Form: 10-K

Annual report pursuant to Section 13 and 15(d)

February 26, 2010

Documents

Bank of America Corporation and Subsidiaries

Ratio of Earnings to Fixed Charges

Ratio of Earnings to Fixed Charges and Preferred Dividends

    Exhibit 12
      Year Ended December 31  
(Dollars in millions)    2009     2008     2007     2006     2005  

Excluding Interest on Deposits

           

Income before income taxes

    $ 4,360      $ 4,428      $ 20,924      $ 31,973      $ 24,480   

Equity in undistributed earnings of unconsolidated subsidiaries

      (1,833 )      (144 )      (95 )      (315 )      (151 ) 

Fixed charges:

           

Interest expense

      23,000        25,074        34,778        29,514        18,397   

1/3 of net rent expense (1)

      1,110        791        669        609        585   

Total fixed charges

      24,110        25,865        35,447        30,123        18,982   

Preferred dividend requirements

      5,921        1,461        254        33        27   

Fixed charges and preferred dividends

      30,031        27,326        35,701        30,156        19,009   

Earnings

      26,637      $ 30,149      $ 56,276      $ 61,781      $ 43,311   

Ratio of earnings to fixed charges

      1.10        1.17        1.59        2.05        2.28   

Ratio of earnings to fixed charges and preferred dividends (2)

      —          1.10        1.58        2.05        2.28   

 

     Year Ended December 31  
(Dollars in millions)    2009     2008     2007     2006     2005  

Including Interest on Deposits

           

Income before income taxes

    $ 4,360      $ 4,428      $ 20,924      $ 31,973      $ 24,480   

Equity in undistributed earnings of unconsolidated subsidiaries

      (1,833 )      (144 )      (95 )      (315 )      (151 ) 

Fixed charges:

           

Interest expense

      30,807        40,324        52,871        43,994        27,889   

1/3 of net rent expense (1)

      1,110        791        669        609        585   

Total fixed charges

      31,917        41,115        53,540        44,603        28,474   

Preferred dividend requirements

      5,921        1,461        254        33        27   

Fixed charges and preferred dividends

      37,838        42,576        53,794        44,636        28,501   

Earnings

      34,444      $ 45,399      $ 74,369      $ 76,261      $ 52,803   

Ratio of earnings to fixed charges

      1.08        1.10        1.39        1.71        1.85   

Ratio of earnings to fixed charges and preferred dividends (2)

      —          1.07        1.38        1.71        1.85   

 

(1)

Represents an appropriate interest factor.

(2)

The earnings for 2009 were inadequate to cover fixed charges and preferred stock dividends. The earnings deficiency is a result of the accelerated accretion of $4.0 billion recorded as a result of the repurchase of TARP Preferred Stock. The coverage deficiency for fixed charges and preferred dividends was $3.4 billion.