Bank of America Acquires LaSalle Bank

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1 Bank of America Acquires LaSalle Bank Ken Lewis Chairman, CEO and President Joe Price Chief Financial Officer Liam McGee President - Global Consumer & Small Business Banking David Darnell President - Commercial Lending April 23, 2007

2 Forward Looking Statements This presentation contains forward-looking statements, including statements about the financial conditions, results of operations and earnings outlook of Bank of America Corporation. The forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results or earnings to differ materially from such forward-looking statements include, among others, the following: 1) projected business increases following process changes and other investments are lower than expected; 2) competitive pressure among financial services companies increases significantly; 3) general economic conditions are less favorable than expected; 4) political conditions including the threat of future terrorist activity and related actions by the United States abroad may adversely affect the company s businesses and economic conditions as a whole; 5) changes in the interest rate environment reduce interest margins and impact funding sources; 6) changes in foreign exchange rates increases exposure; 7) changes in market rates and prices may adversely impact the value of financial products; 8) legislation or regulatory environments, requirements or changes adversely affect the businesses in which the company is engaged; 9) changes in accounting standards, rules or interpretations, 10) litigation liabilities, including costs, expenses, settlements and judgments, may adversely affect the company or its businesses; 11) mergers and acquisitions and their integration into the company; and 12) decisions to downsize, sell or close units or otherwise change the business mix of any of the company. For further information regarding Bank of America Corporation, please read the Bank of America reports filed with the SEC and available at 2

3 One time opportunity to capture leadership positions in 2 of the Top 10 markets in the US the best economy in the world LaSalle, a well-positioned Midwest franchise Commercial bank with attractive retail growth opportunities Unmatched convenience offering for customers Opportunity for broadened product offerings and franchise extension 3

4 Overview - LaSalle Top 20 US bank holding company Assets of $113 billion (BAC $1.5 trillion) Domestic deposits of $57 billion (BAC $599 billion domestic) 15 th largest US deposit based institution 47% Retail ($27 billion) Approximately 15,000 employees Commercial Banking 17,000 clients (BAC 140,000 clients) Middle Market Lending; Asset-based lending; Asset securitization; Leasing; Real estate finance 40 offices Retail presence 1.3 million retail households (BAC 55 million households) 96,000 small business relationships 36,000 wealth management clients (BAC approximately 800,000) 411 well-located retail branches Approximately 1,500 ATMs 4

5 Unique Opportunity Gain immediate leadership positions in 2 of the top 10 MSAs Offer broader product suite and convenience to consumer customer base Better leverage retail distribution network to drive consumer growth Immediate access to Chicago wealth market Provide broader capabilities and financial solutions to commercial customers Proven track record of integrations 5

6 LaSalle Historic Strength was Commercial Banking Strong relationship driven commercial franchise Primary Services Middle market lending Commercial real estate Asset-based lending Leasing Approximately 17,000 clients ranging from $10mm to $5bb in revenues General commercial banking coverage and 12 industry specialty groups Particular strength in home markets of Chicago and Eastern Michigan 6

7 Opportunities in Commercial Banking Treasury Services LaSalle 14% deposit to loan ratio Bank of America 54% deposit to loan ratio Client Management Process Deepen relationships Products per relationship Investment banking/international Improve efficiency in line with Bank of America Bank of America (36%) vs LaSalle (55%) 7

8 Expanding the Bank of America Franchise Branches ATMs Bank of America 5,737 17,117 LaSalle 411 1,500 Combined 6,148 18,717 8

9 Leadership Position in 3 rd and 10 th Largest Markets Top 10 Markets - Based on 2006 Population New York Los Angeles Chicago Dallas Philadelphia Houston Miami Washington DC Atlanta Detroit Markets July MM 13.0 MM 9.5 MM 6.0 MM 5.8 MM 5.5 MM 5.5 MM 5.3 MM 5.1 MM 4.5 MM Source: Proximity based on official Census Bureau county (MSA) estimates released March

10 LaSalle Retail Bank LaSalle Retail Bank Chicago Detroit All Other Michigan Total Consumer Households (1) (in 000s) ,270 Small Business HHs (in 000s) 94 Wealth Mgt / Premier HHs (in 000s) 36 Banking Centers ATMs (1) ,500 Retail Deposits (1) ($ in B) $14.0 $5.2 $7.8 $27.0 Retail Deposit Share 9.3% 8.7% 17.3% 10.6% % of Earnings (FY 2006) 63% 15% 22% (1) Estimated 10

11 11 LaSalle Franchise

12 Detroit - Market Overview Detroit Market 10 th largest Market 1.7 MM Households 1.5% Household growth $71K average Household Income Market Opportunity $60 billion in Retail Balances $27 billion in 1 st Mortgage Originations $3 billion in Home Equity Line of Credit Originations $11 billion in Card oustanding balances * Full Year

13 Chicago - Market Overview Chicago Market 3 rd largest Market 3.5 MM Households 3.6% Household growth $77K average Household Income Bank of America LaSalle Market Opportunity $150 billion in Retail Balances $94 billion in 1 st Mortgage Originations $14 billion in Home Equity Line of Credit Originations $25 billion in Card oustanding balances * Full Year

14 New Bank of America - Chicago BAC Chicago LaSalle Chicago New BAC Chicago Consumer Households (1) (in 000s) Banking Centers ATMs Retail Deposits ($ in B) $1.7 $14.0 $15.7 Retail Deposit Share 1.1% 9.3% 10.4% (1) BAC Deposit HHs Only 14

15 15 Market Leadership Platform for Growth Retail Deposit Balance Share 1 27% 25% 24% 24% 23% 23% 23% 22% 17% 17% 16% 14% 1 Source: June 2006 FDIC /(MSA defined geographies) & SNL for midwest MSA data adjusted to reflect retail balances 9% 4% 10% 9% Philly Chicago Detroit Seattle San Fran Baltimore Boston Phoenix LA Miami Dallas DC San Diego Atlanta Houston New York Bank of America LaSalle Retail Balance Share 1

16 How We Will Grow the LaSalle Franchise Bank of America Brand Highest Unaided Awareness Unparallel Customer Convenience Largest Banking Center Distribution Largest ATM Network #1 Online Bank Bank of America National Retail Operating Model Customer Centric Culture Consistent Sales, Service and Operating Processes Performance Management and Accountability Bank of America Broad and Innovative Product Set Keep the Change No Fee Mortgage Plus Affinity Products Business 24/7 Proven Track Record of Execution and Growth Fleet Northeast Success 16

17 Proven Track Record Legacy Fleet Sales Productivity Legacy Fleet Sales per Day per Banking Center 12 CAGR 18% 11.2 Sales per Day per Banking Center

18 Financial Highlights 2006 Financial Highlights $ in billions LaSalle BAC Combined Managed revenue $ 3.8 $ 77.6 $ 81.4 Expenses Net income Managed Loans Total Managed Assets , ,684.1 Domestic Deposits Earnings from acquired businesses 18

19 Terms of Transaction Transaction: 100% of LaSalle Bank Price: Excess Capital to BAC Transaction Value Financing: Due Diligence: Expected Closing: $ 21 Billion 5 Billion $ 16 Billion Cash Completed Late 4Q07 early 1Q08 BAC Approvals: Normal regulatory 19

20 Transaction Summary Internal Rate of Return of 17% Shareholder Value Added Breakeven in Year 2 Immediately accretive to EPS 2% accretive in Year 1 5% accretive with fully phased in synergies Day 1 Capital ratio projections Regulatory Tier 1-7.5% (3/31/ %) Tangible equity ratio - 3.8% (3/31/ %) 20

21 Price in Line with Recent Deals Comparable Pricing Measure LaSalle Deals 1 Price / 2007 Earnings 21.3 x 16.3 x Price / Adj Earnings x N/A Price / Book Value 2.2 x 2.6 x Price / Tang. Book Value 3.4 x 3.7 x Premium / Deposits 23 % 33 % 1 BAS analysis of recent deals earnings from acquired businesses assumed growth rate of 8.6% in 2007 with fully-phased in after-tax cost savings of $800mm 21

22 Financial Assumptions Transaction expected to close in fourth quarter 2007 or early 2008 Bring LaSalle business efficiency ratios in line with BAC respective businesses ($1.250 billion pre-tax) 50% realized in Year 1 Fully realized in Year 2 Revenue opportunities drive net improvement $250 mm (pre-tax) 10% in Year 1, 30% Year 2, 70% Year 3, 100% Year 4 Higher intangible amortization of approximately $40 million After-tax restructuring charge of $800 million 22

23 Modeling and Internal Rate of Return Total Consideration (21,000) Excess Capital 5,000 Merger Charge (800) Cash Earnings ,025 $1,100 Cost Savings - After Tax Revenue driven synergies Cash Flows 420 1,725 1,850 1,985 2,075 Terminal Value at 11.8x earnings 24,485 Total Cash Flows (16,000) 420 1,725 1,850 1,985 26,560 IRR 17% 23

24 One time opportunity to capture leadership positions in 2 of the Top 10 markets in the US the best economy in the world LaSalle, a well-positioned Midwest franchise Commercial bank with attractive retail growth opportunities Unmatched convenience offering for customers Opportunity for broadened product offerings and franchise extension 24

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