EX-99.3 4 bac-exhibit993x6302013.htm THE SUPPLEMENTAL INFORMATION BAC-Exhibit 99.3-6.30.2013








Supplemental Information
Second Quarter 2013









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
 
 
 
Consumer & Business Banking
 
Consumer Real Estate Services
 
Global Banking
 
Global Markets
 
Global Wealth & Investment Management
 
All Other
 
 
 
 
 
 
 





Bank of America Corporation and Subsidiaries
Consolidated Financial Highlights
(Dollars in millions, except per share information; shares in thousands)
 
Six Months Ended
June 30
 
 
Second
Quarter
2013
 
First
Quarter
2013
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
2013
 
2012
 
 
 
 
 
 
Income statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
21,213

 
$
20,394

 
 
$
10,549

 
$
10,664

 
$
10,324

 
$
9,938

 
$
9,548

Noninterest income
24,711

 
23,852

 
 
12,178

 
12,533

 
8,336

 
10,490

 
12,420

Total revenue, net of interest expense
45,924

 
44,246

 
 
22,727

 
23,197

 
18,660

 
20,428

 
21,968

Provision for credit losses
2,924

 
4,191

 
 
1,211

 
1,713

 
2,204

 
1,774

 
1,773

Noninterest expense
35,518

 
36,189

 
 
16,018

 
19,500

 
18,360

 
17,544

 
17,048

Income tax expense (benefit)
1,987

 
750

 
 
1,486

 
501

 
(2,636
)
 
770

 
684

Net income
5,495

 
3,116

 
 
4,012

 
1,483

 
732

 
340

 
2,463

Preferred stock dividends
814

 
690

 
 
441

 
373

 
365

 
373

 
365

Net income (loss) applicable to common shareholders
4,681

 
2,426

 
 
3,571

 
1,110

 
367

 
(33
)
 
2,098

Diluted earnings per common share (1)
0.42

 
0.22

 
 
0.32

 
0.10

 
0.03

 
0.00

 
0.19

Average diluted common shares issued and outstanding (1)
11,549,693

 
11,509,945

 
 
11,524,510

 
11,154,778

 
10,884,921

 
10,776,173

 
11,556,011

Dividends paid per common share
$
0.02

 
$
0.02

 
 
$
0.01

 
$
0.01

 
$
0.01

 
$
0.01

 
$
0.01

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
0.50
%
 
0.29
%
 
 
0.74
%
 
0.27
%
 
0.13
%
 
0.06
%
 
0.45
%
Return on average common shareholders' equity
4.32

 
2.26

 
 
6.55

 
2.06

 
0.67

 
n/m

 
3.89

Return on average tangible common shareholders' equity (2)
6.53

 
3.47

 
 
9.88

 
3.12

 
1.01

 
n/m

 
5.95

Return on average tangible shareholders' equity (2)
6.84

 
3.94

 
 
9.98

 
3.69

 
1.77

 
0.84

 
6.16

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per share of common stock
$
20.18

 
$
20.16

 
 
$
20.18

 
$
20.19

 
$
20.24

 
$
20.40

 
$
20.16

Tangible book value per share of common stock (2)
13.32

 
13.22

 
 
13.32

 
13.36

 
13.36

 
13.48

 
13.22

Market price per share of common stock:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Closing price
$
12.86

 
$
8.18

 
 
$
12.86

 
$
12.18

 
$
11.61

 
$
8.83

 
$
8.18

High closing price for the period
13.83

 
9.93

 
 
13.83

 
12.78

 
11.61

 
9.55

 
9.68

Low closing price for the period
11.03

 
5.80

 
 
11.44

 
11.03

 
8.93

 
7.04

 
6.83

Market capitalization
138,156

 
88,155

 
 
138,156

 
131,817

 
125,136

 
95,163

 
88,155

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of banking centers - U.S.
5,328

 
5,594

 
 
5,328

 
5,389

 
5,478

 
5,540

 
5,594

Number of branded ATMs - U.S.
16,354

 
16,220

 
 
16,354

 
16,311

 
16,347

 
16,253

 
16,220

Full-time equivalent employees
257,158

 
275,460

 
 
257,158

 
262,812

 
267,190

 
272,594

 
275,460

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Due to a net loss applicable to common shareholders for the third quarter of 2012, the impact of antidilutive equity instruments was excluded from diluted earnings per share and average diluted common shares.
(2) 
Tangible equity ratios 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 Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)

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 (FTE) basis data (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended
June 30
 
 
Second
Quarter
2013
 
First
Quarter
2013
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
2013
 
2012
 
 
 
 
 
 
Net interest income
$
21,646

 
$
20,835

 
 
$
10,771

 
$
10,875

 
$
10,555

 
$
10,167

 
$
9,782

Total revenue, net of interest expense
46,357

 
44,687

 
 
22,949

 
23,408

 
18,891

 
20,657

 
22,202

Net interest yield (2)
2.44
%
 
2.36
%
 
 
2.44
%
 
2.43
%
 
2.35
%
 
2.32
%
 
2.21
%
Efficiency ratio
76.62

 
80.98

 
 
69.80

 
83.31

 
97.19

 
84.93

 
76.79

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)
(2) 
Calculation includes fees earned on overnight deposits placed with the Federal Reserve and, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, of $73 million and $99 million for the six months ended June 30, 2013 and 2012; $40 million and $33 million for the second and first quarters of 2013, and $42 million, $48 million and $52 million for the fourth, third and second quarters of 2012, respectively. For more information, see Quarterly and Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis on pages 10-11 and 12-13.


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)
 
Six Months Ended
June 30
 
 
Second
Quarter
2013
 
First
Quarter
2013
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
2013
 
2012
 
 
Interest income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and leases
$
18,238

 
$
19,917

 
 
$
9,060

 
$
9,178

 
$
9,366

 
$
9,597

 
$
9,744

Debt securities
5,097

 
4,651

 
 
2,548

 
2,549

 
2,196

 
2,062

 
1,905

Federal funds sold and securities borrowed or purchased under agreements to resell
634

 
820

 
 
319

 
315

 
329

 
353

 
360

Trading account assets
2,518

 
2,598

 
 
1,181

 
1,337

 
1,307

 
1,189

 
1,246

Other interest income
1,439

 
1,467

 
 
717

 
722

 
773

 
775

 
737

Total interest income
27,926

 
29,453

 
 
13,825

 
14,101

 
13,971

 
13,976

 
13,992

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
748

 
1,068

 
 
366

 
382

 
438

 
484

 
519

Short-term borrowings
1,558

 
1,824

 
 
809

 
749

 
855

 
893

 
943

Trading account liabilities
899

 
925

 
 
427

 
472

 
420

 
418

 
448

Long-term debt
3,508

 
5,242

 
 
1,674

 
1,834

 
1,934

 
2,243

 
2,534

Total interest expense
6,713

 
9,059

 
 
3,276

 
3,437

 
3,647

 
4,038

 
4,444

Net interest income
21,213

 
20,394

 
 
10,549

 
10,664

 
10,324

 
9,938

 
9,548

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Card income
2,879

 
3,035

 
 
1,469

 
1,410

 
1,548

 
1,538

 
1,578

Service charges
3,636

 
3,846

 
 
1,837

 
1,799

 
1,820

 
1,934

 
1,934

Investment and brokerage services
6,170

 
5,723

 
 
3,143

 
3,027

 
2,889

 
2,781

 
2,847

Investment banking income
3,091

 
2,363

 
 
1,556

 
1,535

 
1,600

 
1,336

 
1,146

Equity investment income
1,243

 
1,133

 
 
680

 
563

 
699

 
238

 
368

Trading account profits
4,927

 
3,839

 
 
1,938

 
2,989

 
792

 
1,239

 
1,764

Mortgage banking income (loss)
2,441

 
3,271

 
 
1,178

 
1,263

 
(540
)
 
2,019

 
1,659

Gains on sales of debt securities
525

 
1,152

 
 
457

 
68

 
171

 
339

 
400

Other income (loss)
(188
)
 
(464
)
 
 
(76
)
 
(112
)
 
(642
)
 
(928
)
 
730

Other-than-temporary impairment losses on available-for-sale debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total other-than-temporary impairment losses
(14
)
 
(62
)
 
 
(5
)
 
(14
)
 
(1
)
 
(9
)
 
(13
)
Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income
1

 
16

 
 
1

 
5

 

 
3

 
7

Net impairment losses recognized in earnings on available-for-sale debt securities
(13
)
 
(46
)
 
 
(4
)
 
(9
)
 
(1
)
 
(6
)
 
(6
)
Total noninterest income
24,711

 
23,852

 
 
12,178

 
12,533

 
8,336

 
10,490

 
12,420

Total revenue, net of interest expense
45,924

 
44,246

 
 
22,727

 
23,197

 
18,660

 
20,428

 
21,968

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
2,924

 
4,191

 
 
1,211

 
1,713

 
2,204

 
1,774

 
1,773

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Personnel
18,422

 
18,917

 
 
8,531

 
9,891

 
8,300

 
8,431

 
8,729

Occupancy
2,263

 
2,259

 
 
1,109

 
1,154

 
1,151

 
1,160

 
1,117

Equipment
1,082

 
1,157

 
 
532

 
550

 
551

 
561

 
546

Marketing
866

 
914

 
 
437

 
429

 
480

 
479

 
449

Professional fees
1,343

 
1,705

 
 
694

 
649

 
996

 
873

 
922

Amortization of intangibles
550

 
640

 
 
274

 
276

 
309

 
315

 
321

Data processing
1,591

 
1,548

 
 
779

 
812

 
773

 
640

 
692

Telecommunications
820

 
817

 
 
411

 
409

 
433

 
410

 
417

Other general operating
8,581

 
8,232

 
 
3,251

 
5,330

 
5,367

 
4,675

 
3,855

Total noninterest expense
35,518

 
36,189

 
 
16,018

 
19,500

 
18,360

 
17,544

 
17,048

Income (loss) before income taxes
7,482

 
3,866

 
 
5,498

 
1,984

 
(1,904
)
 
1,110

 
3,147

Income tax expense (benefit)
1,987

 
750

 
 
1,486

 
501

 
(2,636
)
 
770

 
684

Net income
$
5,495

 
$
3,116

 
 
$
4,012

 
$
1,483

 
$
732

 
$
340

 
$
2,463

Preferred stock dividends
814

 
690

 
 
441

 
373

 
365

 
373

 
365

Net income (loss) applicable to common shareholders
$
4,681

 
$
2,426

 
 
$
3,571

 
$
1,110

 
$
367

 
$
(33
)
 
$
2,098

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Per common share information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings
$
0.43

 
$
0.23

 
 
$
0.33

 
$
0.10

 
$
0.03

 
$
0.00

 
$
0.19

 Diluted earnings
0.42

 
0.22

 
 
0.32

 
0.10

 
0.03

 
0.00

 
0.19

Dividends paid
0.02

 
0.02

 
 
0.01

 
0.01

 
0.01

 
0.01

 
0.01

Average common shares issued and outstanding
10,787,357

 
10,714,881

 
 
10,775,867

 
10,798,975

 
10,777,204

 
10,776,173

 
10,775,695

Average diluted common shares issued and outstanding (1)
11,549,693

 
11,509,945

 
 
11,524,510

 
11,154,778

 
10,884,921

 
10,776,173

 
11,556,011

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Due to a net loss applicable to common shareholders for the third quarter of 2012, 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 Statement of Comprehensive Income
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended
June 30
 
 
Second
Quarter
2013

First
Quarter
2013

Fourth
Quarter
2012

Third
Quarter
2012

Second
Quarter
2012
 
2013
 
2012
 
 
Net income
$
5,495

 
$
3,116

 
 
$
4,012

 
$
1,483

 
$
732

 
$
340

 
$
2,463

Other comprehensive income (loss), net-of-tax:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net change in available-for-sale debt and marketable equity securities
(5,139
)
 
606

 
 
(4,233
)
 
(906
)
 
(1,169
)
 
2,365

 
1,530

Net change in derivatives
185

 
301

 
 
13

 
172

 
381

 
234

 
(81
)
Employee benefit plan adjustments
133

 
1,031

 
 
48

 
85

 
(1,171
)
 
75

 
79

Net change in foreign currency translation adjustments
(91
)
 
(1
)
 
 
(49
)
 
(42
)
 
(27
)
 
15

 
(32
)
Other comprehensive income (loss)
(4,912
)
 
1,937

 
 
(4,221
)
 
(691
)
 
(1,986
)
 
2,689

 
1,496

Comprehensive income (loss)
$
583

 
$
5,053

 
 
$
(209
)
 
$
792

 
$
(1,254
)
 
$
3,029

 
$
3,959

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


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
(Dollars in millions)
 
 
 
 
 
 
June 30
2013
 
March 31
2013
 
June 30
2012
Assets
 
 
 
 
 
Cash and cash equivalents
$
98,828

 
$
100,980

 
$
123,717

Time deposits placed and other short-term investments
12,916

 
12,740

 
22,350

Federal funds sold and securities borrowed or purchased under agreements to resell
224,168

 
220,623

 
226,116

Trading account assets
191,234

 
223,028

 
191,743

Derivative assets
56,772

 
52,247

 
59,939

Debt securities:
 
 
 
 
 
Carried at fair value
281,481

 
305,132

 
313,972

Held-to-maturity, at cost
54,922

 
49,577

 
35,168

Total debt securities
336,403

 
354,709

 
349,140

Loans and leases
921,570

 
911,592

 
892,315

Allowance for loan and lease losses
(21,235
)
 
(22,441
)
 
(30,288
)
Loans and leases, net of allowance
900,335

 
889,151

 
862,027

Premises and equipment, net
10,836

 
11,085

 
12,653

Mortgage servicing rights (includes $5,827, $5,776 and $5,708 measured at fair value)
5,839

 
5,896

 
5,880

Goodwill
69,930

 
69,930

 
69,976

Intangible assets
6,104

 
6,379

 
7,335

Loans held-for-sale
14,549

 
19,278

 
13,289

Customer and other receivables
67,526

 
70,981

 
71,458

Other assets
127,880

 
137,792

 
145,231

Total assets
$
2,123,320

 
$
2,174,819

 
$
2,160,854

 
 
 
 
 
 
Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
Trading account assets
$
6,507

 
$
9,113

 
$
8,499

Derivative assets
173

 
187

 
1,007

Loans and leases
113,045

 
116,236

 
128,386

Allowance for loan and lease losses
(3,157
)
 
(3,310
)
 
(4,074
)
Loans and leases, net of allowance
109,888

 
112,926

 
124,312

Loans held-for-sale
1,876

 
3,229

 
2,163

All other assets
3,927

 
4,728

 
4,113

Total assets of consolidated variable interest entities
$
122,371

 
$
130,183

 
$
140,094



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
 
 
 
 
 
Consolidated Balance Sheet (continued) 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
June 30
2013
 
March 31
2013
 
June 30
2012
Liabilities
 
 
 
 
 
Deposits in U.S. offices:
 
 
 
 
 
Noninterest-bearing
$
352,447

 
$
357,623

 
$
343,308

Interest-bearing
654,370

 
661,930

 
621,076

Deposits in non-U.S. offices:
 
 
 
 
 
Noninterest-bearing
6,920

 
7,177

 
6,871

Interest-bearing
67,046

 
68,453

 
63,970

Total deposits
1,080,783

 
1,095,183

 
1,035,225

Federal funds purchased and securities loaned or sold under agreements to repurchase
232,609

 
248,149

 
285,914

Trading account liabilities
82,381

 
90,547

 
77,458

Derivative liabilities
48,532

 
47,825

 
51,515

Short-term borrowings
46,470

 
42,148

 
39,019

Accrued expenses and other liabilities (includes $474, $486 and $574 of reserve for unfunded lending commitments)
139,033

 
134,033

 
133,900

Long-term debt
262,480

 
279,641

 
301,848

Total liabilities
1,892,288

 
1,937,526

 
1,924,879

Shareholders’ equity
 
 
 
 
 
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,445,843, 3,685,410 and 3,685,410 shares
14,241

 
18,780

 
18,762

Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 10,743,097,956, 10,822,379,936 and 10,776,869,270 shares
157,192

 
158,157

 
158,001

Retained earnings
67,308

 
63,844

 
62,712

Accumulated other comprehensive income (loss)
(7,709
)
 
(3,488
)
 
(3,500
)
Total shareholders’ equity
231,032

 
237,293

 
235,975

Total liabilities and shareholders’ equity
$
2,123,320

 
$
2,174,819

 
$
2,160,854

 
 
 
 
 
 
Liabilities of consolidated variable interest entities included in total liabilities above
Short-term borrowings
$
1,421

 
$
2,539

 
$
4,449

Long-term debt
25,946

 
31,461

 
38,456

All other liabilities
390

 
345

 
1,161

Total liabilities of consolidated variable interest entities
$
27,757

 
$
34,345

 
$
44,066



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
Capital Management
(Dollars in millions)
 
Second
Quarter
2013
 
First
Quarter
2013
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
Risk-based capital (1, 2):
 
 
 
 
 
 
 
 
 
Tier 1 common capital
$
139,519

 
$
136,119

 
$
133,403

 
$
136,406

 
$
134,082

Tier 1 capital
156,689

 
158,677

 
155,461

 
163,063

 
164,665

Total capital
196,752

 
201,211

 
196,680

 
205,172

 
208,936

Risk-weighted assets (3)
1,288,159

 
1,298,187

 
1,205,976

 
1,195,722

 
1,193,422

Tier 1 common capital ratio (3, 4)
10.83
%
 
10.49
%
 
11.06
%
 
11.41
%
 
11.24
%
Tier 1 capital ratio
12.16

 
12.22

 
12.89

 
13.64

 
13.80

Total capital ratio
15.27

 
15.50

 
16.31

 
17.16

 
17.51

Tier 1 leverage ratio
7.49

 
7.49

 
7.37

 
7.84

 
7.84

Tangible equity ratio (5)
7.67

 
7.78

 
7.62

 
7.85

 
7.73

Tangible common equity ratio (5)
6.98

 
6.88

 
6.74

 
6.95

 
6.83

 
 
 
 
 
 
 
 
 
 
(1) 
Regulatory capital ratios are preliminary until filed with the Federal Reserve on Form Y-9C.
(2) 
Basel 1 includes the Market Risk Final Rule for the second and first quarters of 2013 (Basel 2013 Rules). Basel 1 did not include the Market Risk Final Rule for the fourth, third and second quarters of 2012.
(3) 
On a pro-forma basis, under the Basel 1 2013 Rules, fourth quarter 2012 risk-weighted assets and the Tier 1 common capital ratio would have been $1,284,799 million and 10.38 percent.
(4) 
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.
(5) 
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 financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on pages 47-50.)


Basel 1 to Basel 3 (fully phased-in) Reconciliation (1, 2)
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
June 30
2013
 
March 31
2013
 
December 31
2012
 
September 30
2012
 
June 30
2012
Regulatory capital – Basel 1 to Basel 3 (fully phased-in)
 
 
 
 
 
 
 
 
 
Basel 1 Tier 1 capital
$
156,689

 
$
158,677

 
$
155,461

 
$
163,063

 
$
164,665

Deduction of qualifying preferred stock and trust preferred securities
(17,170
)
 
(22,558
)
 
(22,058
)
 
(26,657
)
 
(30,583
)
Basel 1 Tier 1 common capital
139,519

 
136,119

 
133,403

 
136,406

 
134,082

Deduction of defined benefit pension assets
(787
)
 
(776
)
 
(737
)
 
(1,709
)
 
(3,057
)
Change in deferred tax assets and threshold deductions (deferred tax asset temporary differences, mortgage servicing rights and significant investments)
(6,761
)
 
(4,501
)
 
(3,020
)
 
(1,102
)
 
(3,745
)
Change in all other deductions, net
(6,125
)
 
(2,032
)
 
(1,020
)
 
1,040

 
(2,459
)
Basel 3 (fully phased-in) Tier 1 common capital
$
125,846

 
$
128,810

 
$
128,626

 
$
134,635

 
$
124,821

 
 
 
 
 
 
 
 
 
 
Risk-weighted assets – Basel 1 to Basel 3 (fully phased-in)
 
 
 
 
 
 
 
 
 
Basel 1 risk-weighted assets
$
1,288,159

 
$
1,298,187

 
$
1,205,976

 
$
1,195,722

 
$
1,193,422

Net change in credit and other risk-weighted assets
22,276

 
55,454

 
103,085

 
216,244

 
298,003

Increase due to Market Risk Final Rule

 

 
81,811

 
88,881

 
79,553

Basel 3 (fully phased-in) risk-weighted assets
$
1,310,435

 
$
1,353,641

 
$
1,390,872

 
$
1,500,847

 
$
1,570,978

 
 
 
 
 
 
 
 
 
 
Tier 1 common capital ratios
 
 
 
 
 
 
 
 
 
Basel 1
10.83
%
 
10.49
%
 
11.06
%
 
11.41
%
 
11.24
%
Basel 3 (fully phased-in)
9.60

 
9.52

 
9.25

 
8.97

 
7.95

 
 
 
 
 
 
 
 
 
 
(1) 
Basel 3 (fully phased-in) estimates as of June 30, 2013 are based on the Advanced Approach under the final Basel 3 rules issued on July 2, 2013.
(2) 
Basel 1 includes the Market Risk Final Rule at June 30, 2013 and March 31, 2013. At December 31, 2012, September 30, 2012 and June 30, 2012, Basel 1 did not include the Market Risk Final Rule.


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
Net Interest Income Excluding Trading-related Net Interest Income
(Dollars in millions)
 
Six Months Ended
June 30
 
 
Second
Quarter
2013
 
First
Quarter
2013
 
Fourth
Quarter
2012
 
Third
Quarter
2012
 
Second
Quarter
2012
 
2013
 
2012
 
 
 
Net interest income (FTE basis)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As reported (1)
$
21,646

 
$
20,835

 
 
$
10,771

 
$
10,875

 
$
10,555

 
$
10,167

 
$
9,782

Impact of trading-related net interest income
(1,929
)
 
(1,449
)
 
 
(919
)
 
(1,010
)
 
(1,012
)
 
(847
)
 
(653
)
Net interest income excluding trading-related net interest income (2)
$
19,717

 
$
19,386

 
 
$
9,852

 
$
9,865

 
$
9,543

 
$
9,320

 
$
9,129

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average earning assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As reported
$
1,784,975

 
$
1,770,336

 
 
$
1,769,336

 
$
1,800,786

 
$
1,788,936

 
$
1,750,275

 
$
1,772,568

Impact of trading-related earning assets
(492,510
)
 
(434,499
)
 
 
(487,345
)
 
(497,730
)
 
(482,366
)
 
(446,948
)
 
(444,584
)
Average earning assets excluding trading-related earning assets (2)
$
1,292,465

 
$
1,335,837

 
 
$
1,281,991

 
$
1,303,056

 
$
1,306,570

 
$
1,303,327

 
$
1,327,984

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest yield contribution (FTE basis) (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As reported (1)
2.44
%
 
2.36
%
 
 
2.44
%
 
2.43
%
 
2.35
%
 
2.32
%
 
2.21
%
Impact of trading-related activities
0.62

 
0.55

 
 
0.64

 
0.62

 
0.56

 
0.53

 
0.55

Net interest yield on earning assets excluding trading-related activities (2)
3.06
%
 
2.91
%
 
 
3.08
%
 
3.05
%
 
2.91
%
 
2.85
%
 
2.76
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Net interest income and net interest yield include fees earned on overnight deposits placed with the Federal Reserve and, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, of $73 million and $99 million for the six months ended June 30, 2013 and 2012; $40 million and $33 million for the second and first quarters of 2013, and $42 million, $48 million and $52 million for the fourth, third and second quarters of 2012, respectively.
(2) 
Represents a non-GAAP financial measure.
(3) 
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.
9



Bank of America Corporation and Subsidiaries
Quarterly Average Balances and Interest Rates – Fully Taxable-equivalent Basis
(Dollars in millions)
 
 
Second Quarter 2013
 
 
First Quarter 2013
 
 
Second Quarter 2012
 
 
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)
 
$
15,088

 
$
46

 
1.21
%
 
 
$
16,129

 
$
46

 
1.17
%
 
 
$
27,476

 
$
64

 
0.94
%
Federal funds sold and securities borrowed or purchased under agreements to resell
 
233,394

 
319

 
0.55

 
 
237,463

 
315

 
0.54

 
 
234,148

 
360

 
0.62

Trading account assets
 
181,620

 
1,224

 
2.70

 
 
194,364

 
1,380

 
2.87

 
 
165,906

 
1,302

 
3.15

Debt securities (2)
 
343,260

 
2,557

 
2.98

 
 
356,399

 
2,556

 
2.87

 
 
357,081

 
1,910

 
2.14

Loans and leases (3):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
257,275

 
2,246

 
3.49

 
 
258,630

 
2,340

 
3.62

 
 
266,365

 
2,555

 
3.84

Home equity
 
101,708

 
951

 
3.74

 
 
105,939

 
997

 
3.80

 
 
119,785

 
1,091

 
3.66

U.S. credit card
 
89,722

 
2,192

 
9.80

 
 
91,712

 
2,249

 
9.95

 
 
95,018

 
2,356

 
9.97

Non-U.S. credit card
 
10,613

 
315

 
11.93

 
 
11,027

 
329

 
12.10

 
 
13,641

 
396

 
11.68

Direct/Indirect consumer
 
82,485

 
598

 
2.90

 
 
82,364

 
620

 
3.06