Bristol-Myers Squibb 2 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS EXECUTIVE SUMMARY Bristol-Myers Squibb Company is a global specialty biopharmaceutical company whose mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases.
Refer to the Summary of Abbreviated Terms at the end of this 2016 Annual Report for terms used throughout the document.
In 2016, we received 19 approvals for new medicines and additional indications and formulations of currently marketed medicines in major markets (the U. S. , EU and Japan) as well as announced multiple regulatory milestone achievements for Opdivo.
We also encountered a significant setback in first-line lung cancer with the announcement of negative results of CheckMate-026 and we announced we would not pursue an accelerated regulatory pathway for the Opdivo+Yervoy combination therapy in first-line lung cancer.
We are pursuing a broad program in first-line lung cancer encompassing combinations of Opdivo+Yervoy, Opdivo and chemotherapy and Opdivo combined with Yervoy and chemotherapy.
We are also committed to investigating Opdivo in combination with Yervoy and other anti-cancer agents for other tumor types.
We continue to believe that the breadth and depth of our IO portfolio positions us well for the future.
We have 10 new IO compounds in clinical development and trials across 35 different tumor types.
In October 2016, we announced an evolution to our operating model which is discussed in "—Strategy" below.
Our revenues increased by 17% in 2016 as a result of higher Opdivo, Eliquis and Orencia product sales.
These impacts were partially offset by the expiration of our U. S.  commercialization rights to Abilify*, the transfer of Erbitux* rights in North America and increased competition for Reyataz, Sustiva and Baraclude in certain markets.
The increase in GAAP EPS from $0.93 in 2015 to $2.65 in 2016 was due to higher revenues, divestiture gains and royalties and lower R&D license and asset acquisition charges partially offset by higher Eliquis profit sharing and Opdivo related expenses.
The tax impact of specified items and earnings mix contributed to the change in the effective tax rate.
After adjusting for divestiture gains, R&D license and asset acquisition charges and other specified items, non-GAAP EPS increased from $2.01 in 2015 to $2.83 in 2016.
Highlights The following table summarizes our financial information:
## Table 0 ##
Our non-GAAP financial measures, including non-GAAP earnings and related EPS information, are adjusted to exclude specified items that represent certain costs, expenses, gains and losses and other items impacting the comparability of financial results.
For a detailed listing of all specified items and further information and reconciliations of non-GAAP financial measures refer to “—Non-GAAP Financial Measures. "
## Table 1 ##
(a) Includes the impact of RBC Bank (USA), which we acquired on March 2, 2012.
(b) Amounts include consolidated variable interest entities.
See Consolidated Balance Sheet in Item 8 of this Report for additional information.
(c) Amounts include assets and liabilities for which we have elected the fair value option.
See Consolidated Balance Sheet in Item 8 of this Report for additional information.
(d) Amounts include balances held with the Federal Reserve Bank of Cleveland of $11.7 billion, $3.5 billion, $.4 billion, $1.0 billion and $4.1 billion as of December 31, 2013, 2012, 2011, 2010 and 2009, respectively.
(e) Amounts include our equity interest in BlackRock.
(f) Represents the sum of interest-bearing money market deposits, interest-bearing demand deposits, and noninterest-bearing deposits.
(g) Includes long-term borrowings of $27.6 billion, $19.3 billion, $20.9 billion, $24.8 billion, and $26.3 billion for 2013, 2012, 2011, 2010 and 2009, respectively.
Borrowings which mature more than one year after December 31, 2013 are considered to be long-term.
(h) Amounts for 2013, 2012, 2011 and 2010 include cash and money market balances.
(i) Calculated as taxable-equivalent net interest income divided by average earning assets.
The interest income earned on certain earning assets is completely or partially exempt from federal income tax.
As such, these tax-exempt instruments typically yield lower returns than taxable investments.
To provide more meaningful comparisons of net interest margins for all earning assets, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments.
This adjustment is not permitted under accounting principles generally accepted in the United States of America (GAAP) on the Consolidated Income Statement.
The taxable-equivalent adjustments to net interest income for the years 2013, 2012, 2011, 2010 and 2009 were $168 million, $144 million, $104 million, $81 million and $65 million, respectively.
charge-off is based on PNC’s actual loss experience for each type of pool.
Since a pool may consist of first and second liens, the charge-off amounts for the pool are proportionate to the composition of first and second liens in the pool.
Our experience has been that the ratio of first to second lien loans has been consistent over time and is appropriately represented in our pools used for roll-rate calculations.
Generally, our variable-rate home equity lines of credit have either a seven or ten year draw period, followed by a 20-year amortization term.
During the draw period, we have home equity lines of credit where borrowers pay interest only and home equity lines of credit where borrowers pay principal and interest.
The risk associated with our home equity lines of credit end of period draw dates is considered in establishing our ALLL.
Based upon outstanding balances at December 31, 2013, the following table presents the periods when home equity lines of credit draw periods are scheduled to end.
Table 41: Home Equity Lines of Credit – Draw Period End Dates
## Table 2 ##
(a) Includes all home equity lines of credit that mature in 2014 or later, including those with borrowers where we have terminated borrowing privileges.
(b) Includes approximately $185 million, $193 million, $54 million, $63 million, $47 million and $561 million of home equity lines of credit with balloon payments, including those where we have terminated borrowing privileges, with draw periods scheduled to end in 2014, 2015, 2016, 2017, 2018 and 2019 and thereafter, respectively.
We view home equity lines of credit where borrowers are paying principal and interest under the draw period as less risky than those where the borrowers are paying interest only, as these borrowers have a demonstrated ability to make some level of principal and interest payments.
Based upon outstanding balances, and excluding purchased impaired loans, at December 31, 2013, for home equity lines of credit for which the borrower can no longer draw (e. g. , draw period has ended or borrowing privileges have been terminated), approximately 3.65% were 30-89 days past due and approximately 5.49% were 90 days or more past due.
Generally, when a borrower becomes 60 days past due, we terminate borrowing privileges and those privileges are not subsequently reinstated.
At that point, we continue our collection/recovery processes, which may include a loss mitigation loan modification resulting in a loan that is classified as a TDR.
See Note 5 Asset Quality in the Notes To Consolidated Financial Statements in Item 8 of this Report for additional information.
LOAN MODIFICATIONS AND TROUBLED DEBT RESTRUCTURINGS CONSUMER LOAN MODIFICATIONS We modify loans under government and PNC-developed programs based upon our commitment to help eligible homeowners and borrowers avoid foreclosure, where appropriate.
Initially, a borrower is evaluated for a modification under a government program.
If a borrower does not qualify under a government program, the borrower is then evaluated under a PNC program.
Our programs utilize both temporary and permanent modifications and typically reduce the interest rate, extend the term and/or defer principal.
Temporary and permanent modifications under programs involving a change to loan terms are generally classified as TDRs.
Further, certain payment plans and trial payment arrangements which do not include a contractual change to loan terms may be classified as TDRs.
Additional detail on TDRs is discussed below as well as in Note 5 Asset Quality in the Notes To Consolidated Financial Statements in Item 8 of this Report.
A temporary modification, with a term between 3 and 24 months, involves a change in original loan terms for a period of time and reverts to a calculated exit rate for the remaining term of the loan as of a specific date.
A permanent modification, with a term greater than 24 months, is a modification in which the terms of the original loan are changed.
Permanent modifications primarily include the government-created Home Affordable Modification Program (HAMP) or PNC-developed HAMP-like modification programs.
For home equity lines of credit, we will enter into a temporary modification when the borrower has indicated a temporary hardship and a willingness to bring current the delinquent loan balance.
Examples of this situation often include delinquency due to illness or death in the family or loss of employment.
Permanent modifications are entered into when it is confirmed that the borrower does not possess the income necessary to continue making loan payments at the current amount, but our expectation is that payments at lower amounts can be made.
We also monitor the success rates and delinquency status of our loan modification programs to assess their effectiveness in serving our customers’ needs while mitigating credit losses.
Table 42 provides the number of accounts and unpaid principal balance of modified consumer real estate related loans and Table 43 provides the number of accounts and unpaid principal balance of modified loans that were 60 days or more past due as of six months, nine months, twelve months and fifteen months after the modification date.
Management’s discussion and analysis 130 JPMorgan Chase & Co. /2013 Annual Report WHOLESALE CREDIT PORTFOLIO The wholesale credit environment remained favorable throughout 2013 driving an increase in commercial client activity.
Discipline in underwriting across all areas of lending continues to remain a key point of focus, consistent with evolving market conditions and the Firm’s risk management activities.
The wholesale portfolio is actively managed, in part by conducting ongoing, in-depth reviews of credit quality and of industry, product and client concentrations.
During the year, wholesale criticized assets and nonperforming assets decreased from higher levels experienced in 2012, including a reduction in nonaccrual loans by 39%.
As of December 31, 2013, wholesale exposure (primarily CIB, CB and AM) increased by $13.7 billion from December 31, 2012, primarily driven by increases of $11.4 billion in lending-related commitments and $8.4 billion in loans reflecting increased client activity primarily in CB and AM.
These increases were partially offset by a $9.2 billion decrease in derivative receivables.
Derivative receivables decreased predominantly due to reductions in interest rate derivatives driven by an increase in interest rates and reductions in commodity derivatives due to market movements.
The decreases were partially offset by an increase in equity derivatives driven by a rise in equity markets.
Wholesale credit portfolio
## Table 3 ##
(a) During 2013, certain loans that resulted from restructurings that were previously classified as performing were reclassified as nonperforming loans.
Prior periods were revised to conform with the current presentation.
(b) Receivables from customers and other primarily includes margin loans to prime and retail brokerage customers; these are classified in accrued interest and accounts receivable on the Consolidated Balance Sheets.
(c) Represents the net notional amount of protection purchased and sold through credit derivatives used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U. S.  GAAP.
Excludes the synthetic credit portfolio.
For additional information, see Credit derivatives on pages 137–138, and Note 6 on pages 220–233 of this Annual Report.
(d) Excludes assets acquired in loan satisfactions.
Credit ratings The cost and availability of financing are influenced by credit ratings.
Reductions in these ratings could have an adverse effect on the Firm’s access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm.
Additionally, the Firm’s funding requirements for VIEs and other third party commitments may be adversely affected by a decline in credit ratings.
For additional information on the impact of a credit ratings downgrade on the funding requirements for VIEs, and on derivatives and collateral agreements, see Special-purpose entities on page 77, and Credit risk, liquidity risk and credit-related contingent features in Note 6 on pages 220–233, of this Annual Report.
The credit ratings of the parent holding company and certain of the Firm’s significant operating subsidiaries as of December 31, 2013, were as follows.
## Table 4 ##
On June 11, 2013, S&P announced a reassessment of the government support assumptions reflected in its holding company ratings of eight systemically important financial institutions, including the Firm.
As a result of this reassessment, the outlook for the parent company was revised to negative from stable; the outlook for the Firm’s operating subsidiaries remained unchanged at stable.
On November 14, 2013, Moody’s downgraded the Firm and several other bank holding companies based on Moody’s reassessment of its assumptions relating to implicit government support for such companies.
Specifically, Moody’s downgraded the senior and subordinated debt ratings of JPMorgan Chase and Co. , and the subordinated debt rating of JPMorgan Chase Bank, N. A.  and upgraded the long-term issuer rating of JPMorgan Securities.
The parent company downgrade also resulted in Moody’s downgrade of the parent company’s short-term rating.
The rating actions did not have a material adverse impact on the Firm’s cost of funds or its ability to fund itself.
Additional downgrades of the Firm’s long-term ratings by one notch or two notches could result in a further downgrade of the Firm’s short-term ratings.
If this were to occur, the Firm believes its cost of funds could increase and access to certain funding markets could be reduced.
The nature and magnitude of the impact of further ratings downgrades depends on numerous contractual and behavioral factors (which the Firm believes are incorporated in its liquidity risk and stress testing metrics).
The Firm believes it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to further ratings downgrades.
JPMorgan Chase’s unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm’s credit ratings, financial ratios, earnings, or stock price.
Critical factors in maintaining high credit ratings include a stable and diverse earnings stream, strong capital ratios, strong credit quality and risk management controls, diverse funding sources, and disciplined liquidity monitoring procedures.
Rating agencies continue to evaluate economic and geopolitical trends, regulatory developments, rating uplift assumptions surrounding government support, future profitability, risk management practices, and legal expenses, all of which could lead to adverse ratings actions.
Although the Firm closely monitors and endeavors to manage factors influencing its credit ratings, there is no assurance that its credit ratings will not be further changed in the future.
Financial 62 JPMorgan Chase & Co. /2013 Annual Report FIVE-YEAR SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS
## Table 5 ##

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>Dollars in Millions, except per share data</td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td>Total Revenues</td><td>$19,427</td><td>$16,560</td><td>$15,879</td></tr><tr><td>Total Expenses</td><td>13,512</td><td>14,483</td><td>13,498</td></tr><tr><td>Earnings before Income Taxes</td><td>5,915</td><td>2,077</td><td>2,381</td></tr><tr><td>Provision for Income Taxes</td><td>1,408</td><td>446</td><td>352</td></tr><tr><td>Effective tax rate</td><td>23.8%</td><td>21.5%</td><td>14.8%</td></tr><tr><td>Net Earnings Attributable to BMS</td><td></td><td></td><td></td></tr><tr><td>GAAP</td><td>4,457</td><td>1,565</td><td>2,004</td></tr><tr><td>Non-GAAP</td><td>4,750</td><td>3,378</td><td>3,085</td></tr><tr><td>Diluted Earnings Per Share</td><td></td><td></td><td></td></tr><tr><td>GAAP</td><td>2.65</td><td>0.93</td><td>1.20</td></tr><tr><td>Non-GAAP</td><td>2.83</td><td>2.01</td><td>1.85</td></tr><tr><td>Cash, Cash Equivalents and Marketable Securities</td><td>9,069</td><td>8,930</td><td>11,843</td></tr></table>
<table><tr><td></td><td colspan="5">At or for the year ended December 31</td></tr><tr><td>Dollars in millions, except as noted</td><td>2013 (a)</td><td>2012 (a)</td><td>2011</td><td>2010</td><td>2009</td></tr><tr><td> BALANCESHEETHIGHLIGHTS</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Assets</td><td>$320,296</td><td>$305,107</td><td>$271,205</td><td>$264,284</td><td>$269,863</td></tr><tr><td>Loans (b) (c)</td><td>195,613</td><td>185,856</td><td>159,014</td><td>150,595</td><td>157,543</td></tr><tr><td>Allowance for loan and lease losses (b)</td><td>3,609</td><td>4,036</td><td>4,347</td><td>4,887</td><td>5,072</td></tr><tr><td>Interest-earning deposits with banks (b) (d)</td><td>12,135</td><td>3,984</td><td>1,169</td><td>1,610</td><td>4,488</td></tr><tr><td>Investment securities (b)</td><td>60,294</td><td>61,406</td><td>60,634</td><td>64,262</td><td>56,027</td></tr><tr><td>Loans held for sale (c)</td><td>2,255</td><td>3,693</td><td>2,936</td><td>3,492</td><td>2,539</td></tr><tr><td>Goodwill and other intangible assets</td><td>11,290</td><td>10,869</td><td>10,144</td><td>10,753</td><td>12,909</td></tr><tr><td>Equity investments (b) (e)</td><td>10,664</td><td>10,877</td><td>10,134</td><td>9,220</td><td>10,254</td></tr><tr><td>Noninterest-bearing deposits</td><td>70,306</td><td>69,980</td><td>59,048</td><td>50,019</td><td>44,384</td></tr><tr><td>Interest-bearing deposits</td><td>150,625</td><td>143,162</td><td>128,918</td><td>133,371</td><td>142,538</td></tr><tr><td>Total deposits</td><td>220,931</td><td>213,142</td><td>187,966</td><td>183,390</td><td>186,922</td></tr><tr><td>Transaction deposits (f)</td><td>186,391</td><td>176,705</td><td>147,637</td><td>134,654</td><td>126,244</td></tr><tr><td>Borrowed funds (b) (c) (g)</td><td>46,105</td><td>40,907</td><td>36,704</td><td>39,488</td><td>39,261</td></tr><tr><td>Total shareholders’ equity</td><td>42,408</td><td>39,003</td><td>34,053</td><td>30,242</td><td>29,942</td></tr><tr><td>Common shareholders’ equity</td><td>38,467</td><td>35,413</td><td>32,417</td><td>29,596</td><td>22,011</td></tr><tr><td> CLIENTASSETS(billions)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Discretionary assets under management</td><td>$127</td><td>$112</td><td>$107</td><td>$108</td><td>$103</td></tr><tr><td>Nondiscretionary assets under management</td><td>120</td><td>112</td><td>103</td><td>104</td><td>102</td></tr><tr><td>Total assets under administration</td><td>247</td><td>224</td><td>210</td><td>212</td><td>205</td></tr><tr><td>Brokerage account assets (h)</td><td>41</td><td>38</td><td>34</td><td>34</td><td>32</td></tr><tr><td>Total client assets</td><td>$288</td><td>$262</td><td>$244</td><td>$246</td><td>$237</td></tr><tr><td> SELECTEDRATIOS</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net interest margin (i)</td><td>3.57%</td><td>3.94%</td><td>3.92%</td><td>4.14%</td><td>3.82%</td></tr><tr><td>Noninterest income to total revenue</td><td>43</td><td>38</td><td>39</td><td>39</td><td>44</td></tr><tr><td>Efficiency</td><td>61</td><td>68</td><td>64</td><td>57</td><td>56</td></tr><tr><td>Return on</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Average common shareholders’ equity</td><td>10.88</td><td>8.31</td><td>9.56</td><td>10.88</td><td>9.78</td></tr><tr><td>Average assets</td><td>1.38</td><td>1.02</td><td>1.16</td><td>1.28</td><td>.87</td></tr><tr><td>Loans to deposits</td><td>89</td><td>87</td><td>85</td><td>82</td><td>84</td></tr><tr><td>Dividend payout</td><td>23.0</td><td>29.0</td><td>20.2</td><td>6.8</td><td>21.4</td></tr><tr><td>Basel I Tier 1 common</td><td>10.5</td><td>9.6</td><td>10.3</td><td>9.8</td><td>6.0</td></tr><tr><td>Basel I Tier 1 risk-based</td><td>12.4</td><td>11.6</td><td>12.6</td><td>12.1</td><td>11.4</td></tr><tr><td>Common shareholders’ equity to total assets</td><td>12.0</td><td>11.6</td><td>12.0</td><td>11.2</td><td>8.2</td></tr><tr><td>Average common shareholders’ equity to average assets</td><td>11.9</td><td>11.5</td><td>11.9</td><td>10.4</td><td>7.2</td></tr><tr><td> SELECTEDSTATISTICS</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Employees</td><td>54,433</td><td>56,285</td><td>51,891</td><td>50,769</td><td>55,820</td></tr><tr><td>Retail Banking branches</td><td>2,714</td><td>2,881</td><td>2,511</td><td>2,470</td><td>2,513</td></tr><tr><td>ATMs</td><td>7,445</td><td>7,282</td><td>6,806</td><td>6,673</td><td>6,473</td></tr><tr><td>Residential mortgage servicing portfolio – Serviced for Third Parties (in billions)</td><td>$114</td><td>$119</td><td>$118</td><td>$125</td><td>$145</td></tr><tr><td>Commercial mortgage servicing portfolio (in billions)</td><td>$308</td><td>$282</td><td>$267</td><td>$266</td><td>$287</td></tr></table>
<table><tr><td>In millions</td><td>Interest OnlyProduct</td><td>Principal andInterest Product</td></tr><tr><td>2014</td><td>$1,768</td><td>$450</td></tr><tr><td>2015</td><td>1,829</td><td>625</td></tr><tr><td>2016</td><td>1,521</td><td>485</td></tr><tr><td>2017</td><td>2,738</td><td>659</td></tr><tr><td>2018</td><td>1,206</td><td>894</td></tr><tr><td>2019 and thereafter</td><td>3,848</td><td>4,562</td></tr><tr><td>Total (a)(b)</td><td>$12,910</td><td>$7,675</td></tr></table>
<table><tr><td>December 31,</td><td>Credit exposure</td><td>Nonperforming<sup>(d)</sup></td></tr><tr><td>(in millions)</td><td>2013</td><td>2012</td><td>2013</td><td>2012</td></tr><tr><td>Loans retained</td><td>$308,263</td><td>$306,222</td><td>$821</td><td>$1,434</td></tr><tr><td>Loans held-for-sale</td><td>11,290</td><td>4,406</td><td>26</td><td>18</td></tr><tr><td>Loans at fair value<sup>(a)</sup></td><td>2,011</td><td>2,555</td><td>197</td><td>265</td></tr><tr><td>Loans – reported</td><td>321,564</td><td>313,183</td><td>1,044</td><td>1,717</td></tr><tr><td>Derivative receivables</td><td>65,759</td><td>74,983</td><td>415</td><td>239</td></tr><tr><td>Receivables from customers and other<sup>(b)</sup></td><td>26,744</td><td>23,648</td><td>—</td><td>—</td></tr><tr><td>Total wholesale credit-related assets</td><td>414,067</td><td>411,814</td><td>1,459</td><td>1,956</td></tr><tr><td>Lending-related commitments</td><td>446,232</td><td>434,814</td><td>206</td><td>355</td></tr><tr><td>Total wholesale credit exposure</td><td>$860,299</td><td>$846,628</td><td>$1,665</td><td>$2,311</td></tr><tr><td>Credit Portfolio Management derivatives notional, net<sup>(c)</sup></td><td>$-27,996</td><td>$-27,447</td><td>$-5</td><td>$-25</td></tr><tr><td>Liquid securities and other cash collateral held against derivatives</td><td>-14,435</td><td>-15,201</td><td>NA</td><td>NA</td></tr></table>
<table><tr><td></td><td colspan="3">JPMorgan Chase & Co.</td><td colspan="3">JPMorgan Chase Bank, N.A.Chase Bank USA, N.A.</td><td colspan="3">J.P. Morgan Securities LLC</td></tr><tr><td>December 31, 2013</td><td>Long-term issuer</td><td>Short-term issuer</td><td>Outlook</td><td>Long-term issuer</td><td>Short-term issuer</td><td>Outlook</td><td>Long-term issuer</td><td>Short-term issuer</td><td>Outlook</td></tr><tr><td>Moody’s Investor Services</td><td>A3</td><td>P-2</td><td>Stable</td><td>Aa3</td><td>P-1</td><td>Stable</td><td>Aa3</td><td>P-1</td><td>Stable</td></tr><tr><td>Standard & Poor’s</td><td>A</td><td>A-1</td><td>Negative</td><td>A+</td><td>A-1</td><td>Stable</td><td>A+</td><td>A-1</td><td>Stable</td></tr><tr><td>Fitch Ratings</td><td>A+</td><td>F1</td><td>Stable</td><td>A+</td><td>F1</td><td>Stable</td><td>A+</td><td>F1</td><td>Stable</td></tr></table>
<table><tr><td>(in millions, except per share, ratio and headcount data)</td><td>2013</td><td>2012</td><td>2011</td><td>2010</td><td>2009</td></tr><tr><td>Selected income statement data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total net revenue</td><td>$96,606</td><td>$97,031</td><td>$97,234</td><td>$102,694</td><td>$100,434</td></tr><tr><td>Total noninterest expense</td><td>70,467</td><td>64,729</td><td>62,911</td><td>61,196</td><td>52,352</td></tr><tr><td>Pre-provision profit</td><td>26,139</td><td>32,302</td><td>34,323</td><td>41,498</td><td>48,082</td></tr><tr><td>Provision for credit losses</td><td>225</td><td>3,385</td><td>7,574</td><td>16,639</td><td>32,015</td></tr><tr><td>Income before income tax expense and extraordinary gain</td><td>25,914</td><td>28,917</td><td>26,749</td><td>24,859</td><td>16,067</td></tr><tr><td>Income tax expense</td><td>7,991</td><td>7,633</td><td>7,773</td><td>7,489</td><td>4,415</td></tr><tr><td>Income before extraordinary gain</td><td>17,923</td><td>21,284</td><td>18,976</td><td>17,370</td><td>11,652</td></tr><tr><td>Extraordinary gain</td><td>—</td><td>—</td><td>—</td><td>—</td><td>76</td></tr><tr><td>Net income</td><td>$17,923</td><td>$21,284</td><td>$18,976</td><td>$17,370</td><td>$11,728</td></tr><tr><td>Per common share data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic earnings</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Income before extraordinary gain</td><td>$4.39</td><td>$5.22</td><td>$4.50</td><td>$3.98</td><td>$2.25</td></tr><tr><td>Net income</td><td>4.39</td><td>5.22</td><td>4.50</td><td>3.98</td><td>2.27</td></tr><tr><td>Diluted earnings</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Income before extraordinary gain</td><td>$4.35</td><td>$5.20</td><td>$4.48</td><td>$3.96</td><td>$2.24</td></tr><tr><td>Net income</td><td>4.35</td><td>5.20</td><td>4.48</td><td>3.96</td><td>2.26</td></tr><tr><td>Cash dividends declared per share</td><td>1.44</td><td>1.20</td><td>1.00</td><td>0.20</td><td>0.20</td></tr><tr><td>Book value per share</td><td>53.25</td><td>51.27</td><td>46.59</td><td>43.04</td><td>39.88</td></tr><tr><td>Tangible book value per share (“TBVS”)<sup>(a)</sup></td><td>40.81</td><td>38.75</td><td>33.69</td><td>30.18</td><td>27.09</td></tr><tr><td>Common shares outstanding</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Average: Basic</td><td>3,782.4</td><td>3,809.4</td><td>3,900.4</td><td>3,956.3</td><td>3,862.8</td></tr><tr><td>Diluted</td><td>3,814.9</td><td>3,822.2</td><td>3,920.3</td><td>3,976.9</td><td>3,879.7</td></tr><tr><td>Common shares at period-end</td><td>3,756.1</td><td>3,804.0</td><td>3,772.7</td><td>3,910.3</td><td>3,942.0</td></tr><tr><td>Share price<sup>(b)</sup></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>High</td><td>$58.55</td><td>$46.49</td><td>$48.36</td><td>$48.20</td><td>$47.47</td></tr><tr><td>Low</td><td>44.20</td><td>30.83</td><td>27.85</td><td>35.16</td><td>14.96</td></tr><tr><td>Close</td><td>58.48</td><td>43.97</td><td>33.25</td><td>42.42</td><td>41.67</td></tr><tr><td>Market capitalization</td><td>219,657</td><td>167,260</td><td>125,442</td><td>165,875</td><td>164,261</td></tr><tr><td>Selected ratios</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Return on common equity (“ROE”)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Income before extraordinary gain</td><td>9%</td><td>11%</td><td>11%</td><td>10%</td><td>6%</td></tr><tr><td>Net income</td><td>9</td><td>11</td><td>11</td><td>10</td><td>6</td></tr><tr><td>Return on tangible common equity (“ROTCE”)<sup>(a)</sup></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Income before extraordinary gain</td><td>11</td><td>15</td><td>15</td><td>15</td><td>10</td></tr><tr><td>Net income</td><td>11</td><td>15</td><td>15</td><td>15</td><td>10</td></tr><tr><td>Return on assets (“ROA”)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Income before extraordinary gain</td><td>0.75</td><td>0.94</td><td>0.86</td><td>0.85</td><td>0.58</td></tr><tr><td>Net income</td><td>0.75</td><td>0.94</td><td>0.86</td><td>0.85</td><td>0.58</td></tr><tr><td>Return on risk-weighted assets<sup>(c)(d)</sup></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Income before extraordinary gain</td><td>1.28</td><td>1.65</td><td>1.58</td><td>1.50</td><td>0.95</td></tr><tr><td>Net income</td><td>1.28</td><td>1.65</td><td>1.58</td><td>1.50</td><td>0.95</td></tr><tr><td>Overhead ratio</td><td>73</td><td>67</td><td>65</td><td>60</td><td>52</td></tr><tr><td>Loans-to-deposits ratio</td><td>57</td><td>61</td><td>64</td><td>74</td><td>68</td></tr><tr><td>High Quality Liquid Assets (“HQLA“) (in billions)<sup>(e)</sup></td><td>$522</td><td>$341</td><td>NA</td><td>NA</td><td>NA</td></tr><tr><td>Tier 1 capital ratio<sup>(d)</sup></td><td>11.9%</td><td>12.6%</td><td>12.3%</td><td>12.1%</td><td>11.1%</td></tr><tr><td>Total capital ratio<sup>(d)</sup></td><td>14.4</td><td>15.3</td><td>15.4</td><td>15.5</td><td>14.8</td></tr><tr><td>Tier 1 leverage ratio</td><td>7.1</td><td>7.1</td><td>6.8</td><td>7.0</td><td>6.9</td></tr><tr><td>Tier 1 common capital ratio<sup>(d)(f)</sup></td><td>10.7</td><td>11.0</td><td>10.1</td><td>9.8</td><td>8.8</td></tr><tr><td>Selected balance sheet data (period-end)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Trading assets</td><td>$374,664</td><td>$450,028</td><td>$443,963</td><td>$489,892</td><td>$411,128</td></tr><tr><td>Securities<sup>(g)</sup></td><td>354,003</td><td>371,152</td><td>364,793</td><td>316,336</td><td>360,390</td></tr><tr><td>Loans</td><td>738,418</td><td>733,796</td><td>723,720</td><td>692,927</td><td>633,458</td></tr><tr><td>Total assets</td><td>2,415,689</td><td>2,359,141</td><td>2,265,792</td><td>2,117,605</td><td>2,031,989</td></tr><tr><td>Deposits</td><td>1,287,765</td><td>1,193,593</td><td>1,127,806</td><td>930,369</td><td>938,367</td></tr><tr><td>Long-term debt<sup>(h)</sup></td><td>267,889</td><td>249,024</td><td>256,775</td><td>270,653</td><td>289,165</td></tr><tr><td>Common stockholders’ equity</td><td>200,020</td><td>195,011</td><td>175,773</td><td>168,306</td><td>157,213</td></tr><tr><td>Total stockholders’ equity</td><td>211,178</td><td>204,069</td><td>183,573</td><td>176,106</td><td>165,365</td></tr><tr><td>Headcount<sup>(i)</sup></td><td>251,196</td><td>258,753</td><td>259,940</td><td>239,515</td><td>221,200</td></tr><tr><td>Credit quality metrics</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Allowance for credit losses</td><td>$16,969</td><td>$22,604</td><td>$28,282</td><td>$32,983</td><td>$32,541</td></tr><tr><td>Allowance for loan losses to total retained loans</td><td>2.25%</td><td>3.02%</td><td>3.84%</td><td>4.71%</td><td>5.04%</td></tr><tr><td>Allowance for loan losses to retained loans excluding purchased credit-impaired loans<sup>(j)</sup></td><td>1.80</td><td>2.43</td><td>3.35</td><td>4.46</td><td>5.51</td></tr><tr><td>Nonperforming assets</td><td>$9,706</td><td>$11,906</td><td>$11,315</td><td>$16,682</td><td>$19,948</td></tr><tr><td>Net charge-offs</td><td>5,802</td><td>9,063</td><td>12,237</td><td>23,673</td><td>22,965</td></tr><tr><td>Net charge-off rate</td><td>0.81%</td><td>1.26%</td><td>1.78%</td><td>3.39%</td><td>3.42%</td></tr></table>

Question: What's the average of Receivables from customers and other of Credit exposure 2013, and Income before income tax expense and extraordinary gain of 2012 ?
Answer: 27830.5
Reasoning program: add(26744.0,28917.0), divide(#0,const_2)