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Supplemental First Quarter 2006 Financial Information

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QuarterlyEarningsReports3

This document provides supplemental financial information for Bank of America for the first quarter of 2006. Some key highlights include: - Net income for the first quarter of 2006 was $4.986 billion, up from $3.574 billion in the fourth quarter of 2005. - Total revenue for the first quarter was $17.677 billion, up from $13.810 billion in the previous quarter. - Net interest income increased to $8.776 billion from $7.859 billion in the fourth quarter. - The return on average assets was 1.43% and the return on average common shareholders' equity was 15.44% for the first quarter.

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Supplemental Information First 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) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006 2005 2005 2005 2005 Income statement Net interest income $ 8,776 $ 7,859 $ 7,735 $ 7,637 $ 7,506 Noninterest income 8,901 5,951 6,416 6,955 6,032 Total revenue 17,677 13,810 14,151 14,592 13,538 Provision for credit losses 1,270 1,400 1,159 875 580 Gains on sales of debt securities 14 71 29 325 659 Noninterest expense 8,924 7,320 7,285 7,019 7,057 Income tax expense 2,511 1,587 1,895 2,366 2,167 Net income 4,986 3,574 3,841 4,657 4,393 Diluted earnings per common share 1.07 0.88 0.95 1.14 1.07 Average diluted common shares issued and outstanding 4,666,405 4,053,859 4,054,659 4,065,355 4,099,062 Dividends paid per common share $ 0.50 $ 0.50 $ 0.50 $ 0.45 $ 0.45 Performance ratios Return on average assets 1.43 % 1.09 % 1.18 % 1.46 % 1.49 % Return on average common shareholders' equity 15.44 14.21 15.09 18.93 17.97 At period end Book value per share of common stock $ 28.19 $ 25.32 $ 25.28 $ 25.16 $ 24.45 Market price per share of common stock: Closing price $ 45.54 $ 46.15 $ 42.10 $ 45.61 $ 44.10 High closing price for the period 47.08 46.99 45.98 47.08 47.08 Low closing price for the period 43.09 41.57 41.60 44.01 43.66 Market capitalization 208,633 184,586 168,950 183,202 177,958 Number of banking centers - domestic 5,786 5,873 5,844 5,880 5,889 Number of ATMs - domestic 16,716 16,785 16,714 16,687 16,798 Full-time equivalent employees 202,503 176,934 177,539 178,107 176,973 Certain prior period amounts have been reclassified to conform to current period presentation. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 1
Bank of America Corporation Supplemental Financial Data (Dollars in millions) Fully taxable-equivalent basis data First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006 2005 2005 2005 2005 Net interest income $ 9,040 $ 8,102 $ 7,933 $ 7,828 $ 7,706 Total revenue 17,941 14,053 14,349 14,783 13,738 Net interest yield 2.98 % 2.82 % 2.78 % 2.80 % 2.96 % Efficiency ratio 49.74 52.09 50.76 47.49 51.37 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 March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005. Reconciliation of net income to operating earnings First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006 2005 2005 2005 2005 Net income $ 4,986 $ 3,574 $ 3,841 $ 4,657 $ 4,393 Merger and restructuring charges 98 59 120 121 112 Related income tax benefit (37) (19) (40) (41) (37) Operating earnings $ 5,047 $ 3,614 $ 3,921 $ 4,737 $ 4,468 Reconciliation of average common shareholders' equity to average tangible common shareholders' equity Average common shareholders' equity $ 130,881 $ 99,677 $ 100,974 $ 98,558 $ 99,130 Average goodwill (66,094) (45,305) (45,297) (45,379) (45,346) Average tangible common shareholders' equity $ 64,787 $ 54,372 $ 55,677 $ 53,179 $ 53,784 Operating basis Diluted earnings per common share $1.08 $0.89 $0.97 $1.16 $1.09 Return on average assets 1.45 % 1.10 % 1.20 % 1.49 % 1.51 % Return on average common shareholders' equity 15.63 14.36 15.39 19.26 18.26 Return on average tangible common shareholders' equity 31.57 26.33 27.91 35.70 33.66 Efficiency ratio 49.19 51.66 49.92 46.67 50.55 Reconciliation of net income to shareholder value added Net income $ 4,986 $ 3,574 $ 3,841 $ 4,657 $ 4,393 Amortization of intangibles 440 196 201 204 208 Merger and restructuring charges, net of tax benefit 61 40 80 80 75 Capital charge (3,550) (2,764) (2,799) (2,703) (2,689) Shareholder value added $ 1,937 $ 1,046 $ 1,323 $ 2,238 $ 1,987 Certain prior period amounts have been reclassified to conform to current period presentation. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 2
Bank of America Corporation Consolidated Statement of Income (Dollars in millions, except per share information; shares in thousands) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006 2005 2005 2005 2005 Interest income Interest and fees on loans and leases $ 11,127 $ 9,536 $ 8,933 $ 8,294 $ 8,080 Interest and dividends on securities 3,014 2,815 2,793 2,796 2,533 Federal funds sold and securities purchased under agreements to resell 1,709 1,477 1,382 1,249 904 Trading account assets 1,548 1,585 1,550 1,426 1,182 Other interest income 727 605 547 502 437 Total interest income 18,125 16,018 15,205 14,267 13,136 Interest expense Deposits 3,007 2,476 2,471 2,363 2,182 Short-term borrowings 4,309 3,855 3,190 2,582 1,988 Trading account liabilities 517 619 707 611 427 Long-term debt 1,516 1,209 1,102 1,074 1,033 Total interest expense 9,349 8,159 7,470 6,630 5,630 Net interest income 8,776 7,859 7,735 7,637 7,506 Noninterest income Service charges 1,901 1,927 2,080 1,920 1,777 Investment and brokerage services 1,103 1,062 1,060 1,049 1,013 Mortgage banking income 137 215 180 189 221 Investment banking income 501 537 522 431 366 Equity investment gains 660 481 668 492 399 Card income 3,436 1,507 1,520 1,437 1,289 Trading account profits 1,074 299 557 222 685 Other income 89 (77) (171) 1,215 282 Total noninterest income 8,901 5,951 6,416 6,955 6,032 Total revenue 17,677 13,810 14,151 14,592 13,538 Provision for credit losses 1,270 1,400 1,159 875 580 Gains on sales of debt securities 14 71 29 325 659 Noninterest expense Personnel 4,813 3,845 3,837 3,671 3,701 Occupancy 701 699 638 615 636 Equipment 344 305 300 297 297 Marketing 575 265 307 346 337 Professional fees 218 283 254 216 177 Amortization of intangibles 440 196 201 204 208 Data processing 410 394 361 368 364 Telecommunications 220 219 206 196 206 Other general operating 1,105 1,055 1,061 985 1,019 Merger and restructuring charges 98 59 120 121 112 Total noninterest expense 8,924 7,320 7,285 7,019 7,057 Income before income taxes 7,497 5,161 5,736 7,023 6,560 Income tax expense 2,511 1,587 1,895 2,366 2,167 Net income $ 4,986 $ 3,574 $ 3,841 $ 4,657 $ 4,393 Net income available to common shareholders $ 4,981 $ 3,570 $ 3,836 $ 4,653 $ 4,388 Per common share information Earnings $ 1.08 $ 0.89 $ 0.96 $ 1.16 $ 1.09 Diluted earnings $ 1.07 $ 0.88 $ 0.95 $ 1.14 $ 1.07 Dividends paid $ 0.50 $ 0.50 $ 0.50 $ 0.45 $ 0.45 Average common shares issued and outstanding 4,609,481 3,996,024 4,000,573 4,005,356 4,032,550 Average diluted common shares issued and outstanding 4,666,405 4,053,859 4,054,659 4,065,355 4,099,062 Certain prior period amounts have been reclassified to conform to current period presentation. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 3
Bank of America Corporation Consolidated Balance Sheet March 31 December 31 March 31 (Dollars in millions) 2006 2005 2005 Assets Cash and cash equivalents $ 32,575 $ 36,999 $ 28,698 Time deposits placed and other short-term investments 11,157 12,800 11,223 Federal funds sold and securities purchased under agreements to resell 137,081 149,785 139,396 Trading account assets 117,181 131,707 124,960 Derivative assets 23,291 23,712 26,182 Securities: Available-for-sale 237,987 221,556 218,675 Held-to-maturity, at cost 86 47 275 Total securities 238,073 221,603 218,950 Loans and leases 619,525 573,791 529,457 Allowance for loan and lease losses (9,067) (8,045) (8,313) Loans and leases, net of allowance 610,458 565,746 521,144 Premises and equipment, net 9,267 7,786 7,531 Mortgage servicing rights ($2,925 measured at fair value at March 31, 2006) 3,070 2,806 2,667 Goodwill 66,271 45,354 45,378 Core deposit intangibles and other intangibles 10,681 3,194 3,679 Other assets 115,975 90,311 82,421 Total assets $ 1,375,080 $ 1,291,803 $ 1,212,229 Liabilities Deposits in domestic offices: Noninterest-bearing $ 179,358 $ 179,571 $ 166,499 Interest-bearing 415,769 384,155 403,534 Deposits in foreign offices: Noninterest-bearing 6,874 7,165 5,319 Interest-bearing 80,448 63,779 54,635 Total deposits 682,449 634,670 629,987 Federal funds purchased and securities sold under agreements to repurchase 236,919 240,655 187,652 Trading account liabilities 51,100 50,890 53,434 Derivative liabilities 15,541 15,000 15,363 Commercial paper and other short-term borrowings 99,389 116,269 93,440 Accrued expenses and other liabilities (includes $396, $395 and $394 of reserve for unfunded lending commitments) 37,078 31,938 35,319 Long-term debt 123,178 100,848 98,107 Total liabilities 1,245,654 1,190,270 1,113,302 Shareholders' equity Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 1,090,189 shares 271 271 271 Common stock and additional paid-in capital, $0.01 par value; authorized - 7,500,000,000 shares; issued and outstanding - 4,581,317,964; 3,999,688,491 and 4,035,318,509 shares 68,705 41,693 43,589 Retained earnings 70,204 67,552 61,309 Accumulated other comprehensive income (loss) (8,981) (7,556) (5,617) Other (773) (427) (625) Total shareholders' equity 129,426 101,533 98,927 Total liabilities and shareholders' equity $ 1,375,080 $ 1,291,803 $ 1,212,229 Certain prior period amounts have been reclassified to conform to current period presentation. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 4
Bank of America Corporation Capital Management (Dollars in millions) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006(1) 2005 2005 2005 2005 Tier 1 capital $ 83,201 $ 74,375 $ 73,572 $ 69,633 $ 67,593 Total capital 111,481 99,901 99,531 95,760 94,240 Risk-weighted assets 984,190 901,469 889,643 853,086 817,862 Tier 1 capital ratio 8.45 % 8.25 % 8.27 % 8.16 % 8.26 % Total capital ratio 11.33 11.08 11.19 11.23 11.52 Tangible equity ratio(2) 4.04 4.26 4.41 4.38 4.29 Tier 1 leverage ratio 6.18 5.91 5.90 5.66 5.86 (1) Preliminary data on risk-based capital (2) Tangible equity ratio equals shareholders' equity less goodwill, core deposit intangibles and other intangibles divided by total assets less goodwill, core deposit intangibles and other intangibles. Share Repurchase Program 88.5 million common shares were repurchased in the first quarter of 2006 as a part of an ongoing share repurchase program. 65.7 million shares remain outstanding under the 2005 authorized program. 670.1 million shares were issued in the first quarter of 2006, of which 631.1 million were issued in the MBNA acquisition. 0.0821 Capital Management 5,000 9.00% 1,575 0.09 0.085 4,300 0.082 0.0821 4,581 1,550 4,500 0.0814,047 4,035 4,017 0.0806 4,000 0.085 (Shares in millions) 0.0825 8.48% 0.0821 0.082 0.08 0.081 4,013 1,525 0.0806 3,800 4,035 4,017 4,013 4,000 4,000 8.45% 8.50% 8.48% 0.08 0.0773 1,500 8.26% 8.27% 8.25% 0.075 3,300 3,500 8.16% 0.075 1,475 1,450 3,000 2,800 8.00% 0.07 Dec-04 37865 Mar-05 Dec-04 Jun-05 Mar-05 Mar-05 37956 Sep-05 Jun-05 Jun-05 Dec-05 38047 Sep-05 Sep-05 38139 Mar-06* Dec-05* Shares outstanding at period end end Shares outstanding at period end Shares outstanding atat period Shares outstanding period end Tier 1 capital ratio ratio Tier Tier capital ratio Tiercapital ratio 1 1 1 capital *Preliminary data on risk-based capital Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 5
Bank of America Corporation Core Net Interest Income - Managed Basis (Dollars in millions) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006 2005 2005 2005 2005 Net Interest Income As reported (fully taxable-equivalent basis) $ 9,040 $8,102 $7,933 $7,828 $7,706 Impact of market based net interest income (410) (419) (449) (519) (546) Core net interest income 8,630 7,683 7,484 7,309 7,160 Impact of securitizations 1,897 11 52 106 155 Core net interest income - managed basis $10,527 $7,694 $7,536 $7,415 $7,315 Average Earning Assets As reported $1,219,611 $1,145,550 $1,137,629 $1,118,518 $1,044,891 Impact of market based earning assets (336,496) (329,237) (334,992) (338,490) (285,414) Core average earning assets 883,115 816,313 802,637 780,028 759,477 Impact of securitizations 96,268 6,447 7,827 10,773 11,151 Core average earning assets - managed basis $ 979,383 $ 822,760 $ 810,464 $ 790,801 $ 770,628 Net Interest Yield Contribution As reported (fully taxable-equivalent basis) 2.98 % 2.82 % 2.78 % 2.80 % 2.96 % Impact of market based activities 0.95 0.93 0.94 0.95 0.82 Core net interest yield on earning assets 3.93 3.75 3.72 3.75 3.78 Impact of securitizations 0.39 (0.02) (0.01) - 0.03 Core net interest yield on earning assets - managed basis 4.32 % 3.73 % 3.71 % 3.75 % 3.81 % Certain prior period amounts have been restated reflecting realignment of business segments. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 6
Bank of America Corporation Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis (Dollars in millions) First Quarter 2006 Fourth Quarter 2005 First Quarter 2005 Interest Interest Interest Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate Balance Expense Rate Earning assets Time deposits placed and other short-term investments $ 14,347 $ 139 3.92 % $ 14,619 $ 132 3.59 % $ 14,327 $ 101 2.87 % Federal funds sold and securities purchased under agreements to resell 174,711 1,709 3.94 165,908 1,477 3.55 147,855 904 2.46 Trading account assets 133,361 1,623 4.89 139,441 1,648 4.72 117,748 1,203 4.10 Securities 234,606 3,043 5.19 221,411 2,842 5.13 204,574 2,559 5.01 Loans and leases (1): Residential mortgage 184,796 2,524 5.48 178,764 2,424 5.42 178,075 2,415 5.44 Credit card - domestic 68,169 2,180 12.94 56,858 1,747 12.19 51,310 1,373 10.85 Credit card - foreign 8,403 287 13.86 - - - - - - Home equity lines 64,198 1,112 7.02 60,571 1,012 6.63 51,477 692 5.45 Direct/Indirect consumer 55,025 986 7.24 47,181 703 5.91 41,620 573 5.58 Other consumer(2) 10,357 272 10.59 6,653 184 11.01 7,305 158 8.75 Total consumer 390,948 7,361 7.60 350,027 6,070 6.90 329,787 5,211 6.38 Commercial - domestic 144,693 2,490 6.97 137,224 2,280 6.59 123,803 1,954 6.40 Commercial real estate 36,676 632 6.99 36,017 597 6.58 33,016 430 5.29 Commercial lease financing 20,512 247 4.82 20,178 241 4.79 20,745 260 5.01 Commercial - foreign 23,139 427 7.48 20,143 378 7.45 17,570 259 5.97 Total commercial 225,020 3,796 6.83 213,562 3,496 6.50 195,134 2,903 6.03 Total loans and leases 615,968 11,157 7.32 563,589 9,566 6.75 524,921 8,114 6.25 Other earning assets 46,618 718 6.22 40,582 596 5.83 35,466 455 5.19 Total earning assets (3) 1,219,611 18,389 6.08 1,145,550 16,261 5.65 1,044,891 13,336 5.14 Cash and cash equivalents 34,857 33,693 31,382 Other assets, less allowance for loan and lease losses 161,905 125,814 124,586 Total assets $1,416,373 $1,305,057 $1,200,859 Interest-bearing liabilities Domestic interest-bearing deposits: Savings $ 35,550 $ 76 0.87 % $ 35,535 $ 68 0.76 % $ 37,000 $ 35 0.39 % NOW and money market deposit accounts 227,606 908 1.62 224,122 721 1.28 233,392 651 1.13 Consumer CDs and IRAs 135,068 1,177 3.53 120,321 1,029 3.39 118,989 965 3.29 Negotiable CDs, public funds and other time deposits 8,551 70 3.30 5,085 27 2.13 10,291 95 3.73 Total domestic interest-bearing deposits 406,775 2,231 2.22 385,063 1,845 1.90 399,672 1,746 1.77 Foreign interest-bearing deposits (4): Banks located in foreign countries 30,116 424 5.71 24,451 355 5.77 22,085 260 4.77 Governments and official institutions 10,200 107 4.25 7,579 73 3.84 6,831 43 2.58 Time, savings and other 35,136 245 2.83 32,624 203 2.46 30,770 133 1.75 Total foreign interest-bearing deposits 75,452 776 4.17 64,654 631 3.87 59,686 436 2.96 Total interest-bearing deposits 482,227 3,007 2.53 449,717 2,476 2.18 459,358 2,182 1.93 Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings 399,896 4,309 4.37 364,140 3,855 4.20 276,483 1,988 2.91 Trading account liabilities 52,466 517 3.99 56,880 619 4.32 44,507 427 3.89 Long-term debt 117,018 1,516 5.18 99,601 1,209 4.85 96,167 1,033 4.30 Total interest-bearing liabilities (3) 1,051,607 9,349 3.60 970,338 8,159 3.34 876,515 5,630 2.60 Noninterest-bearing sources: Noninterest-bearing deposits 177,594 179,205 168,062 Other liabilities 56,019 55,566 56,881 Shareholders' equity 131,153 99,948 99,401 Total liabilities and shareholders' equity $1,416,373 $1,305,057 $1,200,859 Net interest spread 2.48 2.31 2.54 Impact of noninterest-bearing sources 0.50 0.51 0.42 Net interest income/yield on earning assets $9,040 2.98 % $8,102 2.82 % $7,706 2.96 % (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 $3,012 million in the first quarter of 2006, and $2,916 million and $3,362 million in the fourth and first quarters of 2005; foreign consumer of $7,328 million in the first quarter of 2006, and $3,682 million and $3,532 million in the fourth and first quarters of 2005; and consumer lease financing of $17 million in the first quarter of 2006, and $55 million and $411 million in the fourth and first quarters of 2005. (3) Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $8 million in the first quarter of 2006, and $29 million and $421 million in the fourth and first quarters of 2005. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities $136 million in the first quarter of 2006, and $254 million and $504 million in the fourth and first quarters of 2005. (4) Primarily consists of time deposits in denominations of $100,000 or more. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 7
Bank of America Corporation Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis - Isolating Derivative Hedge Income/Expense (1) (Dollars in millions) First Quarter 2006 Fourth Quarter 2005 First Quarter 2005 Interest Interest Interest Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate Balance Expense Rate Earning assets (2) Time deposits placed and other short-term investments $ 14,347 $ 142 4.01 % $ 14,619 $ 134 3.63 % $ 14,327 $ 102 2.88 % Federal funds sold and securities purchased under agreements to resell (2) 174,711 1,800 4.15 165,908 1,538 3.70 147,855 851 2.32 Trading account assets 133,361 1,623 4.89 139,441 1,648 4.72 117,748 1,203 4.10 Securities(2) 234,606 3,043 5.19 221,411 2,843 5.13 204,574 2,562 5.01 Loans and leases(3): Residential mortgage (2) 184,796 2,524 5.48 178,764 2,425 5.42 178,075 2,410 5.43 Credit card - domestic 68,169 2,180 12.94 56,858 1,747 12.19 51,310 1,373 10.85 Credit card - foreign 8,403 287 13.86 - - - - - - Home equity lines 64,198 1,112 7.02 60,571 1,012 6.63 51,477 692 5.45 Direct/Indirect consumer 55,025 986 7.24 47,181 703 5.91 41,620 573 5.58 (4) Other consumer 10,357 272 10.59 6,653 184 11.01 7,305 158 8.75 Total consumer 390,948 7,361 7.60 350,027 6,071 6.90 329,787 5,206 6.37 Commercial - domestic (2) 144,693 2,379 6.66 137,224 2,168 6.26 123,803 1,538 5.04 Commercial real estate 36,676 632 6.99 36,017 597 6.58 33,016 430 5.29 Commercial lease financing 20,512 247 4.82 20,178 241 4.79 20,745 260 5.01 Commercial - foreign(2) 23,139 426 7.46 20,143 377 7.44 17,570 257 5.94 Total commercial 225,020 3,684 6.63 213,562 3,383 6.29 195,134 2,485 5.16 Total loans and leases 615,968 11,045 7.24 563,589 9,454 6.67 524,921 7,691 5.92 Other earning assets (2) 46,618 728 6.31 40,582 615 6.01 35,466 506 5.77 Total earning assets - excluding hedge impact 1,219,611 18,381 6.07 1,145,550 16,232 5.64 1,044,891 12,915 4.98 Net derivative income (expense) on assets 8 29 421 Total earning assets - including hedge impact 1,219,611 18,389 6.08 1,145,550 16,261 5.65 1,044,891 13,336 5.14 Cash and cash equivalents 34,857 33,693 31,382 Other assets, less allowance for loan and lease losses 161,905 125,814 124,586 Total assets $1,416,373 $1,305,057 $1,200,859 Interest-bearing liabilities Domestic interest-bearing deposits: Savings $ 35,550 $ 76 0.87 % $ 35,535 $ 68 0.76 % $ 37,000 $ 35 0.39 % (2) NOW and money market deposit accounts 227,606 906 1.61 224,122 721 1.28 233,392 635 1.10 Consumer CDs and IRAs (2) 135,068 1,022 3.07 120,321 828 2.73 118,989 649 2.21 (2) Negotiable CDs, public funds and other time deposits 8,551 68 3.21 5,085 26 2.02 10,291 66 2.61 Total domestic interest-bearing deposits 406,775 2,072 2.07 385,063 1,643 1.69 399,672 1,385 1.41 (5) Foreign interest-bearing deposits : Banks located in foreign countries (2) 30,116 403 5.43 24,451 326 5.30 22,085 199 3.66 Governments and official institutions 10,200 107 4.25 7,579 73 3.84 6,831 43 2.58 Time, savings and other 35,136 245 2.83 32,624 203 2.46 30,770 133 1.75 Total foreign interest-bearing deposits 75,452 755 4.06 64,654 602 3.70 59,686 375 2.55 Total interest-bearing deposits 482,227 2,827 2.38 449,717 2,245 1.98 459,358 1,760 1.55 Federal funds purchased, securities sold under agreements (2) to repurchase and other short-term borrowings 399,896 4,375 4.43 364,140 3,789 4.13 276,483 1,837 2.69 Trading account liabilities 52,466 517 3.99 56,880 619 4.32 44,507 427 3.89 (2) Long-term debt 117,018 1,494 5.11 99,601 1,252 5.03 96,167 1,102 4.58 Total interest-bearing liabilities - excluding hedge impact 1,051,607 9,213 3.54 970,338 7,905 3.24 876,515 5,126 2.37 Net derivative (income) expense on liabilities 136 254 504 Total interest-bearing liabilities - including hedge impact 1,051,607 9,349 3.60 970,338 8,159 3.34 876,515 5,630 2.60 Noninterest-bearing sources: Noninterest-bearing deposits 177,594 179,205 168,062 Other liabilities 56,019 55,566 56,881 Shareholders' equity 131,153 99,948 99,401 Total liabilities and shareholders' equity $1,416,373 $1,305,057 $1,200,859 Net interest spread 2.53 2.40 2.61 Impact of noninterest-bearing sources 0.49 0.50 0.38 Net interest income/yield on earning assets - excluding hedge impact $9,168 3.02 $8,327 2.90 $7,789 2.99 Net impact of derivative hedge income/(expense) (128) (0.04) (225) (0.08) (83) (0.03) Net interest income/yield on earning assets $9,040 2.98 % $8,102 2.82 % $7,706 2.96 % (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 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 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 $(3) million, federal funds sold and securities purchased under agreements to resell $(91) million, commercial - domestic $111 million, commercial - foreign $1 million, and other earning assets $(10) million in the first 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 $2 million, consumer CDs and IRAs $155 million, negotiable CDs, public funds and other time deposits $2 million, banks located in foreign countries $21 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $(66) million and long-term debt $22 million in the first 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 $(2) million, federal funds sold and securities purchased under agreements to resell $(61) million, securities $(1) million, residential mortgage $(1) million, commercial - domestic $112 million, commercial - foreign $1 million, and other earning assets $(19) million in the fourth quarter of 2005. Interest expense excludes the impact of interest rate risk management contracts which increased(decreased) interest expense on consumer CDs and IRAs $201 million, negotiable CDs, public funds and other time deposits $1 million, banks located in foreign countries $29 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $66 million and long-term debt $(43) million in the three months ended December 31, 2005. 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 $53 million, securities $(3) million, residential mortgage $5 million, commercial - domestic $416 million, commercial - foreign $2 million, and other earning assets $(51) million in the first 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 $16 million, consumer CDs and IRAs $316 million, negotiable CDs, public funds and other time deposits $29 million, banks located in foreign countries $61 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $151 million and long-term debt $(69) million in the first 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 $3,012 million in the first quarter of 2006, and $2,916 million and $3,362 million in the fourth and first quarters of 2005; foreign consumer of $7,328 million in the first quarter of 2006, and $3,682 million and $3,532 million in the fourth and first quarters of 2005; and consumer lease financing of $17 million in the first quarter of 2006, and $55 million and $411 million in the fourth and first quarters of 2005. (5) Primarily consists of time deposits in denominations of $100,000 or more. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 8
Bank of America Corporation Business Segment View Net Income First Quarter 2006 Global Wealth and Investment Management 12% Global Corporate and Investment Banking 32% Global Consumer and Small Business Banking 54% All Other 2% Revenue* First Quarter 2006 Global Corporate and Investment Banking 31% Global Wealth and Investment Management 11% All Other Global Consumer and Small Business 1% Banking 57% *Fully taxable-equivalent basis Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 9
Bank of America Corporation (1) Global Consumer and Small Business Banking Segment Results (Dollars in millions; except as noted) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006 2005 2005 2005 2005 Net interest income(2) $5,400 $4,325 $4,224 $4,089 $4,215 Noninterest income Service charges 1,190 1,262 1,386 1,244 1,104 Mortgage banking income 205 271 230 237 274 Card income 3,268 1,325 1,344 1,272 1,144 All other income 138 97 70 57 116 Total noninterest income 4,801 2,955 3,030 2,810 2,638 Total revenue(2) 10,201 7,280 7,254 6,899 6,853 Provision for credit losses 1,257 1,299 1,107 1,155 710 Gains (losses) on sales of debt securities (1) (1) (1) - (1) Noninterest expense 4,693 3,325 3,271 3,346 3,238 Income before income taxes 4,250 2,655 2,875 2,398 2,904 Income tax expense 1,575 945 1,051 866 1,026 Net income $2,675 $1,710 $1,824 $1,532 $1,878 Shareholder value added $1,310 $970 $1,159 $874 $1,240 Net interest yield(2) 7.60 % 5.76 % 5.59 % 5.53 % 5.68 % Return on average equity 16.89 21.56 24.99 21.14 26.46 Efficiency ratio(2) 46.01 45.68 45.10 48.49 47.25 Balance Sheet Average Total loans and leases $187,048 $149,239 $145,714 $141,352 $139,644 Total earning assets 288,311 297,747 299,673 296,573 301,193 Total assets 349,802 325,538 326,940 323,087 329,620 Total deposits 330,204 306,579 310,485 306,471 300,562 Common equity/Allocated equity 64,228 31,463 28,964 29,077 28,789 Period End Total loans and leases $184,236 $151,646 $147,702 $143,074 $138,873 Total assets 359,131 331,244 327,004 324,786 331,769 Total deposits 340,437 306,064 313,022 307,340 306,089 Period End (in billions) Mortgage servicing portfolio $302.4 $296.8 $288.5 $280.1 $275.5 (1) Global Consumer and Small Business Banking's most significant product groups are Deposits, Mortgage, Card Services, Home Equity Line of Credit (HELOC), and Other. (2) Fully taxable-equivalent basis Certain prior period amounts have been reclassified among the segments to conform to the current period presentation. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 10
Bank of America Corporation Global Consumer and Small Business Banking Sub-Segment Results (Dollars in millions) First Quarter 2006 Card Total Deposits (1) Mortgage Services (2) HELOC ALM Other Net interest income(3) $5,400 $ 2,351 $ 146 $ 2,210 $ 334 $ 315 $ 44 Noninterest income Service charges 1,190 1,190 - - - - - Mortgage banking income 205 - 188 - 17 - - Card income 3,268 444 - 2,824 - - - All other income 138 - 13 244 - - (119) Total noninterest income 4,801 1,634 201 3,068 17 - (119) (3) Total revenue 10,201 3,985 347 5,278 351 315 (75) Provision for credit losses 1,257 28 4 1,166 12 - 47 Gains (losses) on sales of debt securities (1) - - - - - (1) Noninterest expense 4,693 2,206 229 2,016 154 - 88 Income before income taxes 4,250 1,751 114 2,096 185 315 (211) Income tax expense 1,575 649 42 777 69 117 (79) Net income $2,675 $ 1,102 $ 72 $ 1,319 $ 116 $ 198 $ (132) Shareholder value added $1,310 $784 $21 $578 $85 $ 198 $ (356) Net interest yield(3) 7.60 % 2.76 % 1.72 % 9.15 % 2.56 % - % n/m Return on average equity 16.89 29.93 15.25 14.07 40.08 - n/m Efficiency ratio(3) 46.01 55.37 65.86 38.19 43.79 - n/m (1) Deposit balances reflect Premier migration average impact of $45.4 billion for the three months ended March 31, 2006. (2) Card Services presented on a held view (3) Fully taxable-equivalent basis n/m = not meaningful Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 11
Bank of America Corporation Global Consumer and Small Business Banking Sub-Segment Results (Dollars in millions) First Quarter 2005 Card Total Deposits (1) Mortgage Services (2) HELOC ALM Other Net interest income(3) $4,215 $1,970 $ 192 $ 1,148 $ 304 $ 547 $ 54 Noninterest income Service charges 1,104 1,104 - - - - - Mortgage banking income 274 - 256 - 19 - (1) Card income 1,144 352 - 792 - - - All other income 116 - 4 55 - - 57 Total noninterest income 2,638 1,456 260 847 19 - 56 Total revenue(3) 6,853 3,426 452 1,995 323 547 110 Provision for credit losses 710 (7) 6 698 8 - 5 Gains (losses) on sales of debt securities (1) - - - - - (1) Noninterest expense 3,238 1,931 276 758 182 - 91 Income before income taxes 2,904 1,502 170 539 133 547 13 Income tax expense 1,026 530 60 190 47 194 5 Net income $1,878 $ 972 $ 110 $ 349 $ 86 $ 353 $ 8 Shareholder value added $1,240 $648 $66 $260 $57 $353 $(144) Net interest yield(3) 5.68 % 2.53 % 2.11 % 8.75 % 2.76 % - % n/m Return on average equity 26.46 26.13 26.87 26.62 33.06 - n/m Efficiency ratio(3) 47.25 56.37 61.17 37.97 56.35 - n/m (1) Deposit balances reflect Premier migration average impact of $32.4 billion for the three months ended March 31, 2006. (2) Card Services presented on a held view (3) Fully taxable-equivalent basis n/m = not meaningful Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 12
Bank of America Corporation Global Consumer and Small Business Banking - Key Indicators (Dollars in millions; except as noted) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006 2005 2005 2005 2005 Deposits Key Indicators Average Deposit Balances Checking $ 126,333 $ 125,491 $ 124,398 $ 123,022 $ 119,750 Savings 32,104 31,897 32,016 32,465 31,496 MMS 76,920 71,936 68,841 67,659 69,742 CD's & IRA's 84,836 69,375 76,779 75,720 73,147 Foreign and Other 10,011 7,880 8,451 7,605 6,427 Total $ 330,204 $ 306,579 $ 310,485 $ 306,471 $ 300,562 Average Cumulative Balances migrated to Premier Banking and Investments $ 45,367 $ 44,692 $ 41,672 $ 38,257 $ 32,407 Deposit Spreads (excludes noninterest costs) Checking 4.18 % 4.16 % 4.18 % 4.14 % 4.24 % Savings 3.36 3.53 3.78 4.02 4.38 MMS 2.53 2.69 2.02 1.64 1.43 CD's & IRA's 1.21 1.19 0.90 0.80 0.66 Foreign and Other 3.68 4.19 3.88 3.67 3.52 Total 2.93 3.06 2.82 2.72 2.70 Net New Checking (units in thousands) 603 426 635 629 611 Debit Purchase Volumes 38,618 39,623 36,008 35,049 31,230 Online Banking (End of Period) Active Accounts (units in thousands) 19,643 14,698 14,338 13,514 13,047 Active Billpay Accounts (units in thousands) 10,088 7,281 6,987 6,529 6,256 Credit Key Indicators Managed Card - North American Only Gross Interest Yield 12.65 % 12.25 % 11.99 % 11.58 % 11.27 % (1) Risk Adjusted Margin 10.26 4.25 8.36 7.72 7.63 Loss Rates 3.12 9.49 5.74 6.23 6.17 Average Outstandings (in millions) $ 143,463 $ 59,722 $ 59,762 $ 58,537 $ 58,145 New Account Growth (in thousands) 2,076 930 1,466 1,564 1,353 Purchase Volumes (in millions) 49,568 24,116 22,736 21,577 19,134 Delinquencies 30 Day 4.45 % 4.17 % 4.59 % 4.25 % 4.20 % 60 Day 2.99 2.93 3.21 2.88 2.98 12 month Lag Loss Rate 3.24 10.04 6.30 6.94 6.67 Mortgage Mortgage Originations (in millions) $ 17,262 $ 20,662 $ 27,511 $ 21,135 $ 17,471 Mortgage Servicing Rights Period End Balance (in millions) 2,925 2,658 2,623 2,233 2,547 Capitalized Mortgage Servicing Rights (% of loans serviced) 132 bps 122 bps 124 bps 108 bps 128 bps Mortgage Loans Serviced for Investors (in billions) $ 221 $ 218 $ 212 $ 207 $ 199 Home Equity Originations (in millions) 18,589 19,670 17,897 19,379 15,033 (1) Reflects margin and noninterest revenue, adjusted for loss rates. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 13
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information
Supplemental First Quarter 2006 Financial Information

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Supplemental First Quarter 2006 Financial Information

  • 1. Supplemental Information First 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.
  • 2. Bank of America Corporation Consolidated Financial Highlights (Dollars in millions, except per share information; shares in thousands) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006 2005 2005 2005 2005 Income statement Net interest income $ 8,776 $ 7,859 $ 7,735 $ 7,637 $ 7,506 Noninterest income 8,901 5,951 6,416 6,955 6,032 Total revenue 17,677 13,810 14,151 14,592 13,538 Provision for credit losses 1,270 1,400 1,159 875 580 Gains on sales of debt securities 14 71 29 325 659 Noninterest expense 8,924 7,320 7,285 7,019 7,057 Income tax expense 2,511 1,587 1,895 2,366 2,167 Net income 4,986 3,574 3,841 4,657 4,393 Diluted earnings per common share 1.07 0.88 0.95 1.14 1.07 Average diluted common shares issued and outstanding 4,666,405 4,053,859 4,054,659 4,065,355 4,099,062 Dividends paid per common share $ 0.50 $ 0.50 $ 0.50 $ 0.45 $ 0.45 Performance ratios Return on average assets 1.43 % 1.09 % 1.18 % 1.46 % 1.49 % Return on average common shareholders' equity 15.44 14.21 15.09 18.93 17.97 At period end Book value per share of common stock $ 28.19 $ 25.32 $ 25.28 $ 25.16 $ 24.45 Market price per share of common stock: Closing price $ 45.54 $ 46.15 $ 42.10 $ 45.61 $ 44.10 High closing price for the period 47.08 46.99 45.98 47.08 47.08 Low closing price for the period 43.09 41.57 41.60 44.01 43.66 Market capitalization 208,633 184,586 168,950 183,202 177,958 Number of banking centers - domestic 5,786 5,873 5,844 5,880 5,889 Number of ATMs - domestic 16,716 16,785 16,714 16,687 16,798 Full-time equivalent employees 202,503 176,934 177,539 178,107 176,973 Certain prior period amounts have been reclassified to conform to current period presentation. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 1
  • 3. Bank of America Corporation Supplemental Financial Data (Dollars in millions) Fully taxable-equivalent basis data First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006 2005 2005 2005 2005 Net interest income $ 9,040 $ 8,102 $ 7,933 $ 7,828 $ 7,706 Total revenue 17,941 14,053 14,349 14,783 13,738 Net interest yield 2.98 % 2.82 % 2.78 % 2.80 % 2.96 % Efficiency ratio 49.74 52.09 50.76 47.49 51.37 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 March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005. Reconciliation of net income to operating earnings First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006 2005 2005 2005 2005 Net income $ 4,986 $ 3,574 $ 3,841 $ 4,657 $ 4,393 Merger and restructuring charges 98 59 120 121 112 Related income tax benefit (37) (19) (40) (41) (37) Operating earnings $ 5,047 $ 3,614 $ 3,921 $ 4,737 $ 4,468 Reconciliation of average common shareholders' equity to average tangible common shareholders' equity Average common shareholders' equity $ 130,881 $ 99,677 $ 100,974 $ 98,558 $ 99,130 Average goodwill (66,094) (45,305) (45,297) (45,379) (45,346) Average tangible common shareholders' equity $ 64,787 $ 54,372 $ 55,677 $ 53,179 $ 53,784 Operating basis Diluted earnings per common share $1.08 $0.89 $0.97 $1.16 $1.09 Return on average assets 1.45 % 1.10 % 1.20 % 1.49 % 1.51 % Return on average common shareholders' equity 15.63 14.36 15.39 19.26 18.26 Return on average tangible common shareholders' equity 31.57 26.33 27.91 35.70 33.66 Efficiency ratio 49.19 51.66 49.92 46.67 50.55 Reconciliation of net income to shareholder value added Net income $ 4,986 $ 3,574 $ 3,841 $ 4,657 $ 4,393 Amortization of intangibles 440 196 201 204 208 Merger and restructuring charges, net of tax benefit 61 40 80 80 75 Capital charge (3,550) (2,764) (2,799) (2,703) (2,689) Shareholder value added $ 1,937 $ 1,046 $ 1,323 $ 2,238 $ 1,987 Certain prior period amounts have been reclassified to conform to current period presentation. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 2
  • 4. Bank of America Corporation Consolidated Statement of Income (Dollars in millions, except per share information; shares in thousands) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006 2005 2005 2005 2005 Interest income Interest and fees on loans and leases $ 11,127 $ 9,536 $ 8,933 $ 8,294 $ 8,080 Interest and dividends on securities 3,014 2,815 2,793 2,796 2,533 Federal funds sold and securities purchased under agreements to resell 1,709 1,477 1,382 1,249 904 Trading account assets 1,548 1,585 1,550 1,426 1,182 Other interest income 727 605 547 502 437 Total interest income 18,125 16,018 15,205 14,267 13,136 Interest expense Deposits 3,007 2,476 2,471 2,363 2,182 Short-term borrowings 4,309 3,855 3,190 2,582 1,988 Trading account liabilities 517 619 707 611 427 Long-term debt 1,516 1,209 1,102 1,074 1,033 Total interest expense 9,349 8,159 7,470 6,630 5,630 Net interest income 8,776 7,859 7,735 7,637 7,506 Noninterest income Service charges 1,901 1,927 2,080 1,920 1,777 Investment and brokerage services 1,103 1,062 1,060 1,049 1,013 Mortgage banking income 137 215 180 189 221 Investment banking income 501 537 522 431 366 Equity investment gains 660 481 668 492 399 Card income 3,436 1,507 1,520 1,437 1,289 Trading account profits 1,074 299 557 222 685 Other income 89 (77) (171) 1,215 282 Total noninterest income 8,901 5,951 6,416 6,955 6,032 Total revenue 17,677 13,810 14,151 14,592 13,538 Provision for credit losses 1,270 1,400 1,159 875 580 Gains on sales of debt securities 14 71 29 325 659 Noninterest expense Personnel 4,813 3,845 3,837 3,671 3,701 Occupancy 701 699 638 615 636 Equipment 344 305 300 297 297 Marketing 575 265 307 346 337 Professional fees 218 283 254 216 177 Amortization of intangibles 440 196 201 204 208 Data processing 410 394 361 368 364 Telecommunications 220 219 206 196 206 Other general operating 1,105 1,055 1,061 985 1,019 Merger and restructuring charges 98 59 120 121 112 Total noninterest expense 8,924 7,320 7,285 7,019 7,057 Income before income taxes 7,497 5,161 5,736 7,023 6,560 Income tax expense 2,511 1,587 1,895 2,366 2,167 Net income $ 4,986 $ 3,574 $ 3,841 $ 4,657 $ 4,393 Net income available to common shareholders $ 4,981 $ 3,570 $ 3,836 $ 4,653 $ 4,388 Per common share information Earnings $ 1.08 $ 0.89 $ 0.96 $ 1.16 $ 1.09 Diluted earnings $ 1.07 $ 0.88 $ 0.95 $ 1.14 $ 1.07 Dividends paid $ 0.50 $ 0.50 $ 0.50 $ 0.45 $ 0.45 Average common shares issued and outstanding 4,609,481 3,996,024 4,000,573 4,005,356 4,032,550 Average diluted common shares issued and outstanding 4,666,405 4,053,859 4,054,659 4,065,355 4,099,062 Certain prior period amounts have been reclassified to conform to current period presentation. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 3
  • 5. Bank of America Corporation Consolidated Balance Sheet March 31 December 31 March 31 (Dollars in millions) 2006 2005 2005 Assets Cash and cash equivalents $ 32,575 $ 36,999 $ 28,698 Time deposits placed and other short-term investments 11,157 12,800 11,223 Federal funds sold and securities purchased under agreements to resell 137,081 149,785 139,396 Trading account assets 117,181 131,707 124,960 Derivative assets 23,291 23,712 26,182 Securities: Available-for-sale 237,987 221,556 218,675 Held-to-maturity, at cost 86 47 275 Total securities 238,073 221,603 218,950 Loans and leases 619,525 573,791 529,457 Allowance for loan and lease losses (9,067) (8,045) (8,313) Loans and leases, net of allowance 610,458 565,746 521,144 Premises and equipment, net 9,267 7,786 7,531 Mortgage servicing rights ($2,925 measured at fair value at March 31, 2006) 3,070 2,806 2,667 Goodwill 66,271 45,354 45,378 Core deposit intangibles and other intangibles 10,681 3,194 3,679 Other assets 115,975 90,311 82,421 Total assets $ 1,375,080 $ 1,291,803 $ 1,212,229 Liabilities Deposits in domestic offices: Noninterest-bearing $ 179,358 $ 179,571 $ 166,499 Interest-bearing 415,769 384,155 403,534 Deposits in foreign offices: Noninterest-bearing 6,874 7,165 5,319 Interest-bearing 80,448 63,779 54,635 Total deposits 682,449 634,670 629,987 Federal funds purchased and securities sold under agreements to repurchase 236,919 240,655 187,652 Trading account liabilities 51,100 50,890 53,434 Derivative liabilities 15,541 15,000 15,363 Commercial paper and other short-term borrowings 99,389 116,269 93,440 Accrued expenses and other liabilities (includes $396, $395 and $394 of reserve for unfunded lending commitments) 37,078 31,938 35,319 Long-term debt 123,178 100,848 98,107 Total liabilities 1,245,654 1,190,270 1,113,302 Shareholders' equity Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 1,090,189 shares 271 271 271 Common stock and additional paid-in capital, $0.01 par value; authorized - 7,500,000,000 shares; issued and outstanding - 4,581,317,964; 3,999,688,491 and 4,035,318,509 shares 68,705 41,693 43,589 Retained earnings 70,204 67,552 61,309 Accumulated other comprehensive income (loss) (8,981) (7,556) (5,617) Other (773) (427) (625) Total shareholders' equity 129,426 101,533 98,927 Total liabilities and shareholders' equity $ 1,375,080 $ 1,291,803 $ 1,212,229 Certain prior period amounts have been reclassified to conform to current period presentation. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 4
  • 6. Bank of America Corporation Capital Management (Dollars in millions) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006(1) 2005 2005 2005 2005 Tier 1 capital $ 83,201 $ 74,375 $ 73,572 $ 69,633 $ 67,593 Total capital 111,481 99,901 99,531 95,760 94,240 Risk-weighted assets 984,190 901,469 889,643 853,086 817,862 Tier 1 capital ratio 8.45 % 8.25 % 8.27 % 8.16 % 8.26 % Total capital ratio 11.33 11.08 11.19 11.23 11.52 Tangible equity ratio(2) 4.04 4.26 4.41 4.38 4.29 Tier 1 leverage ratio 6.18 5.91 5.90 5.66 5.86 (1) Preliminary data on risk-based capital (2) Tangible equity ratio equals shareholders' equity less goodwill, core deposit intangibles and other intangibles divided by total assets less goodwill, core deposit intangibles and other intangibles. Share Repurchase Program 88.5 million common shares were repurchased in the first quarter of 2006 as a part of an ongoing share repurchase program. 65.7 million shares remain outstanding under the 2005 authorized program. 670.1 million shares were issued in the first quarter of 2006, of which 631.1 million were issued in the MBNA acquisition. 0.0821 Capital Management 5,000 9.00% 1,575 0.09 0.085 4,300 0.082 0.0821 4,581 1,550 4,500 0.0814,047 4,035 4,017 0.0806 4,000 0.085 (Shares in millions) 0.0825 8.48% 0.0821 0.082 0.08 0.081 4,013 1,525 0.0806 3,800 4,035 4,017 4,013 4,000 4,000 8.45% 8.50% 8.48% 0.08 0.0773 1,500 8.26% 8.27% 8.25% 0.075 3,300 3,500 8.16% 0.075 1,475 1,450 3,000 2,800 8.00% 0.07 Dec-04 37865 Mar-05 Dec-04 Jun-05 Mar-05 Mar-05 37956 Sep-05 Jun-05 Jun-05 Dec-05 38047 Sep-05 Sep-05 38139 Mar-06* Dec-05* Shares outstanding at period end end Shares outstanding at period end Shares outstanding atat period Shares outstanding period end Tier 1 capital ratio ratio Tier Tier capital ratio Tiercapital ratio 1 1 1 capital *Preliminary data on risk-based capital Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 5
  • 7. Bank of America Corporation Core Net Interest Income - Managed Basis (Dollars in millions) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006 2005 2005 2005 2005 Net Interest Income As reported (fully taxable-equivalent basis) $ 9,040 $8,102 $7,933 $7,828 $7,706 Impact of market based net interest income (410) (419) (449) (519) (546) Core net interest income 8,630 7,683 7,484 7,309 7,160 Impact of securitizations 1,897 11 52 106 155 Core net interest income - managed basis $10,527 $7,694 $7,536 $7,415 $7,315 Average Earning Assets As reported $1,219,611 $1,145,550 $1,137,629 $1,118,518 $1,044,891 Impact of market based earning assets (336,496) (329,237) (334,992) (338,490) (285,414) Core average earning assets 883,115 816,313 802,637 780,028 759,477 Impact of securitizations 96,268 6,447 7,827 10,773 11,151 Core average earning assets - managed basis $ 979,383 $ 822,760 $ 810,464 $ 790,801 $ 770,628 Net Interest Yield Contribution As reported (fully taxable-equivalent basis) 2.98 % 2.82 % 2.78 % 2.80 % 2.96 % Impact of market based activities 0.95 0.93 0.94 0.95 0.82 Core net interest yield on earning assets 3.93 3.75 3.72 3.75 3.78 Impact of securitizations 0.39 (0.02) (0.01) - 0.03 Core net interest yield on earning assets - managed basis 4.32 % 3.73 % 3.71 % 3.75 % 3.81 % Certain prior period amounts have been restated reflecting realignment of business segments. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 6
  • 8. Bank of America Corporation Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis (Dollars in millions) First Quarter 2006 Fourth Quarter 2005 First Quarter 2005 Interest Interest Interest Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate Balance Expense Rate Earning assets Time deposits placed and other short-term investments $ 14,347 $ 139 3.92 % $ 14,619 $ 132 3.59 % $ 14,327 $ 101 2.87 % Federal funds sold and securities purchased under agreements to resell 174,711 1,709 3.94 165,908 1,477 3.55 147,855 904 2.46 Trading account assets 133,361 1,623 4.89 139,441 1,648 4.72 117,748 1,203 4.10 Securities 234,606 3,043 5.19 221,411 2,842 5.13 204,574 2,559 5.01 Loans and leases (1): Residential mortgage 184,796 2,524 5.48 178,764 2,424 5.42 178,075 2,415 5.44 Credit card - domestic 68,169 2,180 12.94 56,858 1,747 12.19 51,310 1,373 10.85 Credit card - foreign 8,403 287 13.86 - - - - - - Home equity lines 64,198 1,112 7.02 60,571 1,012 6.63 51,477 692 5.45 Direct/Indirect consumer 55,025 986 7.24 47,181 703 5.91 41,620 573 5.58 Other consumer(2) 10,357 272 10.59 6,653 184 11.01 7,305 158 8.75 Total consumer 390,948 7,361 7.60 350,027 6,070 6.90 329,787 5,211 6.38 Commercial - domestic 144,693 2,490 6.97 137,224 2,280 6.59 123,803 1,954 6.40 Commercial real estate 36,676 632 6.99 36,017 597 6.58 33,016 430 5.29 Commercial lease financing 20,512 247 4.82 20,178 241 4.79 20,745 260 5.01 Commercial - foreign 23,139 427 7.48 20,143 378 7.45 17,570 259 5.97 Total commercial 225,020 3,796 6.83 213,562 3,496 6.50 195,134 2,903 6.03 Total loans and leases 615,968 11,157 7.32 563,589 9,566 6.75 524,921 8,114 6.25 Other earning assets 46,618 718 6.22 40,582 596 5.83 35,466 455 5.19 Total earning assets (3) 1,219,611 18,389 6.08 1,145,550 16,261 5.65 1,044,891 13,336 5.14 Cash and cash equivalents 34,857 33,693 31,382 Other assets, less allowance for loan and lease losses 161,905 125,814 124,586 Total assets $1,416,373 $1,305,057 $1,200,859 Interest-bearing liabilities Domestic interest-bearing deposits: Savings $ 35,550 $ 76 0.87 % $ 35,535 $ 68 0.76 % $ 37,000 $ 35 0.39 % NOW and money market deposit accounts 227,606 908 1.62 224,122 721 1.28 233,392 651 1.13 Consumer CDs and IRAs 135,068 1,177 3.53 120,321 1,029 3.39 118,989 965 3.29 Negotiable CDs, public funds and other time deposits 8,551 70 3.30 5,085 27 2.13 10,291 95 3.73 Total domestic interest-bearing deposits 406,775 2,231 2.22 385,063 1,845 1.90 399,672 1,746 1.77 Foreign interest-bearing deposits (4): Banks located in foreign countries 30,116 424 5.71 24,451 355 5.77 22,085 260 4.77 Governments and official institutions 10,200 107 4.25 7,579 73 3.84 6,831 43 2.58 Time, savings and other 35,136 245 2.83 32,624 203 2.46 30,770 133 1.75 Total foreign interest-bearing deposits 75,452 776 4.17 64,654 631 3.87 59,686 436 2.96 Total interest-bearing deposits 482,227 3,007 2.53 449,717 2,476 2.18 459,358 2,182 1.93 Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings 399,896 4,309 4.37 364,140 3,855 4.20 276,483 1,988 2.91 Trading account liabilities 52,466 517 3.99 56,880 619 4.32 44,507 427 3.89 Long-term debt 117,018 1,516 5.18 99,601 1,209 4.85 96,167 1,033 4.30 Total interest-bearing liabilities (3) 1,051,607 9,349 3.60 970,338 8,159 3.34 876,515 5,630 2.60 Noninterest-bearing sources: Noninterest-bearing deposits 177,594 179,205 168,062 Other liabilities 56,019 55,566 56,881 Shareholders' equity 131,153 99,948 99,401 Total liabilities and shareholders' equity $1,416,373 $1,305,057 $1,200,859 Net interest spread 2.48 2.31 2.54 Impact of noninterest-bearing sources 0.50 0.51 0.42 Net interest income/yield on earning assets $9,040 2.98 % $8,102 2.82 % $7,706 2.96 % (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 $3,012 million in the first quarter of 2006, and $2,916 million and $3,362 million in the fourth and first quarters of 2005; foreign consumer of $7,328 million in the first quarter of 2006, and $3,682 million and $3,532 million in the fourth and first quarters of 2005; and consumer lease financing of $17 million in the first quarter of 2006, and $55 million and $411 million in the fourth and first quarters of 2005. (3) Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $8 million in the first quarter of 2006, and $29 million and $421 million in the fourth and first quarters of 2005. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities $136 million in the first quarter of 2006, and $254 million and $504 million in the fourth and first quarters of 2005. (4) Primarily consists of time deposits in denominations of $100,000 or more. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 7
  • 9. Bank of America Corporation Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis - Isolating Derivative Hedge Income/Expense (1) (Dollars in millions) First Quarter 2006 Fourth Quarter 2005 First Quarter 2005 Interest Interest Interest Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate Balance Expense Rate Earning assets (2) Time deposits placed and other short-term investments $ 14,347 $ 142 4.01 % $ 14,619 $ 134 3.63 % $ 14,327 $ 102 2.88 % Federal funds sold and securities purchased under agreements to resell (2) 174,711 1,800 4.15 165,908 1,538 3.70 147,855 851 2.32 Trading account assets 133,361 1,623 4.89 139,441 1,648 4.72 117,748 1,203 4.10 Securities(2) 234,606 3,043 5.19 221,411 2,843 5.13 204,574 2,562 5.01 Loans and leases(3): Residential mortgage (2) 184,796 2,524 5.48 178,764 2,425 5.42 178,075 2,410 5.43 Credit card - domestic 68,169 2,180 12.94 56,858 1,747 12.19 51,310 1,373 10.85 Credit card - foreign 8,403 287 13.86 - - - - - - Home equity lines 64,198 1,112 7.02 60,571 1,012 6.63 51,477 692 5.45 Direct/Indirect consumer 55,025 986 7.24 47,181 703 5.91 41,620 573 5.58 (4) Other consumer 10,357 272 10.59 6,653 184 11.01 7,305 158 8.75 Total consumer 390,948 7,361 7.60 350,027 6,071 6.90 329,787 5,206 6.37 Commercial - domestic (2) 144,693 2,379 6.66 137,224 2,168 6.26 123,803 1,538 5.04 Commercial real estate 36,676 632 6.99 36,017 597 6.58 33,016 430 5.29 Commercial lease financing 20,512 247 4.82 20,178 241 4.79 20,745 260 5.01 Commercial - foreign(2) 23,139 426 7.46 20,143 377 7.44 17,570 257 5.94 Total commercial 225,020 3,684 6.63 213,562 3,383 6.29 195,134 2,485 5.16 Total loans and leases 615,968 11,045 7.24 563,589 9,454 6.67 524,921 7,691 5.92 Other earning assets (2) 46,618 728 6.31 40,582 615 6.01 35,466 506 5.77 Total earning assets - excluding hedge impact 1,219,611 18,381 6.07 1,145,550 16,232 5.64 1,044,891 12,915 4.98 Net derivative income (expense) on assets 8 29 421 Total earning assets - including hedge impact 1,219,611 18,389 6.08 1,145,550 16,261 5.65 1,044,891 13,336 5.14 Cash and cash equivalents 34,857 33,693 31,382 Other assets, less allowance for loan and lease losses 161,905 125,814 124,586 Total assets $1,416,373 $1,305,057 $1,200,859 Interest-bearing liabilities Domestic interest-bearing deposits: Savings $ 35,550 $ 76 0.87 % $ 35,535 $ 68 0.76 % $ 37,000 $ 35 0.39 % (2) NOW and money market deposit accounts 227,606 906 1.61 224,122 721 1.28 233,392 635 1.10 Consumer CDs and IRAs (2) 135,068 1,022 3.07 120,321 828 2.73 118,989 649 2.21 (2) Negotiable CDs, public funds and other time deposits 8,551 68 3.21 5,085 26 2.02 10,291 66 2.61 Total domestic interest-bearing deposits 406,775 2,072 2.07 385,063 1,643 1.69 399,672 1,385 1.41 (5) Foreign interest-bearing deposits : Banks located in foreign countries (2) 30,116 403 5.43 24,451 326 5.30 22,085 199 3.66 Governments and official institutions 10,200 107 4.25 7,579 73 3.84 6,831 43 2.58 Time, savings and other 35,136 245 2.83 32,624 203 2.46 30,770 133 1.75 Total foreign interest-bearing deposits 75,452 755 4.06 64,654 602 3.70 59,686 375 2.55 Total interest-bearing deposits 482,227 2,827 2.38 449,717 2,245 1.98 459,358 1,760 1.55 Federal funds purchased, securities sold under agreements (2) to repurchase and other short-term borrowings 399,896 4,375 4.43 364,140 3,789 4.13 276,483 1,837 2.69 Trading account liabilities 52,466 517 3.99 56,880 619 4.32 44,507 427 3.89 (2) Long-term debt 117,018 1,494 5.11 99,601 1,252 5.03 96,167 1,102 4.58 Total interest-bearing liabilities - excluding hedge impact 1,051,607 9,213 3.54 970,338 7,905 3.24 876,515 5,126 2.37 Net derivative (income) expense on liabilities 136 254 504 Total interest-bearing liabilities - including hedge impact 1,051,607 9,349 3.60 970,338 8,159 3.34 876,515 5,630 2.60 Noninterest-bearing sources: Noninterest-bearing deposits 177,594 179,205 168,062 Other liabilities 56,019 55,566 56,881 Shareholders' equity 131,153 99,948 99,401 Total liabilities and shareholders' equity $1,416,373 $1,305,057 $1,200,859 Net interest spread 2.53 2.40 2.61 Impact of noninterest-bearing sources 0.49 0.50 0.38 Net interest income/yield on earning assets - excluding hedge impact $9,168 3.02 $8,327 2.90 $7,789 2.99 Net impact of derivative hedge income/(expense) (128) (0.04) (225) (0.08) (83) (0.03) Net interest income/yield on earning assets $9,040 2.98 % $8,102 2.82 % $7,706 2.96 % (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 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 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 $(3) million, federal funds sold and securities purchased under agreements to resell $(91) million, commercial - domestic $111 million, commercial - foreign $1 million, and other earning assets $(10) million in the first 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 $2 million, consumer CDs and IRAs $155 million, negotiable CDs, public funds and other time deposits $2 million, banks located in foreign countries $21 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $(66) million and long-term debt $22 million in the first 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 $(2) million, federal funds sold and securities purchased under agreements to resell $(61) million, securities $(1) million, residential mortgage $(1) million, commercial - domestic $112 million, commercial - foreign $1 million, and other earning assets $(19) million in the fourth quarter of 2005. Interest expense excludes the impact of interest rate risk management contracts which increased(decreased) interest expense on consumer CDs and IRAs $201 million, negotiable CDs, public funds and other time deposits $1 million, banks located in foreign countries $29 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $66 million and long-term debt $(43) million in the three months ended December 31, 2005. 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 $53 million, securities $(3) million, residential mortgage $5 million, commercial - domestic $416 million, commercial - foreign $2 million, and other earning assets $(51) million in the first 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 $16 million, consumer CDs and IRAs $316 million, negotiable CDs, public funds and other time deposits $29 million, banks located in foreign countries $61 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $151 million and long-term debt $(69) million in the first 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 $3,012 million in the first quarter of 2006, and $2,916 million and $3,362 million in the fourth and first quarters of 2005; foreign consumer of $7,328 million in the first quarter of 2006, and $3,682 million and $3,532 million in the fourth and first quarters of 2005; and consumer lease financing of $17 million in the first quarter of 2006, and $55 million and $411 million in the fourth and first quarters of 2005. (5) Primarily consists of time deposits in denominations of $100,000 or more. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 8
  • 10. Bank of America Corporation Business Segment View Net Income First Quarter 2006 Global Wealth and Investment Management 12% Global Corporate and Investment Banking 32% Global Consumer and Small Business Banking 54% All Other 2% Revenue* First Quarter 2006 Global Corporate and Investment Banking 31% Global Wealth and Investment Management 11% All Other Global Consumer and Small Business 1% Banking 57% *Fully taxable-equivalent basis Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 9
  • 11. Bank of America Corporation (1) Global Consumer and Small Business Banking Segment Results (Dollars in millions; except as noted) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006 2005 2005 2005 2005 Net interest income(2) $5,400 $4,325 $4,224 $4,089 $4,215 Noninterest income Service charges 1,190 1,262 1,386 1,244 1,104 Mortgage banking income 205 271 230 237 274 Card income 3,268 1,325 1,344 1,272 1,144 All other income 138 97 70 57 116 Total noninterest income 4,801 2,955 3,030 2,810 2,638 Total revenue(2) 10,201 7,280 7,254 6,899 6,853 Provision for credit losses 1,257 1,299 1,107 1,155 710 Gains (losses) on sales of debt securities (1) (1) (1) - (1) Noninterest expense 4,693 3,325 3,271 3,346 3,238 Income before income taxes 4,250 2,655 2,875 2,398 2,904 Income tax expense 1,575 945 1,051 866 1,026 Net income $2,675 $1,710 $1,824 $1,532 $1,878 Shareholder value added $1,310 $970 $1,159 $874 $1,240 Net interest yield(2) 7.60 % 5.76 % 5.59 % 5.53 % 5.68 % Return on average equity 16.89 21.56 24.99 21.14 26.46 Efficiency ratio(2) 46.01 45.68 45.10 48.49 47.25 Balance Sheet Average Total loans and leases $187,048 $149,239 $145,714 $141,352 $139,644 Total earning assets 288,311 297,747 299,673 296,573 301,193 Total assets 349,802 325,538 326,940 323,087 329,620 Total deposits 330,204 306,579 310,485 306,471 300,562 Common equity/Allocated equity 64,228 31,463 28,964 29,077 28,789 Period End Total loans and leases $184,236 $151,646 $147,702 $143,074 $138,873 Total assets 359,131 331,244 327,004 324,786 331,769 Total deposits 340,437 306,064 313,022 307,340 306,089 Period End (in billions) Mortgage servicing portfolio $302.4 $296.8 $288.5 $280.1 $275.5 (1) Global Consumer and Small Business Banking's most significant product groups are Deposits, Mortgage, Card Services, Home Equity Line of Credit (HELOC), and Other. (2) Fully taxable-equivalent basis Certain prior period amounts have been reclassified among the segments to conform to the current period presentation. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 10
  • 12. Bank of America Corporation Global Consumer and Small Business Banking Sub-Segment Results (Dollars in millions) First Quarter 2006 Card Total Deposits (1) Mortgage Services (2) HELOC ALM Other Net interest income(3) $5,400 $ 2,351 $ 146 $ 2,210 $ 334 $ 315 $ 44 Noninterest income Service charges 1,190 1,190 - - - - - Mortgage banking income 205 - 188 - 17 - - Card income 3,268 444 - 2,824 - - - All other income 138 - 13 244 - - (119) Total noninterest income 4,801 1,634 201 3,068 17 - (119) (3) Total revenue 10,201 3,985 347 5,278 351 315 (75) Provision for credit losses 1,257 28 4 1,166 12 - 47 Gains (losses) on sales of debt securities (1) - - - - - (1) Noninterest expense 4,693 2,206 229 2,016 154 - 88 Income before income taxes 4,250 1,751 114 2,096 185 315 (211) Income tax expense 1,575 649 42 777 69 117 (79) Net income $2,675 $ 1,102 $ 72 $ 1,319 $ 116 $ 198 $ (132) Shareholder value added $1,310 $784 $21 $578 $85 $ 198 $ (356) Net interest yield(3) 7.60 % 2.76 % 1.72 % 9.15 % 2.56 % - % n/m Return on average equity 16.89 29.93 15.25 14.07 40.08 - n/m Efficiency ratio(3) 46.01 55.37 65.86 38.19 43.79 - n/m (1) Deposit balances reflect Premier migration average impact of $45.4 billion for the three months ended March 31, 2006. (2) Card Services presented on a held view (3) Fully taxable-equivalent basis n/m = not meaningful Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 11
  • 13. Bank of America Corporation Global Consumer and Small Business Banking Sub-Segment Results (Dollars in millions) First Quarter 2005 Card Total Deposits (1) Mortgage Services (2) HELOC ALM Other Net interest income(3) $4,215 $1,970 $ 192 $ 1,148 $ 304 $ 547 $ 54 Noninterest income Service charges 1,104 1,104 - - - - - Mortgage banking income 274 - 256 - 19 - (1) Card income 1,144 352 - 792 - - - All other income 116 - 4 55 - - 57 Total noninterest income 2,638 1,456 260 847 19 - 56 Total revenue(3) 6,853 3,426 452 1,995 323 547 110 Provision for credit losses 710 (7) 6 698 8 - 5 Gains (losses) on sales of debt securities (1) - - - - - (1) Noninterest expense 3,238 1,931 276 758 182 - 91 Income before income taxes 2,904 1,502 170 539 133 547 13 Income tax expense 1,026 530 60 190 47 194 5 Net income $1,878 $ 972 $ 110 $ 349 $ 86 $ 353 $ 8 Shareholder value added $1,240 $648 $66 $260 $57 $353 $(144) Net interest yield(3) 5.68 % 2.53 % 2.11 % 8.75 % 2.76 % - % n/m Return on average equity 26.46 26.13 26.87 26.62 33.06 - n/m Efficiency ratio(3) 47.25 56.37 61.17 37.97 56.35 - n/m (1) Deposit balances reflect Premier migration average impact of $32.4 billion for the three months ended March 31, 2006. (2) Card Services presented on a held view (3) Fully taxable-equivalent basis n/m = not meaningful Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 12
  • 14. Bank of America Corporation Global Consumer and Small Business Banking - Key Indicators (Dollars in millions; except as noted) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2006 2005 2005 2005 2005 Deposits Key Indicators Average Deposit Balances Checking $ 126,333 $ 125,491 $ 124,398 $ 123,022 $ 119,750 Savings 32,104 31,897 32,016 32,465 31,496 MMS 76,920 71,936 68,841 67,659 69,742 CD's & IRA's 84,836 69,375 76,779 75,720 73,147 Foreign and Other 10,011 7,880 8,451 7,605 6,427 Total $ 330,204 $ 306,579 $ 310,485 $ 306,471 $ 300,562 Average Cumulative Balances migrated to Premier Banking and Investments $ 45,367 $ 44,692 $ 41,672 $ 38,257 $ 32,407 Deposit Spreads (excludes noninterest costs) Checking 4.18 % 4.16 % 4.18 % 4.14 % 4.24 % Savings 3.36 3.53 3.78 4.02 4.38 MMS 2.53 2.69 2.02 1.64 1.43 CD's & IRA's 1.21 1.19 0.90 0.80 0.66 Foreign and Other 3.68 4.19 3.88 3.67 3.52 Total 2.93 3.06 2.82 2.72 2.70 Net New Checking (units in thousands) 603 426 635 629 611 Debit Purchase Volumes 38,618 39,623 36,008 35,049 31,230 Online Banking (End of Period) Active Accounts (units in thousands) 19,643 14,698 14,338 13,514 13,047 Active Billpay Accounts (units in thousands) 10,088 7,281 6,987 6,529 6,256 Credit Key Indicators Managed Card - North American Only Gross Interest Yield 12.65 % 12.25 % 11.99 % 11.58 % 11.27 % (1) Risk Adjusted Margin 10.26 4.25 8.36 7.72 7.63 Loss Rates 3.12 9.49 5.74 6.23 6.17 Average Outstandings (in millions) $ 143,463 $ 59,722 $ 59,762 $ 58,537 $ 58,145 New Account Growth (in thousands) 2,076 930 1,466 1,564 1,353 Purchase Volumes (in millions) 49,568 24,116 22,736 21,577 19,134 Delinquencies 30 Day 4.45 % 4.17 % 4.59 % 4.25 % 4.20 % 60 Day 2.99 2.93 3.21 2.88 2.98 12 month Lag Loss Rate 3.24 10.04 6.30 6.94 6.67 Mortgage Mortgage Originations (in millions) $ 17,262 $ 20,662 $ 27,511 $ 21,135 $ 17,471 Mortgage Servicing Rights Period End Balance (in millions) 2,925 2,658 2,623 2,233 2,547 Capitalized Mortgage Servicing Rights (% of loans serviced) 132 bps 122 bps 124 bps 108 bps 128 bps Mortgage Loans Serviced for Investors (in billions) $ 221 $ 218 $ 212 $ 207 $ 199 Home Equity Originations (in millions) 18,589 19,670 17,897 19,379 15,033 (1) Reflects margin and noninterest revenue, adjusted for loss rates. Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated. 13