Bank of America 2006 Annual Report Download - page 96

Table XIII Quarterly Average Balances and Interest Rates – FTE Basis
Fourth Quarter 2006 Third Quarter 2006
(Dollars in millions)
Average
Balance
Interest
Income/
Expense
Yield/
Rate
Average
Balance
Interest
Income/
Expense
Yield/
Rate
Earning assets
Time deposits placed and other short-term investments $ 15,760 $ 166 4.19% $ 15,629 $ 173 4.39%
Federal funds sold and securities purchased under agreements to resell 174,167 2,068 4.73 173,381 2,146 4.94
Trading account assets 167,163 2,289 5.46 146,817 1,928 5.24
Debt securities
(1)
193,601 2,504 5.17 236,033 3,136 5.31
Loans and leases
(2)
:
Residential mortgage 225,985 3,202 5.66 222,889 3,151 5.65
Credit card – domestic 59,802 2,101 13.94 62,508 2,189 13.90
Credit card – foreign 10,375 305 11.66 9,455 286 12.02
Home equity lines 73,218 1,411 7.65 70,075 1,351 7.65
Direct/Indirect consumer
(3)
65,158 1,316 8.00 61,361 1,193 7.74
Other consumer
(4)
10,606 225 8.47 11,075 298 10.66
Total consumer 445,144 8,560 7.65 437,363 8,468 7.71
Commercial – domestic 158,604 2,907 7.27 153,007 2,805 7.28
Commercial real estate
(5)
36,851 704 7.58 37,471 724 7.67
Commercial lease financing 21,159 254 4.80 20,875 232 4.46
Commercial – foreign 21,840 337 6.12 24,761 454 7.27
Total commercial 238,454 4,202 7.00 236,114 4,215 7.09
Total loans and leases 683,598 12,762 7.42 673,477 12,683 7.49
Other earning assets 65,172 1,058 6.46 57,029 914 6.38
Total earning assets
(6)
1,299,461 20,847 6.39 1,302,366 20,980 6.41
Cash and cash equivalents 32,816 33,495
Other assets, less allowance for loan and lease losses 162,873 162,126
Total assets $1,495,150 $1,497,987
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings $ 32,965 $ 48 0.58% $ 34,268 $ 69 0.81%
NOW and money market deposit accounts 211,055 966 1.81 212,690 1,053 1.96
Consumer CDs and IRAs 154,621 1,794 4.60 147,607 1,658 4.46
Negotiable CDs, public funds and other time deposits 13,052 140 4.30 14,105 150 4.19
Total domestic interest-bearing deposits 411,693 2,948 2.84 408,670 2,930 2.84
Foreign interest-bearing deposits:
Banks located in foreign countries 38,648 507 5.21 38,588 562 5.78
Governments and official institutions 14,220 168 4.70 12,801 156 4.83
Time, savings and other 41,328 366 3.50 40,444 328 3.22
Total foreign interest-bearing deposits 94,196 1,041 4.38 91,833 1,046 4.52
Total interest-bearing deposits 505,889 3,989 3.13 500,503 3,976 3.15
Federal funds purchased, securities sold under agreements to repurchase
and other short-term borrowings 405,748 5,222 5.11 429,882 5,467 5.05
Trading account liabilities 75,261 800 4.21 69,462 727 4.15
Long-term debt 140,756 1,881 5.34 136,769 1,916 5.60
Total interest-bearing liabilities (6) 1,127,654 11,892 4.19 1,136,616 12,086 4.23
Noninterest-bearing sources:
Noninterest-bearing deposits 174,356 176,348
Other liabilities 59,093 55,761
Shareholders’ equity 134,047 129,262
Total liabilities and shareholders’ equity $1,495,150 $1,497,987
Net interest spread 2.20% 2.18%
Impact of noninterest-bearing sources 0.55 0.55
Net interest income/yield on earning assets (7) $ 8,955 2.75% $ 8,894 2.73%
(1) Yields on AFS debt securities are calculated based on fair value rather than historical cost balances. The use of fair value does not have a material impact on net interest yield.
(2) Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis.
(3) Includes home equity loans of $11.7 billion, $9.9 billion, $8.7 billion and $8.2 billion in the fourth, third, second and first quarters of 2006, respectively, and $8.0 billion in the fourth quarter of 2005.
(4) Includes consumer finance loans of $2.8 billion, $2.9 billion, $3.0 billion and $3.0 billion in the fourth, third, second and first quarters of 2006, respectively, and $2.9 billion in the fourth quarter of 2005; and foreign
consumer loans of $7.8 billion, $8.1 billion, $7.8 billion and $7.3 billion in the fourth, third, second and first quarters of 2006, respectively, and $3.7 billion in the fourth quarter of 2005.
(5) Includes domestic commercial real estate loans of $36.1 billion, $36.7 billion, $36.0 billion and $36.0 billion in the fourth, third, second and first quarters of 2006, respectively, and $35.4 billion in the fourth quarter of
2005.
(6) Interest income includes the impact of interest rate risk management contracts, which increased (decreased) interest income on the underlying assets $(198) million, $(128) million, $(54) million and $8 million in the fourth,
third, second and first quarters of 2006, respectively, and $29 million in the fourth quarter of 2005. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest
expense on the underlying liabilities $(69) million, $(48) million, $87 million and $136 million in the fourth, third, second and first quarters of 2006, respectively, and $254 million in the fourth quarter of 2005. For further
information on interest rate contracts, see “Interest Rate Risk Management for Nontrading Activities” beginning on page 77.
(7) 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 was 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.
94 Bank of America 2006