BAC-9.30.2014 Ex. 99.3

EX-99.3 4 bac-9302014ex993.htm THE SUPPLEMENTAL INFORMATION BAC-9.30.2014 Ex. 99.3

Supplemental Information

Third 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
Year-to-Date Average Balances and Interest Rates	13
Debt Securities and Available-for-Sale Marketable Equity Securities	15
Quarterly Results by Business Segment	16
Year-to-Date 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
Year-to-Date 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)
	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Income statement
Net interest income	$	30,317		$	31,479		$	10,219		$	10,013		$	10,085		$	10,786		$	10,266
Noninterest income	35,205			35,975			10,990			11,734			12,481			10,702			11,264
Total revenue, net of interest expense	65,522			67,454			21,209			21,747			22,566			21,488			21,530
Provision for credit losses	2,056			3,220			636			411			1,009			336			296
Noninterest expense	60,521			51,907			19,742			18,541			22,238			17,307			16,389
Income tax expense (benefit)	762			4,335			663			504			(405		)	406			2,348
Net income (loss)	2,183			7,992			168			2,291			(276		)	3,439			2,497
Preferred stock dividends	732			1,093			238			256			238			256			279
Net income (loss) applicable to common shareholders	1,451			6,899			(70		)	2,035			(514		)	3,183			2,218
Diluted earnings (loss) per common share ⁽¹⁾	0.14			0.62			(0.01		)	0.19			(0.05		)	0.29			0.20
Average diluted common shares issued and outstanding ⁽¹⁾	10,587,841			11,523,649			10,515,790			11,265,123			10,560,518			11,404,438			11,482,226
Dividends paid per common share	$	0.07		$	0.03		$	0.05		$	0.01		$	0.01		$	0.01		$	0.01

Performance ratios
Return on average assets	0.14		%	0.49		%	0.03		%	0.42		%	n/m			0.64		%	0.47		%
Return on average common shareholders' equity	0.87			4.23			n/m			3.68			n/m			5.74			4.06
Return on average tangible common shareholders' equity ⁽²⁾	1.30			6.40			n/m			5.47			n/m			8.61			6.15
Return on average tangible shareholders' equity ⁽²⁾	1.78			6.67			0.40			5.64			n/m			8.53			6.32


At period end
Book value per share of common stock	$	21.03		$	20.50		$	21.03		$	21.16		$	20.75		$	20.71		$	20.50
Tangible book value per share of common stock ⁽²⁾	14.13			13.62			14.13			14.24			13.81			13.79			13.62
Market price per share of common stock:
Closing price	$	17.05		$	13.80		$	17.05		$	15.37		$	17.20		$	15.57		$	13.80
High closing price for the period	17.92			14.95			17.18			17.34			17.92			15.88			14.95
Low closing price for the period	14.51			11.03			14.98			14.51			16.10			13.69			12.83
Market capitalization	179,296			147,429			179,296			161,628			181,117			164,914			147,429

Number of banking centers - U.S.	4,947			5,243			4,947			5,023			5,095			5,151			5,243
Number of branded ATMs - U.S.	15,675			16,201			15,675			15,976			16,214			16,259			16,201
Full-time equivalent employees	229,538			247,943			229,538			233,201			238,560			242,117			247,943


⁽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⁾

	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Net interest income	$	30,956		$	32,125		$	10,444		$	10,226		$	10,286		$	10,999		$	10,479
Total revenue, net of interest expense	66,161			68,100			21,434			21,960			22,767			21,701			21,743
Net interest yield ⁽²⁾	2.27		%	2.35		%	2.29		%	2.22		%	2.29		%	2.44		%	2.33		%
Efficiency ratio	91.47			76.22			92.10			84.43			97.68			79.75			75.38


⁽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)
	Nine Months Ended September 30				Third Quarter 2014			Second Quarter 2014		First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014		2013
Interest income
Loans and leases	$	25,930	$	27,384	$	8,535		$	8,635	$	8,760		$	9,086		$	9,146
Debt securities	6,346		7,302		2,225			2,124		1,997			2,447			2,205
Federal funds sold and securities borrowed or purchased under agreements to resell	801		925		239			297		265			304			291
Trading account assets	3,463		3,567		1,111			1,175		1,177			1,139			1,049
Other interest income	2,194		2,130		748			710		736			736			691
Total interest income	38,734		41,308		12,858			12,941		12,935			13,712			13,382

Interest expense
Deposits	843		1,082		270			282		291			314			334
Short-term borrowings	1,963		2,241		591			763		609			682			683
Trading account liabilities	1,225		1,274		392			398		435			364			375
Long-term debt	4,386		5,232		1,386			1,485		1,515			1,566			1,724
Total interest expense	8,417		9,829		2,639			2,928		2,850			2,926			3,116
Net interest income	30,317		31,479		10,219			10,013		10,085			10,786			10,266

Noninterest income
Card income	4,334		4,323		1,500			1,441		1,393			1,503			1,444
Service charges	5,599		5,520		1,907			1,866		1,826			1,870			1,884
Investment and brokerage services	9,887		9,165		3,327			3,291		3,269			3,117			2,995
Investment banking income	4,524		4,388		1,351			1,631		1,542			1,738			1,297
Equity investment income	1,150		2,427		9			357		784			474			1,184
Trading account profits	6,198		6,193		1,899			1,832		2,467			863			1,266
Mortgage banking income	1,211		3,026		272			527		412			848			585
Gains on sales of debt securities	1,191		881		432			382		377			390			356
Other income (loss)	1,111		52		293			407		411			(101		)	253
Total noninterest income	35,205		35,975		10,990			11,734		12,481			10,702			11,264
Total revenue, net of interest expense	65,522		67,454		21,209			21,747		22,566			21,488			21,530

Provision for credit losses	2,056		3,220		636			411		1,009			336			296

Noninterest expense
Personnel	26,094		26,732		8,039			8,306		9,749			7,987			8,310
Occupancy	3,264		3,359		1,070			1,079		1,115			1,116			1,096
Equipment	1,594		1,620		514			534		546			526			538
Marketing	1,338		1,377		446			450		442			457			511
Professional fees	1,795		2,045		611			626		558			839			702
Amortization of intangibles	708		820		234			235		239			266			270
Data processing	2,348		2,370		754			761		833			800			779
Telecommunications	1,005		1,217		311			324		370			376			397
Other general operating	22,375		12,367		7,763			6,226		8,386			4,940			3,786
Total noninterest expense	60,521		51,907		19,742			18,541		22,238			17,307			16,389
Income (loss) before income taxes	2,945		12,327		831			2,795		(681		)	3,845			4,845
Income tax expense (benefit)	762		4,335		663			504		(405		)	406			2,348
Net income (loss)	$	2,183	$	7,992	$	168		$	2,291	$	(276	)	$	3,439		$	2,497
Preferred stock dividends	732		1,093		238			256		238			256			279
Net income (loss) applicable to common shareholders	$	1,451	$	6,899	$	(70	)	$	2,035	$	(514	)	$	3,183		$	2,218

Per common share information
Earnings (loss)	$	0.14	$	0.64	$	(0.01	)	$	0.19	$	(0.05	)	$	0.30		$	0.21
Diluted earnings (loss) ⁽¹⁾	0.14		0.62		(0.01		)	0.19		(0.05		)	0.29			0.20
Dividends paid	0.07		0.03		0.05			0.01		0.01			0.01			0.01
Average common shares issued and outstanding	10,531,688		10,764,216		10,515,790			10,519,359		10,560,518			10,633,030			10,718,918
Average diluted common shares issued and outstanding⁽¹⁾	10,587,841		11,523,649		10,515,790			11,265,123		10,560,518			11,404,438			11,482,226


⁽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)
	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014		First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014		First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Net income (loss)	$	2,183		$	7,992		$	168		$	2,291	$	(276	)	$	3,439		$	2,497
Other comprehensive income (loss), net-of-tax:
Net change in available-for-sale debt and marketable equity securities	2,600			(5,770		)	(994		)	2,305		1,289			(2,396		)	(631		)
Net change in derivatives	411			365			196			7		208			227			180
Employee benefit plan adjustments	64			1,513			8			7		49			536			1,380
Net change in foreign currency translation adjustments	(133		)	(134		)	(14		)	7		(126		)	(1		)	(43		)
Other comprehensive income (loss)	2,942			(4,026		)	(804		)	2,326		1,420			(1,634		)	886
Comprehensive income (loss)	$	5,125		$	3,966		$	(636	)	$	4,617	$	1,144		$	1,805		$	3,383

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)
	September 30 2014			June 30 2014			September 30 2013
Assets
Cash and due from banks	$	28,332		$	31,969		$	37,935
Interest-bearing deposits with the Federal Reserve and non-U.S. central banks	100,327			120,930			83,298
Cash and cash equivalents	128,659			152,899			121,233
Time deposits placed and other short-term investments	7,859			8,646			14,449
Federal funds sold and securities borrowed or purchased under agreements to resell	223,310			229,449			212,007
Trading account assets	188,489			196,952			201,206
Derivative assets	49,093			47,892			53,161
Debt securities:
Carried at fair value	307,949			292,861			266,349
Held-to-maturity, at cost	60,175			60,022			54,649
Total debt securities	368,124			352,883			320,998
Loans and leases	891,315			911,899			934,392
Allowance for loan and lease losses	(15,106		)	(15,811		)	(19,432		)
Loans and leases, net of allowance	876,209			896,088			914,960
Premises and equipment, net	9,987			10,145			10,703
Mortgage servicing rights	4,243			4,368			5,068
Goodwill	69,784			69,810			69,891
Intangible assets	4,849			5,099			5,843
Loans held-for-sale	7,909			9,200			15,001
Customer and other receivables	67,092			65,475			60,065
Other assets	118,006			121,651			122,068
Total assets	$	2,123,613		$	2,170,557		$	2,126,653

Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
Trading account assets	$	7,533		$	7,236		$	8,743
Derivative assets	8			25			199
Loans and leases	96,565			102,799			109,996
Allowance for loan and lease losses	(2,002		)	(2,326		)	(2,962		)
Loans and leases, net of allowance	94,563			100,473			107,034
Loans held-for-sale	555			601			1,875
All other assets	2,738			3,946			4,314
Total assets of consolidated variable interest entities	$	105,397		$	112,281		$	122,165

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)
	September 30 2014			June 30 2014			September 30 2013
Liabilities
Deposits in U.S. offices:
Noninterest-bearing	$	386,546		$	390,976		$	374,275
Interest-bearing	654,726			662,823			657,477
Deposits in non-U.S. offices:
Noninterest-bearing	7,368			7,224			7,403
Interest-bearing	63,341			73,306			70,963
Total deposits	1,111,981			1,134,329			1,110,118
Federal funds purchased and securities loaned or sold under agreements to repurchase	217,925			217,829			226,274
Trading account liabilities	76,867			88,342			82,713
Derivative liabilities	44,238			38,647			44,568
Short-term borrowings	33,275			45,873			40,769
Accrued expenses and other liabilities (includes $529, $503 and $480 of reserve for unfunded lending commitments)	150,131			151,055			134,598
Long-term debt	250,115			257,071			255,331
Total liabilities	1,884,532			1,933,146			1,894,371
Shareholders' equity
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,591,790, 3,467,790 and 3,407,790 shares	17,913			14,846			13,315
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 10,515,893,904, 10,515,824,628 and 10,683,282,112 shares	153,472			153,468			156,371
Retained earnings	73,211			73,808			69,419
Accumulated other comprehensive income (loss)	(5,515		)	(4,711		)	(6,823		)
Total shareholders' equity	239,081			237,411			232,282
Total liabilities and shareholders' equity	$	2,123,613		$	2,170,557		$	2,126,653

Liabilities of consolidated variable interest entities included in total liabilities above
Short-term borrowings	$	985		$	927		$	2,180
Long-term debt	15,904			16,333			24,481
All other liabilities	137			93			382
Total liabilities of consolidated variable interest entities	$	17,026		$	17,353		$	27,043

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
	September 30 2014			June 30 2014			March 31 2014			December 31 2013			September 30 2013
Risk-based capital metrics ^{(1, 2)}:
Common equity tier 1 capital	$	152,852		$	153,582		$	150,922		n/a			n/a
Tier 1 common capital	n/a			n/a			n/a			$	141,522		$	139,410
Tier 1 capital	163,448			160,760			152,936			157,742			155,593
Total capital	201,168			197,028			190,124			196,567			194,585
Risk-weighted assets	1,271,605			1,284,924			1,282,117			1,297,593			1,289,501
Common equity tier 1 capital ratio	12.0		%	12.0		%	11.8		%	n/a			n/a
Tier 1 common capital ratio ⁽³⁾	n/a			n/a			n/a			10.9		%	10.8		%
Tier 1 capital ratio	12.9			12.5			11.9			12.2			12.1
Total capital ratio	15.8			15.3			14.8			15.1			15.1
Tier 1 leverage ratio	7.9			7.7			7.4			7.7			7.6

Tangible equity ratio ⁽⁴⁾	8.12			7.85			7.65			7.86			7.73
Tangible common equity ratio⁽⁴⁾	7.24			7.14			7.00			7.20			7.08


⁽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 and September 30, 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

	September 30 2014			June 30 2014			March 31 2014
Regulatory capital – Basel 3 transition to fully phased-in
Common equity tier 1 capital (transition)	$	152,852		$	153,582		$	150,922
Adjustments and deductions recognized in Tier 1 capital during transition	(10,191		)	(10,547		)	(11,302		)
Other adjustments and deductions phased in during transition	(7,115		)	(5,852		)	(9,474		)
Common equity tier 1 capital (fully phased-in)	$	135,546		$	137,183		$	130,146

	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	$	1,271,605		$	1,284,924		$	1,282,117		$	1,297,593
Change in risk-weighted assets from reported to fully phased-in	146,581			151,901			165,332			162,731
Basel 3 Standardized approach risk-weighted assets (fully phased-in)	1,418,186			1,436,825			1,447,449			1,460,324
Change in risk-weighted assets for advanced models	(8,369		)	(49,390		)	(86,234		)	(133,027		)
Basel 3 Advanced approaches risk-weighted assets (fully phased-in)	$	1,409,817		$	1,387,435		$	1,361,215		$	1,327,297

Regulatory capital ratios
Basel 1 Tier 1 common	n/a			n/a			n/a			10.9		%
Basel 3 Standardized approach common equity tier 1 (transition)	12.0		%	12.0		%	11.8		%	n/a
Basel 3 Standardized approach common equity tier 1 (fully phased-in)	9.6			9.5			9.0			8.8
Basel 3 Advanced approaches common equity tier 1 (fully phased-in)	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 company's fully phased-in Basel 3 estimates are based on its current understanding of the Standardized and Advanced approaches under the Basel 3 rules, assuming all relevant regulatory model approvals, except for the potential reduction to risk-weighted assets resulting from removal of the Comprehensive Risk Measure surcharge. The Basel 3 rules require approval by banking regulators of certain models used as part of risk-weighted asset calculations. If these models are not approved, the company's capital ratio would likely be adversely impacted, 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)
	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Net interest income (FTE basis)
As reported	$	30,956		$	32,125		$	10,444		$	10,226		$	10,286		$	10,999		$	10,479
Impact of trading-related net interest income	(2,658		)	(2,806		)	(900		)	(858		)	(900		)	(1,046		)	(883		)
Net interest income excluding trading-related net interest income ⁽¹⁾	$	28,298		$	29,319		$	9,544		$	9,368		$	9,386		$	9,953		$	9,596

Average earning assets ⁽²⁾
As reported	$	1,819,247		$	1,826,575		$	1,813,482		$	1,840,850		$	1,803,298		$	1,798,697		$	1,789,045
Impact of trading-related earning assets	(449,248		)	(476,853		)	(441,661		)	(463,395		)	(442,700		)	(445,693		)	(446,181		)
Average earning assets excluding trading-related earning assets ⁽¹⁾	$	1,369,999		$	1,349,722		$	1,371,821		$	1,377,455		$	1,360,598		$	1,353,004		$	1,342,864

Net interest yield contribution (FTE basis) ^{(2, 3)}
As reported	2.27		%	2.35		%	2.29		%	2.22		%	2.29		%	2.44		%	2.33		%
Impact of trading-related activities	0.48			0.55			0.47			0.50			0.48			0.49			0.51
Net interest yield on earning assets excluding trading-related activities ⁽¹⁾	2.75		%	2.90		%	2.76		%	2.72		%	2.77		%	2.93		%	2.84		%


⁽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⁾	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)
	Third Quarter 2014						Second Quarter 2014						Third 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⁾	$	110,876	$	77	0.28	%	$	123,582	$	85	0.28	%	$	78,360	$	50	0.26	%
Time deposits placed and other short-term investments	10,457		41		1.54		10,509		39		1.51		17,256		47		1.07
Federal funds sold and securities borrowed or purchased under agreements to resell	223,978		239		0.42		235,393		297		0.51		223,434		291		0.52
Trading account assets	143,282		1,148		3.18		147,798		1,214		3.29		144,502		1,093		3.01
Debt securities ⁽²⁾	359,653		2,236		2.48		345,889		2,134		2.46		327,493		2,211		2.70
Loans and leases ⁽³⁾:
Residential mortgage	235,271		2,083		3.54		243,405		2,195		3.61		256,297		2,359		3.68
Home equity	88,590		836		3.76		90,729		842		3.72		98,172		930		3.77
U.S. credit card	88,866		2,093		9.34		88,058		2,042		9.30		90,005		2,226		9.81
Non-U.S. credit card	11,784		304		10.25		11,759		308		10.51		10,633		317		11.81
Direct/Indirect consumer	82,669		523		2.51		82,102		524		2.56		83,773		587		2.78
Other consumer	2,111		19		3.44		2,012		17		3.60		1,876		19		3.88
Total consumer	509,291		5,858		4.58		518,065		5,928		4.58		540,756		6,438		4.74
U.S. commercial	230,891		1,659		2.85		230,486		1,673		2.91		221,541		1,704		3.05
Commercial real estate	46,071		344		2.96		48,315		357		2.97		43,164		352		3.24
Commercial lease financing	24,325		211		3.48		24,409		193		3.16		23,862		203		3.41
Non-U.S. commercial	88,663		560		2.51		91,305		569		2.50		94,655		529		2.22
Total commercial	389,950		2,774		2.83		394,515		2,792		2.84		383,222		2,788		2.89
Total loans and leases	899,241		8,632		3.82		912,580		8,720		3.83		923,978		9,226		3.97
Other earning assets	65,995		710		4.27		65,099		665		4.09		74,022		677		3.62
Total earning assets⁽⁴⁾	1,813,482		13,083		2.87		1,840,850		13,154		2.86		1,789,045		13,595		3.02
Cash and due from banks ⁽¹⁾	25,120						27,377						34,704
Other assets, less allowance for loan and lease losses	297,507						301,328						299,681
Total assets	$	2,136,109					$	2,169,555					$	2,123,430


⁽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:



	Third Quarter 2014				Second Quarter 2014				Third Quarter 2013
Federal funds sold and securities borrowed or purchased under agreements to resell		$	10			$	14			$	15
Debt securities		(27		)		(13		)		(2		)
U.S. commercial		(13		)		(14		)		(14		)
Net hedge expenses on assets		$	(30	)		$	(13	)		$	(1	)

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)
	Third Quarter 2014						Second Quarter 2014						Third 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	$	46,803	$	1	0.01	%	$	47,450	$	—	—	%	$	43,968	$	5	0.05	%
NOW and money market deposit accounts	517,043		78		0.06		519,399		79		0.06		508,136		100		0.08
Consumer CDs and IRAs	65,579		58		0.35		68,706		70		0.41		78,161		113		0.57
Negotiable CDs, public funds and other deposits	31,806		28		0.34		33,412		29		0.35		27,108		28		0.41
Total U.S. interest-bearing deposits	661,231		165		0.10		668,967		178		0.11		657,373		246		0.15
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries	8,022		22		1.10		10,538		19		0.72		12,799		17		0.54
Governments and official institutions	1,706		1		0.15		1,754		—		0.14		1,551		1		0.19
Time, savings and other	61,331		82		0.54		64,091		85		0.53		54,926		70		0.51
Total non-U.S. interest-bearing deposits	71,059		105		0.59		76,383		104		0.55		69,276		88		0.50
Total interest-bearing deposits	732,290		270		0.15		745,350		282		0.15		726,649		334		0.18
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings	255,111		591		0.92		271,247		763		1.13		279,425		683		0.97
Trading account liabilities	84,988		392		1.83		95,153		398		1.68		84,648		375		1.76
Long-term debt	251,772		1,386		2.19		259,825		1,485		2.29		258,717		1,724		2.65
Total interest-bearing liabilities ⁽¹⁾	1,324,161		2,639		0.79		1,371,575		2,928		0.86		1,349,439		3,116		0.92
Noninterest-bearing sources:
Noninterest-bearing deposits	395,198						383,213						363,962
Other liabilities	178,712						178,970						179,637
Shareholders’ equity	238,038						235,797						230,392
Total liabilities and shareholders’ equity	$	2,136,109					$	2,169,555					$	2,123,430
Net interest spread					2.08	%					2.00	%					2.10	%
Impact of noninterest-bearing sources					0.21						0.22						0.23
Net interest income/yield on earning assets			$	10,444	2.29	%			$	10,226	2.22	%			$	10,479	2.33	%


⁽¹⁾	The impact of interest rate risk management derivatives on interest expense is presented below. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest expense on:



	Third Quarter 2014				Second Quarter 2014				Third Quarter 2013
NOW and money market deposit accounts		$	—			$	(1	)		$	—
Consumer CDs and IRAs		6				12				23
Negotiable CDs, public funds and other deposits		3				4				3
Banks located in non-U.S. countries		9				6				2
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings		260				263				260
Long-term debt		(880		)		(905		)		(844		)
Net hedge income on liabilities		$	(602	)		$	(621	)		$	(556	)

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
Year-to-Date Average Balances and Interest Rates – Fully Taxable-equivalent Basis
(Dollars in millions)
	Nine Months Ended September 30
	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⁾	$	115,670	$	234	0.27	%	$	66,636	$	123	0.25	%
Time deposits placed and other short-term investments	11,603		129		1.49		16,162		139		1.15
Federal funds sold and securities borrowed or purchased under agreements to resell	224,001		801		0.48		231,379		925		0.53
Trading account assets	146,205		3,575		3.27		173,312		3,697		2.85
Debt securities ⁽²⁾	345,194		6,375		2.45		342,278		7,324		2.85
Loans and leases ⁽³⁾:
Residential mortgage	242,034		6,516		3.59		257,393		6,944		3.60
Home equity	90,676		2,531		3.73		101,911		2,880		3.78
U.S. credit card	88,820		6,227		9.37		90,473		6,667		9.85
Non-U.S. credit card	11,700		920		10.51		10,757		961		11.95
Direct/Indirect consumer	82,170		1,577		2.57		82,879		1,805		2.91
Other consumer	2,029		54		3.56		1,766		56		4.13
Total consumer	517,429		17,825		4.60		545,179		19,313		4.73
U.S. commercial	229,822		4,983		2.90		216,609		5,108		3.15
Commercial real estate	47,703		1,069		3.00		41,000		1,018		3.32
Commercial lease financing	24,485		638		3.48		23,659		645		3.63
Non-U.S. commercial	90,921		1,672		2.46		88,441		1,539		2.33
Total commercial	392,931		8,362		2.84		369,709		8,310		3.00
Total loans and leases	910,360		26,187		3.84		914,888		27,623		4.03
Other earning assets	66,214		2,072		4.18		81,920		2,123		3.46
Total earning assets⁽⁴⁾	1,819,247		39,373		2.89		1,826,575		41,954		3.07
Cash and due from banks ⁽¹⁾	26,907						36,904
Other assets, less allowance for loan and lease losses	302,144						309,685
Total assets	$	2,148,298					$	2,173,164


⁽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		$	37			$	39
Debt securities		(42		)		(172		)
U.S. commercial		(43		)		(70		)
Non-U.S. commercial		—				(2		)
Net hedge expenses on assets		$	(48	)		$	(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
Year-to-Date Average Balances and Interest Rates – Fully Taxable-equivalent Basis (continued)
(Dollars in millions)
	Nine Months Ended September 30
	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	$	46,489	$	2	0.01	%	$	43,937	$	17	0.05	%
NOW and money market deposit accounts	519,870		240		0.06		503,339		324		0.09
Consumer CDs and IRAs	68,455		212		0.41		81,694		375		0.61
Negotiable CDs, public funds and other deposits	31,688		84		0.35		25,707		87		0.45
Total U.S. interest-bearing deposits	666,502		538		0.11		654,677		803		0.16
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries	9,866		62		0.84		11,936		58		0.65
Governments and official institutions	1,772		2		0.14		1,534		2		0.18
Time, savings and other	61,979		241		0.52		54,651		219		0.54
Total non-U.S. interest-bearing deposits	73,617		305		0.55		68,121		279		0.55
Total interest-bearing deposits	740,119		843		0.15		722,798		1,082		0.20
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings	259,786		1,963		1.01		311,486		2,241		0.96
Trading account liabilities	90,176		1,225		1.82		90,321		1,274		1.89
Long-term debt	255,084		4,386		2.30		267,582		5,232		2.61
Total interest-bearing liabilities ⁽¹⁾	1,345,165		8,417		0.84		1,392,187		9,829		0.94
Noninterest-bearing sources:
Noninterest-bearing deposits	384,658						359,207
Other liabilities	181,674						187,644
Shareholders’ equity	236,801						234,126
Total liabilities and shareholders’ equity	$	2,148,298					$	2,173,164
Net interest spread					2.05	%					2.13	%
Impact of noninterest-bearing sources					0.22						0.22
Net interest income/yield on earning assets			$	30,956	2.27	%			$	32,125	2.35	%


⁽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		38				57
Negotiable CDs, public funds and other deposits		10				10
Banks located in non-U.S. countries		18				8
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings		780				779
Long-term debt		(2,660		)		(2,687		)
Net hedge income on liabilities		$	(1,815	)		$	(1,834	)

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)
	September 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
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

	June 30, 2014
Available-for-sale debt securities
U.S. Treasury and agency securities	$	38,417	$	301	$	(15	)	$	38,703
Mortgage-backed securities:
Agency	161,636		1,571		(1,664		)	161,543
Agency-collateralized mortgage obligations	12,370		132		(61		)	12,441
Non-agency residential	4,818		272		(84		)	5,006
Commercial	2,240		39		(1		)	2,278
Non-U.S. securities	7,034		40		(5		)	7,069
Corporate/Agency bonds	813		18		(3		)	828
Other taxable securities, substantially all asset-backed securities	13,587		38		(10		)	13,615
Total taxable securities	240,915		2,411		(1,843		)	241,483
Tax-exempt securities	8,802		5		(18		)	8,789
Total available-for-sale debt securities	249,717		2,416		(1,861		)	250,272
Other debt securities carried at fair value	43,032		151		(594		)	42,589
Total debt securities carried at fair value	292,749		2,567		(2,455		)	292,861
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities	60,022		247		(1,088		)	59,181
Total debt securities	$	352,771	$	2,814	$	(3,543	)	$	352,042
Available-for-sale marketable equity securities ⁽¹⁾	$	276	$	—	$	(36	)	$	240


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



Other Debt Securities Carried at Fair Value
(Dollars in millions)	September 30 2014		June 30 2014
U.S. Treasury and agency securities	$	3,180	$	4,242
Mortgage-backed securities:
Agency	15,711		16,448
Non-agency residential	3,717		3,401
Commercial	787		793
Non-U.S. securities ⁽¹⁾	17,405		17,395
Other taxable securities, substantially all asset-backed securities	309		310
Total	$	41,109	$	42,589


⁽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)
	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		$	1,460		$	2,249		$	988		$	76
Noninterest income	10,990		2,559		374			3,206			1,844			3,148			(141		)
Total revenue, net of interest expense (FTE basis)	21,434		7,511		1,093			4,666			4,093			4,136			(65		)
Provision for credit losses	636		617		286			(15		)	(32		)	45			(265		)
Noninterest expense	19,742		3,979		7,275			3,403			1,904			2,936			245
Income (loss) before income taxes	1,056		2,915		(6,468		)	1,278			2,221			1,155			(45		)
Income tax expense (benefit) (FTE basis)	888		1,059		(1,284		)	465			807			386			(545		)
Net income (loss)	$	168	$	1,856	$	(5,184	)	$	813		$	1,414		$	769		$	500

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			599,893			157,665
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

	Second Quarter 2014
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services			GWIM			Global Banking			Global Markets			All Other
Net interest income (FTE basis)	$	10,226	$	4,930	$	697		$	1,485		$	2,240		$	952		$	(78	)
Noninterest income	11,734		2,441		693			3,104			1,939			3,631			(74		)
Total revenue, net of interest expense (FTE basis)	21,960		7,371		1,390			4,589			4,179			4,583			(152		)
Provision for credit losses	411		534		(20		)	(8		)	132			19			(246		)
Noninterest expense	18,541		3,984		5,895			3,445			1,900			2,863			454
Income (loss) before income taxes	3,008		2,853		(4,485		)	1,152			2,147			1,701			(360		)
Income tax expense (benefit) (FTE basis)	717		1,056		(1,687		)	426			795			601			(474		)
Net income (loss)	$	2,291	$	1,797	$	(2,798	)	$	726		$	1,352		$	1,100		$	114

Average
Total loans and leases	$	912,580	$	160,240	$	88,257		$	118,512		$	271,417		$	63,579		$	210,575
Total assets ⁽¹⁾	2,169,555		607,839		109,585			268,294			390,998			617,103			175,736
Total deposits	1,128,563		543,567		n/m			240,042			258,937			n/m			35,851
Period end
Total loans and leases	$	911,899	$	161,142	$	88,156		$	120,187		$	270,683		$	66,260		$	205,471
Total assets ⁽¹⁾	2,170,557		612,178		107,634			265,582			407,369			610,390			167,404
Total deposits	1,134,329		545,530		n/m			237,046			270,268			n/m			32,000

	Third Quarter 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services			GWIM			Global Banking			Global Markets			All Other
Net interest income (FTE basis)	$	10,479	$	5,056	$	733		$	1,478		$	2,201		$	969		$	42
Noninterest income	11,264		2,468		844			2,912			1,807			2,250			983
Total revenue, net of interest expense (FTE basis)	21,743		7,524		1,577			4,390			4,008			3,219			1,025
Provision for credit losses	296		761		(308		)	23			322			47			(549		)
Noninterest expense	16,389		3,967		3,403			3,247			1,923			2,881			968
Income (loss) before income taxes	5,058		2,796		(1,518		)	1,120			1,763			291			606
Income tax expense (benefit) (FTE basis)	2,561		1,009		(528		)	400			626			1,166			(112		)
Net income (loss)	$	2,497	$	1,787	$	(990	)	$	720		$	1,137		$	(875	)	$	718

Average
Total loans and leases	$	923,978	$	165,719	$	88,406		$	112,752		$	260,085		$	64,491		$	232,525
Total assets ⁽¹⁾	2,123,430		583,885		118,222			268,611			346,412			602,565			203,735
Total deposits	1,090,611		522,009		n/m			239,663			239,189			n/m			35,419
Period end
Total loans and leases	$	934,392	$	167,257	$	87,586		$	114,175		$	267,165		$	68,662		$	229,547
Total assets ⁽¹⁾	2,126,653		588,676		115,407			270,484			372,490			601,038			178,558
Total deposits	1,110,118		526,836		n/m			241,553			262,502			n/m			30,909


⁽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
Year-to-Date Results by Business Segment
(Dollars in millions)
	Nine Months Ended September 30, 2014
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services			GWIM		Global Banking		Global Markets		All Other
Net interest income (FTE basis)	$	30,956	$	14,833	$	2,117		$	4,430	$	6,791	$	2,937	$	(152	)
Noninterest income	35,205		7,487		1,558			9,372		5,750		10,794		244
Total revenue, net of interest expense (FTE basis)	66,161		22,320		3,675			13,802		12,541		13,731		92
Provision for credit losses	2,056		1,963		291			—		365		83		(646		)
Noninterest expense	60,521		11,912		21,290			10,207		5,832		8,875		2,405
Income (loss) before income taxes	3,584		8,445		(17,906		)	3,595		6,344		4,773		(1,667		)
Income tax expense (benefit) (FTE basis)	1,401		3,118		(4,903		)	1,327		2,342		1,595		(2,078		)
Net income (loss)	$	2,183	$	5,327	$	(13,003	)	$	2,268	$	4,002	$	3,178	$	411

Average
Total loans and leases	$	910,360	$	161,055	$	88,378		$	118,505	$	269,963	$	63,402	$	209,057
Total assets ⁽¹⁾	2,148,298		604,850		108,177			269,719		393,094		606,140		166,318
Total deposits	1,124,777		541,119		n/m			240,716		260,398		n/m		33,147
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

	Nine Months Ended September 30, 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services			GWIM		Global Banking		Global Markets		All Other
Net interest income (FTE basis)	$	32,125	$	15,104	$	2,174		$	4,579	$	6,613	$	3,086	$	569
Noninterest income	35,975		7,265		3,829			8,731		5,563		9,106		1,481
Total revenue, net of interest expense (FTE basis)	68,100		22,369		6,003			13,310		12,176		12,192		2,050
Provision for credit losses	3,220		2,680		318			30		634		36		(478		)
Noninterest expense	51,907		12,287		12,161			9,770		5,608		8,724		3,357
Income (loss) before income taxes	12,973		7,402		(6,476		)	3,510		5,934		3,432		(829		)
Income tax expense (benefit) (FTE basis)	4,981		2,764		(2,418		)	1,311		2,216		2,233		(1,125		)
Net income (loss)	$	7,992	$	4,638	$	(4,058	)	$	2,199	$	3,718	$	1,199	$	296

Average
Total loans and leases	$	914,888	$	165,052	$	90,478		$	109,499	$	253,335	$	57,886	$	238,638
Total assets ⁽¹⁾	2,173,164		577,618		122,906			271,498		330,251		642,674		228,217
Total deposits	1,082,005		515,655		n/m			242,757		229,206		n/m		35,063
Period end
Total loans and leases	$	934,392	$	167,257	$	87,586		$	114,175	$	267,165	$	68,662	$	229,547
Total assets ⁽¹⁾	2,126,653		588,676		115,407			270,484		372,490		601,038		178,558
Total deposits	1,110,118		526,836		n/m			241,553		262,502		n/m		30,909


⁽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)
	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Net interest income (FTE basis)	$	14,833		$	15,104		$	4,952		$	4,930		$	4,951		$	4,948		$	5,056
Noninterest income:
Card income	3,563			3,568			1,234			1,167			1,162			1,236			1,175
Service charges	3,273			3,111			1,137			1,091			1,045			1,097			1,063
All other income	651			586			188			183			280			215			230
Total noninterest income	7,487			7,265			2,559			2,441			2,487			2,548			2,468
Total revenue, net of interest expense (FTE basis)	22,320			22,369			7,511			7,371			7,438			7,496			7,524

Provision for credit losses	1,963			2,680			617			534			812			427			761

Noninterest expense	11,912			12,287			3,979			3,984			3,949			4,011			3,967
Income before income taxes	8,445			7,402			2,915			2,853			2,677			3,058			2,796
Income tax expense (FTE basis)	3,118			2,764			1,059			1,056			1,003			1,072			1,009
Net income	$	5,327		$	4,638		$	1,856		$	1,797		$	1,674		$	1,986		$	1,787

Net interest yield (FTE basis)	3.52		%	3.77		%	3.45		%	3.50		%	3.63		%	3.58		%	3.70		%
Return on average allocated capital ⁽¹⁾	24.16			20.70			24.97			24.45			23.04			26.29			23.67
Efficiency ratio (FTE basis)	53.37			54.93			52.98			54.04			53.10			53.50			52.72

Balance Sheet
Average
Total loans and leases	$	161,055		$	165,052		$	160,879		$	160,240		$	162,061		$	163,157		$	165,719
Total earning assets⁽²⁾	562,807			536,290			569,084			565,723			553,444			548,244			542,614
Total assets ⁽²⁾	604,850			577,618			611,075			607,839			595,465			590,105			583,885
Total deposits	541,119			515,655			545,116			543,567			534,559			528,792			522,009
Allocated capital ⁽¹⁾	29,500			30,000			29,500			29,500			29,500			30,000			30,000

Period end
Total loans and leases	$	161,345		$	167,257		$	161,345		$	161,142		$	160,127		$	165,094		$	167,257
Total earning assets⁽²⁾	570,678			547,269			570,678			570,171			571,024			550,757			547,269
Total assets ⁽²⁾	612,684			588,676			612,684			612,178			613,153			593,074			588,676
Total deposits	546,791			526,836			546,791			545,530			552,213			531,669			526,836

⁽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 Year-to-Date Results
(Dollars in millions)
	Nine Months Ended September 30, 2014
	Total Consumer & Business Banking			Deposits			Consumer Lending
Net interest income (FTE basis)	$	14,833		$	7,737		$	7,096
Noninterest income:
Card income	3,563			51			3,512
Service charges	3,273			3,272			1
All other income	651			388			263
Total noninterest income	7,487			3,711			3,776
Total revenue, net of interest expense (FTE basis)	22,320			11,448			10,872

Provision for credit losses	1,963			194			1,769

Noninterest expense	11,912			7,835			4,077
Income before income taxes	8,445			3,419			5,026
Income tax expense (FTE basis)	3,118			1,262			1,856
Net income	$	5,327		$	2,157		$	3,170

Net interest yield (FTE basis)	3.52		%	1.89		%	6.82		%
Return on average allocated capital ⁽¹⁾	24.16			17.48			32.64
Efficiency ratio (FTE basis)	53.37			68.44			37.50

Balance Sheet
Average
Total loans and leases	$	161,055		$	22,443		$	138,612
Total earning assets ⁽²⁾	562,807			545,988			139,149
Total assets ⁽²⁾	604,850			578,653			148,527
Total deposits	541,119			540,337			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

	Nine Months Ended September 30, 2013
	Total Consumer & Business Banking			Deposits			Consumer Lending
Net interest income (FTE basis)	$	15,104		$	7,317		$	7,787
Noninterest income:
Card income	3,568			45			3,523
Service charges	3,111			3,110			1
All other income	586			344			242
Total noninterest income	7,265			3,499			3,766
Total revenue, net of interest expense (FTE basis)	22,369			10,816			11,553

Provision for credit losses	2,680			194			2,486

Noninterest expense	12,287			8,333			3,954
Income before income taxes	7,402			2,289			5,113
Income tax expense (FTE basis)	2,764			855			1,909
Net income	$	4,638		$	1,434		$	3,204

Net interest yield (FTE basis)	3.77		%	1.88		%	7.28		%
Return on average allocated capital ⁽¹⁾	20.70			12.46			29.39
Efficiency ratio (FTE basis)	54.93			77.04			34.22

Balance Sheet
Average
Total loans and leases	$	165,052		$	22,477		$	142,575
Total earning assets ⁽²⁾	536,290			519,824			143,014
Total assets ⁽²⁾	577,618			552,533			151,633
Total deposits	515,655			515,190			n/m
Allocated capital ⁽¹⁾	30,000			15,400			14,600

Period end
Total loans and leases	$	167,257		$	22,372		$	144,885
Total earning assets ⁽²⁾	547,269			530,811			145,323
Total assets ⁽²⁾	588,676			563,229			154,312
Total deposits	526,836			526,291			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)
	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	1,137			1,137			—
All other income	188			144			44
Total noninterest income	2,559			1,298			1,261
Total revenue, net of interest expense (FTE basis)	7,511			3,890			3,621

Provision for credit losses	617			61			556

Noninterest expense	3,979			2,573			1,406
Income before income taxes	2,915			1,256			1,659
Income tax expense (FTE basis)	1,059			457			602
Net income	$	1,856		$	799		$	1,057

Net interest yield (FTE basis)	3.45		%	1.87		%	6.75		%
Return on average allocated capital ⁽¹⁾	24.97			19.21			32.29
Efficiency ratio (FTE basis)	52.98			66.17			38.80

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

	Second Quarter 2014
	Total Consumer & Business Banking			Deposits			Consumer Lending
Net interest income (FTE basis)	$	4,930		$	2,601		$	2,329
Noninterest income:
Card income	1,167			18			1,149
Service charges	1,091			1,091			—
All other income	183			128			55
Total noninterest income	2,441			1,237			1,204
Total revenue, net of interest expense (FTE basis)	7,371			3,838			3,533

Provision for credit losses	534			53			481

Noninterest expense	3,984			2,620			1,364
Income before income taxes	2,853			1,165			1,688
Income tax expense (FTE basis)	1,056			431			625
Net income	$	1,797		$	734		$	1,063

Net interest yield (FTE basis)	3.50		%	1.90		%	6.75		%
Return on average allocated capital ⁽¹⁾	24.45			17.85			32.83
Efficiency ratio (FTE basis)	54.04			68.22			38.63

Balance Sheet
Average
Total loans and leases	$	160,240		$	22,482		$	137,758
Total earning assets ⁽²⁾	565,723			548,315			138,304
Total assets ⁽²⁾	607,839			581,102			147,633
Total deposits	543,567			542,796			n/m
Allocated capital ⁽¹⁾	29,500			16,500			13,000

Period end
Total loans and leases	$	161,142		$	22,420		$	138,722
Total earning assets ⁽²⁾	570,171			550,545			139,162
Total assets ⁽²⁾	612,178			582,934			148,780
Total deposits	545,530			544,688			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)
	Third Quarter 2013
	Total Consumer & Business Banking			Deposits			Consumer Lending
Net interest income (FTE basis)	$	5,056		$	2,457		$	2,599
Noninterest income:
Card income	1,175			15			1,160
Service charges	1,063			1,063			—
All other income	230			126			104
Total noninterest income	2,468			1,204			1,264
Total revenue, net of interest expense (FTE basis)	7,524			3,661			3,863

Provision for credit losses	761			96			665

Noninterest expense	3,967			2,682			1,285
Income before income taxes	2,796			883			1,913
Income tax expense (FTE basis)	1,009			319			690
Net income	$	1,787		$	564		$	1,223

Net interest yield (FTE basis)	3.70		%	1.85		%	7.17		%
Return on average allocated capital ⁽¹⁾	23.67			14.55			33.28
Efficiency ratio (FTE basis)	52.72			73.26			33.25

Balance Sheet
Average
Total loans and leases	$	165,719		$	22,383		$	143,336
Total earning assets ⁽²⁾	542,614			526,108			143,771
Total assets ⁽²⁾	583,885			558,714			152,436
Total deposits	522,009			521,510			n/m
Allocated capital ⁽¹⁾	30,000			15,400			14,600

Period end
Total loans and leases	$	167,257		$	22,372		$	144,885
Total earning assets ⁽²⁾	547,269			530,811			145,323
Total assets ⁽²⁾	588,676			563,229			154,312
Total deposits	526,836			526,291			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)
	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Average deposit balances
Checking	$	258,648		$	235,793		$	262,894		$	259,929		$	253,013		$	247,276		$	240,474
Savings	44,858			42,174			45,142			45,797			43,619			42,139			42,365
MMS	171,477			160,248			173,375			171,589			169,424			166,828			163,955
CDs and IRAs	62,728			73,044			60,162			62,808			65,270			68,192			70,888
Non-U.S. and other	3,408			4,396			3,543			3,444			3,233			4,357			4,327
Total average deposit balances	$	541,119		$	515,655		$	545,116		$	543,567		$	534,559		$	528,792		$	522,009

Deposit spreads (excludes noninterest costs)
Checking	2.03		%	2.03		%	2.03		%	2.03		%	2.02		%	2.01		%	2.01		%
Savings	2.31			2.20			2.32			2.31			2.29			2.23			2.21
MMS	1.15			1.06			1.17			1.15			1.13			1.11			1.08
CDs and IRAs	0.50			0.52			0.50			0.49			0.50			0.50			0.51
Non-U.S. and other	0.47			0.98			0.40			0.42			0.62			0.85			0.93
Total deposit spreads	1.58			1.52			1.60			1.59			1.56			1.54			1.52

Client brokerage assets	$	108,533		$	89,517		$	108,533		$	105,926		$	100,206		$	96,048		$	89,517

Online banking active accounts (units in thousands)	30,821			30,197			30,821			30,429			30,470			29,950			30,197
Mobile banking active accounts (units in thousands)	16,107			13,967			16,107			15,475			14,986			14,395			13,967
Banking centers	4,947			5,243			4,947			5,023			5,095			5,151			5,243
ATMs	15,675			16,201			15,675			15,976			16,214			16,259			16,201

Total U.S. credit card ⁽¹⁾
Loans
Average credit card outstandings	$	88,820		$	90,473		$	88,866		$	88,058		$	89,545		$	90,057		$	90,005
Ending credit card outstandings	89,026			90,280			89,026			89,020			87,692			92,338			90,280
Credit quality
Net charge-offs	$	2,026		$	2,652		$	625		$	683		$	718		$	724		$	788
	3.05		%	3.92		%	2.79		%	3.11		%	3.25		%	3.19		%	3.47		%
30+ delinquency	$	1,702		$	2,112		$	1,702		$	1,698		$	1,878		$	2,074		$	2,112
	1.91		%	2.34		%	1.91		%	1.91		%	2.14		%	2.25		%	2.34		%
90+ delinquency	$	831		$	1,049		$	831		$	868		$	966		$	1,053		$	1,049
	0.93		%	1.16		%	0.93		%	0.98		%	1.10		%	1.14		%	1.16		%
Other Total U.S. credit card indicators ⁽¹⁾
Gross interest yield	9.37		%	9.85		%	9.34		%	9.30		%	9.48		%	9.36		%	9.82		%
Risk-adjusted margin	9.26			8.54			9.33			8.97			9.49			9.11			8.68
New accounts (in thousands)	3,357			2,912			1,202			1,128			1,027			999			1,048
Purchase volumes	$	156,231		$	151,400		$	53,784		$	53,583		$	48,863		$	54,514		$	52,823

Debit card data
Purchase volumes	$	203,372		$	199,087		$	67,990		$	69,492		$	65,890		$	68,000		$	66,712


⁽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)
	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Net interest income (FTE basis)	$	2,117		$	2,174		$	719		$	697		$	701		$	716		$	733
Noninterest income:
Mortgage banking income	1,432			3,672			358			605			469			913			775
All other income	126			157			16			88			22			83			69
Total noninterest income	1,558			3,829			374			693			491			996			844
Total revenue, net of interest expense (FTE basis)	3,675			6,003			1,093			1,390			1,192			1,712			1,577

Provision for credit losses	291			318			286			(20		)	25			(474		)	(308		)

Noninterest expense	21,290			12,161			7,275			5,895			8,120			3,778			3,403
Loss before income taxes	(17,906		)	(6,476		)	(6,468		)	(4,485		)	(6,953		)	(1,592		)	(1,518		)
Income tax benefit (FTE basis)	(4,903		)	(2,418		)	(1,284		)	(1,687		)	(1,932		)	(541		)	(528		)
Net loss	$	(13,003	)	$	(4,058	)	$	(5,184	)	$	(2,798	)	$	(5,021	)	$	(1,051	)	$	(990	)

Net interest yield (FTE basis)	3.05		%	2.84		%	3.13		%	2.98		%	3.05		%	2.89		%	2.91		%

Balance Sheet
Average
Total loans and leases	$	88,378		$	90,478		$	87,971		$	88,257		$	88,914		$	89,687		$	88,406
Total earning assets	92,770			102,498			91,244			93,797			93,290			98,220			99,759
Total assets	108,177			122,906			104,451			109,585			110,562			113,581			118,222
Allocated capital⁽¹⁾	23,000			24,000			23,000			23,000			23,000			24,000			24,000

Period end
Total loans and leases	$	87,962		$	87,586		$	87,962		$	88,156		$	88,355		$	89,753		$	87,586
Total earning assets	91,973			98,247			91,973			92,291			92,937			97,163			98,247
Total assets	103,309			115,407			103,309			107,634			112,250			113,391			115,407

Period end (in billions)
Mortgage serviced portfolio ⁽²⁾	$	722.0		$	889.4		$	722.0		$	760.0		$	780.0		$	810.0		$	889.4


⁽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 Year-to-Date Results ⁽¹⁾
(Dollars in millions)
	Nine Months Ended September 30, 2014
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	2,117		$	990		$	1,127
Noninterest income:
Mortgage banking income	1,432			620			812
All other income	126			22			104
Total noninterest income	1,558			642			916
Total revenue, net of interest expense (FTE basis)	3,675			1,632			2,043

Provision for credit losses	291			50			241

Noninterest expense	21,290			2,012			19,278
Loss before income taxes	(17,906		)	(430		)	(17,476		)
Income tax benefit (FTE basis)	(4,903		)	(159		)	(4,744		)
Net loss	$	(13,003	)	$	(271	)	$	(12,732	)

Balance Sheet
Average
Total loans and leases	$	88,378		$	51,705		$	36,673
Total earning assets⁽²⁾	92,770			54,144			38,626
Total assets ⁽²⁾	108,177			54,146			54,031
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

	Nine Months Ended September 30, 2013
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	2,174		$	1,020		$	1,154
Noninterest income:
Mortgage banking income	3,672			1,696			1,976
All other income (loss)	157			(23		)	180
Total noninterest income	3,829			1,673			2,156
Total revenue, net of interest expense (FTE basis)	6,003			2,693			3,310

Provision for credit losses	318			145			173

Noninterest expense	12,161			2,576			9,585
Loss before income taxes	(6,476		)	(28		)	(6,448		)
Income tax benefit (FTE basis)	(2,418		)	(10		)	(2,408		)
Net loss	$	(4,058	)	$	(18	)	$	(4,040	)

Balance Sheet
Average
Total loans and leases	$	90,478		$	46,990		$	43,488
Total earning assets ⁽²⁾	102,498			53,180			49,318
Total assets⁽²⁾	122,906			53,594			69,312
Allocated capital ⁽³⁾	24,000			6,000			18,000

Period end
Total loans and leases	$	87,586		$	46,875		$	40,711
Total earning assets ⁽²⁾	98,247			51,248			46,999
Total assets ⁽²⁾	115,407			51,057			64,350

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)
	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	358			206			152
All other income (loss)	16			(2		)	18
Total noninterest income	374			204			170
Total revenue, net of interest expense (FTE basis)	1,093			536			557

Provision for credit losses	286			18			268

Noninterest expense	7,275			629			6,646
Loss before income taxes	(6,468		)	(111		)	(6,357		)
Income tax benefit (FTE basis)	(1,284		)	(40		)	(1,244		)
Net loss	$	(5,184	)	$	(71	)	$	(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

	Second Quarter 2014
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	697		$	335		$	362
Noninterest income:
Mortgage banking income	605			237			368
All other income	88			18			70
Total noninterest income	693			255			438
Total revenue, net of interest expense (FTE basis)	1,390			590			800

Provision for credit losses	(20		)	19			(39		)

Noninterest expense	5,895			664			5,231
Loss before income taxes	(4,485		)	(93		)	(4,392		)
Income tax benefit (FTE basis)	(1,687		)	(34		)	(1,653		)
Net loss	$	(2,798	)	$	(59	)	$	(2,739	)

Balance Sheet
Average
Total loans and leases	$	88,257		$	51,553		$	36,704
Total earning assets ⁽²⁾	93,797			53,934			39,863
Total assets ⁽²⁾	109,585			53,960			55,625
Allocated capital ⁽³⁾	23,000			6,000			17,000

Period end
Total loans and leases	$	88,156		$	52,172		$	35,984
Total earning assets ⁽²⁾	92,291			55,058			37,233
Total assets ⁽²⁾	107,634			54,987			52,647

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)
	Third Quarter 2013
	Total Consumer Real Estate Services			Home Loans			Legacy Assets & Servicing
Net interest income (FTE basis)	$	733		$	329		$	404
Noninterest income:
Mortgage banking income	775			345			430
All other income	69			35			34
Total noninterest income	844			380			464
Total revenue, net of interest expense (FTE basis)	1,577			709			868

Provision for credit losses	(308		)	(11		)	(297		)

Noninterest expense	3,403			885			2,518
Loss before income taxes	(1,518		)	(165		)	(1,353		)
Income tax benefit (FTE basis)	(528		)	(63		)	(465		)
Net loss	$	(990	)	$	(102	)	$	(888	)

Balance Sheet
Average
Total loans and leases	$	88,406		$	46,878		$	41,528
Total earning assets ⁽²⁾	99,759			52,074			47,685
Total assets ⁽²⁾	118,222			52,305			65,917
Allocated capital ⁽³⁾	24,000			6,000			18,000

Period end
Total loans and leases	$	87,586		$	46,875		$	40,711
Total earning assets ⁽²⁾	98,247			51,248			46,999
Total assets ⁽²⁾	115,407			51,057			64,350


⁽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)
	Nine Months Ended September 30								Third Quarter 2014				Second Quarter 2014				First Quarter 2014				Fourth Quarter 2013				Third Quarter 2013
	2014				2013				Third Quarter 2014				Second Quarter 2014				First Quarter 2014				Fourth Quarter 2013				Third Quarter 2013
Mortgage servicing rights at fair value rollforward
Balance, beginning of period	$	5,042			$	5,716			$	4,134			$	4,577			$	5,042			$	5,058			$	5,827
Net additions (sales)	202				(1,375		)		140				32				30				(197		)		(600		)
Amortization of expected cash flows ⁽¹⁾	(620		)		(814		)		(201		)		(209		)		(210		)		(229		)		(240		)
Other changes in mortgage servicing rights fair value ⁽²⁾	(638		)		1,531				(87		)		(266		)		(285		)		410				71
Balance, end of period ⁽³⁾	$	3,986			$	5,058			$	3,986			$	4,134			$	4,577			$	5,042			$	5,058

Capitalized mortgage servicing rights (% of loans serviced for investors)	81			bps	82			bps	81			bps	82			bps	87			bps	92			bps	82			bps
Mortgage loans serviced for investors (in billions)	$	491			$	616			$	491			$	505			$	527			$	550			$	616

Loan production
Total ⁽⁴⁾
First mortgage	$	31,674			$	71,797			$	11,725			$	11,099			$	8,850			$	11,624			$	22,601
Home equity	7,812				4,446				3,224				2,603				1,985				1,915				1,831
Consumer Real Estate Services
First mortgage	$	24,024			$	57,611			$	8,861			$	8,461			$	6,702			$	9,302			$	17,833
Home equity	7,157				3,824				2,970				2,396				1,791				1,674				1,599

Mortgage banking income
Production income:
Core production revenue	$	884			$	2,140			$	293			$	318			$	273			$	404			$	465
Representations and warranties provision	(432		)		(770		)		(167		)		(87		)		(178		)		(70		)		(323		)
Total production income	452				1,370				126				231				95				334				142
Servicing income:
Servicing fees	1,441				2,400				452				475				514				629				700
Amortization of expected cash flows ⁽¹⁾	(620		)		(814		)		(201		)		(209		)		(210		)		(229		)		(240		)
Fair value changes of mortgage servicing rights, net of risk management activities used to hedge certain market risks ⁽⁵⁾	152				693				(19		)		105				66				174				167
Other servicing-related revenue	7				23				—				3				4				5				6
Total net servicing income	980				2,302				232				374				374				579				633
Total Consumer Real Estate Services mortgage banking income	1,432				3,672				358				605				469				913				775
Other business segments' mortgage banking loss ⁽⁶⁾	(221		)		(646		)		(86		)		(78		)		(57		)		(65		)		(190		)
Total consolidated mortgage banking income	$	1,211			$	3,026			$	272			$	527			$	412			$	848			$	585


⁽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)
	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Net interest income (FTE basis)	$	4,430		$	4,579		$	1,460		$	1,485		$	1,485		$	1,485		$	1,478
Noninterest income:
Investment and brokerage services	7,959			7,185			2,713			2,642			2,604			2,524			2,413
All other income	1,413			1,546			493			462			458			470			499
Total noninterest income	9,372			8,731			3,206			3,104			3,062			2,994			2,912
Total revenue, net of interest expense (FTE basis)	13,802			13,310			4,666			4,589			4,547			4,479			4,390

Provision for credit losses	—			30			(15		)	(8		)	23			26			23

Noninterest expense	10,207			9,770			3,403			3,445			3,359			3,262			3,247
Income before income taxes	3,595			3,510			1,278			1,152			1,165			1,191			1,120
Income tax expense (FTE basis)	1,327			1,311			465			426			436			413			400
Net income	$	2,268		$	2,199		$	813		$	726		$	729		$	778		$	720

Net interest yield (FTE basis)	2.36		%	2.42		%	2.32		%	2.38		%	2.38		%	2.37		%	2.35		%
Return on average allocated capital ⁽¹⁾	25.37			29.57			26.98			24.37			24.75			31.01			28.71
Efficiency ratio (FTE basis)	73.95			73.41			72.94			75.07			73.86			72.83			73.97

Balance Sheet
Average
Total loans and leases	$	118,505		$	109,499		$	121,002		$	118,512		$	115,945		$	115,546		$	112,752
Total earning assets ⁽²⁾	251,042			252,487			249,738			249,893			253,538			248,156			249,204
Total assets ⁽²⁾	269,719			271,498			267,840			268,294			273,081			268,683			268,611
Total deposits	240,716			242,757			239,352			240,042			242,792			240,395			239,663
Allocated capital ⁽¹⁾	12,000			10,000			12,000			12,000			12,000			10,000			10,000

Period end
Total loans and leases	$	122,395		$	114,175		$	122,395		$	120,187		$	116,482		$	115,846		$	114,175
Total earning assets ⁽²⁾	249,586			250,677			249,586			247,180			254,802			254,031			250,677
Total assets ⁽²⁾	267,753			270,484			267,753			265,582			274,234			274,113			270,484
Total deposits	238,710			241,553			238,710			237,046			244,051			244,901			241,553

⁽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)
	Nine Months Ended September 30				Third Quarter 2014		Second Quarter 2014		First Quarter 2014			Fourth Quarter 2013		Third Quarter 2013
	2014		2013		Third Quarter 2014		Second Quarter 2014		First Quarter 2014			Fourth Quarter 2013		Third Quarter 2013
Revenues
Merrill Lynch Global Wealth Management	$	11,429	$	11,068	$	3,874	$	3,791	$	3,764		$	3,703	$	3,646
U.S. Trust	2,326		2,191		775		783		768			762		730
Other ⁽¹⁾	47		51		17		15		15			14		14
Total revenues	$	13,802	$	13,310	$	4,666	$	4,589	$	4,547		$	4,479	$	4,390

Client Balances
Client Balances by Business
Merrill Lynch Global Wealth Management	$	2,004,391	$	1,853,980	$	2,004,391	$	2,017,051	$	1,946,922		$	1,916,803	$	1,853,980
U.S. Trust	381,054		362,791		381,054		380,281		378,177			376,487		362,791
Other ⁽¹⁾	76,640		66,665		76,640		70,836		70,720			73,148		66,665

Client Balances by Type
Assets under management	$	888,006	$	779,614	$	888,006	$	878,741	$	841,818		$	821,449	$	779,614
Brokerage assets	1,073,858		1,013,688		1,073,858		1,091,558		1,054,052			1,045,122		1,013,688
Assets in custody	135,886		131,386		135,886		137,391		136,342			136,190		131,386
Deposits	238,710		241,553		238,710		237,046		244,051			244,901		241,553
Loans and leases ⁽²⁾	125,625		117,195		125,625		123,432		119,556			118,776		117,195
Total client balances	$	2,462,085	$	2,283,436	$	2,462,085	$	2,468,168	$	2,395,819		$	2,366,438	$	2,283,436

Assets Under Management Flows
Liquidity assets under management ⁽³⁾	$	3,616	$	10	$	5,910	$	135	$	(2,429	)	$	6,492	$	2,932
Long-term assets under management ⁽⁴⁾	40,420		38,394		11,168		11,870		17,382			9,425		10,341
Total assets under management flows	$	44,036	$	38,404	$	17,078	$	12,005	$	14,953		$	15,917	$	13,273

Associates ⁽⁵⁾
Number of Financial Advisors	15,868		15,624		15,868		15,560		15,323			15,317		15,624
Total Wealth Advisors	17,040		16,846		17,040		16,721		16,481			16,517		16,846
Total Client Facing Professionals	19,728		19,524		19,728		19,416		19,199			19,217		19,524

Merrill Lynch Global Wealth Management Metrics
Financial Advisor Productivity ⁽⁶⁾ (in thousands)	$	1,064	$	994	$	1,077	$	1,060	$	1,056		$	1,039	$	1,000

U.S. Trust Metrics
Client Facing Professionals	2,135		2,080		2,135		2,110		2,117			2,091		2,080


⁽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 1,868, 1,716, 1,598, 1,545 and 1,585 at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 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)
	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Net interest income (FTE basis)	$	6,791		$	6,613		$	2,249		$	2,240		$	2,302		$	2,301		$	2,201
Noninterest income:
Service charges	2,050			2,103			684			679			687			684			716
Investment banking fees	2,383			2,276			727			834			822			958			693
All other income	1,317			1,184			433			426			458			360			398
Total noninterest income	5,750			5,563			1,844			1,939			1,967			2,002			1,807
Total revenue, net of interest expense (FTE basis)	12,541			12,176			4,093			4,179			4,269			4,303			4,008

Provision for credit losses	365			634			(32		)	132			265			441			322

Noninterest expense	5,832			5,608			1,904			1,900			2,028			1,943			1,923
Income before income taxes	6,344			5,934			2,221			2,147			1,976			1,919			1,763
Income tax expense (FTE basis)	2,342			2,216			807			795			740			664			626
Net income	$	4,002		$	3,718		$	1,414		$	1,352		$	1,236		$	1,255		$	1,137

Net interest yield (FTE basis)	2.60		%	3.07		%	2.52		%	2.58		%	2.68		%	2.71		%	2.87		%
Return on average allocated capital ⁽¹⁾	17.27			21.62			18.09			17.51			16.18			21.66			19.63
Efficiency ratio (FTE basis)	46.50			46.05			46.54			45.44			47.50			45.16			47.94

Balance Sheet
Average
Total loans and leases	$	269,963		$	253,335		$	267,047		$	271,417		$	271,475		$	268,864		$	260,085
Total earnings assets ⁽²⁾	349,827			288,427			353,829			347,661			347,926			336,370			304,726
Total assets ⁽²⁾	393,094			330,251			395,185			390,998			393,075			379,927			346,412
Total deposits	260,398			229,206			265,721			258,937			256,433			259,193			239,189
Allocated capital ⁽¹⁾	31,000			23,000			31,000			31,000			31,000			23,000			23,000

Period end
Total loans and leases	$	268,612		$	267,165		$	268,612		$	270,683		$	273,239		$	269,469		$	267,165
Total earnings assets ⁽²⁾	345,282			330,006			345,282			363,715			354,214			336,606			330,006
Total assets ⁽²⁾	386,919			372,490			386,919			407,369			397,017			378,659			372,490
Total deposits	255,177			262,502			255,177			270,268			257,502			265,171			262,502

⁽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)
	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Investment Banking fees ⁽¹⁾
Advisory ⁽²⁾	$	782		$	699		$	291		$	234		$	257		$	320		$	226
Debt issuance	1,153			1,177			318			388			447			443			343
Equity issuance	448			400			118			212			118			195			124
Total Investment Banking fees⁽³⁾	$	2,383		$	2,276		$	727		$	834		$	822		$	958		$	693

Business Lending
Corporate	$	2,621		$	2,609		$	878		$	830		$	913		$	823		$	891
Commercial	2,946			2,956			932			1,005			1,009			1,011			960
Total Business Lending revenue	$	5,567		$	5,565		$	1,810		$	1,835		$	1,922		$	1,834		$	1,851

Global Transaction Services
Corporate	$	2,272		$	2,073		$	776		$	761		$	735		$	731		$	711
Commercial	2,183			2,192			729			719			735			747			741
Total Global Transaction Services revenue	$	4,455		$	4,265		$	1,505		$	1,480		$	1,470		$	1,478		$	1,452

Average deposit balances
Interest-bearing	$	76,952		$	70,076		$	75,304		$	78,010		$	77,568		$	78,229		$	73,011
Noninterest-bearing	183,446			159,130			190,417			180,927			178,865			180,964			166,178
Total average deposits	$	260,398		$	229,206		$	265,721		$	258,937		$	256,433		$	259,193		$	239,189

Loan spread	1.73		%	1.84		%	1.69		%	1.71		%	1.80		%	1.75		%	1.78		%

Provision for credit losses	$	365		$	634		$	(32	)	$	132		$	265		$	441		$	322

Credit quality ^{(4, 5)}
Reservable utilized criticized exposure	$	9,011		$	10,111		$	9,011		$	9,467		$	9,512		$	9,357		$	10,111
	3.07		%	3.44		%	3.07		%	3.20		%	3.19		%	3.17		%	3.44		%

Nonperforming loans, leases and foreclosed properties	$	798		$	919		$	798		$	717		$	650		$	639		$	919
	0.30		%	0.35		%	0.30		%	0.27		%	0.24		%	0.24		%	0.35		%

Average loans and leases by product
U.S. commercial	$	135,586		$	127,091		$	135,320		$	136,193		$	135,247		$	132,263		$	128,600
Commercial real estate	43,138			36,909			41,199			43,816			44,436			42,622			39,172
Commercial lease financing	25,238			24,640			25,127			25,165			25,427			25,115			24,846
Non-U.S. commercial	65,995			64,686			65,395			66,238			66,362			68,860			67,459
Other	6			9			6			5			3			4			8
Total average loans and leases	$	269,963		$	253,335		$	267,047		$	271,417		$	271,475		$	268,864		$	260,085

Total Corporation Investment Banking fees
Advisory ⁽²⁾	$	866		$	773		$	316		$	264		$	286		$	352		$	255
Debt issuance	2,700			2,818			784			891			1,025			985			809
Equity issuance	1,142			1,008			315			514			313			464			329
Total investment banking fees including self-led deals	4,708			4,599			1,415			1,669			1,624			1,801			1,393
Self-led deals	(184		)	(211		)	(64		)	(38		)	(82		)	(63		)	(96		)
Total Investment Banking fees	$	4,524		$	4,388		$	1,351		$	1,631		$	1,542		$	1,738		$	1,297


⁽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 in 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

	Nine Months Ended September 30, 2014
	Global			U.S.
	Product Ranking	Market Share		Product Ranking	Market Share
Net investment banking revenue	3	6.5	%	2	9.7	%
Announced mergers and acquisitions	5	18.8		6	23.0
Equity capital markets	5	6.7		4	10.6
Debt capital markets	5	5.6		2	10.1
High-yield corporate debt	7	6.4		3	8.4
Leveraged loans	2	9.2		2	11.6
Mortgage-backed securities	9	5.9		9	6.6
Asset-backed securities	1	13.4		1	17.1
Convertible debt	4	7.8		4	10.3
Common stock underwriting	5	6.5		2	10.7
Investment-grade corporate debt	1	6.3		1	12.4
Syndicated loans	2	8.7		2	12.7

Source: Dealogic data as of October 1, 2014. 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 revenue 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		Investment-grade corporate debt
Leveraged loans		Syndicated loans
Asset-backed securities		Debt capital markets
Common stock underwriting

Top 3 rankings excluding self-led deals:


Global:	Leveraged loans, Asset-backed securities, Investment-grade corporate debt, Syndicated loans


U.S.:	High-yield corporate debt, Leveraged loans, Asset-backed securities, Common stock underwriting, Investment-grade corporate debt, Syndicated loans, 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)
	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Net interest income (FTE basis)	$	2,937		$	3,086		$	988		$	952		$	997		$	1,138		$	969
Noninterest income:
Investment and brokerage services	1,623			1,557			522			540			561			489			480
Investment banking fees	2,073			1,969			577			760			736			755			622
Trading account profits	5,921			5,939			1,786			1,768			2,367			795			1,201
All other income (loss)	1,177			(359		)	263			563			351			21			(53		)
Total noninterest income	10,794			9,106			3,148			3,631			4,015			2,060			2,250
Total revenue, net of interest expense (FTE basis) ⁽²⁾	13,731			12,192			4,136			4,583			5,012			3,198			3,219

Provision for credit losses	83			36			45			19			19			104			47

Noninterest expense	8,875			8,724			2,936			2,863			3,076			3,275			2,881
Income (loss) before income taxes	4,773			3,432			1,155			1,701			1,917			(181		)	291
Income tax expense (benefit) (FTE basis)	1,595			2,233			386			601			608			(133		)	1,166
Net income (loss)	$	3,178		$	1,199		$	769		$	1,100		$	1,309		$	(48	)	$	(875	)

Return on average allocated capital ⁽³⁾	12.52		%	5.37		%	9.00		%	13.01		%	15.64		%	n/m			n/m
Efficiency ratio (FTE basis)	64.63			71.56			70.98			62.45			61.39			102.40		%	89.52		%

Balance Sheet
Average
Total trading-related assets ⁽⁴⁾	$	447,886		$	479,052		$	446,490		$	459,938		$	437,128		$	438,909		$	442,597
Total loans and leases	63,402			57,886			62,939			63,579			63,696			66,496			64,491
Total earning assets⁽⁴⁾	464,298			489,007			457,815			478,191			456,879			458,955			458,626
Total assets	606,140			642,674			599,893			617,103			601,439			603,014			602,565
Allocated capital ⁽³⁾	34,000			30,000			34,000			34,000			34,000			30,000			30,000

Period end
Total trading-related assets ⁽⁴⁾	$	433,597		$	438,137		$	433,597		$	443,383		$	430,894		$	411,080		$	438,137
Total loans and leases	62,645			68,662			62,645			66,260			64,598			67,381			68,662
Total earning assets⁽⁴⁾	443,364			464,600			443,364			465,380			455,103			432,807			464,600
Total assets	598,668			601,038			598,668			610,390			594,803			575,482			601,038

Trading-related assets (average)
Trading account securities	$	201,985		$	217,958		$	201,963		$	200,725		$	203,281		$	209,734		$	193,107
Reverse repurchases	115,343			145,506			116,853			119,823			109,271			114,417			128,427
Securities borrowed	86,455			64,746			83,369			94,989			80,981			67,862			73,820
Derivative assets	44,103			50,842			44,305			44,401			43,595			46,896			47,243
Total trading-related assets ⁽⁴⁾	$	447,886		$	479,052		$	446,490		$	459,938		$	437,128		$	438,909		$	442,597

⁽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)
	Nine Months Ended September 30					Third Quarter 2014		Second Quarter 2014		First Quarter 2014		Fourth Quarter 2013		Third Quarter 2013
	2014		2013			Third Quarter 2014		Second Quarter 2014		First Quarter 2014		Fourth Quarter 2013		Third Quarter 2013
Sales and trading revenue ⁽¹⁾
Fixed income, currency and commodities	$	7,833	$	6,704		$	2,381	$	2,426	$	3,026	$	1,540	$	1,636
Equities	3,327		3,351			1,097		1,045		1,185		815		918
Total sales and trading revenue	$	11,160	$	10,055		$	3,478	$	3,471	$	4,211	$	2,355	$	2,554

Sales and trading revenue, excluding net debit valuation adjustment ⁽²⁾
Fixed income, currency and commodities	$	7,563	$	7,283		$	2,247	$	2,370	$	2,946	$	2,076	$	2,029
Equities	3,211		3,312			1,026		1,032		1,153		897		969
Total sales and trading revenue, excluding net debit valuation adjustment	$	10,774	$	10,595		$	3,273	$	3,402	$	4,099	$	2,973	$	2,998

Sales and trading revenue breakdown
Net interest income	$	2,682	$	2,837		$	907	$	866	$	909	$	1,054	$	892
Commissions	1,623		1,557			522		540		561		489		480
Trading	5,921		5,939			1,786		1,768		2,367		795		1,201
Other	934		(278		)	263		297		374		17		(19		)
Total sales and trading revenue	$	11,160	$	10,055		$	3,478	$	3,471	$	4,211	$	2,355	$	2,554


⁽¹⁾	Includes Global Banking sales and trading revenue of $219 million and $319 million for the nine months ended September 30, 2014 and 2013; $67 million, $68 million and $84 million for the third, second and first quarters of 2014, respectively, and $66 million and $108 million for the fourth and third quarters 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.

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)
	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Net interest income (FTE basis)	$	(152	)	$	569		$	76		$	(78	)	$	(150	)	$	411		$	42
Noninterest income:
Card income	267			245			93			88			86			83			79
Equity investment income	679			2,217			(51		)	56			674			393			1,122
Gains on sales of debt securities	1,149			866			410			382			357			363			347
All other loss	(1,851		)	(1,847		)	(593		)	(600		)	(658		)	(737		)	(565		)
Total noninterest income	244			1,481			(141		)	(74		)	459			102			983
Total revenue, net of interest expense (FTE basis)	92			2,050			(65		)	(152		)	309			513			1,025

Provision for credit losses	(646		)	(478		)	(265		)	(246		)	(135		)	(188		)	(549		)

Noninterest expense	2,405			3,357			245			454			1,706			1,038			968
Income (loss) before income taxes	(1,667		)	(829		)	(45		)	(360		)	(1,262		)	(337		)	606
Income tax benefit (FTE basis)	(2,078		)	(1,125		)	(545		)	(474		)	(1,059		)	(856		)	(112		)
Net income (loss)	$	411		$	296		$	500		$	114		$	(203	)	$	519		$	718

Balance Sheet
Average
Total loans and leases	$	209,057		$	238,638		$	199,403		$	210,575		$	217,391		$	226,027		$	232,525
Total assets ⁽²⁾	166,318			228,217			157,665			175,736			165,644			179,565			203,735
Total deposits	33,147			35,063			29,268			35,851			34,380			34,247			35,419

Period end
Total loans and leases	$	188,356		$	229,547		$	188,356		$	205,471		$	213,416		$	220,690		$	229,547
Total assets ⁽³⁾	154,280			178,558			154,280			167,404			158,394			167,554			178,558
Total deposits	25,109			30,909			25,109			32,000			32,818			27,851			30,909

⁽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 $593.5 billion and $530.4 billion for the nine months ended September 30, 2014 and 2013; $601.9 billion, $593.1 billion, $585.3 billion, $564.0 billion and $540.4 billion for the third, second and first quarters of 2014, and the fourth and third quarters of 2013, respectively.


⁽³⁾	Includes elimination of segments' excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $592.0 billion, $608.7 billion, $609.2 billion, $569.9 billion and $557.4 billion at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 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
	September 30, 2014						June 30 2014
	Book Value		Unfunded Commitments		Total		Total
Equity Investments:
Global Principal Investments	$	1,007	$	39	$	1,046	$	1,190
Strategic and other investments	866		15		881		845
Total Equity Investments	$	1,873	$	54	$	1,927	$	2,035



Components of Equity Investment Income
(Dollars in millions)
	Nine Months Ended September 30				Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013		Third Quarter 2013
	2014		2013		Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013		Third Quarter 2013
Global Principal Investments	$	6	$	278	$	(37	)	$	71		$	(28	)	$	101	$	122
Strategic and other investments	673		1,939		(14		)	(15		)	702			292		1,000
Total equity investment income included in All Other	679		2,217		(51		)	56			674			393		1,122
Total equity investment income included in the business segments	471		210		60			301			110			81		62
Total consolidated equity investment income	$	1,150	$	2,427	$	9		$	357		$	784		$	474	$	1,184

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)
	September 30 2014		June 30 2014		September 30 2013
Consumer
Residential mortgage ⁽¹⁾	$	224,728	$	237,136	$	253,496
Home equity	87,508		89,499		96,653
U.S. credit card	89,026		89,020		90,280
Non-U.S. credit card	11,433		11,999		11,083
Direct/Indirect consumer ⁽²⁾	83,118		82,586		84,035
Other consumer ⁽³⁾	2,152		2,079		1,913
Total consumer loans excluding loans accounted for under the fair value option	497,965		512,319		537,460
Consumer loans accounted for under the fair value option ⁽⁴⁾	2,129		2,154		2,186
Total consumer	500,094		514,473		539,646

Commercial
U.S. commercial ⁽⁵⁾	228,996		231,622		224,262
Commercial real estate ⁽⁶⁾	47,023		46,815		44,940
Commercial lease financing	24,498		24,565		24,589
Non-U.S. commercial	84,650		85,677		92,945
Total commercial loans excluding loans accounted for under the fair value option	385,167		388,679		386,736
Commercial loans accounted for under the fair value option ⁽⁴⁾	6,054		8,747		8,010
Total commercial	391,221		397,426		394,746
Total loans and leases	$	891,315	$	911,899	$	934,392


⁽¹⁾	Includes pay option loans of $3.3 billion, $3.7 billion and $5.2 billion and non-U.S. residential mortgage loans of $3 million, $3 million and $87 million at September 30, 2014, June 30, 2014 and September 30, 2013, respectively. The Corporation no longer originates pay option loans.

⁽²⁾

Includes dealer financial services loans of $37.9 billion, $37.7 billion and $39.5 billion, unsecured consumer lending loans of $1.7 billion, $2.0 billion and $3.1 billion, U.S. securities-based lending loans of $34.6 billion, $33.8 billion and $30.4 billion, non-U.S. consumer loans of $4.3 billion, $4.4 billion and $5.7 billion, student loans of $3.6 billion, $3.8 billion and $4.3 billion and other consumer loans of $894 million, $937 million and $1.0 billion at September 30, 2014, June 30, 2014 and September 30, 2013, respectively.


⁽³⁾	Includes consumer finance loans of $1.0 billion, $1.1 billion and $1.2 billion, consumer leases of $937 million, $819 million and $492 million, consumer overdrafts of $173 million, $170 million and $175 million and other non-U.S. consumer loans of $3 million, $3 million and $5 million at September 30, 2014, June 30, 2014 and September 30, 2013, respectively.

⁽⁴⁾

Consumer loans accounted for under the fair value option were residential mortgage loans of $2.0 billion, $2.0 billion and $2.2 billion and home equity loans of $179 million, $170 million and $0 at September 30, 2014, June 30, 2014 and September 30, 2013, respectively. Commercial loans accounted for under the fair value option were U.S. commercial loans of $1.3 billion, $1.3 billion and $1.8 billion and non-U.S. commercial loans of $4.8 billion, $7.4 billion and $6.2 billion at September 30, 2014, June 30, 2014 and September 30, 2013, respectively.


⁽⁵⁾	Includes U.S. small business commercial loans, including card-related products, of $13.5 billion, $13.5 billion and $13.1 billion at September 30, 2014, June 30, 2014 and September 30, 2013, respectively.


⁽⁶⁾	Includes U.S. commercial real estate loans of $45.1 billion, $45.5 billion and $43.5 billion and non-U.S. commercial real estate loans of $2.0 billion, $1.3 billion and $1.4 billion at September 30, 2014, June 30, 2014 and September 30, 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)
	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

	Second Quarter 2014
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services		GWIM		Global Banking		Global Markets		All Other
Consumer
Residential mortgage	$	243,405	$	761	$	5,935	$	48,855	$	—	$	—	$	187,854
Home equity	90,729		151		82,240		6,578		—		160		1,600
U.S. credit card	88,058		84,849		—		3,209		—		—		—
Non-U.S. credit card	11,759		—		—		—		—		—		11,759
Direct/Indirect consumer	82,102		40,026		47		37,348		—		12		4,669
Other consumer	2,012		890		—		9		5		—		1,108
Total consumer	518,065		126,677		88,222		95,999		5		172		206,990

Commercial
U.S. commercial	230,486		32,900		35		20,688		136,193		35,906		4,764
Commercial real estate	48,315		651		—		1,672		43,816		1,937		239
Commercial lease financing	24,409		—		—		4		25,165		743		(1,503		)
Non-U.S. commercial	91,305		12		—		149		66,238		24,821		85
Total commercial	394,515		33,563		35		22,513		271,412		63,407		3,585
Total loans and leases	$	912,580	$	160,240	$	88,257	$	118,512	$	271,417	$	63,579	$	210,575

	Third Quarter 2013
	Total Corporation		Consumer & Business Banking		Consumer Real Estate Services		GWIM		Global Banking		Global Markets		All Other
Consumer
Residential mortgage	$	256,297	$	628	$	3,516	$	45,661	$	—	$	83	$	206,409
Home equity	98,172		146		84,761		11,719		—		108		1,438
U.S. credit card	90,005		90,005		—		—		—		—		—
Non-U.S. credit card	10,633		—		—		—		—		—		10,633
Direct/Indirect consumer	83,773		41,745		47		34,228		3		37		7,713
Other consumer	1,876		597		—		5		5		—		1,269
Total consumer	540,756		133,121		88,324		91,613		8		228		227,462

Commercial
U.S. commercial	221,541		31,368		81		19,464		128,600		35,771		6,257
Commercial real estate	43,164		1,218		1		1,488		39,172		887		398
Commercial lease financing	23,862		—		—		4		24,846		636		(1,624		)
Non-U.S. commercial	94,655		12		—		183		67,459		26,969		32
Total commercial	383,222		32,598		82		21,139		260,077		64,263		5,063
Total loans and leases	$	923,978	$	165,719	$	88,406	$	112,752	$	260,085	$	64,491	$	232,525

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
	September 30 2014		June 30 2014		September 30 2013		September 30 2014			June 30 2014			September 30 2013
Diversified financials	$	68,739	$	72,302	$	77,052	$	112,957		$	120,705		$	117,880
Real estate ⁽⁴⁾	51,006		52,982		51,529		70,739			74,535			72,271
Retailing	34,129		33,941		32,593		56,326			54,983			54,516
Healthcare equipment and services	32,415		32,410		31,560		55,847			55,737			49,221
Capital goods	29,116		28,921		27,053		52,469			53,444			51,637
Government and public education	41,648		40,174		39,672		48,786			47,613			48,031
Banking	42,772		42,543		46,517		48,204			51,100			54,354
Materials	23,378		23,292		22,607		43,443			42,809			43,638
Energy	20,338		20,744		21,212		41,454			40,826			43,241
Consumer services	21,486		21,414		21,647		34,067			34,391			35,378
Food, beverage and tobacco	15,460		15,357		14,185		33,897			31,792			31,390
Commercial services and supplies	18,808		19,259		19,249		30,819			31,013			31,312
Utilities	9,528		9,898		9,799		25,772			26,549			25,068
Transportation	16,149		16,227		15,951		23,307			23,787			23,159
Media	11,886		11,801		12,897		22,971			23,283			22,194
Individuals and trusts	16,107		15,790		14,699		20,238			19,811			18,209
Pharmaceuticals and biotechnology	4,433		4,534		7,303		15,066			13,221			14,818
Software and services	5,641		6,296		7,543		12,783			13,360			14,312
Technology hardware and equipment	5,387		6,883		5,462		12,041			13,428			11,516
Insurance, including monolines	5,023		4,827		5,875		11,169			11,075			12,165
Consumer durables and apparel	5,690		5,793		5,103		10,015			10,274			9,479
Automobiles and components	3,768		3,446		3,258		9,420			9,000			8,390
Telecommunication services	3,702		4,269		4,543		9,008			10,207			14,244
Food and staples retailing	3,742		4,079		3,884		7,214			7,831			7,928
Religious and social organizations	4,978		5,144		5,492		6,586			6,965			7,677
Other	5,253		5,544		5,331		9,373			8,686			8,166
Total commercial credit exposure by industry	$	500,582	$	507,870	$	512,016	$	823,971		$	836,425		$	830,194
Net credit default protection purchased on total commitments ⁽⁵⁾							$	(6,878	)	$	(8,678	)	$	(11,204	)

⁽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 $45.4 billion, $41.2 billion and $47.3 billion at September 30, 2014, June 30, 2014 and September 30, 2013, respectively. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $20.7 billion, $16.3 billion and $18.6 billion, which consists primarily of other marketable securities at September 30, 2014, June 30, 2014 and September 30, 2013, respectively.

⁽²⁾

Total commercial utilized and total commercial committed exposure includes loans and letters of credit accounted for under the fair value option and are comprised of loans outstanding of $6.1 billion, $8.7 billion and $8.0 billion and issued letters of credit at notional value of $518 million, $553 million and $577 million at September 30, 2014, June 30, 2014 and September 30, 2013, respectively. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $8.5 billion, $9.5 billion and $14.1 billion at September 30, 2014, June 30, 2014 and September 30, 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⁾

	September 30 2014		June 30 2014
Less than or equal to one year	45	%	40	%
Greater than one year and less than or equal to five years	53		58
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)
	September 30, 2014					June 30, 2014
Ratings ^{(2, 3)}	Net Notional ⁽⁴⁾			Percent of Total		Net Notional ⁽⁴⁾			Percent of Total
AA	$	(76	)	1.1	%	$	(77	)	0.9	%
A	(1,371		)	19.9		(1,890		)	21.8
BBB	(3,849		)	56.0		(4,885		)	56.3
BB	(906		)	13.2		(1,089		)	12.5
B	(577		)	8.4		(634		)	7.3
CCC and below	(122		)	1.8		(125		)	1.4
NR ⁽⁵⁾	23			(0.4	)	22			(0.2	)
Total net credit default protection	$	(6,878	)	100.0	%	$	(8,678	)	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 September 30 2014		Hedges and Credit Default Protection ⁽⁴⁾			Net Country Exposure at September 30 2014 ⁽⁵⁾		Increase (Decrease) from June 30 2014
United Kingdom	$	24,718	$	12,288	$	7,245	$	7,063	$	51,314	$	(4,579	)	$	46,735	$	(462	)
Canada	5,807		6,803		2,035		5,730		20,375		(2,170		)	18,205		92
China	10,898		635		680		2,085		14,298		(511		)	13,787		7
Brazil	9,226		663		343		2,969		13,201		(410		)	12,791		615
France	1,922		6,217		1,395		7,331		16,865		(4,835		)	12,030		(1,254		)
Japan	8,060		542		1,760		2,054		12,416		(1,293		)	11,123		5,081
Germany	4,348		5,908		2,505		2,222		14,983		(3,893		)	11,090		(2,159		)
India	5,563		758		240		3,760		10,321		(226		)	10,095		(622		)
Netherlands	3,743		3,942		716		2,311		10,712		(1,544		)	9,168		1,522
Australia	3,421		2,351		573		2,390		8,735		(333		)	8,402		(792		)
Hong Kong	6,546		399		205		609		7,759		(33		)	7,726		1,062
South Korea	3,670		903		547		2,452		7,572		(683		)	6,889		(392		)
Switzerland	2,121		2,668		942		590		6,321		(1,369		)	4,952		(476		)
Italy	2,733		1,230		1,827		2,374		8,164		(3,340		)	4,824		623
Singapore	2,049		207		310		1,598		4,164		(71		)	4,093		(1,235		)
Taiwan	2,517		—		214		1,193		3,924		—			3,924		(63		)
Mexico	3,212		615		130		234		4,191		(331		)	3,860		33
Russian Federation	4,935		87		321		58		5,401		(1,594		)	3,807		(129		)
Spain	2,567		834		134		933		4,468		(1,005		)	3,463		(192		)
Luxembourg	799		1,275		266		105		2,445		(413		)	2,032		204
Total top 20 non-U.S. countries exposure	$	108,855	$	48,325	$	22,388	$	48,061	$	227,629	$	(28,633	)	$	198,996	$	1,463


⁽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 $34.8 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 $92.0 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)
	September 30 2014			June 30 2014			March 31 2014			December 31 2013			September 30 2013
Residential mortgage	$	8,118		$	9,235		$	11,611		$	11,712		$	13,328
Home equity	4,026			4,181			4,185			4,075			4,176
Direct/Indirect consumer	30			29			32			35			59
Other consumer	14			15			16			18			18
Total consumer	12,188			13,460			15,844			15,840			17,581
U.S. commercial	757			849			841			819			1,059
Commercial real estate	445			252			300			322			488
Commercial lease financing	7			8			10			16			49
Non-U.S. commercial	45			7			18			64			86
	1,254			1,116			1,169			1,221			1,682
U.S. small business commercial	98			100			96			88			103
Total commercial	1,352			1,216			1,265			1,309			1,785
Total nonperforming loans and leases	13,540			14,676			17,109			17,149			19,366
Foreclosed properties ⁽¹⁾	692			624			623			623			662
Total nonperforming loans, leases and foreclosed properties ^{(2, 3, 4)}	$	14,232		$	15,300		$	17,732		$	17,772		$	20,028

Fully-insured home loans past due 30 days or more and still accruing	$	16,280		$	17,347		$	18,098		$	20,681		$	21,797
Consumer credit card past due 30 days or more and still accruing	1,903			1,923			2,115			2,321			2,376
Other loans past due 30 days or more and still accruing	4,326			4,064			5,472			5,416			5,512
Total loans past due 30 days or more and still accruing ^{(3, 5, 6)}	$	22,509		$	23,334		$	25,685		$	28,418		$	29,685

Fully-insured home loans past due 90 days or more and still accruing	$	13,045		$	14,137		$	15,125		$	16,961		$	17,960
Consumer credit card past due 90 days or more and still accruing	935			990			1,090			1,184			1,191
Other loans past due 90 days or more and still accruing	609			523			649			614			723
Total loans past due 90 days or more and still accruing ^{(3, 5, 6)}	$	14,589		$	15,650		$	16,864		$	18,759		$	19,874

Nonperforming loans, leases and foreclosed properties/Total assets ⁽⁷⁾	0.67		%	0.71		%	0.83		%	0.85		%	0.95		%
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties ⁽⁷⁾	1.61			1.70			1.96			1.93			2.17
Nonperforming loans and leases/Total loans and leases ⁽⁷⁾	1.53			1.63			1.89			1.87			2.10

Commercial utilized reservable criticized exposure ⁽⁸⁾	$	11,766		$	12,430		$	12,781		$	12,861		$	14,086
Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure ⁽⁸⁾	2.79		%	2.92		%	3.01		%	3.02		%	3.31		%
Total commercial utilized criticized exposure/Commercial utilized exposure ⁽⁸⁾	2.97			3.15			3.21			3.08			3.48


⁽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, $1.4 billion and $1.6 billion at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 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:	September 30 2014		June 30 2014		March 31 2014		December 31 2013		September 30 2013
Nonperforming loans held-for-sale	$	255	$	598	$	293	$	672	$	972
Nonperforming loans accounted for under the fair value option	436		427		431		448		467
Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010	101		140		257		260		356

⁽⁵⁾

Balances do not include loans held-for-sale past due 30 days or more and still accruing of $42 million, $37 million, $80 million, $106 million and $301 million at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 2013, respectively, and loans held-for-sale past due 90 days or more and still accruing of $0, $0, $6 million, $8 million and $0 at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 2013, respectively. At September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 2013, there were $147 million, $153 million, $129 million, $158 million and $153 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 $8.2 billion, $10.9 billion, $11.1 billion, $10.0 billion and $10.2 billion at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 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)
	Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Nonperforming Consumer Loans and Leases:
Balance, beginning of period	$	13,460		$	15,844		$	15,840		$	17,581		$	18,540
Additions to nonperforming loans and leases:
New nonperforming loans and leases	1,516			1,825			2,027			2,199			2,503
Reductions to nonperforming loans and leases:
Paydowns and payoffs	(522		)	(325		)	(468		)	(863		)	(544		)
Sales	(957		)	(1,825		)	—			(729		)	(624		)
Returns to performing status ⁽²⁾	(810		)	(939		)	(800		)	(1,112		)	(1,079		)
Charge-offs ⁽³⁾	(431		)	(640		)	(583		)	(752		)	(758		)
Transfers to foreclosed properties	(183		)	(157		)	(172		)	(147		)	(131		)
Transfers (to)/from loans held-for-sale	115			(323		)	—			(337		)	(326		)
Total net additions (reductions) to nonperforming loans and leases	(1,272		)	(2,384		)	4			(1,741		)	(959		)
Total nonperforming consumer loans and leases, end of period	12,188			13,460			15,844			15,840			17,581
Foreclosed properties	614			547			538			533			546
Nonperforming consumer loans, leases and foreclosed properties, end of period	$	12,802		$	14,007		$	16,382		$	16,373		$	18,127

Nonperforming Commercial Loans and Leases ⁽⁴⁾:
Balance, beginning of period	$	1,216		$	1,265		$	1,309		$	1,785		$	2,103
Additions to nonperforming loans and leases:
New nonperforming loans and leases	477			275			262			143			350
Advances	33			1			8			12			9
Reductions to nonperforming loans and leases:
Paydowns	(161		)	(183		)	(171		)	(322		)	(380		)
Sales	(12		)	(29		)	(27		)	(92		)	(88		)
Return to performing status ⁽⁵⁾	(80		)	(41		)	(63		)	(87		)	(91		)
Charge-offs	(116		)	(71		)	(50		)	(98		)	(104		)
Transfers to foreclosed properties	(5		)	(1		)	(3		)	(12		)	(14		)
Transfers to loans held-for-sale	—			—			—			(20		)	—
Total net additions (reductions) to nonperforming loans and leases	136			(49		)	(44		)	(476		)	(318		)
Total nonperforming commercial loans and leases, end of period	1,352			1,216			1,265			1,309			1,785
Foreclosed properties	78			77			85			90			116
Nonperforming commercial loans, leases and foreclosed properties, end of period	$	1,430		$	1,293		$	1,350		$	1,399		$	1,901


⁽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)
	Third Quarter 2014					Second Quarter 2014					First Quarter 2014					Fourth Quarter 2013					Third Quarter 2013
Net Charge-offs	Amount			Percent		Amount			Percent		Amount			Percent		Amount			Percent		Amount			Percent
Residential mortgage ⁽³⁾	$	53		0.09	%	$	(35	)	(0.06	)%	$	127		0.21	%	$	209		0.33	%	$	221		0.35	%
Home equity ⁽³⁾	89			0.40		239			1.06		302			1.32		331			1.38		302			1.22
U.S. credit card	625			2.79		683			3.11		718			3.25		724			3.19		788			3.47
Non-U.S. credit card	67			2.26		47			1.59		76			2.66		94			3.34		89			3.32
Direct/Indirect consumer	34			0.17		33			0.16		58			0.29		73			0.35		62			0.30
Other consumer	56			10.48		47			9.26		58			12.07		66			13.58		65			13.75
Total consumer ⁽³⁾	924			0.72		1,014			0.79		1,339			1.04		1,497			1.11		1,527			1.12
U.S. commercial ⁽⁴⁾	58			0.11		6			0.01		5			0.01		(28		)	(0.05	)	68			0.13
Commercial real estate	(6		)	(0.05	)	(32		)	(0.27	)	(37		)	(0.31	)	1			—		11			0.11
Commercial lease financing	(3		)	(0.05	)	(5		)	(0.07	)	(2		)	(0.04	)	(2		)	(0.03	)	(8		)	(0.13	)
Non-U.S. commercial	1			—		12			0.06		19			0.09		46			0.20		(2		)	(0.01	)
	50			0.05		(19		)	(0.02	)	(15		)	(0.02	)	17			0.02		69			0.08
U.S. small business commercial	69			2.03		78			2.34		64			1.95		68			2.07		91			2.86
Total commercial	119			0.12		59			0.06		49			0.05		85			0.09		160			0.17
Total net charge-offs ⁽³⁾	$	1,043		0.46		$	1,073		0.48		$	1,388		0.62		$	1,582		0.68		$	1,687		0.73

By Business Segment
Consumer & Business Banking	$	774		1.91	%	$	844		2.11	%	$	881		2.20	%	$	922		2.24	%	$	1,027		2.46	%
Consumer Real Estate Services	85			0.39		235			1.08		294			1.36		323			1.45		281			1.28
Global Wealth & Investment Management	6			0.02		4			0.01		25			0.09		35			0.12		26			0.09
Global Banking	50			0.07		(24		)	(0.04	)	(17		)	(0.03	)	7			0.01		35			0.05
Global Markets	—			—		3			0.02		(1		)	(0.01	)	1			0.01		—			—
All Other	128			0.26		11			0.02		206			0.39		294			0.52		318			0.54
Total net charge-offs	$	1,043		0.46		$	1,073		0.48		$	1,388		0.62		$	1,582		0.68		$	1,687		0.73

⁽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 0.48, 0.49, 0.64, 0.70 and 0.75 for the three months ended September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 2013, respectively.

⁽²⁾

Excludes write-offs of purchased credit-impaired loans of $246 million, $160 million, $391 million, $741 million and $443 million for the three months ended September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 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 0.57, 0.55, 0.79, 1.00 and 0.92 for the three months ended September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 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. Excluding this impact, annualized net charge-offs as a percentage of total average loans and leases outstanding were 0.24 for residential mortgage loans, 1.01 for home equity loans, 1.01 for total consumer loans and 0.62 for total net charge-offs for the three months ended December 31, 2013.


⁽⁴⁾	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
Year-to-Date Net Charge-offs and Net Charge-off Ratios ^{(1, 2)}
(Dollars in millions)
	Nine Months Ended September 30
	2014					2013
Net Charge-offs	Amount			Percent		Amount			Percent
Residential mortgage	$	145		0.08	%	$	875		0.46	%
Home equity	630			0.93		1,472			1.93
U.S. credit card	2,026			3.05		2,652			3.92
Non-U.S. credit card	190			2.17		305			3.80
Direct/Indirect consumer	125			0.20		272			0.44
Other consumer	161			10.58		168			12.74
Total consumer	3,277			0.85		5,744			1.41
U.S. commercial ⁽³⁾	69			0.04		156			0.10
Commercial real estate	(75		)	(0.21	)	148			0.48
Commercial lease financing	(10		)	(0.05	)	(23		)	(0.13	)
Non-U.S. commercial	32			0.05		(1		)	—
	16			0.01		280			0.11
U.S. small business commercial	211			2.11		291			3.11
Total commercial	227			0.08		571			0.21
Total net charge-offs	$	3,504		0.52		$	6,315		0.93

By Business Segment
Consumer & Business Banking	$	2,499		2.07	%	$	3,426		2.77	%
Consumer Real Estate Services	614			0.94		1,406			2.10
Global Wealth & Investment Management	35			0.04		138			0.17
Global Banking	9			—		181			0.10
Global Markets	2			0.01		1			—
All Other	345			0.22		1,163			0.65
Total net charge-offs	$	3,504		0.52		$	6,315		0.93

⁽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 0.53 and 0.96 for the nine months ended September 30, 2014 and 2013.

⁽²⁾

Excludes write-offs of purchased credit-impaired loans of $797 million and $1.6 billion for the nine months ended September 30, 2014 and 2013. 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 0.64 and 1.17 for the nine months ended September 30, 2014 and 2013.


⁽³⁾	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)
	September 30, 2014						June 30, 2014						September 30, 2013
Allowance for loan and lease losses	Amount		Percent of Total		Percent of Loans and Leases Outstanding ⁽¹⁾		Amount		Percent of Total		Percent of Loans and Leases Outstanding ⁽¹⁾		Amount		Percent of Total		Percent of Loans and Leases Outstanding ⁽¹⁾
Residential mortgage	$	3,022	20.01	%	1.34	%	$	3,214	20.33	%	1.36	%	$	4,895	25.19	%	1.93	%
Home equity	3,454		22.87		3.95		3,694		23.36		4.13		5,618		28.91		5.81
U.S. credit card	3,395		22.47		3.81		3,524		22.29		3.96		4,296		22.11		4.76
Non-U.S. credit card	388		2.57		3.39		424		2.68		3.53		488		2.51		4.40
Direct/Indirect consumer	331		2.19		0.40		371		2.35		0.45		546		2.81		0.65
Other consumer	84		0.55		3.90		98		0.62		4.71		100		0.52		5.21
Total consumer	10,674		70.66		2.14		11,325		71.63		2.21		15,943		82.05		2.97
U.S. commercial ⁽²⁾	2,587		17.12		1.13		2,712		17.15		1.17		2,012		10.35		0.90
Commercial real estate	1,030		6.82		2.19		963		6.09		2.06		895		4.61		1.99
Commercial lease financing	157		1.04		0.64		137		0.87		0.56		98		0.50		0.40
Non-U.S. commercial	658		4.36		0.78		674		4.26		0.79		484		2.49		0.52
Total commercial ⁽³⁾	4,432		29.34		1.15		4,486		28.37		1.15		3,489		17.95		0.90
Allowance for loan and lease losses	15,106		100.00	%	1.71		15,811		100.00	%	1.75		19,432		100.00	%	2.10
Reserve for unfunded lending commitments	529						503						480
Allowance for credit losses	$	15,635					$	16,314					$	19,912

Asset Quality Indicators

Allowance for loan and lease losses/Total loans and leases ⁽⁴⁾			1.71	%					1.75	%					2.10	%
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total loans and leases (excluding purchased credit-impaired loans) ^{(4, 5)}			1.57						1.59						1.81
Allowance for loan and lease losses/Total nonperforming loans and leases⁽⁶⁾			112						108						100
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total nonperforming loans and leases ⁽⁵⁾			100						95						84
Ratio of the allowance for loan and lease losses/Annualized net charge-offs ⁽⁷⁾			3.65						3.67						2.90
Ratio of the allowance for loan and lease losses (excluding purchased credit-impaired loans)/Annualized net charge-offs ⁽⁵⁾			3.27						3.25						2.42
Ratio of the allowance for loan and lease losses/Annualized net charge-offs and purchased credit-impaired write-offs			2.95						3.20						2.30

⁽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 $2.2 billion and home equity loans of $179 million, $170 million and $0 at September 30, 2014, June 30, 2014 and September 30, 2013, respectively. Commercial loans accounted for under the fair value option included U.S. commercial loans of $1.3 billion, $1.3 billion and $1.8 billion and non-U.S. commercial loans of $4.8 billion, $7.4 billion and $6.2 billion at September 30, 2014, June 30, 2014 and September 30, 2013, respectively.


⁽²⁾	Includes allowance for loan and lease losses for U.S. small business commercial loans of $530 million, $511 million and $510 million at September 30, 2014, June 30, 2014 and September 30, 2013, respectively.


⁽³⁾	Includes allowance for loan and lease losses for impaired commercial loans of $188 million, $278 million and $286 million at September 30, 2014, June 30, 2014 and September 30, 2013, respectively.


⁽⁴⁾	Total loans and leases do not include loans accounted for under the fair value option of $8.2 billion, $10.9 billion and $10.2 billion at September 30, 2014, June 30, 2014 and September 30, 2013, respectively.


⁽⁵⁾	Excludes valuation allowance on purchased credit-impaired loans of $1.6 billion, $1.8 billion and $3.2 billion at September 30, 2014, June 30, 2014 and September 30, 2013, respectively.

⁽⁶⁾

Allowance for loan and lease losses includes $6.0 billion, $6.5 billion and $9.0 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 September 30, 2014, June 30, 2014 and September 30, 2013, respectively. Excluding these amounts, allowance for loan and lease losses as a percentage of total nonperforming loans and leases was 67 percent, 64 percent and 54 percent at September 30, 2014, June 30, 2014 and September 30, 2013, respectively.


⁽⁷⁾	Net charge-offs exclude $246 million, $160 million and $443 million of write-offs in the purchased credit-impaired loan portfolio at September 30, 2014, June 30, 2014 and September 30, 2013. 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 nine months ended September 30, 2014 and 2013, and the three months ended September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 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.



	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis
Net interest income	$	30,317		$	31,479		$	10,219		$	10,013		$	10,085		$	10,786		$	10,266
Fully taxable-equivalent adjustment	639			646			225			213			201			213			213
Net interest income on a fully taxable-equivalent basis	$	30,956		$	32,125		$	10,444		$	10,226		$	10,286		$	10,999		$	10,479

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	$	65,522		$	67,454		$	21,209		$	21,747		$	22,566		$	21,488		$	21,530
Fully taxable-equivalent adjustment	639			646			225			213			201			213			213
Total revenue, net of interest expense on a fully taxable-equivalent basis	$	66,161		$	68,100		$	21,434		$	21,960		$	22,767		$	21,701		$	21,743

Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis
Income tax expense (benefit)	$	762		$	4,335		$	663		$	504		$	(405	)	$	406		$	2,348
Fully taxable-equivalent adjustment	639			646			225			213			201			213			213
Income tax expense (benefit) on a fully taxable-equivalent basis	$	1,401		$	4,981		$	888		$	717		$	(204	)	$	619		$	2,561

Reconciliation of average common shareholders' equity to average tangible common shareholders' equity
Common shareholders' equity	$	222,593		$	217,922		$	222,372		$	222,215		$	223,201		$	220,088		$	216,766
Goodwill	(69,818		)	(69,926		)	(69,792		)	(69,822		)	(69,842		)	(69,864		)	(69,903		)
Intangible assets (excluding mortgage servicing rights)	(5,232		)	(6,269		)	(4,992		)	(5,235		)	(5,474		)	(5,725		)	(5,993		)
Related deferred tax liabilities	2,114			2,360			2,077			2,100			2,165			2,231			2,296
Tangible common shareholders' equity	$	149,657		$	144,087		$	149,665		$	149,258		$	150,050		$	146,730		$	143,166

Reconciliation of average shareholders' equity to average tangible shareholders' equity
Shareholders' equity	$	236,801		$	234,126		$	238,038		$	235,797		$	236,553		$	233,415		$	230,392
Goodwill	(69,818		)	(69,926		)	(69,792		)	(69,822		)	(69,842		)	(69,864		)	(69,903		)
Intangible assets (excluding mortgage servicing rights)	(5,232		)	(6,269		)	(4,992		)	(5,235		)	(5,474		)	(5,725		)	(5,993		)
Related deferred tax liabilities	2,114			2,360			2,077			2,100			2,165			2,231			2,296
Tangible shareholders' equity	$	163,865		$	160,291		$	165,331		$	162,840		$	163,402		$	160,057		$	156,792

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)
	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Reconciliation of period-end common shareholders' equity to period-end tangible common shareholders' equity
Common shareholders' equity	$	221,168		$	218,967		$	221,168		$	222,565		$	218,536		$	219,333		$	218,967
Goodwill	(69,784		)	(69,891		)	(69,784		)	(69,810		)	(69,842		)	(69,844		)	(69,891		)
Intangible assets (excluding mortgage servicing rights)	(4,849		)	(5,843		)	(4,849		)	(5,099		)	(5,337		)	(5,574		)	(5,843		)
Related deferred tax liabilities	2,019			2,231			2,019			2,078			2,100			2,166			2,231
Tangible common shareholders' equity	$	148,554		$	145,464		$	148,554		$	149,734		$	145,457		$	146,081		$	145,464

Reconciliation of period-end shareholders' equity to period-end tangible shareholders' equity
Shareholders' equity	$	239,081		$	232,282		$	239,081		$	237,411		$	231,888		$	232,685		$	232,282
Goodwill	(69,784		)	(69,891		)	(69,784		)	(69,810		)	(69,842		)	(69,844		)	(69,891		)
Intangible assets (excluding mortgage servicing rights)	(4,849		)	(5,843		)	(4,849		)	(5,099		)	(5,337		)	(5,574		)	(5,843		)
Related deferred tax liabilities	2,019			2,231			2,019			2,078			2,100			2,166			2,231
Tangible shareholders' equity	$	166,467		$	158,779		$	166,467		$	164,580		$	158,809		$	159,433		$	158,779

Reconciliation of period-end assets to period-end tangible assets
Assets	$	2,123,613		$	2,126,653		$	2,123,613		$	2,170,557		$	2,149,851		$	2,102,273		$	2,126,653
Goodwill	(69,784		)	(69,891		)	(69,784		)	(69,810		)	(69,842		)	(69,844		)	(69,891		)
Intangible assets (excluding mortgage servicing rights)	(4,849		)	(5,843		)	(4,849		)	(5,099		)	(5,337		)	(5,574		)	(5,843		)
Related deferred tax liabilities	2,019			2,231			2,019			2,078			2,100			2,166			2,231
Tangible assets	$	2,050,999		$	2,053,150		$	2,050,999		$	2,097,726		$	2,076,772		$	2,029,021		$	2,053,150

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)
	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014			First Quarter 2014			Fourth Quarter 2013			Third Quarter 2013
Reconciliation of return on average allocated capital ⁽¹⁾

Consumer & Business Banking
Reported net income	$	5,327		$	4,638		$	1,856		$	1,797		$	1,674		$	1,986		$	1,787
Adjustment related to intangibles ⁽²⁾	3			6			1			1			1			1			2
Adjusted net income	$	5,330		$	4,644		$	1,857		$	1,798		$	1,675		$	1,987		$	1,789

Average allocated equity ⁽³⁾	$	61,458		$	62,050		$	61,441		$	61,459		$	61,474		$	61,998		$	62,024
Adjustment related to goodwill and a percentage of intangibles	(31,958		)	(32,050		)	(31,941		)	(31,959		)	(31,974		)	(31,998		)	(32,024		)
Average allocated capital	$	29,500		$	30,000		$	29,500		$	29,500		$	29,500		$	30,000		$	30,000

Global Wealth & Investment Management
Reported net income	$	2,268		$	2,199		$	813		$	726		$	729		$	778		$	720
Adjustment related to intangibles ⁽²⁾	10			13			4			3			3			4			4
Adjusted net income	$	2,278		$	2,212		$	817		$	729		$	732		$	782		$	724

Average allocated equity ⁽³⁾	$	22,223		$	20,302		$	22,204		$	22,222		$	22,243		$	20,265		$	20,283
Adjustment related to goodwill and a percentage of intangibles	(10,223		)	(10,302		)	(10,204		)	(10,222		)	(10,243		)	(10,265		)	(10,283		)
Average allocated capital	$	12,000		$	10,000		$	12,000		$	12,000		$	12,000		$	10,000		$	10,000

Global Banking
Reported net income	$	4,002		$	3,718		$	1,414		$	1,352		$	1,236		$	1,255		$	1,137
Adjustment related to intangibles ⁽²⁾	1			2			1			—			—			1			1
Adjusted net income	$	4,003		$	3,720		$	1,415		$	1,352		$	1,236		$	1,256		$	1,138

Average allocated equity ⁽³⁾	$	53,405		$	45,412		$	53,402		$	53,405		$	53,407		$	45,410		$	45,413
Adjustment related to goodwill and a percentage of intangibles	(22,405		)	(22,412		)	(22,402		)	(22,405		)	(22,407		)	(22,410		)	(22,413		)
Average allocated capital	$	31,000		$	23,000		$	31,000		$	31,000		$	31,000		$	23,000		$	23,000

Global Markets
Reported net income (loss)	$	3,178		$	1,199		$	769		$	1,100		$	1,309		$	(48	)	$	(875	)
Adjustment related to intangibles ⁽²⁾	7			6			3			2			2			3			2
Adjusted net income (loss)	$	3,185		$	1,205		$	772		$	1,102		$	1,311		$	(45	)	$	(873	)

Average allocated equity ⁽³⁾	$	39,373		$	35,366		$	39,371		$	39,373		$	39,375		$	35,379		$	35,369
Adjustment related to goodwill and a percentage of intangibles	(5,373		)	(5,366		)	(5,371		)	(5,373		)	(5,375		)	(5,379		)	(5,369		)
Average allocated capital	$	34,000		$	30,000		$	34,000		$	34,000		$	34,000		$	30,000		$	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)
	Nine Months Ended September 30						Third Quarter 2014			Second Quarter 2014			Third Quarter 2013
	2014			2013			Third Quarter 2014			Second Quarter 2014			Third Quarter 2013
Consumer & Business Banking

Deposits
Reported net income	$	2,157		$	1,434		$	799		$	734		$	564
Adjustment related to intangibles ⁽²⁾	—			1			—			—			—
Adjusted net income	$	2,157		$	1,435		$	799		$	734		$	564

Average allocated equity ⁽³⁾	$	36,484		$	35,395		$	36,485		$	36,485		$	35,390
Adjustment related to goodwill and a percentage of intangibles	(19,984		)	(19,995		)	(19,985		)	(19,985		)	(19,990		)
Average allocated capital	$	16,500		$	15,400		$	16,500		$	16,500		$	15,400

Consumer Lending
Reported net income	$	3,170		$	3,204		$	1,057		$	1,063		$	1,223
Adjustment related to intangibles ⁽²⁾	3			5			1			1			2
Adjusted net income	$	3,173		$	3,209		$	1,058		$	1,064		$	1,225

Average allocated equity ⁽³⁾	$	24,974		$	26,655		$	24,956		$	24,975		$	26,634
Adjustment related to goodwill and a percentage of intangibles	(11,974		)	(12,055		)	(11,956		)	(11,975		)	(12,034		)
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