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Bank of America Corporation
2012 Annual Report
The relationship
that kept her financial life on track
The conversation
that grew their business
The advice
that helped secure their retirement
The know-how
that relaunched an airline
The common vision
Life’s better when we’re connected

Table of contents

  • Page 1
    Bank of America Corporation 2012 Annual Report The relationship that kept her financial life on track The conversation that grew their business The advice that helped secure their retirement The know-how that relaunched an airline The common vision that strengthened a community Life's better ...

  • Page 2
    ...its culture around its customers rather than its products - that discovers what matters most to every customer and client and brings the most relevant assets to bear. A company that connects people, companies and institutional investors to the broadest array of products and services in the business.

  • Page 3
    This is Bank of America today. Meeting a world of individual needs. By being more than a bank; we are a financial services provider that connects with you every step of the way. Bank of America Life's better when we're connected

  • Page 4
    ... capital to support our strategic plans. We are well positioned to return excess capital to our shareholders and we believe that buying back common shares is the best way to continue to drive value for our shareholders. Brian T. Moyni4an Chief Executive Officet 2 Bank of Amsrica 2012 Annual...

  • Page 5
    ... in our Legacy Assets & Servicing business. We have made significant progress reducing the number of delinquent mortgage loans and helping more than 1.5 million customers avoid foreclosure with modifications, short sales and other programs. In 2012, the number of 60+ day delinquent loans declined...

  • Page 6
    ... get the solutions they need. Loan growth expanded; commercial loans were up nearly 12 percent from a year ago. Investment banking fees are strong and we maintained our No. 2 global market share position for the third consecutive year. Dslivsring ons company Looking across every customer group we...

  • Page 7
    ...will drive better returns for our shareholders. Every day I hear from customers and clients about how our employees have made a difference - helping a small business get up and running, advising a family on a financial Btian T. Moynihan Chief Executive Officer March 15, 2013 Bank of Amsrica 2012...

  • Page 8
    ... connected and in control of he r finances. Marguerite uses our award-winning online and mobile platforms to keep up with her balances, pay bills, make transfers and deposit checks, whenever and wherever it's convenient for her. that kept her financial life on track 6 Bank of America 2012 Annual...

  • Page 9
    ... just about checking accounts. We're connecting customers to a growing team of nearly 6,200 specialists in investment management, small business lending and home loans. We're adding more of these specialists this year in banking centers and centralized locations. Bank of Amsrica 2012 Annual Rsport...

  • Page 10
    ...management made easier. Starting a new business is both exciting and challenging. At Bank of America, we have a long history of serving our small business community. Our team of Small Business Banking specialists works closely with its clients, helping them run their businesses efficiently and plan...

  • Page 11
    ... added more online chat and direct phone sales and service associates who interact with hundreds of thousands of clients per year. In addition, more than 2 million small businesses use our Online Banking services and more than 500,000 now use our Mobile Banking platform. Bank of Amsrica 2012 Annual...

  • Page 12
    ... legacy for the next generation. Based on the Kos' particular fi nancial needs and goals, Robyn advises them on a wide range of solutions, including access to real estate fi nancing and investing for their retirement. The advice that helped secure their retirement 10 Bank of America 2012 Annual...

  • Page 13
    ... manage investments ot tisk within a pottfolio, ttansfet wealth to the next genetation, ot plan a fulfilling life a et tetitement, out advisots can offet a wide tange of capabilities to clients, including investments, wealth sttuctuting, cash management and ctedit. Bank of Amsrica 2012 Annual...

  • Page 14
    ... JAL to price their share sale at the top of the range offered to investors. All the hard work by the JAL and Bank of America Merrill Lynch teams paid off with an impressive $8.5 billion initial public offering for the airlin e - the second-largest equity offering globally in 2012. Our partnership...

  • Page 15
    ... clients with in-depth expertise and a full range of financial solutions, including credit, treasury, derivatives, capital markets and retirement services, as well as wealth management products provided through Merrill Lynch Wealth Management and U.S. Trust. Bank of America 2012 Annual Report 13

  • Page 16
    ... and market-rate loft-style apartments for people age 55 and older. For Rose and Marsha, Curtain Lofts offers comfort and community. For the residents of Fall River, Curtain Lofts provides economic development to help revitalize and strengthen their community. 14 Bank of America 2012 Annual Report

  • Page 17
    ...to the success of our company and the customers, clients, shareholders and communities we serve around the world. Our CSR activities - lending, investing and giving - are core to our business, as we continually strive to be a better and more responsible company. Our global work force is committed to...

  • Page 18
    ... At ysar-snd Total loans and leases Total assets Total deposits Total shateholdets' equity Book value pet common shate Tangible book value pet common shate1 Matket ptice pet common shate Common shates issued and outstanding Tiet 1 common capital tatio Tangible common equity tatio1 1 2012 $ 907,819...

  • Page 19
    2012 Financial Review

  • Page 20
    ... Business Banking Consumer Real Estate Services Global Banking Global Markets Global Wealth & Investment Management All Other Off-Balance Sheet Arrangements and Contractual Obligations Regulatory Matters Managing Risk Strategic Risk Management Capital Management Liquidity Risk Credit Risk Management...

  • Page 21
    ... take effect; that the proposed rule regarding credit risk retention would likely have an adverse impact on the Corporation's ability to engage in many types of the MBS and ABS securitizations conducted in CRES, Global Markets and other business segments, impose additional operational and compliance...

  • Page 22
    ... Federal Reserve on March 14, 2013; that funding trading activities in broker/dealer subsidiaries is more cost-efficient and less sensitive to changes in credit ratings than unsecured financing; that VaR model results will be supplemented if risks associated with positions that are illiquid and/or...

  • Page 23
    ... 31 to net charge-offs and purchased credit-impaired write-offs (5) Balance sheet at year end Total loans and leases Total assets Total deposits Total common shareholders' equity Total shareholders' equity Capital ratios at year end Tier 1 common capital Tier 1 capital Total capital Tier 1 leverage...

  • Page 24
    ...other claims relating to the origination, sale and delivery of residential mortgage loans originated and sold directly to FNMA from January 1, 2000 through December 31, 2008 by entities related to legacy Countrywide Financial Corporation (Countrywide) and Bank of America, N.A. (BANA). This agreement...

  • Page 25
    ... loan balances and yields, the asset and liability management (ALM) portfolio recouponing to a lower yield and decreased commercial loan yields. Lower trading-related net interest income also negatively impacted 2012 results. These were partially offset by ongoing reductions in long-term debt...

  • Page 26
    ... achieve cost savings. Partially offsetting the decreases were increases in professional fees and data processing expenses due to continuing default management activities in Legacy Assets & Servicing. The prior year also included $638 million in merger and restructuring charges. In connection with...

  • Page 27
    ... of these activities requires the use of balance sheet and capital-related limits including spot, average and risk-weighted asset limits, particularly within the market-making activities of our trading businesses. One of our key regulatory metrics, Tier 1 leverage ratio, is calculated based on...

  • Page 28
    ... information on Commercial Paper and Other Short-term Borrowings, see Note 11 - Federal Funds Sold, Securities Borrowed or Purchased Under Agreements to Resell and Short-term Borrowings to the Consolidated Financial Statements. Loans and Leases Year-end and average loans and leases decreased...

  • Page 29
    ... sales of debt securities. During 2012, net cash provided by financing activities of $42.4 billion primarily reflected an increase in federal funds purchased and securities loaned or sold under agreements to repurchase and growth in deposits partially offset by planned reductions in long-term debt...

  • Page 30
    ... banking fees, lower net interest income as a result of spread compression and the benefit in the prior year from higher accretion on acquired portfolios, partially offset by the impact of higher average loan and deposit balances and gains from certain legacy portfolios. The provision for credit...

  • Page 31
    ...tangible shareholders' equity (3) Total ending equity to total ending assets Total average equity to total average assets Dividend payout Per common share data Earnings (loss) Diluted earnings (loss) (2) Dividends paid Book value Tangible book value (3) Market price per share of common stock Closing...

  • Page 32
    ... to net charge-offs, excluding the PCI loan portfolio Ratio of the allowance for loan and lease losses at December 31 to net charge-offs and PCI write-offs (9) Capital ratios (year end) Risk-based capital: Tier 1 common Tier 1 Total Tier 1 leverage Tangible equity (3) Tangible common equity (3) For...

  • Page 33
    ... Efficiency ratio Performance ratios, excluding goodwill impairment charges (1) Per common share information Earnings Diluted earnings Efficiency ratio (FTE basis) Return on average assets Return on average common shareholders' equity Return on average tangible common shareholders' equity Return...

  • Page 34
    ... securities purchased under agreement to resell, time deposits placed and LHFS, partially offset by an increase in commercial loans. Net interest yield on earning assets excluding trading-related activities decreased 12 bps to 2.90 percent for 2012 compared to 2011 primarily due to the factors noted...

  • Page 35
    ...as changes to allocated equity in each segment. For more information on the business segments and reconciliations to consolidated total revenue, net income (loss) and year-end total assets, see Note 26 - Business Segment Information to the Consolidated Financial Statements. Bank of America 2012 33

  • Page 36
    ... equity Return on average economic capital Efficiency ratio (FTE basis) Balance Sheet Average Total loans and leases Total earning assets (1) Total assets (1) Total deposits Allocated equity Economic capital Year end Total loans and leases Total earning assets (1) Total assets (1) Total deposits...

  • Page 37
    ...volumes Debit card purchase volumes Key Statistics Total deposit spreads (excludes noninterest costs) (1) Year end Client brokerage assets (in millions) Online banking active accounts (units in thousands) Mobile banking active accounts (units in thousands) Banking centers ATMs (1) 2012 1.81% 2011...

  • Page 38
    ... U.S.-based companies generally with annual sales of $1 million to $50 million. Our lending products and services include commercial loans, lines of credit and real estate lending. Our capital management and treasury solutions include treasury management, foreign exchange and short-term investing...

  • Page 39
    ...) Net interest yield (FTE basis) Efficiency ratio (FTE basis) Balance Sheet Average Total loans and leases Total earning assets Total assets Allocated equity Economic capital Year end Total loans and leases Total earning assets Total assets n/m = not meaningful n/a = not applicable $ 2012 1,361...

  • Page 40
    ...correspondent lending channel. Legacy Assets & Servicing Legacy Assets & Servicing is responsible for all of our servicing activities related to the residential, home equity and discontinued real estate loan portfolios, including owned loans and loans serviced for others (collectively, the mortgage...

  • Page 41
    ... of the Corporation. The home equity loan portfolio is held on the balance sheet of Legacy Assets & Servicing; whereas, the residential mortgage and discontinued real estate loan portfolios are held on the balance sheet of All Other. The financial results of the onbalance sheet loans are reported in...

  • Page 42
    ... Statements. Key Statistics (Dollars in millions, except as noted) 2012 2011 $ Loan production Total Corporation (1): First mortgage First mortgage (excluding correspondent lending) Home equity CRES: First mortgage First mortgage (excluding correspondent lending) Home equity Year end Mortgage...

  • Page 43
    ...our servicing activities, see Off-Balance Sheet Arrangements and Contractual Obligations - Servicing Matters and Foreclosure Processes on page 57. For additional information on MSRs, see Note 24 - Mortgage Servicing Rights to the Consolidated Financial Statements. Sales of Mortgage Servicing Rights...

  • Page 44
    ... working capital management and treasury solutions to clients, and underwriting and advisory services through our network of offices and client relationship teams. Our lending products and services include commercial loans, leases, commitment facilities, trade finance, real estate lending, asset...

  • Page 45
    ... deposits, treasury management, credit card, foreign exchange, short-term investment and custody solutions to corporate and commercial banking clients. Business Lending includes various loan-related products and services including commercial loans, leases, commitment facilities, trade finance, real...

  • Page 46
    ... allocated equity Return on average economic capital Efficiency ratio (FTE basis) Balance Sheet Average Total trading-related assets Total earning assets (1) Total assets Allocated equity Economic capital Year end Total trading-related assets Total earning assets (1) Total assets (1) $ 2012 3,310...

  • Page 47
    ... mortgage-backed securities, RMBS and collateralized debt obligations (CDOs)), currencies (interest rate and foreign exchange contracts), commodities (primarily futures, forwards, swaps and options) and equity income from equity-linked derivatives and cash equity activity. Sales and Trading...

  • Page 48
    ... allocated equity Return on average economic capital Efficiency ratio (FTE basis) Balance Sheet Average Total loans and leases Total earning assets Total assets Total deposits Allocated equity Economic capital Year end Total loans and leases Total earning assets Total assets Total deposits $ 2012...

  • Page 49
    ... - GWIM to CRES and the ALM portfolio Year end Total deposits - GWIM from / (to) CBB Total loans - GWIM to CRES and the ALM portfolio Assets under management Brokerage assets Assets in custody Deposits Loans and leases (1) Total client balances (1) December 31 2012 2011 $ 698,095 $ 635,570 975,388...

  • Page 50
    ... tax benefit (FTE basis) Net income (loss) Balance Sheet Average Loans and leases: Residential mortgage Non-U.S. credit card Discontinued real estate Other Total loans and leases Total assets (1) Total deposits Allocated equity (2) Year end Loans and leases: Residential mortgage Non-U.S. credit card...

  • Page 51
    ... expense primarily related to the costs associated with the settlement of a class action lawsuit during 2012 brought on behalf of investors who purchased or held Bank of America equity securities at the time we announced plans to acquire Merrill Lynch and other litigation, partially offset by...

  • Page 52
    ... warranties repurchase claims and exposures, see Note 8 - Representations and Warranties Obligations and Corporate Guarantees and Note 13 - Commitments and Contingencies to the Consolidated Financial Statements and Item 1A. Risk Factors of this Annual Report on Form 10-K. 50 Bank of America 2012

  • Page 53
    ... claims relating to the origination, sale and delivery of residential mortgage loans originated and sold directly to FNMA from January 1, 2000 through December 31, 2008 by entities related to legacy Countrywide and BANA. The FNMA Settlement covers loans with an aggregate original principal balance...

  • Page 54
    ..., monoline insurers, private-label securitization trustees, whole-loan investors and others, the resolution of such claims and for a table of unresolved repurchase claims, see Note 8 - Representations and Warranties Obligations and Corporate Guarantees to the Consolidated Financial Statements. In...

  • Page 55
    ...a number of factors and assumptions that are subject to change. For additional information, see the Estimated Range of Possible Loss section below and Note 8 - Representations and Warranties Obligations and Corporate Guarantees to the Consolidated Financial Statements and, for information related to...

  • Page 56
    ... additional information about the methodology used to estimate the representations and warranties liability and the corresponding range of possible loss, see Note 8 - 54 Bank of America 2012 Representations and Warranties Obligations and Corporate Guarantees to the Consolidated Financial Statements...

  • Page 57
    ... Enterprises In prior years, legacy companies and certain subsidiaries sold pools of first-lien mortgage loans and home equity loans as privatelabel securitizations or in the form of whole loans originated from 2004 through 2008 with an original principal balance of $963 billion to investors...

  • Page 58
    ... repurchase process is a result of these monoline insurers having instituted litigation against legacy Countrywide and/or Bank of America, which impacts our ability to enter into constructive dialogue with these monolines to resolve the open claims. At December 31, 2012, for loans originated between...

  • Page 59
    ... losses related to these monoline insurers. For additional information, see Note 13 - Commitments and Contingencies to the Consolidated Financial Statements. Whole Loans and Private-label Securitizations Legacy entities, and to a lesser extent Bank of America, sold loans to investors as whole loans...

  • Page 60
    ... reduction, short sales, deeds-in-lieu of foreclosure and approximately $1.0 billion of credits earned for interest rate reduction modifications. In addition, the settlement with HUD provided for an upfront cash payment of $500 million to settle certain claims related to FHA-insured loans. We...

  • Page 61
    ... portion of the residential mortgage loans that we originate, including loans that have been sold to investors or securitization trusts. A component of the OCC consent order requires significant changes in the Mortgage-related Settlements - Servicing Matters In connection with the BNY Mellon...

  • Page 62
    ... agreement was effective in the second quarter of 2011 and is not conditioned on final court approval. BANA also agreed to transfer the servicing rights related to certain high-risk loans to qualified subservicers on a schedule that began with the signing of the BNY Mellon Settlement. This servicing...

  • Page 63
    ... Lynch Capital Services Inc., Merrill Lynch Financial Markets Inc., Merrill Lynch International and Merrill Lynch International Bank Limited as swap dealers on December 31, 2012. Upon registration, swap dealers became subject to additional CFTC rules relating to business conduct and reporting, and...

  • Page 64
    ... final rule establishing mortgage loan servicing standards through amendments to the Real Estate Settlement Procedures Act. The CFPB has also proposed rules addressing items such as remittance transfer services, appraisal requirements and loan originator compensation requirements. The Corporation is...

  • Page 65
    ... daily work in accordance with policies and procedures. It is the responsibility of each employee to protect the Corporation and defend the interests of the shareholders. Governance and control functions are comprised of Global Risk Management, Global Compliance, Legal and the enterprise control...

  • Page 66
    ...by reporting directly to the Audit Committee of the Board. Corporate Audit provides independent assessment and validation through testing of key processes and controls across the Corporation. Corporate Audit also provides an independent assessment of the Corporation's management and internal control...

  • Page 67
    ... operating plans. Management monitors, and the Board oversees, through the Credit, Enterprise Risk and Audit Committees, financial performance, execution of the strategic and financial operating plans, compliance with the risk appetite and the adequacy of internal controls. Bank of America 2012 

  • Page 68
    ... or its committees. Capital management is integrated into our risk and governance processes, as capital is a key consideration in the development of the strategic plan, risk appetite and risk limits. Economic capital is allocated to each business unit and used to perform riskadjusted return analyses...

  • Page 69
    ...the obligor or guarantor type and collateral if applicable. Off-balance sheet exposures include financial guarantees, unfunded lending commitments, letters of credit and derivatives. Market risk-weighted assets are calculated using risk models for the trading account positions, including all foreign...

  • Page 70
    ... value adjustment related to structured liabilities (1) Disallowed deferred tax asset Other Total Tier 1 common capital Qualifying preferred stock Trust preferred securities Noncontrolling interests Total Tier 1 capital Long-term debt qualifying as Tier 2 capital Allowance for loan and lease losses...

  • Page 71
    ... to changes in interest rates, such as the cumulative change in the fair value of AFS debt securities and at least 10 percent of the fair value of MSRs recognized on the Corporation's Consolidated Balance Sheet. Important differences between Basel 1 and Basel 3 include capital deductions related to...

  • Page 72
    ... loss in market value due to credit deterioration over a one-year capital time horizon. Credit risk is assessed and modeled for all on- and off-balance sheet credit exposures within sub-categories for commercial, retail, counterparty and investment securities. The economic capital methodology...

  • Page 73
    ... and risk control assessments. See Operational Risk Management on page 116 for more information. Common Stock Dividends For a summary of our declared quarterly cash dividends on common stock during 2012 and through February 28, 2013, see Note 14 - Shareholders' Equity to the Consolidated Financial...

  • Page 74
    ... 2012 2011 $ 65 $ Cash on deposit 79 21 U.S. treasuries 48 271 U.S. agency securities and mortgage-backed securities 228 15 Non-U.S. government and supranational securities 23 Total global excess liquidity sources $ 372 $ 378 (Dollars in billions) Time to Required Funding and Stress Modeling We use...

  • Page 75
    ... may make markets in our debt instruments to provide liquidity for investors. For additional information on long-term debt funding, see Note 12 - Long-term Debt to the Consolidated Financial Statements. We use derivative transactions to manage the duration, interest rate and currency risks of...

  • Page 76
    ... action, Fitch affirmed the Corporation's credit ratings. On June 21, 2012, Moody's Investors Service Inc. (Moody's) completed its previously-announced review for possible downgrade of financial institutions with global capital markets operations, downgrading the ratings of 15 banks and securities...

  • Page 77
    ... payments that could be required in connection with certain OTC derivative contracts and other trading agreements as a result of such a credit rating downgrade, see Item 1A. Risk Factors of this Annual Report on Form 10-K. On June 8, 2012, S&P affirmed its AA+ long-term and A-1+ short-term...

  • Page 78
    ...our reserving process. For more information, see Consumer Portfolio Credit Risk Management - Home Equity on page 83 and Table 21. For further information on our accounting policies regarding delinquencies, nonperforming status, charge-offs and TDRs for the consumer portfolio, see Note 1 - Summary of...

  • Page 79
    ... 2012 and 2011. See Consumer Portfolio Credit Risk Management - Consumer Loans Accounted for Under the Fair Value Option on page 89 and Note 22 - Fair Value Option to the Consolidated Financial Statements for additional information on the fair value option. n/a = not applicable Bank of America 2012...

  • Page 80
    ...2012, the bank regulatory agencies jointly issued interagency supervisory guidance on nonaccrual status for junior-lien consumer real estate loans. Net charge-offs exclude $2.5 billion of write-offs in the Countrywide home equity PCI loan portfolio in connection with the National Mortgage Settlement...

  • Page 81
    ...for consumer loans and leases. Table 23 Consumer Net Charge-offs and Related Ratios (1) (Dollars in millions) Residential mortgage Home equity Discontinued real estate U.S. credit card Non-U.S. credit card Direct/Indirect consumer Other consumer Total (1) $ $ Net Charge-offs (2) 2012 2011 3,053...

  • Page 82
    ...billion of discontinued real estate loans at December 31, 2012 and 2011. See Consumer Portfolio Credit Risk Management - Consumer Loans Accounted for Under the Fair Value Option on page 89 and Note 22 - Fair Value Option to the Consolidated Financial Statements for additional information on the fair...

  • Page 83
    ...the long-term stand-by agreements with FNMA and FHLMC, we have mitigated a portion of our credit risk on the residential mortgage portfolio through the use of synthetic securitization vehicles as described in Note 5 - Outstanding Loans and Leases to the Consolidated Financial Statements. At December...

  • Page 84
    ...31, 2012 and 2011. See Consumer Portfolio Credit Risk Management - Consumer Loans Accounted for Under the Fair Value Option on page 89 and Note 22 - Fair Value Option to the Consolidated Financial Statements for additional information on the fair value option. Nonperforming loans and net charge-offs...

  • Page 85
    ... mortgage portfolio, see Off-Balance Sheet Arrangements and Contractual Obligations - Representations and Warranties on page 50 and Note 8 - Representations and Warranties Obligations and Corporate Guarantees to the Consolidated Financial Statements. Home Equity The home equity portfolio makes...

  • Page 86
    ... to make a fully-amortizing payment until 2015 or later. Although we do not actively track how many of our home equity customers pay only the minimum amount due on their home equity loans and lines, we can infer some of this information through a review of our HELOC portfolio that we service and...

  • Page 87
    ... in 2012 and 2011. For information on representations and warranties related to our home equity portfolio, see Off-Balance Sheet Arrangements and Contractual Obligations - Representations and Warranties on page 50 and Note 8 - Representations and Warranties Obligations and Corporate Guarantees to...

  • Page 88
    ... they were recorded in January 2013. For additional information, see Off-Balance Sheet Arrangements and Contractual Obligations - Representations and Warranties on page 50. Additional information on the Countrywide PCI residential mortgage, home equity and discontinued real estate loan portfolios is...

  • Page 89
    ... state). Net charge-offs Net charge-off ratios (1) $ (1) Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans. Purchased Credit-impaired Discontinued Real Estate Loan Portfolio The Countrywide PCI discontinued real estate loan portfolio comprised 34...

  • Page 90
    ...-off ratios (1) (1) $ $ Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases. Direct/Indirect Consumer At December 31, 2012, approximately 43 percent of the direct/ indirect portfolio was included in Global Banking (dealer financial services...

  • Page 91
    ... Credit Risk Management on page 76 and Table 21. The outstanding balance of a real estate-secured loan that is in excess of the estimated property value, after reducing the estimated property value for estimated costs to sell, is charged off no later than the end of the month in which the loan...

  • Page 92
    ... 22 and Note 5 - Outstanding Loans and Leases to the Consolidated Financial Statements. (2) In 2012, we added $1.2 billion to nonperforming loans as a result of new regulatory guidance on loans discharged in Chapter 7 bankruptcy. For more information, see Consumer Portfolio Credit Risk Management on...

  • Page 93
    ..., see Note 5 - Outstanding Loans and Leases to the Consolidated Financial Statements. cash flow, risk profile or outlook of a borrower or counterparty. In making credit decisions, we consider risk rating, collateral, country, industry and single name concentration limits while also balancing the...

  • Page 94
    ...31, 2012 and 2011. See Note 22 - Fair Value Option to the Consolidated Financial Statements for additional information on the fair value option. Outstanding commercial loans and leases increased $37.6 billion in 2012, primarily in non-U.S. commercial and U.S. commercial. During 2012, credit quality...

  • Page 95
    ... with reduced trading volume. The utilization rate for loans and leases, SBLCs and financial guarantees, commercial letters of credit and bankers' acceptances was 58 percent and 57 percent at December 31, 2012 and 2011. Table 41 Commercial Credit Exposure by Type December 31 Commercial Utilized...

  • Page 96
    ...Net charge-offs increased $47 million in 2012 due primarily to lower recoveries compared to 2011. Commercial Real Estate The commercial real estate portfolio is predominantly managed in Global Banking and consists of loans made primarily to public and private developers, and commercial real estate...

  • Page 97
    ...motels Multi-use Land and land development Other Total non-residential Residential Total commercial real estate (1) $ Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option. At December 31, 2012, total...

  • Page 98
    ...commercial net charge-offs, 58 percent were credit card-related products in 2012 compared to 74 percent in 2011. Commercial Loans Accounted for Under the Fair Value Option The portfolio of commercial loans accounted for under the fair value option is managed primarily in Global Banking. Outstanding...

  • Page 99
    ... end of the month in which the loan becomes 180 days past due. For additional information on TDRs, see Note 5 - Outstanding Loans and Leases to the Consolidated Financial Statements. Table 47 Commercial Troubled Debt Restructurings December 31 (Dollars in millions) U.S. commercial Commercial real...

  • Page 100
    ... information on commercial real estate and related portfolios, see Commercial Real Estate on page 94. Committed exposure in the food, beverage and tobacco industry increased $6.8 billion, or 22 percent, in 2012 primarily related to short-term acquisition financing. Government and public education...

  • Page 101
    ... activity using operating cash flows and primary source of repayment as key factors. Represents net notional credit protection purchased. See Risk Mitigation on page 100 for additional information. Monoline Exposure Monoline exposure is reported in the insurance industry and managed under insurance...

  • Page 102
    ... notional credit default protection purchased to cover the funded and unfunded portion of certain credit exposures, credit derivatives are used for market-making activities for clients and establishing positions intended to profit from directional or relative value changes. We execute the majority...

  • Page 103
    ... assets, including our credit default protection purchased, in order to properly reflect the credit risk of the counterparty. We calculate CVA based on a modeled expected exposure that incorporates current market risk factors including changes in market spreads and non-credit related market...

  • Page 104
    ...not been reduced by collateral or credit default protection. Funded loans are reported net of charge-offs but prior to any allowance for loan and lease losses. Unfunded commitments are the undrawn portion of legally binding commitments related to loans and loan equivalents. Net counterparty exposure...

  • Page 105
    ... purchased, net of credit default protection sold, which is used to mitigate the Corporation's risk to country exposures as listed, including $2.7 billion, consisting of $3.0 billion in net single-name CDS purchased and $346 million in net index and tranched CDS sold, to hedge loans and securities...

  • Page 106
    ... calculated using FFIEC guidelines and not our internal risk management view; therefore, exposures are not comparable between tables. Exposure includes cross-border claims by our nonU.S. offices including loans, acceptances, time deposits placed, trading account assets, securities, derivative assets...

  • Page 107
    ... value of projected future cash flows discounted at the loan's original effective interest rate, or in certain circumstances, impairment may also be based upon the collateral value or the loan's observable market price if available. Impairment measurement for the renegotiated credit card, unsecured...

  • Page 108
    ... to the forgiveness of fully reserved home equity loans in connection with the National Mortgage Settlement. The decrease in the allowance related to the U.S. credit card and unsecured consumer lending portfolios in CBB was primarily due to improvement in delinquencies and bankruptcies. For example...

  • Page 109
    ... (1) Commercial real estate Commercial lease financing Non-U.S. commercial Total commercial charge-offs Total loans and leases charged off Recoveries of loans and leases previously charged off Residential mortgage Home equity Discontinued real estate U.S. credit card Non-U.S. credit card Direct...

  • Page 110
    ...2011. Net charge-offs exclude $2.8 billion of write-offs in the Countrywide home equity PCI loan portfolio for 2012. These write-offs decreased the PCI valuation allowance included as part of the allowance for loan and lease losses. For information on PCI write-offs, see Countrywide Purchased Credit...

  • Page 111
    ... debt, trading account assets and liabilities, and derivatives. Market-sensitive assets and liabilities are generated through loans and deposits associated with our traditional banking business, customer and other trading operations, the ALM process, credit risk mitigation activities and mortgage...

  • Page 112
    ...For more information on fair value, see Note 21 - Fair Value Measurements to the Consolidated Financial Statements. Trading-related revenues can be volatile and are largely driven by general market conditions and customer demand. Also, trading-related revenues are dependent on the volume and type of...

  • Page 113
    ... VaR is a key statistic used to measure market risk. In order to manage day-to-day risks, VaR is subject to trading limits both for our overall trading portfolio and within individual businesses. All trading limit excesses are communicated to management for review. A VaR model simulates the value of...

  • Page 114
    ... in the markets leading up to news about the fiscal cliff. Table 62 presents average, high and low daily trading VaR for 2012 and 2011. Table 62 Market Risk VaR for Trading Activities (Dollars in millions) Foreign exchange Interest rate Credit Real estate/mortgage Equities Commodities Portfolio...

  • Page 115
    ... for use in consolidated capital Table 63 Forward Rates December 31, 2012 ThreeFederal Month 10-Year Funds LIBOR Swap Spot rates 12-month forward rates 0.25% 0.25 0.31% 0.37 1.84% 2.10 Spot rates 12-month forward rates December 31, 2011 0.25% 0.58% 2.03% 0.25 0.75 2.29 Bank of America 2012 113

  • Page 116
    ... in our ALM activities and serve as an efficient tool to manage our interest rate and foreign exchange risk. We use derivatives to hedge the variability in cash flows or changes in fair value on our balance sheet due to interest rate and foreign exchange components. For additional information on our...

  • Page 117
    ... 31, 2012. The forward starting pay-fixed swap positions at December 31, 2012 and 2011 were $520 million and $8.8 billion. Does not include basis adjustments on either fixed-rate debt issued by the Corporation or AFS debt securities which are hedged using derivatives designated as fair value hedging...

  • Page 118
    ... is a key component of risk management discipline. The Global Compliance organization is responsible for driving a culture of compliance; establishing compliance program requirements and related policies; executing the monitoring and testing of business controls; performing risk assessments on the...

  • Page 119
    ... monitoring adherence to, corporate practices. Business and enterprise control function management uses the enterprise RCSA process to identify and evaluate the status of risk and control issues, including mitigation plans, as appropriate. The goals of this process are to assess changing market and...

  • Page 120
    ...of the change and its relationship to the other assumptions. Key judgments used in determining the allowance for credit losses include risk ratings for pools of commercial loans and leases, market and collateral values and discount rates for individually evaluated loans, product type classifications...

  • Page 121
    ... management judgment in determining the fair value of assets and liabilities, we have in place various processes and controls that include: a model validation policy that requires review and approval of quantitative models used for deal pricing, financial statement fair value determination and risk...

  • Page 122
    ... rounds of financing and offerings in the equity or debt capital markets. For fund investments, we generally record the fair value of our proportionate interest in the fund's capital as reported by the fund's respective managers. Accrued Income Taxes and Deferred Tax Assets Accrued income taxes...

  • Page 123
    .... We estimated expected rates of equity returns based on historical market returns and risk/return rates for similar industries of each reporting unit. We use our internal forecasts to estimate future cash flows and actual results may differ from forecasted results. Bank of America 2012 121

  • Page 124
    ... Settlement entered into by the Corporation on June 28, 2011, the adverse impact of the incremental mortgage-related charges and the continued economic slowdown in the mortgage business, we performed a goodwill impairment test for the CRES reporting unit. We concluded 122 Bank of America 2012

  • Page 125
    ... to direct such activities. For VIEs that hold financial assets, the party that services the assets or makes investment management decisions may have the power to direct the most significant activities of a VIE. Alternatively, a third party that has the unilateral right to replace the servicer or...

  • Page 126
    ... lower delinquencies, improved collection rates and fewer bankruptcy filings across the U.S. credit card and unsecured consumer lending portfolios, and improvement in overall credit quality in the commercial real estate portfolio partially offset by additions to consumer PCI loan portfolio reserves...

  • Page 127
    ... allowance applicable to the Merrill Lynch capital loss carryover deferred tax asset, partially offset by the $392 million charge from a one percent reduction to the U.K. corporate income tax rate enacted during 2010. average loan and deposit balances. The provision for credit losses improved...

  • Page 128
    ...863 13,549 Federal funds sold and securities borrowed or purchased under agreements to resell Trading account assets Debt securities (2) Loans and leases (3): Residential mortgage (4) Home equity Discontinued real estate U.S. credit card Non-U.S. credit card Direct/Indirect consumer Other consumer...

  • Page 129
    ...Time deposits placed and other short-term investments (2) Federal funds sold and securities borrowed or purchased under agreements to resell Trading account assets Debt securities Loans and leases: Residential mortgage Home equity Discontinued real estate U.S. credit card Non-U.S. credit card Direct...

  • Page 130
    ... (4) Dividends are cumulative. Dividends per depositary share, each representing a 1/1,000th interest in a share of preferred stock. Initially pays dividends semi-annually. Dividends per depositary share, each representing a 1/25th interest in a share of preferred stock. 128 Bank of America 2012

  • Page 131
    ... Stock Cash Dividend Summary (as of February 28, 2013) (continued) December 31, 2012 Outstanding Notional Amount (in millions) $ 98 Preferred Stock Series 1 (5) Declaration Date January 3, 2013 October 1, 2012 July 3, 2012 April 3, 2012 January 4, 2012 January 3, 2013 October 1, 2012 July 3, 2012...

  • Page 132
    ... Home equity Discontinued real estate (3) U.S. credit card Non-U.S. credit card Direct/Indirect consumer (4) Other consumer (5) Total consumer loans Consumer loans accounted for under the fair value option (6) Total consumer Commercial U.S. commercial (7) Commercial real estate (8) Commercial lease...

  • Page 133
    ... Our policy is to classify consumer real estate-secured loans as nonperforming at 90 days past due, except the Countrywide PCI loan portfolio, the fully-insured loan portfolio and loans accounted for under the fair value option as referenced in footnote 3. Balances are fully-insured loans. Balances...

  • Page 134
    ... (2) Commercial real estate Commercial lease financing Non-U.S. commercial Total commercial charge-offs Total loans and leases charged off Recoveries of loans and leases previously charged off Residential mortgage Home equity Discontinued real estate U.S. credit card Non-U.S. credit card Direct...

  • Page 135
    ... PCI loans and the non-U.S. credit portfolio in All Other. For more information on the PCI loan portfolio and the valuation allowance for PCI loans, see Note 5 - Outstanding Loans and Leases and Note 6 - Allowance for Credit Losses to the Consolidated Financial Statements. Bank of America 2012 133

  • Page 136
    ... for loan and lease losses Residential mortgage Home equity Discontinued real estate U.S. credit card Non-U.S. credit card Direct/Indirect consumer Other consumer Total consumer U.S. commercial (1) Commercial real estate Commercial lease financing Non-U.S. commercial Total commercial (2) Allowance...

  • Page 137
    ... maturities under contractual terms. Includes loans accounted for under the fair value option. Loan maturities include non-U.S. commercial and commercial real estate loans. Table X Non-exchange Traded Commodity Contracts December 31, 2012 (Dollars in millions) Asset Positions $ 5,508 8,399...

  • Page 138
    ... annualized average assets for four consecutive quarters. (4) Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. Other companies may define or calculate these measures differently. For additional information on these ratios and for corresponding...

  • Page 139
    ... period end to annualized net charge-offs, excluding the PCI loan portfolio Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs and PCI write-offs (10) Capital ratios (period end) Risk-based capital: Tier 1 common Tier 1 Total Tier 1 leverage Tangible equity...

  • Page 140
    ... Earning assets Time deposits placed and other short-term investments (1) Federal funds sold and securities borrowed or purchased under agreements to resell Trading account assets Debt securities (2) Loans and leases (3): Residential mortgage (4) Home equity Discontinued real estate U.S. credit card...

  • Page 141
    ... 116,025 305,970 Federal funds sold and securities borrowed or purchased under agreements to resell Trading account assets Debt securities (2) Loans and leases (3): Residential mortgage (4) Home equity Discontinued real estate U.S. credit card Non-U.S. credit card Direct/Indirect consumer (5) Other...

  • Page 142
    ... charges (3) Per common share information Earnings (loss) Diluted earnings (loss) Efficiency ratio (FTE basis) Return on average assets Four quarter trailing return on average assets (4) Return on average common shareholders' equity Return on average tangible common shareholders' equity Return...

  • Page 143
    ... calculate these measures differently. For more information on non-GAAP financial measures and ratios we use in assessing the results of the Corporation, see Supplemental Financial Data on page 31. On February 24, 2010, the common equivalent shares converted into common shares. Bank of America 2012...

  • Page 144
    ... measures differently. For more information on non-GAAP financial measures and ratios we use in assessing the results of the Corporation, see Supplemental Financial Data on page 31. Represents cost of funds, earnings credits and certain expenses related to intangibles. 142 Bank of America 2012

  • Page 145
    ... Banking Deposits Reported net income Adjustment related to intangibles Adjusted net income $ (2) $ $ $ 917 1 918 $ $ 1,217 3 1,220 23,734 (17,948) 5,786 Average allocated equity Adjustment related to goodwill and a percentage of intangibles Average economic capital Card Services Reported...

  • Page 146
    ... in assessing the results of the Corporation. Other companies may define or calculate these measures differently. For more information on non-GAAP financial measures and ratios we use in assessing the results of the Corporation, see Supplemental Financial Data on page 31. 144 Bank of America 2012

  • Page 147
    ...-end tangible common shareholders' equity Common shareholders' equity Goodwill Intangible assets (excluding MSRs) Related deferred tax liabilities Tangible common shareholders' equity Reconciliation of period-end shareholders' equity to period-end tangible shareholders' equity Shareholders' equity...

  • Page 148
    ... reflect the Corporation's own credit risk exposure as part of the fair value of derivative instruments. Interest Rate Lock Commitment (IRLC) - Commitment with a loan applicant in which the loan terms, including interest rate and price, are guaranteed for a designated period of time subject to...

  • Page 149
    ... debt restructuring), and consumer loans secured by real estate that are insured by the FHA or through long-term credit protection agreements with FNMA and FHLMC (fully-insured loan portfolio), are not placed on nonaccrual status and are, therefore, not reported as nonperforming loans and leases...

  • Page 150
    ... management Asset Liability Market Risk Committee Adjustable-rate mortgage Bank holding company Collateralized debt obligation Collateralized loan obligation Common Equivalent Securities Commercial mortgage-backed securities Compliance and Operational Risk Committee Community Reinvestment Act Credit...

  • Page 151
    ... Balance Sheet Consolidated Statement of Changes in Shareholders' Equity Consolidated Statement of Cash Flows Note 1 - Summary of Significant Accounting Principles Note 2 - Trading Account Assets and Liabilities Note 3 - Derivatives Note 4 - Securities Note 5 - Outstanding Loans and Leases Note...

  • Page 152
    ... to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management assessed the effectiveness of the Corporation's internal control over financial reporting as of December 31, 2012 based on...

  • Page 153
    ... and Shareholders of Bank of America Corporation: In our opinion, the accompanying Consolidated Balance Sheet and the related Consolidated Statement of Income, Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Shareholders' Equity and Consolidated Statement of Cash...

  • Page 154
    ... expense Deposits Short-term borrowings Trading account liabilities Long-term debt Total interest expense Net interest income Noninterest income Card income Service charges Investment and brokerage services Investment banking income Equity investment income Trading account profits Mortgage banking...

  • Page 155
    Bank of America Corporation and Subsidiaries Consolidated Statement of Comprehensive Income (Dollars in millions) Net income (loss) Other comprehensive income, net-of-tax: Net change in available-for-sale debt and marketable equity securities Net change in derivatives Employee benefit plan ...

  • Page 156
    Bank of America Corporation and Subsidiaries Consolidated Balance Sheet (Dollars in millions) December 31 2012 2011 $ 110,752 18,694 219,924 237,226 53,497 $ 120,102 26,004 211,183 169,319 73,023 Assets Cash and cash equivalents Time deposits placed and other short-term investments Federal funds ...

  • Page 157
    ...Representations and Warranties Obligations and Corporate Guarantees and Note 13 - Commitments and Contingencies) Shareholders' equity Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 3,685,410 and 3,689,084 shares Common stock and additional paid-in capital...

  • Page 158
    ...preferred stock and trust preferred securities Common stock issued under employee plans and related tax effects Other Balance, December 31, 2011 Net income Net change in available-for-sale debt and marketable equity securities Net change in derivatives Employee benefit plan adjustments Net change in...

  • Page 159
    ... of long-term debt Retirement of long-term debt Proceeds from issuance of preferred stock and warrants Cash dividends paid Excess tax benefits on share-based payments Other financing activities, net Net cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash...

  • Page 160
    ... testing and the Corporation's proportionate share of income or loss is included in equity investment income. The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates...

  • Page 161
    ... collateral is securities borrowed or purchased under agreements to resell. The Corporation also pledges firm-owned securities and loans as collateral in transactions that include repurchase agreements, securities loaned, public and trust deposits, U.S. Treasury tax and loan notes, and other short...

  • Page 162
    .... The changes in the fair value of these derivatives are recorded in mortgage banking income (loss). Securities Debt securities are recorded on the Consolidated Balance Sheet as of their trade date. Debt securities bought principally with the intent to buy and sell in the short term as part...

  • Page 163
    ... from the sales of debt securities are determined using the specific identification method. Marketable equity securities are classified based on management's intention on the date of purchase and recorded on the Consolidated Balance Sheet as of the trade date. Marketable equity securities that are...

  • Page 164
    ... loan. The Corporation continues to estimate cash flows expected to be collected over the life of the PCI loans using internal credit risk, interest rate and prepayment risk models that incorporate management's best estimate of current key assumptions such as default rates, loss severity and payment...

  • Page 165
    ... costs to sell, is determined using the same process as described for impaired loans in the Allowance for Credit Losses section of this Note. Consumer loans secured by personal property, credit card loans and other unsecured consumer loans are not placed on nonaccrual status prior to charge-off and...

  • Page 166
    ... status. Credit card and other unsecured consumer loans that have been renegotiated and placed on a fixed payment plan after July 1, 2012 are generally charged off no later than the end of the month in which the account becomes 120 days past due. Commercial loans and leases whose contractual terms...

  • Page 167
    ...for its intended function. Mortgage Servicing Rights The Corporation accounts for consumer-related MSRs at fair value with changes in fair value recorded in mortgage banking income (loss), while commercial-related and residential reverse mortgage MSRs are accounted for using the amortization method...

  • Page 168
    ... assets are initially recorded at fair value. In addition, the Corporation may invest in debt securities issued by unconsolidated VIEs. Fair values of these debt securities, which are AFS debt securities or trading account assets, 166 Bank of America 2012 are based primarily on quoted market prices...

  • Page 169
    ...January 24, 2012. For additional information, see Note 18 - Employee Benefit Plans. Accumulated Other Comprehensive Income The Corporation records unrealized gains and losses on AFS debt and marketable equity securities, gains and losses on cash flow accounting hedges, certain employee benefit plan...

  • Page 170
    ...'s loan and deposit products and provide the Corporation with their mailing lists and marketing activities. These agreements generally have terms that range from two to five years. The Corporation typically pays royalties in exchange for the endorsement. Compensation costs related to the credit card...

  • Page 171
    ... government and agency securities Equity securities Non-U.S. sovereign debt Corporate securities and other Total trading account liabilities (1) $ $ Includes $30.6 billion and $27.3 billion of government-sponsored enterprise obligations at December 31, 2012 and 2011. Bank of America 2012 169

  • Page 172
    NOTE 3 Derivatives Derivative Balances Derivatives are entered into on behalf of customers, for trading, or to support risk management activities. Derivatives used in risk management activities include derivatives that may or may not be designated in qualifying hedge accounting relationships. ...

  • Page 173
    ...by changes in market conditions such as interest rate movements. To mitigate the interest rate risk in mortgage banking production income, the Corporation utilizes forward loan sale commitments and other derivative instruments including purchased options and certain debt securities. The Corporation...

  • Page 174
    ... to manage credit risk related to certain funded and unfunded credit exposures. Credit derivatives include credit default swaps (CDS), total return swaps and swaptions. These derivatives are recorded on the Corporation's Consolidated Balance Sheet at fair value with changes in fair value recorded in...

  • Page 175
    ... in the same period as the RSUs affect earnings. The remaining derivatives are other risk management derivatives and changes in fair value are recorded in personnel expense. For more information on RSUs and related hedges, see Note 19 - Stock-based Compensation Plans. Bank of America 2012 173

  • Page 176
    ... the price at which the trading desk can execute the trade in the dealer market. For equity securities, commissions related to purchases and sales are recorded in other income (loss). Changes in the fair value of these securities are included in trading account profits. For debt securities, revenue...

  • Page 177
    ... 2012, 2011 and 2010. The difference between total trading account profits in the table below and in the Corporation's Consolidated Statement of Income represents trading activities in business segments other than Global Markets. Global Markets results in Note 26 - Business Segment Information are...

  • Page 178
    ... 316,066 $ 127,570 147,926 275,496 - 1,476 1,476 276,972 $ 1,189,545 696,399 1,885,944 9,116 8,722 17,838 $ 1,903,782 $ $ $ $ For credit-related notes, maximum payout/notional is the same as carrying value. 176 Bank of America 2012

  • Page 179
    ... by CDO, collateralized loan obligation (CLO) and credit-linked note vehicles. These instruments are primarily classified as trading securities. The carrying value of these instruments equals the Corporation's maximum exposure to loss. The Corporation is not obligated to make any payments to the...

  • Page 180
    ...000 (2) At December 31, 2012 and 2011, the cumulative CVA reduced the derivative assets balance by $2.4 billion and $2.8 billion. At December 31, 2012 and 2011, the Corporation's cumulative DVA reduced the derivative liabilities balance by $807 million and $2.4 billion. 178 Bank of America 2012

  • Page 181
    ...sale marketable equity securities (2) $ $ $ $ $ $ (146) (218) (128) - (6) (16) (15) (613) (47) (660) (26) (686) $ - $ December 31, 2011 Available-for-sale debt securities U.S. Treasury and agency securities Mortgage-backed securities: Agency Agency-collateralized mortgage obligations Non-agency...

  • Page 182
    ... of a loss on a security that is attributable to credit using a discounted cash flow model and estimates the expected cash flows of the underlying collateral using internal credit, interest rate and prepayment risk models that incorporate management's best estimate of current key assumptions such as...

  • Page 183
    ... assumptions used in estimating the expected cash flows for measuring credit losses on non-agency residential mortgage-backed securities (RMBS) were as follows at December 31, 2012. Significant Assumptions Range (1) Weightedaverage Prepayment speed Loss severity Life default rate (1) (2) 10th...

  • Page 184
    ... based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and excludes the effect of related hedging derivatives. Substantially all U.S. agency mortgage-backed securities. 182 Bank of America 2012

  • Page 185
    ... of China Construction Bank Corporation (CCB). Sales restrictions on these shares continue until August 2013. Because the sales restrictions on these shares will expire within one year, these securities are accounted for as AFS marketable equity securities and are carried at fair value with the...

  • Page 186
    ...Days or More Purchased Creditimpaired (4) Total Outstandings Home loans Core portfolio Residential mortgage (5) Home equity Legacy Assets & Servicing portfolio Residential mortgage Home equity Discontinued real estate (6) Credit card and other consumer U.S. credit card Non-U.S. credit card Direct...

  • Page 187
    ...Days or More Purchased Creditimpaired (4) Total Outstandings Home loans Core portfolio Residential mortgage (5) Home equity Legacy Assets & Servicing portfolio Residential mortgage Home equity Discontinued real estate (6) Credit card and other consumer U.S. credit card Non-U.S. credit card Direct...

  • Page 188
    ... loans. For additional information, see Note 8 - Representations and Warranties Obligations and Corporate Guarantees. Nonperforming Loans and Leases In 2012, the bank regulatory agencies jointly issued interagency supervisory guidance on nonaccrual status for junior-lien consumer real estate loans...

  • Page 189
    ... Due 90 Days or More 2012 2011 2012 2011 Home loans Core portfolio Residential mortgage (2) Home equity Legacy Assets & Servicing portfolio Residential mortgage (2) Home equity Discontinued real estate Credit card and other consumer U.S. credit card Non-U.S. credit card Direct/Indirect consumer...

  • Page 190
    ...value option. U.S. small business commercial includes $366 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At December 31, 2012, 98 percent of the balances...

  • Page 191
    ...value option. U.S. small business commercial includes $491 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At December 31, 2011, 97 percent of the balances...

  • Page 192
    ... agencies, and 49 state Attorneys General concerning the terms of a global settlement resolving investigations into certain origination, servicing and foreclosure practices (National Mortgage Settlement). Prior to permanently modifying a loan, the Corporation may enter into trial modifications...

  • Page 193
    The table below presents impaired loans in the Corporation's Home Loans portfolio segment at and for the years ended December 31, 2012 and 2011 and includes primarily loans managed by Legacy Assets & Servicing. Certain impaired home loans do not have a related allowance as the current valuation of ...

  • Page 194
    ...and were modified again during the period. These TDRs are managed by Legacy Assets & Servicing. Home Loans - TDRs Entered into During 2012 and 2011 (1) Unpaid Principal Balance $ 14,929 1,721 159 16,809 $ December 31, 2012 PreCarrying modification Value Interest Rate 12,143 858 85 13,086 5.52% 5.22...

  • Page 195
    ..., the Corporation makes loan modifications for borrowers working with third-party renegotiation agencies that provide solutions to customers' entire unsecured debt structures (external programs). In 2012, new regulatory guidance was issued addressing certain consumer real estate loans that have...

  • Page 196
    The table below provides information on the Corporation's renegotiated TDR portfolio at and for the years ended December 31, 2012 and 2011. Impaired Loans - Credit Card and Other Consumer - Renegotiated TDRs December 31, 2012 Unpaid Principal Balance $ 2,856 311 633 105 $ 2,856 311 738 $ $ Carrying...

  • Page 197
    ...measured based on the present value of payments expected to be received, discounted at the loan's original effective interest rate. Commercial impaired loans may also be measured based on observable market prices or, for loans that are solely dependent on the collateral for repayment, the estimated...

  • Page 198
    ... no charge-off is required at the time of modification. For information concerning modifications for the U.S. small business commercial portfolio, see Credit Card and Other Consumer in this Note. At December 31, 2012 and 2011, remaining commitments to lend additional funds to debtors whose terms...

  • Page 199
    ... balance and carrying value of commercial loans that were modified as TDRs during 2012 and 2011, and net chargeoffs that were recorded during the period in which the modification occurred. Purchased Credit-impaired Loans The table below shows activity for the accretable yield on Countrywide...

  • Page 200
    ...in the valuation allowance in both 2011 and 2010. In 2012, there were $2.8 billion of write-offs in the Countrywide home equity PCI loan portfolio primarily related to the National Mortgage Settlement with a corresponding decrease in the PCI valuation allowance. These write-offs had no impact on the...

  • Page 201
    ... million of renegotiated TDR loans related to U.S. small business commercial at December 31, 2012 and 2011. (3) Amounts are presented gross of the allowance for loan and lease losses. (4) Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option of...

  • Page 202
    ...-term Debt. The Corporation also uses VIEs in the form of synthetic securitization vehicles to mitigate a portion of the credit risk on its residential mortgage loan portfolio, as described in Note 5 - Outstanding Loans and Leases. The Corporation uses VIEs, such as cash funds managed within Global...

  • Page 203
    ...Warranties Obligations and Corporate Guarantees and Note 24 - Mortgage Servicing Rights. As a holder of these securities, the Corporation receives scheduled principal and interest payments. During 2012 and 2011, there were no OTTI losses recorded on those securities classified as AFS debt securities...

  • Page 204
    ... the Corporation is obligated to provide subordinated funding. During this period, cash payments from borrowers are accumulated to repay outstanding debt securities and the Corporation continues to make advances to borrowers when they draw on their lines of credit. The Corporation then transfers the...

  • Page 205
    ... to the investors' interest, and the discount receivables are classified in loans and leases. The table below summarizes select information related to consolidated credit card securitization trusts in which the Corporation held a variable interest at December 31, 2012 and 2011. Credit Card VIEs...

  • Page 206
    ... securities, the Corporation receives scheduled principal and interest payments. During 2012 and 2011, there were no OTTI losses recorded on those securities classified as AFS debt securities. The retained senior and subordinate securities were valued using quoted market prices or observable market...

  • Page 207
    ... trusts, typically to improve liquidity or manage credit risk. During 2012, the Corporation transferred automobile loans into an unconsolidated automobile trust, receiving cash proceeds of $2.4 billion and recording a loss on sale of $7 million. At December 31, 2012, the Corporation serviced assets...

  • Page 208
    ... and collateral value guarantees, with unconsolidated credit-linked and equitylinked note vehicles of $742 million and $824 million at December 31, 2012 and 2011. Repackaging vehicles issue notes that are designed to incorporate risk characteristics desired by customers. The vehicles hold debt...

  • Page 209
    ...financial guarantee providers insured all or some of the securities) or in the form of whole loans. In connection with these transactions, the Corporation or certain of its subsidiaries or legacy companies make or have made various representations and warranties. These representations and warranties...

  • Page 210
    ... years. Fannie Mae Settlement On January 6, 2013, the Corporation entered into an agreement with FNMA to resolve substantially all outstanding and potential repurchase and certain other claims relating to the origination, sale and delivery of residential mortgage loans originated and sold directly...

  • Page 211
    ...Covered Trusts and releases rights under the governing agreements for the Covered Trusts, the settlement does not release investors' securities law or fraud claims based upon disclosures made in connection with their decision to purchase, sell or hold securities issued by the Covered Trusts. To date...

  • Page 212
    ... of selling representations and warranties related to loans sold directly by legacy Countrywide to FNMA. The 2010 GSE Agreements did not cover outstanding and potential mortgage repurchase claims arising out of any alleged breaches of selling representations and warranties related to legacy Bank of...

  • Page 213
    ... were resolved through the Corporation's acceptance of the MI rescission, 58 percent were resolved through reinstatement of coverage or payment of the claim by the mortgage insurance company, and 22 percent were resolved on an aggregate basis through settlement, policy Bank of America 2012 211

  • Page 214
    ... and Warranties and Corporate Guarantees The liability for representations and warranties and corporate guarantees is included in accrued expenses and other liabilities on the Corporation's Consolidated Balance Sheet and the related 212 Bank of America 2012 provision is included in mortgage banking...

  • Page 215
    ...most agreements also allow investors to direct the securitization trustee to investigate loan files or demand the repurchase of loans if security holders hold a specified percentage, for example, 25 percent, of the voting rights of each tranche of the outstanding securities. Although the Corporation...

  • Page 216
    ...monoline insurers, due to ongoing litigation against legacy Countrywide and/or Bank of America. To the extent the Corporation received repurchase claims from the monolines that are properly presented, it generally reviews them on a loan-by-loan basis. Where a breach of representations and warranties...

  • Page 217
    ... insurance. Over time, there has been an increase in requests for loan files from certain private-label securitization trustees, as well as requests for tolling agreements to toll the applicable statutes of limitation relating to representations and warranties repurchase claims, and the Corporation...

  • Page 218
    ... impact of the incremental mortgage-related charges, and the continued economic slowdown in the mortgage business, the Corporation performed a goodwill impairment test for the Consumer Real Estate Services (CRES) reporting unit. The Corporation concluded that the remaining balance of goodwill of...

  • Page 219
    NOTE 10 Deposits The Corporation had U.S. certificates of deposit and other U.S. time deposits of $100 thousand or more totaling $41.9 billion and $50.8 billion at December 31, 2012 and 2011. Non-U.S. certificates of deposit and other non-U.S. time deposits of $100 thousand or more totaled $29.1 ...

  • Page 220
    ... 31, 2012 and 2011. These short-term bank notes, along with Federal Home Loan Bank (FHLB) advances, U.S. Treasury tax and loan notes, and term federal funds purchased, are included in commercial paper and other short-term borrowings on the Corporation's Consolidated Balance Sheet. See Note 12...

  • Page 221
    ... of one year or more. The table below presents the balance of longterm debt at December 31, 2012 and 2011, and the related contractual rates and maturity dates as of December 31, 2012. December 31 2012 2011 (Dollars in millions) Notes issued by Bank of America Corporation Senior notes: Fixed, with...

  • Page 222
    ... corporate debt and other securities under its existing U.S. shelf registration statements. At December 31, 2012 and 2011, Bank of America, N.A. had approximately $65.5 billion and $62.4 billion of authorized, but unissued bank notes under its existing $75 billion bank note program. Long-term bank...

  • Page 223
    ... the notes and the subsequent purchase of the Corporation's preferred stock under the stock purchase contracts, the preferred stock constitutes the sole asset of the applicable trust. In 2011, the Corporation issued 282 million shares of common stock valued at $1.6 billion and senior notes valued at...

  • Page 224
    ...debt with respect to and in accordance with the terms of the Replacement Capital Covenant. The Trust Securities Summary table details the outstanding Trust Securities and the related Notes previously issued which remained outstanding at December 31, 2012, as originated by Bank of America Corporation...

  • Page 225
    ... and $772 million. In light of proposed Basel regulatory capital changes related to unfunded commitments, over the past three years, the Corporation has actively reduced these commitments in a series of sale transactions involving its private equity fund investments. Bank of America 2012 223

  • Page 226
    .... Historically, any payments made under these guarantees have been de minimis. The Corporation has assessed the probability of making such payments in the future as remote. Merchant Services In accordance with credit and debit card association rules, the Corporation sponsors merchant processing...

  • Page 227
    ... agreements and other transactions. Payment Protection Insurance Claims Matter In the U.K., the Corporation previously sold payment protection insurance (PPI) through its international card services business to credit card customers and consumer loan customers. PPI covers a consumer's loan or debt...

  • Page 228
    ... over time as it pays claims under relevant policies. FGIC The Corporation, Countrywide and other Countrywide entities are named as defendants in an action filed on December 11, 2009 by Financial Guaranty Insurance Company (FGIC) entitled Financial Guaranty Insurance Co. v. Countrywide Home Loans...

  • Page 229
    ... 10, 2013. The second MBIA action, MBIA Insurance Corporation, Inc. v. Bank of America Corporation, Countrywide Financial Corporation, Countrywide Home Loans, Inc., Countrywide Securities Corporation, et al., filed on July 10, 2009, is pending in California Superior Court, Los Angeles County. MBIA...

  • Page 230
    ... discount fees that merchants pay to acquiring banks on credit card transactions. It also alleges that defendants conspired to impose certain rules relating to merchant acceptance of credit cards at the point of sale. The action asserts claims under section 45 of the Competition Act and other common...

  • Page 231
    ... v. Bank of America, et al. Plaintiff filed an amended complaint on January 14, 2011. Plaintiff seeks to sue on behalf of all persons who acquired certain series of preferred stock offered by the Corporation pursuant to a shelf registration statement dated May 5, 2006. Plaintiff's claims arise...

  • Page 232
    ... entitled American International Group, Inc. et al. v. Bank of America Corporation et al. AIG has named the Corporation, Merrill Lynch, CHL and a number of related entities as defendants. AIG's complaint asserts certain MBS Claims pertaining to 347 MBS offerings and two private placements in which...

  • Page 233
    ...San Francisco (FHLB San Francisco) filed an action in California Superior Court, San Francisco County, entitled Federal Home Loan Bank of San Francisco v. Credit Suisse Securities (USA) LLC, et al. FHLB San Francisco's complaint asserts certain MBS Claims against BAS, Countrywide and several related...

  • Page 234
    ... in those agreements concerning property appraisals, prudent and customary loan origination practices, accuracy of mortgage loan schedules and occupancy status. The complaint further alleges that those loans were deposited by Thornburg into a securitization trust, that ZI purchased certificates...

  • Page 235
    ... On April 11, 2012, the Policemen's Annuity & Benefit Fund of the City of Chicago, on its own behalf and on behalf of a proposed class of purchasers of 41 RMBS trusts collateralized by Washington Mutual-originated (WaMu) mortgages, filed a proposed class action complaint in the United States...

  • Page 236
    ... 400 million shares of the Corporation's common stock valued at $2.2 billion and $2.3 billion aggregate principal amount of senior notes. The Exchange Agreements related to Trust Securities are described in Note 12 - Long-term Debt and the Exchange Agreements related to preferred stock are described...

  • Page 237
    ...of the number of common shares issuable pursuant to the original conversion terms, the $220 million fair value of consideration transferred to the Series L Preferred Stock holders in excess of the $32 million fair value of securities issuable pursuant to the original conversion terms was recorded as...

  • Page 238
    ... form of depositary shares, each representing a 1/25th interest in a share of preferred stock, paying a semi-annual cash dividend, if and when declared, until the redemption date adjusts to a quarterly cash dividend, if and when declared, thereafter. n/a = not applicable 236 Bank of America 2012

  • Page 239
    ... trading days, the closing price of common stock exceeds 130 percent of the thenapplicable conversion price of the Series L Preferred Stock. If a conversion of Series L Preferred Stock occurs subsequent to a dividend record date but prior to the dividend payment date, the Corporation will still pay...

  • Page 240
    ...the final year-end actuarial valuations. For more information on employee benefit plans, see Note 18 - Employee Benefit Plans. Net change in fair value represents the impact of changes in spot foreign exchange rates on the Corporation's net investment in non-U.S. operations, and related hedges. The...

  • Page 241
    ...net loss applicable to common shareholders for 2010, no dilutive potential common shares were included in the calculation of diluted EPS because they would have been antidilutive. In 2012 and 2011, in connection with the exchanges described in Note 14 - Shareholders' Equity, the Corporation recorded...

  • Page 242
    ...2011 Actual Minimum Required (1) Minimum Required (1) Ratio Amount Ratio Amount Risk-based capital Tier 1 common Bank of America Corporation Tier 1 Bank of America Corporation Bank of America, N.A. FIA Card Services, N.A. Total Bank of America Corporation Bank of America, N.A. FIA Card Services...

  • Page 243
    ... 30, 2012, to freeze benefits earned. The plans provide defined benefits based on an employee's compensation and years of service. The Bank of America Pension Plan (the Pension Plan) provides participants with compensation credits, generally based on years of service. For account balances based on...

  • Page 244
    ... Pension Plan has a balance guarantee feature for account balances with participant-selected earnings, applied at the time a benefit payment is made from the plan that effectively provides principal protection for participant balances transferred and certain compensation credits. The Corporation is...

  • Page 245
    ... Health and Life Plans was December 31 of each year reported. n/a = not applicable Amounts recognized in the Corporation's Consolidated Balance Sheet at December 31, 2012 and 2011 are presented in the table below. Amounts Recognized on Consolidated Balance Sheet Qualified Pension Plans (Dollars in...

  • Page 246
    ... of prior service cost (credits) Amortization of net actuarial loss (gain) Recognized loss due to settlements and curtailments Net periodic benefit cost (income) Weighted-average assumptions used to determine net cost for years ended December 31 Discount rate Expected return on plan assets Rate of...

  • Page 247
    ... trend rate used to measure the expected cost of benefits covered by the Postretirement Health and Life Plans was 7.50 percent for 2013, reducing in steps to 5.00 percent in 2019 and later years. A onepercentage-point increase in assumed health care cost trend rates would have increased the service...

  • Page 248
    ... plan assets) at December 31, 2012 and 2011. Fair Value Measurements For information on fair value measurements, including descriptions of Level 1, 2 and 3 of the fair value hierarchy and the valuation methods employed by the Corporation, see Note 1 - Summary of Significant Accounting Principles...

  • Page 249
    ... funds Public real estate investment trusts Real estate Private real estate Real estate commingled/mutual funds Limited partnerships Other investments (1) Total plan investment assets, at fair value $ $ $ $ December 31, 2011 Cash and short-term investments Money market and interest-bearing cash...

  • Page 250
    ...Settlements - (1) (3) - (20) (4) (28) Transfers into/ (out of) Level 3 $ - 1 - - - - 1 Balance December 31 $ 13 10 110 324 231 129 817 Fixed income U.S. government and government agency securities Non-U.S. debt securities Real estate Private real estate Real estate commingled/mutual funds Limited...

  • Page 251
    ...of the Corporation's common shares. For outstanding awards granted prior to 2003, payment is generally made 10 years from the grant date in a fixed number of the Corporation's common shares unless the fair value of such shares Bank of America 2012 Key Employee Stock Plan The Key Employee Stock Plan...

  • Page 252
    ...low market price on the relevant purchase date and the maximum annual contribution per employee was $23,750 in 2012. The weighted-average fair value of the ESPP stock purchase rights representing the five percent discount on the Corporation's common stock purchases exercised by employees in 2012 was...

  • Page 253
    ... on AFS debt and marketable equity securities, foreign currency translation adjustments, derivatives and employee benefit plan adjustments that are included in accumulated OCI. As a result of these tax effects, accumulated OCI decreased $1.3 billion and $3.2 billion in 2012 and 2010, and increased...

  • Page 254
    ...retirement benefits Security, loan and debt valuations State income taxes Other Gross deferred tax assets Valuation allowance Total deferred tax assets, net of valuation allowance Deferred tax liabilities Equipment lease financing Long-term borrowings Available-for-sale securities Mortgage servicing...

  • Page 255
    ... activity has slowed significantly or ceased. Some of these instruments are valued using a discounted cash flow model, which estimates the fair value of the securities using internal credit risk, interest rate and prepayment risk models that incorporate management's best estimate of current key...

  • Page 256
    ...-sale The fair values of LHFS are based on quoted market prices, where available, or are determined by discounting estimated cash flows using interest rates approximating the Corporation's current origination rates for similar loans adjusted to reflect the inherent credit risk. Asset-backed Secured...

  • Page 257
    ... debt securities Loans and leases Mortgage servicing rights Loans held-for-sale Other assets Total assets Liabilities Interest-bearing deposits in U.S. offices Federal funds purchased and securities loaned or sold under agreements to repurchase Trading account liabilities: U.S. government and agency...

  • Page 258
    ... debt securities Loans and leases Mortgage servicing rights Loans held-for-sale Other assets Total assets Liabilities Interest-bearing deposits in U.S. offices Federal funds purchased and securities loaned or sold under agreements to repurchase Trading account liabilities: U.S. government and agency...

  • Page 259
    ... Non-agency commercial Corporate/Agency bonds Other taxable securities Tax-exempt securities Total AFS debt securities Loans and leases (4, 5) Mortgage servicing rights (5) Loans held-for-sale (4) Other assets (6) Trading account liabilities - Corporate securities and other Other short-term...

  • Page 260
    ... commercial Non-U.S. securities Corporate/Agency bonds Other taxable securities Tax-exempt securities Total AFS debt securities Loans and leases (3, 4) Mortgage servicing rights (4) Loans held-for-sale (3) Other assets (5) Trading account liabilities - Corporate securities and other Other short-term...

  • Page 261
    ... number of non-agency RMBS and other taxable securities priced using a discounted cash flow model. Transfers into Level 3 for net derivative contracts were primarily related to a lack of price observability for certain credit default and total return swaps. Transfers into Level 3 for long-term debt...

  • Page 262
    ... securities: Non-agency residential MBS Corporate/Agency bonds Other taxable securities Tax-exempt securities Total AFS debt securities Loans and leases (2) Mortgage servicing rights Loans held-for-sale (2) Other assets Trading account liabilities - Corporate securities and other Other short-term...

  • Page 263
    ... taxable securities Tax-exempt securities Total AFS debt securities Loans and leases (2) Mortgage servicing rights Loans held-for-sale (2) Other assets Trading account liabilities: Non-U.S. sovereign debt Corporate securities and other Total trading account liabilities Other short-term borrowings...

  • Page 264
    ... Changes in Unrealized Gains (Losses) Relating to Assets and Liabilities Still Held at Reporting Date 2012 Equity Investment Income (Loss 141 - - - 141 $ Trading Account Profits (Losses) Mortgage Banking Income (Loss) (1 2,020 - - (1,100) 121 (71) - - - 970 $ 2011 Trading account assets: Corporate...

  • Page 265
    ... sovereign debt Mortgage trading loans and ABS Total trading account assets Net derivative assets Non-agency residential MBS AFS debt securities Loans and leases (2) Mortgage servicing rights Loans held-for-sale (2) Other assets Trading account liabilities - Non-U.S. sovereign debt Other short-term...

  • Page 266
    ... whole loans, mortgage CDOs and net monoline exposure. Commercial loans, debt securities and other includes corporate CLOs and CDOs, commercial loans and bonds, and securities backed by non-real estate assets. Structured liabilities primarily includes equity-linked notes that are accounted for under...

  • Page 267
    ... assets on the Corporation's Consolidated Balance Sheet and represent fair value and related losses on foreclosed properties that were written down subsequent to their initial classification as foreclosed properties. Losses represent charge-offs on real estate-secured loans. Bank of America 2012...

  • Page 268
    ...for-sale The Corporation elects to account for residential mortgage LHFS, commercial mortgage LHFS and other LHFS under the fair value option with interest income on these LHFS recorded in other interest income. These loans are actively managed and monitored and, as appropriate, certain market risks...

  • Page 269
    ... deposits Asset-backed secured financings Unfunded loan commitments Other short-term borrowings Long-term debt (1) (1) The majority of the difference between the fair value carrying amount and contractual principal outstanding at December 31, 2012 and 2011 relates to the impact of the Corporation...

  • Page 270
    ... 31, 2012 and 2011 was carried at fair value on the Corporation's Consolidated Balance Sheet. Short-term Financial Instruments The carrying value of short-term financial instruments, including cash and cash equivalents, time deposits placed and other shortterm investments, federal funds sold and...

  • Page 271
    ... Note 24 - Mortgage Servicing Rights. Financial assets Loans Financial liabilities Deposits Long-term debt Commercial Unfunded Lending Commitments Fair values were generally determined using a discounted cash flow valuation approach which is applied using market-based CDS or internally developed...

  • Page 272
    NOTE 24 Mortgage Servicing Rights The Corporation accounts for consumer MSRs at fair value with changes in fair value recorded in the Corporation's Consolidated Statement of Income in mortgage banking income (loss). The Corporation manages the risk in these MSRs with securities including MBS and ...

  • Page 273
    ... services include commercial loans, leases, commitment facilities, trade finance, real estate lending, assetbased lending and direct/indirect consumer loans. Global Banking's treasury solutions business includes treasury management, foreign exchange and short-term investing options. Global Banking...

  • Page 274
    ... Markets provides market-making, financing, securities clearing, settlement and custody services globally to institutional investor clients in support of their investing and trading activities. Global Markets also works with commercial and corporate clients to provide risk management products using...

  • Page 275
    ...) (704) 2,085 Net income (loss) $ 4,188 $ 1,446 $ (2,238) Year-end total assets $ 2,209,974 $ 2,129,046 (Dollars in millions) At and for the Year Ended December 31 Consumer & Business Banking Consumer Real Estate Services 2012 2012 2011 2010 2011 2010 $ 19,125 $ 21,378 $ 24,299 $ 2,959 $ 3,207...

  • Page 276
    ...net of interest expense Segments' net income (loss) Adjustments, net of taxes: ALM activities Equity investment income Liquidating businesses Merger and restructuring charges Other Consolidated net income (loss) $ 2012 85,025 $ 2011 78,331 7,576 7,105 3,526 (972) (2,112) 93,454 (3,266) 513 4,476...

  • Page 277
    ... billion and $3.5 billion in 2012, 2011 and 2010 of representations and warranties provision, which is presented as a component of mortgage banking income on the Corporation's Consolidated Statement of Income, litigation expense and in 2012 an expense related to an agreement with the Federal Reserve...

  • Page 278
    ... Net sales of securities Net payments from subsidiaries Other investing activities, net Net cash provided by investing activities Financing activities Net increase (decrease) in commercial paper and other short-term borrowings Proceeds from issuance of long-term debt Retirement of long-term debt...

  • Page 279
    ... Bank of America's disclosure controls and procedures were effective, as of the end of the period covered by this report, in recording, processing, summarizing and reporting information required to be disclosed, within the time periods specified in the SEC's rules and forms. Bank of America 2012...

  • Page 280
    ... the Committee of Sponsoring Organizations of the Treadway Commission, Bank of America Corporation's (the "Corporation") assertion, included under Item 9A, that the Corporation's disclosure controls and procedures were effective as of December 31, 2012 ("Management's Assertion"). Disclosure controls...

  • Page 281
    ... Legacy Asset Servicing Executive Bruce R. Thompson* Chief Financial Officer Board of Directors Charles O. Holliday, Jr. Chairman of the Board Bank of America Corporation Sharon L. Allen Former Chairman Deloitte LLP Mukesh D. Ambani Chairman and Managing Director Reliance Industries Limited...

  • Page 282
    ... channels, and continued use of Image ATMs, electronic payments and an employee print reduction program, preventing 34,102 metric tons of carbon dioxide emissions. Customers can sign up to receive online statements through their Bank of America or Merrill Lynch account website. In 2012, we adopted...

  • Page 283
    .... Bank of America Merrill Lynch is a marketing name for the Retirement Services businesses of BAC. BofA™ Global Capital Management Group, LLC (•BofA Global Capital Management" ) is an asset management division of BAC. BofA Global Capital Management entities furnish investment management services...

  • Page 284
    Bank of America Corporation 2012 Annual Report Please recycle. © 2013 Bank of America Corporation 00-04-1368B 3/2013