EX-12 2 bac-9302012ex12.htm EXHIBIT BAC-9.30.2012 Ex.12


Bank of America Corporation and Subsidiaries
 
 
 
 
 
 
 
 
Exhibit 12
 
Ratio of Earnings to Fixed Charges
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges and Preferred Dividends
 
 
 
Year Ended December 31
(Dollars in millions)
Nine Months Ended September 30, 2012
 
2011
 
2010
 
2009
 
2008
 
2007
Excluding Interest on Deposits
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
4,976

 
$
(230
)
 
$
(1,323
)
 
$
4,360

 
$
4,428

 
$
20,924

Equity in undistributed earnings (loss) of unconsolidated subsidiaries
83

 
596

 
1,210

 
(1,833
)
 
(144
)
 
(95
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
11,545

 
18,618

 
19,977

 
23,000

 
25,074

 
34,778

1/3 of net rent expense (1)
820

 
1,072

 
1,099

 
1,110

 
791

 
669

Total fixed charges
12,365

 
19,690

 
21,076

 
24,110

 
25,865

 
35,447

Preferred dividend requirements (2)
1,594

 
n/m

 
802

 
5,921

 
1,461

 
254

Fixed charges and preferred dividends
13,959

 
19,690

 
21,878

 
30,031

 
27,326

 
35,701

Earnings
$
17,424

 
$
20,056

 
$
20,963

 
$
26,637

 
$
30,149

 
$
56,276

Ratio of earnings to fixed charges (3)
1.41

 
1.02

 
0.99

 
1.10

 
1.17

 
1.59

Ratio of earnings to fixed charges and preferred dividends (3, 4)
1.25

 
1.02

 
0.96

 
0.89

 
1.10

 
1.58

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31
(Dollars in millions)
Nine Months Ended September 30, 2012
 
2011
 
2010
 
2009
 
2008
 
2007
Including Interest on Deposits
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
4,976

 
$
(230
)
 
$
(1,323
)
 
$
4,360

 
$
4,428

 
$
20,924

Equity in undistributed earnings (loss) of unconsolidated subsidiaries
83

 
596

 
1,210

 
(1,833
)
 
(144
)
 
(95
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
13,097

 
21,620

 
23,974

 
30,807

 
40,324

 
52,871

1/3 of net rent expense (1)
820

 
1,072

 
1,099

 
1,110

 
791

 
669

Total fixed charges
13,917

 
22,692

 
25,073

 
31,917

 
41,115

 
53,540

Preferred dividend requirements (2)
1,594

 
n/m

 
802

 
5,921

 
1,461

 
254

Fixed charges and preferred dividends
15,511

 
22,692

 
25,875

 
37,838

 
42,576

 
53,794

Earnings
$
18,976

 
$
23,058

 
$
24,960

 
$
34,444

 
$
45,399

 
$
74,369

Ratio of earnings to fixed charges
1.36

 
1.02

 
1.00

 
1.08

 
1.10

 
1.39

Ratio of earnings to fixed charges and preferred dividends (3, 4)
1.22

 
1.02

 
0.96

 
0.91

 
1.07

 
1.38

(1) 
Represents an appropriate interest factor.
(2) 
Reflects the impact of $8.8 billion of mortgage banking losses and $3.2 billion of goodwill impairment charges during 2011 which resulted in a negative preferred dividend requirement.
(3) 
The earnings for 2010 were inadequate to cover fixed charges and the ratio of earnings to fixed charges and preferred dividends. The earnings deficiency is a result of $12.4 billion of goodwill impairment charges during 2010. The coverage deficiency for fixed charges was $113 million and the coverage deficiency for fixed charges and preferred dividends was $915 million.
(4) 
The earnings for 2009 were inadequate to cover fixed charges and preferred dividends. The earnings deficiency is a result of 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.
n/m = not meaningful