Bank of America 2006 Annual Report Download - page 49

excess servicing income, which is a component of Card Income. Managed
noninterest income includes the impact of gains recognized on securitized
loan principal receivables in accordance with SFAS No. 140 “Accounting
for Transfers and Servicing of Financial Assets and Extinguishment of
Liabilities – a replacement of FASB Statement No. 125” (SFAS 140).
Managed credit impact represents the held Provision for Credit Losses
combined with credit losses associated with the securitized loan portfolio.
The following tables reconcile the Card Services portfolio and certain credit
card data on a held basis to managed basis to reflect the impact of securi-
tizations.
Card Services Data
(1)
(Dollars in millions) 2006 2005
Income Statement Data
Held net interest income $ 8,805 $ 5,009
Securitizations impact 7,584 503
Managed net interest income $ 16,389 $ 5,512
Held total noninterest income $ 12,680 $ 3,581
Securitizations impact (4,221) (69)
Managed total noninterest income $ 8,459 $ 3,512
Held total revenue $ 21,485 $ 8,590
Securitizations impact 3,363 434
Managed total revenue $ 24,848 $ 9,024
Held provision for credit losses $ 4,727 $ 3,999
Securitizations impact
(2)
3,363 434
Managed credit impact $ 8,090 $ 4,433
Balance Sheet Data
Average held Card Services outstandings $ 95,256 $56,072
Securitizations impact 96,238 5,051
Average managed Card Services outstandings $191,494 $61,123
Ending held Card Services outstandings $101,532 $61,397
Securitizations impact 101,865 2,237
Ending managed Card Services outstandings $203,397 $63,634
Credit Quality Statistics (3)
Held net charge-offs $ 3,871 $ 3,759
Securitizations impact
(2)
3,363 434
Managed Card Services net losses $ 7,234 $ 4,193
Held net charge-offs 4.06% 6.70%
Securitizations impact
(2)
(0.28) 0.16
Managed Card Services net losses 3.78% 6.86%
Credit Card Data
(4)
(Dollars in millions) 2006 2005
Balance Sheet Data
Average held credit card outstandings $ 72,979 $53,997
Securitizations impact 90,430 5,051
Average managed credit card outstandings $163,409 $59,048
Ending held credit card outstandings $ 72,194 $58,548
Securitizations impact 98,295 2,237
Ending managed credit card outstandings $170,489 $60,785
Credit Quality Statistics (3)
Held net charge-offs $ 3,319 $ 3,652
Securitizations impact
(2)
3,056 434
Managed credit card net losses $ 6,375 $ 4,086
Held net charge-offs 4.55% 6.76%
Securitizations impact
(2)
(0.65) 0.16
Managed credit card net losses 3.90% 6.92%
(1) Beginning with the first quarter of 2006, Card Services includes U.S. Consumer and Business Card, Unsecured Lending, Merchant Services and International Card Businesses. Prior to January 1, 2006, Card Services included
U.S. Consumer Card, U.S. Business Card, and Merchant Services.
(2) Represents credit losses associated with the securitized loan portfolio.
(3) Pursuant to American Institute of Certified Public Accountants (AICPA) Statement of Position No. 03-3 “Accounting for Certain Loans or Debt Securities Acquired in a Transfer” (SOP 03-3) the Corporation decreased held net
charge-offs for Card Services and credit card $288 million or 30 bps and $152 million or 21 bps in 2006. Managed net losses for Card Services and credit card decreased $288 million or 15 bps and $152 million or 9 bps.
For more information, refer to the discussion of SOP 03-3 in the Consumer Portfolio Credit Risk Management section beginning on page 63.
(4) Includes U.S. Consumer Card and Foreign Credit Card. Does not include Business Card.
Bank of America 2006 47