• | Total Deposits (EOP) up $50 Billion, or 4 Percent, to $1.16 Trillion |
• | Residential Mortgage and Home Equity Loan Originations up 13 Percent to $17 Billion |
• | 1.3 Million New Credit Cards Issued, up 5 Percent |
• | Number of Mobile Banking Users up 14 Percent to 18.4 Million |
• | Merrill Edge Brokerage Assets up 8 Percent to $117 Billion |
• | Wealth Management Loan Balances (EOP) up $12 Billion, or 10 Percent, to $135 Billion |
• | Global Banking Loan Balances (EOP) up $30 Billion, or 11 Percent, to $315 Billion |
• | Investment Bank Generated $391 Million in Advisory Fees, Second-Highest Quarter Since Merrill Lynch Merger |
• | Noninterest Expense, Excluding Litigation, Down 4 Percent to $13.6 Billion(A) |
• | Legacy Assets and Servicing Noninterest Expense, Excluding Litigation, Down 32 Percent to $0.9 Billion(B) |
• | Net Charge-offs Down 11 Percent to $932 Million |
• | Common Equity Tier 1 Capital (Transition) Increased to $161.6 Billion |
• | Common Equity Tier 1 Capital (Fully Phased-in) Increased to Record $153.1 Billion(C) |
• | Record Global Excess Liquidity Sources up $70 Billion to $499 Billion; Time-to-required Funding at 42 Months(D) |
• | Tangible Book Value per Share up 10 Percent to $15.50 per Share(E) |
• | Book Value per Share up 7 Percent to $22.41 per Share |
• | Return on Average Assets 0.82 Percent; Return on Average Tangible Common Equity 10 Percent; Return on Average Common Equity 6.97 Percent(F) |
• | Returned $3.1 Billion to Common Shareholders Year-to-Date Via Repurchases and Dividends |
Three Months Ended | |||||||||||
(Dollars in millions, except per share data) | September 30 2015 | June 30 2015 | September 30 2014 | ||||||||
Net interest income, FTE basis1 | $ | 9,742 | $ | 10,716 | $ | 10,444 | |||||
Noninterest income | 11,171 | 11,629 | 10,990 | ||||||||
Total revenue, net of interest expense, FTE basis1 | 20,913 | 22,345 | 21,434 | ||||||||
Provision for credit losses | 806 | 780 | 636 | ||||||||
Noninterest expense2 | 13,807 | 13,818 | 20,142 | ||||||||
Net income (loss) | $ | 4,508 | $ | 5,320 | $ | (232 | ) | ||||
Diluted earnings (loss) per common share | $ | 0.37 | $ | 0.45 | $ | (0.04 | ) |
1 | Fully taxable-equivalent (FTE) basis for the corporation is a non-GAAP financial measure. For more information, see endnote G. Net interest income on a GAAP basis was $9.5 billion, $10.5 billion and $10.2 billion for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively. Total revenue, net of interest expense, on a GAAP basis was $20.7 billion, $22.1 billion and $21.2 billion for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively. |
2 | Noninterest expense includes litigation expense of $231 million, $175 million and $6.0 billion for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively. |
Three Months Ended | |||||||||||
(Dollars in millions) | September 30 2015 | June 30 2015 | September 30 2014 | ||||||||
Total revenue, net of interest expense, FTE basis | $ | 7,832 | $ | 7,544 | $ | 7,749 | |||||
Provision for credit losses | 648 | 506 | 668 | ||||||||
Noninterest expense | 4,434 | 4,318 | 4,462 | ||||||||
Net income | $ | 1,759 | $ | 1,706 | $ | 1,669 | |||||
Return on average allocated capital1 | 24 | % | 24 | % | 22 | % | |||||
Average loans | $ | 206,337 | $ | 201,703 | $ | 197,374 | |||||
Average deposits | 548,895 | 545,454 | 514,549 | ||||||||
At period-end | |||||||||||
Brokerage assets | $ | 117,210 | $ | 121,961 | $ | 108,533 |
1 | Return on average allocated capital is a non-GAAP financial measure. The company 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 this measure differently. For reconciliation to GAAP financial measures, refer to pages 22-24 of this press release. |
• | Average deposit balances increased $34.3 billion, or 7 percent, from the year-ago quarter to $548.9 billion. |
• | The company originated $13.7 billion in first-lien residential mortgage loans and $3.1 billion in home equity loans in the third quarter of 2015, compared to $11.7 billion and $3.2 billion, respectively, in the year-ago quarter. |
• | Client brokerage assets increased $8.7 billion, or 8 percent, from the year-ago quarter to $117.2 billion, driven primarily by strong account flows, partially offset by lower market valuations. |
• | The company issued 1.3 million new consumer credit cards in the third quarter of 2015, up from 1.2 million cards issued in the year-ago quarter. |
Three Months Ended | |||||||||||
(Dollars in millions) | September 30 2015 | June 30 2015 | September 30 2014 | ||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,468 | $ | 4,573 | $ | 4,666 | |||||
Provision for credit losses | (2 | ) | 15 | (15 | ) | ||||||
Noninterest expense | 3,447 | 3,459 | 3,405 | ||||||||
Net income | $ | 656 | $ | 689 | $ | 812 | |||||
Return on average allocated capital1 | 22 | % | 23 | % | 27 | % | |||||
Average loans and leases | $ | 133,168 | $ | 130,270 | $ | 121,002 | |||||
Average deposits | 243,980 | 239,974 | 239,352 | ||||||||
At period-end (dollars in billions) | |||||||||||
Assets under management | $ | 877 | $ | 930 | $ | 888 | |||||
Total client balances2 | 2,396 | 2,522 | 2,462 |
1 | Return on average allocated capital is a non-GAAP financial measure. The company 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 this measure differently. For reconciliation to GAAP financial measures, refer to pages 22-24 of this press release. |
2 | Total client balances are defined as assets under management, client brokerage assets, assets in custody, client deposits and loans (including margin receivables). |
• | The number of wealth advisors increased by 998 advisors from the year-ago quarter to 18,037, due to continued investment within the Advisor Development program, improved competitive recruiting and near historically low advisor attrition levels. This increase includes 174 advisors in Consumer Banking as the company continues to expand its specialist network to broaden and deepen client relationships. |
• | Third-quarter 2015 long-term assets under management (AUM) flows of $4.4 billion were the 25th consecutive quarter of positive flows. |
• | Average deposit balances increased 2 percent, or $4.6 billion, from the year-ago quarter to $244.0 billion, and average loan balances increased 10 percent from the year-ago quarter to $133.2 billion, marking the 22nd consecutive quarter of loan balance growth. |
• | Asset management fees increased 2 percent from the third quarter of 2014 to $2.1 billion. |
Three Months Ended | |||||||||||
(Dollars in millions) | September 30 2015 | June 30 2015 | September 30 2014 | ||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,191 | $ | 4,106 | $ | 4,345 | |||||
Provision for credit losses | 179 | 177 | (64 | ) | |||||||
Noninterest expense | 2,020 | 1,932 | 2,016 | ||||||||
Net income | $ | 1,277 | $ | 1,251 | $ | 1,521 | |||||
Return on average allocated capital1 | 14 | % | 14 | % | 18 | % | |||||
Average loans and leases | $ | 310,043 | $ | 300,631 | $ | 283,264 | |||||
Average deposits | 296,321 | 288,117 | 291,927 |
1 | Return on average allocated capital is a non-GAAP financial measure. The company 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 this measure differently. For reconciliation to GAAP financial measures, refer to pages 22-24 of this press release. |
• | Bank of America Merrill Lynch generated firmwide investment banking fees of $1.3 billion, excluding self-led deals, in the third quarter of 2015, maintaining its No. 3 global ranking(H). |
• | Bank of America Merrill Lynch was ranked among the top three global financial institutions in high-yield corporate debt, leveraged loans, mortgage-backed securities, asset-backed securities, convertible debt, investment grade corporate debt, syndicated loans, and debt capital markets during the third quarter of 2015(H). |
• | Firmwide advisory fees of $391 million were the second-highest results since the Merrill Lynch merger. |
• | Average loan and lease balances increased $26.8 billion, or 9 percent, from the year-ago quarter, to $310 billion, largely due to growth in the commercial and industrial loan portfolio and in the commercial real estate portfolio. |
Three Months Ended | |||||||||||
(Dollars in millions) | September 30 2015 | June 30 2015 | September 30 2014 | ||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,071 | $ | 4,267 | $ | 4,161 | |||||
Total revenue, net of interest expense, FTE basis, excluding net DVA1 | 3,758 | 4,165 | 3,956 | ||||||||
Provision for credit losses | 42 | 6 | 45 | ||||||||
Noninterest expense | 2,683 | 2,732 | 3,357 | ||||||||
Net income | $ | 1,008 | $ | 992 | $ | 371 | |||||
Return on average allocated capital2 | 11 | % | 11 | % | 4 | % | |||||
Total average assets | $ | 597,103 | $ | 602,735 | $ | 599,977 |
1 | Represents a non-GAAP financial measure. Net DVA gains were $313 million, $102 million and $205 million for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively. |
2 | Return on average allocated capital is a non-GAAP financial measure. The company 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 this measure differently. For reconciliation to GAAP financial measures, refer to pages 22-24 of this press release. |
• | Equities sales and trading revenue, excluding net DVA, increased 12 percent from the year-ago quarter to $1.2 billion, driven by a strong performance in derivatives, reflecting favorable market conditions(I). |
• | Bank of America Merrill Lynch’s U.S. Equity Research Team was ranked No. 1 in the 2015 All-America Institutional Investor survey. |
Three Months Ended | |||||||||||
(Dollars in millions) | September 30 2015 | June 30 2015 | September 30 2014 | ||||||||
Total revenue, net of interest expense, FTE basis | $ | 841 | $ | 1,089 | $ | 556 | |||||
Provision for credit losses | 6 | 57 | 267 | ||||||||
Noninterest expense1 | 1,143 | 961 | 6,648 | ||||||||
Net income (loss) | $ | (196 | ) | $ | 45 | $ | (5,114 | ) | |||
Average loans and leases | 29,074 | 30,897 | 35,238 | ||||||||
At period-end | |||||||||||
Loans and leases | $ | 27,982 | $ | 30,024 | $ | 34,484 |
• | The number of 60+ days delinquent first-mortgage loans serviced by LAS declined to 114,000 loans at the end of the third quarter of 2015, down 18,000 loans, or 14 percent, from the prior quarter and down 107,000 loans, or 48 percent, from the year-ago quarter. |
• | Noninterest expense, excluding litigation, was approximately $0.9 billion in the third quarter of 2015, compared to $0.9 billion in the second quarter of 2015 and $1.3 billion in the third quarter of 2014(B). |
Three Months Ended | |||||||||||
(Dollars in millions) | September 30 2015 | June 30 2015 | September 30 2014 | ||||||||
Total revenue, net of interest expense, FTE basis | $ | (490 | ) | $ | 766 | $ | (43 | ) | |||
Provision for credit losses | (67 | ) | 19 | (265 | ) | ||||||
Noninterest expense | 80 | 416 | 254 | ||||||||
Net income | $ | 4 | $ | 637 | $ | 509 | |||||
Total average loans | 137,827 | 156,006 | 199,404 |
1 | All Other consists of ALM activities, equity investments, the international consumer card business, liquidating businesses, residual expense allocations and other. ALM activities encompass residential mortgages, debt 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. Beginning with new originations in 2014, we retain certain residential mortgages in Consumer Banking, consistent with where the overall relationship is managed; previously such mortgages were in All Other. Additionally, certain residential mortgage loans that are managed by Legacy Assets and Servicing are held in All Other. The results of certain ALM activities are allocated to our business segments. Equity investments include our merchant services joint venture as well as Global Principal Investments which is comprised of a portfolio of equity, real estate and other alternative investments. |
Three Months Ended | |||||||||||
(Dollars in millions) | September 30 2015 | June 30 2015 | September 30 2014 | ||||||||
Provision for credit losses | $ | 806 | $ | 780 | $ | 636 | |||||
Net charge-offs1 | 932 | 1,068 | 1,043 | ||||||||
Net charge-off ratio1, 2 | 0.42 | % | 0.49 | % | 0.46 | % | |||||
Net charge-off ratio, including PCI write-offs2 | 0.49 | 0.62 | 0.57 | ||||||||
At period-end | |||||||||||
Nonperforming loans, leases and foreclosed properties | $ | 10,336 | $ | 11,565 | $ | 14,232 | |||||
Nonperforming loans, leases and foreclosed properties ratio3 | 1.17 | % | 1.31 | % | 1.61 | % | |||||
Allowance for loan and lease losses | $ | 12,657 | $ | 13,068 | $ | 15,106 | |||||
Allowance for loan and lease losses ratio4 | 1.44 | % | 1.49 | % | 1.71 | % |
1 | Excludes write-offs of PCI loans of $148 million, $290 million and $246 million for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively. |
2 | Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases during the period. |
3 | Nonperforming loans, leases and foreclosed properties ratios are calculated as nonperforming loans, leases and foreclosed properties divided by outstanding loans, leases and foreclosed properties at the end of the period. |
4 | Allowance for loan and lease losses ratio is calculated as allowance for loan and lease losses divided by loans and leases outstanding at the end of the period. |
(Dollars in billions) | At September 30 2015 | At June 30 2015 | |||||
Basel 3 Transition (under Standardized approach) | |||||||
Common equity tier 1 capital - Basel 3 | $ | 161.6 | $ | 158.3 | |||
Risk-weighted assets | 1,391.7 | 1,407.9 | |||||
Common equity tier 1 capital ratio - Basel 3 | 11.6 | % | 11.2 | % | |||
Basel 3 Fully Phased-in (under Standardized approach)2,3 | |||||||
Common equity tier 1 capital - Basel 3 | $ | 153.1 | $ | 148.3 | |||
Risk-weighted assets | 1,414.7 | 1,433.4 | |||||
Common equity tier 1 capital ratio - Basel 3 | 10.8 | % | 10.3 | % | |||
Basel 3 Fully Phased-in (under Advanced approaches)2,3 | |||||||
Common equity tier 1 capital - Basel 3 | $153.1 | $148.3 | |||||
Risk-weighted assets | 1,397.5 | 1,427.4 | |||||
Common equity tier 1 capital ratio - Basel 3 | 11.0 | % | 10.4 | % | |||
Pro-forma common equity tier 1 capital ratio - Basel 32,3 | 9.7 | % | 9.3 | % |
(Dollars in millions, except per share information) | At September 30 2015 | At June 30 2015 | At September 30 2014 | ||||||||
Tangible common equity ratio4 | 7.8 | % | 7.6 | % | 7.2 | % | |||||
Total shareholders’ equity | $ | 255,905 | $ | 251,659 | $ | 238,681 | |||||
Common equity ratio | 10.9 | % | 10.7 | % | 10.4 | % | |||||
Tangible book value per share4 | $ | 15.50 | $ | 15.02 | $ | 14.09 | |||||
Book value per share | 22.41 | 21.91 | 20.99 |
1 | Regulatory capital ratios are preliminary. Common equity tier 1 (CET1) capital, Tier 1 capital, risk-weighted assets (RWA), CET1 ratio and supplementary leverage ratio (SLR) as shown on a fully phased-in basis are non-GAAP financial measures. For more information, refer to Endnote (C) on page 13. For a reconciliation to GAAP financial measures, refer to page 18 of this press release. |
2 | Bank of America received approval to begin using the Advanced approaches capital framework to determine risk-based capital requirements beginning in the fourth quarter of 2015. As previously disclosed, with the approval to exit parallel, U.S. banking regulators requested modifications to certain internal analytical models including the wholesale (e.g., commercial) credit models which will increase our risk-weighted assets in the fourth quarter of 2015. Including these modifications, the estimated pro-forma CET1 ratio under the Basel 3 Advanced approaches on a fully phased-in basis would be 9.7 percent and 9.3 percent at September 30, 2015 and June 30, 2015, respectively. For more information, refer to Endnote (C) on page 13. |
3 | Basel 3 Advanced approaches estimates assume approval by U.S. banking regulators of our internal analytical models, including approval of the internal models methodology (IMM). As of September 30, 2015, BAC had not received IMM approval. |
4 | Tangible common equity ratio and tangible book value per share are non-GAAP financial measures. For reconciliations to GAAP financial measures, refer to pages 22-24 of this press release. |
• | The estimated Common equity tier 1 capital ratio under the Basel 3 Standardized approach on a fully phased-in basis was 10.8 percent at September 30, 2015 and 10.3 percent at June 30, 2015(C). |
• | The estimated Common equity tier 1 capital ratio under the Basel 3 Advanced approaches on a fully phased-in basis was 11.0 percent at September 30, 2015 and 10.4 percent at June 30, 2015(C). |
(A) | Noninterest expense, excluding litigation expense, is a non-GAAP financial measure. Noninterest expense on a GAAP basis was $13.8 billion, $13.8 billion and $20.1 billion for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively. Litigation expense was $231 million, $175 million and $6.0 billion for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively. |
(B) | Legacy Assets and Servicing (LAS) noninterest expense, excluding litigation, is a non-GAAP financial measure. LAS noninterest expense was $1.1 billion, $961 million and $6.6 billion for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively. LAS litigation expense was $228 million, $59 million and $5.3 billion in the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively. |
(C) | Fully phased-in estimates are non-GAAP financial measures. For a reconciliation to GAAP financial measures, refer to page 18 of this press release. On January 1, 2014, the Basel 3 rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting Common equity tier 1 (CET1) capital and Tier 1 capital. Bank of America received approval to begin using the Advanced approaches capital framework to determine risk-based capital requirements beginning in the fourth quarter of 2015. As previously disclosed, with the approval to exit parallel, U.S. banking regulators requested modifications to certain internal analytical models including the wholesale (e.g., commercial) credit models which will increase our risk-weighted assets in the fourth quarter of 2015. Including these modifications, the estimated pro-forma CET1 ratio under the Basel 3 Advanced approaches on a fully phased-in basis would be 9.7 percent and 9.3 percent at September 30, 2015 and June 30, 2015, respectively. Basel 3 Advanced approaches estimates assume approval by U.S. banking regulators of our internal analytical models, including approval of the internal models methodology (IMM). As of September 30, 2015, BAC had not received IMM approval. |
(D) | Global Excess Liquidity Sources include cash and high-quality, liquid, unencumbered securities, limited to U.S. government securities, U.S. agency securities, U.S. agency MBS, and a select group of non-U.S. government and supranational securities, and are readily available to meet funding requirements as they arise. It does not include Federal Reserve Discount Window or Federal Home Loan Bank borrowing capacity. Transfers of liquidity from the bank or other regulated entities are subject to certain regulatory restrictions. Time-to-required funding is a debt coverage measure and is expressed as the number of months unsecured holding company obligations of Bank of America Corporation can be met using only the parent company’s Global Excess Liquidity Sources without issuing debt or sourcing additional liquidity. We define unsecured contractual obligations for purposes of this metric as maturities of senior or subordinated debt issued or guaranteed by Bank of America Corporation. We have included in the amount of unsecured contractual obligations the $8.6 billion liability, including estimated costs, for settlements, primarily for the previously announced BNY Mellon private-label securitization settlement. |
(E) | Tangible book value per share of common stock is a non-GAAP financial measure. For more information, refer to pages 22-24 of this press release. |
(F) | Return on average tangible common equity is a non-GAAP financial measure. For more information, refer to pages 22-24 of this press release. |
(G) | Fully taxable-equivalent (FTE) basis for the corporation is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 22-24 of this press release. Net interest income on a GAAP basis was $9.5 billion, $10.5 billion and $10.2 billion for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively. Net interest income on an FTE basis, excluding market-related adjustments, represents a non-GAAP financial measure. Market-related adjustments of premium amortization expense and hedge ineffectiveness were ($0.6) billion, $0.7 billion and ($0.1) billion for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively. Total revenue, net of interest expense, on a GAAP basis was $20.7 billion, $22.1 billion and $21.2 billion for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively. Net DVA gains were $313 million, $102 million and $205 million for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014, respectively. |
(H) | Rankings per Dealogic as of October 5, 2015 for the quarter ended September 30, 2015. |
(I) | Sales and Trading revenue, excluding DVA, is a non-GAAP financial measure. Sales and trading net DVA gains were $313 million and $205 million for the three months ended September 30, 2015 and 2014, respectively. Equities net DVA gains were $35 million and $72 million for the three months ended September 30, 2015 and 2014. FICC net DVA gains were $278 million and $133 million for the three months ended September 30, 2015 and September 30, 2014, respectively. |
(J) | Global Markets revenue, excluding net DVA, is a non-GAAP financial measure. Net DVA gains were $313 million and $205 million for the three months ended September 30, 2015 and 2014, respectively. |
(K) | Global Markets noninterest expense, excluding litigation expense, is a non-GAAP financial measure. Global Markets noninterest expense was $2.7 billion and $3.4 billion for the three months ended September 30, 2015 and 2014, respectively. Global Markets litigation expense was $32 million and $601 million for the three months ended September 30, 2015 and 2014, respectively. |
(L) | The estimated supplementary leverage ratio is measured using quarter-end Tier 1 capital as the numerator, calculated under Basel 3 on a fully phased-in basis. The denominator is supplementary leverage exposure based on the daily average of the sum of on-balance sheet exposures less permitted Tier 1 deductions, as well as the simple average of certain off-balance sheet exposures, as of the end of each month in a quarter. Off-balance sheet exposures include lending commitments, letters of credit, OTC derivatives, repo-style transactions and margin loan commitments. At September 30, 2015, the estimated SLR for the Bank Holding Company on a transition basis was 6.5 percent. Differences between fully phased-in and transitional supplementary leverage exposures are immaterial. |
(M) | The Liquidity Coverage Ratio (LCR) estimates are based on our current understanding of the final U.S. LCR rules which were issued on September 3, 2014. |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||
Selected Financial Data | |||||||||||||||||||
(Dollars in millions, except per share data; shares in thousands) | |||||||||||||||||||
Summary Income Statement | Nine Months Ended September 30 | Third Quarter 2015 | Second Quarter 2015 | Third Quarter 2014 | |||||||||||||||
2015 | 2014 | ||||||||||||||||||
Net interest income | $ | 29,450 | $ | 30,317 | $ | 9,511 | $ | 10,488 | $ | 10,219 | |||||||||
Noninterest income | 34,551 | 35,205 | 11,171 | 11,629 | 10,990 | ||||||||||||||
Total revenue, net of interest expense | 64,001 | 65,522 | 20,682 | 22,117 | 21,209 | ||||||||||||||
Provision for credit losses | 2,351 | 2,056 | 806 | 780 | 636 | ||||||||||||||
Noninterest expense | 43,320 | 60,921 | 13,807 | 13,818 | 20,142 | ||||||||||||||
Income before income taxes | 18,330 | 2,545 | 6,069 | 7,519 | 431 | ||||||||||||||
Income tax expense | 5,145 | 762 | 1,561 | 2,199 | 663 | ||||||||||||||
Net income (loss) | $ | 13,185 | $ | 1,783 | $ | 4,508 | $ | 5,320 | $ | (232 | ) | ||||||||
Preferred stock dividends | 1,153 | 732 | 441 | 330 | 238 | ||||||||||||||
Net income (loss) applicable to common shareholders | $ | 12,032 | $ | 1,051 | $ | 4,067 | $ | 4,990 | $ | (470 | ) | ||||||||
Common shares issued | 3,983 | 25,218 | 36 | 88 | 69 | ||||||||||||||
Average common shares issued and outstanding | 10,483,466 | 10,531,688 | 10,444,291 | 10,488,137 | 10,515,790 | ||||||||||||||
Average diluted common shares issued and outstanding (1) | 11,234,125 | 10,587,841 | 11,197,203 | 11,238,060 | 10,515,790 | ||||||||||||||
Summary Average Balance Sheet | |||||||||||||||||||
Total debt securities | $ | 388,007 | $ | 345,194 | $ | 394,420 | $ | 386,357 | $ | 359,653 | |||||||||
Total loans and leases | 878,921 | 910,360 | 882,841 | 881,415 | 899,241 | ||||||||||||||
Total earning assets | 1,822,720 | 1,819,247 | 1,847,396 | 1,815,892 | 1,813,482 | ||||||||||||||
Total assets | 2,153,289 | 2,148,298 | 2,168,993 | 2,151,966 | 2,136,109 | ||||||||||||||
Total deposits | 1,145,686 | 1,124,777 | 1,159,231 | 1,146,789 | 1,127,488 | ||||||||||||||
Common shareholders' equity | 228,609 | 222,598 | 231,620 | 228,780 | 222,374 | ||||||||||||||
Total shareholders' equity | 250,260 | 236,806 | 253,893 | 251,054 | 238,040 | ||||||||||||||
Performance Ratios | |||||||||||||||||||
Return on average assets | 0.82 | % | 0.11 | % | 0.82 | % | 0.99 | % | n/m | ||||||||||
Return on average tangible common shareholders' equity (2) | 10.29 | 0.94 | 10.11 | 12.78 | n/m | ||||||||||||||
Per common share information | |||||||||||||||||||
Earnings (loss) | $ | 1.15 | $ | 0.10 | $ | 0.39 | $ | 0.48 | $ | (0.04 | ) | ||||||||
Diluted earnings (loss) (1) | 1.09 | 0.10 | 0.37 | 0.45 | (0.04 | ) | |||||||||||||
Dividends paid | 0.15 | 0.07 | 0.05 | 0.05 | 0.05 | ||||||||||||||
Book value | 22.41 | 20.99 | 22.41 | 21.91 | 20.99 | ||||||||||||||
Tangible book value (2) | 15.50 | 14.09 | 15.50 | 15.02 | 14.09 | ||||||||||||||
September 30 2015 | June 30 2015 | September 30 2014 | |||||||||||||||||
Summary Period-End Balance Sheet | |||||||||||||||||||
Total debt securities | $ | 391,651 | $ | 392,379 | $ | 368,124 | |||||||||||||
Total loans and leases | 887,689 | 886,449 | 891,315 | ||||||||||||||||
Total earning assets | 1,826,310 | 1,807,112 | 1,783,051 | ||||||||||||||||
Total assets | 2,153,006 | 2,149,034 | 2,123,613 | ||||||||||||||||
Total deposits | 1,162,009 | 1,149,560 | 1,111,981 | ||||||||||||||||
Common shareholders' equity | 233,632 | 229,386 | 220,768 | ||||||||||||||||
Total shareholders' equity | 255,905 | 251,659 | 238,681 | ||||||||||||||||
Common shares issued and outstanding | 10,427,305 | 10,471,837 | 10,515,894 | ||||||||||||||||
Credit Quality | Nine Months Ended September 30 | Third Quarter 2015 | Second Quarter 2015 | Third Quarter 2014 | |||||||||||||||
2015 | 2014 | ||||||||||||||||||
Total net charge-offs | $ | 3,194 | $ | 3,504 | $ | 932 | $ | 1,068 | $ | 1,043 | |||||||||
Net charge-offs as a percentage of average loans and leases outstanding (3) | 0.49 | % | 0.52 | % | 0.42 | % | 0.49 | % | 0.46 | % | |||||||||
Provision for credit losses | $ | 2,351 | $ | 2,056 | $ | 806 | $ | 780 | $ | 636 | |||||||||
September 30 2015 | June 30 2015 | September 30 2014 | |||||||||||||||||
Total nonperforming loans, leases and foreclosed properties (4) | $ | 10,336 | $ | 11,565 | $ | 14,232 | |||||||||||||
Nonperforming loans, leases and foreclosed properties as a percentage of total loans, leases and foreclosed properties (3) | 1.17 | % | 1.31 | % | 1.61 | % | |||||||||||||
Allowance for loan and lease losses | $ | 12,657 | $ | 13,068 | $ | 15,106 | |||||||||||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (3) | 1.44 | % | 1.49 | % | 1.71 | % | |||||||||||||
For footnotes see page 18. |
More | This information is preliminary and based on company data available at the time of the presentation. |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||
Selected Financial Data (continued) | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Basel 3 Standardized Transition | |||||||||||||||||||
Capital Management | September 30 2015 | June 30 2015 | September 30 2014 | ||||||||||||||||
Risk-based capital metrics (5, 6): | |||||||||||||||||||
Common equity tier 1 capital | $ | 161,649 | $ | 158,326 | $ | 152,444 | |||||||||||||
Common equity tier 1 capital ratio | 11.6 | % | 11.2 | % | 12.0 | % | |||||||||||||
Tier 1 leverage ratio | 8.5 | 8.5 | 7.9 | ||||||||||||||||
Tangible equity ratio (7) | 8.8 | 8.6 | 8.1 | ||||||||||||||||
Tangible common equity ratio (7) | 7.8 | 7.6 | 7.2 | ||||||||||||||||
Regulatory Capital Reconciliations (5, 8, 9) | September 30 2015 | June 30 2015 | September 30 2014 | ||||||||||||||||
Regulatory capital – Basel 3 transition to fully phased-in | |||||||||||||||||||
Common equity tier 1 capital (transition) (6) | $ | 161,649 | $ | 158,326 | $ | 152,444 | |||||||||||||
Deferred tax assets arising from net operating loss and tax credit carryforwards phased in during transition | (5,554 | ) | (5,706 | ) | (10,502 | ) | |||||||||||||
Accumulated OCI phased in during transition | (1,018 | ) | (1,884 | ) | (2,399 | ) | |||||||||||||
Intangibles phased in during transition | (1,654 | ) | (1,751 | ) | (2,697 | ) | |||||||||||||
Defined benefit pension fund assets phased in during transition | (470 | ) | (476 | ) | (664 | ) | |||||||||||||
DVA related to liabilities and derivatives phased in during transition | 228 | 384 | 974 | ||||||||||||||||
Other adjustments and deductions phased in during transition | (92 | ) | (587 | ) | (2,050 | ) | |||||||||||||
Common equity tier 1 capital (fully phased-in) | $ | 153,089 | $ | 148,306 | $ | 135,106 | |||||||||||||
Risk-weighted assets – As reported to Basel 3 (fully phased-in) | |||||||||||||||||||
As reported risk-weighted assets (6) | $ | 1,391,672 | $ | 1,407,891 | $ | 1,271,723 | |||||||||||||
Change in risk-weighted assets from reported to fully phased-in | 22,989 | 25,460 | 146,516 | ||||||||||||||||
Basel 3 Standardized approach risk-weighted assets (fully phased-in) | 1,414,661 | 1,433,351 | 1,418,239 | ||||||||||||||||
Change in risk-weighted assets for advanced models | (17,157 | ) | (5,963 | ) | (8,375 | ) | |||||||||||||
Basel 3 Advanced approaches risk-weighted assets (fully phased-in) | $ | 1,397,504 | $ | 1,427,388 | $ | 1,409,864 | |||||||||||||
Regulatory capital ratios | |||||||||||||||||||
Basel 3 Standardized approach Common equity tier 1 (transition) (6) | 11.6 | % | 11.2 | % | 12.0 | % | |||||||||||||
Basel 3 Standardized approach Common equity tier 1 (fully phased-in) | 10.8 | 10.3 | 9.5 | ||||||||||||||||
Basel 3 Advanced approaches Common equity tier 1 (fully phased-in) | 11.0 | 10.4 | 9.6 | ||||||||||||||||
(1) | The diluted earnings (loss) per common share excludes the effect of any equity instruments that are antidilutive to earnings per share. There were no potential common shares that were dilutive in the third quarter of 2014 because of net loss applicable to common shareholders. |
(2) | Return on average tangible common shareholders' equity and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. See Reconciliations to GAAP Financial Measures on pages 22-24. |
(3) | Ratios do not include loans accounted for under the fair value option during the period. Charge-off ratios are annualized for the quarterly presentation. |
(4) | Balances do not include past due consumer credit card, consumer loans secured by real estate where repayments are insured by the Federal Housing Administration and individually insured long-term stand-by agreements (fully-insured home loans), and in general, other consumer and commercial loans not secured by real estate; purchased credit-impaired loans even though the customer may be contractually past due; nonperforming loans held-for-sale; nonperforming loans accounted for under the fair value option; and nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010. |
(5) | Regulatory capital ratios are preliminary. |
(6) | Common equity tier 1 capital ratios at September 30, 2015 and June 30, 2015 reflect the migration of the risk-weighted assets calculation from the general risk-based approach to the Basel 3 Standardized approach, and Common equity tier 1 capital includes the 2015 phase-in of regulatory capital transition provisions. |
(7) | Tangible equity ratio equals period-end tangible shareholders' equity divided by period-end tangible assets. Tangible common equity ratio equals period-end tangible common shareholders' equity divided by period-end tangible assets. Tangible shareholders' equity and tangible assets are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. See Reconciliations to GAAP Financial Measures on pages 22-24. |
(8) | Bank of America received approval to begin using the Advanced approaches capital framework to determine risk-based capital requirements beginning in the fourth quarter of 2015. As previously disclosed, with the approval to exit parallel, U.S. banking regulators requested modifications to certain internal analytical models including the wholesale (e.g., commercial) credit models, which will increase our risk-weighted assets in the fourth quarter of 2015. Including these modifications, the estimated pro-forma risk-weighted assets and Common equity tier 1 capital ratio under the Basel 3 Advanced approaches on a fully phased-in basis would be $1,570 billion and 9.7 percent at September 30, 2015. |
(9) | Fully phased-in estimates are non-GAAP financial measures. For reconciliations to GAAP financial measures, see above. Basel 3 fully phased-in Advanced approaches estimates assume approval by U.S. banking regulators of our internal analytical models, including approval of the internal models methodology. As of September 30, 2015, we had not received internal models methodology approval. |
More | This information is preliminary and based on company data available at the time of the presentation. |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||
Quarterly Results by Business Segment | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Third Quarter 2015 | ||||||||||||||||||||||||
Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 7,832 | $ | 4,468 | $ | 4,191 | $ | 4,071 | $ | 841 | $ | (490 | ) | |||||||||||
Provision for credit losses | 648 | (2 | ) | 179 | 42 | 6 | (67 | ) | ||||||||||||||||
Noninterest expense | 4,434 | 3,447 | 2,020 | 2,683 | 1,143 | 80 | ||||||||||||||||||
Net income (loss) | 1,759 | 656 | 1,277 | 1,008 | (196 | ) | 4 | |||||||||||||||||
Return on average allocated capital (2) | 24 | % | 22 | % | 14 | % | 11 | % | n/m | n/m | ||||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 206,337 | $ | 133,168 | $ | 310,043 | $ | 66,392 | $ | 29,074 | $ | 137,827 | ||||||||||||
Total deposits | 548,895 | 243,980 | 296,321 | 37,050 | n/m | 22,605 | ||||||||||||||||||
Allocated capital (2) | 29,000 | 12,000 | 35,000 | 35,000 | 24,000 | n/m | ||||||||||||||||||
Period end | ||||||||||||||||||||||||
Total loans and leases | $ | 208,981 | $ | 134,630 | $ | 315,224 | $ | 70,159 | $ | 27,982 | $ | 130,713 | ||||||||||||
Total deposits | 551,539 | 246,172 | 297,644 | 36,019 | n/m | 21,771 | ||||||||||||||||||
Second Quarter 2015 | ||||||||||||||||||||||||
Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 7,544 | $ | 4,573 | $ | 4,106 | $ | 4,267 | $ | 1,089 | $ | 766 | ||||||||||||
Provision for credit losses | 506 | 15 | 177 | 6 | 57 | 19 | ||||||||||||||||||
Noninterest expense | 4,318 | 3,459 | 1,932 | 2,732 | 961 | 416 | ||||||||||||||||||
Net income | 1,706 | 689 | 1,251 | 992 | 45 | 637 | ||||||||||||||||||
Return on average allocated capital (2) | 24 | % | 23 | % | 14 | % | 11 | % | 1 | % | n/m | |||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 201,703 | $ | 130,270 | $ | 300,631 | $ | 61,908 | $ | 30,897 | $ | 156,006 | ||||||||||||
Total deposits | 545,454 | 239,974 | 288,117 | 39,718 | n/m | 22,482 | ||||||||||||||||||
Allocated capital (2) | 29,000 | 12,000 | 35,000 | 35,000 | 24,000 | n/m | ||||||||||||||||||
Period end | ||||||||||||||||||||||||
Total loans and leases | $ | 204,380 | $ | 132,377 | $ | 307,085 | $ | 66,026 | $ | 30,024 | $ | 146,557 | ||||||||||||
Total deposits | 547,343 | 237,624 | 292,261 | 39,326 | n/m | 22,964 | ||||||||||||||||||
Third Quarter 2014 | ||||||||||||||||||||||||
Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 7,749 | $ | 4,666 | $ | 4,345 | $ | 4,161 | $ | 556 | $ | (43 | ) | |||||||||||
Provision for credit losses | 668 | (15 | ) | (64 | ) | 45 | 267 | (265 | ) | |||||||||||||||
Noninterest expense | 4,462 | 3,405 | 2,016 | 3,357 | 6,648 | 254 | ||||||||||||||||||
Net income (loss) | 1,669 | 812 | 1,521 | 371 | (5,114 | ) | 509 | |||||||||||||||||
Return on average allocated capital (2) | 22 | % | 27 | % | 18 | % | 4 | % | n/m | n/m | ||||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 197,374 | $ | 121,002 | $ | 283,264 | $ | 62,959 | $ | 35,238 | $ | 199,404 | ||||||||||||
Total deposits | 514,549 | 239,352 | 291,927 | 39,345 | n/m | 29,879 | ||||||||||||||||||
Allocated capital (2) | 30,000 | 12,000 | 33,500 | 34,000 | 17,000 | n/m | ||||||||||||||||||
Period end | ||||||||||||||||||||||||
Total loans and leases | $ | 198,467 | $ | 122,395 | $ | 284,908 | $ | 62,705 | $ | 34,484 | $ | 188,356 | ||||||||||||
Total deposits | 515,580 | 238,710 | 282,325 | 39,133 | n/m | 25,419 | ||||||||||||||||||
(1) | Fully taxable-equivalent basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. |
More | This information is preliminary and based on company data available at the time of the presentation. |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||
Year-to-Date Results by Business Segment | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2015 | ||||||||||||||||||||||||
Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 22,826 | $ | 13,558 | $ | 12,567 | $ | 12,961 | $ | 2,844 | $ | (77 | ) | |||||||||||
Provision for credit losses | 1,870 | 36 | 452 | 69 | 154 | (230 | ) | |||||||||||||||||
Noninterest expense | 13,141 | 10,366 | 5,952 | 8,556 | 3,307 | 1,998 | ||||||||||||||||||
Net income (loss) | 4,940 | 1,995 | 3,895 | 2,944 | (390 | ) | (199 | ) | ||||||||||||||||
Return on average allocated capital (2) | 23 | % | 22 | % | 15 | % | 11 | % | n/m | n/m | ||||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 202,565 | $ | 129,881 | $ | 300,141 | $ | 61,798 | $ | 30,782 | $ | 153,754 | ||||||||||||
Total deposits | 541,969 | 242,507 | 290,327 | 38,813 | n/m | 21,508 | ||||||||||||||||||
Allocated capital (2) | 29,000 | 12,000 | 35,000 | 35,000 | 24,000 | n/m | ||||||||||||||||||
Period end | ||||||||||||||||||||||||
Total loans and leases | $ | 208,981 | $ | 134,630 | $ | 315,224 | $ | 70,159 | $ | 27,982 | $ | 130,713 | ||||||||||||
Total deposits | 551,539 | 246,172 | 297,644 | 36,019 | n/m | 21,771 | ||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
Consumer Banking | GWIM | Global Banking | Global Markets | Legacy Assets & Servicing | All Other | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 23,049 | $ | 13,802 | $ | 13,293 | $ | 13,801 | $ | 2,042 | $ | 174 | ||||||||||||
Provision for credit losses | 2,027 | — | 353 | 83 | 240 | (647 | ) | |||||||||||||||||
Noninterest expense | 13,446 | 10,213 | 6,200 | 9,341 | 19,287 | 2,434 | ||||||||||||||||||
Net income (loss) | 4,781 | 2,264 | 4,249 | 2,780 | (12,737 | ) | 446 | |||||||||||||||||
Return on average allocated capital (2) | 21 | % | 25 | % | 17 | % | 11 | % | n/m | n/m | ||||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 196,408 | $ | 118,505 | $ | 286,309 | $ | 63,409 | $ | 36,672 | $ | 209,057 | ||||||||||||
Total deposits | 511,214 | 240,716 | 286,633 | 40,769 | n/m | 33,759 | ||||||||||||||||||
Allocated capital (2) | 30,000 | 12,000 | 33,500 | 34,000 | 17,000 | n/m | ||||||||||||||||||
Period end | ||||||||||||||||||||||||
Total loans and leases | $ | 198,467 | $ | 122,395 | $ | 284,908 | $ | 62,705 | $ | 34,484 | $ | 188,356 | ||||||||||||
Total deposits | 515,580 | 238,710 | 282,325 | 39,133 | n/m | 25,419 | ||||||||||||||||||
(1) | Fully taxable-equivalent basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. |
More | This information is preliminary and based on company data available at the time of the presentation. |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||
Supplemental Financial Data | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Fully taxable-equivalent (FTE) basis data (1) | Nine Months Ended September 30 | Third Quarter 2015 | Second Quarter 2015 | Third Quarter 2014 | ||||||||||||||||
2015 | 2014 | |||||||||||||||||||
Net interest income | $ | 30,128 | $ | 30,956 | $ | 9,742 | $ | 10,716 | $ | 10,444 | ||||||||||
Total revenue, net of interest expense | 64,679 | 66,161 | 20,913 | 22,345 | 21,434 | |||||||||||||||
Net interest yield | 2.21 | % | 2.27 | % | 2.10 | % | 2.37 | % | 2.29 | % | ||||||||||
Efficiency ratio | 66.98 | 92.08 | 66.03 | 61.84 | 93.97 | |||||||||||||||
Other Data | September 30 2015 | June 30 2015 | September 30 2014 | |||||||||||||||||
Number of financial centers - U.S. | 4,741 | 4,789 | 4,947 | |||||||||||||||||
Number of branded ATMs - U.S. | 16,062 | 15,992 | 15,671 | |||||||||||||||||
Ending full-time equivalent employees | 215,193 | 216,679 | 229,538 | |||||||||||||||||
(1) | FTE basis is a non-GAAP financial measure. FTE basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. See Reconciliations to GAAP Financial Measures on pages 22-24. |
More | This information is preliminary and based on company data available at the time of the presentation. |
Bank of America Corporation and Subsidiaries | ||||
Reconciliations to GAAP Financial Measures | ||||
(Dollars in millions) |
Nine Months Ended September 30 | Third Quarter 2015 | Second Quarter 2015 | Third Quarter 2014 | ||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis | |||||||||||||||||||||
Net interest income | $ | 29,450 | $ | 30,317 | $ | 9,511 | $ | 10,488 | $ | 10,219 | |||||||||||
Fully taxable-equivalent adjustment | 678 | 639 | 231 | 228 | 225 | ||||||||||||||||
Net interest income on a fully taxable-equivalent basis | $ | 30,128 | $ | 30,956 | $ | 9,742 | $ | 10,716 | $ | 10,444 | |||||||||||
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 | $ | 64,001 | $ | 65,522 | $ | 20,682 | $ | 22,117 | $ | 21,209 | |||||||||||
Fully taxable-equivalent adjustment | 678 | 639 | 231 | 228 | 225 | ||||||||||||||||
Total revenue, net of interest expense on a fully taxable-equivalent basis | $ | 64,679 | $ | 66,161 | $ | 20,913 | $ | 22,345 | $ | 21,434 | |||||||||||
Reconciliation of income tax expense to income tax expense on a fully taxable-equivalent basis | |||||||||||||||||||||
Income tax expense | $ | 5,145 | $ | 762 | $ | 1,561 | $ | 2,199 | $ | 663 | |||||||||||
Fully taxable-equivalent adjustment | 678 | 639 | 231 | 228 | 225 | ||||||||||||||||
Income tax expense on a fully taxable-equivalent basis | $ | 5,823 | $ | 1,401 | $ | 1,792 | $ | 2,427 | $ | 888 | |||||||||||
Reconciliation of average common shareholders' equity to average tangible common shareholders' equity | |||||||||||||||||||||
Common shareholders' equity | $ | 228,609 | $ | 222,598 | $ | 231,620 | $ | 228,780 | $ | 222,374 | |||||||||||
Goodwill | (69,775 | ) | (69,818 | ) | (69,774 | ) | (69,775 | ) | (69,792 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (4,307 | ) | (5,232 | ) | (4,099 | ) | (4,307 | ) | (4,992 | ) | |||||||||||
Related deferred tax liabilities | 1,885 | 2,114 | 1,811 | 1,885 | 2,077 | ||||||||||||||||
Tangible common shareholders' equity | $ | 156,412 | $ | 149,662 | $ | 159,558 | $ | 156,583 | $ | 149,667 | |||||||||||
Reconciliation of average shareholders' equity to average tangible shareholders' equity | |||||||||||||||||||||
Shareholders' equity | $ | 250,260 | $ | 236,806 | $ | 253,893 | $ | 251,054 | $ | 238,040 | |||||||||||
Goodwill | (69,775 | ) | (69,818 | ) | (69,774 | ) | (69,775 | ) | (69,792 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (4,307 | ) | (5,232 | ) | (4,099 | ) | (4,307 | ) | (4,992 | ) | |||||||||||
Related deferred tax liabilities | 1,885 | 2,114 | 1,811 | 1,885 | 2,077 | ||||||||||||||||
Tangible shareholders' equity | $ | 178,063 | $ | 163,870 | $ | 181,831 | $ | 178,857 | $ | 165,333 | |||||||||||
More | This information is preliminary and based on company data available at the time of the presentation. |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||
Reconciliations to GAAP Financial Measures (continued) | |||||||||||||||||||||
(Dollars in millions, except per share data; shares in thousands) | |||||||||||||||||||||
Nine Months Ended September 30 | Third Quarter 2015 | Second Quarter 2015 | Third Quarter 2014 | ||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Reconciliation of period-end common shareholders' equity to period-end tangible common shareholders' equity | |||||||||||||||||||||
Common shareholders' equity | $ | 233,632 | $ | 220,768 | $ | 233,632 | $ | 229,386 | $ | 220,768 | |||||||||||
Goodwill | (69,761 | ) | (69,784 | ) | (69,761 | ) | (69,775 | ) | (69,784 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (3,973 | ) | (4,849 | ) | (3,973 | ) | (4,188 | ) | (4,849 | ) | |||||||||||
Related deferred tax liabilities | 1,762 | 2,019 | 1,762 | 1,813 | 2,019 | ||||||||||||||||
Tangible common shareholders' equity | $ | 161,660 | $ | 148,154 | $ | 161,660 | $ | 157,236 | $ | 148,154 | |||||||||||
Reconciliation of period-end shareholders' equity to period-end tangible shareholders' equity | |||||||||||||||||||||
Shareholders' equity | $ | 255,905 | $ | 238,681 | $ | 255,905 | $ | 251,659 | $ | 238,681 | |||||||||||
Goodwill | (69,761 | ) | (69,784 | ) | (69,761 | ) | (69,775 | ) | (69,784 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (3,973 | ) | (4,849 | ) | (3,973 | ) | (4,188 | ) | (4,849 | ) | |||||||||||
Related deferred tax liabilities | 1,762 | 2,019 | 1,762 | 1,813 | 2,019 | ||||||||||||||||
Tangible shareholders' equity | $ | 183,933 | $ | 166,067 | $ | 183,933 | $ | 179,509 | $ | 166,067 | |||||||||||
Reconciliation of period-end assets to period-end tangible assets | |||||||||||||||||||||
Assets | $ | 2,153,006 | $ | 2,123,613 | $ | 2,153,006 | $ | 2,149,034 | $ | 2,123,613 | |||||||||||
Goodwill | (69,761 | ) | (69,784 | ) | (69,761 | ) | (69,775 | ) | (69,784 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (3,973 | ) | (4,849 | ) | (3,973 | ) | (4,188 | ) | (4,849 | ) | |||||||||||
Related deferred tax liabilities | 1,762 | 2,019 | 1,762 | 1,813 | 2,019 | ||||||||||||||||
Tangible assets | $ | 2,081,034 | $ | 2,050,999 | $ | 2,081,034 | $ | 2,076,884 | $ | 2,050,999 | |||||||||||
Book value per share of common stock | |||||||||||||||||||||
Common shareholders' equity | $ | 233,632 | $ | 220,768 | $ | 233,632 | $ | 229,386 | $ | 220,768 | |||||||||||
Ending common shares issued and outstanding | 10,427,305 | 10,515,894 | 10,427,305 | 10,471,837 | 10,515,894 | ||||||||||||||||
Book value per share of common stock | $ | 22.41 | $ | 20.99 | $ | 22.41 | $ | 21.91 | $ | 20.99 | |||||||||||
Tangible book value per share of common stock | |||||||||||||||||||||
Tangible common shareholders' equity | $ | 161,660 | $ | 148,154 | $ | 161,660 | $ | 157,236 | $ | 148,154 | |||||||||||
Ending common shares issued and outstanding | 10,427,305 | 10,515,894 | 10,427,305 | 10,471,837 | 10,515,894 | ||||||||||||||||
Tangible book value per share of common stock | $ | 15.50 | $ | 14.09 | $ | 15.50 | $ | 15.02 | $ | 14.09 | |||||||||||
More | This information is preliminary and based on company data available at the time of the presentation. |
Bank of America Corporation and Subsidiaries | |||||||||||||||||||||
Reconciliations to GAAP Financial Measures (continued) | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||
Nine Months Ended September 30 | Third Quarter 2015 | Second Quarter 2015 | Third Quarter 2014 | ||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Reconciliation of return on average allocated capital (1) | |||||||||||||||||||||
Consumer Banking | |||||||||||||||||||||
Reported net income | $ | 4,940 | $ | 4,781 | $ | 1,759 | $ | 1,706 | $ | 1,669 | |||||||||||
Adjustment related to intangibles (2) | 3 | 3 | 1 | 1 | 1 | ||||||||||||||||
Adjusted net income | $ | 4,943 | $ | 4,784 | $ | 1,760 | $ | 1,707 | $ | 1,670 | |||||||||||
Average allocated equity (3) | $ | 59,330 | $ | 60,401 | $ | 59,312 | $ | 59,330 | $ | 60,385 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (30,330 | ) | (30,401 | ) | (30,312 | ) | (30,330 | ) | (30,385 | ) | |||||||||||
Average allocated capital | $ | 29,000 | $ | 30,000 | $ | 29,000 | $ | 29,000 | $ | 30,000 | |||||||||||
Global Wealth & Investment Management | |||||||||||||||||||||
Reported net income | $ | 1,995 | $ | 2,264 | $ | 656 | $ | 689 | $ | 812 | |||||||||||
Adjustment related to intangibles (2) | 9 | 10 | 3 | 3 | 3 | ||||||||||||||||
Adjusted net income | $ | 2,004 | $ | 2,274 | $ | 659 | $ | 692 | $ | 815 | |||||||||||
Average allocated equity (3) | $ | 22,135 | $ | 22,223 | $ | 22,132 | $ | 22,106 | $ | 22,204 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (10,135 | ) | (10,223 | ) | (10,132 | ) | (10,106 | ) | (10,204 | ) | |||||||||||
Average allocated capital | $ | 12,000 | $ | 12,000 | $ | 12,000 | $ | 12,000 | $ | 12,000 | |||||||||||
Global Banking | |||||||||||||||||||||
Reported net income | $ | 3,895 | $ | 4,249 | $ | 1,277 | $ | 1,251 | $ | 1,521 | |||||||||||
Adjustment related to intangibles (2) | 1 | 1 | 1 | — | — | ||||||||||||||||
Adjusted net income | $ | 3,896 | $ | 4,250 | $ | 1,278 | $ | 1,251 | $ | 1,521 | |||||||||||
Average allocated equity (3) | $ | 58,934 | $ | 57,432 | $ | 58,947 | $ | 58,978 | $ | 57,421 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (23,934 | ) | (23,932 | ) | (23,947 | ) | (23,978 | ) | (23,921 | ) | |||||||||||
Average allocated capital | $ | 35,000 | $ | 33,500 | $ | 35,000 | $ | 35,000 | $ | 33,500 | |||||||||||
Global Markets | |||||||||||||||||||||
Reported net income | $ | 2,944 | $ | 2,780 | $ | 1,008 | $ | 992 | $ | 371 | |||||||||||
Adjustment related to intangibles (2) | 9 | 7 | 5 | 2 | 2 | ||||||||||||||||
Adjusted net income | $ | 2,953 | $ | 2,787 | $ | 1,013 | $ | 994 | $ | 373 | |||||||||||
Average allocated equity (3) | $ | 40,405 | $ | 39,394 | $ | 40,351 | $ | 40,432 | $ | 39,401 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (5,405 | ) | (5,394 | ) | (5,351 | ) | (5,432 | ) | (5,401 | ) | |||||||||||
Average allocated capital | $ | 35,000 | $ | 34,000 | $ | 35,000 | $ | 35,000 | $ | 34,000 | |||||||||||
(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. |
This information is preliminary and based on company data available at the time of the presentation. |