(Logo: http://www.newscom.com/cgi-bin/prnh/20050720/CLW086LOGO-b )
Earnings after preferred dividends and available to common shareholders
were
In the fourth quarter of 2008, the company had a net loss of
Fourth quarter results were driven by escalating credit costs, including additions to reserves, and significant writedowns and trading losses in the capital markets businesses. These actions reflect the deepening economic recession and extremely challenging financial environment, both of which significantly intensified in the last three months of 2008.
Global Consumer and Small Business Banking and Global Wealth and Investment Management were profitable, paced by Bank of America's successful and expanding deposit business. Negative results in Capital Markets and Advisory Services masked the profitability in Business Lending and Treasury Services within Global Corporate and Investment Banking.
Bank of America ended 2008 with a Tier 1 capital ratio of 9.15 percent.
Merrill Lynch preliminary results indicate a fourth-quarter net loss of
In view of the continuing severe conditions in the markets and economy,
the U.S. government agreed to assist in the Merrill acquisition by making a
further investment in Bank of America of
In addition, the government has agreed to provide protection against
further losses on
On a pro forma basis, this additional capital would boost the company's Tier 1 capital ratio to approximately 10.70 percent.
In light of continuing severe economic and financial market conditions,
the Bank of
Combined, these actions strengthen Bank of America and will allow the company to continue business levels that both support the U.S. economy and create future value for shareholders.
Bank of America extended more than
Customer Highlights
-- Of the more than
-- During the fourth quarter, Small Business Banking extended nearly
-- Mortgages made to low- and moderate-income borrowers and areas totaled
-- To help homeowners avoid foreclosure, Bank of America and Countrywide
modified approximately 230,000 home loans during 2008. This year the company
embarked on a loan modification program projected to modify over
-- The company established a lending initiative group: senior officers meeting with the chief executive every week to evaluate how much Bank of America is lending, to whom, and what more can be done while remaining prudent and responsible. The company will report findings monthly.
Fourth Quarter 2008 Financial Summary
Revenue and Expense
Revenue net of interest expense on a fully taxable-equivalent basis rose
19 percent to
Net interest income on a fully taxable-equivalent basis rose 37 percent to
Noninterest income declined 29 percent to
Noninterest expense rose 5 percent to
Credit Quality
Credit quality deteriorated further during the quarter as the recession worsened. Consumers continued to experience high levels of stress from declining home prices, rising unemployment and tighter credit conditions. These factors led to higher losses and an increase in delinquencies in all consumer portfolios.
Declining home values, a slowdown in consumer spending and continued turmoil in the global financial markets negatively impacted the commercial portfolios. Commercial losses increased during the quarter driven by higher broad-based losses in the non-real estate domestic portfolios, the homebuilder portfolio, and several large defaults by foreign financial services borrowers.
Nonperforming assets were
Total managed net losses were
Net charge-offs were
The provision for credit losses was
Capital Management
Total shareholders' equity was
Bank of America issued 455 million common shares for
In
Full-Year 2008 Financial Summary
Revenue and Expense
Revenue on a fully taxable-equivalent basis increased 8 percent to
Net interest income on a fully taxable-equivalent basis increased to
Noninterest income fell 15 percent to
Noninterest expense increased 11 percent to
Credit Quality
Provision expense increased
Total managed net losses were
Capital Management
For 2008, Bank of America recorded
2008 Business Segment Results Global Consumer and Small Business Banking(1) (Dollars in millions) 2008 2007 Total managed revenue, net of interest expense(2) $58,344 $47,855 Provision for credit losses(3) 26,841 12,920 Noninterest expense 24,937 20,349 Net income 4,234 9,362 Efficiency ratio(2) 42.74% 42.52% Return on average equity 5.78 14.81 Managed loans(4) $350,264 $294,030 Deposits(4) 370,961 330,661 At 12/31/08 At 12/31/07 Period ending deposits $393,165 $346,908
1 Results shown on a managed basis. Managed basis assumes that loans that have been securitized were not sold and presents earnings on these loans in a manner similar to the way loans that have not been sold (i.e., held loans) are presented. For more information and detailed reconciliation, please refer to the data pages supplied with this Press Release.
2 Fully taxable-equivalent basis
3 Represents provision for credit losses on held loans combined with realized credit losses associated with the securitized loan portfolio
4 Balances averaged for period
Global Consumer and Small Business Banking net income declined from a year ago as credit costs more than doubled. Expenses rose mostly on the addition of Countrywide.
Managed net revenue rose 22 percent due to the Countrywide acquisition and organic loan and deposit growth.
The provision for credit losses increased by
-- Deposits and Student Lending net income increased by 9 percent to
-- Card Services net income fell 85 percent to
-- Mortgage, Home Equity and Insurance Services reported a net loss of
Fourth-quarter net income for Global Consumer and Small Business Banking
declined 56 percent to
Global Corporate and Investment Banking (Dollars in millions) 2008 2007 Total revenue, net of interest expense(1) $13,440 $13,651 Provision for credit 658 losses 3,080 Noninterest expense 10,381 12,198 Net income (loss) (14) 510 Efficiency ratio(1) 77.24% 89.36% Return on average equity (0.02) 1.12 Loans and leases(2) $337,352 $274,725 Trading-related assets(2) 341,544 362,195 Deposits(2) 239,097 219,891 1 Fully taxable-equivalent basis 2 Balances averaged for period
Global Corporate and Investment Banking had a net loss of
The provision for credit losses increased
-- Business Lending net income decreased 14 percent to
-- Capital Markets and Advisory Services recorded a net loss of
-- Treasury Services net income increased 28 percent to
Global Corporate and Investment Banking reported a net loss of
Capital Markets and Advisory Services had negative net revenue of
Market disruption-related impacts of
-- Total CDO-related losses of
-- Writedowns of commercial mortgage-backed securities and related
transactions of
-- Leveraged lending-related writedowns of $429 million. -- Writedowns on auction rate securities of $353 million. Global Wealth and Investment Management (Dollars in millions) 2008 2007 Total revenue, net of interest expense(1) $7,785 $7,553 Provision for credit losses 664 14 Noninterest expense 4,904 4,480 Net income 1,416 1,960 Efficiency ratio(1) 62.99% 59.31% Return on average equity 12.11 19.83 Loans(2) $87,591 $73,473 Deposits(2) 159,525 124,871 (in billions) At 12/31/08 At 12/31/07 Assets under management $524.0 $643.5 1 Fully taxable-equivalent basis 2 Balances averaged for period
Net income declined 28 percent to
Net revenue increased 3 percent from the 2007 addition of U.S. Trust and LaSalle and organic loan and deposit growth. The increase was offset by support to certain cash funds, writedowns related to auction rate securities and weaker equity markets.
The provision for credit losses increased
-- U.S. Trust, Bank of America Private Wealth Management net income
declined 2 percent to
-- Columbia Management reported a net loss of
-- Premier Banking and Investments net income fell 54 percent to
Fourth-quarter net income for Global Wealth and Investment Management
increased 65 percent to
All Other(1) (Dollars in millions) 2008 2007 Total revenue net of interest expense(2) $(5,593) $(477) Provision for credit losses(3) (3,760) (5,207) Merger and restructuring charges 935 410 All other noninterest expense 372 87 Net income (loss) (1,628) 3,150 Loans and leases(4) $135,671 $133,926
1 All Other consists primarily of equity investments, the residential mortgage portfolio associated with asset and liability management activities, the residual impact of the cost allocation processes, merger and restructuring charges, intersegment eliminations, and the results of certain consumer finance, investment management and commercial lending businesses that are being liquidated. All Other also includes the offsetting securitization impact to present Card Services on a managed basis. Our view of Global Consumer and Small Business Banking operations are also shown on a managed basis. For more information and detailed reconciliation, please refer to the data pages supplied with this Press Release.
2 Fully taxable-equivalent basis
3 Represents the provision for credit losses in All Other combined with the GCSBB securitization offset.
4 Balances averaged for period
All Other had a net loss of
Transition Update
(Merrill Lynch results are not part of Bank of America fourth-quarter or full-year 2008 results)
Merrill Lynch was acquired on
Merrill Lynch preliminary results indicate a fourth-quarter net loss of
Merrill Lynch's Global Wealth Management division generated
Significant negative fourth-quarter items for Merrill Lynch include:
-- Credit valuation adjustments related to monoline financial guarantor
exposures of
-- Goodwill impairments of
-- Leveraged loan writedowns of
--
-- Commercial real estate writedowns of
The LaSalle transition reached a significant milestone in the quarter with successful systems conversions, marking the completion of the integration. In addition, cost savings exceeded original projections.
The integration of Countrywide is on track and expected to reach targeted
cost savings, which are currently expected to be around
Note: Chief Executive Officer
Bank of America
Bank of America is one of the world's largest financial institutions,
serving individual consumers, small and middle market businesses and large
corporations with a full range of banking, investing, asset management and
other financial and risk-management products and services. The company
provides unmatched convenience in
Forward-Looking Statements
Bank of America may make forward-looking statements, including, for example, statements about management expectations and intentions regarding our future financial results, integration plans and cost savings, growth opportunities, business outlook, loan and deposit growth, mortgage production, credit losses, and other similar matters. These forward-looking statements are not historical facts, but instead represent Bank of America's current expectations, intentions or forecasts of future events, circumstances or results. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and often are beyond Bank of America's control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements.
You should not place undue reliance on any forward-looking statement and
should consider the following possible events or factors that could cause
results or performance to differ materially from those expressed in the
forward-looking statements: negative economic conditions; changes in interest
rates and market liquidity; changes in foreign exchange rates; adverse
movements and volatility in debt and equity capital markets; changes in market
rates and prices, which may adversely impact the value of financial products
and instruments; estimates of fair value of assets and liabilities;
legislative and regulatory actions in
Forward-looking statements speak only as of the date they are made, and Bank of America undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.
http://www.bankofamerica.com
Investors May Contact:
Kevin Stitt, Bank of America, 1.704.386.5667
Lee McEntire, Bank of America, 1.704.388.6780
Grace Yoon, Bank of America, 1.212.449.7323
Reporters May Contact:
Scott Silvestri, Bank of America, 1.980.388.9921
scott.silvestri@bankofamerica.com
Bank of America Corporation and Subsidiaries
Selected Financial Data
(Dollars in millions, except per share data; shares in thousands)
Summary Income Three Months Ended
Statement December 31 Year Ended December 31
2008 2007 2008 2007
Net interest income $13,106 $9,165 $45,360 $34,441
Total noninterest
income 2,574 3,639 27,422 32,392
Total revenue, net of
interest expense 15,680 12,804 72,782 66,833
Provision for credit
losses 8,535 3,310 26,825 8,385
Noninterest expense,
before merger and
restructuring charges 10,641 10,269 40,594 37,114
Merger and
restructuring charges 306 140 935 410
Income (loss) before
income taxes (3,802) (915) 4,428 20,924
Income tax expense
(benefit) (2,013) (1,183) 420 5,942
Net income (loss) $(1,789) $268 $4,008 $14,982
Preferred stock
dividends 603 53 1,452 182
Net income (loss)
applicable to common
shareholders $(2,392) $215 $2,556 $14,800
Earnings (loss) per
common share $(0.48) $0.05 $0.56 $3.35
Diluted earnings
(loss) per common
share (1) (0.48) 0.05 0.55 3.30
Summary Average Three Months Ended
Balance Sheet December 31 Year Ended December 31
2008 2007 2008 2007
Total loans and leases $941,563 $868,119 $910,878 $776,154
Debt securities 280,942 206,873 250,551 186,466
Total earning assets 1,616,673 1,502,998 1,562,729 1,390,192
Total assets 1,948,854 1,742,467 1,843,979 1,602,073
Total deposits 892,141 781,625 831,144 717,182
Shareholders' equity 176,566 144,924 164,831 136,662
Common shareholders'
equity 142,535 141,085 141,638 133,555
Performance Ratios Three Months Ended
December 31 Year Ended December 31
2008 2007 2008 2007
Return on average
assets (0.37)% 0.06 % 0.22 % 0.94 %
Return on average
common shareholders'
equity (6.68) 0.60 1.80 11.08
Credit Quality Three Months Ended
December 31 Year Ended December 31
2008 2007 2008 2007
Total net charge-offs $5,541 $1,985 $16,231 $6,480
Annualized net charge-
offs as a % of
average loans and
leases outstanding
(2) 2.36 % 0.91 % 1.79 % 0.84 %
Provision for credit
losses $8,535 $3,310 $26,825 $8,385
Total consumer credit
card managed net
losses 3,263 2,138 11,382 8,214
Total consumer credit
card managed net
losses as a % of
average managed
credit card
receivables 7.16 % 4.75 % 6.18 % 4.79 %
December 31
2008 2007
Total nonperforming
assets $18,232 $5,948
Nonperforming assets
as a % of total
loans, leases and
foreclosed properties
(2) 1.96 % 0.68 %
Allowance for loan and
lease losses $23,071 $11,588
Allowance for loan and
lease losses as a %
of total loans and
leases (2) 2.49 % 1.33 %
Capital Management December 31
2008 2007
Risk-based capital
ratios:
Tier 1 9.15 % 6.87 %
Total 13.00 11.02
Tangible equity ratio
(3) 5.01 3.62
Tangible common equity
ratio (4) 2.83 3.35
Period-end common
shares issued and
outstanding 5,017,436 4,437,885
Three Months Ended
December 31 Year Ended December 31
2008 2007 2008 2007
Shares issued 455,381 3,730 579,551 53,464
Shares repurchased - (2,700) - (73,730)
Average common shares
issued and
outstanding 4,957,049 4,421,554 4,592,085 4,423,579
Average diluted common
shares issued and
outstanding (1) 4,957,049 4,470,108 4,612,491 4,480,254
Dividends paid per
common share $0.32 $0.64 $2.24 $2.40
Summary Ending Balance
Sheet December 31
2008 2007
Total loans and leases $931,446 $876,344
Total debt securities 277,589 214,056
Total earning assets 1,536,198 1,463,570
Total assets 1,817,943 1,715,746
Total deposits 882,997 805,177
Total shareholders'
equity 177,052 146,803
Common shareholders'
equity 139,351 142,394
Book value per share
of common stock $27.77 $32.09
(1) Due to the net loss for the three months ended
(2) Ratios do not include loans measured at fair value in accordance with
SFAS 159 at and for the three months and year ended
(3) Tangible equity ratio equals shareholders' equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets.
(4) Tangible common equity ratio equals common shareholders' equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets.
Certain prior period amounts have been reclassified to conform to current period presentation.
Information for periods beginning
Bank of America Corporation and Subsidiaries Business Segment Results (Dollars in millions) Global Consumer and Small Three Months Ended Business Banking (1) December 31 Year Ended December 31 2008 2007 2008 2007 Total revenue, net of interest expense (2) $15,911 $12,621 $58,344 $47,855 Provision for credit losses (3) 7,584 4,287 26,841 12,920 Noninterest expense 7,145 5,572 24,937 20,349 Net income 835 1,899 4,234 9,362 Efficiency ratio (2) 44.91 % 44.15 % 42.74 % 42.52 % Return on average equity 4.13 11.23 5.78 14.81 Average - total loans and leases $364,114 $317,629 $350,264 $294,030 Average - total deposits 396,497 342,926 370,961 330,661 Deposits and Student Lending Total revenue, net of interest expense (2) $5,364 $4,843 $20,649 $18,851 Net income 1,753 1,536 6,210 5,713 Card Services (1) Total revenue, net of interest expense (2) 7,316 6,590 28,433 25,315 Net income (loss) (204) 498 521 3,590 Mortgage, Home Equity and Insurance Services Total revenue, net of interest expense (2) 3,231 1,188 9,262 3,689 Net income (loss) (714) (135) (2,497) 59 Global Corporate and Three Months Ended Investment Banking December 31 Year Ended December 31 2008 2007 2008 2007 Total revenue, net of interest expense (2) $(265) $(695) $13,440 $13,651 Provision for credit losses 1,415 274 3,080 658 Noninterest expense 2,229 3,453 10,381 12,198 Net income (loss) (2,442) (2,771) (14) 510 Efficiency ratio (2) n/m n/m 77.24 % 89.36 % Return on average equity (14.24)% (20.53)% (0.02) 1.12 Average - total loans and leases $343,379 $327,622 $337,352 $274,725 Average - total deposits 249,301 235,730 239,097 219,891 Business Lending Total revenue, net of interest expense (2) $2,226 $1,901 $7,823 $6,085 Net income 301 608 1,722 2,000 Capital Markets and Advisory Services Total revenue, net of interest expense (2) (4,639) (4,489) (3,018) 549 Net income (loss) (3,615) (3,782) (4,948) (3,385) Treasury Services Total revenue, net of interest expense (2) 1,916 1,890 7,784 7,104 Net income 756 488 2,732 2,136 Global Wealth and Three Months Ended Investment Management December 31 Year Ended December 31 2008 2007 2008 2007 Total revenue, net of interest expense (2) $1,984 $1,768 $7,785 $7,553 Provision for credit losses 152 34 664 14 Noninterest expense 1,068 1,297 4,904 4,480 Net income 511 310 1,416 1,960 Efficiency ratio (2) 53.77 % 73.34 % 62.99 % 59.31 % Return on average equity 17.32 10.85 12.11 19.83 Average - total loans and leases $88,874 $82,816 $87,591 $73,473 Average - total deposits 171,340 138,163 159,525 124,871 U.S. Trust (4) Total revenue, net of interest expense (2) $640 $700 $2,650 $2,320 Net income 121 124 460 470 Columbia Management Total revenue, net of interest expense (2) 88 20 391 1,076 Net income (loss) (64) (175) (459) 21 Premier Banking and Investments Total revenue, net of interest expense (2) 776 932 3,201 3,749 Net income 201 292 584 1,267 All Other (1) Three Months Ended December 31 Year Ended December 31 2008 2007 2008 2007 Total revenue, net of interest expense (2) $(1,650) $(240) $(5,593) $(477) Provision for credit losses (5) (616) (1,285) (3,760) (5,207) Noninterest expense 505 87 1,307 497 Net income (693) 830 (1,628) 3,150 Average - total loans and leases 145,196 140,052 135,671 133,926 Average - total deposits 75,003 64,806 61,561 41,759
(1) Global Consumer and Small Business Banking is presented on a managed basis, specifically Card Services, with a corresponding offset recorded in All Other.
(2) Fully taxable-equivalent (FTE) basis. FTE basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes.
(3) Represents provision for credit losses on held loans combined with realized credit losses associated with the securitized loan portfolio.
(4) In
(5) Represents provision for credit losses in All Other combined with the Global Consumer and Small Business Banking securitization offset.
Certain prior period amounts have been reclassified to conform to current period presentation.
Information for periods beginning
Bank of America Corporation and Subsidiaries Supplemental Financial Data (Dollars in millions) Fully taxable-equivalent Three Months Ended basis data December 31 Year Ended December 31 2008 2007 2008 2007 Net interest income $13,406 $9,815 $46,554 $36,190 Total revenue, net of interest expense 15,980 13,454 73,976 68,582 Net interest yield 3.31 % 2.61 % 2.98 % 2.60 % Efficiency ratio 68.51 77.36 56.14 54.71 Other Data December 31 2008 2007 Full-time equivalent employees 243,075 209,718 Number of banking centers - domestic 6,139 6,149 Number of branded ATMs - domestic 18,685 18,753
Certain prior period amounts have been reclassified to conform to current period presentation.
Information for periods beginning
Bank of America Corporation and Subsidiaries Reconciliation - Managed to GAAP (Dollars in millions)
The Corporation reports Global Consumer and Small Business Banking's
results, specifically Card Services, on a managed basis. This basis of
presentation excludes the Corporation's securitized mortgage and home equity
portfolios for which the Corporation retains servicing. Reporting on a managed
basis is consistent with the way that management evaluates the results of
Global Consumer and Small Business Banking. Managed basis assumes that
securitized loans were not sold and presents earnings on these loans in a
manner similar to the way loans that have not been sold (i.e., held loans) are
presented. Loan securitization is an alternative funding process that is used
by the Corporation to diversify funding sources. Loan securitization removes
loans from the Consolidated Balance Sheet through the sale of loans to an off-
balance sheet qualified special purpose entity which is excluded from the
Corporation's Consolidated Financial Statements in accordance with accounting
principles generally accepted in
The performance of the managed portfolio is important in understanding Global Consumer and Small Business Banking's and Card Services' results as it demonstrates the results of the entire portfolio serviced by the business. Securitized loans continue to be serviced by the business and are subject to the same underwriting standards and ongoing monitoring as held loans. In addition, retained excess servicing income is exposed to similar credit risk and repricing of interest rates as held loans. Global Consumer and Small Business Banking's managed income statement line items differ from a held basis reported as follows:
-- Managed net interest income includes Global Consumer and Small Business Banking's net interest income on held loans and interest income on the securitized loans less the internal funds transfer pricing allocation related to securitized loans.
-- Managed noninterest income includes Global Consumer and Small Business Banking's noninterest income on a held basis less the reclassification of certain components of card income (e.g., excess servicing income) to record managed net interest income and provision for credit losses. Noninterest income, both on a held and managed basis, also includes the impact of adjustments to the interest-only strip that are recorded in card income as management continues to manage this impact within Global Consumer and Small Business Banking.
-- Provision for credit losses represents the provision for credit losses on held loans combined with realized credit losses associated with the securitized loan portfolio.
Global Consumer and Small Business Banking Year Ended December 31, 2008 Managed Securitization Basis (1) Impact (2) Held Basis Net interest income (3) $33,851 $(8,701) $25,150 Noninterest income: Card income 10,057 2,250 12,307 Service charges 6,807 - 6,807 Mortgage banking income 4,422 - 4,422 Insurance premiums 1,968 (186) 1,782 All other income 1,239 (33) 1,206 Total noninterest income 24,493 2,031 26,524 Total revenue, net of interest expense 58,344 (6,670) 51,674 Provision for credit losses 26,841 (6,670) 20,171 Noninterest expense 24,937 - 24,937 Income before income taxes 6,566 - 6,566 Income tax expense (3) 2,332 - 2,332 Net income $4,234 $- $4,234 Average - total loans and leases $350,264 $(104,401) $245,863 All Other Year Ended December 31, 2008 Reported Securitization Basis (4) Offset (2) As Adjusted Net interest income (3) $(8,610) $8,701 $91 Noninterest income: Card income 2,164 (2,250) (86) Equity investment income 265 - 265 Gains on sales of debt securities 1,133 - 1,133 All other income (loss) (545) 219 (326) Total noninterest income 3,017 (2,031) 986 Total revenue, net of interest expense (5,593) 6,670 1,077 Provision for credit losses (3,760) 6,670 2,910 Merger and restructuring charges 935 - 935 All other noninterest expense 372 - 372 Income (loss) before income taxes (3,140) - (3,140) Income tax expense (benefit) (3) (1,512) - (1,512) Net income (loss) $(1,628) $- $(1,628) Average - total loans and leases $135,671 $104,401 $240,072 Bank of America Corporation and Subsidiaries Reconciliation - Managed to GAAP (Dollars in millions) Global Consumer and Small Business Banking Year Ended December 31, 2007 Managed Securitization Basis (1) Impact (2) Held Basis Net interest income (3) $28,712 $(8,027) $20,685 Noninterest income: Card income 10,194 3,356 13,550 Service charges 6,007 - 6,007 Mortgage banking income 1,332 - 1,332 Insurance premiums 912 (250) 662 All other income 698 (38) 660 Total noninterest income 19,143 3,068 22,211 Total revenue, net of interest expense 47,855 (4,959) 42,896 Provision for credit losses 12,920 (4,959) 7,961 Noninterest expense 20,349 - 20,349 Income before income taxes 14,586 - 14,586 Income tax expense (3) 5,224 - 5,224 Net income $9,362 $- $9,362 Average - total loans and leases $294,030 $(103,284) $190,746 All Other Year Ended December 31, 2007 Reported Securitization Basis (4) Offset (2) As Adjusted Net interest income (3) $(7,645) $8,027 $382 Noninterest income: Card income 2,817 (3,356) (539) Equity investment income 3,745 - 3,745 Gains on sales of debt securities 180 - 180 All other income (loss) 426 288 714 Total noninterest income 7,168 (3,068) 4,100 Total revenue, net of interest expense (477) 4,959 4,482 Provision for credit losses (5,207) 4,959 (248) Merger and restructuring charges 410 - 410 All other noninterest expense 87 - 87 Income (loss) before income taxes 4,233 - 4,233 Income tax expense (benefit) (3) 1,083 - 1,083 Net income (loss) $3,150 $- $3,150 Average - total loans and leases $133,926 $103,284 $237,210
(1) Provision for credit losses represents provision for credit losses on held loans combined with realized credit losses associated with the securitized loan portfolio.
(2) The securitization impact/offset on net interest income is on a funds transfer pricing methodology consistent with the way funding costs are allocated to the businesses.
(3) FTE basis
(4) Provision for credit losses represents provision for credit losses in All Other combined with the Global Consumer and Small Business Banking securitization offset.
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
Information for periods beginning
SOURCE Bank of America