Bank Of America Corporation · NYSE:BAC
Bank Of America — Bank of America Corp /De/ (Bac, Bac-Pb, Bac-Pe, Bac-Pk, Bac-Pl, Bac-Pm, Bac-Pn, Bac-Po, Bac-Pp, Bml-Pg, Bml-Ph, Bml-Pj, Bml-Pl) — Q4 2010 Earnings Presentation
8 slides from Bank Of America's earnings presentation, Jan 21, 2011
Slide 1: Net interest income
Exhibit 99.2 Net $25,000 $11,672 $0 Core Commentary •– 1 2 toNet Lower Increased Hedge Reduced On Expect NII But Fully Periods the 0.00% Interest track NII interest was benefited way taxable-equivalent consumer income $11,559 3.50% NII Market-based prior 4Q09 reduced to yields long-term loans discre
Slide 2: Representations and warranties liability and claims activity
Representations Liability Beginning Provision Charge-offs(591)(718)(642)(415)(3,028) Ending GSEs Monolines Other Total ($ Pre 2005 2006 2007 2008 Post New Rescinded Approved Outstanding % Commentary •– 1 The otherwise 74% 4Q10 $8.0B Increase Monoline $1.9B Includes in2005 GSEs inclusion 2008 million
Slide 3: Non-GSE Origination and Repurchase Experience
Non-GSE Origination 74% 10% 7% 9% $13.7B $6.0B $7.7B Repurchase •22.4% – 1The orFrom Repurchase $5.6B $5.7B $800M $5.2B $4.1B $1.7B $630M $1.1B Experience 58% Not Significant are originated were originated inclusion all otherwise of repurchase ($126B) of 2004 of resolved have in with in resolved rel
Slide 4: Non-GSE Experience - 2004-2008 Originations (cont'd)
Non-GSE Experience - 2004-2008 Originations =~, (cont’d) A . Experience to date reflects: 22.4% of loans sold have defaulted or are severely delinquent 58% ($126B) of defaulted or severely delinquent loans made at least 25 payments prior to default or delinquency Only a portion of these defaulted or
Slide 5: Key Private Label Representations and Differences vs. GSEs
Key Private Representations Significant General Fraud Acceptable Materiality Causation Disclosure Claim each Liability tranche Virtually Presentation Compliance for Breach Offering aspects Many Investment Label Repurchase of certificate all and representations of Differences deals of Rights document
Slide 6: Government Sponsored Enterprise representations and warranties breaches liability
Government warranties breaches liability – $21.6B $18.2B Slightly •Collateral 1 formal We From Recent Preliminary Experience 55% The Based Our Claims believe liability of apportionment 2004 of for less on agreement of delinquent resolved loss repurchase resolved related the representations selling t
Slide 7: GSE Legacy Countrywide Experience
GSE ($ Legacy Countrywide Original Principal Less: Defaults (principal Payments Less 13-24 25-36 greater Outstanding As Cumulative Prior Agreements 1 principal 2 Includes inofthan billions) Experience to 9/30/10 12/31/10 32 33 than Originator Agreements Funded 31 + balances 30% 31% Payments 13 at ma
Slide 8: Non-Government Sponsored Enterprise Original Principal Balance Made
Non-Government ($ Original Made Entity Bank Countrywide Merrill First Principal Product Payments Prime Alt-A Pay Subprime Home Other Total 1 2 3 Excludes Includes inoption Franklin billions) $1,2,3 of 613 172 $Equity Past 963 Lynch 1(1) Original 302 America Principal to Balance 245 Borrower 82 $186B