BAC-12.31.2014 Ex. 99.3

EX-99.3 4 bac-12312014xexhibit993.htm THE SUPPLEMENTAL INFORMATION BAC-12.31.2014 Ex. 99.3

Supplemental Information

Fourth Quarter 2014

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 Statement of Comprehensive Income	5
Consolidated Balance Sheet	6
Capital Management	8
Regulatory Capital Reconciliations	9
Net Interest Income Excluding Trading-related Net Interest Income	10
Quarterly Average Balances and Interest Rates	11
Annual Average Balances and Interest Rates	13
Debt Securities and Available-for-Sale Marketable Equity Securities	15
Quarterly Results by Business Segment	16
Annual Results by Business Segment	17
Consumer & Business Banking
Total Segment Results	18
Business Results	19
Key Indicators	22
Consumer Real Estate Services
Total Segment Results	23
Business Results	24
Key Indicators	27
Global Wealth & Investment Management
Total Segment Results	28
Key Indicators	29
Global Banking
Total Segment Results	30
Key Indicators	31
Investment Banking Product Rankings	32
Global Markets
Total Segment Results	33
Key Indicators	34
All Other
Total Results	35
Equity Investments	36
Outstanding Loans and Leases	37
Quarterly Average Loans and Leases by Business Segment	38
Commercial Credit Exposure by Industry	39
Net Credit Default Protection by Maturity Profile and Credit Exposure Debt Rating	40
Top 20 Non-U.S. Countries Exposure	41
Nonperforming Loans, Leases and Foreclosed Properties	42
Nonperforming Loans, Leases and Foreclosed Properties Activity	43
Quarterly Net Charge-offs and Net Charge-off Ratios	44
Annual Net Charge-offs and Net Charge-off Ratios	45
Allocation of the Allowance for Credit Losses by Product Type	46

Exhibit A: Non-GAAP Reconciliations	47



Bank of America Corporation and Subsidiaries
Consolidated Financial Highlights
(Dollars in millions, except per share information; shares in thousands)
	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
	2014			2013			Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
Income statement
Net interest income	$	39,952		$	42,265		$	9,635		$	10,219		$	10,013		$	10,085		$	10,786
Noninterest income	44,295			46,677			9,090			10,990			11,734			12,481			10,702
Total revenue, net of interest expense	84,247			88,942			18,725			21,209			21,747			22,566			21,488
Provision for credit losses	2,275			3,556			219			636			411			1,009			336
Noninterest expense	75,117			69,214			14,196			20,142			18,541			22,238			17,307
Income tax expense (benefit)	2,022			4,741			1,260			663			504			(405		)	406
Net income (loss)	4,833			11,431			3,050			(232		)	2,291			(276		)	3,439
Preferred stock dividends	1,044			1,349			312			238			256			238			256
Net income (loss) applicable to common shareholders	3,789			10,082			2,738			(470		)	2,035			(514		)	3,183
Diluted earnings (loss) per common share ⁽¹⁾	0.36			0.90			0.25			(0.04		)	0.19			(0.05		)	0.29
Average diluted common shares issued and outstanding ⁽¹⁾	10,584,535			11,491,418			11,273,773			10,515,790			11,265,123			10,560,518			11,404,438
Dividends paid per common share	$	0.12		$	0.04		$	0.05		$	0.05		$	0.01		$	0.01		$	0.01

Performance ratios
Return on average assets	0.23		%	0.53		%	0.57		%	n/m			0.42		%	n/m			0.64		%
Return on average common shareholders' equity	1.70			4.62			4.84			n/m			3.68			n/m			5.74
Return on average tangible common shareholders' equity ⁽²⁾	2.52			6.97			7.15			n/m			5.47			n/m			8.61
Return on average tangible shareholders' equity ⁽²⁾	2.92			7.13			7.08			n/m			5.64			n/m			8.53


At period end
Book value per share of common stock	$	21.32		$	20.71		$	21.32		$	20.99		$	21.16		$	20.75		$	20.71
Tangible book value per share of common stock ⁽²⁾	14.43			13.79			14.43			14.09			14.24			13.81			13.79
Market price per share of common stock:
Closing price	$	17.89		$	15.57		$	17.89		$	17.05		$	15.37		$	17.20		$	15.57
High closing price for the period	18.13			15.88			18.13			17.18			17.34			17.92			15.88
Low closing price for the period	14.51			11.03			15.76			14.98			14.51			16.10			13.69
Market capitalization	188,141			164,914			188,141			179,296			161,628			181,117			164,914

Number of banking centers - U.S.	4,855			5,151			4,855			4,947			5,023			5,095			5,151
Number of branded ATMs - U.S.	15,838			16,259			15,838			15,675			15,976			16,214			16,259
Full-time equivalent employees	223,715			242,117			223,715			229,538			233,201			238,560			242,117


⁽¹⁾	The diluted earnings (loss) per common share excludes the effect of any equity instruments that are antidilutive to earnings per share. There were no potential common shares that were dilutive in the third and first quarters of 2014 because of the net loss applicable to common shareholders.

⁽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)

Fully taxable-equivalent (FTE) basis data ⁽¹⁾

	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
	2014			2013
Net interest income	$	40,821		$	43,124		$	9,865		$	10,444		$	10,226		$	10,286		$	10,999
Total revenue, net of interest expense	85,116			89,801			18,955			21,434			21,960			22,767			21,701
Net interest yield ⁽²⁾	2.25		%	2.37		%	2.18		%	2.29		%	2.22		%	2.29		%	2.44		%
Efficiency ratio	88.25			77.07			74.90			93.97			84.43			97.68			79.75


⁽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⁾	Beginning in 2014, interest-bearing deposits placed with the Federal Reserve and certain non-U.S. central banks are included in earning assets. Prior period yields have been reclassified to conform to current period presentation.

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)
	Year Ended December 31					Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014		First Quarter 2014			Fourth Quarter 2013
	2014		2013			Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014		First Quarter 2014			Fourth Quarter 2013
Interest income
Loans and leases	$	34,307	$	36,470		$	8,377		$	8,535		$	8,635	$	8,760		$	9,086
Debt securities	8,021		9,749			1,675			2,225			2,124		1,997			2,447
Federal funds sold and securities borrowed or purchased under agreements to resell	1,039		1,229			238			239			297		265			304
Trading account assets	4,561		4,706			1,098			1,111			1,175		1,177			1,139
Other interest income	2,958		2,866			764			748			710		736			736
Total interest income	50,886		55,020			12,152			12,858			12,941		12,935			13,712

Interest expense
Deposits	1,080		1,396			237			270			282		291			314
Short-term borrowings	2,578		2,923			615			591			763		609			682
Trading account liabilities	1,576		1,638			351			392			398		435			364
Long-term debt	5,700		6,798			1,314			1,386			1,485		1,515			1,566
Total interest expense	10,934		12,755			2,517			2,639			2,928		2,850			2,926
Net interest income	39,952		42,265			9,635			10,219			10,013		10,085			10,786

Noninterest income
Card income	5,944		5,826			1,610			1,500			1,441		1,393			1,503
Service charges	7,443		7,390			1,844			1,907			1,866		1,826			1,870
Investment and brokerage services	13,284		12,282			3,397			3,327			3,291		3,269			3,117
Investment banking income	6,065		6,126			1,541			1,351			1,631		1,542			1,738
Equity investment income (loss)	1,130		2,901			(20		)	9			357		784			474
Trading account profits	6,309		7,056			111			1,899			1,832		2,467			863
Mortgage banking income	1,563		3,874			352			272			527		412			848
Gains on sales of debt securities	1,354		1,271			163			432			382		377			390
Other income (loss)	1,203		(49		)	92			293			407		411			(101		)
Total noninterest income	44,295		46,677			9,090			10,990			11,734		12,481			10,702
Total revenue, net of interest expense	84,247		88,942			18,725			21,209			21,747		22,566			21,488

Provision for credit losses	2,275		3,556			219			636			411		1,009			336

Noninterest expense
Personnel	33,787		34,719			7,693			8,039			8,306		9,749			7,987
Occupancy	4,260		4,475			996			1,070			1,079		1,115			1,116
Equipment	2,125		2,146			531			514			534		546			526
Marketing	1,829		1,834			491			446			450		442			457
Professional fees	2,472		2,884			677			611			626		558			839
Amortization of intangibles	936		1,086			228			234			235		239			266
Data processing	3,144		3,170			796			754			761		833			800
Telecommunications	1,259		1,593			254			311			324		370			376
Other general operating	25,305		17,307			2,530			8,163			6,226		8,386			4,940
Total noninterest expense	75,117		69,214			14,196			20,142			18,541		22,238			17,307
Income (loss) before income taxes	6,855		16,172			4,310			431			2,795		(681		)	3,845
Income tax expense (benefit)	2,022		4,741			1,260			663			504		(405		)	406
Net income (loss)	$	4,833	$	11,431		$	3,050		$	(232	)	$	2,291	$	(276	)	$	3,439
Preferred stock dividends	1,044		1,349			312			238			256		238			256
Net income (loss) applicable to common shareholders	$	3,789	$	10,082		$	2,738		$	(470	)	$	2,035	$	(514	)	$	3,183

Per common share information
Earnings (loss)	$	0.36	$	0.94		$	0.26		$	(0.04	)	$	0.19	$	(0.05	)	$	0.30
Diluted earnings (loss) ⁽¹⁾	0.36		0.90			0.25			(0.04		)	0.19		(0.05		)	0.29
Dividends paid	0.12		0.04			0.05			0.05			0.01		0.01			0.01
Average common shares issued and outstanding	10,527,818		10,731,165			10,516,334			10,515,790			10,519,359		10,560,518			10,633,030
Average diluted common shares issued and outstanding ⁽¹⁾	10,584,535		11,491,418			11,273,773			10,515,790			11,265,123		10,560,518			11,404,438


⁽¹⁾	The diluted earnings (loss) per common share excludes the effect of any equity instruments that are antidilutive to earnings per share. There were no potential common shares that were dilutive in the third and first quarters of 2014 because of the net loss applicable to common shareholders.

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)
	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014		First Quarter 2014			Fourth Quarter 2013
	2014			2013			Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014		First Quarter 2014			Fourth Quarter 2013
Net income (loss)	$	4,833		$	11,431		$	3,050		$	(232	)	$	2,291	$	(276	)	$	3,439
Other comprehensive income (loss), net-of-tax:
Net change in available-for-sale debt and marketable equity securities	4,621			(8,166		)	2,021			(994		)	2,305		1,289			(2,396		)
Net change in derivatives	616			592			205			196			7		208			227
Employee benefit plan adjustments	(943		)	2,049			(1,007		)	8			7		49			536
Net change in foreign currency translation adjustments	(157		)	(135		)	(24		)	(14		)	7		(126		)	(1		)
Other comprehensive income (loss)	4,137			(5,660		)	1,195			(804		)	2,326		1,420			(1,634		)
Comprehensive income (loss)	$	8,970		$	5,771		$	4,245		$	(1,036	)	$	4,617	$	1,144		$	1,805

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)
	December 31 2014			September 30 2014			December 31 2013
Assets
Cash and due from banks	$	33,118		$	28,332		$	36,852
Interest-bearing deposits with the Federal Reserve and non-U.S. central banks	105,471			100,327			94,470
Cash and cash equivalents	138,589			128,659			131,322
Time deposits placed and other short-term investments	7,510			7,859			11,540
Federal funds sold and securities borrowed or purchased under agreements to resell	191,823			223,310			190,328
Trading account assets	191,785			188,489			200,993
Derivative assets	52,682			49,093			47,495
Debt securities:
Carried at fair value	320,695			307,949			268,795
Held-to-maturity, at cost	59,766			60,175			55,150
Total debt securities	380,461			368,124			323,945
Loans and leases	881,391			891,315			928,233
Allowance for loan and lease losses	(14,419		)	(15,106		)	(17,428		)
Loans and leases, net of allowance	866,972			876,209			910,805
Premises and equipment, net	10,049			9,987			10,475
Mortgage servicing rights	3,530			4,243			5,052
Goodwill	69,777			69,784			69,844
Intangible assets	4,612			4,849			5,574
Loans held-for-sale	12,836			7,909			11,362
Customer and other receivables	61,845			67,092			59,448
Other assets	112,063			118,006			124,090
Total assets	$	2,104,534		$	2,123,613		$	2,102,273

Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
Trading account assets	$	6,890		$	7,533		$	8,412
Derivative assets	6			8			185
Loans and leases	95,187			96,565			109,118
Allowance for loan and lease losses	(1,968		)	(2,002		)	(2,674		)
Loans and leases, net of allowance	93,219			94,563			106,444
Loans held-for-sale	1,822			555			1,384
All other assets	2,763			2,738			4,577
Total assets of consolidated variable interest entities	$	104,700		$	105,397		$	121,002

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)
	December 31 2014			September 30 2014			December 31 2013
Liabilities
Deposits in U.S. offices:
Noninterest-bearing	$	392,790		$	386,546		$	373,070
Interest-bearing	660,161			654,726			667,714
Deposits in non-U.S. offices:
Noninterest-bearing	7,542			7,368			8,255
Interest-bearing	58,443			63,341			70,232
Total deposits	1,118,936			1,111,981			1,119,271
Federal funds purchased and securities loaned or sold under agreements to repurchase	201,277			217,925			198,106
Trading account liabilities	74,192			76,867			83,469
Derivative liabilities	46,909			44,238			37,407
Short-term borrowings	31,172			33,275			45,999
Accrued expenses and other liabilities (includes $528, $529 and $484 of reserve for unfunded lending commitments)	145,438			150,531			135,662
Long-term debt	243,139			250,115			249,674
Total liabilities	1,861,063			1,884,932			1,869,588
Shareholders' equity
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,647,790, 3,591,790 and 3,407,790 shares	19,309			17,913			13,352
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 10,516,542,476, 10,515,893,904 and 10,591,808,296 shares	153,458			153,472			155,293
Retained earnings	75,024			72,811			72,497
Accumulated other comprehensive income (loss)	(4,320		)	(5,515		)	(8,457		)
Total shareholders' equity	243,471			238,681			232,685
Total liabilities and shareholders' equity	$	2,104,534		$	2,123,613		$	2,102,273

Liabilities of consolidated variable interest entities included in total liabilities above
Short-term borrowings	$	1,032		$	985		$	1,150
Long-term debt	13,307			15,904			19,448
All other liabilities	138			137			253
Total liabilities of consolidated variable interest entities	$	14,477		$	17,026		$	20,851

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)
	Basel 3 Transition												Basel 1
	December 31 2014			September 30 2014			June 30 2014			March 31 2014			December 31 2013
Risk-based capital metrics ^{(1, 2)}:
Common equity tier 1 capital	$	155,363		$	152,444		$	153,582		$	150,922		n/a
Tier 1 common capital	n/a			n/a			n/a			n/a			$	141,522
Tier 1 capital	169,443			163,040			160,760			152,936			157,742
Total capital	209,140			200,759			197,028			190,124			196,567
Risk-weighted assets	1,261,522			1,271,723			1,284,924			1,282,117			1,297,593
Common equity tier 1 capital ratio	12.3		%	12.0		%	12.0		%	11.8		%	n/a
Tier 1 common capital ratio ⁽³⁾	n/a			n/a			n/a			n/a			10.9		%
Tier 1 capital ratio	13.4			12.8			12.5			11.9			12.2
Total capital ratio	16.6			15.8			15.3			14.8			15.1
Tier 1 leverage ratio	8.2			7.9			7.7			7.4			7.7

Tangible equity ratio ⁽⁴⁾	8.42			8.10			7.85			7.65			7.86
Tangible common equity ratio⁽⁴⁾	7.47			7.22			7.14			7.00			7.20


⁽¹⁾	Regulatory capital ratios are preliminary.


⁽²⁾	On January 1, 2014, the Basel 3 rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting common equity tier 1 capital and Tier 1 capital. We reported under Basel 1 (which included the Market Risk Final Rules) at December 31, 2013.


⁽³⁾	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.

⁽⁴⁾

Tangible equity ratio equals period-end tangible shareholders' equity divided by period-end tangible assets. Tangible common equity ratio equals period-end tangible common shareholders' equity divided by period-end tangible assets. Tangible shareholders' equity and tangible assets are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on pages 47-50.)

n/a = not applicable

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
Regulatory Capital Reconciliations ^{(1, 2)}
(Dollars in millions)
													December 31 2013
Regulatory capital – Basel 1 to Basel 3 (fully phased-in)
Basel 1 Tier 1 capital													$	157,742
Deduction of qualifying preferred stock and trust preferred securities													(16,220		)
Basel 1 Tier 1 common capital													141,522
Deduction of defined benefit pension assets													(829		)
Deferred tax assets and threshold deductions (deferred tax asset temporary differences, MSRs and significant investments)													(5,459		)
Net unrealized losses in accumulated OCI on AFS debt and certain marketable equity securities, and employee benefit plans													(5,664		)
Other deductions, net													(1,624		)
Basel 3 common equity tier 1 capital (fully phased-in)													$	127,946

	December 31 2014			September 30 2014			June 30 2014			March 31 2014
Regulatory capital – Basel 3 transition to fully phased-in
Common equity tier 1 capital (transition)	$	155,363		$	152,444		$	153,582		$	150,922
Adjustments and deductions recognized in Tier 1 capital during transition	(8,111		)	(10,191		)	(10,547		)	(11,302		)
Other adjustments and deductions phased in during transition	(5,978		)	(7,147		)	(5,852		)	(9,474		)
Common equity tier 1 capital (fully phased-in)	$	141,274		$	135,106		$	137,183		$	130,146

	December 31 2014			September 30 2014			June 30 2014			March 31 2014			December 31 2013
Risk-weighted assets – As reported to Basel 3 (fully phased-in)
As reported risk-weighted assets	$	1,261,522		$	1,271,723		$	1,284,924		$	1,282,117		$	1,297,593
Changes in risk-weighted assets from reported to fully phased-in	153,889			146,516			151,901			165,332			162,731
Basel 3 Standardized approach risk-weighted assets (fully phased-in)	1,415,411			1,418,239			1,436,825			1,447,449			1,460,324
Changes in risk-weighted assets for advanced models	50,222			(8,375		)	(49,390		)	(86,234		)	(133,027		)
Basel 3 Advanced approaches risk-weighted assets (fully phased-in)	$	1,465,633		$	1,409,864		$	1,387,435		$	1,361,215		$	1,327,297

Regulatory capital ratios
Basel 1 Tier 1 common	n/a			n/a			n/a			n/a			10.9		%
Basel 3 Standardized approach common equity tier 1 (transition)	12.3		%	12.0		%	12.0		%	11.8		%	n/a
Basel 3 Standardized approach common equity tier 1 (fully phased-in)	10.0			9.5			9.5			9.0			8.8
Basel 3 Advanced approaches common equity tier 1 (fully phased-in)	9.6			9.6			9.9			9.6			9.6


⁽¹⁾	Regulatory capital ratios are preliminary.

⁽²⁾

On January 1, 2014, the Basel 3 rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting common equity tier 1 capital and Tier 1 capital. We reported under Basel 1 (which included the Market Risk Final Rules) at December 31, 2013. Basel 3 common equity tier 1 capital and risk-weighted assets on a fully phased-in basis are non-GAAP financial measures. For reconciliations to GAAP financial measures, see above. The Corporation’s fully phased-in Basel 3 estimates and the supplementary leverage ratio are based on its current understanding of the Standardized and Advanced approaches under the Basel 3 rules. Under the Basel 3 Advanced approaches, risk-weighted assets are determined primarily for market risk and credit risk, similar to the Standardized approach, and also incorporate operational risk. Market risk capital measurements are consistent with the Standardized approach, except for securitization exposures, where the Supervisory Formula Approach is also permitted, and certain differences arising from the inclusion of the CVA capital charge in the credit risk capital measurement. Credit risk exposures are measured using internal ratings-based models to determine the applicable risk weight by estimating the probability of default, loss given default and, in certain instances, exposure at default. The internal analytical models primarily rely on internal historical default and loss experience. The calculations under Basel 3 require management to make estimates, assumptions and interpretations, including the probability of future events based on historical experience. Actual results could differ from those estimates and assumptions. These estimates assume approval by U.S. banking regulators of our internal analytical models, but do not include the benefit of the removal of the surcharge applicable to the comprehensive risk measure. Our estimates under the Basel 3 Advanced approaches may be refined over time as a result of further rulemaking or clarification by U.S. banking regulators or as our understanding and interpretation of the rules evolve. If our internal analytical models are not approved or are required to be revised, it would likely lead to an increase in our risk-weighted assets and negatively impact our capital ratios, which in some cases could be significant.

n/a = not applicable

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
Net Interest Income Excluding Trading-related Net Interest Income
(Dollars in millions)
	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
	2014			2013			Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
Net interest income (FTE basis)
As reported	$	40,821		$	43,124		$	9,865		$	10,444		$	10,226		$	10,286		$	10,999
Impact of trading-related net interest income	(3,615		)	(3,852		)	(939		)	(907		)	(864		)	(905		)	(1,046		)
Net interest income excluding trading-related net interest income ⁽¹⁾	$	37,206		$	39,272		$	8,926		$	9,537		$	9,362		$	9,381		$	9,953

Average earning assets ⁽²⁾
As reported	$	1,814,930		$	1,819,548		$	1,802,121		$	1,813,482		$	1,840,850		$	1,803,298		$	1,798,697
Impact of trading-related earning assets	(445,760		)	(468,999		)	(435,408		)	(441,661		)	(463,395		)	(442,700		)	(445,693		)
Average earning assets excluding trading-related earning assets ⁽¹⁾	$	1,369,170		$	1,350,549		$	1,366,713		$	1,371,821		$	1,377,455		$	1,360,598		$	1,353,004

Net interest yield contribution (FTE basis) ^{(2, 3)}
As reported	2.25		%	2.37		%	2.18		%	2.29		%	2.22		%	2.29		%	2.44		%
Impact of trading-related activities	0.47			0.54			0.42			0.47			0.50			0.48			0.49
Net interest yield on earning assets excluding trading-related activities ⁽¹⁾	2.72		%	2.91		%	2.60		%	2.76		%	2.72		%	2.77		%	2.93		%


⁽¹⁾	Represents a non-GAAP financial measure.


⁽²⁾	Beginning in 2014, interest-bearing deposits placed with the Federal Reserve and certain non-U.S. central banks are included in earning assets. In prior periods, these balances were included with cash and due from banks in the cash and cash equivalents line, consistent with the Consolidated Balance Sheet presentation. Prior periods have been reclassified to conform to current period presentation.


⁽³⁾	Quarterly results are 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.	10



Bank of America Corporation and Subsidiaries
Quarterly Average Balances and Interest Rates – Fully Taxable-equivalent Basis
(Dollars in millions)
	Fourth Quarter 2014						Third Quarter 2014						Fourth Quarter 2013
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Earning assets
Interest-bearing deposits with the Federal Reserve and non-U.S. central banks ⁽¹⁾	$	109,042	$	74	0.27	%	$	110,876	$	77	0.28	%	$	90,196	$	59	0.26	%
Time deposits placed and other short-term investments	9,339		41		1.73		10,457		41		1.54		15,782		48		1.21
Federal funds sold and securities borrowed or purchased under agreements to resell	217,982		238		0.43		223,978		239		0.42		203,415		304		0.59
Trading account assets	144,147		1,141		3.15		143,282		1,148		3.18		156,194		1,182		3.01
Debt securities ⁽²⁾	371,014		1,687		1.82		359,653		2,236		2.48		325,119		2,454		3.02
Loans and leases ⁽³⁾:
Residential mortgage	223,132		1,946		3.49		235,271		2,083		3.54		253,988		2,373		3.74
Home equity	86,825		809		3.70		88,590		836		3.76		95,374		954		3.98
U.S. credit card	89,381		2,086		9.26		88,866		2,093		9.34		90,057		2,125		9.36
Non-U.S. credit card	10,950		280		10.14		11,784		304		10.25		11,171		310		11.01
Direct/Indirect consumer	83,121		522		2.49		82,669		523		2.51		82,990		565		2.70
Other consumer	2,031		85		16.75		2,111		19		3.44		1,929		17		3.73
Total consumer	495,440		5,728		4.60		509,291		5,858		4.58		535,509		6,344		4.72
U.S. commercial	231,217		1,648		2.83		230,891		1,658		2.85		225,596		1,700		2.99
Commercial real estate	46,993		342		2.89		46,071		344		2.96		46,341		373		3.20
Commercial lease financing	24,238		198		3.28		24,325		212		3.48		24,468		206		3.37
Non-U.S. commercial	86,845		546		2.49		88,663		560		2.51		97,863		544		2.21
Total commercial	389,293		2,734		2.79		389,950		2,774		2.83		394,268		2,823		2.84
Total loans and leases	884,733		8,462		3.80		899,241		8,632		3.82		929,777		9,167		3.92
Other earning assets	65,864		739		4.46		65,995		710		4.27		78,214		711		3.61
Total earning assets⁽⁴⁾	1,802,121		12,382		2.74		1,813,482		13,083		2.87		1,798,697		13,925		3.08
Cash and due from banks⁽¹⁾	27,590						25,120						35,063
Other assets, less allowance for loan and lease losses	307,840						297,507						301,115
Total assets	$	2,137,551					$	2,136,109					$	2,134,875


⁽¹⁾	Beginning in 2014, interest-bearing deposits placed with the Federal Reserve and certain non-U.S. central banks are included in earning assets. In prior periods, these balances were included with cash and due from banks in the cash and cash equivalents line, consistent with the Consolidated Balance Sheet presentation. Prior periods have been reclassified to conform to current period presentation.


⁽²⁾	Beginning in 2014, yields on debt securities carried at fair value are calculated on the cost basis. Prior to 2014, yields on debt securities carried at fair value were calculated based on fair value rather than the cost basis. The use of fair value did 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 generally recognized on a cost recovery basis. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan.


⁽⁴⁾	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:



	Fourth Quarter 2014				Third Quarter 2014				Fourth Quarter 2013
Federal funds sold and securities borrowed or purchased under agreements to resell		$	14			$	10			$	15
Debt securities		(11		)		(27		)		(1		)
U.S. commercial loans and leases		(13		)		(13		)		(14		)
Net hedge expense on assets		$	(10	)		$	(30	)		$	—

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
Quarterly Average Balances and Interest Rates – Fully Taxable-equivalent Basis (continued)
(Dollars in millions)
	Fourth Quarter 2014						Third Quarter 2014						Fourth Quarter 2013
	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	$	45,621	$	1	0.01	%	$	46,803	$	1	0.01	%	$	43,665	$	5	0.05	%
NOW and money market deposit accounts	515,995		76		0.06		517,043		78		0.06		514,220		89		0.07
Consumer CDs and IRAs	61,880		51		0.33		65,579		59		0.35		74,635		96		0.51
Negotiable CDs, public funds and other deposits	30,951		23		0.29		31,806		27		0.34		29,060		29		0.39
Total U.S. interest-bearing deposits	654,447		151		0.09		661,231		165		0.10		661,580		219		0.13
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries	5,413		12		0.88		8,022		22		1.10		13,902		22		0.62
Governments and official institutions	1,647		1		0.15		1,706		1		0.15		1,734		1		0.18
Time, savings and other	57,030		73		0.51		61,331		82		0.54		58,529		72		0.49
Total non-U.S. interest-bearing deposits	64,090		86		0.53		71,059		105		0.59		74,165		95		0.51
Total interest-bearing deposits	718,537		237		0.13		732,290		270		0.15		735,745		314		0.17
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings	251,432		615		0.97		255,111		591		0.92		271,538		682		1.00
Trading account liabilities	78,173		351		1.78		84,988		392		1.83		82,393		364		1.75
Long-term debt	249,221		1,314		2.10		251,772		1,386		2.19		251,055		1,566		2.48
Total interest-bearing liabilities ⁽¹⁾	1,297,363		2,517		0.77		1,324,161		2,639		0.79		1,340,731		2,926		0.87
Noninterest-bearing sources:
Noninterest-bearing deposits	403,977						395,198						376,929
Other liabilities	192,763						178,716						183,800
Shareholders' equity	243,448						238,034						233,415
Total liabilities and shareholders' equity	$	2,137,551					$	2,136,109					$	2,134,875
Net interest spread					1.97	%					2.08	%					2.21	%
Impact of noninterest-bearing sources					0.21						0.21						0.23
Net interest income/yield on earning assets			$	9,865	2.18	%			$	10,444	2.29	%			$	10,999	2.44	%


⁽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:



	Fourth Quarter 2014				Third Quarter 2014				Fourth Quarter 2013
Consumer CDs and IRAs		$	6			$	6			$	20
Negotiable CDs, public funds and other deposits		3				3				3
Banks located in non-U.S. countries		2				9				4
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings		257				260				260
Long-term debt		(927		)		(880		)		(875		)
Net hedge income on liabilities		$	(659	)		$	(602	)		$	(588	)

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
Annual Average Balances and Interest Rates – Fully Taxable-equivalent Basis
(Dollars in millions)
	2014						2013
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Earning assets
Interest-bearing deposits with the Federal Reserve and non-U.S. central banks ⁽¹⁾	$	113,999	$	308	0.27	%	$	72,574	$	182	0.25	%
Time deposits placed and other short-term investments	11,032		170		1.54		16,066		187		1.16
Federal funds sold and securities borrowed or purchased under agreements to resell	222,483		1,039		0.47		224,331		1,229		0.55
Trading account assets	145,686		4,716		3.24		168,998		4,879		2.89
Debt securities ⁽²⁾	351,702		8,062		2.28		337,953		9,779		2.89
Loans and leases ⁽³⁾:
Residential mortgage	237,270		8,462		3.57		256,535		9,317		3.63
Home equity	89,705		3,340		3.72		100,263		3,835		3.82
U.S. credit card	88,962		8,313		9.34		90,369		8,792		9.73
Non-U.S. credit card	11,511		1,200		10.42		10,861		1,271		11.70
Direct/Indirect consumer	82,410		2,099		2.55		82,907		2,370		2.86
Other consumer	2,028		139		6.86		1,807		72		4.02
Total consumer	511,886		23,553		4.60		542,742		25,657		4.73
U.S. commercial	230,175		6,630		2.88		218,874		6,809		3.11
Commercial real estate	47,524		1,411		2.97		42,346		1,391		3.29
Commercial lease financing	24,423		837		3.43		23,863		851		3.56
Non-U.S. commercial	89,893		2,218		2.47		90,816		2,083		2.29
Total commercial	392,015		11,096		2.83		375,899		11,134		2.96
Total loans and leases	903,901		34,649		3.83		918,641		36,791		4.00
Other earning assets	66,127		2,811		4.25		80,985		2,832		3.50
Total earning assets⁽⁴⁾	1,814,930		51,755		2.85		1,819,548		55,879		3.07
Cash and due from banks ⁽¹⁾	27,079						36,440
Other assets, less allowance for loan and lease losses	303,581						307,525
Total assets	$	2,145,590					$	2,163,513


⁽¹⁾	Beginning in 2014, interest-bearing deposits placed with the Federal Reserve and certain non-U.S. central banks are included in earning assets. In prior periods, these balances were included with cash and due from banks in the cash and cash equivalents line, consistent with the Consolidated Balance Sheet presentation. Prior periods have been reclassified to conform to current period presentation.


⁽²⁾	Beginning in 2014, yields on debt securities carried at fair value are calculated on the cost basis. Prior to 2014, yields on debt securities carried at fair value were calculated based on fair value rather than the cost basis. The use of fair value did 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 generally recognized on a cost recovery basis. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan.


⁽⁴⁾	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:



	2014				2013
Federal funds sold and securities borrowed or purchased under agreements to resell		$	51			$	54
Debt securities		(53		)		(173		)
U.S. commercial loans and leases		(56		)		(84		)
Non-U.S. commercial loans and leases		—				(2		)
Net hedge expense on assets		$	(58	)		$	(205	)

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.	13



Bank of America Corporation and Subsidiaries
Annual Average Balances and Interest Rates – Fully Taxable-equivalent Basis (continued)
(Dollars in millions)
	2014						2013
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-bearing liabilities
U.S. interest-bearing deposits:
Savings	$	46,270	$	3	0.01	%	$	43,868	$	22	0.05	%
NOW and money market deposit accounts	518,894		316		0.06		506,082		413		0.08
Consumer CDs and IRAs	66,798		264		0.40		79,914		471		0.59
Negotiable CDs, public funds and other deposits	31,502		106		0.33		26,553		116		0.43
Total U.S. interest-bearing deposits	663,464		689		0.10		656,417		1,022		0.16
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries	8,744		74		0.84		12,432		80		0.64
Governments and official institutions	1,740		3		0.15		1,584		3		0.18
Time, savings and other	60,732		314		0.52		55,628		291		0.52
Total non-U.S. interest-bearing deposits	71,216		391		0.55		69,644		374		0.54
Total interest-bearing deposits	734,680		1,080		0.15		726,061		1,396		0.19
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings	257,678		2,578		1.00		301,416		2,923		0.97
Trading account liabilities	87,151		1,576		1.81		88,323		1,638		1.85
Long-term debt	253,607		5,700		2.25		263,417		6,798		2.58
Total interest-bearing liabilities ⁽¹⁾	1,333,116		10,934		0.82		1,379,217		12,755		0.92
Noninterest-bearing sources:
Noninterest-bearing deposits	389,527						363,674
Other liabilities	184,471						186,675
Shareholders' equity	238,476						233,947
Total liabilities and shareholders' equity	$	2,145,590					$	2,163,513
Net interest spread					2.03	%					2.15	%
Impact of noninterest-bearing sources					0.22						0.22
Net interest income/yield on earning assets			$	40,821	2.25	%			$	43,124	2.37	%


⁽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:



	2014				2013
NOW and money market deposit accounts		$	(1	)		$	(1	)
Consumer CDs and IRAs		44				77
Negotiable CDs, public funds and other deposits		13				13
Banks located in non-U.S. countries		20				12
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings		1,037				1,039
Long-term debt		(3,587		)		(3,562		)
Net hedge income on liabilities		$	(2,474	)		$	(2,422	)

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.	14



Bank of America Corporation and Subsidiaries
Debt Securities and Available-for-Sale Marketable Equity Securities
(Dollars in millions)
	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale debt securities
U.S. Treasury and agency securities	$	69,267	$	360	$	(32	)	$	69,595
Mortgage-backed securities:
Agency	163,592		2,040		(593		)	165,039
Agency-collateralized mortgage obligations	14,175		152		(79		)	14,248
Non-agency residential	4,244		287		(77		)	4,454
Commercial	3,931		69		—			4,000
Non-U.S. securities	6,208		33		(11		)	6,230
Corporate/Agency bonds	361		9		(2		)	368
Other taxable securities, substantially all asset-backed securities	10,774		39		(22		)	10,791
Total taxable securities	272,552		2,989		(816		)	274,725
Tax-exempt securities	9,556		12		(19		)	9,549
Total available-for-sale debt securities	282,108		3,001		(835		)	284,274
Other debt securities carried at fair value	36,524		261		(364		)	36,421
Total debt securities carried at fair value	318,632		3,262		(1,199		)	320,695
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities	59,766		486		(611		)	59,641
Total debt securities	$	378,398	$	3,748	$	(1,810	)	$	380,336
Available-for-sale marketable equity securities ⁽¹⁾	$	336	$	27	$	—		$	363

	September 30, 2014
Available-for-sale debt securities
U.S. Treasury and agency securities	$	57,491	$	107	$	(125	)	$	57,473
Mortgage-backed securities:
Agency	160,469		855		(2,163		)	159,161
Agency-collateralized mortgage obligations	14,262		86		(96		)	14,252
Non-agency residential	4,509		286		(81		)	4,714
Commercial	2,701		29		(4		)	2,726
Non-U.S. securities	6,621		39		(10		)	6,650
Corporate/Agency bonds	685		11		(2		)	694
Other taxable securities, substantially all asset-backed securities	12,047		46		(19		)	12,074
Total taxable securities	258,785		1,459		(2,500		)	257,744
Tax-exempt securities	9,106		11		(21		)	9,096
Total available-for-sale debt securities	267,891		1,470		(2,521		)	266,840
Other debt securities carried at fair value	41,602		138		(631		)	41,109
Total debt securities carried at fair value	309,493		1,608		(3,152		)	307,949
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities	60,175		126		(1,311		)	58,990
Total debt securities	$	369,668	$	1,734	$	(4,463	)	$	366,939
Available-for-sale marketable equity securities ⁽¹⁾	$	318	$	—	$	(8	)	$	310


⁽¹⁾	Classified in other assets on the Consolidated Balance Sheet.



Other Debt Securities Carried at Fair Value
(Dollars in millions)	December 31 2014		September 30 2014
U.S. Treasury and agency securities	$	1,541	$	3,180
Mortgage-backed securities:
Agency	15,704		15,711
Non-agency residential	3,745		3,717
Commercial	—		787
Non-U.S. securities ⁽¹⁾	15,132		17,405
Other taxable securities, substantially all asset-backed securities	299		309
Total	$	36,421	$	41,109


⁽¹⁾	These securities are primarily used to satisfy certain international regulatory liquidity requirements.

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.	15



Bank of America Corporation and Subsidiaries
Quarterly Results by Business Segment
(Dollars in millions)
	Fourth Quarter 2014
	Total Corporation			Consumer & Business Banking		Consumer Real Estate Services			GWIM			Global Banking			Global Markets			All Other
Net interest income (FTE basis)	$	9,865		$	4,853	$	714		$	1,407		$	2,207		$	1,032		$	(348	)
Noninterest income	9,090			2,688		460			3,195			1,850			1,338			(441		)
Total revenue, net of interest expense (FTE basis)	18,955			7,541		1,174			4,602			4,057			2,370			(789		)
Provision for credit losses	219			670		(131		)	14			(29		)	27			(332		)
Noninterest expense	14,196			4,015		1,945			3,440			1,849			2,499			448
Income (loss) before income taxes	4,540			2,856		(640		)	1,148			2,237			(156		)	(905		)
Income tax expense (benefit) (FTE basis)	1,490			1,098		(243		)	442			804			(84		)	(527		)
Net income (loss)	$	3,050		$	1,758	$	(397	)	$	706		$	1,433		$	(72	)	$	(378	)

Average
Total loans and leases	$	884,733		$	161,267	$	87,978		$	123,544		$	270,760		$	58,094		$	183,090
Total assets ⁽¹⁾	2,137,551			616,996		103,050			267,975			395,583			611,714			142,233
Total deposits	1,122,514			550,399		n/m			238,835			264,027			n/m			21,481
Period end
Total loans and leases	$	881,391		$	163,416	$	87,972		$	125,431		$	272,572		$	59,388		$	172,612
Total assets ⁽¹⁾	2,104,534			622,378		103,730			276,587			379,513			579,514			142,812
Total deposits	1,118,936			556,568		n/m			245,391			251,344			n/m			18,898

	Third Quarter 2014
	Total Corporation			Consumer & Business Banking		Consumer Real Estate Services			GWIM			Global Banking			Global Markets			All Other
Net interest income (FTE basis)	$	10,444		$	4,952	$	719		$	1,459		$	2,250		$	994		$	70
Noninterest income	10,990			2,560		373			3,207			1,843			3,148			(141		)
Total revenue, net of interest expense (FTE basis)	21,434			7,512		1,092			4,666			4,093			4,142			(71		)
Provision for credit losses	636			617		286			(15		)	(32		)	45			(265		)
Noninterest expense	20,142			3,972		7,271			3,403			1,905			3,335			256
Income (loss) before income taxes	656			2,923		(6,465		)	1,278			2,220			762			(62		)
Income tax expense (benefit) (FTE basis)	888			1,062		(1,283		)	465			807			389			(552		)
Net income (loss)	$	(232	)	$	1,861	$	(5,182	)	$	813		$	1,413		$	373		$	490

Average
Total loans and leases	$	899,241		$	160,879	$	87,971		$	121,002		$	267,047		$	62,939		$	199,403
Total assets ⁽¹⁾	2,136,109			611,075		104,451			267,840			395,185			599,887			157,671
Total deposits	1,127,488			545,116		n/m			239,352			265,721			n/m			29,268
Period end
Total loans and leases	$	891,315		$	161,345	$	87,962		$	122,395		$	268,612		$	62,645		$	188,356
Total assets ⁽¹⁾	2,123,613			612,684		103,309			267,753			386,919			598,668			154,280
Total deposits	1,111,981			546,791		n/m			238,710			255,177			n/m			25,109

	Fourth Quarter 2013
	Total Corporation			Consumer & Business Banking		Consumer Real Estate Services			GWIM			Global Banking			Global Markets			All Other
Net interest income (FTE basis)	$	10,999		$	4,947	$	716		$	1,485		$	2,301		$	1,138		$	412
Noninterest income	10,702			2,549		996			2,994			2,002			2,060			101
Total revenue, net of interest expense (FTE basis)	21,701			7,496		1,712			4,479			4,303			3,198			513
Provision for credit losses	336			427		(474		)	26			441			104			(188		)
Noninterest expense	17,307			4,001		3,752			3,262			1,943			3,274			1,075
Income (loss) before income taxes	4,058			3,068		(1,566		)	1,191			1,919			(180		)	(374		)
Income tax expense (benefit) (FTE basis)	619			1,076		(531		)	413			664			(133		)	(870		)
Net income (loss)	$	3,439		$	1,992	$	(1,035	)	$	778		$	1,255		$	(47	)	$	496

Average
Total loans and leases	$	929,777		$	163,157	$	89,687		$	115,546		$	268,864		$	66,496		$	226,027
Total assets ⁽¹⁾	2,134,875			590,046		113,581			268,683			379,927			603,012			179,626
Total deposits	1,112,674			528,733		n/m			240,395			259,193			n/m			34,306
Period end
Total loans and leases	$	928,233		$	165,094	$	89,753		$	115,846		$	269,469		$	67,381		$	220,690
Total assets ⁽¹⁾	2,102,273			593,014		113,391			274,113			378,659			575,472			167,624
Total deposits	1,119,271			531,608		n/m			244,901			265,171			n/m			27,912


⁽¹⁾	Total assets include asset allocations to match liabilities (i.e., deposits).

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	16



Bank of America Corporation and Subsidiaries
Annual Results by Business Segment
(Dollars in millions)
	Year Ended December 31, 2014
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services			GWIM		Global Banking		Global Markets		All Other
Net interest income (FTE basis)	$	40,821	$	19,685	$	2,831		$	5,836	$	8,999	$	3,986	$	(516	)
Noninterest income	44,295		10,177		2,017			12,568		7,599		12,133		(199		)
Total revenue, net of interest expense (FTE basis)	85,116		29,862		4,848			18,404		16,598		16,119		(715		)
Provision for credit losses	2,275		2,633		160			14		336		110		(978		)
Noninterest expense	75,117		15,911		23,226			13,647		7,681		11,771		2,881
Income (loss) before income taxes	7,724		11,318		(18,538		)	4,743		8,581		4,238		(2,618		)
Income tax expense (benefit) (FTE basis)	2,891		4,222		(5,143		)	1,769		3,146		1,519		(2,622		)
Net income (loss)	$	4,833	$	7,096	$	(13,395	)	$	2,974	$	5,435	$	2,719	$	4

Average
Total loans and leases	$	903,901	$	161,109	$	88,277		$	119,775	$	270,164	$	62,064	$	202,512
Total assets ⁽¹⁾	2,145,590		607,895		106,885			269,279		393,721		607,538		160,272
Total deposits	1,124,207		543,441		n/m			240,242		261,312		n/m		30,255
Period end
Total loans and leases	$	881,391	$	163,416	$	87,972		$	125,431	$	272,572	$	59,388	$	172,612
Total assets ⁽¹⁾	2,104,534		622,378		103,730			276,587		379,513		579,514		142,812
Total deposits	1,118,936		556,568		n/m			245,391		251,344		n/m		18,898

	Year Ended December 31, 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services			GWIM		Global Banking		Global Markets		All Other
Net interest income (FTE basis)	$	43,124	$	20,050	$	2,890		$	6,064	$	8,914	$	4,224	$	982
Noninterest income	46,677		9,814		4,825			11,726		7,565		11,166		1,581
Total revenue, net of interest expense (FTE basis)	89,801		29,864		7,715			17,790		16,479		15,390		2,563
Provision for credit losses	3,556		3,107		(156		)	56		1,075		140		(666		)
Noninterest expense	69,214		16,260		15,815			13,033		7,551		11,996		4,559
Income (loss) before income taxes	17,031		10,497		(7,944		)	4,701		7,853		3,254		(1,330		)
Income tax expense (benefit) (FTE basis)	5,600		3,850		(2,913		)	1,724		2,880		2,101		(2,042		)
Net income (loss)	$	11,431	$	6,647	$	(5,031	)	$	2,977	$	4,973	$	1,153	$	712

Average
Total loans and leases	$	918,641	$	164,574	$	90,278		$	111,023	$	257,249	$	60,057	$	235,460
Total assets ⁽¹⁾	2,163,513		580,703		120,556			270,789		342,772		632,681		216,012
Total deposits	1,089,735		518,904		n/m			242,161		236,765		n/m		34,919
Period end
Total loans and leases	$	928,233	$	165,094	$	89,753		$	115,846	$	269,469	$	67,381	$	220,690
Total assets ⁽¹⁾	2,102,273		593,014		113,391			274,113		378,659		575,472		167,624
Total deposits	1,119,271		531,608		n/m			244,901		265,171		n/m		27,912


⁽¹⁾	Total assets include asset allocations to match liabilities (i.e., deposits).

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	17



Bank of America Corporation and Subsidiaries
Consumer & Business Banking Segment Results
(Dollars in millions)
	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
	2014			2013			Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
Net interest income (FTE basis)	$	19,685		$	20,050		$	4,853		$	4,952		$	4,930		$	4,950		$	4,947
Noninterest income:
Card income	4,902			4,804			1,339			1,234			1,167			1,162			1,236
Service charges	4,365			4,207			1,093			1,136			1,091			1,045			1,097
All other income	910			803			256			190			183			281			216
Total noninterest income	10,177			9,814			2,688			2,560			2,441			2,488			2,549
Total revenue, net of interest expense (FTE basis)	29,862			29,864			7,541			7,512			7,371			7,438			7,496

Provision for credit losses	2,633			3,107			670			617			534			812			427

Noninterest expense	15,911			16,260			4,015			3,972			3,976			3,948			4,001
Income before income taxes	11,318			10,497			2,856			2,923			2,861			2,678			3,068
Income tax expense (FTE basis)	4,222			3,850			1,098			1,062			1,059			1,003			1,076
Net income	$	7,096		$	6,647		$	1,758		$	1,861		$	1,802		$	1,675		$	1,992

Net interest yield (FTE basis)	3.48		%	3.72		%	3.35		%	3.45		%	3.50		%	3.63		%	3.58		%
Return on average allocated capital ⁽¹⁾	24			22			24			25			25			23			26
Efficiency ratio (FTE basis)	53.28			54.44			53.26			52.87			53.92			53.08			53.37

Balance Sheet
Average
Total loans and leases	$	161,109		$	164,574		$	161,267		$	160,879		$	160,240		$	162,061		$	163,157
Total earning assets⁽²⁾	565,700			539,241			574,351			569,084			565,712			553,386			548,185
Total assets ⁽²⁾	607,895			580,703			616,996			611,075			607,829			595,407			590,046
Total deposits	543,441			518,904			550,399			545,116			543,557			534,501			528,733
Allocated capital ⁽¹⁾	29,500			30,000			29,500			29,500			29,500			29,500			30,000

Period end
Total loans and leases	$	163,416		$	165,094		$	163,416		$	161,345		$	161,142		$	160,127		$	165,094
Total earning assets⁽²⁾	579,283			550,698			579,283			570,678			570,171			570,964			550,698
Total assets ⁽²⁾	622,378			593,014			622,378			612,684			612,178			613,093			593,014
Total deposits	556,568			531,608			556,568			546,791			545,530			552,153			531,608

⁽¹⁾

Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)


⁽²⁾	Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	18



Bank of America Corporation and Subsidiaries
Consumer & Business Banking Annual Results
(Dollars in millions)
	Year Ended December 31, 2014
	Total Consumer & Business Banking			Deposits			Consumer Lending
Net interest income (FTE basis)	$	19,685		$	10,259		$	9,426
Noninterest income:
Card income	4,902			68			4,834
Service charges	4,365			4,364			1
All other income	910			552			358
Total noninterest income	10,177			4,984			5,193
Total revenue, net of interest expense (FTE basis)	29,862			15,243			14,619

Provision for credit losses	2,633			254			2,379

Noninterest expense	15,911			10,448			5,463
Income before income taxes	11,318			4,541			6,777
Income tax expense (FTE basis)	4,222			1,694			2,528
Net income	$	7,096		$	2,847		$	4,249

Net interest yield (FTE basis)	3.48		%	1.87		%	6.77		%
Return on average allocated capital ⁽¹⁾	24			17			33
Efficiency ratio (FTE basis)	53.28			68.54			37.38

Balance Sheet
Average
Total loans and leases	$	161,109		$	22,388		$	138,721
Total earning assets ⁽²⁾	565,700			548,096			139,145
Total assets ⁽²⁾	607,895			580,857			148,579
Total deposits	543,441			542,589			n/m
Allocated capital ⁽¹⁾	29,500			16,500			13,000

Period end
Total loans and leases	$	163,416		$	22,284		$	141,132
Total earning assets ⁽²⁾	579,283			560,130			141,216
Total assets ⁽²⁾	622,378			593,485			150,956
Total deposits	556,568			555,539			n/m

	Year Ended December 31, 2013
	Total Consumer & Business Banking			Deposits			Consumer Lending
Net interest income (FTE basis)	$	20,050		$	9,807		$	10,243
Noninterest income:
Card income	4,804			60			4,744
Service charges	4,207			4,206			1
All other income	803			509			294
Total noninterest income	9,814			4,775			5,039
Total revenue, net of interest expense (FTE basis)	29,864			14,582			15,282

Provision for credit losses	3,107			299			2,808

Noninterest expense	16,260			10,930			5,330
Income before income taxes	10,497			3,353			7,144
Income tax expense (FTE basis)	3,850			1,230			2,620
Net income	$	6,647		$	2,123		$	4,524

Net interest yield (FTE basis)	3.72		%	1.88		%	7.18		%
Return on average allocated capital ⁽¹⁾	22			14			31
Efficiency ratio (FTE basis)	54.44			74.95			34.88

Balance Sheet
Average
Total loans and leases	$	164,574		$	22,445		$	142,129
Total earning assets ⁽²⁾	539,241			522,938			142,721
Total assets ⁽²⁾	580,703			555,687			151,434
Total deposits	518,904			518,407			n/m
Allocated capital ⁽¹⁾	30,000			15,400			14,600

Period end
Total loans and leases	$	165,094		$	22,578		$	142,516
Total earning assets ⁽²⁾	550,698			535,061			143,917
Total assets ⁽²⁾	593,014			567,918			153,376
Total deposits	531,608			530,860			n/m

For footnotes see page 21.

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	19



Bank of America Corporation and Subsidiaries
Consumer & Business Banking Quarterly Results
(Dollars in millions)
	Fourth Quarter 2014
	Total Consumer & Business Banking			Deposits			Consumer Lending
Net interest income (FTE basis)	$	4,853		$	2,523		$	2,330
Noninterest income:
Card income	1,339			17			1,322
Service charges	1,093			1,093			—
All other income	256			161			95
Total noninterest income	2,688			1,271			1,417
Total revenue, net of interest expense (FTE basis)	7,541			3,794			3,747

Provision for credit losses	670			60			610

Noninterest expense	4,015			2,663			1,352
Income before income taxes	2,856			1,071			1,785
Income tax expense (FTE basis)	1,098			413			685
Net income	$	1,758		$	658		$	1,100

Net interest yield (FTE basis)	3.35		%	1.81		%	6.64		%
Return on average allocated capital ⁽¹⁾	24			16			34
Efficiency ratio (FTE basis)	53.26			70.19			36.11

Balance Sheet
Average
Total loans and leases	$	161,267		$	22,224		$	139,043
Total earning assets ⁽²⁾	574,351			554,424			139,130
Total assets ⁽²⁾	616,996			587,463			148,736
Total deposits	550,399			549,340			n/m
Allocated capital ⁽¹⁾	29,500			16,500			13,000

Period end
Total loans and leases	$	163,416		$	22,284		$	141,132
Total earning assets ⁽²⁾	579,283			560,130			141,216
Total assets ⁽²⁾	622,378			593,485			150,956
Total deposits	556,568			555,539			n/m

	Third Quarter 2014
	Total Consumer & Business Banking			Deposits			Consumer Lending
Net interest income (FTE basis)	$	4,952		$	2,592		$	2,360
Noninterest income:
Card income	1,234			17			1,217
Service charges	1,136			1,136			—
All other income	190			146			44
Total noninterest income	2,560			1,299			1,261
Total revenue, net of interest expense (FTE basis)	7,512			3,891			3,621

Provision for credit losses	617			61			556

Noninterest expense	3,972			2,555			1,417
Income before income taxes	2,923			1,275			1,648
Income tax expense (FTE basis)	1,062			464			598
Net income	$	1,861		$	811		$	1,050

Net interest yield (FTE basis)	3.45		%	1.87		%	6.75		%
Return on average allocated capital ⁽¹⁾	25			19			32
Efficiency ratio (FTE basis)	52.87			65.69			39.10

Balance Sheet
Average
Total loans and leases	$	160,879		$	22,314		$	138,565
Total earning assets ⁽²⁾	569,084			550,136			138,756
Total assets ⁽²⁾	611,075			582,637			148,246
Total deposits	545,116			544,274			n/m
Allocated capital ⁽¹⁾	29,500			16,500			13,000

Period end
Total loans and leases	$	161,345		$	22,394		$	138,951
Total earning assets ⁽²⁾	570,678			551,501			139,038
Total assets ⁽²⁾	612,684			583,827			148,718
Total deposits	546,791			545,696			n/m

For footnotes see page 21.

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	20



Bank of America Corporation and Subsidiaries
Consumer & Business Banking Quarterly Results (continued)
(Dollars in millions)
	Fourth Quarter 2013
	Total Consumer & Business Banking			Deposits			Consumer Lending
Net interest income (FTE basis)	$	4,947		$	2,491		$	2,456
Noninterest income:
Card income	1,236			15			1,221
Service charges	1,097			1,097			—
All other income	216			164			52
Total noninterest income	2,549			1,276			1,273
Total revenue, net of interest expense (FTE basis)	7,496			3,767			3,729

Provision for credit losses	427			105			322

Noninterest expense	4,001			2,625			1,376
Income before income taxes	3,068			1,037			2,031
Income tax expense (FTE basis)	1,076			365			711
Net income	$	1,992		$	672		$	1,320

Net interest yield (FTE basis)	3.58		%	1.86		%	6.87		%
Return on average allocated capital ⁽¹⁾	26			17			36
Efficiency ratio (FTE basis)	53.37			69.66			36.92

Balance Sheet
Average
Total loans and leases	$	163,157		$	22,353		$	140,804
Total earning assets ⁽²⁾	548,185			532,361			141,854
Total assets ⁽²⁾	590,046			565,234			150,842
Total deposits	528,733			528,142			n/m
Allocated capital ⁽¹⁾	30,000			15,400			14,600

Period end
Total loans and leases	$	165,094		$	22,578		$	142,516
Total earning assets ⁽²⁾	550,698			535,061			143,917
Total assets ⁽²⁾	593,014			567,918			153,376
Total deposits	531,608			530,860			n/m

⁽¹⁾


⁽²⁾	For presentation purposes, in segments or businesses where the total of liabilities and equity exceeds assets, the Corporation allocates assets from All Other to match the segments' and businesses' liabilities and allocated shareholders' equity. As a result, total earning assets and total assets of the businesses may not equal total Consumer & Business Banking.

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	21



Bank of America Corporation and Subsidiaries
Consumer & Business Banking Key Indicators
(Dollars in millions)
	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
	2014			2013			Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
Average deposit balances
Checking	$	261,040		$	238,650		$	268,178		$	262,894		$	259,922		$	252,978		$	247,240
Savings	44,635			42,164			43,974			45,142			45,796			43,617			42,138
MMS	173,017			161,889			177,606			173,375			171,587			169,407			166,812
CDs and IRAs	61,266			71,815			56,935			60,162			62,807			65,265			68,186
Non-U.S. and other	3,483			4,386			3,706			3,543			3,445			3,234			4,357
Total average deposit balances	$	543,441		$	518,904		$	550,399		$	545,116		$	543,557		$	534,501		$	528,733

Deposit spreads (excludes noninterest costs)
Checking	2.03		%	2.02		%	2.03		%	2.03		%	2.03		%	2.02		%	2.01		%
Savings	2.31			2.21			2.32			2.32			2.31			2.29			2.23
MMS	1.16			1.07			1.19			1.17			1.15			1.13			1.11
CDs and IRAs	0.50			0.52			0.51			0.50			0.49			0.50			0.50
Non-U.S. and other	0.45			0.95			0.40			0.40			0.42			0.62			0.85
Total deposit spreads	1.59			1.52			1.62			1.60			1.59			1.56			1.54

Client brokerage assets	$	113,763		$	96,048		$	113,763		$	108,533		$	105,926		$	100,206		$	96,048

Online banking active accounts (units in thousands)	30,904			29,950			30,904			30,821			30,429			30,470			29,950
Mobile banking active accounts (units in thousands)	16,539			14,395			16,539			16,107			15,475			14,986			14,395
Banking centers	4,855			5,151			4,855			4,947			5,023			5,095			5,151
ATMs	15,838			16,259			15,838			15,675			15,976			16,214			16,259

Total U.S. credit card ⁽¹⁾
Loans
Average credit card outstandings	$	88,962		$	90,369		$	89,381		$	88,866		$	88,058		$	89,545		$	90,057
Ending credit card outstandings	91,879			92,338			91,879			89,026			89,020			87,692			92,338
Credit quality
Net charge-offs	$	2,638		$	3,376		$	612		$	625		$	683		$	718		$	724
	2.96		%	3.74		%	2.71		%	2.79		%	3.11		%	3.25		%	3.19		%
30+ delinquency	$	1,701		$	2,074		$	1,701		$	1,702		$	1,698		$	1,878		$	2,074
	1.85		%	2.25		%	1.85		%	1.91		%	1.91		%	2.14		%	2.25		%
90+ delinquency	$	866		$	1,053		$	866		$	831		$	868		$	966		$	1,053
	0.94		%	1.14		%	0.94		%	0.93		%	0.98		%	1.10		%	1.14		%
Other Total U.S. credit card indicators ⁽¹⁾
Gross interest yield	9.35		%	9.73		%	9.26		%	9.34		%	9.30		%	9.48		%	9.36		%
Risk adjusted margin	9.44			8.68			9.96			9.33			8.97			9.49			9.11
New accounts (in thousands)	4,541			3,911			1,184			1,202			1,128			1,027			999
Purchase volumes	$	212,088		$	205,914		$	55,858		$	53,784		$	53,583		$	48,863		$	54,514

Debit card data
Purchase volumes	$	272,576		$	267,087		$	69,204		$	67,990		$	69,492		$	65,890		$	68,000


⁽¹⁾	In addition to the U.S. credit card portfolio in Consumer & Business Banking, the remaining U.S. credit card portfolio is in GWIM.

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.	22



Bank of America Corporation and Subsidiaries
Consumer Real Estate Services Segment Results
(Dollars in millions; except as noted)
	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
	2014			2013			Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
Net interest income (FTE basis)	$	2,831		$	2,890		$	714		$	719		$	697		$	701		$	716
Noninterest income:
Mortgage banking income	1,866			4,585			435			357			605			469			913
All other income	151			240			25			16			88			22			83
Total noninterest income	2,017			4,825			460			373			693			491			996
Total revenue, net of interest expense (FTE basis)	4,848			7,715			1,174			1,092			1,390			1,192			1,712

Provision for credit losses	160			(156		)	(131		)	286			(20		)	25			(474		)

Noninterest expense	23,226			15,815			1,945			7,271			5,892			8,118			3,752
Loss before income taxes	(18,538		)	(7,944		)	(640		)	(6,465		)	(4,482		)	(6,951		)	(1,566		)
Income tax benefit (FTE basis)	(5,143		)	(2,913		)	(243		)	(1,283		)	(1,686		)	(1,931		)	(531		)
Net loss	$	(13,395	)	$	(5,031	)	$	(397	)	$	(5,182	)	$	(2,796	)	$	(5,020	)	$	(1,035	)

Net interest yield (FTE basis)	3.06		%	2.85		%	3.11		%	3.13		%	2.98		%	3.05		%	2.89		%

Balance Sheet
Average
Total loans and leases	$	88,277		$	90,278		$	87,978		$	87,971		$	88,257		$	88,914		$	89,687
Total earning assets	92,371			101,420			91,187			91,244			93,797			93,290			98,220
Total assets	106,885			120,556			103,050			104,451			109,585			110,562			113,581
Allocated capital ⁽¹⁾	23,000			24,000			23,000			23,000			23,000			23,000			24,000

Period end
Total loans and leases	$	87,972		$	89,753		$	87,972		$	87,962		$	88,156		$	88,355		$	89,753
Total earning assets	91,803			97,163			91,803			91,973			92,291			92,937			97,163
Total assets	103,730			113,391			103,730			103,309			107,634			112,250			113,391

Period end (in billions)
Mortgage servicing portfolio ⁽²⁾	$	693.0		$	810.0		$	693.0		$	722.0		$	760.0		$	780.0		$	810.0


⁽¹⁾	Allocated capital is a non-GAAP financial measure. The Corporation believes the use of this non-GAAP financial measure provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)


⁽²⁾	Includes servicing of residential mortgage loans, home equity lines of credit and home equity loans.

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	23



Bank of America Corporation and Subsidiaries
Consumer Real Estate Services Annual Results ⁽¹⁾
(Dollars in millions)
	Year Ended December 31, 2014
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	2,831		$	1,315		$	1,516
Noninterest income:
Mortgage banking income	1,866			813			1,053
All other income	151			40			111
Total noninterest income	2,017			853			1,164
Total revenue, net of interest expense (FTE basis)	4,848			2,168			2,680

Provision for credit losses	160			33			127

Noninterest expense	23,226			2,587			20,639
Loss before income taxes	(18,538		)	(452		)	(18,086		)
Income tax benefit (FTE basis)	(5,143		)	(169		)	(4,974		)
Net loss	$	(13,395	)	$	(283	)	$	(13,112	)

Balance Sheet
Average
Total loans and leases	$	88,277		$	52,336		$	35,941
Total earning assets ⁽²⁾	92,371			54,778			37,593
Total assets ⁽²⁾	106,885			54,751			52,134
Allocated capital ⁽³⁾	23,000			6,000			17,000

Period end
Total loans and leases	$	87,972		$	54,917		$	33,055
Total earning assets ⁽²⁾	91,803			57,881			33,922
Total assets ⁽²⁾	103,730			57,772			45,958

	Year Ended December 31, 2013
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	2,890		$	1,349		$	1,541
Noninterest income:
Mortgage banking income	4,585			1,916			2,669
All other income (loss)	240			(6		)	246
Total noninterest income	4,825			1,910			2,915
Total revenue, net of interest expense (FTE basis)	7,715			3,259			4,456

Provision for credit losses	(156		)	127			(283		)

Noninterest expense	15,815			3,334			12,481
Loss before income taxes	(7,944		)	(202		)	(7,742		)
Income tax benefit (FTE basis)	(2,913		)	(74		)	(2,839		)
Net loss	$	(5,031	)	$	(128	)	$	(4,903	)

Balance Sheet
Average
Total loans and leases	$	90,278		$	47,675		$	42,603
Total earning assets ⁽²⁾	101,420			53,148			48,272
Total assets ⁽²⁾	120,556			53,426			67,130
Allocated capital ⁽³⁾	24,000			6,000			18,000

Period end
Total loans and leases	$	89,753		$	51,021		$	38,732
Total earning assets ⁽²⁾	97,163			54,071			43,092
Total assets ⁽²⁾	113,391			53,933			59,458

For footnotes see page 26.

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	24



Bank of America Corporation and Subsidiaries
Consumer Real Estate Services Quarterly Results ⁽¹⁾
(Dollars in millions)
	Fourth Quarter 2014
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	714		$	325		$	389
Noninterest income:
Mortgage banking income	435			193			242
All other income	25			17			8
Total noninterest income	460			210			250
Total revenue, net of interest expense (FTE basis)	1,174			535			639

Provision for credit losses	(131		)	(17		)	(114		)

Noninterest expense	1,945			582			1,363
Loss before income taxes	(640		)	(30		)	(610		)
Income tax benefit (FTE basis)	(243		)	(13		)	(230		)
Net loss	$	(397	)	$	(17	)	$	(380	)

Balance Sheet
Average
Total loans and leases	$	87,978		$	54,205		$	33,773
Total earning assets ⁽²⁾	91,187			56,658			34,529
Total assets ⁽²⁾	103,050			56,544			46,506
Allocated capital ⁽³⁾	23,000			6,000			17,000

Period end
Total loans and leases	$	87,972		$	54,917		$	33,055
Total earning assets ⁽²⁾	91,803			57,881			33,922
Total assets ⁽²⁾	103,730			57,772			45,958

	Third Quarter 2014
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	719		$	332		$	387
Noninterest income:
Mortgage banking income	357			206			151
All other income (loss)	16			(2		)	18
Total noninterest income	373			204			169
Total revenue, net of interest expense (FTE basis)	1,092			536			556

Provision for credit losses	286			18			268

Noninterest expense	7,271			626			6,645
Loss before income taxes	(6,465		)	(108		)	(6,357		)
Income tax benefit (FTE basis)	(1,283		)	(39		)	(1,244		)
Net loss	$	(5,182	)	$	(69	)	$	(5,113	)

Balance Sheet
Average
Total loans and leases	$	87,971		$	52,733		$	35,238
Total earning assets ⁽²⁾	91,244			55,214			38,330
Total assets ⁽²⁾	104,451			55,295			51,455
Allocated capital ⁽³⁾	23,000			6,000			17,000

Period end
Total loans and leases	$	87,962		$	53,478		$	34,484
Total earning assets ⁽²⁾	91,973			56,690			40,869
Total assets ⁽²⁾	103,309			56,042			52,852

For footnotes see page 26.

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	25



Bank of America Corporation and Subsidiaries
Consumer Real Estate Services Quarterly Results ⁽¹⁾(continued)
(Dollars in millions)
	Fourth Quarter 2013
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	716		$	330		$	386
Noninterest income:
Mortgage banking income	913			220			693
All other income	83			17			66
Total noninterest income	996			237			759
Total revenue, net of interest expense (FTE basis)	1,712			567			1,145

Provision for credit losses	(474		)	(18		)	(456		)

Noninterest expense	3,752			759			2,993
Loss before income taxes	(1,566		)	(174		)	(1,392		)
Income tax benefit (FTE basis)	(531		)	(64		)	(467		)
Net loss	$	(1,035	)	$	(110	)	$	(925	)

Balance Sheet
Average
Total loans and leases	$	89,687		$	49,706		$	39,981
Total earning assets ⁽²⁾	98,220			53,052			45,168
Total assets ⁽²⁾	113,581			52,929			60,652
Allocated capital ⁽³⁾	24,000			6,000			18,000

Period end
Total loans and leases	$	89,753		$	51,021		$	38,732
Total earning assets ⁽²⁾	97,163			54,071			43,092
Total assets ⁽²⁾	113,391			53,933			59,458


⁽¹⁾	Consumer Real Estate Services includes Home Loans and Legacy Assets & Servicing. The results of certain mortgage servicing rights activities, including net hedge results, together with any related assets or liabilities used as economic hedges, are included in Legacy Assets & Servicing.


⁽²⁾	For presentation purposes, in segments or businesses where the total of liabilities and equity exceeds assets, the Corporation allocates assets from All Other to match the segments' and businesses' liabilities and allocated shareholders' equity. As a result, total earning assets and total assets of the businesses may not equal total Consumer Real Estate Services.


⁽³⁾	Allocated capital is a non-GAAP financial measure. The Corporation believes the use of this non-GAAP financial measure provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	26



Bank of America Corporation and Subsidiaries
Consumer Real Estate Services Key Indicators
(Dollars in millions, except as noted)
	Year Ended December 31								Fourth Quarter 2014				Third Quarter 2014				Second Quarter 2014				First Quarter 2014				Fourth Quarter 2013
	2014				2013				Fourth Quarter 2014				Third Quarter 2014				Second Quarter 2014				First Quarter 2014				Fourth Quarter 2013
Mortgage servicing rights at fair value rollforward:
Balance, beginning of period	$	5,042			$	5,716			$	3,986			$	4,134			$	4,577			$	5,042			$	5,058
Net additions (sales)	275				(1,572		)		73				140				32				30				(197		)
Amortization of expected cash flows ⁽¹⁾	(818		)		(1,043		)		(198		)		(201		)		(209		)		(210		)		(229		)
Other changes in mortgage servicing rights fair value ⁽²⁾	(1,228		)		1,941				(590		)		(87		)		(266		)		(285		)		410
Balance, end of period ⁽³⁾	$	3,271			$	5,042			$	3,271			$	3,986			$	4,134			$	4,577			$	5,042

Capitalized mortgage servicing rights (% of loans serviced for investors)	69			bps	92			bps	69			bps	81			bps	82			bps	87			bps	92			bps
Mortgage loans serviced for investors (in billions)	$	474			$	550			$	474			$	491			$	505			$	527			$	550

Loan production:
Total ⁽⁴⁾
First mortgage	$	43,290			$	83,421			$	11,616			$	11,725			$	11,099			$	8,850			$	11,624
Home equity	11,233				6,361				3,420				3,225				2,604				1,984				1,915
Consumer Real Estate Services
First mortgage	$	32,340			$	66,913			$	8,316			$	8,861			$	8,461			$	6,702			$	9,302
Home equity	10,286				5,498				3,129				2,970				2,396				1,791				1,674

Mortgage banking income
Production income:
Core production revenue	$	1,181			$	2,543			$	297			$	293			$	318			$	273			$	404
Representations and warranties provision	(682		)		(840		)		(250		)		(167		)		(87		)		(178		)		(70		)
Total production income	499				1,703				47				126				231				95				334
Servicing income:
Servicing fees	1,884				3,030				444				451				475				514				629
Amortization of expected cash flows ⁽¹⁾	(818		)		(1,043		)		(198		)		(201		)		(209		)		(210		)		(229		)
Fair value changes of mortgage servicing rights, net of risk management activities used to hedge certain market risks ⁽⁵⁾	294				867				142				(19		)		105				66				174
Other servicing-related revenue	7				28				—				—				3				4				5
Total net servicing income	1,367				2,882				388				231				374				374				579
Total Consumer Real Estate Services mortgage banking income	1,866				4,585				435				357				605				469				913
Other business segments' mortgage banking loss ⁽⁶⁾	(303		)		(711		)		(83		)		(85		)		(78		)		(57		)		(65		)
Total consolidated mortgage banking income	$	1,563			$	3,874			$	352			$	272			$	527			$	412			$	848


⁽¹⁾	Represents the net change in fair value of the MSR asset due to the recognition of modeled cash flows.

⁽²⁾

These amounts reflect the changes in modeled mortgage servicing rights fair value primarily due to observed changes in interest rates, volatility, spreads and the shape of the forward swap curve. In addition, these amounts reflect periodic adjustments to the valuation model to reflect changes in the modeled relationship between inputs and their impact on projected cash flows, changes in certain cash flow assumptions such as cost to service and ancillary income per loan, changes in option-adjusted spread rate assumptions and the impact of periodic recalibrations of the model to reflect changes in the relationship between market interest rate spreads and projected cash flows.


⁽³⁾	Does not include certain non-U.S. residential mortgage MSR balances, which are recorded in Global Markets.


⁽⁴⁾	In addition to loan production in Consumer Real Estate Services, the remaining first mortgage and home equity loan production is primarily in GWIM.


⁽⁵⁾	Includes gains and losses on sales of mortgage servicing rights.


⁽⁶⁾	Includes the effect of transfers of mortgage loans from Consumer Real Estate Services to the asset and liability management portfolio included in All Other.

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	27



Bank of America Corporation and Subsidiaries
Global Wealth & Investment Management Segment Results
(Dollars in millions)
	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
	2014			2013			Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
Net interest income (FTE basis)	$	5,836		$	6,064		$	1,407		$	1,459		$	1,485		$	1,485		$	1,485
Noninterest income:
Investment and brokerage services	10,722			9,709			2,763			2,713			2,642			2,604			2,524
All other income	1,846			2,017			432			494			462			458			470
Total noninterest income	12,568			11,726			3,195			3,207			3,104			3,062			2,994
Total revenue, net of interest expense (FTE basis)	18,404			17,790			4,602			4,666			4,589			4,547			4,479

Provision for credit losses	14			56			14			(15		)	(8		)	23			26

Noninterest expense	13,647			13,033			3,440			3,403			3,445			3,359			3,262
Income before income taxes	4,743			4,701			1,148			1,278			1,152			1,165			1,191
Income tax expense (FTE basis)	1,769			1,724			442			465			426			436			413
Net income	$	2,974		$	2,977		$	706		$	813		$	726		$	729		$	778

Net interest yield (FTE basis)	2.33		%	2.41		%	2.23		%	2.32		%	2.38		%	2.38		%	2.37		%
Return on average allocated capital ⁽¹⁾	25			30			23			27			24			25			31
Efficiency ratio (FTE basis)	74.15			73.26			74.77			72.94			75.07			73.86			72.83

Balance sheet
Average
Total loans and leases	$	119,775		$	111,023		$	123,544		$	121,002		$	118,512		$	115,945		$	115,546
Total earning assets ⁽²⁾	250,747			251,395			249,872			249,738			249,893			253,538			248,156
Total assets ⁽²⁾	269,279			270,789			267,975			267,840			268,294			273,081			268,683
Total deposits	240,242			242,161			238,835			239,352			240,042			242,792			240,395
Allocated capital ⁽¹⁾	12,000			10,000			12,000			12,000			12,000			12,000			10,000

Period end
Total loans and leases	$	125,431		$	115,846		$	125,431		$	122,395		$	120,187		$	116,482		$	115,846
Total earning assets ⁽²⁾	258,219			254,031			258,219			249,586			247,180			254,802			254,031
Total assets ⁽²⁾	276,587			274,113			276,587			267,753			265,582			274,234			274,113
Total deposits	245,391			244,901			245,391			238,710			237,046			244,051			244,901

⁽¹⁾


⁽²⁾	Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	28



Bank of America Corporation and Subsidiaries
Global Wealth & Investment Management Key Indicators
(Dollars in millions, except as noted)
	Year Ended December 31				Fourth Quarter 2014			Third Quarter 2014		Second Quarter 2014		First Quarter 2014			Fourth Quarter 2013
	2014		2013		Fourth Quarter 2014			Third Quarter 2014		Second Quarter 2014		First Quarter 2014			Fourth Quarter 2013
Revenues
Merrill Lynch Global Wealth Management	$	15,256	$	14,771	$	3,827		$	3,874	$	3,791	$	3,764		$	3,703
U.S. Trust	3,084		2,953		758			775		783		768			762
Other ⁽¹⁾	64		66		17			17		15		15			14
Total revenues	$	18,404	$	17,790	$	4,602		$	4,666	$	4,589	$	4,547		$	4,479

Client Balances
Client Balances by Business
Merrill Lynch Global Wealth Management	$	2,033,801	$	1,916,803	$	2,033,801		$	2,004,391	$	2,017,051	$	1,946,922		$	1,916,803
U.S. Trust	387,491		376,487		387,491			381,054		380,281		378,177			376,487
Other ⁽¹⁾	76,705		73,148		76,705			76,640		70,836		70,720			73,148

Client Balances by Type
Assets under management	$	902,872	$	821,449	$	902,872		$	888,006	$	878,741	$	841,818		$	821,449
Brokerage assets	1,081,434		1,045,122		1,081,434			1,073,858		1,091,558		1,054,052			1,045,122
Assets in custody	139,555		136,190		139,555			135,886		137,391		136,342			136,190
Deposits	245,391		244,901		245,391			238,710		237,046		244,051			244,901
Loans and leases ⁽²⁾	128,745		118,776		128,745			125,625		123,432		119,556			118,776
Total client balances	$	2,497,997	$	2,366,438	$	2,497,997		$	2,462,085	$	2,468,168	$	2,395,819		$	2,366,438

Assets Under Management Flows
Liquidity assets under management ⁽³⁾	$	3,361	$	6,502	$	(255	)	$	5,910	$	135	$	(2,429	)	$	6,492
Long-term assets under management ⁽⁴⁾	49,800		47,819		9,380			11,168		11,870		17,382			9,425
Total assets under management flows	$	53,161	$	54,321	$	9,125		$	17,078	$	12,005	$	14,953		$	15,917

Associates ⁽⁵⁾
Number of Financial Advisors	16,035		15,317		16,035			15,867		15,560		15,323			15,317
Total Wealth Advisors	17,231		16,517		17,231			17,039		16,721		16,481			16,517
Total Client Facing Professionals	19,750		19,217		19,750			19,727		19,416		19,199			19,217

Merrill Lynch Global Wealth Management Metrics
Financial Advisor Productivity ⁽⁶⁾ (in thousands)	$	1,065	$	1,005	$	1,070		$	1,077	$	1,060	$	1,056		$	1,039

U.S. Trust Metrics
Client Facing Professionals	2,155		2,091		2,155			2,135		2,110		2,117			2,091


⁽¹⁾	Other includes the results of BofA Global Capital Management and other administrative items.


⁽²⁾	Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.


⁽³⁾	Defined as assets under advisory and discretion of GWIM in which the investment strategy seeks a high level of income while maintaining liquidity and capital preservation. The duration of these strategies is primarily less than one year.


⁽⁴⁾	Defined as assets under advisory and discretion of GWIM in which the duration of the investment strategy is longer than one year.


⁽⁵⁾	Includes Financial Advisors in the Consumer & Business Banking segment of 1,950, 1,868, 1,716, 1,598 and 1,545 at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively.


⁽⁶⁾	Financial Advisor Productivity is defined as annualized Merrill Lynch Global Wealth Management total revenue divided by the total number of Financial Advisors (excluding Financial Advisors in the Consumer & Business Banking segment). Total revenue excludes corporate allocation of net interest income related to certain ALM activities.

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	29



Bank of America Corporation and Subsidiaries
Global Banking Segment Results
(Dollars in millions)
	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
	2014			2013
Net interest income (FTE basis)	$	8,999		$	8,914		$	2,207		$	2,250		$	2,240		$	2,302		$	2,301
Noninterest income:
Service charges	2,717			2,787			667			684			679			687			684
Investment banking fees	3,213			3,234			830			727			834			822			958
All other income	1,669			1,544			353			432			426			458			360
Total noninterest income	7,599			7,565			1,850			1,843			1,939			1,967			2,002
Total revenue, net of interest expense (FTE basis)	16,598			16,479			4,057			4,093			4,179			4,269			4,303

Provision for credit losses	336			1,075			(29		)	(32		)	132			265			441

Noninterest expense	7,681			7,551			1,849			1,905			1,899			2,028			1,943
Income before income taxes	8,581			7,853			2,237			2,220			2,148			1,976			1,919
Income tax expense (FTE basis)	3,146			2,880			804			807			795			740			664
Net income	$	5,435		$	4,973		$	1,433		$	1,413		$	1,353		$	1,236		$	1,255

Net interest yield (FTE basis)	2.57		%	2.97		%	2.48		%	2.52		%	2.58		%	2.68		%	2.71		%
Return on average allocated capital ⁽¹⁾	18			22			18			18			18			16			22
Efficiency ratio (FTE basis)	46.28			45.82			45.60			46.54			45.42			47.50			45.16

Balance Sheet
Average
Total loans and leases	$	270,164		$	257,249		$	270,760		$	267,047		$	271,417		$	271,475		$	268,864
Total earnings assets ⁽²⁾	350,668			300,511			353,164			353,829			347,661			347,926			336,370
Total assets ⁽²⁾	393,721			342,772			395,583			395,185			390,998			393,075			379,927
Total deposits	261,312			236,765			264,027			265,721			258,937			256,433			259,193
Allocated capital ⁽¹⁾	31,000			23,000			31,000			31,000			31,000			31,000			23,000

Period end
Total loans and leases	$	272,572		$	269,469		$	272,572		$	268,612		$	270,683		$	273,239		$	269,469
Total earnings assets ⁽²⁾	336,776			336,606			336,776			345,282			363,715			354,214			336,606
Total assets ⁽²⁾	379,513			378,659			379,513			386,919			407,369			397,017			378,659
Total deposits	251,344			265,171			251,344			255,177			270,268			257,502			265,171

⁽¹⁾


⁽²⁾	Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	30



Bank of America Corporation and Subsidiaries
Global Banking Key Indicators
(Dollars in millions)
	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
	2014			2013			Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
Investment Banking fees ⁽¹⁾
Advisory ⁽²⁾	$	1,098		$	1,019		$	316		$	291		$	234		$	257		$	320
Debt issuance	1,532			1,620			379			318			388			447			443
Equity issuance	583			595			135			118			212			118			195
Total Investment Banking fees⁽³⁾	$	3,213		$	3,234		$	830		$	727		$	834		$	822		$	958

Business Lending
Corporate	$	3,421		$	3,432		$	800		$	878		$	830		$	913		$	823
Commercial	3,936			3,967			990			932			1,005			1,009			1,011
Total Business Lending revenue	$	7,357		$	7,399		$	1,790		$	1,810		$	1,835		$	1,922		$	1,834

Global Transaction Services
Corporate	$	3,027		$	2,804		$	755		$	776		$	761		$	735		$	731
Commercial	2,893			2,939			710			729			719			735			747
Total Global Transaction Services revenue	$	5,920		$	5,743		$	1,465		$	1,505		$	1,480		$	1,470		$	1,478

Average deposit balances
Interest-bearing	$	74,620		$	72,131		$	67,698		$	75,304		$	78,010		$	77,568		$	78,229
Noninterest-bearing	186,692			164,634			196,329			190,417			180,927			178,865			180,964
Total average deposits	$	261,312		$	236,765		$	264,027		$	265,721		$	258,937		$	256,433		$	259,193

Loan spread	1.72		%	1.82		%	1.67		%	1.69		%	1.71		%	1.80		%	1.75		%

Provision for credit losses	$	336		$	1,075		$	(29	)	$	(32	)	$	132		$	265		$	441

Credit quality ^{(4, 5)}
Reservable utilized criticized exposure	$	8,385		$	9,357		$	8,385		$	9,011		$	9,467		$	9,512		$	9,357
	2.82		%	3.17		%	2.82		%	3.07		%	3.20		%	3.19		%	3.17		%

Nonperforming loans, leases and foreclosed properties	$	683		$	639		$	683		$	798		$	717		$	650		$	639
	0.25		%	0.24		%	0.25		%	0.30		%	0.27		%	0.24		%	0.24		%

Average loans and leases by product
U.S. commercial	$	136,102		$	128,395		$	137,631		$	135,320		$	136,192		$	135,247		$	132,263
Commercial real estate	42,557			38,349			40,833			41,199			43,816			44,436			42,622
Commercial lease financing	25,204			24,760			25,103			25,127			25,165			25,427			25,115
Non-U.S. commercial	66,296			65,738			67,190			65,395			66,238			66,362			68,860
Other	5			7			3			6			6			3			4
Total average loans and leases	$	270,164		$	257,249		$	270,760		$	267,047		$	271,417		$	271,475		$	268,864

Total Corporation Investment Banking fees
Advisory ⁽²⁾	$	1,207		$	1,125		$	341		$	316		$	264		$	286		$	352
Debt issuance	3,583			3,804			883			784			891			1,025			985
Equity issuance	1,490			1,472			348			315			514			313			464
Total investment banking fees including self-led deals	6,280			6,401			1,572			1,415			1,669			1,624			1,801
Self-led deals	(215		)	(275		)	(31		)	(64		)	(38		)	(82		)	(63		)
Total Investment Banking fees	$	6,065		$	6,126		$	1,541		$	1,351		$	1,631		$	1,542		$	1,738


⁽¹⁾	Investment banking fees represent total investment banking fees for Global Banking inclusive of self-led deals and fees included within Business Lending.


⁽²⁾	Advisory includes fees on debt and equity advisory and mergers and acquisitions.


⁽³⁾	Investment banking fees represent only the fee component of Global Banking and do not include certain less significant items shared with the Investment Banking Group under internal revenue sharing agreements.

⁽⁴⁾

Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure is on an end-of-period basis and is also shown as a percentage of total commercial utilized reservable criticized exposure, including loans and leases, standby letters of credit, financial guarantees, commercial letters of credit and bankers' acceptances.


⁽⁵⁾	Nonperforming loans, leases and foreclosed properties are on an end-of-period basis. The nonperforming ratio is nonperforming assets divided by loans, leases and foreclosed properties.

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	31



Bank of America Corporation and Subsidiaries
Investment Banking Product Rankings

	Year Ended December 31, 2014
	Global			U.S.
	Product Ranking	Market Share		Product Ranking	Market Share
Net investment banking revenue	3	6.6	%	2	9.8	%
Announced mergers and acquisitions	4	20.0		3	24.9
Equity capital markets	5	6.6		3	10.7
Debt capital markets	5	5.6		2	10.1
High-yield corporate debt	7	6.8		3	8.8
Leveraged loans	2	9.5		2	12.3
Mortgage-backed securities	9	6.5		8	7.2
Asset-backed securities	1	12.2		1	16.8
Convertible debt	4	7.7		4	10.1
Common stock underwriting	5	6.5		2	10.8
Investment-grade corporate debt	2	6.2		2	12.3
Syndicated loans	2	8.7		2	12.9

Source: Dealogic data as of January 6, 2015. Figures above include self-led transactions.


•	Rankings based on deal volumes except for net investment banking revenue rankings which reflect fees.


•	Debt capital markets excludes loans but includes agencies.


•	Mergers and acquisitions fees included in investment banking revenues reflect 10 percent fee credit at announcement and 90 percent fee credit at completion as per Dealogic.


•	Mergers and acquisitions volume rankings are for announced transactions and provide credit to all investment banks advising either side of the transaction.


•	Each advisor receives full credit for the deal amount unless advising a minor stakeholder.

Highlights



Global top 3 rankings in:
Leveraged loans		Investment-grade corporate debt
Asset-backed securities		Syndicated loans

U.S. top 3 rankings in:
High-yield corporate debt		Syndicated loans
Leveraged loans		Announced mergers and acquisitions
Asset-backed securities		Equity capital markets
Common stock underwriting		Debt capital markets
Investment-grade corporate debt

Top 3 rankings excluding self-led deals:


Global:	Leveraged loans, Asset-backed securities, Investment-grade corporate debt, Syndicated loans, Announced mergers and acquisitions


U.S.:	High-yield corporate debt, Leveraged loans, Asset-backed securities, Common stock underwriting, Investment-grade corporate debt, Syndicated loans, Announced mergers and acquisitions, Equity capital markets, Debt capital markets



This information is preliminary and based on company data available at the time of the presentation.	32



Bank of America Corporation and Subsidiaries
Global Markets Segment Results ⁽¹⁾
(Dollars in millions)
	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
	2014			2013			Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
Net interest income (FTE basis)	$	3,986		$	4,224		$	1,032		$	994		$	958		$	1,002		$	1,138
Noninterest income:
Investment and brokerage services	2,163			2,046			540			522			540			561			489
Investment banking fees	2,743			2,724			670			577			760			736			755
Trading account profits	5,997			6,734			76			1,786			1,768			2,367			795
All other income (loss)	1,230			(338		)	52			263			564			351			21
Total noninterest income	12,133			11,166			1,338			3,148			3,632			4,015			2,060
Total revenue, net of interest expense (FTE basis) ⁽²⁾	16,119			15,390			2,370			4,142			4,590			5,017			3,198

Provision for credit losses	110			140			27			45			19			19			104

Noninterest expense	11,771			11,996			2,499			3,335			2,862			3,075			3,274
Income (loss) before income taxes	4,238			3,254			(156		)	762			1,709			1,923			(180		)
Income tax expense (benefit) (FTE basis)	1,519			2,101			(84		)	389			604			610			(133		)
Net income (loss)	$	2,719		$	1,153		$	(72	)	$	373		$	1,105		$	1,313		$	(47	)

Return on average allocated capital ⁽³⁾	8		%	4		%	n/m			4		%	13		%	16		%	n/m
Efficiency ratio (FTE basis)	73.03			77.94			105.48		%	80.51			62.34			61.30			102.36		%

Balance Sheet
Average
Total trading-related assets ⁽⁴⁾	$	449,814		$	468,934		$	455,535		$	446,490		$	459,938		$	437,128		$	438,909
Total loans and leases	62,064			60,057			58,094			62,939			63,579			63,696			66,496
Total earning assets⁽⁴⁾	461,179			481,433			451,923			457,815			478,191			456,879			458,955
Total assets	607,538			632,681			611,714			599,887			617,092			601,429			603,012
Allocated capital ⁽³⁾	34,000			30,000			34,000			34,000			34,000			34,000			30,000

Period end
Total trading-related assets ⁽⁴⁾	$	418,860		$	411,080		$	418,860		$	433,597		$	443,383		$	430,894		$	411,080
Total loans and leases	59,388			67,381			59,388			62,645			66,260			64,598			67,381
Total earning assets ⁽⁴⁾	421,799			432,807			421,799			443,364			465,380			455,103			432,807
Total assets	579,514			575,472			579,514			598,668			610,372			594,792			575,472

Trading-related assets (average)
Trading account securities	$	201,955		$	215,885		$	201,867		$	201,963		$	200,725		$	203,281		$	209,734
Reverse repurchases	116,085			137,670			118,286			116,853			119,823			109,271			114,417
Securities borrowed	85,098			65,532			81,071			83,369			94,989			80,981			67,862
Derivative assets	46,676			49,847			54,311			44,305			44,401			43,595			46,896
Total trading-related assets ⁽⁴⁾	$	449,814		$	468,934		$	455,535		$	446,490		$	459,938		$	437,128		$	438,909

⁽¹⁾

In 2014, the results for structured liabilities including debit valuation adjustment were moved into Global Markets from All Other to better align the performance and risk management of these instruments. As such, net debit valuation adjustment in Global Markets represents the combined total of net debit valuation adjustment on derivatives and structured liabilities. Prior periods have been reclassified to conform to current period presentation.


⁽²⁾	Substantially all of Global Markets total revenue is sales and trading revenue and investment banking fees, with a small portion related to certain revenue sharing agreements with other business segments. For additional sales and trading revenue information, see page 34.

⁽³⁾


⁽⁴⁾	Trading-related assets include derivative assets, which are considered non-earning assets.

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	33



Bank of America Corporation and Subsidiaries
Global Markets Key Indicators
(Dollars in millions)
	Year Ended December 31					Fourth Quarter 2014		Third Quarter 2014		Second Quarter 2014		First Quarter 2014		Fourth Quarter 2013
	2014		2013			Fourth Quarter 2014		Third Quarter 2014		Second Quarter 2014		First Quarter 2014		Fourth Quarter 2013
Sales and trading revenue ⁽¹⁾
Fixed income, currency and commodities	$	8,706	$	8,231		$	879	$	2,381	$	2,422	$	3,024	$	1,538
Equities	4,215		4,180			862		1,105		1,055		1,193		817
Total sales and trading revenue	$	12,921	$	12,411		$	1,741	$	3,486	$	3,477	$	4,217	$	2,355

Sales and trading revenue, excluding debit valuation adjustment and funding valuation adjustment⁽²⁾
Fixed income, currency and commodities	$	9,013	$	9,345		$	1,456	$	2,247	$	2,366	$	2,944	$	2,074
Equities	4,148		4,224			911		1,034		1,042		1,161		899
Total sales and trading revenue, excluding debit valuation adjustment and funding valuation adjustment	$	13,161	$	13,569		$	2,367	$	3,281	$	3,408	$	4,105	$	2,973

Sales and trading revenue breakdown
Net interest income	$	3,643	$	3,891		$	943	$	914	$	872	$	914	$	1,054
Commissions	2,163		2,046			540		522		540		561		489
Trading	5,997		6,734			76		1,786		1,768		2,367		795
Other	1,118		(260		)	182		264		297		375		17
Total sales and trading revenue	$	12,921	$	12,411		$	1,741	$	3,486	$	3,477	$	4,217	$	2,355


⁽¹⁾	Includes Global Banking sales and trading revenue of $382 million and $385 million for the years ended December 31, 2014 and 2013; $162 million, $68 million, $67 million and $85 million for the fourth, third, second and first quarters of 2014, respectively, and $66 million for the fourth quarter of 2013.

⁽²⁾

For this presentation, sales and trading revenue excludes net debit valuation adjustment gains (losses) which include net debit valuation adjustment on derivatives and structured liabilities. Sales and trading revenue excluding net debit valuation adjustment gains (losses) represents a non-GAAP financial measure. In the fourth quarter of 2014, the Corporation adopted a funding valuation adjustment on uncollateralized derivatives in the Corporation's Global Markets business. This methodology seeks to account for the value of funding costs today rather than accruing the cost over the life of the derivatives. The adoption resulted in a one-time transitional charge of $497 million recorded in the fourth quarter of 2014.

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	34



Bank of America Corporation and Subsidiaries
All Other Results ⁽¹⁾
(Dollars in millions)
	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
	2014			2013			Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
Net interest income (FTE basis)	$	(516	)	$	982		$	(348	)	$	70		$	(84	)	$	(154	)	$	412
Noninterest income:
Card income	356			328			89			93			88			86			83
Equity investment income	601			2,610			(77		)	(52		)	56			674			393
Gains on sales of debt securities	1,311			1,230			162			410			382			357			363
All other loss	(2,467		)	(2,587		)	(615		)	(592		)	(601		)	(659		)	(738		)
Total noninterest income	(199		)	1,581			(441		)	(141		)	(75		)	458			101
Total revenue, net of interest expense (FTE basis)	(715		)	2,563			(789		)	(71		)	(159		)	304			513

Provision for credit losses	(978		)	(666		)	(332		)	(265		)	(246		)	(135		)	(188		)

Noninterest expense	2,881			4,559			448			256			467			1,710			1,075
Loss before income taxes	(2,618		)	(1,330		)	(905		)	(62		)	(380		)	(1,271		)	(374		)
Income tax benefit (FTE basis)	(2,622		)	(2,042		)	(527		)	(552		)	(481		)	(1,062		)	(870		)
Net income (loss)	$	4		$	712		$	(378	)	$	490		$	101		$	(209	)	$	496

Balance Sheet
Average
Total loans and leases	$	202,512		$	235,460		$	183,090		$	199,403		$	210,575		$	217,391		$	226,027
Total assets ⁽²⁾	160,272			216,012			142,233			157,671			175,757			165,712			179,626
Total deposits	30,255			34,919			21,481			29,268			35,861			34,438			34,306

Period end
Total loans and leases	$	172,612		$	220,690		$	172,612		$	188,356		$	205,471		$	213,416		$	220,690
Total assets ⁽³⁾	142,812			167,624			142,812			154,280			167,422			158,465			167,624
Total deposits	18,898			27,912			18,898			25,109			32,000			32,878			27,912

⁽¹⁾

All Other consists of ALM activities, equity investments, the international consumer card business, liquidating businesses, residual expense allocations and other. ALM activities encompass the whole-loan residential mortgage portfolio and investment securities, interest rate and foreign currency risk management activities including the residual net interest income allocation, the impact of certain allocation methodologies and accounting hedge ineffectiveness. The results of certain ALM activities are allocated to our business segments. Equity investments include Global Principal Investments which is comprised of a portfolio of equity, real estate and other alternative investments. These investments are made either directly in a company or held through a fund with related income recorded in equity investment income. Additionally, All Other includes certain residential mortgage loans that are managed by Legacy Assets & Servicing. In 2014, the management of structured liabilities and the associated debit valuation adjustment (previously referred to as fair value adjustments on structured liabilities) were moved into Global Markets from All Other to better align the performance risk of these instruments. Prior periods have been reclassified to conform to current period presentation.

⁽²⁾

Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $595.2 billion and $538.8 billion for the years ended December 31, 2014 and 2013; $600.5 billion, $601.9 billion, $593.1 billion and $585.2 billion for the fourth, third, second and first quarters of 2014, respectively, and $564.0 billion for the fourth quarter of 2013.


⁽³⁾	Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $589.9 billion, $592.0 billion, $608.7 billion, $609.1 billion and $569.8 billion at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively.

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	35



Bank of America Corporation and Subsidiaries
Equity Investments
(Dollars in millions)
	Equity Investments Exposures
	December 31, 2014						September 30 2014
	Book Value		Unfunded Commitments		Total		Total
Equity Investments
Global Principal Investments	$	912	$	31	$	943	$	1,046
Strategic and other investments	858		6		864		881
Total Equity Investments	$	1,770	$	37	$	1,807	$	1,927



Components of Equity Investment Income
(Dollars in millions)
	Year Ended December 31					Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
	2014			2013		Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
Global Principal Investments	$	(46	)	$	379	$	(52	)	$	(37	)	$	71		$	(28	)	$	101
Strategic and other investments	647			2,231		(25		)	(15		)	(15		)	702			292
Total equity investment income (loss) included in All Other	601			2,610		(77		)	(52		)	56			674			393
Total equity investment income included in the business segments	529			291		57			61			301			110			81
Total consolidated equity investment income (loss)	$	1,130		$	2,901	$	(20	)	$	9		$	357		$	784		$	474

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	36



Bank of America Corporation and Subsidiaries
Outstanding Loans and Leases
(Dollars in millions)
	December 31 2014		September 30 2014		December 31 2013
Consumer
Residential mortgage ⁽¹⁾	$	216,197	$	224,728	$	248,066
Home equity	85,725		87,508		93,672
U.S. credit card	91,879		89,026		92,338
Non-U.S. credit card	10,465		11,433		11,541
Direct/Indirect consumer ⁽²⁾	80,381		83,118		82,192
Other consumer ⁽³⁾	1,846		2,152		1,977
Total consumer loans excluding loans accounted for under the fair value option	486,493		497,965		529,786
Consumer loans accounted for under the fair value option ⁽⁴⁾	2,077		2,129		2,164
Total consumer	488,570		500,094		531,950

Commercial
U.S. commercial ⁽⁵⁾	233,586		228,996		225,851
Commercial real estate ⁽⁶⁾	47,682		47,023		47,893
Commercial lease financing	24,866		24,498		25,199
Non-U.S. commercial	80,083		84,650		89,462
Total commercial loans excluding loans accounted for under the option	386,217		385,167		388,405
Commercial loans accounted for under the fair value option ⁽⁴⁾	6,604		6,054		7,878
Total commercial	392,821		391,221		396,283
Total loans and leases	$	881,391	$	891,315	$	928,233


⁽¹⁾	Includes pay option loans of $3.2 billion, $3.3 billion and $4.4 billion at December 31, 2014, September 30, 2014 and December 31, 2013, respectively. The Corporation no longer originates pay option loans.

⁽²⁾

Includes dealer financial services loans of $37.7 billion, $37.9 billion and $38.5 billion, unsecured consumer lending loans of $1.5 billion, $1.7 billion and $2.7 billion, U.S. securities-based lending loans of $35.8 billion, $34.6 billion and $31.2 billion, non-U.S. consumer loans of $4.0 billion, $4.3 billion and $4.7 billion, student loans of $632 million, $3.6 billion and $4.1 billion and other consumer loans of $761 million, $894 million and $1.0 billion at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.


⁽³⁾	Includes consumer finance loans of $676 million, $1.0 billion and $1.2 billion, consumer leases of $1.0 billion, $937 million and $606 million, consumer overdrafts of $162 million, $173 million and $176 million and other non-U.S. consumer loans of $3 million, $3 million and $5 million at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.

⁽⁴⁾

Consumer loans accounted for under the fair value option were residential mortgage loans of $1.9 billion, $2.0 billion and $2.0 billion and home equity loans of $196 million, $179 million and $147 million at December 31, 2014, September 30, 2014 and December 31, 2013, respectively. Commercial loans accounted for under the fair value option were U.S. commercial loans of $1.9 billion, $1.3 billion and $1.5 billion and non-U.S. commercial loans of $4.7 billion, $4.8 billion and $6.4 billion at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.


⁽⁵⁾	Includes U.S. small business commercial loans, including card-related products, of $13.3 billion, $13.5 billion and $13.3 billion at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.


⁽⁶⁾	Includes U.S. commercial real estate loans of $45.2 billion, $45.1 billion and $46.3 billion and non-U.S. commercial real estate loans of $2.5 billion, $2.0 billion and $1.6 billion at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.

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.	37



Bank of America Corporation and Subsidiaries
Quarterly Average Loans and Leases by Business Segment
(Dollars in millions)
	Fourth Quarter 2014
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services		GWIM		Global Banking		Global Markets		All Other
Consumer
Residential mortgage	$	223,132	$	836	$	9,407	$	50,537	$	—	$	—	$	162,352
Home equity	86,825		159		78,462		6,276		—		189		1,739
U.S. credit card	89,381		86,193		—		3,188		—		—		—
Non-U.S. credit card	10,950		—		—		—		—		—		10,950
Direct/Indirect consumer	83,121		39,466		80		39,694		—		14		3,867
Other consumer	2,031		1,113		—		8		3		—		907
Total consumer	495,440		127,767		87,949		99,703		3		203		179,815

Commercial
U.S. commercial	231,217		32,853		29		21,824		137,631		34,426		4,454
Commercial real estate	46,993		642		—		1,875		40,833		3,456		187
Commercial lease financing	24,238		2		—		4		25,103		552		(1,423		)
Non-U.S. commercial	86,845		3		—		138		67,190		19,457		57
Total commercial	389,293		33,500		29		23,841		270,757		57,891		3,275
Total loans and leases	$	884,733	$	161,267	$	87,978	$	123,544	$	270,760	$	58,094	$	183,090

	Third Quarter 2014
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services		GWIM		Global Banking		Global Markets		All Other
Consumer
Residential mortgage	$	235,271	$	794	$	7,683	$	49,610	$	—	$	—	$	177,184
Home equity	88,590		154		80,202		6,412		—		165		1,657
U.S. credit card	88,866		85,674		—		3,192		—		—		—
Non-U.S. credit card	11,784		—		—		—		—		—		11,784
Direct/Indirect consumer	82,669		39,711		56		38,555		—		17		4,330
Other consumer	2,111		1,043		—		5		6		—		1,057
Total consumer	509,291		127,376		87,941		97,774		6		182		196,012

Commercial
U.S. commercial	230,891		32,846		30		21,282		135,320		36,894		4,519
Commercial real estate	46,071		650		—		1,797		41,199		2,203		222
Commercial lease financing	24,325		—		—		4		25,127		644		(1,450		)
Non-U.S. commercial	88,663		7		—		145		65,395		23,016		100
Total commercial	389,950		33,503		30		23,228		267,041		62,757		3,391
Total loans and leases	$	899,241	$	160,879	$	87,971	$	121,002	$	267,047	$	62,939	$	199,403

	Fourth Quarter 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services		GWIM		Global Banking		Global Markets		All Other
Consumer
Residential mortgage	$	253,988	$	678	$	4,276	$	47,407	$	—	$	56	$	201,571
Home equity	95,374		145		85,261		8,364		—		144		1,460
U.S. credit card	90,057		86,746		—		3,311		—		—		—
Non-U.S. credit card	11,171		—		—		—		—		—		11,171
Direct/Indirect consumer	82,990		42,002		45		35,094		1		37		5,811
Other consumer	1,929		706		—		5		3		—		1,215
Total consumer	535,509		130,277		89,582		94,181		4		237		221,228

Commercial
U.S. commercial	225,596		32,140		105		19,623		132,263		35,429		6,036
Commercial real estate	46,341		732		—		1,587		42,622		1,075		325
Commercial lease financing	24,468		—		—		4		25,115		929		(1,580		)
Non-U.S. commercial	97,863		8		—		151		68,860		28,826		18
Total commercial	394,268		32,880		105		21,365		268,860		66,259		4,799
Total loans and leases	$	929,777	$	163,157	$	89,687	$	115,546	$	268,864	$	66,496	$	226,027

Certain prior period amounts have been reclassified among the segments to conform to current period presentation.



This information is preliminary and based on company data available at the time of the presentation.	38



Bank of America Corporation and Subsidiaries
Commercial Credit Exposure by Industry ^{(1, 2, 3)}
(Dollars in millions)
	Commercial Utilized						Total Commercial Committed
	December 31 2014		September 30 2014		December 31 2013		December 31 2014			September 30 2014			December 31 2013
Diversified financials	$	63,306	$	68,739	$	76,673	$	103,528		$	112,957		$	118,092
Real estate ⁽⁴⁾	53,246		51,006		54,336		75,565			70,739			76,418
Retailing	33,683		34,129		32,859		58,043			56,326			54,616
Capital goods	29,028		29,116		28,016		54,653			52,469			52,849
Healthcare equipment and services	32,923		32,415		30,828		52,450			55,847			49,063
Government and public education	42,095		41,648		40,253		49,937			48,786			48,322
Banking	42,330		42,772		41,399		48,353			48,204			48,078
Energy	23,830		20,338		19,739		47,667			41,454			41,156
Materials	23,664		23,378		22,384		45,821			43,443			42,699
Food, beverage and tobacco	16,131		15,460		14,437		34,465			33,897			30,541
Consumer services	21,657		21,486		21,080		33,269			34,067			34,217
Commercial services and supplies	17,997		18,808		19,770		30,451			30,819			32,007
Utilities	9,399		9,528		9,253		25,235			25,772			25,243
Transportation	17,538		16,149		15,280		24,541			23,307			22,595
Media	11,128		11,886		13,070		21,502			22,971			22,655
Individuals and trusts	16,749		16,107		14,864		21,195			20,238			18,681
Software and services	5,927		5,641		6,814		14,071			12,783			14,172
Pharmaceuticals and biotechnology	5,707		4,433		6,455		13,493			15,066			13,986
Technology hardware and equipment	5,489		5,387		6,166		12,350			12,041			12,733
Insurance, including monolines	5,204		5,023		5,926		11,252			11,169			12,203
Consumer durables and apparel	6,111		5,690		5,427		10,613			10,015			9,757
Automobiles and components	4,114		3,768		3,165		9,683			9,420			8,424
Telecommunication services	3,814		3,702		4,541		9,295			9,008			11,423
Food and staples retailing	3,848		3,742		3,950		7,418			7,214			7,909
Religious and social organizations	4,881		4,978		5,452		6,548			6,586			7,677
Other	6,255		5,253		5,357		10,415			9,373			8,309
Total commercial credit exposure by industry	$	506,054	$	500,582	$	507,494	$	831,813		$	823,971		$	823,825
Net credit default protection purchased on total commitments ⁽⁵⁾							$	(7,302	)	$	(6,878	)	$	(8,085	)

⁽¹⁾

Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held-for-sale, commercial letters of credit, bankers’ acceptances, securitized assets, foreclosed properties and other collateral acquired. Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by the amount of cash collateral applied of $47.3 billion, $45.4 billion and $47.3 billion at December 31, 2014, September 30, 2014 and December 31, 2013, respectively. Not reflected in utilized and committed exposure is additional derivative collateral held of $24.0 billion, $20.7 billion and $17.1 billion which consists primarily of other marketable securities at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.

⁽²⁾

Total commercial utilized and total commercial committed exposures include loans and letters of credit accounted for under the fair value option and are comprised of loans outstanding of $6.6 billion, $6.1 billion and $7.9 billion and issued letters of credit at notional value of $535 million, $518 million and $503 million at December 31, 2014, September 30, 2014 and December 31, 2013, respectively. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $9.4 billion, $8.5 billion and $12.5 billion at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.


⁽³⁾	Includes U.S. small business commercial exposure.


⁽⁴⁾	Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based on the borrowers’ or counterparties’ primary business activity using operating cash flows and primary source of repayment as key factors.


⁽⁵⁾	Represents net notional credit protection purchased.

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.	39



Bank of America Corporation and Subsidiaries
Net Credit Default Protection by Maturity Profile ⁽¹⁾
	December 31 2014		September 30 2014
Less than or equal to one year	43	%	45	%
Greater than one year and less than or equal to five years	55		53
Greater than five years	2		2
Total net credit default protection	100	%	100	%


⁽¹⁾	To mitigate the cost of purchasing credit protection, credit exposure can be added by selling credit protection. The distribution of maturities for net credit default protection purchased is shown above.



Net Credit Default Protection by Credit Exposure Debt Rating ⁽¹⁾
(Dollars in millions)
	December 31, 2014					September 30, 2014
Ratings ^{(2, 3)}	Net Notional ⁽⁴⁾			Percent of Total		Net Notional ⁽⁴⁾			Percent of Total
AA	$	—		—	%	$	(76	)	1.1	%
A	(1,310		)	17.9		(1,371		)	19.9
BBB	(4,207		)	57.6		(3,849		)	56.0
BB	(1,001		)	13.7		(906		)	13.2
B	(643		)	8.8		(577		)	8.4
CCC and below	(131		)	1.8		(122		)	1.8
NR ⁽⁵⁾	(10		)	0.2		23			(0.4	)
Total net credit default protection	$	(7,302	)	100.0	%	$	(6,878	)	100.0	%


⁽¹⁾	To mitigate the cost of purchasing credit protection, credit exposure can be added by selling credit protection. The distribution of debt rating for net notional credit default protection purchased is shown as a negative and the net notional credit protection sold is shown as a positive amount.


⁽²⁾	Ratings are refreshed on a quarterly basis.


⁽³⁾	Ratings of BBB- or higher are considered to meet the definition of investment grade.


⁽⁴⁾	Represents net credit default protection (purchased) sold.


⁽⁵⁾	NR is comprised of index positions held and any names that have not been rated.

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.	40



Bank of America Corporation and Subsidiaries
Top 20 Non-U.S. Countries Exposure
(Dollars in millions)
	Funded Loans and Loan Equivalents ⁽¹⁾		Unfunded Loan Commitments		Net Counterparty Exposure ⁽²⁾		Securities/ Other Investments ⁽³⁾		Country Exposure at December 31 2014		Hedges and Credit Default Protection ⁽⁴⁾			Net Country Exposure at December 31 2014 ⁽⁵⁾		Increase (Decrease) from September 30 2014
United Kingdom	$	23,727	$	11,921	$	6,373	$	7,769	$	49,790	$	(4,243	)	$	45,547	$	(1,188	)
Canada	6,388		6,847		1,950		5,173		20,358		(1,818		)	18,540		335
Japan	12,518		506		3,589		1,453		18,066		(1,332		)	16,734		5,611
Brazil	9,923		727		511		4,183		15,344		(360		)	14,984		2,193
Germany	5,341		5,840		3,477		1,489		16,147		(3,588		)	12,559		1,469
China	10,238		725		556		1,483		13,002		(710		)	12,292		(1,495		)
India	5,631		507		496		4,126		10,760		(174		)	10,586		491
France	3,246		5,117		1,495		5,038		14,896		(4,458		)	10,438		(1,592		)
Hong Kong	6,413		616		924		691		8,644		(36		)	8,608		882
Netherlands	2,928		3,392		675		2,275		9,270		(1,135		)	8,135		(1,033		)
Australia	3,237		1,908		826		2,235		8,206		(533		)	7,673		(729		)
Switzerland	2,493		3,663		1,018		622		7,796		(1,265		)	6,531		1,579
South Korea	3,559		707		534		2,327		7,127		(678		)	6,449		(440		)
Italy	2,545		1,596		2,484		1,752		8,377		(2,978		)	5,399		575
Mexico	3,038		807		245		566		4,656		(385		)	4,271		411
Singapore	1,984		203		673		1,206		4,066		(62		)	4,004		(89		)
Taiwan	2,248		—		437		1,180		3,865		—			3,865		(59		)
Spain	2,296		994		296		1,022		4,608		(992		)	3,616		153
Russia	4,124		80		732		66		5,002		(1,393		)	3,609		(198		)
Turkey	2,695		75		15		185		2,970		(482		)	2,488		521
Total top 20 non-U.S. countries exposure	$	114,572	$	46,231	$	27,306	$	44,841	$	232,950	$	(26,622	)	$	206,328	$	7,397


⁽¹⁾	Includes loans, leases, and other extensions of credit and funds, including letters of credit and due from placements, which have not been reduced by collateral, hedges or credit default protection. Funded loans and loan equivalents are reported net of charge-offs but prior to any allowance for loan and lease losses.

⁽²⁾

Net counterparty exposure includes the fair value of derivatives, including the counterparty risk associated with credit default swaps, and secured financing transactions. Derivative exposures are presented net of $34.9 billion in collateral, which is predominantly cash, pledged under legally enforceable master netting agreements. Secured financing transaction exposures are presented net of eligible cash or securities pledged as collateral. The notional amount of reverse repurchase transactions was $87.6 billion. Counterparty exposure is not presented net of hedges or credit default protection.


⁽³⁾	Long securities exposures are netted on a single-name basis to, but not below, zero by short exposures and net credit default swaps purchased, consisting of single-name and net indexed and tranched credit default swaps.


⁽⁴⁾	Represents credit default protection purchased, net of credit default protection sold, which is used to mitigate the Corporation's risk to country exposures as listed, consisting of net single-name and net indexed and tranched credit default swaps. Amounts are calculated based on the credit default swaps notional amount assuming a zero recovery rate less any fair value receivable or payable.


⁽⁵⁾	Represents country exposure less hedges and credit default protection purchased, net of credit default protection sold.

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.	41



Bank of America Corporation and Subsidiaries
Nonperforming Loans, Leases and Foreclosed Properties
(Dollars in millions)
	December 31 2014			September 30 2014			June 30 2014			March 31 2014			December 31 2013
Residential mortgage	$	6,889		$	8,118		$	9,235		$	11,611		$	11,712
Home equity	3,901			4,026			4,181			4,185			4,075
Direct/Indirect consumer	28			30			29			32			35
Other consumer	1			14			15			16			18
Total consumer	10,819			12,188			13,460			15,844			15,840
U.S. commercial	701			757			849			841			819
Commercial real estate	321			445			252			300			322
Commercial lease financing	3			7			8			10			16
Non-U.S. commercial	1			45			7			18			64
	1,026			1,254			1,116			1,169			1,221
U.S. small business commercial	87			98			100			96			88
Total commercial	1,113			1,352			1,216			1,265			1,309
Total nonperforming loans and leases	11,932			13,540			14,676			17,109			17,149
Foreclosed properties ⁽¹⁾	697			692			624			623			623
Total nonperforming loans, leases and foreclosed properties ^{(2, 3, 4)}	$	12,629		$	14,232		$	15,300		$	17,732		$	17,772

Fully-insured home loans past due 30 days or more and still accruing	$	14,617		$	16,280		$	17,347		$	18,098		$	20,681
Consumer credit card past due 30 days or more and still accruing	1,884			1,903			1,923			2,115			2,321
Other loans past due 30 days or more and still accruing	3,953			4,326			4,064			5,472			5,416
Total loans past due 30 days or more and still accruing ^{(3, 5, 6)}	$	20,454		$	22,509		$	23,334		$	25,685		$	28,418

Fully-insured home loans past due 90 days or more and still accruing	$	11,407		$	13,045		$	14,137		$	15,125		$	16,961
Consumer credit card past due 90 days or more and still accruing	961			935			990			1,090			1,184
Other loans past due 90 days or more and still accruing	286			609			523			649			614
Total loans past due 90 days or more and still accruing ^{(3, 5, 6)}	$	12,654		$	14,589		$	15,650		$	16,864		$	18,759

Nonperforming loans, leases and foreclosed properties/Total assets ⁽⁷⁾	0.60		%	0.67		%	0.71		%	0.83		%	0.85		%
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties ⁽⁷⁾	1.45			1.61			1.70			1.96			1.93
Nonperforming loans and leases/Total loans and leases ⁽⁷⁾	1.37			1.53			1.63			1.89			1.87

Commercial utilized reservable criticized exposure ⁽⁸⁾	$	11,570		$	11,766		$	12,430		$	12,781		$	12,861
Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure ⁽⁸⁾	2.74		%	2.79		%	2.92		%	3.01		%	3.02		%
Total commercial utilized criticized exposure/Commercial utilized exposure ⁽⁸⁾	2.86			2.97			3.15			3.21			3.08


⁽¹⁾	Foreclosed property balances do not include loans that are insured by the Federal Housing Administration and have entered foreclosure of $1.1 billion, $1.1 billion, $1.1 billion, $1.1 billion and $1.4 billion at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively.


⁽²⁾	Balances do not include past due consumer credit card, consumer loans secured by real estate where repayments are insured by the Federal Housing Administration and individually insured long-term stand-by agreements (fully-insured home loans), and in general, other consumer and commercial loans not secured by real estate.


⁽³⁾	Balances do not include purchased credit-impaired loans even though the customer may be contractually past due. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan.



⁽⁴⁾ Balances do not include the following:	December 31 2014		September 30 2014		June 30 2014		March 31 2014		December 31 2013
Nonperforming loans held-for-sale	$	219	$	255	$	598	$	293	$	672
Nonperforming loans accounted for under the fair value option	392		436		427		431		448
Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010	102		101		140		257		260

⁽⁵⁾

Balances do not include loans held-for-sale past due 30 days or more and still accruing of $475 million, $42 million, $37 million, $80 million and $106 million at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively, and loans held-for-sale past due 90 days or more and still accruing of $249 million, $0, $0, $6 million and $8 million at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively. At December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, there were $147 million, $147 million, $153 million, $129 million and $158 million, respectively, of loans accounted for under the fair value option past due 30 days or more and still accruing interest.


⁽⁶⁾	These balances are excluded from total nonperforming loans, leases and foreclosed properties.


⁽⁷⁾	Total assets and total loans and leases do not include loans accounted for under the fair value option of $8.7 billion, $8.2 billion, $10.9 billion, $11.1 billion and $10.0 billion at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively.


⁽⁸⁾	Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure excludes loans held-for-sale, exposure accounted for under the fair value option and other nonreservable exposure.

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.	42



Bank of America Corporation and Subsidiaries
Nonperforming Loans, Leases and Foreclosed Properties Activity ⁽¹⁾
(Dollars in millions)
	Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
Nonperforming Consumer Loans and Leases:
Balance, beginning of period	$	12,188		$	13,460		$	15,844		$	15,840		$	17,581
Additions to nonperforming loans and leases:
New nonperforming loans and leases	1,709			1,516			1,825			2,027			2,199
Reductions to nonperforming loans and leases:
Paydowns and payoffs	(310		)	(522		)	(325		)	(468		)	(863		)
Sales	(1,347		)	(957		)	(1,825		)	—			(729		)
Returns to performing status ⁽²⁾	(728		)	(810		)	(939		)	(800		)	(1,112		)
Charge-offs ⁽³⁾	(533		)	(431		)	(640		)	(583		)	(752		)
Transfers to foreclosed properties	(160		)	(183		)	(157		)	(172		)	(147		)
Transfers (to) from loans held-for-sale	—			115			(323		)	—			(337		)
Total net additions (reductions) to nonperforming loans and leases	(1,369		)	(1,272		)	(2,384		)	4			(1,741		)
Total nonperforming consumer loans and leases, end of period	10,819			12,188			13,460			15,844			15,840
Foreclosed properties	630			614			547			538			533
Nonperforming consumer loans, leases and foreclosed properties, end of period	$	11,449		$	12,802		$	14,007		$	16,382		$	16,373

Nonperforming Commercial Loans and Leases ⁽⁴⁾:
Balance, beginning of period	$	1,352		$	1,216		$	1,265		$	1,309		$	1,785
Additions to nonperforming loans and leases:
New nonperforming loans and leases	214			477			275			262			143
Advances	6			33			1			8			12
Reductions to nonperforming loans and leases:
Paydowns	(202		)	(161		)	(183		)	(171		)	(322		)
Sales	(81		)	(12		)	(29		)	(27		)	(92		)
Return to performing status ⁽⁵⁾	(77		)	(80		)	(41		)	(63		)	(87		)
Charge-offs	(95		)	(116		)	(71		)	(50		)	(98		)
Transfers to foreclosed properties	(4		)	(5		)	(1		)	(3		)	(12		)
Transfers to loans held-for-sale	—			—			—			—			(20		)
Total net additions (reductions) to nonperforming loans and leases	(239		)	136			(49		)	(44		)	(476		)
Total nonperforming commercial loans and leases, end of period	1,113			1,352			1,216			1,265			1,309
Foreclosed properties	67			78			77			85			90
Nonperforming commercial loans, leases and foreclosed properties, end of period	$	1,180		$	1,430		$	1,293		$	1,350		$	1,399


⁽¹⁾	For amounts excluded from nonperforming loans, leases and foreclosed properties, see footnotes to Nonperforming Loans, Leases and Foreclosed Properties table on page 42.

⁽²⁾

Consumer loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Certain troubled debt restructurings are classified as nonperforming at the time of restructuring and may only be returned to performing status after considering the borrower's sustained repayment performance for a reasonable period, generally six months.


⁽³⁾	Our policy is not to classify consumer credit card and non-bankruptcy related consumer loans not secured by real estate as nonperforming; therefore, the charge-offs on these loans have no impact on nonperforming activity and, accordingly, are excluded from this table.


⁽⁴⁾	Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming.

⁽⁵⁾

Commercial loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Troubled debt restructurings are generally classified as performing after a sustained period of demonstrated payment performance.

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.	43



Bank of America Corporation and Subsidiaries
Quarterly Net Charge-offs and Net Charge-off Ratios ^{(1, 2)}
(Dollars in millions)
	Fourth Quarter 2014					Third Quarter 2014					Second Quarter 2014					First Quarter 2014					Fourth Quarter 2013
Net Charge-offs	Amount			Percent		Amount			Percent		Amount			Percent		Amount			Percent		Amount			Percent
Residential mortgage ^{(3, 4)}	$	(259	)	(0.46	)%	$	53		0.09	%	$	(35	)	(0.06	)%	$	127		0.21	%	$	209		0.33	%
Home equity ⁽³⁾	277			1.27		89			0.40		239			1.06		302			1.32		331			1.38
U.S. credit card	612			2.71		625			2.79		683			3.11		718			3.25		724			3.19
Non-U.S. credit card	52			1.90		67			2.26		47			1.59		76			2.66		94			3.34
Direct/Indirect consumer	44			0.21		34			0.17		33			0.16		58			0.29		73			0.35
Other consumer	68			13.31		56			10.48		47			9.26		58			12.07		66			13.58
Total consumer ⁽³⁾	794			0.64		924			0.72		1,014			0.79		1,339			1.04		1,497			1.11
U.S. commercial ⁽⁵⁾	19			0.04		58			0.11		6			0.01		5			0.01		(28		)	(0.05	)
Commercial real estate	(8		)	(0.07	)	(6		)	(0.05	)	(32		)	(0.27	)	(37		)	(0.31	)	1			—
Commercial lease financing	1			0.02		(3		)	(0.05	)	(5		)	(0.07	)	(2		)	(0.04	)	(2		)	(0.03	)
Non-U.S. commercial	2			0.01		1			—		12			0.06		19			0.09		46			0.20
	14			0.02		50			0.05		(19		)	(0.02	)	(15		)	(0.02	)	17			0.02
U.S. small business commercial	71			2.10		69			2.03		78			2.34		64			1.95		68			2.07
Total commercial	85			0.09		119			0.12		59			0.06		49			0.05		85			0.09
Total net charge-offs ⁽³⁾	$	879		0.40		$	1,043		0.46		$	1,073		0.48		$	1,388		0.62		$	1,582		0.68

By Business Segment
Consumer & Business Banking	$	769		1.89	%	$	774		1.91	%	$	844		2.11	%	$	881		2.20	%	$	922		2.24	%
Consumer Real Estate Services	264			1.20		85			0.39		235			1.08		294			1.36		323			1.45
Global Wealth & Investment Management	36			0.12		6			0.02		4			0.01		25			0.09		35			0.12
Global Banking	(1		)	—		50			0.07		(24		)	(0.04	)	(17		)	(0.03	)	7			0.01
Global Markets	—			—		—			—		3			0.02		(1		)	(0.01	)	1			0.01
All Other	(189		)	(0.41	)	128			0.26		11			0.02		206			0.39		294			0.52
Total net charge-offs	$	879		0.40		$	1,043		0.46		$	1,073		0.48		$	1,388		0.62		$	1,582		0.68

⁽¹⁾

Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option during the period for each loan and lease category. Excluding the purchased credit-impaired loan portfolio, total annualized net charge-offs as a percentage of total average loans and leases outstanding were 0.41, 0.48, 0.49, 0.64 and 0.70 for the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively.

⁽²⁾

Excludes write-offs of purchased credit-impaired loans of $13 million, $246 million, $160 million, $391 million and $741 million for the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively. Including the write-offs of purchased credit-impaired loans, total annualized net charge-offs and purchased credit-impaired write-offs as a percentage of total average loans and leases outstanding were 0.40, 0.57, 0.55, 0.79 and 1.00 for the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively.


⁽³⁾	Includes the impact of a clarification of regulatory guidance on accounting for troubled debt restructurings of $56 million for residential mortgage loans and $88 million for home equity loans for the three months ended December 31, 2013.


⁽⁴⁾	Includes nonperforming loan sales recoveries and other recoveries of $314 million, $39 million and $185 million for the three months ended December 31, 2014, September 30, 2014 and June 30, 2014, respectively.


⁽⁵⁾	Excludes U.S. small business commercial loans.

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.	44



Bank of America Corporation and Subsidiaries
Annual Net Charge-offs and Net Charge-off Ratios ^{(1, 2)}
(Dollars in millions)
	Year Ended December 31
	2014					2013
Net Charge-offs	Amount			Percent		Amount			Percent
Residential mortgage ^{(3, 4)}	$	(114	)	(0.05	)%	$	1,084		0.42	%
Home equity ⁽³⁾	907			1.01		1,803			1.80
U.S. credit card	2,638			2.96		3,376			3.74
Non-U.S. credit card	242			2.10		399			3.68
Direct/Indirect consumer	169			0.20		345			0.42
Other consumer	229			11.27		234			12.96
Total consumer ⁽³⁾	4,071			0.80		7,241			1.34
U.S. commercial ⁽⁵⁾	88			0.04		128			0.06
Commercial real estate	(83		)	(0.18	)	149			0.35
Commercial lease financing	(9		)	(0.04	)	(25		)	(0.10	)
Non-U.S. commercial	34			0.04		45			0.05
	30			0.01		297			0.08
U.S. small business commercial	282			2.10		359			2.84
Total commercial	312			0.08		656			0.18
Total net charge-offs ⁽³⁾	$	4,383		0.49		$	7,897		0.87

By Business Segment
Consumer & Business Banking	$	3,268		2.03	%	$	4,348		2.64	%
Consumer Real Estate Services	878			1.01		1,729			1.94
Global Wealth & Investment Management	71			0.06		173			0.16
Global Banking	8			—		188			0.07
Global Markets	2			—		2			—
All Other	156			0.08		1,457			0.62
Total net charge-offs	$	4,383		0.49		$	7,897		0.87

⁽¹⁾

Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option during the period for each loan and lease category. Excluding the purchased credit-impaired loan portfolio, total net charge-offs as a percentage of total average loans and leases outstanding were 0.50 and 0.90 for the years ended December 31, 2014 and 2013.


⁽²⁾	Excludes write-offs of purchased credit-impaired loans of $810 million and $2.3 billion for the years ended December 31, 2014 and 2013. Including the write-offs of purchased credit-impaired loans, total net charge-offs and purchased credit-impaired write-offs as a percentage of total average loans and leases outstanding were 0.58 and 1.13 for the years ended December 31, 2014 and 2013.


⁽³⁾	Includes the impact of a clarification of regulatory guidance on accounting for troubled debt restructurings of $56 million for residential mortgage loans and $88 million for home equity loans for the year ended December 31, 2013.


⁽⁴⁾	Includes nonperforming loan sales recoveries and other recoveries of $538 million for the year ended December 31, 2014.


⁽⁵⁾	Excludes U.S. small business commercial loans.

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.	45



Bank of America Corporation and Subsidiaries
Allocation of the Allowance for Credit Losses by Product Type
(Dollars in millions)
	December 31, 2014						September 30, 2014						December 31, 2013
Allowance for loan and lease losses	Amount		Percent of Total		Percent of Loans and Leases Outstanding ^{(1, 2)}		Amount		Percent of Total		Percent of Loans and Leases Outstanding ^{(1, 2)}		Amount		Percent of Total		Percent of Loans and Leases Outstanding ^{(1, 2)}
Residential mortgage	$	2,900	20.11	%	1.34	%	$	3,022	20.01	%	1.34	%	$	4,084	23.43	%	1.65	%
Home equity	3,035		21.05		3.54		3,454		22.87		3.95		4,434		25.44		4.73
U.S. credit card	3,320		23.03		3.61		3,395		22.47		3.81		3,930		22.55		4.26
Non-U.S.credit card	369		2.56		3.53		388		2.57		3.39		459		2.63		3.98
Direct/Indirect consumer	299		2.07		0.37		331		2.19		0.40		417		2.39		0.51
Other consumer	59		0.41		3.15		84		0.55		3.90		99		0.58		5.02
Total consumer	9,982		69.23		2.05		10,674		70.66		2.14		13,423		77.02		2.53
U.S. commercial ⁽³⁾	2,619		18.16		1.12		2,587		17.12		1.13		2,394		13.74		1.06
Commercial real estate	1,016		7.05		2.13		1,030		6.82		2.19		917		5.26		1.91
Commercial lease financing	153		1.06		0.62		157		1.04		0.64		118		0.68		0.47
Non-U.S.commercial	649		4.50		0.81		658		4.36		0.78		576		3.30		0.64
Total commercial ⁽⁴⁾	4,437		30.77		1.15		4,432		29.34		1.15		4,005		22.98		1.03
Allowance for loan and lease losses	14,419		100.00	%	1.65		15,106		100.00	%	1.71		17,428		100.00	%	1.90
Reserve for unfunded lending commitments	528						529						484
Allowance for credit losses	$	14,947					$	15,635					$	17,912

Asset Quality Indicators

Allowance for loan and lease losses/Total loans and leases ⁽²⁾			1.65	%					1.71	%					1.90	%
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total loans and leases (excluding purchased credit-impaired loans) ^{(2, 5)}			1.50						1.57						1.67
Allowance for loan and lease losses/Total nonperforming loans and leases⁽⁶⁾			121						112						102
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total nonperforming loans and leases ⁽⁵⁾			107						100						87
Ratio of the allowance for loan and lease losses/Annualized net charge-offs ⁽⁷⁾			4.14						3.65						2.78
Ratio of the allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Annualized net charge-offs ^{(5, 7)}			3.66						3.27						2.38
Ratio of the allowance for loan and lease losses/Annualized net charge-offs and purchased credit-impaired write-offs			4.08						2.95						1.89

⁽¹⁾

Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option. Consumer loans accounted for under the fair value option included residential mortgage loans of $1.9 billion, $2.0 billion and $2.0 billion and home equity loans of $196 million, $179 million and $147 million at December 31, 2014, September 30, 2014 and December 31, 2013, respectively. Commercial loans accounted for under the fair value option included U.S. commercial loans of $1.9 billion, $1.3 billion and $1.5 billion and non-U.S. commercial loans of $4.7 billion, $4.8 billion and $6.4 billion at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.


⁽²⁾	Total loans and leases do not include loans accounted for under the fair value option of $8.7 billion, $8.2 billion and $10.0 billion at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.


⁽³⁾	Includes allowance for loan and lease losses for U.S. small business commercial loans of $536 million, $530 million and $462 million at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.


⁽⁴⁾	Includes allowance for loan and lease losses for impaired commercial loans of $159 million, $188 million and $277 million at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.


⁽⁵⁾	Excludes valuation allowance on purchased credit-impaired loans of $1.7 billion, $1.6 billion and $2.5 billion at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.

⁽⁶⁾

Allowance for loan and lease losses includes $5.9 billion, $6.0 billion and $7.7 billion allocated to products (primarily the Consumer Lending portfolios within Consumer & Business Banking and purchased credit-impaired loans) that are excluded from nonperforming loans and leases at December 31, 2014, September 30, 2014 and December 31, 2013, respectively. Excluding these amounts, allowance for loan and lease losses as a percentage of total nonperforming loans and leases was 71 percent, 67 percent and 57 percent at December 31, 2014, September 30, 2014 and December 31, 2013, respectively.


⁽⁷⁾	Net charge-offs exclude $13 million, $246 million and $741 million of write-offs in the purchased credit-impaired loan portfolio at December 31, 2014, September 30, 2014 and December 31, 2013, respectively. These write-offs decreased the purchased credit-impaired valuation allowance included as part of the allowance for loan and lease losses.

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.	46



Exhibit A: Non-GAAP Reconciliations

Bank of America Corporation and Subsidiaries
Reconciliations to GAAP Financial Measures
(Dollars in millions)

The Corporation evaluates its business based on a fully taxable-equivalent basis, a non-GAAP financial measure. The Corporation believes managing the business with net interest income on a fully taxable-equivalent basis provides a more accurate picture of the interest margin for comparative purposes. Total revenue, net of interest expense, includes net interest income on a fully taxable-equivalent basis and noninterest income. The Corporation views related ratios and analyses (i.e., efficiency ratios and net interest yield) on a fully taxable-equivalent basis. To derive the fully taxable-equivalent basis, net interest income is adjusted to reflect tax-exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. For purposes of this calculation, the Corporation uses the federal statutory tax rate of 35 percent. This measure ensures comparability of net interest income arising from taxable and tax-exempt sources. The efficiency ratio measures the costs expended to generate a dollar of revenue, and net interest yield measures the basis points the Corporation earns over the cost of funds.

The Corporation also evaluates its business based on the following ratios that utilize tangible equity, a non-GAAP financial measure. Tangible equity represents an adjusted shareholders' equity or common shareholders' equity amount which has been reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible common shareholders' equity measures the Corporation's earnings contribution as a percentage of adjusted average common shareholders' equity. The tangible common equity ratio represents adjusted ending common shareholders' equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible shareholders' equity measures the Corporation's earnings contribution as a percentage of adjusted average total shareholders' equity. The tangible equity ratio represents adjusted ending shareholders' equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Tangible book value per common share represents adjusted ending common shareholders' equity divided by ending common shares outstanding. These measures are used to evaluate the Corporation's use of equity. In addition, profitability, relationship and investment models all use return on average tangible shareholders' equity as key measures to support our overall growth goals.

In addition, the Corporation evaluates its business segment results based on measures that utilize average allocated capital. The Corporation allocates capital to its business segments using a methodology that considers the effect of regulatory capital requirements in addition to internal risk-based capital models. The Corporation's internal risk-based capital models use a risk-adjusted methodology incorporating each segment's credit, market, interest rate, business and operational risk components. Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return both represent non-GAAP financial measures. Allocated capital is reviewed periodically and refinements are made based on multiple considerations that include, but are not limited to, business segment exposures and risk profile, regulatory constraints and strategic plans. As part of this process, in the first quarter of 2014, the Corporation adjusted the amount of capital being allocated to its business segments. This change resulted in a reduction of the unallocated capital, which is reflected in All Other, and an aggregate increase to the amount of capital being allocated to the business segments. Prior periods were not restated.

See the tables below and on pages 48-50 for reconciliations of these non-GAAP financial measures to financial measures defined by GAAP for the years ended December 31, 2014 and 2013, and the three months ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate supplemental financial data differently.



	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
	2014			2013			Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013

Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis

Net interest income	$	39,952		$	42,265		$	9,635		$	10,219		$	10,013		$	10,085		$	10,786
Fully taxable-equivalent adjustment	869			859			230			225			213			201			213
Net interest income on a fully taxable-equivalent basis	$	40,821		$	43,124		$	9,865		$	10,444		$	10,226		$	10,286		$	10,999

Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense on a fully taxable-equivalent basis

Total revenue, net of interest expense	$	84,247		$	88,942		$	18,725		$	21,209		$	21,747		$	22,566		$	21,488
Fully taxable-equivalent adjustment	869			859			230			225			213			201			213
Total revenue, net of interest expense on a fully taxable-equivalent basis	$	85,116		$	89,801		$	18,955		$	21,434		$	21,960		$	22,767		$	21,701

Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis

Income tax expense (benefit)	$	2,022		$	4,741		$	1,260		$	663		$	504		$	(405	)	$	406
Fully taxable-equivalent adjustment	869			859			230			225			213			201			213
Income tax expense (benefit) on a fully taxable-equivalent basis	$	2,891		$	5,600		$	1,490		$	888		$	717		$	(204	)	$	619

Reconciliation of average common shareholders' equity to average tangible common shareholders' equity

Common shareholders' equity	$	223,066		$	218,468		$	224,473		$	222,368		$	222,215		$	223,201		$	220,088
Goodwill	(69,809		)	(69,910		)	(69,782		)	(69,792		)	(69,822		)	(69,842		)	(69,864		)
Intangible assets (excluding mortgage servicing rights)	(5,109		)	(6,132		)	(4,747		)	(4,992		)	(5,235		)	(5,474		)	(5,725		)
Related deferred tax liabilities	2,090			2,328			2,019			2,077			2,100			2,165			2,231
Tangible common shareholders' equity	$	150,238		$	144,754		$	151,963		$	149,661		$	149,258		$	150,050		$	146,730

Reconciliation of average shareholders' equity to average tangible shareholders' equity

Shareholders' equity	$	238,476		$	233,947		$	243,448		$	238,034		$	235,797		$	236,553		$	233,415
Goodwill	(69,809		)	(69,910		)	(69,782		)	(69,792		)	(69,822		)	(69,842		)	(69,864		)
Intangible assets (excluding mortgage servicing rights)	(5,109		)	(6,132		)	(4,747		)	(4,992		)	(5,235		)	(5,474		)	(5,725		)
Related deferred tax liabilities	2,090			2,328			2,019			2,077			2,100			2,165			2,231
Tangible shareholders' equity	$	165,648		$	160,233		$	170,938		$	165,327		$	162,840		$	163,402		$	160,057

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.	47



Exhibit A: Non-GAAP Reconciliations (continued)

Bank of America Corporation and Subsidiaries
Reconciliations to GAAP Financial Measures
(Dollars in millions)
	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
	2014			2013			Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013

Reconciliation of period-end common shareholders' equity to period-end tangible common shareholders' equity

Common shareholders' equity	$	224,162		$	219,333		$	224,162		$	220,768		$	222,565		$	218,536		$	219,333
Goodwill	(69,777		)	(69,844		)	(69,777		)	(69,784		)	(69,810		)	(69,842		)	(69,844		)
Intangible assets (excluding mortgage servicing rights)	(4,612		)	(5,574		)	(4,612		)	(4,849		)	(5,099		)	(5,337		)	(5,574		)
Related deferred tax liabilities	1,960			2,166			1,960			2,019			2,078			2,100			2,166
Tangible common shareholders' equity	$	151,733		$	146,081		$	151,733		$	148,154		$	149,734		$	145,457		$	146,081

Reconciliation of period-end shareholders' equity to period-end tangible shareholders' equity

Shareholders' equity	$	243,471		$	232,685		$	243,471		$	238,681		$	237,411		$	231,888		$	232,685
Goodwill	(69,777		)	(69,844		)	(69,777		)	(69,784		)	(69,810		)	(69,842		)	(69,844		)
Intangible assets (excluding mortgage servicing rights)	(4,612		)	(5,574		)	(4,612		)	(4,849		)	(5,099		)	(5,337		)	(5,574		)
Related deferred tax liabilities	1,960			2,166			1,960			2,019			2,078			2,100			2,166
Tangible shareholders' equity	$	171,042		$	159,433		$	171,042		$	166,067		$	164,580		$	158,809		$	159,433

Reconciliation of period-end assets to period-end tangible assets

Assets	$	2,104,534		$	2,102,273		$	2,104,534		$	2,123,613		$	2,170,557		$	2,149,851		$	2,102,273
Goodwill	(69,777		)	(69,844		)	(69,777		)	(69,784		)	(69,810		)	(69,842		)	(69,844		)
Intangible assets (excluding mortgage servicing rights)	(4,612		)	(5,574		)	(4,612		)	(4,849		)	(5,099		)	(5,337		)	(5,574		)
Related deferred tax liabilities	1,960			2,166			1,960			2,019			2,078			2,100			2,166
Tangible assets	$	2,032,105		$	2,029,021		$	2,032,105		$	2,050,999		$	2,097,726		$	2,076,772		$	2,029,021

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.	48



Exhibit A: Non-GAAP Reconciliations (continued)

Bank of America Corporation and Subsidiaries
Reconciliations to GAAP Financial Measures
(Dollars in millions)
	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
	2014			2013			Fourth Quarter 2014			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013
Reconciliation of return on average allocated capital ⁽¹⁾

Consumer & Business Banking

Reported net income	$	7,096		$	6,647		$	1,758		$	1,861		$	1,802		$	1,675		$	1,992
Adjustment related to intangibles ⁽²⁾	4			7			1			1			1			1			1
Adjusted net income	$	7,100		$	6,654		$	1,759		$	1,862		$	1,803		$	1,676		$	1,993

Average allocated equity ⁽³⁾	$	61,449		$	62,037		$	61,423		$	61,441		$	61,459		$	61,474		$	61,998
Adjustment related to goodwill and a percentage of intangibles	(31,949		)	(32,037		)	(31,923		)	(31,941		)	(31,959		)	(31,974		)	(31,998		)
Average allocated capital	$	29,500		$	30,000		$	29,500		$	29,500		$	29,500		$	29,500		$	30,000

Global Wealth & Investment Management

Reported net income	$	2,974		$	2,977		$	706		$	813		$	726		$	729		$	778
Adjustment related to intangibles ⁽²⁾	13			16			4			3			3			3			4
Adjusted net income	$	2,987		$	2,993		$	710		$	816		$	729		$	732		$	782

Average allocated equity ⁽³⁾	$	22,214		$	20,292		$	22,186		$	22,204		$	22,222		$	22,243		$	20,265
Adjustment related to goodwill and a percentage of intangibles	(10,214		)	(10,292		)	(10,186		)	(10,204		)	(10,222		)	(10,243		)	(10,265		)
Average allocated capital	$	12,000		$	10,000		$	12,000		$	12,000		$	12,000		$	12,000		$	10,000

Global Banking

Reported net income	$	5,435		$	4,973		$	1,433		$	1,413		$	1,353		$	1,236		$	1,255
Adjustment related to intangibles ⁽²⁾	2			3			—			1			—			1			1
Adjusted net income	$	5,437		$	4,976		$	1,433		$	1,414		$	1,353		$	1,237		$	1,256

Average allocated equity ⁽³⁾	$	53,404		$	45,412		$	53,400		$	53,402		$	53,405		$	53,407		$	45,410
Adjustment related to goodwill and a percentage of intangibles	(22,404		)	(22,412		)	(22,400		)	(22,402		)	(22,405		)	(22,407		)	(22,410		)
Average allocated capital	$	31,000		$	23,000		$	31,000		$	31,000		$	31,000		$	31,000		$	23,000

Global Markets

Reported net income (loss)	$	2,719		$	1,153		$	(72	)	$	373		$	1,105		$	1,313		$	(47	)
Adjustment related to intangibles ⁽²⁾	9			9			3			2			2			2			3
Adjusted net income (loss)	$	2,728		$	1,162		$	(69	)	$	375		$	1,107		$	1,315		$	(44	)

Average allocated equity ⁽³⁾	$	39,374		$	35,370		$	39,369		$	39,374		$	39,376		$	39,377		$	35,381
Adjustment related to goodwill and a percentage of intangibles	(5,374		)	(5,370		)	(5,369		)	(5,374		)	(5,376		)	(5,377		)	(5,381		)
Average allocated capital	$	34,000		$	30,000		$	34,000		$	34,000		$	34,000		$	34,000		$	30,000

For footnotes see page 50.

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.	49



Exhibit A: Non-GAAP Reconciliations (continued)

Bank of America Corporation and Subsidiaries
Reconciliations to GAAP Financial Measures
(Dollars in millions)
	Year Ended December 31						Fourth Quarter 2014			Third Quarter 2014			Fourth Quarter 2013
	2014			2013			Fourth Quarter 2014			Third Quarter 2014			Fourth Quarter 2013
Consumer & Business Banking

Deposits

Reported net income	$	2,847		$	2,123		$	658		$	811		$	672
Adjustment related to intangibles ⁽²⁾	—			1			—			—			—
Adjusted net income	$	2,847		$	2,124		$	658		$	811		$	672

Average allocated equity ⁽³⁾	$	36,484		$	35,392		$	36,484		$	36,485		$	35,385
Adjustment related to goodwill and a percentage of intangibles	(19,984		)	(19,992		)	(19,984		)	(19,985		)	(19,985		)
Average allocated capital	$	16,500		$	15,400		$	16,500		$	16,500		$	15,400

Consumer Lending

Reported net income	$	4,249		$	4,524		$	1,100		$	1,050		$	1,320
Adjustment related to intangibles ⁽²⁾	4			7			1			1			1
Adjusted net income	$	4,253		$	4,531		$	1,101		$	1,051		$	1,321

Average allocated equity ⁽³⁾	$	24,965		$	26,644		$	24,939		$	24,956		$	26,613
Adjustment related to goodwill and a percentage of intangibles	(11,965		)	(12,044		)	(11,939		)	(11,956		)	(12,013		)
Average allocated capital	$	13,000		$	14,600		$	13,000		$	13,000		$	14,600


⁽¹⁾	There are no adjustments to reported net income (loss) or average allocated equity for Consumer Real Estate Services.


⁽²⁾	Represents cost of funds, earnings credits and certain expenses related to intangibles.


⁽³⁾	Average allocated equity is comprised of average allocated capital plus capital for the portion of goodwill and intangibles specifically assigned to the business segment.

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.	50