EX-99.3 4 d229984dex993.htm SUPPLEMENTAL PACKAGE Supplemental Package

Exhibit 99.3

LOGO

Supplemental Information

Third Quarter 2011

This information is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this information are subject to the forward-looking language contained in Bank of America’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC’s website (www.sec.gov) or at Bank of America’s website (www.bankofamerica.com). Bank of America’s future financial performance is subject to risks and uncertainties as described in its SEC filings.


Bank of America Corporation and Subsidiaries

Table of Contents    Page

 

 

Consolidated Financial Highlights

     2   

Supplemental Financial Data

     3   

Consolidated Statement of Income

     4   

Consolidated Balance Sheet

     5,6   

Capital Management

     7   

Core Net Interest Income

     8   

Quarterly Average Balances and Interest Rates

     9,10   

Year-to-Date Average Balances and Interest Rates

     11,12   

Debt Securities and Available-for-Sale Marketable Equity Securities

     13   

Quarterly Results by Business Segment

     14   

Year-to-Date Results by Business Segment

     15   

Deposits

  

Total Segment Results

     16   

Key Indicators

     17   

Card Services

  

Total Segment Results

     18   

Key Indicators

     19   

Consumer Real Estate Services

  

Total Segment Results

     20   

Quarterly and Year-to-Date Results

     21   

Key Indicators

     22   

Global Commercial Banking

  

Total Segment Results

     23   

Key Indicators

     24   

Global Banking & Markets

  

Total Segment Results

     25   

Key Indicators

     26   

Credit Default Swaps with Monoline Financial Guarantors

     27   

Investment Banking Product Rankings

     28   

Global Wealth & Investment Management

  

Total Segment Results

     29   

Key Indicators

     30   

All Other

  

Total Segment Results

     31   

Equity Investments

     32   

Outstanding Loans and Leases

     33   

Quarterly Average Loans and Leases by Business Segment

     34   

Commercial Credit Exposure by Industry

     35   

Net Credit Default Protection by Maturity Profile and Credit Exposure Debt Rating

     36   

Selected Emerging Markets

     37   

Selected European Countries

     38   

Nonperforming Loans, Leases and Foreclosed Properties

     39   

Nonperforming Loans, Leases and Foreclosed Properties Activity

     40   

Quarterly Net Charge-offs and Net Charge-off Ratios

     41   

Year-to-Date Net Charge-offs and Net Charge-off Ratios

     42   

Allocation of the Allowance for Credit Losses by Product Type

     43   

Exhibit A: Non-GAAP Reconciliations

     44,45,46   

Appendix: Selected Slides from the Third Quarter 2011 Earnings Release Presentation

     47   


Bank of America Corporation and Subsidiaries

Consolidated Financial Highlights

 

(Dollars in millions, except per share information; shares in thousands)

 

     Nine Months Ended
September 30
             

Third

Quarter

   

Second

Quarter

   

First

Quarter

   

Fourth

Quarter

   

Third

Quarter

 
     2011     2010               2011     2011     2011     2010     2010  

Income statement

                      

Net interest income

   $ 33,915      $ 39,084              $ 10,490      $ 11,246      $ 12,179      $ 12,439      $ 12,435   

Noninterest income

     34,651        48,738                17,963        1,990        14,698        9,959        14,265   

Total revenue, net of interest expense

     68,566        87,822                28,453        13,236        26,877        22,398        26,700   

Provision for credit losses

     10,476        23,306                3,407        3,255        3,814        5,129        5,396   

Goodwill impairment

     2,603        10,400                —          2,603        —          2,000        10,400   

Merger and restructuring charges

     537        1,450                176        159        202        370        421   

All other noninterest expense (1)

     57,612        50,394                17,437        20,094        20,081        18,494        16,395   

Income tax expense (benefit)

     (2,117     3,266                1,201        (4,049     731        (2,351     1,387   

Net income (loss)

     (545     (994             6,232        (8,826     2,049        (1,244     (7,299

Preferred stock dividends

     954        1,036                343        301        310        321        348   

Net income (loss) applicable to common shareholders

     (1,499     (2,030             5,889        (9,127     1,739        (1,565     (7,647

Diluted earnings (loss) per common share (2)

     (0.15     (0.21             0.56        (0.90     0.17        (0.16     (0.77

Average diluted common shares issued and outstanding (2)

     10,095,859        9,706,951                10,464,395        10,094,928        10,181,351        10,036,575        9,976,351   

Dividends paid per common share

   $ 0.03      $ 0.03              $ 0.01      $ 0.01      $ 0.01      $ 0.01      $ 0.01   
 

Performance ratios

                      

Return on average assets

     n/m        n/m                1.07     %      n/m        0.36     %      n/m        n/m   

Return on average common shareholders’ equity

     n/m        n/m                11.40        n/m        3.29        n/m        n/m   

Return on average tangible common shareholders’ equity (3)

     n/m        n/m                18.30        n/m        5.28        n/m        n/m   

Return on average tangible shareholders’ equity (3)

     n/m        n/m                  17.03        n/m        5.54        n/m        n/m   

At period end

                      

Book value per share of common stock

   $ 20.80      $ 21.17              $ 20.80      $ 20.29      $ 21.15      $ 20.99      $ 21.17   

Tangible book value per share of common stock (3)

     13.22        12.91                13.22        12.65        13.21        12.98        12.91   

Market price per share of common stock:

                      

Closing price

   $ 6.12      $ 13.10              $ 6.12      $ 10.96      $ 13.33      $ 13.34      $ 13.10   

High closing price for the period

     15.25        19.48                11.09        13.72        15.25        13.56        15.67   

Low closing price for the period

     6.06        12.32                6.06        10.50        13.33        10.95        12.32   

Market capitalization

     62,023        131,442                62,023        111,060        135,057        134,536        131,442   
 

Number of banking centers - U.S.

     5,715        5,879                5,715        5,742        5,805        5,856        5,879   

Number of branded ATMs - U.S.

     17,752        17,929                17,752        17,817        17,886        17,926        17,929   

Full-time equivalent employees

     290,509        287,293                290,509        287,839        288,062        288,471        287,293   

 

 

(1)

Excludes merger and restructuring charges and goodwill impairment charges.

(2)

Due to a net loss applicable to common shareholders for the second quarter of 2011 and the fourth and third quarters of 2010, and for the nine months ended September 30, 2011 and 2010, no dilutive potential common shares were included in the calculations of diluted earnings per share and average diluted common shares because they were antidilutive.

(3)

Tangible equity ratios and tangible book value per share of common stock are non-GAAP measures. We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 44-46.)

n/m

= not meaningful

Certain prior period amounts 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.   2


Bank of America Corporation and Subsidiaries

Supplemental Financial Data

 

(Dollars in millions, except per share information)

Fully taxable-equivalent basis data (1)

 

    Nine Months Ended
September 30
                   Third
Quarter

2011
           Second
Quarter

2011
           First
Quarter

2011
           Fourth
Quarter

2010
           Third
Quarter

2010
       
    2011            2010                                          

Net interest income

  $ 34,629         $ 39,984               $ 10,739         $ 11,493         $ 12,397         $ 12,709         $ 12,717     

Total revenue, net of interest expense

    69,280           88,722                 28,702           13,483           27,095           22,668           26,982     

Net interest yield (2)

    2.50        %         2.81        %               2.32        %         2.50        %         2.67        %         2.69        %         2.72        %   

Efficiency ratio

    87.69           70.16                 61.37           n/m           74.86           92.04           100.87     
                                                                                                                               
Performance ratios, excluding goodwill impairment charges (3)                         
    Nine Months Ended
September 30
                                Second
Quarter

2011
                        Fourth
Quarter

2010
           Third
Quarter

2010
       
    2011            2010                                         

Per common share information

                                     

Earnings (loss)

  $ 0.11         $ 0.83                  $ (0.65           $ 0.04         $ 0.27     

Diluted earnings (loss)

    0.11           0.82                    (0.65             0.04           0.27     

Efficiency ratio (1)

    83.93        %         58.43        %                  n/m                83.22        %         62.33        %   

Return on average assets

    0.12           0.51                    n/m                0.13           0.52     

Return on average common shareholders’ equity

    0.70           5.31                    n/m                0.79           5.06     

Return on average tangible common shareholders’ equity (3)

    1.11           9.20                    n/m                1.27           8.67     

Return on average tangible shareholders’ equity (3)

    1.83           9.01                    n/m                1.96           8.54     

 

 

(1)

Fully taxable-equivalent basis is a non-GAAP measure. 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. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 44-46).

(2)

Calculation includes fees earned on overnight deposits placed with the Federal Reserve of $150 million and $305 million for the nine months ended September 30, 2011 and 2010; $38 million, $49 million and $63 million for the third, second and first quarters of 2011, and $63 million and $107 million for the fourth and third quarters of 2010, respectively. For more information see Quarterly and Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis on pages 9-10 and 11-12.

(3)

Total noninterest expense, excluding goodwill impairment charges, net income, excluding goodwill impairment charges and net income applicable to common shareholders, excluding goodwill impairment charges and tangible equity ratios are non-GAAP measures. We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 44-46.)

n/m

= not meaningful

 

Certain prior period amounts 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.   3


Bank of America Corporation and Subsidiaries

Consolidated Statement of Income

 

(Dollars in millions, except per share information; shares in thousands)

 

     Nine Months Ended
September 30
        

Third

Quarter

   

Second

Quarter

   

First

Quarter

   

Fourth

Quarter

   

Third

Quarter

 
     2011     2010          2011     2011     2011     2010     2010  

Interest income

                 

Loans and leases

   $ 34,454      $ 38,847           $ 11,205      $ 11,320      $ 11,929      $ 12,149      $ 12,485   

Debt securities

     7,286        8,638             1,729        2,675        2,882        3,029        2,605   

Federal funds sold and securities borrowed or purchased under agreements to resell

     1,698        1,346             584        597        517        486        441   

Trading account assets

     4,664        5,180             1,500        1,538        1,626        1,661        1,641   

Other interest income

     2,721        3,196             835        918        968        965        1,037   
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total interest income

     50,823        57,207             15,853        17,048        17,922        18,290        18,209   
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Interest expense

                   

Deposits

     2,386        3,103             704        843        839        894        950   

Short-term borrowings

     3,678        2,557             1,153        1,341        1,184        1,142        848   

Trading account liabilities

     1,801        2,010             547        627        627        561        635   

Long-term debt

     9,043        10,453             2,959        2,991        3,093        3,254        3,341   
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total interest expense

     16,908        18,123             5,363        5,802        5,743        5,851        5,774   
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

     33,915        39,084             10,490        11,246        12,179        12,439        12,435   
 

Noninterest income

                   

Card income

     5,706        5,981             1,911        1,967        1,828        2,127        1,982   

Service charges

     6,112        7,354             2,068        2,012        2,032        2,036        2,212   

Investment and brokerage services

     9,132        8,743             3,022        3,009        3,101        2,879        2,724   

Investment banking income

     4,204        3,930             942        1,684        1,578        1,590        1,371   

Equity investment income

     4,133        3,748             1,446        1,212        1,475        1,512        357   

Trading account profits

     6,417        9,059             1,604        2,091        2,722        995        2,596   

Mortgage banking income (loss)

     (10,949     4,153             1,617        (13,196     630        (1,419     1,755   

Insurance income

     1,203        1,468             190        400        613        598        75   

Gains on sales of debt securities

     2,182        1,654             737        899        546        872        883   

Other income (loss)

     6,729        3,498             4,511        1,957        261        (1,114     433   

Other-than-temporary impairment losses on available-for-sale debt securities:

                   

Total other-than-temporary impairment losses

     (271     (1,618          (114     (63     (111     (612     (156

Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income

     53        768             29        18        23        495        33   
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net impairment losses recognized in earnings on available-for-sale debt securities

     (218     (850          (85     (45     (88     (117     (123
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total noninterest income

     34,651        48,738             17,963        1,990        14,698        9,959        14,265   
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue, net of interest expense

     68,566        87,822             28,453        13,236        26,877        22,398        26,700   
 

Provision for credit losses

     10,476        23,306             3,407        3,255        3,814        5,129        5,396   
 

Noninterest expense

                   

Personnel

     28,204        26,349             8,865        9,171        10,168        8,800        8,402   

Occupancy

     3,617        3,504             1,183        1,245        1,189        1,212        1,150   

Equipment

     1,815        1,845             616        593        606        607        619   

Marketing

     1,680        1,479             556        560        564        484        497   

Professional fees

     2,349        1,812             937        766        646        883        651   

Amortization of intangibles

     1,144        1,311             377        382        385        420        426   

Data processing

     1,964        1,882             626        643        695        662        602   

Telecommunications

     1,167        1,050             405        391        371        366        361   

Other general operating

     15,672        11,162             3,872        6,343        5,457        5,060        3,687   

Goodwill impairment

     2,603        10,400             —          2,603        —          2,000        10,400   

Merger and restructuring charges

     537        1,450             176        159        202        370        421   
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total noninterest expense

     60,752        62,244             17,613        22,856        20,283        20,864        27,216   
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     (2,662     2,272             7,433        (12,875     2,780        (3,595     (5,912

Income tax expense (benefit)

     (2,117     3,266             1,201        (4,049     731        (2,351     1,387   
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (545   $ (994        $ 6,232      $ (8,826   $ 2,049      $ (1,244   $ (7,299
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Preferred stock dividends

     954        1,036             343        301        310        321        348   
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) applicable to common shareholders

   $ (1,499   $ (2,030        $ 5,889      $ (9,127   $ 1,739      $ (1,565   $ (7,647
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Per common share information

                   

Earnings (loss)

   $ (0.15   $ (0.21        $ 0.58      $ (0.90   $ 0.17      $ (0.16   $ (0.77

Diluted earnings (loss) (1)

     (0.15     (0.21          0.56        (0.90     0.17        (0.16     (0.77

Dividends paid

     0.03        0.03             0.01        0.01        0.01        0.01        0.01   
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average common shares issued and outstanding

     10,095,859        9,706,951             10,116,284        10,094,928        10,075,875        10,036,575        9,976,351   
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average diluted common shares issued and
outstanding (1)

     10,095,859        9,706,951             10,464,395        10,094,928        10,181,351        10,036,575        9,976,351   
  

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(1)

Due to a net loss applicable to common shareholders for the second quarter of 2011, the fourth and third quarters of 2010, and for the nine months ended September 30, 2011 and 2010, the impact of antidilutive equity instruments was excluded from diluted earnings per share and average diluted common shares.

Certain prior period amounts 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.   4


Bank of America Corporation and Subsidiaries

Consolidated Balance Sheet

 

(Dollars in millions)

 

     September 30
2011
    June 30
2011
    September 30
2010
 

Assets

      

Cash and cash equivalents

   $ 82,865      $ 119,527      $ 131,116   

Time deposits placed and other short-term investments

     18,330        20,291        18,946   

Federal funds sold and securities borrowed or purchased under agreements to resell

     249,998        235,181        271,818   

Trading account assets

     176,398        196,939        207,695   

Derivative assets

     79,044        66,598        84,684   

Debt securities:

      

Available-for-sale

     324,267        330,871        322,424   

Held-to-maturity, at cost

     26,458        181        438   

Total debt securities

     350,725        331,052        322,862   

Loans and leases

     932,531        941,257        933,910   

Allowance for loan and lease losses

     (35,082     (37,312     (43,581

Loans and leases, net of allowance

     897,449        903,945        890,329   

Premises and equipment, net

     13,552        13,793        14,320   

Mortgage servicing rights (includes $7,880, $12,372 and $12,251 measured at fair value)

     8,037        12,642        12,540   

Goodwill

     70,832        71,074        75,602   

Intangible assets

     8,764        9,176        10,402   

Loans held-for-sale

     23,085        20,092        33,276   

Customer and other receivables

     89,302        86,550        78,599   

Other assets

     151,247        174,459        187,471   

Total assets

   $ 2,219,628      $ 2,261,319      $ 2,339,660   

Assets of consolidated VIEs included in total assets above (substantially all pledged as collateral)

                        

Trading account assets

   $ 8,911      $ 10,746      $ 11,186   

Derivative assets

     1,611        2,293        2,838   

Available-for-sale debt securities

     256        251        7,684   

Loans and leases

     146,023        151,928        132,106   

Allowance for loan and lease losses

     (5,661     (6,367     (9,831

Loans and leases, net of allowance

     140,362        145,561        122,275   

Loans held-for-sale

     3,904        1,561        3,301   

All other assets

     5,414        7,115        7,910   

Total assets of consolidated VIEs

   $ 160,458      $ 167,527      $ 155,194   

Certain prior period amounts 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.   5


Bank of America Corporation and Subsidiaries

Consolidated Balance Sheet (continued)

 

(Dollars in millions)

 

     September 30
2011
    June 30
2011
     September 30
2010
 

Liabilities

       

Deposits in U.S. offices:

       

Noninterest-bearing

   $ 321,253      $ 301,558       $ 265,672   

Interest-bearing

     629,176        647,480         634,784   

Deposits in non-U.S. offices:

       

Noninterest-bearing

     6,581        6,555         6,297   

Interest-bearing

     84,343        82,815         70,569   

Total deposits

     1,041,353        1,038,408         977,322   

Federal funds purchased and securities loaned or sold under agreements to repurchase

     248,116        239,521         296,605   

Trading account liabilities

     68,026        74,989         90,010   

Derivative liabilities

     59,304        54,414         61,656   

Commercial paper and other short-term borrowings

     33,869        50,632         64,818   

Accrued expenses and other liabilities (includes $790, $897 and $1,294 of reserve for unfunded lending commitments)

     139,743        154,520         139,896   

Long-term debt

     398,965        426,659         478,858   

Total liabilities

     1,989,376        2,039,143         2,109,165   

Shareholders’ equity

       

Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 3,993,660, 3,943,660 and 3,960,660 shares

     19,480        16,562         18,104   

Common stock and additional paid-in capital, $0.01 par value; authorized - 12,800,000,000, 12,800,000,000 and 12,800,000,000 shares; issued and outstanding - 10,134,431,514, 10,133,189,501 and 10,033,705,046 shares

     153,801        151,567         149,563   

Retained earnings

     59,043        53,254         62,515   

Accumulated other comprehensive income (loss)

     (2,071     793         336   

Other

     (1     —           (23

Total shareholders’ equity

     230,252        222,176         230,495   

Total liabilities and shareholders’ equity

   $ 2,219,628      $ 2,261,319       $ 2,339,660   

Liabilities of consolidated VIEs included in total liabilities above

                         

Commercial paper and other short-term borrowings

   $ 6,211      $ 5,421       $ 13,222   

Long-term debt

     56,361        64,745         79,228   

All other liabilities

     1,124        1,127         1,954   

        Total liabilities of consolidated VIEs

   $ 63,696      $ 71,293       $ 94,404   

Certain prior period amounts 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.    6


Bank of America Corporation and Subsidiaries

Capital Management

 

(Dollars in millions)

 

     Third
Quarter
2011
           Second
Quarter
2011
           First
Quarter
2011
           Fourth
Quarter
2010
           Third
Quarter
2010
       

Risk-based capital (1):

                        

Tier 1 common

   $ 117,658         $ 114,684         $ 123,882         $ 125,139         $ 124,756     

Tier 1 capital

     156,074           153,134           162,295           163,626           164,763     

Total capital

     215,596           217,986           229,094           229,594           231,120     

Risk-weighted assets

     1,359,564           1,392,747           1,433,377           1,455,951           1,476,774     

Tier 1 common equity ratio (2)

     8.65        %         8.23        %         8.64        %         8.60        %         8.45        %   

Tier 1 capital ratio

     11.48           11.00           11.32           11.24           11.16     

Total capital ratio

     15.86           15.65           15.98           15.77           15.65     

Tier 1 leverage ratio

     7.11           6.86           7.25           7.21           7.21     

Tangible equity ratio (3)

     7.16           6.63           6.85           6.75           6.54     

Tangible common equity ratio (3)

     6.25                 5.87                 6.10                 5.99                 5.74           

 

(1)

Reflects preliminary data for current period risk-based capital.

(2)

Tier 1 common equity ratio equals Tier 1 capital excluding preferred stock, trust preferred securities, hybrid securities and minority interest divided by risk-weighted assets.

(3)

Tangible equity ratio equals period end tangible shareholders’ equity divided by period end tangible assets. Tangible common equity equals period end tangible common shareholders’ equity divided by period end tangible assets. Tangible shareholders’ equity and tangible assets are non-GAAP measures. We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on pages 44-46.)

LOGO

 

* Preliminary data on risk-based capital

Outstanding Common Stock

 

 

No common shares were repurchased in the third quarter of 2011.

There is no existing Board authorized share repurchase program.

 

 

Certain prior period amounts 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.   7


Bank of America Corporation and Subsidiaries

Core Net Interest Income

 

(Dollars in millions)

 

     Nine Months Ended
September 30
               Third
Quarter
           Second
Quarter
           First
Quarter
           Fourth
Quarter
           Third
Quarter
       
     2011            2010                2011            2011            2011            2010            2010        

Net interest income (1)

                                    

As reported (2)

   $ 34,629         $ 39,984             $ 10,739         $ 11,493         $ 12,397         $ 12,709         $ 12,717     

Impact of market-based net
interest income (3)

     (2,915        (3,280            (950        (914        (1,051        (1,150        (1,045  
  

 

 

      

 

 

          

 

 

      

 

 

      

 

 

      

 

 

      

 

 

   

Core net interest income

   $ 31,714         $ 36,704             $ 9,789         $ 10,579         $ 11,346         $ 11,559         $ 11,672     
  

 

 

      

 

 

          

 

 

      

 

 

      

 

 

      

 

 

      

 

 

   
 

Average earning assets (4)

                                      

As reported

   $ 1,851,736         $ 1,902,303             $ 1,841,135         $ 1,844,525         $ 1,869,863         $ 1,883,539         $ 1,863,819     

Impact of market-based earning assets (3)

     (459,532        (523,309            (447,560        (461,775        (469,503        (481,629        (503,890  
  

 

 

      

 

 

          

 

 

      

 

 

      

 

 

      

 

 

      

 

 

   

Core average earning assets

   $ 1,392,204         $ 1,378,994             $ 1,393,575         $ 1,382,750         $ 1,400,360         $ 1,401,910         $ 1,359,929     
  

 

 

      

 

 

          

 

 

      

 

 

      

 

 

      

 

 

      

 

 

   
 

Net interest yield
contribution (1, 4)

                                      

As reported (2)

     2.50        %         2.81        %           2.32        %         2.50        %         2.67        %         2.69        %         2.72        %   

Impact of market-based activities (3)

     0.54           0.74               0.47           0.56           0.59           0.60           0.70     
  

 

 

      

 

 

          

 

 

      

 

 

      

 

 

      

 

 

      

 

 

   

Core net interest yield on earning assets

     3.04        %         3.55        %           2.79        %         3.06        %         3.26        %         3.29        %         3.42        %   
  

 

 

      

 

 

          

 

 

      

 

 

      

 

 

      

 

 

      

 

 

   

 

 

(1)

Fully taxable-equivalent basis

(2)

Balance and calculation include fees earned on overnight deposits placed with the Federal Reserve of $150 million and $305 million for the nine months ended September 30, 2011 and 2010; $38 million, $49 million and $63 million for the third, second and first quarters of 2011, and $63 million and $107 million for the fourth and third quarters of 2010, respectively.

(3)

Represents the impact of market-based amounts included in Global Banking & Markets.

(4)

Calculated on an annualized basis.

Certain prior period amounts 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.   8


Bank of America Corporation and Subsidiaries

Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis

 

(Dollars in millions)

 

     Third Quarter 2011             Second Quarter 2011             Third Quarter 2010         
     Average
Balance
     Interest
Income/
Expense
     Yield/
Rate
            Average
Balance
     Interest
Income/
Expense
     Yield/
Rate
            Average
Balance
     Interest
Income/
Expense
     Yield/
Rate
        
  

 

 

       

 

 

       

 

 

    

Earning assets

                                   

Time deposits placed and other short-term investments (1)

   $ 26,743       $ 87         1.31         %       $ 27,298       $ 106         1.56         %       $ 23,233       $ 86         1.45         %   

Federal funds sold and securities borrowed or purchased under agreements to resell

     256,143         584         0.90            259,069         597         0.92            254,820         441         0.69      

Trading account assets

     180,438         1,543         3.40            186,760         1,576         3.38            210,529         1,692         3.20      

Debt securities (2)

     344,327         1,744         2.02            335,269         2,696         3.22            328,097         2,646         3.22      

Loans and leases (3):

                                   

Residential mortgage (4)

     268,494         2,856         4.25            265,420         2,763         4.16            237,292         2,797         4.71      

Home equity

     129,125         1,238         3.81            131,786         1,261         3.83            143,083         1,457         4.05      

Discontinued real estate

     15,923         134         3.36            15,997         129         3.22            13,632         122         3.56      

U.S. credit card

     103,671         2,650         10.14            106,164         2,718         10.27            115,251         3,113         10.72      

Non-U.S. credit card

     25,434         697         10.88            27,259         760         11.18            27,047         875         12.84      

Direct/Indirect consumer (5)

     90,280         915         4.02            89,403         945         4.24            95,692         1,130         4.68      

Other consumer (6)

     2,795         43         6.07            2,745         47         6.76            2,955         47         6.35      
  

 

 

          

 

 

          

 

 

       

Total consumer

     635,722         8,533         5.34            638,774         8,623         5.41            634,952         9,541         5.98      
  

 

 

          

 

 

          

 

 

       

U.S. commercial

     191,439         1,809         3.75            190,479         1,827         3.85            192,306         2,040         4.21      

Commercial real estate (7)

     42,931         360         3.33            45,762         382         3.35            55,660         452         3.22      

Commercial lease financing

     21,342         240         4.51            21,284         235         4.41            21,402         255         4.78      

Non-U.S. commercial

     50,598         349         2.73            42,214         339         3.22            30,540         282         3.67      
  

 

 

          

 

 

          

 

 

       

Total commercial

     306,310         2,758         3.58            299,739         2,783         3.72            299,908         3,029         4.01      
  

 

 

          

 

 

          

 

 

       

Total loans and leases

     942,032         11,291         4.77            938,513         11,406         4.87            934,860         12,570         5.35      
  

 

 

          

 

 

          

 

 

       

Other earning assets

     91,452         814         3.54            97,616         866         3.56            112,280         949         3.36      
  

 

 

          

 

 

          

 

 

       

Total earning assets (8)

     1,841,135         16,063         3.47            1,844,525         17,247         3.75            1,863,819         18,384         3.93      
  

 

 

       

 

 

       

 

 

    

Cash and cash equivalents (1)

     102,573         38               115,956         49               155,784         107         

Other assets, less allowance for loan and lease losses

     357,746                  378,629                  359,794            
  

 

 

       

 

 

       

 

 

    

Total assets

   $     2,301,454                $     2,339,110                $     2,379,397            
  

 

 

       

 

 

       

 

 

    

 

 

(1)

For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Corporation’s Consolidated Balance Sheet presentation of these deposits. Net interest income and net interest yield are calculated excluding these fees.

(2)

Yields on available-for-sale debt securities are calculated based on fair value rather than the cost basis. The use of fair value does not have a material impact on net interest yield.

(3)

Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis. Purchased credit-impaired loans were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan.

(4)

Includes non-U.S. residential mortgages of $91 million and $94 million in the third and second quarters of 2011, and $502 million in the third quarter of 2010.

(5)

Includes non-U.S. consumer loans of $8.6 billion and $8.7 billion in the third and second quarters of 2011, and $7.7 billion in the third quarter of 2010.

(6)

Includes consumer finance loans of $1.8 billion for both the third and second quarters of 2011, and $2.0 billion in the third quarter of 2010; other non-U.S. consumer loans of $932 million and $840 million in the third and second quarters of 2011, and $788 million in the third quarter of 2010; and consumer overdrafts of $107 million and $79 million in the third and second quarters of 2011, and $123 million in the third quarter of 2010.

(7)

Includes U.S. commercial real estate loans of $40.7 billion and $43.4 billion in the third and second quarters of 2011, and $53.1 billion in the third quarter of 2010, and non-U.S. commercial real estate loans of $2.2 billion and $2.3 billion in the third and second quarters of 2011, and $2.5 billion in the third quarter of 2010.

(8)

The impact of interest rate risk management derivatives on interest income is presented below. Interest income includes the impact of interest rate risk management contracts, which increased (decreased) interest income on:

 

     Third Quarter 2011     Second Quarter 2011     Third Quarter 2010  

Federal funds sold and securities borrowed or purchased under agreements to resell

   $ 43      $ 43      $ 75   

Trading account assets

     —          (88     (62

Debt securities

     (1,049     (681     (640

U.S. commercial

     (19     (11     (16

Non-U.S. commercial

     —          (2     —     
  

 

 

   

 

 

   

 

 

 

Net hedge expense on assets

   $     (1,025   $     (739   $     (643
  

 

 

   

 

 

   

 

 

 

Certain prior period amounts 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.   9


Bank of America Corporation and Subsidiaries

Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis (continued)

 

(Dollars in millions)

 

     Third Quarter 2011             Second Quarter 2011             Third Quarter 2010         
     Average
Balance
     Interest
Income/
Expense
     Yield/
Rate
            Average
Balance
     Interest
Income/
Expense
     Yield/
Rate
            Average
Balance
     Interest
Income/
Expense
     Yield/
Rate
        
  

 

 

       

 

 

       

 

 

    

Interest-bearing liabilities

                                   

U.S. interest-bearing deposits:

                                   

Savings

   $ 41,256       $ 21         0.19         %       $ 41,668       $ 31         0.30         %       $ 37,008       $ 36         0.39         %   

NOW and money market deposit accounts

     473,391         248         0.21            478,690         304         0.25            442,906         359         0.32      

Consumer CDs and IRAs

     108,359         244         0.89            113,728         281         0.99            132,687         377         1.13      

Negotiable CDs, public funds and other time deposits

     18,547         5         0.12            13,842         42         1.22            17,326         57         1.30      
  

 

 

          

 

 

          

 

 

       

Total U.S. interest-bearing deposits

     641,553         518         0.32            647,928         658         0.41            629,927         829         0.52      
  

 

 

          

 

 

          

 

 

       

Non-U.S. interest-bearing deposits:

                                   

Banks located in non-U.S. countries

     21,037         34         0.65            19,234         37         0.77            17,431         38         0.86      

Governments and official institutions

     2,043         2         0.32            2,131         2         0.38            2,055         2         0.36      

Time, savings and other

     64,271         150         0.93            64,889         146         0.90            54,373         81         0.59      
  

 

 

          

 

 

          

 

 

       

Total non-U.S. interest-bearing deposits

     87,351         186         0.85            86,254         185         0.86            73,859         121         0.65      
  

 

 

          

 

 

          

 

 

       

Total interest-bearing deposits

     728,904         704         0.38            734,182         843         0.46            703,786         950         0.54      
  

 

 

          

 

 

          

 

 

       

Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings

     303,234         1,152         1.51            338,692         1,342         1.59            391,148         848         0.86      

Trading account liabilities

     87,841         547         2.47            96,108         627         2.62            95,265         635         2.65      

Long-term debt

     420,273         2,959         2.82            435,144         2,991         2.75            485,588         3,341         2.74      
  

 

 

          

 

 

          

 

 

       

Total interest-bearing liabilities (1)

     1,540,252         5,362         1.39            1,604,126         5,803         1.45            1,675,787         5,774         1.37      
  

 

 

       

 

 

       

 

 

    

Noninterest-bearing sources:

                                   

Noninterest-bearing deposits

     322,416                  301,762                  270,060            

Other liabilities

     216,376                  198,155                  199,572            

Shareholders’ equity

     222,410                  235,067                  233,978            
  

 

 

       

 

 

       

 

 

    

Total liabilities and shareholders’ equity

   $     2,301,454                $     2,339,110                $     2,379,397            
  

 

 

       

 

 

       

 

 

    

Net interest spread

           2.08         %               2.30         %               2.56         %   

Impact of noninterest-bearing sources

           0.23                  0.19                  0.13      
  

 

 

       

 

 

       

 

 

    

Net interest income/yield on earning assets (2)

      $     10,701         2.31         %          $     11,444         2.49         %          $     12,610         2.69         %   
  

 

 

       

 

 

       

 

 

    

 

 

(1)

The impact of interest rate risk management derivatives on interest expense is presented below. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest expense on:

 

     Third Quarter 2011     Second Quarter 2011     Third Quarter 2010  

NOW and money market deposit accounts

   $ —        $ —        $ (1

Consumer CDs and IRAs

     44        46        49   

Negotiable CDs, public funds and other time deposits

     3        3        3   

Banks located in non-U.S. countries

     13        16        19   

Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings

     471        511        148   

Long-term debt

     (1,162     (1,201     (1,238
  

 

 

   

 

 

   

 

 

 

Net hedge income on liabilities

   $     (631   $     (625   $     (1,020
  

 

 

   

 

 

   

 

 

 

 

(2)

For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Corporation’s Consolidated Balance Sheet presentation of these deposits. Net interest income and net interest yield are calculated excluding these fees.

Certain prior period amounts 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.    10


Bank of America Corporation and Subsidiaries

Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis

 

(Dollars in millions)

 

     Nine Months Ended September 30         
     2011             2010         
     Average
Balance
     Interest
Income/
Expense
     Yield/
Rate
            Average
Balance
     Interest
Income/
Expense
     Yield/
Rate
        
  

 

 

       

 

 

    

Earning assets

                       

Time deposits placed and other short-term investments (1) 

   $ 28,428       $ 281         1.33         %       $ 27,175       $ 217         1.06         %   

Federal funds sold and securities borrowed or purchased under agreements to resell

     247,635         1,698         0.92            261,444         1,346         0.69      

Trading account assets

     195,931         4,788         3.26            212,985         5,340         3.35      

Debt securities (2)

     338,512         7,357         2.90            317,906         8,785         3.69      

Loans and leases (3):

                       

Residential mortgage (4) 

     265,345         8,500         4.27            242,922         8,879         4.87      

Home equity

     132,308         3,834         3.87            147,911         4,580         4.14      

Discontinued real estate

     14,951         373         3.32            14,009         409         3.89      

U.S. credit card

     106,569         8,205         10.29            119,744         9,604         10.72      

Non-U.S. credit card

     26,767         2,236         11.17            28,198         2,635         12.50      

Direct/Indirect consumer (5)

     89,927         2,853         4.24            98,368         3,665         4.98      

Other consumer (6)

     2,764         135         6.47            2,973         141         6.34      
  

 

 

          

 

 

       

Total consumer

     638,631         26,136         5.47            654,125         29,913         6.11      
  

 

 

          

 

 

       

U.S. commercial

     191,091         5,562         3.89            196,665         6,015         4.09      

Commercial real estate (7)

     45,664         1,179         3.45            62,755         1,568         3.34      

Commercial lease financing

     21,419         797         4.96            21,448         820         5.10      

Non-U.S. commercial

     43,043         987         3.07            29,309         802         3.66      
  

 

 

          

 

 

       

Total commercial

     301,217         8,525         3.78            310,177         9,205         3.97      
  

 

 

          

 

 

       

Total loans and leases

     939,848         34,661         4.93            964,302         39,118         5.42      
  

 

 

          

 

 

       

Other earning assets

     101,382         2,602         3.43            118,491         2,996         3.38      
  

 

 

          

 

 

       

Total earning assets (8)

     1,851,736         51,387         3.72            1,902,303         57,802         4.06      
  

 

 

       

 

 

    

Cash and cash equivalents (1) 

     118,792         150               187,310         305         

Other assets, less allowance for loan and lease losses

     355,704                  373,364            
  

 

 

       

 

 

    

Total assets

   $     2,326,232                $     2,462,977            
  

 

 

       

 

 

    

 

 

(1)

For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Corporation’s Consolidated Balance Sheet presentation of these deposits. Net interest income and net interest yield are calculated excluding these fees.

(2)

Yields on AFS debt securities are calculated based on fair value rather than the cost basis. The use of fair value does not have a material impact on net interest yield.

(3)

Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis. Purchased credit-impaired loans were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan.

(4)

Includes non-U.S. residential mortgages of $92 million and $515 million for the nine months ended September 30, 2011 and 2010.

(5)

Includes non-U.S. consumer loans of $8.5 billion and $7.9 billion for the nine months ended September 30, 2011 and 2010.

(6)

Includes consumer finance loans of $1.8 billion and $2.1 billion, other non-U.S. consumer loans of $851 million and $711 million, and consumer overdrafts of $88 million and $137 million for the nine months ended September 30, 2011 and 2010.

(7)

Includes U.S. commercial real estate loans of $43.3 billion and $60.1 billion, and non-U.S. commercial real estate loans of $2.4 billion and $2.7 billion for the nine months ended September 30, 2011 and 2010.

(8)

The impact of interest rate risk management derivatives on interest income is presented below. Interest income includes the impact of interest rate risk management contracts, which increased (decreased) interest income on:

 

     Nine Months Ended September 30  
     2011     2010  

Time deposits placed and other short-term investments

   $ —        $ (1

Federal funds sold and securities borrowed or purchased under agreements to resell

     141        228   

Trading account assets

     (158     (151

Debt securities

     (2,092     (1,386

U.S. commercial

     (41     (84

Non-U.S commercial

     (2     —     
  

 

 

   

 

 

 

Net hedge expense on assets

   $     (2,152   $ (1,394
  

 

 

   

 

 

 

Certain prior period amounts 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.   11


Bank of America Corporation and Subsidiaries

Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis (continued)

 

(Dollars in millions)

 

     Nine Months Ended September 30         
     2011             2010         
     Average
Balance
     Interest
Income/
Expense
     Yield/
Rate
            Average
Balance
     Interest
Income/
Expense
     Yield/
Rate
        
  

 

 

       

 

 

    

Interest-bearing liabilities

                       

U.S. interest-bearing deposits:

                       

Savings

   $ 40,618       $ 84         0.28         %       $ 36,482       $ 122         0.45         %   

NOW and money market deposit accounts

     476,002         868         0.24            433,858         1,072         0.33      

Consumer CDs and IRAs

     113,428         825         0.97            148,644         1,385         1.25      

Negotiable CDs, public funds and other time deposits

     15,478         86         0.74            18,138         179         1.32      
  

 

 

          

 

 

       

Total U.S. interest-bearing deposits

     645,526         1,863         0.39            637,122         2,758         0.58      
  

 

 

          

 

 

       

Non-U.S. interest-bearing deposits:

                       

Banks located in non-U.S. countries

     20,600         109         0.71            18,532         106         0.76      

Governments and official institutions

     2,159         6         0.35            3,952         8         0.27      

Time, savings and other

     63,212         408         0.86            53,816         231         0.57      
  

 

 

          

 

 

       

Total non-U.S. interest-bearing deposits

     85,971         523         0.81            76,300         345         0.60      
  

 

 

          

 

 

       

Total interest-bearing deposits

     731,497         2,386         0.44            713,422         3,103         0.58      
  

 

 

          

 

 

       

Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings

     337,583         3,678         1.46            450,748         2,557         0.76      

Trading account liabilities

     89,302         1,801         2.70            95,159         2,010         2.82      

Long-term debt

     431,902         9,043         2.80            498,794         10,453         2.80      
  

 

 

          

 

 

       

Total interest-bearing liabilities (1)

     1,590,284         16,908         1.42            1,758,123         18,123         1.38      
  

 

 

       

 

 

    

Noninterest-bearing sources:

                       

Noninterest-bearing deposits

     305,408                  268,710            

Other liabilities

     201,155                  203,679            

Shareholders’ equity

     229,385                  232,465            
  

 

 

       

 

 

    

Total liabilities and shareholders’ equity

   $     2,326,232                $     2,462,977            
  

 

 

       

 

 

    

Net interest spread

           2.30         %               2.68         %   

Impact of noninterest-bearing sources

           0.19                  0.11      
  

 

 

       

 

 

    

Net interest income/yield on earning assets (2)

      $     34,479         2.49         %          $     39,679         2.79         %   
  

 

 

       

 

 

    

 

 

(1)

The impact of interest rate risk management derivatives on interest expense is presented below. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest expense on:

 

     Nine Months Ended September 30  
     2011     2010  

NOW and money market deposit accounts

   $ (1   $ (1

Consumer CDs and IRAs

     137        139   

Negotiable CDs, public funds and other time deposits

     10        10   

Banks located in non-U.S. countries

     47        53   

Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings

     1,427        326   

Long-term debt

     (3,497     (3,346
  

 

 

   

 

 

 

Net hedge income on liabilities

   $     (1,877   $     (2,819
  

 

 

   

 

 

 

 

(2)

For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Corporation’s Consolidated Balance Sheet presentation of these deposits. Net interest income and net interest yield are calculated excluding these fees.

Certain prior period amounts 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.    12


Bank of America Corporation and Subsidiaries

Debt Securities and Available-for-Sale Marketable Equity Securities

 

(Dollars in millions)

 

     September 30, 2011  
     Amortized
Cost
     Gross
Unrealized
Gains
     Gross
Unrealized
Losses
    Fair
Value
 

Available-for-sale debt securities

          

U.S. Treasury and agency securities

   $ 59,905       $ 874       $ (748   $ 60,031   

Mortgage-backed securities:

          

Agency

     155,008         5,106         (35     160,079   

Agency collateralized mortgage obligations

     52,197         1,156         (115     53,238   

Non-agency residential

     17,707         394         (507     17,594   

Non-agency commercial

     5,968         634         (3     6,599   

Non-U.S. securities

     4,914         61         (12     4,963   

Corporate bonds

     3,982         149         (15     4,116   

Other taxable securities (1)

     12,444         51         (27     12,468   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total taxable securities

   $ 312,125       $ 8,425       $ (1,462   $ 319,088   

Tax-exempt securities

     5,299         16         (136     5,179   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total available-for-sale debt securities

   $ 317,424       $ 8,441       $ (1,598   $ 324,267   
  

 

 

    

 

 

    

 

 

   

 

 

 

Held-to-maturity debt securities

     26,458         88         (38     26,508   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total debt securities

   $ 343,882       $ 8,529       $ (1,636   $ 350,775   
  

 

 

    

 

 

    

 

 

   

 

 

 

Available-for-sale marketable equity securities (2)

   $ 3,880       $ 2,715       $ (25   $ 6,570   
  

 

 

    

 

 

    

 

 

   

 

 

 
     June 30, 2011  
     Amortized
Cost
     Gross
Unrealized
Gains
     Gross
Unrealized
Losses
    Fair
Value
 

Available-for-sale debt securities

          

U.S. Treasury and agency securities

   $ 49,874       $ 684       $ (1,289   $ 49,269   

Mortgage-backed securities:

          

Agency

     180,151         3,128         (1,663     181,616   

Agency collateralized mortgage obligations

     48,212         930         (31     49,111   

Non-agency residential

     19,564         568         (557     19,575   

Non-agency commercial

     6,018         702         (2     6,718   

Non-U.S. securities

     4,314         62         (16     4,360   

Corporate bonds

     4,388         154         (4     4,538   

Other taxable securities (1)

     12,010         79         (66     12,023   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total taxable securities

   $ 324,531       $ 6,307       $ (3,628   $ 327,210   

Tax-exempt securities

     3,808         18         (165     3,661   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total available-for-sale debt securities

   $ 328,339       $ 6,325       $ (3,793   $ 330,871   
  

 

 

    

 

 

    

 

 

   

 

 

 

Held-to-maturity debt securities

     181         —           —          181   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total debt securities

   $