Revised Supplemental Information
to Reflect Segment Realignment
Full Years 2014 and 2013
Quarterly Information for 2014
 






 











This information is preliminary and based on company data available at the time of this Form 8-K filing. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America does not undertake an obligation to, and disclaims any duty to, update any of the information provided.




Bank of America Corporation and Subsidiaries
 
Table of Contents
Page
 
 
 
Consumer Banking
 
Global Wealth & Investment Management
 
Global Banking
 
Global Markets
 
Legacy Assets & Servicing
 
All Other
 
 
 
 
 


Description of Segment Realignment

From time to time, including in its Annual Report on Form 10-K for the year ended December 31, 2014 (the Annual Report), Bank of America Corporation (the Corporation) has indicated that it may reclassify its business segment results based on, among other things, changes in its organizational alignment. In the Annual Report, the Corporation reported its results of operations through five business segments: Consumer & Business Banking (CBB), Consumer Real Estate Services (CRES), Global Wealth & Investment Management (GWIM), Global Banking and Global Markets, with the remaining operations recorded in All Other. Effective January 1, 2015, to align the segments with how we manage the businesses in 2015, the Corporation changed its basis of presentation, and following such change, reports its results of operations through the following five business segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, Global Markets and Legacy Assets & Servicing (LAS), with the remaining operations recorded in All Other. The Home Loans subsegment, which was included in the former CRES segment, is now included in Consumer Banking, and LAS has become a separate segment. A portion of the Business Banking business, based on the size of the client, was moved from the former CBB segment to Global Banking, and the former CBB segment was renamed Consumer Banking. Also, Bank of America Merchant Services, the Corporation's merchant processing joint venture, moved from the former CBB segment to All Other. In addition, certain management accounting methodologies, including the treatment of intersegment assets and liabilities, and related allocations were refined. Prior periods have been reclassified for comparability.







Bank of America Corporation and Subsidiaries
Quarterly Results by Business Segment
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2014
 
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy Assets & Servicing
 
All
Other
Net interest income (FTE basis)
 
$
9,865

 
 
$
4,966

 
$
1,407

 
$
2,420

 
$
1,032

 
$
390

 
$
(350
)
Noninterest income
 
9,090

 
 
2,793

 
3,195

 
1,912

 
1,338

 
248

 
(396
)
Total revenue, net of interest expense (FTE basis)
 
18,955

 
 
7,759

 
4,602

 
4,332

 
2,370

 
638

 
(746
)
Provision for credit losses
 
219

 
 
653

 
14

 
(31
)
 
26

 
(113
)
 
(330
)
Noninterest expense
 
14,196

 
 
4,409

 
3,440

 
2,002

 
2,500

 
1,364

 
481

Income (loss) before income taxes (FTE basis)
 
4,540

 
 
2,697

 
1,148

 
2,361

 
(156
)
 
(613
)
 
(897
)
Income tax expense (benefit) (FTE basis)
 
1,490

 
 
1,036

 
442

 
850

 
(84
)
 
(231
)
 
(523
)
Net income (loss)
 
$
3,050

 
 
$
1,661

 
$
706

 
$
1,511

 
$
(72
)
 
$
(382
)
 
$
(374
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
884,733

 
 
$
199,215

 
$
123,544

 
$
287,017

 
$
58,094

 
$
33,772

 
$
183,091

Total assets (1)
 
2,137,551

 
 
582,115

 
266,716

 
369,292

 
611,713

 
48,557

 
259,158

Total deposits
 
1,122,514

 
 
517,580

 
238,835

 
296,205

 
n/m

 
n/m

 
22,163

Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
881,391

 
 
$
202,000

 
$
125,431

 
$
288,905

 
$
59,388

 
$
33,055

 
$
172,612

Total assets (1)
 
2,104,534

 
 
589,048

 
274,887

 
357,081

 
579,512

 
45,958

 
258,048

Total deposits
 
1,118,936

 
 
524,413

 
245,391

 
283,191

 
n/m

 
n/m

 
19,242

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2014
 
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy Assets & Servicing
 
All
Other
Net interest income (FTE basis)
 
$
10,444

 
 
$
5,081

 
$
1,459

 
$
2,455

 
$
994

 
$
387

 
$
68

Noninterest income
 
10,990

 
 
2,668

 
3,207

 
1,908

 
3,148

 
169

 
(110
)
Total revenue, net of interest expense (FTE basis)
 
21,434

 
 
7,749

 
4,666

 
4,363

 
4,142

 
556

 
(42
)
Provision for credit losses
 
636

 
 
668

 
(15
)
 
(64
)
 
45

 
267

 
(265
)
Noninterest expense
 
20,142

 
 
4,447

 
3,403

 
2,050

 
3,335

 
6,647

 
260

Income (loss) before income taxes (FTE basis)
 
656

 
 
2,634

 
1,278

 
2,377

 
762

 
(6,358
)
 
(37
)
Income tax expense (benefit) (FTE basis)
 
888

 
 
956

 
465

 
866

 
389

 
(1,245
)
 
(543
)
Net income (loss)
 
$
(232
)
 
 
$
1,678

 
$
813

 
$
1,511

 
$
373

 
$
(5,113
)
 
$
506

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
899,241

 
 
$
197,374

 
$
121,002

 
$
283,284

 
$
62,939

 
$
35,238

 
$
199,404

Total assets (1)
 
2,136,109

 
 
578,927

 
266,324

 
368,394

 
599,884

 
53,762

 
268,818

Total deposits
 
1,127,488

 
 
514,549

 
239,352

 
295,715

 
n/m

 
n/m

 
29,880

Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
891,315

 
 
$
198,467

 
$
122,395

 
$
284,968

 
$
62,645

 
$
34,484

 
$
188,356

Total assets (1)
 
2,123,613

 
 
580,381

 
266,240

 
358,786

 
598,668

 
56,900

 
262,638

Total deposits
 
1,111,981

 
 
515,580

 
238,710

 
286,128

 
n/m

 
n/m

 
25,418

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Total assets include asset allocations to match liabilities (i.e., deposits).
 
n/m = not meaningful


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.























This segment information is preliminary and based on company data available at the time of this filing.
2



Bank of America Corporation and Subsidiaries
Quarterly Results by Business Segment (continued)
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Second Quarter 2014
 
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy Assets & Servicing
 
All
Other
Net interest income (FTE basis)
 
$
10,226

 
 
$
5,060

 
$
1,485

 
$
2,446

 
$
958

 
$
362

 
$
(85
)
Noninterest income
 
11,734

 
 
2,589

 
3,104

 
2,001

 
3,632

 
438

 
(30
)
Total revenue, net of interest expense (FTE basis)
 
21,960

 
 
7,649

 
4,589

 
4,447

 
4,590

 
800

 
(115
)
Provision for credit losses
 
411

 
 
550

 
(8
)
 
136

 
20

 
(39
)
 
(248
)
Noninterest expense
 
18,541

 
 
4,505

 
3,445

 
2,020

 
2,861

 
5,231

 
479

Income (loss) before income taxes (FTE basis)
 
3,008

 
 
2,594

 
1,152

 
2,291

 
1,709

 
(4,392
)
 
(346
)
Income tax expense (benefit) (FTE basis)
 
717

 
 
960

 
426

 
849

 
604

 
(1,653
)
 
(469
)
Net income (loss)
 
$
2,291

 
 
$
1,634

 
$
726

 
$
1,442

 
$
1,105

 
$
(2,739
)
 
$
123

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
912,580

 
 
$
195,413

 
$
118,512

 
$
287,795

 
$
63,579

 
$
36,705

 
$
210,576

Total assets (1)
 
2,169,555

 
 
578,514

 
266,781

 
362,605

 
617,087

 
55,626

 
288,942

Total deposits
 
1,128,563

 
 
514,137

 
240,042

 
287,786

 
n/m

 
n/m

 
36,472

Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
911,899

 
 
$
197,021

 
$
120,187

 
$
286,976

 
$
66,260

 
$
35,984

 
$
205,471

Total assets (1)
 
2,170,557

 
 
579,870

 
263,957

 
374,376

 
610,364

 
52,647

 
289,343

Total deposits
 
1,134,329

 
 
514,838

 
237,046

 
299,188

 
n/m

 
n/m

 
33,824

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2014
 
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy Assets & Servicing
 
All
Other
Net interest income (FTE basis)
 
$
10,286

 
 
$
5,071

 
$
1,485

 
$
2,507

 
$
1,002

 
$
377

 
$
(156
)
Noninterest income
 
12,481

 
 
2,580

 
3,062

 
2,028

 
4,015

 
309

 
487

Total revenue, net of interest expense (FTE basis)
 
22,767

 
 
7,651

 
4,547

 
4,535

 
5,017

 
686

 
331

Provision for credit losses
 
1,009

 
 
809

 
23

 
281

 
19

 
12

 
(135
)
Noninterest expense
 
22,238

 
 
4,495

 
3,359

 
2,190

 
3,075

 
7,401

 
1,718

Income (loss) before income taxes (FTE basis)
 
(480
)
 
 
2,347

 
1,165

 
2,064

 
1,923

 
(6,727
)
 
(1,252
)
Income tax expense (benefit) (FTE basis)
 
(204
)
 
 
879

 
436

 
773

 
610

 
(1,847
)
 
(1,055
)
Net income (loss)
 
$
(276
)
 
 
$
1,468

 
$
729

 
$
1,291

 
$
1,313

 
$
(4,880
)
 
$
(197
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
919,482

 
 
$
196,425

 
$
115,945

 
$
287,920

 
$
63,696

 
$
38,104

 
$
217,392

Total assets (1)
 
2,139,266

 
 
569,650

 
270,275

 
362,264

 
601,427

 
57,400

 
278,250

Total deposits
 
1,118,178

 
 
504,849

 
242,792

 
285,594

 
n/m

 
n/m

 
34,982

Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
916,217

 
 
$
194,676

 
$
116,482

 
$
289,645

 
$
64,598

 
$
37,401

 
$
213,415

Total assets (1)
 
2,149,851

 
 
586,472

 
271,211

 
359,786

 
594,792

 
58,605

 
278,985

Total deposits
 
1,133,650

 
 
521,453

 
244,051

 
286,285

 
n/m

 
n/m

 
34,854

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Total assets include asset allocations to match liabilities (i.e., deposits).
 
n/m = not meaningful


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
3


Bank of America Corporation and Subsidiaries
Annual Results by Business Segment
(Dollars in millions) 
 
 
Year Ended December 31, 2014
 
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy Assets & Servicing
 
All
Other
Net interest income (FTE basis)
 
$
40,821

 
 
$
20,178

 
$
5,836

 
$
9,828

 
$
3,986

 
$
1,516

 
$
(523
)
Noninterest income
 
44,295

 
 
10,630

 
12,568

 
7,849

 
12,133

 
1,164

 
(49
)
Total revenue, net of interest expense (FTE basis)
 
85,116

 
 
30,808

 
18,404

 
17,677

 
16,119

 
2,680

 
(572
)
Provision for credit losses
 
2,275

 
 
2,680

 
14

 
322

 
110

 
127

 
(978
)
Noninterest expense
 
75,117

 
 
17,856

 
13,647

 
8,262

 
11,771

 
20,643

 
2,938

Income (loss) before income taxes (FTE basis)
 
7,724

 
 
10,272

 
4,743

 
9,093

 
4,238

 
(18,090
)
 
(2,532
)
Income tax expense (benefit) (FTE basis)
 
2,891

 
 
3,831

 
1,769

 
3,338

 
1,519

 
(4,976
)
 
(2,590
)
Net income (loss)
 
$
4,833

 
 
$
6,441

 
$
2,974

 
$
5,755

 
$
2,719

 
$
(13,114
)
 
$
58

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
903,901

 
 
$
197,115

 
$
119,775

 
$
286,493

 
$
62,064

 
$
35,941

 
$
202,513

Total assets (1)
 
2,145,590

 
 
577,340

 
267,511

 
365,665

 
607,535

 
52,134

 
275,405

Total deposits
 
1,124,207

 
 
512,818

 
240,242

 
291,366

 
n/m

 
n/m

 
30,837

Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
881,391

 
 
$
202,000

 
$
125,431

 
$
288,905

 
$
59,388

 
$
33,055

 
$
172,612

Total assets (1)
 
2,104,534

 
 
589,048

 
274,887

 
357,081

 
579,512

 
45,958

 
258,048

Total deposits
 
1,118,936

 
 
524,413

 
245,391

 
283,191

 
n/m

 
n/m

 
19,242

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2013
 
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy Assets & Servicing
 
All
Other
Net interest income (FTE basis)
 
$
43,124

 
 
$
20,620

 
$
6,064

 
$
9,704

 
$
4,224

 
$
1,541

 
$
971

Noninterest income
 
46,677

 
 
11,313

 
11,726

 
7,800

 
11,166

 
2,915

 
1,757

Total revenue, net of interest expense (FTE basis)
 
89,801

 
 
31,933

 
17,790

 
17,504

 
15,390

 
4,456

 
2,728

Provision for credit losses
 
3,556

 
 
3,166

 
56

 
1,142

 
140

 
(283
)
 
(665
)
Noninterest expense
 
69,214

 
 
18,911

 
13,033

 
8,149

 
11,995

 
12,483

 
4,643

Income (loss) before income taxes (FTE basis)
 
17,031

 
 
9,856

 
4,701

 
8,213

 
3,255

 
(7,744
)
 
(1,250
)
Income tax expense (benefit) (FTE basis)
 
5,600

 
 
3,613

 
1,724

 
3,013

 
2,101

 
(2,839
)
 
(2,012
)
Net income (loss)
 
$
11,431

 
 
$
6,243

 
$
2,977

 
$
5,200

 
$
1,154

 
$
(4,905
)
 
$
762

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
918,641

 
 
$
196,177

 
$
111,023

 
$
273,320

 
$
60,058

 
$
42,604

 
$
235,459

Total assets (1)
 
2,163,513

 
 
556,045

 
266,047

 
331,947

 
632,681

 
67,129

 
309,664

Total deposits
 
1,089,735

 
 
489,464

 
242,161

 
265,733

 
n/m

 
n/m

 
35,443

Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
928,233

 
 
$
199,703

 
$
115,846

 
$
285,880

 
$
67,381

 
$
38,732

 
$
220,691

Total assets (1)
 
2,102,273

 
 
567,741

 
271,290

 
360,789

 
575,473

 
59,458

 
267,522

Total deposits
 
1,119,271

 
 
502,054

 
244,901

 
294,559

 
n/m

 
n/m

 
28,165

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Total assets include asset allocations to match liabilities (i.e., deposits).

n/m = not meaningful


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
4


Bank of America Corporation and Subsidiaries
Consumer Banking Segment Results
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth
Quarter
2014
 
Third
Quarter
2014
 
Second
Quarter
2014
 
First
Quarter
2014
 
 
2014
 
2013
 
 
 
 
 
Net interest income (FTE basis)
 
$
20,178

 
$
20,620

 
 
$
4,966

 
$
5,081

 
$
5,060

 
$
5,071

Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Card income
 
4,844

 
4,756

 
 
1,325

 
1,219

 
1,152

 
1,148

Service charges
 
4,160

 
3,979

 
 
1,043

 
1,085

 
1,039

 
993

Mortgage banking income
 
813

 
1,916

 
 
192

 
206

 
237

 
178

All other income
 
813

 
662

 
 
233

 
158

 
161

 
261

Total noninterest income
 
10,630

 
11,313

 
 
2,793

 
2,668

 
2,589

 
2,580

Total revenue, net of interest expense (FTE basis)
 
30,808

 
31,933

 
 
7,759

 
7,749

 
7,649

 
7,651

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
2,680

 
3,166

 
 
653

 
668

 
550

 
809

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
17,856

 
18,911

 
 
4,409

 
4,447

 
4,505

 
4,495

Income before income taxes (FTE basis)
 
10,272

 
9,856

 
 
2,697

 
2,634

 
2,594

 
2,347

Income tax expense (FTE basis)
 
3,831

 
3,613

 
 
1,036

 
956

 
960

 
879

Net income
 
$
6,441

 
$
6,243

 
 
$
1,661

 
$
1,678

 
$
1,634

 
$
1,468

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
3.73
%
 
3.96
%
 
 
3.61
%
 
3.71
%
 
3.74
%
 
3.85
%
Return on average allocated capital (1)
 
21

 
20

 
 
22

 
22

 
22

 
20

Efficiency ratio (FTE basis)
 
57.96

 
59.22

 
 
56.80

 
57.40

 
58.90

 
58.76

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
197,115

 
$
196,177

 
 
$
199,215

 
$
197,374

 
$
195,413

 
$
196,425

Total earning assets (2)
 
541,225

 
520,476

 
 
545,721

 
542,858

 
542,421

 
533,751

Total assets (2)
 
577,340

 
556,045

 
 
582,115

 
578,927

 
578,514

 
569,650

Total deposits
 
512,818

 
489,464

 
 
517,580

 
514,549

 
514,137

 
504,849

Allocated capital (1)
 
30,000

 
30,700

 
 
30,000

 
30,000

 
30,000

 
30,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
202,000

 
$
199,703

 
 
$
202,000

 
$
198,467

 
$
197,021

 
$
194,676

Total earning assets (2)
 
552,117

 
531,557

 
 
552,117

 
544,916

 
543,827

 
550,413

Total assets (2)
 
589,048

 
567,741

 
 
589,048

 
580,381

 
579,870

 
586,472

Total deposits
 
524,413

 
502,054

 
 
524,413

 
515,580

 
514,838

 
521,453

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 25-27.)
(2) 
Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
5


Bank of America Corporation and Subsidiaries
Consumer Banking Annual Results
(Dollars in millions)
 
 
Year Ended December 31, 2014
 
 
Total Consumer Banking
 
 
Deposits
 
Consumer
Lending
Net interest income (FTE basis)
 
$
20,178

 
 
$
9,437

 
$
10,741

Noninterest income:
 
 
 
 
 
 
 
Card income
 
4,844

 
 
10

 
4,834

Service charges
 
4,160

 
 
4,159

 
1

Mortgage banking income
 
813

 
 
—

 
813

All other income
 
813

 
 
415

 
398

Total noninterest income
 
10,630

 
 
4,584

 
6,046

Total revenue, net of interest expense (FTE basis)
 
30,808

 
 
14,021

 
16,787

 
 
 
 
 
 
 
 
Provision for credit losses
 
2,680

 
 
268

 
2,412

 
 
 
 
 
 
 
 
Noninterest expense
 
17,856

 
 
9,848

 
8,008

Income before income taxes (FTE basis)
 
10,272

 
 
3,905

 
6,367

Income tax expense (FTE basis)
 
3,831

 
 
1,456

 
2,375

Net income
 
$
6,441

 
 
$
2,449

 
$
3,992

 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
3.73
%
 
 
1.83
%
 
5.54
%
Return on average allocated capital (1)
 
21

 
 
22

 
21

Efficiency ratio (FTE basis)
 
57.96

 
 
70.24

 
47.70

 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Total loans and leases
 
$
197,115

 
 
$
6,059

 
$
191,056

Total earning assets (2)
 
541,225

 
 
516,142

 
193,923

Total assets (2)
 
577,340

 
 
542,850

 
203,330

Total deposits
 
512,818

 
 
511,923

 
n/m

Allocated capital (1)
 
30,000

 
 
11,000

 
19,000

 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
Total loans and leases
 
$
202,000

 
 
$
5,951

 
$
196,049

Total earning assets (2)
 
552,117

 
 
527,045

 
199,097

Total assets (2)
 
589,048

 
 
554,344

 
208,729

Total deposits
 
524,413

 
 
523,348

 
n/m

 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2013
 
 
Total Consumer Banking
 
 
Deposits
 
Consumer
Lending
Net interest income (FTE basis)
 
$
20,620

 
 
$
9,028

 
$
11,592

Noninterest income:
 
 
 
 
 
 
 
Card income
 
4,756

 
 
12

 
4,744

Service charges
 
3,979

 
 
3,978

 
1

Mortgage banking income
 
1,916

 
 
—

 
1,916

All other income
 
662

 
 
374

 
288

Total noninterest income
 
11,313

 
 
4,364

 
6,949

Total revenue, net of interest expense (FTE basis)
 
31,933

 
 
13,392

 
18,541

 
 
 
 
 
 
 
 
Provision for credit losses
 
3,166

 
 
231

 
2,935

 
 
 
 
 
 
 
 
Noninterest expense
 
18,911

 
 
10,249

 
8,662

Income before income taxes (FTE basis)
 
9,856

 
 
2,912

 
6,944

Income tax expense (FTE basis)
 
3,613

 
 
1,066

 
2,547

Net income
 
$
6,243

 
 
$
1,846

 
$
4,397

 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
3.96
%
 
 
1.83
%
 
5.92
%
Return on average allocated capital (1)
 
20

 
 
18

 
21

Efficiency ratio (FTE basis)
 
59.22

 
 
76.53

 
46.72

 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Total loans and leases
 
$
196,177

 
 
$
6,373

 
$
189,804

Total earning assets (2)
 
520,476

 
 
492,555

 
195,869

Total assets (2)
 
556,045

 
 
519,133

 
204,860

Total deposits
 
489,464

 
 
488,915

 
n/m

Allocated capital (1)
 
30,700

 
 
10,100

 
20,600

 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
Total loans and leases
 
$
199,703

 
 
$
6,166

 
$
193,537

Total earning assets (2)
 
531,557

 
 
504,428

 
197,987

Total assets (2)
 
567,741

 
 
531,290

 
207,309

Total deposits
 
502,054

 
 
501,220

 
n/m

 
 
 
 
 
 
 
 
For footnotes see page 9.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.

This segment information is preliminary and based on company data available at the time of this filing.
6


Bank of America Corporation and Subsidiaries
Consumer Banking Quarterly Results
(Dollars in millions)
 
 
Fourth Quarter 2014
 
 
Total Consumer Banking
 
 
Deposits
 
Consumer
Lending
Net interest income (FTE basis)
 
$
4,966

 
 
$
2,312

 
$
2,654

Noninterest income:
 
 
 
 
 
 
 
Card income
 
1,325

 
 
3

 
1,322

Service charges
 
1,043

 
 
1,042

 
1

Mortgage banking income
 
192

 
 
—

 
192

All other income
 
233

 
 
120

 
113

Total noninterest income
 
2,793

 
 
1,165

 
1,628

Total revenue, net of interest expense (FTE basis)
 
7,759

 
 
3,477

 
4,282

 
 
 
 
 
 
 
 
Provision for credit losses
 
653

 
 
61

 
592

 
 
 
 
 
 
 
 
Noninterest expense
 
4,409

 
 
2,490

 
1,919

Income before income taxes (FTE basis)
 
2,697

 
 
926

 
1,771

Income tax expense (FTE basis)
 
1,036

 
 
358

 
678

Net income
 
$
1,661

 
 
$
568

 
$
1,093

 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
3.61
%
 
 
1.76
%
 
5.38
%
Return on average allocated capital (1)
 
22

 
 
20

 
23

Efficiency ratio (FTE basis)
 
56.80

 
 
71.58

 
44.80

 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Total loans and leases
 
$
199,215

 
 
$
5,966

 
$
193,249

Total earning assets (2)
 
545,721

 
 
520,456

 
195,788

Total assets (2)
 
582,115

 
 
547,358

 
205,280

Total deposits
 
517,580

 
 
516,479

 
n/m

Allocated capital (1)
 
30,000

 
 
11,000

 
19,000

 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
Total loans and leases
 
$
202,000

 
 
$
5,951

 
$
196,049

Total earning assets (2)
 
552,117

 
 
527,045

 
199,097

Total assets (2)
 
589,048

 
 
554,344

 
208,729

Total deposits
 
524,413

 
 
523,348

 
n/m

 
 
 
 
 
 
 
 
 
 
Third Quarter 2014
 
 
Total Consumer Banking
 
 
Deposits
 
Consumer
Lending
Net interest income (FTE basis)
 
$
5,081

 
 
$
2,389

 
$
2,692

Noninterest income:
 
 
 
 
 
 
 
Card income
 
1,219

 
 
2

 
1,217

Service charges
 
1,085

 
 
1,085

 
—

Mortgage banking income
 
206

 
 
—

 
206

All other income
 
158

 
 
116

 
42

Total noninterest income
 
2,668

 
 
1,203

 
1,465

Total revenue, net of interest expense (FTE basis)
 
7,749

 
 
3,592

 
4,157

 
 
 
 
 
 
 
 
Provision for credit losses
 
668

 
 
93

 
575

 
 
 
 
 
 
 
 
Noninterest expense
 
4,447

 
 
2,420

 
2,027

Income before income taxes (FTE basis)
 
2,634

 
 
1,079

 
1,555

Income tax expense (FTE basis)
 
956

 
 
391

 
565

Net income
 
$
1,678

 
 
$
688

 
$
990

 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
3.71
%
 
 
1.83
%
 
5.51
%
Return on average allocated capital (1)
 
22

 
 
25

 
21

Efficiency ratio (FTE basis)
 
57.40

 
 
67.41

 
48.75

 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Total loans and leases
 
$
197,374

 
 
$
6,076

 
$
191,298

Total earning assets (2)
 
542,858

 
 
518,120

 
193,970

Total assets (2)
 
578,927

 
 
544,618

 
203,541

Total deposits
 
514,549

 
 
513,668

 
n/m

Allocated capital (1)
 
30,000

 
 
11,000

 
19,000

 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
Total loans and leases
 
$
198,467

 
 
$
6,038

 
$
192,429

Total earning assets (2)
 
544,916

 
 
518,862

 
195,728

Total assets (2)
 
580,381

 
 
545,295

 
204,760

Total deposits
 
515,580

 
 
514,437

 
n/m

 
 
 
 
 
 
 
 
For footnotes see page 9.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.

This segment information is preliminary and based on company data available at the time of this filing.
7


Bank of America Corporation and Subsidiaries
Consumer Banking Quarterly Results (continued)
(Dollars in millions)
 
 
Second Quarter 2014
 
 
Total Consumer Banking
 
 
Deposits
 
Consumer
Lending
Net interest income (FTE basis)
 
$
5,060

 
 
$
2,396

 
$
2,664

Noninterest income:
 
 
 
 
 
 
 
Card income
 
1,152

 
 
3

 
1,149

Service charges
 
1,039

 
 
1,039

 
—

Mortgage banking income
 
237

 
 
—

 
237

All other income
 
161

 
 
88

 
73

Total noninterest income
 
2,589

 
 
1,130

 
1,459

Total revenue, net of interest expense (FTE basis)
 
7,649

 
 
3,526

 
4,123

 
 
 
 
 
 
 
 
Provision for credit losses
 
550

 
 
50

 
500

 
 
 
 
 
 
 
 
Noninterest expense
 
4,505

 
 
2,473

 
2,032

Income before income taxes (FTE basis)
 
2,594

 
 
1,003

 
1,591

Income tax expense (FTE basis)
 
960

 
 
371

 
589

Net income
 
$
1,634

 
 
$
632

 
$
1,002

 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
3.74
%
 
 
1.86
%
 
5.56
%
Return on average allocated capital (1)
 
22

 
 
23

 
21

Efficiency ratio (FTE basis)
 
58.90

 
 
70.12

 
49.29

 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Total loans and leases
 
$
195,413

 
 
$
6,103

 
$
189,310

Total earning assets (2)
 
542,421

 
 
517,509

 
192,238

Total assets (2)
 
578,514

 
 
544,248

 
201,592

Total deposits
 
514,137

 
 
513,326

 
n/m

Allocated capital (1)
 
30,000

 
 
11,000

 
19,000

 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
Total loans and leases
 
$
197,021

 
 
$
6,127

 
$
190,894

Total earning assets (2)
 
543,827

 
 
518,429

 
194,220

Total assets (2)
 
579,870

 
 
544,925

 
203,767

Total deposits
 
514,838

 
 
513,944

 
n/m

 
 
 
 
 
 
 
 
For footnotes see page 9.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.

This segment information is preliminary and based on company data available at the time of this filing.
8


Bank of America Corporation and Subsidiaries
Consumer Banking Quarterly Results (continued)
(Dollars in millions)
 
 
First Quarter 2014
 
 
Total Consumer Banking
 
 
Deposits
 
Consumer
Lending
Net interest income (FTE basis)
 
$
5,071

 
 
$
2,340

 
$
2,731

Noninterest income:
 
 
 
 
 
 
 
Card income
 
1,148

 
 
2

 
1,146

Service charges
 
993

 
 
993

 
—

Mortgage banking income
 
178

 
 
—

 
178

All other income
 
261

 
 
91

 
170

Total noninterest income
 
2,580

 
 
1,086

 
1,494

Total revenue, net of interest expense (FTE basis)
 
7,651

 
 
3,426

 
4,225

 
 
 
 
 
 
 
 
Provision for credit losses
 
809

 
 
64

 
745

 
 
 
 
 
 
 
 
Noninterest expense
 
4,495

 
 
2,465

 
2,030

Income before income taxes (FTE basis)
 
2,347

 
 
897

 
1,450

Income tax expense (FTE basis)
 
879

 
 
336

 
543

Net income
 
$
1,468

 
 
$
561

 
$
907

 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
3.85
%
 
 
1.87
%
 
5.72
%
Return on average allocated capital (1)
 
20

 
 
21

 
19

Efficiency ratio (FTE basis)
 
58.76

 
 
71.97

 
48.05

 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
Total loans and leases
 
$
196,425

 
 
$
6,092

 
$
190,333

Total earning assets (2)
 
533,751

 
 
508,332

 
193,671

Total assets (2)
 
569,650

 
 
535,023

 
202,879

Total deposits
 
504,849

 
 
504,065

 
n/m

Allocated capital (1)
 
30,000

 
 
11,000

 
19,000

 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
Total loans and leases
 
$
194,676

 
 
$
6,110

 
$
188,566

Total earning assets (2)
 
550,413

 
 
524,853

 
192,570

Total assets (2)
 
586,472

 
 
551,609

 
201,873

Total deposits
 
521,453

 
 
520,580

 
n/m

 
 
 
 
 
 
 
 
(1) 
Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 25-27.)
(2) 
For presentation purposes, in segments or businesses where the total of liabilities and equity exceeds assets, the Corporation allocates 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 Consumer Banking.

n/m = not meaningful


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
9


Bank of America Corporation and Subsidiaries
Consumer Banking Key Indicators
(Dollars in millions)
 
 
Year Ended
December 31
 
 
Fourth
Quarter
2014
 
Third
Quarter
2014
 
Second
Quarter
2014
 
First
Quarter
2014
 
 
2014
 
2013
 
 
 
 
 
Average deposit balances
 
 
 
 
 
 
 
 
 
 
 
 
 
Checking
 
$
236,140

 
$
215,510

 
 
$
241,254

 
$
238,133

 
$
236,197

 
$
228,815

Savings
 
44,616

 
42,134

 
 
43,972

 
45,124

 
45,769

 
43,588

MMS
 
168,493

 
157,328

 
 
172,992

 
168,815

 
167,058

 
165,016

CDs and IRAs
 
60,766

 
71,163

 
 
56,476

 
59,666

 
62,293

 
64,731

Non-U.S. and other
 
2,803

 
3,329

 
 
2,886

 
2,811

 
2,820

 
2,699

Total average deposit balances
 
$
512,818

 
$
489,464

 
 
$
517,580

 
$
514,549

 
$
514,137

 
$
504,849

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposit spreads (excludes noninterest costs)
 
 
 
 
 
 
 
 
 
 
 
 
 
Checking
 
2.08
%
 
2.07
%
 
 
2.08
%
 
2.08
%
 
2.07
%
 
2.07
%
Savings
 
2.31

 
2.21

 
 
2.32

 
2.32

 
2.31

 
2.29

MMS
 
1.18

 
1.08

 
 
1.21

 
1.19

 
1.17

 
1.14

CDs and IRAs
 
0.50

 
0.52

 
 
0.52

 
0.50

 
0.49

 
0.50

Non-U.S. and other
 
0.46

 
1.09

 
 
0.40

 
0.40

 
0.42

 
0.65

Total deposit spreads
 
1.60

 
1.53

 
 
1.63

 
1.61

 
1.60

 
1.57

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Client brokerage assets
 
$
113,763

 
$
96,048

 
 
$
113,763

 
$
108,533

 
$
105,926

 
$
100,206

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Online banking active accounts (units in thousands)
 
30,904

 
29,950

 
 
30,904

 
30,821

 
30,429

 
30,470

Mobile banking active accounts (units in thousands)
 
16,539

 
14,395

 
 
16,539

 
16,107

 
15,475

 
14,986

Banking centers
 
4,855

 
5,151

 
 
4,855

 
4,947

 
5,023

 
5,095

ATMs
 
15,838

 
16,259

 
 
15,838

 
15,675

 
15,976

 
16,214

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total U.S. credit card (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Average credit card outstandings
 
$
88,962

 
$
90,369

 
 
$
89,381

 
$
88,866

 
$
88,058

 
$
89,545

Ending credit card outstandings
 
91,879

 
92,338

 
 
91,879

 
89,026

 
89,020

 
87,692

Credit quality
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs
 
$
2,638

 
$
3,376

 
 
$
612

 
$
625

 
$
683

 
$
718

 
 
2.96
%
 
3.74
%
 
 
2.71
%
 
2.79
%
 
3.11
%
 
3.25
%
30+ delinquency
 
$
1,701

 
$
2,074

 
 
$
1,701

 
$
1,702

 
$
1,698

 
$
1,878

 
 
1.85
%
 
2.25
%
 
 
1.85
%
 
1.91
%
 
1.91
%
 
2.14
%
90+ delinquency
 
$
866

 
$
1,053

 
 
$
866

 
$
831

 
$
868

 
$
966

 
 
0.94
%
 
1.14
%
 
 
0.94
%
 
0.93
%
 
0.98
%
 
1.10
%
Other Total U.S. credit card indicators (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross interest yield
 
9.35
%
 
9.73
%
 
 
9.26
%
 
9.34
%
 
9.30
%
 
9.48
%
Risk adjusted margin
 
9.44

 
8.68

 
 
9.96

 
9.33

 
8.97

 
9.49

New accounts (in thousands)
 
4,541

 
3,911

 
 
1,184

 
1,202

 
1,128

 
1,027

Purchase volumes
 
$
212,088

 
$
205,914

 
 
$
55,858

 
$
53,784

 
$
53,583

 
$
48,863

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debit card data
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volumes
 
$
272,576

 
$
267,087

 
 
$
69,204

 
$
67,990

 
$
69,492

 
$
65,890

 
 
 
 
 
 
 
 
 
 
 
 
 
 
For footnotes see page 11.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
10


Bank of America Corporation and Subsidiaries
Consumer Banking Key Indicators (continued)
(Dollars in millions)
 
 
Year Ended
December 31
 
 
Fourth
Quarter
2014
 
Third
Quarter
2014
 
Second
Quarter
2014
 
First
Quarter
2014
 
 
2014
 
2013
 
 
 
 
 
Loan production:
 
 
 
 
 
 
 
 
 
 
 
 
 
Total (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
First mortgage
 
$
43,290

 
$
83,421

 
 
$
11,616

 
$
11,725

 
$
11,099

 
$
8,850

Home equity
 
11,233

 
6,361

 
 
3,420

 
3,225

 
2,604

 
1,984

Consumer Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
First mortgage
 
$
32,340

 
$
66,913

 
 
$
8,316

 
$
8,861

 
$
8,461

 
$
6,702

Home equity
 
10,286

 
5,498

 
 
3,129

 
2,970

 
2,396

 
1,791

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage banking income
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Lending:
 
 
 
 
 
 
 
 
 
 
 
 
 
Core production revenue
 
$
875

 
$
2,097

 
 
$
214

 
$
239

 
$
233

 
$
189

Representations and warranties provision
 
10

 
(104
)
 
 
(4
)
 
(15
)
 
22

 
7

Other consumer mortgage banking income (3)
 
(72
)
 
(77
)
 
 
(18
)
 
(18
)
 
(18
)
 
(18
)
Total Consumer Lending mortgage banking income
 
813

 
1,916

 
 
192

 
206

 
237

 
178

LAS mortgage banking income (4)
 
1,053

 
2,670

 
 
241

 
152

 
369

 
291

Eliminations (5)
 
(303
)
 
(712
)
 
 
(81
)
 
(86
)
 
(79
)
 
(57
)
Total consolidated mortgage banking income
 
$
1,563

 
$
3,874

 
 
$
352

 
$
272

 
$
527

 
$
412

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
In addition to the U.S. credit card portfolio in Consumer Banking, the remaining U.S. credit card portfolio is in GWIM.
(2) 
In addition to loan production in Consumer Banking, the remaining first mortgage and home equity loan production is primarily in GWIM.
(3) 
Primarily intercompany charge for loan servicing from Legacy Assets & Servicing.
(4) 
Amounts for Legacy Assets & Servicing are included in this Consumer Banking table to show the components of consolidated mortgage banking income.
(5) 
Includes the effect of transfers of mortgage loans from Consumer Banking to the ALM portfolio included in All Other and intercompany charge for loan servicing.


Certain prior period amounts have been reclassified to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
11


Bank of America Corporation and Subsidiaries
 
 
Global Wealth & Investment Management Segment Results
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth Quarter 2014
 
Third Quarter 2014
 
Second Quarter 2014
 
First Quarter 2014
 
 
2014
 
2013
 
 
Net interest income (FTE basis)
 
$
5,836

 
$
6,064

 
 
$
1,407

 
$
1,459

 
$
1,485

 
$
1,485

Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment and brokerage services
 
10,722

 
9,709

 
 
2,763

 
2,713

 
2,642

 
2,604

All other income
 
1,846

 
2,017

 
 
432

 
494

 
462

 
458

Total noninterest income
 
12,568

 
11,726

 
 
3,195

 
3,207

 
3,104

 
3,062

Total revenue, net of interest expense (FTE basis)
 
18,404

 
17,790

 
 
4,602

 
4,666

 
4,589

 
4,547

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
14

 
56

 
 
14

 
(15
)
 
(8
)
 
23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
13,647

 
13,033

 
 
3,440

 
3,403

 
3,445

 
3,359

Income before income taxes (FTE basis)
 
4,743

 
4,701

 
 
1,148

 
1,278

 
1,152

 
1,165

Income tax expense (FTE basis)
 
1,769

 
1,724

 
 
442

 
465

 
426

 
436

Net income
 
$
2,974

 
$
2,977

 
 
$
706

 
$
813

 
$
726

 
$
729

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
2.34
%
 
2.46
%
 
 
2.24
%
 
2.33
%
 
2.40
%
 
2.40
%
Return on average allocated capital (1)
 
25

 
30

 
 
23

 
27

 
24

 
25

Efficiency ratio (FTE basis)
 
74.15

 
73.26

 
 
74.76

 
72.94

 
75.07

 
73.86

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance sheet
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
119,775

 
$
111,023

 
 
$
123,544

 
$
121,002

 
$
118,512

 
$
115,945

Total earning assets (2)
 
248,979

 
246,653

 
 
248,613

 
248,223

 
248,380

 
250,732

Total assets (2)
 
267,511

 
266,047

 
 
266,716

 
266,324

 
266,781

 
270,275

Total deposits
 
240,242

 
242,161

 
 
238,835

 
239,352

 
240,042

 
242,792

Allocated capital (1)
 
12,000

 
10,000

 
 
12,000

 
12,000

 
12,000

 
12,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
125,431

 
$
115,846

 
 
$
125,431

 
$
122,395

 
$
120,187

 
$
116,482

Total earning assets (2)
 
256,519

 
251,209

 
 
256,519

 
248,072

 
245,555

 
251,779

Total assets (2)
 
274,887

 
271,290

 
 
274,887

 
266,240

 
263,957

 
271,211

Total deposits
 
245,391

 
244,901

 
 
245,391

 
238,710

 
237,046

 
244,051

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 25-27.)
(2) 
Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
12


Bank of America Corporation and Subsidiaries
Global Wealth & Investment Management Key Indicators
(Dollars in millions, except as noted)
 
 
Year Ended
December 31
 
 
Fourth Quarter 2014
 
Third Quarter 2014
 
Second Quarter 2014
 
First Quarter 2014
 
 
2014
 
2013
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
Merrill Lynch Global Wealth Management
 
$
15,256

 
$
14,771

 
 
$
3,827

 
$
3,874

 
$
3,791

 
$
3,764

U.S. Trust
 
3,084

 
2,953

 
 
758

 
775

 
783

 
768

Other (1)
 
64

 
66

 
 
17

 
17

 
15

 
15

Total revenues
 
$
18,404

 
$
17,790

 
 
$
4,602

 
$
4,666

 
$
4,589

 
$
4,547

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Client Balances
 
 
 
 
 
 
 
 
 
 
 
 
 
Client Balances by Business
 
 
 
 
 
 
 
 
 
 
 
 
 
Merrill Lynch Global Wealth Management
 
$
2,033,801

 
$
1,916,803

 
 
$
2,033,801

 
$
2,004,391

 
$
2,017,051

 
$
1,946,922

U.S. Trust
 
387,491

 
376,487

 
 
387,491

 
381,054

 
380,281

 
378,177

Other (1)
 
76,705

 
73,148

 
 
76,705

 
76,640

 
70,836

 
70,720

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Client Balances by Type
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets under management
 
$
902,872

 
$
821,449

 
 
$
902,872

 
$
888,006

 
$
878,741

 
$
841,818

Brokerage assets
 
1,081,434

 
1,045,122

 
 
1,081,434

 
1,073,858

 
1,091,558

 
1,054,052

Assets in custody
 
139,555

 
136,190

 
 
139,555

 
135,886

 
137,391

 
136,342

Deposits
 
245,391

 
244,901

 
 
245,391

 
238,710

 
237,046

 
244,051

Loans and leases (2)
 
128,745

 
118,776

 
 
128,745

 
125,625

 
123,432

 
119,556

Total client balances
 
$
2,497,997

 
$
2,366,438

 
 
$
2,497,997

 
$
2,462,085

 
$
2,468,168

 
$
2,395,819

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Under Management Flows
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquidity assets under management (3)
 
$
3,361

 
$
6,502

 
 
$
(255
)
 
$
5,910

 
$
135

 
$
(2,429
)
Long-term assets under management (4)
 
49,800

 
47,819

 
 
9,380

 
11,168

 
11,870

 
17,382

Total assets under management flows
 
$
53,161

 
$
54,321

 
 
$
9,125

 
$
17,078

 
$
12,005

 
$
14,953

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Associates (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Financial Advisors
 
16,035

 
15,317

 
 
16,035

 
15,867

 
15,560

 
15,323

Total Wealth Advisors
 
17,231

 
16,517

 
 
17,231

 
17,039

 
16,721

 
16,481

Total Client Facing Professionals
 
19,750

 
19,217

 
 
19,750

 
19,727

 
19,416

 
19,199

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merrill Lynch Global Wealth Management Metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Advisor Productivity (6) (in thousands)
 
$
1,065

 
$
1,005

 
 
$
1,070

 
$
1,077

 
$
1,060

 
$
1,056

 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Trust Metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
Client Facing Professionals
 
2,155

 
2,091

 
 
2,155

 
2,135

 
2,110

 
2,117

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Other includes the results of BofA Global Capital Management and other administrative items.
(2) 
Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.
(3) 
Defined as assets under advisory and discretion of GWIM in which the investment strategy seeks a high level of income while maintaining liquidity and capital preservation. The duration of these strategies is primarily less than one year.
(4) 
Defined as assets under advisory and discretion of GWIM in which the duration of the investment strategy is longer than one year.
(5) 
Includes Financial Advisors in the Consumer Banking segment of 1,950, 1,868, 1,716, 1,598 and 1,545 at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively.
(6) 
Financial Advisor Productivity is defined as annualized Merrill Lynch Global Wealth Management total revenue divided by the total number of Financial Advisors (excluding Financial Advisors in the Consumer Banking segment). Total revenue excludes corporate allocation of net interest income related to certain ALM activities.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
13


Bank of America Corporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
Global Banking Segment Results
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth Quarter 2014
 
Third Quarter 2014
 
Second Quarter 2014
 
First Quarter 2014
 
2014
 
2013
 
 
Net interest income (FTE basis)
$
9,828

 
$
9,704

 
 
$
2,420

 
$
2,455

 
$
2,446

 
$
2,507

Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
Service charges
2,900

 
2,967

 
 
712

 
730

 
725

 
733

Investment banking fees
3,213

 
3,234

 
 
830

 
727

 
834

 
822

All other income
1,736

 
1,599

 
 
370

 
451

 
442

 
473

Total noninterest income
7,849

 
7,800

 
 
1,912

 
1,908

 
2,001

 
2,028

Total revenue, net of interest expense (FTE basis)
17,677

 
17,504

 
 
4,332

 
4,363

 
4,447

 
4,535

 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
322

 
1,142

 
 
(31
)
 
(64
)
 
136

 
281

 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
8,262

 
8,149

 
 
2,002

 
2,050

 
2,020

 
2,190

Income before income taxes (FTE basis)
9,093

 
8,213

 
 
2,361

 
2,377

 
2,291

 
2,064

Income tax expense (FTE basis)
3,338

 
3,013

 
 
850

 
866

 
849

 
773

Net income
$
5,755

 
$
5,200

 
 
$
1,511

 
$
1,511

 
$
1,442

 
$
1,291

 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
3.07
%
 
3.38
%
 
 
2.96
%
 
3.00
%
 
3.10
%
 
3.23
%
Return on average allocated capital (1)
17

 
20

 
 
18

 
18

 
17

 
16

Efficiency ratio (FTE basis)
46.74

 
46.56

 
 
46.20

 
46.97

 
45.43

 
48.30

 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
$
286,493

 
$
273,320

 
 
$
287,017

 
$
283,284

 
$
287,795

 
$
287,920

Total earnings assets (2)
320,194

 
287,228

 
 
324,388

 
324,688

 
316,860

 
314,685

Total assets (2)
365,665

 
331,947

 
 
369,292

 
368,394

 
362,605

 
362,264

Total deposits
291,366

 
265,733

 
 
296,205

 
295,715

 
287,786

 
285,594

Allocated capital (1)
33,500

 
25,400

 
 
33,500

 
33,500

 
33,500

 
33,500

 
 
 
 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
$
288,905

 
$
285,880

 
 
$
288,905

 
$
284,968

 
$
286,976

 
$
289,645

Total earnings assets (2)
311,782

 
316,349

 
 
311,782

 
314,727

 
328,370

 
314,565

Total assets (2)
357,081

 
360,789

 
 
357,081

 
358,786

 
374,376

 
359,786

Total deposits
283,191

 
294,559

 
 
283,191

 
286,128

 
299,188

 
286,285

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 25-27.)
(2) 
Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
14


Bank of America Corporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Banking Key Indicators
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth Quarter 2014
 
Third Quarter 2014
 
Second Quarter 2014
 
First Quarter 2014
 
 
2014
 
2013
 
 
Investment Banking fees (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory (2)
 
$
1,098

 
$
1,019

 
 
$
316

 
$
291

 
$
234

 
$
257

Debt issuance
 
1,532

 
1,620

 
 
379

 
318

 
388

 
447

Equity issuance
 
583

 
595

 
 
135

 
118

 
212

 
118

Total Investment Banking fees (3)
 
$
3,213

 
$
3,234

 
 
$
830

 
$
727

 
$
834

 
$
822

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Lending
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate
 
$
3,420

 
$
3,432

 
 
$
800

 
$
878

 
$
830

 
$
912

Commercial
 
3,942

 
3,967

 
 
991

 
934

 
1,006

 
1,011

Business Banking
 
364

 
320

 
 
92

 
91

 
92

 
89

Total Business Lending revenue
 
$
7,726

 
$
7,719

 
 
$
1,883

 
$
1,903

 
$
1,928

 
$
2,012

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Transaction Services
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate
 
$
3,028

 
$
2,804

 
 
$
755

 
$
776

 
$
761

 
$
736

Commercial
 
2,887

 
2,939

 
 
710

 
727

 
717

 
733

Business Banking
 
714

 
705

 
 
182

 
179

 
176

 
177

Total Global Transaction Services revenue
 
$
6,629

 
$
6,448

 
 
$
1,647

 
$
1,682

 
$
1,654

 
$
1,646

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average deposit balances
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing
 
$
80,630

 
$
78,648

 
 
$
73,504

 
$
81,218

 
$
84,123

 
$
83,782

Noninterest-bearing
 
210,736

 
187,085

 
 
222,701

 
214,497

 
203,663

 
201,812

Total average deposits
 
$
291,366

 
$
265,733

 
 
$
296,205

 
$
295,715

 
$
287,786

 
$
285,594

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan spread
 
1.73
%
 
1.80
%
 
 
1.69
%
 
1.70
%
 
1.72
%
 
1.80
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
$
322

 
$
1,142

 
 
$
(31
)
 
$
(64
)
 
$
136

 
$
281

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit quality (4, 5)
 
 
 
 
 
 
 
 
 
 
 
 
 
Reservable utilized criticized exposure
 
$
9,662

 
$
10,889

 
 
$
9,662

 
$
10,314

 
$
10,788

 
$
10,965

 
 
3.07
%
 
3.49
%
 
 
3.07
%
 
3.32
%
 
3.46
%
 
3.48
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonperforming loans, leases and foreclosed properties
 
$
892

 
$
1,019

 
 
$
892

 
$
1,080

 
$
1,023

 
$
1,009

 
 
0.31
%
 
0.36
%
 
 
0.31
%
 
0.38
%
 
0.36
%
 
0.35
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average loans and leases by product
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
 
$
151,772

 
$
143,566

 
 
$
153,256

 
$
150,918

 
$
151,923

 
$
150,971

Commercial real estate
 
43,194

 
39,228

 
 
41,445

 
41,818

 
44,437

 
45,132

Commercial lease financing
 
25,205

 
24,760

 
 
25,105

 
25,127

 
25,165

 
25,427

Non-U.S. commercial
 
66,304

 
65,747

 
 
67,192

 
65,401

 
66,250

 
66,371

Other
 
18

 
19

 
 
19

 
20

 
20

 
19

Total average loans and leases
 
$
286,493

 
$
273,320

 
 
$
287,017

 
$
283,284

 
$
287,795

 
$
287,920

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Corporation Investment Banking fees
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory (2)
 
$
1,207

 
$
1,125

 
 
$
341

 
$
316

 
$
264

 
$
286

Debt issuance
 
3,583

 
3,804

 
 
883

 
784

 
891

 
1,025

Equity issuance
 
1,490

 
1,472

 
 
348

 
315

 
514

 
313

Total investment banking fees including self-led deals
 
6,280

 
6,401

 
 
1,572

 
1,415

 
1,669

 
1,624

Self-led deals
 
(215
)
 
(275
)
 
 
(31
)
 
(64
)
 
(38
)
 
(82
)
Total Investment Banking fees
 
$
6,065

 
$
6,126

 
 
$
1,541

 
$
1,351

 
$
1,631

 
$
1,542

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Investment banking fees represent total investment banking fees for Global Banking inclusive of self-led deals and fees included within Business Lending.
(2) 
Advisory includes fees on debt and equity advisory and mergers and acquisitions.
(3) 
Investment banking fees represent only the fee component of Global Banking and do not include certain less significant items shared with the Investment Banking Group under internal revenue sharing agreements.
(4) 
Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure is on an end-of-period basis and is also shown as a percentage of total commercial utilized reservable criticized exposure, including loans and leases, standby letters of credit, financial guarantees, commercial letters of credit and bankers' acceptances.
(5) 
Nonperforming loans, leases and foreclosed properties are on an end-of-period basis. The nonperforming ratio is nonperforming assets divided by loans, leases and foreclosed properties.

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.

This segment information is preliminary and based on company data available at the time of this filing.
15


Bank of America Corporation and Subsidiaries
Global Markets Segment Results (1)
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth Quarter 2014
 
Third Quarter 2014
 
Second Quarter 2014
 
First Quarter 2014
 
2014
 
2013
 
 
Net interest income (FTE basis)
$
3,986

 
$
4,224

 
 
$
1,032

 
$
994

 
$
958

 
$
1,002

Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
Investment and brokerage services
2,163

 
2,046

 
 
540

 
522

 
540

 
561

Investment banking fees
2,743

 
2,724

 
 
670

 
577

 
760

 
736

Trading account profits
5,997

 
6,734

 
 
76

 
1,786

 
1,768

 
2,367

All other income (loss)
1,230

 
(338
)
 
 
52

 
263

 
564

 
351

Total noninterest income
12,133

 
11,166

 
 
1,338

 
3,148

 
3,632

 
4,015

Total revenue, net of interest expense (FTE basis) (2)
16,119

 
15,390

 
 
2,370

 
4,142

 
4,590

 
5,017

 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
110

 
140

 
 
26

 
45

 
20

 
19

 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
11,771

 
11,995

 
 
2,500

 
3,335

 
2,861

 
3,075

Income (loss) before income taxes (FTE basis)
4,238

 
3,255

 
 
(156
)
 
762

 
1,709

 
1,923

Income tax expense (benefit) (FTE basis)
1,519

 
2,101

 
 
(84
)
 
389

 
604

 
610

Net income (loss)
$
2,719

 
$
1,154

 
 
$
(72
)
 
$
373

 
$
1,105

 
$
1,313

 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average allocated capital (3)
8
%
 
4
%
 
 
n/m

 
4
%
 
13
%
 
16
%
Efficiency ratio (FTE basis)
73.03

 
77.94

 
 
105.48
%
 
80.51

 
62.34

 
61.30

 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
Total trading-related assets (4)
$
449,814

 
$
468,934

 
 
$
455,535

 
$
446,490

 
$
459,938

 
$
437,128

Total loans and leases
62,064

 
60,058

 
 
58,094

 
62,939

 
63,579

 
63,696

Total earning assets (4)
461,179

 
481,433

 
 
451,922

 
457,814

 
478,191

 
456,879

Total assets
607,535

 
632,681

 
 
611,713

 
599,884

 
617,087

 
601,427

Allocated capital (3)
34,000

 
30,000

 
 
34,000

 
34,000

 
34,000

 
34,000

 
 
 
 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
 
 
 
Total trading-related assets (4)
$
418,860

 
$
411,080

 
 
$
418,860

 
$
433,597

 
$
443,383

 
$
430,894

Total loans and leases
59,388

 
67,381

 
 
59,388

 
62,645

 
66,260

 
64,598

Total earning assets (4)
421,799

 
432,807

 
 
421,799

 
443,363

 
465,380

 
455,103

Total assets
579,512

 
575,473

 
 
579,512

 
598,668

 
610,364

 
594,792

 
 
 
 
 
 
 
 
 
 
 
 
 
Trading-related assets (average)
 
 
 
 
 
 
 
 
 
 
 
 
Trading account securities
$
201,955

 
$
215,885

 
 
$
201,867

 
$
201,963

 
$
200,725

 
$
203,281

Reverse repurchases
116,085

 
137,670

 
 
118,286

 
116,853

 
119,823

 
109,271

Securities borrowed
85,098

 
65,532

 
 
81,071

 
83,369

 
94,989

 
80,981

Derivative assets
46,676

 
49,847

 
 
54,311

 
44,305

 
44,401

 
43,595

Total trading-related assets (4)
$
449,814

 
$
468,934

 
 
$
455,535

 
$
446,490

 
$
459,938

 
$
437,128

 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
In 2014, the results for structured liabilities including debit valuation adjustment were moved into Global Markets from All Other to better align the performance and risk management of these instruments. As such, net debit valuation adjustment in Global Markets represents the combined total of net debit valuation adjustment on derivatives and structured liabilities. Prior periods have been reclassified to conform to current period presentation.
(2) 
Substantially all of Global Markets total revenue is sales and trading revenue and investment banking fees, with a small portion related to certain revenue sharing agreements with other business segments. For additional sales and trading revenue information, see page 17.
(3) 
Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 25-27.)
(4) 
Trading-related assets include derivative assets, which are considered non-earning assets.

n/m = not meaningful


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
16


Bank of America Corporation and Subsidiaries
Global Markets Key Indicators
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth Quarter 2014
 
Third Quarter 2014
 
Second Quarter 2014
 
First Quarter 2014
 
2014
 
2013
 
 
Sales and trading revenue (1)
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income, currency and commodities
$
8,706

 
$
8,231

 
 
$
879

 
$
2,381

 
$
2,422

 
$
3,024

Equities
4,215

 
4,180

 
 
862

 
1,105

 
1,055

 
1,193

Total sales and trading revenue
$
12,921

 
$
12,411

 
 
$
1,741

 
$
3,486

 
$
3,477

 
$
4,217

 
 
 
 
 
 
 
 
 
 
 
 
 
Sales and trading revenue, excluding debit valuation adjustment and funding valuation adjustment (2)
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income, currency and commodities
$
9,013

 
$
9,345

 
 
$
1,456

 
$
2,247

 
$
2,366

 
$
2,944

Equities
4,148

 
4,224

 
 
911

 
1,034

 
1,042

 
1,161

Total sales and trading revenue, excluding debit valuation adjustment and funding valuation adjustment
$
13,161

 
$
13,569

 
 
$
2,367

 
$
3,281

 
$
3,408

 
$
4,105

 
 
 
 
 
 
 
 
 
 
 
 
 
Sales and trading revenue breakdown
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
3,643

 
$
3,891

 
 
$
943

 
$
914

 
$
872

 
$
914

Commissions
2,163

 
2,046

 
 
540

 
522

 
540

 
561

Trading
5,997

 
6,734

 
 
76

 
1,786

 
1,768

 
2,367

Other
1,118

 
(260
)
 
 
182

 
264

 
297

 
375

Total sales and trading revenue
$
12,921

 
$
12,411

 
 
$
1,741

 
$
3,486

 
$
3,477

 
$
4,217

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Includes Global Banking sales and trading revenue of $382 million and $385 million for the years ended December 31, 2014 and 2013; $162 million, $68 million, $67 million and $85 million for the fourth, third, second and first quarters of 2014, respectively.
(2) 
For this presentation, sales and trading revenue excludes net debit valuation adjustment gains (losses) which include net debit valuation adjustment on derivatives and structured liabilities. Sales and trading revenue excluding net debit valuation adjustment gains (losses) represents a non-GAAP financial measure. In the fourth quarter of 2014, the Corporation adopted a funding valuation adjustment on uncollateralized derivatives in the Corporation's Global Markets business. This methodology seeks to account for the value of funding costs today rather than accruing the cost over the life of the derivatives. The adoption resulted in a one-time transitional charge of $497 million recorded in the fourth quarter of 2014.
 

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
17


Bank of America Corporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
Legacy Assets & Servicing Segment Results
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions; except as noted)
 
 
Year Ended
December 31
 
 
Fourth Quarter 2014
 
Third Quarter 2014
 
Second Quarter 2014
 
First Quarter 2014
 
 
2014
 
2013
 
 
Net interest income (FTE basis)
 
$
1,516

 
$
1,541

 
 
$
390

 
$
387

 
$
362

 
$
377

Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage banking income
 
1,053

 
2,670

 
 
241

 
152

 
369

 
291

All other income
 
111

 
245

 
 
7

 
17

 
69

 
18

Total noninterest income
 
1,164

 
2,915

 
 
248

 
169

 
438

 
309

Total revenue, net of interest expense (FTE basis)
 
2,680

 
4,456

 
 
638

 
556

 
800

 
686

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
127

 
(283
)
 
 
(113
)
 
267

 
(39
)
 
12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
20,643

 
12,483

 
 
1,364

 
6,647

 
5,231

 
7,401

Loss before income taxes (FTE basis)
 
(18,090
)
 
(7,744
)
 
 
(613
)
 
(6,358
)
 
(4,392
)
 
(6,727
)
Income tax benefit (FTE basis)
 
(4,976
)
 
(2,839
)
 
 
(231
)
 
(1,245
)
 
(1,653
)
 
(1,847
)
Net loss
 
$
(13,114
)
 
$
(4,905
)
 
 
$
(382
)
 
$
(5,113
)
 
$
(2,739
)
 
$
(4,880
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest yield (FTE basis)
 
4.03
%
 
3.19
%
 
 
4.23
%
 
3.78
%
 
3.65
%
 
3.82
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
35,941

 
$
42,604

 
 
$
33,772

 
$
35,238

 
$
36,705

 
$
38,104

Total earning assets
 
37,593

 
48,272

 
 
36,581

 
40,636

 
39,863

 
40,026

Total assets
 
52,134

 
67,129

 
 
48,557

 
53,762

 
55,626

 
57,400

Allocated capital (1)
 
17,000

 
18,000

 
 
17,000

 
17,000

 
17,000

 
17,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
33,055

 
$
38,732

 
 
$
33,055

 
$
34,484

 
$
35,984

 
$
37,401

Total earning assets
 
33,923

 
43,092

 
 
33,923

 
44,916

 
37,233

 
39,141

Total assets
 
45,958

 
59,458

 
 
45,958

 
56,900

 
52,647

 
58,605

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period end (in billions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage servicing portfolio (2)
 
$
693.0

 
$
810.0

 
 
$
693.0

 
$
722.0

 
$
760.0

 
$
780.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Allocated capital is a non-GAAP financial measure. The Corporation believes the use of this non-GAAP financial measure provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 25-27.)
(2) 
Includes servicing of residential mortgage loans, home equity lines of credit and home equity loans.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
18


Bank of America Corporation and Subsidiaries
Legacy Assets & Servicing Key Indicators
(Dollars in millions, except as noted)
 
 
Year Ended
December 31
 
 
Fourth Quarter 2014
 
Third Quarter 2014
 
Second Quarter 2014
 
First Quarter 2014
 
 
 
2014
 
2013
Mortgage servicing rights at fair value rollforward:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
$
5,042

 
$
5,716

 
 
$
3,986

 
$
4,134

 
$
4,577

 
$
5,042

 
Net additions (sales)
 
275

 
(1,572
)
 
 
73

 
140

 
32

 
30

 
Amortization of expected cash flows (1)
 
(818
)
 
(1,043
)
 
 
(198
)
 
(201
)
 
(209
)
 
(210
)
 
Other changes in mortgage servicing rights fair value (2)
 
(1,228
)
 
1,941

 
 
(590
)
 
(87
)
 
(266
)
 
(285
)
 
Balance, end of period (3)
 
$
3,271

 
$
5,042

 
 
$
3,271

 
$
3,986

 
$
4,134

 
$
4,577

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized mortgage servicing rights (% of loans serviced for investors)
 
69

bps
92

bps
 
69

bps
81

bps
82

bps
87

bps
Mortgage loans serviced for investors (in billions)
 
$
474

 
$
550

 
 
$
474

 
$
491

 
$
505

 
$
527

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage banking income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Servicing income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Servicing fees
 
$
1,957

 
$
3,105

 
 
$
461

 
$
471

 
$
492

 
$
533

 
Amortization of expected cash flows (1)
 
(818
)
 
(1,043
)
 
 
(198
)
 
(201
)
 
(209
)
 
(210
)
 
Fair value changes of mortgage servicing rights, net of risk management activities used to hedge certain market risks (4)
 
294

 
867

 
 
142

 
(19
)
 
105

 
66

 
Other servicing-related revenue
 
8

 
30

 
 
—

 
—

 
4

 
4

 
Total net servicing income
 
1,441

 
2,959

 
 
405

 
251

 
392

 
393

 
Representations and warranties provision
 
(693
)
 
(736
)
 
 
(246
)
 
(152
)
 
(110
)
 
(185
)
 
Other mortgage banking income (5)
 
305

 
447

 
 
82

 
53

 
87

 
83

 
Total Legacy Assets & Servicing mortgage banking income
 
$
1,053

 
$
2,670

 
 
$
241

 
$
152

 
$
369

 
$
291

 
 
(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 mortgage servicing rights fair value primarily due to observed changes in interest rates, volatility, spreads and the shape of the forward swap curve. In addition, 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, changes in certain cash flow assumptions such as cost to service and ancillary income per loan, changes in option-adjusted spread rate assumptions and the impact of periodic recalibrations of the model to reflect changes in the relationship between market interest rate spreads and projected cash flows.
(3) 
Does not include certain non-U.S. residential mortgage MSR balances, which are recorded in Global Markets.
(4) 
Includes gains and losses on sales of mortgage servicing rights.
(5) 
Consists primarily of revenue from sales of loans that had returned to performing status.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
19


Bank of America Corporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
All Other Results (1)
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
 
Year Ended
December 31
 
 
Fourth Quarter 2014
 
Third Quarter 2014
 
Second Quarter 2014
 
First Quarter 2014
 
2014
 
2013
 
 
Net interest income (FTE basis)
$
(523
)
 
$
971

 
 
$
(350
)
 
$
68

 
$
(85
)
 
$
(156
)
Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
Card income
356

 
329

 
 
89

 
92

 
88

 
87

Equity investment income
729

 
2,737

 
 
(36
)
 
(26
)
 
95

 
696

Gains on sales of debt securities
1,310

 
1,231

 
 
161

 
410

 
382

 
357

All other loss
(2,444
)
 
(2,540
)
 
 
(610
)
 
(586
)
 
(595
)
 
(653
)
Total noninterest income
(49
)
 
1,757

 
 
(396
)
 
(110
)
 
(30
)
 
487

Total revenue, net of interest expense (FTE basis)
(572
)
 
2,728

 
 
(746
)
 
(42
)
 
(115
)
 
331

 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
(978
)
 
(665
)
 
 
(330
)
 
(265
)
 
(248
)
 
(135
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
2,938

 
4,643

 
 
481

 
260

 
479

 
1,718

Loss before income taxes (FTE basis)
(2,532
)
 
(1,250
)
 
 
(897
)
 
(37
)
 
(346
)
 
(1,252
)
Income tax benefit (FTE basis)
(2,590
)
 
(2,012
)
 
 
(523
)
 
(543
)
 
(469
)
 
(1,055
)
Net income (loss)
$
58

 
$
762

 
 
$
(374
)
 
$
506

 
$
123

 
$
(197
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
$
202,513

 
$
235,459

 
 
$
183,091

 
$
199,404

 
$
210,576

 
$
217,392

Total assets (2)
275,405

 
309,664

 
 
259,158

 
268,818

 
288,942

 
278,250

Total deposits
30,837

 
35,443

 
 
22,163

 
29,880

 
36,472

 
34,982

 
 
 
 
 
 
 
 
 
 
 
 
 
Period end
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
$
172,612

 
$
220,691

 
 
$
172,612

 
$
188,356

 
$
205,471

 
$
213,415

Total assets (3)
258,048

 
267,522

 
 
258,048

 
262,638

 
289,343

 
278,985

Total deposits
19,242

 
28,165

 
 
19,242

 
25,418

 
33,824

 
34,854

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
All Other consists of ALM activities, equity investments, the international consumer card business, liquidating businesses, residual expense allocations and other. ALM activities encompass the whole-loan residential mortgage portfolio and investment securities, interest rate and foreign currency risk management activities including the residual net interest income allocation, the impact of certain allocation methodologies and accounting hedge ineffectiveness. Additionally, All Other includes certain residential mortgage loans that are managed by Legacy Assets & Servicing. The results of certain ALM activities are allocated to our business segments. Equity investments include Global Principal Investments which is comprised of a portfolio of equity, real estate and other alternative investments. These investments are made either directly in a company or held through a fund with related income recorded in equity investment income. Equity investments also include the results of our merchant services joint venture. In 2014, the management of structured liabilities and the associated debit valuation adjustment (previously referred to as fair value adjustments on structured liabilities) were moved into Global Markets from All Other to better align the performance risk of these instruments. Prior periods have been reclassified to conform to current period presentation.
(2) 
Includes elimination of segments' excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $483.7 billion and $448.9 billion for the years ended December 31, 2014 and 2013; $485.1 billion, $489.8 billion, $483.6 billion and $476.3 billion for the fourth, third, second and first quarters of 2014, respectively.
(3) 
Includes elimination of segments' excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $478.2 billion, $477.5 billion, $490.4 billion and $492.1 billion at December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively.


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
20


Bank of America Corporation and Subsidiaries
Equity Investments
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
Equity Investments Exposures
 
December 31, 2014
 
September 30
2014
 
June 30
2014
 
March 31
2014
 
Book
Value
 
Unfunded
Commitments
 
Total
 
Total
Equity Investments
 
 
 
 
 
 
 
 
 
 
 
Global Principal Investments
$
913

 
$
31

 
$
944

 
$
1,045

 
$
1,190

 
$
1,369

Strategic and other investments
3,973

 
6

 
3,979

 
4,010

 
4,007

 
4,065

Total Equity Investments
$
4,886

 
$
37

 
$
4,923

 
$
5,055

 
$
5,197

 
$
5,434

 
 
 
 
 
 
 
 
 
 
 
 


Components of Equity Investment Income
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth
Quarter
2014
 
Third
Quarter
2014
 
Second
Quarter
2014
 
First
Quarter
2014
 
2014
 
2013
 
 
Global Principal Investments
$
(46
)
 
$
379

 
 
$
(52
)
 
$
(37
)
 
$
71

 
$
(28
)
Strategic and other investments
775

 
2,358

 
 
16

 
11

 
24

 
724

Total equity investment income (loss) included in All Other
729

 
2,737

 
 
(36
)
 
(26
)
 
95

 
696

Total equity investment income included in the business segments
401

 
164

 
 
16

 
35

 
262

 
88

Total consolidated equity investment income (loss)
$
1,130

 
$
2,901

 
 
$
(20
)
 
$
9

 
$
357

 
$
784

 
 
 
 
 
 
 
 
 
 
 
 
 


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This segment information is preliminary and based on company data available at the time of this filing.
21


Bank of America Corporation and Subsidiaries
Quarterly Average Loans and Leases by Business Segment
(Dollars in millions)
 
Fourth Quarter 2014
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy Assets & Servicing
 
All 
Other
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
223,132

 
 
$
9,306

 
$
50,537

 
$
7

 
$
—

 
$
931

 
$
162,351

Home equity
86,825

 
 
45,804

 
6,276

 
5

 
189

 
32,813

 
1,738

U.S. credit card
89,381

 
 
86,193

 
3,188

 
—

 
—

 
—

 
—

Non-U.S. credit card
10,950

 
 
—

 
—

 
—

 
—

 
—

 
10,950

Direct/Indirect consumer
83,121

 
 
39,541

 
39,694

 
5

 
14

 
—

 
3,867

Other consumer
2,031

 
 
1,113

 
8

 
2

 
—

 
—

 
908

Total consumer
495,440

 
 
181,957

 
99,703

 
19

 
203

 
33,744

 
179,814

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
231,215

 
 
17,228

 
21,824

 
153,256

 
34,426

 
28

 
4,453

Commercial real estate
46,996

 
 
30

 
1,875

 
41,445

 
3,446

 
—

 
200

Commercial lease financing
24,238

 
 
—

 
4

 
25,105

 
552

 
—

 
(1,423
)
Non-U.S. commercial
86,844

 
 
—

 
138

 
67,192

 
19,467

 
—

 
47

Total commercial
389,293

 
 
17,258

 
23,841

 
286,998

 
57,891

 
28

 
3,277

Total loans and leases
$
884,733

 
 
$
199,215

 
$
123,544

 
$
287,017

 
$
58,094

 
$
33,772

 
$
183,091

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2014
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy Assets & Servicing
 
All 
Other
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
235,272

 
 
$
7,523

 
$
49,610

 
$
6

 
$
—

 
$
950

 
$
177,183

Home equity
88,590

 
 
46,093

 
6,412

 
9

 
165

 
34,258

 
1,653

U.S. credit card
88,866

 
 
85,674

 
3,192

 
—

 
—

 
—

 
—

Non-U.S. credit card
11,784

 
 
—

 
—

 
—

 
—

 
—

 
11,784

Direct/Indirect consumer
82,669

 
 
39,763

 
38,555

 
4

 
17

 
—

 
4,330

Other consumer
2,110

 
 
1,042

 
5

 
1

 
—

 
—

 
1,062

Total consumer
509,291

 
 
180,095

 
97,774

 
20

 
182

 
35,208

 
196,012

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
230,891

 
 
17,248

 
21,283

 
150,918

 
36,894

 
30

 
4,518

Commercial real estate
46,069

 
 
31

 
1,796

 
41,818

 
2,201

 
—

 
223

Commercial lease financing
24,325

 
 
—

 
4

 
25,127

 
644

 
—

 
(1,450
)
Non-U.S. commercial
88,665

 
 
—

 
145

 
65,401

 
23,018

 
—

 
101

Total commercial
389,950

 
 
17,279

 
23,228

 
283,264

 
62,757

 
30

 
3,392

Total loans and leases
$
899,241

 
 
$
197,374

 
$
121,002

 
$
283,284

 
$
62,939

 
$
35,238

 
$
199,404

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.




This segment information is preliminary and based on company data available at the time of this filing.
22


Bank of America Corporation and Subsidiaries
Quarterly Average Loans and Leases by Business Segment (continued)
(Dollars in millions)
 
Second Quarter 2014
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy Assets & Servicing
 
All 
Other
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
243,406

 
 
$
5,731

 
$
48,855

 
$
6

 
$
—

 
$
961

 
$
187,853

Home equity
90,729

 
 
46,676

 
6,578

 
8

 
160

 
35,710

 
1,597

U.S. credit card
88,058

 
 
84,849

 
3,209

 
—

 
—

 
—

 
—

Non-U.S. credit card
11,759

 
 
—

 
—

 
—

 
—

 
—

 
11,759

Direct/Indirect consumer
82,102

 
 
40,069

 
37,348

 
5

 
12

 
—

 
4,668

Other consumer
2,011

 
 
889

 
9

 
1

 
—

 
—

 
1,112

Total consumer
518,065

 
 
178,214

 
95,999

 
20

 
172

 
36,671

 
206,989

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
230,486

 
 
17,169

 
20,688

 
151,923

 
35,906

 
34

 
4,766

Commercial real estate
48,315

 
 
30

 
1,672

 
44,437

 
1,937

 
—

 
239

Commercial lease financing
24,409

 
 
—

 
4

 
25,165

 
743

 
—

 
(1,503
)
Non-U.S. commercial
91,305

 
 
—

 
149

 
66,250

 
24,821

 
—

 
85

Total commercial
394,515

 
 
17,199

 
22,513

 
287,775

 
63,407

 
34

 
3,587

Total loans and leases
$
912,580

 
 
$
195,413

 
$
118,512

 
$
287,795

 
$
63,579

 
$
36,705

 
$
210,576

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Quarter 2014
 
Total
Corporation
 
 
Consumer Banking
 
GWIM
 
Global
Banking
 
Global
Markets
 
Legacy Assets & Servicing
 
All 
Other
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
247,560

 
 
$
4,364

 
$
48,236

 
$
8

 
$
—

 
$
963

 
$
193,989

Home equity
92,755

 
 
47,262

 
6,696

 
5

 
168

 
37,094

 
1,530

U.S. credit card
89,545

 
 
86,270

 
3,260

 
—

 
—

 
—

 
15

Non-U.S. credit card
11,554

 
 
—

 
—

 
—

 
—

 
—

 
11,554

Direct/Indirect consumer
81,728

 
 
40,800

 
35,800

 
4

 
45

 
—

 
5,079

Other consumer
1,962

 
 
791

 
4

 
2

 
—

 
—

 
1,165

Total consumer
525,104

 
 
179,487

 
93,996

 
19

 
213

 
38,057

 
213,332

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
228,059

 
 
16,910

 
20,095

 
150,971

 
34,719

 
47

 
5,317

Commercial real estate
48,753

 
 
28

 
1,698

 
45,132

 
1,625

 
—

 
270

Commercial lease financing
24,727

 
 
—

 
4

 
25,427

 
836

 
—

 
(1,540
)
Non-U.S. commercial
92,839

 
 
—

 
152

 
66,371

 
26,303

 
—

 
13

Total commercial
394,378

 
 
16,938

 
21,949

 
287,901

 
63,483

 
47

 
4,060

Total loans and leases
$
919,482

 
 
$
196,425

 
$
115,945

 
$
287,920

 
$
63,696

 
$
38,104

 
$
217,392

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This segment information is preliminary and based on company data available at the time of this filing.
23


Bank of America Corporation and Subsidiaries
Net Charge-offs and Net Charge-off Ratios
(Dollars in millions)
 
Year Ended
December 31
 
 
Fourth
Quarter
2014
 
Third
Quarter
2014
 
Second
Quarter
2014
 
First
Quarter
2014
 
2014
 
2013
 
 
 
 
 
Net Charge-offs
Amount
 
Percent
 
Amount
 
Percent
 
 
Amount
 
Percent
 
Amount
 
Percent
 
Amount
 
Percent
 
Amount
 
Percent
Consumer Banking
$
3,497

 
1.77
%
 
$
4,636

 
2.36
%
 
 
$
832

 
1.66
 %
 
$
815

 
1.64
%
 
$
894

 
1.83
 %
 
$
956

 
1.97
 %
Global Wealth & Investment Management
71

 
0.06

 
173

 
0.16

 
 
36

 
0.12

 
6

 
0.02

 
4

 
0.01

 
25

 
0.09

Global Banking
31

 
0.01

 
247

 
0.09

 
 
2

 
—

 
52

 
0.07

 
(8
)
 
(0.01
)
 
(15
)
 
(0.02
)
Global Markets
2

 
—

 
2

 
—

 
 
—

 
—

 
—

 
—

 
3

 
0.02

 
(1
)
 
(0.01
)
Legacy Assets & Servicing
627

 
1.79

 
1,383

 
3.33

 
 
199

 
2.40

 
42

 
0.48

 
169

 
1.90

 
217

 
2.37

All Other
155

 
0.08

 
1,456

 
0.62

 
 
(190
)
 
(0.41
)
 
128

 
0.26

 
11

 
0.02

 
206

 
0.39

Total net charge-offs
$
4,383

 
0.49

 
$
7,897

 
0.87

 
 
$
879

 
0.40

 
$
1,043

 
0.46

 
$
1,073

 
0.48

 
$
1,388

 
0.62

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Certain prior period amounts have been reclassified to conform to current period presentation.

This segment information is preliminary and based on company data available at the time of this filing.
24


Exhibit A: Non-GAAP Reconciliations
 
 
 
 
 
 
 
 
 
 
 
Bank of America Corporation and Subsidiaries
 
 
 
 
 
Reconciliations to GAAP Financial Measures
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 

The Corporation evaluates its business based on a fully taxable-equivalent basis, a non-GAAP financial measure. The Corporation believes managing the business with net interest income on a fully taxable-equivalent basis provides a more accurate picture of the interest margin for comparative purposes. Total revenue, net of interest expense, includes net interest income on a fully taxable-equivalent basis and noninterest income. The Corporation views related ratios and analyses (i.e., efficiency ratios and net interest yield) on a fully taxable-equivalent basis. To derive the fully taxable-equivalent basis, net interest income is adjusted to reflect tax-exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. For purposes of this calculation, the Corporation uses the federal statutory tax rate of 35 percent. This measure ensures comparability of net interest income arising from taxable and tax-exempt sources. The efficiency ratio measures the costs expended to generate a dollar of revenue, and net interest yield measures the basis points the Corporation earns over the cost of funds.

In addition, the Corporation evaluates its business segment results based on measures that utilize average allocated capital. The Corporation allocates capital to its business segments using a methodology that considers the effect of regulatory capital requirements in addition to internal risk-based capital models. The Corporation's internal risk-based capital models use a risk-adjusted methodology incorporating each segment's credit, market, interest rate, business and operational risk components. Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return both represent non-GAAP financial measures. Allocated capital is reviewed periodically and refinements are made based on multiple considerations that include, but are not limited to, business segment exposures and risk profile, regulatory constraints and strategic plans. As part of this process, in the first quarter of 2014, the Corporation adjusted the amount of capital being allocated to its business segments. This change resulted in a reduction of the unallocated capital, which is reflected in All Other, and an aggregate increase to the amount of capital being allocated to the business segments. Prior periods were not restated.

See the tables below and on pages 26-27 for reconciliations of these non-GAAP financial measures to financial measures defined by GAAP for the years ended December 31, 2014 and 2013, and the three months ended December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate supplemental financial data differently.
 
 
Year Ended
December 31
 
 
Fourth
Quarter
2014
 
Third
Quarter
2014
 
Second
Quarter
2014
 
First
Quarter
2014
 
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis
Net interest income
 
$
39,952

 
$
42,265

 
 
$
9,635

 
$
10,219

 
$
10,013

 
$
10,085

Fully taxable-equivalent adjustment
 
869

 
859

 
 
230

 
225

 
213

 
201

Net interest income on a fully taxable-equivalent basis
 
$
40,821

 
$
43,124

 
 
$
9,865

 
$
10,444

 
$
10,226

 
$
10,286

 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
$
84,247

 
$
88,942

 
 
$
18,725

 
$
21,209

 
$
21,747

 
$
22,566

Fully taxable-equivalent adjustment
 
869

 
859

 
 
230

 
225

 
213

 
201

Total revenue, net of interest expense on a fully taxable-equivalent basis
 
$
85,116

 
$
89,801

 
 
$
18,955

 
$
21,434

 
$
21,960

 
$
22,767

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis
Income tax expense (benefit)
 
$
2,022

 
$
4,741

 
 
$
1,260

 
$
663

 
$
504

 
$
(405
)
Fully taxable-equivalent adjustment
 
869

 
859

 
 
230

 
225

 
213

 
201

Income tax expense (benefit) on a fully taxable-equivalent basis
 
$
2,891

 
$
5,600

 
 
$
1,490

 
$
888

 
$
717

 
$
(204
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Certain prior period amounts have been reclassified to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
25


Exhibit A: Non-GAAP Reconciliations (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bank of America Corporation and Subsidiaries
Reconciliations to GAAP Financial Measures
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth
Quarter
2014
 
Third
Quarter
2014
 
Second
Quarter
2014
 
First
Quarter
2014
 
 
2014
 
2013
 
 
Reconciliation of return on average allocated capital (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported net income
 
$
6,441

 
$
6,243

 
 
$
1,661

 
$
1,678

 
$
1,634

 
$
1,468

Adjustment related to intangibles (2)
 
4

 
7

 
 
1

 
1

 
1

 
1

Adjusted net income
 
$
6,445

 
$
6,250

 
 
$
1,662

 
$
1,679

 
$
1,635

 
$
1,469

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average allocated equity (3)
 
$
60,393

 
$
61,179

 
 
$
60,367

 
$
60,386

 
$
60,403

 
$
60,417

Adjustment related to goodwill and a percentage of intangibles
 
(30,393
)
 
(30,479
)
 
 
(30,367
)
 
(30,386
)
 
(30,403
)
 
(30,417
)
Average allocated capital
 
$
30,000

 
$
30,700

 
 
$
30,000

 
$
30,000

 
$
30,000

 
$
30,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Wealth & Investment Management
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported net income
 
$
2,974

 
$
2,977

 
 
$
706

 
$
813

 
$
726

 
$
729

Adjustment related to intangibles (2)
 
13

 
16

 
 
4

 
3

 
3

 
3

Adjusted net income
 
$
2,987

 
$
2,993

 
 
$
710

 
$
816

 
$
729

 
$
732

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average allocated equity (3)
 
$
22,214

 
$
20,292

 
 
$
22,186

 
$
22,204

 
$
22,222

 
$
22,243

Adjustment related to goodwill and a percentage of intangibles
 
(10,214
)
 
(10,292
)
 
 
(10,186
)
 
(10,204
)
 
(10,222
)
 
(10,243
)
Average allocated capital
 
$
12,000

 
$
10,000

 
 
$
12,000

 
$
12,000

 
$
12,000

 
$
12,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported net income
 
$
5,755

 
$
5,200

 
 
$
1,511

 
$
1,511

 
$
1,442

 
$
1,291

Adjustment related to intangibles (2)
 
2

 
3

 
 
—

 
1

 
—

 
1

Adjusted net income
 
$
5,757

 
$
5,203

 
 
$
1,511

 
$
1,512

 
$
1,442

 
$
1,292

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average allocated equity (3)
 
$
57,450

 
$
49,358

 
 
$
57,446

 
$
57,449

 
$
57,451

 
$
57,453

Adjustment related to goodwill and a percentage of intangibles
 
(23,950
)
 
(23,958
)
 
 
(23,946
)
 
(23,949
)
 
(23,951
)

(23,953
)
Average allocated capital
 
$
33,500

 
$
25,400

 
 
$
33,500

 
$
33,500

 
$
33,500

 
$
33,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Markets
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported net income (loss)
 
$
2,719

 
$
1,154

 
 
$
(72
)
 
$
373

 
$
1,105

 
$
1,313

Adjustment related to intangibles (2)
 
9

 
9

 
 
3

 
2

 
2

 
2

Adjusted net income (loss)
 
$
2,728

 
$
1,163

 
 
$
(69
)
 
$
375

 
$
1,107

 
$
1,315

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average allocated equity (3)
 
$
39,374

 
$
35,370

 
 
$
39,369

 
$
39,374

 
$
39,376

 
$
39,377

Adjustment related to goodwill and a percentage of intangibles
 
(5,374
)
 
(5,370
)
 
 
(5,369
)
 
(5,374
)
 
(5,376
)
 
(5,377
)
Average allocated capital
 
$
34,000

 
$
30,000

 
 
$
34,000

 
$
34,000

 
$
34,000

 
$
34,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
For footnotes see page 27.


Certain prior period amounts have been reclassified to conform to current period presentation.

This segment information is preliminary and based on company data available at the time of this filing.
26


Exhibit A: Non-GAAP Reconciliations (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bank of America Corporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliations to GAAP Financial Measures
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31
 
 
Fourth
Quarter
2014
 
Third
Quarter
2014
 
Second
Quarter
2014
 
First
Quarter
2014
 
 
2014
 
2013
 
 
Consumer Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported net income
 
$
2,449

 
$
1,846

 
 
$
568

 
$
688

 
$
632

 
$
561

Adjustment related to intangibles (2)
 
—

 
1

 
 
—

 
—

 
—

 
—

Adjusted net income
 
$
2,449

 
$
1,847

 
 
$
568

 
$
688

 
$
632

 
$
561

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average allocated equity (3)
 
$
29,427

 
$
28,535

 
 
$
29,426

 
$
29,428

 
$
29,428

 
$
29,425

Adjustment related to goodwill and a percentage of intangibles
 
(18,427
)
 
(18,435
)
 
 
(18,426
)
 
(18,428
)
 
(18,428
)
 
(18,425
)
Average allocated capital
 
$
11,000

 
$
10,100

 
 
$
11,000

 
$
11,000

 
$
11,000

 
$
11,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Lending
 
 
 
 
 
 
 
 
 
 
 
 
 
Reported net income
 
$
3,992

 
$
4,397

 
 
$
1,093

 
$
990

 
$
1,002

 
$
907

Adjustment related to intangibles (2)
 
4

 
7

 
 
1

 
1

 
1

 
1

Adjusted net income
 
$
3,996

 
$
4,404

 
 
$
1,094

 
$
991

 
$
1,003

 
$
908

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average allocated equity (3)
 
$
30,966

 
$
32,644

 
 
$
30,941

 
$
30,958

 
$
30,975

 
$
30,993

Adjustment related to goodwill and a percentage of intangibles
 
(11,966
)
 
(12,044
)
 
 
(11,941
)
 
(11,958
)
 
(11,975
)
 
(11,993
)
Average allocated capital
 
$
19,000

 
$
20,600

 
 
$
19,000

 
$
19,000

 
$
19,000

 
$
19,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
There are no adjustments to reported net income (loss) or average allocated equity for Legacy Assets & Servicing.
(2) 
Represents cost of funds, earnings credits and certain expenses related to intangibles.
(3) 
Average allocated equity is comprised of average allocated capital plus capital for the portion of goodwill and intangibles specifically assigned to the business segment.


Certain prior period amounts have been reclassified to conform to current period presentation.


This segment information is preliminary and based on company data available at the time of this filing.
27