California, Florida consumers are loss leaders for Bank of America

Liam McGee said at an investor conference that he bank is "obviously not happy with rising credit losses," according to the Wall Street Journal.

California and Florida represent a combined 52 percent of delinquencies and 62 percent of charge-offs, he said.

States where the housing market is depressed is where the consumer-credit segment and managed consumer-credit card unit is feeling the most pressure, he said. The bank's small-business portfolio of investments, has also been seeing rising losses.

During its latest quarterly results, the bank reported a 77 percent drop in profits to $1.21 billion. While revenues grew, the bank's chairman and chief executive Kenneth Lewis said the economy and prolonged disruptions in the capital markets took a toll on profit.