Bank of America 2006 Annual Report Download - page 89

Table II Analysis of Changes in Net Interest Income – FTE Basis
From 2005 to 2006 From 2004 to 2005
Due to Change in
(1)
Net
Change
Due to Change in
(1)
Net
Change
(Dollars in millions) Volume Rate Volume Rate
Increase (decrease) in interest income
Time deposits placed and other short-term investments
$ 43 $ 131 $ 174 $ 1 $ 109 $ 110
Federal funds sold and securities purchased under agreements to resell 178 2,633 2,811 597 2,475 3,072
Trading account assets 526 1,143 1,669 1,128 663 1,791
Debt securities 282 516 798 3,408 319 3,727
Loans and leases:
Residential mortgage 1,843 341 2,184 362 6 368
Credit card – domestic 1,139 1,246 2,385 1,130 470 1,600
Credit card – foreign 1,147 – 1,147 –– –
Home equity lines 751 942 1,693 788 789 1,577
Direct/Indirect consumer 838 1,125 1,963 381 115 496
Other consumer 369 53 422 (62) 135 73
Total consumer 9,794 4,114
Commercial – domestic 1,504 1,127 2,631 819 469 1,288
Commercial real estate 159 535 694 281 502 783
Commercial lease financing 20 (17) 3 138 35 173
Commercial – foreign 352 30 382 102 340 442
Total commercial 3,710 2,686
Total loans and leases 13,504 6,800
Other earning assets 952 443 1,395 177 111 288
Total interest income $20,351 $15,788
Increase (decrease) in interest expense
Domestic interest-bearing deposits:
Savings $ (10) $ 68 $ 58 $9$83$92
NOW and money market deposit accounts (113) 1,197 1,084 128 790 918
Consumer CDs and IRAs 671 1,260 1,931 781 770 1,551
Negotiable CDs, public funds and other time deposits 195 38 233 43 (83) (40)
Total domestic interest-bearing deposits 3,306 2,521
Foreign interest-bearing deposits:
Banks located in foreign countries 631 149 780 165 358 523
Governments and official institutions 169 179 348 38 103 141
Time, savings and other 145 409 554 38 348 386
Total foreign interest-bearing deposits 1,682 1,050
Total interest-bearing deposits 4,988 3,571
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings 3,021 5,204 8,225 1,771 5,772 7,543
Trading account liabilities 288 (12) 276 835 212 1,047
Long-term debt 1,464 1,152 2,616 216 519 735
Total interest expense 16,105 12,896
Net increase in net interest income (2) $ 4,246 $ 2,892
(1) The changes for each category of interest income and expense are divided between the portion of change attributable to the variance in volume and the portion of change attributable to the variance in rate for that category.
The unallocated change in rate or volume variance has been allocated between the rate and volume variances.
(2) Interest income (FTE basis) in 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 of this retroactive tax adjustment is a reduction of $270 million from 2005 to 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.
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