Bank of America Corporation and Subsidiaries
 
 
 
 
 
 
 
 
Exhibit 12
 
Ratio of Earnings to Fixed Charges
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges and Preferred Dividends
 
 
 
Year Ended December 31
(Dollars in millions)
Three Months Ended March 31, 2014
 
2013
 
2012
 
2011
 
2010
 
2009
Excluding Interest on Deposits
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
(681
)
 
$
16,172

 
$
3,072

 
$
(230
)
 
$
(1,323
)
 
$
4,360

Equity in undistributed earnings (loss) of unconsolidated subsidiaries
(63
)
 
(66
)
 
212

 
596

 
1,210

 
(1,833
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
2,559

 
11,359

 
14,754

 
18,618

 
19,977

 
23,000

1/3 of net rent expense (1)
258

 
1,091

 
1,092

 
1,072

 
1,099

 
1,110

Total fixed charges
2,817

 
12,450

 
15,846

 
19,690

 
21,076

 
24,110

Preferred dividend requirements (2)
587

 
1,767

 
1,080

 
n/m

 
802

 
5,921

Fixed charges and preferred dividends
3,404

 
14,217

 
16,926

 
19,690

 
21,878

 
30,031

Earnings
$
2,073

 
$
28,556

 
$
19,130

 
$
20,056

 
$
20,963

 
$
26,637

Ratio of earnings to fixed charges (3, 4)
0.74

 
2.29

 
1.21

 
1.02

 
0.99

 
1.10

Ratio of earnings to fixed charges and preferred dividends (3, 4, 5)
0.61

 
2.01

 
1.13

 
1.02

 
0.96

 
0.89

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31
(Dollars in millions)
Three Months Ended March 31, 2014
 
2013
 
2012
 
2011
 
2010
 
2009
Including Interest on Deposits
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
(681
)
 
$
16,172

 
$
3,072

 
$
(230
)
 
$
(1,323
)
 
$
4,360

Equity in undistributed earnings (loss) of unconsolidated subsidiaries
(63
)
 
(66
)
 
212

 
596

 
1,210

 
(1,833
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
2,850

 
12,755

 
16,744

 
21,620

 
23,974

 
30,807

1/3 of net rent expense (1)
258

 
1,091

 
1,092

 
1,072

 
1,099

 
1,110

Total fixed charges
3,108

 
13,846

 
17,836

 
22,692

 
25,073

 
31,917

Preferred dividend requirements (2)
587

 
1,767

 
1,080

 
n/m

 
802

 
5,921

Fixed charges and preferred dividends
3,695

 
15,613

 
18,916

 
22,692

 
25,875

 
37,838

Earnings
$
2,364

 
$
29,952

 
$
21,120

 
$
23,058

 
$
24,960

 
$
34,444

Ratio of earnings to fixed charges (3, 4)
0.76

 
2.16

 
1.18

 
1.02

 
1.00

 
1.08

Ratio of earnings to fixed charges and preferred dividends (3, 4, 5)
0.64

 
1.92

 
1.12

 
1.02

 
0.96

 
0.91

(1) 
Represents an appropriate interest factor.
(2) 
Reflects the impact of $8.8 billion of mortgage banking losses and $3.2 billion of goodwill impairment charges during 2011 which resulted in a negative preferred dividend requirement.
(3) 
The earnings for the three months ended March 31, 2014 were inadequate to cover fixed charges, and fixed charges and preferred dividends. The earnings deficiency is the result of $6.0 billion of litigation expense during the three months ended March 31, 2014. The coverage deficiency for fixed charges was $744 million and the coverage deficiency for fixed charges and preferred dividends was $1.3 billion for the three months ended March 31, 2014.
(4) 
The earnings for 2010 were inadequate to cover fixed charges, and fixed charges and preferred dividends. The earnings deficiency is a result of $12.4 billion of goodwill impairment charges during 2010. The coverage deficiency for fixed charges was $113 million and the coverage deficiency for fixed charges and preferred dividends was $915 million for 2010.
(5) 
The earnings for 2009 were inadequate to cover fixed charges and preferred dividends. The earnings deficiency is a result of accelerated accretion of $4.0 billion recorded as a result of the repurchase of TARP Preferred Stock. The coverage deficiency for fixed charges and preferred dividends was $3.4 billion.
n/m = not meaningful