||
Florida | 7,339 | 7,469 | 105 | 149 | 359 | 512 | ||||||||||||||||||
Texas | 6,405 | 6,448 | 72 | 92 | 217 | 290 | ||||||||||||||||||
New York | 5,624 | 5,746 | 70 | 91 | 219 | 263 | ||||||||||||||||||
New Jersey | 3,868 | 3,959 | 48 | 60 | 150 | 178 | ||||||||||||||||||
Other U.S. | 55,413 | 57,112 | 596 | 810 | 1,869 | 2,549 | ||||||||||||||||||
Total U.S. credit card portfolio | $ | 92,338 | $ | 94,835 | $ | 1,053 | $ | 1,437 | $ | 3,376 | $ | 4,632 |
Table 39 | Non-U.S. Credit Card – Key Credit Statistics | |||||||
December 31 | ||||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Outstandings | $ | 11,541 | $ | 11,697 | ||||
Accruing past due 30 days or more | 248 | 403 | ||||||
Accruing past due 90 days or more | 131 | 212 | ||||||
2013 | 2012 | |||||||
Net charge-offs | $ | 399 | $ | 581 | ||||
Net charge-off ratios (1) | 3.68 | % | 4.29 | % |
(1) | Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans. |
88 Bank of America 2013 |
Table 40 | Direct/Indirect State Concentrations | |||||||||||||||||||||||
December 31 | ||||||||||||||||||||||||
Outstandings | Accruing Past Due 90 Days or More | Net Charge-offs | ||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
California | $ | 10,041 | $ | 10,793 | $ | 57 | $ | 53 | $ | 42 | $ | 102 | ||||||||||||
Texas | 7,850 | 7,239 | 66 | 41 | 32 | 64 | ||||||||||||||||||
Florida | 7,634 | 7,363 | 25 | 37 | 41 | 88 | ||||||||||||||||||
New York | 4,611 | 4,794 | 33 | 28 | 20 | 43 | ||||||||||||||||||
Georgia | 2,564 | 2,491 | 16 | 31 | 14 | 30 | ||||||||||||||||||
Other U.S./Non-U.S. | 49,492 | 50,525 | 211 | 355 | 196 | 436 | ||||||||||||||||||
Total direct/indirect loan portfolio | $ | 82,192 | $ | 83,205 | $ | 408 | $ | 545 | $ | 345 | $ | 763 |
Bank of America 2013 89 |
Table 41 | Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity (1) | |||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Nonperforming loans, January 1 | $ | 19,431 | $ | 18,768 | ||||
Additions to nonperforming loans and leases: | ||||||||
New nonperforming loans and leases | 9,652 | 13,084 | ||||||
Impact of change in treatment of loans discharged in bankruptcies (2) | n/a | 1,162 | ||||||
Implementation of regulatory interagency guidance (2) | n/a | 1,853 | ||||||
Reductions to nonperforming loans and leases: | ||||||||
Paydowns and payoffs | (2,782 | ) | (3,801 | ) | ||||
Sales | (1,528 | ) | (47 | ) | ||||
Returns to performing status (3) | (4,273 | ) | (4,203 | ) | ||||
Charge-offs | (3,514 | ) | (6,544 | ) | ||||
Transfers to foreclosed properties (4) | (483 | ) | (841 | ) | ||||
Transfers to loans held-for-sale (5) | (663 | ) | — | |||||
Total net additions (reductions) to nonperforming loans and leases | (3,591 | ) | 663 | |||||
Total nonperforming loans and leases, December 31 (6) | 15,840 | 19,431 | ||||||
Foreclosed properties, January 1 | 650 | 1,991 | ||||||
Additions to foreclosed properties: | ||||||||
New foreclosed properties (4) | 936 | 1,129 | ||||||
Reductions to foreclosed properties: | ||||||||
Sales | (930 | ) | (2,283 | ) | ||||
Write-downs | (123 | ) | (187 | ) | ||||
Total net reductions to foreclosed properties | (117 | ) | (1,341 | ) | ||||
Total foreclosed properties, December 31 (7) | 533 | 650 | ||||||
Nonperforming consumer loans, leases and foreclosed properties, December 31 | $ | 16,373 | $ | 20,081 | ||||
Nonperforming consumer loans and leases as a percentage of outstanding consumer loans and leases (8) | 2.99 | % | 3.52 | % | ||||
Nonperforming consumer loans, leases and foreclosed properties as a percentage of outstanding consumer loans, leases and foreclosed properties (8) | 3.09 | 3.63 |
(1) | Balances do not include nonperforming LHFS of $376 million and $622 million and nonaccruing TDRs removed from the PCI loan portfolio prior to January 1, 2010 of $260 million and $521 million at December 31, 2013 and 2012 as well as loans accruing past due 90 days or more as presented in Table 27 and Note 4 – Outstanding Loans and Leases to the Consolidated Financial Statements. |
(2) | As a result of the implementation of regulatory guidance in 2012 on loans discharged in Chapter 7 bankruptcy, we added $1.2 billion to nonperforming loans. As a result of the implementation of regulatory interagency guidance in 2012, we reclassified $1.9 billion of performing home equity loans (of which $1.6 billion were current) to nonperforming. |
(3) | Consumer loans may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. |
(4) | New foreclosed properties represents transfers of nonperforming loans to foreclosed properties net of charge-offs taken during the first 90 days after transfer of a loan to foreclosed properties. New foreclosed properties also includes properties obtained upon foreclosure of delinquent PCI loans, properties repurchased due to representations and warranties exposure and properties acquired with newly consolidated subsidiaries. |
(5) | Transfers to loans held-for-sale includes $273 million of loans that were sold prior to December 31, 2013. |
(6) | At December 31, 2013, 46 percent of nonperforming loans were 180 days or more past due and were written down through charge-offs to 65 percent of their unpaid principal balance. |
(7) | Foreclosed property balances do not include loans that are insured by the FHA and have entered foreclosure of $1.4 billion and $2.5 billion at December 31, 2013 and 2012. |
(8) | Outstanding consumer loans and leases exclude loans accounted for under the fair value option. |
90 Bank of America 2013 |
Table 42 | Home Loans Troubled Debt Restructurings | |||||||||||||||||||||||
December 31 | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
(Dollars in millions) | Total | Nonperforming | Performing | Total | Nonperforming | Performing | ||||||||||||||||||
Residential mortgage (1, 2) | $ | 29,312 | $ | 7,555 | $ | 21,757 | $ | 28,125 | $ | 9,040 | $ | 19,085 | ||||||||||||
Home equity (3) | 2,146 | 1,389 | 757 | 2,125 | 1,242 | 883 | ||||||||||||||||||
Total home loans troubled debt restructurings | $ | 31,458 | $ | 8,944 | $ | 22,514 | $ | 30,250 | $ | 10,282 | $ | 19,968 |
(1) | Residential mortgage TDRs deemed collateral dependent totaled $8.2 billion and $9.4 billion, and included $5.7 billion and $6.4 billion of loans classified as nonperforming and $2.5 billion and $3.0 billion of loans classified as performing at December 31, 2013 and 2012. |
(2) | Residential mortgage performing TDRs included $14.3 billion and $11.9 billion of loans that were fully-insured at December 31, 2013 and 2012. |
(3) | Home equity TDRs deemed collateral dependent totaled $1.4 billion and $1.4 billion, and included $1.2 billion and $1.0 billion of loans classified as nonperforming and $227 million and $348 million of loans classified as performing at December 31, 2013 and 2012. |
Bank of America 2013 91 |
Table 43 | Commercial Loans and Leases | |||||||||||||||||||||||
December 31 | ||||||||||||||||||||||||
Outstandings | Nonperforming | Accruing Past Due 90 Days or More | ||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
U.S. commercial | $ | 212,557 | $ | 197,126 | $ | 819 | $ | 1,484 | $ | 47 | $ | 65 | ||||||||||||
Commercial real estate (1) | 47,893 | 38,637 | 322 | 1,513 | 21 | 29 | ||||||||||||||||||
Commercial lease financing | 25,199 | 23,843 | 16 | 44 | 41 | 15 | ||||||||||||||||||
Non-U.S. commercial | 89,462 | 74,184 | 64 | 68 | 17 | — | ||||||||||||||||||
375,111 | 333,790 | 1,221 | 3,109 | 126 | 109 | |||||||||||||||||||
U.S. small business commercial (2) | 13,294 | 12,593 | 88 | 115 | 78 | 120 | ||||||||||||||||||
Commercial loans excluding loans accounted for under the fair value option | 388,405 | 346,383 | 1,309 | 3,224 | 204 | 229 | ||||||||||||||||||
Loans accounted for under the fair value option (3) | 7,878 | 7,997 | 2 | 11 | — | — | ||||||||||||||||||
Total commercial loans and leases | $ | 396,283 | $ | 354,380 | $ | 1,311 | $ | 3,235 | $ | 204 | $ | 229 |
(1) | Includes U.S. commercial real estate loans of $46.3 billion and $37.2 billion and non-U.S. commercial real estate loans of $1.6 billion and $1.5 billion at December 31, 2013 and 2012. |
(2) | Includes card-related products. |
(3) | Commercial loans accounted for under the fair value option include U.S. commercial loans of $1.5 billion and $2.3 billion and non-U.S. commercial loans of $6.4 billion and $5.7 billion at December 31, 2013 and 2012. For more information on the fair value option, see Note 21 – Fair Value Option to the Consolidated Financial Statements. |
Table 44 | Commercial Net Charge-offs and Related Ratios | |||||||||||||
Net Charge-offs | Net Charge-off Ratios (1) | |||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||
U.S. commercial | $ | 128 | $ | 242 | 0.06 | % | 0.13 | % | ||||||
Commercial real estate | 149 | 384 | 0.35 | 1.01 | ||||||||||
Commercial lease financing | (25 | ) | (6 | ) | (0.10 | ) | (0.03 | ) | ||||||
Non-U.S. commercial | 45 | 28 | 0.05 | 0.05 | ||||||||||
297 | 648 | 0.08 | 0.21 | |||||||||||
U.S. small business commercial | 359 | 699 | 2.84 | 5.46 | ||||||||||
Total commercial | $ | 656 | $ | 1,347 | 0.18 | 0.43 |
(1) | Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option. |
92 Bank of America 2013 |
Table 45 | Commercial Credit Exposure by Type | |||||||||||||||||||||||
December 31 | ||||||||||||||||||||||||
Commercial Utilized (1) | Commercial Unfunded (2, 3) | Total Commercial Committed | ||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Loans and leases | $ | 396,283 | $ | 354,380 | $ | 307,478 | $ | 281,915 | $ | 703,761 | $ | 636,295 | ||||||||||||
Derivative assets (4) | 47,495 | 53,497 | — | — | 47,495 | 53,497 | ||||||||||||||||||
Standby letters of credit and financial guarantees | 35,893 | 41,036 | 1,334 | 2,119 | 37,227 | 43,155 | ||||||||||||||||||
Debt securities and other investments | 18,505 | 10,937 | 6,903 | 6,914 | 25,408 | 17,851 | ||||||||||||||||||
Loans held-for-sale | 6,604 | 7,928 | 101 | 3,763 | 6,705 | 11,691 | ||||||||||||||||||
Commercial letters of credit | 2,054 | 2,065 | 515 | 564 | 2,569 | 2,629 | ||||||||||||||||||
Bankers’ acceptances | 246 | 185 | — | 3 | 246 | 188 | ||||||||||||||||||
Foreclosed properties and other (5) | 414 | 1,699 | — | — | 414 | 1,699 | ||||||||||||||||||
Total | $ | 507,494 | $ | 471,727 | $ | 316,331 | $ | 295,278 | $ | 823,825 | $ | 767,005 |
(1) | Total commercial utilized exposure includes loans and issued letters of credit accounted for under the fair value option and is comprised of loans outstanding of $7.9 billion and $8.0 billion and letters of credit with a notional amount of $503 million and $672 million at December 31, 2013 and 2012. |
(2) | Total commercial unfunded exposure includes loan commitments accounted for under the fair value option with a notional amount of $12.5 billion and $17.6 billion at December 31, 2013 and 2012. |
(3) | Excludes unused business card lines which are not legally binding. |
(4) | Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by cash collateral of $47.3 billion and $58.1 billion at December 31, 2013 and 2012. Not reflected in utilized and committed exposure is additional derivative collateral held of $17.1 billion and $18.7 billion which consists primarily of other marketable securities. |
(5) | The net monoline exposure of $1.3 billion at December 31, 2012 was settled during 2013. |
Table 46 | Commercial Utilized Reservable Criticized Exposure | |||||||||||||
December 31 | ||||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in millions) | Amount (1) | Percent (2) | Amount (1) | Percent (2) | ||||||||||
U.S. commercial | $ | 8,362 | 3.45 | % | $ | 8,631 | 3.72 | % | ||||||
Commercial real estate | 1,452 | 2.92 | 3,782 | 9.24 | ||||||||||
Commercial lease financing | 988 | 3.92 | 969 | 4.06 | ||||||||||
Non-U.S. commercial | 1,424 | 1.49 | 1,614 | 2.02 | ||||||||||
12,226 | 2.96 | 14,996 | 3.98 | |||||||||||
U.S. small business commercial | 635 | 4.77 | 940 | 7.45 | ||||||||||
Total commercial utilized reservable criticized exposure | $ | 12,861 | 3.02 | $ | 15,936 | 4.10 |
(1) | Total commercial utilized reservable criticized exposure includes loans and leases of $11.5 billion and $14.6 billion and commercial letters of credit of $1.4 billion and $1.3 billion at December 31, 2013 and 2012. |
(2) | Percentages are calculated as commercial utilized reservable criticized exposure divided by total commercial utilized reservable exposure for each exposure category. |
Bank of America 2013 93 |
Table 47 | Outstanding Commercial Real Estate Loans | |||||||
December 31 | ||||||||
(Dollars in millions) | 2013 | 2012 | ||||||
By Geographic Region | ||||||||
California | $ | 10,358 | $ | 8,792 | ||||
Northeast | 9,487 | 7,315 | ||||||
Southwest | 6,913 | 4,612 | ||||||
Southeast | 5,314 | 4,440 | ||||||
Midwest | 3,109 | 3,421 | ||||||
Florida | 3,030 | 2,148 | ||||||
Illinois | 2,319 | 1,700 | ||||||
Northwest | 2,037 | 1,553 | ||||||
Midsouth | 2,013 | 1,980 | ||||||
Non-U.S. | 1,582 | 1,483 | ||||||
Other (1) | 1,731 | 1,193 | ||||||
Total outstanding commercial real estate loans | $ | 47,893 | $ | 38,637 | ||||
By Property Type | ||||||||
Non-residential | ||||||||
Office | $ | 12,799 | $ | 9,324 | ||||
Multi-family rental | 8,559 | 5,893 | ||||||
Shopping centers/retail | 7,470 | 5,780 | ||||||
Industrial/warehouse | 4,522 | 3,839 | ||||||
Hotels/motels | 3,926 | 3,095 | ||||||
Multi-use | 1,960 | 2,186 | ||||||
Land and land development | 855 | 1,157 | ||||||
Other | 6,283 | 5,722 | ||||||
Total non-residential | 46,374 | 36,996 | ||||||
Residential | 1,519 | 1,641 | ||||||
Total outstanding commercial real estate loans | $ | 47,893 | $ | 38,637 |
(1) | Includes unsecured loans to real estate investment trusts and national home builders whose portfolios of properties span multiple geographic regions and properties in the states of Colorado, Utah, Hawaii, Wyoming and Montana. |
94 Bank of America 2013 |
Table 48 | Commercial Real Estate Credit Quality Data | |||||||||||||||
December 31 | ||||||||||||||||
Nonperforming Loans and Foreclosed Properties (1) | Utilized Reservable Criticized Exposure (2) | |||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Non-residential | ||||||||||||||||
Office | $ | 96 | $ | 295 | $ | 367 | $ | 914 | ||||||||
Multi-family rental | 15 | 109 | 234 | 375 | ||||||||||||
Shopping centers/retail | 57 | 230 | 144 | 464 | ||||||||||||
Industrial/warehouse | 22 | 160 | 119 | 324 | ||||||||||||
Hotels/motels | 5 | 45 | 38 | 202 | ||||||||||||
Multi-use | 19 | 123 | 157 | 309 | ||||||||||||
Land and land development | 73 | 321 | 92 | 359 | ||||||||||||
Other | 23 | 87 | 173 | 301 | ||||||||||||
Total non-residential | 310 | 1,370 | 1,324 | 3,248 | ||||||||||||
Residential | 102 | 393 | 128 | 534 | ||||||||||||
Total commercial real estate | $ | 412 | $ | 1,763 | $ | 1,452 | $ | 3,782 |
(1) | Includes commercial foreclosed properties of $90 million and $250 million at December 31, 2013 and 2012. |
(2) | Includes loans, SBLCs and bankers’ acceptances and excludes loans accounted for under the fair value option. |
Table 49 | Commercial Real Estate Net Charge-offs and Related Ratios | |||||||||||||
Net Charge-offs | Net Charge-off Ratios (1) | |||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Non-residential | ||||||||||||||
Office | $ | 42 | $ | 106 | 0.39 | % | 1.36 | % | ||||||
Multi-family rental | 2 | 13 | 0.02 | 0.23 | ||||||||||
Shopping centers/retail | 12 | 57 | 0.18 | 1.00 | ||||||||||
Industrial/warehouse | 23 | 49 | 0.55 | 1.31 | ||||||||||
Hotels/motels | 18 | 11 | 0.52 | 0.39 | ||||||||||
Multi-use | 5 | 66 | 0.26 | 2.46 | ||||||||||
Land and land development | 23 | (23 | ) | 2.35 | (1.73 | ) | ||||||||
Other | (23 | ) | 31 | (0.41 | ) | 0.51 | ||||||||
Total non-residential | 102 | 310 | 0.25 | 0.86 | ||||||||||
Residential | 47 | 74 | 3.04 | 3.74 | ||||||||||
Total commercial real estate | $ | 149 | $ | 384 | 0.35 | 1.01 |
(1) | Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option. |
Bank of America 2013 95 |
96 Bank of America 2013 |
Table 50 | Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity (1, 2) | |||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Nonperforming loans and leases, January 1 | $ | 3,224 | $ | 6,337 | ||||
Additions to nonperforming loans and leases: | ||||||||
New nonperforming loans and leases | 1,112 | 2,334 | ||||||
Advances | 30 | 85 | ||||||
Reductions to nonperforming loans and leases: | ||||||||
Paydowns | (1,342 | ) | (2,372 | ) | ||||
Sales | (498 | ) | (840 | ) | ||||
Returns to performing status (3) | (588 | ) | (808 | ) | ||||
Charge-offs | (549 | ) | (1,164 | ) | ||||
Transfers to foreclosed properties (4) | (54 | ) | (302 | ) | ||||
Transfers to loans held-for-sale | (26 | ) | (46 | ) | ||||
Total net reductions to nonperforming loans and leases | (1,915 | ) | (3,113 | ) | ||||
Total nonperforming loans and leases, December 31 | 1,309 | 3,224 | ||||||
Foreclosed properties, January 1 | 250 | 612 | ||||||
Additions to foreclosed properties: | ||||||||
New foreclosed properties (4) | 38 | 222 | ||||||
Reductions to foreclosed properties: | ||||||||
Sales | (169 | ) | (516 | ) | ||||
Write-downs | (29 | ) | (68 | ) | ||||
Total net reductions to foreclosed properties | (160 | ) | (362 | ) | ||||
Total foreclosed properties, December 31 | 90 | 250 | ||||||
Nonperforming commercial loans, leases and foreclosed properties, December 31 | $ | 1,399 | $ | 3,474 | ||||
Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases (5) | 0.34 | % | 0.93 | % | ||||
Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties (5) | 0.36 | 1.00 |
(1) | Balances do not include nonperforming LHFS of $296 million and $437 million at December 31, 2013 and 2012. |
(2) | Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming. |
(3) | Commercial loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected or when the loan otherwise becomes well-secured and is in the process of collection. TDRs are generally classified as performing after a sustained period of demonstrated payment performance. |
(4) | New foreclosed properties represents transfers of nonperforming loans to foreclosed properties net of charge-offs recorded during the first 90 days after transfer of a loan to foreclosed properties. |
(5) | Outstanding commercial loans exclude loans accounted for under the fair value option. |
Table 51 | Commercial Troubled Debt Restructurings | |||||||||||||||||||||||
December 31 | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
(Dollars in millions) | Total | Nonperforming | Performing | Total | Nonperforming | Performing | ||||||||||||||||||
U.S. commercial | $ | 1,318 | $ | 298 | $ | 1,020 | $ | 1,328 | $ | 565 | $ | 763 | ||||||||||||
Commercial real estate | 835 | 198 | 637 | 1,391 | 740 | 651 | ||||||||||||||||||
Non-U.S. commercial | 48 | 38 | 10 | 100 | 15 | 85 | ||||||||||||||||||
U.S. small business commercial | 88 | — | 88 | 202 | — | 202 | ||||||||||||||||||
Total commercial troubled debt restructurings | $ | 2,289 | $ | 534 | $ | 1,755 | $ | 3,021 | $ | 1,320 | $ | 1,701 |
Bank of America 2013 97 |
Table 52 | Commercial Credit Exposure by Industry (1) | |||||||||||||||
December 31 | ||||||||||||||||
Commercial Utilized | Total Commercial Committed | |||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Diversified financials | $ | 78,423 | $ | 66,102 | $ | 121,075 | $ | 99,574 | ||||||||
Real estate (2) | 54,336 | 47,479 | 76,418 | 65,639 | ||||||||||||
Retailing | 32,859 | 28,065 | 54,616 | 47,719 | ||||||||||||
Capital goods | 28,016 | 25,071 | 52,849 | 49,196 | ||||||||||||
Healthcare equipment and services | 30,828 | 29,396 | 49,063 | 45,488 | ||||||||||||
Government and public education | 40,253 | 41,441 | 48,322 | 50,277 | ||||||||||||
Banking | 39,649 | 39,829 | 45,095 | 44,822 | ||||||||||||
Materials | 22,384 | 21,809 | 42,699 | 40,493 | ||||||||||||
Energy | 19,739 | 17,661 | 41,156 | 38,441 | ||||||||||||
Consumer services | 21,080 | 23,093 | 34,217 | 36,367 | ||||||||||||
Commercial services and supplies | 19,770 | 19,020 | 32,007 | 30,257 | ||||||||||||
Food, beverage and tobacco | 14,437 | 14,738 | 30,541 | 37,344 | ||||||||||||
Utilities | 9,253 | 8,403 | 25,243 | 23,425 | ||||||||||||
Media | 13,070 | 13,091 | 22,655 | 21,705 | ||||||||||||
Transportation | 15,280 | 13,791 | 22,595 | 20,255 | ||||||||||||
Individuals and trusts | 14,864 | 13,916 | 18,681 | 17,801 | ||||||||||||
Software and services | 6,814 | 5,549 | 14,172 | 12,125 | ||||||||||||
Pharmaceuticals and biotechnology | 6,455 | 3,846 | 13,986 | 11,401 | ||||||||||||
Technology hardware and equipment | 6,166 | 5,111 | 12,733 | 11,101 | ||||||||||||
Insurance, including monolines | 5,926 | 8,491 | 12,203 | 14,117 | ||||||||||||
Telecommunication services | 4,541 | 4,008 | 11,423 | 10,276 | ||||||||||||
Consumer durables and apparel | 5,427 | 4,246 | 9,757 | 8,438 | ||||||||||||
Automobiles and components | 3,165 | 3,312 | 8,424 | 7,675 | ||||||||||||
Food and staples retailing | 3,950 | 3,528 | 7,909 | 6,838 | ||||||||||||
Religious and social organizations | 5,452 | 6,850 | 7,677 | 9,107 | ||||||||||||
Other | 5,357 | 3,881 | 8,309 | 7,124 | ||||||||||||
Total commercial credit exposure by industry | $ | 507,494 | $ | 471,727 | $ | 823,825 | $ | 767,005 | ||||||||
Net credit default protection purchased on total commitments (3) | $ | (8,085 | ) | $ | (14,657 | ) |
(1) | Includes U.S. small business commercial exposure. |
(2) | Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based on the borrowers’ or counterparties’ primary business activity using operating cash flows and primary source of repayment as key factors. |
(3) | Represents net notional credit protection purchased. For additional information, see Commercial Portfolio Credit Risk Management – Risk Mitigation on page 99. |
98 Bank of America 2013 |
Table 53 | Derivative Credit Exposures | |||||||
December 31 | ||||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Notional amount of monoline exposure | $ | 10,631 | $ | 13,547 | ||||
Mark-to-market | $ | 97 | $ | 898 | ||||
Counterparty credit valuation adjustment | (15 | ) | (118 | ) | ||||
Net mark-to-market | $ | 82 | $ | 780 | ||||
2013 | 2012 | |||||||
Gains from credit valuation changes | $ | 73 | $ | 213 |
Table 54 | Credit Derivative VaR Statistics | |||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Hedged credit exposure, average | $ | 44 | $ | 79 | ||||
Purchased credit protection, average | 19 | 52 | ||||||
Remaining, average (1) | 28 | 24 |
(1) | Reflects the diversification effect between net credit default protection hedging our credit exposure and the related credit exposure. |
Table 55 | Net Credit Default Protection by Maturity | |||||
December 31 | ||||||
2013 | 2012 | |||||
Less than or equal to one year | 35 | % | 21 | % | ||
Greater than one year and less than or equal to five years | 63 | 75 | ||||
Greater than five years | 2 | 4 | ||||
Total net credit default protection | 100 | % | 100 | % |
Table 56 | Net Credit Default Protection by Credit Exposure Debt Rating | |||||||||||||
December 31 | ||||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in millions) | Net Notional (1) | Percent of Total | Net Notional (1) | Percent of Total | ||||||||||
Ratings (2, 3) | ||||||||||||||
AAA | $ | — | — | % | $ | (120 | ) | 0.8 | % | |||||
AA | (7 | ) | 0.1 | (474 | ) | 3.2 | ||||||||
A | (2,560 | ) | 31.7 | (5,861 | ) | 40.0 | ||||||||
BBB | (3,880 | ) | 48.0 | (6,067 | ) | 41.4 | ||||||||
BB | (1,137 | ) | 14.1 | (1,101 | ) | 7.5 | ||||||||
B | (452 | ) | 5.6 | (937 | ) | 6.4 | ||||||||
CCC and below | (115 | ) | 1.4 | (247 | ) | 1.7 | ||||||||
NR (4) | 66 | (0.9 | ) | 150 | (1.0 | ) | ||||||||
Total net credit default protection | $ | (8,085 | ) | 100.0 | % | $ | (14,657 | ) | 100.0 | % |
(1) | Represents net credit default protection (purchased) sold. |
(2) | Ratings are refreshed on a quarterly basis. |
(3) | Ratings of BBB- or higher are considered to meet the definition of investment grade. |
(4) | NR is comprised of index positions held and any names that have not been rated. |
Bank of America 2013 99 |
Table 57 | Credit Derivatives | |||||||||||||||
December 31 | ||||||||||||||||
2013 | 2012 | |||||||||||||||
(Dollars in millions) | Contract/ Notional | Credit Risk | Contract/ Notional | Credit Risk | ||||||||||||
Purchased credit derivatives: | ||||||||||||||||
Credit default swaps | $ | 1,305,090 | $ | 6,042 | $ | 1,559,472 | $ | 8,987 | ||||||||
Total return swaps/other | 38,094 | 402 | 43,489 | 402 | ||||||||||||
Total purchased credit derivatives | $ | 1,343,184 | $ | 6,444 | $ | 1,602,961 | $ | 9,389 | ||||||||
Written credit derivatives: | ||||||||||||||||
Credit default swaps | $ | 1,265,380 | n/a | $ | 1,531,504 | n/a | ||||||||||
Total return swaps/other | 63,407 | n/a | 68,811 | n/a | ||||||||||||
Total written credit derivatives | $ | 1,328,787 | n/a | $ | 1,600,315 | n/a |
Table 58 | Credit Valuation Gains and Losses | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(Dollars in millions) | Gross | Hedge | Net | Gross | Hedge | Net | ||||||||||||||
Credit valuation gains (losses) | $ | 738 | $ | (834 | ) | $ | (96 | ) | $ | 1,022 | $ | (731 | ) | $ | 291 |
Table 59 | Total Non-U.S. Exposure by Region | |||||||
December 31 | ||||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Europe | $ | 133,303 | $ | 137,778 | ||||
Asia Pacific | 69,266 | 92,412 | ||||||
Latin America | 21,723 | 21,246 | ||||||
Middle East and Africa | 8,691 | 8,200 | ||||||
Other (1) | 20,866 | 22,014 | ||||||
Total | $ | 253,849 | $ | 281,650 |
(1) | Other includes Canada exposure of $19.8 billion and $20.3 billion at December 31, 2013 and 2012. |
100 Bank of America 2013 |
Table 60 | Top 20 Non-U.S. Countries Exposure | |||||||||||||||||||||||||||||||
(Dollars in millions) | Funded Loans and Loan Equivalents | Unfunded Loan Commitments | Net Counterparty Exposure | Securities/ Other Investments | Country Exposure at December 31 2013 | Hedges and Credit Default Protection | Net Country Exposure at December 31 2013 | Increase (Decrease) from December 31 2012 | ||||||||||||||||||||||||
United Kingdom | $ | 25,898 | $ | 12,046 | $ | 5,259 | $ | 4,812 | $ | 48,015 | $ | (4,429 | ) | $ | 43,586 | $ | (3,606 | ) | ||||||||||||||
Canada | 6,075 | 6,942 | 1,568 | 5,223 | 19,808 | (1,397 | ) | 18,411 | (565 | ) | ||||||||||||||||||||||
Brazil | 8,591 | 698 | 416 | 4,106 | 13,811 | (179 | ) | 13,632 | 1,129 | |||||||||||||||||||||||
China | 10,712 | 587 | 642 | 1,468 | 13,409 | (488 | ) | 12,921 | 3,734 | |||||||||||||||||||||||
Germany | 6,262 | 4,973 | 2,800 | 3,173 | 17,208 | (4,490 | ) | 12,718 | 1,698 | |||||||||||||||||||||||
India | 6,256 | 643 | 361 | 3,204 | 10,464 | (213 | ) | 10,251 | (3,467 | ) | ||||||||||||||||||||||
France | 1,914 | 6,790 | 976 | 5,228 | 14,908 | (4,745 | ) | 10,163 | (6,128 | ) | ||||||||||||||||||||||
Japan | 4,340 | 477 | 1,827 | 2,854 | 9,498 | (1,383 | ) | 8,115 | (15,724 | ) | ||||||||||||||||||||||
Australia | 4,374 | 2,136 | 565 | 2,048 | 9,123 | (1,126 | ) | 7,997 | (1,732 | ) | ||||||||||||||||||||||
Netherlands | 3,599 | 2,758 | 555 | 2,496 | 9,408 | (1,773 | ) | 7,635 | (3,047 | ) | ||||||||||||||||||||||
Russian Federation | 5,824 | 960 | 230 | 621 | 7,635 | (913 | ) | 6,722 | 1,810 | |||||||||||||||||||||||
South Korea | 3,771 | 811 | 566 | 2,236 | 7,384 | (949 | ) | 6,435 | (714 | ) | ||||||||||||||||||||||
Switzerland | 2,760 | 3,150 | 625 | 629 | 7,164 | (1,618 | ) | 5,546 | (274 | ) | ||||||||||||||||||||||
Hong Kong | 4,296 | 374 | 81 | 847 | 5,598 | (241 | ) | 5,357 | (86 | ) | ||||||||||||||||||||||
Italy | 3,096 | 3,573 | 2,328 | 763 | 9,760 | (4,558 | ) | 5,202 | 364 | |||||||||||||||||||||||
Taiwan | 2,614 | — | 132 | 1,385 | 4,131 | (59 | ) | 4,072 | 850 | |||||||||||||||||||||||
Mexico | 3,030 | 687 | 129 | 657 | 4,503 | (504 | ) | 3,999 | 340 | |||||||||||||||||||||||
Singapore | 2,401 | 138 | 157 | 1,280 | 3,976 | (147 | ) | 3,829 | (6,345 | ) | ||||||||||||||||||||||
Spain | 3,475 | 892 | 115 | 519 | 5,001 | (1,598 | ) | 3,403 | 749 | |||||||||||||||||||||||
Turkey | 2,354 | 75 | 10 | 271 | 2,710 | (17 | ) | 2,693 | 551 | |||||||||||||||||||||||
Total top 20 non-U.S. countries exposure | $ | 111,642 | $ | 48,710 | $ | 19,342 | $ | 43,820 | $ | 223,514 | $ | (30,827 | ) | $ | 192,687 | $ | (30,463 | ) |
Bank of America 2013 101 |
Table 61 | Select European Countries | |||||||||||||||||||||||||||||||
(Dollars in millions) | Funded Loans and Loan Equivalents | Unfunded Loan Commitments | Net Counterparty Exposure (1) | Securities/Other Investments (2) | Country Exposure at December 31 2013 | Hedges and Credit Default Protection (3) | Net Country Exposure at December 31 2013 | Increase (Decrease) from December 31 2012 | ||||||||||||||||||||||||
Greece | ||||||||||||||||||||||||||||||||
Sovereign | $ | — | $ | — | $ | — | $ | 58 | $ | 58 | $ | — | $ | 58 | $ | 56 | ||||||||||||||||
Financial institutions | — | — | — | 27 | 27 | (30 | ) | (3 | ) | 2 | ||||||||||||||||||||||
Corporates | 63 | 61 | 2 | 13 | 139 | (41 | ) | 98 | (211 | ) | ||||||||||||||||||||||
Total Greece | $ | 63 | $ | 61 | $ | 2 | $ | 98 | $ | 224 | $ | (71 | ) | $ | 153 | $ | (153 | ) | ||||||||||||||
Ireland | ||||||||||||||||||||||||||||||||
Sovereign | $ | 19 | $ | — | $ | 19 | $ | — | $ | 38 | $ | (43 | ) | $ | (5 | ) | $ | (63 | ) | |||||||||||||
Financial institutions | 812 | 10 | 124 | 44 | 990 | (10 | ) | 980 | 388 | |||||||||||||||||||||||
Corporates | 356 | 338 | 69 | 55 | 818 | (49 | ) | 769 | (160 | ) | ||||||||||||||||||||||
Total Ireland | $ | 1,187 | $ | 348 | $ | 212 | $ | 99 | $ | 1,846 | $ | (102 | ) | $ | 1,744 | $ | 165 | |||||||||||||||
Italy | ||||||||||||||||||||||||||||||||
Sovereign | $ | 2 | $ | — | $ | 1,611 | $ | 269 | $ | 1,882 | $ | (2,095 | ) | $ | (213 | ) | $ | (243 | ) | |||||||||||||
Financial institutions | 1,938 | 348 | 179 | 175 | 2,640 | (1,230 | ) | 1,410 | 333 | |||||||||||||||||||||||
Corporates | 1,156 | 3,225 | 538 | 319 | 5,238 | (1,233 | ) | 4,005 | 274 | |||||||||||||||||||||||
Total Italy | $ | 3,096 | $ | 3,573 | $ | 2,328 | $ | 763 | $ | 9,760 | $ | (4,558 | ) | $ | 5,202 | $ | 364 | |||||||||||||||
Portugal | ||||||||||||||||||||||||||||||||
Sovereign | $ | — | $ | — | $ | 15 | $ | 35 | $ | 50 | $ | (27 | ) | $ | 23 | $ | 60 | |||||||||||||||
Financial institutions | 4 | — | 2 | — | 6 | (108 | ) | (102 | ) | (140 | ) | |||||||||||||||||||||
Corporates | 90 | 103 | — | 40 | 233 | (292 | ) | (59 | ) | (144 | ) | |||||||||||||||||||||
Total Portugal | $ | 94 | $ | 103 | $ | 17 | $ | 75 | $ | 289 | $ | (427 | ) | $ | (138 | ) | $ | (224 | ) | |||||||||||||
Spain | ||||||||||||||||||||||||||||||||
Sovereign | $ | 37 | $ | — | $ | 63 | $ | 2 | $ | 102 | $ | (163 | ) | $ | (61 | ) | $ | (288 | ) | |||||||||||||
Financial institutions | 1,223 | 1 | 14 | 131 | 1,369 | (421 | ) | 948 | 790 | |||||||||||||||||||||||
Corporates | 2,215 | 891 | 38 | 386 | 3,530 | (1,014 | ) | 2,516 | 247 | |||||||||||||||||||||||
Total Spain | $ | 3,475 | $ | 892 | $ | 115 | $ | 519 | $ | 5,001 | $ | (1,598 | ) | $ | 3,403 | $ | 749 | |||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Sovereign | $ | 58 | $ | — | $ | 1,708 | $ | 364 | $ | 2,130 | $ | (2,328 | ) | $ | (198 | ) | $ | (478 | ) | |||||||||||||
Financial institutions | 3,977 | 359 | 319 | 377 | 5,032 | (1,799 | ) | 3,233 | 1,373 | |||||||||||||||||||||||
Corporates | 3,880 | 4,618 | 647 | 813 | 9,958 | (2,629 | ) | 7,329 | 6 | |||||||||||||||||||||||
Total select European exposure | $ | 7,915 | $ | 4,977 | $ | 2,674 | $ | 1,554 | $ | 17,120 | $ | (6,756 | ) | $ | 10,364 | $ | 901 |
(1) | Net counterparty exposure includes the fair value of derivatives, including the counterparty risk associated with CDS, and secured financing transactions. Derivative exposures are presented net of $1.1 billion in collateral, which is predominantly cash, pledged under legally enforceable master netting agreements. Secured financing transaction exposures are presented net of eligible cash or securities pledged as collateral. The notional amount of reverse repurchase transactions was $4.0 billion. Counterparty exposure is not presented net of hedges or credit default protection. |
(2) | Long securities exposures are netted on a single-name basis to, but not below, zero by short exposures of $4.9 billion and net CDS purchased of $1.9 billion, consisting of $1.5 billion of net single-name CDS purchased and $406 million of net indexed and tranched CDS purchased. |
(3) | Represents credit default protection purchased, net of credit default protection sold, which is used to mitigate the Corporation’s risk to country exposures as listed, including $4.5 billion, consisting of $3.0 billion in net single-name CDS purchased and $1.5 billion in net indexed and tranched CDS purchased, to hedge loans and securities, $2.3 billion in additional credit default protection purchased to hedge derivative assets and $127 million in other short exposures. |
102 Bank of America 2013 |
Table 62 | Single-Name CDS with Reference Assets in Greece, Ireland, Italy, Portugal and Spain (1) | |||||||||||||||
December 31, 2013 | ||||||||||||||||
Notional | Fair Value | |||||||||||||||
(Dollars in billions) | Purchased | Sold | Purchased | Sold | ||||||||||||
Greece | ||||||||||||||||
Aggregate | $ | 1.4 | $ | 1.4 | $ | 0.1 | $ | 0.1 | ||||||||
After legally netting (2) | 0.3 | 0.3 | — | — | ||||||||||||
Ireland | ||||||||||||||||
Aggregate | 2.4 | 2.2 | 0.1 | 0.1 | ||||||||||||
After legally netting (2) | 0.9 | 0.7 | 0.1 | — | ||||||||||||
Italy | ||||||||||||||||
Aggregate | 53.8 | 47.9 | 2.5 | 1.7 | ||||||||||||
After legally netting (2) | 13.0 | 7.0 | 1.1 | 0.4 | ||||||||||||
Portugal | ||||||||||||||||
Aggregate | 7.5 | 7.5 | 0.4 | 0.4 | ||||||||||||
After legally netting (2) | 1.2 | 1.3 | 0.1 | 0.1 | ||||||||||||
Spain | ||||||||||||||||
Aggregate | 20.7 | 20.8 | 0.6 | 0.6 | ||||||||||||
After legally netting (2) | 3.2 | 3.2 | 0.1 | 0.1 |
(1) | The majority of our CDS contracts on reference assets in Greece, Ireland, Italy, Portugal and Spain are primarily with non-Eurozone counterparties. |
(2) | Amounts listed are after consideration of legally enforceable counterparty master netting agreements. |
Table 63 | Total Cross-border Exposure Exceeding One Percent of Total Assets | |||||||
United Kingdom | ||||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Public sector | $ | 6 | $ | 95 | ||||
Banks | 7,027 | 5,656 | ||||||
Private sector | 32,466 | 31,595 | ||||||
Cross-border exposure | $ | 39,499 | $ | 37,346 | ||||
Exposure as a percentage of total assets | 1.88 | % | 1.69 | % |
Bank of America 2013 103 |
104 Bank of America 2013 |
Bank of America 2013 105 |
Table 64 | Allowance for Credit Losses | |||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Allowance for loan and lease losses, January 1 | $ | 24,179 | $ | 33,783 | ||||
Loans and leases charged off | ||||||||
Residential mortgage | (1,508 | ) | (3,276 | ) | ||||
Home equity | (2,258 | ) | (4,573 | ) | ||||
U.S. credit card | (4,004 | ) | (5,360 | ) | ||||
Non-U.S. credit card | (508 | ) | (835 | ) | ||||
Direct/Indirect consumer | (710 | ) | (1,258 | ) | ||||
Other consumer | (273 | ) | (274 | ) | ||||
Total consumer charge-offs | (9,261 | ) | (15,576 | ) | ||||
U.S. commercial (1) | (774 | ) | (1,309 | ) | ||||
Commercial real estate | (251 | ) | (719 | ) | ||||
Commercial lease financing | (4 | ) | (32 | ) | ||||
Non-U.S. commercial | (79 | ) | (36 | ) | ||||
Total commercial charge-offs | (1,108 | ) | (2,096 | ) | ||||
Total loans and leases charged off | (10,369 | ) | (17,672 | ) | ||||
Recoveries of loans and leases previously charged off | ||||||||
Residential mortgage | 424 | 165 | ||||||
Home equity | 455 | 331 | ||||||
U.S. credit card | 628 | 728 | ||||||
Non-U.S. credit card | 109 | 254 | ||||||
Direct/Indirect consumer | 365 | 495 | ||||||
Other consumer | 39 | 42 | ||||||
Total consumer recoveries | 2,020 | 2,015 | ||||||
U.S. commercial (2) | 287 | 368 | ||||||
Commercial real estate | 102 | 335 | ||||||
Commercial lease financing | 29 | 38 | ||||||
Non-U.S. commercial | 34 | 8 | ||||||
Total commercial recoveries | 452 | 749 | ||||||
Total recoveries of loans and leases previously charged off | 2,472 | 2,764 | ||||||
Net charge-offs | (7,897 | ) | (14,908 | ) | ||||
Write-offs of PCI loans | (2,336 | ) | (2,820 | ) | ||||
Provision for loan and lease losses | 3,574 | 8,310 | ||||||
Other (3) | (92 | ) | (186 | ) | ||||
Allowance for loan and lease losses, December 31 | 17,428 | 24,179 | ||||||
Reserve for unfunded lending commitments, January 1 | 513 | 714 | ||||||
Provision for unfunded lending commitments | (18 | ) | (141 | ) | ||||
Other (4) | (11 | ) | (60 | ) | ||||
Reserve for unfunded lending commitments, December 31 | 484 | 513 | ||||||
Allowance for credit losses, December 31 | $ | 17,912 | $ | 24,692 |
(1) | Includes U.S. small business commercial charge-offs of $457 million and $799 million in 2013 and 2012. |
(2) | Includes U.S. small business commercial recoveries of $98 million and $100 million in 2013 and 2012. |
(3) | Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, and foreign currency translation adjustments. |
(4) | Primarily represents accretion of the Merrill Lynch purchase accounting adjustment. |
106 Bank of America 2013 |
Table 64 | Allowance for Credit Losses (continued) | |||||||
(Dollars in millions) | 2013 | 2012 | ||||||
Loan and allowance ratios: | ||||||||
Loans and leases outstanding at December 31 (5) | $ | 918,191 | $ | 898,817 | ||||
Allowance for loan and lease losses as a percentage of total loans and leases and outstanding at December 31 (5) | 1.90 | % | 2.69 | % | ||||
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31 (6) | 2.53 | 3.81 | ||||||
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at December 31 (7) | 1.03 | 0.90 | ||||||
Average loans and leases outstanding (5) | $ | 909,127 | $ | 890,337 | ||||
Net charge-offs as a percentage of average loans and leases outstanding (5, 8) | 0.87 | % | 1.67 | % | ||||
Net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding (5) | 1.13 | 1.99 | ||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31 (5, 9) | 102 | 107 | ||||||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs (8) | 2.21 | 1.62 | ||||||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs and PCI write-offs | 1.70 | 1.36 | ||||||
Amounts included in the allowance for loan and lease losses that are excluded from nonperforming loans and leases at December 31 (10) | $ | 7,680 | $ | 12,021 | ||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding amounts included in the allowance for loan and lease losses that are excluded from nonperforming loans and leases at December 31 (10) | 57 | % | 54 | % | ||||
Loan and allowance ratios excluding PCI loans and the related valuation allowance: (11) | ||||||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31 (5) | 1.67 | % | 2.14 | % | ||||
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31 (6) | 2.17 | 2.95 | ||||||
Net charge-offs as a percentage of average loans and leases outstanding (5) | 0.90 | 1.73 | ||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31 (5, 9) | 87 | 82 | ||||||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs | 1.89 | 1.25 |
(5) | Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option, which were $10.0 billion and $9.0 billion at December 31, 2013 and 2012. Average loans accounted for under the fair value option were $9.5 billion and $8.4 billion in 2013 and 2012. |
(6) | Excludes consumer loans accounted for under the fair value option of $2.2 billion and $1.0 billion at December 31, 2013 and 2012. |
(7) | Excludes commercial loans accounted for under the fair value option of $7.9 billion and $8.0 billion at December 31, 2013 and 2012. |
(8) | Net charge-offs exclude $2.3 billion and $2.8 billion of write-offs in the PCI loan portfolio in 2013 and 2012. These write-offs decreased the PCI valuation allowance included as part of the allowance for loan and lease losses. For more information on PCI write-offs, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page 85. |
(9) | For more information on our definition of nonperforming loans, see pages 89 and 96. |
(10) | Primarily includes amounts allocated to U.S. credit card and unsecured consumer lending portfolios in CBB, PCI loans and the non-U.S. credit card portfolio in All Other. |
(11) | For more information on the PCI loan portfolio and the valuation allowance for PCI loans, see Note 4 – Outstanding Loans and Leases and Note 5 – Allowance for Credit Losses to the Consolidated Financial Statements. |
Table 65 | Allocation of the Allowance for Credit Losses by Product Type | |||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
(Dollars in millions) | Amount | Percent of Total | Percent of Loans and Leases Outstanding (1) | Amount | Percent of Total | Percent of Loans and Leases Outstanding (1) | ||||||||||||||
Allowance for loan and lease losses | ||||||||||||||||||||
Residential mortgage | $ | 4,084 | 23.43 | % | 1.65 | % | $ | 7,088 | 29.31 | % | 2.80 | % | ||||||||
Home equity | 4,434 | 25.44 | 4.73 | 7,845 | 32.45 | 7.26 | ||||||||||||||
U.S. credit card | 3,930 | 22.55 | 4.26 | 4,718 | 19.51 | 4.97 | ||||||||||||||
Non-U.S. credit card | 459 | 2.63 | 3.98 | 600 | 2.48 | 5.13 | ||||||||||||||
Direct/Indirect consumer | 417 | 2.39 | 0.51 | 718 | 2.97 | 0.86 | ||||||||||||||
Other consumer | 99 | 0.58 | 5.02 | 104 | 0.43 | 6.40 | ||||||||||||||
Total consumer | 13,423 | 77.02 | 2.53 | 21,073 | 87.15 | 3.81 | ||||||||||||||
U.S. commercial (2) | 2,394 | 13.74 | 1.06 | 1,885 | 7.80 | 0.90 | ||||||||||||||
Commercial real estate | 917 | 5.26 | 1.91 | 846 | 3.50 | 2.19 | ||||||||||||||
Commercial lease financing | 118 | 0.68 | 0.47 | 78 | 0.32 | 0.33 | ||||||||||||||
Non-U.S. commercial | 576 | 3.30 | 0.64 | 297 | 1.23 | 0.40 | ||||||||||||||
Total commercial (3) | 4,005 | 22.98 | 1.03 | 3,106 | 12.85 | 0.90 | ||||||||||||||
Allowance for loan and lease losses | 17,428 | 100.00 | % | 1.90 | 24,179 | 100.00 | % | 2.69 | ||||||||||||
Reserve for unfunded lending commitments | 484 | 513 | ||||||||||||||||||
Allowance for credit losses (4) | $ | 17,912 | $ | 24,692 |
(1) | Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option. Consumer loans accounted for under the fair value option included residential mortgage loans of $2.0 billion and $1.0 billion and home equity loans of $147 million and $0 at December 31, 2013 and 2012. Commercial loans accounted for under the fair value option included U.S. commercial loans of $1.5 billion and $2.3 billion and non-U.S. commercial loans of $6.4 billion and $5.7 billion at December 31, 2013 and 2012. |
(2) | Includes allowance for loan and lease losses for U.S. small business commercial loans of $462 million and $642 million at December 31, 2013 and 2012. |
(3) | Includes allowance for loan and lease losses for impaired commercial loans of $277 million and $475 million at December 31, 2013 and 2012. |
(4) | Includes $2.5 billion and $5.5 billion of valuation allowance included as part of the allowance for credit losses related to PCI loans at December 31, 2013 and 2012. |
Bank of America 2013 107 |
108 Bank of America 2013 |
Bank of America 2013 109 |
Table 66 | Market Risk VaR for Trading Activities | |||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
(Dollars in millions) | Year End | Average | High (1) | Low (1) | Year End | Average | High (1) | Low (1) | ||||||||||||||||||||||||
Foreign exchange | $ | 16 | $ | 20 | $ | 42 | $ | 12 | $ | 26 | $ | 21 | $ | 34 | $ | 12 | ||||||||||||||||
Interest rate | 32 | 34 | 66 | 20 | 49 | 46 | 75 | 30 | ||||||||||||||||||||||||
Credit | 66 | 53 | 72 | 33 | 73 | 50 | 81 | 31 | ||||||||||||||||||||||||
Real estate/mortgage | 35 | 28 | 44 | 20 | 37 | 34 | 45 | 28 | ||||||||||||||||||||||||
Equities | 25 | 29 | 56 | 17 | 27 | 28 | 55 | 15 | ||||||||||||||||||||||||
Commodities | 7 | 12 | 18 | 7 | 13 | 13 | 18 | 7 | ||||||||||||||||||||||||
Portfolio diversification | (82 | ) | (107 | ) | — | — | (103 | ) | (117 | ) | — | — | ||||||||||||||||||||
Total market-based trading portfolio | $ | 99 | $ | 69 | $ | 115 | $ | 42 | $ | 122 | $ | 75 | $ | 128 | $ | 42 |
(1) | The high and low for the total portfolio may have occurred on different trading days than the high and low for the individual components. Therefore the amount of portfolio diversification, which is the difference between the total portfolio and the sum of the individual components, is not relevant. |
110 Bank of America 2013 |
Table 67 | Average Market Risk VaR for Trading Activities – Additional VaR Statistics | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(Dollars in millions) | 99 percent | 95 percent | 99 percent | 95 percent (1) | |||||||||||||
Foreign exchange | $ | 20 | $ | 13 | $ | 21 | $ | 12 | |||||||||
Interest rate | 34 | 20 | 46 | 26 | |||||||||||||
Credit | 53 | 23 | 50 | 24 | |||||||||||||
Real estate/mortgage | 28 | 17 | 34 | 18 | |||||||||||||
Equities | 29 | 16 | 28 | 16 | |||||||||||||
Commodities | 12 | 7 | 13 | 7 | |||||||||||||
Portfolio diversification | (107 | ) | (63 | ) | (117 | ) | (65 | ) | |||||||||
Total market-based trading portfolio | $ | 69 | $ | 33 | $ | 75 | $ | 38 |
(1) | Due to system constraints, the 95 percent VaR for the three months ended March 31, 2012 is not available and therefore average 95 percent VaR for that period has been estimated. It is not expected that this estimation materially affected the average 95 percent VaR for 2012. |
Bank of America 2013 111 |
112 Bank of America 2013 |
Table 68 | Forward Rates | ||||||||
December 31, 2013 | |||||||||
Federal Funds | Three-Month LIBOR | 10-Year Swap | |||||||
Spot rates | 0.25 | % | 0.25 | % | 3.09 | % | |||
12-month forward rates | 0.25 | 0.43 | 3.52 | ||||||
December 31, 2012 | |||||||||
Spot rates | 0.25 | % | 0.31 | % | 1.84 | % | |||
12-month forward rates | 0.25 | 0.37 | 2.10 |
Table 69 | Estimated Net Interest Income Excluding Trading-related Net Interest Income | |||||||||||||
(Dollars in millions) | Short Rate (bps) | Long Rate (bps) | December 31 | |||||||||||
Curve Change | 2013 | 2012 | ||||||||||||
Parallel Shifts | ||||||||||||||
+100 bps instantaneous shift | +100 | +100 | $ | 3,229 | $ | 4,350 | ||||||||
-50 bps instantaneous shift | --50 | --50 | (1,616 | ) | (2,322 | ) | ||||||||
Flatteners | ||||||||||||||
Short end instantaneous change | +100 | — | 2,210 | 2,130 | ||||||||||
Long end instantaneous change | — | --50 | (641 | ) | (1,669 | ) | ||||||||
Steepeners | ||||||||||||||
Short end instantaneous change | --50 | — | (937 | ) | (648 | ) | ||||||||
Long end instantaneous change | — | +100 | 1,066 | 2,238 |
Bank of America 2013 113 |
114 Bank of America 2013 |
Table 70 | Asset and Liability Management Interest Rate and Foreign Exchange Contracts | ||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||
Expected Maturity | |||||||||||||||||||||||||||||||||||
(Dollars in millions, average estimated duration in years) | Fair Value | Total | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Average Estimated Duration | ||||||||||||||||||||||||||
Receive-fixed interest rate swaps (1, 2) | $ | 5,074 | 4.67 | ||||||||||||||||||||||||||||||||
Notional amount | $ | 109,539 | $ | 7,604 | $ | 12,873 | $ | 15,339 | $ | 19,803 | $ | 20,733 | $ | 33,187 | |||||||||||||||||||||
Weighted-average fixed-rate | 3.42 | % | 3.79 | % | 3.32 | % | 3.12 | % | 3.87 | % | 3.34 | % | 3.29 | % | |||||||||||||||||||||
Pay-fixed interest rate swaps (1, 2) | 427 | 5.92 | |||||||||||||||||||||||||||||||||
Notional amount | $ | 28,418 | $ | 4,645 | $ | 520 | $ | 1,025 | $ | 1,527 | $ | 8,529 | $ | 12,172 | |||||||||||||||||||||
Weighted-average fixed-rate | 1.87 | % | 0.54 | % | 2.30 | % | 1.65 | % | 1.84 | % | 1.52 | % | 2.62 | % | |||||||||||||||||||||
Same-currency basis swaps (3) | 6 | ||||||||||||||||||||||||||||||||||
Notional amount | $ | 145,184 | $ | 47,529 | $ | 25,171 | $ | 28,157 | $ | 15,283 | $ | 9,156 | $ | 19,888 | |||||||||||||||||||||
Foreign exchange basis swaps (2, 4, 5) | 1,208 | ||||||||||||||||||||||||||||||||||
Notional amount | 205,560 | 39,151 | 37,298 | 27,293 | 24,304 | 14,517 | 62,997 | ||||||||||||||||||||||||||||
Option products (6) | 21 | ||||||||||||||||||||||||||||||||||
Notional amount (7) | (641 | ) | (649 | ) | (11 | ) | — | — | — | 19 | |||||||||||||||||||||||||
Foreign exchange contracts (2, 5, 8) | 1,619 | ||||||||||||||||||||||||||||||||||
Notional amount (7) | (19,515 | ) | (35,991 | ) | 1,873 | (669 | ) | 7,224 | 2,026 | 6,022 | |||||||||||||||||||||||||
Futures and forward rate contracts | 147 | ||||||||||||||||||||||||||||||||||
Notional amount (7) | (19,427 | ) | (19,427 | ) | — | — | — | — | — | ||||||||||||||||||||||||||
Net ALM contracts | $ | 8,502 | |||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||
Expected Maturity | |||||||||||||||||||||||||||||||||||
(Dollars in millions, average estimated duration in years) | Fair Value | Total | 2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Average Estimated Duration | ||||||||||||||||||||||||||
Receive-fixed interest rate swaps (1, 2) | $ | 10,491 | 5.30 | ||||||||||||||||||||||||||||||||
Notional amount | $ | 85,899 | $ | 7,175 | $ | 7,604 | $ | 11,785 | $ | 11,362 | $ | 19,693 | $ | 28,280 | |||||||||||||||||||||
Weighted-average fixed-rate | 4.12 | % | 4.06 | % | 3.79 | % | 3.56 | % | 3.98 | % | 3.89 | % | 4.67 | % | |||||||||||||||||||||
Pay-fixed interest rate swaps (1, 2) | (4,903 | ) | 15.47 | ||||||||||||||||||||||||||||||||
Notional amount | $ | 26,548 | $ | 27 | $ | 3,989 | $ | 520 | $ | 1,025 | $ | 1,527 | $ | 19,460 | |||||||||||||||||||||
Weighted-average fixed-rate | 3.09 | % | 6.91 | % | 0.79 | % | 2.30 | % | 1.65 | % | 1.84 | % | 3.75 | % | |||||||||||||||||||||
Same-currency basis swaps (3) | 45 | ||||||||||||||||||||||||||||||||||
Notional amount | $ | 213,458 | $ | 82,716 | $ | 54,534 | $ | 19,995 | $ | 20,361 | $ | 13,542 | $ | 22,310 | |||||||||||||||||||||
Foreign exchange basis swaps (2, 4, 5) | 431 | ||||||||||||||||||||||||||||||||||
Notional amount | 191,925 | 32,590 | 44,732 | 27,569 | 15,965 | 20,134 | 50,935 | ||||||||||||||||||||||||||||
Option products (6) | (147 | ) | |||||||||||||||||||||||||||||||||
Notional amount (7) | 4,218 | 4,000 | — | — | — | — | 218 | ||||||||||||||||||||||||||||
Foreign exchange contracts (2, 5, 8) | 5,636 | ||||||||||||||||||||||||||||||||||
Notional amount (7) | (1,200 | ) | (23,438 | ) | 8,615 | 1,303 | 582 | 6,183 | 5,555 | ||||||||||||||||||||||||||
Futures and forward rate contracts | 24 | ||||||||||||||||||||||||||||||||||
Notional amount (7) | (11,595 | ) | (11,595 | ) | — | — | — | — | — | ||||||||||||||||||||||||||
Net ALM contracts | $ | 11,577 |
(1) | At December 31, 2013, the receive-fixed interest rate swap notional amounts that represent forward starting swaps and which will not be effective until their respective contractual start dates totaled $600 million compared to none at December 31, 2012. The forward starting pay-fixed swap positions at December 31, 2013 and 2012 were $1.1 billion and $520 million. |
(2) | Does not include basis adjustments on either fixed-rate debt issued by the Corporation or AFS debt securities, which are hedged using derivatives designated as fair value hedging instruments, that substantially offset the fair values of these derivatives. |
(3) | At December 31, 2013 and 2012, the notional amount of same-currency basis swaps was comprised of $145.2 billion and $213.5 billion in both foreign currency and U.S. dollar-denominated basis swaps in which both sides of the swap are in the same currency. |
(4) | Foreign exchange basis swaps consisted of cross-currency variable interest rate swaps used separately or in conjunction with receive-fixed interest rate swaps. |
(5) | Does not include foreign currency translation adjustments on certain non-U.S. debt issued by the Corporation that substantially offset the fair values of these derivatives. |
(6) | The notional amount of option products of $(641) million at December 31, 2013 was comprised of $(2.0) billion in swaptions, $1.4 billion in foreign exchange options and $19 million in purchased caps/floors. Option products of $4.2 billion at December 31, 2012 were comprised of $4.2 billion in swaptions and $18 million in purchased caps/floors. |
(7) | Reflects the net of long and short positions. Amounts shown as negative reflect a net short position. |
(8) | The notional amount of foreign exchange contracts of $(19.5) billion at December 31, 2013 was comprised of $36.1 billion in foreign currency-denominated and cross-currency receive-fixed swaps, $(49.3) billion in net foreign currency forward rate contracts, $(10.3) billion in foreign currency-denominated pay-fixed swaps and $4.0 billion in foreign currency futures contracts. Foreign exchange contracts of $(1.2) billion at December 31, 2012 were comprised of $41.9 billion in foreign currency-denominated and cross-currency receive-fixed swaps, $(10.5) billion in foreign currency-denominated pay-fixed swaps and $(32.6) billion in net foreign currency forward rate contracts. |
Bank of America 2013 115 |
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Table 71 | Level 3 Asset and Liability Summary | |||||||||||||||||||
December 31 | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(Dollars in millions) | Level 3 Fair Value | As a % of Total Level 3 Assets | As a % of Total Assets | Level 3 Fair Value | As a % of Total Level 3 Assets | As a % of Total Assets | ||||||||||||||
Trading account assets | $ | 9,044 | 28.46 | % | 0.43 | % | $ | 9,559 | 26.13 | % | 0.43 | % | ||||||||
Derivative assets | 7,277 | 22.90 | 0.35 | 8,073 | 22.06 | 0.37 | ||||||||||||||
AFS debt securities | 4,760 | 14.98 | 0.23 | 5,091 | 13.91 | 0.23 | ||||||||||||||
All other Level 3 assets at fair value | 10,697 | 33.66 | 0.50 | 13,865 | 37.90 | 0.63 | ||||||||||||||
Total Level 3 assets at fair value (1) | $ | 31,778 | 100.00 | % | 1.51 | % | $ | 36,588 | 100.00 | % | 1.66 | % | ||||||||
Level 3 Fair Value | As a % of Total Level 3 Liabilities | As a % of Total Liabilities | Level 3 Fair Value | As a % of Total Level 3 Liabilities | As a % of Total Liabilities | |||||||||||||||
Derivative liabilities | $ | 7,301 | 78.20 | % | 0.39 | % | $ | 6,605 | 73.51 | % | 0.33 | % | ||||||||
Long-term debt | 1,990 | 21.32 | 0.11 | 2,301 | 25.61 | 0.12 | ||||||||||||||
All other Level 3 liabilities at fair value | 45 | 0.48 | — | 79 | 0.88 | 0.01 | ||||||||||||||
Total Level 3 liabilities at fair value (1) | $ | 9,336 | 100.00 | % | 0.50 | % | $ | 8,985 | 100.00 | % | 0.46 | % |
(1) | Level 3 total assets and liabilities are shown before the impact of cash collateral and counterparty netting related to our derivative positions. |
120 Bank of America 2013 |
Bank of America 2013 121 |
122 Bank of America 2013 |
Bank of America 2013 123 |
| Card income decreased $1.1 billion primarily driven by the implementation of interchange fee rules under the Durbin Amendment, which became effective on October 1, 2011. |
| Service charges decreased $494 million primarily due to the impact of lower accretion on acquired portfolios and reduced reimbursed merchant processing fees. |
| Investment and brokerage services income decreased $433 million primarily driven by lower transactional volumes. |
| Equity investment income decreased $5.3 billion. The results for 2012 included $1.6 billion of gains which primarily related to the sales of certain equity and strategic investments. The results for 2011 included $6.5 billion of gains on the sale of CCB shares, $836 million of CCB dividends and a $377 million gain on the sale of our investment in BlackRock, Inc., partially offset by $1.1 billion of impairment charges on our merchant services joint venture. |
| Trading account profits decreased $827 million. Net DVA losses on derivatives were $2.5 billion in 2012 compared to net DVA gains of $1.0 billion in 2011. Excluding net DVA, trading account profits increased $2.7 billion in 2012 compared to 2011 due to an improved market environment. |
| Mortgage banking income increased $13.6 billion primarily due to an $11.7 billion decrease in the representations and warranties provision. The 2012 results included $2.5 billion in provision related to the FNMA Settlement, a $500 million provision for obligations to FNMA related to MI rescissions, partially offset by an increase in servicing income of $1.1 billion due to improved MSR results. The 2011 results included $15.6 |
| Other income decreased $10.2 billion due to negative fair value adjustments on our structured liabilities of $5.1 billion compared to positive fair value adjustments of $3.3 billion in 2011. In addition, 2012 included $1.6 billion of gains related to debt repurchases and exchanges of trust preferred securities compared to gains of $1.2 billion in the prior year. |
124 Bank of America 2013 |
Bank of America 2013 125 |
Table of Contents | ||
Page | ||
126 Bank of America 2013 |
Table I Average Balances and Interest Rates – FTE Basis | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
(Dollars in millions) | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||||||||
Earning assets | ||||||||||||||||||||||||||||||||
Time deposits placed and other short-term investments (1) | $ | 16,066 | $ | 187 | 1.16 | % | $ | 22,888 | $ | 237 | 1.03 | % | $ | 28,242 | $ | 366 | 1.29 | % | ||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 224,331 | 1,229 | 0.55 | 236,042 | 1,502 | 0.64 | 245,069 | 2,147 | 0.88 | |||||||||||||||||||||||
Trading account assets | 168,998 | 4,879 | 2.89 | 170,647 | 5,306 | 3.11 | 181,996 | 6,142 | 3.37 | |||||||||||||||||||||||
Debt securities (2) | 337,953 | 9,779 | 2.89 | 353,577 | 8,931 | 2.53 | 342,650 | 9,606 | 2.80 | |||||||||||||||||||||||
Loans and leases (3): | ||||||||||||||||||||||||||||||||
Residential mortgage (4) | 256,531 | 9,319 | 3.63 | 264,164 | 9,845 | 3.73 | 280,112 | 11,588 | 4.14 | |||||||||||||||||||||||
Home equity | 100,267 | 3,831 | 3.82 | 117,339 | 4,426 | 3.77 | 130,945 | 5,050 | 3.86 | |||||||||||||||||||||||
U.S. credit card | 90,369 | 8,792 | 9.73 | 94,863 | 9,504 | 10.02 | 105,478 | 10,808 | 10.25 | |||||||||||||||||||||||
Non-U.S. credit card | 10,861 | 1,271 | 11.70 | 13,549 | 1,572 | 11.60 | 24,049 | 2,656 | 11.04 | |||||||||||||||||||||||
Direct/Indirect consumer (5) | 82,907 | 2,370 | 2.86 | 84,424 | 2,900 | 3.44 | 90,163 | 3,716 | 4.12 | |||||||||||||||||||||||
Other consumer (6) | 1,805 | 72 | 4.02 | 2,359 | 140 | 5.95 | 2,760 | 176 | 6.39 | |||||||||||||||||||||||
Total consumer | 542,740 | 25,655 | 4.73 | 576,698 | 28,387 | 4.92 | 633,507 | 33,994 | 5.37 | |||||||||||||||||||||||
U.S. commercial | 218,875 | 6,811 | 3.11 | 201,352 | 6,979 | 3.47 | 192,524 | 7,360 | 3.82 | |||||||||||||||||||||||
Commercial real estate (7) | 42,346 | 1,392 | 3.29 | 37,982 | 1,332 | 3.51 | 44,406 | 1,522 | 3.43 | |||||||||||||||||||||||
Commercial lease financing | 23,865 | 851 | 3.56 | 21,879 | 874 | 4.00 | 21,383 | 1,001 | 4.68 | |||||||||||||||||||||||
Non-U.S. commercial | 90,815 | 2,082 | 2.29 | 60,857 | 1,594 | 2.62 | 46,276 | 1,382 | 2.99 | |||||||||||||||||||||||
Total commercial | 375,901 | 11,136 | 2.96 | 322,070 | 10,779 | 3.35 | 304,589 | 11,265 | 3.70 | |||||||||||||||||||||||
Total loans and leases | 918,641 | 36,791 | 4.00 | 898,768 | 39,166 | 4.36 | 938,096 | 45,259 | 4.82 | |||||||||||||||||||||||
Other earning assets | 80,985 | 2,832 | 3.50 | 88,047 | 2,970 | 3.36 | 98,606 | 3,502 | 3.55 | |||||||||||||||||||||||
Total earning assets (8) | 1,746,974 | 55,697 | 3.19 | 1,769,969 | 58,112 | 3.28 | 1,834,659 | 67,022 | 3.65 | |||||||||||||||||||||||
Cash and cash equivalents (1) | 109,014 | 182 | 115,739 | 189 | 112,616 | 186 | ||||||||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 307,525 | 305,648 | 349,047 | |||||||||||||||||||||||||||||
Total assets | $ | 2,163,513 | $ | 2,191,356 | $ | 2,296,322 | ||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||
U.S. interest-bearing deposits: | ||||||||||||||||||||||||||||||||
Savings | $ | 43,868 | $ | 22 | 0.05 | % | $ | 41,453 | $ | 45 | 0.11 | % | $ | 40,364 | $ | 100 | 0.25 | % | ||||||||||||||
NOW and money market deposit accounts | 506,082 | 413 | 0.08 | 466,096 | 693 | 0.15 | 470,519 | 1,060 | 0.23 | |||||||||||||||||||||||
Consumer CDs and IRAs | 82,963 | 481 | 0.58 | 95,559 | 693 | 0.73 | 110,922 | 1,045 | 0.94 | |||||||||||||||||||||||
Negotiable CDs, public funds and other deposits | 23,504 | 106 | 0.45 | 20,928 | 128 | 0.61 | 17,227 | 120 | 0.70 | |||||||||||||||||||||||
Total U.S. interest-bearing deposits | 656,417 | 1,022 | 0.16 | 624,036 | 1,559 | 0.25 | 639,032 | 2,325 | 0.36 | |||||||||||||||||||||||
Non-U.S. interest-bearing deposits: | ||||||||||||||||||||||||||||||||
Banks located in non-U.S. countries | 12,419 | 70 | 0.56 | 14,737 | 94 | 0.64 | 20,782 | 138 | 0.66 | |||||||||||||||||||||||
Governments and official institutions | 1,032 | 2 | 0.24 | 1,019 | 4 | 0.35 | 1,985 | 7 | 0.35 | |||||||||||||||||||||||
Time, savings and other | 56,193 | 302 | 0.54 | 53,318 | 333 | 0.63 | 61,632 | 532 | 0.86 | |||||||||||||||||||||||
Total non-U.S. interest-bearing deposits | 69,644 | 374 | 0.54 | 69,074 | 431 | 0.62 | 84,399 | 677 | 0.80 | |||||||||||||||||||||||
Total interest-bearing deposits | 726,061 | 1,396 | 0.19 | 693,110 | 1,990 | 0.29 | 723,431 | 3,002 | 0.42 | |||||||||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings | 301,417 | 2,923 | 0.97 | 318,400 | 3,572 | 1.12 | 324,269 | 4,599 | 1.42 | |||||||||||||||||||||||
Trading account liabilities | 88,323 | 1,638 | 1.85 | 78,554 | 1,763 | 2.24 | 84,689 | 2,212 | 2.61 | |||||||||||||||||||||||
Long-term debt | 263,416 | 6,798 | 2.58 | 316,393 | 9,419 | 2.98 | 421,229 | 11,807 | 2.80 | |||||||||||||||||||||||
Total interest-bearing liabilities (8) | 1,379,217 | 12,755 | 0.92 | 1,406,457 | 16,744 | 1.19 | 1,553,618 | 21,620 | 1.39 | |||||||||||||||||||||||
Noninterest-bearing sources: | ||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 363,674 | 354,672 | 312,371 | |||||||||||||||||||||||||||||
Other liabilities | 186,675 | 194,550 | 201,238 | |||||||||||||||||||||||||||||
Shareholders’ equity | 233,947 | 235,677 | 229,095 | |||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,163,513 | $ | 2,191,356 | $ | 2,296,322 | ||||||||||||||||||||||||||
Net interest spread | 2.27 | % | 2.09 | % | 2.26 | % | ||||||||||||||||||||||||||
Impact of noninterest-bearing sources | 0.19 | 0.25 | 0.21 | |||||||||||||||||||||||||||||
Net interest income/yield on earning assets (1) | $ | 42,942 | 2.46 | % | $ | 41,368 | 2.34 | % | $ | 45,402 | 2.47 | % |
(1) | For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Consolidated Balance Sheet presentation of these deposits. In addition, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, which are included in the time deposits placed and other short-term investments line in prior periods, are included in the cash and cash equivalents line. Net interest income and net interest yield are calculated excluding the fees included in the cash and cash equivalents line. |
(2) | Yields on debt securities carried at fair value are calculated based on fair value rather than the cost basis. The use of fair value does not have a material impact on net interest yield. |
(3) | Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis. PCI loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan. |
(4) | Includes non-U.S. residential mortgage loans of $79 million, $90 million and $91 million in 2013, 2012 and 2011, respectively. |
(5) | Includes non-U.S. consumer loans of $6.7 billion, $7.8 billion and $8.5 billion in 2013, 2012 and 2011, respectively. |
(6) | Includes consumer finance loans of $1.3 billion, $1.5 billion and $1.8 billion; consumer leases of $351 million, $0 and $0; other non-U.S. consumer loans of $5 million, $699 million and $878 million; and consumer overdrafts of $153 million, $128 million and $93 million in 2013, 2012 and 2011, respectively. |
(7) | Includes U.S. commercial real estate loans of $40.7 billion, $36.4 billion and $42.1 billion, and non-U.S. commercial real estate loans of $1.6 billion, $1.6 billion and $2.3 billion in 2013, 2012 and 2011, respectively. |
(8) | Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets by $205 million, $754 million and $2.6 billion in 2013, 2012 and 2011, respectively. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities by $2.4 billion, $2.3 billion and $2.6 billion in 2013, 2012 and 2011, respectively. For more information on interest rate contracts, see Interest Rate Risk Management for Nontrading Activities on page 113. |
Bank of America 2013 127 |
Table II Analysis of Changes in Net Interest Income – FTE Basis | |||||||||||||||||||||||
From 2012 to 2013 | From 2011 to 2012 | ||||||||||||||||||||||
Due to Change in (1) | Due to Change in (1) | ||||||||||||||||||||||
(Dollars in millions) | Volume | Rate | Net Change | Volume | Rate | Net Change | |||||||||||||||||
Increase (decrease) in interest income | |||||||||||||||||||||||
Time deposits placed and other short-term investments (2) | $ | (72 | ) | $ | 22 | $ | (50 | ) | $ | (71 | ) | $ | (58 | ) | $ | (129 | ) | ||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | (66 | ) | (207 | ) | (273 | ) | (70 | ) | (575 | ) | (645 | ) | |||||||||||
Trading account assets | (50 | ) | (377 | ) | (427 | ) | (391 | ) | (445 | ) | (836 | ) | |||||||||||
Debt securities | (381 | ) | 1,229 | 848 | 294 | (969 | ) | (675 | ) | ||||||||||||||
Loans and leases: | |||||||||||||||||||||||
Residential mortgage | (276 | ) | (250 | ) | (526 | ) | (652 | ) | (1,091 | ) | (1,743 | ) | |||||||||||
Home equity | (646 | ) | 51 | (595 | ) | (521 | ) | (103 | ) | (624 | ) | ||||||||||||
U.S. credit card | (449 | ) | (263 | ) | (712 | ) | (1,085 | ) | (219 | ) | (1,304 | ) | |||||||||||
Non-U.S. credit card | (312 | ) | 11 | (301 | ) | (1,160 | ) | 76 | (1,084 | ) | |||||||||||||
Direct/Indirect consumer | (48 | ) | (482 | ) | (530 | ) | (238 | ) | (578 | ) | (816 | ) | |||||||||||
Other consumer | (33 | ) | (35 | ) | (68 | ) | (25 | ) | (11 | ) | (36 | ) | |||||||||||
Total consumer | (2,732 | ) | (5,607 | ) | |||||||||||||||||||
U.S. commercial | 616 | (784 | ) | (168 | ) | 332 | (713 | ) | (381 | ) | |||||||||||||
Commercial real estate | 154 | (94 | ) | 60 | (219 | ) | 29 | (190 | ) | ||||||||||||||
Commercial lease financing | 81 | (104 | ) | (23 | ) | 23 | (150 | ) | (127 | ) | |||||||||||||
Non-U.S. commercial | 785 | (297 | ) | 488 | 438 | (226 | ) | 212 | |||||||||||||||
Total commercial | 357 | (486 | ) | ||||||||||||||||||||
Total loans and leases | (2,375 | ) | (6,093 | ) | |||||||||||||||||||
Other earning assets | (249 | ) | 111 | (138 | ) | (376 | ) | (156 | ) | (532 | ) | ||||||||||||
Total interest income | $ | (2,415 | ) | $ | (8,910 | ) | |||||||||||||||||
Increase (decrease) in interest expense | |||||||||||||||||||||||
U.S. interest-bearing deposits: | |||||||||||||||||||||||
Savings | $ | 3 | $ | (26 | ) | $ | (23 | ) | $ | 4 | $ | (59 | ) | $ | (55 | ) | |||||||
NOW and money market deposit accounts | 66 | (346 | ) | (280 | ) | 12 | (379 | ) | (367 | ) | |||||||||||||
Consumer CDs and IRAs | (87 | ) | (125 | ) | (212 | ) | (147 | ) | (205 | ) | (352 | ) | |||||||||||
Negotiable CDs, public funds and other deposits | 15 | (37 | ) | (22 | ) | 26 | (18 | ) | 8 | ||||||||||||||
Total U.S. interest-bearing deposits | (537 | ) | (766 | ) | |||||||||||||||||||
Non-U.S. interest-bearing deposits: | |||||||||||||||||||||||
Banks located in non-U.S. countries | (15 | ) | (9 | ) | (24 | ) | (41 | ) | (3 | ) | (44 | ) | |||||||||||
Governments and official institutions | — | (2 | ) | (2 | ) | (3 | ) | — | (3 | ) | |||||||||||||
Time, savings and other | 21 | (52 | ) | (31 | ) | (73 | ) | (126 | ) | (199 | ) | ||||||||||||
Total non-U.S. interest-bearing deposits | (57 | ) | (246 | ) | |||||||||||||||||||
Total interest-bearing deposits | (594 | ) | (1,012 | ) | |||||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings | (196 | ) | (453 | ) | (649 | ) | (78 | ) | (949 | ) | (1,027 | ) | |||||||||||
Trading account liabilities | 215 | (340 | ) | (125 | ) | (162 | ) | (287 | ) | (449 | ) | ||||||||||||
Long-term debt | (1,569 | ) | (1,052 | ) | (2,621 | ) | (2,948 | ) | 560 | (2,388 | ) | ||||||||||||
Total interest expense | (3,989 | ) | (4,876 | ) | |||||||||||||||||||
Net increase (decrease) in net interest income (2) | $ | 1,574 | $ | (4,034 | ) |
(1) | The changes for each category of interest income and expense are divided between the portion of change attributable to the variance in volume and the portion of change attributable to the variance in rate for that category. The unallocated change in rate or volume variance is allocated between the rate and volume variances. |
(2) | For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Consolidated Balance Sheet presentation of these deposits. In addition, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, which are included in the time deposits placed and other short-term investments line in prior periods, are included in the cash and cash equivalents line. Net interest income in the table is calculated excluding the fees included in the cash and cash equivalents line. |
128 Bank of America 2013 |
Table III Preferred Stock Cash Dividend Summary (as of February 25, 2014) | ||||||||||||||||||
December 31, 2013 | ||||||||||||||||||
Preferred Stock | Outstanding Notional Amount (in millions) | Declaration Date | Record Date | Payment Date | Per Annum Dividend Rate | Dividend Per Share | ||||||||||||
Series B (1) | $ | 1 | February 11, 2014 | April 11, 2014 | April 25, 2014 | 7.00 | % | $ | 1.75 | |||||||||
October 24, 2013 | January 10, 2014 | January 24, 2014 | 7.00 | 1.75 | ||||||||||||||
July 24, 2013 | October 11, 2013 | October 25, 2013 | 7.00 | 1.75 | ||||||||||||||
April 30, 2013 | July 11, 2013 | July 25, 2013 | 7.00 | 1.75 | ||||||||||||||
January 23, 2013 | April 11, 2013 | April 25, 2013 | 7.00 | 1.75 | ||||||||||||||
Series D (2) | $ | 654 | January 13, 2014 | February 28, 2014 | March 14, 2014 | 6.204 | % | $ | 0.38775 | |||||||||
October 15, 2013 | November 29, 2013 | December 16, 2013 | 6.204 | 0.38775 | ||||||||||||||
July 2, 2013 | August 30, 2013 | September 16, 2013 | 6.204 | 0.38775 | ||||||||||||||
April 2, 2013 | May 31, 2013 | June 14, 2013 | 6.204 | 0.38775 | ||||||||||||||
January 3, 2013 | February 28, 2013 | March 14, 2013 | 6.204 | 0.38775 | ||||||||||||||
Series E (2) | $ | 317 | January 13, 2014 | January 31, 2014 | February 18, 2014 | Floating | $ | 0.25556 | ||||||||||
October 15, 2013 | October 31, 2013 | November 15, 2013 | Floating | 0.25556 | ||||||||||||||
July 2, 2013 | July 31, 2013 | August 15, 2013 | Floating | 0.25556 | ||||||||||||||
April 2, 2013 | April 30, 2013 | May 15, 2013 | Floating | 0.24722 | ||||||||||||||
January 3, 2013 | January 31, 2013 | February 15, 2013 | Floating | 0.25556 | ||||||||||||||
Series F | $ | 141 | January 13, 2014 | February 28, 2014 | March 17, 2014 | Floating | $ | 1,000.00 | ||||||||||
October 15, 2013 | November 29, 2013 | December 16, 2013 | Floating | 1,011.1111 | ||||||||||||||
July 2, 2013 | August 30, 2013 | September 16, 2013 | Floating | 1,022.2222 | ||||||||||||||
April 2, 2013 | May 31, 2013 | June 17, 2013 | Floating | 1,044.44 | ||||||||||||||
January 3, 2013 | February 28, 2013 | March 15, 2013 | Floating | 1,000.00 | ||||||||||||||
Series G | $ | 493 | January 13, 2014 | February 28, 2014 | March 17, 2014 | Adjustable | $ | 1,000.00 | ||||||||||
October 15, 2013 | November 29, 2013 | December 16, 2013 | Adjustable | 1,011.1111 | ||||||||||||||
July 2, 2013 | August 30, 2013 | September 16, 2013 | Adjustable | 1,022.2222 | ||||||||||||||
April 2, 2013 | May 31, 2013 | June 17, 2013 | Adjustable | 1,044.44 | ||||||||||||||
January 3, 2013 | February 28, 2013 | March 15, 2013 | Adjustable | 1,000.00 | ||||||||||||||
Series H (2, 3) | $ | — | April 2, 2013 | April 15, 2013 | May 1, 2013 | 8.20 | % | $ | 0.51250 | |||||||||
January 3, 2013 | January 15, 2013 | February 1, 2013 | 8.20 | 0.51250 | ||||||||||||||
Series I (2) | $ | 365 | January 13, 2014 | March 15, 2014 | April 1, 2014 | 6.625 | % | $ | 0.4140625 | |||||||||
October 15, 2013 | December 15, 2013 | January 2, 2014 | 6.625 | 0.4140625 | ||||||||||||||
July 2, 2013 | September 15, 2013 | October 1, 2013 | 6.625 | 0.4140625 | ||||||||||||||
April 2, 2013 | June 15, 2013 | July 1, 2013 | 6.625 | 0.41406 | ||||||||||||||
January 3, 2013 | March 15, 2013 | April 1, 2013 | 6.625 | 0.41406 | ||||||||||||||
Series J (2, 4) | $ | — | July 2, 2013 | July 15, 2013 | August 1, 2013 | 7.25 | % | $ | 0.453125 | |||||||||
April 2, 2013 | April 15, 2013 | May 1, 2013 | 7.25 | 0.453125 | ||||||||||||||
January 3, 2013 | January 15, 2013 | February 1, 2013 | 7.25 | 0.45312 | ||||||||||||||
Series K (5, 6) | $ | 1,544 | January 13, 2014 | January 15, 2014 | January 30, 2014 | Fixed-to-floating | $ | 40.00 | ||||||||||
July 2, 2013 | July 15, 2013 | July 30, 2013 | Fixed-to-floating | 40.00 | ||||||||||||||
January 3, 2013 | January 15, 2013 | January 30, 2013 | Fixed-to-floating | 40.00 | ||||||||||||||
Series L | $ | 3,080 | December 16, 2013 | January 1, 2014 | January 30, 2014 | 7.25 | % | $ | 18.125 | |||||||||
September 16, 2013 | October 1, 2013 | October 30, 2013 | 7.25 | 18.125 | ||||||||||||||
June 17, 2013 | July 1, 2013 | July 30, 2013 | 7.25 | 18.125 | ||||||||||||||
March 15, 2013 | April 1, 2013 | April 30, 2013 | 7.25 | 18.125 | ||||||||||||||
Series M (5, 6) | $ | 1,310 | October 15, 2013 | October 31, 2013 | November 15, 2013 | Fixed-to-floating | $ | 40.62500 | ||||||||||
April 2, 2013 | April 30, 2013 | May 15, 2013 | Fixed-to-floating | 40.62500 | ||||||||||||||
Series T (1, 7) | $ | 5,000 | December 16, 2013 | December 26, 2013 | January 10, 2014 | 6.00 | % | $ | 1,500.00 | |||||||||
September 16, 2013 | September 25, 2013 | October 10, 2013 | 6.00 | 1,500.00 | ||||||||||||||
June 17, 2013 | June 25, 2013 | July 10, 2013 | 6.00 | 1,500.00 | ||||||||||||||
March 15, 2013 | March 26, 2013 | April 10, 2013 | 6.00 | 1,500.00 | ||||||||||||||
Series U | $ | 1,000 | October 15, 2013 | November 15, 2013 | December 2, 2013 | Fixed-to-floating | $ | 26.288889 |
(1) | Dividends are cumulative. |
(2) | Dividends per depositary share, each representing a 1/1,000th interest in a share of preferred stock. |
(3) | This series was redeemed on May 1, 2013. |
(4) | This series was redeemed on August 1, 2013. |
(5) | Initially pays dividends semi-annually. |
(6) | Dividends per depositary share, each representing a 1/25th interest in a share of preferred stock. |
(7) | For more information on the restructuring of the Series T Preferred Stock, which is subject to shareholder approval, see Capital Management – Capital Composition and Ratios on page 66. |
Bank of America 2013 129 |
Table III Preferred Stock Cash Dividend Summary (as of February 25, 2014) (continued) | ||||||||||||||||||
December 31, 2013 | ||||||||||||||||||
Preferred Stock | Outstanding Notional Amount (in millions) | Declaration Date | Record Date | Payment Date | Per Annum Dividend Rate | Dividend Per Share | ||||||||||||
Series 1 (8) | $ | 98 | January 13, 2014 | February 15, 2014 | February 28, 2014 | Floating | $ | 0.18750 | ||||||||||
October 15, 2013 | November 15, 2013 | November 29, 2013 | Floating | 0.18750 | ||||||||||||||
July 2, 2013 | August 15, 2013 | August 28, 2013 | Floating | 0.18750 | ||||||||||||||
April 2, 2013 | May 15, 2013 | May 28, 2013 | Floating | 0.18750 | ||||||||||||||
January 3, 2013 | February 15, 2013 | February 28, 2013 | Floating | 0.18750 | ||||||||||||||
Series 2 (8) | $ | 299 | January 13, 2014 | February 15, 2014 | February 28, 2014 | Floating | $ | 0.19167 | ||||||||||
October 15, 2013 | November 15, 2013 | November 29, 2013 | Floating | 0.19167 | ||||||||||||||
July 2, 2013 | August 15, 2013 | August 28, 2013 | Floating | 0.19167 | ||||||||||||||
April 2, 2013 | May 15, 2013 | May 28, 2013 | Floating | 0.18542 | ||||||||||||||
January 3, 2013 | February 15, 2013 | February 28, 2013 | Floating | 0.19167 | ||||||||||||||
Series 3 (8) | $ | 653 | January 13, 2014 | February 15, 2014 | February 28, 2014 | 6.375 | % | $ | 0.3984375 | |||||||||
October 15, 2013 | November 15, 2013 | November 29, 2013 | 6.375 | 0.39844 | ||||||||||||||
July 2, 2013 | August 15, 2013 | August 28, 2013 | 6.375 | 0.3984375 | ||||||||||||||
April 2, 2013 | May 15, 2013 | May 28, 2013 | 6.375 | 0.39843 | ||||||||||||||
January 3, 2013 | February 15, 2013 | February 28, 2013 | 6.375 | 0.39843 | ||||||||||||||
Series 4 (8) | $ | 210 | January 13, 2014 | February 15, 2014 | February 28, 2014 | Floating | $ | 0.25556 | ||||||||||
October 15, 2013 | November 15, 2013 | November 29, 2013 | Floating | 0.25556 | ||||||||||||||
July 2, 2013 | August 15, 2013 | August 28, 2013 | Floating | 0.25556 | ||||||||||||||
April 2, 2013 | May 15, 2013 | May 28, 2013 | Floating | 0.24722 | ||||||||||||||
January 3, 2013 | February 15, 2013 | February 28, 2013 | Floating | 0.25556 | ||||||||||||||
Series 5 (8) | $ | 422 | January 13, 2014 | February 1, 2014 | February 21, 2014 | Floating | $ | 0.25556 | ||||||||||
October 15, 2013 | November 1, 2013 | November 21, 2013 | Floating | 0.25556 | ||||||||||||||
July 2, 2013 | August 1, 2013 | August 21, 2013 | Floating | 0.25556 | ||||||||||||||
April 2, 2013 | May 1, 2013 | May 21, 2013 | Floating | 0.24722 | ||||||||||||||
January 3, 2013 | February 1, 2013 | February 21, 2013 | Floating | 0.25556 | ||||||||||||||
Series 6 (9, 10) | $ | — | April 2, 2013 | June 15, 2013 | June 28, 2013 | 6.70 | % | $ | 0.41875 | |||||||||
January 3, 2013 | March 15, 2013 | March 29, 2013 | 6.70 | 0.41875 | ||||||||||||||
Series 7 (9, 10) | $ | — | April 2, 2013 | June 15, 2013 | June 28, 2013 | 6.25 | % | $ | 0.390625 | |||||||||
January 3, 2013 | March 15, 2013 | March 29, 2013 | 6.25 | 0.39062 | ||||||||||||||
Series 8 (8, 11) | $ | — | April 2, 2013 | May 15, 2013 | May 28, 2013 | 8.625 | % | $ | 0.53906 | |||||||||
January 3, 2013 | February 15, 2013 | February 28, 2013 | 8.625 | 0.53906 |
(8) | Dividends per depositary share, each representing a 1/1,200th interest in a share of preferred stock. |
(9) | Dividends per depositary share, each representing a 1/40th interest in a share of preferred stock. |
(10) | These series were redeemed on June 28, 2013. |
(11) | This series was redeemed on May 28, 2013. |
130 Bank of America 2013 |
Table IV Outstanding Loans and Leases (1) | |||||||||||||||||||
December 31 | |||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||
Consumer | |||||||||||||||||||
Residential mortgage (2) | $ | 248,066 | $ | 252,929 | $ | 273,228 | $ | 270,901 | $ | 256,748 | |||||||||
Home equity | 93,672 | 108,140 | 124,856 | 138,161 | 149,361 | ||||||||||||||
U.S. credit card | 92,338 | 94,835 | 102,291 | 113,785 | 49,453 | ||||||||||||||
Non-U.S. credit card | 11,541 | 11,697 | 14,418 | 27,465 | 21,656 | ||||||||||||||
Direct/Indirect consumer (3) | 82,192 | 83,205 | 89,713 | 90,308 | 97,236 | ||||||||||||||
Other consumer (4) | 1,977 | 1,628 | 2,688 | 2,830 | 3,110 | ||||||||||||||
Total consumer loans excluding loans accounted for under the fair value option | 529,786 | 552,434 | 607,194 | 643,450 | 577,564 | ||||||||||||||
Consumer loans accounted for under the fair value option (5) | 2,164 | 1,005 | 2,190 | — | — | ||||||||||||||
Total consumer | 531,950 | 553,439 | 609,384 | 643,450 | 577,564 | ||||||||||||||
Commercial | |||||||||||||||||||
U.S. commercial (6) | 225,851 | 209,719 | 193,199 | 190,305 | 198,903 | ||||||||||||||
Commercial real estate (7) | 47,893 | 38,637 | 39,596 | 49,393 | 69,447 | ||||||||||||||
Commercial lease financing | 25,199 | 23,843 | 21,989 | 21,942 | 22,199 | ||||||||||||||
Non-U.S. commercial | 89,462 | 74,184 | 55,418 | 32,029 | 27,079 | ||||||||||||||
Total commercial loans excluding loans accounted for under the fair value option | 388,405 | 346,383 | 310,202 | 293,669 | 317,628 | ||||||||||||||
Commercial loans accounted for under the fair value option (5) | 7,878 | 7,997 | 6,614 | 3,321 | 4,936 | ||||||||||||||
Total commercial | 396,283 | 354,380 | 316,816 | 296,990 | 322,564 | ||||||||||||||
Total loans and leases | $ | 928,233 | $ | 907,819 | $ | 926,200 | $ | 940,440 | $ | 900,128 |
(1) | 2013, 2012, 2011 and 2010 are presented in accordance with consolidation guidance that was effective January 1, 2010. |
(2) | Includes pay option loans of $4.4 billion, $6.7 billion, $9.9 billion, $11.8 billion and $13.4 billion, and non-U.S. residential mortgage loans of $0, $93 million, $85 million, $90 million and $552 million at December 31, 2013, 2012, 2011, 2010 and 2009, respectively. The Corporation no longer originates pay option loans |
(3) | Includes dealer financial services loans of $38.5 billion, $35.9 billion, $43.0 billion, $43.3 billion and $41.6 billion; consumer lending loans of $2.7 billion, $4.7 billion, $8.0 billion, $12.4 billion and $19.7 billion; U.S. securities-based lending loans of $31.2 billion, $28.3 billion, $23.6 billion, $16.6 billion and $12.9 billion; non-U.S. consumer loans of $4.7 billion, $8.3 billion, $7.6 billion, $8.0 billion and $8.0 billion; student loans of $4.1 billion, $4.8 billion, $6.0 billion, $6.8 billion and $10.8 billion; and other consumer loans of $1.0 billion, $1.2 billion, $1.5 billion, $3.2 billion and $4.2 billion at December 31, 2013, 2012, 2011, 2010 and 2009, respectively. |
(4) | Includes consumer finance loans of $1.2 billion, $1.4 billion, $1.7 billion, $1.9 billion and $2.3 billion; consumer leases of $606 million, $34 million, $0, $0 and $0; consumer overdrafts of $176 million, $177 million, $103 million, $88 million and $144 million; and other non-U.S. consumer loans of $5 million, $5 million, $929 million, $803 million and $709 million at December 31, 2013, 2012, 2011, 2010 and 2009, respectively. |
(5) | Consumer loans accounted for under the fair value option were residential mortgage loans of $2.0 billion, $1.0 billion and $2.2 billion, and home equity loans of $147 million, $0 and $0 at December 31, 2013, 2012 and 2011, respectively. There were no consumer loans accounted for under the fair value option prior to 2011. Commercial loans accounted for under the fair value option were U.S. commercial loans of $1.5 billion, $2.3 billion, $2.2 billion, $1.6 billion and $3.0 billion; commercial real estate loans of $0, $0, $0, $79 million and $90 million; and non-U.S. commercial loans of $6.4 billion, $5.7 billion, $4.4 billion, $1.7 billion and $1.9 billion at December 31, 2013, 2012, 2011, 2010 and 2009, respectively. |
(6) | Includes U.S. small business commercial loans, including card-related products, of $13.3 billion, $12.6 billion, $13.3 billion, $14.7 billion and $17.5 billion at December 31, 2013, 2012, 2011, 2010 and 2009, respectively. |
(7) | Includes U.S. commercial real estate loans of $46.3 billion, $37.2 billion, $37.8 billion, $46.9 billion and $66.5 billion, and non-U.S. commercial real estate loans of $1.6 billion, $1.5 billion, $1.8 billion, $2.5 billion and $3.0 billion at December 31, 2013, 2012, 2011, 2010 and 2009, respectively. |
Bank of America 2013 131 |
Table V Nonperforming Loans, Leases and Foreclosed Properties (1) | |||||||||||||||||||
December 31 | |||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||
Consumer | |||||||||||||||||||
Residential mortgage | $ | 11,712 | $ | 15,055 | $ | 16,259 | $ | 18,020 | $ | 16,841 | |||||||||
Home equity | 4,075 | 4,282 | 2,454 | 2,696 | 3,808 | ||||||||||||||
Direct/Indirect consumer | 35 | 92 | 40 | 90 | 86 | ||||||||||||||
Other consumer | 18 | 2 | 15 | 48 | 104 | ||||||||||||||
Total consumer (2) | 15,840 | 19,431 | 18,768 | 20,854 | 20,839 | ||||||||||||||
Commercial | |||||||||||||||||||
U.S. commercial | 819 | 1,484 | 2,174 | 3,453 | 4,925 | ||||||||||||||
Commercial real estate | 322 | 1,513 | 3,880 | 5,829 | 7,286 | ||||||||||||||
Commercial lease financing | 16 | 44 | 26 | 117 | 115 | ||||||||||||||
Non-U.S. commercial | 64 | 68 | 143 | 233 | 177 | ||||||||||||||
1,221 | 3,109 | 6,223 | 9,632 | 12,503 | |||||||||||||||
U.S. small business commercial | 88 | 115 | 114 | 204 | 200 | ||||||||||||||
Total commercial (3) | 1,309 | 3,224 | 6,337 | 9,836 | 12,703 | ||||||||||||||
Total nonperforming loans and leases | 17,149 | 22,655 | 25,105 | 30,690 | 33,542 | ||||||||||||||
Foreclosed properties | 623 | 900 | 2,603 | 1,974 | 2,205 | ||||||||||||||
Total nonperforming loans, leases and foreclosed properties | $ | 17,772 | $ | 23,555 | $ | 27,708 | $ | 32,664 | $ | 35,747 |
(1) | Balances do not include PCI loans even though the customer may be contractually past due. PCI loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan. In addition, balances do not include foreclosed properties that are insured by the FHA and have entered foreclosure of $1.4 billion, $2.5 billion and $1.4 billion at December 31, 2013, 2012 and 2011, respectively. |
(2) | In 2013, $2.3 billion in interest income was estimated to be contractually due on consumer loans and leases classified as nonperforming and TDRs classified as performing, if these loans and leases had been paying according to their terms and conditions. At December 31, 2013, the TDRs classified as performing of $22.5 billion are not included in the table above. Approximately $1.4 billion of the estimated $2.3 billion in contractual interest was received and included in interest income for 2013. |
(3) | In 2013, $157 million in interest income was estimated to be contractually due on commercial loans and leases classified as nonperforming and TDRs classified as performing, if these loans and leases had been paying according to their terms and conditions. At December 31, 2013, the TDRs classified as performing of $1.8 billion are not included in the table above. Approximately $75 million of the estimated $157 million in contractual interest was received and included in interest income for 2013. |
132 Bank of America 2013 |
Table VI Accruing Loans and Leases Past Due 90 Days or More (1) | |||||||||||||||||||
December 31 | |||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||
Consumer | |||||||||||||||||||
Residential mortgage (2) | $ | 16,961 | $ | 22,157 | $ | 21,164 | $ | 16,768 | $ | 11,680 | |||||||||
U.S. credit card | 1,053 | 1,437 | 2,070 | 3,320 | 2,158 | ||||||||||||||
Non-U.S. credit card | 131 | 212 | 342 | 599 | 515 | ||||||||||||||
Direct/Indirect consumer | 408 | 545 | 746 | 1,058 | 1,488 | ||||||||||||||
Other consumer | 2 | 2 | 2 | 2 | 3 | ||||||||||||||
Total consumer | 18,555 | 24,353 | 24,324 | 21,747 | 15,844 | ||||||||||||||
Commercial | |||||||||||||||||||
U.S. commercial | 47 | 65 | 75 | 236 | 213 | ||||||||||||||
Commercial real estate | 21 | 29 | 7 | 47 | 80 | ||||||||||||||
Commercial lease financing | 41 | 15 | 14 | 18 | 32 | ||||||||||||||
Non-U.S. commercial | 17 | — | — | 6 | 67 | ||||||||||||||
126 | 109 | 96 | 307 | 392 | |||||||||||||||
U.S. small business commercial | 78 | 120 | 216 | 325 | 624 | ||||||||||||||
Total commercial | 204 | 229 | 312 | 632 | 1,016 | ||||||||||||||
Total accruing loans and leases past due 90 days or more (3) | $ | 18,759 | $ | 24,582 | $ | 24,636 | $ | 22,379 | $ | 16,860 |
(1) | Our policy is to classify consumer real estate-secured loans as nonperforming at 90 days past due, except the PCI loan portfolio, the fully-insured loan portfolio and loans accounted for under the fair value option as referenced in footnote 3. |
(2) | Balances are fully-insured loans. |
(3) | Balances exclude loans accounted for under the fair value option. At December 31, 2013 and 2009, $8 million and $87 million of loans accounted for under the fair value option were past due 90 days or more and still accruing interest. At December 31, 2012, 2011 and 2010, there were no loans accounted for under the fair value option that were past due 90 days or more and still accruing interest. |
Bank of America 2013 133 |
Table VII Allowance for Credit Losses | |||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||
Allowance for loan and lease losses, January 1 (1) | $ | 24,179 | $ | 33,783 | $ | 41,885 | $ | 47,988 | $ | 23,071 | |||||||||
Loans and leases charged off | |||||||||||||||||||
Residential mortgage | (1,508 | ) | (3,276 | ) | (4,294 | ) | (3,843 | ) | (4,525 | ) | |||||||||
Home equity | (2,258 | ) | (4,573 | ) | (4,997 | ) | (7,072 | ) | (7,220 | ) | |||||||||
U.S. credit card | (4,004 | ) | (5,360 | ) | (8,114 | ) | (13,818 | ) | (6,753 | ) | |||||||||
Non-U.S. credit card | (508 | ) | (835 | ) | (1,691 | ) | (2,424 | ) | (1,332 | ) | |||||||||
Direct/Indirect consumer | (710 | ) | (1,258 | ) | (2,190 | ) | (4,303 | ) | (6,406 | ) | |||||||||
Other consumer | (273 | ) | (274 | ) | (252 | ) | (320 | ) | (491 | ) | |||||||||
Total consumer charge-offs | (9,261 | ) | (15,576 | ) | (21,538 | ) | (31,780 | ) | (26,727 | ) | |||||||||
U.S. commercial (2) | (774 | ) | (1,309 | ) | (1,690 | ) | (3,190 | ) | (5,237 | ) | |||||||||
Commercial real estate | (251 | ) | (719 | ) | (1,298 | ) | (2,185 | ) | (2,744 | ) | |||||||||
Commercial lease financing | (4 | ) | (32 | ) | (61 | ) | (96 | ) | (217 | ) | |||||||||
Non-U.S. commercial | (79 | ) | (36 | ) | (155 | ) | (139 | ) | (558 | ) | |||||||||
Total commercial charge-offs | (1,108 | ) | (2,096 | ) | (3,204 | ) | (5,610 | ) | (8,756 | ) | |||||||||
Total loans and leases charged off | (10,369 | ) | (17,672 | ) | (24,742 | ) | (37,390 | ) | (35,483 | ) | |||||||||
Recoveries of loans and leases previously charged off | |||||||||||||||||||
Residential mortgage | 424 | 165 | 377 | 117 | 89 | ||||||||||||||
Home equity | 455 | 331 | 517 | 279 | 155 | ||||||||||||||
U.S. credit card | 628 | 728 | 838 | 791 | 206 | ||||||||||||||
Non-U.S. credit card | 109 | 254 | 522 | 217 | 93 | ||||||||||||||
Direct/Indirect consumer | 365 | 495 | 714 | 967 | 943 | ||||||||||||||
Other consumer | 39 | 42 | 50 | 59 | 63 | ||||||||||||||
Total consumer recoveries | 2,020 | 2,015 | 3,018 | 2,430 | 1,549 | ||||||||||||||
U.S. commercial (3) | 287 | 368 | 500 | 391 | 161 | ||||||||||||||
Commercial real estate | 102 | 335 | 351 | 168 | 42 | ||||||||||||||
Commercial lease financing | 29 | 38 | 37 | 39 | 22 | ||||||||||||||
Non-U.S. commercial | 34 | 8 | 3 | 28 | 21 | ||||||||||||||
Total commercial recoveries | 452 | 749 | 891 | 626 | 246 | ||||||||||||||
Total recoveries of loans and leases previously charged off | 2,472 | 2,764 | 3,909 | 3,056 | 1,795 | ||||||||||||||
Net charge-offs | (7,897 | ) | (14,908 | ) | (20,833 | ) | (34,334 | ) | (33,688 | ) | |||||||||
Write-offs of PCI loans | (2,336 | ) | (2,820 | ) | — | — | — | ||||||||||||
Provision for loan and lease losses | 3,574 | 8,310 | 13,629 | 28,195 | 48,366 | ||||||||||||||
Other (4) | (92 | ) | (186 | ) | (898 | ) | 36 | (549 | ) | ||||||||||
Allowance for loan and lease losses, December 31 | 17,428 | 24,179 | 33,783 | 41,885 | 37,200 | ||||||||||||||
Reserve for unfunded lending commitments, January 1 | 513 | 714 | 1,188 | 1,487 | 421 | ||||||||||||||
Provision for unfunded lending commitments | (18 | ) | (141 | ) | (219 | ) | 240 | 204 | |||||||||||
Other (5) | (11 | ) | (60 | ) | (255 | ) | (539 | ) | 862 | ||||||||||
Reserve for unfunded lending commitments, December 31 | 484 | 513 | 714 | 1,188 | 1,487 | ||||||||||||||
Allowance for credit losses, December 31 | $ | 17,912 | $ | 24,692 | $ | 34,497 | $ | 43,073 | $ | 38,687 |
(1) | The 2010 balance includes $10.8 billion of allowance for loan and lease losses related to the adoption of consolidation guidance that was effective January 1, 2010. |
(2) | Includes U.S. small business commercial charge-offs of $457 million, $799 million, $1.1 billion, $2.0 billion and $3.0 billion in 2013, 2012, 2011, 2010 and 2009, respectively. |
(3) | Includes U.S. small business commercial recoveries of $98 million, $100 million, $106 million, $107 million and $65 million in 2013, 2012, 2011, 2010 and 2009, respectively. |
(4) | The 2013, 2012 and 2011 amounts primarily represent the net impact of portfolio sales, consolidations and deconsolidations, and foreign currency translation adjustments. In addition, the 2011 amount includes a $449 million reduction in the allowance for loan and lease losses related to Canadian consumer card loans that were transferred to LHFS. The 2009 amount includes a $750 million reduction in the allowance for loan and lease losses related to credit card loans of $8.5 billion which were exchanged for $7.8 billion in held-to-maturity debt securities that were issued by the Corporation’s U.S. Credit Card Securitization Trust and retained by the Corporation. |
(5) | The 2013, 2012, 2011 and 2010 amounts primarily represent accretion of the Merrill Lynch purchase accounting adjustment and the impact of funding previously unfunded positions. The 2009 amount includes the remaining balance of the acquired Merrill Lynch reserve excluding those commitments accounted for under the fair value option, net of accretion, and the impact of funding previously unfunded positions. |
134 Bank of America 2013 |
Table VII Allowance for Credit Losses (continued) | |||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||
Loan and allowance ratios: | |||||||||||||||||||
Loans and leases outstanding at December 31 (6) | $ | 918,191 | $ | 898,817 | $ | 917,396 | $ | 937,119 | $ | 895,192 | |||||||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31 (6) | 1.90 | % | 2.69 | % | 3.68 | % | 4.47 | % | 4.16 | % | |||||||||
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31 (7) | 2.53 | 3.81 | 4.88 | 5.40 | 4.81 | ||||||||||||||
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at December 31 (8) | 1.03 | 0.90 | 1.33 | 2.44 | 2.96 | ||||||||||||||
Average loans and leases outstanding (6) | $ | 909,127 | $ | 890,337 | $ | 929,661 | $ | 954,278 | $ | 941,862 | |||||||||
Net charge-offs as a percentage of average loans and leases outstanding (6, 9) | 0.87 | % | 1.67 | % | 2.24 | % | 3.60 | % | 3.58 | % | |||||||||
Net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding (6, 10) | 1.13 | 1.99 | 2.24 | 3.60 | 3.58 | ||||||||||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31 (6, 11) | 102 | 107 | 135 | 136 | 111 | ||||||||||||||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs (9) | 2.21 | 1.62 | 1.62 | 1.22 | 1.10 | ||||||||||||||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs and PCI write-offs (10) | 1.70 | 1.36 | 1.62 | 1.22 | 1.10 | ||||||||||||||
Amounts included in allowance for loan and lease losses that are excluded from nonperforming loans and leases at December 31 (12) | $ | 7,680 | $ | 12,021 | $ | 17,490 | $ | 22,908 | $ | 17,690 | |||||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding amounts included in the allowance for loan and lease losses that are excluded from nonperforming loans and leases at December 31 (12) | 57 | % | 54 | % | 65 | % | 62 | % | 58 | % | |||||||||
Loan and allowance ratios excluding PCI loans and the related valuation allowance: (13) | |||||||||||||||||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31 (6) | 1.67 | % | 2.14 | % | 2.86 | % | 3.94 | % | 3.88 | % | |||||||||
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31 (7) | 2.17 | 2.95 | 3.68 | 4.66 | 4.43 | ||||||||||||||
Net charge-offs as a percentage of average loans and leases outstanding (6) | 0.90 | 1.73 | 2.32 | 3.73 | 3.71 | ||||||||||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31 (6, 11) | 87 | 82 | 101 | 116 | 99 | ||||||||||||||
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs | 1.89 | 1.25 | 1.22 | 1.04 | 1.00 |
(6) | Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option, which were $10.0 billion, $9.0 billion, $8.8 billion, $3.3 billion and $4.9 billion at December 31, 2013, 2012, 2011, 2010 and 2009, respectively. Average loans accounted for under the fair value option were $9.5 billion, $8.4 billion, $8.4 billion, $4.1 billion and $6.9 billion in 2013, 2012, 2011, 2010 and 2009, respectively. |
(7) | Excludes consumer loans accounted for under the fair value option of $2.2 billion, $1.0 billion and $2.2 billion at December 31, 2013, 2012 and 2011. There were no consumer loans accounted for under the fair value option prior to 2011. |
(8) | Excludes commercial loans accounted for under the fair value option of $7.9 billion, $8.0 billion, $6.6 billion, $3.3 billion and $4.9 billion at December 31, 2013, 2012, 2011, 2010 and 2009, respectively. |
(9) | Net charge-offs exclude $2.3 billion and $2.8 billion of write-offs in the PCI loan portfolio in 2013 and 2012. These write-offs decreased the PCI valuation allowance included as part of the allowance for loan and lease losses. For more information on PCI write-offs, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page 85. |
(10) | There were no write-offs of PCI loans in 2011, 2010 and 2009. |
(11) | For more information on our definition of nonperforming loans, see pages 89 and 96. |
(12) | Primarily includes amounts allocated to the U.S. credit card and unsecured lending portfolios in CBB, PCI loans and the non-U.S. credit portfolio in All Other. |
(13) | For more information on the PCI loan portfolio and the valuation allowance for PCI loans, see Note 4 – Outstanding Loans and Leases and Note 5 – Allowance for Credit Losses to the Consolidated Financial Statements. |
Bank of America 2013 135 |
Table VIII Allocation of the Allowance for Credit Losses by Product Type | ||||||||||||||||||||||||||||||||||
December 31 | ||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||||||||||||
(Dollars in millions) | Amount | Percent of Total | Amount | Percent of Total | Amount | Percent of Total | Amount | Percent of Total | Amount | Percent of Total | ||||||||||||||||||||||||
Allowance for loan and lease losses | ||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 4,084 | 23.43 | % | $ | 7,088 | 29.31 | % | $ | 7,985 | 23.64 | % | $ | 6,365 | 15.20 | % | $ | 5,640 | 15.17 | % | ||||||||||||||
Home equity | 4,434 | 25.44 | 7,845 | 32.45 | 13,094 | 38.76 | 12,887 | 30.77 | 10,116 | 27.19 | ||||||||||||||||||||||||
U.S. credit card | 3,930 | 22.55 | 4,718 | 19.51 | 6,322 | 18.71 | 10,876 | 25.97 | 6,017 | 16.17 | ||||||||||||||||||||||||
Non-U.S. credit card | 459 | 2.63 | 600 | 2.48 | 946 | 2.80 | 2,045 | 4.88 | 1,581 | 4.25 | ||||||||||||||||||||||||
Direct/Indirect consumer | 417 | 2.39 | 718 | 2.97 | 1,153 | 3.41 | 2,381 | 5.68 | 4,227 | 11.36 | ||||||||||||||||||||||||
Other consumer | 99 | 0.58 | 104 | 0.43 | 148 | 0.44 | 161 | 0.38 | 204 | 0.55 | ||||||||||||||||||||||||
Total consumer | 13,423 | 77.02 | 21,073 | 87.15 | 29,648 | 87.76 | 34,715 | 82.88 | 27,785 | 74.69 | ||||||||||||||||||||||||
U.S. commercial (1) | 2,394 | 13.74 | 1,885 | 7.80 | 2,441 | 7.23 | 3,576 | 8.54 | 5,152 | 13.85 | ||||||||||||||||||||||||
Commercial real estate | 917 | 5.26 | 846 | 3.50 | 1,349 | 3.99 | 3,137 | 7.49 | 3,567 | 9.59 | ||||||||||||||||||||||||
Commercial lease financing | 118 | 0.68 | 78 | 0.32 | 92 | 0.27 | 126 | 0.30 | 291 | 0.78 | ||||||||||||||||||||||||
Non-U.S. commercial | 576 | 3.30 | 297 | 1.23 | 253 | 0.75 | 331 | 0.79 | 405 | 1.09 | ||||||||||||||||||||||||
Total commercial (2) | 4,005 | 22.98 | 3,106 | 12.85 | 4,135 | 12.24 | 7,170 | 17.12 | 9,415 | 25.31 | ||||||||||||||||||||||||
Allowance for loan and lease losses | 17,428 | 100.00 | % | 24,179 | 100.00 | % | 33,783 | 100.00 | % | 41,885 | 100.00 | % | 37,200 | 100.00 | % | |||||||||||||||||||
Reserve for unfunded lending commitments | 484 | 513 | 714 | 1,188 | 1,487 | |||||||||||||||||||||||||||||
Allowance for credit losses (3) | $ | 17,912 | $ | 24,692 | $ | 34,497 | $ | 43,073 | $ | 38,687 |
(1) | Includes allowance for loan and lease losses for U.S. small business commercial loans of $462 million, $642 million, $893 million, $1.5 billion and $2.4 billion at December 31, 2013, 2012, 2011, 2010 and 2009, respectively. |
(2) | Includes allowance for loan and lease losses for impaired commercial loans of $277 million, $475 million, $545 million, $1.1 billion and $1.2 billion at December 31, 2013, 2012, 2011, 2010 and 2009, respectively. |
(3) | Includes $2.5 billion, $5.5 billion, $8.5 billion, $6.4 billion and $3.9 billion of valuation allowance included as part of the allowance for credit losses related to PCI loans at December 31, 2013, 2012, 2011, 2010 and 2009, respectively. |
136 Bank of America 2013 |
Table IX Selected Loan Maturity Data (1, 2) | |||||||||||||||
December 31, 2013 | |||||||||||||||
(Dollars in millions) | Due in One Year or Less | Due After One Year Through Five Years | Due After Five Years | Total | |||||||||||
U.S. commercial | $ | 58,522 | $ | 122,739 | $ | 46,114 | $ | 227,375 | |||||||
U.S. commercial real estate | 7,244 | 32,826 | 6,242 | 46,312 | |||||||||||
Non-U.S. and other (3) | 78,201 | 14,026 | 5,170 | 97,397 | |||||||||||
Total selected loans | $ | 143,967 | $ | 169,591 | $ | 57,526 | $ | 371,084 | |||||||
Percent of total | 39 | % | 46 | % | 15 | % | 100 | % | |||||||
Sensitivity of selected loans to changes in interest rates for loans due after one year: | |||||||||||||||
Fixed interest rates | $ | 12,668 | $ | 28,463 | |||||||||||
Floating or adjustable interest rates | 156,923 | 29,063 | |||||||||||||
Total | $ | 169,591 | $ | 57,526 |
(1) | Loan maturities are based on the remaining maturities under contractual terms. |
(2) | Includes loans accounted for under the fair value option. |
(3) | Loan maturities include non-U.S. commercial and commercial real estate loans. |
Table X Non-exchange Traded Commodity Contracts | |||||||
December 31, 2013 | |||||||
(Dollars in millions) | Asset Positions | Liability Positions | |||||
Net fair value of contracts outstanding, January 1, 2013 | $ | 4,041 | $ | 3,977 | |||
Effects of legally enforceable master netting agreements | 5,110 | 5,110 | |||||
Gross fair value of contracts outstanding, January 1, 2013 | 9,151 | 9,087 | |||||
Contracts realized or otherwise settled | (5,494 | ) | (5,229 | ) | |||
Fair value of new contracts | 4,076 | 4,023 | |||||
Other changes in fair value | 1,268 | 984 | |||||
Gross fair value of contracts outstanding, December 31, 2013 | 9,001 | 8,865 | |||||
Effects of legally enforceable master netting agreements | (4,625 | ) | (4,625 | ) | |||
Net fair value of contracts outstanding, December 31, 2013 | $ | 4,376 | $ | 4,240 |
Table XI Non-exchange Traded Commodity Contract Maturities | |||||||
December 31, 2013 | |||||||
(Dollars in millions) | Asset Positions | Liability Positions | |||||
Less than one year | $ | 4,737 | $ | 4,575 | |||
Greater than or equal to one year and less than three years | 2,108 | 2,411 | |||||
Greater than or equal to three years and less than five years | 494 | 489 | |||||
Greater than or equal to five years | 1,662 | 1,390 | |||||
Gross fair value of contracts outstanding | 9,001 | 8,865 | |||||
Effects of legally enforceable master netting agreements | (4,625 | ) | (4,625 | ) | |||
Net fair value of contracts outstanding | $ | 4,376 | $ | 4,240 |
Bank of America 2013 137 |
Table XII Selected Quarterly Financial Data | |||||||||||||||||||||||||||||||
2013 Quarters | 2012 Quarters | ||||||||||||||||||||||||||||||
(In millions, except per share information) | Fourth | Third | Second | First | Fourth | Third | Second | First | |||||||||||||||||||||||
Income statement | |||||||||||||||||||||||||||||||
Net interest income | $ | 10,786 | $ | 10,266 | $ | 10,549 | $ | 10,664 | $ | 10,324 | $ | 9,938 | $ | 9,548 | $ | 10,846 | |||||||||||||||
Noninterest income | 10,702 | 11,264 | 12,178 | 12,533 | 8,336 | 10,490 | 12,420 | 11,432 | |||||||||||||||||||||||
Total revenue, net of interest expense | 21,488 | 21,530 | 22,727 | 23,197 | 18,660 | 20,428 | 21,968 | 22,278 | |||||||||||||||||||||||
Provision for credit losses | 336 | 296 | 1,211 | 1,713 | 2,204 | 1,774 | 1,773 | 2,418 | |||||||||||||||||||||||
Noninterest expense | 17,307 | 16,389 | 16,018 | 19,500 | 18,360 | 17,544 | 17,048 | 19,141 | |||||||||||||||||||||||
Income (loss) before income taxes | 3,845 | 4,845 | 5,498 | 1,984 | (1,904 | ) | 1,110 | 3,147 | 719 | ||||||||||||||||||||||
Income tax expense (benefit) | 406 | 2,348 | 1,486 | 501 | (2,636 | ) | 770 | 684 | 66 | ||||||||||||||||||||||
Net income | 3,439 | 2,497 | 4,012 | 1,483 | 732 | 340 | 2,463 | 653 | |||||||||||||||||||||||
Net income (loss) applicable to common shareholders | 3,183 | 2,218 | 3,571 | 1,110 | 367 | (33 | ) | 2,098 | 328 | ||||||||||||||||||||||
Average common shares issued and outstanding | 10,633 | 10,719 | 10,776 | 10,799 | 10,777 | 10,776 | 10,776 | 10,651 | |||||||||||||||||||||||
Average diluted common shares issued and outstanding (1) | 11,404 | 11,482 | 11,525 | 11,155 | 10,885 | 10,776 | 11,556 | 10,762 | |||||||||||||||||||||||
Performance ratios | |||||||||||||||||||||||||||||||
Return on average assets | 0.64 | % | 0.47 | % | 0.74 | % | 0.27 | % | 0.13 | % | 0.06 | % | 0.45 | % | 0.12 | % | |||||||||||||||
Four quarter trailing return on average assets (2) | 0.53 | 0.40 | 0.30 | 0.23 | 0.19 | 0.25 | 0.51 | n/m | |||||||||||||||||||||||
Return on average common shareholders’ equity | 5.74 | 4.06 | 6.55 | 2.06 | 0.67 | n/m | 3.89 | 0.62 | |||||||||||||||||||||||
Return on average tangible common shareholders’ equity (3) | 8.61 | 6.15 | 9.88 | 3.12 | 1.01 | n/m | 5.95 | 0.95 | |||||||||||||||||||||||
Return on average tangible shareholders’ equity (3) | 8.53 | 6.32 | 9.98 | 3.69 | 1.77 | 0.84 | 6.16 | 1.67 | |||||||||||||||||||||||
Total ending equity to total ending assets | 11.07 | 10.92 | 10.88 | 10.91 | 10.72 | 11.02 | 10.92 | 10.66 | |||||||||||||||||||||||
Total average equity to total average assets | 10.93 | 10.85 | 10.76 | 10.71 | 10.79 | 10.86 | 10.73 | 10.63 | |||||||||||||||||||||||
Dividend payout | 3.33 | 4.82 | 3.01 | 9.75 | 29.33 | n/m | 5.60 | 34.97 | |||||||||||||||||||||||
Per common share data | |||||||||||||||||||||||||||||||
Earnings | $ | 0.30 | $ | 0.21 | $ | 0.33 | $ | 0.10 | $ | 0.03 | $ | 0.00 | $ | 0.19 | $ | 0.03 | |||||||||||||||
Diluted earnings (1) | 0.29 | 0.20 | 0.32 | 0.10 | 0.03 | 0.00 | 0.19 | 0.03 | |||||||||||||||||||||||
Dividends paid | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | |||||||||||||||||||||||
Book value | 20.71 | 20.50 | 20.18 | 20.19 | 20.24 | 20.40 | 20.16 | 19.83 | |||||||||||||||||||||||
Tangible book value (3) | 13.79 | 13.62 | 13.32 | 13.36 | 13.36 | 13.48 | 13.22 | 12.87 | |||||||||||||||||||||||
Market price per share of common stock | |||||||||||||||||||||||||||||||
Closing | $ | 15.57 | $ | 13.80 | $ | 12.86 | $ | 12.18 | $ | 11.61 | $ | 8.83 | $ | 8.18 | $ | 9.57 | |||||||||||||||
High closing | 15.88 | 14.95 | 13.83 | 12.78 | 11.61 | 9.55 | 9.68 | 9.93 | |||||||||||||||||||||||
Low closing | 13.69 | 12.83 | 11.44 | 11.03 | 8.93 | 7.04 | 6.83 | 5.80 | |||||||||||||||||||||||
Market capitalization | $ | 164,914 | $ | 147,429 | $ | 138,156 | $ | 131,817 | $ | 125,136 | $ | 95,163 | $ | 88,155 | $ | 103,123 |
(1) | Due to a net loss applicable to common shareholders for the third quarter of 2012, the impact of antidilutive equity instruments was excluded from diluted earnings per share and average diluted common shares. |
(2) | Calculated as total net income for four consecutive quarters divided by annualized average assets for four consecutive quarters. |
(3) | Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. Other companies may define or calculate these measures differently. For more information on these ratios, see Supplemental Financial Data on page 33, and for corresponding reconciliations to GAAP financial measures, see Statistical Table XVII. |
(4) | For more information on the impact of the PCI loan portfolio on asset quality, see Consumer Portfolio Credit Risk Management on page 77. |
(5) | Includes the allowance for loan and lease losses and the reserve for unfunded lending commitments. |
(6) | Balances and ratios do not include loans accounted for under the fair value option. For additional exclusions from nonperforming loans, leases and foreclosed properties, see Consumer Portfolio Credit Risk Management – Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity on page 89 and corresponding Table 41, and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 96 and corresponding Table 50. |
(7) | Primarily includes amounts allocated to the U.S. credit card and unsecured consumer lending portfolios in CBB, PCI loans and the non-U.S. credit card portfolio in All Other. |
(8) | Net charge-offs exclude $741 million, $443 million, $313 million and $839 million of write-offs in the PCI loan portfolio for the fourth, third, second and first quarters of 2013, respectively, and $1.1 billion and $1.7 billion for the fourth and third quarters of 2012. These write-offs decreased the PCI valuation allowance included as part of the allowance for loan and lease losses. For more information on PCI write-offs, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page 85. |
(9) | There were no write-offs of PCI loans in the second and first quarters of 2012. |
(10) | Presents capital ratios in accordance with the Basel 1 – 2013 Rules, which include the Market Risk Final Rule at December 31, 2013. Basel 1 did not include the Basel 1 – 2013 Rules at December 31, 2012. |
138 Bank of America 2013 |
Table XII Selected Quarterly Financial Data (continued) | |||||||||||||||||||||||||||||||
2013 Quarters | 2012 Quarters | ||||||||||||||||||||||||||||||
(Dollars in millions) | Fourth | Third | Second | First | Fourth | Third | Second | First | |||||||||||||||||||||||
Average balance sheet | |||||||||||||||||||||||||||||||
Total loans and leases | $ | 929,777 | $ | 923,978 | $ | 914,234 | $ | 906,259 | $ | 893,166 | $ | 888,859 | $ | 899,498 | $ | 913,722 | |||||||||||||||
Total assets | 2,134,875 | 2,123,430 | 2,184,610 | 2,212,430 | 2,210,365 | 2,173,312 | 2,194,563 | 2,187,174 | |||||||||||||||||||||||
Total deposits | 1,112,674 | 1,090,611 | 1,079,956 | 1,075,280 | 1,078,076 | 1,049,697 | 1,032,888 | 1,030,112 | |||||||||||||||||||||||
Long-term debt | 251,055 | 258,717 | 270,198 | 273,999 | 277,894 | 291,684 | 333,173 | 363,518 | |||||||||||||||||||||||
Common shareholders’ equity | 220,088 | 216,766 | 218,790 | 218,225 | 219,744 | 217,273 | 216,782 | 214,150 | |||||||||||||||||||||||
Total shareholders’ equity | 233,415 | 230,392 | 235,063 | 236,995 | 238,512 | 236,039 | 235,558 | 232,566 | |||||||||||||||||||||||
Asset quality (4) | |||||||||||||||||||||||||||||||
Allowance for credit losses (5) | $ | 17,912 | $ | 19,912 | $ | 21,709 | $ | 22,927 | $ | 24,692 | $ | 26,751 | $ | 30,862 | $ | 32,862 | |||||||||||||||
Nonperforming loans, leases and foreclosed properties (6) | 17,772 | 20,028 | 21,280 | 22,842 | 23,555 | 24,925 | 25,377 | 27,790 | |||||||||||||||||||||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (6) | 1.90 | % | 2.10 | % | 2.33 | % | 2.49 | % | 2.69 | % | 2.96 | % | 3.43 | % | 3.61 | % | |||||||||||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases (6) | 102 | 100 | 103 | 102 | 107 | 111 | 127 | 126 | |||||||||||||||||||||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the PCI loan portfolio (6) | 87 | 84 | 84 | 82 | 82 | 81 | 90 | 91 | |||||||||||||||||||||||
Amounts included in allowance that are excluded from nonperforming loans and leases (7) | $ | 7,680 | $ | 8,972 | $ | 9,919 | $ | 10,690 | $ | 12,021 | $ | 13,978 | $ | 16,327 | $ | 17,006 | |||||||||||||||
Allowance as a percentage of total nonperforming loans and leases, excluding amounts included in the allowance that are excluded from nonperforming loans and leases (7) | 57 | % | 54 | % | 55 | % | 53 | % | 54 | % | 52 | % | 59 | % | 60 | % | |||||||||||||||
Net charge-offs (8) | $ | 1,582 | $ | 1,687 | $ | 2,111 | $ | 2,517 | $ | 3,104 | $ | 4,122 | $ | 3,626 | $ | 4,056 | |||||||||||||||
Annualized net charge-offs as a percentage of average loans and leases outstanding (6, 8) | 0.68 | % | 0.73 | % | 0.94 | % | 1.14 | % | 1.40 | % | 1.86 | % | 1.64 | % | 1.80 | % | |||||||||||||||
Annualized net charge-offs as a percentage of average loans and leases outstanding, excluding the PCI loan portfolio (6) | 0.70 | 0.75 | 0.97 | 1.18 | 1.44 | 1.93 | 1.69 | 1.87 | |||||||||||||||||||||||
Annualized net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding (6, 9) | 1.00 | 0.92 | 1.07 | 1.52 | 1.90 | 2.63 | 1.64 | 1.80 | |||||||||||||||||||||||
Nonperforming loans and leases as a percentage of total loans and leases outstanding (6) | 1.87 | 2.10 | 2.26 | 2.44 | 2.52 | 2.68 | 2.70 | 2.85 | |||||||||||||||||||||||
Nonperforming loans, leases and foreclosed properties as a percentage of total loans, leases and foreclosed properties (6) | 1.93 | 2.17 | 2.33 | 2.53 | 2.62 | 2.81 | 2.87 | 3.10 | |||||||||||||||||||||||
Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs (8) | 2.78 | 2.90 | 2.51 | 2.20 | 1.96 | 1.60 | 2.08 | 1.97 | |||||||||||||||||||||||
Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs, excluding the PCI loan portfolio | 2.38 | 2.42 | 2.04 | 1.76 | 1.51 | 1.17 | 1.46 | 1.43 | |||||||||||||||||||||||
Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs and PCI write-offs (9) | 1.89 | 2.30 | 2.18 | 1.65 | 1.44 | 1.13 | 2.08 | 1.97 | |||||||||||||||||||||||
Capital ratios at period end (10) | |||||||||||||||||||||||||||||||
Risk-based capital: | |||||||||||||||||||||||||||||||
Tier 1 common capital | 11.19 | % | 11.08 | % | 10.83 | % | 10.49 | % | 11.06 | % | 11.41 | % | 11.24 | % | 10.78 | % | |||||||||||||||
Tier 1 capital | 12.44 | 12.33 | 12.16 | 12.22 | 12.89 | 13.64 | 13.80 | 13.37 | |||||||||||||||||||||||
Total capital | 15.44 | 15.36 | 15.27 | 15.50 | 16.31 | 17.16 | 17.51 | 17.49 | |||||||||||||||||||||||
Tier 1 leverage | 7.86 | 7.79 | 7.49 | 7.49 | 7.37 | 7.84 | 7.84 | 7.79 | |||||||||||||||||||||||
Tangible equity (3) | 7.86 | 7.73 | 7.67 | 7.78 | 7.62 | 7.85 | 7.73 | 7.48 | |||||||||||||||||||||||
Tangible common equity (3) | 7.20 | 7.08 | 6.98 | 6.88 | 6.74 | 6.95 | 6.83 | 6.58 |
Bank of America 2013 139 |
Table XIII Quarterly Average Balances and Interest Rates – FTE Basis | |||||||||||||||||||||
Fourth Quarter 2013 | Third Quarter 2013 | ||||||||||||||||||||
(Dollars in millions) | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||
Earning assets | |||||||||||||||||||||
Time deposits placed and other short-term investments (1) | $ | 15,782 | $ | 48 | 1.21 | % | $ | 17,256 | $ | 47 | 1.07 | % | |||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 203,415 | 304 | 0.59 | 223,434 | 291 | 0.52 | |||||||||||||||
Trading account assets | 156,194 | 1,182 | 3.01 | 144,502 | 1,093 | 3.01 | |||||||||||||||
Debt securities (2) | 325,119 | 2,455 | 3.02 | 327,493 | 2,211 | 2.70 | |||||||||||||||
Loans and leases (3): | |||||||||||||||||||||
Residential mortgage (4) | 253,974 | 2,374 | 3.74 | 256,297 | 2,359 | 3.68 | |||||||||||||||
Home equity | 95,388 | 953 | 3.97 | 98,172 | 930 | 3.77 | |||||||||||||||
U.S. credit card | 90,057 | 2,125 | 9.36 | 90,005 | 2,226 | 9.81 | |||||||||||||||
Non-U.S. credit card | 11,171 | 310 | 11.01 | 10,633 | 317 | 11.81 | |||||||||||||||
Direct/Indirect consumer (5) | 82,990 | 565 | 2.70 | 83,773 | 587 | 2.78 | |||||||||||||||
Other consumer (6) | 1,929 | 17 | 3.73 | 1,867 | 19 | 3.89 | |||||||||||||||
Total consumer | 535,509 | 6,344 | 4.72 | 540,747 | 6,438 | 4.74 | |||||||||||||||
U.S. commercial | 225,596 | 1,700 | 2.99 | 221,542 | 1,704 | 3.05 | |||||||||||||||
Commercial real estate (7) | 46,341 | 374 | 3.20 | 43,164 | 352 | 3.24 | |||||||||||||||
Commercial lease financing | 24,468 | 206 | 3.37 | 23,869 | 204 | 3.41 | |||||||||||||||
Non-U.S. commercial | 97,863 | 544 | 2.20 | 94,656 | 528 | 2.22 | |||||||||||||||
Total commercial | 394,268 | 2,824 | 2.84 | 383,231 | 2,788 | 2.89 | |||||||||||||||
Total loans and leases | 929,777 | 9,168 | 3.92 | 923,978 | 9,226 | 3.97 | |||||||||||||||
Other earning assets | 78,214 | 709 | 3.61 | 74,022 | 677 | 3.62 | |||||||||||||||
Total earning assets (8) | 1,708,501 | 13,866 | 3.23 | 1,710,685 | 13,545 | 3.15 | |||||||||||||||
Cash and cash equivalents (1) | 125,259 | 59 | 113,064 | 50 | |||||||||||||||||
Other assets, less allowance for loan and lease losses | 301,115 | 299,681 | |||||||||||||||||||
Total assets | $ | 2,134,875 | $ | 2,123,430 | |||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||
U.S. interest-bearing deposits: | |||||||||||||||||||||
Savings | $ | 43,665 | $ | 5 | 0.05 | % | $ | 43,968 | $ | 5 | 0.05 | % | |||||||||
NOW and money market deposit accounts | 514,220 | 89 | 0.07 | 508,136 | 100 | 0.08 | |||||||||||||||
Consumer CDs and IRAs | 77,424 | 97 | 0.50 | 81,190 | 116 | 0.56 | |||||||||||||||
Negotiable CDs, public funds and other deposits | 26,271 | 28 | 0.40 | 24,079 | 25 | 0.42 | |||||||||||||||
Total U.S. interest-bearing deposits | 661,580 | 219 | 0.13 | 657,373 | 246 | 0.15 | |||||||||||||||
Non-U.S. interest-bearing deposits: | |||||||||||||||||||||
Banks located in non-U.S. countries | 13,878 | 18 | 0.52 | 12,789 | 16 | 0.47 | |||||||||||||||
Governments and official institutions | 1,258 | — | 0.22 | 1,041 | 1 | 0.25 | |||||||||||||||
Time, savings and other | 59,029 | 77 | 0.51 | 55,446 | 71 | 0.52 | |||||||||||||||
Total non-U.S. interest-bearing deposits | 74,165 | 95 | 0.51 | 69,276 | 88 | 0.50 | |||||||||||||||
Total interest-bearing deposits | 735,745 | 314 | 0.17 | 726,649 | 334 | 0.18 | |||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings | 271,538 | 682 | 1.00 | 279,425 | 683 | 0.97 | |||||||||||||||
Trading account liabilities | 82,393 | 364 | 1.75 | 84,648 | 375 | 1.76 | |||||||||||||||
Long-term debt | 251,055 | 1,566 | 2.48 | 258,717 | 1,724 | 2.65 | |||||||||||||||
Total interest-bearing liabilities (8) | 1,340,731 | 2,926 | 0.87 | 1,349,439 | 3,116 | 0.92 | |||||||||||||||
Noninterest-bearing sources: | |||||||||||||||||||||
Noninterest-bearing deposits | 376,929 | 363,962 | |||||||||||||||||||
Other liabilities | 183,800 | 179,637 | |||||||||||||||||||
Shareholders’ equity | 233,415 | 230,392 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,134,875 | $ | 2,123,430 | |||||||||||||||||
Net interest spread | 2.36 | % | 2.23 | % | |||||||||||||||||
Impact of noninterest-bearing sources | 0.19 | 0.20 | |||||||||||||||||||
Net interest income/yield on earning assets (1) | $ | 10,940 | 2.55 | % | $ | 10,429 | 2.43 | % |
(1) | For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Consolidated Balance Sheet presentation of these deposits. In addition, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, which are included in the time deposits placed and other short-term investments line in prior periods, are included in the cash and cash equivalents line. Net interest income and net interest yield are calculated excluding the fees included in the cash and cash equivalents line. |
(2) | Yields on debt securities carried at fair value are calculated based on fair value rather than the cost basis. The use of fair value does not have a material impact on net interest yield. |
(3) | Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis. PCI loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan. |
(4) | Includes non-U.S. residential mortgage loans of $56 million, $83 million, $86 million and $90 million in the fourth, third, second and first quarters of 2013, respectively, and $93 million in the fourth quarter of 2012. |
(5) | Includes non-U.S. consumer loans of $5.1 billion, $6.7 billion, $7.5 billion and $7.7 billion in the fourth, third, second and first quarters of 2013, respectively, and $8.1 billion in the fourth quarter of 2012. |
(6) | Includes consumer finance loans of $1.2 billion, $1.3 billion, $1.3 billion and $1.4 billion in the fourth, third, second and first quarters of 2013, respectively, and $1.4 billion in the fourth quarter of 2012; consumer leases of $549 million, $422 million, $291 million and $138 million in the fourth, third, second and first quarters of 2013, respectively, and $3 million in the fourth quarter of 2012; other non-U.S. consumer loans of $5 million for each of the quarters of 2013, and $4 million in the fourth quarter of 2012; and consumer overdrafts of $163 million, $172 million, $136 million and $142 million in the fourth, third, second and first quarters of 2013, respectively, and $156 million in the fourth quarter of 2012. |
(7) | Includes U.S. commercial real estate loans of $44.5 billion, $41.5 billion, $39.1 billion and $37.7 billion in the fourth, third, second and first quarters of 2013, respectively, and $36.7 billion in the fourth quarter of 2012; and non-U.S. commercial real estate loans of $1.8 billion, $1.7 billion, $1.5 billion and $1.5 billion in the fourth, third, second and first quarters of 2013, respectively, and $1.5 billion in the fourth quarter of 2012. |
(8) | Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets by $0, $1 million, $63 million and $141 million in the fourth, third, second and first quarters of 2013, respectively, and $146 million in the fourth quarter of 2012. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities by $588 million, $556 million, $660 million and $618 million in the fourth, third, second and first quarters of 2013, respectively, and $598 million in the fourth quarter of 2012. For more information on interest rate contracts, see Interest Rate Risk Management for Nontrading Activities on page 113. |
140 Bank of America 2013 |
Table XIII Quarterly Average Balances and Interest Rates – FTE Basis (continued) | ||||||||||||||||||||||||||||||||
Second Quarter 2013 | First Quarter 2013 | Fourth Quarter 2012 | ||||||||||||||||||||||||||||||
(Dollars in millions) | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||||||||
Earning assets | ||||||||||||||||||||||||||||||||
Time deposits placed and other short-term investments (1) | $ | 15,088 | $ | 46 | 1.21 | % | $ | 16,129 | $ | 46 | 1.17 | % | $ | 16,967 | $ | 50 | 1.14 | % | ||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 233,394 | 319 | 0.55 | 237,463 | 315 | 0.54 | 241,950 | 329 | 0.54 | |||||||||||||||||||||||
Trading account assets | 181,620 | 1,224 | 2.70 | 194,364 | 1,380 | 2.87 | 186,252 | 1,362 | 2.91 | |||||||||||||||||||||||
Debt securities (2) | 343,260 | 2,557 | 2.98 | 356,399 | 2,556 | 2.87 | 360,213 | 2,201 | 2.44 | |||||||||||||||||||||||
Loans and leases (3): | ||||||||||||||||||||||||||||||||
Residential mortgage (4) | 257,275 | 2,246 | 3.49 | 258,630 | 2,340 | 3.62 | 256,564 | 2,292 | 3.57 | |||||||||||||||||||||||
Home equity | 101,708 | 951 | 3.74 | 105,939 | 997 | 3.80 | 110,270 | 1,068 | 3.86 | |||||||||||||||||||||||
U.S. credit card | 89,722 | 2,192 | 9.80 | 91,712 | 2,249 | 9.95 | 92,849 | 2,336 | 10.01 | |||||||||||||||||||||||
Non-U.S. credit card | 10,613 | 315 | 11.93 | 11,027 | 329 | 12.10 | 13,081 | 383 | 11.66 | |||||||||||||||||||||||
Direct/Indirect consumer (5) | 82,485 | 598 | 2.90 | 82,364 | 620 | 3.06 | 82,583 | 662 | 3.19 | |||||||||||||||||||||||
Other consumer (6) | 1,756 | 17 | 4.17 | 1,666 | 19 | 4.36 | 1,602 | 19 | 4.57 | |||||||||||||||||||||||
Total consumer | 543,559 | 6,319 | 4.66 | 551,338 | 6,554 | 4.79 | 556,949 | 6,760 | 4.84 | |||||||||||||||||||||||
U.S. commercial | 217,464 | 1,741 | 3.21 | 210,706 | 1,666 | 3.20 | 209,496 | 1,729 | 3.28 | |||||||||||||||||||||||
Commercial real estate (7) | 40,612 | 340 | 3.36 | 39,179 | 326 | 3.38 | 38,192 | 341 | 3.55 | |||||||||||||||||||||||
Commercial lease financing | 23,579 | 205 | 3.48 | 23,534 | 236 | 4.01 | 22,839 | 184 | 3.23 | |||||||||||||||||||||||
Non-U.S. commercial | 89,020 | 543 | 2.45 | 81,502 | 467 | 2.32 | 65,690 | 433 | 2.62 | |||||||||||||||||||||||
Total commercial | 370,675 | 2,829 | 3.06 | 354,921 | 2,695 | 3.07 | 336,217 | 2,687 | 3.18 | |||||||||||||||||||||||
Total loans and leases | 914,234 | 9,148 | 4.01 | 906,259 | 9,249 | 4.12 | 893,166 | 9,447 | 4.21 | |||||||||||||||||||||||
Other earning assets | 81,740 | 713 | 3.50 | 90,172 | 733 | 3.29 | 90,388 | 771 | 3.40 | |||||||||||||||||||||||
Total earning assets (8) | 1,769,336 | 14,007 | 3.17 | 1,800,786 | 14,279 | 3.20 | 1,788,936 | 14,160 | 3.16 | |||||||||||||||||||||||
Cash and cash equivalents (1) | 104,486 | 40 | 92,846 | 33 | 111,671 | 42 | ||||||||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 310,788 | 318,798 | 309,758 | |||||||||||||||||||||||||||||
Total assets | $ | 2,184,610 | $ | 2,212,430 | $ | 2,210,365 | ||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||
U.S. interest-bearing deposits: | ||||||||||||||||||||||||||||||||
Savings | $ | 44,897 | $ | 6 | 0.05 | % | $ | 42,934 | $ | 6 | 0.05 | % | $ | 41,294 | $ | 6 | 0.06 | % | ||||||||||||||
NOW and money market deposit accounts | 500,628 | 107 | 0.09 | 501,177 | 117 | 0.09 | 479,130 | 146 | 0.12 | |||||||||||||||||||||||
Consumer CDs and IRAs | 85,001 | 130 | 0.62 | 88,376 | 138 | 0.63 | 91,256 | 156 | 0.68 | |||||||||||||||||||||||
Negotiable CDs, public funds and other deposits | 22,721 | 27 | 0.46 | 20,880 | 26 | 0.52 | 19,904 | 27 | 0.54 | |||||||||||||||||||||||
Total U.S. interest-bearing deposits | 653,247 | 270 | 0.17 | 653,367 | 287 | 0.18 | 631,584 | 335 | 0.21 | |||||||||||||||||||||||
Non-U.S. interest-bearing deposits: | ||||||||||||||||||||||||||||||||
Banks located in non-U.S. countries | 10,832 | 17 | 0.64 | 12,155 | 19 | 0.64 | 11,970 | 22 | 0.71 | |||||||||||||||||||||||
Governments and official institutions | 924 | — | 0.26 | 901 | 1 | 0.23 | 876 | 1 | 0.29 | |||||||||||||||||||||||
Time, savings and other | 55,661 | 79 | 0.56 | 54,597 | 75 | 0.56 | 53,649 | 80 | 0.60 | |||||||||||||||||||||||
Total non-U.S. interest-bearing deposits | 67,417 | 96 | 0.57 | 67,653 | 95 | 0.57 | 66,495 | 103 | 0.62 | |||||||||||||||||||||||
Total interest-bearing deposits | 720,664 | 366 | 0.20 | 721,020 | 382 | 0.22 | 698,079 | 438 | 0.25 | |||||||||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings | 318,028 | 809 | 1.02 | 337,644 | 749 | 0.90 | 336,341 | 855 | 1.01 | |||||||||||||||||||||||
Trading account liabilities | 94,349 | 427 | 1.82 | 92,047 | 472 | 2.08 | 80,084 | 420 | 2.09 | |||||||||||||||||||||||
Long-term debt | 270,198 | 1,674 | 2.48 | 273,999 | 1,834 | 2.70 | 277,894 | 1,934 | 2.77 | |||||||||||||||||||||||
Total interest-bearing liabilities (8) | 1,403,239 | 3,276 | 0.94 | 1,424,710 | 3,437 | 0.98 | 1,392,398 | 3,647 | 1.04 | |||||||||||||||||||||||
Noninterest-bearing sources: | ||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 359,292 | 354,260 | 379,997 | |||||||||||||||||||||||||||||
Other liabilities | 187,016 | 196,465 | 199,458 | |||||||||||||||||||||||||||||
Shareholders’ equity | 235,063 | 236,995 | 238,512 | |||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,184,610 | $ | 2,212,430 | $ | 2,210,365 | ||||||||||||||||||||||||||
Net interest spread | 2.23 | % | 2.22 | % | 2.12 | % | ||||||||||||||||||||||||||
Impact of noninterest-bearing sources | 0.20 | 0.21 | 0.22 | |||||||||||||||||||||||||||||
Net interest income/yield on earning assets (1) | $ | 10,731 | 2.43 | % | $ | 10,842 | 2.43 | % | $ | 10,513 | 2.34 | % |
Bank of America 2013 141 |
Table XIV Quarterly Supplemental Financial Data | |||||||||||||||||||||||||||||||
2013 Quarters | 2012 Quarters | ||||||||||||||||||||||||||||||
(Dollars in millions, except per share information) | Fourth | Third | Second | First | Fourth | Third | Second | First | |||||||||||||||||||||||
Fully taxable-equivalent basis data (1) | |||||||||||||||||||||||||||||||
Net interest income (2) | $ | 10,999 | $ | 10,479 | $ | 10,771 | $ | 10,875 | $ | 10,555 | $ | 10,167 | $ | 9,782 | $ | 11,053 | |||||||||||||||
Total revenue, net of interest expense | 21,701 | 21,743 | 22,949 | 23,408 | 18,891 | 20,657 | 22,202 | 22,485 | |||||||||||||||||||||||
Net interest yield (2) | 2.56 | % | 2.44 | % | 2.44 | % | 2.43 | % | 2.35 | % | 2.32 | % | 2.21 | % | 2.51 | % | |||||||||||||||
Efficiency ratio | 79.75 | 75.38 | 69.80 | 83.31 | 97.19 | 84.93 | 76.79 | 85.13 |
(1) | FTE basis is a non-GAAP financial measure. For more information on these performance measures and ratios, see Supplemental Financial Data on page 33 and for corresponding reconciliations to GAAP financial measures, see Statistical Table XVII. |
(2) | Net interest income and net interest yield include fees earned on overnight deposits placed with the Federal Reserve and fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks. |
142 Bank of America 2013 |
Table XV Five-year Reconciliations to GAAP Financial Measures (1) | |||||||||||||||||||
(Dollars in millions, shares in thousands) | 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis | |||||||||||||||||||
Net interest income | $ | 42,265 | $ | 40,656 | $ | 44,616 | $ | 51,523 | $ | 47,109 | |||||||||
Fully taxable-equivalent adjustment | 859 | 901 | 972 | 1,170 | 1,301 | ||||||||||||||
Net interest income on a fully taxable-equivalent basis | $ | 43,124 | $ | 41,557 | $ | 45,588 | $ | 52,693 | $ | 48,410 | |||||||||
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 | $ | 88,942 | $ | 83,334 | $ | 93,454 | $ | 110,220 | $ | 119,643 | |||||||||
Fully taxable-equivalent adjustment | 859 | 901 | 972 | 1,170 | 1,301 | ||||||||||||||
Total revenue, net of interest expense on a fully taxable-equivalent basis | $ | 89,801 | $ | 84,235 | $ | 94,426 | $ | 111,390 | $ | 120,944 | |||||||||
Reconciliation of total noninterest expense to total noninterest expense, excluding goodwill impairment charges | |||||||||||||||||||
Total noninterest expense | $ | 69,214 | $ | 72,093 | $ | 80,274 | $ | 83,108 | $ | 66,713 | |||||||||
Goodwill impairment charges | — | — | (3,184 | ) | (12,400 | ) | — | ||||||||||||
Total noninterest expense, excluding goodwill impairment charges | $ | 69,214 | $ | 72,093 | $ | 77,090 | $ | 70,708 | $ | 66,713 | |||||||||
Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis | |||||||||||||||||||
Income tax expense (benefit) | $ | 4,741 | $ | (1,116 | ) | $ | (1,676 | ) | $ | 915 | $ | (1,916 | ) | ||||||
Fully taxable-equivalent adjustment | 859 | 901 | 972 | 1,170 | 1,301 | ||||||||||||||
Income tax expense (benefit) on a fully taxable-equivalent basis | $ | 5,600 | $ | (215 | ) | $ | (704 | ) | $ | 2,085 | $ | (615 | ) | ||||||
Reconciliation of net income (loss) to net income, excluding goodwill impairment charges | |||||||||||||||||||
Net income (loss) | $ | 11,431 | $ | 4,188 | $ | 1,446 | $ | (2,238 | ) | $ | 6,276 | ||||||||
Goodwill impairment charges | — | — | 3,184 | 12,400 | — | ||||||||||||||
Net income, excluding goodwill impairment charges | $ | 11,431 | $ | 4,188 | $ | 4,630 | $ | 10,162 | $ | 6,276 | |||||||||
Reconciliation of net income (loss) applicable to common shareholders to net income (loss) applicable to common shareholders, excluding goodwill impairment charges | |||||||||||||||||||
Net income (loss) applicable to common shareholders | $ | 10,082 | $ | 2,760 | $ | 85 | $ | (3,595 | ) | $ | (2,204 | ) | |||||||
Goodwill impairment charges | — | — | 3,184 | 12,400 | — | ||||||||||||||
Net income (loss) applicable to common shareholders, excluding goodwill impairment charges | $ | 10,082 | $ | 2,760 | $ | 3,269 | $ | 8,805 | $ | (2,204 | ) | ||||||||
Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity | |||||||||||||||||||
Common shareholders’ equity | $ | 218,468 | $ | 216,996 | $ | 211,709 | $ | 212,686 | $ | 182,288 | |||||||||
Common Equivalent Securities | — | — | — | 2,900 | 1,213 | ||||||||||||||
Goodwill | (69,910 | ) | (69,974 | ) | (72,334 | ) | (82,600 | ) | (86,034 | ) | |||||||||
Intangible assets (excluding MSRs) | (6,132 | ) | (7,366 | ) | (9,180 | ) | (10,985 | ) | (12,220 | ) | |||||||||
Related deferred tax liabilities | 2,328 | 2,593 | 2,898 | 3,306 | 3,831 | ||||||||||||||
Tangible common shareholders’ equity | $ | 144,754 | $ | 142,249 | $ | 133,093 | $ | 125,307 | $ | 89,078 | |||||||||
Reconciliation of average shareholders’ equity to average tangible shareholders’ equity | |||||||||||||||||||
Shareholders’ equity | $ | 233,947 | $ | 235,677 | $ | 229,095 | $ | 233,235 | $ | 244,645 | |||||||||
Goodwill | (69,910 | ) | (69,974 | ) | (72,334 | ) | (82,600 | ) | (86,034 | ) | |||||||||
Intangible assets (excluding MSRs) | (6,132 | ) | (7,366 | ) | (9,180 | ) | (10,985 | ) | (12,220 | ) | |||||||||
Related deferred tax liabilities | 2,328 | 2,593 | 2,898 | 3,306 | 3,831 | ||||||||||||||
Tangible shareholders’ equity | $ | 160,233 | $ | 160,930 | $ | 150,479 | $ | 142,956 | $ | 150,222 | |||||||||
Reconciliation of year-end common shareholders’ equity to year-end tangible common shareholders’ equity | |||||||||||||||||||
Common shareholders’ equity | $ | 219,333 | $ | 218,188 | $ | 211,704 | $ | 211,686 | $ | 194,236 | |||||||||
Common Equivalent Securities | — | — | — | — | 19,244 | ||||||||||||||
Goodwill | (69,844 | ) | (69,976 | ) | (69,967 | ) | (73,861 | ) | (86,314 | ) | |||||||||
Intangible assets (excluding MSRs) | (5,574 | ) | (6,684 | ) | (8,021 | ) | (9,923 | ) | (12,026 | ) | |||||||||
Related deferred tax liabilities | 2,166 | 2,428 | 2,702 | 3,036 | 3,498 | ||||||||||||||
Tangible common shareholders’ equity | $ | 146,081 | $ | 143,956 | $ | 136,418 | $ | 130,938 | $ | 118,638 | |||||||||
Reconciliation of year-end shareholders’ equity to year-end tangible shareholders’ equity | |||||||||||||||||||
Shareholders’ equity | $ | 232,685 | $ | 236,956 | $ | 230,101 | $ | 228,248 | $ | 231,444 | |||||||||
Goodwill | (69,844 | ) | (69,976 | ) | (69,967 | ) | (73,861 | ) | (86,314 | ) | |||||||||
Intangible assets (excluding MSRs) | (5,574 | ) | (6,684 | ) | (8,021 | ) | (9,923 | ) | (12,026 | ) | |||||||||
Related deferred tax liabilities | 2,166 | 2,428 | 2,702 | 3,036 | 3,498 | ||||||||||||||
Tangible shareholders’ equity | $ | 159,433 | $ | 162,724 | $ | 154,815 | $ | 147,500 | $ | 136,602 | |||||||||
Reconciliation of year-end assets to year-end tangible assets | |||||||||||||||||||
Assets | $ | 2,102,273 | $ | 2,209,974 | $ | 2,129,046 | $ | 2,264,909 | $ | 2,230,232 | |||||||||
Goodwill | (69,844 | ) | (69,976 | ) | (69,967 | ) | (73,861 | ) | (86,314 | ) | |||||||||
Intangible assets (excluding MSRs) | (5,574 | ) | (6,684 | ) | (8,021 | ) | (9,923 | ) | (12,026 | ) | |||||||||
Related deferred tax liabilities | 2,166 | 2,428 | 2,702 | 3,036 | 3,498 | ||||||||||||||
Tangible assets | $ | 2,029,021 | $ | 2,135,742 | $ | 2,053,760 | $ | 2,184,161 | $ | 2,135,390 | |||||||||
Reconciliation of year-end common shares outstanding to year-end tangible common shares outstanding | |||||||||||||||||||
Common shares outstanding | 10,591,808 | 10,778,264 | 10,535,938 | 10,085,155 | 8,650,244 | ||||||||||||||
Assumed conversion of common equivalent shares (2) | — | — | — | — | 1,286,000 | ||||||||||||||
Tangible common shares outstanding | 10,591,808 | 10,778,264 | 10,535,938 | 10,085,155 | 9,936,244 |
(1) | Presents reconciliations of non-GAAP financial measures to 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 these measures differently. For more information on non-GAAP financial measures and ratios we use in assessing the results of the Corporation, see Supplemental Financial Data on page 33. |
(2) | On February 24, 2010, the common equivalent shares converted into common shares. |
Bank of America 2013 143 |
Table XVI Two-year Reconciliations to GAAP Financial Measures (1, 2) | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Consumer & Business Banking | |||||||
Reported net income | $ | 6,588 | $ | 5,546 | |||
Adjustment related to intangibles (3) | 7 | 13 | |||||
Adjusted net income | $ | 6,595 | $ | 5,559 | |||
Average allocated equity (4) | $ | 62,045 | $ | 56,214 | |||
Adjustment related to goodwill and a percentage of intangibles | (32,045 | ) | (32,163 | ) | |||
Average allocated capital/economic capital | $ | 30,000 | $ | 24,051 | |||
Deposits | |||||||
Reported net income | $ | 2,127 | $ | 1,261 | |||
Adjustment related to intangibles (3) | 1 | 2 | |||||
Adjusted net income | $ | 2,128 | $ | 1,263 | |||
Average allocated equity (4) | $ | 35,400 | $ | 33,006 | |||
Adjustment related to goodwill and a percentage of intangibles | (20,000 | ) | (20,021 | ) | |||
Average allocated capital/economic capital | $ | 15,400 | $ | 12,985 | |||
Consumer Lending | |||||||
Reported net income | $ | 4,461 | $ | 4,285 | |||
Adjustment related to intangibles (3) | 7 | 12 | |||||
Adjusted net income | $ | 4,468 | $ | 4,297 | |||
Average allocated equity (4) | $ | 26,644 | $ | 23,208 | |||
Adjustment related to goodwill and a percentage of intangibles | (12,044 | ) | (12,142 | ) | |||
Average allocated capital/economic capital | $ | 14,600 | $ | 11,066 | |||
Global Wealth & Investment Management | |||||||
Reported net income | $ | 2,974 | $ | 2,245 | |||
Adjustment related to intangibles (3) | 16 | 22 | |||||
Adjusted net income | $ | 2,990 | $ | 2,267 | |||
Average allocated equity (4) | $ | 20,292 | $ | 17,729 | |||
Adjustment related to goodwill and a percentage of intangibles | (10,292 | ) | (10,370 | ) | |||
Average allocated capital/economic capital | $ | 10,000 | $ | 7,359 | |||
Global Banking | |||||||
Reported net income | $ | 4,974 | $ | 5,344 | |||
Adjustment related to intangibles (3) | 2 | 4 | |||||
Adjusted net income | $ | 4,976 | $ | 5,348 | |||
Average allocated equity (4) | $ | 45,412 | $ | 41,742 | |||
Adjustment related to goodwill and a percentage of intangibles | (22,412 | ) | (22,430 | ) | |||
Average allocated capital/economic capital | $ | 23,000 | $ | 19,312 | |||
Global Markets | |||||||
Reported net income | $ | 1,563 | $ | 1,229 | |||
Adjustment related to intangibles (3) | 8 | 9 | |||||
Adjusted net income | $ | 1,571 | $ | 1,238 | |||
Average allocated equity (4) | $ | 35,373 | $ | 19,193 | |||
Adjustment related to goodwill and a percentage of intangibles | (5,373 | ) | (5,369 | ) | |||
Average allocated capital/economic capital | $ | 30,000 | $ | 13,824 |
(1) | Presents reconciliations of non-GAAP financial measures to GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation and our segments. Other companies may define or calculate these measures differently. For more information on non-GAAP financial measures and ratios we use in assessing the results of the Corporation, see Supplemental Financial Data on page 33. |
(2) | There are no adjustments to reported net income (loss) or average allocated equity for CRES. |
(3) | Represents cost of funds, earnings credits and certain expenses related to intangibles. |
(4) | 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. For more information on allocated capital and economic capital, see Business Segment Operations on page 35 and Note 8 – Goodwill and Intangible Assets to the Consolidated Financial Statements. |
144 Bank of America 2013 |
Table XVII Quarterly Reconciliations to GAAP Financial Measures (1) | |||||||||||||||||||||||||||||||
2013 Quarters | 2012 Quarters | ||||||||||||||||||||||||||||||
(Dollars in millions) | Fourth | Third | Second | First | Fourth | Third | Second | First | |||||||||||||||||||||||
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis | |||||||||||||||||||||||||||||||
Net interest income | $ | 10,786 | $ | 10,266 | $ | 10,549 | $ | 10,664 | $ | 10,324 | $ | 9,938 | $ | 9,548 | $ | 10,846 | |||||||||||||||
Fully taxable-equivalent adjustment | 213 | 213 | 222 | 211 | 231 | 229 | 234 | 207 | |||||||||||||||||||||||
Net interest income on a fully taxable-equivalent basis | $ | 10,999 | $ | 10,479 | $ | 10,771 | $ | 10,875 | $ | 10,555 | $ | 10,167 | $ | 9,782 | $ | 11,053 | |||||||||||||||
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 | $ | 21,488 | $ | 21,530 | $ | 22,727 | $ | 23,197 | $ | 18,660 | $ | 20,428 | $ | 21,968 | $ | 22,278 | |||||||||||||||
Fully taxable-equivalent adjustment | 213 | 213 | 222 | 211 | 231 | 229 | 234 | 207 | |||||||||||||||||||||||
Total revenue, net of interest expense on a fully taxable-equivalent basis | $ | 21,701 | $ | 21,743 | $ | 22,949 | $ | 23,408 | $ | 18,891 | $ | 20,657 | $ | 22,202 | $ | 22,485 | |||||||||||||||
Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis | |||||||||||||||||||||||||||||||
Income tax expense (benefit) | $ | 406 | $ | 2,348 | $ | 1,486 | $ | 501 | $ | (2,636 | ) | $ | 770 | $ | 684 | $ | 66 | ||||||||||||||
Fully taxable-equivalent adjustment | 213 | 213 | 222 | 211 | 231 | 229 | 234 | 207 | |||||||||||||||||||||||
Income tax expense (benefit) on a fully taxable-equivalent basis | $ | 619 | $ | 2,561 | $ | 1,708 | $ | 712 | $ | (2,405 | ) | $ | 999 | $ | 918 | $ | 273 | ||||||||||||||
Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity | |||||||||||||||||||||||||||||||
Common shareholders’ equity | $ | 220,088 | $ | 216,766 | $ | 218,790 | $ | 218,225 | $ | 219,744 | $ | 217,273 | $ | 216,782 | $ | 214,150 | |||||||||||||||
Goodwill | (69,864 | ) | (69,903 | ) | (69,930 | ) | (69,945 | ) | (69,976 | ) | (69,976 | ) | (69,976 | ) | (69,967 | ) | |||||||||||||||
Intangible assets (excluding MSRs) | (5,725 | ) | (5,993 | ) | (6,270 | ) | (6,549 | ) | (6,874 | ) | (7,194 | ) | (7,533 | ) | (7,869 | ) | |||||||||||||||
Related deferred tax liabilities | 2,231 | 2,296 | 2,360 | 2,425 | 2,490 | 2,556 | 2,626 | 2,700 | |||||||||||||||||||||||
Tangible common shareholders’ equity | $ | 146,730 | $ | 143,166 | $ | 144,950 | $ | 144,156 | $ | 145,384 | $ | 142,659 | $ | 141,899 | $ | 139,014 | |||||||||||||||
Reconciliation of average shareholders’ equity to average tangible shareholders’ equity | |||||||||||||||||||||||||||||||
Shareholders’ equity | $ | 233,415 | $ | 230,392 | $ | 235,063 | $ | 236,995 | $ | 238,512 | $ | 236,039 | $ | 235,558 | $ | 232,566 | |||||||||||||||
Goodwill | (69,864 | ) | (69,903 | ) | (69,930 | ) | (69,945 | ) | (69,976 | ) | (69,976 | ) | (69,976 | ) | (69,967 | ) | |||||||||||||||
Intangible assets (excluding MSRs) | (5,725 | ) | (5,993 | ) | (6,270 | ) | (6,549 | ) | (6,874 | ) | (7,194 | ) | (7,533 | ) | (7,869 | ) | |||||||||||||||
Related deferred tax liabilities | 2,231 | 2,296 | 2,360 | 2,425 | 2,490 | 2,556 | 2,626 | 2,700 | |||||||||||||||||||||||
Tangible shareholders’ equity | $ | 160,057 | $ | 156,792 | $ | 161,223 | $ | 162,926 | $ | 164,152 | $ | 161,425 | $ | 160,675 | $ | 157,430 | |||||||||||||||
Reconciliation of period-end common shareholders’ equity to period-end tangible common shareholders’ equity | |||||||||||||||||||||||||||||||
Common shareholders’ equity | $ | 219,333 | $ | 218,967 | $ | 216,791 | $ | 218,513 | $ | 218,188 | $ | 219,838 | $ | 217,213 | $ | 213,711 | |||||||||||||||
Goodwill | (69,844 | ) | (69,891 | ) | (69,930 | ) | (69,930 | ) | (69,976 | ) | (69,976 | ) | (69,976 | ) | (69,976 | ) | |||||||||||||||
Intangible assets (excluding MSRs) | (5,574 | ) | (5,843 | ) | (6,104 | ) | (6,379 | ) | (6,684 | ) | (7,030 | ) | (7,335 | ) | (7,696 | ) | |||||||||||||||
Related deferred tax liabilities | 2,166 | 2,231 | 2,297 | 2,363 | 2,428 | 2,494 | 2,559 | 2,628 | |||||||||||||||||||||||
Tangible common shareholders’ equity | $ | 146,081 | $ | 145,464 | $ | 143,054 | $ | 144,567 | $ | 143,956 | $ | 145,326 | $ | 142,461 | $ | 138,667 | |||||||||||||||
Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity | |||||||||||||||||||||||||||||||
Shareholders’ equity | $ | 232,685 | $ | 232,282 | $ | 231,032 | $ | 237,293 | $ | 236,956 | $ | 238,606 | $ | 235,975 | $ | 232,499 | |||||||||||||||
Goodwill | (69,844 | ) | (69,891 | ) | (69,930 | ) | (69,930 | ) | (69,976 | ) | (69,976 | ) | (69,976 | ) | (69,976 | ) | |||||||||||||||
Intangible assets (excluding MSRs) | (5,574 | ) | (5,843 | ) | (6,104 | ) | (6,379 | ) | (6,684 | ) | (7,030 | ) | (7,335 | ) | (7,696 | ) | |||||||||||||||
Related deferred tax liabilities | 2,166 | 2,231 | 2,297 | 2,363 | 2,428 | 2,494 | 2,559 | 2,628 | |||||||||||||||||||||||
Tangible shareholders’ equity | $ | 159,433 | $ | 158,779 | $ | 157,295 | $ | 163,347 | $ | 162,724 | $ | 164,094 | $ | 161,223 | $ | 157,455 | |||||||||||||||
Reconciliation of period-end assets to period-end tangible assets | |||||||||||||||||||||||||||||||
Assets | $ | 2,102,273 | $ | 2,126,653 | $ | 2,123,320 | $ | 2,174,819 | $ | 2,209,974 | $ | 2,166,162 | $ | 2,160,854 | $ | 2,181,449 | |||||||||||||||
Goodwill | (69,844 | ) | (69,891 | ) | (69,930 | ) | (69,930 | ) | (69,976 | ) | (69,976 | ) | (69,976 | ) | (69,976 | ) | |||||||||||||||
Intangible assets (excluding MSRs) | (5,574 | ) | (5,843 | ) | (6,104 | ) | (6,379 | ) | (6,684 | ) | (7,030 | ) | (7,335 | ) | (7,696 | ) | |||||||||||||||
Related deferred tax liabilities | 2,166 | 2,231 | 2,297 | 2,363 | 2,428 | 2,494 | 2,559 | 2,628 | |||||||||||||||||||||||
Tangible assets | $ | 2,029,021 | $ | 2,053,150 | $ | 2,049,583 | $ | 2,100,873 | $ | 2,135,742 | $ | 2,091,650 | $ | 2,086,102 | $ | 2,106,405 |
(1) | Presents reconciliations of non-GAAP financial measures to 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 these measures differently. For more information on non-GAAP financial measures and ratios we use in assessing the results of the Corporation, see Supplemental Financial Data on page 33. |
Bank of America 2013 145 |
146 Bank of America 2013 |
Bank of America 2013 147 |
ABS | Asset-backed securities |
AFS | Available-for-sale |
ALM | Asset and liability management |
ALMRC | Asset Liability and Market Risk Committee |
ARM | Adjustable-rate mortgage |
BHC | Bank holding company |
CCAR | Comprehensive Capital Analysis and Review |
CDO | Collateralized debt obligation |
CLO | Collateralized loan obligation |
CMBS | Commercial mortgage-backed securities |
CRA | Community Reinvestment Act |
CRC | Credit Risk Committee |
EAD | Exposure at default |
FDIC | Federal Deposit Insurance Corporation |
FHA | Federal Housing Administration |
FHLMC | Freddie Mac |
FICC | Fixed income, currencies and commodities |
FICO | Fair Isaac Corporation (credit score) |
FNMA | Fannie Mae |
FTE | Fully taxable-equivalent |
GAAP | Accounting principles generally accepted in the United States of America |
GMRC | Global Markets Risk Committee |
GNMA | Government National Mortgage Association |
GSE | Government-sponsored enterprise |
HELOC | Home equity lines of credit |
HFI | Held-for-investment |
HUD | U.S. Department of Housing and Urban Development |
LCR | Liquidity Coverage Ratio |
LGD | Loss-given default |
LHFS | Loans held-for-sale |
LIBOR | London InterBank Offered Rate |
MBS | Mortgage-backed securities |
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
MI | Mortgage insurance |
MSA | Metropolitan statistical area |
NSFR | Net Stable Funding Ratio |
OCC | Office of the Comptroller of the Currency |
OCI | Other comprehensive income |
OTC | Over-the-counter |
OTTI | Other-than-temporary impairment |
PPI | Payment protection insurance |
RMBS | Residential mortgage-backed securities |
SBLCs | Standby letters of credit |
SEC | Securities and Exchange Commission |
VA | U.S. Department of Veterans Affairs |
VIE | Variable interest entity |
148 Bank of America 2013 |
Table of Contents | ||
Page | ||
Bank of America 2013 149 |
150 Bank of America 2013 |
Bank of America 2013 151 |
Consolidated Statement of Income | |||||||||||
(Dollars in millions, except per share information) | 2013 | 2012 | 2011 | ||||||||
Interest income | |||||||||||
Loans and leases | $ | 36,470 | $ | 38,880 | $ | 44,966 | |||||
Debt securities | 9,749 | 8,908 | 9,525 | ||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 1,229 | 1,502 | 2,147 | ||||||||
Trading account assets | 4,706 | 5,094 | 5,961 | ||||||||
Other interest income | 2,866 | 3,016 | 3,637 | ||||||||
Total interest income | 55,020 | 57,400 | 66,236 | ||||||||
Interest expense | |||||||||||
Deposits | 1,396 | 1,990 | 3,002 | ||||||||
Short-term borrowings | 2,923 | 3,572 | 4,599 | ||||||||
Trading account liabilities | 1,638 | 1,763 | 2,212 | ||||||||
Long-term debt | 6,798 | 9,419 | 11,807 | ||||||||
Total interest expense | 12,755 | 16,744 | 21,620 | ||||||||
Net interest income | 42,265 | 40,656 | 44,616 | ||||||||
Noninterest income | |||||||||||
Card income | 5,826 | 6,121 | 7,184 | ||||||||
Service charges | 7,390 | 7,600 | 8,094 | ||||||||
Investment and brokerage services | 12,282 | 11,393 | 11,826 | ||||||||
Investment banking income | 6,126 | 5,299 | 5,217 | ||||||||
Equity investment income | 2,901 | 2,070 | 7,360 | ||||||||
Trading account profits | 7,056 | 5,870 | 6,697 | ||||||||
Mortgage banking income (loss) | 3,874 | 4,750 | (8,830 | ) | |||||||
Gains on sales of debt securities | 1,271 | 1,662 | 3,374 | ||||||||
Other income (loss) | (29 | ) | (2,034 | ) | 8,215 | ||||||
Other-than-temporary impairment losses on available-for-sale debt securities: | |||||||||||
Total other-than-temporary impairment losses | (21 | ) | (57 | ) | (360 | ) | |||||
Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income | 1 | 4 | 61 | ||||||||
Net impairment losses recognized in earnings on available-for-sale debt securities | (20 | ) | (53 | ) | (299 | ) | |||||
Total noninterest income | 46,677 | 42,678 | 48,838 | ||||||||
Total revenue, net of interest expense | 88,942 | 83,334 | 93,454 | ||||||||
Provision for credit losses | 3,556 | 8,169 | 13,410 | ||||||||
Noninterest expense | |||||||||||
Personnel | 34,719 | 35,648 | 36,965 | ||||||||
Occupancy | 4,475 | 4,570 | 4,748 | ||||||||
Equipment | 2,146 | 2,269 | 2,340 | ||||||||
Marketing | 1,834 | 1,873 | 2,203 | ||||||||
Professional fees | 2,884 | 3,574 | 3,381 | ||||||||
Amortization of intangibles | 1,086 | 1,264 | 1,509 | ||||||||
Data processing | 3,170 | 2,961 | 2,652 | ||||||||
Telecommunications | 1,593 | 1,660 | 1,553 | ||||||||
Other general operating | 17,307 | 18,274 | 21,101 | ||||||||
Goodwill impairment | — | — | 3,184 | ||||||||
Merger and restructuring charges | — | — | 638 | ||||||||
Total noninterest expense | 69,214 | 72,093 | 80,274 | ||||||||
Income (loss) before income taxes | 16,172 | 3,072 | (230 | ) | |||||||
Income tax expense (benefit) | 4,741 | (1,116 | ) | (1,676 | ) | ||||||
Net income | $ | 11,431 | $ | 4,188 | $ | 1,446 | |||||
Preferred stock dividends | 1,349 | 1,428 | 1,361 | ||||||||
Net income applicable to common shareholders | $ | 10,082 | $ | 2,760 | $ | 85 | |||||
Per common share information | |||||||||||
Earnings | $ | 0.94 | $ | 0.26 | $ | 0.01 | |||||
Diluted earnings | 0.90 | 0.25 | 0.01 | ||||||||
Dividends paid | 0.04 | 0.04 | 0.04 | ||||||||
Average common shares issued and outstanding (in thousands) | 10,731,165 | 10,746,028 | 10,142,625 | ||||||||
Average diluted common shares issued and outstanding (in thousands) | 11,491,418 | 10,840,854 | 10,254,824 |
152 Bank of America 2013 |
Consolidated Statement of Comprehensive Income | |||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | ||||||||
Net income | $ | 11,431 | $ | 4,188 | $ | 1,446 | |||||
Other comprehensive income (loss), net-of-tax: | |||||||||||
Net change in available-for-sale debt and marketable equity securities | (8,166 | ) | 1,802 | (4,270 | ) | ||||||
Net change in derivatives | 592 | 916 | (549 | ) | |||||||
Employee benefit plan adjustments | 2,049 | (65 | ) | (444 | ) | ||||||
Net change in foreign currency translation adjustments | (135 | ) | (13 | ) | (108 | ) | |||||
Other comprehensive income (loss) | (5,660 | ) | 2,640 | (5,371 | ) | ||||||
Comprehensive income (loss) | $ | 5,771 | $ | 6,828 | $ | (3,925 | ) |
Bank of America 2013 153 |
Consolidated Balance Sheet | |||||||
December 31 | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Assets | |||||||
Cash and cash equivalents | $ | 131,322 | $ | 110,752 | |||
Time deposits placed and other short-term investments | 11,540 | 18,694 | |||||
Federal funds sold and securities borrowed or purchased under agreements to resell (includes $75,614 and $98,670 measured at fair value) | 190,328 | 219,924 | |||||
Trading account assets (includes $111,817 and $115,821 pledged as collateral) | 200,993 | 227,775 | |||||
Derivative assets | 47,495 | 53,497 | |||||
Debt securities: | |||||||
Carried at fair value (includes $51,408 and $63,349 pledged as collateral) | 268,795 | 310,850 | |||||
Held-to-maturity, at cost (fair value – $52,430 and $50,270; $20,869 and $22,461 pledged as collateral) | 55,150 | 49,481 | |||||
Total debt securities | 323,945 | 360,331 | |||||
Loans and leases (includes $10,042 and $9,002 measured at fair value and $74,166 and $50,289 pledged as collateral) | 928,233 | 907,819 | |||||
Allowance for loan and lease losses | (17,428 | ) | (24,179 | ) | |||
Loans and leases, net of allowance | 910,805 | 883,640 | |||||
Premises and equipment, net | 10,475 | 11,858 | |||||
Mortgage servicing rights (includes $5,042 and $5,716 measured at fair value) | 5,052 | 5,851 | |||||
Goodwill | 69,844 | 69,976 | |||||
Intangible assets | 5,574 | 6,684 | |||||
Loans held-for-sale (includes $6,656 and $11,659 measured at fair value) | 11,362 | 19,413 | |||||
Customer and other receivables | 59,448 | 71,467 | |||||
Other assets (includes $18,055 and $26,490 measured at fair value) | 124,090 | 150,112 | |||||
Total assets | $ | 2,102,273 | $ | 2,209,974 | |||
Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities) | |||||||
Trading account assets | $ | 8,412 | $ | 7,906 | |||
Derivative assets | 185 | 333 | |||||
Loans and leases | 109,118 | 123,227 | |||||
Allowance for loan and lease losses | (2,674 | ) | (3,658 | ) | |||
Loans and leases, net of allowance | 106,444 | 119,569 | |||||
Loans held-for-sale | 1,384 | 1,969 | |||||
All other assets | 4,577 | 4,654 | |||||
Total assets of consolidated variable interest entities | $ | 121,002 | $ | 134,431 |
154 Bank of America 2013 |
Consolidated Balance Sheet (continued) | |||||||
December 31 | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Liabilities | |||||||
Deposits in U.S. offices: | |||||||
Noninterest-bearing | $ | 373,092 | $ | 372,546 | |||
Interest-bearing (includes $1,899 and $2,262 measured at fair value) | 667,714 | 654,332 | |||||
Deposits in non-U.S. offices: | |||||||
Noninterest-bearing | 8,233 | 7,573 | |||||
Interest-bearing | 70,232 | 70,810 | |||||
Total deposits | 1,119,271 | 1,105,261 | |||||
Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $33,684 and $42,639 measured at fair value) | 198,106 | 293,259 | |||||
Trading account liabilities | 83,469 | 73,587 | |||||
Derivative liabilities | 37,407 | 46,016 | |||||
Short-term borrowings (includes $1,520 and $4,074 measured at fair value) | 45,999 | 30,731 | |||||
Accrued expenses and other liabilities (includes $11,233 and $16,594 measured at fair value and $484 and $513 of reserve for unfunded lending commitments) | 135,662 | 148,579 | |||||
Long-term debt (includes $47,035 and $49,161 measured at fair value) | 249,674 | 275,585 | |||||
Total liabilities | 1,869,588 | 1,973,018 | |||||
Commitments and contingencies (Note 6 – Securitizations and Other Variable Interest Entities, Note 7 – Representations and Warranties Obligations and Corporate Guarantees and Note 12 – Commitments and Contingencies) | |||||||
Shareholders’ equity | |||||||
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,407,790 and 3,685,410 shares | 13,352 | 18,768 | |||||
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 10,591,808,296 and 10,778,263,628 shares | 155,293 | 158,142 | |||||
Retained earnings | 72,497 | 62,843 | |||||
Accumulated other comprehensive income (loss) | (8,457 | ) | (2,797 | ) | |||
Total shareholders’ equity | 232,685 | 236,956 | |||||
Total liabilities and shareholders’ equity | $ | 2,102,273 | $ | 2,209,974 | |||
Liabilities of consolidated variable interest entities included in total liabilities above | |||||||
Short-term borrowings (includes $77 and $872 of non-recourse borrowings) | $ | 1,150 | $ | 3,731 | |||
Long-term debt (includes $16,209 and $29,476 of non-recourse debt) | 19,448 | 34,256 | |||||
All other liabilities (includes $138 and $149 of non-recourse liabilities) | 253 | 360 | |||||
Total liabilities of consolidated variable interest entities | $ | 20,851 | $ | 38,347 |
Bank of America 2013 155 |
Consolidated Statement of Changes in Shareholders’ Equity | ||||||||||||||||||||||||||
Preferred Stock | Common Stock and Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Other | Total Shareholders’ Equity | |||||||||||||||||||||
(Dollars in millions, shares in thousands) | Shares | Amount | ||||||||||||||||||||||||
Balance, December 31, 2010 | $ | 16,562 | 10,085,155 | $ | 150,905 | $ | 60,849 | $ | (66 | ) | $ | (2 | ) | $ | 228,248 | |||||||||||
Net income | 1,446 | 1,446 | ||||||||||||||||||||||||
Net change in available-for-sale debt and marketable equity securities | (4,270 | ) | (4,270 | ) | ||||||||||||||||||||||
Net change in derivatives | (549 | ) | (549 | ) | ||||||||||||||||||||||
Employee benefit plan adjustments | (444 | ) | (444 | ) | ||||||||||||||||||||||
Net change in foreign currency translation adjustments | (108 | ) | (108 | ) | ||||||||||||||||||||||
Dividends paid: | ||||||||||||||||||||||||||
Common | (413 | ) | (413 | ) | ||||||||||||||||||||||
Preferred | (1,325 | ) | (1,325 | ) | ||||||||||||||||||||||
Issuance of preferred stock and warrants | 2,918 | 2,082 | 5,000 | |||||||||||||||||||||||
Common stock issued in connection with exchanges of preferred stock and trust preferred securities | (1,083 | ) | 400,000 | 2,754 | (36 | ) | 1,635 | |||||||||||||||||||
Common stock issued under employee plans and related tax effects | 50,783 | 880 | 2 | 882 | ||||||||||||||||||||||
Other | (1 | ) | (1 | ) | ||||||||||||||||||||||
Balance, December 31, 2011 | 18,397 | 10,535,938 | 156,621 | 60,520 | (5,437 | ) | — | 230,101 | ||||||||||||||||||
Net income | 4,188 | 4,188 | ||||||||||||||||||||||||
Net change in available-for-sale debt and marketable equity securities | 1,802 | 1,802 | ||||||||||||||||||||||||
Net change in derivatives | 916 | 916 | ||||||||||||||||||||||||
Employee benefit plan adjustments | (65 | ) | (65 | ) | ||||||||||||||||||||||
Net change in foreign currency translation adjustments | (13 | ) | (13 | ) | ||||||||||||||||||||||
Dividends paid: | ||||||||||||||||||||||||||
Common | (437 | ) | (437 | ) | ||||||||||||||||||||||
Preferred | (1,472 | ) | (1,472 | ) | ||||||||||||||||||||||
Net Issuance of preferred stock | 667 | 667 | ||||||||||||||||||||||||
Common stock issued in connection with exchanges of preferred stock and trust preferred securities | (296 | ) | 49,867 | 412 | 44 | 160 | ||||||||||||||||||||
Common stock issued under employee plans and related tax effects | 192.459 | 1,109 | 1,109 | |||||||||||||||||||||||
Balance, December 31, 2012 | 18,768 | 10,778,264 | 158,142 | 62,843 | (2,797 | ) | — | 236,956 | ||||||||||||||||||
Net income | 11,431 | 11,431 | ||||||||||||||||||||||||
Net change in available-for-sale debt and marketable equity securities | (8,166 | ) | (8,166 | ) | ||||||||||||||||||||||
Net change in derivatives | 592 | 592 | ||||||||||||||||||||||||
Employee benefit plan adjustments | 2,049 | 2,049 | ||||||||||||||||||||||||
Net change in foreign currency translation adjustments | (135 | ) | (135 | ) | ||||||||||||||||||||||
Dividends paid: | ||||||||||||||||||||||||||
Common | (428 | ) | (428 | ) | ||||||||||||||||||||||
Preferred | (1,249 | ) | (1,249 | ) | ||||||||||||||||||||||
Issuance of preferred stock | 1,008 | 1,008 | ||||||||||||||||||||||||
Redemption of preferred stock | (6,461 | ) | (100 | ) | (6,561 | ) | ||||||||||||||||||||
Common stock issued under employee plans and related tax effects | 45,288 | 371 | 371 | |||||||||||||||||||||||
Common stock repurchased | (231,744 | ) | (3,220 | ) | (3,220 | ) | ||||||||||||||||||||
Other | 37 | 37 | ||||||||||||||||||||||||
Balance, December 31, 2013 | $ | 13,352 | 10,591,808 | $ | 155,293 | $ | 72,497 | $ | (8,457 | ) | $ | — | $ | 232,685 |
156 Bank of America 2013 |
Consolidated Statement of Cash Flows | |||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | ||||||||
Operating activities | |||||||||||
Net income | $ | 11,431 | $ | 4,188 | $ | 1,446 | |||||
Reconciliation of net income to net cash provided by (used in) operating activities: | |||||||||||
Provision for credit losses | 3,556 | 8,169 | 13,410 | ||||||||
Goodwill impairment | — | — | 3,184 | ||||||||
Gains on sales of debt securities | (1,271 | ) | (1,662 | ) | (3,374 | ) | |||||
Fair value adjustments on structured liabilities | 649 | 5,107 | (3,320 | ) | |||||||
Depreciation and premises improvements amortization | 1,597 | 1,774 | 1,976 | ||||||||
Amortization of intangibles | 1,086 | 1,264 | 1,509 | ||||||||
Net amortization of premium/discount on debt securities | 1,577 | 2,580 | 2,046 | ||||||||
Deferred income taxes | 3,262 | (2,735 | ) | (1,949 | ) | ||||||
Originations and purchases of loans held-for-sale | (65,688 | ) | (59,540 | ) | (118,168 | ) | |||||
Proceeds from sales, securitizations and paydowns of loans held-for-sale | 77,707 | 54,817 | 141,862 | ||||||||
Net (increase) decrease in trading and derivative instruments | 33,870 | (47,606 | ) | 25,481 | |||||||
Net (increase) decrease in other assets | 35,154 | (11,424 | ) | 21,285 | |||||||
Net increase (decrease) in accrued expenses and other liabilities | (12,919 | ) | 24,061 | (18,124 | ) | ||||||
Other operating activities, net | 2,806 | 4,951 | (2,816 | ) | |||||||
Net cash provided by (used in) operating activities | 92,817 | (16,056 | ) | 64,448 | |||||||
Investing activities | |||||||||||
Net decrease in time deposits placed and other short-term investments | 7,154 | 7,310 | 105 | ||||||||
Net (increase) decrease in federal funds sold and securities borrowed or purchased under agreements to resell | 29,596 | (8,741 | ) | (1,567 | ) | ||||||
Proceeds from sales of debt securities carried at fair value | 119,013 | 74,068 | 120,125 | ||||||||
Proceeds from paydowns and maturities of debt securities carried at fair value | 85,554 | 71,509 | 56,732 | ||||||||
Purchases of debt securities carried at fair value | (175,983 | ) | (164,491 | ) | (99,536 | ) | |||||
Proceeds from paydowns and maturities of held-to-maturity debt securities | 8,472 | 6,261 | 602 | ||||||||
Purchases of held-to-maturity debt securities | (14,388 | ) | (20,991 | ) | (35,552 | ) | |||||
Proceeds from sales of loans and leases | 12,331 | 1,837 | 3,124 | ||||||||
Purchases of loans and leases | (16,734 | ) | (9,178 | ) | (9,638 | ) | |||||
Other changes in loans and leases, net | (34,256 | ) | 2,557 | 2,864 | |||||||
Net sales (purchases) of premises and equipment | (521 | ) | 5 | (1,307 | ) | ||||||
Proceeds from sales of foreclosed properties | 1,099 | 2,799 | 2,532 | ||||||||
Proceeds from sales of investments | 4,818 | 2,396 | 14,840 | ||||||||
Other investing activities, net | (1,097 | ) | (320 | ) | (895 | ) | |||||
Net cash provided by (used in) investing activities | 25,058 | (34,979 | ) | 52,429 | |||||||
Financing activities | |||||||||||
Net increase in deposits | 14,010 | 72,220 | 22,611 | ||||||||
Net increase (decrease) in federal funds purchased and securities loaned or sold under agreements to repurchase | (95,153 | ) | 78,395 | (30,495 | ) | ||||||
Net increase (decrease) in short-term borrowings | 16,009 | (5,017 | ) | (24,264 | ) | ||||||
Proceeds from issuance of long-term debt | 45,658 | 22,200 | 26,001 | ||||||||
Retirement of long-term debt | (65,602 | ) | (124,389 | ) | (101,814 | ) | |||||
Proceeds from issuance of preferred stock and warrants | 1,008 | 667 | 5,000 | ||||||||
Redemption of preferred stock | (6,461 | ) | — | — | |||||||
Common stock repurchased | (3,220 | ) | — | — | |||||||
Cash dividends paid | (1,677 | ) | (1,909 | ) | (1,738 | ) | |||||
Excess tax benefits on share-based payments | 12 | 13 | 42 | ||||||||
Other financing activities, net | (26 | ) | 236 | 3 | |||||||
Net cash provided by (used in) financing activities | (95,442 | ) | 42,416 | (104,654 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1,863 | ) | (731 | ) | (548 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 20,570 | (9,350 | ) | 11,675 | |||||||
Cash and cash equivalents at January 1 | 110,752 | 120,102 | 108,427 | ||||||||
Cash and cash equivalents at December 31 | $ | 131,322 | $ | 110,752 | $ | 120,102 | |||||
Supplemental cash flow disclosures | |||||||||||
Interest paid | $ | 12,912 | $ | 18,268 | $ | 25,207 | |||||
Income taxes paid | 1,559 | 1,372 | 1,653 | ||||||||
Income taxes refunded | (244 | ) | (338 | ) | (781 | ) |
Bank of America 2013 157 |
158 Bank of America 2013 |
Bank of America 2013 159 |
160 Bank of America 2013 |
Bank of America 2013 161 |
162 Bank of America 2013 |
Bank of America 2013 163 |
164 Bank of America 2013 |
Bank of America 2013 165 |
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury securities that are highly liquid and are actively traded in OTC markets. |
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt |
166 Bank of America 2013 |
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the overall fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments for which the determination of fair value requires significant management judgment or estimation. The fair value for such assets and liabilities is generally determined using pricing models, market comparables, discounted cash flow methodologies or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. This category generally includes certain private equity investments and other principal investments, retained residual interests in securitizations, residential MSRs, certain asset-backed securities, highly structured, complex or long-dated derivative contracts, certain LHFS, IRLCs and certain CDOs where independent pricing information cannot be obtained for a significant portion of the underlying assets. |
Bank of America 2013 167 |
Page | |
Note 2 – Derivatives | |
Note 3 – Securities | |
Note 4 – Outstanding Loans and Leases | |
Note 6 – Securitizations and Other Variable Interest Entities | |
Note 7 – Representations and Warranties Obligations and Corporate Guarantees | |
Note 12 – Commitments and Contingencies | |
Note 15 – Earnings Per Common Share | |
Note 17 – Employee Benefit Plans | |
Note 18 – Stock-based Compensation Plans | |
Note 19 – Income Taxes | |
Note 20 – Fair Value Measurements | |
Note 23 – Mortgage Servicing Rights |
168 Bank of America 2013 |
December 31, 2013 | |||||||||||||||||||||||||||
Gross Derivative Assets | Gross Derivative Liabilities | ||||||||||||||||||||||||||
(Dollars in billions) | Contract/ Notional (1) | Trading Derivatives and Other Risk Management Derivatives | Qualifying Accounting Hedges | Total | Trading Derivatives and Other Risk Management Derivatives | Qualifying Accounting Hedges | Total | ||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||||
Swaps | $ | 33,272.0 | $ | 659.9 | $ | 7.5 | $ | 667.4 | $ | 658.4 | $ | 0.9 | $ | 659.3 | |||||||||||||
Futures and forwards | 8,217.6 | 1.6 | — | 1.6 | 1.5 | — | 1.5 | ||||||||||||||||||||
Written options | 2,065.4 | — | — | — | 64.4 | — | 64.4 | ||||||||||||||||||||
Purchased options | 2,028.3 | 65.4 | — | 65.4 | — | — | — | ||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||||
Swaps | 2,284.1 | 43.1 | 1.0 | 44.1 | 42.7 | 1.0 | 43.7 | ||||||||||||||||||||
Spot, futures and forwards | 2,922.5 | 32.5 | 0.7 | 33.2 | 33.5 | 1.1 | 34.6 | ||||||||||||||||||||
Written options | 412.4 | — | — | — | 9.2 | — | 9.2 | ||||||||||||||||||||
Purchased options | 392.4 | 8.8 | — | 8.8 | — | — | — | ||||||||||||||||||||
Equity contracts | |||||||||||||||||||||||||||
Swaps | 162.0 | 3.6 | — | 3.6 | 4.2 | — | 4.2 | ||||||||||||||||||||
Futures and forwards | 71.4 | 1.1 | — | 1.1 | 1.4 | — | 1.4 | ||||||||||||||||||||
Written options | 315.6 | — | — | — | 29.6 | — | 29.6 | ||||||||||||||||||||
Purchased options | 266.7 | 30.4 | — | 30.4 | — | — | — | ||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||||
Swaps | 73.1 | 3.8 | — | 3.8 | 5.7 | — | 5.7 | ||||||||||||||||||||
Futures and forwards | 454.4 | 4.7 | — | 4.7 | 2.5 | — | 2.5 | ||||||||||||||||||||
Written options | 157.3 | — | — | — | 5.0 | — | 5.0 | ||||||||||||||||||||
Purchased options | 164.0 | 5.2 | — | 5.2 | — | — | — | ||||||||||||||||||||
Credit derivatives | |||||||||||||||||||||||||||
Purchased credit derivatives: | |||||||||||||||||||||||||||
Credit default swaps | 1,305.1 | 15.7 | — | 15.7 | 28.1 | — | 28.1 | ||||||||||||||||||||
Total return swaps/other | 38.1 | 2.0 | — | 2.0 | 3.2 | — | 3.2 | ||||||||||||||||||||
Written credit derivatives: | |||||||||||||||||||||||||||
Credit default swaps | 1,265.4 | 29.3 | — | 29.3 | 13.8 | — | 13.8 | ||||||||||||||||||||
Total return swaps/other | 63.4 | 4.0 | — | 4.0 | 0.2 | — | 0.2 | ||||||||||||||||||||
Gross derivative assets/liabilities | $ | 911.1 | $ | 9.2 | $ | 920.3 | $ | 903.4 | $ | 3.0 | $ | 906.4 | |||||||||||||||
Less: Legally enforceable master netting agreements | (825.5 | ) | (825.5 | ) | |||||||||||||||||||||||
Less: Cash collateral received/paid | (47.3 | ) | (43.5 | ) | |||||||||||||||||||||||
Total derivative assets/liabilities | $ | 47.5 | $ | 37.4 |
(1) | Represents the total contract/notional amount of derivative assets and liabilities outstanding. |
Bank of America 2013 169 |
December 31, 2012 | |||||||||||||||||||||||||||
Gross Derivative Assets | Gross Derivative Liabilities | ||||||||||||||||||||||||||
(Dollars in billions) | Contract/ Notional (1) | Trading Derivatives and Other Risk Management Derivatives | Qualifying Accounting Hedges | Total | Trading Derivatives and Other Risk Management Derivatives | Qualifying Accounting Hedges | Total | ||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||||
Swaps | $ | 34,667.4 | $ | 1,075.4 | $ | 13.8 | $ | 1,089.2 | $ | 1,062.6 | $ | 4.7 | $ | 1,067.3 | |||||||||||||
Futures and forwards | 11,950.5 | 2.8 | — | 2.8 | 2.7 | — | 2.7 | ||||||||||||||||||||
Written options | 2,343.5 | — | — | — | 106.0 | — | 106.0 | ||||||||||||||||||||
Purchased options | 2,162.6 | 105.5 | — | 105.5 | — | — | — | ||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||||
Swaps | 2,489.0 | 47.4 | 1.4 | 48.8 | 53.2 | 1.8 | 55.0 | ||||||||||||||||||||
Spot, futures and forwards | 3,023.0 | 31.5 | 0.4 | 31.9 | 30.5 | 0.8 | 31.3 | ||||||||||||||||||||
Written options | 363.3 | — | — | — | 7.3 | — | 7.3 | ||||||||||||||||||||
Purchased options | 321.8 | 6.5 | — | 6.5 | — | — | — | ||||||||||||||||||||
Equity contracts | |||||||||||||||||||||||||||
Swaps | 127.1 | 1.6 | — | 1.6 | 2.0 | — | 2.0 | ||||||||||||||||||||
Futures and forwards | 58.4 | 1.0 | — | 1.0 | 1.0 | — | 1.0 | ||||||||||||||||||||
Written options | 295.3 | — | — | — | 20.2 | — | 20.2 | ||||||||||||||||||||
Purchased options | 271.0 | 20.4 | — | 20.4 | — | — | — | ||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||||
Swaps | 60.5 | 2.5 | 0.1 | 2.6 | 4.0 | — | 4.0 | ||||||||||||||||||||
Futures and forwards | 498.9 | 4.8 | — | 4.8 | 2.7 | — | 2.7 | ||||||||||||||||||||
Written options | 166.4 | — | — | — | 7.4 | — | 7.4 | ||||||||||||||||||||
Purchased options | 168.2 | 7.1 | — | 7.1 | — | — | — | ||||||||||||||||||||
Credit derivatives | |||||||||||||||||||||||||||
Purchased credit derivatives: | |||||||||||||||||||||||||||
Credit default swaps | 1,559.5 | 35.6 | — | 35.6 | 22.1 | — | 22.1 | ||||||||||||||||||||
Total return swaps/other | 43.5 | 2.5 | — | 2.5 | 2.9 | — | 2.9 | ||||||||||||||||||||
Written credit derivatives: | |||||||||||||||||||||||||||
Credit default swaps | 1,531.5 | 23.0 | — | 23.0 | 32.6 | — | 32.6 | ||||||||||||||||||||
Total return swaps/other | 68.8 | 0.2 | — | 0.2 | 0.3 | — | 0.3 | ||||||||||||||||||||
Gross derivative assets/liabilities | $ | 1,367.8 | $ | 15.7 | $ | 1,383.5 | $ | 1,357.5 | $ | 7.3 | $ | 1,364.8 | |||||||||||||||
Less: Legally enforceable master netting agreements | (1,271.9 | ) | (1,271.9 | ) | |||||||||||||||||||||||
Less: Cash collateral received/paid | (58.1 | ) | (46.9 | ) | |||||||||||||||||||||||
Total derivative assets/liabilities | $ | 53.5 | $ | 46.0 |
(1) | Represents the total contract/notional amount of derivative assets and liabilities outstanding. |
170 Bank of America 2013 |
Offsetting of Derivatives | |||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||
(Dollars in billions) | Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | |||||||||||
Interest rate contracts | |||||||||||||||
Over-the-counter | $ | 381.7 | $ | 365.9 | $ | 646.7 | $ | 623.4 | |||||||
Exchange-traded | 0.4 | 0.3 | — | — | |||||||||||
Over-the-counter cleared | 351.2 | 356.5 | 539.5 | 545.1 | |||||||||||
Foreign exchange contracts | |||||||||||||||
Over-the-counter | 82.9 | 83.9 | 84.1 | 88.7 | |||||||||||
Equity contracts | |||||||||||||||
Over-the-counter | 20.3 | 17.6 | 15.2 | 13.3 | |||||||||||
Exchange-traded | 8.4 | 9.8 | 4.8 | 4.7 | |||||||||||
Commodity contracts | |||||||||||||||
Over-the-counter | 6.3 | 7.4 | 6.9 | 7.9 | |||||||||||
Exchange-traded | 3.3 | 2.9 | 3.4 | 3.2 | |||||||||||
Credit derivatives | |||||||||||||||
Over-the-counter | 44.0 | 38.9 | 56.0 | 53.9 | |||||||||||
Over-the-counter cleared | 5.8 | 5.9 | 3.8 | 3.4 | |||||||||||
Total gross derivative assets/liabilities, before netting | |||||||||||||||
Over-the-counter | 535.2 | 513.7 | 808.9 | 787.2 | |||||||||||
Exchange-traded | 12.1 | 13.0 | 8.2 | 7.9 | |||||||||||
Over-the-counter cleared | 357.0 | 362.4 | 543.3 | 548.5 | |||||||||||
Less: Legally enforceable master netting agreements and cash collateral received/paid | |||||||||||||||
Over-the-counter | (505.0 | ) | (495.4 | ) | (780.8 | ) | (764.4 | ) | |||||||
Exchange-traded | (11.2 | ) | (11.2 | ) | (5.9 | ) | (5.9 | ) | |||||||
Over-the-counter cleared | (356.6 | ) | (362.4 | ) | (543.3 | ) | (548.5 | ) | |||||||
Derivative assets/liabilities, after netting | 31.5 | 20.1 | 30.4 | 24.8 | |||||||||||
Other gross derivative assets/liabilities | 16.0 | 17.3 | 23.1 | 21.2 | |||||||||||
Total derivative assets/liabilities | 47.5 | 37.4 | 53.5 | 46.0 | |||||||||||
Less: Financial instruments collateral (1) | (10.1 | ) | (4.6 | ) | (11.5 | ) | (14.6 | ) | |||||||
Total net derivative assets/liabilities | $ | 37.4 | $ | 32.8 | $ | 42.0 | $ | 31.4 |
(1) | These amounts are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged. |
Bank of America 2013 171 |
Derivatives Designated as Fair Value Hedges | |||||||||||
Gains (Losses) | 2013 | ||||||||||
(Dollars in millions) | Derivative | Hedged Item | Hedge Ineffectiveness | ||||||||
Interest rate risk on long-term debt (1) | $ | (4,704 | ) | $ | 3,925 | $ | (779 | ) | |||
Interest rate and foreign currency risk on long-term debt (1) | (1,291 | ) | 1,085 | (206 | ) | ||||||
Interest rate risk on available-for-sale securities (2) | 839 | (840 | ) | (1 | ) | ||||||
Price risk on commodity inventory (3) | (13 | ) | 11 | (2 | ) | ||||||
Total | $ | (5,169 | ) | $ | 4,181 | $ | (988 | ) | |||
2012 | |||||||||||
Interest rate risk on long-term debt (1) | $ | (195 | ) | $ | (770 | ) | $ | (965 | ) | ||
Interest rate and foreign currency risk on long-term debt (1) | (1,482 | ) | 1,225 | (257 | ) | ||||||
Interest rate risk on available-for-sale securities (2) | (4 | ) | 91 | 87 | |||||||
Price risk on commodity inventory (3) | (6 | ) | 6 | — | |||||||
Total | $ | (1,687 | ) | $ | 552 | $ | (1,135 | ) | |||
2011 | |||||||||||
Interest rate risk on long-term debt (1) | $ | 4,384 | $ | (4,969 | ) | $ | (585 | ) | |||
Interest rate and foreign currency risk on long-term debt (1) | 780 | (1,057 | ) | (277 | ) | ||||||
Interest rate risk on available-for-sale securities (2) | (11,386 | ) | 10,490 | (896 | ) | ||||||
Price risk on commodity inventory (3) | 16 | (16 | ) | — | |||||||
Total | $ | (6,206 | ) | $ | 4,448 | $ | (1,758 | ) |
(1) | Amounts are recorded in interest expense on long-term debt and in other income (loss). |
(2) | Amounts are recorded in interest income on debt securities. Hedged AFS securities positions were sold during 2013 and the related hedges were terminated. |
(3) | Amounts relating to commodity inventory are recorded in trading account profits. |
172 Bank of America 2013 |
Derivatives Designated as Cash Flow and Net Investment Hedges | |||||||||||
2013 | |||||||||||
(Dollars in millions, amounts pre-tax) | Gains (Losses) Recognized in Accumulated OCI on Derivatives | Gains (Losses) in Income Reclassified from Accumulated OCI | Hedge Ineffectiveness and Amounts Excluded from Effectiveness Testing (1) | ||||||||
Cash flow hedges | |||||||||||
Interest rate risk on variable-rate portfolios | $ | (321 | ) | $ | (1,102 | ) | $ | — | |||
Price risk on restricted stock awards | 477 | 329 | — | ||||||||
Total | $ | 156 | $ | (773 | ) | $ | — | ||||
Net investment hedges | |||||||||||
Foreign exchange risk | $ | 1,024 | $ | (355 | ) | $ | (134 | ) | |||
2012 | |||||||||||
Cash flow hedges | |||||||||||
Interest rate risk on variable-rate portfolios | $ | 10 | $ | (957 | ) | $ | — | ||||
Price risk on restricted stock awards | 420 | (78 | ) | — | |||||||
Total | $ | 430 | $ | (1,035 | ) | $ | — | ||||
Net investment hedges | |||||||||||
Foreign exchange risk | $ | (771 | ) | $ | (26 | ) | $ | (269 | ) | ||
2011 | |||||||||||
Cash flow hedges | |||||||||||
Interest rate risk on variable-rate portfolios | $ | (2,079 | ) | $ | (1,392 | ) | $ | (8 | ) | ||
Commodity price risk on forecasted purchases and sales | (3 | ) | 6 | (3 | ) | ||||||
Price risk on restricted stock awards | (408 | ) | (231 | ) | — | ||||||
Total | $ | (2,490 | ) | $ | (1,617 | ) | $ | (11 | ) | ||
Net investment hedges | |||||||||||
Foreign exchange risk | $ | (1,055 | ) | $ | 384 | $ | (572 | ) |
(1) | Amounts related to derivatives designated as cash flow hedges represent hedge ineffectiveness and amounts related to net investment hedges represent amounts excluded from effectiveness testing. |
Bank of America 2013 173 |
Other Risk Management Derivatives | |||||||||||
Gains (Losses) | |||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | ||||||||
Price risk on mortgage banking production income (1, 2) | $ | 968 | $ | 3,022 | $ | 2,852 | |||||
Market-related risk on mortgage banking servicing income (1) | (1,108 | ) | 2,000 | 3,612 | |||||||
Credit risk on loans (3) | (47 | ) | (95 | ) | 30 | ||||||
Interest rate and foreign currency risk on ALM activities (4) | 2,501 | 424 | (48 | ) | |||||||
Price risk on restricted stock awards (5) | 865 | 1,008 | (610 | ) | |||||||
Other | (19 | ) | 58 | 281 | |||||||
Total | $ | 3,160 | $ | 6,417 | $ | 6,117 |
(1) | Net gains on these derivatives are recorded in mortgage banking income. |
(2) | Includes net gains on interest rate lock commitments related to the origination of mortgage loans that are held-for-sale, which are considered derivative instruments, of $927 million, $3.0 billion and $3.8 billion for 2013, 2012 and 2011, respectively. |
(3) | Net gains (losses) on these derivatives are recorded in other income (loss). |
(4) | The balance is primarily related to hedges of debt securities carried at fair value and hedges of foreign currency-denominated debt. Results from these items are recorded in other income (loss). The offsetting mark-to-market, while not included in the table above, is also recorded in other income (loss). |
(5) | Gains (losses) on these derivatives are recorded in personnel expense. |
174 Bank of America 2013 |
Sales and Trading Revenue | |||||||||||||||
2013 | |||||||||||||||
(Dollars in millions) | Trading Account Profits | Net Interest Income | Other (1) | Total | |||||||||||
Interest rate risk | $ | 1,120 | $ | 1,104 | $ | 83 | $ | 2,307 | |||||||
Foreign exchange risk | 1,170 | 4 | (26 | ) | 1,148 | ||||||||||
Equity risk | 1,994 | 112 | 2,094 | 4,200 | |||||||||||
Credit risk | 2,075 | 2,711 | 88 | 4,874 | |||||||||||
Other risk | 375 | (203 | ) | 202 | 374 | ||||||||||
Total sales and trading revenue | $ | 6,734 | $ | 3,728 | $ | 2,441 | $ | 12,903 | |||||||
2012 | |||||||||||||||
Interest rate risk | $ | 583 | $ | 1,040 | $ | (6 | ) | $ | 1,617 | ||||||
Foreign exchange risk | 909 | 5 | 6 | 920 | |||||||||||
Equity risk | 1,180 | (57 | ) | 1,891 | 3,014 | ||||||||||
Credit risk | 2,522 | 2,321 | 961 | 5,804 | |||||||||||
Other risk | 512 | (219 | ) | (42 | ) | 251 | |||||||||
Total sales and trading revenue | $ | 5,706 | $ | 3,090 | $ | 2,810 | $ | 11,606 | |||||||
2011 | |||||||||||||||
Interest rate risk | $ | 2,148 | $ | 923 | $ | (63 | ) | $ | 3,008 | ||||||
Foreign exchange risk | 1,090 | 8 | (10 | ) | 1,088 | ||||||||||
Equity risk | 1,482 | 129 | 2,347 | 3,958 | |||||||||||
Credit risk | 1,067 | 2,605 | 552 | 4,224 | |||||||||||
Other risk | 630 | (184 | ) | (72 | ) | 374 | |||||||||
Total sales and trading revenue | $ | 6,417 | $ | 3,481 | $ | 2,754 | $ | 12,652 |
(1) | Represents amounts in investment and brokerage services and other income (loss) that are recorded in Global Markets and included in the definition of sales and trading revenue. Includes investment and brokerage services revenue of $2.0 billion, $1.8 billion and $2.2 billion for 2013, 2012 and 2011, respectively. |
Bank of America 2013 175 |
Credit Derivative Instruments | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||
Carrying Value | |||||||||||||||||||
(Dollars in millions) | Less than One Year | One to Three Years | Three to Five Years | Over Five Years | Total | ||||||||||||||
Credit default swaps: | |||||||||||||||||||
Investment grade | $ | 2 | $ | 220 | $ | 974 | $ | 1,134 | $ | 2,330 | |||||||||
Non-investment grade | 424 | 1,924 | 2,469 | 6,667 | 11,484 | ||||||||||||||
Total | 426 | 2,144 | 3,443 | 7,801 | 13,814 | ||||||||||||||
Total return swaps/other: | |||||||||||||||||||
Investment grade | 22 | — | — | — | 22 | ||||||||||||||
Non-investment grade | 29 | 38 | 2 | 86 | 155 | ||||||||||||||
Total | 51 | 38 | 2 | 86 | 177 | ||||||||||||||
Total credit derivatives | $ | 477 | $ | 2,182 | $ | 3,445 | $ | 7,887 | $ | 13,991 | |||||||||
Credit-related notes: (1) | |||||||||||||||||||
Investment grade | $ | — | $ | 278 | $ | 595 | $ | 4,457 | $ | 5,330 | |||||||||
Non-investment grade | 145 | 107 | 756 | 946 | 1,954 | ||||||||||||||
Total credit-related notes | $ | 145 | $ | 385 | $ | 1,351 | $ | 5,403 | $ | 7,284 | |||||||||
Maximum Payout/Notional | |||||||||||||||||||
Credit default swaps: | |||||||||||||||||||
Investment grade | $ | 170,764 | $ | 379,273 | $ | 411,426 | $ | 36,039 | $ | 997,502 | |||||||||
Non-investment grade | 53,316 | 90,986 | 95,319 | 28,257 | 267,878 | ||||||||||||||
Total | 224,080 | 470,259 | 506,745 | 64,296 | 1,265,380 | ||||||||||||||
Total return swaps/other: | |||||||||||||||||||
Investment grade | 21,771 | — | — | — | 21,771 | ||||||||||||||
Non-investment grade | 27,784 | 8,150 | 4,103 | 1,599 | 41,636 | ||||||||||||||
Total | 49,555 | 8,150 | 4,103 | 1,599 | 63,407 | ||||||||||||||
Total credit derivatives | $ | 273,635 | $ | 478,409 | $ | 510,848 | $ | 65,895 | $ | 1,328,787 |
December 31, 2012 | |||||||||||||||||||
Carrying Value | |||||||||||||||||||
Credit default swaps: | |||||||||||||||||||
Investment grade | $ | 52 | $ | 757 | $ | 5,595 | $ | 2,903 | $ | 9,307 | |||||||||
Non-investment grade | 923 | 4,403 | 7,030 | 10,959 | 23,315 | ||||||||||||||
Total | 975 | 5,160 | 12,625 | 13,862 | 32,622 | ||||||||||||||
Total return swaps/other: | |||||||||||||||||||
Investment grade | 39 | — | — | — | 39 | ||||||||||||||
Non-investment grade | 57 | 104 | 39 | 37 | 237 | ||||||||||||||
Total | 96 | 104 | 39 | 37 | 276 | ||||||||||||||
Total credit derivatives | $ | 1,071 | $ | 5,264 | $ | 12,664 | $ | 13,899 | $ | 32,898 | |||||||||
Credit-related notes: (1) | |||||||||||||||||||
Investment grade | $ | 4 | $ | 12 | $ | 441 | $ | 3,849 | $ | 4,306 | |||||||||
Non-investment grade | 116 | 161 | 314 | 1,425 | 2,016 | ||||||||||||||
Total credit-related notes | $ | 120 | $ | 173 | $ | 755 | $ | 5,274 | $ | 6,322 | |||||||||
Maximum Payout/Notional | |||||||||||||||||||
Credit default swaps: | |||||||||||||||||||
Investment grade | $ | 260,177 | $ | 349,125 | $ | 500,038 | $ | 90,453 | $ | 1,199,793 | |||||||||
Non-investment grade | 79,861 | 99,043 | 110,248 | 42,559 | 331,711 | ||||||||||||||
Total | 340,038 | 448,168 | 610,286 | 133,012 | 1,531,504 | ||||||||||||||
Total return swaps/other: | |||||||||||||||||||
Investment grade | 43,536 | 15 | — | — | 43,551 | ||||||||||||||
Non-investment grade | 5,566 | 11,028 | 7,631 | 1,035 | 25,260 | ||||||||||||||
Total | 49,102 | 11,043 | 7,631 | 1,035 | 68,811 | ||||||||||||||
Total credit derivatives | $ | 389,140 | $ | 459,211 | $ | 617,917 | $ | 134,047 | $ | 1,600,315 |
(1) | For credit-related notes, maximum payout/notional is the same as carrying value. |
176 Bank of America 2013 |
Additional Collateral Required to be Posted Upon Downgrade | ||||||
December 31, 2013 | ||||||
(Dollars in millions) | One incremental notch | Second incremental notch | ||||
Bank of America Corporation | $ | 1,302 | $ | 4,101 | ||
Bank of America, N.A. and subsidiaries (1) | 881 | 3,039 |
(1) | Included in Bank of America Corporation collateral requirements in this table. |
Derivative Liability Subject to Unilateral Termination Upon Downgrade | ||||||
December 31, 2013 | ||||||
(Dollars in millions) | One incremental notch | Second incremental notch | ||||
Derivative liability | $ | 927 | $ | 1,878 | ||
Collateral posted | 733 | 1,467 |
Bank of America 2013 177 |
Valuation Adjustments on Derivatives | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(Dollars in millions) | Gross | Net | Gross | Net | Gross | Net | ||||||||||||||
Derivative assets (CVA) (1) | $ | 738 | $ | (96 | ) | $ | 1,022 | $ | 291 | $ | (1,863 | ) | $ | (606 | ) | |||||
Derivative liabilities (DVA) (2) | (39 | ) | (75 | ) | (2,212 | ) | (2,477 | ) | 1,385 | 1,000 |
(1) | At December 31, 2013, 2012 and 2011, the cumulative CVA reduced the derivative assets balance by $1.6 billion, $2.4 billion and $2.8 billion, respectively. |
(2) | At December 31, 2013, 2012 and 2011, the cumulative DVA reduced the derivative liabilities balance by $803 million, $807 million and $2.4 billion, respectively. |
178 Bank of America 2013 |
Debt Securities and Available-for-Sale Marketable Equity Securities | |||||||||||||||
December 31, 2013 | |||||||||||||||
(Dollars in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Available-for-sale debt securities | |||||||||||||||
U.S. Treasury and agency securities | $ | 8,910 | $ | 106 | $ | (62 | ) | $ | 8,954 | ||||||
Mortgage-backed securities: | |||||||||||||||
Agency | 170,112 | 777 | (5,954 | ) | 164,935 | ||||||||||
Agency-collateralized mortgage obligations | 22,731 | 76 | (315 | ) | 22,492 | ||||||||||
Non-agency residential (1) | 6,124 | 238 | (123 | ) | 6,239 | ||||||||||
Commercial | 2,429 | 63 | (12 | ) | 2,480 | ||||||||||
Non-U.S. securities | 7,207 | 37 | (24 | ) | 7,220 | ||||||||||
Corporate/Agency bonds | 860 | 20 | (7 | ) | 873 | ||||||||||
Other taxable securities, substantially all asset-backed securities | 16,805 | 30 | (5 | ) | 16,830 | ||||||||||
Total taxable securities | 235,178 | 1,347 | (6,502 | ) | 230,023 | ||||||||||
Tax-exempt securities | 5,967 | 10 | (49 | ) | 5,928 | ||||||||||
Total available-for-sale debt securities | 241,145 | 1,357 | (6,551 | ) | 235,951 | ||||||||||
Other debt securities carried at fair value | 34,145 | 34 | (1,335 | ) | 32,844 | ||||||||||
Total debt securities carried at fair value | 275,290 | 1,391 | (7,886 | ) | 268,795 | ||||||||||
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities | 55,150 | 20 | (2,740 | ) | 52,430 | ||||||||||
Total debt securities | $ | 330,440 | $ | 1,411 | $ | (10,626 | ) | $ | 321,225 | ||||||
Available-for-sale marketable equity securities (2) | $ | 230 | $ | — | $ | (7 | ) | $ | 223 | ||||||
December 31, 2012 | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
U.S. Treasury and agency securities | $ | 24,232 | $ | 324 | $ | (84 | ) | $ | 24,472 | ||||||
Mortgage-backed securities: | |||||||||||||||
Agency | 183,247 | 5,048 | (146 | ) | 188,149 | ||||||||||
Agency-collateralized mortgage obligations | 36,329 | 1,427 | (218 | ) | 37,538 | ||||||||||
Non-agency residential (1) | 9,231 | 391 | (128 | ) | 9,494 | ||||||||||
Non-agency commercial | 3,576 | 348 | — | 3,924 | |||||||||||
Non-U.S. securities | 5,574 | 50 | (6 | ) | 5,618 | ||||||||||
Corporate/Agency bonds | 1,415 | 51 | (16 | ) | 1,450 | ||||||||||
Other taxable securities, substantially all asset-backed securities | 12,089 | 54 | (15 | ) | 12,128 | ||||||||||
Total taxable securities | 275,693 | 7,693 | (613 | ) | 282,773 | ||||||||||
Tax-exempt securities | 4,167 | 13 | (47 | ) | 4,133 | ||||||||||
Total available-for-sale debt securities | 279,860 | 7,706 | (660 | ) | 286,906 | ||||||||||
Other debt securities carried at fair value | 23,927 | 120 | (103 | ) | 23,944 | ||||||||||
Total debt securities carried at fair value | 303,787 | 7,826 | (763 | ) | 310,850 | ||||||||||
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities | 49,481 | 815 | (26 | ) | 50,270 | ||||||||||
Total debt securities | $ | 353,268 | $ | 8,641 | $ | (789 | ) | $ | 361,120 | ||||||
Available-for-sale marketable equity securities (2) | $ | 780 | $ | 732 | $ | — | $ | 1,512 |
(1) | At December 31, 2013 and 2012, the underlying collateral type included approximately 89 percent and 91 percent prime, seven percent and six percent Alt-A, and four percent and three percent subprime. |
(2) | Classified in other assets on the Consolidated Balance Sheet. |
Bank of America 2013 179 |
Other Debt Securities Carried at Fair Value | |||||||
December 31 | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
U.S. Treasury and agency securities | $ | 4,062 | $ | 491 | |||
Mortgage-backed securities: | |||||||
Agency | 16,500 | 13,073 | |||||
Agency-collateralized mortgage obligations | 218 | 929 | |||||
Commercial | 749 | — | |||||
Non-U.S. securities (1) | 11,315 | 9,451 | |||||
Total | $ | 32,844 | $ | 23,944 |
(1) | These securities are primarily used to satisfy certain international regulatory liquidity requirements. |
Gains and Losses on Sales of AFS Debt Securities | |||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | ||||||||
Gross gains | $ | 1,302 | $ | 2,128 | $ | 3,685 | |||||
Gross losses | (31 | ) | (466 | ) | (311 | ) | |||||
Net gains on sales of AFS debt securities | $ | 1,271 | $ | 1,662 | $ | 3,374 | |||||
Income tax expense attributable to realized net gains on sales of AFS debt securities | $ | 470 | $ | 615 | $ | 1,248 |
Selected Securities Exceeding 10 Percent of Shareholders’ Equity | |||||||||||||||
December 31 | |||||||||||||||
2013 | 2012 | ||||||||||||||
(Dollars in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Fannie Mae | $ | 123,813 | $ | 118,708 | $ | 121,522 | $ | 123,933 | |||||||
Government National Mortgage Association | 118,700 | 115,314 | 124,348 | 127,541 | |||||||||||
Freddie Mac | 24,908 | 24,075 | 22,995 | 23,502 |
180 Bank of America 2013 |
Temporarily Impaired and Other-than-temporarily Impaired AFS Debt Securities | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Longer | Total | |||||||||||||||||||||
(Dollars in millions) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||
Temporarily impaired available-for-sale debt securities | |||||||||||||||||||||||
U.S. Treasury and agency securities | $ | 5,770 | $ | (61 | ) | $ | 19 | $ | (1 | ) | $ | 5,789 | $ | (62 | ) | ||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Agency | 132,032 | (5,457 | ) | 9,324 | (497 | ) | 141,356 | (5,954 | ) | ||||||||||||||
Agency-collateralized mortgage obligations | 13,438 | (210 | ) | 2,661 | (105 | ) | 16,099 | (315 | ) | ||||||||||||||
Non-agency residential | 819 | (15 | ) | 1,237 | (106 | ) | 2,056 | (121 | ) | ||||||||||||||
Commercial | 286 | (12 | ) | — | — | 286 | (12 | ) | |||||||||||||||
Non-U.S. securities | — | — | 45 | (24 | ) | 45 | (24 | ) | |||||||||||||||
Corporate/Agency bonds | 106 | (3 | ) | 282 | (4 | ) | 388 | (7 | ) | ||||||||||||||
Other taxable securities, substantially all asset-backed securities | 116 | (2 | ) | 280 | (3 | ) | 396 | (5 | ) | ||||||||||||||
Total taxable securities | 152,567 | (5,760 | ) | 13,848 | (740 | ) | 166,415 | (6,500 | ) | ||||||||||||||
Tax-exempt securities | 1,789 | (30 | ) | 990 | (19 | ) | 2,779 | (49 | ) | ||||||||||||||
Total temporarily impaired available-for-sale debt securities | 154,356 | (5,790 | ) | 14,838 | (759 | ) | 169,194 | (6,549 | ) | ||||||||||||||
Other-than-temporarily impaired available-for-sale debt securities (1) | |||||||||||||||||||||||
Non-agency residential mortgage-backed securities | 2 | (1 | ) | 1 | (1 | ) | 3 | (2 | ) | ||||||||||||||
Total temporarily impaired and other-than-temporarily impaired available-for-sale securities (2) | $ | 154,358 | $ | (5,791 | ) | $ | 14,839 | $ | (760 | ) | $ | 169,197 | $ | (6,551 | ) | ||||||||
December 31, 2012 | |||||||||||||||||||||||
Temporarily impaired available-for-sale debt securities | |||||||||||||||||||||||
U.S. Treasury and agency securities | $ | — | $ | — | $ | 5,608 | $ | (84 | ) | $ | 5,608 | $ | (84 | ) | |||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Agency | 15,593 | (133 | ) | 735 | (13 | ) | 16,328 | (146 | ) | ||||||||||||||
Agency-collateralized mortgage obligations | 5,135 | (121 | ) | 4,994 | (97 | ) | 10,129 | (218 | ) | ||||||||||||||
Non-agency residential | 592 | (13 | ) | 1,555 | (110 | ) | 2,147 | (123 | ) | ||||||||||||||
Non-U.S. securities | 1,715 | (1 | ) | 563 | (5 | ) | 2,278 | (6 | ) | ||||||||||||||
Corporate/Agency bonds | — | — | 277 | (16 | ) | 277 | (16 | ) | |||||||||||||||
Other taxable securities, substantially all asset-backed securities | 1,678 | (1 | ) | 1,436 | (14 | ) | 3,114 | (15 | ) | ||||||||||||||
Total taxable securities | 24,713 | (269 | ) | 15,168 | (339 | ) | 39,881 | (608 | ) | ||||||||||||||
Tax-exempt securities | 1,609 | (9 | ) | 1,072 | (38 | ) | 2,681 | (47 | ) | ||||||||||||||
Total temporarily impaired available-for-sale debt securities | 26,322 | (278 | ) | 16,240 | (377 | ) | 42,562 | (655 | ) | ||||||||||||||
Other-than-temporarily impaired available-for-sale debt securities (1) | |||||||||||||||||||||||
Non-agency residential mortgage-backed securities | 14 | (1 | ) | 74 | (4 | ) | 88 | (5 | ) | ||||||||||||||
Total temporarily impaired and other-than-temporarily impaired available-for-sale securities (2) | $ | 26,336 | $ | (279 | ) | $ | 16,314 | $ | (381 | ) | $ | 42,650 | $ | (660 | ) |
(1) | Includes other-than-temporarily impaired AFS debt securities on which an OTTI loss remains in accumulated OCI. |
(2) | At December 31, 2013 and 2012, the amortized cost of approximately 4,700 and 2,600 AFS debt securities exceeded their fair value by $6.6 billion and $660 million. |
Bank of America 2013 181 |
Net Impairment Losses Recognized in Earnings | |||||||||||||||
2013 | |||||||||||||||
(Dollars in millions) | Non-agency Residential MBS | Non-agency Commercial MBS | Other Taxable Securities | Total | |||||||||||
Total OTTI losses (unrealized and realized) | $ | (21 | ) | $ | — | $ | — | $ | (21 | ) | |||||
Unrealized OTTI losses recognized in accumulated OCI | 1 | — | — | 1 | |||||||||||
Net impairment losses recognized in earnings | $ | (20 | ) | $ | — | $ | — | $ | (20 | ) | |||||
2012 | |||||||||||||||
Total OTTI losses (unrealized and realized) | $ | (50 | ) | $ | (7 | ) | $ | — | $ | (57 | ) | ||||
Unrealized OTTI losses recognized in accumulated OCI | 4 | — | — | 4 | |||||||||||
Net impairment losses recognized in earnings | $ | (46 | ) | $ | (7 | ) | $ | — | $ | (53 | ) | ||||
2011 | |||||||||||||||
Total OTTI losses (unrealized and realized) | $ | (348 | ) | $ | (10 | ) | $ | (2 | ) | $ | (360 | ) | |||
Unrealized OTTI losses recognized in accumulated OCI | 61 | — | — | 61 | |||||||||||
Net impairment losses recognized in earnings | $ | (287 | ) | $ | (10 | ) | $ | (2 | ) | $ | (299 | ) |
Rollforward of Credit Losses Recognized | |||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | ||||||||
Balance, January 1 | $ | 243 | $ | 310 | $ | 2,148 | |||||
Additions for credit losses recognized on AFS debt securities that had no previous impairment losses | 6 | 7 | 72 | ||||||||
Additions for credit losses recognized on AFS debt securities that had previously incurred impairment losses | 14 | 46 | 149 | ||||||||
Reductions for AFS debt securities matured, sold or intended to be sold | (51 | ) | (120 | ) | (2,059 | ) | |||||
Balance, December 31 | $ | 212 | $ | 243 | $ | 310 |
Significant Assumptions | ||||||||
Range (1) | ||||||||
Weighted- average | 10th Percentile (2) | 90th Percentile (2) | ||||||
Prepayment speed | 11.6 | % | 1.8 | % | 23.6 | % | ||
Loss severity | 41.3 | 14.7 | 52.1 | |||||
Life default rate | 39.4 | 0.9 | 99.6 |
(1) | Represents the range of inputs/assumptions based upon the underlying collateral. |
(2) | The value of a variable below which the indicated percentile of observations will fall. |
182 Bank of America 2013 |
Maturities of Debt Securities Carried at Fair Value and Held-to-maturity Debt Securities | ||||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||
Due in One Year or Less | Due after One Year through Five Years | Due after Five Years through Ten Years | Due after Ten Years | Total | ||||||||||||||||||||||||||||||
(Dollars in millions) | Amount | Yield (1) | Amount | Yield (1) | Amount | Yield (1) | Amount | Yield (1) | Amount | Yield (1) | ||||||||||||||||||||||||
Amortized cost of debt securities carried at fair value | ||||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | $ | 535 | 0.62 | % | $ | 2,337 | 1.71 | % | $ | 8,844 | 2.44 | % | $ | 1,339 | 3.84 | % | $ | 13,055 | 2.38 | % | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||
Agency | 11 | 4.44 | 9,649 | 2.93 | 90,407 | 3.10 | 87,728 | 2.96 | 187,795 | 3.03 | ||||||||||||||||||||||||
Agency-collateralized mortgage obligations | 1,482 | 0.01 | 3,373 | 2.09 | 18,036 | 2.96 | 29 | 0.93 | 22,920 | 2.63 | ||||||||||||||||||||||||
Non-agency residential | 815 | 4.10 | 2,200 | 4.06 | 1,149 | 3.13 | 1,960 | 2.59 | 6,124 | 3.42 | ||||||||||||||||||||||||
Commercial | 1,683 | 5.01 | 466 | 6.43 | 1,089 | 2.51 | 7 | 4.09 | 3,245 | 4.37 | ||||||||||||||||||||||||
Non-U.S. securities | 16,288 | 1.04 | 2,074 | 3.98 | 149 | 3.34 | 8 | 3.10 | 18,519 | 1.39 | ||||||||||||||||||||||||
Corporate/Agency bonds | 395 | 2.48 | 206 | 5.69 | 112 | 4.12 | 147 | 1.38 | 860 | 3.27 | ||||||||||||||||||||||||
Other taxable securities, substantially all asset-backed securities | 6,655 | 1.58 | 7,274 | 1.37 | 2,105 | 2.06 | 771 | 0.84 | 16,805 | 1.50 | ||||||||||||||||||||||||
Total taxable securities | 27,864 | 1.46 | 27,579 | 2.56 | 121,891 | 3.01 | 91,989 | 2.95 | 269,323 | 2.78 | ||||||||||||||||||||||||
Tax-exempt securities | 195 | 1.66 | 2,324 | 1.49 | 2,429 | 1.90 | 1,019 | 0.61 | 5,967 | 1.54 | ||||||||||||||||||||||||
Total amortized cost of debt securities carried at fair value | $ | 28,059 | 1.47 | $ | 29,903 | 2.46 | $ | 124,320 | 2.99 | $ | 93,008 | 2.92 | $ | 275,290 | 2.75 | |||||||||||||||||||
Amortized cost of held-to-maturity debt securities (2) | $ | — | — | $ | 125 | 1.79 | $ | 53,699 | 2.60 | $ | 1,326 | 2.72 | $ | 55,150 | 2.61 | |||||||||||||||||||
Debt securities carried at fair value | ||||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | $ | 537 | $ | 2,333 | $ | 8,831 | $ | 1,315 | $ | 13,016 | ||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||
Agency | 11 | 9,708 | 88,191 | 83,525 | 181,435 | |||||||||||||||||||||||||||||
Agency-collateralized mortgage obligations | 1,480 | 3,284 | 17,916 | 30 | 22,710 | |||||||||||||||||||||||||||||
Non-agency residential | 805 | 2,236 | 1,173 | 2,025 | 6,239 | |||||||||||||||||||||||||||||
Commercial | 1,715 | 494 | 1,013 | 7 | 3,229 | |||||||||||||||||||||||||||||
Non-U.S. securities | 16,273 | 2,099 | 155 | 8 | 18,535 | |||||||||||||||||||||||||||||
Corporate/Agency bonds | 395 | 220 | 116 | 142 | 873 | |||||||||||||||||||||||||||||
Other taxable securities, substantially all asset-backed securities | 6,656 | 7,280 | 2,120 | 774 | 16,830 | |||||||||||||||||||||||||||||
Total taxable securities | 27,872 | 27,654 | 119,515 | 87,826 | 262,867 | |||||||||||||||||||||||||||||
Tax-exempt securities | 194 | 2,319 | 2,409 | 1,006 | 5,928 | |||||||||||||||||||||||||||||
Total debt securities carried at fair value | $ | 28,066 | $ | 29,973 | $ | 121,924 | $ | 88,832 | $ | 268,795 | ||||||||||||||||||||||||
Fair value of held-to-maturity debt securities (2) | $ | — | $ | 125 | $ | 51,062 | $ | 1,243 | $ | 52,430 |
(1) | Average yield is computed using the effective yield of each security at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and excludes the effect of related hedging derivatives. |
(2) | Substantially all U.S. agency MBS. |
Bank of America 2013 183 |
December 31, 2013 | |||||||||||||||||||||||||||||||
(Dollars in millions) | 30-59 Days Past Due (1) | 60-89 Days Past Due (1) | 90 Days or More Past Due (2) | Total Past Due 30 Days or More | Total Current or Less Than 30 Days Past Due (3) | Purchased Credit-impaired (4) | Loans Accounted for Under the Fair Value Option | Total Outstandings | |||||||||||||||||||||||
Home loans | |||||||||||||||||||||||||||||||
Core portfolio | |||||||||||||||||||||||||||||||
Residential mortgage | $ | 2,151 | $ | 754 | $ | 7,188 | $ | 10,093 | $ | 167,243 | $ | 177,336 | |||||||||||||||||||
Home equity | 243 | 113 | 693 | 1,049 | 53,450 | 54,499 | |||||||||||||||||||||||||
Legacy Assets & Servicing portfolio | |||||||||||||||||||||||||||||||
Residential mortgage (5) | 2,758 | 1,412 | 16,746 | 20,916 | 31,142 | $ | 18,672 | 70,730 | |||||||||||||||||||||||
Home equity | 444 | 221 | 1,292 | 1,957 | 30,623 | 6,593 | 39,173 | ||||||||||||||||||||||||
Credit card and other consumer | |||||||||||||||||||||||||||||||
U.S. credit card | 598 | 422 | 1,053 | 2,073 | 90,265 | 92,338 | |||||||||||||||||||||||||
Non-U.S. credit card | 63 | 54 | 131 | 248 | 11,293 | 11,541 | |||||||||||||||||||||||||
Direct/Indirect consumer (6) | 431 | 175 | 410 | 1,016 | 81,176 | 82,192 | |||||||||||||||||||||||||
Other consumer (7) | 24 | 8 | 20 | 52 | 1,925 | 1,977 | |||||||||||||||||||||||||
Total consumer | 6,712 | 3,159 | 27,533 | 37,404 | 467,117 | 25,265 | 529,786 | ||||||||||||||||||||||||
Consumer loans accounted for under the fair value option (8) | $ | 2,164 | 2,164 | ||||||||||||||||||||||||||||
Total consumer loans and leases | 6,712 | 3,159 | 27,533 | 37,404 | 467,117 | 25,265 | 2,164 | 531,950 | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||
U.S. commercial | 363 | 151 | 309 | 823 | 211,734 | 212,557 | |||||||||||||||||||||||||
Commercial real estate (9) | 30 | 29 | 243 | 302 | 47,591 | 47,893 | |||||||||||||||||||||||||
Commercial lease financing | 110 | 37 | 48 | 195 | 25,004 | 25,199 | |||||||||||||||||||||||||
Non-U.S. commercial | 103 | 8 | 17 | 128 | 89,334 | 89,462 | |||||||||||||||||||||||||
U.S. small business commercial | 87 | 55 | 113 | 255 | 13,039 | 13,294 | |||||||||||||||||||||||||
Total commercial | 693 | 280 | 730 | 1,703 | 386,702 | 388,405 | |||||||||||||||||||||||||
Commercial loans accounted for under the fair value option (8) | 7,878 | 7,878 | |||||||||||||||||||||||||||||
Total commercial loans and leases | 693 | 280 | 730 | 1,703 | 386,702 | 7,878 | 396,283 | ||||||||||||||||||||||||
Total loans and leases | $ | 7,405 | $ | 3,439 | $ | 28,263 | $ | 39,107 | $ | 853,819 | $ | 25,265 | $ | 10,042 | $ | 928,233 | |||||||||||||||
Percentage of outstandings | 0.80 | % | 0.37 | % | 3.04 | % | 4.21 | % | 91.99 | % | 2.72 | % | 1.08 | % |
(1) | Home loans 30-59 days past due includes fully-insured loans of $2.5 billion and nonperforming loans of $623 million. Home loans 60-89 days past due includes fully-insured loans of $1.2 billion and nonperforming loans of $410 million. |
(2) | Home loans includes fully-insured loans of $17.0 billion. |
(3) | Home loans includes $5.9 billion and direct/indirect consumer includes $33 million of nonperforming loans. |
(4) | PCI loan amounts are shown gross of the valuation allowance. |
(5) | Total outstandings includes pay option loans of $4.4 billion. The Corporation no longer originates this product. |
(6) | Total outstandings includes dealer financial services loans of $38.5 billion, consumer lending loans of $2.7 billion, U.S. securities-based lending loans of $31.2 billion, non-U.S. consumer loans of $4.7 billion, student loans of $4.1 billion and other consumer loans of $1.0 billion. |
(7) | Total outstandings includes consumer finance loans of $1.2 billion, consumer leases of $606 million, consumer overdrafts of $176 million and other non-U.S. consumer loans of $5 million. |
(8) | Consumer loans accounted for under the fair value option were residential mortgage loans of $2.0 billion and home equity loans of $147 million. Commercial loans accounted for under the fair value option were U.S. commercial loans of $1.5 billion and non-U.S. commercial loans of $6.4 billion. For additional information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option. |
(9) | Total outstandings includes U.S. commercial real estate loans of $46.3 billion and non-U.S. commercial real estate loans of $1.6 billion. |
184 Bank of America 2013 |
December 31, 2012 | |||||||||||||||||||||||||||||||
(Dollars in millions) | 30-59 Days Past Due (1) | 60-89 Days Past Due (1) | 90 Days or More Past Due (2) | Total Past Due 30 Days or More | Total Current or Less Than 30 Days Past Due (3) | Purchased Credit-impaired (4) | Loans Accounted for Under the Fair Value Option | Total Outstandings | |||||||||||||||||||||||
Home loans | |||||||||||||||||||||||||||||||
Core portfolio | |||||||||||||||||||||||||||||||
Residential mortgage (5) | $ | 2,274 | $ | 806 | $ | 6,227 | $ | 9,307 | $ | 160,809 | $ | 170,116 | |||||||||||||||||||
Home equity | 273 | 146 | 591 | 1,010 | 59,841 | 60,851 | |||||||||||||||||||||||||
Legacy Assets & Servicing portfolio | |||||||||||||||||||||||||||||||
Residential mortgage (6) | 2,938 | 1,714 | 26,728 | 31,380 | 33,982 | $ | 17,451 | 82,813 | |||||||||||||||||||||||
Home equity | 608 | 357 | 1,444 | 2,409 | 36,213 | 8,667 | 47,289 | ||||||||||||||||||||||||
Credit card and other consumer | |||||||||||||||||||||||||||||||
U.S. credit card | 729 | 582 | 1,437 | 2,748 | 92,087 | 94,835 | |||||||||||||||||||||||||
Non-U.S. credit card | 106 | 85 | 212 | 403 | 11,294 | 11,697 | |||||||||||||||||||||||||
Direct/Indirect consumer (7) | 569 | 239 | 573 | 1,381 | 81,824 | 83,205 | |||||||||||||||||||||||||
Other consumer (8) | 48 | 19 | 4 | 71 | 1,557 | 1,628 | |||||||||||||||||||||||||
Total consumer | 7,545 | 3,948 | 37,216 | 48,709 | 477,607 | 26,118 | 552,434 | ||||||||||||||||||||||||
Consumer loans accounted for under the fair value option (9) | $ | 1,005 | 1,005 | ||||||||||||||||||||||||||||
Total consumer loans and leases | 7,545 | 3,948 | 37,216 | 48,709 | 477,607 | 26,118 | 1,005 | 553,439 | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||
U.S. commercial | 323 | 133 | 639 | 1,095 | 196,031 | 197,126 | |||||||||||||||||||||||||
Commercial real estate (10) | 79 | 144 | 983 | 1,206 | 37,431 | 38,637 | |||||||||||||||||||||||||
Commercial lease financing | 84 | 79 | 30 | 193 | 23,650 | 23,843 | |||||||||||||||||||||||||
Non-U.S. commercial | 2 | — | — | 2 | 74,182 | 74,184 | |||||||||||||||||||||||||
U.S. small business commercial | 101 | 75 | 168 | 344 | 12,249 | 12,593 | |||||||||||||||||||||||||
Total commercial | 589 | 431 | 1,820 | 2,840 | 343,543 | 346,383 | |||||||||||||||||||||||||
Commercial loans accounted for under the fair value option (9) | 7,997 | 7,997 | |||||||||||||||||||||||||||||
Total commercial loans and leases | 589 | 431 | 1,820 | 2,840 | 343,543 | 7,997 | 354,380 | ||||||||||||||||||||||||
Total loans and leases | $ | 8,134 | $ | 4,379 | $ | 39,036 | $ | 51,549 | $ | 821,150 | $ | 26,118 | $ | 9,002 | $ | 907,819 | |||||||||||||||
Percentage of outstandings | 0.90 | % | 0.48 | % | 4.30 | % | 5.68 | % | 90.45 | % | 2.88 | % | 0.99 | % |
(1) | Home loans 30-59 days past due includes fully-insured loans of $2.3 billion and nonperforming loans of $702 million. Home loans 60-89 days past due includes fully-insured loans of $1.3 billion and nonperforming loans of $558 million. |
(2) | Home loans includes fully-insured loans of $22.2 billion. |
(3) | Home loans includes $5.5 billion and direct/indirect consumer includes $63 million of nonperforming loans. |
(4) | PCI loan amounts are shown gross of the valuation allowance. |
(5) | Total outstandings includes non-U.S. residential mortgage loans of $93 million. |
(6) | Total outstandings includes pay option loans of $6.7 billion. The Corporation no longer originates this product. |
(7) | Total outstandings includes dealer financial services loans of $35.9 billion, consumer lending loans of $4.7 billion, U.S. securities-based lending loans of $28.3 billion, non-U.S. consumer loans of $8.3 billion, student loans of $4.8 billion and other consumer loans of $1.2 billion. |
(8) | Total outstandings includes consumer finance loans of $1.4 billion, consumer leases of $34 million, consumer overdrafts of $177 million and other non-U.S. consumer loans of $5 million. |
(9) | Consumer loans accounted for under the fair value option were residential mortgage loans of $1.0 billion. Commercial loans accounted for under the fair value option were U.S. commercial loans of $2.3 billion and non-U.S. commercial loans of $5.7 billion. For additional information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option. |
(10) | Total outstandings includes U.S. commercial real estate loans of $37.2 billion and non-U.S. commercial real estate loans of $1.5 billion. |
Bank of America 2013 185 |
186 Bank of America 2013 |
Credit Quality | |||||||||||||||
December 31 | |||||||||||||||
Nonperforming Loans and Leases (1) | Accruing Past Due 90 Days or More | ||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Home loans | |||||||||||||||
Core portfolio | |||||||||||||||
Residential mortgage (2) | $ | 3,316 | $ | 3,193 | $ | 5,137 | $ | 3,984 | |||||||
Home equity | 1,431 | 1,265 | — | — | |||||||||||
Legacy Assets & Servicing portfolio | |||||||||||||||
Residential mortgage (2) | 8,396 | 11,862 | 11,824 | 18,173 | |||||||||||
Home equity | 2,644 | 3,017 | — | — | |||||||||||
Credit card and other consumer | |||||||||||||||
U.S. credit card | n/a | n/a | 1,053 | 1,437 | |||||||||||
Non-U.S. credit card | n/a | n/a | 131 | 212 | |||||||||||
Direct/Indirect consumer | 35 | 92 | 408 | 545 | |||||||||||
Other consumer | 18 | 2 | 2 | 2 | |||||||||||
Total consumer | 15,840 | 19,431 | 18,555 | 24,353 | |||||||||||
Commercial | |||||||||||||||
U.S. commercial | 819 | 1,484 | 47 | 65 | |||||||||||
Commercial real estate | 322 | 1,513 | 21 | 29 | |||||||||||
Commercial lease financing | 16 | 44 | 41 | 15 | |||||||||||
Non-U.S. commercial | 64 | 68 | 17 | — | |||||||||||
U.S. small business commercial | 88 | 115 | 78 | 120 | |||||||||||
Total commercial | 1,309 | 3,224 | 204 | 229 | |||||||||||
Total loans and leases | $ | 17,149 | $ | 22,655 | $ | 18,759 | $ | 24,582 |
(1) | Nonperforming loan balances do not include nonaccruing TDRs removed from the PCI loan portfolio prior to January 1, 2010 of $260 million and $521 million at December 31, 2013 and 2012. |
(2) | Residential mortgage loans in the Core and Legacy Assets & Servicing portfolios accruing past due 90 days or more are fully-insured loans. At December 31, 2013 and 2012, residential mortgage includes $13.0 billion and $17.8 billion of loans on which interest has been curtailed by the FHA, and therefore are no longer accruing interest, although principal is still insured, and $4.0 billion and $4.4 billion of loans on which interest is still accruing. |
Bank of America 2013 187 |
Home Loans – Credit Quality Indicators (1) | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
(Dollars in millions) | Core Portfolio Residential Mortgage (2) | Legacy Assets & Servicing Residential Mortgage (2) | Residential Mortgage PCI (3) | Core Portfolio Home Equity (2) | Legacy Assets & Servicing Home Equity (2) | Home Equity PCI | |||||||||||||||||
Refreshed LTV (4) | |||||||||||||||||||||||
Less than or equal to 90 percent | $ | 95,833 | $ | 22,391 | $ | 11,400 | $ | 45,898 | $ | 16,714 | $ | 2,036 | |||||||||||
Greater than 90 percent but less than or equal to 100 percent | 5,541 | 4,134 | 2,653 | 3,659 | 4,233 | 698 | |||||||||||||||||
Greater than 100 percent | 6,250 | 7,998 | 4,619 | 4,942 | 11,633 | 3,859 | |||||||||||||||||
Fully-insured loans (5) | 69,712 | 17,535 | — | — | — | — | |||||||||||||||||
Total home loans | $ | 177,336 | $ | 52,058 | $ | 18,672 | $ | 54,499 | $ | 32,580 | $ | 6,593 | |||||||||||
Refreshed FICO score | |||||||||||||||||||||||
Less than 620 | $ | 5,924 | $ | 10,391 | $ | 9,792 | $ | 2,343 | $ | 4,229 | $ | 1,072 | |||||||||||
Greater than or equal to 620 and less than 680 | 7,863 | 5,452 | 3,135 | 4,057 | 5,050 | 1,165 | |||||||||||||||||
Greater than or equal to 680 and less than 740 | 24,034 | 7,791 | 3,034 | 11,276 | 9,032 | 1,935 | |||||||||||||||||
Greater than or equal to 740 | 69,803 | 10,889 | 2,711 | 36,823 | 14,269 | 2,421 | |||||||||||||||||
Fully-insured loans (5) | 69,712 | 17,535 | — | — | — | — | |||||||||||||||||
Total home loans | $ | 177,336 | $ | 52,058 | $ | 18,672 | $ | 54,499 | $ | 32,580 | $ | 6,593 |
(1) | Excludes $2.2 billion of loans accounted for under the fair value option. |
(2) | Excludes PCI loans. |
(3) | Includes $4.0 billion of pay option loans. The Corporation no longer originates this product. |
(4) | Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance. |
(5) | Credit quality indicators are not reported for fully-insured loans as principal repayment is insured. |
Credit Card and Other Consumer – Credit Quality Indicators | |||||||||||||||
December 31, 2013 | |||||||||||||||
(Dollars in millions) | U.S. Credit Card | Non-U.S. Credit Card | Direct/Indirect Consumer | Other Consumer (1) | |||||||||||
Refreshed FICO score | |||||||||||||||
Less than 620 | $ | 4,989 | $ | — | $ | 1,220 | $ | 539 | |||||||
Greater than or equal to 620 and less than 680 | 12,753 | — | 3,345 | 264 | |||||||||||
Greater than or equal to 680 and less than 740 | 35,413 | — | 9,887 | 199 | |||||||||||
Greater than or equal to 740 | 39,183 | — | 26,220 | 188 | |||||||||||
Other internal credit metrics (2, 3, 4) | — | 11,541 | 41,520 | 787 | |||||||||||
Total credit card and other consumer | $ | 92,338 | $ | 11,541 | $ | 82,192 | $ | 1,977 |
(1) | 60 percent of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited. |
(2) | Other internal credit metrics may include delinquency status, geography or other factors. |
(3) | Direct/indirect consumer includes $35.8 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $4.1 billion of loans the Corporation no longer originates. |
(4) | Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At December 31, 2013, 98 percent of this portfolio was current or less than 30 days past due, one percent was 30-89 days past due and one percent was 90 days or more past due. |
Commercial – Credit Quality Indicators (1) | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||
(Dollars in millions) | U.S. Commercial | Commercial Real Estate | Commercial Lease Financing | Non-U.S. Commercial | U.S. Small Business Commercial (2) | ||||||||||||||
Risk ratings | |||||||||||||||||||
Pass rated | $ | 205,416 | $ | 46,507 | $ | 24,211 | $ | 88,138 | $ | 1,191 | |||||||||
Reservable criticized | 7,141 | 1,386 | 988 | 1,324 | 346 | ||||||||||||||
Refreshed FICO score (3) | |||||||||||||||||||
Less than 620 | 224 | ||||||||||||||||||
Greater than or equal to 620 and less than 680 | 534 | ||||||||||||||||||
Greater than or equal to 680 and less than 740 | 1,567 | ||||||||||||||||||
Greater than or equal to 740 | 2,779 | ||||||||||||||||||
Other internal credit metrics (3, 4) | 6,653 | ||||||||||||||||||
Total commercial | $ | 212,557 | $ | 47,893 | $ | 25,199 | $ | 89,462 | $ | 13,294 |
(1) | Excludes $7.9 billion of loans accounted for under the fair value option. |
(2) | U.S. small business commercial includes $289 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At December 31, 2013, 99 percent of the balances where internal credit metrics are used was current or less than 30 days past due. |
(3) | Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio. |
(4) | Other internal credit metrics may include delinquency status, application scores, geography or other factors. |
188 Bank of America 2013 |
Home Loans – Credit Quality Indicators (1) | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
(Dollars in millions) | Core Portfolio Residential Mortgage (2) | Legacy Assets & Servicing Residential Mortgage (2) | Residential Mortgage PCI (3) | Core Portfolio Home Equity (2) | Legacy Assets & Servicing Home Equity (2) | Home Equity PCI | |||||||||||||||||
Refreshed LTV (4) | |||||||||||||||||||||||
Less than or equal to 90 percent | $ | 80,585 | $ | 20,613 | $ | 8,581 | $ | 44,971 | $ | 15,922 | $ | 2,074 | |||||||||||
Greater than 90 percent but less than or equal to 100 percent | 8,891 | 5,097 | 2,368 | 5,825 | 4,507 | 805 | |||||||||||||||||
Greater than 100 percent | 12,984 | 16,454 | 6,502 | 10,055 | 18,193 | 5,788 | |||||||||||||||||
Fully-insured loans (5) | 67,656 | 23,198 | — | — | — | — | |||||||||||||||||
Total home loans | $ | 170,116 | $ | 65,362 | $ | 17,451 | $ | 60,851 | $ | 38,622 | $ | 8,667 | |||||||||||
Refreshed FICO score | |||||||||||||||||||||||
Less than 620 | $ | 6,366 | $ | 14,320 | $ | 8,647 | $ | 2,586 | $ | 5,411 | $ | 1,989 | |||||||||||
Greater than or equal to 620 and less than 680 | 8,561 | 6,157 | 2,712 | 4,500 | 5,921 | 1,529 | |||||||||||||||||
Greater than or equal to 680 and less than 740 | 25,141 | 8,611 | 2,976 | 12,625 | 10,395 | 2,299 | |||||||||||||||||
Greater than or equal to 740 | 62,392 | 13,076 | 3,116 | 41,140 | 16,895 | 2,850 | |||||||||||||||||
Fully-insured loans (5) | 67,656 | 23,198 | — | — | — | — | |||||||||||||||||
Total home loans | $ | 170,116 | $ | 65,362 | $ | 17,451 | $ | 60,851 | $ | 38,622 | $ | 8,667 |
(1) | Excludes $1.0 billion of loans accounted for under the fair value option. |
(2) | Excludes PCI loans. |
(3) | Includes $6.1 billion of pay option loans. The Corporation no longer originates this product. |
(4) | Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance. |
(5) | Credit quality indicators are not reported for fully-insured loans as principal repayment is insured. |
Credit Card and Other Consumer – Credit Quality Indicators | |||||||||||||||
December 31, 2012 | |||||||||||||||
(Dollars in millions) | U.S. Credit Card | Non-U.S. Credit Card | Direct/Indirect Consumer | Other Consumer (1) | |||||||||||
Refreshed FICO score | |||||||||||||||
Less than 620 | $ | 6,188 | $ | — | $ | 1,896 | $ | 668 | |||||||
Greater than or equal to 620 and less than 680 | 13,947 | — | 3,367 | 301 | |||||||||||
Greater than or equal to 680 and less than 740 | 37,167 | — | 9,592 | 232 | |||||||||||
Greater than or equal to 740 | 37,533 | — | 25,164 | 212 | |||||||||||
Other internal credit metrics (2, 3, 4) | — | 11,697 | 43,186 | 215 | |||||||||||
Total credit card and other consumer | $ | 94,835 | $ | 11,697 | $ | 83,205 | $ | 1,628 |
(1) | 87 percent of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited. |
(2) | Other internal credit metrics may include delinquency status, geography or other factors. |
(3) | Direct/indirect consumer includes $36.5 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $4.8 billion of loans the Corporation no longer originates. |
(4) | Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At December 31, 2012, 97 percent of this portfolio was current or less than 30 days past due, one percent was 30-89 days past due and two percent was 90 days or more past due. |
Commercial – Credit Quality Indicators (1) | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||
(Dollars in millions) | U.S. Commercial | Commercial Real Estate | Commercial Lease Financing | Non-U.S. Commercial | U.S. Small Business Commercial (2) | ||||||||||||||
Risk ratings | |||||||||||||||||||
Pass rated | $ | 189,602 | $ | 34,968 | $ | 22,874 | $ | 72,688 | $ | 1,690 | |||||||||
Reservable criticized | 7,524 | 3,669 | 969 | 1,496 | 573 | ||||||||||||||
Refreshed FICO score (3) | |||||||||||||||||||
Less than 620 | 400 | ||||||||||||||||||
Greater than or equal to 620 and less than 680 | 580 | ||||||||||||||||||
Greater than or equal to 680 and less than 740 | 1,553 | ||||||||||||||||||
Greater than or equal to 740 | 2,496 | ||||||||||||||||||
Other internal credit metrics (3, 4) | 5,301 | ||||||||||||||||||
Total commercial | $ | 197,126 | $ | 38,637 | $ | 23,843 | $ | 74,184 | $ | 12,593 |
(1) | Excludes $8.0 billion of loans accounted for under the fair value option. |
(2) | U.S. small business commercial includes $366 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At December 31, 2012, 98 percent of the balances where internal credit metrics are used was current or less than 30 days past due. |
(3) | Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio. |
(4) | Other internal credit metrics may include delinquency status, application scores, geography or other factors. |
Bank of America 2013 189 |
190 Bank of America 2013 |
Impaired Loans – Home Loans | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
(Dollars in millions) | Unpaid Principal Balance | Carrying Value | Related Allowance | Unpaid Principal Balance | Carrying Value | Related Allowance | |||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||
Residential mortgage | $ | 21,567 | $ | 16,450 | $ | — | $ | 20,226 | $ | 14,967 | $ | — | |||||||||||
Home equity | 3,249 | 1,385 | — | 2,624 | 1,103 | — | |||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
Residential mortgage | 13,341 | 12,862 | 991 | 14,223 | 13,158 | 1,252 | |||||||||||||||||
Home equity | 893 | 761 | 240 | 1,256 | 1,022 | 448 | |||||||||||||||||
Total | |||||||||||||||||||||||
Residential mortgage | $ | 34,908 | $ | 29,312 | $ | 991 | $ | 34,449 | $ | 28,125 | $ | 1,252 | |||||||||||
Home equity | 4,142 | 2,146 | 240 | 3,880 | 2,125 | 448 | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Average Carrying Value | Interest Income Recognized (1) | Average Carrying Value | Interest Income Recognized (1) | Average Carrying Value | Interest Income Recognized (1) | ||||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||
Residential mortgage | $ | 16,625 | $ | 621 | $ | 10,937 | $ | 366 | $ | 6,507 | $ | 241 | |||||||||||
Home equity | 1,245 | 76 | 734 | 49 | 442 | 23 | |||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
Residential mortgage | 13,926 | 616 | 11,575 | 423 | 9,552 | 325 | |||||||||||||||||
Home equity | 912 | 41 | 1,145 | 44 | 1,357 | 34 | |||||||||||||||||
Total | |||||||||||||||||||||||
Residential mortgage | $ | 30,551 | $ | 1,237 | $ | 22,512 | $ | 789 | $ | 16,059 | $ | 566 | |||||||||||
Home equity | 2,157 | 117 | 1,879 | 93 | 1,799 | 57 |
(1) | Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible. |
Home Loans – TDRs Entered into During 2013, 2012 and 2011 (1) | |||||||||||||||||
December 31, 2013 | 2013 | ||||||||||||||||
(Dollars in millions) | Unpaid Principal Balance | Carrying Value | Pre-Modification Interest Rate | Post-Modification Interest Rate | Net Charge-offs (2) | ||||||||||||
Residential mortgage | $ | 11,233 | $ | 10,016 | 5.30 | % | 4.27 | % | $ | 235 | |||||||
Home equity | 878 | 521 | 5.29 | 3.92 | 192 | ||||||||||||
Total | $ | 12,111 | $ | 10,537 | 5.30 | 4.24 | $ | 427 | |||||||||
December 31, 2012 | 2012 | ||||||||||||||||
Residential mortgage | $ | 15,088 | $ | 12,228 | 5.52 | % | 4.70 | % | $ | 523 | |||||||
Home equity | 1,721 | 858 | 5.22 | 4.39 | 716 | ||||||||||||
Total | $ | 16,809 | $ | 13,086 | 5.49 | 4.66 | $ | 1,239 | |||||||||
December 31, 2011 | 2011 | ||||||||||||||||
Residential mortgage | $ | 11,764 | $ | 9,991 | 5.94 | % | 5.16 | % | $ | 308 | |||||||
Home equity | 1,112 | 556 | 6.58 | 5.25 | 239 | ||||||||||||
Total | $ | 12,876 | $ | 10,547 | 6.01 | 5.17 | $ | 547 |
(1) | TDRs entered into during 2013 include residential mortgage modifications with principal forgiveness of $467 million. TDRs entered into during 2012 include residential mortgage modifications with principal forgiveness of $778 million and home equity modifications of $9 million. Prior to 2012, the principal forgiveness amount was not significant. |
(2) | Net charge-offs include amounts recorded on loans modified during the period that are no longer held by the Corporation at December 31, 2013, 2012 and 2011 due to sales and other dispositions. |
Bank of America 2013 191 |
Home Loans – Modification Programs | |||||||||||
TDRs Entered into During 2013 | |||||||||||
(Dollars in millions) | Residential Mortgage | Home Equity | Total Carrying Value | ||||||||
Modifications under government programs | |||||||||||
Contractual interest rate reduction | $ | 1,815 | $ | 48 | $ | 1,863 | |||||
Principal and/or interest forbearance | 35 | 24 | 59 | ||||||||
Other modifications (1) | 100 | — | 100 | ||||||||
Total modifications under government programs | 1,950 | 72 | 2,022 | ||||||||
Modifications under proprietary programs | |||||||||||
Contractual interest rate reduction | 2,799 | 40 | 2,839 | ||||||||
Capitalization of past due amounts | 132 | 2 | 134 | ||||||||
Principal and/or interest forbearance | 469 | 17 | 486 | ||||||||
Other modifications (1) | 105 | 25 | 130 | ||||||||
Total modifications under proprietary programs | 3,505 | 84 | 3,589 | ||||||||
Trial modifications | 3,410 | 87 | 3,497 | ||||||||
Loans discharged in Chapter 7 bankruptcy (2) | 1,151 | 278 | 1,429 | ||||||||
Total modifications | $ | 10,016 | $ | 521 | $ | 10,537 | |||||
TDRs Entered into During 2012 | |||||||||||
Modifications under government programs | |||||||||||
Contractual interest rate reduction | $ | 642 | $ | 78 | $ | 720 | |||||
Principal and/or interest forbearance | 51 | 31 | 82 | ||||||||
Other modifications (1) | 37 | 1 | 38 | ||||||||
Total modifications under government programs | 730 | 110 | 840 | ||||||||
Modifications under proprietary programs | |||||||||||
Contractual interest rate reduction | 3,350 | 44 | 3,394 | ||||||||
Capitalization of past due amounts | 144 | — | 144 | ||||||||
Principal and/or interest forbearance | 424 | 16 | 440 | ||||||||
Other modifications (1) | 97 | 21 | 118 | ||||||||
Total modifications under proprietary programs | 4,015 | 81 | 4,096 | ||||||||
Trial modifications | 4,547 | 69 | 4,616 | ||||||||
Loans discharged in Chapter 7 bankruptcy (2) | 2,936 | 598 | 3,534 | ||||||||
Total modifications | $ | 12,228 | $ | 858 | $ | 13,086 | |||||
TDRs Entered into During 2011 | |||||||||||
Modifications under government programs | |||||||||||
Contractual interest rate reduction | $ | 994 | $ | 189 | $ | 1,183 | |||||
Principal and/or interest forbearance | 189 | 36 | 225 | ||||||||
Other modifications (1) | 64 | 5 | 69 | ||||||||
Total modifications under government programs | 1,247 | 230 | 1,477 | ||||||||
Modifications under proprietary programs | |||||||||||
Contractual interest rate reduction | 3,531 | 101 | 3,632 | ||||||||
Capitalization of past due amounts | 410 | 1 | 411 | ||||||||
Principal and/or interest forbearance | 946 | 49 | 995 | ||||||||
Other modifications (1) | 441 | 34 | 475 | ||||||||
Total modifications under proprietary programs | 5,328 | 185 | 5,513 | ||||||||
Trial modifications | 3,416 | 141 | 3,557 | ||||||||
Total modifications | $ | 9,991 | $ | 556 | $ | 10,547 |
(1) | Includes other modifications such as term or payment extensions and repayment plans. |
(2) | Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs. The amount for 2012 represents the cumulative impact upon adoption of the regulatory guidance. During 2013, home loans of $587 million, or 41 percent of loans discharged in Chapter 7 bankruptcy were current or less than 60 days past due. |
192 Bank of America 2013 |
Home Loans – TDRs Entering Payment Default That Were Modified During the Preceding 12 Months | |||||||||||
2013 | |||||||||||
(Dollars in millions) | Residential Mortgage | Home Equity | Total Carrying Value (1) | ||||||||
Modifications under government programs | $ | 454 | $ | 2 | $ | 456 | |||||
Modifications under proprietary programs | 1,117 | 4 | 1,121 | ||||||||
Loans discharged in Chapter 7 bankruptcy (2) | 964 | 30 | 994 | ||||||||
Trial modifications | 4,376 | 14 | 4,390 | ||||||||
Total modifications | $ | 6,911 | $ | 50 | $ | 6,961 | |||||
2012 | |||||||||||
Modifications under government programs | $ | 202 | $ | 8 | $ | 210 | |||||
Modifications under proprietary programs | 942 | 14 | 956 | ||||||||
Loans discharged in Chapter 7 bankruptcy (2) | 1,228 | 53 | 1,281 | ||||||||
Trial modifications | 2,351 | 20 | 2,371 | ||||||||
Total modifications | $ | 4,723 | $ | 95 | $ | 4,818 | |||||
2011 | |||||||||||
Modifications under government programs | $ | 352 | $ | 2 | $ | 354 | |||||
Modifications under proprietary programs | 2,098 | 42 | 2,140 | ||||||||
Trial modifications | 1,101 | 17 | 1,118 | ||||||||
Total modifications | $ | 3,551 | $ | 61 | $ | 3,612 |
(1) | Total carrying value includes loans with a carrying value of $2.4 billion, $667 million and $514 million that entered into payment default during 2013, 2012 and 2011 but were no longer held by the Corporation as of December 31, 2013, 2012 and 2011 due to sales and other dispositions. |
(2) | Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs. |
Bank of America 2013 193 |
Impaired Loans – Credit Card and Other Consumer – Renegotiated TDRs | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
(Dollars in millions) | Unpaid Principal Balance | Carrying Value (1) | Related Allowance | Unpaid Principal Balance | Carrying Value (1) | Related Allowance | |||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
U.S. credit card | $ | 1,384 | $ | 1,465 | $ | 337 | $ | 2,856 | $ | 2,871 | $ | 719 | |||||||||||
Non-U.S. credit card | 200 | 240 | 149 | 311 | 316 | 198 | |||||||||||||||||
Direct/Indirect consumer | 242 | 282 | 84 | 633 | 636 | 210 | |||||||||||||||||
Other consumer | 27 | 26 | 9 | 30 | 30 | 12 | |||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||
Direct/Indirect consumer | 75 | 32 | — | 105 | 58 | — | |||||||||||||||||
Other consumer | 34 | 34 | — | 35 | 35 | — | |||||||||||||||||
Total | |||||||||||||||||||||||
U.S. credit card | $ | 1,384 | $ | 1,465 | $ | 337 | $ | 2,856 | $ | 2,871 | $ | 719 | |||||||||||
Non-U.S. credit card | 200 | 240 | 149 | 311 | 316 | 198 | |||||||||||||||||
Direct/Indirect consumer | 317 | 314 | 84 | 738 | 694 | 210 | |||||||||||||||||
Other consumer | 61 | 60 | 9 | 65 | 65 | 12 | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | ||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
U.S. credit card | $ | 2,144 | $ | 134 | $ | 4,085 | $ | 253 | $ | 7,211 | $ | 433 | |||||||||||
Non-U.S. credit card | 266 | 7 | 464 | 10 | 759 | 6 | |||||||||||||||||
Direct/Indirect consumer | 456 | 24 | 929 | 50 | 1,582 | 85 | |||||||||||||||||
Other consumer | 28 | 2 | 29 | 2 | 30 | 2 | |||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||
Direct/Indirect consumer | 42 | — | 58 | — | — | — | |||||||||||||||||
Other consumer | 34 | 2 | 35 | 2 | 30 | 2 | |||||||||||||||||
Total | |||||||||||||||||||||||
U.S. credit card | $ | 2,144 | $ | 134 | $ | 4,085 | $ | 253 | $ | 7,211 | $ | 433 | |||||||||||
Non-U.S. credit card | 266 | 7 | 464 | 10 | 759 | 6 | |||||||||||||||||
Direct/Indirect consumer | 498 | 24 | 987 | 50 | 1,582 | 85 | |||||||||||||||||
Other consumer | 62 | 4 | 64 | 4 | 60 | 4 |
(1) | Includes accrued interest and fees. |
(2) | Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible. |
Credit Card and Other Consumer – Renegotiated TDRs by Program Type | |||||||||||||||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||||||||||||||
Internal Programs | External Programs | Other | Total | Percent of Balances Current or Less Than 30 Days Past Due | |||||||||||||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
U.S. credit card | $ | 842 | $ | 1,887 | $ | 607 | $ | 953 | $ | 16 | $ | 31 | $ | 1,465 | $ | 2,871 | 82.77 | % | 81.48 | % | |||||||||||||||||
Non-U.S. credit card | 71 | 99 | 26 | 38 | 143 | 179 | 240 | 316 | 49.01 | 43.71 | |||||||||||||||||||||||||||
Direct/Indirect consumer | 170 | 405 | 106 | 225 | 38 | 64 | 314 | 694 | 84.29 | 83.11 | |||||||||||||||||||||||||||
Other consumer | 60 | 65 | — | — | — | — | 60 | 65 | 71.08 | 72.73 | |||||||||||||||||||||||||||
Total renegotiated TDRs | $ | 1,143 | $ | 2,456 | $ | 739 | $ | 1,216 | $ | 197 | $ | 274 | $ | 2,079 | $ | 3,946 | 78.77 | 78.58 |
194 Bank of America 2013 |
Credit Card and Other Consumer – Renegotiated TDRs Entered into During 2013, 2012 and 2011 | |||||||||||||||||
December 31, 2013 | 2013 | ||||||||||||||||
(Dollars in millions) | Unpaid Principal Balance | Carrying Value (1) | Pre-Modification Interest Rate | Post-Modification Interest Rate | Net Charge-offs | ||||||||||||
U.S. credit card | $ | 299 | $ | 329 | 16.84 | % | 5.84 | % | $ | 30 | |||||||
Non-U.S. credit card | 134 | 147 | 25.90 | 0.95 | 138 | ||||||||||||
Direct/Indirect consumer | 47 | 38 | 11.53 | 4.74 | 15 | ||||||||||||
Other consumer | 8 | 8 | 9.28 | 5.25 | — | ||||||||||||
Total | $ | 488 | $ | 522 | 18.89 | 4.37 | $ | 183 | |||||||||
December 31, 2012 | 2012 | ||||||||||||||||
U.S. credit card | $ | 396 | $ | 400 | 17.59 | % | 6.36 | % | $ | 45 | |||||||
Non-U.S. credit card | 196 | 206 | 26.19 | 1.15 | 190 | ||||||||||||
Direct/Indirect consumer | 160 | 113 | 9.59 | 5.72 | 52 | ||||||||||||
Other consumer | 9 | 9 | 9.97 | 6.44 | — | ||||||||||||
Total | $ | 761 | $ | 728 | 18.68 | 4.79 | $ | 287 | |||||||||
December 31, 2011 | 2011 | ||||||||||||||||
U.S. credit card | $ | 890 | $ | 902 | 19.04 | % | 6.16 | % | $ | 106 | |||||||
Non-U.S. credit card | 305 | 322 | 26.32 | 1.04 | 291 | ||||||||||||
Direct/Indirect consumer | 198 | 199 | 15.63 | 5.22 | 23 | ||||||||||||
Other consumer | 17 | 17 | 10.01 | 6.53 | — | ||||||||||||
Total | $ | 1,410 | $ | 1,440 | 20.09 | 4.89 | $ | 420 |
(1) | Includes accrued interest and fees. |
Credit Card and Other Consumer – Renegotiated TDRs Entered into During the Period by Program Type | |||||||||||||||
2013 | |||||||||||||||
(Dollars in millions) | Internal Programs | External Programs | Other | Total | |||||||||||
U.S. credit card | $ | 192 | $ | 137 | $ | — | $ | 329 | |||||||
Non-U.S. credit card | 73 | 74 | — | 147 | |||||||||||
Direct/Indirect consumer | 15 | 8 | 15 | 38 | |||||||||||
Other consumer | 8 | — | — | 8 | |||||||||||
Total renegotiated TDRs | $ | 288 | $ | 219 | $ | 15 | $ | 522 | |||||||
2012 | |||||||||||||||
U.S. credit card | $ | 248 | $ | 152 | $ | — | $ | 400 | |||||||
Non-U.S. credit card | 112 | 94 | — | 206 | |||||||||||
Direct/Indirect consumer | 36 | 19 | 58 | 113 | |||||||||||
Other consumer | 9 | — | — | 9 | |||||||||||
Total renegotiated TDRs | $ | 405 | $ | 265 | $ | 58 | $ | 728 | |||||||
2011 | |||||||||||||||
U.S. credit card | $ | 492 | $ | 407 | $ | 3 | $ | 902 | |||||||
Non-U.S. credit card | 163 | 158 | 1 | 322 | |||||||||||
Direct/Indirect consumer | 112 | 87 | — | 199 | |||||||||||
Other consumer | 17 | — | — | 17 | |||||||||||
Total renegotiated TDRs | $ | 784 | $ | 652 | $ | 4 | $ | 1,440 |
Bank of America 2013 195 |
196 Bank of America 2013 |
Impaired Loans – Commercial | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
(Dollars in millions) | Unpaid Principal Balance | Carrying Value | Related Allowance | Unpaid Principal Balance | Carrying Value | Related Allowance | |||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||
U.S. commercial | $ | 609 | $ | 577 | $ | — | $ | 571 | $ | 476 | $ | — | |||||||||||
Commercial real estate | 254 | 228 | — | 370 | 316 | — | |||||||||||||||||
Non-U.S. commercial | 10 | 10 | — | 155 | 36 | — | |||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
U.S. commercial | 1,581 | 1,262 | 164 | 2,431 | 1,771 | 159 | |||||||||||||||||
Commercial real estate | 1,066 | 731 | 61 | 2,920 | 1,848 | 201 | |||||||||||||||||
Non-U.S. commercial | 254 | 64 | 16 | 365 | 117 | 18 | |||||||||||||||||
U.S. small business commercial (1) | 186 | 176 | 36 | 361 | 317 | 97 | |||||||||||||||||
Total | |||||||||||||||||||||||
U.S. commercial | $ | 2,190 | $ | 1,839 | $ | 164 | $ | 3,002 | $ | 2,247 | $ | 159 | |||||||||||
Commercial real estate | 1,320 | 959 | 61 | 3,290 | 2,164 | 201 | |||||||||||||||||
Non-U.S. commercial | 264 | 74 | 16 | 520 | 153 | 18 | |||||||||||||||||
U.S. small business commercial (1) | 186 | 176 | 36 | 361 | 317 | 97 | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | ||||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||
U.S. commercial | $ | 442 | $ | 6 | $ | 588 | $ | 9 | $ | 774 | $ | 7 | |||||||||||
Commercial real estate | 269 | 3 | 1,119 | 3 | 1,994 | 7 | |||||||||||||||||
Non-U.S. commercial | 28 | — | 104 | — | 101 | — | |||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
U.S. commercial | 1,553 | 47 | 2,104 | 55 | 2,422 | 13 | |||||||||||||||||
Commercial real estate | 1,148 | 28 | 2,126 | 29 | 3,309 | 19 | |||||||||||||||||
Non-U.S. commercial | 109 | 5 | 77 | 4 | 76 | 3 | |||||||||||||||||
U.S. small business commercial (1) | 236 | 6 | 409 | 13 | 666 | 23 | |||||||||||||||||
Total | |||||||||||||||||||||||
U.S. commercial | $ | 1,995 | $ | 53 | $ | 2,692 | $ | 64 | $ | 3,196 | $ | 20 | |||||||||||
Commercial real estate | 1,417 | 31 | 3,245 | 32 | 5,303 | 26 | |||||||||||||||||
Non-U.S. commercial | 137 | 5 | 181 | 4 | 177 | 3 | |||||||||||||||||
U.S. small business commercial (1) | 236 | 6 | 409 | 13 | 666 | 23 |
(1) | Includes U.S. small business commercial renegotiated TDR loans and related allowance. |
(2) | Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible. |
Bank of America 2013 197 |
Commercial – TDRs Entered into During 2013, 2012 and 2011 | |||||||||||
December 31, 2013 | 2013 | ||||||||||
(Dollars in millions) | Unpaid Principal Balance | Carrying Value | Net Charge-offs | ||||||||
U.S. commercial | $ | 926 | $ | 910 | $ | 33 | |||||
Commercial real estate | 483 | 425 | 3 | ||||||||
Non-U.S. commercial | 61 | 44 | 7 | ||||||||
U.S. small business commercial (1) | 8 | 9 | 1 | ||||||||
Total | $ | 1,478 | $ | 1,388 | $ | 44 | |||||
December 31, 2012 | 2012 | ||||||||||
U.S. commercial | $ | 590 | $ | 558 | $ | 34 | |||||
Commercial real estate | 793 | 721 | 20 | ||||||||
Non-U.S. commercial | 90 | 89 | 1 | ||||||||
U.S. small business commercial (1) | 22 | 22 | 5 | ||||||||
Total | $ | 1,495 | $ | 1,390 | $ | 60 | |||||
December 31, 2011 | 2011 | ||||||||||
U.S. commercial | $ | 1,381 | $ | 1,211 | $ | 74 | |||||
Commercial real estate | 1,604 | 1,333 | 152 | ||||||||
Non-U.S. commercial | 44 | 44 | — | ||||||||
U.S. small business commercial (1) | 58 | 59 | 10 | ||||||||
Total | $ | 3,087 | $ | 2,647 | $ | 236 |
(1) | U.S. small business commercial TDRs are comprised of renegotiated small business card loans. |
Purchased Loans at Acquisition Date | |||
(Dollars in millions) | |||
Contractually required payments including interest | $ | 8,274 | |
Less: Nonaccretable difference | 2,159 | ||
Cash flows expected to be collected (1) | 6,115 | ||
Less: Accretable yield | 1,125 | ||
Fair value of loans acquired | $ | 4,990 |
(1) | Represents undiscounted expected principal and interest cash flows at acquisition. |
Rollforward of Accretable Yield | |||
(Dollars in millions) | |||
Accretable yield, January 1, 2012 | $ | 4,990 | |
Accretion | (1,034 | ) | |
Disposals/transfers | (109 | ) | |
Reclassifications from nonaccretable difference | 797 | ||
Accretable yield, December 31, 2012 | 4,644 | ||
Accretion | (1,194 | ) | |
Loans purchased | 1,125 | ||
Disposals/transfers | (361 | ) | |
Reclassifications from nonaccretable difference | 2,480 | ||
Accretable yield, December 31, 2013 | $ | 6,694 |
198 Bank of America 2013 |
2013 | |||||||||||||||
(Dollars in millions) | Home Loans | Credit Card and Other Consumer | Commercial | Total Allowance | |||||||||||
Allowance for loan and lease losses, January 1 | $ | 14,933 | $ | 6,140 | $ | 3,106 | $ | 24,179 | |||||||
Loans and leases charged off | (3,766 | ) | (5,495 | ) | (1,108 | ) | (10,369 | ) | |||||||
Recoveries of loans and leases previously charged off | 879 | 1,141 | 452 | 2,472 | |||||||||||
Net charge-offs | (2,887 | ) | (4,354 | ) | (656 | ) | (7,897 | ) | |||||||
Write-offs of PCI loans | (2,336 | ) | — | — | (2,336 | ) | |||||||||
Provision for loan and lease losses | (1,124 | ) | 3,139 | 1,559 | 3,574 | ||||||||||
Other | (68 | ) | (20 | ) | (4 | ) | (92 | ) | |||||||
Allowance for loan and lease losses, December 31 | 8,518 | 4,905 | 4,005 | 17,428 | |||||||||||
Reserve for unfunded lending commitments, January 1 | — | — | 513 | 513 | |||||||||||
Provision for unfunded lending commitments | — | — | (18 | ) | (18 | ) | |||||||||
Other | — | — | (11 | ) | (11 | ) | |||||||||
Reserve for unfunded lending commitments, December 31 | — | — | 484 | 484 | |||||||||||
Allowance for credit losses, December 31 | $ | 8,518 | $ | 4,905 | $ | 4,489 | $ | 17,912 |
2012 | |||||||||||||||
Allowance for loan and lease losses, January 1 | $ | 21,079 | $ | 8,569 | $ | 4,135 | $ | 33,783 | |||||||
Loans and leases charged off | (7,849 | ) | (7,727 | ) | (2,096 | ) | (17,672 | ) | |||||||
Recoveries of loans and leases previously charged off | 496 | 1,519 | 749 | 2,764 | |||||||||||
Net charge-offs | (7,353 | ) | (6,208 | ) | (1,347 | ) | (14,908 | ) | |||||||
Write-offs of PCI loans | (2,820 | ) | — | — | (2,820 | ) | |||||||||
Provision for loan and lease losses | 4,073 | 3,899 | 338 | 8,310 | |||||||||||
Other | (46 | ) | (120 | ) | (20 | ) | (186 | ) | |||||||
Allowance for loan and lease losses, December 31 | 14,933 | 6,140 | 3,106 | 24,179 | |||||||||||
Reserve for unfunded lending commitments, January 1 | — | — | 714 | 714 | |||||||||||
Provision for unfunded lending commitments | — | — | (141 | ) | (141 | ) | |||||||||
Other | — | — | (60 | ) | (60 | ) | |||||||||
Reserve for unfunded lending commitments, December 31 | — | — | 513 | 513 | |||||||||||
Allowance for credit losses, December 31 | $ | 14,933 | $ | 6,140 | $ | 3,619 | $ | 24,692 |
2011 | |||||||||||||||
Allowance for loan and lease losses, January 1 | $ | 19,252 | $ | 15,463 | $ | 7,170 | $ | 41,885 | |||||||
Loans and leases charged off | (9,291 | ) | (12,247 | ) | (3,204 | ) | (24,742 | ) | |||||||
Recoveries of loans and leases previously charged off | 894 | 2,124 | 891 | 3,909 | |||||||||||
Net charge-offs | (8,397 | ) | (10,123 | ) | (2,313 | ) | (20,833 | ) | |||||||
Provision for loan and lease losses | 10,300 | 4,025 | (696 | ) | 13,629 | ||||||||||
Other | (76 | ) | (796 | ) | (26 | ) | (898 | ) | |||||||
Allowance for loan and lease losses, December 31 | 21,079 | 8,569 | 4,135 | 33,783 | |||||||||||
Reserve for unfunded lending commitments, January 1 | — | — | 1,188 | 1,188 | |||||||||||
Provision for unfunded lending commitments | — | — | (219 | ) | (219 | ) | |||||||||
Other | — | — | (255 | ) | (255 | ) | |||||||||
Reserve for unfunded lending commitments, December 31 | — | — | 714 | 714 | |||||||||||
Allowance for credit losses, December 31 | $ | 21,079 | $ | 8,569 | $ | 4,849 | $ | 34,497 |
Bank of America 2013 199 |
Allowance and Carrying Value by Portfolio Segment | |||||||||||||||
December 31, 2013 | |||||||||||||||
(Dollars in millions) | Home Loans | Credit Card and Other Consumer | Commercial | Total | |||||||||||
Impaired loans and troubled debt restructurings (1) | |||||||||||||||
Allowance for loan and lease losses (2) | $ | 1,231 | $ | 579 | $ | 277 | $ | 2,087 | |||||||
Carrying value (3) | 31,458 | 2,079 | 3,048 | 36,585 | |||||||||||
Allowance as a percentage of carrying value | 3.91 | % | 27.85 | % | 9.09 | % | 5.70 | % | |||||||
Loans collectively evaluated for impairment | |||||||||||||||
Allowance for loan and lease losses | $ | 4,794 | $ | 4,326 | $ | 3,728 | $ | 12,848 | |||||||
Carrying value (3, 4) | 285,015 | 185,969 | 385,357 | 856,341 | |||||||||||
Allowance as a percentage of carrying value (4) | 1.68 | % | 2.33 | % | 0.97 | % | 1.50 | % | |||||||
Purchased credit-impaired loans | |||||||||||||||
Valuation allowance | $ | 2,493 | n/a | n/a | $ | 2,493 | |||||||||
Carrying value gross of valuation allowance | 25,265 | n/a | n/a | 25,265 | |||||||||||
Valuation allowance as a percentage of carrying value | 9.87 | % | n/a | n/a | 9.87 | % | |||||||||
Total | |||||||||||||||
Allowance for loan and lease losses | $ | 8,518 | $ | 4,905 | $ | 4,005 | $ | 17,428 | |||||||
Carrying value (3, 4) | 341,738 | 188,048 | 388,405 | 918,191 | |||||||||||
Allowance as a percentage of carrying value (4) | 2.49 | % | 2.61 | % | 1.03 | % | 1.90 | % |
December 31, 2012 | |||||||||||||||
Impaired loans and troubled debt restructurings (1) | |||||||||||||||
Allowance for loan and lease losses (2) | $ | 1,700 | $ | 1,139 | $ | 475 | $ | 3,314 | |||||||
Carrying value (3) | 30,250 | 3,946 | 4,881 | 39,077 | |||||||||||
Allowance as a percentage of carrying value | 5.62 | % | 28.86 | % | 9.73 | % | 8.48 | % | |||||||
Loans collectively evaluated for impairment | |||||||||||||||
Allowance for loan and lease losses | $ | 7,697 | $ | 5,001 | $ | 2,631 | $ | 15,329 | |||||||
Carrying value (3, 4) | 304,701 | 187,419 | 341,502 | 833,622 | |||||||||||
Allowance as a percentage of carrying value (4) | 2.53 | % | 2.67 | % | 0.77 | % | 1.84 | % | |||||||
Purchased credit-impaired loans | |||||||||||||||
Valuation allowance | $ | 5,536 | n/a | n/a | $ | 5,536 | |||||||||
Carrying value gross of valuation allowance | 26,118 | n/a | n/a | 26,118 | |||||||||||
Valuation allowance as a percentage of carrying value | 21.20 | % | n/a | n/a | 21.20 | % | |||||||||
Total | |||||||||||||||
Allowance for loan and lease losses | $ | 14,933 | $ | 6,140 | $ | 3,106 | $ | 24,179 | |||||||
Carrying value (3, 4) | 361,069 | 191,365 | 346,383 | 898,817 | |||||||||||
Allowance as a percentage of carrying value (4) | 4.14 | % | 3.21 | % | 0.90 | % | 2.69 | % |
(1) | Impaired loans include nonperforming commercial loans and all TDRs, including both commercial and consumer TDRs. Impaired loans exclude nonperforming consumer loans unless they are TDRs, and all consumer and commercial loans accounted for under the fair value option. |
(2) | Allowance for loan and lease losses includes $36 million and $97 million related to impaired U.S. small business commercial loans at December 31, 2013 and 2012. |
(3) | Amounts are presented gross of the allowance for loan and lease losses. |
(4) | Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option of $10.0 billion and $9.0 billion at December 31, 2013 and 2012. |
200 Bank of America 2013 |
First-lien Mortgage Securitizations | |||||||||||||
Residential Mortgage - Agency | Commercial Mortgage | ||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||
Cash proceeds from new securitizations (1) | $ | 49,888 | $ | 39,526 | $ | 5,326 | $ | 2,664 | |||||
Gain (loss) on securitizations (2) | 81 | (212 | ) | 119 | 65 |
(1) | The Corporation sells residential mortgage loans to GSEs in the normal course of business and receives MBS in exchange which may then be sold into the market to third-party investors for cash proceeds. |
(2) | Substantially all of the first-lien residential and commercial mortgage loans securitized are initially classified as LHFS and accounted for under the fair value option. As such, gains are recognized on these LHFS prior to securitization. The Corporation recognized $2.0 billion of gains, net of hedges, on loans securitized during both 2013 and 2012. |
Bank of America 2013 201 |
First-lien Mortgage VIEs | ||||||||||||||||||||||||||||||||||
Residential Mortgage | ||||||||||||||||||||||||||||||||||
Non-agency | ||||||||||||||||||||||||||||||||||
Agency | Prime | Subprime | Alt-A | Commercial Mortgage | ||||||||||||||||||||||||||||||
December 31 | December 31 | December 31 | ||||||||||||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Unconsolidated VIEs | ||||||||||||||||||||||||||||||||||
Maximum loss exposure (1) | $ | 21,140 | $ | 28,591 | $ | 1,527 | $ | 2,038 | $ | 406 | $ | 410 | $ | 437 | $ | 367 | $ | 432 | $ | 702 | ||||||||||||||
On-balance sheet assets | ||||||||||||||||||||||||||||||||||
Senior securities held (2): | ||||||||||||||||||||||||||||||||||
Trading account assets | $ | 650 | $ | 619 | $ | — | $ | 16 | $ | 1 | $ | 14 | $ | 3 | $ | — | $ | 14 | $ | 12 | ||||||||||||||
Debt securities carried at fair value | 19,451 | 26,421 | 988 | 1,388 | 220 | 210 | 109 | 128 | 306 | 581 | ||||||||||||||||||||||||
Subordinate securities held (2): | ||||||||||||||||||||||||||||||||||
Trading account assets | — | — | — | — | 8 | 3 | — | — | 13 | 13 | ||||||||||||||||||||||||
Debt securities carried at fair value | — | — | 15 | 21 | 6 | 9 | — | — | 53 | — | ||||||||||||||||||||||||
Residual interests held | — | — | 13 | 18 | — | 9 | — | — | 16 | 40 | ||||||||||||||||||||||||
All other assets (3) | 1,039 | 1,551 | 71 | 64 | 1 | 1 | 325 | 239 | — | — | ||||||||||||||||||||||||
Total retained positions | $ | 21,140 | $ | 28,591 | $ | 1,087 | $ | 1,507 | $ | 236 | $ | 246 | $ | 437 | $ | 367 | $ | 402 | $ | 646 | ||||||||||||||
Principal balance outstanding (4) | $ | 437,765 | $ | 780,202 | $ | 25,104 | $ | 47,348 | $ | 36,854 | $ | 63,813 | $ | 56,454 | $ | 80,860 | $ | 19,730 | $ | 56,733 | ||||||||||||||
Consolidated VIEs | ||||||||||||||||||||||||||||||||||
Maximum loss exposure (1) | $ | 42,420 | $ | 46,959 | $ | 79 | $ | 104 | $ | 368 | $ | 390 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
On-balance sheet assets | ||||||||||||||||||||||||||||||||||
Trading account assets | $ | 1,640 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Loans and leases | 40,316 | 45,991 | 140 | 283 | 803 | 722 | — | — | — | — | ||||||||||||||||||||||||
Allowance for loan and lease losses | (3 | ) | (4 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Loans held-for-sale | — | — | — | — | — | 914 | — | — | — | — | ||||||||||||||||||||||||
All other assets | 474 | 972 | — | 10 | 7 | 91 | — | — | — | — | ||||||||||||||||||||||||
Total assets | $ | 42,427 | $ | 46,959 | $ | 140 | $ | 293 | $ | 810 | $ | 1,727 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
On-balance sheet liabilities | ||||||||||||||||||||||||||||||||||
Short-term borrowings | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 741 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Long-term debt | 7 | — | 61 | 212 | 803 | 941 | — | — | — | — | ||||||||||||||||||||||||
All other liabilities | — | — | — | — | 7 | — | — | — | — | — | ||||||||||||||||||||||||
Total liabilities | $ | 7 | $ | — | $ | 61 | $ | 212 | $ | 810 | $ | 1,682 | $ | — | $ | — | $ | — | $ | — |
(1) | Maximum loss exposure excludes the liability for representations and warranties obligations and corporate guarantees and also excludes servicing advances and MSRs. For additional information, see Note 7 – Representations and Warranties Obligations and Corporate Guarantees and Note 23 – Mortgage Servicing Rights. |
(2) | As a holder of these securities, the Corporation receives scheduled principal and interest payments. During 2013 and 2012, there were no OTTI losses recorded on those securities classified as AFS debt securities. |
(3) | Not included in the table above are all other assets of $1.6 billion and $12.1 billion, representing the unpaid principal balance of mortgage loans eligible for repurchase from unconsolidated residential mortgage securitization vehicles, principally guaranteed by GNMA, and all other liabilities of $1.6 billion and $12.1 billion, representing the principal amount that would be payable to the securitization vehicles if the Corporation were to exercise the repurchase option, at December 31, 2013 and 2012. |
(4) | Principal balance outstanding includes loans the Corporation transferred with which the Corporation has continuing involvement, which may include servicing the loans. |
202 Bank of America 2013 |
Home Equity Loan VIEs | |||||||||||||||||||||||
December 31 | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(Dollars in millions) | Consolidated VIEs | Unconsolidated VIEs | Total | Consolidated VIEs | Unconsolidated VIEs | Total | |||||||||||||||||
Maximum loss exposure (1) | $ | 1,269 | $ | 6,217 | $ | 7,486 | $ | 2,004 | $ | 6,707 | $ | 8,711 | |||||||||||
On-balance sheet assets | |||||||||||||||||||||||
Trading account assets | $ | — | $ | 12 | $ | 12 | $ | — | $ | 8 | $ | 8 | |||||||||||
Debt securities carried at fair value | — | 25 | 25 | — | 14 | 14 | |||||||||||||||||
Loans and leases | 1,329 | — | 1,329 | 2,197 | — | 2,197 | |||||||||||||||||
Allowance for loan and lease losses | (80 | ) | — | (80 | ) | (193 | ) | — | (193 | ) | |||||||||||||
All other assets | 20 | — | 20 | — | — | — | |||||||||||||||||
Total | $ | 1,269 | $ | 37 | $ | 1,306 | $ | 2,004 | $ | 22 | $ | 2,026 | |||||||||||
On-balance sheet liabilities | |||||||||||||||||||||||
Long-term debt | $ | 1,450 | $ | — | $ | 1,450 | $ | 2,331 | $ | — | $ | 2,331 | |||||||||||
All other liabilities | 90 | — | 90 | 92 | — | 92 | |||||||||||||||||
Total | $ | 1,540 | $ | — | $ | 1,540 | $ | 2,423 | $ | — | $ | 2,423 | |||||||||||
Principal balance outstanding | $ | 1,329 | $ | 7,542 | $ | 8,871 | $ | 2,197 | $ | 12,644 | $ | 14,841 |
(1) | For unconsolidated VIEs, the maximum loss exposure includes outstanding trust certificates issued by trusts in rapid amortization, net of recorded reserves, and excludes the liability for representations and warranties obligations and corporate guarantees. |
Bank of America 2013 203 |
Credit Card VIEs | |||||||
December 31 | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Consolidated VIEs | |||||||
Maximum loss exposure | $ | 49,621 | $ | 42,487 | |||
On-balance sheet assets | |||||||
Derivative assets | $ | 182 | $ | 323 | |||
Loans and leases (1) | 61,241 | 66,427 | |||||
Allowance for loan and lease losses | (2,585 | ) | (3,445 | ) | |||
Loans held-for-sale | 386 | — | |||||
All other assets (2) | 2,281 | 1,567 | |||||
Total | $ | 61,505 | $ | 64,872 | |||
On-balance sheet liabilities | |||||||
Long-term debt | $ | 11,822 | $ | 22,291 | |||
All other liabilities | 62 | 94 | |||||
Total | $ | 11,884 | $ | 22,385 |
(1) | At December 31, 2013 and 2012, loans and leases included $41.2 billion and $33.5 billion of seller’s interest and $14 million and $124 million of discount receivables. |
(2) | At December 31, 2013 and 2012, all other assets included restricted cash and short-term investment accounts and unbilled accrued interest and fees. |
204 Bank of America 2013 |
Other Asset-backed VIEs | |||||||||||||||||||||||
Resecuritization Trusts | Municipal Bond Trusts | Automobile and Other Securitization Trusts | |||||||||||||||||||||
December 31 | December 31 | December 31 | |||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Unconsolidated VIEs | |||||||||||||||||||||||
Maximum loss exposure | $ | 11,913 | $ | 20,715 | $ | 2,192 | $ | 3,341 | $ | 81 | $ | 122 | |||||||||||
On-balance sheet assets | |||||||||||||||||||||||
Senior securities held (1, 2): | |||||||||||||||||||||||
Trading account assets | $ | 971 | $ | 1,281 | $ | 53 | $ | 12 | $ | 1 | $ | 37 | |||||||||||
Debt securities carried at fair value | 10,866 | 19,343 | — | 540 | 70 | 74 | |||||||||||||||||
Subordinate securities held (1, 2): | |||||||||||||||||||||||
Debt securities carried at fair value | 71 | 75 | — | — | — | — | |||||||||||||||||
Residual interests held (3) | 5 | 16 | — | — | — | — | |||||||||||||||||
All other assets | — | — | — | — | 10 | 11 | |||||||||||||||||
Total retained positions | $ | 11,913 | $ | 20,715 | $ | 53 | $ | 552 | $ | 81 | $ | 122 | |||||||||||
Total assets of VIEs (4) | $ | 40,924 | $ | 42,818 | $ | 3,643 | $ | 4,980 | $ | 1,788 | $ | 1,890 | |||||||||||
Consolidated VIEs | |||||||||||||||||||||||
Maximum loss exposure | $ | 164 | $ | 126 | $ | 2,667 | $ | 2,505 | $ | 94 | $ | 1,255 | |||||||||||
On-balance sheet assets | |||||||||||||||||||||||
Trading account assets | $ | 319 | $ | 220 | $ | 2,684 | $ | 2,505 | $ | — | $ | — | |||||||||||
Loans and leases | — | — | — | — | 680 | 2,523 | |||||||||||||||||
Allowance for loan and lease losses | — | — | — | — | — | (2 | ) | ||||||||||||||||
All other assets | — | — | — | — | 61 | 250 | |||||||||||||||||
Total assets | $ | 319 | $ | 220 | $ | 2,684 | $ | 2,505 | $ | 741 | $ | 2,771 | |||||||||||
On-balance sheet liabilities | |||||||||||||||||||||||
Short-term borrowings | $ | — | $ | — | $ | 1,073 | $ | 2,859 | $ | — | $ | — | |||||||||||
Long-term debt | 155 | 94 | 17 | — | 646 | 1,513 | |||||||||||||||||
All other liabilities | — | — | — | — | 1 | 82 | |||||||||||||||||
Total liabilities | $ | 155 | $ | 94 | $ | 1,090 | $ | 2,859 | $ | 647 | $ | 1,595 |
(1) | As a holder of these securities, the Corporation receives scheduled principal and interest payments. During 2013 and 2012, there were no OTTI losses recorded on those securities classified as AFS debt securities. |
(2) | The retained senior and subordinate securities were valued using quoted market prices or observable market inputs (Level 2 of the fair value hierarchy). |
(3) | The retained residual interests are carried at fair value which was derived using model valuations (Level 2 of the fair value hierarchy). |
(4) | Total assets include loans the Corporation transferred with which the Corporation has continuing involvement, which may include servicing the loan. |
Bank of America 2013 205 |
Other VIEs | |||||||||||||||||||||||
December 31 | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(Dollars in millions) | Consolidated | Unconsolidated | Total | Consolidated | Unconsolidated | Total | |||||||||||||||||
Maximum loss exposure | $ | 9,716 | $ | 12,523 | $ | 22,239 | $ | 10,803 | $ | 9,269 | $ | 20,072 | |||||||||||
On-balance sheet assets | |||||||||||||||||||||||
Trading account assets | $ | 3,769 | $ | 1,420 | $ | 5,189 | $ | 5,181 | $ | 356 | $ | 5,537 | |||||||||||
Derivative assets | 3 | 739 | 742 | 10 | 1,277 | 1,287 | |||||||||||||||||
Debt securities carried at fair value | — | 1,944 | 1,944 | — | 39 | 39 | |||||||||||||||||
Loans and leases | 4,609 | 270 | 4,879 | 5,084 | 67 | 5,151 | |||||||||||||||||
Allowance for loan and lease losses | (6 | ) | — | (6 | ) | (14 | ) | — | (14 | ) | |||||||||||||
Loans held-for-sale | 998 | 85 | 1,083 | 1,055 | 157 | 1,212 | |||||||||||||||||
All other assets | 1,734 | 6,167 | 7,901 | 1,764 | 5,844 | 7,608 | |||||||||||||||||
Total | $ | 11,107 | $ | 10,625 | $ | 21,732 | $ | 13,080 | $ | 7,740 | $ | 20,820 | |||||||||||
On-balance sheet liabilities | |||||||||||||||||||||||
Short-term borrowings | $ | 77 | $ | — | $ | 77 | $ | 131 | $ | — | $ | 131 | |||||||||||
Long-term debt (1) | 4,487 | — | 4,487 | 6,874 | — | 6,874 | |||||||||||||||||
All other liabilities | 93 | 2,538 | 2,631 | 92 | 2,092 | 2,184 | |||||||||||||||||
Total | $ | 4,657 | $ | 2,538 | $ | 7,195 | $ | 7,097 | $ | 2,092 | $ | 9,189 | |||||||||||
Total assets of VIEs | $ | 11,107 | $ | 38,505 | $ | 49,612 | $ | 13,080 | $ | 39,700 | $ | 52,780 |
(1) | Includes $1.3 billion, $1.2 billion and $780 million of long-term debt at December 31, 2013 and $2.8 billion, $1.2 billion and $780 million of long-term debt at December 31, 2012 issued by consolidated CDO vehicles, customer vehicles and investment vehicles, respectively, which has recourse to the general credit of the Corporation. |
206 Bank of America 2013 |
Bank of America 2013 207 |
208 Bank of America 2013 |
Bank of America 2013 209 |
Unresolved Repurchase Claims by Counterparty and Product Type (1, 2) | |||||||
December 31 | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
By counterparty | |||||||
Private-label securitization trustees, whole-loan investors, including third-party securitization sponsors and other (3) | $ | 17,953 | $ | 12,222 | |||
Monolines | 1,532 | 2,442 | |||||
GSEs | 170 | 13,437 | |||||
Total unresolved repurchase claims by counterparty (3) | $ | 19,655 | $ | 28,101 | |||
By product type | |||||||
Prime loans | $ | 623 | $ | 8,724 | |||
Alt-A | 1,536 | 5,422 | |||||
Home equity | 1,889 | 2,390 | |||||
Pay option | 5,776 | 5,877 | |||||
Subprime | 7,502 | 4,227 | |||||
Other | 2,329 | 1,461 | |||||
Total unresolved repurchase claims by product type (3) | $ | 19,655 | $ | 28,101 |
(1) | The total notional amount of unresolved repurchase claims does not include any repurchase claims related to the trusts covered by the BNY Mellon Settlement. |
(2) | At December 31, 2013 and 2012, unresolved repurchase claims did not include repurchase demands of $1.2 billion and $1.6 billion where the Corporation believes the claimants have not satisfied the contractual thresholds as noted on page 210. |
(3) | Includes $13.8 billion and $11.7 billion of claims based on individual file reviews and $4.1 billion and $519 million of claims submitted without individual file reviews at December 31, 2013 and 2012. |
210 Bank of America 2013 |
Bank of America 2013 211 |
Representations and Warranties and Corporate Guarantees | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Liability for representations and warranties and corporate guarantees, January 1 | $ | 19,021 | $ | 15,858 | |||
Additions for new sales | 36 | 28 | |||||
Net reductions | (6,615 | ) | (804 | ) | |||
Provision | 840 | 3,939 | |||||
Liability for representations and warranties and corporate guarantees, December 31 | $ | 13,282 | $ | 19,021 |
212 Bank of America 2013 |
Bank of America 2013 213 |
214 Bank of America 2013 |
Loan Repurchases and Indemnification Payments | |||||||||||||||||||||||
December 31 | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(Dollars in millions) | Unpaid Principal Balance | Cash Paid for Repurchases | Loss | Unpaid Principal Balance | Cash Paid for Repurchases | Loss | |||||||||||||||||
First-lien | |||||||||||||||||||||||
Repurchases | $ | 746 | $ | 784 | $ | 149 | $ | 1,184 | $ | 1,273 | $ | 389 | |||||||||||
Indemnification payments | 661 | 383 | 383 | 831 | 425 | 425 | |||||||||||||||||
Total first-lien | 1,407 | 1,167 | 532 | 2,015 | 1,698 | 814 | |||||||||||||||||
Home equity | |||||||||||||||||||||||
Repurchases | — | — | — | 24 | 24 | — | |||||||||||||||||
Indemnification payments | 74 | 77 | 77 | 36 | 33 | 33 | |||||||||||||||||
Total home equity | 74 | 77 | 77 | 60 | 57 | 33 | |||||||||||||||||
Total first-lien and home equity | $ | 1,481 | $ | 1,244 | $ | 609 | $ | 2,075 | $ | 1,755 | $ | 847 |
Bank of America 2013 215 |
Goodwill | |||||||
December 31 | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Consumer & Business Banking | $ | 31,681 | $ | 31,681 | |||
Global Wealth & Investment Management | 9,698 | 9,698 | |||||
Global Banking | 22,377 | 22,377 | |||||
Global Markets | 5,197 | 5,181 | |||||
All Other | 891 | 1,039 | |||||
Total goodwill | $ | 69,844 | $ | 69,976 |
Intangible Assets (1) | |||||||||||||||||||||||
December 31 | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(Dollars in millions) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||||||||||
Purchased credit card relationships | $ | 6,160 | $ | 4,849 | $ | 1,311 | $ | 6,184 | $ | 4,494 | $ | 1,690 | |||||||||||
Core deposit intangibles | 3,592 | 3,055 | 537 | 3,592 | 2,858 | 734 | |||||||||||||||||
Customer relationships | 4,025 | 2,281 | 1,744 | 4,025 | 1,884 | 2,141 | |||||||||||||||||
Affinity relationships | 1,575 | 1,197 | 378 | 1,572 | 1,087 | 485 | |||||||||||||||||
Other intangibles | 2,045 | 441 | 1,604 | 2,139 | 505 | 1,634 | |||||||||||||||||
Total intangible assets | $ | 17,397 | $ | 11,823 | $ | 5,574 | $ | 17,512 | $ | 10,828 | $ | 6,684 |
(1) | Excludes fully amortized intangible assets. |
216 Bank of America 2013 |
Time Deposits of $100 Thousand or More | |||||||||||||||
(Dollars in millions) | Three Months or Less | Over Three Months to Twelve Months | Thereafter | Total | |||||||||||
U.S. certificates of deposit and other time deposits | $ | 16,246 | $ | 17,943 | $ | 4,155 | $ | 38,344 | |||||||
Non-U.S. certificates of deposit and other time deposits | 23,726 | 1,983 | 481 | 26,190 |
Contractual Maturities of Total Time Deposits | |||||||||||
(Dollars in millions) | U.S. | Non-U.S. | Total | ||||||||
Due in 2014 | $ | 71,895 | $ | 26,306 | $ | 98,201 | |||||
Due in 2015 | 6,523 | 227 | 6,750 | ||||||||
Due in 2016 | 1,719 | 315 | 2,034 | ||||||||
Due in 2017 | 1,308 | 14 | 1,322 | ||||||||
Due in 2018 | 649 | 1 | 650 | ||||||||
Thereafter | 2,274 | 4 | 2,278 | ||||||||
Total time deposits | $ | 84,368 | $ | 26,867 | $ | 111,235 |
2013 | 2012 | 2011 | ||||||||||||||||||
(Dollars in millions) | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||
Federal funds sold | ||||||||||||||||||||
At December 31 | $ | — | — | % | $ | 600 | 0.54 | % | $ | 100 | 0.71 | % | ||||||||
Average during year | 7 | 0.69 | 351 | 0.43 | 273 | 0.39 | ||||||||||||||
Maximum month-end balance during year | 550 | n/a | 600 | n/a | 782 | n/a | ||||||||||||||
Securities borrowed or purchased under agreements to resell | ||||||||||||||||||||
At December 31 | 190,328 | 0.60 | 219,324 | 0.92 | 211,083 | 0.76 | ||||||||||||||
Average during year | 224,324 | 0.55 | 235,691 | 0.64 | 244,796 | 0.88 | ||||||||||||||
Maximum month-end balance during year | 249,791 | n/a | 252,985 | n/a | 270,201 | n/a | ||||||||||||||
Federal funds purchased | ||||||||||||||||||||
At December 31 | 186 | — | 1,151 | 0.17 | 243 | 0.06 | ||||||||||||||
Average during year | 192 | 0.06 | 384 | 0.11 | 1,658 | 0.08 | ||||||||||||||
Maximum month-end balance during year | 1,272 | n/a | 1,211 | n/a | 4,133 | n/a | ||||||||||||||
Securities loaned or sold under agreements to repurchase | ||||||||||||||||||||
At December 31 | 197,920 | 0.92 | 292,108 | 1.11 | 214,621 | 1.08 | ||||||||||||||
Average during year | 257,409 | 0.81 | 281,516 | 0.98 | 270,718 | 1.31 | ||||||||||||||
Maximum month-end balance during year | 319,608 | n/a | 319,401 | n/a | 293,519 | n/a | ||||||||||||||
Short-term borrowings | ||||||||||||||||||||
At December 31 | 45,999 | 1.55 | 30,731 | 3.08 | 35,698 | 2.36 | ||||||||||||||
Average during year | 43,816 | 1.89 | 36,500 | 2.22 | 51,893 | 2.00 | ||||||||||||||
Maximum month-end balance during year | 48,387 | n/a | 40,129 | n/a | 62,621 | n/a |
Bank of America 2013 217 |
Securities Financing Agreements | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||
(Dollars in millions) | Gross Assets/Liabilities | Amounts Offset | Net Balance Sheet Amount | Financial Instruments | Net Assets/Liabilities | ||||||||||||||
Securities borrowed or purchased under agreements to resell | $ | 272,296 | $ | (81,968 | ) | $ | 190,328 | $ | (157,132 | ) | $ | 33,196 | |||||||
Securities loaned or sold under agreements to repurchase | $ | 279,888 | $ | (81,968 | ) | $ | 197,920 | $ | (160,111 | ) | $ | 37,809 | |||||||
Other | 10,871 | — | 10,871 | (10,871 | ) | — | |||||||||||||
Total | $ | 290,759 | $ | (81,968 | ) | $ | 208,791 | $ | (170,982 | ) | $ | 37,809 | |||||||
December 31, 2012 | |||||||||||||||||||
Securities borrowed or purchased under agreements to resell | $ | 366,238 | $ | (146,914 | ) | $ | 219,324 | $ | (173,593 | ) | $ | 45,731 | |||||||
Securities loaned or sold under agreements to repurchase | $ | 439,022 | $ | (146,914 | ) | $ | 292,108 | $ | (217,817 | ) | $ | 74,291 | |||||||
Other | 12,306 | — | 12,306 | (12,302 | ) | 4 | |||||||||||||
Total | $ | 451,328 | $ | (146,914 | ) | $ | 304,414 | $ | (230,119 | ) | $ | 74,295 |
218 Bank of America 2013 |
December 31 | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Notes issued by Bank of America Corporation (1) | |||||||
Senior notes: | |||||||
Fixed, with a weighted-average rate of 4.99%, ranging from 1.25% to 8.83%, due 2014 to 2042 | $ | 109,845 | $ | 114,493 | |||
Floating, with a weighted-average rate of 0.99%, ranging from 0.05% to 4.99%, due 2014 to 2044 | 22,268 | 24,698 | |||||
Senior structured notes | 30,575 | 33,962 | |||||
Subordinated notes: | |||||||
Fixed, with a weighted-average rate of 5.83%, ranging from 2.40% to 10.20%, due 2014 to 2038 | 22,379 | 24,118 | |||||
Floating, with a weighted-average rate of 1.13%, ranging from 0.57% to 2.97%, due 2016 to 2026 | 1,798 | 1,767 | |||||
Junior subordinated notes (related to trust preferred securities): | |||||||
Fixed, with a weighted-average rate of 6.84%, ranging from 5.25% to 8.05%, due 2027 to perpetual | 6,685 | 6,655 | |||||
Floating, with a weighted-average rate of 0.92%, ranging from 0.79% to 1.24%, due 2027 to 2056 | 553 | 567 | |||||
Total notes issued by Bank of America Corporation | 194,103 | 206,260 | |||||
Notes issued by Bank of America, N.A. | |||||||
Senior notes: | |||||||
Fixed, with a weighted-average rate of 2.97%, ranging from 0.07% to 7.72%, due 2014 to 2187 | 1,670 | 181 | |||||
Floating, with a weighted-average rate of 0.70%, ranging from 0.35% to 0.75%, due 2016 to 2041 | 3,684 | 2,686 | |||||
Subordinated notes: | |||||||
Fixed, with a weighted-average rate of 5.68%, ranging from 5.30% to 6.10%, due 2016 to 2036 | 4,876 | 5,230 | |||||
Floating, with a weighted-average rate of 0.53%, ranging from 0.25% to 0.54%, due 2016 to 2019 | 1,401 | 1,401 | |||||
Advances from Federal Home Loan Banks: | |||||||
Fixed, with a weighted-average rate of 4.91%, ranging from 0.01% to 7.72%, due 2014 to 2034 | 1,441 | 6,225 | |||||
Floating, with a weighted-average rate of 0.28%, ranging from 0.27% to 0.29%, due 2015 to 2016 | 3,001 | — | |||||
Total notes issued by Bank of America, N.A. | 16,073 | 15,723 | |||||
Other debt | |||||||
Senior notes: | |||||||
Fixed, with a weighted-average rate of 5.01%, ranging from 4.00% to 5.50%, due 2014 to 2021 | 194 | 262 | |||||
Floating, with a weighted-average rate of 2.55%, ranging from 1.93% to 2.71%, due 2014 to 2015 | 115 | 705 | |||||
Structured liabilities | 16,913 | 16,127 | |||||
Junior subordinated notes (related to trust preferred securities): | |||||||
Fixed, with a weighted-average rate of 7.14%, ranging from 7.00% to 7.28%, perpetual | 340 | 340 | |||||
Floating, with a weighted-average rate of 0.87%, due 2027 | 66 | 979 | |||||
Other | 2,422 | 933 | |||||
Total other debt | 20,050 | 19,346 | |||||
Total long-term debt excluding consolidated VIEs | 230,226 | 241,329 | |||||
Long-term debt of consolidated VIEs | 19,448 | 34,256 | |||||
Total long-term debt | $ | 249,674 | $ | 275,585 |
(1) | On October 1, 2013, the merger of Merrill Lynch & Co., Inc. into Bank of America Corporation was completed. Effective with this merger, Bank of America Corporation assumed outstanding Merrill Lynch & Co., Inc. debt including trust preferred securities. |
Bank of America 2013 219 |
Long-term Debt by Maturity | |||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||
Bank of America Corporation (1) | |||||||||||||||||||||||||||
Senior notes | $ | 24,820 | $ | 15,365 | $ | 18,164 | $ | 18,273 | $ | 20,311 | $ | 35,180 | $ | 132,113 | |||||||||||||
Senior structured notes | 6,360 | 5,561 | 3,429 | 1,421 | 1,989 | 11,815 | 30,575 | ||||||||||||||||||||
Subordinated notes | 4 | 1,263 | 5,247 | 5,676 | 3,312 | 8,675 | 24,177 | ||||||||||||||||||||
Junior subordinated notes | — | — | — | — | — | 7,238 | 7,238 | ||||||||||||||||||||
Total Bank of America Corporation | 31,184 | 22,189 | 26,840 | 25,370 | 25,612 | 62,908 | 194,103 | ||||||||||||||||||||
Bank of America, N.A. | |||||||||||||||||||||||||||
Senior notes | 19 | — | 2,492 | 2,664 | — | 179 | 5,354 | ||||||||||||||||||||
Subordinated notes | — | — | 1,082 | 3,664 | — | 1,531 | 6,277 | ||||||||||||||||||||
Advances from Federal Home Loan Banks | 1,263 | 1,503 | 1,504 | 11 | 11 | 150 | 4,442 | ||||||||||||||||||||
Total Bank of America, N.A. | 1,282 | 1,503 | 5,078 | 6,339 | 11 | 1,860 | 16,073 | ||||||||||||||||||||
Other debt | |||||||||||||||||||||||||||
Senior notes | 284 | 24 | — | 1 | — | — | 309 | ||||||||||||||||||||
Structured liabilities | 3,614 | 2,049 | 1,520 | 1,723 | 1,281 | 6,726 | 16,913 | ||||||||||||||||||||
Junior subordinated notes | — | — | — | — | — | 406 | 406 | ||||||||||||||||||||
Other | 200 | 56 | 930 | 743 | 37 | 456 | 2,422 | ||||||||||||||||||||
Total other debt | 4,098 | 2,129 | 2,450 | 2,467 | 1,318 | 7,588 | 20,050 | ||||||||||||||||||||
Total long-term debt excluding consolidated VIEs | 36,564 | 25,821 | 34,368 | 34,176 | 26,941 | 72,356 | 230,226 | ||||||||||||||||||||
Long-term debt of consolidated VIEs | 9,512 | 1,255 | 1,797 | 1,522 | 191 | 5,171 | 19,448 | ||||||||||||||||||||
Total long-term debt | $ | 46,076 | $ | 27,076 | $ | 36,165 | $ | 35,698 | $ | 27,132 | $ | 77,527 | $ | 249,674 |
(1) | On October 1, 2013, the merger of Merrill Lynch & Co., Inc. into Bank of America Corporation was completed. Effective with this merger, Bank of America Corporation assumed outstanding Merrill Lynch & Co., Inc. debt including trust preferred securities. |
220 Bank of America 2013 |
Bank of America 2013 221 |
Trust Securities Summary | ||||||||||||||||
(Dollars in millions) | December 31, 2013 | |||||||||||||||
Issuer | Issuance Date | Aggregate Principal Amount of Trust Securities | Aggregate Principal Amount of the Notes | Stated Maturity of the Trust Securities | Per Annum Interest Rate of the Notes | Interest Payment Dates | Redemption Period | |||||||||
Bank of America | ||||||||||||||||
Capital Trust VI | March 2005 | $ | 36 | $ | 37 | March 2035 | 5.63 | % | Semi-Annual | Any time | ||||||
Capital Trust VII (1) | August 2005 | 7 | 7 | August 2035 | 5.25 | Semi-Annual | Any time | |||||||||
Capital Trust VIII | August 2005 | 524 | 540 | August 2035 | 6.00 | Quarterly | On or after 8/25/10 | |||||||||
Capital Trust XI | May 2006 | 658 | 678 | May 2036 | 6.63 | Semi-Annual | Any time | |||||||||
Capital Trust XV | May 2007 | 2 | 2 | June 2056 | 3-mo. LIBOR +80 bps | Quarterly | On or after 6/01/37 | |||||||||
NationsBank | ||||||||||||||||
Capital Trust III | February 1997 | 131 | 136 | January 2027 | 3-mo. LIBOR +55 bps | Quarterly | On or after 1/15/07 | |||||||||
BankAmerica | ||||||||||||||||
Capital III | January 1997 | 103 | 106 | January 2027 | 3-mo. LIBOR +57 bps | Quarterly | On or after 1/15/02 | |||||||||
Barnett | ||||||||||||||||
Capital III | January 1997 | 64 | 66 | February 2027 | 3-mo. LIBOR +62.5 bps | Quarterly | On or after 2/01/07 | |||||||||
Fleet | ||||||||||||||||
Capital Trust V | December 1998 | 79 | 82 | December 2028 | 3-mo. LIBOR +100 bps | Quarterly | On or after 12/18/03 | |||||||||
BankBoston | ||||||||||||||||
Capital Trust III | June 1997 | 53 | 55 | June 2027 | 3-mo. LIBOR +75 bps | Quarterly | On or after 6/15/07 | |||||||||
Capital Trust IV | June 1998 | 102 | 106 | June 2028 | 3-mo. LIBOR +60 bps | Quarterly | On or after 6/08/03 | |||||||||
MBNA | ||||||||||||||||
Capital Trust B | January 1997 | 70 | 73 | February 2027 | 3-mo. LIBOR +80 bps | Quarterly | On or after 2/01/07 | |||||||||
Countrywide | ||||||||||||||||
Capital III | June 1997 | 200 | 206 | June 2027 | 8.05 | Semi-Annual | Only under special event | |||||||||
Capital IV | April 2003 | 500 | 515 | April 2033 | 6.75 | Quarterly | On or after 4/11/08 | |||||||||
Capital V | November 2006 | 1,495 | 1,496 | November 2036 | 7.00 | Quarterly | On or after 11/01/11 | |||||||||
Merrill Lynch | ||||||||||||||||
Preferred Capital Trust III | January 1998 | 750 | 901 | Perpetual | 7.00 | Quarterly | On or after 3/08 | |||||||||
Preferred Capital Trust IV | June 1998 | 400 | 480 | Perpetual | 7.12 | Quarterly | On or after 6/08 | |||||||||
Preferred Capital Trust V | November 1998 | 850 | 1,021 | Perpetual | 7.28 | Quarterly | On or after 9/08 | |||||||||
Capital Trust I | December 2006 | 1,050 | 1,051 | December 2066 | 6.45 | Quarterly | On or after 12/11 | |||||||||
Capital Trust II | May 2007 | 950 | 951 | June 2067 | 6.45 | Quarterly | On or after 6/12 | |||||||||
Capital Trust III | August 2007 | 750 | 751 | September 2067 | 7.375 | Quarterly | On or after 9/12 | |||||||||
Total | $ | 8,774 | $ | 9,260 |
(1) | Notes are denominated in British Pound. Presentation currency is U.S. Dollar. |
222 Bank of America 2013 |
Credit Extension Commitments | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||
(Dollars in millions) | Expire in One Year or Less | Expire After One Year Through Three Years | Expire After Three Years Through Five Years | Expire After Five Years | Total | ||||||||||||||
Notional amount of credit extension commitments | |||||||||||||||||||
Loan commitments | $ | 80,799 | $ | 105,175 | $ | 133,290 | $ | 21,864 | $ | 341,128 | |||||||||
Home equity lines of credit | 4,580 | 16,855 | 21,074 | 14,301 | 56,810 | ||||||||||||||
Standby letters of credit and financial guarantees (1) | 21,994 | 8,843 | 2,876 | 3,967 | 37,680 | ||||||||||||||
Letters of credit | 1,263 | 899 | 4 | 403 | 2,569 | ||||||||||||||
Legally binding commitments | 108,636 | 131,772 | 157,244 | 40,535 | 438,187 | ||||||||||||||
Credit card lines (2) | 377,846 | — | — | — | 377,846 | ||||||||||||||
Total credit extension commitments | $ | 486,482 | $ | 131,772 | $ | 157,244 | $ | 40,535 | $ | 816,033 | |||||||||
December 31, 2012 | |||||||||||||||||||
Notional amount of credit extension commitments | |||||||||||||||||||
Loan commitments | $ | 103,791 | $ | 83,885 | $ | 130,805 | $ | 19,942 | $ | 338,423 | |||||||||
Home equity lines of credit | 2,134 | 13,584 | 23,344 | 21,856 | 60,918 | ||||||||||||||
Standby letters of credit and financial guarantees (1) | 24,593 | 11,387 | 3,094 | 4,751 | 43,825 | ||||||||||||||
Letters of credit | 2,003 | 70 | 10 | 546 | 2,629 | ||||||||||||||
Legally binding commitments | 132,521 | 108,926 | 157,253 | 47,095 | 445,795 | ||||||||||||||
Credit card lines (2) | 397,862 | — | — | — | 397,862 | ||||||||||||||
Total credit extension commitments | $ | 530,383 | $ | 108,926 | $ | 157,253 | $ | 47,095 | $ | 843,657 |
(1) | The notional amounts of SBLCs and financial guarantees classified as investment grade and non-investment grade based on the credit quality of the underlying reference name within the instrument were $27.6 billion and $9.6 billion at December 31, 2013, and $31.5 billion and $11.6 billion at December 31, 2012. Amounts include consumer SBLCs of $453 million and $669 million at December 31, 2013 and 2012. |
(2) | Includes business card unused lines of credit. |
Bank of America 2013 223 |
224 Bank of America 2013 |
Bank of America 2013 225 |
226 Bank of America 2013 |
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232 Bank of America 2013 |
Bank of America 2013 233 |
Declared Quarterly Cash Dividends on Common Stock | ||||||||
Declaration Date | Record Date | Payment Date | Dividend Per Share | |||||
February 11, 2014 | March 7, 2014 | March 28, 2014 | $ | 0.01 | ||||
October 24, 2013 | December 6, 2013 | December 27, 2013 | 0.01 | |||||
July 24, 2013 | September 6, 2013 | September 27, 2013 | 0.01 | |||||
April 30, 2013 | June 7, 2013 | June 28, 2013 | 0.01 | |||||
January 23, 2013 | March 1, 2013 | March 22, 2013 | 0.01 |
234 Bank of America 2013 |
Bank of America 2013 235 |
Preferred Stock Summary | |||||||||||||||||||
(Dollars in millions, except as noted) | |||||||||||||||||||
Series | Description | Initial Issuance Date | Total Shares Outstanding | Liquidation Preference per Share (in dollars) | Carrying Value (1) | Per Annum Dividend Rate | Redemption Period | ||||||||||||
Series B (2) | 7% Cumulative Redeemable | June 1997 | 7,571 | $ | 100 | $ | 1 | 7.00 | % | n/a | |||||||||
Series D (3, 4) | 6.204% Non-Cumulative | September 2006 | 26,174 | 25,000 | 654 | 6.204 | % | On or after September 14, 2011 | |||||||||||
Series E (3, 4) | Floating Rate Non-Cumulative | November 2006 | 12,691 | 25,000 | 317 | 3-mo. LIBOR + 35 bps (5) | On or after November 15, 2011 | ||||||||||||
Series F (3, 4) | Floating Rate Non-Cumulative | March 2012 | 1,409 | 100,000 | 141 | 3-mo. LIBOR + 40 bps (5) | On or after March 15, 2012 | ||||||||||||
Series G (3, 4) | Adjustable Rate Non-Cumulative | March 2012 | 4,926 | 100,000 | 493 | 3-mo. LIBOR + 40 bps (5) | On or after March 15, 2012 | ||||||||||||
Series I (3, 4) | 6.625% Non-Cumulative | September 2007 | 14,584 | 25,000 | 365 | 6.625 | % | On or after October 1, 2017 | |||||||||||
Series K (3, 6) | Fixed-to-Floating Rate Non-Cumulative | January 2008 | 61,773 | 25,000 | 1,544 | 8.00% through 1/29/18; 3-mo. LIBOR + 363 bps thereafter | On or after January 30, 2018 | ||||||||||||
Series L | 7.25% Non-Cumulative Perpetual Convertible | January 2008 | 3,080,182 | 1,000 | 3,080 | 7.25 | % | n/a | |||||||||||
Series M (3, 6) | Fixed-to-Floating Rate Non-Cumulative | April 2008 | 52,399 | 25,000 | 1,310 | 8.125% through 5/14/18; 3-mo. LIBOR + 364 bps thereafter | On or after May 15, 2018 | ||||||||||||
Series T | 6% Cumulative | September 2011 | 50,000 | 100,000 | 2,918 | 6.00 | % | See description in Preferred Stock in this Note | |||||||||||
Series U | Fixed-to-Floating Rate Non-Cumulative | May 2013 | 40,000 | 25,000 | 1,000 | 5.2% through 6/1/23; 3-mo. LIBOR + 313.5 bps thereafter | On or after June 1, 2023 | ||||||||||||
Series 1 (3, 7) | Floating Rate Non-Cumulative | November 2004 | 3,275 | 30,000 | 98 | 3-mo. LIBOR + 75 bps (8) | On or after November 28, 2009 | ||||||||||||
Series 2 (3, 7) | Floating Rate Non-Cumulative | March 2005 | 9,967 | 30,000 | 299 | 3-mo. LIBOR + 65 bps (8) | On or after November 28, 2009 | ||||||||||||
Series 3 (3, 7) | 6.375% Non-Cumulative | November 2005 | 21,773 | 30,000 | 653 | 6.375 | % | On or after November 28, 2010 | |||||||||||
Series 4 (3, 7) | Floating Rate Non-Cumulative | November 2005 | 7,010 | 30,000 | 210 | 3-mo. LIBOR + 75 bps (5) | On or after November 28, 2010 | ||||||||||||
Series 5 (3, 7) | Floating Rate Non-Cumulative | March 2007 | 14,056 | 30,000 | 422 | 3-mo. LIBOR + 50 bps (5) | On or after May 21, 2012 | ||||||||||||
Total | 3,407,790 | $ | 13,505 |
(1) | Amounts shown are before certain GAAP accounting adjustments of $153 million. |
(2) | Series B Preferred Stock does not have early redemption/call rights. |
(3) | The Corporation may redeem series of preferred stock on or after the redemption date, in whole or in part, at its option, at the liquidation preference plus declared and unpaid dividends. |
(4) | Ownership is held in the form of depositary shares, each representing a 1/1,000th interest in a share of preferred stock, paying a quarterly cash dividend, if and when declared. |
(5) | Subject to 4.00% minimum rate per annum. |
(6) | Ownership is held in the form of depositary shares, each representing a 1/25th interest in a share of preferred stock, paying a semi-annual cash dividend, if and when declared, until the redemption date at which time, it adjusts to a quarterly cash dividend, if and when declared, thereafter. |
(7) | Ownership is held in the form of depositary shares, each representing a 1/1,200th interest in a share of preferred stock, paying a quarterly cash dividend, if and when declared. |
(8) | Subject to 3.00% minimum rate per annum. |
236 Bank of America 2013 |
Bank of America 2013 237 |
(Dollars in millions) | Available-for- Sale Debt Securities | Available-for- Sale Marketable Equity Securities | Derivatives | Employee Benefit Plans (1) | Foreign Currency (2) | Total | |||||||||||||||||
Balance, December 31, 2010 | $ | 714 | $ | 6,659 | $ | (3,236 | ) | $ | (3,947 | ) | $ | (256 | ) | $ | (66 | ) | |||||||
Net change | 2,386 | (6,656 | ) | (549 | ) | (444 | ) | (108 | ) | (5,371 | ) | ||||||||||||
Balance, December 31, 2011 | $ | 3,100 | $ | 3 | $ | (3,785 | ) | $ | (4,391 | ) | $ | (364 | ) | $ | (5,437 | ) | |||||||
Net change | 1,343 | 459 | 916 | (65 | ) | (13 | ) | 2,640 | |||||||||||||||
Balance, December 31, 2012 | $ | 4,443 | $ | 462 | $ | (2,869 | ) | $ | (4,456 | ) | $ | (377 | ) | $ | (2,797 | ) | |||||||
Net change | (7,700 | ) | (466 | ) | 592 | 2,049 | (135 | ) | (5,660 | ) | |||||||||||||
Balance, December 31, 2013 | $ | (3,257 | ) | $ | (4 | ) | $ | (2,277 | ) | $ | (2,407 | ) | $ | (512 | ) | $ | (8,457 | ) |
(1) | During 2013, the Corporation merged certain pension plans into one plan. For more information on employee benefit plans, see Note 17 – Employee Benefit Plans. |
(2) | The net change in fair value represents the impact of changes in spot foreign exchange rates on the Corporation’s net investment in non-U.S. operations, and related hedges. |
Changes in OCI Components Before- and After-tax | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||
(Dollars in millions) | Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | ||||||||||||||||||||||||||
Available-for-sale debt securities: | |||||||||||||||||||||||||||||||||||
Net change in fair value | $ | (10,989 | ) | $ | 4,077 | $ | (6,912 | ) | $ | 3,676 | $ | (1,319 | ) | $ | 2,357 | $ | 6,913 | $ | (2,590 | ) | $ | 4,323 | |||||||||||||
Net realized gains reclassified into earnings | (1,251 | ) | 463 | (788 | ) | (1,609 | ) | 595 | (1,014 | ) | (3,075 | ) | 1,138 | (1,937 | ) | ||||||||||||||||||||
Net change | (12,240 | ) | 4,540 | (7,700 | ) | 2,067 | (724 | ) | 1,343 | 3,838 | (1,452 | ) | 2,386 | ||||||||||||||||||||||
Available-for-sale marketable equity securities: | |||||||||||||||||||||||||||||||||||
Net change in fair value | 32 | (12 | ) | 20 | 748 | (277 | ) | 471 | (4,114 | ) | 1,575 | (2,539 | ) | ||||||||||||||||||||||
Net realized gains reclassified into earnings | (771 | ) | 285 | (486 | ) | (19 | ) | 7 | (12 | ) | (6,501 | ) | 2,384 | (4,117 | ) | ||||||||||||||||||||
Net change | (739 | ) | 273 | (466 | ) | 729 | (270 | ) | 459 | (10,615 | ) | 3,959 | (6,656 | ) | |||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||
Net change in fair value | 156 | (51 | ) | 105 | 430 | (166 | ) | 264 | (2,490 | ) | 923 | (1,567 | ) | ||||||||||||||||||||||
Net realized losses reclassified into earnings | 773 | (286 | ) | 487 | 1,035 | (383 | ) | 652 | 1,617 | (599 | ) | 1,018 | |||||||||||||||||||||||
Net change | 929 | (337 | ) | 592 | 1,465 | (549 | ) | 916 | (873 | ) | 324 | (549 | ) | ||||||||||||||||||||||
Employee benefit plans: | |||||||||||||||||||||||||||||||||||
Net change in fair value | 2,985 | (1,128 | ) | 1,857 | (1,891 | ) | 660 | (1,231 | ) | (1,171 | ) | 457 | (714 | ) | |||||||||||||||||||||
Net realized losses reclassified into earnings | 237 | (79 | ) | 158 | 490 | (192 | ) | 298 | 437 | (167 | ) | 270 | |||||||||||||||||||||||
Settlements and curtailments | 46 | (12 | ) | 34 | 1,378 | (510 | ) | 868 | — | — | — | ||||||||||||||||||||||||
Net change | 3,268 | (1,219 | ) | 2,049 | (23 | ) | (42 | ) | (65 | ) | (734 | ) | 290 | (444 | ) | ||||||||||||||||||||
Foreign currency: | |||||||||||||||||||||||||||||||||||
Net change in fair value | 244 | (384 | ) | (140 | ) | (226 | ) | 233 | 7 | 145 | (179 | ) | (34 | ) | |||||||||||||||||||||
Net realized (gains) losses reclassified into earnings | 138 | (133 | ) | 5 | (30 | ) | 10 | (20 | ) | (65 | ) | (9 | ) | (74 | ) | ||||||||||||||||||||
Net change | 382 | (517 | ) | (135 | ) | (256 | ) | 243 | (13 | ) | 80 | (188 | ) | (108 | ) | ||||||||||||||||||||
Total other comprehensive income (loss) | $ | (8,400 | ) | $ | 2,740 | $ | (5,660 | ) | $ | 3,982 | $ | (1,342 | ) | $ | 2,640 | $ | (8,304 | ) | $ | 2,933 | $ | (5,371 | ) |
238 Bank of America 2013 |
Reclassifications Out of Accumulated OCI | ||||||||||||
(Dollars in millions) | ||||||||||||
Accumulated OCI Components | Income Statement Line Item Impacted | 2013 | 2012 | 2011 | ||||||||
Available-for-sale debt securities: | ||||||||||||
Gains on sales of debt securities | $ | 1,271 | $ | 1,662 | $ | 3,374 | ||||||
Other-than-temporary impairment | (20 | ) | (53 | ) | (299 | ) | ||||||
Income before income taxes | 1,251 | 1,609 | 3,075 | |||||||||
Income tax expense | 463 | 595 | 1,138 | |||||||||
Reclassification to net income | 788 | 1,014 | 1,937 | |||||||||
Available-for-sale marketable equity securities: | ||||||||||||
Equity investment income | 771 | 19 | 6,501 | |||||||||
Income before income taxes | 771 | 19 | 6,501 | |||||||||
Income tax expense | 285 | 7 | 2,384 | |||||||||
Reclassification to net income | 486 | 12 | 4,117 | |||||||||
Derivatives: | ||||||||||||
Interest rate contracts | Net interest income | (1,119 | ) | (956 | ) | (1,393 | ) | |||||
Commodity contracts | Trading account profits | (1 | ) | (1 | ) | 7 | ||||||
Interest rate contracts | Other income | 18 | — | — | ||||||||
Equity compensation contracts | Personnel | 329 | (78 | ) | (231 | ) | ||||||
Loss before income taxes | (773 | ) | (1,035 | ) | (1,617 | ) | ||||||
Income tax benefit | (286 | ) | (383 | ) | (599 | ) | ||||||
Reclassification to net income | (487 | ) | (652 | ) | (1,018 | ) | ||||||
Employee benefit plans: | ||||||||||||
Prior service cost | Personnel | (4 | ) | (6 | ) | (16 | ) | |||||
Transition obligation | Personnel | — | (32 | ) | (31 | ) | ||||||
Net actuarial losses | Personnel | (225 | ) | (443 | ) | (387 | ) | |||||
Settlements and curtailments | Personnel | (8 | ) | (58 | ) | (3 | ) | |||||
Loss before income taxes | (237 | ) | (539 | ) | (437 | ) | ||||||
Income tax benefit | (79 | ) | (212 | ) | (167 | ) | ||||||
Reclassification to net income | (158 | ) | (327 | ) | (270 | ) | ||||||
Foreign currency: | ||||||||||||
Other income (loss) | (138 | ) | 30 | 65 | ||||||||
Income (loss) before income taxes | (138 | ) | 30 | 65 | ||||||||
Income tax expense (benefit) | (133 | ) | 10 | (9 | ) | |||||||
Reclassification to net Income | (5 | ) | 20 | 74 | ||||||||
Total reclassification adjustments | $ | 624 | $ | 67 | $ | 4,840 |
Bank of America 2013 239 |
(Dollars in millions, except per share information; shares in thousands) | 2013 | 2012 | 2011 | ||||||||
Earnings per common share | |||||||||||
Net income | $ | 11,431 | $ | 4,188 | $ | 1,446 | |||||
Preferred stock dividends | (1,349 | ) | (1,428 | ) | (1,361 | ) | |||||
Net income applicable to common shareholders | 10,082 | 2,760 | 85 | ||||||||
Dividends and undistributed earnings allocated to participating securities | (2 | ) | (2 | ) | (1 | ) | |||||
Net income allocated to common shareholders | $ | 10,080 | $ | 2,758 | $ | 84 | |||||
Average common shares issued and outstanding | 10,731,165 | 10,746,028 | 10,142,625 | ||||||||
Earnings per common share | $ | 0.94 | $ | 0.26 | $ | 0.01 | |||||
Diluted earnings per common share | |||||||||||
Net income applicable to common shareholders | $ | 10,082 | $ | 2,760 | $ | 85 | |||||
Add preferred stock dividends due to assumed conversions | 300 | — | — | ||||||||
Dividends and undistributed earnings allocated to participating securities | (2 | ) | (2 | ) | (1 | ) | |||||
Net income allocated to common shareholders | $ | 10,380 | $ | 2,758 | $ | 84 | |||||
Average common shares issued and outstanding | 10,731,165 | 10,746,028 | 10,142,625 | ||||||||
Dilutive potential common shares (1) | 760,253 | 94,826 | 112,199 | ||||||||
Total diluted average common shares issued and outstanding | 11,491,418 | 10,840,854 | 10,254,824 | ||||||||
Diluted earnings per common share | $ | 0.90 | $ | 0.25 | $ | 0.01 |
(1) | Includes incremental shares from restricted stock units, restricted stock, stock options and warrants. |
240 Bank of America 2013 |
Bank of America 2013 241 |
Regulatory Capital | |||||||||||||||||||||
December 31 | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Actual | Actual | ||||||||||||||||||||
(Dollars in millions) | Ratio | Amount | Minimum Required (1) | Ratio | Amount | Minimum Required (1) | |||||||||||||||
Risk-based capital | |||||||||||||||||||||
Tier 1 common capital | |||||||||||||||||||||
Bank of America Corporation | 11.19 | % | $ | 145,235 | n/a | 11.06 | % | $ | 133,403 | n/a | |||||||||||
Tier 1 capital | |||||||||||||||||||||
Bank of America Corporation | 12.44 | 161,456 | $ | 77,852 | 12.89 | 155,461 | $ | 72,359 | |||||||||||||
Bank of America, N.A. | 12.34 | 125,886 | 61,208 | 12.44 | 118,431 | 57,099 | |||||||||||||||
FIA Card Services, N.A. | 16.83 | 20,135 | 7,177 | 17.34 | 22,061 | 7,632 | |||||||||||||||
Total capital | |||||||||||||||||||||
Bank of America Corporation | 15.44 | 200,281 | 129,753 | 16.31 | 196,680 | 120,598 | |||||||||||||||
Bank of America, N.A. | 13.84 | 141,232 | 102,013 | 14.76 | 140,434 | 95,165 | |||||||||||||||
FIA Card Services, N.A. | 18.12 | 21,672 | 11,962 | 18.64 | 23,707 | 12,719 | |||||||||||||||
Tier 1 leverage | |||||||||||||||||||||
Bank of America Corporation | 7.86 | 161,456 | 82,125 | 7.37 | 155,461 | 84,429 | |||||||||||||||
Bank of America, N.A. | 9.21 | 125,886 | 68,379 | 8.59 | 118,431 | 68,957 | |||||||||||||||
FIA Card Services, N.A. | 12.91 | 20,135 | 7,801 | 13.67 | 22,061 | 8,067 |
(1) | Dollar amount required to meet guidelines to be considered well-capitalized. |
242 Bank of America 2013 |
Bank of America 2013 243 |
244 Bank of America 2013 |
Bank of America 2013 245 |
Pension and Postretirement Plans | |||||||||||||||||||||||||||||||
Qualified Pension Plan (1) | Non-U.S. Pension Plans (1) | Nonqualified and Other Pension Plans (1) | Postretirement Health and Life Plans (1) | ||||||||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Change in fair value of plan assets | |||||||||||||||||||||||||||||||
Fair value, January 1 | $ | 16,274 | $ | 15,070 | $ | 2,306 | $ | 2,022 | $ | 3,063 | $ | 3,061 | $ | 86 | $ | 91 | |||||||||||||||
Actual return on plan assets | 2,873 | 2,020 | 146 | 115 | (217 | ) | 126 | 9 | 10 | ||||||||||||||||||||||
Company contributions | — | — | 131 | 152 | 98 | 112 | 61 | 117 | |||||||||||||||||||||||
Plan participant contributions | — | — | 1 | 3 | — | — | 138 | 139 | |||||||||||||||||||||||
Settlements and curtailments | — | — | (80 | ) | — | (7 | ) | — | — | — | |||||||||||||||||||||
Benefits paid | (871 | ) | (816 | ) | (80 | ) | (77 | ) | (217 | ) | (236 | ) | (237 | ) | (290 | ) | |||||||||||||||
Federal subsidy on benefits paid | n/a | n/a | n/a | n/a | n/a | n/a | 15 | 19 | |||||||||||||||||||||||
Foreign currency exchange rate changes | n/a | n/a | 33 | 91 | n/a | n/a | n/a | n/a | |||||||||||||||||||||||
Fair value, December 31 | $ | 18,276 | $ | 16,274 | $ | 2,457 | $ | 2,306 | $ | 2,720 | $ | 3,063 | $ | 72 | $ | 86 | |||||||||||||||
Change in projected benefit obligation | |||||||||||||||||||||||||||||||
Projected benefit obligation, January 1 | $ | 15,655 | $ | 14,891 | $ | 2,460 | $ | 1,984 | $ | 3,334 | $ | 3,137 | $ | 1,574 | $ | 1,619 | |||||||||||||||
Service cost | — | 236 | 32 | 40 | 1 | 1 | 9 | 13 | |||||||||||||||||||||||
Interest cost | 623 | 681 | 98 | 97 | 120 | 138 | 54 | 71 | |||||||||||||||||||||||
Plan participant contributions | — | — | 1 | 3 | — | — | 138 | 139 | |||||||||||||||||||||||
Plan amendments | — | — | 2 | 2 | — | — | — | — | |||||||||||||||||||||||
Settlements and curtailments | 17 | (889 | ) | (116 | ) | — | (7 | ) | — | — | — | ||||||||||||||||||||
Actuarial loss (gain) | (1,279 | ) | 1,552 | 156 | 328 | (161 | ) | 294 | (197 | ) | (4 | ) | |||||||||||||||||||
Benefits paid | (871 | ) | (816 | ) | (80 | ) | (77 | ) | (217 | ) | (236 | ) | (237 | ) | (290 | ) | |||||||||||||||
Federal subsidy on benefits paid | n/a | n/a | n/a | n/a | n/a | n/a | 15 | 19 | |||||||||||||||||||||||
Foreign currency exchange rate changes | n/a | n/a | 27 | 83 | n/a | n/a | — | 7 | |||||||||||||||||||||||
Projected benefit obligation, December 31 | $ | 14,145 | $ | 15,655 | $ | 2,580 | $ | 2,460 | $ | 3,070 | $ | 3,334 | $ | 1,356 | $ | 1,574 | |||||||||||||||
Amount recognized, December 31 | $ | 4,131 | $ | 619 | $ | (123 | ) | $ | (154 | ) | $ | (350 | ) | $ | (271 | ) | $ | (1,284 | ) | $ | (1,488 | ) | |||||||||
Funded status, December 31 | |||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 14,145 | $ | 15,655 | $ | 2,463 | $ | 2,345 | $ | 3,067 | $ | 3,334 | n/a | n/a | |||||||||||||||||
Overfunded (unfunded) status of ABO | 4,131 | 619 | (6 | ) | (39 | ) | (347 | ) | (271 | ) | n/a | n/a | |||||||||||||||||||
Provision for future salaries | — | — | 117 | 115 | 3 | — | n/a | n/a | |||||||||||||||||||||||
Projected benefit obligation | 14,145 | 15,655 | 2,580 | 2,460 | 3,070 | 3,334 | $ | 1,356 | $ | 1,574 | |||||||||||||||||||||
Weighted-average assumptions, December 31 | |||||||||||||||||||||||||||||||
Discount rate | 4.85 | % | 4.00 | % | 4.30 | % | 4.23 | % | 4.55 | % | 3.65 | % | 4.50 | % | 3.65 | % | |||||||||||||||
Rate of compensation increase | n/a | n/a | 3.40 | 4.37 | 4.00 | 4.00 | n/a | n/a |
(1) | The measurement date for the Qualified Pension Plan, Non-U.S. Pension Plans, Nonqualified and Other Pension Plans, and Postretirement Health and Life Plans was December 31 of each year reported. |
Amounts Recognized on Consolidated Balance Sheet | |||||||||||||||||||||||||||||||
Qualified Pension Plan | Non-U.S. Pension Plans | Nonqualified and Other Pension Plans | Postretirement Health and Life Plans | ||||||||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Other assets | $ | 4,131 | $ | 676 | $ | 205 | $ | 220 | $ | 777 | $ | 908 | $ | — | $ | — | |||||||||||||||
Accrued expenses and other liabilities | — | (57 | ) | (328 | ) | (374 | ) | (1,127 | ) | (1,179 | ) | (1,284 | ) | (1,488 | ) | ||||||||||||||||
Net amount recognized at December 31 | $ | 4,131 | $ | 619 | $ | (123 | ) | $ | (154 | ) | $ | (350 | ) | $ | (271 | ) | $ | (1,284 | ) | $ | (1,488 | ) |
246 Bank of America 2013 |
Plans with ABO and PBO in Excess of Plan Assets | |||||||||||||||||||||
Qualified Pension Plan | Non-U.S. Pension Plans | Nonqualified and Other Pension Plans | |||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Plans with ABO in excess of plan assets | |||||||||||||||||||||
PBO | n/a | $ | 7,171 | $ | 617 | $ | 883 | $ | 1,129 | $ | 1,182 | ||||||||||
ABO | n/a | 7,171 | 606 | 843 | 1,126 | 1,181 | |||||||||||||||
Fair value of plan assets | n/a | 7,114 | 290 | 510 | 2 | 2 | |||||||||||||||
Plans with PBO in excess of plan assets | |||||||||||||||||||||
PBO | n/a | $ | 7,171 | $ | 720 | $ | 896 | $ | 1,129 | $ | 1,182 | ||||||||||
Fair value of plan assets | n/a | 7,114 | 392 | 522 | 2 | 2 |
Components of Net Periodic Benefit Cost | |||||||||||||||||||||||
Qualified Pension Plan | Non-U.S. Pension Plans | ||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||||||||
Service cost | $ | — | $ | 236 | $ | 423 | $ | 32 | $ | 40 | $ | 43 | |||||||||||
Interest cost | 623 | 681 | 746 | 98 | 97 | 99 | |||||||||||||||||
Expected return on plan assets | (1,024 | ) | (1,246 | ) | (1,296 | ) | (121 | ) | (137 | ) | (115 | ) | |||||||||||
Amortization of prior service cost | — | 9 | 20 | — | — | — | |||||||||||||||||
Amortization of net actuarial loss (gain) | 242 | 469 | 387 | 2 | (9 | ) | — | ||||||||||||||||
Recognized loss (gain) due to settlements and curtailments | 17 | 58 | — | (7 | ) | — | — | ||||||||||||||||
Net periodic benefit cost (income) | $ | (142 | ) | $ | 207 | $ | 280 | $ | 4 | $ | (9 | ) | $ | 27 | |||||||||
Weighted-average assumptions used to determine net cost for years ended December 31 | |||||||||||||||||||||||
Discount rate | 4.00 | % | 4.95 | % | 5.45 | % | 4.23 | % | 4.87 | % | 5.32 | % | |||||||||||
Expected return on plan assets | 6.50 | 8.00 | 8.00 | 5.50 | 6.65 | 6.58 | |||||||||||||||||
Rate of compensation increase | n/a | 4.00 | 4.00 | 4.37 | 4.42 | 4.85 | |||||||||||||||||
Nonqualified and Other Pension Plans | Postretirement Health and Life Plans | ||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 3 | $ | 9 | $ | 13 | $ | 15 | |||||||||||
Interest cost | 120 | 138 | 152 | 54 | 71 | 80 | |||||||||||||||||
Expected return on plan assets | (109 | ) | (152 | ) | (141 | ) | (5 | ) | (8 | ) | (9 | ) | |||||||||||
Amortization of transition obligation | — | — | — | — | 32 | 31 | |||||||||||||||||
Amortization of prior service cost (credits) | — | (3 | ) | (8 | ) | 4 | 4 | 4 | |||||||||||||||
Amortization of net actuarial loss (gain) | 25 | 8 | 16 | (42 | ) | (38 | ) | (17 | ) | ||||||||||||||
Recognized loss due to settlements and curtailments | 2 | — | 3 | 6 | — | — | |||||||||||||||||
Net periodic benefit cost (income) | $ | 39 | $ | (8 | ) | $ | 25 | $ | 26 | $ | 74 | $ | 104 | ||||||||||
Weighted-average assumptions used to determine net cost for years ended December 31 | |||||||||||||||||||||||
Discount rate | 3.65 | % | 4.65 | % | 5.20 | % | 3.65 | % | 4.65 | % | 5.10 | % | |||||||||||
Expected return on plan assets | 3.75 | 5.25 | 5.25 | 6.50 | 8.00 | 8.00 | |||||||||||||||||
Rate of compensation increase | 4.00 | 4.00 | 4.00 | n/a | n/a | n/a |
Bank of America 2013 247 |
Pre-tax Amounts included in Accumulated OCI | |||||||||||||||||||||||||||||||||||||||
Qualified Pension Plan | Non-U.S. Pension Plans | Nonqualified and Other Pension Plans | Postretirement Health and Life Plans | Total | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 2,794 | $ | 6,164 | $ | 271 | $ | 144 | $ | 855 | $ | 718 | $ | (171 | ) | $ | (28 | ) | $ | 3,749 | $ | 6,998 | |||||||||||||||||
Prior service cost (credits) | — | — | (9 | ) | 5 | — | — | 24 | 29 | 15 | 34 | ||||||||||||||||||||||||||||
Amounts recognized in accumulated OCI | $ | 2,794 | $ | 6,164 | $ | 262 | $ | 149 | $ | 855 | $ | 718 | $ | (147 | ) | $ | 1 | $ | 3,764 | $ | 7,032 |
Pre-tax Amounts Recognized in OCI in 2013 | |||||||||||||||||||
(Dollars in millions) | Qualified Pension Plan | Non-U.S. Pension Plans | Nonqualified and Other Pension Plans | Postretirement Health and Life Plans | Total | ||||||||||||||
Current year actuarial loss (gain) | $ | (3,128 | ) | $ | 113 | $ | 164 | $ | (180 | ) | $ | (3,031 | ) | ||||||
Amortization of actuarial gain (loss) | (242 | ) | (2 | ) | (27 | ) | 36 | (235 | ) | ||||||||||
Current year prior service cost | — | 2 | — | — | 2 | ||||||||||||||
Amortization of prior service cost | — | — | — | (4 | ) | (4 | ) | ||||||||||||
Amounts recognized in OCI | $ | (3,370 | ) | $ | 113 | $ | 137 | $ | (148 | ) | $ | (3,268 | ) |
Estimated Pre-tax Amounts Amortized from Accumulated OCI into Period Cost in 2014 | |||||||||||||||||||
(Dollars in millions) | Qualified Pension Plan | Non-U.S. Pension Plans | Nonqualified and Other Pension Plans | Postretirement Health and Life Plans | Total | ||||||||||||||
Net actuarial loss (gain) | $ | 108 | $ | 3 | $ | 25 | $ | (85 | ) | $ | 51 | ||||||||
Prior service cost | — | 1 | — | 4 | 5 | ||||||||||||||
Total amounts amortized from accumulated OCI | $ | 108 | $ | 4 | $ | 25 | $ | (81 | ) | $ | 56 |
248 Bank of America 2013 |
2014 Target Allocation | ||||
Percentage | ||||
Asset Category | Qualified Pension Plan | Non-U.S. Pension Plans | Nonqualified and Other Pension Plans | Postretirement Health and Life Plans |
Equity securities | 30 - 60 | 10 - 35 | 0 - 5 | 20 - 50 |
Debt securities | 40 - 70 | 40 - 80 | 95 - 100 | 50 - 80 |
Real estate | 0 - 10 | 0 - 15 | 0 - 5 | 0 - 5 |
Other | 0 - 5 | 0 - 15 | 0 - 5 | 0 - 5 |
Bank of America 2013 249 |
Fair Value Measurements | |||||||||||||||
December 31, 2013 | |||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Cash and short-term investments | |||||||||||||||
Money market and interest-bearing cash | $ | 2,586 | $ | — | $ | — | $ | 2,586 | |||||||
Cash and cash equivalent commingled/mutual funds | — | 223 | — | 223 | |||||||||||
Fixed income | |||||||||||||||
U.S. government and government agency securities | 1,590 | 2,245 | 12 | 3,847 | |||||||||||
Corporate debt securities | — | 1,233 | — | 1,233 | |||||||||||
Asset-backed securities | — | 1,455 | — | 1,455 | |||||||||||
Non-U.S. debt securities | 547 | 502 | 6 | 1,055 | |||||||||||
Fixed income commingled/mutual funds | 89 | 1,279 | — | 1,368 | |||||||||||
Equity | |||||||||||||||
Common and preferred equity securities | 7,463 | — | — | 7,463 | |||||||||||
Equity commingled/mutual funds | 213 | 2,308 | — | 2,521 | |||||||||||
Public real estate investment trusts | 127 | — | — | 127 | |||||||||||
Real estate | |||||||||||||||
Private real estate | — | — | 119 | 119 | |||||||||||
Real estate commingled/mutual funds | — | 7 | 462 | 469 | |||||||||||
Limited partnerships | — | 117 | 145 | 262 | |||||||||||
Other investments (1) | — | 662 | 135 | 797 | |||||||||||
Total plan investment assets, at fair value | $ | 12,615 | $ | 10,031 | $ | 879 | $ | 23,525 | |||||||
December 31, 2012 | |||||||||||||||
Cash and short-term investments | |||||||||||||||
Money market and interest-bearing cash | $ | 1,404 | $ | — | $ | — | $ | 1,404 | |||||||
Cash and cash equivalent commingled/mutual funds | — | 96 | — | 96 | |||||||||||
Fixed income | |||||||||||||||
U.S. government and government agency securities | 1,317 | 2,829 | 13 | 4,159 | |||||||||||
Corporate debt securities | — | 1,062 | — | 1,062 | |||||||||||
Asset-backed securities | — | 1,109 | — | 1,109 | |||||||||||
Non-U.S. debt securities | 70 | 535 | 10 | 615 | |||||||||||
Fixed income commingled/mutual funds | 99 | 1,432 | — | 1,531 | |||||||||||
Equity | |||||||||||||||
Common and preferred equity securities | 7,432 | — | — | 7,432 | |||||||||||
Equity commingled/mutual funds | 290 | 2,316 | — | 2,606 | |||||||||||
Public real estate investment trusts | 236 | — | — | 236 | |||||||||||
Real estate | |||||||||||||||
Private real estate | — | — | 110 | 110 | |||||||||||
Real estate commingled/mutual funds | — | 10 | 324 | 334 | |||||||||||
Limited partnerships | — | 110 | 231 | 341 | |||||||||||
Other investments (1) | 22 | 543 | 129 | 694 | |||||||||||
Total plan investment assets, at fair value | $ | 10,870 | $ | 10,042 | $ | 817 | $ | 21,729 |
(1) | Other investments include interest rate swaps of $435 million and $311 million, participant loans of $87 million and $76 million, commodity and balanced funds of $229 million and $239 million and other various investments of $46 million and $68 million at December 31, 2013 and 2012. |
250 Bank of America 2013 |
Level 3 Fair Value Measurements | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||
(Dollars in millions) | Balance January 1 | Actual Return on Plan Assets Still Held at the Reporting Date | Purchases | Sales and Settlements | Transfers into/ (out of) Level 3 | Balance December 31 | |||||||||||||||||
Fixed income | |||||||||||||||||||||||
U.S. government and government agency securities | $ | 13 | $ | — | $ | — | $ | (1 | ) | $ | — | $ | 12 | ||||||||||
Non-U.S. debt securities | 10 | (2 | ) | — | (2 | ) | — | 6 | |||||||||||||||
Real estate | |||||||||||||||||||||||
Private real estate | 110 | 4 | 7 | (2 | ) | — | 119 | ||||||||||||||||
Real estate commingled/mutual funds | 324 | 15 | 123 | — | — | 462 | |||||||||||||||||
Limited partnerships | 231 | 8 | 23 | (89 | ) | (28 | ) | 145 | |||||||||||||||
Other investments | 129 | (6 | ) | 13 | (1 | ) | — | 135 | |||||||||||||||
Total | $ | 817 | $ | 19 | $ | 166 | $ | (95 | ) | $ | (28 | ) | $ | 879 | |||||||||
2012 | |||||||||||||||||||||||
Fixed income | |||||||||||||||||||||||
U.S. government and government agency securities | $ | 13 | $ | — | $ | — | $ | — | $ | — | $ | 13 | |||||||||||
Non-U.S. debt securities | 10 | (1 | ) | 1 | (1 | ) | 1 | 10 | |||||||||||||||
Real estate | |||||||||||||||||||||||
Private real estate | 113 | (2 | ) | 2 | (3 | ) | — | 110 | |||||||||||||||
Real estate commingled/mutual funds | 249 | 13 | 62 | — | — | 324 | |||||||||||||||||
Limited partnerships | 232 | 8 | 11 | (20 | ) | — | 231 | ||||||||||||||||
Other investments | 122 | 7 | 4 | (4 | ) | — | 129 | ||||||||||||||||
Total | $ | 739 | $ | 25 | $ | 80 | $ | (28 | ) | $ | 1 | $ | 817 | ||||||||||
2011 | |||||||||||||||||||||||
Fixed income | |||||||||||||||||||||||
U.S. government and government agency securities | $ | 14 | $ | (1 | ) | $ | — | $ | — | $ | — | $ | 13 | ||||||||||
Non-U.S. debt securities | 9 | — | 3 | (2 | ) | — | 10 | ||||||||||||||||
Real estate | |||||||||||||||||||||||
Private real estate | 110 | — | 3 | — | — | 113 | |||||||||||||||||
Real estate commingled/mutual funds | 215 | 26 | 9 | (1 | ) | — | 249 | ||||||||||||||||
Limited partnerships | 230 | (6 | ) | 13 | (5 | ) | — | 232 | |||||||||||||||
Other investments | 94 | 1 | 26 | — | 1 | 122 | |||||||||||||||||
Total | $ | 672 | $ | 20 | $ | 54 | $ | (8 | ) | $ | 1 | $ | 739 |
Projected Benefit Payments | |||||||||||||||||||
Postretirement Health and Life Plans | |||||||||||||||||||
(Dollars in millions) | Qualified Pension Plan (1) | Non-U.S. Pension Plans (2) | Nonqualified and Other Pension Plans (2) | Net Payments (3) | Medicare Subsidy | ||||||||||||||
2014 | $ | 927 | $ | 60 | $ | 243 | $ | 142 | $ | 17 | |||||||||
2015 | 920 | 61 | 245 | 140 | 17 | ||||||||||||||
2016 | 910 | 64 | 242 | 137 | 17 | ||||||||||||||
2017 | 903 | 69 | 239 | 132 | 17 | ||||||||||||||
2018 | 894 | 71 | 235 | 127 | 17 | ||||||||||||||
2019 – 2023 | 4,399 | 428 | 1,132 | 558 | 76 |
(1) | Benefit payments expected to be made from the plan’s assets. |
(2) | Benefit payments expected to be made from a combination of the plans’ and the Corporation’s assets. |
(3) | Benefit payments (net of retiree contributions) expected to be made from a combination of the plans’ and the Corporation’s assets. |
Bank of America 2013 251 |
Stock-settled Restricted Stock/Units | ||||||
Shares/Units | Weighted- average Grant Date Fair Value | |||||
Outstanding at January 1, 2013 | 147,570,397 | $ | 13.18 | |||
Granted | 2,405,568 | 11.80 | ||||
Vested | (75,422,919 | ) | 14.24 | |||
Canceled | (3,350,295 | ) | 12.22 | |||
Outstanding at December 31, 2013 | 71,202,751 | $ | 12.05 |
252 Bank of America 2013 |
Cash-settled Restricted Units | ||
Units | ||
Outstanding at January 1, 2013 | 329,556,468 | |
Granted | 181,166,560 | |
Vested | (137,125,114 | ) |
Canceled | (13,669,045 | ) |
Outstanding at December 31, 2013 | 359,928,869 |
Stock Options | ||||||
Options | Weighted- average Exercise Price | |||||
Outstanding at January 1, 2013 | 154,923,623 | $ | 46.22 | |||
Forfeited | (32,754,932 | ) | 38.73 | |||
Outstanding at December 31, 2013 | 122,168,691 | 48.23 | ||||
Options vested and exercisable at December 31, 2013 | 122,168,691 | 48.23 |
Income Tax Expense (Benefit) | |||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | ||||||||
Current income tax expense (benefit) | |||||||||||
U.S. federal | $ | 180 | $ | 458 | $ | (733 | ) | ||||
U.S. state and local | 786 | 592 | 393 | ||||||||
Non-U.S. | 513 | 569 | 613 | ||||||||
Total current expense | 1,479 | 1,619 | 273 | ||||||||
Deferred income tax expense (benefit) | |||||||||||
U.S. federal | 2,056 | (3,433 | ) | (2,673 | ) | ||||||
U.S. state and local | (94 | ) | (55 | ) | (584 | ) | |||||
Non-U.S. | 1,300 | 753 | 1,308 | ||||||||
Total deferred expense (benefit) | 3,262 | (2,735 | ) | (1,949 | ) | ||||||
Total income tax expense (benefit) | $ | 4,741 | $ | (1,116 | ) | $ | (1,676 | ) |
Bank of America 2013 253 |
Reconciliation of Income Tax Expense (Benefit) | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(Dollars in millions) | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||
Expected U.S. federal income tax expense (benefit) | $ | 5,660 | 35.0 | % | $ | 1,075 | 35.0 | % | $ | (81 | ) | 35.0 | % | |||||||
Increase (decrease) in taxes resulting from: | (0.001 | )% | (0.001 | )% | (0.001 | )% | ||||||||||||||
State tax expense (benefit), net of federal effect | 450 | 2.8 | 349 | 11.4 | (124 | ) | ||||||||||||||
Non-U.S. tax differential (1) | (940 | ) | (5.8 | ) | (1,968 | ) | (64.1 | ) | (383 | ) | ||||||||||
Affordable housing credits/other credits | (863 | ) | (5.3 | ) | (783 | ) | (25.5 | ) | (800 | ) | ||||||||||
Tax-exempt income, including dividends | (524 | ) | (3.2 | ) | (576 | ) | (18.8 | ) | (614 | ) | ||||||||||
Changes in prior period UTBs, including interest | (255 | ) | (1.6 | ) | (198 | ) | (6.4 | ) | (239 | ) | ||||||||||
Non-U.S. statutory rate reductions | 1,133 | 7.0 | 788 | 25.7 | 860 | |||||||||||||||
Nondeductible expenses | 52 | 0.3 | 231 | 7.5 | 119 | |||||||||||||||
Goodwill – impairment and other goodwill impacts | 52 | 0.3 | — | — | 1,420 | |||||||||||||||
Change in federal and non-U.S. valuation allowances | 26 | 0.2 | 41 | 1.3 | (1,102 | ) | ||||||||||||||
Leveraged lease tax differential | 26 | 0.2 | 83 | 2.7 | 121 | |||||||||||||||
Subsidiary sales and liquidations | — | — | — | — | (823 | ) | ||||||||||||||
Other | (76 | ) | (0.6 | ) | (158 | ) | (5.1 | ) | (30 | ) | ||||||||||
Total income tax expense (benefit) | $ | 4,741 | 29.3 | % | $ | (1,116 | ) | (36.3 | )% | $ | (1,676 | ) | n/m |
(1) | Includes in 2012, $1.7 billion income tax benefit attributable to the excess of foreign tax credits recognized in the U.S. upon repatriation of the earnings of certain non-U.S. subsidiaries over the related U.S. tax liability. |
Reconciliation of the Change in Unrecognized Tax Benefits | |||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | ||||||||
Balance, January 1 | $ | 3,677 | $ | 4,203 | $ | 5,169 | |||||
Increases related to positions taken during the current year | 98 | 352 | 219 | ||||||||
Increases related to positions taken during prior years (1) | 254 | 142 | 879 | ||||||||
Decreases related to positions taken during prior years (1) | (508 | ) | (711 | ) | (1,669 | ) | |||||
Settlements | (448 | ) | (205 | ) | (277 | ) | |||||
Expiration of statute of limitations | (5 | ) | (104 | ) | (118 | ) | |||||
Balance, December 31 | $ | 3,068 | $ | 3,677 | $ | 4,203 |
(1) | The sum per year of positions taken during prior years differs from the $255 million, $198 million and $239 million in the Reconciliation of Income Tax Expense (Benefit) table due to temporary items and jurisdictional offsets, as well as the inclusion of interest in the Reconciliation of Income Tax Expense (Benefit) table. |
Tax Examination Status | |||
Years under Examination | Status at December 31 2013 | ||
Bank of America Corporation – U.S. | 2005 – 2009 | See below | |
Bank of America Corporation – U.S. | 2010 – 2011 | Field examination | |
Bank of America Corporation – New York (1) | 2004 – 2008 | Field examination | |
Merrill Lynch – U.S. | 2004 – 2008 | See below | |
Various – U.K. | 2012 | Field examination |
(1) | All tax years subsequent to the years shown remain open to examination. |
254 Bank of America 2013 |
Deferred Tax Assets and Liabilities | |||||||
December 31 | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Deferred tax assets | |||||||
Net operating loss carryforwards | $ | 10,967 | $ | 13,863 | |||
Tax credit carryforwards | 9,689 | 9,529 | |||||
Accrued expenses | 6,749 | 8,099 | |||||
Allowance for credit losses | 6,100 | 8,463 | |||||
Security, loan and debt valuations | 4,264 | 2,712 | |||||
Employee compensation and retirement benefits | 2,729 | 4,612 | |||||
State income taxes | 2,643 | 2,766 | |||||
Available-for-sale securities | 1,918 | — | |||||
Other | 722 | 725 | |||||
Gross deferred tax assets | 45,781 | 50,769 | |||||
Valuation allowance | (1,940 | ) | (2,211 | ) | |||
Total deferred tax assets, net of valuation allowance | 43,841 | 48,558 | |||||
Deferred tax liabilities | |||||||
Equipment lease financing | 3,106 | 3,371 | |||||
Long-term borrowings | 3,033 | 3,215 | |||||
Mortgage servicing rights | 1,547 | 1,986 | |||||
Intangibles | 1,529 | 1,708 | |||||
Fee income | 798 | 901 | |||||
Available-for-sale securities | — | 2,877 | |||||
Other | 1,472 | 1,462 | |||||
Gross deferred tax liabilities | 11,485 | 15,520 | |||||
Net deferred tax assets | $ | 32,356 | $ | 33,038 |
Net Operating Loss and Tax Credit Carryforwards | |||||||||||||
(Dollars in millions) | Deferred Tax Asset | Valuation Allowance | Net Deferred Tax Asset | First Year Expiring | |||||||||
Net operating losses – U.S. | $ | 3,061 | $ | — | $ | 3,061 | After 2027 | ||||||
Net operating losses – U.K. | 7,417 | — | 7,417 | None (1) | |||||||||
Net operating losses – other non-U.S. | 489 | (366 | ) | 123 | Various | ||||||||
Net operating losses – U.S. states (2) | 2,039 | (1,025 | ) | 1,014 | Various | ||||||||
General business credits | 4,034 | — | 4,034 | After 2027 | |||||||||
Foreign tax credits | 5,655 | (271 | ) | 5,384 | After 2017 |
(1) | The U.K. net operating losses may be carried forward indefinitely. |
(2) | The net operating losses and related valuation allowances for U.S. states before considering the benefit of federal deductions were $3.1 billion and $1.6 billion. |
Bank of America 2013 255 |
256 Bank of America 2013 |
Bank of America 2013 257 |
December 31, 2013 | |||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||
(Dollars in millions) | Level 1 (1) | Level 2 (1) | Level 3 | Netting Adjustments (2) | Assets/Liabilities at Fair Value | ||||||||||||||
Assets | |||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | $ | — | $ | 75,614 | $ | — | $ | — | $ | 75,614 | |||||||||
Trading account assets: | |||||||||||||||||||
U.S. government and agency securities (3) | 34,222 | 14,625 | — | — | 48,847 | ||||||||||||||
Corporate securities, trading loans and other | 1,147 | 27,746 | 3,559 | — | 32,452 | ||||||||||||||
Equity securities | 41,324 | 22,741 | 386 | — | 64,451 | ||||||||||||||
Non-U.S. sovereign debt | 24,357 | 12,399 | 468 | — | 37,224 | ||||||||||||||
Mortgage trading loans and ABS | — | 13,388 | 4,631 | — | 18,019 | ||||||||||||||
Total trading account assets | 101,050 | 90,899 | 9,044 | — | 200,993 | ||||||||||||||
Derivative assets (4) | 2,374 | 910,602 | 7,277 | (872,758 | ) | 47,495 | |||||||||||||
AFS debt securities: | |||||||||||||||||||
U.S. Treasury and agency securities | 6,591 | 2,363 | — | — | 8,954 | ||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||
Agency | — | 164,935 | — | — | 164,935 | ||||||||||||||
Agency-collateralized mortgage obligations | — | 22,492 | — | — | 22,492 | ||||||||||||||
Non-agency residential | — | 6,239 | — | — | 6,239 | ||||||||||||||
Commercial | — | 2,480 | — | — | 2,480 | ||||||||||||||
Non-U.S. securities | 3,698 | 3,415 | 107 | — | 7,220 | ||||||||||||||
Corporate/Agency bonds | — | 873 | — | — | 873 | ||||||||||||||
Other taxable securities | 20 | 12,963 | 3,847 | — | 16,830 | ||||||||||||||
Tax-exempt securities | — | 5,122 | 806 | — | 5,928 | ||||||||||||||
Total AFS debt securities | 10,309 | 220,882 | 4,760 | — | 235,951 | ||||||||||||||
Other debt securities carried at fair value: | |||||||||||||||||||
U.S. Treasury and agency securities | 4,062 | — | — | — | 4,062 | ||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||
Agency | — | 16,500 | — | — | 16,500 | ||||||||||||||
Agency-collateralized mortgage obligations | — | 218 | — | — | 218 | ||||||||||||||
Commercial | — | 749 | — | — | 749 | ||||||||||||||
Non-U.S. securities | 7,457 | 3,858 | — | — | 11,315 | ||||||||||||||
Total other debt securities carried at fair value | 11,519 | 21,325 | — | — | 32,844 | ||||||||||||||
Loans and leases | — | 6,985 | 3,057 | — | 10,042 | ||||||||||||||
Mortgage servicing rights | — | — | 5,042 | — | 5,042 | ||||||||||||||
Loans held-for-sale | — | 5,727 | 929 | — | 6,656 | ||||||||||||||
Other assets | 14,474 | 1,912 | 1,669 | — | 18,055 | ||||||||||||||
Total assets | $ | 139,726 | $ | 1,333,946 | $ | 31,778 | $ | (872,758 | ) | $ | 632,692 | ||||||||
Liabilities | |||||||||||||||||||
Interest-bearing deposits in U.S. offices | $ | — | $ | 1,899 | $ | — | $ | — | $ | 1,899 | |||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | — | 33,684 | — | — | 33,684 | ||||||||||||||
Trading account liabilities: | |||||||||||||||||||
U.S. government and agency securities | 26,915 | 348 | — | — | 27,263 | ||||||||||||||
Equity securities | 23,874 | 3,711 | — | — | 27,585 | ||||||||||||||
Non-U.S. sovereign debt | 20,755 | 1,387 | — | — | 22,142 | ||||||||||||||
Corporate securities and other | 518 | 5,926 | 35 | — | 6,479 | ||||||||||||||
Total trading account liabilities | 72,062 | 11,372 | 35 | — | 83,469 | ||||||||||||||
Derivative liabilities (4) | 1,968 | 897,107 | 7,301 | (868,969 | ) | 37,407 | |||||||||||||
Short-term borrowings | — | 1,520 | — | — | 1,520 | ||||||||||||||
Accrued expenses and other liabilities | 10,130 | 1,093 | 10 | — | 11,233 | ||||||||||||||
Long-term debt | — | 45,045 | 1,990 | — | 47,035 | ||||||||||||||
Total liabilities | $ | 84,160 | $ | 991,720 | $ | 9,336 | $ | (868,969 | ) | $ | 216,247 |
(1) | During 2013, $500 million of other assets were transferred from Level 1 to Level 2 primarily due to a restriction that became effective for a private equity investment that was subsequently sold once the restriction was lifted. |
(2) | Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties. |
(3) | Includes $17.2 billion of government-sponsored enterprise obligations. |
(4) | For further disaggregation of derivative assets and liabilities, see Note 2 – Derivatives. |
258 Bank of America 2013 |
December 31, 2012 | |||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||
(Dollars in millions) | Level 1 (1) | Level 2 (1) | Level 3 | Netting Adjustments (2) | Assets/Liabilities at Fair Value | ||||||||||||||
Assets | |||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | $ | — | $ | 98,670 | $ | — | $ | — | $ | 98,670 | |||||||||
Trading account assets: | |||||||||||||||||||
U.S. government and agency securities (3) | 57,655 | 29,319 | — | — | 86,974 | ||||||||||||||
Corporate securities, trading loans and other | 1,292 | 32,882 | 3,726 | — | 37,900 | ||||||||||||||
Equity securities | 28,144 | 14,626 | 545 | — | 43,315 | ||||||||||||||
Non-U.S. sovereign debt | 29,254 | 13,139 | 353 | — | 42,746 | ||||||||||||||
Mortgage trading loans and ABS | — | 11,905 | 4,935 | — | 16,840 | ||||||||||||||
Total trading account assets | 116,345 | 101,871 | 9,559 | — | 227,775 | ||||||||||||||
Derivative assets (4) | 2,997 | 1,372,398 | 8,073 | (1,329,971 | ) | 53,497 | |||||||||||||
AFS debt securities: | |||||||||||||||||||
U.S. Treasury and agency securities | 21,514 | 2,958 | — | — | 24,472 | ||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||
Agency | — | 188,149 | — | — | 188,149 | ||||||||||||||
Agency-collateralized mortgage obligations | — | 37,538 | — | — | 37,538 | ||||||||||||||
Non-agency residential | — | 9,494 | — | — | 9,494 | ||||||||||||||
Non-agency commercial | — | 3,914 | 10 | — | 3,924 | ||||||||||||||
Non-U.S. securities | 2,637 | 2,981 | — | — | 5,618 | ||||||||||||||
Corporate/Agency bonds | — | 1,358 | 92 | — | 1,450 | ||||||||||||||
Other taxable securities | 20 | 8,180 | 3,928 | — | 12,128 | ||||||||||||||
Tax-exempt securities | — | 3,072 | 1,061 | — | 4,133 | ||||||||||||||
Total AFS debt securities | 24,171 | 257,644 | 5,091 | — | 286,906 | ||||||||||||||
Other debt securities carried at fair value: | |||||||||||||||||||
U.S. Treasury and agency securities | 491 | — | — | — | 491 | ||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||
Agency | — | 13,073 | — | — | 13,073 | ||||||||||||||
Agency-collateralized mortgage obligations | — | 929 | — | — | 929 | ||||||||||||||
Non-U.S. securities | 9,151 | 300 | — | — | 9,451 | ||||||||||||||
Total other debt securities carried at fair value | 9,642 | 14,302 | — | — | 23,944 | ||||||||||||||
Loans and leases | — | 6,715 | 2,287 | — | 9,002 | ||||||||||||||
Mortgage servicing rights | — | — | 5,716 | — | 5,716 | ||||||||||||||
Loans held-for-sale | — | 8,926 | 2,733 | — | 11,659 | ||||||||||||||
Other assets | 18,535 | 4,826 | 3,129 | — | 26,490 | ||||||||||||||
Total assets | $ | 171,690 | $ | 1,865,352 | $ | 36,588 | $ | (1,329,971 | ) | $ | 743,659 | ||||||||
Liabilities | |||||||||||||||||||
Interest-bearing deposits in U.S. offices | $ | — | $ | 2,262 | $ | — | $ | — | $ | 2,262 | |||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | — | 42,639 | — | — | 42,639 | ||||||||||||||
Trading account liabilities: | |||||||||||||||||||
U.S. government and agency securities | 22,351 | 1,079 | — | — | 23,430 | ||||||||||||||
Equity securities | 19,852 | 2,640 | — | — | 22,492 | ||||||||||||||
Non-U.S. sovereign debt | 18,875 | 1,369 | — | — | 20,244 | ||||||||||||||
Corporate securities and other | 487 | 6,870 | 64 | — | 7,421 | ||||||||||||||
Total trading account liabilities | 61,565 | 11,958 | 64 | — | 73,587 | ||||||||||||||
Derivative liabilities (4) | 2,859 | 1,355,309 | 6,605 | (1,318,757 | ) | 46,016 | |||||||||||||
Short-term borrowings | — | 4,074 | — | — | 4,074 | ||||||||||||||
Accrued expenses and other liabilities | 15,457 | 1,122 | 15 | — | 16,594 | ||||||||||||||
Long-term debt | — | 46,860 | 2,301 | — | 49,161 | ||||||||||||||
Total liabilities | $ | 79,881 | $ | 1,464,224 | $ | 8,985 | $ | (1,318,757 | ) | $ | 234,333 |
(1) | During 2012, $2.0 billion and $350 million of assets and liabilities were transferred from Level 1 to Level 2, and $785 million and $40 million of assets and liabilities were transferred from Level 2 to Level 1. Of the asset transfers from Level 1 to Level 2, $940 million was due to a restriction that became effective for a private equity investment during 2012, while $535 million of the transfers from Level 2 to Level 1 was due to the lapse of this restriction during 2012. The remaining transfers were the result of additional information associated with certain equities, derivative contracts and private equity investments. |
(2) | Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties. |
(3) | Includes $30.6 billion of government-sponsored enterprise obligations. |
(4) | For further disaggregation of derivative assets and liabilities, see Note 2 – Derivatives. |
Bank of America 2013 259 |
Level 3 – Fair Value Measurements (1) | ||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||
Gross | ||||||||||||||||||||||||||||||
(Dollars in millions) | Balance January 1 2013 | Gains (Losses) in Earnings | Gains (Losses) in OCI | Purchases | Sales | Issuances | Settlements | Gross Transfers into Level 3 | Gross Transfers out of Level 3 | Balance December 31 2013 | ||||||||||||||||||||
Trading account assets: | ||||||||||||||||||||||||||||||
Corporate securities, trading loans and other | $ | 3,726 | $ | 242 | $ | — | $ | 3,848 | $ | (3,110 | ) | $ | 59 | $ | (651 | ) | $ | 890 | $ | (1,445 | ) | $ | 3,559 | |||||||
Equity securities | 545 | 74 | — | 96 | (175 | ) | — | (100 | ) | 70 | (124 | ) | 386 | |||||||||||||||||
Non-U.S. sovereign debt | 353 | 50 | — | 122 | (18 | ) | — | (36 | ) | 2 | (5 | ) | 468 | |||||||||||||||||
Mortgage trading loans and ABS | 4,935 | 53 | — | 2,514 | (1,993 | ) | — | (868 | ) | 20 | (30 | ) | 4,631 | |||||||||||||||||
Total trading account assets | 9,559 | 419 | — | 6,580 | (5,296 | ) | 59 | (1,655 | ) | 982 | (1,604 | ) | 9,044 | |||||||||||||||||
Net derivative assets (2) | 1,468 | (297 | ) | — | 824 | (1,274 | ) | — | (1,362 | ) | (10 | ) | 627 | (24 | ) | |||||||||||||||
AFS debt securities: | ||||||||||||||||||||||||||||||
Commercial MBS | 10 | — | — | — | — | — | (10 | ) | — | — | — | |||||||||||||||||||
Non-U.S. securities | — | 5 | 2 | 1 | (1 | ) | — | — | 100 | — | 107 | |||||||||||||||||||
Corporate/Agency bonds | 92 | — | 4 | — | — | — | — | — | (96 | ) | — | |||||||||||||||||||
Other taxable securities | 3,928 | 9 | 15 | 1,055 | — | — | (1,155 | ) | — | (5 | ) | 3,847 | ||||||||||||||||||
Tax-exempt securities | 1,061 | 3 | 19 | — | — | — | (109 | ) | — | (168 | ) | 806 | ||||||||||||||||||
Total AFS debt securities | 5,091 | 17 | 40 | 1,056 | (1 | ) | — | (1,274 | ) | 100 | (269 | ) | 4,760 | |||||||||||||||||
Loans and leases (3, 4) | 2,287 | 98 | — | 310 | (128 | ) | 1,252 | (757 | ) | 19 | (24 | ) | 3,057 | |||||||||||||||||
Mortgage servicing rights (4) | 5,716 | 1,941 | — | — | (2,044 | ) | 472 | (1,043 | ) | — | — | 5,042 | ||||||||||||||||||
Loans held-for-sale (3) | 2,733 | 62 | — | 8 | (402 | ) | 4 | (1,507 | ) | 34 | (3 | ) | 929 | |||||||||||||||||
Other assets (5) | 3,129 | (288 | ) | — | 46 | (383 | ) | — | (1,019 | ) | 239 | (55 | ) | 1,669 | ||||||||||||||||
Trading account liabilities – Corporate securities and other | (64 | ) | 10 | — | 43 | (54 | ) | (5 | ) | — | (9 | ) | 44 | (35 | ) | |||||||||||||||
Accrued expenses and other liabilities (3) | (15 | ) | 30 | — | — | — | (751 | ) | 724 | (1 | ) | 3 | (10 | ) | ||||||||||||||||
Long-term debt (3) | (2,301 | ) | 13 | — | 358 | (4 | ) | (172 | ) | 258 | (1,331 | ) | 1,189 | (1,990 | ) |
(1) | Assets (liabilities). For assets, increase (decrease) to Level 3 and for liabilities, (increase) decrease to Level 3. |
(2) | Net derivatives include derivative assets of $7.3 billion and derivative liabilities of $7.3 billion. |
(3) | Amounts represent instruments that are accounted for under the fair value option. |
(4) | Issuances represent loan originations and mortgage servicing rights retained following securitizations or whole-loan sales. |
(5) | Other assets is primarily comprised of private equity investments and certain long-term fixed-rate margin loans that are accounted for under the fair value option. |
260 Bank of America 2013 |
Level 3 – Fair Value Measurements (1) | ||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||
Gross | ||||||||||||||||||||||||||||||
(Dollars in millions) | Balance January 1 2012 | Gains (Losses) in Earnings | Gains (Losses) in OCI | Purchases | Sales | Issuances | Settlements | Gross Transfers into Level 3 | Gross Transfers out of Level 3 | Balance December 31 2012 | ||||||||||||||||||||
Trading account assets: | ||||||||||||||||||||||||||||||
Corporate securities, trading loans and other (2) | $ | 6,880 | $ | 195 | $ | — | $ | 2,798 | $ | (4,556 | ) | $ | — | $ | (1,077 | ) | $ | 436 | $ | (950 | ) | $ | 3,726 | |||||||
Equity securities | 544 | 31 | — | 201 | (271 | ) | — | 27 | 90 | (77 | ) | 545 | ||||||||||||||||||
Non-U.S. sovereign debt | 342 | 8 | — | 388 | (359 | ) | — | (5 | ) | — | (21 | ) | 353 | |||||||||||||||||
Mortgage trading loans and ABS (2) | 3,689 | 215 | — | 2,574 | (1,536 | ) | — | (678 | ) | 844 | (173 | ) | 4,935 | |||||||||||||||||
Total trading account assets | 11,455 | 449 | — | 5,961 | (6,722 | ) | — | (1,733 | ) | 1,370 | (1,221 | ) | 9,559 | |||||||||||||||||
Net derivative assets (3) | 5,866 | (221 | ) | — | 893 | (1,012 | ) | — | (3,328 | ) | (269 | ) | (461 | ) | 1,468 | |||||||||||||||
AFS debt securities: | ||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||
Agency | 37 | — | — | — | — | — | (4 | ) | — | (33 | ) | — | ||||||||||||||||||
Non-agency residential | 860 | (69 | ) | 19 | — | (306 | ) | — | (2 | ) | — | (502 | ) | — | ||||||||||||||||
Non-agency commercial | 40 | — | — | — | (24 | ) | — | (6 | ) | — | — | 10 | ||||||||||||||||||
Corporate/Agency bonds | 162 | (2 | ) | — | (2 | ) | — | — | (39 | ) | — | (27 | ) | 92 | ||||||||||||||||
Other taxable securities | 4,265 | 23 | 26 | 3,196 | (28 | ) | — | (3,345 | ) | — | (209 | ) | 3,928 | |||||||||||||||||
Tax-exempt securities | 2,648 | 61 | 20 | — | (133 | ) | — | (1,535 | ) | — | — | 1,061 | ||||||||||||||||||
Total AFS debt securities | 8,012 | 13 | 65 | 3,194 | (491 | ) | — | (4,931 | ) | — | (771 | ) | 5,091 | |||||||||||||||||
Loans and leases (4, 5) | 2,744 | 334 | — | 564 | (1,520 | ) | — | (274 | ) | 450 | (11 | ) | 2,287 | |||||||||||||||||
Mortgage servicing rights (5) | 7,378 | (430 | ) | — | — | (122 | ) | 374 | (1,484 | ) | — | — | 5,716 | |||||||||||||||||
Loans held-for-sale (4) | 3,387 | 352 | — | 794 | (834 | ) | — | (414 | ) | 80 | (632 | ) | 2,733 | |||||||||||||||||
Other assets (6) | 4,235 | (54 | ) | — | 109 | (1,039 | ) | 270 | (381 | ) | — | (11 | ) | 3,129 | ||||||||||||||||
Trading account liabilities – Corporate securities and other | (114 | ) | 4 | — | 116 | (136 | ) | — | 80 | (68 | ) | 54 | (64 | ) | ||||||||||||||||
Short-term borrowings (4) | — | — | — | — | — | (232 | ) | 232 | — | — | — | |||||||||||||||||||
Accrued expenses and other liabilities (4) | (14 | ) | (4 | ) | — | 8 | — | (9 | ) | — | — | 4 | (15 | ) | ||||||||||||||||
Long-term debt (4) | (2,943 | ) | (307 | ) | — | 290 | (33 | ) | (259 | ) | 1,239 | (2,040 | ) | 1,752 | (2,301 | ) |
(1) | Assets (liabilities). For assets, increase (decrease) to Level 3 and for liabilities, (increase) decrease to Level 3. |
(2) | During 2012, approximately $900 million was reclassified from Trading account assets – Corporate securities, trading loans and other to Trading account assets – Mortgage trading loans and ABS. In the table above, this reclassification is presented as a sale of Trading account assets – Corporate securities, trading loans and other and as a purchase of Trading account assets – Mortgage trading loans and ABS. |
(3) | Net derivatives include derivative assets of $8.1 billion and derivative liabilities of $6.6 billion. |
(4) | Amounts represent instruments that are accounted for under the fair value option. |
(5) | Issuances represent loan originations and mortgage servicing rights retained following securitizations or whole-loan sales. |
(6) | Other assets is primarily comprised of net monoline exposure to a single counterparty and private equity investments. |
Bank of America 2013 261 |
Level 3 – Fair Value Measurements (1) | |||||||||||||||||||||||||||||||||
2011 | |||||||||||||||||||||||||||||||||
Gross | |||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance January 1 2011 | Consolidation of VIEs | Gains (Losses) in Earnings | Gains (Losses) in OCI | Purchases | Sales | Issuances | Settlements | Gross Transfers into Level 3 | Gross Transfers out of Level 3 | Balance December 31 2011 | ||||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||||||||||||||
Corporate securities, trading loans and other | $ | 7,751 | $ | — | $ | 490 | $ | — | $ | 5,683 | $ | (6,664 | ) | $ | — | $ | (1,362 | ) | $ | 1,695 | $ | (713 | ) | $ | 6,880 | ||||||||
Equity securities | 557 | — | 49 | — | 335 | (362 | ) | — | (140 | ) | 132 | (27 | ) | 544 | |||||||||||||||||||
Non-U.S. sovereign debt | 243 | — | 87 | — | 188 | (137 | ) | — | (3 | ) | 8 | (44 | ) | 342 | |||||||||||||||||||
Mortgage trading loans and ABS | 6,908 | — | 442 | — | 2,222 | (4,713 | ) | — | (440 | ) | 75 | (805 | ) | 3,689 | |||||||||||||||||||
Total trading account assets | 15,459 | — | 1,068 | — | 8,428 | (11,876 | ) | — | (1,945 | ) | 1,910 | (1,589 | ) | 11,455 | |||||||||||||||||||
Net derivative assets (2) | 7,745 | — | 5,199 | — | 1,235 | (1,553 | ) | — | (7,779 | ) | 1,199 | (180 | ) | 5,866 | |||||||||||||||||||
AFS debt securities: | |||||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||
Agency | 4 | — | — | — | 14 | (11 | ) | — | — | 34 | (4 | ) | 37 | ||||||||||||||||||||
Agency collateralized-mortgage obligations | — | — | — | — | 56 | (56 | ) | — | — | — | — | — | |||||||||||||||||||||
Non-agency residential | 1,468 | — | (158 | ) | 41 | 11 | (307 | ) | — | (568 | ) | 373 | — | 860 | |||||||||||||||||||
Non-agency commercial | 19 | — | — | — | 15 | — | — | — | 6 | — | 40 | ||||||||||||||||||||||
Non-U.S. securities | 3 | — | — | — | — | — | — | — | 88 | (91 | ) | — | |||||||||||||||||||||
Corporate/Agency bonds | 137 | — | (12 | ) | (8 | ) | 304 | (17 | ) | — | — | 7 | (249 | ) | 162 | ||||||||||||||||||
Other taxable securities | 13,018 | — | 26 | 21 | 3,876 | (2,245 | ) | — | (5,112 | ) | 2 | (5,321 | ) | 4,265 | |||||||||||||||||||
Tax-exempt securities | 1,224 | — | 21 | (35 | ) | 2,862 | (92 | ) | — | (697 | ) | 38 | (673 | ) | 2,648 | ||||||||||||||||||
Total AFS debt securities | 15,873 | — | (123 | ) | 19 | 7,138 | (2,728 | ) | — | (6,377 | ) | 548 | (6,338 | ) | 8,012 | ||||||||||||||||||
Loans and leases (3, 4) | 3,321 | 5,194 | (55 | ) | — | 21 | (2,644 | ) | 3,118 | (1,830 | ) | 5 | (4,386 | ) | 2,744 | ||||||||||||||||||
Mortgage servicing rights (4) | 14,900 | — | (5,661 | ) | — | — | (896 | ) | 1,656 | (2,621 | ) | — | — | 7,378 | |||||||||||||||||||
Loans held-for-sale (3) | 4,140 | — | 36 | — | 157 | (483 | ) | — | (961 | ) | 565 | (67 | ) | 3,387 | |||||||||||||||||||
Other assets (5) | 6,922 | — | 140 | — | 1,932 | (2,391 | ) | — | (768 | ) | 375 | (1,975 | ) | 4,235 | |||||||||||||||||||
Trading account liabilities – Corporate securities and other | (7 | ) | — | 4 | — | 133 | (189 | ) | — | — | (65 | ) | 10 | (114 | ) | ||||||||||||||||||
Short-term borrowings (3) | (706 | ) | — | (30 | ) | — | — | — | — | 86 | — | 650 | — | ||||||||||||||||||||
Accrued expenses and other liabilities (3) | (828 | ) | — | 61 | — | — | (2 | ) | (9 | ) | 3 | — | 761 | (14 | ) | ||||||||||||||||||
Long-term debt (3) | (2,986 | ) | — | (188 | ) | — | 520 | (72 | ) | (520 | ) | 838 | (2,111 | ) | 1,576 | (2,943 | ) |
(1) | Assets (liabilities). For assets, increase (decrease) to Level 3 and for liabilities, (increase) decrease to Level 3. |
(2) | Net derivatives include derivative assets of $14.4 billion and derivative liabilities of $8.5 billion. |
(3) | Amounts represent instruments that are accounted for under the fair value option. |
(4) | Issuances represent loan originations and mortgage servicing rights retained following securitizations or whole-loan sales. |
(5) | Other assets is primarily comprised of net monoline exposure to a single counterparty and private equity investments. |
262 Bank of America 2013 |
Level 3 – Total Realized and Unrealized Gains (Losses) Included in Earnings | |||||||||||||||
2013 | |||||||||||||||
(Dollars in millions) | Trading Account Profits (Losses) | Mortgage Banking Income (Loss) (1) | Other (2) | Total | |||||||||||
Trading account assets: | |||||||||||||||
Corporate securities, trading loans and other | $ | 242 | $ | — | $ | — | $ | 242 | |||||||
Equity securities | 74 | — | — | 74 | |||||||||||
Non-U.S. sovereign debt | 50 | — | — | 50 | |||||||||||
Mortgage trading loans and ABS | 53 | — | — | 53 | |||||||||||
Total trading account assets | 419 | — | — | 419 | |||||||||||
Net derivative assets | (1,224 | ) | 927 | — | (297 | ) | |||||||||
AFS debt securities: | |||||||||||||||
Non-U.S. securities | — | — | 5 | 5 | |||||||||||
Other taxable securities | — | — | 9 | 9 | |||||||||||
Tax-exempt securities | — | — | 3 | 3 | |||||||||||
Total AFS debt securities | — | — | 17 | 17 | |||||||||||
Loans and leases (3) | — | (38 | ) | 136 | 98 | ||||||||||
Mortgage servicing rights | — | 1,941 | — | 1,941 | |||||||||||
Loans held-for-sale (3) | — | 2 | 60 | 62 | |||||||||||
Other assets | — | 122 | (410 | ) | (288 | ) | |||||||||
Trading account liabilities – Corporate securities and other | 10 | — | — | 10 | |||||||||||
Accrued expenses and other liabilities (3) | — | 30 | — | 30 | |||||||||||
Long-term debt (3) | 45 | — | (32 | ) | 13 | ||||||||||
Total | $ | (750 | ) | $ | 2,984 | $ | (229 | ) | $ | 2,005 | |||||
2012 | |||||||||||||||
Trading account assets: | |||||||||||||||
Corporate securities, trading loans and other | $ | 195 | $ | — | $ | — | $ | 195 | |||||||
Equity securities | 31 | — | — | 31 | |||||||||||
Non-U.S. sovereign debt | 8 | — | — | 8 | |||||||||||
Mortgage trading loans and ABS | 215 | — | — | 215 | |||||||||||
Total trading account assets | 449 | — | — | 449 | |||||||||||
Net derivative assets | (3,208 | ) | 2,987 | — | (221 | ) | |||||||||
AFS debt securities: | |||||||||||||||
Non-agency residential MBS | — | — | (69 | ) | (69 | ) | |||||||||
Corporate/Agency bonds | — | — | (2 | ) | (2 | ) | |||||||||
Other taxable securities | 2 | — | 21 | 23 | |||||||||||
Tax-exempt securities | — | — | 61 | 61 | |||||||||||
Total AFS debt securities | 2 | — | 11 | 13 | |||||||||||
Loans and leases (3) | — | — | 334 | 334 | |||||||||||
Mortgage servicing rights | — | (430 | ) | — | (430 | ) | |||||||||
Loans held-for-sale (3) | — | 148 | 204 | 352 | |||||||||||
Other assets | — | (74 | ) | 20 | (54 | ) | |||||||||
Trading account liabilities – Corporate securities and other | 4 | — | — | 4 | |||||||||||
Accrued expenses and other liabilities (3) | — | — | (4 | ) | (4 | ) | |||||||||
Long-term debt (3) | (133 | ) | — | (174 | ) | (307 | ) | ||||||||
Total | $ | (2,886 | ) | $ | 2,631 | $ | 391 | $ | 136 |
(1) | Mortgage banking income (loss) does not reflect the impact of Level 1 and Level 2 hedges on MSRs. |
(2) | Amounts included are primarily recorded in other income (loss). Equity investment gains of $84 million and $97 million recorded on other assets were also included for 2013 and 2012. |
(3) | Amounts represent instruments that are accounted for under the fair value option. |
Bank of America 2013 263 |
Level 3 – Total Realized and Unrealized Gains (Losses) Included in Earnings (continued) | |||||||||||||||
2011 | |||||||||||||||
(Dollars in millions) | Trading Account Profits (Losses) | Mortgage Banking Income (Loss) (1) | Other (2) | Total | |||||||||||
Trading account assets: | |||||||||||||||
Corporate securities, trading loans and other | $ | 490 | $ | — | $ | — | $ | 490 | |||||||
Equity securities | 49 | — | — | 49 | |||||||||||
Non-U.S. sovereign debt | 87 | — | — | 87 | |||||||||||
Mortgage trading loans and ABS | 442 | — | — | 442 | |||||||||||
Total trading account assets | 1,068 | — | — | 1,068 | |||||||||||
Net derivative assets | 1,516 | 3,683 | — | 5,199 | |||||||||||
AFS debt securities: | |||||||||||||||
Non-agency residential MBS | — | — | (158 | ) | (158 | ) | |||||||||
Corporate/Agency bonds | — | — | (12 | ) | (12 | ) | |||||||||
Other taxable securities | 16 | — | 10 | 26 | |||||||||||
Tax-exempt securities | (3 | ) | — | 24 | 21 | ||||||||||
Total AFS debt securities | 13 | — | (136 | ) | (123 | ) | |||||||||
Loans and leases (3) | — | (13 | ) | (42 | ) | (55 | ) | ||||||||
Mortgage servicing rights | — | (5,661 | ) | — | (5,661 | ) | |||||||||
Loans held-for-sale (3) | — | (108 | ) | 144 | 36 | ||||||||||
Other assets | — | (51 | ) | 191 | 140 | ||||||||||
Trading account liabilities – Corporate securities and other | 4 | — | — | 4 | |||||||||||
Short-term borrowings (3) | — | (30 | ) | — | (30 | ) | |||||||||
Accrued expenses and other liabilities (3) | (10 | ) | 71 | — | 61 | ||||||||||
Long-term debt (3) | (106 | ) | — | (82 | ) | (188 | ) | ||||||||
Total | $ | 2,485 | $ | (2,109 | ) | $ | 75 | $ | 451 |
(1) | Mortgage banking income (loss) does not reflect the impact of Level 1 and Level 2 hedges on MSRs. |
(2) | Amounts included are primarily recorded in other income (loss). Equity investment gains of $242 million recorded on other assets were also included for 2011. |
(3) | Amounts represent instruments that are accounted for under the fair value option. |
264 Bank of America 2013 |
Level 3 – Changes in Unrealized Gains (Losses) Relating to Assets and Liabilities Still Held at Reporting Date | |||||||||||||||
2013 | |||||||||||||||
(Dollars in millions) | Trading Account Profits (Losses) | Mortgage Banking Income (Loss) (1) | Other (2) | Total | |||||||||||
Trading account assets: | |||||||||||||||
Corporate securities, trading loans and other | $ | (130 | ) | $ | — | $ | — | $ | (130 | ) | |||||
Equity securities | 40 | — | — | 40 | |||||||||||
Non-U.S. sovereign debt | 80 | — | — | 80 | |||||||||||
Mortgage trading loans and ABS | (174 | ) | — | — | (174 | ) | |||||||||
Total trading account assets | (184 | ) | — | — | (184 | ) | |||||||||
Net derivative assets | (1,375 | ) | 42 | — | (1,333 | ) | |||||||||
Loans and leases (3) | — | (34 | ) | 152 | 118 | ||||||||||
Mortgage servicing rights | — | 1,541 | — | 1,541 | |||||||||||
Loans held-for-sale (3) | — | 6 | 57 | 63 | |||||||||||
Other assets | — | 166 | 14 | 180 | |||||||||||
Long-term debt (3) | (4 | ) | — | (32 | ) | (36 | ) | ||||||||
Total | $ | (1,563 | ) | $ | 1,721 | $ | 191 | $ | 349 | ||||||
2012 | |||||||||||||||
Trading account assets: | |||||||||||||||
Corporate securities, trading loans and other | $ | (19 | ) | $ | — | $ | — | $ | (19 | ) | |||||
Equity securities | 17 | — | — | 17 | |||||||||||
Non-U.S. sovereign debt | 20 | — | — | 20 | |||||||||||
Mortgage trading loans and ABS | 36 | — | — | 36 | |||||||||||
Total trading account assets | 54 | — | — | 54 | |||||||||||
Net derivative assets | (2,782 | ) | 456 | — | (2,326 | ) | |||||||||
AFS debt securities – Other taxable securities | 2 | — | — | 2 | |||||||||||
Loans and leases (3) | — | — | 214 | 214 | |||||||||||
Mortgage servicing rights | — | (1,100 | ) | — | (1,100 | ) | |||||||||
Loans held-for-sale (3) | — | 112 | 168 | 280 | |||||||||||
Other assets | — | (71 | ) | 50 | (21 | ) | |||||||||
Trading account liabilities – Corporate securities and other | 4 | — | — | 4 | |||||||||||
Accrued expenses and other liabilities (3) | — | — | (2 | ) | (2 | ) | |||||||||
Long-term debt (3) | (136 | ) | — | (173 | ) | (309 | ) | ||||||||
Total | $ | (2,858 | ) | $ | (603 | ) | $ | 257 | $ | (3,204 | ) | ||||
2011 | |||||||||||||||
Trading account assets: | |||||||||||||||
Corporate securities, trading loans and other | $ | (86 | ) | $ | — | $ | — | $ | (86 | ) | |||||
Equity securities | (60 | ) | — | — | (60 | ) | |||||||||
Non-U.S. sovereign debt | 101 | — | — | 101 | |||||||||||
Mortgage trading loans and ABS | 30 | — | — | 30 | |||||||||||
Total trading account assets | (15 | ) | — | — | (15 | ) | |||||||||
Net derivative assets | 1,430 | 133 | — | 1,563 | |||||||||||
AFS debt securities: | |||||||||||||||
Non-agency residential MBS | — | — | (195 | ) | (195 | ) | |||||||||
Corporate/Agency bonds | — | — | (14 | ) | (14 | ) | |||||||||
Other taxable securities | — | — | 13 | 13 | |||||||||||
Total AFS debt securities | — | — | (196 | ) | (196 | ) | |||||||||
Loans and leases (3) | — | — | 94 | 94 | |||||||||||
Mortgage servicing rights | — | (6,958 | ) | — | (6,958 | ) | |||||||||
Loans held-for-sale (3) | — | (87 | ) | 5 | (82 | ) | |||||||||
Other assets | — | (53 | ) | (772 | ) | (825 | ) | ||||||||
Trading account liabilities – Corporate securities and other | 3 | — | — | 3 | |||||||||||
Long-term debt (3) | (107 | ) | — | (94 | ) | (201 | ) | ||||||||
Total | $ | 1,311 | $ | (6,965 | ) | $ | (963 | ) | $ | (6,617 | ) |
(1) | Mortgage banking income (loss) does not reflect the impact of Level 1 and Level 2 hedges on MSRs. |
(2) | Amounts included are primarily recorded in other income (loss). Equity investment gains of $60 million and $141 million, and losses of $309 million recorded on other assets were also included for 2013, 2012 and 2011, respectively. |
(3) | Amounts represent instruments that are accounted for under the fair value option. |
Bank of America 2013 265 |
Quantitative Information about Level 3 Fair Value Measurements at December 31, 2013 | ||||||||
(Dollars in millions) | Inputs | |||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted Average | |||
Loans and Securities (1) | ||||||||
Instruments backed by residential real estate assets | $ | 3,443 | Discounted cash flow, Market comparables | Yield | 2% to 25% | 6 | % | |
Trading account assets – Mortgage trading loans and ABS | 363 | Prepayment speed | 0% to 35% CPR | 9 | % | |||
Loans and leases | 2,151 | Default rate | 1% to 20% CDR | 6 | % | |||
Loans held-for-sale | 929 | Loss severity | 21% to 80% | 35 | % | |||
Commercial loans, debt securities and other | $ | 12,135 | Discounted cash flow, Market comparables | Yield | 0% to 45% | 5 | % | |
Trading account assets – Corporate securities, trading loans and other | 3,462 | Enterprise value/EBITDA multiple | 0x to 24x | 7 | x | |||
Trading account assets – Non-U.S. sovereign debt | 468 | Prepayment speed | 5% to 40% | 19 | % | |||
Trading account assets – Mortgage trading loans and ABS | 4,268 | Default rate | 1% to 5% | 4 | % | |||
AFS debt securities – Other taxable securities | 3,031 | Loss severity | 25% to 42% | 36 | % | |||
Loans and leases | 906 | Duration | 1 year to 5 years | 4 years | ||||
Auction rate securities | $ | 1,719 | Discounted cash flow, Market comparables | Projected tender price/Refinancing level | 60% to 100% | 96 | % | |
Trading account assets – Corporate securities, trading loans and other | 97 | |||||||
AFS debt securities – Other taxable securities | 816 | |||||||
AFS debt securities – Tax-exempt securities | 806 | |||||||
Structured liabilities | ||||||||
Long-term debt | $ | (1,990 | ) | Industry standard derivative pricing (2, 3) | Equity correlation | 18% to 98% | 70 | % |
Long-dated volatilities | 4% to 63% | 27 | % | |||||
Correlation (IR/IR) | 24% to 99% | 60 | % | |||||
Long-dated inflation rates | 0% to 3% | 2 | % | |||||
Long-dated inflation volatilities | 0% to 2% | 1 | % | |||||
Net derivatives assets | ||||||||
Credit derivatives | $ | 1,008 | Discounted cash flow, Stochastic recovery correlation model | Yield | 3% to 25% | 14 | % | |
Upfront points | 0 points to 100 points | 63 points | ||||||
Spread to index | -1,407 bps to 1,741 bps | 91 bps | ||||||
Credit correlation | 14% to 99% | 47 | % | |||||
Prepayment speed | 3% to 40% CPR | 13 | % | |||||
Default rate | 1% to 5% CDR | 3 | % | |||||
Loss severity | 20% to 42% | 35 | % | |||||
Equity derivatives | $ | (1,596 | ) | Industry standard derivative pricing (2) | Equity correlation | 18% to 98% | 70 | % |
Long-dated volatilities | 4% to 63% | 27 | % | |||||
Commodity derivatives | $ | 6 | Discounted cash flow, Industry standard derivative pricing (2) | Natural gas forward price | $3/MMBtu to $11/MMBtu | $6/MMBtu | ||
Correlation | 47% to 89% | 81 | % | |||||
Volatilities | 9% to 109% | 30 | % | |||||
Interest rate derivatives | $ | 558 | Industry standard derivative pricing (3) | Correlation (IR/IR) | 24% to 99% | 60 | % | |
Correlation (FX/IR) | -30% to 40% | -4 | % | |||||
Long-dated inflation rates | 0% to 3% | 2 | % | |||||
Long-dated inflation volatilities | 0% to 2% | 1 | % | |||||
Long-dated volatilities (FX) | 0% to 70% | 10 | % | |||||
Total net derivative assets | $ | (24 | ) |
(1) | The categories are aggregated based upon product type which differs from financial statement classification. The following is a reconciliation to the line items in the table on page 260: Trading account assets – Corporate securities, trading loans and other of $3.6 billion, Trading account assets – Non-U.S. sovereign debt of $468 million, Trading account assets – Mortgage trading loans and ABS of $4.6 billion, AFS debt securities – Other taxable securities of $3.8 billion, AFS debt securities – Tax-exempt securities of $806 million, Loans and leases of $3.1 billion and LHFS of $929 million. |
(2) | Includes models such as Monte Carlo simulation and Black-Scholes. |
(3) | Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates. |
266 Bank of America 2013 |
Quantitative Information about Level 3 Fair Value Measurements for Loans, Securities and Structured Liabilities at December 31, 2012 | ||||||||
(Dollars in millions) | Inputs (1) | |||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted Average | |||
Loans and Securities (2) | ||||||||
Instruments backed by residential real estate assets | $ | 4,478 | Discounted cash flow, Market comparables | Yield | 2% to 25% | 6 | % | |
Trading account assets – Mortgage trading loans and ABS | 459 | Prepayment speed | 1% to 30% CPR | 10 | % | |||
Loans and leases | 1,286 | Default rate | 0% to 44% CDR | 6 | % | |||
Loans held-for-sale | 2,733 | Loss severity | 6% to 85% | 43 | % | |||
Instruments backed by commercial real estate assets | $ | 1,910 | Discounted cash flow | Yield | 5% | n/a | ||
Other assets | 1,910 | Loss severity | 51% to 100% | 88 | % | |||
Commercial loans, debt securities and other | $ | 10,778 | Discounted cash flow, Market comparables | Yield | 0% to 25% | 4 | % | |
Trading account assets – Corporate securities, trading loans and other | 2,289 | Enterprise value/EBITDA multiple | 2x to 11x | 5 | x | |||
Trading account assets – Mortgage trading loans and ABS | 4,476 | Prepayment speed | 5% to 30% | 20 | % | |||
AFS debt securities – Other taxable securities | 3,012 | Default rate | 1% to 5% | 4 | % | |||
Loans and leases | 1,001 | Loss severity | 25% to 40% | 35 | % | |||
Auction rate securities | $ | 3,414 | Discounted cash flow, Market comparables | Discount rate | 4% to 5% | 4 | % | |
Trading account assets – Corporate securities, trading loans and other | 1,437 | Projected tender price/Refinancing level | 50% to 100% | 92 | % | |||
AFS debt securities – Other taxable securities | 916 | |||||||
AFS debt securities – Tax-exempt securities | 1,061 | |||||||
Structured liabilities | ||||||||
Long-term debt | $ | (2,301 | ) | Industry standard derivative pricing (3) | Equity correlation | 30% to 97% | n/m | |
Long-dated volatilities | 20% to 70% | n/m |
Quantitative Information about Level 3 Fair Value Measurements for Net Derivative Assets at December 31, 2012 | ||||||
(Dollars in millions) | Inputs (1) | |||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | ||
Net derivatives assets | ||||||
Credit derivatives | $ | 2,327 | Discounted cash flow, Stochastic recovery correlation model | Yield | 2% to 25% | |
Credit spreads | 58 bps to 615 bps | |||||
Upfront points | 25 points to 99 points | |||||
Spread to index | -2,080 bps to 1,972 bps | |||||
Credit correlation | 19% to 75% | |||||
Prepayment speed | 3% to 30% CPR | |||||
Default rate | 0% to 8% CDR | |||||
Loss severity | 25% to 42% | |||||
Equity derivatives | $ | (1,295 | ) | Industry standard derivative pricing (3) | Equity correlation | 30% to 97% |
Long-dated volatilities | 20% to 70% | |||||
Commodity derivatives | $ | (5 | ) | Discounted cash flow | Natural gas forward price | $3/MMBtu to $12/MMBtu |
Interest rate derivatives | $ | 441 | Industry standard derivative pricing (4) | Correlation (IR/IR) | 15% to 99% | |
Correlation (FX/IR) | -65% to 50% | |||||
Long-dated inflation rates | 2% to 3% | |||||
Long--dated inflation volatilities | 0% to 1% | |||||
Long-dated volatilities (FX) | 5% to 36% | |||||
Long-dated swap rates | 8% to 10% | |||||
Total net derivative assets | $ | 1,468 |
(1) | At December 31, 2012, weighted averages were disclosed for all loans and securities. For more information on the ranges of inputs for significant unobservable inputs for structured liabilities and net derivative assets, see the qualitative discussion on page 268. |
(2) | The categories are aggregated based upon product type which differs from financial statement classification. The following is a reconciliation to the line items in the table on page 261: Trading account assets – Corporate securities, trading loans and other of $3.7 billion, Trading account assets – Mortgage trading loans and ABS of $4.9 billion, AFS debt securities – Other taxable securities of $3.9 billion, AFS debt securities – Tax-exempt securities of $1.1 billion, Loans and leases of $2.3 billion, LHFS of $2.7 billion and Other assets of $1.9 billion. |
(3) | Includes models such as Monte Carlo simulation and Black-Scholes. |
(4) | Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates. |
Bank of America 2013 267 |
268 Bank of America 2013 |
Assets Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||
December 31 | |||||||||||||||
2013 | 2012 | ||||||||||||||
(Dollars in millions) | Level 2 | Level 3 | Level 2 | Level 3 | |||||||||||
Assets | |||||||||||||||
Loans held-for-sale | $ | 2,138 | $ | 115 | $ | 5,692 | $ | 1,136 | |||||||
Loans and leases | 18 | 5,240 | 21 | 9,184 | |||||||||||
Foreclosed properties (1) | 12 | 1,258 | 33 | 1,918 | |||||||||||
Other assets | 88 | — | 36 | 12 | |||||||||||
Gains (Losses) | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Assets | |||||||||||||||
Loans held-for-sale | $ | (71 | ) | $ | (24 | ) | $ | (188 | ) | ||||||
Loans and leases (2) | (1,104 | ) | (3,116 | ) | (4,813 | ) | |||||||||
Foreclosed properties (1) | (39 | ) | (47 | ) | (167 | ) | |||||||||
Other assets | (20 | ) | (16 | ) | — |
(1) | Amounts are included in other assets on the Consolidated Balance Sheet and represent fair value of, and related losses on, foreclosed properties that were written down subsequent to their initial classification as foreclosed properties. |
(2) | Losses represent charge-offs on real estate-secured loans. |
Bank of America 2013 269 |
Quantitative Information about Nonrecurring Level 3 Fair Value Measurements | |||||||||
December 31, 2013 | |||||||||
(Dollars in millions) | Inputs | ||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted Average | ||||
Instruments backed by residential real estate assets | $ | 5,240 | Market comparables | OREO discount | 0% to 19% | 8 | % | ||
Loans and leases | 5,240 | Cost to sell | 8 | % | n/a |
December 31, 2012 | |||||||||
Instruments backed by residential real estate assets | $ | 9,932 | Discounted cash flow, Market comparables | Yield | 3% to 5% | 3 | % | ||
Loans held-for-sale | 748 | Prepayment speed | 3% to 30% | 15 | % | ||||
Loans and leases | 9,184 | Default rate | 0% to 55% | 7 | % | ||||
Loss severity | 6% to 66% | 48 | % | ||||||
OREO discount | 0% to 28% | 15 | % | ||||||
Cost to sell | 8 | % | n/a | ||||||
Instruments backed by commercial real estate assets | $ | 388 | Discounted cash flow | Yield | 4% to 13% | 6 | % | ||
Loans held-for-sale | 388 | Loss severity | 24% to 88% | 53 | % |
270 Bank of America 2013 |
Fair Value Option Elections | |||||||||||||||||||||||
December 31 | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(Dollars in millions) | Fair Value Carrying Amount | Contractual Principal Outstanding | Fair Value Carrying Amount Less Unpaid Principal | Fair Value Carrying Amount | Contractual Principal Outstanding | Fair Value Carrying Amount Less Unpaid Principal | |||||||||||||||||
Loans reported as trading account assets (1) | $ | 2,200 | $ | 4,315 | $ | (2,115 | ) | $ | 1,663 | $ | 2,879 | $ | (1,216 | ) | |||||||||
Trading inventory - other | 5,475 | n/a | n/a | 2,170 | n/a | n/a | |||||||||||||||||
Consumer and commercial loans | 10,042 | 10,423 | (381 | ) | 9,002 | 9,576 | (574 | ) | |||||||||||||||
Loans held-for-sale | 6,656 | 6,996 | (340 | ) | 11,659 | 12,676 | (1,017 | ) | |||||||||||||||
Securities financing agreements | 109,298 | 109,032 | 266 | 141,309 | 140,791 | 518 | |||||||||||||||||
Other assets | 278 | 270 | 8 | 453 | 270 | 183 | |||||||||||||||||
Long-term deposits | 1,899 | 2,115 | (216 | ) | 2,262 | 2,046 | 216 | ||||||||||||||||
Asset-backed secured financings | — | — | — | 741 | 1,176 | (435 | ) | ||||||||||||||||
Unfunded loan commitments | 354 | n/a | n/a | 528 | n/a | n/a | |||||||||||||||||
Short-term borrowings | 1,520 | 1,520 | — | 3,333 | 3,333 | — | |||||||||||||||||
Long-term debt (2, 3) | 47,035 | 46,669 | 366 | 49,161 | 50,792 | (1,631 | ) |
(1) | A significant portion of the loans reported as trading account assets are distressed loans which trade and were purchased at a deep discount to par, and the remainder are loans with a fair value near contractual principal outstanding. |
(2) | The majority of the difference between the fair value carrying amount and contractual principal outstanding at December 31, 2013 and 2012 relates to the impact of the Corporation’s credit spreads as well as the fair value of the embedded derivative, where applicable. |
(3) | Includes structured liabilities with a fair value of $40.7 billion and contractual principal outstanding of $39.7 billion at December 31, 2013 compared to $39.3 billion and $39.9 billion at December 31, 2012. |
Bank of America 2013 271 |
Gains (Losses) Relating to Assets and Liabilities Accounted for Under the Fair Value Option | |||||||||||||||
2013 | |||||||||||||||
(Dollars in millions) | Trading Account Profits (Losses) | Mortgage Banking Income (Loss) | Other Income (Loss) | Total | |||||||||||
Loans reported as trading account assets | $ | 83 | $ | — | $ | — | $ | 83 | |||||||
Trading inventory - other (1) | 1,355 | — | — | 1,355 | |||||||||||
Consumer and commercial loans | (28 | ) | (38 | ) | 240 | 174 | |||||||||
Loans held-for-sale (2) | 7 | 966 | 75 | 1,048 | |||||||||||
Securities financing agreements | (80 | ) | — | — | (80 | ) | |||||||||
Other assets | — | — | (77 | ) | (77 | ) | |||||||||
Long-term deposits | 30 | — | 84 | 114 | |||||||||||
Asset-backed secured financings | — | (91 | ) | — | (91 | ) | |||||||||
Unfunded loan commitments | — | — | 180 | 180 | |||||||||||
Short-term borrowings | (70 | ) | — | — | (70 | ) | |||||||||
Long-term debt (3) | (602 | ) | — | (649 | ) | (1,251 | ) | ||||||||
Total | $ | 695 | $ | 837 | $ | (147 | ) | $ | 1,385 | ||||||
2012 | |||||||||||||||
Loans reported as trading account assets | $ | 232 | $ | — | $ | — | $ | 232 | |||||||
Trading inventory - other (1) | 659 | — | — | 659 | |||||||||||
Consumer and commercial loans | 17 | — | 542 | 559 | |||||||||||
Loans held-for-sale (2) | 75 | 3,048 | 190 | 3,313 | |||||||||||
Securities financing agreements | (90 | ) | — | — | (90 | ) | |||||||||
Other assets | — | — | 12 | 12 | |||||||||||
Long-term deposits | — | — | 29 | 29 | |||||||||||
Asset-backed secured financings | — | (180 | ) | — | (180 | ) | |||||||||
Unfunded loan commitments | — | — | 704 | 704 | |||||||||||
Short-term borrowings | 1 | — | — | 1 | |||||||||||
Long-term debt (3) | (1,888 | ) | — | (5,107 | ) | (6,995 | ) | ||||||||
Total | $ | (994 | ) | $ | 2,868 | $ | (3,630 | ) | $ | (1,756 | ) | ||||
2011 | |||||||||||||||
Loans reported as trading account assets | $ | 73 | $ | — | $ | — | $ | 73 | |||||||
Consumer and commercial loans | 15 | — | (275 | ) | (260 | ) | |||||||||
Loans held-for-sale (2) | (20 | ) | 4,535 | 148 | 4,663 | ||||||||||
Securities financing agreements | 127 | — | — | 127 | |||||||||||
Other assets | — | — | 196 | 196 | |||||||||||
Long-term deposits | — | — | (77 | ) | (77 | ) | |||||||||
Asset-backed secured financings | — | (30 | ) | — | (30 | ) | |||||||||
Unfunded loan commitments | — | — | (429 | ) | (429 | ) | |||||||||
Short-term borrowings | 261 | — | — | 261 | |||||||||||
Long-term debt (3) | 2,149 | — | 3,320 | 5,469 | |||||||||||
Total | $ | 2,605 | $ | 4,505 | $ | 2,883 | $ | 9,993 |
(1) | The gains in trading account profits (losses) are primarily offset by losses on trading liabilities that hedge these assets. |
(2) | Includes the value of interest rate lock commitments on loans funded, including those already sold during the period. |
(3) | The majority of the net gains (losses) in trading account profits (losses) relate to the embedded derivative in structured liabilities and are offset by gains (losses) on derivatives and securities that hedge these liabilities. The net gains (losses) in other income (loss) relate to the impact on structured liabilities of changes in the Corporation’s credit spreads. |
272 Bank of America 2013 |
Fair Value of Financial Instruments | |||||||||||||||
December 31, 2013 | |||||||||||||||
Fair Value | |||||||||||||||
(Dollars in millions) | Carrying Value | Level 2 | Level 3 | Total | |||||||||||
Financial assets | |||||||||||||||
Loans | $ | 885,724 | $ | 102,564 | $ | 789,273 | $ | 891,837 | |||||||
Loans held-for-sale | 11,362 | 8,872 | 2,613 | 11,485 | |||||||||||
Financial liabilities | |||||||||||||||
Deposits | 1,119,271 | 1,119,512 | — | 1,119,512 | |||||||||||
Long-term debt | 249,674 | 257,402 | 1,990 | 259,392 | |||||||||||
December 31, 2012 | |||||||||||||||
Financial assets | |||||||||||||||
Loans | $ | 859,875 | $ | 105,119 | $ | 772,761 | $ | 877,880 | |||||||
Loans held-for-sale | 19,413 | 15,087 | 4,321 | 19,408 | |||||||||||
Financial liabilities | |||||||||||||||
Deposits | 1,105,261 | 1,105,669 | — | 1,105,669 | |||||||||||
Long-term debt | 275,585 | 281,173 | 2,301 | 283,474 |
Bank of America 2013 273 |
Rollforward of Mortgage Servicing Rights | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Balance, January 1 | $ | 5,716 | $ | 7,378 | |||
Additions | 472 | 374 | |||||
Sales | (2,044 | ) | (122 | ) | |||
Amortization of expected cash flows (1) | (1,043 | ) | (1,484 | ) | |||
Impact of changes in interest rates and other market factors (2) | 1,524 | (867 | ) | ||||
Model and other cash flow assumption changes: (3) | |||||||
Projected cash flows, primarily due to (increases) decreases in costs to service loans | (27 | ) | 443 | ||||
Impact of changes in the Home Price Index | (398 | ) | (112 | ) | |||
Impact of changes to the prepayment model | 609 | 435 | |||||
Other model changes (4) | 233 | (329 | ) | ||||
Balance, December 31 | $ | 5,042 | $ | 5,716 | |||
Mortgage loans serviced for investors (in billions) | $ | 550 | $ | 1,045 |
(1) | Represents the net change in fair value of the MSR asset due to the recognition of modeled cash flows. |
(2) | These amounts reflect the changes in modeled MSR fair value primarily due to observed changes in interest rates, volatility, spreads and the shape of the forward swap curve. |
(3) | These amounts reflect periodic adjustments to the valuation model to reflect changes in the modeled relationship between inputs and their impact on projected cash flows as well as changes in certain cash flow assumptions such as cost to service and ancillary income per loan. |
(4) | These amounts include the impact of periodic recalibrations of the model to reflect changes in the relationship between market interest rate spreads and projected cash flows. Also included is a decrease of $497 million for 2012 due to changes in OAS rate inputs. |
Significant Economic Assumptions | |||||||||||
December 31 | |||||||||||
2013 | 2012 | ||||||||||
Fixed | Adjustable | Fixed | Adjustable | ||||||||
Weighted-average OAS | 3.97 | % | 7.61 | % | 4.00 | % | 6.63 | % | |||
Weighted-average life, in years | 5.70 | 2.86 | 3.65 | 2.10 |
Sensitivity Impacts | |||||||||||
December 31, 2013 | |||||||||||
Change in Weighted-average Lives | |||||||||||
(Dollars in millions) | Fixed | Adjustable | Change in Fair Value | ||||||||
Prepayment rates | |||||||||||
Impact of 10% decrease | 0.24 | years | 0.20 | years | $ | 266 | |||||
Impact of 20% decrease | 0.51 | 0.42 | 558 | ||||||||
Impact of 10% increase | (0.22 | ) | (0.17 | ) | (244 | ) | |||||
Impact of 20% increase | (0.42 | ) | (0.32 | ) | (469 | ) | |||||
OAS level | |||||||||||
Impact of 100 bps decrease | $ | 268 | |||||||||
Impact of 200 bps decrease | 561 | ||||||||||
Impact of 100 bps increase | (247 | ) | |||||||||
Impact of 200 bps increase | (474 | ) |
274 Bank of America 2013 |
Bank of America 2013 275 |
276 Bank of America 2013 |
Business Segments | |||||||||||||||||||||||||||||
At and for the Year Ended December 31 | Total Corporation (1) | Consumer & Business Banking | Consumer Real Estate Services | ||||||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Net interest income (FTE basis) | $ | 43,124 | $ | 41,557 | $ | 45,588 | $ | 20,051 | $ | 19,853 | $ | 22,249 | $ | 2,890 | $ | 2,930 | $ | 3,209 | |||||||||||
Noninterest income (loss) | 46,677 | 42,678 | 48,838 | 9,816 | 9,937 | 11,572 | 4,826 | 5,821 | (6,310 | ) | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 89,801 | 84,235 | 94,426 | 29,867 | 29,790 | 33,821 | 7,716 | 8,751 | (3,101 | ) | |||||||||||||||||||
Provision for credit losses | 3,556 | 8,169 | 13,410 | 3,107 | 4,148 | 3,677 | (156 | ) | 1,442 | 4,523 | |||||||||||||||||||
Amortization of intangibles | 1,086 | 1,264 | 1,509 | 505 | 626 | 759 | — | — | 11 | ||||||||||||||||||||
Goodwill impairment | — | — | 3,184 | — | — | — | — | — | 2,603 | ||||||||||||||||||||
Other noninterest expense | 68,128 | 70,829 | 75,581 | 15,852 | 16,369 | 17,153 | 16,013 | 17,190 | 19,055 | ||||||||||||||||||||
Income (loss) before income taxes | 17,031 | 3,973 | 742 | 10,403 | 8,647 | 12,232 | (8,141 | ) | (9,881 | ) | (29,293 | ) | |||||||||||||||||
Income tax expense (benefit) (FTE basis) | 5,600 | (215 | ) | (704 | ) | 3,815 | 3,101 | 4,431 | (2,986 | ) | (3,442 | ) | (9,939 | ) | |||||||||||||||
Net income (loss) | $ | 11,431 | $ | 4,188 | $ | 1,446 | $ | 6,588 | $ | 5,546 | $ | 7,801 | $ | (5,155 | ) | $ | (6,439 | ) | $ | (19,354 | ) | ||||||||
Year-end total assets | $ | 2,102,273 | $ | 2,209,974 | $ | 592,978 | $ | 554,915 | $ | 113,386 | $ | 131,059 | |||||||||||||||||
Global Wealth & Investment Management | Global Banking | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 6,064 | $ | 5,827 | $ | 5,885 | $ | 8,914 | $ | 8,135 | $ | 8,233 | |||||||||||||||||
Noninterest income | 11,726 | 10,691 | 10,610 | 7,567 | 7,539 | 7,361 | |||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 17,790 | 16,518 | 16,495 | 16,481 | 15,674 | 15,594 | |||||||||||||||||||||||
Provision for credit losses | 56 | 266 | 398 | 1,075 | (342 | ) | (1,308 | ) | |||||||||||||||||||||
Amortization of intangibles | 387 | 410 | 437 | 62 | 79 | 101 | |||||||||||||||||||||||
Other noninterest expense | 12,651 | 12,311 | 12,899 | 7,490 | 7,540 | 7,928 | |||||||||||||||||||||||
Income before income taxes | 4,696 | 3,531 | 2,761 | 7,854 | 8,397 | 8,873 | |||||||||||||||||||||||
Income tax expense (FTE basis) | 1,722 | 1,286 | 1,014 | 2,880 | 3,053 | 3,251 | |||||||||||||||||||||||
Net income | $ | 2,974 | $ | 2,245 | $ | 1,747 | $ | 4,974 | $ | 5,344 | $ | 5,622 | |||||||||||||||||
Year-end total assets | $ | 274,112 | $ | 297,326 | $ | 379,207 | $ | 331,611 | |||||||||||||||||||||
Global Markets | All Other | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Net interest income (FTE basis) | $ | 4,239 | $ | 3,672 | $ | 4,068 | $ | 966 | $ | 1,140 | $ | 1,944 | |||||||||||||||||
Noninterest income (loss) | 11,819 | 10,612 | 11,507 | 923 | (1,922 | ) | 14,098 | ||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) | 16,058 | 14,284 | 15,575 | 1,889 | (782 | ) | 16,042 | ||||||||||||||||||||||
Provision for credit losses | 140 | 34 | (53 | ) | (666 | ) | 2,621 | 6,173 | |||||||||||||||||||||
Amortization of intangibles | 65 | 64 | 66 | 67 | 85 | 135 | |||||||||||||||||||||||
Goodwill impairment | — | — | — | — | — | 581 | |||||||||||||||||||||||
Other noninterest expense | 11,948 | 11,231 | 12,824 | 4,174 | 6,188 | 5,722 | |||||||||||||||||||||||
Income (loss) before income taxes | 3,905 | 2,955 | 2,738 | (1,686 | ) | (9,676 | ) | 3,431 | |||||||||||||||||||||
Income tax expense (benefit) (FTE basis) | 2,342 | 1,726 | 1,669 | (2,173 | ) | (5,939 | ) | (1,130 | ) | ||||||||||||||||||||
Net income (loss) | $ | 1,563 | $ | 1,229 | $ | 1,069 | $ | 487 | $ | (3,737 | ) | $ | 4,561 | ||||||||||||||||
Year-end total assets | $ | 575,709 | $ | 632,263 | $ | 166,881 | $ | 262,800 |
(1) | There were no material intersegment revenues. |
Bank of America 2013 277 |
Business Segment Reconciliations | |||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | ||||||||
Segments’ total revenue, net of interest expense (FTE basis) | $ | 87,912 | $ | 85,017 | $ | 78,384 | |||||
Adjustments: | |||||||||||
ALM activities (1) | (986 | ) | (2,412 | ) | 7,576 | ||||||
Equity investment income | 2,610 | 1,135 | 7,105 | ||||||||
Liquidating businesses and other | 265 | 495 | 1,361 | ||||||||
FTE basis adjustment | (859 | ) | (901 | ) | (972 | ) | |||||
Consolidated revenue, net of interest expense | $ | 88,942 | $ | 83,334 | $ | 93,454 | |||||
Segments’ net income (loss) | $ | 10,944 | $ | 7,925 | $ | (3,115 | ) | ||||
Adjustments, net of taxes: | |||||||||||
ALM activities | (1,207 | ) | (4,087 | ) | 513 | ||||||
Equity investment income | 1,644 | 715 | 4,476 | ||||||||
Liquidating businesses and other | 50 | (365 | ) | (26 | ) | ||||||
Merger and restructuring charges | — | — | (402 | ) | |||||||
Consolidated net income | $ | 11,431 | $ | 4,188 | $ | 1,446 | |||||
December 31 | |||||||||||
2013 | 2012 | ||||||||||
Segments’ total assets | $ | 1,935,392 | $ | 1,947,174 | |||||||
Adjustments: | |||||||||||
ALM activities, including securities portfolio | 664,302 | 655,915 | |||||||||
Equity investments | 2,411 | 5,508 | |||||||||
Liquidating businesses and other | 70,435 | 138,974 | |||||||||
Elimination of segment asset allocations to match liabilities | (570,267 | ) | (537,597 | ) | |||||||
Consolidated total assets | $ | 2,102,273 | $ | 2,209,974 |
(1) | Includes negative fair value adjustments on structured liabilities related to changes in the Corporation’s credit spreads of $649 million and $5.1 billion in 2013 and 2012 compared to positive adjustments of $3.3 billion in 2011. |
278 Bank of America 2013 |
Condensed Statement of Income | |||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | ||||||||
Income | |||||||||||
Dividends from subsidiaries: | |||||||||||
Bank holding companies and related subsidiaries | $ | 8,532 | $ | 16,213 | $ | 10,277 | |||||
Nonbank companies and related subsidiaries | 357 | 542 | 553 | ||||||||
Interest from subsidiaries | 2,087 | 627 | 869 | ||||||||
Other income (loss) (1) | 233 | (304 | ) | 10,603 | |||||||
Total income | 11,209 | 17,078 | 22,302 | ||||||||
Expense | |||||||||||
Interest on borrowed funds | 6,379 | 5,376 | 6,234 | ||||||||
Noninterest expense (2) | 12,668 | 11,643 | 11,861 | ||||||||
Total expense | 19,047 | 17,019 | 18,095 | ||||||||
Income (loss) before income taxes and equity in undistributed earnings of subsidiaries | (7,838 | ) | 59 | 4,207 | |||||||
Income tax benefit | (7,227 | ) | (5,883 | ) | (2,783 | ) | |||||
Income (loss) before equity in undistributed earnings of subsidiaries | (611 | ) | 5,942 | 6,990 | |||||||
Equity in undistributed earnings (losses) of subsidiaries: | |||||||||||
Bank holding companies and related subsidiaries | 14,150 | 1,072 | 6,650 | ||||||||
Nonbank companies and related subsidiaries | (2,108 | ) | (2,826 | ) | (12,194 | ) | |||||
Total equity in undistributed earnings (losses) of subsidiaries | 12,042 | (1,754 | ) | (5,544 | ) | ||||||
Net income | $ | 11,431 | $ | 4,188 | $ | 1,446 | |||||
Net income applicable to common shareholders | $ | 10,082 | $ | 2,760 | $ | 85 |
(1) | Includes $753 million and $6.5 billion of gains related to the sale of the Corporation’s investment in CCB in 2013 and 2011. |
(2) | Includes, in aggregate, $1.3 billion, $4.1 billion and $6.9 billion in 2013, 2012 and 2011 of representations and warranties provision, which is presented as a component of mortgage banking income on the Consolidated Statement of Income, litigation expense and in 2012 an expense related to an agreement with the Federal Reserve and the OCC to cease the Independent Foreclosure Review and replace it with an accelerated remediation process. |
Condensed Balance Sheet | |||||||
December 31 | |||||||
(Dollars in millions) | 2013 | 2012 | |||||
Assets | |||||||
Cash held at bank subsidiaries | $ | 98,679 | $ | 101,831 | |||
Securities | 747 | 1,959 | |||||
Receivables from subsidiaries: | |||||||
Bank holding companies and related subsidiaries | 23,558 | 33,481 | |||||
Banks and related subsidiaries | 1,682 | — | |||||
Nonbank companies and related subsidiaries | 46,577 | 3,861 | |||||
Investments in subsidiaries: | |||||||
Bank holding companies and related subsidiaries | 268,234 | 185,803 | |||||
Nonbank companies and related subsidiaries | 1,818 | 65,300 | |||||
Other assets | 19,073 | 15,208 | |||||
Total assets | $ | 460,368 | $ | 407,443 | |||
Liabilities and shareholders’ equity | |||||||
Short-term borrowings | $ | 181 | $ | 100 | |||
Accrued expenses and other liabilities | 15,428 | 34,364 | |||||
Payables to subsidiaries: | |||||||
Bank holding companies and related subsidiaries | — | 1,396 | |||||
Banks and related subsidiaries | 1,991 | — | |||||
Nonbank companies and related subsidiaries | 15,980 | 688 | |||||
Long-term debt | 194,103 | 133,939 | |||||
Total liabilities | 227,683 | 170,487 | |||||
Shareholders’ equity | 232,685 | 236,956 | |||||
Total liabilities and shareholders’ equity | $ | 460,368 | $ | 407,443 |
Bank of America 2013 279 |
Condensed Statement of Cash Flows | |||||||||||
(Dollars in millions) | 2013 | 2012 | 2011 | ||||||||
Operating activities | |||||||||||
Net income | $ | 11,431 | $ | 4,188 | $ | 1,446 | |||||
Reconciliation of net income to net cash provided by (used in) operating activities: | |||||||||||
Equity in undistributed (earnings) losses of subsidiaries | (12,042 | ) | 1,754 | 5,544 | |||||||
Other operating activities, net | (10,422 | ) | (3,432 | ) | 6,716 | ||||||
Net cash provided by (used in) operating activities | (11,033 | ) | 2,510 | 13,706 | |||||||
Investing activities | |||||||||||
Net sales of securities | 459 | 13 | 8,444 | ||||||||
Net payments from subsidiaries | 39,336 | 12,973 | 5,780 | ||||||||
Other investing activities, net | 3 | 445 | (8 | ) | |||||||
Net cash provided by investing activities | 39,798 | 13,431 | 14,216 | ||||||||
Financing activities | |||||||||||
Net increase (decrease) in short-term borrowings | 178 | (616 | ) | (13,172 | ) | ||||||
Net increase (decrease) in other advances | (14,378 | ) | 10,100 | (4,449 | ) | ||||||
Proceeds from issuance of long-term debt | 30,966 | 17,176 | 16,047 | ||||||||
Retirement of long-term debt | (39,320 | ) | (63,851 | ) | (21,742 | ) | |||||
Proceeds from issuance of preferred stock and warrants | 1,008 | 667 | 5,000 | ||||||||
Redemption of preferred stock | (6,461 | ) | — | — | |||||||
Common stock repurchased | (3,220 | ) | — | — | |||||||
Cash dividends paid | (1,677 | ) | (1,909 | ) | (1,738 | ) | |||||
Other financing activities, net | — | (668 | ) | (1 | ) | ||||||
Net cash used in financing activities | (32,904 | ) | (39,101 | ) | (20,055 | ) | |||||
Net increase (decrease) in cash held at bank subsidiaries | (4,139 | ) | (23,160 | ) | 7,867 | ||||||
Cash held at bank subsidiaries at January 1 | 102,818 | 124,991 | 117,124 | ||||||||
Cash held at bank subsidiaries at December 31 | $ | 98,679 | $ | 101,831 | $ | 124,991 |
December 31 | Year Ended December 31 | ||||||||||||||||
(Dollars in millions) | Year | Total Assets (1) | Total Revenue, Net of Interest Expense (2) | Income (Loss) Before Income Taxes | Net Income (Loss) | ||||||||||||
U.S. (3) | 2013 | $ | 1,803,243 | $ | 76,612 | $ | 13,221 | $ | 10,588 | ||||||||
2012 | 1,902,946 | 72,175 | 1,867 | 4,116 | |||||||||||||
2011 | 73,613 | (9,261 | ) | (3,471 | ) | ||||||||||||
Asia (4) | 2013 | 98,605 | 4,442 | 1,382 | 887 | ||||||||||||
2012 | 102,492 | 3,478 | 353 | 282 | |||||||||||||
2011 | 10,890 | 7,598 | 4,787 | ||||||||||||||
Europe, Middle East and Africa | 2013 | 169,708 | 6,353 | 1,003 | (403 | ) | |||||||||||
2012 | 171,209 | 6,011 | 323 | (543 | ) | ||||||||||||
2011 | 7,320 | 1,009 | (137 | ) | |||||||||||||
Latin America and the Caribbean | 2013 | 30,717 | 1,535 | 566 | 359 | ||||||||||||
2012 | 33,327 | 1,670 | 529 | 333 | |||||||||||||
2011 | 1,631 | 424 | 267 | ||||||||||||||
Total Non-U.S. | 2013 | 299,030 | 12,330 | 2,951 | 843 | ||||||||||||
2012 | 307,028 | 11,159 | 1,205 | 72 | |||||||||||||
2011 | 19,841 | 9,031 | 4,917 | ||||||||||||||
Total Consolidated | 2013 | $ | 2,102,273 | $ | 88,942 | $ | 16,172 | $ | 11,431 | ||||||||
2012 | 2,209,974 | 83,334 | 3,072 | 4,188 | |||||||||||||
2011 | 93,454 | (230 | ) | 1,446 |
(1) | Total assets include long-lived assets, which are primarily located in the U.S. |
(2) | There were no material intercompany revenues between geographic regions for any of the periods presented. |
(3) | Includes the Corporation’s Canadian operations, which had total assets of $9.6 billion and $8.3 billion at December 31, 2013 and 2012; total revenue, net of interest expense of $364 million, $317 million and $1.3 billion; income before income taxes of $258 million, $202 million and $621 million; and net income of $199 million, $141 million and $528 million for 2013, 2012 and 2011, respectively. |
(4) | Amounts include pre-tax gains of $753 million and $6.5 billion ($474 million and $4.1 billion net-of-tax) on the sale of common shares of CCB during 2013 and 2011. |
280 Bank of America 2013 |
Bank of America 2013 281 |
282 Bank of America 2013 |
Bank of America 2013 283 |
| “Proposal 1: Election of Directors – The Nominees;” |
| “Section 16(a) Beneficial Ownership Reporting Compliance;” |
| “Corporate Governance – Additional Corporate Governance Information Available” and |
| “– Board Meetings, Committee Membership and Attendance.” |
| “Proposal 2: An Advisory (Non-Binding) Resolution to Approve Executive Compensation (Say on Pay) – Compensation and Benefits Committee Report;” |
| “– Compensation Discussion and Analysis;” |
| “– Executive Compensation;” and |
| “Corporate Governance – Director Compensation.” |
284 Bank of America 2013 |
| “Stock Ownership of Directors, Executive Officers and Certain Beneficial Owners.” |
Plan Category (1, 2) | Number of Shares to be Issued Under Outstanding Options and Rights | Weighted-average Exercise Price of Outstanding Options (3) | Number of Shares Remaining for Future Issuance Under Equity Compensation Plans (4) | ||||||
Plans approved by shareholders (5) | 168,980,799 | $ | 45.90 | 297,559,506 | |||||
Plans not approved by shareholders (6) | 2,481,761 | — | — | ||||||
Total | 171,462,560 | $ | 45.90 | 297,559,506 |
(1) | This table does not include outstanding options to purchase 8,843,278 shares of the Corporation’s common stock that were assumed by the Corporation in connection with prior acquisitions, under whose plans the options were originally granted. The weighted-average option price of these assumed options was $77.55 at December 31, 2013. Also, at December 31, 2013 there were 122,576 vested restricted stock units associated with these plans. No additional awards were granted under these plans following the respective dates of acquisition. |
(2) | This table does not include outstanding options to purchase 5,510,201 shares of the Corporation’s common stock that were assumed by the Corporation in connection with the Merrill Lynch acquisition, which were originally issued under certain Merrill Lynch plans. The weighted-average option price of these assumed options was $46.61 at December 31, 2013. Also, at December 31, 2013 there were 7,443,149 outstanding restricted stock units and 1,257,564 vested restricted stock units and stock option gain deferrals associated with such plans. These Merrill Lynch plans were frozen at the time of the acquisition and no additional awards may be granted under these plans. However, as previously approved by the Corporation’s shareholders, if any of the outstanding awards under these frozen plans subsequently are canceled, forfeited or settled in cash, the shares relating to such awards thereafter will be available for future awards issued under the Corporation’s Key Associate Stock Plan (KASP). |
(3) | Does not reflect restricted stock units included in the first column, which do not have an exercise price. |
(4) | Plans approved by shareholders includes 297,160,101 shares of common stock available for future issuance under the KASP (including 29,294,525 shares originally subject to awards outstanding under frozen Merrill Lynch plans at the time of the acquisition which subsequently have been canceled, forfeited or settled in cash and become available for issuance under the KASP, as described in footnote (2) above) and 399,405 shares of common stock which are available for future issuance under the Corporation’s Directors’ Stock Plan. |
(5) | Includes 61,165,587 outstanding restricted stock units. |
(6) | Represents restricted stock units that were outstanding under the Merrill Lynch Employee Stock Compensation Plan (ESCP) at December 31, 2013. In connection with the Merrill Lynch acquisition, the Corporation assumed and continued to issue awards under the ESCP in accordance with applicable NYSE listing standards until the expiration of the ESCP on February 24, 2013. The ESCP was approved by Merrill Lynch’s shareholders prior to the acquisition but was not approved by the Corporation’s shareholders. Under the ESCP, the Corporation could award restricted shares, restricted units, incentive stock options, nonqualified stock options and stock appreciation rights to employees who were salaried key employees of Merrill Lynch or its subsidiaries immediately prior to the effective date of the acquisition, other than executive officers. Shares that were canceled, forfeited or settled in cash from an additional frozen Merrill Lynch plan also became available for grant under the ESCP prior to its expiration. As of February 15, 2014, all restricted stock units outstanding under the ESCP had vested or expired, and no additional awards may be granted thereunder. |
| “Related Person and Certain Other Transactions;” and |
| “Corporate Governance – Director Independence.” |
| “Proposal 3: Ratification of the Appointment of the Registered Independent Public Accounting Firm for 2014 – PwC’s 2013 and 2012 Fees;” and “Audit Committee Pre-Approval Policies and Procedures.” |
Bank of America 2013 285 |
286 Bank of America 2013 |
Bank of America Corporation | |
By: | /s/ Brian T. Moynihan |
Brian T. Moynihan | |
Chief Executive Officer and President |
Signature | Title | Date | |||
/s/ Brian T. Moynihan | Chief Executive Officer, President and Director (Principal Executive Officer) | February 25, 2014 | |||
Brian T. Moynihan | |||||
*/s/ Bruce R. Thompson | Chief Financial Officer (Principal Financial Officer) | February 25, 2014 | |||
Bruce R. Thompson | |||||
*/s/ Neil A. Cotty | Chief Accounting Officer (Principal Accounting Officer) | February 25, 2014 | |||
Neil A. Cotty | |||||
*/s/ Sharon L. Allen | Director | February 25, 2014 | |||
Sharon L. Allen | |||||
*/s/ Susan S. Bies | Director | February 25, 2014 | |||
Susan S. Bies | |||||
*/s/ Jack O. Bovender, Jr. | Director | February 25, 2014 | |||
Jack O. Bovender, Jr. | |||||
*/s/ Frank P. Bramble, Sr. | Director | February 25, 2014 | |||
Frank P. Bramble, Sr. | |||||
*/s/ Pierre de Weck | Director | February 25, 2014 | |||
Pierre de Weck | |||||
*/s/ Arnold W. Donald | Director | February 25, 2014 | |||
Arnold W. Donald | |||||
*/s/ Charles K. Gifford | Director | February 25, 2014 | |||
Charles K. Gifford | |||||
*/s/ Charles O. Holliday, Jr. | Director | February 25, 2014 | |||
Charles O. Holliday, Jr. | |||||
Bank of America 2013 287 |
Signature | Title | Date | |||
*/s/ Linda P. Hudson | Director | February 25, 2014 | |||
Linda P. Hudson | |||||
*/s/ Monica C. Lozano | Director | February 25, 2014 | |||
Monica C. Lozano | |||||
*/s/ Thomas J. May | Director | February 25, 2014 | |||
Thomas J. May | |||||
*/s/ Lionel L. Nowell, III | Director | February 25, 2014 | |||
Lionel L. Nowell, III | |||||
*/s/ Clayton S. Rose | Director | February 25, 2014 | |||
Clayton S. Rose | |||||
*/s/ R. David Yost | Director | February 25, 2014 | |||
R. David Yost | |||||
*By | /s/ Ross E. Jeffries, Jr. | ||||
Ross E. Jeffries, Jr. Attorney-in-Fact |
288 Bank of America 2013 |
Exhibit No. | Description | |
3(a) | Amended and Restated Certificate of Incorporation of registrant, as in effect on the date hereof, incorporated by reference to Exhibit 3(a) of registrant’s Quarterly Report on Form 10-Q (File No. 1-6523) for the quarterly period ended June 30, 2013 filed on August 1, 2013. | |
(b) | Amended and Restated Bylaws of registrant, as in effect on the date hereof, incorporated by reference to Exhibit 3.1 of registrant’s Current Report on Form 8-K (File No. 1-6523) filed on August 22, 2013. | |
4(a) | Indenture dated as of January 1, 1995 between registrant (successor to NationsBank Corporation) and BankAmerica National Trust Company incorporated by reference to Exhibit 4.1 of registrant’s Registration Statement on Form S-3 (Registration No. 33-57533) filed on February 1, 1995; First Supplemental Indenture thereto dated as of September 18, 1998 between registrant and U.S. Bank Trust National Association (successor to BankAmerica National Trust Company), incorporated by reference to Exhibit 4.3 of registrant’s Current Report on Form 8-K (File No. 1-6523) filed on November 18, 1998; Second Supplemental Indenture thereto dated as of May 7, 2001 between registrant, U.S. Bank Trust National Association, as Prior Trustee, and The Bank of New York, as Successor Trustee, incorporated by reference to Exhibit 4.4 of registrant’s Current Report on Form 8-K (File No. 1-6523) filed on June 14, 2001; Third Supplemental Indenture thereto dated as of July 28, 2004 between registrant and The Bank of New York, incorporated by reference to Exhibit 4.2 of registrant’s Current Report on Form 8-K (File No. 1-6523) filed on August 27, 2004; Fourth Supplemental Indenture thereto dated as of April 28, 2006 between the registrant and The Bank of New York, incorporated by reference to Exhibit 4.6 of registrant’s Registration Statement on Form S-3 (Registration No. 333-133852) filed on May 5, 2006; Fifth Supplemental Indenture thereto dated as of December 1, 2008 between registrant and The Bank of New York Mellon Trust Company, N.A. (successor to The Bank of New York), incorporated by reference to Exhibit 4.1 of registrant’s Current Report on Form 8-K (File No. 1-6523) filed on December 5, 2008; and Sixth Supplemental Indenture thereto dated as of February 23, 2011 between registrant and The Bank of New York Mellon Trust Company, N.A., incorporated by reference to Exhibit 4(ee) of registrant’s 2010 Annual Report on Form 10-K (File No. 1-6523) filed on February 20, 2011 (the “2010 10-K”). | |
(b) | Successor Trustee Agreement effective December 15, 1995 between registrant (successor to NationsBank Corporation) and First Trust of New York, National Association, as successor trustee to BankAmerica National Trust Company, incorporated by reference to Exhibit 4.2 of registrant’s Registration Statement on Form S-3 (Registration No. 333-07229) filed on June 28, 1996. | |
(c) | Agreement of Appointment and Acceptance dated as of December 29, 2006 between registrant and The Bank of New York Trust Company, N.A., incorporated by reference to Exhibit 4(aaa) of registrant’s 2006 Annual Report on Form 10-K (File No. 1-6523) filed on February 28, 2007 (the “2006 10-K”). | |
(d) | Form of Senior Registered Note, incorporated by reference to Exhibit 4.7 of registrant’s Registration Statement on Form S-3 (Registration No. 333-133852) filed on May 5, 2006. | |
(e) | Form of Global Senior Medium-Term Note, Series L, incorporated by reference to Exhibit 4.13 of registrant’s Registration Statement on Form S-3 (Registration No. 333-180488) filed on March 30, 2012. | |
(f) | Form of Master Global Senior Medium-Term Note, Series L, incorporated by reference to Exhibit 4.14 of registrant’s Registration Statement on Form S-3 (Registration No. 333-180488) filed on March 30, 2012. | |
Registrant and its subsidiaries have other long-term debt agreements, but these are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. Copies of these agreements will be furnished to the Commission on request. | ||
10(a) | Bank of America Pension Restoration Plan, as amended and restated effective January 1, 2009, incorporated by reference to Exhibit 10(c) of registrant’s 2008 Annual Report on Form 10-K (File No. 1-6523) filed on February 27, 2009 (the “2008 10-K”); Amendment thereto dated December 18, 2009, incorporated by reference to Exhibit 10(c) of registrant’s 2009 Annual Report on Form 10-K (File No. 1-6523) filed on February 26, 2010 (the “2009 10-K”); Amendment thereto dated December 16, 2010, incorporated by reference to Exhibit 10(c) of the 2010 10-K; and Amendment thereto dated June 29, 2012, incorporated by reference to Exhibit 10(a) of registrant’s 2012 Annual Report on Form 10-K (File No. 1-6523) filed Februrary 28, 2013 (the “2012 10-K”).* | |
(b) | NationsBank Corporation Benefit Security Trust dated as of June 27, 1990, incorporated by reference to Exhibit 10(t) of registrant’s 1990 Annual Report on Form 10-K (File No. 1-6523); First Supplement thereto dated as of November 30, 1992, incorporated by reference to Exhibit 10(v) of registrant’s 1992 Annual Report on Form 10-K (File No. 1-6523); Trustee Removal/Appointment Agreement dated as of December 19, 1995, incorporated by reference to Exhibit 10(o) of registrant’s 1995 Annual Report on Form 10-K (File No. 1-6523) filed on March 29, 1996.* | |
(c) | Bank of America 401(k) Restoration Plan, as amended and restated effective January 1, 2013, incorporated by reference to Exhibit 10(c) of the 2012 10-K.* | |
(d) | Bank of America Executive Incentive Compensation Plan, as amended and restated effective December 10, 2002, incorporated by reference to Exhibit 10(g) of registrant’s 2002 Annual Report on Form 10-K (File No. 1-6523) filed on March 3, 2003; and Amendment thereto dated January 23, 2013, incorporated by reference to Exhibit 10(d) of the 2012 10-K.* | |
(e) | Bank of America Director Deferral Plan, as amended and restated effective January 1, 2005, incorporated by reference to Exhibit 10(g) of the 2006 10-K.* | |
(f) | Bank of America Corporation Directors’ Stock Plan as amended and restated effective April 26, 2006, incorporated by reference to Exhibit 10.2 to the registrant’s Current Report on Form 8-K filed on December 14, 2005* and the following terms of award agreements: | |
• Form of Restricted Stock Award Agreement, incorporated by reference to Exhibit 10(h) of registrant’s 2004 Annual Report on Form 10-K (File No. 1-6523) filed on March 1, 2005 (the “2004 10-K”);* • Form of Directors Stock Plan Restricted Stock Award Agreement for Non-Employee Chairman, incorporated by reference to Exhibit 10(b) of registrant’s Quarterly Report on Form 10-Q (File No. 1-6523) for the quarterly period ended September 30, 2009 filed on November 6, 2009;* • Form of Directors’ Stock Plan Restricted Stock Award Agreement for Non-U.S. Director, incorporated by reference to Exhibit 10(a) of registrant’s Quarterly Report on Form 10-Q (File No. 1-6523) for the quarterly period ended March 31, 2011 filed on May 5, 2011;* and • Form of Directors’ Stock Plan Conditional Restricted Stock Award Agreement for Non-U.S. Director, incorporated by reference to Exhibit 10(a) of registrant’s Quarterly Report on Form 10-Q (File No. 1-6523) for the quarterly period ended June 30, 2011 filed on August 4, 2011.* |
Bank of America 2013 E-1 |
Exhibit No. | Description | |
(g) | Bank of America Corporation Key Associate Stock Plan, as amended and restated effective April 28, 2010, incorporated by reference to Exhibit 10.2 of registrant’s Current Report on Form 8-K (File No. 1-6523) filed on May 3, 2010* and the following forms of award agreement under the plan: | |
• Form of Stock Option Award Agreement (February 2007 grant), incorporated by reference to Exhibit 10(i) of registrant’s 2007 Annual Report on Form 10-K (File No. 1-6523) filed on February 28, 2008;* • Form of Stock Option Award Agreement for non-executives (February 2008 grant), incorporated by reference to Exhibit 10(i) of the 2009 10-K;* • Form of Restricted Stock Units Award Agreement for executives (February 2010 grant), incorporated by reference to Exhibit 10(i) of the 2010 10-K;* • Form of Performance Contingent Restricted Stock Units Award Agreement, incorporated by reference to Exhibit 10.3 of registrant’s Current Report on Form 8-K (File No. 1-6523) filed on January 31, 2011;* • Form of Performance Contingent Restricted Stock Units Award Agreement (February 2011 grant), incorporated by reference to Exhibit 10(i) of the 2010 10-K;* • Form of Restricted Stock Units Award Agreement for non-executives (February 2011 grant), incorporated by reference to Exhibit 10(i) of the 2010 10-K;* • Form of Restricted Stock Units Award Agreement (February 2012 grant), incorporated by reference to Exhibit 10(i) of registrant’s 2011 Annual Report on Form 10-K (File No. 1-6523) filed on February 25, 2012 (the “2011 10-K”);* • Form of Performance Contingent Restricted Stock Units Award Agreement (February 2012 grant), incorporated by reference to Exhibit 10(i) of the 2011 10-K;* • Restricted Stock Units Award Agreement for Gary G. Lynch dated July 12, 2011, incorporated by reference to Exhibit 10(a) of registrant’s Quarterly Report on Form 10-Q (File No. 1-6523) for the quarterly period ended March 31, 2012 (the “1Q 2012 10-Q”) filed on May 3, 2012;* • Form of Restricted Stock Units Award Agreement (February 2013 and subsequent grants), including grants to named executive officers, incorporated by reference to Exhibit 10(a) of registrant’s Quarterly Report on Form 10-Q (File No. 1-6523) for the quarterly period ended March 31, 2013 filed on May 5, 2013 (the “1Q2013 10-Q”);* and • Form of Performance Restricted Stock Units Award Agreement (February 2013 and subsequent grants), including grants to named executive officers incorporated by reference to Exhibit 10(b) of the 1Q2013 10-Q.* | ||
(h) | Amendment to various plans in connection with FleetBoston Financial Corporation merger, incorporated by reference to Exhibit 10(v) of registrant’s 2003 Annual Report on Form 10-K (File No. 1-6523) filed on March 1, 2004.* | |
(i) | FleetBoston Supplemental Executive Retirement Plan, as amended by Amendment One thereto effective January 1, 1997, Amendment Two thereto effective October 15, 1997, Amendment Three thereto effective July 1, 1998, Amendment Four thereto effective August 15, 1999, Amendment Five thereto effective January 1, 2000, Amendment Six thereto effective October 10, 2001, Amendment Seven thereto effective February 19, 2002, Amendment Eight thereto effective October 15, 2002, Amendment Nine thereto effective January 1, 2003, Amendment Ten thereto effective October 21, 2003, and Amendment Eleven thereto effective December 31, 2004, incorporated by reference to Exhibit 10(r) of the 2004 10-K.* | |
(j) | FleetBoston Executive Deferred Compensation Plan No. 2, as amended by Amendment One thereto effective February 1, 1999, Amendment Two thereto effective January 1, 2000, Amendment Three thereto effective January 1, 2002, Amendment Four thereto effective October 15, 2002, Amendment Five thereto effective January 1, 2003, and Amendment Six thereto effective December 16, 2003, incorporated by reference to Exhibit 10(u) of the 2004 10-K.* | |
(k) | FleetBoston Executive Supplemental Plan, as amended by Amendment One thereto effective January 1, 2000, Amendment Two thereto effective January 1, 2002, Amendment Three thereto effective January 1, 2003, Amendment Four thereto effective January 1, 2003, and Amendment Five thereto effective December 31, 2004, incorporated by reference to Exhibit 10(v) of the 2004 10-K.* | |
(l) | Retirement Income Assurance Plan for Legacy Fleet, as amended and restated effective January 1, 2009, incorporated by reference to Exhibit 10(p) of the 2009 10-K; Amendment thereto dated December 16, 2010, incorporated by reference to Exhibit 10(c) of the 2010 10-K; and Amendment thereto dated June 29, 2012, incorporated by reference to Exhibit 10(l) of the 2012 10-K.* | |
(m) | Trust Agreement for the FleetBoston Executive Deferred Compensation Plans No. 1 and 2, incorporated by reference to Exhibit 10(x) of the 2004 10-K.* | |
(n) | Trust Agreement for the FleetBoston Executive Supplemental Plan, incorporated by reference to Exhibit 10(y) of the 2004 10-K.* | |
(o) | Trust Agreement for the FleetBoston Retirement Income Assurance Plan and the FleetBoston Supplemental Executive Retirement Plan, incorporated by reference to Exhibit 10(z) of the 2004 10-K.* | |
(p) | FleetBoston Directors Deferred Compensation and Stock Unit Plan, as amended by an amendment thereto effective as of July 1, 2000, a Second Amendment thereto effective as of January 1, 2003, a Third Amendment thereto dated April 14, 2003, and a Fourth Amendment thereto effective January 1, 2004, incorporated by reference to Exhibit 10(aa) of the 2004 10-K.* | |
(q) | BankBoston Corporation and its Subsidiaries Deferred Compensation Plan, as amended by a First Amendment thereto, a Second Amendment thereto, a Third Amendment thereto, an Instrument thereto (providing for the cessation of accruals effective December 31, 2000) and an Amendment thereto dated December 24, 2001, incorporated by reference to Exhibit 10(cc) of the 2004 10-K.* | |
(r) | BankBoston, N.A. Bonus Supplemental Employee Retirement Plan, as amended by a First Amendment thereto, a Second Amendment thereto, a Third Amendment thereto and a Fourth Amendment thereto, incorporated by reference to Exhibit 10(dd) of the 2004 10-K.* | |
(s) | Description of BankBoston Supplemental Life Insurance Plan, incorporated by reference to Exhibit 10(ee) of the 2004 10-K.* | |
(t) | BankBoston, N.A. Excess Benefit Supplemental Employee Retirement Plan, as amended by a First Amendment thereto, a Second Amendment thereto, a Third Amendment thereto (assumed by FleetBoston on October 1, 1999) and an Instrument thereto, incorporated by reference to Exhibit 10(ff) of the 2004 10-K.* | |
(u) | Description of BankBoston Supplemental Long-Term Disability Plan, incorporated by reference to Exhibit 10(gg) of the 2004 10-K.* | |
(v) | BankBoston Director Stock Award Plan, incorporated by reference to Exhibit 10(hh) of the 2004 10-K.* | |
(w) | BankBoston Corporation Directors’ Deferred Compensation Plan, as amended by a First Amendment thereto and a Second Amendment thereto, incorporated by reference to Exhibit 10(ii) of the 2004 10-K.* | |
(x) | BankBoston, N.A. Directors’ Deferred Compensation Plan, as amended by a First Amendment thereto and a Second Amendment thereto, incorporated by reference to Exhibit 10(jj) of the 2004 10-K.* | |
(y) | BankBoston 1997 Stock Option Plan for Non-Employee Directors, as amended by an amendment thereto dated as of October 16, 2001, incorporated by reference to Exhibit 10(kk) of the 2004 10-K.* | |
(z) | Description of BankBoston Director Retirement Benefits Exchange Program, incorporated by reference to Exhibit 10(ll) of the 2004 10-K.* | |
(aa) | Employment Agreement, dated as of March 14, 1999, between FleetBoston and Charles K. Gifford, as amended by an amendment thereto effective as of February 7, 2000, a Second Amendment thereto effective as of April 22, 2002, and a Third Amendment thereto effective as of October 1, 2002, incorporated by reference to Exhibit 10(mm) of the 2004 10-K.* | |
(bb) | Form of Change in Control Agreement entered into with Charles K. Gifford, incorporated by reference to Exhibit 10(nn) of the 2004 10-K.* |
E-2 Bank of America 2013 |
Exhibit No. | Description | |
(cc) | Global amendment to definition of “change in control” or “change of control,” together with a list of plans affected by such amendment, incorporated by reference to Exhibit 10(oo) of the 2004 10-K.* | |
(dd) | Retirement Agreement dated January 26, 2005 between registrant and Charles K. Gifford, incorporated by reference to Exhibit 10.1 of registrant’s Current Report on Form 8-K (File No. 1-6523) filed on January 26, 2005.* | |
(ee) | Employment Agreement dated October 27, 2003 between registrant and Brian T. Moynihan, incorporated by reference to Exhibit 10(d) of registrant’s Registration Statement on Form S-4 (Registration No. 333-110924) filed on December 4, 2003.* | |
(ff) | Cancellation Agreement dated October 26, 2005 between registrant and Brian T. Moynihan, incorporated by reference to Exhibit 10.1 of registrant’s Current Report on Form 8-K (File No. 1-6523) filed on October 26, 2005.* | |
(gg) | Agreement Regarding Participation in the Fleet Boston Supplemental Executive Retirement Plan dated October 26, 2005 between registrant and Brian T. Moynihan, incorporated by reference to Exhibit 10.2 of registrant’s Current Report on Form 8-K (File No. 1-6523) filed on October 26, 2005.* | |
(hh) | Forms of Stock Unit Agreements for salary stock units awarded to certain executive officers in connection with registrant’s participation in the U.S. Department of Treasury’s Troubled Asset Relief Program, incorporated by reference to Exhibit 10(uu) of the 2009 10-K.* | |
(ii) | Bank of America Corporation Equity Incentive Plan amended and restated effective as of January 1, 2008, incorporated by reference to Exhibit 10(zz) of the 2009 10-K.* | |
(jj) | Merrill Lynch & Co., Inc. Long-Term Incentive Compensation Plan amended as of January 1, 2009 and 2008 Restricted Units/Stock Option Grant Document for Thomas K. Montag, incorporated by reference to Exhibit 10(aaa) of the 2009 10-K.* | |
(kk) | Employment Letter dated May 1, 2008 between Merrill Lynch & Co., Inc. and Thomas K. Montag and Summary of Agreement with respect to Post-Employment Medical Coverage, incorporated by reference to Exhibit 10(bbb) of the 2009 10-K.* | |
(ll) | Form of Warrant to purchase common stock (expiring October 28, 2018), incorporated by reference to Exhibit 4.2 of registrant’s Registration Statement on Form 8-A (File No. 1-6523) filed on March 4, 2010. | |
(mm) | Form of Warrant to purchase common stock (expiring January 16, 2019), incorporated by reference to Exhibit 4.2 of registrant’s Registration Statement on Form 8-A (File No. 1-6523) filed on March 4, 2010. | |
(nn) | Retention Award Letter Agreement with Bruce R. Thompson dated January 26, 2009, incorporated by reference to Exhibit 10(ddd) of the 2010 10-K.* | |
(oo) | Aircraft Time Sharing Agreement (Multiple Aircraft) dated February 24, 2011 between Bank of America, N. A. and Brian T. Moynihan, incorporated by reference to Exhibit 10(jjj) of the 2010 10-K.* | |
(pp) | Bank of America Corporation and Designated Subsidiaries Supplemental Executive Retirement Plan for Senior Management Employees effective as of January 1, 1989, reflecting the following amendments: Amendments thereto dated as of June 28, 1989, June 27, 1990, July 21, 1991, December 3, 1992, December 15, 1992, September 28, 1994, March 27, 1996, June 25, 1997, April 10, 1998, June 24, 1998, October 1, 1998, December 14, 1999, and March 28, 2001; and Amendment thereto dated December 10, 2002, incorporated by reference to Exhibit 10(jjj) of the 2011 10-K.* | |
(qq) | Settlement Agreement dated as of June 28, 2011, among The Bank of New York Mellon, registrant, BAC Home Loans Servicing, LP, Countrywide Financial Corporation, and Countrywide Home Loans, Inc., incorporated by reference to Exhibit 99.2 of registrant’s Current Report on Form 8-K (File No. 1-6523) filed on June 29, 2011. | |
(rr) | Institutional Investor Agreement dated as of June 28, 2011, among The Bank of New York Mellon, registrant, BAC Home Loans Servicing, LP, Countrywide Financial Corporation, Countrywide Home Loans, Inc. and the other parties thereto, incorporated by reference to Exhibit 99.3 of registrant’s Current Report on Form 8-K (File No. 1-6523) filed on June 29, 2011. | |
(ss) | Securities Purchase Agreement dated August 25, 2011 between registrant and Berkshire Hathaway Inc. (including forms of the Certificate of Designations, Warrant and Registration Rights Agreement), incorporated by reference to Exhibit 1.1 of registrant’s Current Report on Form 8-K (File No. 1-6523) filed on August 25, 2011. | |
(tt) | Long-Term Cash Award Agreement for Gary G. Lynch dated July 12, 2011, incorporated by reference to Exhibit 10(b) of the 1Q 2012 10-Q.* | |
(uu) | Offer Letter between registrant and Gary G. Lynch dated April 14, 2011, incorporated by reference to Exhibit 10(c) of the 1Q 2012 10-Q.* | |
12 | Ratio of Earnings to Fixed Charges, filed herewith. Ratio of Earnings to Fixed Charges and Preferred Dividends, filed herewith. | |
21 | List of Subsidiaries, filed herewith. | |
23(a) | Consent of PricewaterhouseCoopers LLP, filed herewith. | |
(b) | Consent of PricewaterhouseCoopers LLP, filed herewith. | |
24 | Power of Attorney, filed herewith. | |
31(a) | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith. | |
(b) | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith. | |
32(a) | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith. | |
(b) | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith. | |
99(a) | Resolution Agreement dated as of January 6, 2013 by and among Fannie Mae, Bank of America, National Association and Countrywide Home Loans, Inc., incorporated by reference to Exhibit 99(a) of the 2012 10-K.** | |
Exhibit 101.INS | XBRL Instance Document, filed herewith. | |
Exhibit 101.SCH | XBRL Taxonomy Extension Schema Document, filed herewith. | |
Exhibit 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document, filed herewith. | |
Exhibit 101.LAB | XBRL Taxonomy Extension Label Linkbase Document, filed herewith. | |
Exhibit 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document, filed herewith. |
Bank of America 2013 E-3 |
Exhibit No. | Description | |
Exhibit 101.DEF | XBRL Taxonomy Extension Definitions Linkbase Document, filed herewith. |
* | Exhibit is a management contract or a compensatory plan or arrangement. |
** | The registrant has received confidential treatment with respect to portions of this exhibit. Those portions have been omitted from this exhibit and filed separately with the U.S. Securities and Exchange Commission. |
E-4 Bank of America 2013 |