Bank of America Corporation and Subsidiaries | Exhibit 12 | ||||||||||||||||||||||
Ratio of Earnings to Fixed Charges | |||||||||||||||||||||||
Ratio of Earnings to Fixed Charges and Preferred Dividends | |||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||
(Dollars in millions) | Nine Months Ended September 30, 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||
Excluding Interest on Deposits | |||||||||||||||||||||||
Income (loss) before income taxes | $ | 2,545 | $ | 16,172 | $ | 3,072 | $ | (230 | ) | $ | (1,323 | ) | $ | 4,360 | |||||||||
Equity in undistributed earnings (loss) of unconsolidated subsidiaries | (268 | ) | (66 | ) | 212 | 596 | 1,210 | (1,833 | ) | ||||||||||||||
Fixed charges: | |||||||||||||||||||||||
Interest expense | 7,574 | 11,359 | 14,754 | 18,618 | 19,977 | 23,000 | |||||||||||||||||
1/3 of net rent expense (1) | 771 | 1,091 | 1,092 | 1,072 | 1,099 | 1,110 | |||||||||||||||||
Total fixed charges | 8,345 | 12,450 | 15,846 | 19,690 | 21,076 | 24,110 | |||||||||||||||||
Preferred dividend requirements (2) | 1,045 | 1,767 | 1,080 | n/m | 802 | 5,921 | |||||||||||||||||
Fixed charges and preferred dividends | 9,390 | 14,217 | 16,926 | 19,690 | 21,878 | 30,031 | |||||||||||||||||
Earnings | $ | 10,622 | $ | 28,556 | $ | 19,130 | $ | 20,056 | $ | 20,963 | $ | 26,637 | |||||||||||
Ratio of earnings to fixed charges (3) | 1.27 | 2.29 | 1.21 | 1.02 | 0.99 | 1.10 | |||||||||||||||||
Ratio of earnings to fixed charges and preferred dividends (3, 4) | 1.13 | 2.01 | 1.13 | 1.02 | 0.96 | 0.89 | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||
(Dollars in millions) | Nine Months Ended September 30, 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||
Including Interest on Deposits | |||||||||||||||||||||||
Income (loss) before income taxes | $ | 2,545 | $ | 16,172 | $ | 3,072 | $ | (230 | ) | $ | (1,323 | ) | $ | 4,360 | |||||||||
Equity in undistributed earnings (loss) of unconsolidated subsidiaries | (268 | ) | (66 | ) | 212 | 596 | 1,210 | (1,833 | ) | ||||||||||||||
Fixed charges: | |||||||||||||||||||||||
Interest expense | 8,417 | 12,755 | 16,744 | 21,620 | 23,974 | 30,807 | |||||||||||||||||
1/3 of net rent expense (1) | 771 | 1,091 | 1,092 | 1,072 | 1,099 | 1,110 | |||||||||||||||||
Total fixed charges | 9,188 | 13,846 | 17,836 | 22,692 | 25,073 | 31,917 | |||||||||||||||||
Preferred dividend requirements (2) | 1,045 | 1,767 | 1,080 | n/m | 802 | 5,921 | |||||||||||||||||
Fixed charges and preferred dividends | 10,233 | 15,613 | 18,916 | 22,692 | 25,875 | 37,838 | |||||||||||||||||
Earnings | $ | 11,465 | $ | 29,952 | $ | 21,120 | $ | 23,058 | $ | 24,960 | $ | 34,444 | |||||||||||
Ratio of earnings to fixed charges (3) | 1.25 | 2.16 | 1.18 | 1.02 | 1.00 | 1.08 | |||||||||||||||||
Ratio of earnings to fixed charges and preferred dividends (3, 4) | 1.12 | 1.92 | 1.12 | 1.02 | 0.96 | 0.91 | |||||||||||||||||
(1) | Represents an appropriate interest factor. |
(2) | The earnings for 2011 reflect the impact of $8.8 billion of mortgage banking losses and $3.2 billion of goodwill impairment charges, which resulted in a negative preferred dividend requirement. |
(3) | 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. |
(4) | The earnings for 2009 were inadequate to cover fixed charges and preferred dividends. The earnings deficiency is a result of accelerated accretion of $4.0 billion recorded as a result of the repurchase of TARP Preferred Stock. The coverage deficiency for fixed charges and preferred dividends was $3.4 billion. |