Bank of America Corporation and Subsidiaries
Business Segment Results
(Dollars in millions)
For the year ended December 31
Global Card Home Loans
Deposits Services (1, 2) & Insurance
2009 2008 2009 2008 2009 2008
---- ---- ---- ---- ---- ----
Total revenue, net
of interest
expense (3) $14,008 $17,840 $29,342 $31,220 $16,902 $9,310
Provision for
credit losses 380 399 30,081 20,164 11,244 6,287
Noninterest expense 9,693 8,783 7,961 9,160 11,683 6,962
Net income (loss) 2,506 5,512 (5,555) 1,234 (3,838) (2,482)
Efficiency ratio (3) 69.19% 49.23% 27.13% 29.34% 69.12% 74.78%
Return on average
equity 10.55 22.55 n/m 3.15 n/m n/m
Average - total
loans and leases n/m n/m $216,654 $236,714 $130,519 $105,724
Average - total
deposits $406,833 $357,608 n/m n/m n/m n/m
Global Wealth &
Investment
Global Banking Global Markets Management
2009 2008 2009 2008 2009 2008
---- ---- ---- ---- ---- ----
Total revenue, net
of interest
expense (3) $23,035 $16,796 $20,626 $(3,831) $18,123 $7,809
Provision for
credit losses 8,835 3,130 400 (50) 1,061 664
Noninterest expense 9,539 6,684 10,042 3,906 13,077 4,910
Net income (loss) 2,969 4,472 7,177 (4,916) 2,539 1,428
Efficiency
ratio (3) 41.41% 39.80% 48.68% n/m 72.16% 62.87%
Return on average
equity 4.93 8.84 23.33 n/m 13.44 12.20
Average - total
loans and leases $315,002 $318,325 n/m n/m $103,398 $87,593
Average - total
deposits 211,261 177,528 n/m n/m 225,980 160,702
All Other (1, 4)
2009 2008
---- ----
Total revenue, net
of interest
expense (3) $(1,092) $(5,168)
Provision for
credit losses (3,431) (3,769)
Noninterest expense 4,718 1,124
Net income (loss) 478 (1,240)
Average - total
loans and leases $155,561 $135,789
Average - total
deposits 103,122 105,725
(1) Global Card Services is presented on a managed basis with a corresponding offset recorded in All Other.
(2) Provision for credit losses represents provision for credit losses on held loans combined with realized credit losses associated with the securitized loan portfolio.
(3) Fully taxable-equivalent (FTE) basis. 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.
(4) Provision for credit losses represents provision for credit losses in All Other combined with the Global Card Services securitization offset.
n/m = not meaningful
Certain prior period amounts have been reclassified to conform to current period presentation.
CHARLOTTE, North Carolina, January 20 /PRNewswire/ --
Information for periods beginning July 1, 2008 include the Countrywide acquisition. Information for the period beginning January 1, 2009 includes the Merrill Lynch acquisition. Prior periods have not been restated.
CHARLOTTE, North Carolina, January 20 /PRNewswire/ --
This information is preliminary and based on company data available at the time of the presentation.
CHARLOTTE, North Carolina, January 20 /PRNewswire/ --
Bank of America Corporation and Subsidiaries
Supplemental Financial Data
(Dollars in millions)
Fully taxable-equivalent
basis data Three Months Ended Year Ended
December 31 December 31
2009 2008 2009 2008
---- ---- ---- ----
Net interest income $11,896 $13,406 $48,410 $46,554
Total revenue, net of
interest expense 25,413 15,980 120,944 73,976
Net interest yield 2.62% 3.31% 2.65% 2.98%
Efficiency ratio 64.47 68.51 55.16 56.14
Other Data December 31
2009 2008
---- ----
Full-time equivalent
employees 283,717 240,202
Number of banking
centers - domestic 6,011 6,139
Number of branded
ATMs - domestic 18,262 18,685
Reconciliation to GAAP financial measures
The Corporation evaluates its business based upon ratios that utilize tangible equity which is a non-GAAP measure. The tangible equity ratio represents shareholders' equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. The tangible common equity ratio represents common shareholders' equity plus Common Equivalent Securities less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Tangible book value per share of common stock represents ending common shareholders' equity plus Common Equivalent Securities less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by ending common shares outstanding plus the number of common shares issued upon conversion of Common Equivalent Securities. These measures are used to evaluate the Corporation's use of equity (i.e., capital). We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation.
Other companies may define or calculate supplemental financial data differently. See the tables below for corresponding reconciliations to GAAP financial measures at December 31, 2009, September 30, 2009 and December 31, 2008.
December 31 September 30 December 31
2009 2009 2008
Reconciliation of period end
shareholders' equity to period
end tangible shareholders' equity
Shareholders' equity $231,444 $257,683 $177,052
Goodwill (86,314) (86,009) (81,934)
Intangible assets (excluding MSRs) (12,026) (12,715) (8,535)
Related deferred tax liabilities 3,498 3,714 1,854
Tangible shareholders' equity $136,602 $162,673 $88,437
Reconciliation of period end
common shareholders' equity to
period end tangible common
shareholders' equity
Common shareholders' equity $194,236 $198,843 $139,351
Common Equivalent Securities 19,244 - -
Goodwill (86,314) (86,009) (81,934)
Intangible assets (excluding MSRs) (12,026) (12,715) (8,535)
Related deferred tax liabilities 3,498 3,714 1,854
Tangible common shareholders'
equity $118,638 $103,833 $50,736
Reconciliation of period end
assets to period end tangible
assets
Assets $2,223,299 $2,251,043 $1,817,943
Goodwill (86,314) (86,009) (81,934)
Intangible assets (excluding MSRs) (12,026) (12,715) (8,535)
Related deferred tax liabilities 3,498 3,714 1,854
Tangible assets $2,128,457 $2,156,033 $1,729,328
Reconciliation of ending common
shares outstanding to ending
tangible common shares
outstanding
Common shares outstanding 8,650,244 8,650,314 5,017,436
Conversion of common
equivalent shares 1,286,000 - -
Tangible common shares
outstanding 9,936,244 8,650,314 5,017,436
Certain prior period amounts have been reclassified to conform to current
period presentation.
Bank of America Corporation and Subsidiaries
Reconciliation - Managed to GAAP
(Dollars in millions)
The Corporation reports Global Card Services' results on a managed basis which is consistent with the way that management evaluates the results of Global Card Services. Managed basis assumes that securitized loans were not sold and presents earnings on these loans in a manner similar to the way loans that have not been sold (i.e., held loans) are presented. Loan securitization is an alternative funding process that is used by the Corporation to diversify funding sources. Loan securitization removes loans from the Consolidated Balance Sheet through the sale of loans to an off-balance sheet qualified special purpose entity which is excluded from the Corporation's Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States (GAAP).
(CONTINUA)
