Bank of America 2006 Annual Report Download - page 124

December 31, 2006 December 31, 2005
(1)
(Dollars in millions)
Total Loans
and Leases
Accruing
Loans and
Leases Past
Due 90 Days
or More
Nonperforming
Loans and Leases
Total Loans
and Leases
Accruing
Loans and
Leases Past
Due 90 Days
or More
Nonperforming
Loans and Leases
Residential mortgage
(2)
$ 245,840 $ 118 $ 660 $188,380 $ – $ 570
Credit card – domestic 142,599 3,828 n/a 60,785 1,217 n/a
Credit card – foreign 27,890 608 n/a – – n/a
Home equity lines 75,197 – 251 62,546 3 117
Direct/Indirect consumer 75,112 493 44 49,544 75 37
Other consumer 9,218 38 77 6,725 15 61
Total consumer 575,856 5,085 1,032 367,980 1,310 785
Commercial – domestic 163,274 265 598 142,447 117 581
Commercial real estate 36,258 78 118 35,766 4 49
Commercial lease financing 21,864 26 42 20,705 15 62
Commercial – foreign 20,681 9 13 21,330 32 34
Total commercial 242,077 378 771 220,248 168 726
Total managed loans and leases 817,933 5,463 1,803 588,228 1,478 1,511
Managed loans in securitizations (111,443) (2,407) (16) (14,437) (23) –
Total held loans and leases $ 706,490 $ 3,056 $1,787 $573,791 $1,455 $1,511
Year Ended December 31, 2006 Year Ended December 31, 2005
(1)
(Dollars in millions)
Average Loans
and Leases
Outstanding
Net
Losses
Net Loss
Ratio (3)
Average Loans
and Leases
Outstanding
Net
Losses
Net Loss
Ratio
(3)
Residential mortgage $213,097 $39 0.02% $179,474 $ 27 0.02%
Credit card – domestic 138,592 5,395 3.89 59,048 4,086 6.92
Credit card – foreign 24,817 980 3.95 –––
Home equity lines 69,071 51 0.07 56,821 31 0.05
Direct/Indirect consumer 68,227 839 1.23 46,719 248 0.53
Other consumer 10,713 303 2.83 6,908 275 3.99
Total consumer 524,517 7,607 1.45 348,970 4,667 1.34
Commercial – domestic 153,796 367 0.24 130,882 170 0.13
Commercial real estate 36,939 3 0.01 34,304 – –
Commercial lease financing 20,862 (28) (0.14) 20,441 231 1.13
Commercial – foreign 23,521 (8) (0.04) 18,491 (72) (0.39)
Total commercial 235,118 334 0.14 204,118 329 0.16
Total managed loans and leases 759,635 7,941 1.05 553,088 4,996 0.90
Managed loans in securitizations (107,218) (3,402) 3.17 (15,870) (434) 2.73
Total held loans and leases $652,417 $4,539 0.70% $537,218 $4,562 0.85%
(1) The amounts at and for the year ended December 31, 2005 have been adjusted to include certain mortgage and auto securitizations as these are now included in the Corporation’s definition of managed loans and leases.
(2) Accruing loans and leases past due 90 days or more represent residential mortgage loans related to repurchases pursuant to our servicing agreements with Government National Mortgage Association mortgage pools whose
repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. In 2005, these loans were recorded in loans held-for-sale and amounted to $161 million.
(3) The net loss ratio is calculated by dividing managed loans and leases net losses by average managed loans and leases outstanding for each loan and lease category.
n/a = not applicable
Variable Interest Entities
At December 31, 2006 and 2005, the assets and liabilities of the Corpo-
ration’s multi-seller asset-backed commercial paper conduits that have
been consolidated in accordance with FIN 46R were reflected in AFS Secu-
rities, Other Assets, and Commercial Paper and Other Short-term Borrow-
ings. As of December 31, 2006 and 2005, the Corporation held $10.5
billion and $6.6 billion of assets in these entities, and in the unlikely
event that all of the assets in the VIEs become worthless, the Corpo-
ration’s maximum loss exposure associated with these entities including
unfunded lending commitments would be approximately $12.9 billion and
$8.3 billion. In addition, the Corporation had net investments in leveraged
lease trusts totaling $8.6 billion and $8.2 billion at December 31, 2006
and 2005. These amounts, which were reflected in Loans and Leases,
represent the Corporation’s maximum loss exposure to these entities in
the unlikely event that the leveraged lease investments become worthless.
Debt issued by the leveraged lease trusts is nonrecourse to the Corpo-
ration. The Corporation also had contractual relationships with other con-
solidated VIEs that engage in leasing or lending activities or real estate
joint ventures. As of December 31, 2006 and 2005, the amount of assets
of these entities was $3.3 billion and $750 million, and in the unlikely
event that all of the assets in the VIEs become worthless, the Corpo-
ration’s maximum possible loss exposure would be $1.6 billion and $212
million.
122 Bank of America 2006