Exhibit 99.2

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Supplemental Information

Third Quarter 2006

 

 

This information is preliminary and based on company data available at the time of the presentation. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America does not undertake an obligation to, and disclaims any duty to, correct or update any of the information provided. Any forward-looking statements in this information are subject to the forward-looking language contained in Bank of America’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC’s website (www.sec.gov) or at Bank of America’s website (www.bankofamerica.com). Bank of America’s future financial performance is subject to risks and uncertainties as described in its SEC filings.


Bank of America Corporation

Consolidated Financial Highlights

 

(Dollars in millions, except per share information; shares in thousands)

 

 
    

Year-to-Date

September 30

   

Third
Quarter

2006

   

Second
Quarter

2006

   

First
Quarter

2006

   

Fourth
Quarter

2005

   

Third
Quarter

2005

 
     2006     2005            

Income statement

                   

Net interest income

   $ 25,992     $ 22,878     $ 8,586     $ 8,630     $ 8,776     $ 7,859     $ 7,735  

Noninterest income

     28,566       19,403       10,067       9,598       8,901       5,951       6,416  

Total revenue

     54,558       42,281       18,653       18,228       17,677       13,810       14,151  

Provision for credit losses

     3,440       2,614       1,165       1,005       1,270       1,400       1,159  

Gains (losses) on sales of debt securities

     (464 )     1,013       (469 )     (9 )     14       71       29  

Noninterest expense

     26,504       21,361       8,863       8,717       8,924       7,320       7,285  

Income tax expense

     8,273       6,428       2,740       3,022       2,511       1,587       1,895  

Net income

     15,877       12,891       5,416       5,475       4,986       3,574       3,841  

Diluted earnings per common share

     3.44       3.16       1.18       1.19       1.07       0.88       0.95  

Average diluted common shares issued and outstanding

     4,614,599       4,072,991       4,570,558       4,601,169       4,666,405       4,053,859       4,054,659  

Dividends paid per common share

   $ 1.56     $ 1.40     $ 0.56     $ 0.50     $ 0.50     $ 0.50     $ 0.50  
 

Performance ratios

                       

Return on average assets

     1.46 %     1.37 %       1.43 %     1.51 %     1.43 %     1.09 %     1.18 %

Return on average common shareholders’ equity

     16.44       17.29       16.64       17.26       15.44       14.21       15.09  
                                                           
 

At period end

                       

Book value per share of common stock

   $ 29.52     $ 25.28     $ 29.52     $ 28.17     $ 28.19     $ 25.32     $ 25.28  

Market price per share of common stock:

                   

Closing price

   $ 53.57     $ 42.10     $ 53.57     $ 48.10     $ 45.54     $ 46.15     $ 42.10  

High closing price for the period

     53.57       47.08       53.57       50.47       47.08       46.99       45.98  

Low closing price for the period

     43.09       41.60       47.98       45.48       43.09       41.57       41.60  

Market capitalization

     240,966       168,950       240,966       217,794       208,633       184,586       168,950  
 

Number of banking centers - domestic

     5,722       5,844       5,722       5,779       5,786       5,873       5,844  

Number of ATMs - domestic

     16,846       16,714       16,846       16,984       16,716       16,785       16,714  

Full-time equivalent employees

     200,220       177,539       200,220       201,898       202,503       176,934       177,539  

Certain prior period amounts have been reclassified to conform to current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

1


Bank of America Corporation

Supplemental Financial Data

 

(Dollars in millions)

 

Fully taxable-equivalent basis data

 

 

     Year-to-Date
September 30
   

Third
Quarter

2006

   

Second
Quarter

2006

   

First
Quarter

2006

   

Fourth
Quarter

2005

   

Third
Quarter

2005

 
     2006     2005            

Net interest income

   $ 26,860     $ 23,467     $ 8,894     $ 8,926     $ 9,040     $ 8,102     $ 7,933  

Total revenue

     55,426       42,870       18,961       18,524       17,941       14,053       14,349  

Net interest yield

     2.85 %     2.85 %     2.73 %     2.85 %     2.98 %     2.82 %     2.78 %

Efficiency ratio

     47.82       49.83       46.75       47.06       49.74       52.09       50.76  

Reconciliation to GAAP financial measures

Supplemental financial data presented on an operating basis is a basis of presentation not defined by accounting principles generally accepted in the United States (GAAP) that excludes merger and restructuring charges. We believe that the exclusion of merger and restructuring charges, which represent events outside our normal operations, provides a meaningful period-to-period comparison and is more reflective of normalized operations.

Shareholder value added (SVA) is a key measure of performance not defined by GAAP that is used in managing our growth strategy orientation and strengthening our focus on generating long-term growth and shareholder value. SVA is used to evaluate the Corporation’s use of equity (i.e., capital) at the individual unit level and is an integral component in the analytics for resource allocation. Using SVA as a performance measure places specific focus on whether incremental investments generate returns in excess of the costs of capital associated with those investments. Each business segment has a goal for growth in SVA reflecting the individual segment’s business and customer strategy.

Other companies may define or calculate supplemental financial data differently. See the tables below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the quarters ended September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 2005, and the nine months ended September 30, 2006 and 2005.

 

Reconciliation of net income to operating earnings        
      Year-to-Date
September 30
   

Third
Quarter

2006

   

Second
Quarter

2006

   

First
Quarter

2006

   

Fourth
Quarter

2005

   

Third
Quarter

2005

 
      2006     2005            

Net income

   $ 15,877     $ 12,891     $ 5,416     $ 5,475     $ 4,986     $ 3,574     $ 3,841  

Merger and restructuring charges

     561       353       269       194       98       59       120  

Related income tax benefit

     (208 )     (118 )     (100 )     (71 )     (37 )     (19 )     (40 )
                                                          

Operating earnings

   $ 16,230     $ 13,126     $ 5,585     $ 5,598     $ 5,047     $ 3,614     $ 3,921  
                                                          
Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity  
 

Average common shareholders’ equity

   $ 129,020     $ 99,561     $ 129,098     $ 127,102     $ 130,881     $ 99,677     $ 100,974  

Average goodwill

     (66,132 )     (45,341 )     (66,077 )     (66,226 )     (66,094 )     (45,305 )     (45,297 )
                                                          

Average tangible common shareholders’ equity

   $ 62,888     $ 54,220     $ 63,021     $ 60,876     $ 64,787     $ 54,372     $ 55,677  
                                                          
Operating basis  
 

Diluted earnings per common share

   $ 3.52     $ 3.22     $ 1.22     $ 1.22     $ 1.08     $ 0.89     $ 0.97  

Return on average assets

     1.49 %     1.40 %     1.48 %     1.54 %     1.45 %     1.10 %     1.20 %

Return on average common shareholders’ equity

     16.81       17.61       17.16       17.65       15.63       14.36       15.39  

Return on average tangible common shareholders’ equity

     34.48       32.34       35.16       36.85       31.57       26.33       27.91  

Efficiency ratio (1)

     46.81       49.00       45.33       46.01       49.19       51.66       49.92  
Reconciliation of net income to shareholder value added  
 

Net income

   $ 15,877     $ 12,891     $ 5,416     $ 5,475     $ 4,986     $ 3,574     $ 3,841  

Amortization of intangibles

     1,322       613       441       441       440       196       201  

Merger and restructuring charges, net of tax benefit

     353       235       169       123       61       40       80  

Capital charge

     (10,615 )     (8,191 )     (3,580 )     (3,485 )     (3,550 )     (2,764 )     (2,799 )
                                                          

Shareholder value added

   $ 6,937     $ 5,548     $ 2,446     $ 2,554     $ 1,937     $ 1,046     $ 1,323  
                                                          

(1) Fully taxable-equivalent basis

Certain prior period amounts have been reclassified to conform to current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

2


Bank of America Corporation

 

Consolidated Statement of Income

 

(Dollars in millions, except per share information; shares in thousands)

 

 

   

Year-to-Date

September 30

       Third
Quarter
    Second
Quarter
    First
Quarter
  Fourth
Quarter
    Third
Quarter
 
    2006     2005        2006     2006     2006   2005     2005  

Interest income

                 

Interest and fees on loans and leases

  $ 35,569     $ 25,307       $ 12,638     $ 11,804     $ 11,127   $ 9,536     $ 8,933  

Interest and dividends on securities

    9,215       8,122         3,080       3,121       3,014     2,815       2,793  

Federal funds sold and securities purchased under agreements to resell

    5,755       3,535         2,146       1,900       1,709     1,477       1,382  

Trading account assets

    5,031       4,158         1,856       1,627       1,548     1,585       1,550  

Other interest income

    2,524       1,486         952       845       727     605       547  
                                                       

Total interest income

    58,094       42,608         20,672       19,297       18,125     16,018       15,205  
                                                       

Interest expense

                 

Deposits

    10,491       7,016         3,976       3,508       3,007     2,476       2,471  

Short-term borrowings

    14,618       7,760         5,467       4,842       4,309     3,855       3,190  

Trading account liabilities

    1,840       1,745         727       596       517     619       707  

Long-term debt

    5,153       3,209         1,916       1,721       1,516     1,209       1,102  
                                                       

Total interest expense

    32,102       19,730         12,086       10,667       9,349     8,159       7,470  
                                                       

Net interest income

    25,992       22,878         8,586       8,630       8,776     7,859       7,735  
                                                       

Noninterest income

                 

Service charges

    6,125       5,777         2,147       2,077       1,901     1,927       2,080  

Investment and brokerage services

    3,334       3,122         1,085       1,146       1,103     1,062       1,060  

Mortgage banking income

    415       590         189       89       137     215       180  

Investment banking income

    1,623       1,319         510       612       501     537       522  

Equity investment gains

    2,122       1,691         705       699       718     521       713  

Card income

    10,566       4,246         3,473       3,662       3,431     1,507       1,520  

Trading account profits

    2,706       1,464         731       915       1,060     299       557  

Other income

    1,675       1,194         1,227       398       50     (117 )     (216 )
                                                       

Total noninterest income

    28,566       19,403         10,067       9,598       8,901     5,951       6,416  
                                                       

Total revenue

    54,558       42,281         18,653       18,228       17,677     13,810       14,151  
 

Provision for credit losses

    3,440       2,614         1,165       1,005       1,270     1,400       1,159  
 

Gains (losses) on sales of debt securities

    (464 )     1,013         (469 )     (9 )     14     71       29  
 

Noninterest expense

                 

Personnel

    13,767       11,209         4,474       4,480       4,813     3,845       3,837  

Occupancy

    2,100       1,889         696       703       701     699       638  

Equipment

    978       894         318       316       344     305       300  

Marketing

    1,713       990         587       551       575     265       307  

Professional fees

    710       647         259       233       218     283       254  

Amortization of intangibles

    1,322       613         441       441       440     196       201  

Data processing

    1,245       1,093         426       409       410     394       361  

Telecommunications

    685       608         237       228       220     219       206  

Other general operating

    3,423       3,065         1,156       1,162       1,105     1,055       1,061  

Merger and restructuring charges

    561       353         269       194       98     59       120  
                                                       

Total noninterest expense

    26,504       21,361         8,863       8,717       8,924     7,320       7,285  
                                                       

Income before income taxes

    24,150       19,319         8,156       8,497       7,497     5,161       5,736  

Income tax expense

    8,273       6,428         2,740       3,022       2,511     1,587       1,895  
                                                       

Net income

  $ 15,877     $ 12,891       $ 5,416     $ 5,475     $ 4,986   $ 3,574     $ 3,841  
                                                       

Net income available to common shareholders

  $ 15,868     $ 12,877       $ 5,416     $ 5,471     $ 4,981   $ 3,570     $ 3,836  
                                                       

Per common share information

                 

Earnings

  $ 3.49     $ 3.21       $ 1.20     $ 1.21     $ 1.08   $ 0.89     $ 0.96  
                                                       

Diluted earnings

  $ 3.44     $ 3.16       $ 1.18     $ 1.19     $ 1.07   $ 0.88     $ 0.95  
                                                       

Dividends paid

  $ 1.56     $ 1.40       $ 0.56     $ 0.50     $ 0.50   $ 0.50     $ 0.50  
                                                       

Average common shares issued and outstanding

    4,547,693       4,012,924         4,499,704       4,534,627       4,609,481     3,996,024       4,000,573  
                                                       

Average diluted common shares issued and outstanding

    4,614,599       4,072,991         4,570,558       4,601,169       4,666,405     4,053,859       4,054,659  
                                                       

Certain prior period amounts have been reclassified to conform to current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

3


Bank of America Corporation

 

Consolidated Balance Sheet                         
     September 30
2006
   

June 30

2006

    September 30
2005
 
(Dollars in millions)       

Assets

      

Cash and cash equivalents

   $ 31,239     $ 34,545     $ 32,771  

Time deposits placed and other short-term investments

     13,006       14,652       11,236  

Federal funds sold and securities purchased under agreements to resell

     134,595       136,645       135,409  

Trading account assets

     141,211       134,708       121,256  

Derivative assets

     23,121       25,526       26,005  

Securities:

      

Available-for-sale

     195,095       235,785       227,349  

Held-to-maturity, at cost

     57       61       136  
                        

Total securities

     195,152       235,846       227,485  
                        

Loans and leases

     669,149       667,953       554,612  

Allowance for loan and lease losses

     (8,872 )     (9,080 )     (8,326 )
                        

Loans and leases, net of allowance

     660,277       658,873       546,286  
                        

Premises and equipment, net

     9,205       9,334       7,659  

Mortgage servicing rights (includes $2,932 and $3,083 measured at fair value at September 30 and June 30, 2006)

     3,091       3,231       2,763  

Goodwill

     65,818       66,095       45,298  

Intangible assets

     9,758       10,338       3,356  

Other assets

     162,738       115,400       92,743  
                        

Total assets

   $ 1,449,211     $ 1,445,193     $ 1,252,267  
                        

Liabilities

      

Deposits in domestic offices:

      

Noninterest-bearing

   $ 169,540     $ 177,209     $ 174,990  

Interest-bearing

     409,718       410,940       390,973  

Deposits in foreign offices:

      

Noninterest-bearing

     4,371       6,765       6,750  

Interest-bearing

     82,276       81,951       53,764  
                        

Total deposits

     665,905       676,865       626,477  
                        

Federal funds purchased and securities sold under agreements to repurchase

     258,090       259,108       217,053  

Trading account liabilities

     64,936       57,486       51,244  

Derivative liabilities

     15,394       18,633       15,711  

Commercial paper and other short-term borrowings

     135,056       136,886       107,655  

Accrued expenses and other liabilities (includes $388, $395 and $390 of reserve for unfunded lending commitments)

     38,494       39,318       33,250  

Long-term debt

     137,739       129,056       99,149  
                        

Total liabilities

     1,315,614       1,317,352       1,150,539  
                        

Shareholders’ equity

      

Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 40,739; 1,090,189 and 1,090,189 shares

     826       271       271  

Common stock and additional paid-in capital, $0.01 par value; authorized - 7,500,000,000 shares; issued and outstanding - 4,498,145,315; 4,527,940,943 and 4,013,063,444 shares

     63,929       65,822       42,548  

Retained earnings

     76,271       73,393       65,980  

Accumulated other comprehensive income (loss)

     (6,867 )     (10,973 )     (6,580 )

Other

     (562 )     (672 )     (491 )
                        

Total shareholders’ equity

     133,597       127,841       101,728  
                        

Total liabilities and shareholders’ equity

   $ 1,449,211     $ 1,445,193     $ 1,252,267  
                        

Certain prior period amounts have been reclassified to conform to current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

4


Bank of America Corporation

Capital Management

 

(Dollars in millions)

 

                                        
     Third
Quarter
2006 (1)
    Second
Quarter
2006
    First
Quarter
2006
    Fourth
Quarter
2005
    Third
Quarter
2005
 

Risk-based Capital:

          

Tier 1 capital

   $ 88,085     $ 84,978     $ 83,174     $ 74,375     $ 73,572  

Total capital

     119,074       114,738       111,422       99,901       99,531  

Risk-weighted assets

     1,039,283       1,019,828       984,190       901,469       889,643  

Tier 1 capital ratio

     8.48 %     8.33 %     8.45 %     8.25 %     8.27 %

Total capital ratio

     11.46       11.25       11.32       11.08       11.19  

Tangible common equity ratio (2)

     4.16       3.74       4.02       4.24       4.39  

Tier 1 leverage ratio

     6.16       6.13       6.18       5.91       5.90  

(1) Preliminary data on risk-based capital
(2) Tangible common equity ratio equals common shareholders’ equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets.

Share Repurchase Program

 

 
59.5 million common shares were repurchased in the third quarter of 2006 as a part of an ongoing share repurchase program.

123.2 million shares remain outstanding under the 2006 authorized program.

29.7 million shares were issued in the third quarter of 2006.

LOGO

 


* Preliminary data on risk-based capital

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data avilable at the time of the presentation.

 

5


Bank of America Corporation

Core Net Interest Income - Managed Basis

 

(Dollars in millions)

 

 

    Nine Months Ended
September 30
        

Third
Quarter

2006

   

Second
Quarter

2006

   

First
Quarter

2006

   

Fourth
Quarter

2005

   

Third
Quarter

2005

 
    2006     2005                 

Net Interest Income

                 

As reported (1)

  $ 26,860     $ 23,467         $ 8,894     $ 8,926     $ 9,040     $ 8,102     $ 7,933  

Impact of market-based net interest income (2)

    (1,165 )     (1,527 )         (375 )     (379 )     (411 )     (421 )     (453 )
                                                           

Core net interest income

    25,695       21,940           8,519       8,547       8,629       7,681       7,480  

Impact of securitizations

    5,195       313           1,760       1,710       1,725       11       52  
                                                           

Core net interest income -managed basis

  $ 30,890     $ 22,253         $ 10,279     $ 10,257     $ 10,354     $ 7,692     $ 7,532  
                                                           

Average Earning Assets

                 

As reported

  $ 1,258,927     $ 1,100,685         $ 1,302,366     $ 1,253,895     $ 1,219,611     $ 1,145,550     $ 1,137,629  

Impact of market-based earning assets (3)

    (356,831 )     (319,856 )         (375,960 )     (357,549 )     (336,552 )     (329,299 )     (335,043 )
                                                           

Core average earning assets

    902,096       780,829           926,406       896,346       883,059       816,251       802,586  

Impact of securitizations

    97,265       9,905           98,722       96,776       96,268       6,447       7,827  
                                                           

Core average earning
assets -managed basis

  $ 999,361     $ 790,734         $ 1,025,128     $ 993,122     $ 979,327     $ 822,698     $ 810,413  
                                                           

Net Interest Yield Contribution

                 

As reported (1)

    2.85 %     2.85 %         2.73 %     2.85 %     2.98 %     2.82 %     2.78 %

Impact of market-based activities

    0.95       0.90           0.94       0.97       0.95       0.93       0.94  
                                                           

Core net interest yield on earning assets

    3.80       3.75           3.67       3.82       3.93       3.75       3.72  

Impact of securitizations

    0.32       0.01           0.33       0.31       0.32       (0.02 )     (0.01 )
                                                           

Core net interest yield on earning
assets - managed basis

    4.12 %     3.76 %         4.00 %     4.13 %     4.25 %     3.73 %     3.71 %
                                                           

(1) Fully taxable-equivalent basis
(2) Market-based Net Interest Income represents Net Interest Income from the Capital Markets and Advisory Services business within Global Corporate and Investment Banking.
(3) Market-based earning assets represents earning assets from the Capital Markets and Advisory Services business within Global Corporate and Investment Banking.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

6


Bank of America Corporation

Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis

 

(Dollars in millions)

 

 

     Third Quarter 2006     Second Quarter 2006     Third Quarter 2005  
     Average
Balance
   Interest
Income/
Expense
   Yield/
Rate
    Average
Balance
   Interest
Income/
Expense
   Yield/
Rate
    Average
Balance
   Interest
Income/
Expense
   Yield/
Rate
 

Earning assets

                        

Time deposits placed and other short-term investments

   $ 15,629    $ 173    4.39 %   $ 16,691    $ 168    4.05 %   $ 14,498    $ 125    3.43 %

Federal funds sold and securities purchased under agreements to resell

     173,381      2,146    4.94       179,104      1,900    4.25       176,650      1,382    3.12  

Trading account assets

     146,817      1,928    5.24       133,556      1,712    5.13       142,287      1,578    4.42  

Securities

     236,033      3,136    5.31       236,967      3,162    5.34       225,952      2,820    4.99  

Loans and leases (1):

                        

Residential mortgage

     222,889      3,151    5.65       197,228      2,731    5.54       171,012      2,298    5.37  

Credit card - domestic

     62,508      2,189    13.90       64,980      2,168    13.38       55,271      1,651    11.85  

Credit card - foreign

     9,455      286    12.02       8,305      269    12.97       —        —      —    

Home equity lines

     70,075      1,351    7.65       67,182      1,231    7.35       58,046      910    6.22  

Direct/Indirect consumer

     61,361      1,193    7.74       56,715      1,057    7.46       47,900      702    5.81  

Other consumer (2)

     11,075      298    10.66       10,804      294    10.95       6,715      170    10.05  
                                                

Total consumer

     437,363      8,468    7.71       405,214      7,750    7.66       338,944      5,731    6.73  
                                                

Commercial - domestic

     153,007      2,805    7.28       148,445      2,695    7.28       127,044      2,095    6.54  

Commercial real estate

     37,471      724    7.67       36,749      680    7.41       34,663      542    6.20  

Commercial lease financing

     20,875      232    4.46       20,896      262    5.01       20,402      239    4.69  

Commercial - foreign

     24,761      454    7.27       24,345      456    7.52       18,444      349    7.51  
                                                

Total commercial

     236,114      4,215    7.09       230,435      4,093    7.12       200,553      3,225    6.38  
                                                

Total loans and leases

     673,477      12,683    7.49       635,649      11,843    7.47       539,497      8,956    6.60  
                                                

Other earning assets

     57,029      914    6.38       51,928      808    6.24       38,745      542    5.57  
                                                

Total earning assets (3)

     1,302,366      20,980    6.41       1,253,895      19,593    6.26       1,137,629      15,403    5.39  
                                                            

Cash and cash equivalents

     33,495           35,070           32,969      

Other assets, less allowance for loan and lease losses

     162,126           167,039           124,156      
                                    

Total assets

   $ 1,497,987         $ 1,456,004         $ 1,294,754      
                                    

Interest-bearing liabilities

                        

Domestic interest-bearing deposits:

                        

Savings

   $ 34,268    $ 69    0.81 %   $ 35,681    $ 76    0.84 %   $ 35,853    $ 56    0.62 %

NOW and money market deposit accounts

     212,690      1,053    1.96       221,198      996    1.81       224,341      743    1.31  

Consumer CDs and IRAs

     147,607      1,658    4.46       141,408      1,393    3.95       130,975      1,094    3.31  

Negotiable CDs, public funds and other time deposits

     14,105      150    4.19       13,005      123    3.80       4,414      47    4.23  
                                                

Total domestic interest-bearing deposits

     408,670      2,930    2.84       411,292      2,588    2.52       395,583      1,940    1.95  
                                                

Foreign interest-bearing deposits:

                        

Banks located in foreign countries

     38,588      562    5.78       32,456      489    6.05       19,707      292    5.89  

Governments and official institutions

     12,801      156    4.83       13,428      155    4.63       7,317      62    3.37  

Time, savings and other

     40,444      328    3.22       37,178      276    2.98       32,024      177    2.19  
                                                

Total foreign interest-bearing deposits

     91,833      1,046    4.52       83,062      920    4.44       59,048      531    3.57  
                                                

Total interest-bearing deposits

     500,503      3,976    3.15       494,354      3,508    2.85       454,631      2,471    2.16  
                                                

Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings

     429,882      5,467    5.05       408,734      4,842    4.75       339,980      3,190    3.72  

Trading account liabilities

     69,462      727    4.15       61,263      596    3.90       68,132      707    4.12  

Long-term debt

     136,769      1,916    5.60       125,620      1,721    5.48       98,326      1,102    4.48  
                                                

Total interest-bearing liabilities (3)

     1,136,616      12,086    4.23       1,089,971      10,667    3.92       961,069      7,470    3.09  
                                                            

Noninterest-bearing sources:

                        

Noninterest-bearing deposits

     176,348           180,442           178,140      

Other liabilities

     55,761           58,218           54,299      

Shareholders’ equity

     129,262           127,373           101,246      
                                    

Total liabilities and shareholders’ equity

   $ 1,497,987         $ 1,456,004         $ 1,294,754      
                                    

Net interest spread

         2.18           2.34           2.30  

Impact of noninterest-bearing sources

         0.55           0.51           0.48  
                                    

Net interest income/yield on earning assets (4)

      $ 8,894    2.73 %      $ 8,926    2.85 %      $ 7,933    2.78 %
                                                

(1) Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis.
(2) Includes consumer finance of $2.9 billion and $3.0 billion in the third and second quarters of 2006, and $3.1 billion in the third quarter of 2005, and foreign consumer of $8.1 billion and $7.8 billion in the third and second quarters of 2006, and $3.5 billion in the third quarter of 2005.
(3) Interest income includes the impact of interest rate risk management contracts, which increased (decreased) interest income on the underlying assets $(128) million and $(54) million in the third and second quarters of 2006, and $86 million in the third quarter of 2005. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest expense on the underlying liabilities $(48) million and $87 million in the third and second quarters of 2006, and $274 million in the third quarter of 2005.
(4) Interest income (FTE basis) for the three months ended June 30, 2006, does not include the cumulative tax charge resulting from a change in tax legislation relating to extraterritorial tax income and foreign sales corporation regimes. The FTE impact to Net Interest Income and net interest yield on earning assets of this retroactive tax adjustment is a reduction of $270 million and 9 bps, respectively, for the three months ended June 30, 2006. Management has excluded this one-time impact to provide a more comparative basis of presentation for Net Interest Income and net interest yield on earning assets on a FTE basis. The impact on any given future period is not expected to be material.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

7


Bank of America Corporation

Quarterly Average Balances and Interest Rates -Fully Taxable-equivalent Basis -Isolating Derivative Hedge Income/Expense (1) 

 

(Dollars in millions)

 

                                                           
    Third Quarter 2006     Second Quarter 2006     Third Quarter 2005  
    Average
Balance
  Interest
Income/
Expense
    Yield/
Rate
    Average
Balance
  Interest
Income/
Expense
    Yield/
Rate
    Average
Balance
  Interest
Income/
Expense
    Yield/
Rate
 

Earning assets

                 

Time deposits placed and other short-term investments (2)

  $ 15,629   $ 201     5.11 %   $ 16,691   $ 181     4.36 %   $ 14,498   $ 126     3.46 %

Federal funds sold and securities purchased under agreements to resell (2)

    173,381     2,239     5.15       179,104     2,014     4.50       176,650     1,457     3.29  

Trading account assets

    146,817     1,928     5.24       133,556     1,712     5.13       142,287     1,578     4.42  

Securities (2)

    236,033     3,137     5.31       236,967     3,164     5.34       225,952     2,823     4.99  

Loans and leases (3):

                 

Residential mortgage (2)

    222,889     3,151     5.65       197,228     2,731     5.54       171,012     2,300     5.37  

Credit card - domestic

    62,508     2,189     13.90       64,980     2,168     13.38       55,271     1,651     11.85  

Credit card - foreign

    9,455     286     12.02       8,305     269     12.97       —       —       —    

Home equity lines

    70,075     1,351     7.65       67,182     1,231     7.35       58,046     910     6.22  

Direct/Indirect consumer

    61,361     1,193     7.74       56,715     1,057     7.46       47,900     702     5.81  

Other consumer (4)

    11,075     298     10.66       10,804     294     10.95       6,715     170     10.05  
                                               

Total consumer

    437,363     8,468     7.71       405,214     7,750     7.66       338,944     5,733     6.73  
                                               

Commercial - domestic (2)

    153,007     2,827     7.33       148,445     2,619     7.08       127,044     1,898     5.93  

Commercial real estate

    37,471     724     7.67       36,749     680     7.41       34,663     542     6.20  

Commercial lease financing

    20,875     232     4.46       20,896     262     5.01       20,402     239     4.69  

Commercial - foreign (2)

    24,761     447     7.17       24,345     455     7.50       18,444     349     7.50  
                                               

Total commercial

    236,114     4,230     7.11       230,435     4,016     6.99       200,553     3,028     5.99  
                                               

Total loans and leases

    673,477     12,698     7.50       635,649     11,766     7.42       539,497     8,761     6.45  
                                               

Other earning assets (2)

    57,029     905     6.31       51,928     810     6.25       38,745     572     5.87  
                                               

Total earning assets - excluding hedge impact

    1,302,366     21,108     6.45       1,253,895     19,647     6.28       1,137,629     15,317     5.36  
                                               

Net derivative income (expense) on assets

      (128 )         (54 )         86    
                                               

Total earning assets - including hedge impact

    1,302,366     20,980     6.41       1,253,895     19,593     6.26       1,137,629     15,403     5.39  
                                                           

Cash and cash equivalents

    33,495         35,070         32,969    

Other assets, less allowance for loan and lease losses

    162,126         167,039         124,156    
                             

Total assets

  $ 1,497,987       $ 1,456,004       $ 1,294,754    
                             

Interest-bearing liabilities

                 

Domestic interest-bearing deposits:

                 

Savings

  $ 34,268   $ 69     0.81 %   $ 35,681   $ 76     0.84 %   $ 35,853   $ 56     0.62 %

NOW and money market deposit accounts (2)

    212,690     1,048     1.95       221,198     995     1.80       224,341     742     1.31  

Consumer CDs and IRAs (2)

    147,607     1,435     3.86       141,408     1,230     3.49       130,975     889     2.69  

Negotiable CDs, public funds and other time deposits (2)

    14,105     148     4.14       13,005     121     3.74       4,414     34     3.02  
                                               

Total domestic interest-bearing deposits

    408,670     2,700     2.62       411,292     2,422     2.36       395,583     1,721     1.73  
                                               

Foreign interest-bearing deposits:

                 

Banks located in foreign countries (2)

    38,588     577     5.93       32,456     476     5.88       19,707     259     5.21  

Governments and official institutions

    12,801     156     4.83       13,428     155     4.63       7,317     62     3.37  

Time, savings and other

    40,444     328     3.22       37,178     276     2.98       32,024     177     2.19  
                                               

Total foreign interest-bearing deposits

    91,833     1,061     4.58       83,062     907     4.38       59,048     498     3.35  
                                               

Total interest-bearing deposits

    500,503     3,761     2.98       494,354     3,329     2.70       454,631     2,219     1.94  
                                               

Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings (2)

    429,882     5,855     5.41       408,734     5,021     4.93       339,980     3,084     3.60  

Trading account liabilities

    69,462     727     4.15       61,263     596     3.90       68,132     707     4.12  

Long-term debt (2)

    136,769     1,791     5.24       125,620     1,634     5.20       98,326     1,186     4.83  
                                               

Total interest-bearing liabilities - excluding hedge impact

    1,136,616     12,134     4.24       1,089,971     10,580     3.89       961,069     7,196     2.98  
                                               

Net derivative (income) expense on liabilities

      (48 )         87           274    
                                   

Total interest-bearing liabilities - including hedge impact

    1,136,616     12,086     4.23       1,089,971     10,667     3.92       961,069     7,470     3.09  
                                                           

Noninterest-bearing sources:

                 

Noninterest-bearing deposits

    176,348         180,442         178,140    

Other liabilities

    55,761         58,218         54,299    

Shareholders’ equity

    129,262         127,373         101,246    
                             

Total liabilities and shareholders’ equity

  $ 1,497,987       $ 1,456,004       $ 1,294,754    
                             

Net interest spread

      2.21         2.39         2.39  

Impact of noninterest-bearing sources

      0.54         0.51         0.46  
                             

Net interest income/yield on earning assets - excluding hedge impact

    $ 8,974     2.75 %     $ 9,067     2.90 %     $ 8,121     2.85 %
                                               

Net impact of derivative hedge income (expense)

      (80 )   (0.02 )       (141 )   (0.05 )       (188 )   (0.07 )
                                               

Net interest income/yield on earning assets (5)

    $ 8,894     2.73 %     $ 8,926     2.85 %     $ 7,933     2.78 %
                                               

(1) This table presents a non-GAAP financial measure. The impact of interest rate risk management derivatives is shown separately. Interest income and interest expense amounts, and the yields and rates have been adjusted. Management believes this presentation is useful to investors because it adjusts for the impact of our hedging decisions and provides a better understanding of our hedging activities. The impact of interest rate risk management derivatives is not material to the average balances presented above.
(2) Interest income excludes the impact of interest rate risk management contracts, which increased (decreased) interest income on time deposits placed and other short-term investments $(28) million, federal funds sold and securities purchased under agreements to resell $(93) million, securities $(1) million, commercial-domestic $(22) million, commercial-foreign $7 million, and other earning assets $9 million in the third quarter of 2006. Interest expense excludes the impact of interest rate risk management contracts which increased (decreased) interest expense on NOW and money market deposit accounts $5 million, consumer CDs and IRAs $223 million, negotiable CDs, public funds and other time deposits $2 million, banks located in foreign countries $(15) million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $(388) million, and long-term debt $125 million in the third quarter of 2006. Interest income excludes the impact of interest rate risk management contracts, which increased (decreased) interest income on time deposits placed and other short-term investments $(13) million, federal funds sold and securities purchased under agreements to resell $(114) million, securities $(2) million, commercial-domestic $76 million, commercial-foreign $1 million, and other earning assets $(2) million in the second quarter of 2006. Interest expense excludes the impact of interest rate risk management contracts which increased (decreased) interest expense on NOW and money market deposit accounts $1 million, consumer CDs and IRAs $163 million, negotiable CDs, public funds and other time deposits $2 million, banks located in foreign countries $13 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $(179) million, and long-term debt $87 million in the second quarter of 2006. Interest income excludes the impact of interest rate risk management contracts, which increased (decreased) interest income on time deposits placed and other short-term investments $(1) million, federal funds sold and securities purchased under agreements to resell $(75) million, securities $(3) million, residential mortgage $(2) million, commercial-domestic $197 million, and other earning assets $(30) million in the third quarter of 2005. Interest expense excludes the impact of interest rate risk management contracts which increased (decreased) interest expense on NOW and money market deposit accounts $1 million, consumer CDs and IRAs $205 million, negotiable CDs, public funds and other time deposits $13 million, banks located in foreign countries $33 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $106 million, and long-term debt $(84) million in the third quarter of 2005.
(3) Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis.
(4) Includes consumer finance of $2.9 billion and $3.0 billion in the third and second quarters of 2006, and $3.1 billion in the third quarter of 2005, and foreign consumer of $8.1 billion and $7.8 billion in the third and second quarters of 2006, and $3.5 billion in the third quarter of 2005.
(5) Interest income (FTE basis) for the three months ended June 30, 2006, does not include the cumulative tax charge resulting from a change in tax legislation relating to extraterritorial tax income and foreign sales corporation regimes. The FTE impact to Net Interest Income and net interest yield on earning assets of this retroactive tax adjustment is a reduction of $270 million and 9 bps, respectively, for the three months ended June 30, 2006. Management has excluded this one-time impact to provide a more comparative basis of presentation for Net Interest Income and net interest yield on earning assets on a FTE basis. The impact on any given future period is not expected to be material.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

8


Bank of America Corporation

Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis

 

(Dollars in millions)

 

 

      Nine Months Ended September 30  
     2006     2005  
     Average
Balance
   Interest
Income/
Expense
   Yield/
Rate
    Average
Balance
   Interest
Income/
Expense
   Yield/
Rate
 

Earning assets

                

Time deposits placed and other short-term investments

   $ 15,560    $ 480    4.12 %   $ 14,175    $ 339    3.20 %

Federal funds sold and securities purchased under agreements to resell

     175,727      5,755    4.37       170,219      3,535    2.77  

Trading account assets

     137,961      5,263    5.09       131,500      4,235    4.30  

Securities

     235,874      9,341    5.28       219,314      8,205    4.99  

Loans and leases (1):

                

Residential mortgage

     201,777      8,406    5.56       172,090      6,997    5.43  

Credit card - domestic

     65,198      6,537    13.40       53,033      4,505    11.36  

Credit card - foreign

     8,725      842    12.91       —        —      —    

Home equity lines

     67,173      3,694    7.35       54,845      2,401    5.85  

Direct/Indirect consumer

     57,724      3,236    7.49       44,240      1,886    5.70  

Other consumer (2)

     10,748      864    10.73       6,995      485    9.24  
                                

Total consumer

     411,345      23,579    7.66       331,203      16,274    6.56  
                                

Commercial - domestic

     148,746      7,990    7.18       124,937      5,987    6.41  

Commercial real estate

     36,968      2,036    7.36       33,727      1,449    5.75  

Commercial lease financing

     20,762      741    4.76       20,529      751    4.88  

Commercial - foreign

     24,088      1,337    7.42       17,935      913    6.81  
                                

Total commercial

     230,564      12,104    7.02       197,128      9,100    6.17  
                                

Total loans and leases

     641,909      35,683    7.43       528,331      25,374    6.42  
                                

Other earning assets

     51,896      2,440    6.28       37,146      1,509    5.43  
                                

Total earning assets (3)

     1,258,927      58,962    6.25       1,100,685      43,197    5.24  
                                        

Cash and cash equivalents

     34,469           33,033      

Other assets, less allowance for loan and lease losses

     163,691           124,323      
                        

Total assets

   $ 1,457,087         $ 1,258,041      
                        

Interest-bearing liabilities

                

Domestic interest-bearing deposits:

                

Savings

   $ 35,162    $ 221    0.84 %   $ 36,961    $ 143    0.52 %

NOW and money market deposit accounts

     220,443      2,957    1.79       228,936      2,118    1.24  

Consumer CDs and IRAs

     141,407      4,228    4.00       125,755      3,063    3.26  

Negotiable CDs, public funds and other time deposits

     11,907      343    3.84       7,463      223    4.00  
                                

Total domestic interest-bearing deposits

     408,919      7,749    2.53       399,115      5,547    1.86  
                                

Foreign interest-bearing deposits:

                

Banks located in foreign countries

     33,751      1,475    5.84       22,437      846    5.04  

Governments and official institutions

     12,152      418    4.60       7,363      164    2.99  

Time, savings and other

     37,606      849    3.02       31,261      459    1.96  
                                

Total foreign interest-bearing deposits

     83,509      2,742    4.39       61,061      1,469    3.22  
                                

Total interest-bearing deposits

     492,428      10,491    2.85       460,176      7,016    2.04  
                                

Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings

     412,948      14,618    4.73       313,692      7,760    3.31  

Trading account liabilities

     61,126      1,840    4.03       57,962      1,745    4.03  

Long-term debt

     126,541      5,153    5.43       97,072      3,209    4.41  
                                

Total interest-bearing liabilities (3)

     1,093,043      32,102    3.92       928,902      19,730    2.84  
                                        

Noninterest-bearing sources:

                

Noninterest-bearing deposits

     178,124           173,438      

Other liabilities

     56,664           55,869      

Shareholders’ equity

     129,256           99,832      
                        

Total liabilities and shareholders’ equity

   $ 1,457,087         $ 1,258,041      
                        

Net interest spread

         2.33           2.40  

Impact of noninterest-bearing sources

         0.52           0.45  
                        

Net interest income/yield on earning assets (4)

      $ 26,860    2.85 %      $ 23,467    2.85 %
                                

(1) Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis.
(2) Includes consumer finance of $3.0 billion and $3.2 billion and foreign consumer of $7.8 billion and $3.5 billion for the nine months ended September 30, 2006 and 2005.
(3) Interest income includes the impact of interest rate risk management contracts, which increased (decreased) interest income on the underlying assets $(174) million and $675 million in the nine months ended September 30, 2006 and 2005. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities $175 million and $1.1 billion in the nine months ended September 30, 2006 and 2005.
(4) Interest income (FTE basis) for the nine months ended September 30, 2006 does not include the cumulative tax charge resulting from a change in tax legislation relating to extraterritorial tax income and foreign sales corporation regimes. The FTE impact to Net Interest Income and net interest yield on earning assets of this retroactive tax adjustment is a reduction of $270 million and 3 bps, respectively, for the nine months ended September 30, 2006. Management has excluded this one-time impact to provide a more comparative basis of presentation for Net Interest Income and net interest yield on earning assets on a FTE basis. The impact on any given future period is not expected to be material.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

9


Bank of America Corporation

Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis - Isolating Derivative Hedge Income/Expense (1) 

 

(Dollars in millions)

 

 

      Nine Months Ended September 30  
     2006     2005  
     Average
Balance
   Interest
Income/
Expense
    Yield/
Rate
    Average
Balance
   Interest
Income/
Expense
    Yield/
Rate
 

Earning assets

              

Time deposits placed and other short-term investments (2)

   $ 15,560    $ 524     4.51 %   $ 14,175    $ 341     3.23 %

Federal funds sold and securities purchased under agreements to resell (2)

     175,727      6,053     4.60       170,219      3,576     2.81  

Trading account assets

     137,961      5,263     5.09       131,500      4,235     4.30  

Securities (2)

     235,874      9,344     5.28       219,314      8,215     4.99  

Loans and leases (3):

              

Residential mortgage (2)

     201,777      8,406     5.56       172,090      6,977     5.41  

Credit card - domestic

     65,198      6,537     13.40       53,033      4,505     11.36  

Credit card - foreign

     8,725      842     12.91       —        —       —    

Home equity lines

     67,173      3,694     7.35       54,845      2,401     5.85  

Direct/Indirect consumer

     57,724      3,236     7.49       44,240      1,886     5.70  

Other consumer (4)

     10,748      864     10.73       6,995      485     9.24  
                                  

Total consumer

     411,345      23,579     7.66       331,203      16,254     6.56  
                                  

Commercial - domestic (2)

     148,746      7,825     7.03       124,937      5,157     5.52  

Commercial real estate

     36,968      2,036     7.36       33,727      1,449     5.75  

Commercial lease financing

     20,762      741     4.76       20,529      751     4.88  

Commercial - foreign (2)

     24,088      1,328     7.37       17,935      911     6.79  
                                  

Total commercial

     230,564      11,930     6.92       197,128      8,268     5.61  
                                  

Total loans and leases

     641,909      35,509     7.39       528,331      24,522     6.20  
                                  

Other earning assets (2)

     51,896      2,443     6.29       37,146      1,633     5.87  
                                  

Total earning assets - excluding hedge impact

     1,258,927      59,136     6.27       1,100,685      42,522     5.16  
                                  

Net derivative income (expense) on assets

        (174 )          675    
                                  

Total earning assets - including hedge impact

     1,258,927      58,962     6.25       1,100,685      43,197     5.24  
                                          

Cash and cash equivalents

     34,469          33,033     

Other assets, less allowance for loan and lease losses

     163,691          124,323     
                      

Total assets

   $ 1,457,087        $ 1,258,041     
                      

Interest-bearing liabilities

              

Domestic interest-bearing deposits:

              

Savings

   $ 35,162    $ 221     0.84 %   $ 36,961    $ 143     0.52 %

NOW and money market deposit accounts (2)

     220,443      2,949     1.79       228,936      2,099     1.23  

Consumer CDs and IRAs (2)

     141,407      3,687     3.49       125,755      2,324     2.47  

Negotiable CDs, public funds and other time deposits (2)

     11,907      337     3.78       7,463      162     2.90  
                                  

Total domestic interest-bearing deposits

     408,919      7,194     2.35       399,115      4,728     1.58  
                                  

Foreign interest-bearing deposits:

              

Banks located in foreign countries (2)

     33,751      1,456     5.77       22,437      729     4.34  

Governments and official institutions

     12,152      418     4.60       7,363      164     2.99  

Time, savings and other

     37,606      849     3.02       31,261      459     1.96  
                                  

Total foreign interest-bearing deposits

     83,509      2,723     4.36       61,061      1,352     2.96  
                                  

Total interest-bearing deposits

     492,428      9,917     2.69       460,176      6,080     1.77  
                                  

Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings (2)

     412,948      15,251     4.94       313,692      7,400     3.15  

Trading account liabilities

     61,126      1,840     4.03       57,962      1,745     4.03  

Long-term debt (2)

     126,541      4,919     5.18       97,072      3,424     4.70  
                                  

Total interest-bearing liabilities - excluding hedge impact

     1,093,043      31,927     3.90       928,902      18,649     2.68  
                                  

Net derivative expense on liabilities

        175            1,081    
                                  

Total interest-bearing liabilities - including hedge impact

     1,093,043      32,102     3.92       928,902      19,730     2.84  
                                          

Noninterest-bearing sources:

              

Noninterest-bearing deposits

     178,124          173,438     

Other liabilities

     56,664          55,869     

Shareholders’ equity

     129,256          99,832     
                      

Total liabilities and shareholders’ equity

   $ 1,457,087        $ 1,258,041     
                      

Net interest spread

        2.37          2.48  

Impact of noninterest-bearing sources

        0.52          0.41  
                      

Net interest income/yield on earning assets - excluding hedge impact

      $ 27,209     2.89 %      $ 23,873     2.89 %
                                  

Net impact of derivative hedge income (expense)

        (349 )   (0.04 )        (406 )   (0.04 )
                                  

Net interest income/yield on earning assets (5)

      $ 26,860     2.85 %      $ 23,467     2.85 %
                                  

(1) This table presents a non-GAAP financial measure. The impact of interest rate risk management derivatives is shown separately. Interest income and interest expense amounts, and the yields and rates have been adjusted. Management believes this presentation is useful to investors because it adjusts for the impact of our hedging decisions and provides a better understanding of our hedging activities. The impact of interest rate risk management derivatives is not material to the average balances presented above.
(2) Interest income excludes the impact of interest rate risk management contracts, which increased (decreased) interest income on time deposits placed and other short-term investments $(44) million, federal funds sold and securities purchased under agreements to resell $(298) million, securities $(3) million, commercial-domestic $165 million, commercial-foreign $9 million, and other earning assets $(3) million for the nine months ended September 30, 2006. Interest expense excludes the impact of interest rate risk management contracts which increased (decreased) interest expense on NOW and money market deposit accounts $8 million, consumer CDs and IRAs $541 million, negotiable CDs, public funds and other time deposits $6 million, banks located in foreign countries $19 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $(633) million, and long-term debt $234 million for the nine months ended September 30, 2006. Interest income excludes the impact of interest rate risk management contracts, which increased (decreased) interest income on time deposits placed and other short-term investments $(2) million, federal funds sold and securities purchased under agreements to resell $(41) million, securities $(10) million, residential mortgages $20 million, commercial-domestic $830 million, commercial-foreign $2 million, and other earning assets $(124) million for the nine months ended September 30, 2005. Interest expense excludes the impact of interest rate risk management contracts which increased (decreased) interest expense on NOW and money market deposit accounts $19 million, consumer CDs and IRAs $739 million, negotiable CDs, public funds and other time deposits $61 million, banks located in foreign countries $117 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $360 million, and long-term debt $(215) million for the nine months ended September 30, 2005.
(3) Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis.
(4) Includes consumer finance of $3.0 billion and $3.2 billions and foreign consumer of $7.8 and $3.5 billion for the nine months ended September 30, 2006 and 2005.
(5) Interest income (FTE basis) for the nine months ended September 30, 2006 does not include the cumulative tax charge resulting from a change in tax legislation relating to extraterritorial tax income and foreign sales corporation regimes. The FTE impact to Net Interest Income and net interest yield on earning assets of this retroactive tax adjustment is a reduction of $270 million and 3 bps, respectively, for the nine months ended September 30, 2006. Management has excluded this one-time impact to provide a more comparative basis of presentation for Net Interest Income and net interest yield on earning assets on a FTE basis. The impact on any given future period is not expected to be material.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

10


Bank of America Corporation

Business Segment View

 

 
Net Income

Third Quarter 2006

LOGO

Revenue*

Third Quarter 2006

LOGO

 


* Fully taxable-equivalent basis

This information is preliminary and based on company data available at the time of the presentation.

 

11


Bank of America Corporation

Global Consumer and Small Business Banking Segment Results (1)

 

(Dollars in millions; except as noted)  
     Year-to-Date
September 30
    Third
Quarter
    Second
Quarter
    First
Quarter
    Fourth
Quarter
    Third
Quarter
 
     2006     2005     2006     2006     2006     2005     2005  

Net interest income (2)

   $ 15,788     $ 12,555     $ 5,243     $ 5,199     $ 5,346     $ 4,343     $ 4,238  

Noninterest income

                

Service charges

     3,949       3,734       1,410       1,349       1,190       1,261       1,386  

Mortgage banking income

     630       741       215       210       205       271       230  

Card income

     9,983       3,760       3,262       3,462       3,259       1,325       1,344  

All other income

     712       238       313       259       140       95       68  
                                                        

Total noninterest income

     15,274       8,473       5,200       5,280       4,794       2,952       3,028  
                                                        

Total revenue (2)

     31,062       21,028       10,443       10,479       10,140       7,295       7,266  
                                                        

Provision for credit losses

     3,420       2,973       1,144       1,029       1,247       1,299       1,107  

Gains (losses) on sales of debt securities

     (1 )     (2 )     —         —         (1 )     (1 )     (1 )

Noninterest expense

     13,957       9,839       4,730       4,542       4,685       3,286       3,255  
                                                        

Income before income taxes (2)

     13,684       8,214       4,569       4,908       4,207       2,709       2,903  

Income tax expense

     5,040       2,956       1,680       1,801       1,559       965       1,061  
                                                        

Net income

   $ 8,644     $ 5,258     $ 2,889     $ 3,107     $ 2,648     $ 1,744     $ 1,842  
                                                        

Shareholder value added

   $ 4,546     $ 3,297     $ 1,542     $ 1,753     $ 1,251     $ 1,004     $ 1,177  

Net interest yield (2)

     6.40 %     5.61 %       6.33 %       6.31 %     6.58 %     5.78 %     5.61 %

Return on average equity

     18.16       24.29       18.42       19.71       16.41       21.99       25.23  

Efficiency ratio (2)

     44.93       46.79       45.31       43.33       46.21       45.03       44.80  
 

Balance Sheet

                

Average

                

Total loans and leases

   $ 189,378     $ 142,267     $ 193,845     $ 187,607     $ 186,604     $ 149,251     $ 145,726  

Total earning assets (3)

     329,612       299,244       328,861       330,559       329,421       297,894       299,770  

Total assets (3)

     392,256       326,490       390,895       393,179       392,715       325,511       326,869  

Total deposits

     331,546       305,924       330,368       333,999       330,269       306,616       310,530  

Allocated equity

     63,628       28,946       62,239       63,243       65,435       31,464       28,968  
 

Period End

                

Total loans and leases

   $ 195,728     $ 147,714     $ 195,728     $ 189,214     $ 183,836     $ 151,657     $ 147,714  

Total earning assets (3)

     331,734       299,378       331,734       328,607       338,576       302,619       299,378  

Total assets (3)

     394,920       326,926       394,920       393,991       401,126       331,259       326,926  

Total deposits

     330,789       313,059       330,789       336,841       340,463       306,101       313,059  
 

Period End (in billions)

                

Mortgage servicing portfolio

   $ 323.3     $ 288.5     $ 323.3     $ 313.0     $ 302.4     $ 296.8     $ 288.5  

(1) Global Consumer and Small Business Banking has four primary businesses: Deposits, Card Services, Mortgage, and Home Equity. In addition, ALM/Other includes the results of ALM activities and other consumer-related businesses (e.g., insurance).
(2) Fully taxable-equivalent basis
(3) Total earning assets and Total Assets include asset allocations to match liabilities (i.e., deposits).

 

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

12


Bank of America Corporation

Global Consumer and Small Business Banking Business Results - GAAP (Purchase View)

 

(Dollars in millions)

 

     Three Months Ended September 30, 2006  
     Total     Deposits (1)     Card
Services (2)
    Mortgage     Home
Equity
    ALM/
Other
 

Net interest income (3)

   $ 5,243     $ 2,463     $ 2,224     $ 150     $ 351     $ 55  

Noninterest income

                 

Service charges

     1,410       1,410       —         —         —         —    

Mortgage banking income

     215       —         —         192       23       —    

Card income

     3,262       501       2,761       —         —         —    

All other income

     313       —         345       12       —         (44 )
                                                

Total noninterest income

     5,200       1,911       3,106       204       23       (44 )
                                                

Total revenue (3)

     10,443       4,374       5,330       354       374       11  
                                                

Provision for credit losses

     1,144       51       1,032       6       11       44  

Gains (losses) on sales of debt securities

     —         —         —         —         —         —    

Noninterest expense

     4,730       2,267       1,956       253       169       85  
                                                

Income before income taxes (3) 

     4,569       2,056       2,342       95       194       (118 )

Income tax expense

     1,680       756       862       35       71       (44 )
                                                

Net income

   $ 2,889     $ 1,300     $ 1,480     $ 60     $ 123     $ (74 )
                                                
                 

Shareholder value added

   $ 1,542     $ 966     $ 540     $ 6     $ 80     $ (50 )

Net interest yield (3) 

     6.33 %       2.93 %     8.92 %     1.79 %     2.40 %     n/m  

Return on average equity

     18.42       33.96       13.20       12.21       31.44       n/m  

Efficiency ratio (3) 

     45.31       51.85       36.68       71.72       45.16       n/m  

Period end - total assets (4) 

   $ 394,920     $ 345,940     $ 138,161     $ 38,206     $ 59,700       n/m  
              
              
     Three Months Ended September 30, 2005  
     Total     Deposits (1)     Card
Services (2)
    Mortgage     Home
Equity
    ALM/
Other
 

Net interest income (3)

   $ 4,238     $ 2,182     $ 1,306     $ 194     $ 333     $ 223  

Noninterest income

                 

Service charges

     1,386       1,386       —         —         —         —    

Mortgage banking income

     230       —         —         209       21       —    

Card income

     1,344       404       940       —         —         —    

All other income

     68       —         3       4       —         61  
                                                

Total noninterest income

     3,028       1,790       943       213       21       61  
                                                

Total revenue (3)

     7,266       3,972       2,249       407       354       284  
                                                

Provision for credit losses

     1,107       38       1,010       8       9       42  

Gains (losses) on sales of debt securities

     (1 )     —         —         —         —         (1 )

Noninterest expense

     3,255       2,026       732       252       159       86  
                                                

Income before income taxes (3) 

     2,903       1,908       507       147       186       155  

Income tax expense

     1,061       698       185       54       69       55  
                                                

Net income

   $ 1,842     $ 1,210     $ 322     $ 93     $ 117     $ 100  
                                                

Shareholder value added

   $ 1,177     $ 879     $ 58     $ 45     $ 86     $ 109  

Net interest yield (3) 

     5.61 %       2.77 %     9.00 %     2.00 %     2.71 %     n/m  

Return on average equity

     25.23       32.10       11.14       21.04       40.55       n/m  

Efficiency ratio (3) 

     44.80       51.03       32.53       61.94       44.77       n/m  

Period end - total assets (4) 

   $ 326,926     $ 327,975     $ 63,055     $ 44,606     $ 49,653       n/m  

(1) Reflects Premier Banking and Investments cumulative migration which decreased average deposits $49.2 billion and $41.5 billion for the three months ended September 30, 2006 and 2005.
(2) Card Services presented on a held view
(3) Fully taxable-equivalent basis
(4) Total Assets include asset allocations to match liabilities (i.e., deposits).

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

13


Bank of America Corporation

Global Consumer and Small Business Banking Business Results - GAAP (Purchase View)

 

(Dollars in millions)  
     Nine Months Ended September 30, 2006  
     Total     Deposits (1)     Card
Services (2)
    Mortgage     Home
Equity
    ALM/
Other
 

Net interest income (3)

   $ 15,788     $ 7,279     $ 6,535     $ 445     $ 1,029     $ 500  

Noninterest income

                 

Service charges

     3,949       3,949       —         —         —         —    

Mortgage banking income

     630       —         —         567       63       —    

Card income

     9,983       1,406       8,577       —         —         —    

All other income

     712       —         917       33       —         (238 )
                                                

Total noninterest income

     15,274       5,355       9,494       600       63       (238 )
                                                

Total revenue (3)

     31,062       12,634       16,029       1,045       1,092       262  
                                                

Provision for credit losses

     3,420       109       3,142       15       31       123  

Gains (losses) on sales of debt securities

     (1 )     —         —         —         —         (1 )

Noninterest expense

     13,957       6,693       5,816       724       480       244  
                                                

Income before income taxes (3) 

     13,684       5,832       7,071       306       581       (106 )

Income tax expense

     5,040       2,148       2,604       113       214       (39 )
                                                

Net income

   $ 8,644     $ 3,684     $ 4,467     $ 193     $ 367     $ (67 )
                                                

Shareholder value added

   $ 4,546     $ 2,701     $ 1,656     $ 38     $ 253     $ (102 )

Net interest yield (3) 

     6.40 %       2.91 %     8.95 %     1.77 %     2.48 %     n/m  

Return on average equity

     18.16       32.57       13.33       13.64       35.50       n/m  

Efficiency ratio (3) 

     44.93       52.98       36.28       69.36       43.98       n/m  

Period end - total assets (4) 

   $ 394,920     $ 345,940     $ 138,161     $ 38,206     $ 59,700       n/m  
     Nine Months Ended September 30, 2005  
     Total     Deposits (1)     Card
Services (2)
    Mortgage     Home
Equity
    ALM/
Other
 

Net interest income (3)

   $ 12,555     $ 6,202     $ 3,671     $ 574     $ 958     $ 1,150  

Noninterest income

                 

Service charges

     3,734       3,734       —         —         —         —    

Mortgage banking income

     741       —         —         681       60       —    

Card income

     3,760       1,140       2,620       —         —         —    

All other income

     238       —         50       13       —         175  
                                                

Total noninterest income

     8,473       4,874       2,670       694       60       175  
                                                

Total revenue (3)

     21,028       11,076       6,341       1,268       1,018       1,325  
                                                

Provision for credit losses

     2,973       50       2,808       15       27       73  

Gains (losses) on sales of debt securities

     (2 )     —         —         —         —         (2 )

Noninterest expense

     9,839       6,026       2,257       785       502       269  
                                                

Income before income taxes (3) 

     8,214       5,000       1,276       468       489       981  

Income tax expense

     2,956       1,803       458       169       177       349  
                                                

Net income

   $ 5,258     $ 3,197     $ 818     $ 299     $ 312     $ 632  
                                                

Shareholder value added

   $ 3,297     $ 2,217     $ 71     $ 163     $ 222     $ 624  

Net interest yield (3) 

     5.61 %       2.69 %     8.91 %     2.05 %     2.74 %     n/m  

Return on average equity

     24.29       28.51       9.88       23.84       37.82       n/m  

Efficiency ratio (3) 

     46.79       54.41       35.59       61.92       49.26       n/m  

Period end - total assets (4) 

   $ 326,926     $ 327,975     $ 63,055     $ 44,606     $ 49,653       n/m  

(1) Reflects Premier Banking and Investments cumulative migration which decreased average deposits $47.8 billion and $37.7 billion for the nine months ended September 30, 2006 and 2005.
(2) Card Services presented on a held view
(3) Fully taxable-equivalent basis
(4) Total Assets include asset allocations to match liabilities (i.e., deposits).

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

14


Bank of America Corporation

Global Consumer and Small Business Banking Business Results - Pro Forma View (1)

 

(Dollars in millions)  
     Three Months Ended September 30, 2005  
     Total     Deposits (2)     Card
Services (3)
    Mortgage     Home
Equity
    ALM/
Other
 

Net interest income (4)

   $ 5,097     $ 2,213     $ 2,118     $ 194     $ 333     $ 239  

Noninterest income

                 

Service charges

     1,386       1,386       —         —         —         —    

Mortgage banking income

     241       —         —         220       21       —    

Card income

     3,207       404       2,803       —         —         —    

All other income

     137       —         71       4       —         62  
                                                

Total noninterest income

     4,971       1,790       2,874       224       21       62  
                                                

Total revenue (4)

     10,068       4,003       4,992       418       354       301  
                                                

Provision for credit losses

     1,369       38       1,272       8       9       42  

Gains (losses) on sales of debt securities

     (1 )     —         —         —         —         (1 )

Noninterest expense

     4,661       2,026       2,138       252       159       86  
                                                

Income before income taxes (4) 

     4,037       1,939       1,582       158       186       172  

Income tax expense

     1,477       710       578       58       69       62  
                                                

Net income

   $ 2,560     $ 1,229     $ 1,004     $ 100     $ 117     $ 110  
                                                

Shareholder value added

   $ 1,315     $ 908     $ 151     $ 52     $ 86     $ 118  

Net interest yield (4) 

     6.14 %       2.58 %     8.72 %     2.00 %     2.71 %     n/m  

Return on average equity

     17.24       32.62       9.61       22.59       40.55       n/m  

Efficiency ratio (4) 

     46.31       50.63       42.84       60.33       44.77       n/m  

Period end - total assets (5) 

   $ 399,479     $ 354,600     $ 144,641     $ 44,914     $ 49,653       n/m  
     Nine Months Ended September 30, 2005  
  
     Total     Deposits (2)     Card
Services (3)
    Mortgage     Home
Equity
    ALM/
Other
 

Net interest income (4)

   $ 14,986     $ 6,310     $ 5,870     $ 574     $ 958     $ 1,274  

Noninterest income

                 

Service charges

     3,734       3,734       —         —         —         —    

Mortgage banking income

     773       —         —         713       60       —    

Card income

     9,161       1,140       8,021       —         —         —    

All other income

     352       —         164       13       —         175  
                                                

Total noninterest income

     14,020       4,874       8,185       726       60       175  
                                                

Total revenue (4)

     29,006       11,184       14,055       1,300       1,018       1,449  
                                                

Provision for credit losses

     3,673       50       3,508       15       27       73  

Gains (losses) on sales of debt securities

     (2 )     —         —         —         —         (2 )

Noninterest expense

     14,076       6,026       6,494       785       502       269  
                                                

Income before income taxes (4) 

     11,255       5,108       4,053       500       489       1,105  

Income tax expense

     4,052       1,842       1,459       180       177       394  
                                                

Net income

   $ 7,203     $ 3,266     $ 2,594     $ 320     $ 312     $ 711  
                                                

Shareholder value added

   $ 3,533     $ 2,314     $ 111     $ 184     $ 222     $ 702  

Net interest yield (4) 

     6.11 %       2.51 %     8.57 %     2.05 %     2.74 %     n/m  

Return on average equity

     16.38       29.12       8.47       25.45       37.82       n/m  

Efficiency ratio (4) 

     48.53       53.89       46.21       60.41       49.26       n/m  

Period end - total assets (5) 

   $ 399,479     $ 354,600     $ 144,641     $ 44,914     $ 49,653       n/m  

(1) Pro Forma View includes the results of MBNA for periods prior to the merger on January 1, 2006. This information is being provided for reference purposes and was previously included in the Corporation’s Form 8-K filed April 10, 2006 containing Unaudited Pro Forma Condensed Combined Financial Information. Certain amounts have been reclassified to conform to current presentation. Reference should be made to the Form 8-K filed April 10, 2006 and to the Form 8-K filed May 25, 2006, which included the Consolidated Financial Statements of the Corporation.
(2) Reflects Premier Banking and Investments cumulative migration which decreased average deposits $41.5 billion and $37.7 billion for the three and nine months ended September 30, 2005.
(3) Card Services presented on a held view
(4) Fully taxable-equivalent basis
(5) Total Assets include asset allocations to match liabilities (i.e., deposits).

n/m = not meaningful

This information is preliminary and based on company data available at the time of the presentation.

 

15


Bank of America Corporation

Global Consumer and Small Business Banking Business Results: Customer Relationship View

 

(Dollars in millions)

 

GAAP (Purchase View) (1) 

 

    

Three Months Ended

September 30, 2006

  

Three Months Ended

September 30, 2005

      Total     Consumer    

Mass Market and
Small Business

Banking

   Total     Consumer     Mass Market and
Small Business
Banking

Net interest income (2)

   $ 5,243     $ 4,425     $ 818    $ 4,238     $ 3,617     $ 621

Noninterest income

     5,200       4,661       539      3,028       2,613       415
                                             

Total revenue (2)

     10,443       9,086       1,357      7,266       6,230       1,036
                                             

Provision for credit losses

     1,144       934       210      1,107       1,023       84

Gains (losses) on sales of debt securities

     —         —         —        (1 )     (1 )     —  

Noninterest expense

     4,730       4,287       443      3,255       2,845       410
                                             

Income before income taxes (2) 

     4,569       3,865       704      2,903       2,361       542

Income tax expense

     1,680       1,419       261      1,061       867       194
                                             

Net income

   $ 2,889     $ 2,446     $ 443    $ 1,842     $ 1,494     $ 348
                                             
     Nine Months Ended September 30, 2006    Nine Months Ended September 30, 2005
     Total     Consumer     Mass Market and
Small Business
Banking
   Total     Consumer     Mass Market and
Small Business
Banking

Net interest income (2)

   $ 15,788     $ 13,452     $ 2,336    $ 12,555     $ 10,796     $ 1,759

Noninterest income

     15,274       13,718       1,556      8,473       7,302       1,171
                                             

Total revenue (2)

     31,062       27,170       3,892      21,028       18,098       2,930
                                             

Provision for credit losses

     3,420       2,894       526      2,973       2,781       192

Gains (losses) on sales of debt securities

     (1 )     (1 )     —        (2 )     (2 )     —  

Noninterest expense

     13,957       12,660       1,297      9,839       8,691       1,148
                                             

Income before income taxes (2) 

     13,684       11,615       2,069      8,214       6,624       1,590

Income tax expense

     5,040       4,274       766      2,956       2,386       570
                                             

Net income

   $ 8,644     $ 7,341     $ 1,303    $ 5,258     $ 4,238     $ 1,020
                                             

Pro Forma View (3) 

               
     Three Months Ended September 30, 2005    Nine Months Ended September 30, 2005
     Total     Consumer     Mass Market and
Small Business
Banking
   Total     Consumer     Mass Market and
Small Business
Banking

Net interest income (2)

   $ 5,097     $ 4,410     $ 687    $ 14,986     $ 13,044     $ 1,942

Noninterest income

     4,971       4,493       478      14,020       12,670       1,350
                                             

Total revenue (2)

     10,068       8,903       1,165      29,006       25,714       3,292
                                             

Provision for credit losses

     1,369       1,251       118      3,673       3,385       288

Gains (losses) on sales of debt securities

     (1 )     (1 )     —        (2 )     (2 )     —  

Noninterest expense

     4,661       4,201       460      14,076       12,776       1,300
                                             

Income before income taxes (2) 

     4,037       3,450       587      11,255       9,551       1,704

Income tax expense

     1,477       1,266       211      4,052       3,442       610
                                             

Net income

   $ 2,560     $ 2,184     $ 376    $ 7,203     $ 6,109     $ 1,094
                                             

(1) Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated.
(2) Fully taxable-equivalent basis
(3) Pro Forma View includes the results of MBNA for periods prior to the merger on January 1, 2006. This information is being provided for reference purposes and was previously included in the Corporation’s Form 8-K filed April 10, 2006 containing Unaudited Pro Forma Condensed Combined Financial Information. Certain amounts have been reclassified to conform to current presentation. Reference should be made to the Form 8-K filed April 10, 2006 and to the Form 8-K filed May 25, 2006, which included the Consolidated Financial Statements of the Corporation.

This information is preliminary and based on company data available at the time of the presentation.

 

16


Bank of America Corporation

Global Consumer and Small Business Banking—Key Indicators

 

(Dollars in millions; except as noted)

 

 
      Year-to-Date
September 30
   

Third
Quarter

2006

   

Second
Quarter

2006

   

First
Quarter

2006

   

Fourth
Quarter

2005

   

Third
Quarter

2005

 
   2006     2005            

Deposits Key Indicators

              

Average Deposit Balances

              

Checking

   $ 126,309     $ 122,435     $ 124,834     $ 127,754     $ 126,355     $ 125,515     $ 124,424  

Savings

     31,919       31,995       31,209       32,453       32,104       31,898       32,016  

MMS

     73,575       68,752       70,339       73,532       76,925       71,941       68,848  

CD’s & IRA’s

     88,835       75,240       92,644       88,932       84,842       69,382       76,790  

Foreign and other

     10,908       7,502       11,342       11,328       10,043       7,880       8,452  
                                                          

Total

   $ 331,546     $ 305,924     $ 330,368     $ 333,999     $ 330,269     $ 306,616     $ 310,530  
                                                          

Average cumulative balances migrated to Premier Banking and Investments

   $ 47,771     $ 37,698     $ 49,178     $ 47,900     $ 46,202     $ 43,969     $ 41,457  
 

Deposit Spreads (excludes noninterest costs)

              

Checking

     4.21 %     4.18 %     4.23 %     4.21 %     4.18 %     4.16 %     4.18 %

Savings

     3.39       4.05       3.42       3.38       3.36       3.53       3.78  

MMS

     2.71       1.70       2.87       2.75       2.53       2.69       2.02  

CD’s & IRA’s

     1.22       0.79       1.20       1.25       1.21       1.19       0.90  

Foreign and other

     3.94       3.71       4.08       4.05       3.67       4.19       3.88  

Total

     2.97       2.75       3.00       3.00       2.92       3.06       2.82  
 

Net new checking (units in thousands)

     2,048       1,875       744       701       603       426       635  

Debit purchase volumes

   $ 124,162     $ 102,287     $ 42,855     $ 42,689     $ 38,618     $ 39,623     $ 36,008  
 

Online Banking (end of period)

Active accounts (units in thousands)

     20,576       14,338       20,576       19,806       19,643       14,698       14,338  

Active billpay accounts (units in thousands)

     10,838       6,987       10,838       10,410       10,088       7,281       6,987  
 

Credit Key Indicators

              

Managed Card - US Consumer and Business Card

              

Gross interest yield

     12.66 %     11.58 %       12.87 %     12.54 %     12.56 %     12.17 %     11.92 %

Risk adjusted margin (1)

     9.56       8.00       8.83       9.49       10.39       4.37       8.44  

Loss rates

     3.61       6.00       4.18       3.56       3.08       9.35       5.70  

Average outstandings (in millions)

   $ 145,293     $ 60,703     $ 146,287     $ 144,198     $ 145,384     $ 62,337     $ 61,905  

New account growth (in thousands)

     7,018       4,383       2,522       2,332       2,164       929       1,466  

Purchase volumes (in millions)

   $ 171,752     $ 67,916     $ 59,880     $ 59,088     $ 52,784     $ 26,051     $ 24,435  

Delinquencies

              

30 Day

     5.13 %     4.55 %     5.13 %     4.71 %     4.47 %     4.13 %     4.55 %

60 Day

     3.47       3.17       3.47       3.23       3.01       2.89       3.17  
 

Mortgage

              

Mortgage originations (in millions) (2)

   $ 61,818     $ 66,144     $ 21,228     $ 23,378     $ 17,212     $ 20,662     $ 27,511  

Mortgage servicing rights
Period end balance (in millions)

     2,932       2,623       2,932       3,083       2,925       2,658       2,623  

Capitalized mortgage servicing rights (% of loans serviced)

     127 bps       124 bps       127 bps       139 bps       132 bps       122 bps       124 bps  

Mortgage loans serviced for investors (in billions)

   $ 230     $ 212     $ 230     $ 221     $ 221     $ 218     $ 212  

Home equity originations (in millions) (2)

     60,384       52,401       20,681       21,141       18,562       19,578       17,887  

(1) Reflects margin and noninterest revenue, adjusted for loss rates.
(2) Includes originations across all business segments.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

17


Bank of America Corporation

E-Commerce & BankofAmerica.com

 

 

Bank of America has the largest active online banking customer base with 20.6 million subscribers.

Bank of America uses a strict Active User standard - customers must have used our online services within the last 90 days.

10.8 million active bill pay users paid $48.5 billion worth of bills this quarter. The number of customers who sign up and

use Bank of America’s Bill Pay Service continues to far surpass that of any other financial institution.

Currently, approximately 370 companies are presenting 21.3 million e-bills per quarter.

LOGO

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

18


Bank of America Corporation

Card Services Results - GAAP (Purchase View)

 

(Dollars in millions)

 

     Year-to-Date
September 30
   

Third
Quarter

2006

   

Second
Quarter

2006

   

First
Quarter

2006

   

Fourth
Quarter

2005

   

Third
Quarter

2005

 
     2006     2005            

Key Measures - Card Services Data(1)

                
 

Managed Income Statement

                

Held total revenue

   $ 16,029     $ 6,341     $ 5,330     $ 5,466     $ 5,233     $ 2,245     $ 2,249  

Securitizations impact

     2,340       372       908       778       654       63       92  
                                                        

Managed total revenue

   $ 18,369     $ 6,713     $ 6,238     $ 6,244     $ 5,887     $ 2,308     $ 2,341  
                                                        

% of average managed outstandings

     13.0 %     14.8 %     12.8 %     13.3 %     12.8 %     14.7 %     15.0 %
 

Held provision for credit losses

   $ 3,142     $ 2,808     $ 1,032     $ 956     $ 1,154     $ 1,191     $ 1,010  

Securitizations impact

     2,340       372       908       778       654       63       92  
                                                        

Managed provision for credit losses

   $ 5,482     $ 3,180     $ 1,940     $ 1,734     $ 1,808     $ 1,254     $ 1,102  
                                                        

% of average managed outstandings

     3.9 %     7.0 %     4.0 %     3.7 %     3.9 %     8.0 %     7.1 %
 

Held noninterest expense

   $ 5,816     $ 2,257     $ 1,956     $ 1,844     $ 2,016     $ 711     $ 732  

Securitizations impact

     —         —         —         —         —         —         —    
                                                        

Managed noninterest expense

   $ 5,816     $ 2,257     $ 1,956     $ 1,844     $ 2,016     $ 711     $ 732  
                                                        

% of average managed outstandings

     4.1 %     5.0 %     4.0 %     3.9 %     4.4 %     4.5 %     4.7 %
 

Held income before income taxes

   $ 7,071     $ 1,276     $ 2,342     $ 2,666     $ 2,063     $ 343     $ 507  

Securitizations impact

     —         —         —         —         —         —         —    
                                                        

Managed income before income taxes

   $ 7,071     $ 1,276     $ 2,342     $ 2,666     $ 2,063     $ 343     $ 507  
                                                        

% of average managed outstandings

     5.0 %     2.8 %     4.8 %     5.7 %     4.5 %     2.2 %     3.2 %
 

Shareholder Value Added - Managed

   $ 1,609     $ 61     $ 524     $ 725     $ 360     $ (54 )   $ 54  
 

Merchant Acquiring Business:

                

Processing volume

   $ 282,597     $ 251,337     $ 97,044     $ 97,229     $ 88,324     $ 101,601     $ 91,321  

Total transactions (units in thousands)

     6,057       5,358       2,101       2,069       1,887       2,058       1,906  

(1) Beginning with the first quarter of 2006, Card Services includes U.S. Consumer and Business Card, Consumer Finance, International Card Operations and Merchant Services. Prior to January 1, 2006, Card Services included only U.S. Consumer Credit Card.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

This information is preliminary and based on company data available at the time of the presentation.

 

19


Bank of America Corporation

Card Services Results - GAAP (Purchase View) continued

 

(Dollars in millions)

    

 

     

Year-to-Date

September 30

        

Third
Quarter

2006

   

Second
Quarter

2006

   

First
Quarter

2006

   

Fourth
Quarter

2005

   

Third
Quarter

2005

 
      2006     2005                 

Key Measures - Card Services Data (1)

                 
 

Loans

                 

Period End:

                 

On-balance sheet

   $ 96,173     $ 58,427        $ 96,173     $ 93,217     $ 90,533     $ 61,397     $ 58,427  

Securitizations impact

     98,683       3,622          98,683       96,848       94,359       2,239       3,622  
                                                             

Managed

   $ 194,856     $ 62,049        $ 194,856     $ 190,065     $ 184,892     $ 63,636     $ 62,049  
                                                             

Average:

                 

On-balance sheet

   $ 94,332     $ 54,925        $ 95,948     $ 93,115     $ 93,910     $ 59,479     $ 57,414  

Securitizations impact

     95,050       5,788          97,371       94,952       92,776       2,865       4,491  
                                                             

Managed

   $ 189,382     $ 60,713        $ 193,319     $ 188,067     $ 186,686     $ 62,344     $ 61,905  
                                                             

Credit Quality

                 

Charge-Offs $:

                 

Held net charge-offs

   $ 2,676     $ 2,353        $ 1,094     $ 904     $ 678     $ 1,406     $ 798  

Securitizations impact

     2,340       372          908       778       654       63       92  
                                                             

Managed card services net losses

   $ 5,016     $ 2,725        $ 2,002     $ 1,682     $ 1,332     $ 1,469     $ 890  
                                                             

Charge-Offs %:

                 

Held net charge-offs

     3.79 %     5.73 %        4.52 %     3.89 %     2.93 %     9.38 %     5.51 %

Securitizations impact

     (0.25 )     0.27          (0.41 )     (0.30 )     (0.04 )     (0.03 )     0.19  
                                                             

Managed card services net losses

     3.54 %     6.00 %        4.11 %     3.59 %     2.89 %     9.35 %     5.70 %
                                                             

30+ Delinquency $:

                 

Held delinquency

   $ 5,123     $ 2,574        $ 5,123     $ 4,528     $ 3,834     $ 2,585     $ 2,574  

Securitizations impact

     4,429       246          4,429       4,141       4,241       42       246  
                                                             

Managed delinquency

   $ 9,552     $ 2,820        $ 9,552     $ 8,669     $ 8,075     $ 2,627     $ 2,820  
                                                             

30+ Delinquency %:

                 

Held delinquency

     5.33 %     4.41 %          5.33 %     4.86 %     4.23 %     4.21 %     4.41 %

Securitizations impact

     (0.43 )     0.13          (0.43 )     (0.30 )     0.14       (0.08 )     0.13  
                                                             

Managed delinquency

     4.90 %     4.54 %        4.90 %     4.56 %     4.37 %     4.13 %     4.54 %
                                                             

90+ Delinquency $:

                 

Held delinquency

   $ 2,408     $ 1,208        $ 2,408     $ 2,208     $ 1,752     $ 1,232     $ 1,208  

Securitizations impact

     1,994       121          1,994       1,980       1,926       20       121  
                                                             

Managed delinquency

   $ 4,402     $ 1,329        $ 4,402     $ 4,188     $ 3,678     $ 1,252     $ 1,329  
                                                             

90+ Delinquency %:

                 

Held delinquency

     2.50 %     2.07 %        2.50 %     2.37 %     1.94 %     2.01 %     2.07 %

Securitizations impact

     (0.24 )     0.07          (0.24 )     (0.17 )     0.05       (0.04 )     0.07  
                                                             

Managed delinquency

     2.26 %     2.14 %        2.26 %     2.20 %     1.99 %     1.97 %     2.14 %
                                                             

(1) Beginning with the first quarter of 2006, Card Services includes U.S. Consumer and Business Card, Consumer Finance, International Card Operations and Merchant Services. Prior to January 1, 2006, Card Services included only U.S. Consumer Credit Card.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

20


Bank of America Corporation

Card Services Results - Pro Forma View

 

(Dollars in millions)          
    

Year-to-Date

September 30

         

Third
Quarter

2006

   

Second
Quarter

2006

   

First
Quarter

2006

   

Fourth
Quarter

2005

   

Third
Quarter

2005

 
      2006     2005                  
Key Measures - Card Services Data (1)                    

Managed Income Statement

                   

Held total revenue

   $ 16,029     $ 14,055          $ 5,330     $ 5,466     $ 5,233     $ 4,760     $ 4,992  

Securitizations impact

     2,340       3,447            908       778       654       1,493       1,093  
                                                             

Managed total revenue

   $ 18,369     $ 17,502          $ 6,238     $ 6,244     $ 5,887     $ 6,253     $ 6,085  
                                                             

% of average managed outstandings

     13.0 %     13.2 %          12.8 %     13.3 %     12.8 %     13.4 %     13.4 %
 

Held provision for credit losses

   $ 3,142     $ 3,508          $ 1,032     $ 956     $ 1,154     $ 1,402     $ 1,272  

Securitizations impact

     2,340       3,447            908       778       654       1,493       1,093  
                                                             

Managed provision for credit losses

   $ 5,482     $ 6,955          $ 1,940     $ 1,734     $ 1,808     $ 2,895     $ 2,365  
                                                             

% of average managed outstandings

     3.9 %     5.3 %            4.0 %     3.7 %     3.9 %     6.2 %     5.2 %
 

Held noninterest expense

   $ 5,816     $ 6,494          $ 1,956     $ 1,844     $ 2,016     $ 2,367     $ 2,138  

Securitizations impact

     —         —              —         —         —         —         —    
                                                             

Managed noninterest expense

   $ 5,816     $ 6,494          $ 1,956     $ 1,844     $ 2,016     $ 2,367     $ 2,138  
                                                             

% of average managed outstandings

     4.1 %     4.9 %          4.0 %     3.9 %     4.4 %     5.1 %     4.7 %
 

Held income before income taxes

   $ 7,071     $ 4,053          $ 2,342     $ 2,666     $ 2,063     $ 991     $ 1,582  

Securitizations impact

     —         —              —         —         —         —         —    
                                                             

Managed income before income taxes

   $ 7,071     $ 4,053          $ 2,342     $ 2,666     $ 2,063     $ 991     $ 1,582  
                                                             

% of average managed outstandings

     5.0 %     3.1 %          4.8 %     5.7 %     4.5 %     2.1 %     3.5 %
 

Shareholder Value Added - Managed

   $ 1,609     $ 53          $ 524     $ 725     $ 360     $ (235 )   $ 132  
Merchant Acquiring Business:                    

Processing volume

   $ 282,597     $ 251,337          $ 97,044     $ 97,229     $ 88,324     $ 101,601     $ 91,321  

Total transactions (units in thousands)

     6,057       5,358            2,101       2,069       1,887       2,058       1,906  

(1) Card Services includes U.S. Consumer and Business Card, Consumer Finance, International Card Operations and Merchant Services.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

This information is preliminary and based on company data available at the time of the presentation.

 

21


Bank of America Corporation

Card Services Results - Pro Forma View continued

 

(Dollars in millions)  
    

Year-to-Date

September 30

   

Third
Quarter

2006

   

Second
Quarter

2006

   

First
Quarter

2006

   

Fourth
Quarter

2005

   

Third
Quarter

2005

 
     2006     2005            

Key Measures - Card Services Data (1)

             

Loans

             

Period End:

             

On-balance sheet

  $ 96,173     $ 91,727     $ 96,173     $ 93,217     $ 90,533     $ 96,756     $ 91,727  

Securitizations impact

    98,683       90,851       98,683       96,848       94,359       92,481       90,851  
                                                         

Managed

  $ 194,856     $ 182,578     $ 194,856     $ 190,065     $ 184,892     $ 189,237     $ 182,578  
                                                         

Average:

             

On-balance sheet

  $ 94,332     $ 85,250     $ 95,948     $ 93,115     $ 93,910     $ 93,216     $ 90,068  

Securitizations impact

    95,050       91,725       97,371       94,952       92,776       92,040       89,912  
                                                         

Managed

  $ 189,382     $ 176,975     $ 193,319     $ 188,067     $ 186,686     $ 185,256     $ 179,980  
                                                         

Credit Quality:

             

Charge-Offs $:

             

Held net charge-offs

  $ 2,676     $ 3,154     $ 1,094     $ 904     $ 678     $ 1,799     $ 1,066  

Securitizations impact

    2,340       3,447       908       778       654       1,493       1,093  
                                                         

Managed card services net losses

  $ 5,016     $ 6,601     $ 2,002     $ 1,682     $ 1,332     $ 3,292     $ 2,159  
                                                         

Charge-Offs %:

             

Held net charge-offs

    3.79 %     4.95 %       4.52 %     3.89 %     2.93 %     7.66 %     4.70 %

Securitizations impact

    (0.25 )     0.04       (0.41 )     (0.30 )     (0.04 )     (0.61 )     0.06  
                                                         

Managed card services net losses

    3.54 %     4.99 %     4.11 %     3.59 %     2.89 %     7.05 %     4.76 %
                                                         

30+ Delinquency $:

             

Held delinquency

  $ 5,123     $ 3,708     $ 5,123     $ 4,528     $ 3,834     $ 3,668     $ 3,708  

Securitizations impact

    4,429       4,489       4,429       4,141       4,241       3,825       4,489  
                                                         

Managed delinquency

  $ 9,552     $ 8,197     $ 9,552     $ 8,669     $ 8,075     $ 7,493     $ 8,197  
                                                         

30+ Delinquency %:

             

Held delinquency

    5.33 %     4.03 %     5.33 %     4.86 %     4.23 %     3.78 %     4.03 %

Securitizations impact

    (0.43 )     0.46       (0.43 )     (0.30 )     0.14       0.18       0.46  
                                                         

Managed delinquency

    4.90 %     4.49 %     4.90 %     4.56 %     4.37 %     3.96 %     4.49 %
                                                         

90+ Delinquency $:

             

Held delinquency

  $ 2,408     $ 1,692     $ 2,408     $ 2,208     $ 1,752     $ 1,692     $ 1,692  

Securitizations impact

    1,994       2,093       1,994       1,980       1,926       1,777       2,093  
                                                         

Managed delinquency

  $ 4,402     $ 3,785     $ 4,402     $ 4,188     $ 3,678     $ 3,469     $ 3,785  
                                                         

90+ Delinquency %:

             

Held delinquency

    2.50 %     1.84 %     2.50 %     2.37 %     1.94 %     1.74 %     1.84 %

Securitizations impact

    (0.24 )     0.23       (0.24 )     (0.17 )     0.05       0.09       0.23  
                                                         

Managed delinquency

    2.26 %     2.07 %     2.26 %     2.20 %     1.99 %     1.83 %     2.07 %
                                                         

(1) Card Services includes U.S. Consumer and Business Card, Consumer Finance, International Card Operations and Merchant Services.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

This information is preliminary and based on company data available at the time of the presentation.

 

22


Bank of America Corporation

Credit Card Only - GAAP (Purchase View) (1)

 

(Dollars in millions)  
     

Year-to-Date

September 30

    Third
Quarter
    Second
Quarter
    First
Quarter
    Fourth
Quarter
    Third
Quarter
 
      2006     2005     2006     2006     2006     2005     2005  
Key Measures - Credit Card Data               

Loans

              

Period End:

              

On-balance sheet

   $ 70,067     $ 56,079     $ 70,067     $ 71,566     $ 72,279     $ 58,548     $ 56,079  

Securitizations impact

     94,389       3,622       94,389       90,564       87,154       2,237       3,622  
                                                          

Managed

   $ 164,456     $ 59,701     $ 164,456     $ 162,130     $ 159,433     $ 60,785     $ 59,701  
                                                          

Average:

              

On-balance sheet

   $ 73,923     $ 53,033     $ 71,963     $ 73,285     $ 76,572     $ 56,858     $ 55,271  

Securitizations impact

     88,615       5,788       92,175       88,032       85,566       2,865       4,491  
                                                          

Managed

   $ 162,538     $ 58,821     $ 164,138     $ 161,317     $ 162,138     $ 59,723     $ 59,762  
                                                          

Credit Quality

              

Charge-Offs $:

              

Held net charge-offs

   $ 2,356     $ 2,286     $ 923     $ 780     $ 653     $ 1,366     $ 772  

Securitizations impact

     2,112       372       825       694       593       63       92  
                                                          

Managed credit card net losses

   $ 4,468     $ 2,658     $ 1,748     $ 1,474     $ 1,246     $ 1,429     $ 864  
                                                          

Charge-Offs %:

              

Held net charge-offs

     4.26 %     5.76 %       5.09 %     4.27 %     3.46 %     9.53 %     5.55 %

Securitizations impact

     (0.58 )     0.28       (0.86 )     (0.60 )     (0.34 )     (0.04 )     0.19  
                                                          

Managed credit card net losses

     3.68 %     6.04 %     4.23 %     3.67 %     3.12 %     9.49 %     5.74 %
                                                          

30+ Delinquency $:

              

Held delinquency

   $ 4,234     $ 2,497     $ 4,234     $ 3,874     $ 3,306     $ 2,496     $ 2,497  

Securitizations impact

     4,152       246       4,152       3,831       3,924       42       246  
                                                          

Managed delinquency

   $ 8,386     $ 2,743     $ 8,386     $ 7,705     $ 7,230     $ 2,538     $ 2,743  
                                                          

30+ Delinquency %:

              

Held delinquency

     6.04 %     4.45 %     6.04 %     5.41 %     4.57 %     4.26 %     4.45 %

Securitizations impact

     (0.94 )     0.14       (0.94 )     (0.66 )     (0.03 )     (0.08 )     0.14  
                                                          

Managed delinquency

     5.10 %     4.59 %     5.10 %     4.75 %     4.54 %     4.18 %     4.59 %
                                                          

90+ Delinquency $:

              

Held delinquency

   $ 2,036     $ 1,175     $ 2,036     $ 1,919     $ 1,540     $ 1,197     $ 1,175  

Securitizations impact

     1,860       121       1,860       1,826       1,767       20       121  
                                                          

Managed delinquency

   $ 3,896     $ 1,296     $ 3,896     $ 3,745     $ 3,307     $ 1,217     $ 1,296  
                                                          

90+ Delinquency %:

              

Held delinquency

     2.91 %     2.09 %     2.91 %     2.68 %     2.13 %     2.05 %     2.09 %

Securitizations impact

     (0.54 )     0.08       (0.54 )     (0.37 )     (0.06 )     (0.05 )     0.08  
                                                          

Managed delinquency

     2.37 %     2.17 %     2.37 %     2.31 %     2.07 %     2.00 %     2.17 %
                                                          

(1) Credit Card includes U.S. Consumer Card and foreign credit card. Does not include Business Credit Card.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

23


Bank of America Corporation

Credit Card Only - Pro Forma View (1)

 

(Dollars in millions)  
     

Year-to-Date

September 30

   

Third
Quarter

2006

   

Second
Quarter

2006

   

First
Quarter

2006

   

Fourth
Quarter

2005

   

Third
Quarter

2005

 
Key Measures - Credit Card Data    2006     2005            

Loans

              

Period End:

              

On-balance sheet

   $ 70,067     $ 76,059     $ 70,067     $ 71,566     $ 72,279     $ 79,944     $ 76,059  

Securitizations impact

     94,389       83,634       94,389       90,564       87,154       85,272       83,634  
                                                          

Managed

   $ 164,456     $ 159,693     $ 164,456     $ 162,130     $ 159,433     $ 165,216     $ 159,693  
                                                          

Average:

              

On-balance sheet

   $ 73,923     $ 70,866     $ 71,963     $ 73,285     $ 76,572     $ 76,827     $ 74,834  

Securitizations impact

     88,615       84,935       92,175       88,032       85,566       84,819       82,987  
                                                          

Managed

   $ 162,538     $ 155,801     $ 164,138     $ 161,317     $ 162,138     $ 161,646     $ 157,821  
                                                          

Credit Quality:

              

Charge-Offs $:

              

Held net charge-offs

   $ 2,356     $ 2,754     $ 923     $ 780     $ 653     $ 1,569     $ 928  

Securitizations impact

     2,112       3,097       825       694       593       1,312       979  
                                                          

Managed credit card net losses

   $ 4,468     $ 5,851     $ 1,748     $ 1,474     $ 1,246     $ 2,881     $ 1,907  
                                                          

Charge-Offs %:

              

Held net charge-offs

     4.26 %     5.20 %       5.09 %     4.27 %     3.46 %     8.10 %     4.91 %

Securitizations impact

     (0.58 )     (0.18 )     (0.86 )     (0.60 )     (0.34 )     (1.03 )     (0.12 )
                                                          

Managed credit card net losses

     3.68 %     5.02 %     4.23 %     3.67 %     3.12 %     7.07 %     4.79 %
                                                          

30+ Delinquency $:

              

Held delinquency

   $ 4,234     $ 3,225     $ 4,234     $ 3,874     $ 3,306     $ 3,204     $ 3,225  

Securitizations impact

     4,152       4,135       4,152       3,831       3,924       3,543       4,135  
                                                          

Managed delinquency

   $ 8,386     $ 7,360     $ 8,386     $ 7,705     $ 7,230     $ 6,747     $ 7,360  
                                                          

30+ Delinquency %:

              

Held delinquency

     6.04 %     4.24 %     6.04 %     5.41 %     4.57 %     4.01 %     4.24 %

Securitizations impact

     (0.94 )     0.37       (0.94 )     (0.66 )     (0.03 )     0.07       0.37  
                                                          

Managed delinquency

     5.10 %     4.61 %     5.10 %     4.75 %     4.54 %     4.08 %     4.61 %
                                                          

90+ Delinquency $:

              

Held delinquency

   $ 2,036     $ 1,496     $ 2,036     $ 1,919     $ 1,540     $ 1,508     $ 1,496  

Securitizations impact

     1,860       1,921       1,860       1,826       1,767       1,642       1,921  
                                                          

Managed delinquency

   $ 3,896     $ 3,417     $ 3,896     $ 3,745     $ 3,307     $ 3,150     $ 3,417  
                                                          

90+ Delinquency %:

              

Held delinquency

     2.91 %     1.97 %     2.91 %     2.68 %     2.13 %     1.89 %     1.97 %

Securitizations impact

     (0.54 )     0.17       (0.54 )     (0.37 )     (0.06 )     0.02       0.17  
                                                          

Managed delinquency

     2.37 %     2.14 %     2.37 %     2.31 %     2.07 %     1.91 %     2.14 %
                                                          

(1) Credit Card includes U.S. Consumer Card and foreign credit card. Does not include Business Credit Card.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

This information is preliminary and based on company data available at the time of the presentation.

 

24


Bank of America Corporation

Card Services Results - Reconciliation - GAAP (Purchase View) to Pro Forma

 

(Dollars in millions)

                                         
     Fourth Quarter 2005    Third Quarter 2005
Card Services Data (1)    Bank of
America
   Adjustments
to include
MBNA (2)
   Combined    Bank of
America
   Adjustments
to include
MBNA (2)
   Combined

Income Statement Data

                 

Held total revenue

   $ 2,245    $ 2,515    $ 4,760    $ 2,249    $ 2,743    $ 4,992

Securitizations impact

     63      1,430      1,493      92      1,001      1,093
                                         

Managed total revenue

   $ 2,308    $ 3,945    $ 6,253    $ 2,341    $ 3,744    $ 6,085
                                         

Held provision for credit losses

   $ 1,191    $ 211    $ 1,402    $ 1,010    $ 262    $ 1,272

Securitizations impact

     63      1,430      1,493      92      1,001      1,093
                                         

Managed provision for credit losses

   $ 1,254    $ 1,641    $ 2,895    $ 1,102    $ 1,263    $ 2,365
                                         

Held noninterest expense

   $ 711    $ 1,656    $ 2,367    $ 732    $ 1,406    $ 2,138

Securitizations impact

     —        —        —        —        —        —  
                                         

Managed noninterest expense

   $ 711    $ 1,656    $ 2,367    $ 732    $ 1,406    $ 2,138
                                         

Held income before income taxes

   $ 343    $ 648    $ 991    $ 507    $ 1,075    $ 1,582

Securitizations impact

     —        —        —        —        —        —  
                                         

Managed income before income taxes

   $ 343    $ 648    $ 991    $ 507    $ 1,075    $ 1,582
                                         
     Year-to-Date September 30, 2005     
     Bank of
America
   Adjustments
to include
MBNA (2)
   Combined   

Income Statement Data

           

Held total revenue

   $ 6,341    $ 7,714    $ 14,055   

Securitizations impact

     372      3,075      3,447   
                       

Managed total revenue

   $ 6,713    $ 10,789    $ 17,502   
                       

Held provision for credit losses

   $ 2,808    $ 700    $ 3,508   

Securitizations impact

     372      3,075      3,447   
                       

Managed provision for credit losses

   $ 3,180    $ 3,775    $ 6,955   
                       

Held noninterest expense

   $ 2,257    $ 4,237    $ 6,494   

Securitizations impact

     —        —        —     
                       

Managed noninterest expense

   $ 2,257    $ 4,237    $ 6,494   
                       

Held income before income taxes

   $ 1,276    $ 2,777    $ 4,053   

Securitizations impact

     —        —        —     
                       

Managed income before income taxes

   $ 1,276    $ 2,777    $ 4,053   
                       

(1) Card Services includes U.S. Consumer and Business Card, Consumer Finance, International Card Operations and Merchant Services.
(2) Reflects historical MBNA amounts as well as purchase accounting adjustments which were allocated to the business segments and All Other primarily based on how the assets acquired and liabilities assumed in the MBNA merger were allocated to the respective business segments and All Other. See also Notes to Unaudited Pro Forma Condensed Combined Financial Information in Form 8-K filed on April 10, 2006.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

This information is preliminary and based on company data available at the time of the presentation.

 

25


Bank of America Corporation

Card Services Results - Reconciliation - GAAP (Purchase View) to Pro Forma continued

 

(Dollars in millions)

                                         
      Fourth Quarter 2005    Third Quarter 2005

Card Services Data (2)

  

Bank of

America

  

Adjustments to

include MBNA (1)

   Combined   

Bank of

America

  

Adjustments to

include MBNA (1)

   Combined

Loans

                 

Period End:

                 

On-balance sheet

   $ 61,397    $ 35,359    $ 96,756    $ 58,427    $ 33,300    $ 91,727

Securitizations impact

     2,239      90,242      92,481      3,622      87,229      90,851
                                         

Managed

   $ 63,636    $ 125,601    $ 189,237    $ 62,049    $ 120,529    $ 182,578
                                         

Average:

                 

On-balance sheet

   $ 59,479    $ 33,737    $ 93,216    $ 57,414    $ 32,654    $ 90,068

Securitizations impact

     2,865      89,175      92,040      4,491      85,421      89,912
                                         

Managed

   $ 62,344    $ 122,912    $ 185,256    $ 61,905    $ 118,075    $ 179,980
                                         
     Year-to-Date September 30, 2005               
    

Bank of

America

  

Adjustments to

include MBNA (1)

   Combined               

Loans

                 

Period End:

                 

On-balance sheet

   $ 58,427    $ 33,300    $ 91,727         

Securitizations impact

     3,622      87,229      90,851         
                             

Managed

   $ 62,049    $ 120,529    $ 182,578         
                             

Average:

                 

On-balance sheet

   $ 54,925    $ 30,325    $ 85,250         

Securitizations impact

     5,788      85,937      91,725         
                             

Managed

   $ 60,713    $ 116,262    $ 176,975         
                             
     Fourth Quarter 2005    Third Quarter 2005

Credit Card Data (3)

  

Bank of

America

  

Adjustments to

include MBNA (1)

   Combined   

Bank of

America

  

Adjustments to

include MBNA (1)

   Combined

Loans

                 

Period End:

                 

On-balance sheet

   $ 58,548    $ 21,396    $ 79,944    $ 56,079    $ 19,980    $ 76,059

Securitizations impact

     2,237      83,035      85,272      3,622      80,012      83,634
                                         

Managed

   $ 60,785    $ 104,431    $ 165,216    $ 59,701    $ 99,992    $ 159,693
                                         

Average:

                 

On-balance sheet

   $ 56,858    $ 19,969    $ 76,827    $ 55,271    $ 19,563    $ 74,834

Securitizations impact

     2,865      81,954      84,819      4,491      78,496      82,987
                                         

Managed

   $ 59,723    $ 101,923    $ 161,646    $ 59,762    $ 98,059    $ 157,821
                                         
     Year-to-Date September 30, 2005               
    

Bank of

America

  

Adjustments to

include MBNA (1)

   Combined               

Loans

                 

Period End:

                 

On-balance sheet

   $ 56,079    $ 19,980    $ 76,059         

Securitizations impact

     3,622      80,012      83,634         
                             

Managed

   $ 59,701    $ 99,992    $ 159,693         
                             

Average:

                 

On-balance sheet

   $ 53,033    $ 17,833    $ 70,866         

Securitizations impact

     5,788      79,147      84,935         
                             

Managed

   $ 58,821    $ 96,980    $ 155,801         
                             

(1) Reflects historical MBNA amounts as well as purchase accounting adjustments which were allocated to the business segments and All Other primarily based on how the assets acquired and liabilities assumed in the MBNA merger were allocated to the respective business segments and All Other. See also Notes to Unaudited Pro Forma Condensed Combined Financial Information in Form 8-K filed on April 10, 2006.
(2) Card Services includes U.S. Consumer and Business Card, Consumer Finance, International Card Operations and Merchant Services.
(3) Credit Card includes U.S. Consumer Card and foreign credit card. Does not include Business Credit Card.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

This information is preliminary and based on company data available at the time of the presentation.

 

26


Bank of America Corporation

Global Corporate and Investment Banking Segment Results

 

(Dollars in millions)  
    

Year-to-Date

September 30

         

Third

Quarter

2006

   

Second

Quarter

2006

   

First

Quarter

2006

   

Fourth

Quarter

2005

   

Third

Quarter

2005

 
     2006     2005               

Net interest income (1)

   $ 8,069     $ 8,394          $ 2,643     $ 2,708     $ 2,718     $ 2,771     $ 2,749  

Noninterest income

                   

Service charges

     2,100       1,977            710       703       687       641       671  

Investment and brokerage services

     801       775            252       277       272       271       267  

Investment banking income

     1,721       1,345            554       645       522       547       532  

Trading account profits

     2,591       1,463            711       872       1,008       307       571  

All other income

     2,011       1,697            1,145       508       358       421       499  
                                                             

Total noninterest income

     9,224       7,257            3,372       3,005       2,847       2,187       2,540  
                                                             

Total revenue (1)

     17,293       15,651            6,015       5,713       5,565       4,958       5,289  
                                                             

Provision for credit losses

     102       (388 )          22       41       39       97       12  

Gains (losses) on sales of debt securities

     34       168            14       (3 )     23       95       17  

Noninterest expense

     8,953       8,166            2,965       2,957       3,031       2,967       2,854  
                                                             

Income before income taxes (1)

     8,272       8,041            3,042       2,712       2,518       1,989       2,440  

Income tax expense

     3,051       2,933            1,120       999       932       707       889  
                                                             

Net income

   $ 5,221     $ 5,108          $ 1,922     $ 1,713     $ 1,586     $ 1,282     $ 1,551  
                                                             

Shareholder value added

   $ 1,865     $ 1,820          $ 828     $ 571     $ 466     $ 152     $ 450  

Net interest yield (1)

     1.76 %     2.06 %          1.65 %     1.77 %     1.88 %     1.92 %     1.92 %

Return on average equity

     16.50       16.43            18.62       15.92       15.02       11.99       14.91  

Efficiency ratio (1)

     51.77       52.17            49.30       51.75       54.46       59.84       53.96  
 
Balance Sheet                    

Average

                   

Total loans and leases

   $ 242,161     $ 210,038          $ 246,419     $ 243,140     $ 236,818     $ 228,999     $ 216,121  

Total trading-related assets

     330,378       313,422            340,521       332,688       317,675       317,970       328,713  

Total earning assets

     612,441       543,719            636,614       613,246       586,916       571,099       566,674  

Total assets

     694,571       626,041            715,174       700,237       667,783       654,655       648,312  

Total deposits

     203,275       188,879            206,576       205,263       197,890       192,771       188,901  

Allocated equity

     42,308       41,556            40,941       43,179       42,824       42,412       41,265  
 

Period End

                   

Total loans and leases

   $ 243,410     $ 220,873          $ 243,410     $ 246,287     $ 239,066     $ 232,631     $ 220,873  

Total trading-related assets

     296,504       273,261            296,504       294,435       268,932       291,267       273,261  

Total earning assets

     592,702       514,944            592,702       584,153       546,026       553,344       514,944  

Total assets

     675,893       602,008            675,893       665,943       630,960       633,314       602,008  

Total deposits

     199,737       184,518            199,737       203,138       198,576       198,352       184,518  

(1) Fully taxable-equivalent basis

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

27


Bank of America Corporation

Global Corporate and Investment Banking Business Results

 

(Dollars in millions)  
     Three Months Ended September 30, 2006  
     Total         

Business

Lending

   

Capital

Markets

and

Advisory

Services

   

Treasury

Services

   

ALM/

Other

 

Net interest income (1)

   $ 2,643           $ 1,131     $ 375     $ 979     $ 158  

Noninterest income

                  

Service charges

     710             130       29       509       42  

Investment and brokerage services

     252             5       205       8       34  

Investment banking income

     554             —         554       —         —    

Trading account profits

     711             10       657       13       31  

All other income

     1,145             128       48       195       774  
                                              

Total noninterest income

     3,372             273       1,493       725       881  
                                              

Total revenue (1)

     6,015             1,404       1,868       1,704       1,039  
                                              

Provision for credit losses

     22             53       (3 )     (1 )     (27 )

Gains on sales of debt securities

     14             3       8       —         3  

Noninterest expense

     2,965             548       1,366       810       241  
                                              

Income before income taxes (1) 

     3,042             806       513       895       828  

Income tax expense

     1,120             287       189       331       313  
                                              

Net income

   $ 1,922           $ 519     $ 324     $ 564     $ 515  
                                              

Shareholder value added

   $ 828           $ 145     $ 26     $ 387     $ 270  

Net interest yield (1) 

     1.65 %           1.92 %     n/m       2.90 %     n/m  

Return on average equity

     18.62             14.17       11.94 %     33.37       n/m  

Efficiency ratio (1) 

     49.30             39.02       73.14       47.51       n/m  

Period end - total assets (2) 

   $ 675,893           $ 241,257     $ 374,488     $ 158,711       n/m  
     Three Months Ended September 30, 2005  
     Total         

Business

Lending

   

Capital

Markets

and

Advisory

Services

   

Treasury

Services

   

ALM/

Other

 

Net interest income (1)

   $ 2,749           $ 1,199     $ 453     $ 861     $ 236  

Noninterest income

                  

Service charges

     671             127       34       468       42  

Investment and brokerage services

     267             5       217       7       38  

Investment banking income

     532             —         531       —         1  

Trading account profits

     571             5       516       12       38  

All other income

     499             171       93       173       62  
                                              

Total noninterest income

     2,540             308       1,391       660       181  
                                              

Total revenue (1)

     5,289             1,507       1,844       1,521       417  
                                              

Provision for credit losses

     12             113       (14 )     —         (87 )

Gains on sales of debt securities

     17             2       3       —         12  

Noninterest expense

     2,854             499       1,198       786       371  
                                              

Income before income taxes (1) 

     2,440             897       663       735       145  

Income tax expense

     889             328       241       265       55  
                                              

Net income

   $ 1,551           $ 569     $ 422     $ 470     $ 90  
                                              
                  

Shareholder value added

   $ 450           $ 180     $ 153     $ 303     $ (186 )

Net interest yield (1) 

     1.92 %           2.29 %     n/m       2.36 %     n/m  

Return on average equity

     14.91             14.93       17.14 %     29.21       n/m  

Efficiency ratio (1) 

     53.96             33.10       64.93       51.63       n/m  

Period end - total assets (2) 

   $ 602,008           $ 217,357     $ 319,954     $ 165,021       n/m  

(1) Fully taxable-equivalent basis
(2) Total Assets include asset allocations to match liabilities (i.e., deposits).

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

28


Bank of America Corporation

Global Corporate and Investment Banking Business Results

 

(Dollars in millions)  
     Nine Months Ended September 30, 2006  
     Total          Business
Lending
    Capital
Markets
and
Advisory
Services
    Treasury
Services
    ALM/
Other
 

Net interest income (1)

   $ 8,069           $ 3,476     $ 1,165     $ 2,901     $ 527  

Noninterest income

                  

Service charges

     2,100             387       90       1,489       134  

Investment and brokerage services

     801             14       658       24       105  

Investment banking income

     1,721             —         1,720       —         1  

Trading account profits

     2,591             44       2,360       36       151  

All other income

     2,011             397       199       536       879  
                                              

Total noninterest income

     9,224             842       5,027       2,085       1,270  
                                              

Total revenue (1)

     17,293             4,318       6,192       4,986       1,797  
                                              

Provision for credit losses

     102             88       8       —         6  

Gains on sales of debt securities

     34             8       12       —         14  

Noninterest expense

     8,953             1,603       4,074       2,430       846  
                                              

Income before income taxes (1) 

     8,272             2,635       2,122       2,556       959  

Income tax expense

     3,051             976       785       946       344  
                                              

Net income

   $ 5,221           $ 1,659     $ 1,337     $ 1,610     $ 615  
                                              

Shareholder value added

   $ 1,865           $ 432     $ 452     $ 1,053     $ (72 )

Net interest yield (1) 

     1.76 %           2.03 %     n/m       2.85 %     n/m  

Return on average equity

     16.50             13.88       16.54 %     30.27       n/m  

Efficiency ratio (1) 

     51.77             37.14       65.79       48.74       n/m  

Period end - total assets (2) 

   $ 675,893           $ 241,257     $ 374,488     $ 158,711       n/m  
     Nine Months Ended September 30, 2005  
     Total          Business
Lending
    Capital
Markets
and
Advisory
Services
    Treasury
Services
    ALM/
Other
 

Net interest income (1)

   $ 8,394           $ 3,633     $ 1,527     $ 2,411     $ 823  

Noninterest income

                  

Service charges

     1,977             361       81       1,412       123  

Investment and brokerage services

     775             13       651       21       90  

Investment banking income

     1,345             —         1,344       —         1  

Trading account profits

     1,463             (36 )     1,362       53       84  

All other income

     1,697             680       264       502       251  
                                              

Total noninterest income

     7,257             1,018       3,702       1,988       549  
                                              

Total revenue (1)

     15,651             4,651       5,229       4,399       1,372  
                                              

Provision for credit losses

     (388 )           (141 )     (14 )     (5 )     (228 )

Gains on sales of debt securities

     168             62       23       —         83  

Noninterest expense

     8,166             1,487       3,408       2,360       911  
                                              

Income before income taxes (1) 

     8,041             3,367       1,858       2,044       772  

Income tax expense

     2,933             1,206       665       736       326  
                                              

Net income

   $ 5,108           $ 2,161     $ 1,193     $ 1,308     $ 446  
                                              

Shareholder value added

   $ 1,820           $ 997     $ 399     $ 808     $ (384 )

Net interest yield (1) 

     2.06 %           2.43 %     n/m       2.28 %     n/m  

Return on average equity

     16.43             18.94       16.43 %     27.09       n/m  

Efficiency ratio (1) 

     52.17             31.97       65.18       53.64       n/m  

Period end - total assets (2) 

   $ 602,008           $ 217,357     $ 319,954     $ 165,021       n/m  

(1) Fully taxable-equivalent basis
(2) Total Assets include asset allocations to match liabilities (i.e., deposits).

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

29


Bank of America Corporation

Global Corporate and Investment Banking - Business Lending Key Indicators

 

(Dollars in millions)                                                              
    

Year-to-Date

September 30

         

Third

Quarter

2006

   

Second

Quarter

2006

   

First

Quarter

2006

   

Fourth

Quarter

2005

   

Third

Quarter

2005

 
     2006     2005               

Business lending revenue (1)

                      

Corporate lending (2)

   $ 548     $ 1,099           $ 194     $ 199     $ 155     $ 248     $ 247  

Commercial lending

     3,231       3,121             1,030       1,148       1,053       986       1,081  

Consumer indirect lending

     547       493             183       184       180       186       181  
                                                              

Total revenue

   $ 4,326     $ 4,713           $ 1,407     $ 1,531     $ 1,388     $ 1,420     $ 1,509  
                                                              

Business lending margin

                      

Corporate lending

     1.32 %     1.80 %           1.25 %     1.36 %     1.35 %     1.53 %     1.68 %

Commercial lending

     1.65       1.81             1.57       1.66       1.71       1.70       1.73  

Consumer indirect lending

     1.80       2.14             1.76       1.79       1.87       2.01       2.07  
 

Provision

                      

Corporate lending

   $ (107 )   $ (231 )         $ (21 )   $ (21 )   $ (65 )   $ 11     $ (52 )

Commercial lending

     (8 )     (89 )           9       (22 )     5       110       89  

Consumer indirect lending

     203       179             65       62       76       87       76  
                                                              

Total provision

   $ 88     $ (141 )         $ 53     $ 19     $ 16     $ 208     $ 113  
                                                              

Credit quality (% vs. loans) (3,4)

                      
Criticized assets                       

Corporate lending

   $ 1,477     $ 1,785           $ 1,477     $ 1,473     $ 1,593     $ 1,602     $ 1,785  
     1.97 %     2.60 %           1.97 %     1.96 %     2.23 %     2.27 %     2.60 %

Commercial lending

   $ 5,132     $ 4,647           $ 5,132     $ 4,609     $ 4,540     $ 4,633     $ 4,647  
     2.99 %     2.92 %           2.99 %     2.72 %     2.75 %     2.82 %     2.92 %
                                                              

Total

   $ 6,609     $ 6,432           $ 6,609     $ 6,082     $ 6,133     $ 6,235     $ 6,432  
     2.68 %     2.82 %           2.68 %     2.49 %     2.59 %     2.66 %     2.82 %
 
Nonperforming assets                       

Corporate lending

   $ 143     $ 230           $ 143     $ 165     $ 178     $ 182     $ 230  
     0.38 %     0.69 %           0.38 %     0.44 %     0.46 %     0.48 %     0.69 %

Commercial lending

   $ 402     $ 469           $ 402     $ 463     $ 474     $ 430     $ 469  
     0.28 %     0.36 %           0.28 %     0.33 %     0.34 %     0.31 %     0.36 %
                                                              

Total

   $ 545     $ 699           $ 545     $ 628     $ 652     $ 612     $ 699  
     0.30 %     0.42 %           0.30 %     0.35 %     0.37 %     0.35 %     0.42 %
 

Average loans and leases by product

                      

Commercial

   $ 110,375     $ 97,399           $ 112,370     $ 110,391     $ 108,319     $ 104,832     $ 99,844  

Leases

     20,301       20,300             20,379       20,425       20,096       19,792       20,089  

Foreign

     12,189       9,033             12,623       12,186       11,748       10,473       9,384  

Real estate

     34,927       32,086             35,195       34,803       34,778       34,209       32,883  

Consumer

     34,478       27,634             35,706       34,128       33,579       32,307       31,070  

Other

     2,221       2,450             2,167       2,216       2,279       2,334       2,392  
                                                              

Total average loans and leases

   $ 214,491     $ 188,902           $ 218,440     $ 214,149     $ 210,799     $ 203,947     $ 195,662  
                                                           

_________          

(1)    Includes Gains (Losses) on Sales of Debt Securities.

           

     

              

(2)    Total corporate lending revenue

   $ 548     $ 1,099           $ 194     $ 199     $ 155     $ 248     $ 247  

Less: impact of credit mitigation

     (159 )     215             (36 )     (39 )     (84 )     (36 )     (18 )
                                                              

Corporate lending revenues excluding credit mitigation

   $ 707     $ 884           $ 230     $ 238     $ 239     $ 284     $ 265  
                                                           

 

(3) Criticized assets correspond to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The criticized assets are on an end-of- period basis and are also shown as a percentage of total commercial utilized credit exposure, including loans and leases, stand by letters of credit, and financial guarantees, derivative assets, assets held-for-sale and commercial letters of credit.
(4) Nonperforming assets are on an end-of-period basis and defined as nonperforming loans and leases plus foreclosed properties. The nonperforming ratio is nonperforming assets divided by commercial loans and leases plus commercial foreclosed properties.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

30


Bank of America Corporation

Global Corporate and Investment Banking - Capital Markets and Advisory Services Key Indicators

 

(Dollars in millions)
     Year-to-Date
September 30
       

Third
Quarter

2006

  

Second
Quarter

2006

  

First
Quarter

2006

  

Fourth
Quarter

2005

  

Third
Quarter

2005

     2006    2005                 

Investment banking income

                        

Advisory fees

   $ 215    $ 222        $ 85    $ 54    $ 76    $ 73    $ 89

Debt underwriting

     1,273      933          417      476      380      390      348

Equity underwriting

     232      189          52      114      66      84      94
                                                    

Total investment banking income

     1,720      1,344          554      644      522      547      531
                                                    

Sales and trading

                        

Fixed income:

                        

Liquid products

     1,607      1,445          401      612      594      454      459

Credit products

     678      570          238      141      299      64      219

Structured products

     1,103      762          373      382      348      271      278
                                                    

Total fixed income

     3,388      2,777          1,012      1,135      1,241      789      956
                                                    

Equity income

     1,096      1,131          310      340      446      239      360
                                                    

Total sales and trading

     4,484      3,908          1,322      1,475      1,687      1,028      1,316
                                                    

Total capital markets and advisory services revenue (1)

   $ 6,204    $ 5,252        $ 1,876    $ 2,119    $ 2,209    $ 1,575    $ 1,847
                                                    
 

Balance sheet (average)

                        

Trading account securities

   $ 134,663    $ 128,690        $ 143,250    $ 130,272    $ 130,323    $ 136,058    $ 138,874

Reverse repurchases

     72,942      71,924          73,136      70,571      75,141      75,229      78,919

Securities borrowed

     96,640      86,838          98,375      102,759      88,682      79,993      85,377

Derivative assets

     22,260      22,156          21,608      25,259      19,894      21,918      21,437
                                                    

Trading-related assets

   $ 326,505    $ 309,608        $ 336,369    $ 328,861    $ 314,040    $ 313,198    $ 324,607
                                                    

Sales credits from secondary trading

                        

Liquid products

   $ 699    $ 616        $ 223    $ 246    $ 230    $ 197    $ 192

Credit products

     598      497          209      205      184      160      152

Structured products

     496      437          158      176      162      128      167

Equities

     620      615          193      206      221      211      201
                                                    

Total

   $ 2,413    $ 2,165        $ 783    $ 833    $ 797    $ 696    $ 712
                                                    

Volatility of product revenues - 1 std dev

                        

Liquid products

   $ 7.0    $ 10.0        $ 7.8    $ 6.6    $ 5.9    $ 7.0    $ 11.1

Credit products

     3.4      8.6          2.5      3.6      3.3      4.1      3.7

Structured products

     5.6      6.8          5.3      6.6      4.6      6.8      8.1

Equities

     2.0      4.0          1.0      2.7      2.0      1.3      6.0

Total

     10.1      16.7          9.3      10.9      8.8      12.2      16.0

(1) Includes gains (losses) on sales of debt securities.

 

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

31


Bank of America Corporation

 

Global Corporate & Investment Banking Strategic Progress

LOGO

Source: Thomson Financial except Syndicated Loans and Leveraged Loans from Loan Pricing Corporation.

Significant U.S. market share gains

 

    #1 in syndicated loans and leveraged loans, ranked by number of deals

 

    Top 5 rankings in:

Syndicated loans

Leveraged loans

High yield debt

Investment grade debt

Convertible debt

 

    M&A market share for YTD 05 includes MBNA; market share without MBNA is 9.3%

This information is preliminary and based on company data available at the time of the presentation.

 

32


Bank of America Corporation

Global Wealth and Investment Management Segment Results (1)

 

(Dollars in millions, except as noted)  
     Year-to-Date
September 30
         

Third
Quarter

2006

   

Second
Quarter

2006

   

First
Quarter

2006

   

Fourth
Quarter

2005

   

Third
Quarter

2005

 
     2006     2005               

Net interest income (2)

   $ 2,910     $ 2,814          $ 943     $ 986     $ 981     $ 1,001     $ 937  

Noninterest income

                   

Investment and brokerage services

     2,546       2,348            843       870       833       792       793  

All other income

     335       259            82       99       154       98       89  
                                                             

Total noninterest income

     2,881       2,607            925       969       987       890       882  
                                                             

Total revenue (2)

     5,791       5,421            1,868       1,955       1,968       1,891       1,819  
                                                             

Provision for credit losses

     (42 )     (8 )          (1 )     (40 )     (1 )     1       (1 )

Noninterest expense

     2,975       2,763            992       991       992       948       924  
                                                             

Income before income taxes (2)

     2,858       2,666            877       1,004       977       942       896  

Income tax expense

     1,057       959            324       370       363       336       328  
                                                             

Net income

   $ 1,801     $ 1,707          $ 553     $ 634     $ 614     $ 606     $ 568  
                                                             

Shareholder value added

   $ 1,009     $ 938          $ 291     $ 382     $ 336     $ 322     $ 310  

Net interest yield (2)

     3.34 %     3.13 %          3.22 %     3.39 %     3.41 %     3.38 %     3.10 %

Return on average equity

     23.34       22.68            21.68       25.76       22.69       21.95       22.51  

Efficiency ratio (2)

     51.37       50.97            53.12       50.68       50.39       50.12       50.79  
 

Balance Sheet

                   

Average

                   

Total loans and leases

   $ 60,496     $ 53,063          $ 62,271     $ 60,412     $ 58,766     $ 57,187     $ 55,260  

Total earning assets (3)

     116,490       120,304            116,124       116,571       116,784       117,534       119,974  

Total assets (3)

     124,234       128,095            123,796       124,345       124,571       125,312       127,805  

Total deposits

     113,906       118,174            113,529       114,195       114,001       114,859       118,135  

Allocated equity

     10,316       10,059            10,115       9,867       10,975       10,954       10,014  
 

Period End

                   

Total loans and leases

   $ 63,301     $ 56,147          $ 63,301     $ 61,602     $ 59,512     $ 58,380     $ 56,147  

Total earning assets (3)

     117,258       117,613            117,258       115,200       117,779       121,269       117,613  

Total assets (3)

     125,247       125,684            125,247       123,119       125,799       129,232       125,684  

Total deposits

     114,721       116,364            114,721       113,222       115,290       115,454       116,364  
 

Client Assets (in billions)

                   

Assets under management

   $ 517.1     $ 457.4          $ 517.1     $ 500.1     $ 493.9     $ 482.4     $ 457.4  

Client brokerage assets

     175.9       155.6            175.9       169.5       170.6       161.7       155.6  

Assets in custody

     93.1       96.1            93.1       95.2       97.0       94.2       96.1  
                                                             

Total client assets

   $ 786.1     $ 709.1          $ 786.1     $ 764.8     $ 761.5     $ 738.3     $ 709.1  
                                                             

(1) Global Wealth and Investment Management services clients through three primary businesses: The Private Bank, Columbia Management, and Premier Banking and Investments. In addition, ALM/Other includes the results of ALM activities and other Global Wealth and Investment Management businesses.
(2) Fully taxable-equivalent basis
(3) Total earning assets and Total Assets include asset allocations to match liabilities (i.e., deposits).

 

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

33


Bank of America Corporation

Global Wealth and Investment Management Business Results

 

(Dollars in millions)  
     Three Months Ended September 30, 2006  
     Total          Private
Bank
    Columbia
Management
   

Premier
Banking

and
Investments

    ALM/
Other (1)
 

Net interest income (2)

   $ 943           $ 242     $ (13 )   $ 490     $ 224  

Noninterest income

                  

Investment and brokerage services

     843             248       374       183       38  

All other income

     82             11       16       31       24  
                                              

Total noninterest income

     925             259       390       214       62  
                                              

Total revenue (2)

     1,868             501       377       704       286  
                                              

Provision for credit losses

     (1 )           (4 )     —         3       —    

Noninterest expense

     992             342       250       340       60  
                                              

Income before income taxes (2) 

     877             163       127       361       226  

Income tax expense

     324             60       47       133       84  
                                              

Net income

   $ 553           $ 103     $ 80     $ 228     $ 142  
                                              

Shareholder value added

   $ 291           $ 42     $ 43     $ 124     $ 82  

Net interest yield (2) 

     3.22 %           3.07 %     n/m       4.12 %     n/m  

Return on average equity

     21.68             17.51       19.00 %     23.36       n/m  

Efficiency ratio (2) 

     53.12             68.16       66.64       48.30       n/m  

Period end - total assets (3) 

   $ 125,247           $ 32,648     $ 2,980     $ 51,828       n/m  
     Three Months Ended September 30, 2005  
     Total          Private
Bank
    Columbia
Management
    Premier
Banking
and
Investments
    ALM/
Other (1)
 

Net interest income (2)

   $ 937           $ 252     $ (2 )   $ 444     $ 243  

Noninterest income

                  

Investment and brokerage services

     793             252       330       176       35  

All other income

     89             15       10       40       24  
                                              

Total noninterest income

     882             267       340       216       59  
                                              

Total revenue (2)

     1,819             519       338       660       302  
                                              

Provision for credit losses

     (1 )           (5 )     —         6       (2 )

Noninterest expense

     924             302       221       329       72  
                                              

Income before income taxes (2) 

     896             222       117       325       232  

Income tax expense

     328             80       42       117       89  
                                              

Net income

   $ 568           $ 142     $ 75     $ 208     $ 143  
                                              

Shareholder value added

   $ 310           $ 90     $ 35     $ 124     $ 61  

Net interest yield (2) 

     3.10 %           3.32 %     n/m       3.15 %     n/m  

Return on average equity

     22.51             27.16       16.88 %     26.29       n/m  

Efficiency ratio (2) 

     50.79             58.37       65.69       49.85       n/m  

Period end - total assets (3) 

   $ 125,684           $ 30,999     $ 2,928     $ 56,992       n/m  

(1) Reflects Premier Banking and Investments cumulative migration which increased average deposits $49.2 billion and $41.5 billion for the three months ended September 30, 2006 and 2005.
(2) Fully taxable-equivalent basis
(3) Total Assets include asset allocations to match liabilities (i.e., deposits).

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

34


Bank of America Corporation

Global Wealth and Investment Management Business Results

 

(Dollars in millions)  
     Nine Months Ended September 30, 2006  
     Total          Private
Bank
    Columbia
Management
   

Premier
Banking

and
Investments

    ALM/
Other (1)
 

Net interest income (2)

   $ 2,910           $ 746     $ (34 )   $ 1,509     $ 689  

Noninterest income

                  

Investment and brokerage services

     2,546             768       1,115       550       113  

All other income

     335             72       38       91       134  
                                              

Total noninterest income

     2,881             840       1,153       641       247  
                                              

Total revenue (2)

     5,791             1,586       1,119       2,150       936  
                                              

Provision for credit losses

     (42 )           (52 )     —         10       —    

Noninterest expense

     2,975             948       733       1,012       282  
                                              

Income before income taxes (2) 

     2,858             690       386       1,128       654  

Income tax expense

     1,057             255       143       417       242  
                                              

Net income

   $ 1,801           $ 435     $ 243     $ 711     $ 412  
                                              

Shareholder value added

   $ 1,009           $ 255     $ 139     $ 433     $ 182  

Net interest yield (2) 

     3.34 %           3.23 %     n/m       4.13 %     n/m  

Return on average equity

     23.34             24.66       20.06 %     27.10       n/m  

Efficiency ratio (2) 

     51.37             59.72       65.56       47.07       n/m  

Period end - total assets (3) 

   $ 125,247           $ 32,648     $ 2,980     $ 51,828       n/m  
     Nine Months Ended September 30, 2005  
     Total          Private
Bank
    Columbia
Management
    Premier
Banking
and
Investments
    ALM/
Other (1)
 

Net interest income (2)

   $ 2,814           $ 748     $ 7     $ 1,227     $ 832  

Noninterest income

                  

Investment and brokerage services

     2,348             781       965       502       100  

All other income

     259             48       23       112       76  
                                              

Total noninterest income

     2,607             829       988       614       176  
                                              

Total revenue (2)

     5,421             1,577       995       1,841       1,008  
                                              

Provision for credit losses

     (8 )           (20 )     —         14       (2 )

Noninterest expense

     2,763             918       669       956       220  
                                              

Income before income taxes (2) 

     2,666             679       326       871       790  

Income tax expense

     959             244       117       314       284  
                                              

Net income

   $ 1,707           $ 435     $ 209     $ 557     $ 506  
                                              

Shareholder value added

   $ 938           $ 268     $ 97     $ 307     $ 266  

Net interest yield (2) 

     3.13 %           3.36 %     n/m       2.93 %     n/m  

Return on average equity

     22.68             26.06       16.27 %     23.54       n/m  

Efficiency ratio (2) 

     50.97             58.21       67.24       51.93       n/m  

Period end - total assets (3) 

   $ 125,684           $ 30,999     $ 2,928     $ 56,992       n/m  

(1) Reflects Premier Banking and Investments cumulative migration which increased average deposits $47.8 billion and $37.7 billion for the nine months ended September 30, 2006 and 2005.
(2) Fully taxable-equivalent basis
(3) Total Assets include asset allocations to match liabilities (i.e., deposits).

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

35


Bank of America Corporation

Global Wealth and Investment Management - Key Indicators

 

(Dollars in millions, except as noted)  
    Year-to-Date
September 30
         

Third
Quarter

2006

   

Second
Quarter

2006

   

First
Quarter

2006

   

Fourth
Quarter

2005

   

Third
Quarter

2005

 
    2006     2005               

The Private Bank

                  

Recurring asset management fees

  $ 748     $ 765          $ 242     $ 260     $ 246     $ 247     $ 247  

Brokerage commissions

    20       16            6       8       6       5       5  
                                                            

Total Investment and Brokerage Services Income

  $ 768     $ 781          $ 248     $ 268     $ 252     $ 252     $ 252  
                                                            

Assets Under Management

  $ 166,570     $ 165,058          $ 166,570     $ 163,680     $ 165,996     $ 164,032     $ 165,058  

Columbia Management

                  

Recurring asset management fees

  $ 1,114     $ 973          $ 374     $ 377     $ 363     $ 336     $ 332  

Brokerage commissions

    1       (8 )          —         —         1       —         (2 )
                                                            

Total Investment and Brokerage Services Income

  $ 1,115     $ 965          $ 374     $ 377     $ 364     $ 336     $ 330  
                                                            

Assets Under Management

  $ 410,781     $ 332,364          $ 410,781     $ 394,355     $ 385,896     $ 361,179     $ 332,364  

 

Premier Banking and Investments

                  

 

Recurring asset management fees

  $ 137     $ 87          $ 50     $ 46     $ 41     $ 38     $ 33  

Brokerage commissions

    413       415            133       142       138       130       143  
                                                            

Total Investment and Brokerage Services Income

  $ 550     $ 502          $ 183     $ 188     $ 179     $ 168     $ 176  
                                                            

Assets Under Management

  $ 16,804     $ 12,554          $ 16,804     $ 16,116     $ 15,325     $ 13,723     $ 12,554  

Number of client managers

    2,292       2,032            2,292       2,196       2,173       2,104       2,032  

Number of financial advisors

    1,903       1,925            1,903       1,869       1,873       1,895       1,925  
                                                            

Total Premier Banking
and Investment Client Advisors

    4,195       3,957            4,195       4,065       4,046       3,999       3,957  
                                                            

Brokerage Revenue per
Financial Advisor (in thousands)

  $ 217     $ 213          $ 67     $ 76     $ 74     $ 69     $ 75  

All Other

                  

Recurring asset management fees

  $ 91     $ 75          $ 31     $ 30     $ 30     $ 28     $ 25  

Brokerage commissions

    22       25            7       7       8       8       10  
                                                            

Total Investment and Brokerage Services Income

  $ 113     $ 100          $ 38     $ 37     $ 38     $ 36     $ 35  
                                                            

Assets Under Management Elimination

  $ (77,100 )   $ (52,577 )        $ (77,100 )   $ (74,007 )   $ (73,287 )   $ (56,540 )   $ (52,577 )

Total Global Wealth and Investment Management

                  

Recurring asset management fees

  $ 2,090     $ 1,900          $ 697     $ 713     $ 680     $ 649     $ 637  

Brokerage commissions

    456       448            146       157       153       143       156  
                                                            

Total Investment and Brokerage Services Income

  $ 2,546     $ 2,348          $ 843     $ 870     $ 833     $ 792     $ 793  
                                                            

Assets Under Management

  $ 517,055     $ 457,399          $ 517,055     $ 500,144     $ 493,930     $ 482,394     $ 457,399  

($ in billions)

                  

Assets Under Management Rollforward

                  

Beginning Balance

  $ 482     $ 451          $ 500     $ 494     $ 482     $ 457     $ 442  

Net flows

    24       1            12       11       1       23       8  

Market valuation/other

    11       5            5       (5 )     11       2       7  
                                                            

Ending Balance

  $ 517     $ 457          $ 517     $ 500     $ 494     $ 482     $ 457  
                                                            

Assets Under Management Mix

                  

Money market/other

  $ 198     $ 162          $ 198     $ 192     $ 182     $ 185     $ 162  

Fixed income

    87       85            87       84       82       83       85  

Equity

    232       210            232       224       230       214       210  
                                                            

Total Assets Under Management

  $ 517     $ 457          $ 517     $ 500     $ 494     $ 482     $ 457  
                                                            

% of Assets Under Management in 4 and 5 Star Funds (1)

    61 %     53 %          61 %     59 %     56 %     56 %     53 %

% of Assets Under Management in 1st and 2nd Quartiles (2)

    88       77            88       85       82       78       77  

Client Brokerage Assets

                  

Total brokerage assets

  $ 176     $ 156          $ 176     $ 170     $ 171     $ 162     $ 156  

(1) Results shown are defined by Columbia Management’s calculation using Morningstar’s Overall Rating criteria for 4&5 star rating. The assets under management of the Columbia Funds that had a 4&5 star rating were totaled then divided by the assets under management of all the funds in the ranking.

 

   ©2006 by Morningstar, Inc. All rights reserved. The information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only be used for noncommercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future results.

 

(2) Results shown are defined by Columbia Management’s calculation of its percentage of assets under management in the top two quartiles of categories based on Morningstar (Equity categories, Lipper ( Fixed Income categories) (iMoneyNet Money Market funds). The category percentile rank was calculated by ranking the three year gross return of share classes within the categories stated above. The assets of the number of funds within the top 2 quartile results include both were added and then divided by Columbia Management’s total assets under management. Had fees been included, rankings would have been lower. Past performance is no guarantee of future results.

 

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

36


Bank of America Corporation

All Other Results (1)

 

(Dollars in millions)                                  
     Year-to-Date
September 30
         

Third
Quarter

2006

   

Second
Quarter

2006

   

First
Quarter

2006

   

Fourth
Quarter

2005

   

Third
Quarter

2005

 
     2006     2005               

Net interest income (2)

   $ 93     $ (296 )        $ 65     $ 33     $ (5 )   $ (13 )   $ 9  

Noninterest income

                   

Equity investment gains

     1,835       1,471            687       577       571       493       640  

All other income

     (648 )     (405 )          (117 )     (233 )     (298 )     (571 )     (674 )
                                                             

Total noninterest income

     1,187       1,066            570       344       273       (78 )     (34 )
                                                             

Total revenue (2)

     1,280       770            635       377       268       (91 )     (25 )
                                                             

Provision for credit losses

     (40 )     37            —         (25 )     (15 )     3       41  

Gains (losses) on sales of debt securities

     (497 )     847            (483 )     (6 )     (8 )     (23 )     13  

Merger and restructuring charges

     561       353            269       194       98       59       120  

All other noninterest expense

     58       240            (93 )     33       118       60       132  
                                                             

Income before income taxes (2)

     204       987            (24 )     169       59       (236 )     (305 )

Income tax expense (benefit)

     (7 )     169            (76 )     148       (79 )     (178 )     (185 )
                                                             

Net income

   $ 211     $ 818          $ 52     $ 21     $ 138     $ (58 )   $ (120 )
                                                             

Shareholder value added

   $ (483 )   $ (507 )        $ (215 )   $ (152 )   $ (116 )   $ (432 )   $ (614 )
 

Balance Sheet

                   

Average

                   

Total loans and leases

   $ 149,874     $ 122,963          $ 170,942     $ 144,490     $ 133,780     $ 128,152     $ 122,390  

Total earning assets

     200,384       137,418            220,767       193,519       186,490       159,023       151,211  

Total assets

     246,026       177,415            268,122       238,243       231,304       199,579       191,768  

Total deposits

     21,825       20,637            26,378       21,339       17,661       14,676       15,205  
 

Period End

                   

Total loans and leases

   $ 166,710     $ 129,878          $ 166,710     $ 170,850     $ 137,111     $ 131,123     $ 129,878  

Total earning assets

     175,271       159,754            175,271       217,314       174,313       156,002       159,754  

Total assets

     253,151       197,649            253,151       262,140       217,195       197,998       197,649  

Total deposits

     20,658       12,536            20,658       23,664       28,120       14,763       12,536  

(1) All Other consists primarily of equity investments, the residual impact of the allowance for credit losses and the cost allocation processes, Merger and Restructuring charges, intersegment eliminations, and the results of certain consumer finance and commercial lending businesses that are being liquidated.
(2) Fully taxable-equivalent basis

Components of Equity Investment Gains

 

(Dollars in millions)                            
     Three Months Ended September 30    Nine Months Ended September 30
     2006    2005    2006    2005

Principal Investing

   $ 604    $ 550    $ 1,347    $ 1,096

Corporate and Strategic Investments (1)

     83      90      488      375
                           

Total All Other equity investment gains

     687      640      1,835      1,471

Other equity investment gains (2)

     18      73      287      220
                           

Total consolidated equity investment gains

   $ 705    $ 713    $ 2,122    $ 1,691
                           

(1) Various other equity investments not attributable to the three business segments.
(2) Other equity investment gains include results from activities within the three business segments.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

37


Bank of America Corporation

Outstanding Loans and Leases

 

(Dollars in millions)  
     September 30
2006
   June 30
2006
   Increase (Decrease)
from 6/30/06
 

Consumer

        

Residential mortgage

   $ 218,918    $ 222,803    $ (3,885 )

Credit card - domestic

     60,130      62,990      (2,860 )

Credit card - foreign

     9,937      8,576      1,361  

Home equity lines

     71,577      68,856      2,721  

Direct/Indirect consumer

     62,985      59,281      3,704  

Other consumer (1)

     10,468      10,846      (378 )
                      

Total consumer

     434,015      433,352      663  
                      

Commercial

        

Commercial - domestic

     154,578      149,871      4,707  

Commercial real estate (2)

     37,121      37,262      (141 )

Commercial lease financing

     21,289      20,974      315  

Commercial - foreign

     22,146      26,494      (4,348 )
                      

Total commercial

     235,134      234,601      533  
                      

Total

   $ 669,149    $ 667,953    $ 1,196  
                      

(1) Includes foreign consumer of $7.6 billion and $7.9 billion; and consumer finance of $2.9 billion and $3.0 billion at September 30, 2006 and June 30, 2006.
(2) Includes domestic commercial real estate loans of $36.4 billion and $36.5 billion; and foreign commercial real estate loans of $768 million and $789 million at September 30, 2006 and June 30, 2006.

This information is preliminary and based on company data available at the time of the presentation.

 

38


Bank of America Corporation

Commercial Credit Exposure by Industry (1) 

 

(Dollars in millions)                                                                   
     Commercial Utilized     Commercial Unfunded     Total Commercial  
     September 30
2006
   June 30
2006
   Increase
(Decrease)
    September 30
2006
   June 30
2006
   Increase
(Decrease)
    September 30
2006
   June 30
2006
   Increase
(Decrease)
 

Real estate (2)

   $ 52,791    $ 51,133    $ 1,658     $ 22,815    $ 22,283    $ 532     $ 75,606    $ 73,416    $ 2,190  

Diversified financials

     27,074      27,179      (105 )     40,567      40,542      25       67,641      67,721      (80 )

Retailing

     28,177      27,852      325       15,496      15,268      228       43,673      43,120      553  

Government and public education

     21,589      20,351      1,238       16,095      15,364      731       37,684      35,715      1,969  

Capital goods

     16,332      16,137      195       18,810      18,103      707       35,142      34,240      902  

Banks

     24,607      24,429      178       10,078      9,045      1,033       34,685      33,474      1,211  

Consumer services

     18,421      18,210      211       12,243      12,353      (110 )     30,664      30,563      101  

Individuals and trusts

     18,720      18,515      205       10,134      9,913      221       28,854      28,428      426  

Materials

     15,710      17,426      (1,716 )     12,131      12,220      (89 )     27,841      29,646      (1,805 )

Healthcare equipment and services

     15,245      15,223      22       11,874      12,110      (236 )     27,119      27,333      (214 )

Commercial services and supplies

     14,243      13,257      986       8,118      7,634      484       22,361      20,891      1,470  

Food, beverage and tobacco

     10,675      11,394      (719 )     8,946      9,191      (245 )     19,621      20,585      (964 )

Energy

     9,516      9,009      507       8,509      8,470      39       18,025      17,479      546  

Utilities

     6,714      6,868      (154 )     11,007      10,169      838       17,721      17,037      684  

Transportation

     11,142      11,256      (114 )     5,997      5,579      418       17,139      16,835      304  

Insurance

     6,646      6,872      (226 )     10,101      10,685      (584 )     16,747      17,557      (810 )

Media

     6,379      5,842      537       8,763      9,821      (1,058 )     15,142      15,663      (521 )

Religious and social organizations

     7,817      7,668      149       2,747      2,564      183       10,564      10,232      332  

Consumer durables and apparel

     5,147      5,399      (252 )     4,367      4,274      93       9,514      9,673      (159 )

Telecommunication services

     3,577      3,844      (267 )     5,092      5,014      78       8,669      8,858      (189 )

Pharmaceuticals and biotechnology

     3,743      1,594      2,149       3,588      3,540      48       7,331      5,134      2,197  

Technology hardware and equipment

     2,820      2,903      (83 )     4,393      3,904      489       7,213      6,807      406  

Software and services

     2,364      2,537      (173 )     3,481      2,820      661       5,845      5,357      488  

Automobiles and components

     1,481      1,722      (241 )     3,683      3,509      174       5,164      5,231      (67 )

Food and staples retailing

     2,122      2,144      (22 )     1,960      2,272      (312 )     4,082      4,416      (334 )

Household and personal products

     672      896      (224 )     1,375      1,498      (123 )     2,047      2,394      (347 )

Semiconductors and semiconductor equipment

     1,150      703      447       554      566      (12 )     1,704      1,269      435  

Other

     5,531      4,098      1,433       455      383      72       5,986      4,481      1,505  
                                                                  

Total

   $ 340,405    $ 334,461    $ 5,944     $ 263,379    $ 259,094    $ 4,285     $ 603,784    $ 593,555    $ 10,229  
                                                                  

(1) Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held-for-sale and commercial letters of credit. Derivative assets are reported on a mark-to-market basis and have been reduced by the amount of cash collateral applied of $7.8 billion and $10.9 billion at September 30, 2006 and June 30, 2006. In addition to cash collateral, derivative assets are also collateralized by $7.7 billion and $8.2 billion of other marketable securities at September 30, 2006 and June 30, 2006 for which the credit risk has not been reduced.
(2) Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based upon the borrowers’ or counterparties’ primary business activity using operating cash flows and primary source of repayment as key factors.

This information is preliminary and based on company data available at the time of the presentation.

 

39


Bank of America Corporation

Net Credit Default Protection by Industry

                          

(Dollars in millions)

   September 30
2006
    June 30
2006
    Change  

Telecommunication services

   $ (1,149 )   $ (1,317 )   $ 168  

Media

     (971 )     (1,035 )     64  

Retailing

     (790 )     (895 )     105  

Real estate

     (785 )     (835 )     50  

Materials

     (649 )     (877 )     228  

Consumer services

     (573 )     (540 )     (33 )

Automobiles and components

     (518 )     (513 )     (5 )

Insurance

     (508 )     (965 )     457  

Utilities

     (450 )     (689 )     239  

Banks

     (415 )     (364 )     (51 )

Capital goods

     (412 )     (426 )     14  

Commercial services and supplies

     (407 )     (452 )     45  

Energy

     (373 )     (392 )     19  

Food, beverage and tobacco

     (348 )     (349 )     1  

Healthcare equipment and services

     (317 )     (382 )     65  

Pharmaceuticals and biotechnology

     (248 )     (258 )     10  

Transportation

     (222 )     (218 )     (4 )

Food and staples retailing

     (201 )     (233 )     32  

Consumer durables and apparel

     (190 )     (210 )     20  

Software and services

     (153 )     (136 )     (17 )

Diversified financials

     (45 )     (129 )     84  

Semiconductors and semiconductor equipment

     (45 )     (44 )     (1 )

Government and public education

     (30 )     (45 )     15  

Technology hardware and equipment

     (5 )     (65 )     60  

Individuals and trusts

     3       —         3  

Household and personal products

     75       75       —    

Other (1)

     661       1,751       (1,090 )
                        

Total

   $ (9,065 )   $ (9,543 )   $ 478  
                        

(1) Represents net credit default swaps (CDS) index positions, including tranched index exposure, which were principally investment grade. Indices are comprised of corporate credit derivatives that trade as an aggregate index value. Generally, they are grouped into portfolios based on specific ratings of credit quality or global geographic location. As of September 30, 2006 and June 30, 2006, CDS index positions were sold to reflect our current view of the credit markets.

This information is preliminary and based on company data available at the time of the presentation.

 

40


Bank of America Corporation

Net Credit Default Protection by Maturity Profile

 

   
     September 30
2006
    June 30
2006
 

Less than or equal to one year (1)

   2 %   (2 )%

Greater than one year and less than or equal to five years

   52     57  

Greater than five years

   46     45  
            

Total

   100 %   100 %
            

(1) In order to mitigate the cost of purchasing ideal levels of credit protection, credit exposure can be added by selling credit protection. In the table, the distribution of maturities for net credit protection purchased is shown as positive percentages and the distribution of maturities for net credit protection sold as negative percentages.

Net Credit Default Protection by Credit Exposure Debt Rating

 

(Dollars in millions)  
     September 30, 2006     June 30, 2006  

Ratings

   Net Notional     Percent     Net Notional     Percent  

AAA

   $ (13 )   0.1 %   $ (13 )   0.1 %

AA

     (125 )   1.4       (308 )   3.2  

A

     (2,699 )   29.8       (3,285 )   34.4  

BBB

     (4,946 )   54.6       (5,626 )   59.0  

BB

     (1,463 )   16.1       (1,425 )   14.9  

B

     (360 )   4.0       (405 )   4.3  

CCC and below

     (112 )   1.2       (186 )   2.0  

NR (1)

     653     (7.2 )     1,705     (17.9 )
                            

Total

   $ (9,065 )   100.0 %   $ (9,543 )   100.0 %
                            

(1) In addition to unrated names, “NR” includes $661 million and $1,751 million in net CDS index positions at September 30, 2006 and June 30, 2006. While index positions are principally investment grade, CDS indices include names in and across each of the ratings categories.

This information is preliminary and based on company data available at the time of the presentation.

 

41


Bank of America Corporation

Selected Emerging Markets (1) 

                                                           

(Dollars in millions)

   Loans and
Leases, and Loan
Commitments
   Other
Financing (2)
   Derivative
Assets (3)
   Securities/
Other
Investments (4)
   Total
Cross-
border
Exposure (5)
   Local
Country
Exposure
Net of Local
Liabilities (6)
  

Total

Foreign
Exposure
September 30,
2006

   Increase/
(Decrease)
from
June 30,
2006
 

Region/Country

                       

Asia Pacific

                       

China (7)

   $ 230    $ 70    $ 42    $ 3,167    $ 3,509    $ —      $ 3,509    $ (42 )

South Korea

     200      713      91      2,064      3,068      —        3,068      723  

India

     792      419      234      695      2,140      —        2,140      62  

Taiwan

     301      55      84      164      604      444      1,048      247  

Hong Kong

     367      51      23      374      815      —        815      (187 )

Singapore

     249      13      39      435      736      —        736      164  

Macau

     69      17      6      66      158      179      337      76  

Malaysia

     13      2      1      298      314      —        314      99  

Other Asia Pacific (8)

     4      21      9      317      351      —        351      (13 )
                                                         

Total Asia Pacific

     2,225      1,361      529      7,580      11,695      623      12,318      1,129  
                                                         

Latin America

                       

Mexico (9)

     958      257      128      2,502      3,845      —        3,845      304  

Brazil (10)

     838      106      23      1,980      2,947      426      3,373      763  

Chile

     239      16      —        1      256      329      585      (527 )

Argentina

     36      17      —        74      127      60      187      36  

Other Latin America (8)

     102      105      4      62      273      15      288      5  
                                                         

Total Latin America

     2,173      501      155      4,619      7,448      830      8,278      581  
                                                         

Central and Eastern Europe (8)

     26      30      14      110      180      —        180      (12 )
                                                         

Total

   $ 4,424    $ 1,892    $ 698    $ 12,309    $ 19,323    $ 1,453    $ 20,776    $ 1,698  
                                                         

(1) There is no generally accepted definition of emerging markets. The definition that we use includes all countries in Latin America excluding Cayman Islands and Bermuda; all countries in Asia Pacific excluding Japan, Australia and New Zealand; and all countries in Central and Eastern Europe excluding Greece.
(2) Includes acceptances, standby letters of credit, commercial letters of credit and formal guarantees.
(3) Derivative assets are reported on a mark-to-market basis and have been reduced by the amount of cash collateral applied of $18 million and $52 million at September 30, 2006 and June 30, 2006. There are no other marketable securities collateralizing derivatives assets as of September 30, 2006, and June 30, 2006.
(4) Generally, cross-border resale agreements are presented based on the domicile of the counterparty because the counterparty has the legal obligation for repayment except where the underlying securities are U.S. Treasuries, in which case the domicile is the U.S., and are therefore excluded from this presentation. For regulatory reporting under Federal Financial Institutions Examination Council (FFIEC) guidelines, cross-border resale agreements are presented based on the domicile of the issuer of the securities that are held as collateral.
(5) Cross-border exposure includes amounts payable to us by borrowers or counterparties with a country of residence other than the one in which the credit is booked, regardless of the currency in which the claim is denominated, consistent with FFIEC reporting rules.
(6) Local country exposure includes amounts payable to us by borrowers with a country of residence in which the credit is booked, regardless of the currency in which the claim is denominated. Management subtracts local funding or liabilities from local exposures as allowed by the FFIEC. Total amount of available local liabilities funding local country exposure at September 30, 2006 was $22.7 billion compared to $26.7 billion at June 30, 2006. Local liabilities at September 30, 2006 in Asia Pacific and Latin America were $16.9 billion and $5.8 billion, of which $7.5 billion were in Hong Kong, $6.2 billion in Singapore, $2.0 billion in Chile, $1.8 billion in Argentina $1.2 billion in Mexico, $897 million in South Korea, $871 million in India, $744 million in Uruguay, and $532 million in China. There were no other countries with available local liabilities funding local country exposure greater than $500 million.
(7) Securities/Other Investments include an investment of $3.0 billion in China Construction Bank.
(8) Other Asia Pacific, Other Latin America, and Central and Eastern Europe include countries each with total foreign exposure of less than $300 million.
(9) Securities/Other Investments include an investment of $2.2 billion in Grupo Financiero Santander Serfin.
(10) Securities/Other Investments include an investment of $1.9 billion in Banco Itau.

This information is preliminary and based on company data available at the time of the presentation.

 

42


Bank of America Corporation

Nonperforming Assets

(Dollars in millions)                                         
     September 30
2006
    June 30
2006
    March 31
2006
    December 31
2005
    September 30
2005
 

Residential mortgage

   $ 599     $ 537     $ 538     $ 570     $ 493  

Home equity lines

     175       134       121       117       88  

Direct/Indirect consumer

     37       35       34       37       32  

Other consumer

     86       99       92       61       75  
                                        

Total consumer

     897       805       785       785       688  
                                        

Commercial - domestic

     544       606       631       581       641  

Commercial real estate

     68       59       72       49       44  

Commercial lease financing

     35       43       53       62       61  

Commercial - foreign

     36       54       43       34       64  
                                        

Total commercial

     683       762       799       726       810  
                                        

Total nonperforming loans and leases

     1,580       1,567       1,584       1,511       1,498  

Foreclosed properties

     76       74       96       92       99  
                                        

Total nonperforming assets (1)

   $ 1,656     $ 1,641     $ 1,680     $ 1,603     $ 1,597  
                                        

 

Loans past due 90 days or more and still accruing

   $ 2,719     $ 2,433     $ 1,924     $ 1,455     $ 1,417  

Nonperforming assets / Total assets

     0.11 %     0.11 %     0.12 %     0.12 %     0.13 %

Nonperforming assets / Total loans, leases and foreclosed properties

     0.25       0.25       0.27       0.28       0.29  

Nonperforming loans and leases / Total loans and leases

     0.24       0.23       0.26       0.26       0.27  

Allowance for credit losses:

          

Allowance for loan and lease losses

   $ 8,872     $ 9,080     $ 9,067     $ 8,045     $ 8,326  

Reserve for unfunded lending commitments

     388       395       395       395       390  
                                        

Total

   $ 9,260     $ 9,475     $ 9,462     $ 8,440     $ 8,716  
                                        

 

Allowance for loan and lease losses / Total loans and leases

     1.33 %     1.36 %     1.46 %     1.40 %     1.50 %

Allowance for loan and lease losses / Total nonperforming loans and leases

     562       579       572       532       556  

Commercial utilized criticized exposure

   $ 7,553     $ 7,246     $ 7,262     $ 7,527     $ 7,632  

Commercial utilized criticized exposure / Commercial utilized credit exposure

     2.22 %     2.17 %     2.26 %     2.42 %     2.57 %

(1) Balances do not include $99 million, $114 million, $84 million, $69 million and $114 million of nonperforming commercial assets, primarily commercial loans held-for-sale, included in Other Assets at September 30, 2006, June 30, 2006, March 31, 2006, December 31, 2005, and September 30, 2005, respectively.

Loans are classified as domestic or foreign based upon the domicile of the borrower.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

43


Bank of America Corporation

Quarterly Net Charge-offs and Net Charge-off Ratios

(Dollars in millions)  
   

Third

Quarter

2006 (1)

   

Second

Quarter

2006 (1)

   

First

Quarter

2006 (1)

   

Fourth

Quarter

2005

   

Third

Quarter

2005

 
    Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent     Amount     Percent  

Residential mortgage

  $ 6     0.01 %   $ 14     0.03 %   $ 10     0.02 %   $ 5     0.01 %   $ 7     0.02 %

Credit card - domestic

    853     5.42       723     4.46       634     3.77       1,366     9.53       772     5.55  

Credit card - foreign

    70     2.94       57     2.72       19     0.94       —       —         —       —    

Home equity lines

    11     0.06       12     0.07       9     0.05       7     0.04       9     0.06  

Direct/Indirect consumer

    152     0.99       103     0.73       79     0.58       81     0.69       60     0.50  

Other consumer

    85     3.03       75     2.80       42     1.67       118     7.06       58     3.42  
                                                 

Total consumer

    1,177     1.07       984     0.97       793     0.82       1,577     1.79       906     1.06  
                                                 

Commercial - domestic

    111     0.29       50     0.14       52     0.14       97     0.28       54     0.17  

Commercial real estate

    2     0.02       1     —         (1 )   (0.01 )     (3 )   (0.03 )     2     0.02  

Commercial lease financing

    —       —         (17 )   (0.33 )     (23 )   (0.45 )     (12 )   (0.25 )     209     4.06  

Commercial - foreign

    (13 )   (0.21 )     5     0.08       1     0.01       (11 )   (0.21 )     (26 )   (0.55 )
                                                 

Total commercial

    100     0.17       39     0.07       29     0.05       71     0.13       239     0.47  
                                                 

Total net charge-offs

  $ 1,277     0.75     $ 1,023     0.65     $ 822     0.54     $ 1,648     1.16     $ 1,145     0.84  
                                                 

By Business Segment:

                   

Global Consumer and Small Business Banking

  $ 1,202     2.46 %   $ 981     2.10 %   $ 763     1.65 %   $ 1,535     4.08 %   $ 887     2.42 %

Global Corporate and Investment Banking

    63     0.10       62     0.10       50     0.09       87     0.15       240     0.44  

Global Wealth and Investment Management

    —       —         (43 )   (0.29 )     —       —         (1 )   (0.01 )     (1 )   (0.01 )

All Other

    12     0.03       23     0.06       9     0.03       27     0.09       19     0.06  
                                                 

Total net charge-offs

  $ 1,277     0.75     $ 1,023     0.65     $ 822     0.54     $ 1,648     1.16     $ 1,145     0.84  
                                                 

(1) Net charge-offs include the impact of SOP 03-3 which decreased net charge-offs on credit card - domestic $10 million, $7 million and $71 million, credit card - foreign $5 million, $6 million and $38 million, direct/indirect consumer $5 million, $7 million and $60 million, other consumer $6 million, $3 million and $28 million, and commercial - domestic $0 million, $4 million and $13 million for the quarters ended September 30, 2006, June 30, 2006 and March 31, 2006. Refer to Exhibit A on page 46 for a reconciliation of net charge-offs and net charge-off ratios to net charge-offs and net charge-off ratios excluding the impact of SOP 03-3.

Loans are classified as domestic or foreign based upon the domicile of the borrower.

LOGO

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

44


Bank of America Corporation

Year-to-Date Net Charge-offs and Net Charge-off Ratios

(Dollars in millions)  
     Nine Months Ended September 30  
     2006 (1)     2005  
     Amount     Percent     Amount     Percent  

Residential mortgage

   $ 30     0.02 %   $ 22     0.02 %

Credit card - domestic

     2,210     4.53       2,286     5.76  

Credit card - foreign

     146     2.24       —       —    

Home equity lines

     32     0.06       24     0.06  

Direct/Indirect consumer

     334     0.77       167     0.50  

Other consumer

     202     2.52       157     3.00  
                    

Total consumer

     2,954     0.96       2,656     1.07  
                    

Commercial - domestic

     213     0.19       73     0.08  

Commercial real estate

     2     0.01       3     0.01  

Commercial lease financing

     (40 )   (0.26 )     243     1.58  

Commercial - foreign

     (7 )   (0.04 )     (61 )   (0.45 )
                    

Total commercial

     168     0.10       258     0.18  
                    

Total net charge-offs

   $ 3,122     0.65     $ 2,914     0.74  
                    

By Business Segment:

        

Global Consumer and Small Business Banking

   $ 2,946     2.08 %   $ 2,565     2.41 %

Global Corporate and Investment Banking

     175     0.10       274     0.18  

Global Wealth and Investment Management

     (43 )   (0.10 )     4     0.01  

All Other

     44     0.04       71     0.08  
                    

Total net charge-offs

   $ 3,122     0.65     $ 2,914     0.74  
                    

(1) Net charge-offs include the impact of SOP 03-3 which decreased net charge-offs on credit card - domestic $88 million, credit card - foreign $49 million, direct/indirect consumer $72 million, other consumer $37 million and commercial - domestic $17 million for the nine months ended September 30, 2006. Refer to Exhibit A on page 46 for a reconciliation of net charge-offs and net charge-off ratios to net charge-offs and net charge-off ratios excluding the impact of SOP 03-3.

Loans are classified as domestic or foreign based upon the domicile of the borrower.

Information beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.

 

45


Exhibit A

Reconciliation of Net Charge-offs and Net Charge-off Ratios to Net Charge-offs and Net Charge-off Ratios Excluding the Impact of SOP 03-3


Net Charge-offs and Net Charge-off Ratios As Reported (1)


 

     Year-to-Date September 30, 2006     Third Quarter 2006     Second Quarter 2006     First Quarter 2006  
     Average Outstanding     Average Outstanding     Average Outstanding     Average Outstanding  

(Dollars in millions)

   Amount     Loans and Leases    Percent     Amount     Loans and Leases    Percent     Amount     Loans and Leases    Percent     Amount     Loans and Leases    Percent  

Residential mortgage

   $ 30     $ 201,777    0.02 %   $ 6     $ 222,889    0.01 %   $ 14     $ 197,228    0.03 %   $ 10     $ 184,796    0.02 %

Credit card - domestic

     2,210       65,198    4.53       853       62,508    5.42       723       64,980    4.46       634       68,169    3.77  

Credit card - foreign

     146       8,725    2.24       70       9,455    2.94       57       8,305    2.72       19       8,403    0.94  

Home equity lines

     32       67,173    0.06       11       70,075    0.06       12       67,182    0.07       9       64,198    0.05  

Direct/Indirect consumer

     334       57,724    0.77       152       61,361    0.99       103       56,715    0.73       79       55,025    0.58  

Other consumer

     202       10,748    2.52       85       11,075    3.03       75       10,804    2.80       42       10,357    1.67  
                                                                    

Total consumer

     2,954       411,345    0.96       1,177       437,363    1.07       984       405,214    0.97       793       390,948    0.82  
                                                                    

Commercial - domestic

     213       148,746    0.19       111       153,007    0.29       50       148,445    0.14       52       144,693    0.14  

Commercial real estate

     2       36,968    0.01       2       37,471    0.02       1       36,749    —         (1 )     36,676    (0.01 )

Commercial lease financing

     (40 )     20,762    (0.26 )     —         20,875    —         (17 )     20,896    (0.33 )     (23 )     20,512    (0.45 )

Commercial - foreign

     (7 )     24,088    (0.04 )     (13 )     24,761    (0.21 )     5       24,345    0.08       1       23,139    0.01  
                                                                    

Total commercial

     168       230,564    0.10       100       236,114    0.17       39       230,435    0.07       29       225,020    0.05  
                                                                    

Total net charge-offs

   $ 3,122     $ 641,909    0.65     $ 1,277     $ 673,477    0.75     $ 1,023     $ 635,649    0.65     $ 822     $ 615,968    0.54  
                                                                    

Impact of SOP 03-3 (2)

 

 

Residential mortgage

   $ —            $ —            $ —            $ —         

Credit card - domestic

     88            10            7            71       

Credit card - foreign

     49            5            6            38       

Home equity lines

     —              —              —              —         

Direct/Indirect consumer

     72            5            7            60       

Other consumer

     37            6            3            28       
                                                    

Total consumer

     246            26            23            197       
                                                    

Commercial - domestic

     17            —              4            13       

Commercial real estate

     —              —              —              —         

Commercial lease financing

     —              —              —              —         

Commercial - foreign

     —              —              —              —         
                                                    

Total commercial

     17            —              4            13       
                                                    

Total net charge-offs

   $ 263          $ 26          $ 27          $ 210       
                                                    

Net Charge-offs and Net Charge-off Ratios

 

                    

Excluding the Impact of SOP 03-3

 

 

Residential mortgage

   $ 30     $ 201,777    0.02 %   $ 6     $ 222,889    0.01 %   $ 14     $ 197,228    0.03 %   $ 10     $ 184,796    0.02 %

Credit card - domestic

     2,298       65,198    4.71       863       62,508    5.48       730       64,980    4.50       705       68,169    4.19  

Credit card - foreign

     195       8,725    2.98       75       9,455    3.13       63       8,305    3.02       57       8,403    2.77  

Home equity lines

     32       67,173    0.06       11       70,075    0.06       12       67,182    0.07       9       64,198    0.05  

Direct/Indirect consumer

     406       57,724    0.94       157       61,361    1.02       110       56,715    0.77       139       55,025    1.02  

Other consumer

     239       10,748    2.98       91       11,075    3.22       78       10,804    2.93       70       10,357    2.76  
                                                                    

Total consumer

     3,200       411,345    1.04       1,203       437,363    1.09       1,007       405,214    1.00       990       390,948    1.03  
                                                                    

Commercial - domestic

     230       148,746    0.21       111       153,007    0.29       54       148,445    0.15       65       144,693    0.18  

Commercial real estate

     2       36,968    0.01       2       37,471    0.02       1       36,749    —         (1 )     36,676    (0.01 )

Commercial lease financing

     (40 )     20,762    (0.26 )     —         20,875    —         (17 )     20,896    (0.33 )     (23 )     20,512    (0.45 )

Commercial - foreign

     (7 )     24,088    (0.03 )     (13 )     24,761    (0.21 )     5       24,345    0.08       1       23,139    0.01  
                                                                    

Total commercial

     185       230,564    0.11       100       236,114    0.17       43       230,435    0.07       42       225,020    0.08  
                                                                    

Total net charge-offs

   $ 3,385     $ 641,909    0.70     $ 1,303     $ 673,477    0.77     $ 1,050     $ 635,649    0.66     $ 1,032     $ 615,968    0.68  
                                                                    

(1) Percentage amounts are calculated as annualized net charge-offs divided by average outstanding loans and leases during the period for each loan category.
(2) The impact of SOP 03-3 on average outstanding loans and leases for the three months ended September 30, 2006, June 30, 2006 and March 31, 2006, and the nine months ended September 30, 2006 was immaterial.

This information is preliminary and based on company data available at the time of the presentation.

 

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