• | Originated $15 Billion in Residential Mortgage Loans and Home Equity Loans in Q4-14, Helping Approximately 41,000 Home Owners Purchase a Home or Refinance a Mortgage |
• | Issued 1.2 Million New Credit Cards in Q4-14, With 67 Percent Going to Existing Relationship Customers |
• | Delivered Record Asset Management Fees in Global Wealth and Investment Management of $2.1 Billion; Pretax Margin of 25 Percent in Q4-14 |
• | Global Banking Increased Loans by $3.1 Billion, or 1.2 Percent, From Q4-13 to $273 Billion |
• | Reduced Noninterest Expense to $14.2 Billion in Q4-14, Lowest Quarterly Expense Level Since Merrill Lynch Merger |
• | Excluding Litigation, Noninterest Expense Down $1.2 Billion From Q4-13 to $13.8 Billion(C) |
• | Legacy Assets and Servicing Expenses, Excluding Litigation, Down $0.7 Billion, or 38 Percent From Q4-13 to $1.1 Billion(D) |
• | Credit Quality Continued to Improve With Net Charge-offs Down $0.7 Billion, or 44 Percent, From Q4-13 to $0.9 Billion; Net Charge-off Ratio of 0.40 Percent Is Lowest in a Decade |
• | Estimated Common Equity Tier 1 Ratio Under Basel 3 (Standardized Approach, Fully Phased-in) 10.0 Percent in Q4-14; Advanced Approaches 9.6 Percent in Q4-14(E) |
• | Estimated Supplementary Leverage Ratios Above 2018 Required Minimums, With Bank Holding Company at 5.9 Percent and Primary Bank at 7.0 Percent(F) |
• | Record Global Excess Liquidity Sources of $439 Billion, up $63 Billion from Q4-13; Time-to-required Funding at 39 Months |
• | Tangible Book Value per Share Increased 5 Percent From Q4-13 to $14.43 per Share(G) |
• | Book Value per Share Increased 3 Percent From Q4-13 to $21.32 per Share |
Three Months Ended | Year Ended | ||||||||||||||
(Dollars in millions, except per share data) | December 31 2014 | December 31 2013 | December 31 2014 | December 31 2013 | |||||||||||
Net interest income, FTE basis1 | $ | 9,865 | $ | 10,999 | $ | 40,821 | $ | 43,124 | |||||||
Noninterest income | 9,090 | 10,702 | 44,295 | 46,677 | |||||||||||
Total revenue, net of interest expense, FTE basis | 18,955 | 21,701 | 85,116 | 89,801 | |||||||||||
Total revenue, net of interest expense, FTE basis, excluding DVA/FVA2 | 19,581 | 22,319 | 85,356 | 90,959 | |||||||||||
Provision for credit losses | 219 | 336 | 2,275 | 3,556 | |||||||||||
Noninterest expense3 | 14,196 | 17,307 | 75,117 | 69,214 | |||||||||||
Net income | $ | 3,050 | $ | 3,439 | $ | 4,833 | $ | 11,431 | |||||||
Diluted earnings per common share | $ | 0.25 | $ | 0.29 | $ | 0.36 | $ | 0.90 |
1 | Fully taxable-equivalent (FTE) basis 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 $9.6 billion and $10.8 billion for the three months ended December 31, 2014 and 2013, and $40.0 billion and $42.3 billion for the years ended December 31, 2014 and 2013. Total revenue, net of interest expense, on a GAAP basis was $18.7 billion and $21.5 billion for the three months ended December 31, 2014 and 2013, and $84.2 billion and $88.9 billion for the years ended December 31, 2014 and 2013. |
2 | Represents a non-GAAP financial measure. Net DVA/FVA losses were $626 million and $618 million for the three months ended December 31, 2014 and 2013, and $240 million and $1.2 billion for the years ended December 31, 2014 and 2013. FVA losses were $497 million for the three months ended December 31, 2014. |
3 | Includes litigation expense of $393 million and $2.3 billion for the three months ended December 31, 2014 and 2013, and $16.4 billion and $6.1 billion for the years ended December 31, 2014 and 2013. |
Three Months Ended | Year Ended | ||||||||||||||
(Dollars in millions) | December 31 2014 | December 31 2013 | December 31 2014 | December 31 2013 | |||||||||||
Total revenue, net of interest expense, FTE basis | $ | 7,541 | $ | 7,496 | $ | 29,862 | $ | 29,864 | |||||||
Provision for credit losses | 670 | 427 | 2,633 | 3,107 | |||||||||||
Noninterest expense | 4,015 | 4,001 | 15,911 | 16,260 | |||||||||||
Net income | $ | 1,758 | $ | 1,992 | $ | 7,096 | $ | 6,647 | |||||||
Return on average allocated capital1 | 24 | % | 26 | % | 24 | % | 22 | % | |||||||
Average loans | $ | 161,267 | $ | 163,157 | $ | 161,109 | $ | 164,574 | |||||||
Average deposits | 550,399 | 528,733 | 543,441 | 518,904 | |||||||||||
At period-end | |||||||||||||||
Brokerage assets | $ | 113,763 | $ | 96,048 |
1 | Return on average allocated capital is a non-GAAP financial measure. 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 $21.7 billion, or 4 percent, from the year-ago quarter to $550.4 billion. |
• | Client brokerage assets increased $17.7 billion, or 18 percent, from the year-ago quarter to $113.8 billion, driven primarily by new client accounts, strong account flows as well as market valuations. |
• | Credit card issuance remained strong. The company issued 1.2 million new credit cards in the fourth quarter of 2014, up 19 percent from the 1.0 million cards issued in the year-ago quarter. Approximately 67 percent of these cards went to existing relationship customers during the fourth quarter of 2014. |
• | The number of mobile banking customers increased 15 percent from the year-ago quarter to 16.5 million users, and 12 percent of deposit transactions by customers were done through mobile, compared to 9 percent in the year-ago quarter. Since the introduction of Apple Pay™ in October, nearly 800,000 customers have enrolled in the service, adding approximately 1.1 million cards. |
• | Preferred Rewards continues to expand, resulting in broader and deeper client relationships. Through the end of 2014, approximately 1.2 million clients have enrolled in the program. |
Three Months Ended | Year Ended | ||||||||||||||
(Dollars in millions) | December 31 2014 | December 31 2013 | December 31 2014 | December 31 2013 | |||||||||||
Total revenue, net of interest expense, FTE basis | $ | 1,174 | $ | 1,712 | $ | 4,848 | $ | 7,715 | |||||||
Provision for credit losses | (131 | ) | (474 | ) | 160 | (156 | ) | ||||||||
Noninterest expense1 | 1,945 | 3,752 | 23,226 | 15,815 | |||||||||||
Net loss | $ | (397 | ) | $ | (1,035 | ) | $ | (13,395 | ) | $ | (5,031 | ) | |||
Average loans and leases | 87,978 | 89,687 | 88,277 | 90,278 | |||||||||||
At period-end | |||||||||||||||
Loans and leases | $ | 87,972 | $ | 89,753 |
1 | Includes litigation expense of $262 million and $1.2 billion for the three months ended December 31, 2014 and 2013, and $15.2 billion and $3.8 billion for the years ended December 31, 2014 and 2013. |
• | The company originated $11.6 billion in first-lien residential mortgage loans and $3.4 billion in home equity lines during the fourth quarter of 2014, compared to $11.7 billion and $3.2 billion in the prior quarter. |
• | The number of 60+ days delinquent first mortgage loans serviced by Legacy Assets and Servicing (LAS) declined by 136,000 loans, or 42 percent, from the fourth quarter of 2013 to 189,000 loans. |
• | Noninterest expense in LAS, excluding litigation, declined to $1.1 billion in the fourth quarter of 2014 from $1.8 billion in the year-ago quarter(D). |
Three Months Ended | Year Ended | ||||||||||||||
(Dollars in millions) | December 31 2014 | December 31 2013 | December 31 2014 | December 31 2013 | |||||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,602 | $ | 4,479 | $ | 18,404 | $ | 17,790 | |||||||
Provision for credit losses | 14 | 26 | 14 | 56 | |||||||||||
Noninterest expense | 3,440 | 3,262 | 13,647 | 13,033 | |||||||||||
Net income | $ | 706 | $ | 778 | $ | 2,974 | $ | 2,977 | |||||||
Return on average allocated capital1 | 23 | % | 31 | % | 25 | % | 30 | % | |||||||
Average loans and leases | $ | 123,544 | $ | 115,546 | $ | 119,775 | $ | 111,023 | |||||||
Average deposits | 238,835 | 240,395 | 240,242 | 242,161 | |||||||||||
At period-end (dollars in billions) | |||||||||||||||
Assets under management | $ | 902.9 | $ | 821.4 | |||||||||||
Total client balances2 | 2,498.0 | 2,366.4 |
1 | Return on average allocated capital is a non-GAAP financial measure. 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, assets in custody, client brokerage assets, client deposits and loans (including margin receivables). |
• | Client balances increased 6 percent from the year-ago quarter to $2.5 trillion, driven by higher market levels and net inflows. |
• | Fourth-quarter 2014 long-term assets under management (AUM) flows of $9.4 billion were the 22nd consecutive quarter of positive flows. Full-year long-term AUM flows were a record $49.8 billion. |
• | The company reported record asset management fees of $2.1 billion, up 16 percent from the year-ago quarter. |
• | The number of wealth advisors increased by 714 advisors from the year-ago quarter to 17,231, and full-year attrition levels were at historical lows since the Merrill Lynch merger. |
• | Average loan balances increased 7 percent from the year-ago quarter to $123.5 billion from $115.5 billion. |
Three Months Ended | Year Ended | ||||||||||||||
(Dollars in millions) | December 31 2014 | December 31 2013 | December 31 2014 | December 31 2013 | |||||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,057 | $ | 4,303 | $ | 16,598 | $ | 16,479 | |||||||
Provision for credit losses | (29 | ) | 441 | 336 | 1,075 | ||||||||||
Noninterest expense | 1,849 | 1,943 | 7,681 | 7,551 | |||||||||||
Net income | $ | 1,433 | $ | 1,255 | $ | 5,435 | $ | 4,973 | |||||||
Return on average allocated capital1 | 18 | % | 22 | % | 18 | % | 22 | % | |||||||
Average loans and leases | $ | 270,760 | $ | 268,864 | $ | 270,164 | $ | 257,249 | |||||||
Average deposits | 264,027 | 259,193 | 261,312 | 236,765 |
1 | Return on average allocated capital is a non-GAAP financial measure. 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 was ranked No. 2 in global net investment banking fees in the fourth quarter of 2014 with firmwide investment banking fees of $1.5 billion, excluding self-led deals(I). |
• | Bank of America Merrill Lynch ranked among the top three financial institutions globally in high-yield corporate debt, leveraged loans, asset-backed securities, investment grade corporate debt, syndicated loans, announced mergers and acquisitions, equity capital markets and debt capital markets during the fourth quarter of 2014(I). |
• | Average loan and lease balances increased $3.7 billion, or 1.4 percent, from the prior quarter to $270.8 billion with growth mainly driven by the commercial and industrial portfolios. |
Three Months Ended | Year Ended | ||||||||||||||
(Dollars in millions) | December 31 2014 | December 31 2013 | December 31 2014 | December 31 2013 | |||||||||||
Total revenue, net of interest expense, FTE basis | $ | 2,370 | $ | 3,198 | $ | 16,119 | $ | 15,390 | |||||||
Total revenue, net of interest expense, FTE basis, excluding net DVA/FVA1 | 2,996 | 3,816 | 16,359 | 16,548 | |||||||||||
Provision for credit losses | 27 | 104 | 110 | 140 | |||||||||||
Noninterest expense | 2,499 | 3,274 | 11,771 | 11,996 | |||||||||||
Net income (loss) | $ | (72 | ) | $ | (47 | ) | $ | 2,719 | $ | 1,153 | |||||
Return on average allocated capital2 | n/m | n/m | 8 | % | 4 | % | |||||||||
Total average assets | $ | 611,714 | $ | 603,012 | $ | 607,538 | $ | 632,681 |
1 | Represents a non-GAAP financial measure. Net DVA/FVA losses were $626 million and $618 million for the three months ended December 31, 2014 and 2013, and $240 million and $1.2 billion for the years ended December 31, 2014 and 2013. FVA losses were $497 million for the three months ended December 31, 2014. |
2 | Return on average allocated capital is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 22-24 of this press release. |
• | Equities sales and trading revenue, excluding net DVA/FVA, was up modestly from the fourth quarter of 2013 to $911 million despite a challenging market environment(L). |
• | Bank of America Merrill Lynch was named No. 1 Global Research firm in 2014 by Institutional Investor magazine for the fourth year in a row. |
Three Months Ended | Year Ended | ||||||||||||||
(Dollars in millions) | December 31 2014 | December 31 2013 | December 31 2014 | December 31 2013 | |||||||||||
Total revenue, net of interest expense, FTE basis2 | $ | (789 | ) | $ | 513 | $ | (715 | ) | $ | 2,563 | |||||
Provision for credit losses | (332 | ) | (188 | ) | (978 | ) | (666 | ) | |||||||
Noninterest expense | 448 | 1,075 | 2,881 | 4,559 | |||||||||||
Net income (loss) | $ | (378 | ) | $ | 496 | $ | 4 | $ | 712 | ||||||
Total average loans | 183,090 | 226,027 | 202,512 | 235,460 |
1 | All Other consists of ALM activities, equity investments, the international consumer card business, liquidating businesses 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. |
2 | Revenue includes equity investment income of $(77) million and $393 million for the three months ended December 31, 2014 and 2013 and $601 million and $2.6 billion for the years ended December 31, 2014 and 2013, and gains on sales of debt securities of $162 million and $363 million for the three months ended December 31, 2014 and 2013, and $1.3 billion and $1.2 billion for the years ended December 31, 2014 and 2013. |
Three Months Ended | Year Ended | ||||||||||||||
(Dollars in millions) | December 31 2014 | December 31 2013 | December 31 2014 | December 31 2013 | |||||||||||
Provision for credit losses | $ | 219 | $ | 336 | $ | 2,275 | $ | 3,556 | |||||||
Net charge-offs1 | 879 | 1,582 | 4,383 | 7,897 | |||||||||||
Net charge-off ratio1, 2 | 0.40 | % | 0.68 | % | 0.49 | % | 0.87 | % | |||||||
Net charge-off ratio, excluding the PCI loan portfolio2 | 0.41 | 0.70 | 0.50 | 0.90 | |||||||||||
Net charge-off ratio, including PCI write-offs2 | 0.40 | 1.00 | 0.58 | 1.13 | |||||||||||
December 31 2014 | December 31 2013 | ||||||||||||||
Nonperforming loans, leases and foreclosed properties | $ | 12,629 | $ | 17,772 | |||||||||||
Nonperforming loans, leases and foreclosed properties ratio3 | 1.45 | % | 1.93 | % | |||||||||||
Allowance for loan and lease losses | $ | 14,419 | $ | 17,428 | |||||||||||
Allowance for loan and lease losses ratio4 | 1.65 | % | 1.90 | % |
1 | Excludes write-offs of purchased credit-impaired (PCI) loans of $13 million and $741 million for the three months ended December 31, 2014 and 2013, and $810 million and $2.3 billion for the years ended December 31, 2014 and 2013. |
2 | Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases during the period; quarterly results are annualized. |
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 ratios are calculated as allowance for loan and lease losses divided by loans and leases outstanding at the end of the period. |
(Dollars in billions) | At December 31 2014 | At September 30 2014 | |||||||||
Basel 3 Transition (under standardized approach) | |||||||||||
Common equity tier 1 capital - Basel 3 | $ | 155.4 | $ | 152.4 | |||||||
Risk-weighted assets | 1,261.5 | 1,271.7 | |||||||||
Common equity tier 1 capital ratio - Basel 3 | 12.3 | % | 12.0 | % | |||||||
Basel 3 Fully Phased-in (under standardized approach)3 | |||||||||||
Common equity tier 1 capital - Basel 3 | $ | 141.3 | $ | 135.1 | |||||||
Risk-weighted assets | 1,415.4 | 1,418.2 | |||||||||
Common equity tier 1 capital ratio - Basel 3 | 10.0 | % | 9.5 | % | |||||||
(Dollars in millions, except per share information) | At December 31 2014 | At September 30 2014 | At December 31 2013 | ||||||||
Tangible common equity ratio4 | 7.47 | % | 7.22 | % | 7.20 | % | |||||
Total shareholders’ equity | $ | 243,471 | $ | 238,681 | $ | 232,685 | |||||
Common equity ratio | 10.65 | 10.40 | 10.43 | ||||||||
Tangible book value per share4 | $ | 14.43 | $ | 14.09 | $ | 13.79 | |||||
Book value per share | 21.32 | 20.99 | 20.71 |
1 | Regulatory capital ratios are preliminary. |
2 | 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 capital and tier 1 capital. |
3 | Basel 3 common equity tier 1 capital and risk-weighted assets on a fully phased-in basis are non-GAAP financial measures. For reconciliations to GAAP financial measures, refer to page 18 of this press release. The company's fully phased-in Basel 3 estimates are based on its current understanding of the Standardized and Advanced approaches under the Basel 3 rules, assuming all relevant regulatory model approvals, except for the potential reduction to risk-weighted assets resulting from removal of the Comprehensive Risk Measure surcharge. These estimates are expected to evolve over time as the company's businesses change and as a result of further rulemaking or clarification by U.S. regulatory agencies. The Basel 3 rules require approval by banking regulators of certain models used as part of risk-weighted asset calculations. If these models are not approved, the company's risk-weighted assets and resulting capital ratios would likely be adversely impacted, which in some cases could be significant. The company continues to evaluate the potential impact of proposed rules. |
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. |
(A) | In the fourth quarter of 2014, Bank of America adopted a funding valuation adjustment on uncollateralized derivatives in the company'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 in the company's Global Markets business. |
(B) | Fully taxable-equivalent (FTE) basis 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 $9.6 billion and $10.8 billion for the three months ended December 31, 2014 and 2013, and $40.0 billion and $42.3 billion for the years ended December 31, 2014 and 2013. 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 and $0.2 billion for the three months ended December 31, 2014 and 2013, and $(1.1) billion and $0.8 billion for the years ended December 31, 2014 and 2013. Total revenue, net of interest expense, on a GAAP basis was $18.7 billion and $21.5 billion for the three months ended December 31, 2014 and 2013, and $84.2 billion and $88.9 billion for the years ended December 31, 2014 and 2013. |
(C) | Noninterest expense, excluding litigation, is a non-GAAP financial measure. Noninterest expense including litigation was $14.2 billion and $17.3 billion for the three months ended December 31, 2014 and 2013, and $75.1 billion and $69.2 billion for the years ended December 31, 2014 and 2013. Noninterest expense excluding litigation was $13.8 billion and $15.0 billion for the three months ended December 31, 2014 and 2013, and $58.7 billion and $63.1 billion for the years ended December 31, 2014 and 2013. Litigation expense was $393 million and $2.3 billion for the three months ended December 31, 2014 and 2013, and $16.4 billion and $6.1 billion for the years ended December 31, 2014 and 2013. |
(D) | Legacy Assets and Servicing (LAS) noninterest expense, excluding litigation, is a non-GAAP financial measure. LAS noninterest expense was $1.4 billion and $3.0 billion for the three months ended December 31, 2014 and 2013, and $20.6 billion and $12.5 billion for the years ended December 31, 2014 and 2013. LAS litigation expense was $256 million and $1.2 billion for the three months ended December 31, 2014 and 2013, and $15.2 billion and $3.8 billion for the years ended December 31, 2014 and 2013. |
(E) | Basel 3 common equity tier 1 capital and risk-weighted assets on a fully phased-in basis are non-GAAP financial measures. For 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. The company's estimates under the Basel 3 Advanced approaches may be refined over time as a result of further rulemaking or clarification by U.S. banking regulators or as our understanding and interpretation of the rules evolve. If our internal analytical models are not approved or are required to be revised, it would likely lead to an increase in our risk-weighted assets and negatively impact our capital ratios, which in some cases could be significant. The company continues to evaluate the potential impact of proposed rules. |
(F) | The supplementary leverage ratio is based on estimates from our current understanding of recently finalized rules issued by banking regulators on September 3, 2014. The estimated ratio is measured using quarter-end tier 1 capital calculated under Basel 3 on a fully phased-in basis. The denominator is calculated as the daily average of the sum of on-balance sheet assets as well as the simple average of certain off-balance sheet exposures at the end of each month in the quarter, including, among other items, derivatives and securities financing transactions. |
(G) | Tangible book value per share of common stock is a non-GAAP financial measure. Other companies may define or calculate this measure differently. Book value per share was $21.32 at December 31, 2014, compared to $20.99 at September 30, 2014 and $20.71 at December 31, 2013. For more information, refer to pages 22-24 of this press release. |
(H) | Revenue, net of interest expense, on an FTE basis, excluding net DVA and equity investment gains; and noninterest income excluding the impact of the adoption of FVA in the current period and net DVA and equity investment gains, are non-GAAP financial measures. Total revenue, net of interest expense, on an FTE basis was $19.0 billion and $21.7 billion for the three months ended December 31, 2014 and 2013, and $85.1 billion and $89.8 billion for the years ended December 31, 2014 and 2013. Noninterest income was $9.1 billion and $10.7 billion for the three months ended December 31, 2014 and 2013, and $44.3 billion and $46.7 billion for the years ended December 31, 2014 and 2013. FVA losses were $497 million for the three months ended December 31, 2014 resulting from a one-time charge related to the adoption of funding valuation adjustments related to uncollateralized derivatives in the company's Global Markets business. Net DVA/FVA losses were $626 million and $240 million for the three months and year ended December 31, 2014 and net DVA losses were $618 million and $1.2 billion for the three months and year ended December 31, 2013. Equity investment income was $(20) million and $474 million for the three months ended December 31, 2014 and 2013, and $1.1 billion and $2.9 billion for the years ended December 31, 2014 and 2013. |
(I) | Rankings per Dealogic as of January 6, 2015. |
(J) | Global Markets revenue excluding net DVA/FVA and recoveries on certain legacy FICC positions in the fourth quarter of 2013 are non-GAAP financial measures. Net DVA/FVA losses were $626 million and $240 million or the three months and year ended December 31, 2014 and net DVA losses were $618 million and $1.2 billion for the three months and year ended December 31, 2013. Recoveries on certain legacy FICC positions were approximately $220 million in the fourth quarter of 2013. |
(K) | FICC sales and trading revenue, excluding net DVA/FVA is a non-GAAP financial measure. Net DVA/FVA losses included in FICC revenue were $577 million and $536 million for the three months ended December 31, 2014 and 2013, and $307 million and $1.1 billion for the years ended December 31, 2014 and 2013. |
(L) | Equity sales and trading revenue, excluding net DVA/FVA is a non-GAAP financial measure. Equities net DVA/FVA losses were $49 million and $82 million for the three months ended December 31, 2014 and 2013, and gains of $67 million and losses of $44 million for the years ended December 31, 2014 and 2013. |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||
Selected Financial Data | ||||||||||||||||||||
(Dollars in millions, except per share data; shares in thousands) | ||||||||||||||||||||
Summary Income Statement | Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Fourth Quarter 2013 | ||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Net interest income | $ | 39,952 | $ | 42,265 | $ | 9,635 | $ | 10,219 | $ | 10,786 | ||||||||||
Noninterest income | 44,295 | 46,677 | 9,090 | 10,990 | 10,702 | |||||||||||||||
Total revenue, net of interest expense | 84,247 | 88,942 | 18,725 | 21,209 | 21,488 | |||||||||||||||
Provision for credit losses | 2,275 | 3,556 | 219 | 636 | 336 | |||||||||||||||
Noninterest expense | 75,117 | 69,214 | 14,196 | 20,142 | 17,307 | |||||||||||||||
Income before income taxes | 6,855 | 16,172 | 4,310 | 431 | 3,845 | |||||||||||||||
Income tax expense | 2,022 | 4,741 | 1,260 | 663 | 406 | |||||||||||||||
Net income (loss) | $ | 4,833 | $ | 11,431 | $ | 3,050 | $ | (232 | ) | $ | 3,439 | |||||||||
Preferred stock dividends | 1,044 | 1,349 | 312 | 238 | 256 | |||||||||||||||
Net income (loss) applicable to common shareholders | $ | 3,789 | $ | 10,082 | $ | 2,738 | $ | (470 | ) | $ | 3,183 | |||||||||
Common shares issued | 25,866 | 45,288 | 648 | 69 | 624 | |||||||||||||||
Average common shares issued and outstanding | 10,527,818 | 10,731,165 | 10,516,334 | 10,515,790 | 10,633,030 | |||||||||||||||
Average diluted common shares issued and outstanding (1) | 10,584,535 | 11,491,418 | 11,273,773 | 10,515,790 | 11,404,438 | |||||||||||||||
Summary Average Balance Sheet | ||||||||||||||||||||
Total debt securities | $ | 351,702 | $ | 337,953 | $ | 371,014 | $ | 359,653 | $ | 325,119 | ||||||||||
Total loans and leases | 903,901 | 918,641 | 884,733 | 899,241 | 929,777 | |||||||||||||||
Total earning assets | 1,814,930 | 1,819,548 | 1,802,121 | 1,813,482 | 1,798,697 | |||||||||||||||
Total assets | 2,145,590 | 2,163,513 | 2,137,551 | 2,136,109 | 2,134,875 | |||||||||||||||
Total deposits | 1,124,207 | 1,089,735 | 1,122,514 | 1,127,488 | 1,112,674 | |||||||||||||||
Common shareholders’ equity | 223,066 | 218,468 | 224,473 | 222,368 | 220,088 | |||||||||||||||
Total shareholders’ equity | 238,476 | 233,947 | 243,448 | 238,034 | 233,415 | |||||||||||||||
Performance Ratios | ||||||||||||||||||||
Return on average assets | 0.23 | % | 0.53 | % | 0.57 | % | n/m | 0.64 | % | |||||||||||
Return on average tangible common shareholders’ equity (2) | 2.52 | 6.97 | 7.15 | n/m | 8.61 | |||||||||||||||
Per common share information | ||||||||||||||||||||
Earnings (loss) | $ | 0.36 | $ | 0.94 | $ | 0.26 | $ | (0.04 | ) | $ | 0.30 | |||||||||
Diluted earnings (loss) (1) | 0.36 | 0.90 | 0.25 | (0.04 | ) | 0.29 | ||||||||||||||
Dividends paid | 0.12 | 0.04 | 0.05 | 0.05 | 0.01 | |||||||||||||||
Book value | 21.32 | 20.71 | 21.32 | 20.99 | 20.71 | |||||||||||||||
Tangible book value (2) | 14.43 | 13.79 | 14.43 | 14.09 | 13.79 | |||||||||||||||
December 31 2014 | September 30 2014 | December 31 2013 | ||||||||||||||||||
Summary Period-End Balance Sheet | ||||||||||||||||||||
Total debt securities | $ | 380,461 | $ | 368,124 | $ | 323,945 | ||||||||||||||
Total loans and leases | 881,391 | 891,315 | 928,233 | |||||||||||||||||
Total earning assets | 1,768,431 | 1,783,051 | 1,763,149 | |||||||||||||||||
Total assets | 2,104,534 | 2,123,613 | 2,102,273 | |||||||||||||||||
Total deposits | 1,118,936 | 1,111,981 | 1,119,271 | |||||||||||||||||
Common shareholders’ equity | 224,162 | 220,768 | 219,333 | |||||||||||||||||
Total shareholders’ equity | 243,471 | 238,681 | 232,685 | |||||||||||||||||
Common shares issued and outstanding | 10,516,542 | 10,515,894 | 10,591,808 | |||||||||||||||||
Credit Quality | Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Fourth Quarter 2013 | ||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Total net charge-offs | $ | 4,383 | $ | 7,897 | $ | 879 | $ | 1,043 | $ | 1,582 | ||||||||||
Net charge-offs as a percentage of average loans and leases outstanding (3) | 0.49 | % | 0.87 | % | 0.40 | % | 0.46 | % | 0.68 | % | ||||||||||
Provision for credit losses | $ | 2,275 | $ | 3,556 | $ | 219 | $ | 636 | $ | 336 | ||||||||||
December 31 2014 | September 30 2014 | December 31 2013 | ||||||||||||||||||
Total nonperforming loans, leases and foreclosed properties (4) | $ | 12,629 | $ | 14,232 | $ | 17,772 | ||||||||||||||
Nonperforming loans, leases and foreclosed properties as a percentage of total loans, leases and foreclosed properties (3) | 1.45 | % | 1.61 | % | 1.93 | % | ||||||||||||||
Allowance for loan and lease losses | $ | 14,419 | $ | 15,106 | $ | 17,428 | ||||||||||||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding (3) | 1.65 | % | 1.71 | % | 1.90 | % | ||||||||||||||
For footnotes see page 18. |
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 Transition | Basel 1 | |||||||||||||||||||
Capital Management | December 31 2014 | September 30 2014 | December 31 2013 | |||||||||||||||||
Risk-based capital metrics (5, 6): | ||||||||||||||||||||
Common equity tier 1 capital | $ | 155,363 | $ | 152,444 | n/a | |||||||||||||||
Tier 1 common capital | n/a | n/a | $ | 141,522 | ||||||||||||||||
Common equity tier 1 capital ratio | 12.3 | % | 12.0 | % | n/a | |||||||||||||||
Tier 1 common capital ratio (7) | n/a | n/a | 10.9 | % | ||||||||||||||||
Tier 1 leverage ratio | 8.2 | 7.9 | 7.7 | |||||||||||||||||
Tangible equity ratio (8) | 8.42 | 8.10 | 7.86 | |||||||||||||||||
Tangible common equity ratio (8) | 7.47 | 7.22 | 7.20 | |||||||||||||||||
Regulatory Capital Reconciliations (5, 6) | December 31 2014 | September 30 2014 | ||||||||||||||||||
Regulatory capital – Basel 3 transition to fully phased-in | ||||||||||||||||||||
Common equity tier 1 capital (transition) | $ | 155,363 | $ | 152,444 | ||||||||||||||||
Adjustments and deductions recognized in Tier 1 capital during transition | (8,111 | ) | (10,191 | ) | ||||||||||||||||
Other adjustments and deductions phased in during transition | (5,978 | ) | (7,147 | ) | ||||||||||||||||
Common equity tier 1 capital (fully phased-in) | $ | 141,274 | $ | 135,106 | ||||||||||||||||
December 31 2014 | September 30 2014 | |||||||||||||||||||
Risk-weighted assets – As reported to Basel 3 (fully phased-in) | ||||||||||||||||||||
As reported risk-weighted assets | $ | 1,261,522 | $ | 1,271,723 | ||||||||||||||||
Changes in risk-weighted assets from reported to fully phased-in | 153,889 | 146,516 | ||||||||||||||||||
Basel 3 Standardized approach risk-weighted assets (fully phased-in) | 1,415,411 | 1,418,239 | ||||||||||||||||||
Changes in risk-weighted assets for advanced models | 50,222 | (8,375 | ) | |||||||||||||||||
Basel 3 Advanced approaches risk-weighted assets (fully phased-in) | $ | 1,465,633 | $ | 1,409,864 | ||||||||||||||||
Regulatory capital ratios | ||||||||||||||||||||
Basel 3 Standardized approach common equity tier 1 (transition) | 12.3 | % | 12.0 | % | ||||||||||||||||
Basel 3 Standardized approach common equity tier 1 (fully phased-in) | 10.0 | 9.5 | ||||||||||||||||||
Basel 3 Advanced approaches common equity tier 1 (fully phased-in) | 9.6 | 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 the 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) | 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 capital and Tier 1 capital. We reported under Basel 1 (which included the Market Risk Final Rules) at December 31, 2013. Basel 3 common equity tier 1 capital and risk-weighted assets on a fully phased-in basis are non-GAAP financial measures. For reconciliations to GAAP financial measures, see above. The Corporation’s fully phased-in Basel 3 estimates and the supplementary leverage ratio are based on its current understanding of the Standardized and Advanced approaches under the Basel 3 rules. Under the Basel 3 Advanced approaches, risk-weighted assets are determined primarily for market risk and credit risk, similar to the Standardized approach, and also incorporate operational risk. Market risk capital measurements are consistent with the Standardized approach, except for securitization exposures, where the Supervisory Formula Approach is also permitted, and certain differences arising from the inclusion of the CVA capital charge in the credit risk capital measurement. Credit risk exposures are measured using internal ratings-based models to determine the applicable risk weight by estimating the probability of default, loss given default and, in certain instances, exposure at default. The internal analytical models primarily rely on internal historical default and loss experience. The calculations under Basel 3 require management to make estimates, assumptions and interpretations, including the probability of future events based on historical experience. Actual results could differ from those estimates and assumptions. These estimates assume approval by U.S. banking regulators of our internal analytical models, but do not include the benefit of the removal of the surcharge applicable to the comprehensive risk measure. Our estimates under the Basel 3 Advanced approaches may be refined over time as a result of further rulemaking or clarification by U.S. banking regulators or as our understanding and interpretation of the rules evolve. If our internal analytical models are not approved or are required to be revised, it would likely lead to an increase in our risk-weighted assets and negatively impact our capital ratios, which in some cases could be significant. |
(7) | Tier 1 common capital ratio equals Tier 1 capital excluding preferred stock, trust preferred securities, hybrid securities and minority interest divided by risk-weighted assets. |
(8) | 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. |
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) | ||||||||||||||||||||||||
Fourth Quarter 2014 | ||||||||||||||||||||||||
Consumer & Business Banking | Consumer Real Estate Services | GWIM | Global Banking | Global Markets | All Other | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 7,541 | $ | 1,174 | $ | 4,602 | $ | 4,057 | $ | 2,370 | $ | (789 | ) | |||||||||||
Provision for credit losses | 670 | (131 | ) | 14 | (29 | ) | 27 | (332 | ) | |||||||||||||||
Noninterest expense | 4,015 | 1,945 | 3,440 | 1,849 | 2,499 | 448 | ||||||||||||||||||
Net income (loss) | 1,758 | (397 | ) | 706 | 1,433 | (72 | ) | (378 | ) | |||||||||||||||
Return on average allocated capital (2) | 24 | % | n/m | 23 | % | 18 | % | n/m | n/m | |||||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 161,267 | $ | 87,978 | $ | 123,544 | $ | 270,760 | $ | 58,094 | $ | 183,090 | ||||||||||||
Total deposits | 550,399 | n/m | 238,835 | 264,027 | n/m | 21,481 | ||||||||||||||||||
Allocated capital (2) | 29,500 | 23,000 | 12,000 | 31,000 | 34,000 | n/m | ||||||||||||||||||
Period end | ||||||||||||||||||||||||
Total loans and leases | $ | 163,416 | $ | 87,972 | $ | 125,431 | $ | 272,572 | $ | 59,388 | $ | 172,612 | ||||||||||||
Total deposits | 556,568 | n/m | 245,391 | 251,344 | n/m | 18,898 | ||||||||||||||||||
Third Quarter 2014 | ||||||||||||||||||||||||
Consumer & Business Banking | Consumer Real Estate Services | GWIM | Global Banking | Global Markets | All Other | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 7,512 | $ | 1,092 | $ | 4,666 | $ | 4,093 | $ | 4,142 | $ | (71 | ) | |||||||||||
Provision for credit losses | 617 | 286 | (15 | ) | (32 | ) | 45 | (265 | ) | |||||||||||||||
Noninterest expense | 3,972 | 7,271 | 3,403 | 1,905 | 3,335 | 256 | ||||||||||||||||||
Net income (loss) | 1,861 | (5,182 | ) | 813 | 1,413 | 373 | 490 | |||||||||||||||||
Return on average allocated capital (2) | 25 | % | n/m | 27 | % | 18 | % | 4 | % | n/m | ||||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 160,879 | $ | 87,971 | $ | 121,002 | $ | 267,047 | $ | 62,939 | $ | 199,403 | ||||||||||||
Total deposits | 545,116 | n/m | 239,352 | 265,721 | n/m | 29,268 | ||||||||||||||||||
Allocated capital (2) | 29,500 | 23,000 | 12,000 | 31,000 | $ | 34,000 | n/m | |||||||||||||||||
Period end | ||||||||||||||||||||||||
Total loans and leases | $ | 161,345 | $ | 87,962 | $ | 122,395 | $ | 268,612 | $ | 62,645 | $ | 188,356 | ||||||||||||
Total deposits | 546,791 | n/m | 238,710 | 255,177 | n/m | 25,109 | ||||||||||||||||||
Fourth Quarter 2013 | ||||||||||||||||||||||||
Consumer & Business Banking | Consumer Real Estate Services | GWIM | Global Banking | Global Markets | All Other | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 7,496 | $ | 1,712 | $ | 4,479 | $ | 4,303 | $ | 3,198 | $ | 513 | ||||||||||||
Provision for credit losses | 427 | (474 | ) | 26 | 441 | 104 | (188 | ) | ||||||||||||||||
Noninterest expense | 4,001 | 3,752 | 3,262 | 1,943 | 3,274 | 1,075 | ||||||||||||||||||
Net income (loss) | 1,992 | (1,035 | ) | 778 | 1,255 | (47 | ) | 496 | ||||||||||||||||
Return on average allocated capital (2) | 26 | % | n/m | 31 | % | 22 | % | n/m | n/m | |||||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 163,157 | $ | 89,687 | $ | 115,546 | $ | 268,864 | $ | 66,496 | $ | 226,027 | ||||||||||||
Total deposits | 528,733 | n/m | 240,395 | 259,193 | n/m | 34,306 | ||||||||||||||||||
Allocated capital (2) | 30,000 | 24,000 | 10,000 | 23,000 | 30,000 | n/m | ||||||||||||||||||
Period end | ||||||||||||||||||||||||
Total loans and leases | $ | 165,094 | $ | 89,753 | $ | 115,846 | $ | 269,469 | $ | 67,381 | $ | 220,690 | ||||||||||||
Total deposits | 531,608 | n/m | 244,901 | 265,171 | n/m | 27,912 | ||||||||||||||||||
(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. |
(2) | 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 22-24.) |
This information is preliminary and based on company data available at the time of the presentation. |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||
Annual Results by Business Segment | ||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||
Consumer & Business Banking | Consumer Real Estate Services | GWIM | Global Banking | Global Markets | All Other | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 29,862 | $ | 4,848 | $ | 18,404 | $ | 16,598 | $ | 16,119 | $ | (715 | ) | |||||||||||
Provision for credit losses | 2,633 | 160 | 14 | 336 | 110 | (978 | ) | |||||||||||||||||
Noninterest expense | 15,911 | 23,226 | 13,647 | 7,681 | 11,771 | 2,881 | ||||||||||||||||||
Net income (loss) | 7,096 | (13,395 | ) | 2,974 | 5,435 | 2,719 | 4 | |||||||||||||||||
Return on average allocated capital (2) | 24 | % | n/m | 25 | % | 18 | % | 8 | % | n/m | ||||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 161,109 | $ | 88,277 | $ | 119,775 | $ | 270,164 | $ | 62,064 | $ | 202,512 | ||||||||||||
Total deposits | 543,441 | n/m | 240,242 | 261,312 | n/m | 30,255 | ||||||||||||||||||
Allocated capital (2) | 29,500 | 23,000 | 12,000 | 31,000 | 34,000 | n/m | ||||||||||||||||||
Period end | ||||||||||||||||||||||||
Total loans and leases | $ | 163,416 | $ | 87,972 | $ | 125,431 | $ | 272,572 | $ | 59,388 | $ | 172,612 | ||||||||||||
Total deposits | 556,568 | n/m | 245,391 | 251,344 | n/m | 18,898 | ||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
Consumer & Business Banking | Consumer Real Estate Services | GWIM | Global Banking | Global Markets | All Other | |||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 29,864 | $ | 7,715 | $ | 17,790 | $ | 16,479 | $ | 15,390 | $ | 2,563 | ||||||||||||
Provision for credit losses | 3,107 | (156 | ) | 56 | 1,075 | 140 | (666 | ) | ||||||||||||||||
Noninterest expense | 16,260 | 15,815 | 13,033 | 7,551 | 11,996 | 4,559 | ||||||||||||||||||
Net income (loss) | 6,647 | (5,031 | ) | 2,977 | 4,973 | 1,153 | 712 | |||||||||||||||||
Return on average allocated capital (2) | 22 | % | n/m | 30 | % | 22 | % | 4 | % | n/m | ||||||||||||||
Balance Sheet | ||||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Total loans and leases | $ | 164,574 | $ | 90,278 | $ | 111,023 | $ | 257,249 | $ | 60,057 | $ | 235,460 | ||||||||||||
Total deposits | 518,904 | n/m | 242,161 | 236,765 | n/m | 34,919 | ||||||||||||||||||
Allocated capital (2) | 30,000 | 24,000 | 10,000 | 23,000 | 30,000 | n/m | ||||||||||||||||||
Period end | ||||||||||||||||||||||||
Total loans and leases | $ | 165,094 | $ | 89,753 | $ | 115,846 | $ | 269,469 | $ | 67,381 | $ | 220,690 | ||||||||||||
Total deposits | 531,608 | n/m | 244,901 | 265,171 | n/m | 27,912 | ||||||||||||||||||
(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. |
(2) | 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 22-24.) |
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) | Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Fourth Quarter 2013 | ||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Net interest income | $ | 40,821 | $ | 43,124 | $ | 9,865 | $ | 10,444 | $ | 10,999 | ||||||||||
Total revenue, net of interest expense | 85,116 | 89,801 | 18,955 | 21,434 | 21,701 | |||||||||||||||
Net interest yield (2) | 2.25 | % | 2.37 | % | 2.18 | % | 2.29 | % | 2.44 | % | ||||||||||
Efficiency ratio | 88.25 | 77.07 | 74.90 | 93.97 | 79.75 | |||||||||||||||
Other Data | December 31 2014 | September 30 2014 | December 31 2013 | |||||||||||||||||
Number of banking centers - U.S. | 4,855 | 4,947 | 5,151 | |||||||||||||||||
Number of branded ATMs - U.S. | 15,838 | 15,675 | 16,259 | |||||||||||||||||
Ending full-time equivalent employees | 223,715 | 229,538 | 242,117 | |||||||||||||||||
(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. |
(2) | Beginning in 2014, interest-bearing deposits placed with the Federal Reserve and certain non-U.S. central banks are included in earning assets. Prior period yields have been reclassified to conform to current period presentation. |
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) |
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Fourth Quarter 2013 | ||||||||||||||||||
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 | $ | 10,786 | |||||||||||
Fully taxable-equivalent adjustment | 869 | 859 | 230 | 225 | 213 | ||||||||||||||||
Net interest income on a fully taxable-equivalent basis | $ | 40,821 | $ | 43,124 | $ | 9,865 | $ | 10,444 | $ | 10,999 | |||||||||||
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 | $ | 21,488 | |||||||||||
Fully taxable-equivalent adjustment | 869 | 859 | 230 | 225 | 213 | ||||||||||||||||
Total revenue, net of interest expense on a fully taxable-equivalent basis | $ | 85,116 | $ | 89,801 | $ | 18,955 | $ | 21,434 | $ | 21,701 | |||||||||||
Reconciliation of income tax expense to income tax expense on a fully taxable-equivalent basis | |||||||||||||||||||||
Income tax expense | $ | 2,022 | $ | 4,741 | $ | 1,260 | $ | 663 | $ | 406 | |||||||||||
Fully taxable-equivalent adjustment | 869 | 859 | 230 | 225 | 213 | ||||||||||||||||
Income tax expense on a fully taxable-equivalent basis | $ | 2,891 | $ | 5,600 | $ | 1,490 | $ | 888 | $ | 619 | |||||||||||
Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity | |||||||||||||||||||||
Common shareholders’ equity | $ | 223,066 | $ | 218,468 | $ | 224,473 | $ | 222,368 | $ | 220,088 | |||||||||||
Goodwill | (69,809 | ) | (69,910 | ) | (69,782 | ) | (69,792 | ) | (69,864 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (5,109 | ) | (6,132 | ) | (4,747 | ) | (4,992 | ) | (5,725 | ) | |||||||||||
Related deferred tax liabilities | 2,090 | 2,328 | 2,019 | 2,077 | 2,231 | ||||||||||||||||
Tangible common shareholders’ equity | $ | 150,238 | $ | 144,754 | $ | 151,963 | $ | 149,661 | $ | 146,730 | |||||||||||
Reconciliation of average shareholders’ equity to average tangible shareholders’ equity | |||||||||||||||||||||
Shareholders’ equity | $ | 238,476 | $ | 233,947 | $ | 243,448 | $ | 238,034 | $ | 233,415 | |||||||||||
Goodwill | (69,809 | ) | (69,910 | ) | (69,782 | ) | (69,792 | ) | (69,864 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (5,109 | ) | (6,132 | ) | (4,747 | ) | (4,992 | ) | (5,725 | ) | |||||||||||
Related deferred tax liabilities | 2,090 | 2,328 | 2,019 | 2,077 | 2,231 | ||||||||||||||||
Tangible shareholders’ equity | $ | 165,648 | $ | 160,233 | $ | 170,938 | $ | 165,327 | $ | 160,057 | |||||||||||
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) | |||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Fourth Quarter 2013 | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Reconciliation of period-end common shareholders’ equity to period-end tangible common shareholders’ equity | |||||||||||||||||||||
Common shareholders’ equity | $ | 224,162 | $ | 219,333 | $ | 224,162 | $ | 220,768 | $ | 219,333 | |||||||||||
Goodwill | (69,777 | ) | (69,844 | ) | (69,777 | ) | (69,784 | ) | (69,844 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (4,612 | ) | (5,574 | ) | (4,612 | ) | (4,849 | ) | (5,574 | ) | |||||||||||
Related deferred tax liabilities | 1,960 | 2,166 | 1,960 | 2,019 | 2,166 | ||||||||||||||||
Tangible common shareholders’ equity | $ | 151,733 | $ | 146,081 | $ | 151,733 | $ | 148,154 | $ | 146,081 | |||||||||||
Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity | |||||||||||||||||||||
Shareholders’ equity | $ | 243,471 | $ | 232,685 | $ | 243,471 | $ | 238,681 | $ | 232,685 | |||||||||||
Goodwill | (69,777 | ) | (69,844 | ) | (69,777 | ) | (69,784 | ) | (69,844 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (4,612 | ) | (5,574 | ) | (4,612 | ) | (4,849 | ) | (5,574 | ) | |||||||||||
Related deferred tax liabilities | 1,960 | 2,166 | 1,960 | 2,019 | 2,166 | ||||||||||||||||
Tangible shareholders’ equity | $ | 171,042 | $ | 159,433 | $ | 171,042 | $ | 166,067 | $ | 159,433 | |||||||||||
Reconciliation of period-end assets to period-end tangible assets | |||||||||||||||||||||
Assets | $ | 2,104,534 | $ | 2,102,273 | $ | 2,104,534 | $ | 2,123,613 | $ | 2,102,273 | |||||||||||
Goodwill | (69,777 | ) | (69,844 | ) | (69,777 | ) | (69,784 | ) | (69,844 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (4,612 | ) | (5,574 | ) | (4,612 | ) | (4,849 | ) | (5,574 | ) | |||||||||||
Related deferred tax liabilities | 1,960 | 2,166 | 1,960 | 2,019 | 2,166 | ||||||||||||||||
Tangible assets | $ | 2,032,105 | $ | 2,029,021 | $ | 2,032,105 | $ | 2,050,999 | $ | 2,029,021 | |||||||||||
Book value per share of common stock | |||||||||||||||||||||
Common shareholders’ equity | $ | 224,162 | $ | 219,333 | $ | 224,162 | $ | 220,768 | $ | 219,333 | |||||||||||
Ending common shares issued and outstanding | 10,516,542 | 10,591,808 | 10,516,542 | 10,515,894 | 10,591,808 | ||||||||||||||||
Book value per share of common stock | $ | 21.32 | $ | 20.71 | $ | 21.32 | $ | 20.99 | $ | 20.71 | |||||||||||
Tangible book value per share of common stock | |||||||||||||||||||||
Tangible common shareholders’ equity | $ | 151,733 | $ | 146,081 | $ | 151,733 | $ | 148,154 | $ | 146,081 | |||||||||||
Ending common shares issued and outstanding | 10,516,542 | 10,591,808 | 10,516,542 | 10,515,894 | 10,591,808 | ||||||||||||||||
Tangible book value per share of common stock | $ | 14.43 | $ | 13.79 | $ | 14.43 | $ | 14.09 | $ | 13.79 | |||||||||||
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) | |||||||||||||||||||||
Year Ended December 31 | Fourth Quarter 2014 | Third Quarter 2014 | Fourth Quarter 2013 | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Reconciliation of return on average allocated capital (1) | |||||||||||||||||||||
Consumer & Business Banking | |||||||||||||||||||||
Reported net income | $ | 7,096 | $ | 6,647 | $ | 1,758 | $ | 1,861 | $ | 1,992 | |||||||||||
Adjustment related to intangibles (2) | 4 | 7 | 1 | 1 | 1 | ||||||||||||||||
Adjusted net income | $ | 7,100 | $ | 6,654 | $ | 1,759 | $ | 1,862 | $ | 1,993 | |||||||||||
Average allocated equity (3) | $ | 61,449 | $ | 62,037 | $ | 61,423 | $ | 61,441 | $ | 61,998 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (31,949 | ) | (32,037 | ) | (31,923 | ) | (31,941 | ) | (31,998 | ) | |||||||||||
Average allocated capital | $ | 29,500 | $ | 30,000 | $ | 29,500 | $ | 29,500 | $ | 30,000 | |||||||||||
Global Wealth & Investment Management | |||||||||||||||||||||
Reported net income | $ | 2,974 | $ | 2,977 | $ | 706 | $ | 813 | $ | 778 | |||||||||||
Adjustment related to intangibles (2) | 13 | 16 | 4 | 3 | 4 | ||||||||||||||||
Adjusted net income | $ | 2,987 | $ | 2,993 | $ | 710 | $ | 816 | $ | 782 | |||||||||||
Average allocated equity (3) | $ | 22,214 | $ | 20,292 | $ | 22,186 | $ | 22,204 | $ | 20,265 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (10,214 | ) | (10,292 | ) | (10,186 | ) | (10,204 | ) | (10,265 | ) | |||||||||||
Average allocated capital | $ | 12,000 | $ | 10,000 | $ | 12,000 | $ | 12,000 | $ | 10,000 | |||||||||||
Global Banking | |||||||||||||||||||||
Reported net income | $ | 5,435 | $ | 4,973 | $ | 1,433 | $ | 1,413 | $ | 1,255 | |||||||||||
Adjustment related to intangibles (2) | 2 | 3 | — | 1 | 1 | ||||||||||||||||
Adjusted net income | $ | 5,437 | $ | 4,976 | $ | 1,433 | $ | 1,414 | $ | 1,256 | |||||||||||
Average allocated equity (3) | $ | 53,404 | $ | 45,412 | $ | 53,400 | $ | 53,402 | $ | 45,410 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (22,404 | ) | (22,412 | ) | (22,400 | ) | (22,402 | ) | (22,410 | ) | |||||||||||
Average allocated capital | $ | 31,000 | $ | 23,000 | $ | 31,000 | $ | 31,000 | $ | 23,000 | |||||||||||
Global Markets | |||||||||||||||||||||
Reported net income (loss) | $ | 2,719 | $ | 1,153 | $ | (72 | ) | $ | 373 | $ | (47 | ) | |||||||||
Adjustment related to intangibles (2) | 9 | 9 | 3 | 2 | 3 | ||||||||||||||||
Adjusted net income (loss) | $ | 2,728 | $ | 1,162 | $ | (69 | ) | $ | 375 | $ | (44 | ) | |||||||||
Average allocated equity (3) | $ | 39,374 | $ | 35,370 | $ | 39,369 | $ | 39,374 | $ | 35,381 | |||||||||||
Adjustment related to goodwill and a percentage of intangibles | (5,374 | ) | (5,370 | ) | (5,369 | ) | (5,374 | ) | (5,381 | ) | |||||||||||
Average allocated capital | $ | 34,000 | $ | 30,000 | $ | 34,000 | $ | 34,000 | $ | 30,000 | |||||||||||
(1) | There are no adjustments to reported net income (loss) or average allocated equity for Consumer Real Estate Services. |
(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. |