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Table 6 Supplemental Financial Data and Reconciliations to GAAP Financial Measures
(Dollars in millions) 2007 2006 2005 2004 2003
Operating basis
Operating earnings
$ 15,240
$ 21,640 $ 16,740 $ 14,358 $ 10,762
Return on average assets
0.95%
1.48% 1.32% 1.37% 1.44%
Return on average common shareholders’ equity
11.27
16.66 16.79 16.96 21.50
Return on average tangible shareholders’ equity
22.64
33.59 30.70 29.79 27.84
Operating efficiency ratio (FTE basis)
53.77
47.14 48.73 51.35 51.13
Dividend payout ratio
71.02
44.59 45.84 44.98 39.76
Operating leverage (FTE basis)
(12.97)
4.15 5.74 (0.55) (0.41)
FTE basis data
Net interest income
$ 36,182
$ 35,815 $ 31,569 $ 28,677 $ 21,149
Total revenue, net of interest expense
68,068
73,804 58,007 51,406 39,419
Net interest yield
2.60%
2.82% 2.84% 3.17% 3.26%
Efficiency ratio
54.37
48.23 49.44 52.55 51.13
Reconciliation of net income to operating earnings
Net income
$ 14,982
$ 21,133 $ 16,465 $ 13,947 $ 10,762
Merger and restructuring charges
410
805 412 618 –
Related income tax benefit
(152)
(298) (137) (207) –
Operating earnings
$ 15,240
$ 21,640 $ 16,740 $ 14,358 $ 10,762
Reconciliation of average shareholders’ equity to average tangible shareholders’ equity
Average shareholders’ equity
$136,662
$130,463 $ 99,861 $ 84,815 $ 50,091
Average goodwill
(69,333)
(66,040) (45,331) (36,612) (11,440)
Average tangible shareholders’ equity
$ 67,329
$ 64,423 $ 54,530 $ 48,203 $ 38,651
Reconciliation of return on average assets to operating return on average assets
Return on average assets
0.94%
1.44% 1.30% 1.34% 1.44%
Effect of merger and restructuring charges, net-of-tax
0.01
0.04 0.02 0.03 –
Operating return on average assets
0.95%
1.48% 1.32% 1.37% 1.44%
Reconciliation of return on average common shareholders’ equity to operating return on
average common shareholders’ equity
Return on average common shareholders’ equity
11.08%
16.27% 16.51% 16.47% 21.50%
Effect of merger and restructuring charges, net-of-tax
0.19
0.39 0.28 0.49 –
Operating return on average common shareholders’ equity
11.27%
16.66% 16.79% 16.96% 21.50%
Reconciliation of return on average tangible shareholders’ equity to operating return on
average tangible shareholders’ equity
Return on average tangible shareholders’ equity
22.25%
32.80% 30.19% 28.93% 27.84%
Effect of merger and restructuring charges, net-of-tax
0.39
0.79 0.51 0.86 –
Operating return on average tangible shareholders’ equity
22.64%
33.59% 30.70% 29.79% 27.84%
Reconciliation of efficiency ratio to operating efficiency ratio (FTE basis)
Efficiency ratio
54.37%
48.23% 49.44% 52.55% 51.13%
Effect of merger and restructuring charges
(0.60)
(1.09) (0.71) (1.20) –
Operating efficiency ratio
53.77%
47.14% 48.73% 51.35% 51.13%
Reconciliation of dividend payout ratio to operating dividend payout ratio
Dividend payout ratio
72.26%
45.66% 46.61% 46.31% 39.76%
Effect of merger and restructuring charges, net-of-tax
(1.24)
(1.07) (0.77) (1.33) –
Operating dividend payout ratio
71.02%
44.59% 45.84% 44.98% 39.76%
Reconciliation of operating leverage to operating basis operating leverage (FTE basis)
Operating leverage
(11.74)%
3.12% 6.67% (3.62)% (0.41)%
Effect of merger and restructuring charges
(1.23)
1.03 (0.93) 3.07 –
Operating leverage
(12.97)%
4.15% 5.74% (0.55)% (0.41)%
Bank of America 2007
43