Supplemental Information

EX-99.2 3 dex992.htm SUPPLEMENTAL INFORMATION Supplemental Information

Exhibit 99.2

LOGO

Supplemental Information

Fourth Quarter 2009

This information is preliminary and based on company data available at the time of the presentation. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this information are subject to the forward-looking language contained in Bank of America’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC’s website (www.sec.gov) or at Bank of America’s website (www.bankofamerica.com). Bank of America’s future financial performance is subject to risks and uncertainties as described in its SEC filings.

Bank of America Corporation and Subsidiaries


Table of Contents		Page

Consolidated Financial Highlights		2
Supplemental Financial Data		3
Consolidated Statement of Income		4
Consolidated Balance Sheet		5
Capital Management		6
Core Net Interest Income - Managed Basis		7
Quarterly Average Balances and Interest Rates		8
Quarterly Average Balances and Interest Rates - Isolating Hedge Income/Expense		9
Year-to-Date Average Balances and Interest Rates		10
Year-to-Date Average Balances and Interest Rates - Isolating Hedge Income/Expense		11
Debt Securities and Available-for-Sale Marketable Equity Securities		12
Quarterly Results by Business Segment		13
Year-to-Date Results by Business Segment		14
Deposits
Total Segment Results		15
Key Indicators		16
Global Card Services
Total Segment Results		17
Key Indicators		18
Home Loans & Insurance
Total Segment Results		19
Key Indicators		20
Global Banking
Total Segment Results		21
Key Indicators		22
Investment Banking Product Rankings		23
Global Markets
Total Segment Results		24
Off-Balance Sheet Special Purpose Entities Liquidity Exposure		25
Super Senior Collateralized Debt Obligation Exposure		26
Unhedged Subprime Super Senior Collateralized Debt Obligation Carrying Values		27
Global Wealth & Investment Management
Total Segment Results		28
Quarter-to-Date Business Results		29
Year-to-Date Business Results		30
Key Indicators		31
All Other
Total Segment Results		32
Equity Investments		33
Outstanding Loans and Leases		34
Quarterly Average Loans and Leases by Business Segment		35
Commercial Credit Exposure by Industry		36
Net Credit Default Protection by Maturity Profile and Credit Exposure Debt Rating		37
Selected Emerging Markets		38
Nonperforming Assets		39
Nonperforming Asset Activity		40
Quarterly Net Charge-offs/Losses and Net Charge-off/Loss Ratios		41
YTD Net Charge-offs/Losses and Net Charge-off/Loss Ratios		42
Allocation of the Allowance for Credit Losses by Product Type		43

Exhibit A: Non-GAAP Reconciliations		44

Appendix: Selected Slides from the Fourth Quarter 2009 Earnings Release Presentation		46


		1

Bank of America Corporation and Subsidiaries

Consolidated Financial Highlights

(Dollars in millions, except per share information; shares in thousands)


	Year Ended December 31							Fourth Quarter 2009 ⁽¹⁾				Third Quarter 2009 ⁽¹⁾				Second Quarter 2009				First Quarter 2009			Fourth Quarter 2008 ⁽¹⁾
	2009				2008			Fourth Quarter 2009 ⁽¹⁾				Third Quarter 2009 ⁽¹⁾				Second Quarter 2009				First Quarter 2009			Fourth Quarter 2008 ⁽¹⁾
Income statement
Net interest income	$	47,109			$	45,360		$	11,559			$	11,423			$	11,630			$	12,497		$	13,106
Noninterest income		72,534				27,422			13,517				14,612				21,144				23,261			2,574
Total revenue, net of interest expense		119,643				72,782			25,076				26,035				32,774				35,758			15,680
Provision for credit losses		48,570				26,825			10,110				11,705				13,375				13,380			8,535
Noninterest expense, before merger and restructuring charges		63,992				40,594			15,852				15,712				16,191				16,237			10,641
Merger and restructuring charges		2,721				935			533				594				829				765			306
Income tax expense (benefit)		(1,916	)			420			(1,225	)			(975	)			(845	)			1,129			(2,013	)
Net income (loss)		6,276				4,008			(194	)			(1,001	)			3,224				4,247			(1,789	)
Preferred stock dividends and accretion ⁽²⁾		8,480				1,452			5,002				1,240				805				1,433			603
Net income (loss) applicable to common shareholders		(2,204	)			2,556			(5,196	)			(2,241	)			2,419				2,814			(2,392	)
Diluted earnings (loss) per common share		(0.29	)			0.54			(0.60	)			(0.26	)			0.33				0.44			(0.48	)
Average diluted common shares issued and outstanding		7,728,570				4,596,428			8,634,565				8,633,834				7,269,518				6,431,027			4,957,049
Dividends paid per common share	$	0.04			$	2.24		$	0.01			$	0.01			$	0.01			$	0.01		$	0.32

Performance ratios
Return on average assets		0.26		%		0.22	%		n/m		%		n/m		%		0.53		%		0.68	%		n/m		%
Return on average common shareholders’ equity		n/m				1.80			n/m				n/m				5.59				7.10			n/m
Return on average tangible common shareholders’ equity⁽⁴⁾		n/m				4.72			n/m				n/m				12.68				16.15			n/m
Return on average tangible shareholders’ equity⁽⁴⁾		4.18				5.19			n/m				n/m				8.86				12.42			n/m
At period end
Book value per share of common stock ⁽³⁾	$	21.48			$	27.77		$	21.48			$	22.99			$	22.71			$	25.98		$	27.77
Tangible book value per share of common stock⁽⁴⁾		11.94				10.11			11.94				12.00				11.66				10.88			10.11
Market price per share of common stock:
Closing price	$	15.06			$	14.08		$	15.06			$	16.92			$	13.20			$	6.82		$	14.08
High closing price for the period		18.59				45.03			18.59				17.98				14.17				14.33			38.13
Low closing price for the period		3.14				11.25			14.58				11.84				7.05				3.14			11.25
Market capitalization		130,273				70,645			130,273				146,363				114,199				43,654			70,645

Number of banking centers - domestic		6,011				6,139			6,011				6,008				6,109				6,145			6,139
Number of branded ATMs - domestic		18,262				18,685			18,262				18,254				18,426				18,532			18,685
Full-time equivalent employees		283,717				240,202			283,717				281,863				282,408				286,625			240,202

(1)

Due to a net loss for the three months ended December 31, 2009, September 30, 2009 and December 31, 2008, the impact of antidilutive equity instruments were excluded from diluted earnings per common share and average diluted common shares.

(2)

Includes $4.0 billion of accelerated accretion from redemption of preferred stock issued to the U.S. Treasury in the fourth quarter of 2009.

(3)

Book value per share of common stock includes the impact of the conversion of common equivalent shares to common shares.

(4)

Tangible equity ratios and tangible book value per share of common stock are non-GAAP measures. For corresponding reconciliations of average tangible common shareholders’ equity and tangible shareholders’ equity to GAAP financial measures, see Supplemental Financial Data on page 3. We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation.

n/m

= not meaningful

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		2

Bank of America Corporation and Subsidiaries

Supplemental Financial Data

(Dollars in millions, shares in thousands)


Fully taxable-equivalent basis data


	Year Ended December 31								Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
	2009				2008				2009				2009				2009				2009				2008
Net interest income	$	48,410			$	46,554			$	11,896			$	11,753			$	11,942			$	12,819			$	13,406
Total revenue, net of interest expense		120,944				73,976				25,413				26,365				33,086				36,080				15,980
Net interest yield		2.65		%		2.98		%		2.62		%		2.61		%		2.64		%		2.70		%		3.31		%
Efficiency ratio		55.16				56.14				64.47				61.84				51.44				47.12				68.51

Reconciliation to GAAP financial measures

The Corporation evaluates its business based upon ratios that utilize tangible equity which is a non-GAAP measure. Return on average tangible shareholders’ equity measures the Corporation’s earnings contribution as a percentage of shareholders’ equity reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible common shareholders’ equity measures the Corporation’s earning contribution available to common shareholders as a percentage of common shareholders’ equity plus Common Equivalent Securities reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. The tangible equity ratio represents shareholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred liabilities. The tangible common equity ratio represents common shareholders’ equity plus Common Equivalent Securities less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Tangible book value per share common stock represents ending common shareholders’ equity plus Common Equivalent Securities less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by ending common shares outstanding plus the number of common shares issued upon conversion of Common Equivalent Securities. These measures are used to evaluate the Corporation’s use of equity (i.e., capital). In addition, profitability, relationship, and investment models all use return on average tangible shareholders’ equity as key measures to support our overall growth goals. Also, the efficiency ratio measures the costs expended to generate a dollar of revenue. We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate supplemental financial data differently. See the tables below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, and the years ended December 31, 2009 and 2008.

Reconciliation of average shareholders’ equity to average tangible shareholders’ equity


Shareholders’ equity	$	244,645			$	164,831			$	250,599			$	255,983			$	242,867			$	228,766			$	176,566
Goodwill		(86,034	)			(79,827	)			(86,053	)			(86,170	)			(87,314	)			(84,584	)			(81,841	)
Intangible assets (excluding MSRs)		(12,220	)			(9,502	)			(12,556	)			(13,223	)			(13,595	)			(9,461	)			(8,818	)
Related deferred tax liabilities		3,831				1,782				3,712				3,725				3,916				3,977				1,913

Tangible shareholders’ equity	$	150,222			$	77,284			$	155,702			$	160,315			$	145,874			$	138,698			$	87,820


Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity


Common shareholders’ equity	$	182,288			$	141,638			$	197,123			$	197,230			$	173,497			$	160,739			$	142,535
Common Equivalent Securities		1,213				—				4,811				—				—				—				—
Goodwill		(86,034	)			(79,827	)			(86,053	)			(86,170	)			(87,314	)			(84,584	)			(81,841	)
Intangible assets (excluding MSRs)		(12,220	)			(9,502	)			(12,556	)			(13,223	)			(13,595	)			(9,461	)			(8,818	)
Related deferred tax liabilities		3,831				1,782				3,712				3,725				3,916				3,977				1,913

Tangible common shareholders’ equity	$	89,078			$	54,091			$	107,037			$	101,562			$	76,504			$	70,671			$	53,789


Reconciliation of period end shareholders’ equity to period end tangible shareholders’ equity


Shareholders’ equity	$	231,444			$	177,052			$	231,444			$	257,683			$	255,152			$	239,549			$	177,052
Goodwill		(86,314	)			(81,934	)			(86,314	)			(86,009	)			(86,246	)			(86,910	)			(81,934	)
Intangible assets (excluding MSRs)		(12,026	)			(8,535	)			(12,026	)			(12,715	)			(13,245	)			(13,703	)			(8,535	)
Related deferred tax liabilities		3,498				1,854				3,498				3,714				3,843				3,958				1,854

Tangible shareholders’ equity	$	136,602			$	88,437			$	136,602			$	162,673			$	159,504			$	142,894			$	88,437


Reconciliation of period end common shareholders’ equity to period end tangible common shareholders’ equity


Common shareholders’ equity	$	194,236			$	139,351			$	194,236			$	198,843			$	196,492			$	166,272			$	139,351
Common Equivalent Securities		19,244				—				19,244				—				—				—				—
Goodwill		(86,314	)			(81,934	)			(86,314	)			(86,009	)			(86,246	)			(86,910	)			(81,934	)
Intangible assets (excluding MSRs)		(12,026	)			(8,535	)			(12,026	)			(12,715	)			(13,245	)			(13,703	)			(8,535	)
Related deferred tax liabilities		3,498				1,854				3,498				3,714				3,843				3,958				1,854

Tangible common shareholders’ equity	$	118,638			$	50,736			$	118,638			$	103,833			$	100,844			$	69,617			$	50,736


Reconciliation of period end assets to period end tangible assets


Assets	$	2,223,299			$	1,817,943			$	2,223,299			$	2,251,043			$	2,254,394			$	2,321,963			$	1,817,943
Goodwill		(86,314	)			(81,934	)			(86,314	)			(86,009	)			(86,246	)			(86,910	)			(81,934	)
Intangible assets (excluding MSRs)		(12,026	)			(8,535	)			(12,026	)			(12,715	)			(13,245	)			(13,703	)			(8,535	)
Related deferred tax liabilities		3,498				1,854				3,498				3,714				3,843				3,958				1,854

Tangible assets	$	2,128,457			$	1,729,328			$	2,128,457			$	2,156,033			$	2,158,746			$	2,225,308			$	1,729,328


Reconciliation of ending common shares outstanding to ending tangible common shares outstanding


Common shares outstanding		8,650,244				5,017,436				8,650,244				8,650,314				8,651,459				6,400,950				5,017,436
Conversion of common equivalent shares		1,286,000				—				1,286,000				—				—				—				—

Tangible common shares outstanding		9,936,244				5,017,436				9,936,244				8,650,314				8,651,459				6,400,950				5,017,436

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		3

Bank of America Corporation and Subsidiaries

Consolidated Statement of Income

(Dollars in millions, except per share information; shares in thousands)


	Year Ended December 31						Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
	2009			2008			2009 ⁽¹⁾			2009 ⁽¹⁾			2009			2009			2008 ⁽¹⁾
Interest income
Interest and fees on loans and leases	$	48,703		$	56,017		$	11,405		$	11,620		$	12,329		$	13,349		$	14,220
Interest on debt securities		12,947			13,146			2,859			2,975			3,283			3,830			3,851
Federal funds sold and securities borrowed or purchased under agreements to resell		2,894			3,313			327			722			690			1,155			393
Trading account assets		7,944			9,057			1,721			1,843			1,952			2,428			2,120
Other interest income		5,428			4,151			1,333			1,363			1,338			1,394			1,018

Total interest income		77,916			85,684			17,645			18,523			19,592			22,156			21,602

Interest expense
Deposits		7,807			15,250			1,472			1,710			2,082			2,543			3,296
Short-term borrowings		5,512			12,362			658			1,237			1,396			2,221			1,910
Trading account liabilities		2,075			2,774			591			455			450			579			524
Long-term debt		15,413			9,938			3,365			3,698			4,034			4,316			2,766

Total interest expense		30,807			40,324			6,086			7,100			7,962			9,659			8,496

Net interest income		47,109			45,360			11,559			11,423			11,630			12,497			13,106

Noninterest income
Card income		8,353			13,314			1,782			1,557			2,149			2,865			3,102
Service charges		11,038			10,316			2,756			3,020			2,729			2,533			2,559
Investment and brokerage services		11,919			4,972			3,014			2,948			2,994			2,963			1,072
Investment banking income		5,551			2,263			1,596			1,254			1,646			1,055			618
Equity investment income (loss)		10,014			539			2,026			843			5,943			1,202			(791	)
Trading account profits (losses)		12,235			(5,911	)		1,475			3,395			2,164			5,201			(4,101	)
Mortgage banking income		8,791			4,087			1,652			1,298			2,527			3,314			1,523
Insurance income		2,760			1,833			703			707			662			688			741
Gains on sales of debt securities		4,723			1,124			1,039			1,554			632			1,498			762
Other income (loss)		(14	)		(1,654	)		(1,884	)		(1,167	)		724			2,313			(1,448	)
Other-than-temporary impairment losses on AFS debt securities:
Total other-than-temporary impairment losses		(3,508	)		(3,461	)		(837	)		(847	)		(1,110	)		(714	)		(1,463	)
Less: Portion of other-than-temporary impairment losses recognized in OCI		672			—			195			50			84			343			—

Net impairment losses recognized in earnings on AFS debt securities		(2,836	)		(3,461	)		(642	)		(797	)		(1,026	)		(371	)		(1,463	)

Total noninterest income		72,534			27,422			13,517			14,612			21,144			23,261			2,574

Total revenue, net of interest expense		119,643			72,782			25,076			26,035			32,774			35,758			15,680

Provision for credit losses		48,570			26,825			10,110			11,705			13,375			13,380			8,535

Noninterest expense
Personnel		31,528			18,371			7,357			7,613			7,790			8,768			4,027
Occupancy		4,906			3,626			1,339			1,220			1,219			1,128			1,003
Equipment		2,455			1,655			600			617			616			622			447
Marketing		1,933			2,368			443			470			499			521			555
Professional fees		2,281			1,592			770			562			544			405			521
Amortization of intangibles		1,978			1,834			432			510			516			520			477
Data processing		2,500			2,546			639			592			621			648			641
Telecommunications		1,420			1,106			387			361			345			327			292
Other general operating		14,991			7,496			3,885			3,767			4,041			3,298			2,678
Merger and restructuring charges		2,721			935			533			594			829			765			306

Total noninterest expense		66,713			41,529			16,385			16,306			17,020			17,002			10,947

Income (loss) before income taxes		4,360			4,428			(1,419	)		(1,976	)		2,379			5,376			(3,802	)
Income tax expense (benefit)		(1,916	)		420			(1,225	)		(975	)		(845	)		1,129			(2,013	)

Net income (loss)	$	6,276		$	4,008		$	(194	)	$	(1,001	)	$	3,224		$	4,247		$	(1,789	)

Preferred stock dividends and accretion ⁽²⁾		8,480			1,452			5,002			1,240			805			1,433			603

Net income (loss) applicable to common shareholders	$	(2,204	)	$	2,556		$	(5,196	)	$	(2,241	)	$	2,419		$	2,814		$	(2,392	)


Per common share information
Earnings (loss)	$	(0.29	)	$	0.54		$	(0.60	)	$	(0.26	)	$	0.33		$	0.44		$	(0.48	)
Diluted earnings (loss)		(0.29	)		0.54			(0.60	)		(0.26	)		0.33			0.44			(0.48	)
Dividends paid		0.04			2.24			0.01			0.01			0.01			0.01			0.32

Average common shares issued and outstanding		7,728,570			4,592,085			8,634,565			8,633,834			7,241,515			6,370,815			4,957,049

Average diluted common shares issued and outstanding		7,728,570			4,596,428			8,634,565			8,633,834			7,269,518			6,431,027			4,957,049

(1)

Due to a net loss for the three months ended December 31, 2009, September 30, 2009 and December 31, 2008, the impact of antidilutive equity instruments was excluded from diluted earnings per share and average diluted common shares.

(2)

Includes $4.0 billion of accelerated accretion from redemption of preferred stock issued to the U.S. Treasury in the fourth quarter of 2009.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		4

Bank of America Corporation and Subsidiaries

Consolidated Balance Sheet

(Dollars in millions)


	December 31 2009			September 30 2009			December 31 2008
Assets
Cash and cash equivalents	$	121,339		$	152,412		$	32,857
Time deposits placed and other short-term investments		24,202			22,992			9,570
Federal funds sold and securities borrowed or purchased under agreements to resell		189,933			187,761			82,478
Trading account assets		182,206			204,838			134,315
Derivative assets		80,689			94,855			62,252
Debt securities:
Available-for-sale		301,601			247,200			276,904
Held-to-maturity, at cost		9,840			9,545			685
Total debt securities		311,441			256,745			277,589
Loans and leases		900,128			914,266			931,446
Allowance for loan and lease losses		(37,200	)		(35,832	)		(23,071	)
Loans and leases, net of allowance		862,928			878,434			908,375
Premises and equipment, net		15,500			15,373			13,161
Mortgage servicing rights (includes $19,465, $17,539 and $12,733 measured at fair value)		19,774			17,850			13,056
Goodwill		86,314			86,009			81,934
Intangible assets		12,026			12,715			8,535
Loans held-for-sale		43,874			40,124			31,454
Customer and other receivables		81,996			93,620			37,608
Other assets		191,077			187,315			124,759
Total assets	$	2,223,299		$	2,251,043		$	1,817,943

Liabilities
Deposits in domestic offices:
Noninterest-bearing	$	269,615		$	246,729		$	213,994
Interest-bearing		640,789			652,730			576,938
Deposits in foreign offices:
Noninterest-bearing		5,489			4,889			4,004
Interest-bearing		75,718			70,551			88,061
Total deposits		991,611			974,899			882,997
Federal funds purchased and securities loaned or sold under agreements to repurchase		255,185			249,578			206,598
Trading account liabilities		65,432			71,672			51,723
Derivative liabilities		43,728			52,624			30,709
Commercial paper and other short-term borrowings		69,524			62,280			158,056
Accrued expenses and other liabilities (includes $1,487, $1,567 and $421 of reserve for unfunded lending commitments)		127,854			126,019			42,516
Long-term debt		438,521			456,288			268,292
Total liabilities		1,991,855			1,993,360			1,640,891
Shareholders’ equity
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 3,960,660, 5,760,660 and 8,202,042 shares		37,208			58,840			37,701
Common stock and additional paid-in capital, $0.01 par value; authorized - 10,000,000,000 shares; issued and outstanding - 8,650,243,926, 8,650,314,133 and 5,017,435,592 shares		128,734			128,823			76,766
Retained earnings		71,233			76,881			73,823
Accumulated other comprehensive income (loss)		(5,619	)		(6,705	)		(10,825	)
Other		(112	)		(156	)		(413	)
Total shareholders’ equity		231,444			257,683			177,052
Total liabilities and shareholders’ equity	$	2,223,299		$	2,251,043		$	1,817,943

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		5

Bank of America Corporation and Subsidiaries

Capital Management

(Dollars in millions)


	Fourth Quarter 2009 ⁽¹⁾			Third Quarter 2009			Second Quarter 2009			First Quarter 2009			Fourth Quarter 2008
Risk-based capital:
Tier 1 common	$	120,394		$	112,357		$	110,383		$	76,145		$	63,339
Tier 1 capital		160,388			193,073			190,874			171,061			120,814
Total capital		226,077			258,568			255,701			237,905			171,661
Risk-weighted assets		1,542,517			1,548,962			1,599,569			1,695,192			1,320,824
Tier 1 common equity ratio ⁽²⁾		7.81	%		7.25	%		6.90	%		4.49	%		4.80	%
Tier 1 capital ratio		10.40			12.46			11.93			10.09			9.15
Total capital ratio		14.66			16.69			15.99			14.03			13.00
Tier 1 leverage ratio		6.91			8.39			8.21			7.07			6.44
Tangible equity ratio ⁽³⁾		6.42			7.55			7.39			6.42			5.11
Tangible common equity ratio ⁽³⁾		5.57			4.82			4.67			3.13			2.93

(1)

Preliminary data on risk-based capital

(2)

Tier 1 common equity ratio equals Tier 1 capital excluding preferred stock (except for Common Equivalent Securities), trust preferred securities, hybrid securities and minority interest divided by risk-weighted assets.

(3)

Tangible equity ratio equals period end tangible shareholders’ equity divided by period end tangible assets. Tangible common equity equals period end tangible common shareholders’ equity divided by period end tangible assets. Tangible shareholders’ equity and tangible assets are non-GAAP measures. For corresponding reconciliations of tangible shareholders’ equity and tangible assets to GAAP financial measures, see Supplemental Financial Data on page 3. We believe the use of these non-GAAP measures provide additional clarity in assessing the results of the Corporation.

LOGO

Preliminary data on risk-based capital

Outstanding Common Stock

No common shares were repurchased in the fourth quarter of 2009.

75.0 million shares remain outstanding under the 2008 authorized share repurchase program.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		6

Bank of America Corporation and Subsidiaries

Core Net Interest Income - Managed Basis

(Dollars in millions)


	Year Ended December 31								Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
	2009				2008				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
Net interest income ⁽¹⁾
As reported	$	48,410			$	46,554			$	11,896			$	11,753			$	11,942			$	12,819			$	13,406
Impact of market-based net interest income ⁽²⁾		(6,119	)			(4,939	)			(1,305	)			(1,395	)			(1,524	)			(1,895	)			(1,462	)

Core net interest income		42,291				41,615				10,591				10,358				10,418				10,924				11,944
Impact of securitizations ⁽³⁾		10,524				8,910				2,474				2,567				2,734				2,749				2,257

Core net interest income - managed basis	$	52,815			$	50,525			$	13,065			$	12,925			$	13,152			$	13,673			$	14,201


Average earning assets
As reported	$	1,830,193			$	1,562,729			$	1,807,898			$	1,790,000			$	1,811,981			$	1,912,483			$	1,616,673
Impact of market-based earning assets ⁽²⁾		(481,542	)			(360,667	)			(490,719	)			(468,999	)			(476,594	)			(489,985	)			(311,582	)

Core average earning assets		1,348,651				1,202,062				1,317,179				1,321,001				1,335,387				1,422,498				1,305,091
Impact of securitizations ⁽⁴⁾		83,640				100,145				75,337				81,703				86,154				91,567				93,189

Core average earning assets - managed basis	$	1,432,291			$	1,302,207			$	1,392,516			$	1,402,704			$	1,421,541			$	1,514,065			$	1,398,280


Net interest yield contribution ^{(1, 5}⁾
As reported		2.65		%		2.98		%		2.62		%		2.61		%		2.64		%		2.70		%		3.31		%
Impact of market-based activities ⁽²⁾		0.49				0.48				0.59				0.52				0.49				0.39				0.34

Core net interest yield on earning assets		3.14				3.46				3.21				3.13				3.13				3.09				3.65
Impact of securitizations		0.55				0.42				0.53				0.54				0.58				0.54				0.40

Core net interest yield on earning assets - managed basis		3.69		%		3.88		%		3.74		%		3.67		%		3.71		%		3.63		%		4.05		%

(1)

Fully taxable-equivalent basis

(2)

Represents the impact of market-based amounts included in Global Markets.

(3)

Represents the impact of securitizations utilizing actual bond costs. This is different from the business segment view which utilizes funds transfer pricing methodologies.

(4)

Represents average securitized loans less accrued interest receivable and certain securitized bonds retained.

(5)

Calculated on an annualized basis.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		7

Bank of America Corporation and Subsidiaries

Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis

(Dollars in millions)


	Fourth Quarter 2009						Third Quarter 2009						Fourth Quarter 2008
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Earning assets
Time deposits placed and other short-term investments	$	28,566	$	220	3.06	%	$	29,485	$	133	1.79	%	$	10,511	$	158	5.97	%
Federal funds sold and securities borrowed or purchased under agreements to resell		244,914		327	0.53			223,039		722	1.28			104,843		393	1.50
Trading account assets		218,787		1,800	3.28			212,488		1,909	3.58			179,687		2,170	4.82
Debt securities ⁽¹⁾		279,231		2,921	4.18			263,712		3,048	4.62			280,942		3,913	5.57
Loans and leases ⁽²⁾:
Residential mortgage ⁽³⁾		236,883		3,108	5.24			241,924		3,258	5.38			253,560		3,596	5.67
Home equity		150,704		1,613	4.26			153,269		1,614	4.19			151,943		1,954	5.12
Discontinued real estate		15,152		174	4.58			16,570		219	5.30			21,324		459	8.60
Credit card - domestic		49,213		1,336	10.77			49,751		1,349	10.76			64,906		1,784	10.94
Credit card - foreign		21,680		605	11.08			21,189		562	10.52			17,211		521	12.05
Direct/Indirect consumer⁽⁴⁾		98,938		1,361	5.46			100,012		1,439	5.71			83,331		1,714	8.18
Other consumer ⁽⁵⁾		3,177		50	6.33			3,331		60	7.02			3,544		70	7.83
Total consumer		575,747		8,247	5.70			586,046		8,501	5.77			595,819		10,098	6.76
Commercial - domestic		207,050		2,090	4.01			216,332		2,132	3.91			226,095		2,890	5.09
Commercial real estate ⁽⁶⁾		71,352		595	3.31			74,276		600	3.20			64,586		706	4.35
Commercial lease financing		21,769		273	5.04			22,068		178	3.22			22,069		242	4.40
Commercial - foreign		29,995		287	3.78			31,533		297	3.74			32,994		373	4.49
Total commercial		330,166		3,245	3.90			344,209		3,207	3.70			345,744		4,211	4.85
Total loans and leases		905,913		11,492	5.05			930,255		11,708	5.01			941,563		14,309	6.06
Other earning assets		130,487		1,222	3.72			131,021		1,333	4.05			99,127		959	3.85
Total earning assets ⁽⁷⁾		1,807,898		17,982	3.96			1,790,000		18,853	4.19			1,616,673		21,902	5.40
Cash and cash equivalents		230,618						196,116						77,388
Other assets, less allowance for loan and lease losses		383,015						404,559						254,793
Total assets	$	2,421,531					$	2,390,675					$	1,948,854

Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	33,749	$	54	0.63	%	$	34,170	$	49	0.57	%	$	31,561	$	58	0.73	%
NOW and money market deposit accounts		392,212		388	0.39			356,873		353	0.39			285,410		813	1.13
Consumer CDs and IRAs		192,779		835	1.72			214,284		1,100	2.04			229,410		1,835	3.18
Negotiable CDs, public funds and other time deposits		31,758		82	1.04			48,905		118	0.95			36,510		270	2.94
Total domestic interest-bearing deposits		650,498		1,359	0.83			654,232		1,620	0.98			582,891		2,976	2.03
Foreign interest-bearing deposits:
Banks located in foreign countries		16,477		30	0.73			15,941		29	0.73			41,398		125	1.20
Governments and official institutions		6,650		4	0.23			6,488		4	0.23			13,738		30	0.87
Time, savings and other		54,469		79	0.57			53,013		57	0.42			48,836		165	1.34
Total foreign interest-bearing deposits		77,596		113	0.58			75,442		90	0.47			103,972		320	1.22
Total interest-bearing deposits		728,094		1,472	0.80			729,674		1,710	0.93			686,863		3,296	1.91
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings		450,538		658	0.58			411,063		1,237	1.19			459,743		1,910	1.65
Trading account liabilities		83,118		591	2.82			73,290		455	2.46			65,058		524	3.20
Long-term debt		445,440		3,365	3.01			449,974		3,698	3.27			255,709		2,766	4.32
Total interest-bearing liabilities ⁽⁷⁾		1,707,190		6,086	1.42			1,664,001		7,100	1.70			1,467,373		8,496	2.30
Noninterest-bearing sources:
Noninterest-bearing deposits		267,066						259,621						205,278
Other liabilities		196,676						211,070						99,637
Shareholders’ equity		250,599						255,983						176,566
Total liabilities and shareholders’ equity	$	2,421,531					$	2,390,675					$	1,948,854
Net interest spread					2.54	%					2.49	%					3.10	%
Impact of noninterest-bearing sources					0.08						0.12						0.21
Net interest income/yield on earning assets			$	11,896	2.62	%			$	11,753	2.61	%			$	13,406	3.31	%

(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. Purchased impaired loans were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan.

(3)

Includes foreign residential mortgages of $550 million and $662 million for the fourth and third quarters of 2009.

(4)

Includes foreign consumer loans of $8.6 billion and $8.4 billion in the fourth and third quarters of 2009, and $2.0 billion in the fourth quarter of 2008.

(5)

Includes consumer finance loans of $2.3 billion and $2.4 billion in the fourth and third quarters of 2009, and $2.7 billion in the fourth quarter of 2008; and other foreign consumer loans of $689 million and $700 million in the fourth and third quarters of 2009, and $654 million in the fourth quarter of 2008.

(6)

Includes domestic commercial real estate loans of $68.2 billion and $70.7 billion in the fourth and third quarters of 2009, and $63.6 billion in the fourth quarter of 2008, and foreign commercial real estate loans of $3.1 billion and $3.6 billion in the fourth and third quarters of 2009, and $964 million in the fourth quarter of 2008.

(7)

Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $248 million and $136 million in the fourth and third quarters of 2009, and $41 million in the fourth quarter of 2008. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest expense on the underlying liabilities $(1.1) billion and $(873) million in the fourth and third quarters of 2009, and $237 million in the fourth quarter of 2008.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		8

Bank of America Corporation and Subsidiaries

Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis - Isolating Hedge Income/Expense⁽¹⁾

(Dollars in millions)


	Fourth Quarter 2009							Third Quarter 2009							Fourth Quarter 2008
	Average Balance		Interest Income/ Expense			Yield/ Rate		Average Balance		Interest Income/ Expense			Yield/ Rate		Average Balance		Interest Income/ Expense			Yield/ Rate
Earning assets
Time deposits placed and other short-term investments ⁽²⁾	$	28,566	$	220		3.06	%	$	29,485	$	133		1.79	%	$	10,511	$	162		6.13		%
Federal funds sold and securities borrowed or purchased under agreements to resell⁽²⁾		244,914		253		0.41			223,039		627		1.11			104,843		414		1.57
Trading account assets⁽²⁾		218,787		1,844		3.36			212,488		1,915		3.59			179,687		2,170		4.82
Debt securities ⁽²⁾		279,231		3,176		4.54			263,712		3,261		4.94			280,942		3,928		5.59
Loans and leases:
Residential mortgage		236,883		3,108		5.24			241,924		3,258		5.38			253,560		3,596		5.67
Home equity		150,704		1,613		4.26			153,269		1,614		4.19			151,943		1,954		5.12
Discontinued real estate		15,152		174		4.58			16,570		219		5.30			21,324		459		8.60
Credit card - domestic		49,213		1,336		10.77			49,751		1,349		10.76			64,906		1,784		10.94
Credit card - foreign		21,680		605		11.08			21,189		562		10.52			17,211		521		12.05
Direct/Indirect consumer		98,938		1,361		5.46			100,012		1,439		5.71			83,331		1,714		8.18
Other consumer		3,177		50		6.33			3,331		60		7.02			3,544		70		7.83
Total consumer		575,747		8,247		5.70			586,046		8,501		5.77			595,819		10,098		6.76
Commercial - domestic⁽²⁾		207,050		2,113		4.05			216,332		2,144		3.93			226,095		2,893		5.09
Commercial real estate		71,352		595		3.31			74,276		600		3.20			64,586		706		4.35
Commercial lease financing		21,769		273		5.04			22,068		178		3.22			22,069		242		4.40
Commercial - foreign		29,995		287		3.78			31,533		297		3.74			32,994		373		4.49
Total commercial		330,166		3,268		3.93			344,209		3,219		3.71			345,744		4,214		4.85
Total loans and leases		905,913		11,515		5.06			930,255		11,720		5.01			941,563		14,312		6.06
Other earning assets ⁽²⁾		130,487		1,222		3.72			131,021		1,333		4.05			99,127		957		3.85
Total earning assets - excluding hedge impact		1,807,898		18,230		4.01			1,790,000		18,989		4.22			1,616,673		21,943		5.41
Net hedge income (expense) on assets				(248	)						(136	)						(41	)
Total earning assets - including hedge impact		1,807,898		17,982		3.96			1,790,000		18,853		4.19			1,616,673		21,902		5.40
Cash and cash equivalents		230,618							196,116							77,388
Other assets, less allowance for loan and lease losses		383,015							404,559							254,793
Total assets	$	2,421,531						$	2,390,675						$	1,948,854

Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	33,749	$	54		0.63	%	$	34,170	$	49		0.57	%	$	31,561	$	58		0.73		%
NOW and money market deposit accounts		392,212		388		0.39			356,873		353		0.39			285,410		813		1.13
Consumer CDs and IRAs⁽²⁾		192,779		791		1.63			214,284		1,054		1.95			229,410		1,765		3.06
Negotiable CDs, public funds and other time deposits⁽²⁾		31,758		80		0.99			48,905		114		0.92			36,510		267		2.90
Total domestic interest-bearing deposits		650,498		1,313		0.80			654,232		1,570		0.95			582,891		2,903		1.98
Foreign interest-bearing deposits:
Banks located in foreign countries⁽²⁾		16,477		14		0.35			15,941		14		0.37			41,398		119		1.14
Governments and official institutions		6,650		4		0.23			6,488		4		0.23			13,738		30		0.87
Time, savings and other		54,469		79		0.57			53,013		57		0.42			48,836		165		1.34
Total foreign interest-bearing deposits		77,596		97		0.50			75,442		75		0.40			103,972		314		1.20
Total interest-bearing deposits		728,094		1,410		0.77			729,674		1,645		0.90			686,863		3,217		1.86
Federal funds purchased and securities loaned or sold under agreement to repurchase and other short-term borrowings⁽²⁾		450,538		551		0.49			411,063		1,059		1.02			459,743		1,549		1.34
Trading account liabilities		83,118		591		2.82			73,290		455		2.46			65,058		524		3.20
Long-term debt ⁽²⁾		445,440		4,605		4.12			449,974		4,814		4.26			255,709		2,969		4.64
Total interest-bearing liabilities - excluding hedge impact		1,707,190		7,157		1.66			1,664,001		7,973		1.90			1,467,373		8,259		2.24
Net hedge (income) expense on liabilities				(1,071	)						(873	)						237
Total interest-bearing liabilities - including hedge impact		1,707,190		6,086		1.42			1,664,001		7,100		1.70			1,467,373		8,496		2.30
Noninterest-bearing sources:
Noninterest-bearing deposits		267,066							259,621							205,278
Other liabilities		196,676							211,070							99,637
Shareholders’ equity		250,599							255,983							176,566
Total liabilities and shareholders’ equity	$	2,421,531						$	2,390,675						$	1,948,854
Net interest spread						2.35							2.32							3.17
Impact of noninterest-bearing sources						0.08							0.12							0.21
Net interest income/yield on earning assets - excluding hedge impact			$	11,073		2.43	%			$	11,016		2.44	%			$	13,684		3.38		%
Net impact of hedge income (expense)				823		0.19					737		0.17					(278	)	(0.07	)
Net interest income/yield on earning assets			$	11,896		2.62	%			$	11,753		2.61	%			$	13,406		3.31		%

(1)

This table presents a non-GAAP financial measure. The impact of interest rate risk management derivatives is shown separately. Interest income and interest expense amounts, and the yields and rates have been adjusted. Management believes this presentation is useful to investors because it adjusts for the impact of our hedging decisions and provides a better understanding of our hedging activities. The impact of interest rate risk management derivatives is not material to the average balances presented above.

(2)

The impact of interest rate risk management derivatives on interest income and interest expense is presented below.

Interest income excludes the impact of interest rate risk management contracts, which increased (decreased) interest income on:


	Fourth Quarter 2009			Third Quarter 2009			Fourth Quarter 2008
Time deposits placed and other short-term investments	$	—		$	—		$	(4	)
Federal funds sold and securities borrowed or purchased under agreements to resell		74			95			(21	)
Trading account assets		(44	)		(6	)		—
Debt securities		(255	)		(213	)		(15	)
Commercial - domestic		(23	)		(12	)		(3	)
Other earning assets		—			—			2

Net hedge income (expense) on assets	$	(248	)	$	(136	)	$	(41	)


Interest expense excludes the impact of interest rate risk management contracts, which increased (decreased) interest expense on:

Consumer CDs and IRAs	$	44		$	46		$	70
Negotiable CDs, public funds and other time deposits		2			4			3
Banks located in foreign countries		16			15			6
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings		107			178			361
Long-term debt		(1,240	)		(1,116	)		(203	)

Net hedge (income) expense on liabilities	$	(1,071	)	$	(873	)	$	237

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		9

Bank of America Corporation and Subsidiaries

Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis

(Dollars in millions)


	Year Ended December 31
	2009						2008
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Earning assets
Time deposits placed and other short-term investments	$	27,465	$	713	2.60	%	$	10,696	$	440	4.11	%
Federal funds sold and securities borrowed or purchased under agreements to resell		235,764		2,894	1.23			128,053		3,313	2.59
Trading account assets		217,048		8,236	3.79			186,579		9,259	4.96
Debt securities ⁽¹⁾		271,048		13,224	4.88			250,551		13,383	5.34
Loans and leases ⁽²⁾:
Residential mortgage ⁽³⁾		249,335		13,535	5.43			260,244		14,657	5.63
Home equity		154,761		6,736	4.35			135,060		7,606	5.63
Discontinued real estate		17,340		1,082	6.24			10,898		858	7.87
Credit card - domestic		52,378		5,666	10.82			63,318		6,843	10.81
Credit card - foreign		19,655		2,122	10.80			16,527		2,042	12.36
Direct/Indirect consumer ⁽⁴⁾		99,993		6,016	6.02			82,516		6,934	8.40
Other consumer ⁽⁵⁾		3,303		237	7.17			3,816		321	8.41
Total consumer		596,765		35,394	5.93			572,379		39,261	6.86
Commercial - domestic		223,813		8,883	3.97			220,561		11,702	5.31
Commercial real estate ⁽⁶⁾		73,349		2,372	3.23			63,208		3,057	4.84
Commercial lease financing		21,979		990	4.51			22,290		799	3.58
Commercial - foreign		32,899		1,406	4.27			32,440		1,503	4.63
Total commercial		352,040		13,651	3.88			338,499		17,061	5.04
Total loans and leases		948,805		49,045	5.17			910,878		56,322	6.18
Other earning assets		130,063		5,105	3.92			75,972		4,161	5.48
Total earning assets ⁽⁷⁾		1,830,193		79,217	4.33			1,562,729		86,878	5.56
Cash and cash equivalents		196,237						45,354
Other assets, less allowance for loan and lease losses		411,087						235,896
Total assets	$	2,437,517					$	1,843,979

Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	33,671	$	215	0.64	%	$	32,204	$	230	0.71	%
NOW and money market deposit accounts		358,847		1,557	0.43			267,818		3,781	1.41
Consumer CDs and IRAs		218,041		5,054	2.32			203,887		7,404	3.63
Negotiable CDs, public funds and other time deposits		37,661		473	1.26			32,264		1,076	3.33
Total domestic interest-bearing deposits		648,220		7,299	1.13			536,173		12,491	2.33
Foreign interest-bearing deposits:
Banks located in foreign countries		19,397		144	0.74			37,657		1,063	2.82
Governments and official institutions		7,580		18	0.23			13,004		311	2.39
Time, savings and other		55,026		346	0.63			51,363		1,385	2.70
Total foreign interest-bearing deposits		82,003		508	0.62			102,024		2,759	2.70
Total interest-bearing deposits		730,223		7,807	1.07			638,197		15,250	2.39
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings		488,644		5,512	1.13			455,710		12,362	2.71
Trading account liabilities		72,207		2,075	2.87			72,915		2,774	3.80
Long-term debt		446,634		15,413	3.45			231,235		9,938	4.30
Total interest-bearing liabilities ⁽⁷⁾		1,737,708		30,807	1.77			1,398,057		40,324	2.88
Noninterest-bearing sources:
Noninterest-bearing deposits		250,743						192,947
Other liabilities		204,421						88,144
Shareholders’ equity		244,645						164,831
Total liabilities and shareholders’ equity	$	2,437,517					$	1,843,979
Net interest spread					2.56	%					2.68	%
Impact of noninterest-bearing sources					0.09						0.30
Net interest income/yield on earning assets			$	48,410	2.65	%			$	46,554	2.98	%

(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)

(3)

Includes foreign residential mortgages of $622 million for the year ended December 31, 2009.

(4)

Includes foreign consumer loans of $8.0 billion and $2.7 billion for the year ended December 31, 2009 and 2008.

(5)

Includes consumer finance loans of $2.4 billion and $2.8 billion, and other foreign consumer loans of $657 million and $774 million for the year ended December 31, 2009 and 2008.

(6)

Includes domestic commercial real estate loans of $70.7 billion and $62.1 billion, and foreign commercial real estate loans of $2.7 billion and $1.1 billion for the year ended December 31, 2009 and 2008.

(7)

Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $456 million and $260 million for the year ended December 31, 2009 and 2008. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest expense on the underlying liabilities $(3.0) billion and $409 million for the year ended December 31, 2009 and 2008.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		10

Bank of America Corporation and Subsidiaries

Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis - Isolating Hedge Income/Expense⁽¹⁾

(Dollars in millions)


	Year Ended December 31
	2009							2008
	Average Balance		Interest Income/ Expense			Yield/ Rate		Average Balance		Interest Income/ Expense			Yield/ Rate
Earning assets
Time deposits placed and other short-term investments ⁽²⁾	$	27,465	$	716		2.61	%	$	10,696	$	456		4.26		%
Federal funds sold and securities borrowed or purchased under agreements to resell ⁽²⁾		235,764		2,666		1.13			128,053		3,507		2.74
Trading account assets ⁽²⁾		217,048		8,286		3.82			186,579		9,259		4.91
Debt securities ⁽²⁾		271,048		13,754		5.07			250,551		13,402		5.35
Loans and leases:
Residential mortgage		249,335		13,535		5.43			260,244		14,657		5.63
Home equity		154,761		6,736		4.35			135,060		7,606		5.63
Discontinued real estate		17,340		1,082		6.24			10,898		858		7.87
Credit card - domestic		52,378		5,666		10.82			63,318		6,843		10.81
Credit card - foreign		19,655		2,122		10.80			16,527		2,042		12.36
Direct/Indirect consumer		99,993		6,016		6.02			82,516		6,934		8.40
Other consumer		3,303		237		7.17			3,816		321		8.41
Total consumer		596,765		35,394		5.93			572,379		39,261		6.86
Commercial - domestic ⁽²⁾		223,813		8,984		4.01			220,561		11,733		5.32
Commercial real estate		73,349		2,372		3.23			63,208		3,057		4.84
Commercial lease financing		21,979		990		4.51			22,290		799		3.58
Commercial - foreign		32,899		1,406		4.27			32,440		1,503		4.63
Total commercial		352,040		13,752		3.91			338,499		17,092		5.05
Total loans and leases		948,805		49,146		5.18			910,878		56,353		6.19
Other earning assets		130,063		5,105		3.92			75,972		4,161		5.48
Total earning assets - excluding hedge impact		1,830,193		79,673		4.35			1,562,729		87,138		5.58
Net hedge income (expense) on assets				(456	)						(260	)
Total earning assets - including hedge impact		1,830,193		79,217		4.33			1,562,729		86,878		5.56
Cash and cash equivalents		196,237							45,354
Other assets, less allowance for loan and lease losses		411,087							235,896
Total assets	$	2,437,517						$	1,843,979

Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	33,671	$	215		0.64	%	$	32,204	$	230		0.71		%
NOW and money market deposit accounts ⁽²⁾		358,847		1,558		0.43			267,818		3,771		1.41
Consumer CDs and IRAs ⁽²⁾		218,041		4,841		2.22			203,887		7,015		3.44
Negotiable CDs, public funds and other time deposits ⁽²⁾		37,661		459		1.22			32,264		1,066		3.30
Total domestic interest-bearing deposits		648,220		7,073		1.09			536,173		12,082		2.25
Foreign interest-bearing deposits:
Banks located in foreign countries ⁽²⁾		19,397		93		0.48			37,657		1,068		2.84
Governments and official institutions		7,580		18		0.23			13,004		311		2.39
Time, savings and other		55,026		346		0.63			51,363		1,385		2.70
Total foreign interest-bearing deposits		82,003		457		0.56			102,024		2,764		2.71
Total interest-bearing deposits		730,223		7,530		1.03			638,197		14,846		2.33
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings ⁽²⁾		488,644		4,682		0.96			455,710		11,601		2.55
Trading account liabilities		72,207		2,075		2.87			72,915		2,774		3.80
Long-term debt ⁽²⁾		446,634		19,526		4.37			231,235		10,694		4.62
Total interest-bearing liabilities - excluding hedge impact		1,737,708		33,813		1.95			1,398,057		39,915		2.86
Net hedge (income) expense on liabilities				(3,006	)						409
Total interest-bearing liabilities - including hedge impact		1,737,708		30,807		1.77			1,398,057		40,324		2.88
Noninterest-bearing sources:
Noninterest-bearing deposits		250,743							192,947
Other liabilities		204,421							88,144
Shareholders’ equity		244,645							164,831
Total liabilities and shareholders’ equity	$	2,437,517						$	1,843,979
Net interest spread						2.40							2.72
Impact of noninterest-bearing sources						0.10							0.30
Net interest income/yield on earning assets - excluding hedge impact			$	45,860		2.50	%			$	47,223		3.02		%
Net impact of hedge income (expense)				2,550		0.15					(669	)	(0.04	)
Net interest income/yield on earning assets			$	48,410		2.65	%			$	46,554		2.98		%

(1)

(2)

The impact of interest rate risk management derivatives on interest income and interest expense is presented below.

Interest income excludes the impact of interest rate risk management contracts, which increased (decreased) interest income on:


	Year Ended December 31
	2009			2008
Time deposits placed and other short-term investments	$	(3	)	$	(16	)
Federal funds sold and securities borrowed or purchased under agreements to resell		228			(194	)
Trading account assets		(50	)		—
Debt securities		(530	)		(19	)
Commercial - domestic		(101	)		(31	)
Net hedge income (expense) on assets	$	(456	)	$	(260	)

Interest expense excludes the impact of interest rate risk management contracts, which increased (decreased) interest expense on:

NOW and money market deposit accounts	$	(1	)	$	10
Consumer CDs and IRAs		213			389
Negotiable CDs, public funds and other time deposits		14			10
Banks located in foreign countries		51			(5	)
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings		830			761
Long-term debt		(4,113	)		(756	)
Net hedge (income) expense on liabilities	$	(3,006	)	$	409

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		11

Bank of America Corporation and Subsidiaries

Debt Securities and Available-for-Sale Marketable Equity Securities

(Dollars in millions)


	December 31, 2009
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale debt securities
U.S. Treasury and agency securities	$	22,648	$	414	$	(37	)	$	23,025
Mortgage-backed securities:
Agency		164,677		2,415		(846	)		166,246
Agency collateralized mortgage obligations		25,330		464		(13	)		25,781
Non-agency residential		37,940		1,191		(4,028	)		35,103
Non-agency commercial		6,354		671		(116	)		6,909
Foreign securities		4,732		61		(896	)		3,897
Corporate bonds		6,136		182		(126	)		6,192
Other taxable securities ⁽¹⁾		19,475		245		(478	)		19,242

Total taxable securities		287,292		5,643		(6,540	)		286,395
Tax-exempt securities		15,334		115		(243	)		15,206

Total available-for-sale debt securities	$	302,626	$	5,758	$	(6,783	)	$	301,601

Held-to-maturity debt securities ⁽²⁾		9,840		—		(156	)		9,684

Total debt securities	$	312,466	$	5,758	$	(6,939	)	$	311,285

Available-for-sale marketable equity securities ⁽³⁾	$	6,020	$	3,895	$	(507	)	$	9,408


	September 30, 2009
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale debt securities
U.S. Treasury and agency securities	$	26,562	$	439	$	(32	)	$	26,969
Mortgage-backed securities:
Agency		120,653		3,007		(165	)		123,495
Agency collateralized mortgage obligations		16,012		243		(135	)		16,120
Non-agency residential		38,142		1,103		(5,110	)		34,135
Non-agency commercial		6,201		761		(143	)		6,819
Foreign securities		5,017		40		(897	)		4,160
Corporate bonds		5,853		156		(122	)		5,887
Other taxable securities ⁽¹⁾		18,844		300		(505	)		18,639

Total taxable securities		237,284		6,049		(7,109	)		236,224
Tax-exempt securities		10,939		209		(172	)		10,976

Total available-for-sale debt securities	$	248,223	$	6,258	$	(7,281	)	$	247,200

Held-to-maturity debt securities ⁽²⁾		9,545		—		(1,666	)		7,879

Total debt securities	$	257,768	$	6,258	$	(8,947	)	$	255,079

Available-for-sale marketable equity securities ⁽³⁾	$	6,189	$	3,172	$	(612	)	$	8,749

(1)

Includes asset-backed securities.

(2)

Includes asset-backed securities that were issued by the Corporation’s credit card securitization trust and retained by the corporation with an amortized cost of $6.6 billion and a fair value of $6.4 billion at December 31, 2009 and $6.9 billion and $5.3 billion at September 30, 2009.

(3)

Represents those available-for-sale marketable equity securities that are recorded in other assets on the Consolidated Balance Sheet.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		12

Bank of America Corporation and Subsidiaries

Quarterly Results by Business Segment

(Dollars in millions)


	Fourth Quarter 2009
	Total Corporation			Deposits		Global Card Services ⁽¹⁾			Home Loans & Insurance			Global Banking		Global Markets			GWIM		All Other ⁽¹⁾
Net interest income ⁽²⁾	$	11,896		$	1,779	$	4,953		$	1,275		$	2,869	$	1,304		$	1,275	$	(1,559	)
Noninterest income (loss)		13,517			1,669		2,208			2,518			2,063		2,139			4,233		(1,313	)

Total revenue, net of interest expense		25,413			3,448		7,161			3,793			4,932		3,443			5,508		(2,872	)

Provision for credit losses		10,110			91		6,924			2,249			2,063		252			54		(1,523	)
Noninterest expense		16,385			2,374		1,936			3,165			2,409		2,078			3,330		1,093

Income (loss) before income taxes		(1,082	)		983		(1,699	)		(1,621	)		460		1,113			2,124		(2,442	)
Income tax expense (benefit) ⁽²⁾		(888	)		388		(671	)		(628	)		196		(71	)		793		(895	)

Net income (loss)	$	(194	)	$	595	$	(1,028	)	$	(993	)	$	264	$	1,184		$	1,331	$	(1,547	)


Average
Total loans and leases	$	905,913			n/m	$	204,748		$	132,326		$	297,488		n/m		$	100,264	$	146,185
Total assets ⁽³⁾		2,421,531		$	442,127		219,904			232,945			412,923	$	632,673			252,608		n/m
Total deposits		995,160			416,464		n/m			n/m			228,995		n/m			223,056		91,775
Allocated equity		250,599			24,082		42,176			26,220			60,850		32,528			19,737		45,006

Period end
Total loans and leases	$	900,128			n/m	$	201,230		$	131,302		$	291,117		n/m		$	99,596	$	152,944
Total assets ⁽³⁾		2,223,299		$	445,363		217,139			232,706			398,061	$	538,456			254,192		n/m
Total deposits		991,611			419,583		n/m			n/m			227,437		n/m			224,840		78,618

	Third Quarter 2009
	Total Corporation			Deposits		Global Card Services ⁽¹⁾			Home Loans & Insurance			Global Banking		Global Markets			GWIM		All Other ⁽¹⁾
Net interest income ⁽²⁾	$	11,753		$	1,740	$	4,995		$	1,309		$	2,785	$	1,406		$	1,333	$	(1,815	)
Noninterest income (loss)		14,612			1,926		2,332			2,102			1,886		4,365			2,765		(764	)

Total revenue, net of interest expense		26,365			3,666		7,327			3,411			4,671		5,771			4,098		(2,579	)

Provision for credit losses		11,705			102		6,975			2,896			2,340		98			515		(1,221	)
Noninterest expense		16,306			2,336		1,969			3,042			2,258		2,328			3,168		1,205

Income (loss) before income taxes		(1,646	)		1,228		(1,617	)		(2,527	)		73		3,345			415		(2,563	)
Income tax expense (benefit) ⁽²⁾		(645	)		430		(581	)		(895	)		33		1,190			141		(963	)

Net income (loss)	$	(1,001	)	$	798	$	(1,036	)	$	(1,632	)	$	40	$	2,155		$	274	$	(1,600	)


Average
Total loans and leases	$	930,255			n/m	$	213,340		$	132,599		$	308,764		n/m		$	101,181	$	147,666
Total assets ⁽³⁾		2,390,675		$	443,982		228,384			236,200			405,231	$	633,909			239,346		n/m
Total deposits		989,295			418,511		n/m			n/m			214,286		n/m			214,994		108,244
Allocated equity		255,983			23,874		41,037			24,743			61,381		31,270			19,490		54,188

Period end
Total loans and leases	$	914,266			n/m	$	207,727		$	134,255		$	300,814		n/m		$	99,307	$	145,856
Total assets ⁽³⁾		2,251,043		$	442,274		223,980			234,842			381,092	$	588,641			249,189		n/m
Total deposits		974,899			416,949		n/m			n/m			210,211		n/m			220,482		94,573

	Fourth Quarter 2008
	Total Corporation			Deposits		Global Card Services ⁽¹⁾			Home Loans & Insurance			Global Banking		Global Markets			GWIM		All Other ⁽¹⁾
Net interest income ⁽²⁾	$	13,406		$	2,971	$	5,310		$	1,006		$	3,114	$	1,532		$	1,348	$	(1,875	)
Noninterest income		2,574			1,686		2,708			2,247			945		(6,087	)		643		432

Total revenue, net of interest expense		15,980			4,657		8,018			3,253			4,059		(4,555	)		1,991		(1,443	)

Provision for credit losses		8,535			107		5,851			1,623			1,402		13			152		(613	)
Noninterest expense		10,947			2,215		2,179			2,752			1,179		1,105			1,069		448

Income (loss) before income taxes		(3,502	)		2,335		(12	)		(1,122	)		1,478		(5,673	)		770		(1,278	)
Income tax expense (benefit) ⁽²⁾		(1,713	)		772		(3	)		(415	)		446		(2,020	)		255		(748	)

Net income (loss)	$	(1,789	)	$	1,563	$	(9	)	$	(707	)	$	1,032	$	(3,653	)	$	515	$	(530	)


Average
Total loans and leases	$	941,563			n/m	$	233,427		$	122,065		$	331,115		n/m		$	88,876	$	145,241
Total assets ⁽³⁾		1,948,854		$	393,463		253,455			204,826			397,556	$	390,274			185,744		n/m
Total deposits		892,141			377,987		n/m			n/m			199,465		n/m			172,435		110,471
Allocated equity		176,566			24,493		40,294			15,477			53,667		15,525			11,767		15,343

Period end
Total loans and leases	$	931,446			n/m	$	233,040		$	122,947		$	328,574		n/m		$	89,401	$	136,163
Total assets ⁽³⁾		1,817,943		$	390,487		252,683			205,046			394,541	$	306,693			189,073		n/m
Total deposits		882,997			375,763		n/m			n/m			215,519		n/m			176,186		86,888

(1)

Global Card Services is presented on a managed basis with a corresponding offset recorded in All Other.

(2)

Fully taxable-equivalent basis

(3)

Total assets include asset allocations to match liabilities (i.e., deposits).

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		13

Bank of America Corporation and Subsidiaries

Year-to-Date Results by Business Segment

(Dollars in millions)


	Year Ended December 31, 2009
	Total Corporation			Deposits		Global Card Services ⁽¹⁾			Home Loans & Insurance			Global Banking		Global Markets			GWIM		All Other ⁽¹⁾
Net interest income ⁽²⁾	$	48,410		$	7,160	$	20,264		$	4,974		$	11,250	$	6,120		$	5,564	$	(6,922	)
Noninterest income		72,534			6,848		9,078			11,928			11,785		14,506			12,559		5,830

Total revenue, net of interest expense		120,944			14,008		29,342			16,902			23,035		20,626			18,123		(1,092	)

Provision for credit losses		48,570			380		30,081			11,244			8,835		400			1,061		(3,431	)
Noninterest expense		66,713			9,693		7,961			11,683			9,539		10,042			13,077		4,718

Income (loss) before income taxes		5,661			3,935		(8,700	)		(6,025	)		4,661		10,184			3,985		(2,379	)
Income tax expense (benefit) ⁽²⁾		(615	)		1,429		(3,145	)		(2,187	)		1,692		3,007			1,446		(2,857	)

Net income (loss)	$	6,276		$	2,506	$	(5,555	)	$	(3,838	)	$	2,969	$	7,177		$	2,539	$	478


Average
Total loans and leases	$	948,805			n/m	$	216,654		$	130,519		$	315,002		n/m		$	103,398	$	155,561
Total assets ⁽³⁾		2,437,517		$	432,268		232,643			230,234			394,140	$	656,621			251,969		n/m
Total deposits		980,966			406,833		n/m			n/m			211,261		n/m			225,980		103,122
Allocated equity		244,645			23,756		41,409			20,533			60,273		30,765			18,894		49,015

Period end
Total loans and leases	$	900,128			n/m	$	201,230		$	131,302		$	291,117		n/m		$	99,596	$	152,944
Total assets ⁽³⁾		2,223,299		$	445,363		217,139			232,706			398,061	$	538,456			254,192		n/m
Total deposits		991,611			419,583		n/m			n/m			227,437		n/m			224,840		78,618

	Year Ended December 31, 2008
	Total Corporation			Deposits		Global Card Services ⁽¹⁾			Home Loans & Insurance			Global Banking		Global Markets			GWIM		All Other ⁽¹⁾
Net interest income ⁽²⁾	$	46,554		$	10,970	$	19,589		$	3,311		$	10,755	$	5,151		$	4,797	$	(8,019	)
Noninterest income		27,422			6,870		11,631			5,999			6,041		(8,982	)		3,012		2,851

Total revenue, net of interest expense		73,976			17,840		31,220			9,310			16,796		(3,831	)		7,809		(5,168	)

Provision for credit losses		26,825			399		20,164			6,287			3,130		(50	)		664		(3,769	)
Noninterest expense		41,529			8,783		9,160			6,962			6,684		3,906			4,910		1,124

Income (loss) before income taxes		5,622			8,658		1,896			(3,939	)		6,982		(7,687	)		2,235		(2,523	)
Income tax expense (benefit) ⁽²⁾		1,614			3,146		662			(1,457	)		2,510		(2,771	)		807		(1,283	)

Net income (loss)	$	4,008		$	5,512	$	1,234		$	(2,482	)	$	4,472	$	(4,916	)	$	1,428	$	(1,240	)


Average
Total loans and leases	$	910,878			n/m	$	236,714		$	105,724		$	318,325		n/m		$	87,593	$	135,789
Total assets ⁽³⁾		1,843,979		$	379,067		258,710			147,461			382,790	$	427,734			170,973		n/m
Total deposits		831,144			357,608		n/m			n/m			177,528		n/m			160,702	$	105,725
Allocated equity		164,831			24,445		39,186			9,517			50,583		12,839			11,698		16,563

Period end
Total loans and leases	$	931,446			n/m	$	233,040		$	122,947		$	328,574		n/m		$	89,401	$	136,163
Total assets ⁽³⁾		1,817,943		$	390,487		252,683			205,046			394,541	$	306,693			189,073		n/m
Total deposits		882,997			375,763		n/m			n/m			215,519		n/m			176,186		86,888

(1)

Global Card Services is presented on a managed basis with a corresponding offset recorded in All Other.

(2)

Fully taxable-equivalent basis

(3)

Total assets include asset allocations to match liabilities (i.e., deposits).

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		14

Bank of America Corporation and Subsidiaries

Deposits Segment Results ⁽¹⁾

(Dollars in millions)


	Year Ended December 31						Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009			First Quarter 2009			Fourth Quarter 2008
	2009			2008			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009			First Quarter 2009			Fourth Quarter 2008
Net interest income ⁽²⁾	$	7,160		$	10,970		$	1,779		$	1,740		$	1,740		$	1,901		$	2,971
Noninterest income:
Service charges		6,802			6,801			1,646			1,906			1,748			1,502			1,675
All other income		46			69			23			20			2			1			11

Total noninterest income		6,848			6,870			1,669			1,926			1,750			1,503			1,686

Total revenue, net of interest expense		14,008			17,840			3,448			3,666			3,490			3,404			4,657

Provision for credit losses		380			399			91			102			96			91			107
Noninterest expense		9,693			8,783			2,374			2,336			2,637			2,346			2,215

Income before income taxes		3,935			8,658			983			1,228			757			967			2,335
Income tax expense ⁽²⁾		1,429			3,146			388			430			248			363			772

Net income	$	2,506		$	5,512		$	595		$	798		$	509		$	604		$	1,563

Net interest yield ⁽²⁾		1.77	%		3.13	%		1.70	%		1.66	%		1.69	%		2.05	%		3.22	%
Return on average equity		10.55			22.55			9.79			13.26			8.66			10.44			25.39
Efficiency ratio ⁽²⁾		69.19			49.23			68.86			63.72			75.54			68.91			47.58

Balance sheet

Average
Total earning assets ⁽³⁾	$	405,563		$	349,930		$	415,191		$	417,095		$	414,200		$	375,199		$	366,661
Total assets ⁽³⁾		432,268			379,067			442,127			443,982			440,804			401,584			393,463
Total deposits		406,833			357,608			416,464			418,511			415,501			376,285			377,987
Allocated equity		23,756			24,445			24,082			23,874			23,576			23,484			24,493

Period end
Total earning assets ⁽³⁾	$	418,156		$	363,334		$	418,156		$	415,508		$	420,465		$	389,435		$	363,334
Total assets ⁽³⁾		445,363			390,487			445,363			442,274			446,650			415,765			390,487
Total deposits		419,583			375,763			419,583			416,949			421,648			390,245			375,763

(1)

Deposits includes the net impact of migrating customers and their related deposit balances between Global Wealth & Investment Management (GWIM) and Deposits. After migration, the associated net interest income, service charges and noninterest expense are recorded in the applicable segment.

(2)

Fully taxable-equivalent basis

(3)

Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits).

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		15

Bank of America Corporation and Subsidiaries

Deposits Key Indicators

(Dollars in millions, except as noted)


	Year Ended December 31							Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
	2009				2008			Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
Average deposit balances
Checking	$	134,184			$	125,706		$	138,926			$	136,603			$	135,356			$	125,679			$	124,212
Savings		31,614				29,249			31,995				32,374				32,488				29,564				28,687
MMS		94,330				74,012			108,849				98,659				91,275				78,154				80,391
CDs and IRAs		143,519				125,507			133,714				147,844				152,828				139,708				141,499
Foreign and other		3,186				3,134			2,980				3,031				3,554				3,180				3,198

Total average deposit balances	$	406,833			$	357,608		$	416,464			$	418,511			$	415,501			$	376,285			$	377,987


Total balances migrated to (from) GWIM	$	(43,433	)		$	20,476		$	(33	)		$	(2,920	)		$	(34,340	)		$	(6,140	)		$	4,542

Deposit spreads (excludes noninterest costs)
Checking		3.99		%		4.23	%		3.82		%		3.93		%		4.07		%		4.18		%		4.25	%
Savings		3.81				3.80			3.67				3.83				3.87				3.89				3.82
MMS		0.43				1.21			0.59				0.58				0.55				(0.14	)			0.91
CDs and IRAs		0.04				0.32			0.02				(0.01	)			0.05				0.09				0.26
Foreign and other		3.58				3.67			3.45				3.46				3.68				3.72				3.60
Total deposit spreads		1.74				2.17			1.73				1.72				1.78				1.71				1.99

Online banking (end of period)
Active accounts (units in thousands)		29,600				28,302			29,600				29,209				28,649				28,885				28,302
Active billpay accounts (units in thousands)		14,966				14,963			14,966				15,107				15,115				15,134				14,963

LOGO

Bank of America has the largest active online banking customer base with 29.6 million subscribers.

Bank of America uses a strict Active User standard - customers must have used our online services within the last 90 days.

15.0 million active bill pay users paid $76.5 billion worth of bills this quarter. The number of customers who sign up and use Bank of America’s Bill Pay Service continues to surpass that of any other financial institution.

Currently, approximately 333 companies are presenting 38.3 million e-bills per quarter.

(1)

Excludes certain Countrywide online activities.

Certain prior period amounts have been reclassified to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		16

Bank of America Corporation and Subsidiaries

Global Card Services Segment Results ⁽¹⁾

(Dollars in millions)


	Year Ended December 31							Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
	2009				2008			Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
Net interest income ⁽²⁾	$	20,264			$	19,589		$	4,953			$	4,995			$	5,051			$	5,265			$	5,310
Noninterest income:
Card income		8,555				10,033			2,093				2,183				2,164				2,115				2,469
All other income		523				1,598			115				149				124				135				239

Total noninterest income		9,078				11,631			2,208				2,332				2,288				2,250				2,708

Total revenue, net of interest expense		29,342				31,220			7,161				7,327				7,339				7,515				8,018

Provision for credit losses ⁽³⁾		30,081				20,164			6,924				6,975				7,741				8,441				5,851
Noninterest expense		7,961				9,160			1,936				1,969				1,977				2,079				2,179

Income (loss) before income taxes		(8,700	)			1,896			(1,699	)			(1,617	)			(2,379	)			(3,005	)			(12	)
Income tax expense (benefit) ⁽²⁾		(3,145	)			662			(671	)			(581	)			(762	)			(1,131	)			(3	)

Net income (loss)	$	(5,555	)		$	1,234		$	(1,028	)		$	(1,036	)		$	(1,617	)		$	(1,874	)		$	(9	)


Net interest yield ⁽²⁾		9.36		%		8.26	%		9.62		%		9.30		%		9.20		%		9.35		%		9.05		%
Return on average equity		n/m				3.15			n/m				n/m				n/m				n/m				n/m
Efficiency ratio ⁽²⁾		27.13				29.34			27.05				26.87				26.94				27.66				27.18

Balance sheet

Average
Total loans and leases	$	216,654			$	236,714		$	204,748			$	213,340			$	220,365			$	228,461			$	233,427
Total earning assets		216,410				237,025			204,375				212,976				220,133				228,460				233,513
Total assets		232,643				258,710			219,904				228,384				236,016				246,610				253,455
Allocated equity		41,409				39,186			42,176				41,037				42,117				40,289				40,294

Period end
Total loans and leases	$	201,230			$	233,040		$	201,230			$	207,727			$	215,904			$	221,984			$	233,040
Total earning assets		200,988				233,094			200,988				207,520				215,633				221,794				233,094
Total assets		217,139				252,683			217,139				223,980				231,987				238,410				252,683

(1)

Presented on a managed basis. (See Exhibit A: Non-GAAP Reconciliations - Global Card Services - Reconciliation on page 44).

(2)

Fully taxable-equivalent basis

(3)

Represents provision for credit losses on held loans combined with realized credit losses associated with the securitized loan portfolio.

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		17

Bank of America Corporation and Subsidiaries

Global Card Services Key Indicators

(Dollars in millions)


	Year Ended December 31						Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
	2009			2008			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
Credit Card Data ⁽¹⁾

Loans
Average
Held credit card outstandings	$	72,033		$	79,845		$	70,893		$	70,940		$	70,546			$	75,818			$	82,117
Securitization impact		98,453			104,401			91,705			97,520			102,046				102,672				99,116

Managed credit card outstandings	$	170,486		$	184,246		$	162,598		$	168,460		$	172,592			$	178,490			$	181,233

Period end
Held credit card outstandings	$	71,109		$	81,274		$	71,109		$	70,206		$	69,377			$	67,960			$	81,274
Securitization impact		89,715			100,960			89,715			94,328			100,438				105,392				100,960

Managed credit card outstandings	$	160,824		$	182,234		$	160,824		$	164,534		$	169,815			$	173,352			$	182,234


Credit Quality
Charge-offs $
Held net charge-offs	$	7,786		$	4,712		$	1,941		$	2,169		$	2,064			$	1,612			$	1,406
Securitization impact		11,399			6,670			2,926			3,308			2,983				2,182				1,857

Managed credit card net losses	$	19,185		$	11,382		$	4,867		$	5,477		$	5,047			$	3,794			$	3,263

Charge-offs %
Held net charge-offs		10.81	%		5.90	%		10.86	%		12.13	%		11.74		%		8.62		%		6.82	%
Securitization impact		0.44			0.28			1.02			0.77			(0.01	)			—				0.34

Managed credit card net losses		11.25	%		6.18	%		11.88	%		12.90	%		11.73		%		8.62		%		7.16	%

30+ Delinquency $
Held delinquency	$	4,961		$	5,324		$	4,961		$	5,054		$	5,221			$	5,365			$	5,324
Securitization impact		6,599			6,844			6,599			7,047			7,748				8,246				6,844

Managed delinquency	$	11,560		$	12,168		$	11,560		$	12,101		$	12,969			$	13,611			$	12,168

30+ Delinquency %
Held delinquency		6.98	%		6.55	%		6.98	%		7.20	%		7.53		%		7.90		%		6.55	%
Securitization impact		0.21			0.13			0.21			0.15			0.11				(0.05	)			0.13

Managed delinquency		7.19	%		6.68	%		7.19	%		7.35	%		7.64		%		7.85		%		6.68	%

90+ Delinquency $
Held delinquency	$	2,657		$	2,565		$	2,657		$	2,593		$	2,894			$	2,816			$	2,565
Securitization impact		3,550			3,185			3,550			3,600			4,263				4,106				3,185

Managed delinquency	$	6,207		$	5,750		$	6,207		$	6,193		$	7,157			$	6,922			$	5,750

90+ Delinquency %
Held delinquency		3.74	%		3.16	%		3.74	%		3.69	%		4.17		%		4.14		%		3.16	%
Securitization impact		0.12			—			0.12			0.07			0.04				(0.15	)			—

Managed delinquency		3.86	%		3.16	%		3.86	%		3.76	%		4.21		%		3.99		%		3.16	%


Other Global Card Services Key Indicators

Managed credit card data
Gross interest yield		11.38	%		11.69	%		11.34	%		11.18	%		11.33		%		11.68		%		11.87	%
Risk adjusted margin		1.92			6.54			1.47			0.26			1.28				4.56				6.38
New account growth (in thousands)		4,195			8,476			994			1,014			957				1,230				1,432
Purchase volumes	$	207,906		$	243,525		$	54,875		$	53,031		$	51,944			$	48,056			$	56,585

Debit Card Data
Debit purchase volumes	$	218,241		$	210,506		$	57,186		$	54,764		$	55,158			$	51,133			$	52,925

(1)

Credit Card includes U.S. Europe and Canada consumer credit card. Does not include business card, debit card and consumer lending.

Certain prior period amounts have been reclassified to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		18

Bank of America Corporation and Subsidiaries

Home Loans & Insurance Segment Results

(Dollars in millions; except as noted)


	Year Ended December 31								Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
	2009				2008				2009				2009				2009				2009				2008
Net interest income ⁽¹⁾	$	4,974			$	3,311			$	1,275			$	1,309			$	1,199			$	1,191			$	1,006
Noninterest income:
Mortgage banking income		9,321				4,422				1,816				1,424				2,661				3,420				1,603
Insurance income		2,346				1,416				618				594				553				581				646
All other income (loss)		261				161				84				84				50				43				(2	)

Total noninterest income		11,928				5,999				2,518				2,102				3,264				4,044				2,247

Total revenue, net of interest expense		16,902				9,310				3,793				3,411				4,463				5,235				3,253

Provision for credit losses		11,244				6,287				2,249				2,896				2,727				3,372				1,623
Noninterest expense		11,683				6,962				3,165				3,042				2,826				2,650				2,752

Loss before income taxes		(6,025	)			(3,939	)			(1,621	)			(2,527	)			(1,090	)			(787	)			(1,122	)
Income tax benefit ⁽¹⁾		(2,187	)			(1,457	)			(628	)			(895	)			(368	)			(296	)			(415	)

Net loss	$	(3,838	)		$	(2,482	)		$	(993	)		$	(1,632	)		$	(722	)		$	(491	)		$	(707	)

Net interest yield ⁽¹⁾		2.57		%		2.55		%		2.64		%		2.59		%		2.43		%		2.64		%		2.31		%
Efficiency ratio ⁽¹⁾		69.12				74.78				83.43				89.17				63.33				50.63				84.58

Balance sheet

Average
Total loans and leases	$	130,519			$	105,724			$	132,326			$	132,599			$	131,509			$	125,544			$	122,065
Total earning assets		193,262				129,674				191,661				200,539				197,758				182,915				173,152
Total assets		230,234				147,461				232,945				236,200				232,361				219,215				204,826
Allocated equity		20,533				9,517				26,220				24,743				16,128				14,870				15,477

Period end
Total loans and leases	$	131,302			$	122,947			$	131,302			$	134,255			$	131,120			$	131,332			$	122,947
Total earning assets		188,466				175,609				188,466				197,666				197,528				184,136				175,609
Total assets		232,706				205,046				232,706				234,842				234,388				221,547				205,046

Period end (in billions)
Mortgage servicing portfolio ⁽²⁾	$	2,150.8			$	2,057.3			$	2,150.8			$	2,148.3			$	2,111.9			$	2,112.8			$	2,057.3

(1)

Fully taxable-equivalent basis

(2)

Servicing of residential mortgage loans, home equity lines of credit, home equity loans and discontinued real estate mortgage loans.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		19

Bank of America Corporation and Subsidiaries

Home Loans & Insurance Key Indicators

(Dollars in millions, except as noted)


	Year Ended December 31								Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
	2009				2008				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
Mortgage servicing rights at fair value rollforward:
Beginning balance	$	12,733			$	3,053			$	17,539			$	18,535			$	14,096			$	12,733			$	20,811
Countrywide balance, July 1, 2008		—				17,188				—				—				—				—				—
Merrill Lynch balance, January 1, 2009		209				—				—				—				—				209				—
Additions / sales		5,728				2,587				1,035				1,738				1,706				1,249				677
Impact of customer payments		(3,709	)			(3,313	)			(821	)			(906	)			(797	)			(1,185	)			(1,458	)
Other changes in MSR		4,504				(6,782	)			1,712				(1,828	)			3,530				1,090				(7,297	)

Ending balance	$	19,465			$	12,733			$	19,465			$	17,539			$	18,535			$	14,096			$	12,733

Capitalized mortgage servicing rights
(% of loans serviced)		113		bps		77		bps		113		bps		102		bps		109		bps		83		bps		77		bps
Mortgage loans serviced for investors (in billions)	$	1,716			$	1,654			$	1,716			$	1,726			$	1,703			$	1,699			$	1,654

Loan production:
Home Loans & Insurance
First mortgage	$	357,371			$	128,945			$	83,898			$	90,319			$	104,082			$	79,072			$	42,761
Home equity		10,488				31,998				2,420				2,225				2,920				2,923				3,920
Total Corporation ⁽¹⁾
First mortgage		378,105				140,510				86,588				95,654				110,645				85,218				44,611
Home equity		13,214				40,489				2,787				2,739				3,650				4,038				5,326

Mortgage banking income
Production income	$	5,539			$	2,105			$	1,066			$	1,121			$	1,678			$	1,674			$	690
Servicing income:
Servicing fees and ancillary income		6,200				3,531				1,598				1,597				1,510				1,495				1,488
Impact of customer payments		(3,709	)			(3,314	)			(821	)			(906	)			(797	)			(1,185	)			(1,458	)
Fair value changes of MSRs, net of economic hedge results		712				1,906				(213	)			(519	)			143				1,301				783
Other servicing-related revenue		579				194				186				131				127				135				100

Total net servicing income		3,782				2,317				750				303				983				1,746				913

Total Home Loans & Insurance mortgage banking income		9,321				4,422				1,816				1,424				2,661				3,420				1,603
Other business segments’ mortgage banking income (loss) ⁽²⁾		(530	)			(335	)			(164	)			(126	)			(134	)			(106	)			(80	)

Total consolidated mortgage banking income	$	8,791			$	4,087			$	1,652			$	1,298			$	2,527			$	3,314			$	1,523

(1)

In addition to loan production in Home Loans & Insurance, the remaining first mortgage and home equity loan production is primarily within GWIM.

(2)

Includes the offset of revenue for transfers of mortgage loans from Home Loans & Insurance to the ALM portfolio included in All Other.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		20

Bank of America Corporation and Subsidiaries

Global Banking Segment Results

(Dollars in millions)


	Year Ended December 31								Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
	2009				2008				2009				2009				2009				2009				2008
Net interest income ⁽¹⁾	$	11,250			$	10,755			$	2,869			$	2,785			$	2,769			$	2,827			$	3,114
Noninterest income:
Service charges		3,954				3,233				1,041				1,050				914				949				814
Investment banking income		3,108				1,371				1,068				604				793				643				415
All other income (loss)		4,723				1,437				(46	)			232				4,253				284				(284	)

Total noninterest income		11,785				6,041				2,063				1,886				5,960				1,876				945

Total revenue, net of interest expense		23,035				16,796				4,932				4,671				8,729				4,703				4,059

Provision for credit losses		8,835				3,130				2,063				2,340				2,584				1,848				1,402
Noninterest expense		9,539				6,684				2,409				2,258				2,291				2,581				1,179

Income before income taxes		4,661				6,982				460				73				3,854				274				1,478
Income tax expense⁽¹⁾		1,692				2,510				196				33				1,359				104				446

Net income	$	2,969			$	4,472			$	264			$	40			$	2,495			$	170			$	1,032

Net interest yield ⁽¹⁾		3.34		%		3.30		%		3.18		%		3.18		%		3.34		%		3.36		%		3.63		%
Return on average equity		4.93				8.84				1.73				0.26				16.30				1.20				7.65
Efficiency ratio⁽¹⁾		41.41				39.80				48.83				48.34				26.25				54.89				29.05

Balance sheet

Average
Total loans and leases	$	315,002			$	318,325			$	297,488			$	308,764			$	323,217			$	330,974			$	331,115
Total earning assets ⁽²⁾		337,315				325,764				357,389				347,255				332,591				341,124				341,456
Total assets ⁽²⁾		394,140				382,790				412,923				405,231				389,496				398,014				397,556
Total deposits		211,261				177,528				228,995				214,286				203,917				197,468				199,465
Allocated equity		60,273				50,583				60,850				61,381				61,399				57,411				53,667

Period end
Total loans and leases	$	291,117			$	328,574			$	291,117			$	300,814			$	314,512			$	323,407			$	328,574
Total earning assets ⁽²⁾		343,057				338,915				343,057				325,016				323,745				333,228				338,915
Total assets ⁽²⁾		398,061				394,541				398,061				381,092				382,594				388,534				394,541
Total deposits		227,437				215,519				227,437				210,211				208,098				196,359				215,519

(1) Fully taxable-equivalent basis (2) Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits). Components of Investment Banking Income (Dollars in millions)
	Year Ended December 31								Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
	2009				2008				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
Investment banking income
Advisory ⁽¹⁾	$	1,167			$	546			$	360			$	186			$	292			$	329			$	184
Debt issuance		3,124				1,539				805				720				944				655				379
Equity issuance		1,964				624				893				406				508				157				224

Total Global Markets and Investment Banking		6,255				2,709				2,058				1,312				1,744				1,141				787
Other ⁽²⁾		(704	)			(446	)			(462	)			(58	)			(98	)			(86	)			(169	)

Total investment banking income	$	5,551			$	2,263			$	1,596			$	1,254			$	1,646			$	1,055			$	618

(1)

Advisory includes fees on debt and equity advisory and merger and acquisitions.

(2)

Represents the offset to fees paid on the Corporation’s transactions.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		21

Bank of America Corporation and Subsidiaries

Global Banking Key Indicators

(Dollars in millions)


	Year Ended December 31								Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
	2009				2008				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
Global Banking revenue, net of interest expense
Global commercial banking	$	15,209			$	11,362			$	2,825			$	2,906			$	6,692			$	2,786			$	2,861
Global corporate and investment banking		7,826				5,434				2,107				1,765				2,037				1,917				1,198

Total revenue, net of interest expense ⁽¹⁾	$	23,035			$	16,796			$	4,932			$	4,671			$	8,729			$	4,703			$	4,059

Global Banking revenue, net of interest expense - by service segment
Business lending	$	9,565			$	8,219			$	2,431			$	2,316			$	2,379			$	2,439			$	2,210
Treasury services		10,990				8,540				1,797				1,806				5,551				1,836				2,204
Investment banking related⁽²⁾		2,480				37				704				549				799				428				(355	)

Total revenue, net of interest expense ⁽¹⁾	$	23,035			$	16,796			$	4,932			$	4,671			$	8,729			$	4,703			$	4,059

Global Banking average deposit balances
Global commercial banking	$	131,107			$	108,434			$	144,387			$	132,766			$	127,133			$	119,853			$	118,415
Global corporate and investment banking		80,154				69,094				84,608				81,520				76,784				77,615				81,050

Total	$	211,261			$	177,528			$	228,995			$	214,286			$	203,917			$	197,468			$	199,465

Interest-bearing	$	84,019			$	90,620			$	89,974			$	80,508			$	79,059			$	86,537			$	100,259
Noninterest-bearing		127,242				86,908				139,021				133,778				124,858				110,931				99,206

Total	$	211,261			$	177,528			$	228,995			$	214,286			$	203,917			$	197,468			$	199,465

Global Banking loan spreads
Global commercial banking		1.99		%		1.77		%		2.12		%		2.06		%		1.96		%		1.83		%		1.85		%
Global corporate and investment banking		1.58				0.82				1.63				1.62				1.45				1.64				1.18
Provision for credit losses
Global commercial banking	$	7,201			$	2,638			$	1,758			$	1,899			$	1,992			$	1,552			$	1,036
Global corporate and investment banking		1,634				492				305				441				592				296				366

Total provision for credit losses	$	8,835			$	3,130			$	2,063			$	2,340			$	2,584			$	1,848			$	1,402


Credit quality ^{(3, 4)}
Reservable utilized criticized exposure
Global commercial banking	$	40,189			$	27,225			$	40,189			$	41,274			$	38,513			$	33,465			$	27,225
		18.88		%		11.63		%		18.88		%		18.81		%		16.82		%		14.36		%		11.63		%
Global corporate and investment banking	$	11,286			$	7,292			$	11,286			$	12,138			$	11,861			$	9,995			$	7,292
		10.79		%		5.91		%		10.79		%		11.20		%		10.44		%		8.45		%		5.91		%

Total reservable utilized criticized exposure	$	51,475			$	34,517			$	51,475			$	53,412			$	50,374			$	43,460			$	34,517
		16.22		%		9.66		%		16.22		%		16.29		%		14.70		%		12.37		%		9.66		%
Nonperforming assets
Global commercial banking	$	10,884			$	5,643			$	10,884			$	10,252			$	9,510			$	8,077			$	5,643
		5.28		%		2.50		%		5.28		%		4.84		%		4.31		%		3.60		%		2.50		%
Global corporate and investment banking	$	1,293			$	736			$	1,293			$	1,388			$	1,314			$	879			$	736
		1.51		%		0.71		%		1.51		%		1.55		%		1.40		%		0.88		%		0.71		%

Total nonperforming assets	$	12,177			$	6,379			$	12,177			$	11,640			$	10,824			$	8,956			$	6,379
		4.18		%		1.94		%		4.18		%		3.86		%		3.44		%		2.77		%		1.94		%
Average loans and leases by product
Commercial - domestic	$	159,631			$	164,072			$	146,188			$	153,493			$	164,673			$	174,548			$	175,260
Commercial real estate		62,598				60,201				60,387				62,883				64,609				62,532				61,395
Commercial lease financing		24,133				24,363				23,874				24,140				24,208				24,316				24,324
Commercial - foreign		25,575				27,648				23,561				24,890				27,051				26,840				28,546
Direct/Indirect consumer		41,667				40,369				42,199				42,022				41,233				41,201				40,144
Other		1,398				1,672				1,279				1,336				1,443				1,537				1,446

Total average loans and leases	$	315,002			$	318,325			$	297,488			$	308,764			$	323,217			$	330,974			$	331,115



(1) Total Global Banking revenue, net of interest expense	$	*23,035*			$	16,796			$	*4,932*			$	4,671			$	8,729			$	4,703			$	4,059
Less: Fair value option revenue share		*227*				(299	)			*(39*	)			162				242				(138	)			(291	)
Less: Impact of credit mitigation		*(697*	)			309				*(92*	)			(320	)			(360	)			75				221

Global banking revenues, net of interest expense excluding fair value option revenue share and credit mitigation	$	*23,505*			$	16,786			$	*5,063*			$	4,829			$	8,847			$	4,766			$	4,129

(2)

Includes revenue and loss sharing with Global Markets for certain activities and positions.

(3)

Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure is on an end-of-period basis and is also shown as a percentage of total reservable commercial utilized credit exposure, including loans and leases, standby letters of credit, financial guarantees, commercial letters of credit and bankers’ acceptances.

(4)

Nonperforming assets are on an end-of-period basis and defined as nonperforming loans and leases plus foreclosed properties. The nonperforming ratio is nonperforming assets divided by commercial loans and leases plus commercial foreclosed properties.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		22

Bank of America Corporation and Subsidiaries

Investment Banking Product Rankings


	Year Ended December 31, 2009
	Global			U.S.
	Product Ranking	Market Share		Product Ranking	Market Share
High-yield corporate debt	2	13.5	%	2	15.4	%
Leveraged loans	1	14.6		1	21.5
Mortgage-backed securities	1	16.0		1	18.3
Asset-backed securities	3	14.3		3	17.5
Convertible debt	7	5.4		4	11.6
Common stock underwriting	3	8.2		1	18.0
Investment grade corporate debt	4	5.7		3	13.0
Syndicated loans	2	7.0		2	19.7
Net investment banking revenue	2	6.8		2	12.0
Announced mergers and acquisitions	5	16.3		6	23.8
Equity capital markets	4	7.9		1	17.1
Debt capital markets	4	6.1		2	11.9

Source: Dealogic data. Figures above include self-led transactions.

•

Rankings based on deal volumes except for investment banking revenue rankings which reflect fees.

•

Mergers and acquisition fees included in investment banking revenues reflect 10 percent fee credit at announcement and 90 percent fee credit at completion as per Dealogic.

•

Mergers and acquisitions volume rankings are for announced transactions and provide credit only to the investment bank advising the parent company that is domiciled within that region.

•

Each advisor receives full credit for the deal amount unless advising a minority stakeholder.

Highlights

Global top 3 rankings in:



High-yield corporate debt		Common stock underwriting
Leveraged loans		Syndicated loans
Mortgage-backed securities		Net investment banking revenue
Asset-backed securities



*U.S. top 3 rankings in:*



High-yield corporate debt		Investment grade corporate debt
Leveraged loans		Syndicated loans
Mortgage-backed securities		Net investment banking revenue
Asset-backed securities		Equity capital markets
Common stock underwriting		Debt capital markets

Excluding self-led deals, global and U.S. leveraged loans, mortgage-backed securities and asset-backed securities rankings were #1. Global and U.S. high-yield corporate debt and syndicated loans ranked #2. Investment grade corporate debt ranked #2 in the U.S. Convertible debt and common stock underwriting ranked #3 in the U.S. Net investment banking revenue ranked #2 in the U.S. and #3 globally, and debt capital markets ranked #2 and equity capital markets ranked #3 in the U.S.

Information for periods beginning January 1, 2009 includes the Merrill Lynch acquisition.

This information is preliminary and based on company data available at the time of the presentation.

Bank of America Corporation and Subsidiaries

Global Markets Segment Results

(Dollars in millions)


	Year Ended December 31							Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
	2009				2008			Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
Net interest income ⁽¹⁾	$	6,120			$	5,151		$	1,304			$	1,406			$	1,516			$	1,894			$	1,532
Noninterest income:
Investment and brokerage services		2,552				752			574				562				832				584				150
Investment banking income		2,850				1,337			910				635				820				485				371
Trading account profits (losses)		11,675				(5,809	)		1,361				3,380				2,014				4,920				(3,891	)
All other income (loss)		(2,571	)			(5,262	)		(706	)			(212	)			(698	)			(955	)			(2,717	)

Total noninterest income (loss)		14,506				(8,982	)		2,139				4,365				2,968				5,034				(6,087	)

Total revenue, net of interest expense		20,626				(3,831	)		3,443				5,771				4,484				6,928				(4,555	)
Provision for credit losses		400				(50	)		252				98				(1	)			51				13
Noninterest expense		10,042				3,906			2,078				2,328				2,570				3,066				1,105

Income (loss) before income taxes		10,184				(7,687	)		1,113				3,345				1,915				3,811				(5,673	)
Income tax expense (benefit)⁽¹⁾		3,007				(2,771	)		(71	)			1,190				524				1,364				(2,020	)

Net income (loss)	$	7,177			$	(4,916	)	$	1,184			$	2,155			$	1,391			$	2,447			$	(3,653	)

Return on average equity		23.33		%		n/m			14.45		%		27.34		%		17.79		%		35.62		%		n/m
Efficiency ratio⁽¹⁾		48.68				n/m			60.33				40.35				57.32				44.24				n/m
Sales and trading revenue
Fixed income, currency and commodities	$	12,727			$	(7,625	)	$	1,269			$	3,985			$	2,684			$	4,789			$	(5,823	)
Equity income		4,901				743			949				1,265				1,198				1,489				(17	)

Total sales and trading revenue ⁽²⁾	$	17,628			$	(6,882	)	$	2,218			$	5,250			$	3,882			$	6,278			$	(5,840	)

Balance sheet
Average
Total trading-related assets ⁽³⁾	$	507,648			$	338,074		$	493,768			$	495,757			$	504,122			$	537,559			$	315,125
Total market-based earning assets		481,542				360,667			490,719				468,999				476,593				489,985				311,582
Total earning assets		490,406				366,195			495,755				476,450				486,058				503,601				317,636
Total assets		656,621				427,734			632,673				633,909				656,329				704,613				390,274
Allocated equity		30,765				12,839			32,528				31,270				31,343				27,863				15,525
Period end
Total trading-related assets ⁽³⁾	$	411,212			$	244,174		$	411,212			$	448,293			$	435,396			$	441,015			$	244,174
Total market-based earning assets		404,467				237,452			404,467				418,931				401,334				381,102				237,452
Total earning assets		409,717				243,275			409,717				425,402				409,823				392,425				243,275
Total assets		538,456				306,693			538,456				588,641				572,702				583,607				306,693
Trading-related assets (average)
Trading account securities	$	201,727			$	180,654		$	200,629			$	198,336			$	190,519			$	217,647			$	167,463
Reverse repurchases		137,943				55,705			145,153				130,664				139,566				136,373				53,193
Securities borrowed		75,128				62,482			81,474				78,605				72,309				67,941				42,580
Derivative assets		92,850				39,233			66,512				88,152				101,728				115,598				51,889

Total trading-related assets ⁽³⁾	$	507,648			$	338,074		$	493,768			$	495,757			$	504,122			$	537,559			$	315,125


(1) Fully taxable-equivalent basis (2) Sales and trading revenue represents total Global Markets revenue, net of interest expense as adjusted by the following items:
Total Global Markets revenue, net of interest expense	$	*20,626*			$	(3,831	)	$	*3,443*			$	5,771			$	4,484			$	6,928			$	(4,555	)
Investment banking income		*(2,850*	)			(1,337	)		*(910*	)			(635	)			(820	)			(485	)			(371	)
Fair value option net interest income		*(257*	)			(141	)		*(53*	)			(65	)			(72	)			(67	)			(46	)
Revenue (loss) shared		56				(1,349	)		*(262*	)			179				269				(130	)			(868	)
(Gain) loss on sale of prime brokerage business		53				(224	)		—				—				21				32				—

Total sales and trading revenue	$	*17,628*			$	(6,882	)	$	*2,218*			$	5,250			$	3,882			$	6,278			$	(5,840	)

(3)

Includes assets which are not considered earning assets (i.e. derivative assets).

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		24

Bank of America Corporation and Subsidiaries

Off-Balance Sheet Special Purpose Entities Liquidity Exposure⁽¹⁾

(Dollars in millions)


	December 31, 2009
	VIEs ⁽²⁾		QSPEs ⁽³⁾		Total
Commercial paper conduits:
Multi-seller conduits	$	25,135	$	—	$	25,135
Asset acquisition conduits		1,232		—		1,232
Home equity securitizations		—		14,125		14,125
Municipal bond trusts		3,635		6,492		10,127

Collateralized debt obligation vehicles⁽⁴⁾		3,283		—		3,283
Credit-linked note and other vehicles		1,995		—		1,995
Customer conduits		368		—		368
Credit card securitizations		—		2,288		2,288

Total liquidity exposure ⁽⁵⁾	$	35,648	$	22,905	$	58,553


	September 30, 2009
	VIEs ⁽²⁾		QSPEs ⁽³⁾		Total
Commercial paper conduits:
Multi-seller conduits	$	27,024	$	—	$	27,024
Asset acquisition conduits		1,317		—		1,317
Home equity securitizations		—		12,863		12,863
Municipal bond trusts		3,122		6,746		9,868

Collateralized debt obligation vehicles⁽⁴⁾		3,744		—		3,744
Credit-linked note and other vehicles		3,478		—		3,478
Customer conduits		615		—		615
Credit card securitizations		—		1,738		1,738

Total liquidity exposure ⁽⁵⁾	$	39,300	$	21,347	$	60,647

(1)

As a result of Statement of Financial Accounting Standards (SFAS) No. 166, “Accounting for Transfers of Financial Assets – an amendment of FASB Statement No. 140” and SFAS No. 167, “Amendments to FASB Interpretation No. 46(R),” we will consolidate all multi-seller conduits, asset acquisition conduits and credit card securitizations. In addition, some home equity securitizations, municipal bond trusts and credit-linked note and other vehicles will also be consolidated.

(2)

Variable interest entities (VIEs) are special purpose entities (SPEs) which lack sufficient equity at risk or whose equity investors do not have a controlling financial interest. A VIE is consolidated by the party known as the primary beneficiary that will absorb the majority of the expected losses or expected residual returns of the VIEs or both. For example, an entity that holds a majority of the subordinated debt or equity securities issued by a VIE, or protects other investors from loss through a guarantee or similar arrangement, may have to consolidate the VIE. The assets and liabilities of consolidated VIEs are recorded on the Corporation’s balance sheet.

(3)

Qualifying special purposes entities (QSPEs) are SPEs whose activities are strictly limited to holding and servicing financial assets. QSPEs are generally not required to be consolidated by any party. This table includes only those QSPEs to which we have liquidity exposure.

(4)

Represents super senior and non-super senior collateralized debt obligation exposure.

(5)

Exposures obtained through the Merrill Lynch acquisition at both December 31, 2009 and September 30, 2009 includes: $4.9 billion in municipal bond trusts, $3.3 billion and $3.7 billion in collateralized debt obligation vehicles and $2.0 billion and $3.5 billion in credit-linked note and other vehicles.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		25

Bank of America Corporation and Subsidiaries

Super Senior Collateralized Debt Obligation Exposure

(Dollars in millions)


	December 31, 2009
	Subprime ⁽¹⁾		Retained Positions		Total Subprime		Non- Subprime ⁽²⁾		Total
Unhedged	$	938	$	528	$	1,466	$	839	$	2,305
Hedged ⁽³⁾		661		—		661		652		1,313

Total	$	1,599	$	528	$	2,127	$	1,491	$	3,618

(1)

Classified as subprime when subprime consumer real estate loans make up at least 35 percent of the ultimate underlying collateral’s original net exposure value.

(2)

Includes highly-rated collateralized loan obligations and commercial mortgage-backed securities super senior exposure.

(3)

Hedged amounts are presented at carrying value before consideration of the insurance.

Credit Default Swaps with Monoline Financial Guarantors

(Dollars in millions)


	December 31, 2009
	Super Senior CDOs				Other Guaranteed Positions				Total
Notional	$	3,757			$	38,834			$	42,591

Mark-to-market or guarantor receivable	$	2,833			$	8,256			$	11,089
Credit valuation adjustment		(1,873	)			(4,132	)			(6,005	)

Total	$	960			$	4,124			$	5,084

Credit valuation adjustment %		66		%		50		%		54		%

(Writedowns) gains during the three months ended December 31, 2009	$	(123	)		$	55			$	(68	)

(Writedowns) gains during the year ended December 31, 2009		(961	)			98				(863	)

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		26

Bank of America Corporation and Subsidiaries

Unhedged Subprime Super Senior Collateralized Debt Obligation Carrying Values ⁽¹⁾

(Dollars in millions)


	December 31, 2009
	Subprime Net Exposure		Carrying Value as a Percent of Original Net Exposure		Subprime Content of Collateral ⁽²⁾		Vintage of Subprime Collateral
	Subprime Net Exposure		Carrying Value as a Percent of Original Net Exposure		Subprime Content of Collateral ⁽²⁾		Percent in 2006/2007 Vintages		Percent in 2005/Prior Vintages
Mezzanine super senior liquidity commitments	$	88	7	%	100	%	85	%	15	%
Other super senior exposure
High grade		577	20		43		23		77
Mezzanine		272	16		34		79		21
CDO-squared		1	1		100		100		—

Total other super senior		850

Total super senior	$	938	15


Retained positions from liquidated CDOs		528	15		28		22		78


Total	$	1,466	15

(1)

Classified as subprime when subprime consumer real estate loans make up at least 35 percent of the ultimate underlying collateral’s original net exposure value.

(2)

Based on current net exposure value.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		27

Bank of America Corporation and Subsidiaries

Global Wealth & Investment Management Segment Results ⁽¹⁾

(Dollars in millions, except as noted)


	Year Ended December 31								Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
	2009				2008				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
Net interest income ⁽²⁾	$	5,564			$	4,797			$	1,275			$	1,333			$	1,293			$	1,663			$	1,348
Noninterest income:
Investment and brokerage services		9,273				4,059				2,404				2,328				2,231				2,310				880
All other income (loss)		3,286				(1,047	)			1,829				437				647				373				(237	)

Total noninterest income		12,559				3,012				4,233				2,765				2,878				2,683				643

Total revenue, net of interest expense		18,123				7,809				5,508				4,098				4,171				4,346				1,991

Provision for credit losses		1,061				664				54				515				238				254				152
Noninterest expense		13,077				4,910				3,330				3,168				3,297				3,282				1,069

Income before income taxes		3,985				2,235				2,124				415				636				810				770
Income tax expense ⁽²⁾		1,446				807				793				141				206				306				255

Net income	$	2,539			$	1,428			$	1,331			$	274			$	430			$	504			$	515


Net interest yield ⁽²⁾		2.53		%		2.97		%		2.29		%		2.54		%		2.54		%		2.76		%		3.03		%
Return on average equity		13.44				12.20				26.76				5.57				9.16				11.68				17.40
Efficiency ratio ⁽²⁾		72.16				62.87				60.45				77.33				79.04				75.53				53.70

Balance sheet
Average
Total loans and leases	$	103,398			$	87,593			$	100,264			$	101,181			$	101,748			$	110,535			$	88,876
Total earning assets ⁽³⁾		219,612				161,685				221,402				208,103				204,632				244,693				177,303
Total assets ⁽³⁾		251,969				170,973				252,608				239,346				237,553				278,796				185,744
Total deposits		225,980				160,702				223,056				214,994				215,383				250,914				172,435
Allocated equity		18,894				11,698				19,737				19,490				18,813				17,504				11,767

Period end
Total loans and leases	$	99,596			$	89,401			$	99,596			$	99,307			$	100,878			$	102,766			$	89,401
Total earning assets ⁽³⁾		219,866				179,319				219,866				218,015				203,256				238,323				179,319
Total assets ⁽³⁾		254,192				189,073				254,192				249,189				233,808				268,609				189,073
Total deposits		224,840				176,186				224,840				220,482				207,581				242,634				176,186

Client assets
Assets under management	$	749,852			$	523,159			$	749,852			$	739,831			$	705,216			$	697,371			$	523,159
Client brokerage assets ⁽⁴⁾		1,270,461				172,106				1,270,461				1,235,483				1,164,171				1,102,633				172,106
Assets in custody		274,472				133,726				274,472				269,233				252,830				234,361				133,726
Assets in deposits		224,840				176,186				224,840				220,482				207,581				242,634				176,186
Less: Client brokerage assets and assets in custody included in assets under management		(346,682	)			(87,519	)			(346,682	)			(331,953	)			(307,619	)			(289,513	)			(87,519	)

Total net client assets	$	2,172,943			$	917,658			$	2,172,943			$	2,133,076			$	2,022,179			$	1,987,476			$	917,658

(1)

GWIM services clients through three primary businesses: Merrill Lynch Global Wealth Management (MLGWM), U.S. Trust, Bank of America Private Wealth Management (U.S. Trust), and Columbia Management (Columbia).

(2)

Fully taxable-equivalent basis

(3)

Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits).

(4)

Client brokerage assets include non-discretionary brokerage and fee-based assets.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		28

Bank of America Corporation and Subsidiaries

Global Wealth & Investment Management Business Results

(Dollars in millions)


	Three Months Ended December 31, 2009
	Total				Merrill Lynch Global Wealth Management ^(1,²⁾				U.S. Trust				Columbia Management				Other ⁽³⁾
Net interest income⁽⁴⁾	$	1,275			$	1,027			$	335			$	—			$	(87	)
Noninterest income:
Investment and brokerage services		2,404				1,614				296				283				211
All other income (loss)		1,829				438				11				1				1,379

Total noninterest income		4,233				2,052				307				284				1,590

Total revenue, net of interest expense		5,508				3,079				642				284				1,503

Provision for credit losses		54				(19	)			73				—				—
Noninterest expense		3,330				2,390				470				251				219

Income before income taxes		2,124				708				99				33				1,284
Income tax expense⁽⁴⁾		793				262				37				12				482

Net income	$	1,331			$	446			$	62			$	21			$	802


Net interest yield⁽⁴⁾		2.29		%		2.25		%		2.55		%		n/m				n/m
Return on average equity		26.76				21.24				4.60				9.96		%		n/m
Efficiency ratio ⁽⁴⁾		60.45				77.63				73.26				n/m				n/m
Average - total loans and leases	$	100,264			$	48,226			$	52,038				n/m				n/m
Average - total deposits		223,056				178,177				42,435				n/m				n/m
Period end - total assets⁽⁵⁾		254,192				195,175				55,371			$	2,717				n/m

	Three Months Ended September 30, 2009
	Total				Merrill Lynch Global Wealth Management ^(1,²⁾				U.S. Trust				Columbia Management				Other ⁽³⁾
Net interest income⁽⁴⁾	$	1,333			$	1,089			$	328			$	10			$	(94	)
Noninterest income:
Investment and brokerage services		2,328				1,542				310				277				199
All other income (loss)		437				398				11				(134	)			162

Total noninterest income		2,765				1,940				321				143				361

Total revenue, net of interest expense		4,098				3,029				649				153				267

Provision for credit losses		515				262				253				—				—
Noninterest expense		3,168				2,274				478				228				188

Income (loss) before income taxes		415				493				(82	)			(75	)			79
Income tax expense (benefit)⁽⁴⁾		141				182				(30	)			(28	)			17

Net income (loss)	$	274			$	311			$	(52	)		$	(47	)		$	62


Net interest yield⁽⁴⁾		2.54		%		2.52		%		2.48		%		n/m				n/m
Return on average equity		5.57				14.48				n/m				n/m				n/m
Efficiency ratio ⁽⁴⁾		77.33				75.10				73.63				n/m				n/m
Average - total loans and leases	$	101,181			$	48,750			$	52,431				n/m				n/m
Average - total deposits		214,994				174,057				39,334				n/m				n/m
Period end - total assets⁽⁵⁾		249,189				194,324				55,574			$	3,137				n/m

	Three Months Ended December 31, 2008
	Total				Merrill Lynch Global Wealth Management ^(1,²⁾				U.S. Trust				Columbia Management				Other
Net interest income⁽⁴⁾	$	1,348			$	884			$	451			$	12			$	1
Noninterest income:
Investment and brokerage services		880				238				304				301				37
All other income (loss)		(237	)			1				(4	)			(228	)			(6	)

Total noninterest income		643				239				300				73				31

Total revenue, net of interest expense		1,991				1,123				751				85				32

Provision for credit losses		152				73				79				—				—
Noninterest expense		1,069				404				372				192				101

Income (loss) before income taxes		770				646				300				(107	)			(69	)
Income tax expense (benefit)⁽⁴⁾		255				239				111				(40	)			(55	)

Net income (loss)	$	515			$	407			$	189			$	(67	)		$	(14	)


Net interest yield⁽⁴⁾		3.03		%		2.65		%		3.35		%		n/m				n/m
Return on average equity		17.40				50.41				15.74				n/m				n/m
Efficiency ratio ⁽⁴⁾		53.70				35.88				49.60				n/m				n/m
Average - total loans and leases	$	88,876			$	35,515			$	53,360				n/m				n/m
Average - total deposits		172,435				130,088				42,342				n/m				n/m
Period end - total assets⁽⁵⁾		189,073				137,282				57,167			$	2,923				n/m

(1)

MLGWM includes the net impact of migrating customers, and their related deposit and loan balances, to or from Deposits and Home Loans & Insurance. After migration, the associated net interest income, noninterest income and noninterest expense are recorded in the applicable segment. During the three months ended December 31, 2009 and September 30, 2009, total deposits of $33 million and $2.9 billion were migrated to Deposits from MLGWM. During the three months ended December 31, 2008, total deposits of $4.5 billion were migrated from Deposits to MLGWM. In addition, during the three months ended December 31, 2009 and September 30, 2009, total loans of $838 million and $2.2 billion were migrated to Home Loans & Insurance from MLGWM. During the three months ended December 31, 2008, total loans of $430 million were migrated from Home Loans & Insurance to MLGWM.

(2)

Effective January 1, 2009, as a result of the Merrill Lynch acquisition, we combined Merrill Lynch’s wealth management business and our former Premier Banking & Investment business

(3)

Other includes the results of the Retirement & Philanthropic Services, the Corporation’s approximately 34 percent economic ownership of BlackRock and other miscellaneous items.

(4)

Fully taxable-equivalent basis

(5)

Total assets include asset allocations to match liabilities (i.e., deposits).

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		29

Bank of America Corporation and Subsidiaries

Global Wealth & Investment Management Business Results

(Dollars in millions)


	Year Ended December 31, 2009
	Total				Merrill Lynch Global Wealth Management ^(1, 2)			U.S. Trust			Columbia Management			Other ⁽³⁾
Net interest income ⁽⁴⁾	$	5,564			$	4,567		$	1,361		$	32		$	(396	)
Noninterest income:
Investment and brokerage services		9,273				6,130			1,254			1,090			799
All other income (loss)		3,286				1,684			48			(201	)		1,755

Total noninterest income		12,559				7,814			1,302			889			2,554

Total revenue, net of interest expense		18,123				12,381			2,663			921			2,158

Provision for credit losses		1,061				619			442			—			—
Noninterest expense		13,077				9,411			1,945			932			789

Income (loss) before income taxes		3,985				2,351			276			(11	)		1,369

Income tax expense (benefit) ⁽⁴⁾		1,446				870			102			(4	)		478

Net income (loss)	$	2,539			$	1,481		$	174		$	(7	)	$	891


Net interest yield ⁽⁴⁾		2.53		%		2.49	%		2.58	%		n/m			n/m
Return on average equity		13.44				18.50			3.39			n/m			n/m

Efficiency ratio ⁽⁴⁾		72.16				76.01			73.03			n/m			n/m
Average - total loans and leases	$	103,398			$	50,848		$	52,548			n/m			n/m
Average - total deposits		225,980				185,013			39,933			n/m			n/m

Period end - total assets ⁽⁵⁾		254,192				195,175			55,371		$	2,717			n/m

	Year Ended December 31, 2008
	Total				Merrill Lynch Global Wealth Management ^(1, 2)			U.S. Trust			Columbia Management			Other
Net interest income ⁽⁴⁾	$	4,797			$	3,211		$	1,570		$	6		$	10
Noninterest income:
Investment and brokerage services		4,059				1,001			1,400			1,496			162
All other income (loss)		(1,047	)			58			18			(1,120	)		(3	)

Total noninterest income		3,012				1,059			1,418			376			159

Total revenue, net of interest expense		7,809				4,270			2,988			382			169

Provision for credit losses		664				561			103			—			—
Noninterest expense		4,910				1,788			1,831			1,126			165

Income (loss) before income taxes		2,235				1,921			1,054			(744	)		4

Income tax expense (benefit) ⁽⁴⁾		807				711			390			(275	)		(19	)

Net income (loss)	$	1,428			$	1,210		$	664		$	(469	)	$	23


Net interest yield ⁽⁴⁾		2.97		%		2.60	%		3.05	%		n/m			n/m
Return on average equity		12.20				36.66			14.20			n/m			n/m

Efficiency ratio ⁽⁴⁾		62.87				41.88			61.26			n/m			n/m
Average - total loans and leases	$	87,593			$	36,190		$	51,390			n/m			n/m
Average - total deposits		160,702				121,856			38,643			n/m			n/m

Period end - total assets ⁽⁵⁾		189,073				137,282			57,167		$	2,923			n/m

(1)

MLGWM includes the net impact of migrating customers, and their related deposit and loan balances, to or from Deposits and Home Loans & Insurance. After migration, the associated net interest income, noninterest income and noninterest expense are recorded in the applicable segment. During the year ended December 31, 2009, total deposits of $43.4 billion migrated to Deposits from MLGWM. During the year ended December 31, 2008, total deposits of $20.5 billion were migrated from Deposits to MLGWM. In addition, during the years ended December 31, 2009 and 2008, total loans of $16.6 billion and $1.7 billion were migrated to Home Loans & Insurance from MLGWM.

(2)

Effective January 1, 2009, as a result of the Merrill Lynch acquisition, we combined Merrill Lynch’s wealth management business and our former Premier Banking & Investment business to form MLGWM.

(3)

Other includes the results of the Retirement & Philanthropic Services, the Corporation’s approximately 34 percent economic ownership of BlackRock and other miscellaneous items.

(4)

Fully taxable-equivalent basis

(5)

Total assets include asset allocations to match liabilities (i.e., deposits).

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		30

Bank of America Corporation and Subsidiaries

Global Wealth & Investment Management - Key Indicators

(Dollars in millions, except as noted)


	Year Ended December 31								Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
	2009				2008				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009				First Quarter 2009				Fourth Quarter 2008
Investment and Brokerage Services
Merrill Lynch Global Wealth Management
Asset management fees	$	3,068			$	331			$	801			$	762			$	717			$	788			$	75
Brokerage income		3,062				670				813				780				719				750				163

Total	$	6,130			$	1,001			$	1,614			$	1,542			$	1,436			$	1,538			$	238


U.S. Trust
Asset management fees	$	1,225			$	1,352			$	290			$	303			$	325			$	307			$	292
Brokerage income		29				48				6				7				6				10				12

Total	$	1,254			$	1,400			$	296			$	310			$	331			$	317			$	304


Columbia Management
Asset management fees	$	1,088			$	1,494			$	282			$	276			$	270			$	260			$	301
Brokerage income		2				2				1				1				—				—				—

Total	$	1,090			$	1,496			$	283			$	277			$	270			$	260			$	301


Other
Asset management fees	$	463			$	162			$	120			$	114			$	113			$	116			$	37
Brokerage income		336				—				91				85				81				79				—

Total	$	799			$	162			$	211			$	199			$	194			$	195			$	37


Total Global Wealth & Investment Management
Asset management fees	$	5,844			$	3,339			$	1,493			$	1,455			$	1,425			$	1,471			$	705
Brokerage income		3,429				720				911				873				806				839				175

Total investment and brokerage services	$	9,273			$	4,059			$	2,404			$	2,328			$	2,231			$	2,310			$	880


Assets Under Management
Assets under management by business:
Merrill Lynch Global Wealth Management	$	281,933			$	16,682			$	281,933			$	268,107			$	239,888			$	219,658			$	16,682
U.S. Trust		187,984				178,657				187,984				187,964				180,902				179,142				178,657
Columbia Management		320,191				386,473				320,191				329,103				331,810				340,692				386,473
Retirement & Philanthropic Services		47,183				33,498				47,183				44,437				39,298				45,304				33,498
Eliminations⁽¹⁾		(87,574	)			(92,298	)			(87,574	)			(89,915	)			(86,811	)			(87,550	)			(92,298	)
International Wealth Management		135				147				135				135				129				125				147

Total assets under management	$	749,852			$	523,159			$	749,852			$	739,831			$	705,216			$	697,371			$	523,159


Assets under management rollforward:
Beginning balance	$	523,159			$	643,531			$	739,831			$	705,216			$	697,371			$	523,159			$	564,438
Merrill Lynch balance, January 1, 2009		246,292				—				—				—				—				246,292				—
Net flows		(92,669	)			1,197				(4,606	)			(17,757	)			(27,071	)			(43,235	)			12,596
Market valuation/other		73,070				(121,569	)			14,627				52,372				34,916				(28,845	)			(53,875	)

Ending balance	$	749,852			$	523,159			$	749,852			$	739,831			$	705,216			$	697,371			$	523,159


Assets under management mix:
Money market/other	$	179,112			$	253,310			$	179,112			$	193,593			$	215,637			$	244,577			$	253,310
Fixed income		226,970				102,747				226,970				221,963				204,974				198,177				102,747
Equity		343,770				167,102				343,770				324,275				284,605				254,617				167,102

Total assets under management	$	749,852			$	523,159			$	749,852			$	739,831			$	705,216			$	697,371			$	523,159


Assets under management - domestic and foreign:
Domestic	$	728,899			$	523,012			$	728,899			$	717,289			$	685,492			$	679,927			$	523,012
Foreign		20,953				147				20,953				22,542				19,724				17,444				147

Total assets under management	$	749,852			$	523,159			$	749,852			$	739,831			$	705,216			$	697,371			$	523,159


Client Brokerage Assets⁽²⁾	$	1,270,461			$	172,106			$	1,270,461			$	1,235,483			$	1,164,171			$	1,102,633			$	172,106

Merrill Lynch Global Wealth Management Metrics

Number of financial advisors		15,006				2,007				15,006				14,979				15,008				15,822				2,007

Financial Advisor Productivity⁽³⁾(in thousands)	$	817			$	1,652			$	830			$	824			$	809			$	803			$	1,576

Total client balances⁽⁴⁾	$	1,438,122			$	290,661			$	1,438,122			$	1,395,816			$	1,315,528			$	1,293,239			$	290,661

U.S. Trust Metrics

Client facing associates		3,957				4,473				3,957				3,944				3,968				4,015				4,473

Total client balances⁽⁴⁾	$	316,096			$	309,454			$	316,096			$	314,936			$	302,797			$	302,289			$	309,454

Columbia Management Performance Metrics

# of 4 or 5 Star Funds by Morningstar		36				53				36				43				54				49				53

% of Assets Under Management in 4 or 5 Star Rated Funds⁽⁵⁾		47		%		62		%		47		%		53		%		54		%		49		%		62		%

(1)

The elimination of assets under management that are managed by two lines of business.

(2)

The January 1, 2009 acquisition of Merrill Lynch contributed $1.0 trillion to client brokerage assets.

(3)

Financial Advisor Productivity is defined as annualized total revenue (excluding residual net interest income) divided by the total number of financial advisors. The decline in Financial Advisor Productivity in the first quarter 2009 compared to previous quarters results from the inclusion of Merrill Lynch financial advisors. Legacy Bank of America financial advisors historically have had higher amounts of credit and banking activity in their portfolios.

(4)

Client balances are defined as deposits, assets under management, client brokerage assets and other assets in custody.

(5)

Results shown are defined by Columbia Management’s calculation using Morningstar’s Overall Rating criteria for 4 & 5 star rating. The assets under management of the Columbia Funds that had a 4 & 5 star rating were totaled then divided by the assets under management of all the funds in the ranking.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		31

Bank of America Corporation and Subsidiaries

All Other Results ^{(1, 2)}

(Dollars in millions)


	Year Ended December 31						Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009			First Quarter 2009			Fourth Quarter 2008
	2009			2008			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009			First Quarter 2009			Fourth Quarter 2008
Net interest income ⁽³⁾	$	(6,922	)	$	(8,019	)	$	(1,559	)	$	(1,815	)	$	(1,626	)	$	(1,922	)	$	(1,875	)
Noninterest income:
Card income (loss)		(895	)		2,164			(431	)		(720	)		(278	)		534			368
Equity investment income (loss)		9,020			265			829			886			5,979			1,326			(388	)
Gains on sales of debt securities		4,440			1,133			856			1,441			672			1,471			783
All other income (loss)		(6,735	)		(711	)		(2,567	)		(2,371	)		(4,337	)		2,540			(331	)

Total noninterest income (loss)		5,830			2,851			(1,313	)		(764	)		2,036			5,871			432

Total revenue, net of interest expense		(1,092	)		(5,168	)		(2,872	)		(2,579	)		410			3,949			(1,443	)

Provision for credit losses ⁽⁴⁾		(3,431	)		(3,769	)		(1,523	)		(1,221	)		(10	)		(677	)		(613	)
Merger and restructuring charges		2,721			935			533			594			829			765			306
All other noninterest expense		1,997			189			560			611			593			233			142

Income (loss) before income taxes		(2,379	)		(2,523	)		(2,442	)		(2,563	)		(1,002	)		3,628			(1,278	)
Income tax expense (benefit) ⁽³⁾		(2,857	)		(1,283	)		(895	)		(963	)		(1,740	)		741			(748	)

Net income (loss)	$	478		$	(1,240	)	$	(1,547	)	$	(1,600	)	$	738		$	2,887		$	(530	)


Balance sheet

Average
Total loans and leases	$	155,561		$	135,789		$	146,185		$	147,666		$	159,144		$	169,593		$	145,241
Total deposits		103,122			105,725			91,775			108,244			104,382			108,208			110,471

Period end
Total loans and leases	$	152,944		$	136,163		$	152,944		$	145,856		$	153,010		$	165,535		$	136,163
Total deposits		78,618			86,888			78,618			94,573			99,495			92,436			86,888

(1)

All Other consists of equity investment activities including Global Principal Investments, Corporate Investments and Strategic Investments, the residential mortgage portfolio associated with ALM activities, the residual impact of cost allocation processes, merger and restructuring charges, intersegment eliminations and the results of certain businesses that are expected to be or have been sold or are in the process of being liquidated. All Other also includes certain amounts associated with ALM activities, including the residual impact of funds transfer pricing allocation methodologies, amounts associated with the change in the value of derivatives used as economic hedges of interest rate and foreign exchange rate fluctuations, foreign exchange rate fluctuations related to revaluation of foreign-denominated debt issuances, certain gains (losses) on sales of whole mortgage loans, and gains (losses) on sales of debt securities. All Other also includes adjustments to noninterest income and income tax expense to remove the FTE impact of items (primarily low-income housing tax credits) that have been grossed up within noninterest income to a FTE amount in the business segments. In addition, All Other includes the offsetting securitization impact to present Global Card Services on a managed basis. (See Exhibit A: Non-GAAP Reconciliations - All Other - Reconciliation on page 45).

(2)

Effective January 1, 2009, as part of the Merrill Lynch acquisition, All Other includes the results of First Republic Bank as well as fair value adjustments related to certain Merrill Lynch structured notes.

(3)

Fully taxable-equivalent basis

(4)

Provision for credit losses represents provision for credit losses in All Other combined with the Global Card Services securitization offset.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		32

Bank of America Corporation and Subsidiaries

Equity Investments

(Dollars in millions)

Global Principal Investments Exposures

Equity
Investment
Income
(Loss)

December 31, 2009

September 30,
2009

December 31, 2009

Book
Value

Unfunded
Commitments

Total

Total

Three months
ended

Year
ended

Global Principal Investments:

Global Private Equity

5,793

238

6,031

5,494

581

1,394

Global Real Estate

2,399

349

2,748

2,808

(35

)

(298

)

Global Strategic Capital

4,540

1,880

6,420

6,426

124

161

Legacy/Other Investments

1,339

1,419

1,457

(35

)

Total Global Principal Investments

14,071

2,547

16,618

16,185

671

1,222

Components of Equity Investment Income (Loss)

(Dollars in millions)


	Year Ended December 31						Fourth Quarter 2009		Third Quarter 2009			Second Quarter 2009			First Quarter 2009			Fourth Quarter 2008
	2009			2008			Fourth Quarter 2009		Third Quarter 2009			Second Quarter 2009			First Quarter 2009			Fourth Quarter 2008
Global Principal Investments	$	1,222		$	(84	)	$	671	$	713		$	304		$	(466	)	$	(363	)
Corporate Investments		(88	)		(520	)		65		109			10			(272	)		(295	)
Strategic and other investments ⁽¹⁾		7,886			869			93		64			5,665			2,064			270

Total equity investment income (loss) included in All Other		9,020			265			829		886			5,979			1,326			(388	)
Total equity investment income (loss) included in the business segments⁽²⁾		994			274			1,197		(43	)		(36	)		(124	)		(403	)

Total consolidated equity investment income (loss)	$	10,014		$	539		$	2,026	$	843		$	5,943		$	1,202		$	(791	)

(1)

For the three months ended June 30, 2009 and March 31, 2009, includes a $5.3 billion and $1.9 billion pre-tax gain due to sales of portions of the Corporation’s China Construction Bank investment.

(2)

For the three months ended December 31, 2009, includes a pre-tax gain of $1.1 billion related to the Corporation’s BlackRock equity investment interest.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		33

Bank of America Corporation and Subsidiaries

Outstanding Loans and Leases

(Dollars in millions)


	December 31 2009		September 30 2009		Increase (Decrease)
Consumer
Residential mortgage ⁽¹⁾	$	242,129	$	238,921	$	3,208
Home equity		149,126		152,039		(2,913	)
Discontinued real estate ⁽²⁾		14,854		15,460		(606	)
Credit card - domestic		49,453		49,221		232
Credit card - foreign		21,656		20,985		671
Direct/Indirect consumer ⁽³⁾		97,236		98,366		(1,130	)
Other consumer ⁽⁴⁾		3,110		3,264		(154	)

Total consumer		577,564		578,256		(692	)


Commercial
Commercial - domestic ⁽⁵⁾		198,903		207,607		(8,704	)
Commercial real estate ⁽⁶⁾		69,447		72,662		(3,215	)
Commercial lease financing		22,199		21,910		289
Commercial - foreign		27,079		27,634		(555	)

Total commercial loans		317,628		329,813		(12,185	)
Commercial loans measured at fair value ⁽⁷⁾		4,936		6,197		(1,261	)

Total commercial		322,564		336,010		(13,446	)

Total loans and leases	$	900,128	$	914,266	$	(14,138	)

(1)

Includes foreign residential mortgages of $552 million and $533 million at December 31, 2009 and September 30, 2009.

(2)

Includes $13.4 billion and $13.9 billion of pay option loans, and $1.5 billion of subprime loans at both December 31, 2009 and September 30, 2009 which were obtained in connection with the acquisition of Countrywide. The Corporation no longer originates these products.

(3)

Includes dealer financial services of $41.6 billion and $41.4 billion, consumer lending of $19.7 billion and $21.9 billion, securities based lending margin loans of $12.9 billion and $11.7 billion, and foreign consumer loans of $7.8 billion and $7.9 billion at December 31, 2009 and September 30, 2009.

(4)

At both December 31, 2009 and September 30, 2009, includes consumer finance loans of $2.3 billion, and other foreign consumer loans of $709 million and $683 million.

(5)

Includes small business commercial - domestic loans, primarily card related, of $17.5 billion and $17.9 billion at December 31, 2009 and September 30, 2009.

(6)

Includes domestic commercial real estate loans of $66.5 billion and $69.1 billion, and foreign commercial real estate loans of $3.0 billion and $3.5 billion at December 31, 2009 and September 30, 2009.

(7)

Certain commercial loans are measured under the fair value option and include commercial - domestic loans of $3.0 billion and $4.0 billion, commercial - foreign loans of $1.9 billion and $2.1 billion, and commercial real estate loans of $90 million and $98 million at December 31, 2009 and September 30, 2009.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		34

Bank of America Corporation and Subsidiaries

Quarterly Average Loans and Leases by Business Segment

(Dollars in millions)


	Fourth Quarter 2009
	Total Corporation		Deposits			Global Card Services ⁽¹⁾		Home Loans & Insurance		Global Banking		Global Markets		GWIM		All Other ⁽¹⁾
Consumer
Residential mortgage	$	236,883	$	—		$	—	$	—	$	314	$	557	$	35,822	$	200,190
Home equity		150,704		—			—		130,601		958		—		17,405		1,740
Discontinued real estate		15,152		—			—		—		—		—		—		15,152
Credit card - domestic		49,213		—			131,140		—		—		—		—		(81,927	)
Credit card - foreign		21,680		—			31,458		—		—		—		—		(9,778	)
Direct/Indirect consumer		98,938		10,707			22,195		85		42,199		35		23,346		371
Other consumer		3,177		209			732		5		7		2		13		2,209

Total consumer		575,747		10,916			185,525		130,691		43,478		594		76,586		127,957

Commercial
Commercial - domestic		207,050		379			17,510		1,626		146,188		7,586		21,367		12,394
Commercial real estate		71,352		7			266		9		60,387		1,096		2,183		7,404
Commercial lease financing		21,769		—			—		—		23,874		—		1		(2,106	)
Commercial - foreign		29,995		—			1,447		—		23,561		4,324		127		536

Total commercial		330,166		386			19,223		1,635		254,010		13,006		23,678		18,228

Total loans and leases	$	905,913	$	11,302		$	204,748	$	132,326	$	297,488	$	13,600	$	100,264	$	146,185


	Third Quarter 2009
	Total Corporation		Deposits			Global Card Services ⁽¹⁾		Home Loans & Insurance		Global Banking		Global Markets		GWIM		All Other ⁽¹⁾
Consumer
Residential mortgage	$	241,924	$	—		$	—	$	—	$	333	$	622	$	36,196	$	204,773
Home equity		153,269		—			—		130,751		995		—		18,380		3,143
Discontinued real estate		16,570		—			—		—		—		—		—		16,570
Credit card - domestic		49,751		—			137,312		—		—		—		—		(87,561	)
Credit card - foreign		21,189		—			31,148		—		—		—		—		(9,959	)
Direct/Indirect consumer		100,012		10,804			24,651		59		42,022		8		22,273		195
Other consumer		3,331		287			741		25		6		2		7		2,263

Total consumer		586,046		11,091			193,852		130,835		43,356		632		76,856		129,424

Commercial
Commercial - domestic		216,332		283			17,814		1,753		153,493		8,649		21,978		12,362
Commercial real estate		74,276		5			241		11		62,884		1,230		2,230		7,675
Commercial lease financing		22,068		—			—		—		24,140		2		—		(2,074	)
Commercial - foreign		31,533		—			1,433		—		24,891		4,813		117		279

Total commercial		344,209		288			19,488		1,764		265,408		14,694		24,325		18,242

Total loans and leases	$	930,255	$	11,379		$	213,340	$	132,599	$	308,764	$	15,326	$	101,181	$	147,666


	Fourth Quarter 2008
	Total Corporation		Deposits			Global Card Services ⁽¹⁾		Home Loans & Insurance		Global Banking		Global Markets		GWIM		All Other ⁽¹⁾
Consumer
Residential mortgage	$	253,560	$	—		$	—	$	—	$	519	$	—	$	35,278	$	217,763
Home equity		151,943		—			—		121,032		919		—		24,621		5,371
Discontinued real estate		21,324		—			—		—		—		—		—		21,324
Credit card - domestic		64,906		—			152,176		—		—		—		—		(87,270	)
Credit card - foreign		17,211		—			29,057		—		—		—		—		(11,846	)
Direct/Indirect consumer		83,331		8,365			30,649		99		40,144		—		4,647		(573	)
Other consumer		3,544		225			647		185		8		2		17		2,460

Total consumer		595,819		8,590			212,529		121,316		41,590		2		64,563		147,229

Commercial
Commercial - domestic		226,095		35			19,283		730		175,260		8,254		22,371		162
Commercial real estate		64,586		(8	)		249		19		61,395		1,016		1,874		41
Commercial lease financing		22,069		—			—		—		24,324		—		—		(2,255	)
Commercial - foreign		32,994		—			1,366		—		28,546		2,950		68		64

Total commercial		345,744		27			20,898		749		289,525		12,220		24,313		(1,988	)

Total loans and leases	$	941,563	$	8,617		$	233,427	$	122,065	$	331,115	$	12,222	$	88,876	$	145,241

(1)

Global Card Services is presented on a managed basis with a corresponding offset recorded in All Other.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		35

Bank of America Corporation and Subsidiaries

Commercial Credit Exposure by Industry ^{(1, 2, 3)}

(Dollars in millions)


	Commercial Utilized							Total Commercial Committed
	December 31 2009		September 30 2009		Increase (Decrease)			December 31 2009			September 30 2009			Increase (Decrease)
Diversified financials	$	68,876	$	75,650	$	(6,774	)	$	110,948		$	118,770		$	(7,822	)
Real estate ⁽⁴⁾		75,049		80,424		(5,375	)		91,479			98,857			(7,378	)
Government and public education		44,151		44,802		(651	)		61,446			61,547			(101	)
Capital goods		23,834		26,585		(2,751	)		47,413			51,653			(4,240	)
Healthcare equipment and services		29,584		30,960		(1,376	)		46,370			47,640			(1,270	)
Consumer services		28,517		29,068		(551	)		44,164			44,606			(442	)
Retailing		23,671		25,413		(1,742	)		42,260			44,611			(2,351	)
Commercial services and supplies		23,892		25,149		(1,257	)		34,646			37,500			(2,854	)
Individuals and trusts		25,191		24,448		743			33,678			32,021			1,657
Materials		16,373		18,431		(2,058	)		32,898			34,712			(1,814	)
Insurance		20,613		21,945		(1,332	)		28,033			28,947			(914	)
Food, beverage and tobacco		14,812		15,131		(319	)		27,985			28,180			(195	)
Utilities		9,217		9,732		(515	)		25,229			26,639			(1,410	)
Energy		9,605		10,641		(1,036	)		23,619			23,941			(322	)
Banks		20,299		20,040		259			23,384			23,156			228
Media		11,236		12,131		(895	)		22,832			23,783			(951	)
Transportation		13,724		13,804		(80	)		19,597			19,558			39
Religious and social organizations		8,920		9,261		(341	)		11,371			11,891			(520	)
Pharmaceuticals and biotechnology		2,875		3,364		(489	)		10,343			9,812			531
Consumer durables and apparel		4,374		5,086		(712	)		9,829			10,159			(330	)
Technology hardware and equipment		3,135		3,228		(93	)		9,671			9,557			114
Telecommunication services		3,558		3,746		(188	)		9,478			10,006			(528	)
Software and services		3,216		3,548		(332	)		9,306			9,707			(401	)
Food and staples retailing		3,680		3,878		(198	)		6,562			6,776			(214	)
Automobiles and components		2,379		2,615		(236	)		5,339			5,215			124
Other		3,596		5,748		(2,152	)		7,390			11,111			(3,721	)
Total commercial credit exposure by industry	$	494,377	$	524,828	$	(30,451	)	$	795,270		$	830,355		$	(35,085	)

Net credit default protection purchased on total commitments ⁽⁵⁾								$	(19,025	)	$	(21,558	)

(1)

Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held-for-sale, commercial letters of credit, bankers’ acceptances, securitized assets, foreclosed properties and other collateral acquired. Derivative assets are reported on a mark-to-market basis and have been reduced by the amount of cash collateral applied of $58.4 billion and $71.9 billion at December 31, 2009 and September 30, 2009. Not reflected in utilized and committed exposure is additional derivative non-cash collateral held of $16.2 billion and $17.6 billion which consists primarily of other marketable securities at December 31, 2009 and September 30, 2009.

(2)

Total commercial utilized and total commercial committed exposure includes loans and letters of credit measured at fair value under the fair value option and are comprised of loans outstanding of $4.9 billion and $6.2 billion and issued letters of credit at notional value of $1.7 billion and $1.9 billion at December 31, 2009 and September 30, 2009. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $25.3 billion and $26.7 billion at December 31, 2009 and September 30, 2009.

(3)

Includes small business commercial - domestic exposure.

(4)

Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based upon the borrowers’ or counterparties’ primary business activity using operating cash flow and primary source of repayment as key factors.

(5)

Represents net notional credit protection purchased.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 include the Countrywide acquisition. Information for the period beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		36

Bank of America Corporation and Subsidiaries

Net Credit Default Protection by Maturity Profile ⁽¹⁾


	December 31 2009		September 30 2009
Less than or equal to one year	16	%	13	%
Greater than one year and less than or equal to five years	81		84
Greater than five years	3		3
Total net credit default protection	100	%	100	%

(1)

In order to mitigate the cost of purchasing credit protection, credit exposure can be added by selling credit protection. The distribution of maturities for net credit default protection purchased is shown above.

Net Credit Default Protection by Credit Exposure Debt Rating ^{(1, 2)}

(Dollars in millions)


	December 31, 2009						September 30, 2009
Ratings ⁽³⁾	Net Notional			Percent			Net Notional			Percent
AAA	$	15		(0.1	)	%	$	15		(0.1	)	%
AA		(344	)	1.8				(465	)	2.2
A		(6,092	)	32.0				(6,239	)	28.9
BBB		(9,573	)	50.4				(11,262	)	52.3
BB		(2,725	)	14.3				(3,015	)	14.0
B		(835	)	4.4				(974	)	4.5
CCC and below		(1,691	)	8.9				(1,886	)	8.7
NR⁽⁴⁾		2,220		(11.7	)			2,268		(10.5	)
Total net credit default protection	$	(19,025	)	100.0		%	$	(21,558	)	100.0		%

(1)

In order to mitigate the cost of purchasing credit protection, credit exposure can be added by selling credit protection. The distribution of debt rating for net notional credit default protection purchased is shown as a negative and the net notional credit protection sold is shown as a positive amount.

(2)

Ratings are refreshed on a quarterly basis.

(3)

The Corporation considers ratings of BBB- or higher to meet the definition of investment grade.

(4)

In addition to names which have not been rated, “NR” includes $2.3 billion and $2.4 billion in net credit default swap index positions at December 31, 2009 and September 30, 2009. While index positions are principally investment grade, credit default swaps indices include names in and across each of the ratings categories.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		37

Bank of America Corporation and Subsidiaries

Selected Emerging Markets ⁽¹⁾

(Dollars in millions)


	Loans and Leases, and Loan Commitments		Other Financing ⁽²⁾		Derivative Assets ⁽³⁾		Securities / Other Investments ⁽⁴⁾		Total Cross–border Exposure ⁽⁵⁾		Local Country Exposure Net of Local Liabilities⁽⁶⁾		Total Emerging Markets Exposure December 31, 2009		Increase (Decrease) from September 30, 2009
Region/Country
Asia Pacific
China ⁽⁷⁾	$	572	$	517	$	704	$	10,270	$	12,063	$	—	$	12,063	$	(44	)
India		1,702		1,091		639		1,704		5,136		1,024		6,160		1,346
South Korea		428		803		1,275		2,505		5,011		—		5,011		(567	)
Hong Kong		391		337		98		276		1,102		—		1,102		(192	)
Singapore		293		54		228		293		868		—		868		(17	)
Taiwan		279		32		86		127		524		205		729		(91	)
Other Asia Pacific⁽⁸⁾		248		63		147		505		963		68		1,031		(275	)
Total Asia Pacific		3,913		2,897		3,177		15,680		25,667		1,297		26,964		160
Latin America
Brazil ⁽⁹⁾		522		475		156		6,396		7,549		1,905		9,454		314
Mexico ⁽¹⁰⁾		1,667		291		524		2,860		5,342		129		5,471		(33	)
Chile		604		248		281		26		1,159		2		1,161		(50	)
Other Latin America ⁽⁸⁾		150		319		354		446		1,269		211		1,480		26
Total Latin America		2,943		1,333		1,315		9,728		15,319		2,247		17,566		257
Middle East and Africa
South Africa		133		2		93		920		1,148		—		1,148		(89	)
Bahrain		119		8		36		970		1,133		—		1,133		934
United Arab Emirates		469		12		167		72		720		—		720		56
Other Middle East and Africa ⁽⁸⁾		315		92		142		218		767		1		768		(19	)
Total Middle East and Africa		1,036		114		438		2,180		3,768		1		3,769		882
Central and Eastern Europe
Russian Federation		116		66		273		214		669		—		669		179
Other Central and Eastern Europe ⁽⁸⁾		141		356		289		788		1,574		32		1,606		161
Total Central and Eastern Europe		257		422		562		1,002		2,243		32		2,275		340
Total emerging market exposure	$	8,149	$	4,766	$	5,492	$	28,590	$	46,997	$	3,577	$	50,574	$	1,639

(1)

There is no generally accepted definition of emerging markets. The definition that we use includes all countries in Asia Pacific excluding Japan, Australia and New Zealand; all countries in Latin America excluding Cayman Islands and Bermuda; all countries in Middle East and Africa; and all countries in Central and Eastern Europe excluding Greece. There was no emerging market exposure included in the portfolio measured at fair value under the fair value option at December 31, 2009 and September 30, 2009.

(2)

Includes acceptances, standby letters of credit, commercial letters of credit and formal guarantees.

(3)

Derivative assets are reported at fair value and are reduced by the amount of cash collateral applied of $557 million and $775 million at December 31, 2009 and September 30, 2009. At December 31, 2009 and September 30, 2009, there were $616 million and $605 million of other marketable securities collateralizing derivative assets.

(4)

Generally, cross-border resale agreements are presented based on the domicile of the counterparty, consistent with Federal Financial Institutions Examination Council (FFIEC) reporting requirements. Cross-border resale agreements where the underlying securities are U.S. Treasury securities, in which case the domicile is the U.S., are excluded from this presentation.

(5)

Cross-border exposure includes amounts payable to the Corporation by borrowers or counterparties with a country of residence other than the one in which the credit is booked, regardless of the currency in which the claim is denominated, consistent with FFIEC reporting requirements.

(6)

Local country exposure includes amounts payable to the Corporation by borrowers with a country of residence in which the credit is booked, regardless of the currency in which the claim is denominated. Local funding or liabilities are subtracted from local exposures consistent with FFIEC reporting requirements. Total amount of available local liabilities funding local country exposure at December 31, 2009 was $17.6 billion compared to $18.0 billion at September 30, 2009. Local liabilities at December 31, 2009 in Asia Pacific, Latin America, and Middle East and Africa were $16.3 billion, $857 million, and $449 million, respectively, of which $8.7 billion were in Singapore, $2.1 billion in Hong Kong, $1.5 billion in both China and India, $1.3 billion in South Korea, and $734 million in Mexico. There were no other countries with available local liabilities funding local country exposure greater than $500 million.

(7)

Securities/Other Investments include an investment of $9.2 billion in China Construction Bank (CCB).

(8)

No country included in Other Asia Pacific, Other Latin America, Other Middle East and Africa, or Other Central and Eastern Europe had total foreign exposure of more than $500 million.

(9)

Securities/Other Investments include an investment of $5.4 billion in Banco Itaú Holding Financeira S.A.

(10)

Securities/Other Investments include an investment of $2.5 billion in Grupo Financiero Santander, S.A.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		38

Bank of America Corporation and Subsidiaries

Nonperforming Assets


(Dollars in millions)	December 31 2009			September 30 2009			June 30 2009			March 31 2009			December 31 2008
Residential mortgage	$	16,596		$	15,509		$	13,615		$	10,846		$	7,057
Home equity		3,804			3,741			3,826			3,497			2,637
Discontinued real estate		249			207			181			129			77
Direct/Indirect consumer		86			92			57			29			26
Other consumer		104			105			93			91			91

Total consumer		20,839			19,654			17,772			14,592			9,888


Commercial - domestic⁽¹⁾		4,925			4,719			4,204			3,022			2,040
Commercial real estate		7,286			6,943			6,651			5,662			3,906
Commercial lease financing		115			170			104			104			56
Commercial - foreign		177			261			250			300			290

		12,503			12,093			11,209			9,088			6,292
Small business commercial - domestic		200			167			200			224			205

Total commercial		12,703			12,260			11,409			9,312			6,497

Total nonperforming loans and leases		33,542			31,914			29,181			23,904			16,385
Foreclosed properties		2,205			1,911			1,801			1,728			1,827

Total nonperforming assets ^{(2, 3, 4)}	$	35,747		$	33,825		$	30,982		$	25,632		$	18,212


Loans past due 90 days or more and still accruing ^{(2, 4, 5, 6)}	$	16,845		$	7,595		$	6,403		$	6,344		$	5,414

Nonperforming assets/Total assets ⁽⁷⁾		1.61	%		1.51	%		1.38	%		1.11	%		1.00	%

Nonperforming assets/Total loans, leases and foreclosed properties⁽⁷⁾		3.98			3.72			3.31			2.64			1.96

Nonperforming loans and leases/Total loans and leases outstanding⁽⁷⁾		3.75			3.51			3.12			2.47			1.77

Allowance for credit losses:
Allowance for loan and lease losses	$	37,200		$	35,832		$	33,785		$	29,048		$	23,071
Reserve for unfunded lending commitments⁽⁸⁾		1,487			1,567			1,992			2,102			421

Total allowance for credit losses	$	38,687		$	37,399		$	35,777		$	31,150		$	23,492


Allowance for loan and lease losses/Total loans and leases outstanding⁽⁷⁾		4.16	%		3.95	%		3.61	%		3.00	%		2.49	%

Allowance for loan and lease losses/Total nonperforming loans and leases⁽⁷⁾		111			112			116			122			141

Commercial utilized reservable criticized exposure⁽⁹⁾	$	58,687		$	60,059		$	57,180		$	48,660		$	36,937

Commercial utilized reservable criticized exposure/Commercial utilized exposure⁽⁹⁾		14.94	%		14.78	%		13.53	%		11.13	%		8.90	%

(1)

Excludes small business commercial - domestic loans.

(2)

Balances do not include loans accounted for as purchased impaired loans even though the customer may be contractually past due. Loans accounted for as purchased impaired loans were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan.

(3)

Balances do not include nonperforming loans held-for-sale of $7.3 billion, $6.2 billion, $5.9 billion, $5.0 billion and $4.1 billion at December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively.

(4)

Balances do not include loans measured at fair value under the fair value option. At December 31, 2009 and September 30, 2009, there were $15 million and $24 million of nonperforming loans measured at fair value under fair value option. At June 30, 2009, March 31, 2009 and December 31, 2008, there were no nonperforming loans measured at fair value under the fair value option. At December 31, 2009 and September 30, 2009, there were $87 million and $111 million of loans past due 90 days or more and still accruing interest measured at fair value under the fair value option. At June 30, 2009, March 31, 2009 and December 31, 2008, there were no loans past due 90 days or more and still accruing interest measured at fair value under the fair value option.

(5)

Balances do not include loans held-for-sale past due 90 days or more and still accruing interest included in other assets of $6 million, $6 million, $0, $18 million and $31 million at December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively.

(6)

Includes purchase of $9.4 billion of Government National Mortgage Association loans during the three months ended December 31, 2009.

(7)

Ratios do not include loans measured at fair value under the fair value option of $4.9 billion, $6.2 billion, $7.0 billion, $7.4 billion and $5.4 billion at December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively.

(8)

The majority of the increase from December 31, 2008 relates to the fair value of the acquired Merrill Lynch unfunded lending commitments, excluding commitments measured at fair value under the fair value option.

(9)

Criticized exposure and ratios exclude assets held-for-sale, exposure measured at fair value under the fair value option and other nonreservable exposure. Including assets held-for-sale, other nonreservable exposure and commercial loans measured at fair value, the ratios would have been 16.44 percent, 15.85 percent, 14.93 percent, 12.63 percent and 9.45 percent at December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively.

Loans are classified as domestic or foreign based upon the domicile of the borrower.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		39

Bank of America Corporation and Subsidiaries

Nonperforming Asset Activity

(Dollars in millions)


	Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009			First Quarter 2009			Fourth Quarter 2008
Nonperforming Consumer Loans and Leases:
Balance, beginning of period	$	19,654		$	17,772		$	14,592		$	9,888		$	6,822
Additions ⁽¹⁾		6,521			6,696			7,076			7,718			5,283
Paydowns and payoffs		(371	)		(410	)		(382	)		(296	)		(146	)
Return to performing status ⁽²⁾		(2,169	)		(966	)		(804	)		(601	)		(501	)
Charge-offs ⁽³⁾		(2,443	)		(2,829	)		(2,478	)		(1,692	)		(1,233	)
Other		(353	)		(609	)		(232	)		(425	)		(337	)

Total nonperforming consumer loans and leases, end of period		20,839			19,654			17,772			14,592			9,888
Foreclosed properties		1,428			1,298			1,330			1,356			1,506

Total nonperforming consumer assets	$	22,267		$	20,952		$	19,102		$	15,948		$	11,394

Nonperforming Commercial Loans and Leases ⁽⁴⁾:
Balance, beginning of period	$	12,260		$	11,409		$	9,312		$	6,497		$	4,922
Additions ⁽¹⁾		3,792			4,289			4,416			4,434			3,095
Paydowns and payoffs		(1,048	)		(944	)		(593	)		(490	)		(368	)
Return to performing status ⁽²⁾		(220	)		(94	)		(92	)		(55	)		(35	)
Charge-offs ⁽⁵⁾		(1,448	)		(1,773	)		(1,429	)		(976	)		(896	)
Other		(633	)		(627	)		(205	)		(98	)		(221	)

Total nonperforming commercial loans and leases, end of period		12,703			12,260			11,409			9,312			6,497
Foreclosed properties		777			613			471			372			321

Total nonperforming commercial assets	$	13,480		$	12,873		$	11,880		$	9,684		$	6,818

(1)

The first quarter of 2009 includes $465 million of nonperforming consumer loans and leases and $402 million of nonperforming commercial loans and leases acquired from Merrill Lynch.

(2)

Loans and leases may be restored to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Troubled debt restructurings are generally classified as performing after also considering the borrower’s sustained historical repayment performance for a reasonable period, generally six months.

(3)

Our policy is not to classify consumer credit card and consumer non-real estate loans and leases as nonperforming; therefore, the charge-offs on these loans have no impact on nonperforming activity.

(4)

Includes small business commercial – domestic activity.

(5)

Business card loans are not classified as nonperforming; therefore, the charge-offs on these loans have no impact on nonperforming activity.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		40

Bank of America Corporation and Subsidiaries

Quarterly Net Charge-offs/Losses and Net Charge-off/Loss Ratios ⁽¹⁾

(Dollars in millions)


	Fourth Quarter 2009					Third Quarter 2009					Second Quarter 2009					First Quarter 2009					Fourth Quarter 2008
Held Basis	Amount			Percent		Amount			Percent		Amount			Percent		Amount			Percent		Amount			Percent
Residential mortgage	$	1,233		2.07	%	$	1,247		2.05	%	$	1,085		1.72	%	$	785		1.20	%	$	466		0.73	%
Home equity		1,560		4.11			1,970		5.10			1,839		4.71			1,681		4.30			1,113		2.92
Discontinued real estate		14		0.38			37		0.89			35		0.76			15		0.31			19		0.36
Credit card - domestic		1,546		12.46			1,787		14.25			1,788		13.87			1,426		9.81			1,244		7.63
Credit card - foreign		395		7.22			382		7.14			276		5.88			186		4.48			162		3.75
Direct/Indirect consumer		1,288		5.17			1,451		5.76			1,475		5.90			1,249		5.03			1,054		5.03
Other consumer		114		14.20			118		14.00			99		11.93			97		11.67			124		13.79

Total consumer		6,150		4.24			6,992		4.73			6,597		4.39			5,439		3.54			4,182		2.79

Commercial - domestic ⁽²⁾		637		1.36			773		1.58			536		1.03			244		0.46			255		0.50
Commercial real estate		745		4.15			873		4.67			629		3.34			455		2.56			382		2.36
Commercial lease financing		43		0.79			41		0.72			44		0.81			67		1.22			31		0.57
Commercial - foreign		162		2.30			149		2.05			122		1.54			104		1.25			129		1.63

		1,587		2.05			1,836		2.28			1,331		1.58			870		1.02			797		0.99
Small business commercial - domestic		684		15.16			796		17.45			773		16.69			633		13.47			562		11.55

Total commercial		2,271		2.78			2,632		3.09			2,104		2.37			1,503		1.68			1,359		1.59

Total net charge-offs	$	8,421		3.71		$	9,624		4.13		$	8,701		3.64		$	6,942		2.85		$	5,541		2.36


By Business Segment
Deposits	$	98		3.45	%	$	100		3.48	%	$	88		3.26	%	$	88		3.42	%	$	106		4.89	%
Global Card Services ⁽³⁾		6,617		12.82			7,536		14.02			7,096		12.91			5,406		9.60			4,623		7.88
Home Loans & Insurance		1,501		4.50			1,963		5.87			1,598		4.88			1,492		4.77			976		3.18
Global Banking		1,436		1.91			1,748		2.25			1,477		1.83			1,122		1.37			992		1.19
Global Markets		254		12.25			44		1.98			29		1.00			5		0.17			15		0.87
Global Wealth & Investment Management		211		0.84			285		1.12			172		0.68			162		0.60			145		0.65
All Other ⁽³⁾		(1,696	)	(4.61	)		(2,052	)	(5.52	)		(1,759	)	(4.43	)		(1,333	)	(3.21	)		(1,316	)	(3.60	)

Total net charge-offs	$	8,421		3.71		$	9,624		4.13		$	8,701		3.64		$	6,942		2.85		$	5,541		2.36


Supplemental managed basis data

Credit card - domestic	$	4,195		12.69	%	$	4,816		13.92	%	$	4,530		12.69	%	$	3,421		9.20	%	$	2,929		7.66	%
Credit card - foreign		672		8.48			661		8.41			517		7.06			373		5.47			334		4.57

Total credit card managed net losses	$	4,867		11.88		$	5,477		12.90		$	5,047		11.73		$	3,794		8.62		$	3,263		7.16

(1)

Net charge-off/loss ratios are calculated as held net charge-offs or managed net losses divided by average outstanding held or managed loans and leases excluding loans measured at fair value under the fair value option during the period for each loan and lease category.

(2)

Excludes small business commercial - domestic loans.

(3)

Global Card Services is presented on a managed basis. The securitization offset is included within All Other.

Loans are classified as domestic or foreign based upon the domicile of the borrower.

Certain prior period amounts have been reclassified to conform to current period presentation.

LOGO

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		41

Bank of America Corporation and Subsidiaries

Year-to-Date Net Charge-offs/Losses and Net Charge-off/Loss Ratios⁽¹⁾

(Dollars in millions)


	Year Ended December 31
	2009						2008
Held Basis	Amount			Percent			Amount			Percent
Residential mortgage	$	4,350		1.74		%	$	925		0.36		%
Home equity		7,050		4.56				3,496		2.59
Discontinued real estate		101		0.58				16		0.15
Credit card - domestic		6,547		12.50				4,161		6.57
Credit card - foreign		1,239		6.30				551		3.34
Direct/Indirect consumer		5,463		5.46				3,114		3.77
Other consumer		428		12.94				399		10.46

Total consumer		25,178		4.22				12,662		2.21

Commercial - domestic ⁽²⁾		2,190		1.09				519		0.26
Commercial real estate		2,702		3.69				887		1.41
Commercial lease financing		195		0.89				60		0.27
Commercial - foreign		537		1.76				173		0.55

		5,624		1.72				1,639		0.52
Small business commercial - domestic		2,886		15.68				1,930		9.80

Total commercial		8,510		2.47				3,569		1.07

Total net charge-offs	$	33,688		3.58			$	16,231		1.79

By Business Segment
Deposits	$	374		3.41		%	$	366		4.68		%
Global Card Services ⁽³⁾		26,655		12.30				15,723		6.64
Home Loans & Insurance		6,554		5.02				3,104		2.94
Global Banking		5,783		1.84				2,225		0.70
Global Markets		332		3.33				31		0.22
Global Wealth & Investment Management		830		0.80				396		0.45
All Other ⁽³⁾		(6,840	)	(4.40	)			(5,614	)	(4.14	)

Total net charge-offs	$	33,688		3.58			$	16,231		1.79


Supplemental managed basis data
Credit card - domestic	$	16,962		12.07		%	$	10,054		6.60		%
Credit card - foreign		2,223		7.43				1,328		4.17

Total credit card managed net losses	$	19,185		11.25			$	11,382		6.18

(1)

(2)

Excludes small business commercial - domestic loans.

(3)

Global Card Services is presented on a managed basis. The securitization offset is included within All Other.

Loans are classified as domestic or foreign based upon the domicile of the borrower.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		42

Bank of America Corporation and Subsidiaries

Allocation of the Allowance for Credit Losses by Product Type

(Dollars in millions)


	December 31, 2009						September 30, 2009						December 31, 2008
Allowance for loan and lease losses	Amount		Percent of Total		Percent of Loans and Leases Outstanding ⁽¹⁾		Amount		Percent of Total		Percent of Loans and Leases Outstanding ⁽¹⁾		Amount		Percent of Total		Percent of Loans and Leases Outstanding ⁽¹⁾
Residential mortgage	$	4,607	12.38	%	1.90	%	$	4,461	12.45	%	1.87	%	$	1,382	5.99	%	0.56	%
Home equity		10,160	27.31		6.81			9,719	27.12		6.39			5,385	23.34		3.53
Discontinued real estate		989	2.66		6.66			1,016	2.84		6.57			658	2.85		3.29
Credit card - domestic		6,017	16.18		12.17			5,182	14.46		10.53			3,947	17.11		6.16
Credit card - foreign		1,581	4.25		7.30			1,328	3.71		6.33			742	3.22		4.33
Direct/Indirect consumer		4,227	11.36		4.35			4,811	13.43		4.89			4,341	18.81		5.20
Other consumer		204	0.55		6.53			205	0.57		6.27			203	0.88		5.87

Total consumer		27,785	74.69		4.81			26,722	74.58		4.62			16,658	72.20		2.83

Commercial - domestic ⁽²⁾		5,152	13.85		2.59			5,385	15.03		2.59			4,339	18.81		1.98
Commercial real estate		3,567	9.59		5.14			3,007	8.39		4.14			1,465	6.35		2.26
Commercial lease financing		291	0.78		1.31			255	0.71		1.16			223	0.97		1.00
Commercial - foreign		405	1.09		1.50			463	1.29		1.68			386	1.67		1.25

Total commercial ⁽³⁾		9,415	25.31		2.96			9,110	25.42		2.76			6,413	27.80		1.90

Allowance for loan and lease losses		37,200	100.00	%	4.16			35,832	100.00	%	3.95			23,071	100.00	%	2.49

Reserve for unfunded lending commitments ⁽⁴⁾		1,487						1,567						421

Allowance for credit losses	$	38,687					$	37,399					$	23,492

(1)

Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans measured at fair value under the fair value option for each loan and lease category. Loans measured at fair value include commercial - domestic loans of $3.0 billion, $4.0 billion and $3.5 billion, commercial - foreign loans of $1.9 billion, $2.1 billion and $1.7 billion, and commercial real estate loans of $90 million, $98 million and $203 million at December 31, 2009, September 30, 2009 and December 31, 2008.

(2)

Includes allowance for small business commercial - domestic loans of $2.4 billion, $2.7 billion and $2.4 billion at December 31, 2009, September 30, 2009 and December 31, 2008.

(3)

Includes allowance for loan and lease losses for impaired commercial loans of $1.2 billion, $1.3 billion and $691 million at December 31, 2009, September 30, 2009 and December 31, 2008.

(4)

Amounts for the periods beginning January 1, 2009 include the Merrill Lynch acquisition. The majority of the increase from December 31, 2008 relates to the fair value of the acquired Merrill Lynch unfunded lending commitments, excluding commitments accounted for under fair value option.

Certain prior period amounts have been reclassified to conform to current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		43

Exhibit A: Non-GAAP Reconciliations

Bank of America Corporation and Subsidiaries

Global Card Services - Reconciliation

(Dollars in millions)


	Year Ended December 31, 2009									Year Ended December 31, 2008									Fourth Quarter 2009
	Managed Basis ⁽¹⁾			Securitization Impact ⁽²⁾			Held Basis			Managed Basis ⁽¹⁾			Securitization Impact⁽²⁾			Held Basis			Managed Basis ⁽¹⁾			Securitization Impact ⁽²⁾			Held Basis
Net interest income⁽³⁾	$	20,264		$	(9,250	)	$	11,014		$	19,589		$	(8,701	)	$	10,888		$	4,953		$	(2,226	)	$	2,727
Noninterest income:
Card income		8,555			(2,034	)		6,521			10,033			2,250			12,283			2,093			(679	)		1,414
All other income		523			(115	)		408			1,598			(219	)		1,379			115			(21	)		94

Total noninterest income		9,078			(2,149	)		6,929			11,631			2,031			13,662			2,208			(700	)		1,508

Total revenue, net of interest expense		29,342			(11,399	)		17,943			31,220			(6,670	)		24,550			7,161			(2,926	)		4,235

Provision for credit losses		30,081			(11,399	)		18,682			20,164			(6,670	)		13,494			6,924			(2,926	)		3,998
Noninterest expense		7,961			—			7,961			9,160			—			9,160			1,936			—			1,936

Income (loss) before income taxes		(8,700	)		—			(8,700	)		1,896			—			1,896			(1,699	)		—			(1,699	)
Income tax expense (benefit)⁽³⁾		(3,145	)		—			(3,145	)		662			—			662			(671	)		—			(671	)

Net income (loss)	$	(5,555	)	$	—		$	(5,555	)	$	1,234		$	—		$	1,234		$	(1,028	)	$	—		$	(1,028	)


Balance sheet
Average - total loans and leases	$	216,654		$	(98,453	)	$	118,201		$	236,714		$	(104,401	)	$	132,313		$	204,748		$	(91,705	)	$	113,043
Period end - total loans and leases		201,230			(89,715	)		111,515			233,040			(100,960	)		132,080			201,230			(89,715	)		111,515

	Third Quarter 2009									Second Quarter 2009									First Quarter 2009
	Managed Basis ⁽¹⁾			Securitization Impact⁽²⁾			Held Basis			Managed Basis ⁽¹⁾			Securitization Impact⁽²⁾			Held Basis			Managed Basis ⁽¹⁾			Securitization Impact⁽²⁾			Held Basis
Net interest income⁽³⁾	$	4,995		$	(2,275	)	$	2,720		$	5,051		$	(2,358	)	$	2,693		$	5,265		$	(2,391	)	$	2,874
Noninterest income:
Card income		2,183			(1,007	)		1,176			2,164			(592	)		1,572			2,115			244			2,359
All other income		149			(26	)		123			124			(33	)		91			135			(35	)		100

Total noninterest income		2,332			(1,033	)		1,299			2,288			(625	)		1,663			2,250			209			2,459

Total revenue, net of interest expense		7,327			(3,308	)		4,019			7,339			(2,983	)		4,356			7,515			(2,182	)		5,333

Provision for credit losses		6,975			(3,308	)		3,667			7,741			(2,983	)		4,758			8,441			(2,182	)		6,259
Noninterest expense		1,969			—			1,969			1,977			—			1,977			2,079			—			2,079

Loss before income taxes		(1,617	)		—			(1,617	)		(2,379	)		—			(2,379	)		(3,005	)		—			(3,005	)
Income tax benefit⁽³⁾		(581	)		—			(581	)		(762	)		—			(762	)		(1,131	)		—			(1,131	)

Net loss	$	(1,036	)	$	—		$	(1,036	)	$	(1,617	)	$	—		$	(1,617	)	$	(1,874	)	$	—		$	(1,874	)


Balance sheet
Average - total loans and leases	$	213,340		$	(97,520	)	$	115,820		$	220,365		$	(102,046	)	$	118,319		$	228,461		$	(102,672	)	$	125,789
Period end - total loans and leases		207,727			(94,328	)		113,399			215,904			(100,438	)		115,466			221,984			(105,392	)		116,592

	Fourth Quarter 2008
	Managed Basis ⁽¹⁾			Securitization Impact⁽²⁾			Held Basis
Net interest income⁽³⁾	$	5,310		$	(2,299	)	$	3,011
Noninterest income:
Card income		2,469			482			2,951
All other income		239			(40	)		199

Total noninterest income		2,708			442			3,150

Total revenue, net of interest expense		8,018			(1,857	)		6,161

Provision for credit losses		5,851			(1,857	)		3,994
Noninterest expense		2,179			—			2,179

Loss before income taxes		(12	)		—			(12	)
Income tax benefit⁽³⁾		(3	)		—			(3	)

Net loss	$	(9	)	$	—		$	(9	)


Balance sheet
Average - total loans and leases	$	233,427		$	(99,116	)	$	134,311
Period end - total loans and leases		233,040			(100,960	)		132,080

(1)

Provision for credit losses represents provision for credit losses on held loans combined with realized credit losses associated with the securitized loan portfolio.

(2)

The securitization impact on net interest income is on a funds transfer pricing methodology consistent with the way funding costs are allocated to the businesses.

(3)

Fully taxable-equivalent basis

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

The Corporation reports Global Card Services’ results on a managed basis which is consistent with the way that management evaluates the results of Global Card Services. Managed basis assumes that securitized loans were not sold and presents earnings on these loans in a manner similar to the way loans that have not been sold (i.e., held loans) are presented. Loan securitization is an alternative funding process that is used by the Corporation to diversify funding sources. Loan securitization removes loans from the Consolidated Balance Sheet through the sale of loans to an off-balance sheet qualified special purpose entity which is excluded from the Corporation’s Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States (GAAP).

The performance of the managed portfolio is important in understanding Global Card Services’ results as it demonstrates the results of the entire portfolio serviced by the business. Securitized loans continue to be serviced by the business and are subject to the same underwriting standards and ongoing monitoring as held loans. In addition, excess servicing income is exposed to similar credit risk and repricing of interest rates as held loans. Global Card Services’ managed income statement line items differ from a held basis reported as follows:

•

Managed net interest income includes Global Card Services’ net interest income on held loans and interest income on the securitized loans less the internal funds transfer pricing allocation related to securitized loans.

•

Managed noninterest income includes Global Card Services’ noninterest income on a held basis less the reclassification of certain components of card income (e.g., excess servicing income) to record securitized net interest income and provision for credit losses. Noninterest income, both on a held and managed basis, also includes the impact of adjustments to the interest-only strips that are recorded in card income as management continues to manage this impact within Global Card Services.

•

Provision for credit losses represents the provision for credit losses on held loans combined with realized credit losses associated with the securitized loan portfolio.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		44

Exhibit A: Non-GAAP Reconciliations - continued

Bank of America Corporation and Subsidiaries

All Other - Reconciliation

(Dollars in millions)


	Year Ended December 31, 2009									Year Ended December 31, 2008									Fourth Quarter 2009
	Reported Basis ⁽¹⁾			Securitization Offset⁽²⁾			As Adjusted			Reported Basis ⁽¹⁾			Securitization Offset⁽²⁾			As Adjusted			Reported Basis ⁽¹⁾			Securitization Offset⁽²⁾			As Adjusted
Net interest income⁽³⁾	$	(6,922	)	$	9,250		$	2,328		$	(8,019	)	$	8,701		$	682		$	(1,559	)	$	2,226		$	667
Noninterest income:
Card income (loss)		(895	)		2,034			1,139			2,164			(2,250	)		(86	)		(431	)		679			248
Equity investment income		9,020			—			9,020			265			—			265			829			—			829
Gains on sales of debt securities		4,440			—			4,440			1,133			—			1,133			856			—			856
All other income (loss)		(6,735	)		115			(6,620	)		(711	)		219			(492	)		(2,567	)		21			(2,546	)

Total noninterest income		5,830			2,149			7,979			2,851			(2,031	)		820			(1,313	)		700			(613	)

Total revenue, net of interest expense		(1,092	)		11,399			10,307			(5,168	)		6,670			1,502			(2,872	)		2,926			54

Provision for credit losses		(3,431	)		11,399			7,968			(3,769	)		6,670			2,901			(1,523	)		2,926			1,403
Merger and restructuring charges		2,721			—			2,721			935			—			935			533			—			533
All other noninterest expense		1,997			—			1,997			189			—			189			560			—			560

Loss before income taxes		(2,379	)		—			(2,379	)		(2,523	)		—			(2,523	)		(2,442	)		—			(2,442	)
Income tax benefit⁽³⁾		(2,857	)		—			(2,857	)		(1,283	)		—			(1,283	)		(895	)		—			(895	)

Net income (loss)	$	478		$	—		$	478		$	(1,240	)	$	—		$	(1,240	)	$	(1,547	)	$	—		$	(1,547	)


Balance sheet
Average - total loans and leases	$	155,561		$	98,453		$	254,014		$	135,789		$	104,401		$	240,190		$	146,185		$	91,705		$	237,890
Period end - total loans and leases		152,944			89,715			242,659			136,163			100,960			237,123			152,944			89,715			242,659

	Third Quarter 2009									Second Quarter 2009									First Quarter 2009
	Reported Basis ⁽¹⁾			Securitization Offset⁽²⁾			As Adjusted			Reported Basis ⁽¹⁾			Securitization Offset⁽²⁾			As Adjusted			Reported Basis ⁽¹⁾			Securitization Offset⁽²⁾			As Adjusted
Net interest income⁽³⁾	$	(1,815	)	$	2,275		$	460		$	(1,626	)	$	2,358		$	732		$	(1,922	)	$	2,391		$	469
Noninterest income:
Card income (loss)		(720	)		1,007			287			(278	)		592			314			534			(244	)		290
Equity investment income		886			—			886			5,979			—			5,979			1,326			—			1,326
Gains on sales of debt securities		1,441			—			1,441			672			—			672			1,471			—			1,471
All other income (loss)		(2,371	)		26			(2,345	)		(4,337	)		33			(4,304	)		2,540			35			2,575

Total noninterest income		(764	)		1,033			269			2,036			625			2,661			5,871			(209	)		5,662

Total revenue, net of interest expense		(2,579	)		3,308			729			410			2,983			3,393			3,949			2,182			6,131

Provision for credit losses		(1,221	)		3,308			2,087			(10	)		2,983			2,973			(677	)		2,182			1,505
Merger and restructuring charges		594			—			594			829			—			829			765			—			765
All other noninterest expense		611			—			611			593			—			593			233			—			233

Income (loss) before income taxes		(2,563	)		—			(2,563	)		(1,002	)		—			(1,002	)		3,628			—			3,628
Income tax expense (benefit)⁽³⁾		(963	)		—			(963	)		(1,740	)		—			(1,740	)		741			—			741

Net income (loss)	$	(1,600	)	$	—		$	(1,600	)	$	738		$	—		$	738		$	2,887		$	—		$	2,887


Balance sheet
Average - total loans and leases	$	147,666		$	97,520		$	245,186		$	159,144		$	102,046		$	261,190		$	169,593		$	102,672		$	272,265
Period end - total loans and leases		145,856			94,328			240,184			153,010			100,438			253,448			165,535			105,392			270,927

	Fourth Quarter 2008
	Reported Basis ⁽¹⁾			Securitization Offset⁽²⁾			As Adjusted
Net interest income⁽³⁾	$	(1,875	)	$	2,299		$	424
Noninterest income:
Card income (loss)		368			(482	)		(114	)
Equity investment loss		(388	)		—			(388	)
Gains on sales of debt securities		783			—			783
All other income (loss)		(331	)		40			(291	)

Total noninterest income		432			(442	)		(10	)

Total revenue, net of interest expense		(1,443	)		1,857			414

Provision for credit losses		(613	)		1,857			1,244
Merger and restructuring charges		306			—			306
All other noninterest expense		142			—			142

Loss before income taxes		(1,278	)		—			(1,278	)
Income tax benefit⁽³⁾		(748	)		—			(748	)

Net loss	$	(530	)	$	—		$	(530	)


Balance sheet
Average - total loans and leases	$	145,241		$	99,116		$	244,357
Period end - total loans and leases	$	136,163			100,960			237,123

(1)

Provision for credit losses represents provision for credit losses in All Other combined with the Global Card Services securitization offset.

(2)

The securitization offset on net interest income is on a funds transfer pricing methodology consistent with the way funding costs are allocated to the businesses.

(3)

Fully taxable-equivalent basis

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		45

Appendix: Selected Slides from the

Fourth Quarter 2009 Earnings Release Presentation

Information for periods beginning July 1, 2008 includes the Countrywide acquisition. Information for periods beginning January 1, 2009 includes the

Merrill Lynch acquisition. Prior periods have not been restated.


This information is preliminary and based on company data available at the time of the presentation.		46

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Home Loan Modification Efforts

Through HAMP (Home Affordable Modification Program) and non-HAMP government programs in 2009, Bank of America provided home ownership retention opportunities to more than 450,000 customers. In addition, 230,000 modifications were completed in 2008.

Bank of America has dedicated 15,000 associates to assisting customers with home ownership retention

Approximately 260,000 modifications completed in 2009 through rate modifications, rate extensions, payment extensions as well as principal reductions and forebearance.

Trial modifications of more than 200,000 loans started since initiation of MHA program

MHA qualifications reduce customer eligibility as requirements include owner occupancy, employment and debt to income ratio of 31%.

More than 60% of trial modifications have made 3 or more consecutive payments

More than 20,000 have completed the underwriting phase and are in final steps of a completed modification

Nearly 3,200 have converted to a completed modification

Still awaiting verification documents from customers to complete underwriting

Outreach efforts include phone, mail and door-to-door contacts to encourage customers to complete the modification program

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Key Capital Markets Risk Exposures – 4Q09

Super Senior CDO Related

Total exposure reduced $1.3 billion to $3.6 billion at 12/31/09

Nearly 40% of exposure is hedged

4Q09 markdown of $42 million excluding monoline insurance

Credit Default Swaps with Monoline Financial Guarantors

Super senior CDO net MTM of receivable $960 million

4Q09 writedowns of $123 million

Other positions net MTM of receivable $4.1 billion

4Q09 valuation gain of $55 million

Leveraged Loans

Funded legacy commitments carried at $1.7 billion or 37% of gross value

Exposure decreased 29% from 3Q09

4Q09 markdown of $61 million

Commercial Mortgage

Total commitments carried at $5.3 billion with $5.1 billion funded

$4.2 billion of acquisition related large floating rate loan exposure at approximately 62% of gross value

4Q09 markdown of $632 million primarily floating rate positions

4Q09 writeoff of $214 million on equity positions from acquisition related exposures

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Asset Quality

Although global economies remain weak, stabilizing factors continue and net losses declined in almost every portfolio

Consumer credit loss reductions reflected flow through of improved early stage delinquencies earlier in the year primarily in the unsecured lending portfolios with some stabilization in consumer real estate

The impacts of the weak economy on commercial asset quality moderated somewhat in 4Q09

Card managed losses declined and look to improve in 2010, but are expected to remain elevated

Managed losses decreased $1.6 billion or 12% from 3Q09 to $11.3 billion

Held net charge-offs decreased $1.2 billion, or 13% to $8.4 billion from 3Q09

Although reserve additions continued, the addition was $1.7 billion in 4Q09 versus $2.1 billion in 3Q09

– Reserve additions (in billions)

– Reserve reductions (in billions)

o $ .8—change to 12 month reserve coverage in card

o $ .5—consumer lending

o $ .6—commercial real estate

o $ .3—small business

o $ .6—maturing card securitizations

o $ .3—consumer credit card

o $ .5—purchased impaired CFC loans

o $ .1—dealer finance

o $ .3—consumer real estate

30+ past due performing delinquencies increased as a result of repurchasing $9.7 billion of government guaranteed loans, of which $9.4 billion were 30+ delinquent – Excluding the repurchases, consumer 30+ past due performing delinquencies declined $710 million or 3% from 3Q09

Nonperforming loans rose, but at a declining rate for the third consecutive quarter

Reservable criticized exposure declined $1.4 billion marking the first decline since 4Q06

($ in millions) 4Q09 3Q09 Change from 3Q09

Consumer Commercial Total Consumer Commercial Total Consumer Commercial Total

Loan allowance $ 27,785 $ 9,415 $ 37,200 $ 26,722 $ 9,110 $ 35,832 $ 1,063 $ 305 $ 1,368

Loans and leases 1 577,564 317,628 895,192 578,256 329,813 908,069 (692) (12,185) (12,877)

Allowance to loans ratio 4.81% 2.96% 4.16% 4.62% 2.76% 3.95% 0.19% 0.20% 0.21%

Net charge-offs $ 6,150 $ 2,271 $ 8,421 $ 6,992 $ 2,632 $ 9,624 $ (842) $ (361) $ (1,203)

Net charge-off ratio 4.24% 2.78% 3.71% 4.73% 3.09% 4.13% -0.49% -0.31% -0.42%

Nonperforming loans $ 20,839 $ 12,703 $ 33,542 $ 19,654 $ 12,260 $ 31,914 $ 1,185 $ 443 $ 1,628

Allowance to NPLs 133% 74% 111% 136% 74% 112% -3% 0% -1%

Excludes loans measured at fair value

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Provision Expense Highlights 1

“Core” 2 consumer reserving in 4Q09 driven by increase in reserve coverage in consumer credit card to 12 months as well as reserves for maturing securitizations.

Driven by additional write-downs on Countrywide purchased impaired loans reflecting further deterioration as well as reassessments of modification benefits

“Core” commercial reserve addition reflects continued deterioration in non-homebuilder commercial real estate properties

($ in billions)

4Q09 3Q09 Inc. (Dec.)

Consumer

Net charge-offs $ 6.1 $ 7.0 $ (0.8)

“Core” reserve addition 0.8 0.1 0.7

Purchased impaired loan reserve addition 0.5 1.4 (0.9)

Consumer provision expense 7.4 8.5 (1.1)

Commercial

Small business

Net charge-offs $ 0.7 $ 0.8 $ (0.1)

“Core” reserve reduction (0.3) (0.1) (0.1)

Small business provision expense 0.4 0.7 (0.2)

Commercial and commercial real estate

Net charge-offs $ 1.6 $ 1.8 $ (0.2)

“Core” reserve addition 0.6 0.7 (0.1)

Commercial and CRE provision expense 2.2 2.6 (0.4)

Total Commercial provision expense 2.6 3.2 (0.6)

Reserve for unfunded loans 0.1 0.0 0.1

Total Corporation

Net charge-offs 8.4 9.6 (1.2)

Reserve addition, net 1.7 2.1 (0.4)

Total provision expense $ 10.1 $ 11.7 $ (1.6)

Securitized losses 2.9 3.3 (0.4)

Total managed credit costs $ 13.0 $ 15.0 $ (2.0)

Amounts may not total due to rounding

“Core” represents loans excluding purchased impaired loans

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Consumer Credit Card Asset Quality

Consumer Credit Card

4Q09

($ in mil, loans in bil) 4Q09 vs. 3Q09 3Q09 2Q09 1Q09 4Q08

Loans EOP $ 160.8 $ (3.7) $ 164.5 $ 1698. $ 173. 4 $ 182.2

Net losses, managed 4,867 (610) 5,477 5,047 3,794 3,263

30+ past due 11,560 (541) 12,101 12,969 13,611 12,168

Net losses % 11.9% (102) bps 12.9% 11.7% 8.6% 7.2%

30+ past due % 7.2% (16) bps 7.4% 7.6% 7.9% 6.7%

Consumer Credit Card – Managed Basis 1

Ending loans of $160.8 billion declined $3.7 billion or 2% from 3Q09 from charge-offs and higher payment rates partially offset by seasonal retail volume

Net losses decreased $610 million to $4.9 billion and the loss ratio declined 102 basis points to 11.88%

U.S. credit card portfolio refreshed FICO of 693 while originated average FICO was 773 in 4Q09

California and Florida represent 24% of Domestic Card balances but 34% of managed losses

30+ delinquencies decreased $541 million, or 16 basis points to 7.19% of loans

90+ delinquencies increased $14 million, or 10 basis point to 3.86% of loans

Credit Card includes U.S., Europe and Canada consumer credit card EOP = end of period

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Residential Mortgage Asset Quality 1

Residential Mortgage

4Q09

($ in mil, loans in bil) 4Q09 vs. 3Q09 3Q09 2Q09 1Q09 4Q08

Loans EOP $ 242.1 $ 3.2 $ 238.9 $ 246.0 $ 261.6 $ 248.1

Net charge-offs 1,233 (14) 1,247 1,085 785 466

30+ past due 19,360 9,905 9,455 7,533 7,926 7,927

Net charge-off % 2.1% 2 bps 2.1% 1.7% 1.2% 0.7%

30+ past due % 8.0% 404 bps 4.0% 3.1% 3.0% 3.2%

4Q09 net charge -offs include $110 million impact for refinements in the valuation processes. 3Q09 net charge -offs include $152 million associated with a revision of our estimate of the impact the REO process has on net realizable value.

4Q09 30+ delinquencies include $9.4 billion in 4Q09 repurchases of delinquent government insured loans from securitizations. 3Q09 included $1.8 billion of repurchases. Excluding these repurchases 30+ delinquencies reflect continued stabilization.

Residential Mortgage

Net charge-offs decreased $14 million to $1.2 billion but the loss ratio increased 2 basis points to 2.07%

Loans with >90% RLTV represent 37% of the portfolio reflecting home price deterioration

CA and FL represented 43% of the portfolio but 54% of losses

CRA portfolio still drove a disproportionate share of losses (6% of loans with 20% of losses)

Allowance of $4.6 billion increased $146 million and covers 1.90% of loans

65% of the TDRs completed in the first nine months of 2009 are either in performing status or if not, are up-to-date on payments under the modified terms but still classified as non-performing until they meet the criteria for being returned to performing status

Nonperforming assets increased $1.2 billion from 3Q09 to $17.7 billion

61% of NPAs are greater than 180 days past due and are carried at appraised value

Nonperforming TDRs increased $13 million and comprise 17% of residential mortgage NPAs

About 59% of the 4Q09 nonperforming residential mortgage modifications were performing at time of reclassification into TDR

30+ performing past dues increased $9.9 billion compared to 3Q09 and the ratio rose 404 bps to 8.00% of loans driven by repurchases of delinquent government insured or guaranteed loans from securitizations

Excluding repurchases of performing government guaranteed loans in the past two quarters, delinquencies have been relatively stable

Discontinued Real Estate is not included EOP = end of period

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Home Equity Asset Quality 1

Home Equity

4Q09

($ in mil, loans in bil) 4Q09 vs. 3Q09 3Q09 2Q09 1Q09 4Q08

Loans EOP $ 149.1 $ (2.9) $152. 0 $ 155.1 $157.6 $152.5

Net charge-offs 1,560 (410) 1,970 1,839 1,681 1,113

30+ past due 2,185 — 2,185 2,001 2,647 2,661

Net charge-off % 4.1% (99) bps 5.1% 4.7% 4.3% 2.9%

30+ past due % 1.5% 3 bps 1.4% 1.3% 1.7% 1.8%

3Q09 net charge -offs included acceleration of $223 million due to an adjustment for the protracted nature of collections under some insurance contracts. Excluding this charge net charge -offs declined $187 million and the 4Q09 loss rate would have declined 41 bps.

Home Equity

Net charge-offs decreased $410 million to $1.6 billion and the loss ratio declined 99 basis points to 4.11%

4Q09 reflects continued stabilization in second lien loans

Loans with >90% RCLTV2 represent 44% of portfolio reflecting continued home price pressure

CA and FL represent 41% of the portfolio but 58% of losses

Allowance of $10.2 billion covers 6.81% of loans (5.29% excluding purchased impaired loans)

– Increase in the 4th quarter was mainly due to a reserve increase in the purchased impaired portfolio

83% of the TDRs completed in the first nine months of 2009 are either in performing status or if not, are up-to-date on payments under the modified terms but still classified as non-performing until they meet the criteria for being returned to performing status

Nonperforming assets increased $46 million from 3Q09 to $3.9 billion and now represent 2.60% of loans and foreclosed properties

20% of NPAs are greater than 180 days past due and are carried at appraised value

Nonperforming TDRs increased $55 million and comprise 44% of home equity NPAs

Approximately 81% of the 4Q09 nonperforming home equity modifications were performing at time of reclassification into TDR

30+ performing delinquencies stayed flat at $2.2 billion, but increased 3 bps to 1.47 % compared to 3Q09

Discontinued Real Estate is not included

RCLTV = Refreshed combined loan to value

EOP = end of period

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Direct/Indirect

Consumer Lending (Included in Direct/Indirect)

4Q09

($ in mil, loans in bil) 4Q09 vs. 3Q09 3Q09 2Q09 1Q09 4Q08

Loans EOP $ 19.7 $ (2.2) $ 21. 9 $ 24. 2 $ 26.6 $ 28.2

Net charge-offs 1,003 (184) 1,187 1,208 921 746

30+ past due 2,051 (156) 2,207 2,405 2,687 2,449

Net charge-off % 19.0% (127) bps 20.3% 18.9% 13.5% 10.4%

30+ past due % 10.4% 32 bps 10.1% 9.9% 10.1% 8.7%

Direct/Indirect

4Q09

($ in mil, loans in bil) 4Q09 vs. 3Q09 3Q09 2Q09 1Q09 4Q08

Loans EOP $ 97.2 $ (1.2) $ 98.4 $ 99.2 $ 99.7 4$ 83.

Net charge-offs 1,288 (163) 1,451 1,475 1,249 1,054

30+ past due 3,708 (237) 3,945 4,019 4,145 3,980

Net charge-off % 5.2% (59) bps 5.8% 5.9% 5.0% 5.0%

30+ past due % 3.8% (20) bps 4.0% 4.1% 4.2% 4.8%

Consumer Lending (part of Direct/Indirect)

Direct/Indirect Loans

Consumer Lending portfolio of $19.7 billion had reduced losses of $184 million with a 4Q09 loss rate of 19%

Allowance of $3.3 billion covers 16.68% of loans

30+ delinquencies declined $156 million, but increased 32 basis points to 10.39% due to lower portfolio balance

90+ delinquencies declined $20 million, but increased 47 basis points to 5.69% due to lower portfolio balance

Net charge-offs decreased $163 million to $1.3 billion driven by a decrease in Consumer Lending; the loss ratio decreased 59 bps to 5.17%

Allowance of $4.2 billion covers 4.35% of loans

Dealer Finance portfolio1of $41.6 billion had an increase of 22 basis points in loss rate to 2.07%, reflecting normal seasonality

Dealer Finance portfolio1 30+ delinquencies decreased $22 million, or 7 basis points to 2.66% of loans

Losses in the auto portfolio were relatively flat to 3Q09 reflecting stabilization

Includes auto and marine/recreational vehicle originations, and auto purchased loan portfolios EOP = end of period

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Countrywide Purchased Impaired Loan Portfolio 1

($ in millions) Total CFC Residential Home Discontinued

Impaired Mortgage Equity Real Estate

Charge-offs

3Q08 1,517 177 648 692

4Q08 1,643 199 722 722

1Q09 2,090 261 890 939

2Q09 2,275 305 964 1,006

3Q09 1,806 243 866 697

4Q09 1,357 138 757 462

Total recurring 10,688 1,323 4,847 4,518

Other adjustments

3Q08 Conforming accounting adjustments 464 59 120 285

3Q09 REO net realizable value adj. 379 106 — 273

4Q09 Adjust pool level charge-offs (496) (134) (3) (359)

Total Other 347 31 117 199

Total charge-offs 11,035 1,354 4,964 4,717

Carrying Value 2 12/31/09 2 $ 38,030

Remaining purchase accounting mark (487)

Additional allowance 3 (3,875)

Book value net of allowance $ 33,668

4Q09 includes an increase in the allowance through provision of $537 million compared to $1.3 billion in 3Q09

Recurring charge-offs peaked and are trending down

$487 million in remaining purchase accounting marks and the additional reserves of $3.9 billion leaves a total of $4.4 billion for purchased impaired loans from the Countrywide acquisition

Loss estimates increased due to further deterioration as well as reassessing modification benefits to reflect experience partially offset by improvements in the home price forecast

Remaining mark and allowance of $4.4 billion coupled with the charge-offs reflect a 30% reduction on the original unpaid principal balance (UPB)

Loans with $31 billion of UPB in the purchased impaired portfolio have experienced no charge-offs and over $25 billion of this amount is current

Of the roughly $6 billion loans that are noncurrent, but have had no charge-offs, approximately one third are early stage delinquent

The loans that have experienced charge-offs are carried at net realizable value of approximately $7 billion

Charge-offs shown do not flow through GAAP charge-offs as they were considered as part of the original purchase accounting and are broken out by original product classifications even if loans were modified into another product type

The original credit mark taken on the acquired Countrywide purchased impaired loans was $11.9 billion and has been reduced by charge-offs and TDRs removed from the impaired portfolio

Additional allowance was established through provision expense in 4Q08 of $750 million, 1Q09 of $853 million, 2Q09 $621 million , $1.3 billion in 3Q09 and $537 million in 4Q09

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Consumer Asset Quality Key Indicators

($ in millions) Residential Mortgage Home Equity Discontinued Real Estate

4Q09 3Q09 4Q09 3Q09 4Q09 3Q09

Excluding Excluding Excluding Excluding Excluding Excluding

Purchased Purchased Purchased Purchased Purchased Purchased

Impaired Loan As Impaired Loan Impaired Loan As Impaired Loan As Reported Impaired Loan As Impaired Loan

As Reported Portfolio 1 Reported Portfolio 1 As Reported Portfolio 1 Reported Portfolio 1 Portfolio 1 Portfolio 1 Reported

Loans EOP $ 242,129 $231,052 $ 238,921 $ 227,742 $ 149,126 $ 135,912 $ 152,039 $138,427 $ 14,854 $ 1,604 $ 15,460 $ 1,570

Loans Avg 236,883 225,758 241,924 231,214 150,704 137,295 153,269 139,698 15,152 1,685 16,570 1,902

Net losses $ 1,233 $1,233 $ 1,247 $ 1,247 $ 1,560 $ 1,560 $ 1,970 $1,970 $ 14 $ 14 $ 37 $ 37

% of avg loans 2 2.07 % 2.17 % 2.05% 2.14% 4.11 % 4.51 % 5.10% 5.60% 0.38 % 3.30 % 0.89% 7.72%

Allowance for loan losses $ 4,607 $4,605 $ 4,461 $ 4,459 $ 10,160 $ 7,189 $ 9,719 $ 7,085 $ 989 $ 87 $ 1,016 $ 116

% of Loans 1.90% 1.99 % 1.87% 1.96 % 6.81 % 5.29 % 6.39% 5.12% 6.66% 5.42 % 6.57% 7.39%

Avg. refreshed (C)LTV 3 84 86 89 95 93 92

90%+ refreshed (C)LTV 3 37 % 38% 44 % 50 % 25 % 23 %

Avg. refreshed FICO 706 719 714 712 625 631

% below 620 FICO 16 % 14% 13 % 12 % 39 % 34 %

Excludes the purchased impaired loan portfolio acquired from Countrywide

Adjusting for the $110 million impact for refinements in valuation processes reported 4Q09 residential mortgage loss rate would have been 1.88%. Adjusting for the $152 million impact of revising our estimate of the impact the REO process has on net realizable value, the 3Q09 reported loss rate in residential mortgage would have been 1.80%. Adjusting for the acceleration of $223 million due to an adjustment for the protracted nature of collections under some insurance contracts, reported 3Q09 home equity losses would been 4.52%

Loan to value (LTV) calculations apply to the residential mortgage and discontinued real estate portfolio. Combined loan to value (CLTV) calculations apply to the

home equity portfolio

EOP = end of period

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Consumer Asset Quality Key Indicators (cont’d)

($ in millions) Total Managed

Credit Card Other 1 Consumer

Held Managed

4Q09 3Q09 4Q09 3Q09 4Q09 3Q09 4Q09 3Q09

Loans EOP $ 71,109 $ 70,206 $160,824 $164,534 $100,346 $101,630 $667,279 $672,584

Loans Avg 70,893 70,940 162,598 168,460 102,115 103,343 667,452 683,566

Net losses $ 1,941 $ 2,169 $ 4,867 $ 5,477 $ 1,402 $ 1,569 $ 9,076 $ 10,300

% of avg loans 10.86% 12.13% 11.88% 12.90% 5.45% 6.02% 5.40% 5.98%

Allowance for loan losses $ 7,598 $ 6,510 $ 4,431 $ 5,016 $ 27,785 $ 26,722

% of Loans 10.68% 9.27% 4.42% 4.93% 4.81% 2 4.62% 2

The average refreshed FICO for the U.S. Credit Card portfolio was 693 at 4Q09 compared to 692 at 3Q09

The percentage below 620 FICO was 16% at 4Q09 vs. 17% in 3Q09

Other primarily consists of the Consumer Lending and Dealer Financial Services portfolios

Calculated as a percentage of held loans

EOP = end of period

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Commercial Asset Quality Key Indicators 1

($ in millions) Commercial Lease

Commercial 2 Commercial Real Estate Small Business Financing Total Commercial

4Q09 3Q09 4Q09 3Q09 4Q09 3Q09 4Q09 3Q09 4Q09 3Q09

Loans EOP $ 208,456 $ 217,303 $ 69,447 $ 72,662 $ 17,526 $ 17,938 $ 22,199 $ 21,910 $ 317,628 $ 329,813

Loans Avg $ 213,715 223,068 71,260 74,170 17,884 18,095 21,769 22,068 324,628 337,401

Net charge-offs $ 799 $ 922 $ 745 $ 873 $ 684 $ 796 $ 43 $ 41 $ 2,271 $ 2,632

% of avg loans 1.48 % 1.64 % 4.15 % 4.67 % 15.16 % 17.45 % 0.79 % 0.72 % 2.78 % 3.09 %

90+ DPD Performing 3 $ 280 $ 254 $ 80 $ 196 $ 624 $ 700 $ 32 $ 25 $ 1,016 $ 1,175

% of Loans 0.13 % 0.12 % 0.11 % 0.27 % 3.56 % 3.90 % 0.15 % 0.11 % 0.32 % 0.36 %

Nonperforming loans 3 $ 5,102 $ 4,980 $ 7,286 $ 6,943 $ 200 $ 167 $ 115 $ 170 $ 12,703 $ 12,260

% of Loans 2.45 % 2.29 % 10.49 % 9.55 % 1.14 % 0.93 % 0.52 % 0.78 % 4.00 % 3.72 %

Allowance for loan losses $ 3,141 $ 3,153 $ 3,567 $ 3,007 $ 2,416 $ 2,695 $ 291 $ 255 $ 9,415 $ 9,110

% of Loans 1.51 % 1.45 % 5.14 % 4.14 % 13.79 % 15.02 % 1.31 % 1.16 % 2.96 % 2.76 %

Reservable Criticized

Utilized Exposure 3,4 $ 30,865 $ 33,561 $ 23,804 $ 22,910 $ 1,789 $ 1,651 $ 2,229 $ 1,937 $ 58,687 $ 60,059

% of Total Exposure 11.06 % 11.62 % 32.13 % 29.49 % 10.18 % 9.18 % 10.04 % 8.84 % 14.94 % 14.78 %

Does not include certain commercial loans measured at fair value under the fair value option

Includes commercial domestic and commercial foreign

Excludes the Merrill Lynch purchased impaired loan portfolio

Excludes derivatives, foreclosed property, assets held for sale and FVO loans

EOP = end of period

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Commercial Real Estate – Balances & Losses

Commercial Real Estate loans and lease balances are $69.5 billion, down $3.2 billion from 3Q09.

Homebuilder balances declined by $1.2 billion in 4Q09.

Non-Homebuilder portfolio is well diversified with no single property type in excess of 20% of balances.

Balance decline spread across all domestic regions.

Losses declined $128 million in 4Q09

Homebuilder losses declined by $97 million

Non-Homebuilder losses down by $31 million

Florida accounted for 53% of the decline in losses, California losses increased 12%.

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Commercial Real Estate – Credit Indicators

Reservable Criticized balances increased $894 million in 4Q09 vs. $1.7 billion in 3Q09.

Homebuilder reported a decline of $1 billion, driven by lower utilization levels.

Non-Homebuilder increased by $1.9 billion: Office, Multifamily Rentals, and Hotels accounted for 80% of Non-Homebuilder growth.

Nonperforming Assets increased $506 million in 4Q09 vs. $435 million in 3Q09.

Homebuilder reported a decline of $250 million.

Non-Homebuilder increased by $757 million: Retail, Commercial Land, Multifamily Rentals, and Multi-use accounted for 90% of Non-Homebuilder growth.

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Net Interest Income Analysis

Core net interest income increased $140 million on

managed basis

Drivers include lower credit related costs, higher deposit balances and higher discretionary balances

Offset by lower loan balances

Market-based NII declined $90 million due to spread compression and continued reductions in asset levels

Managed core average earning assets decreased $10 billion

– Commercial loans declined $14 billion – Consumer loans declined $16 billion – Securities increased $15 billion

Market related earning assets, on average, increased 5%

Managed core net interest yield increased 7 bps to 3.74% on positioning and improved interest reversals

($ in millions)

4Q09 3Q09 Change

Net interest income (FTE)

Reported $ 11,896 $ 11,753 $ 143

Impact of securitizations 2,474 2,567 (93)

Managed NII 14,370 14,320 50

Market-based (1,305) (1,395) 90

Managed Core NII $ 13,065 $ 12,925 $ 140

Reported Core NII 10,591 10,358 233

Average earning assets

Reported $ 1,807,898 $ 1,790,000 $ 17,898

Impact of securitizations1 75,337 81,703 (6,366)

Managed assets 1,883,235 1,871,703 11,532

Market-based (490,719) (468,999) (21,720)

Managed Core $ 1,392,516 $ 1,402,704 $ (10,188)

Reported Core 1,317,179 1,321,001 (3,822)

Net interest yields

Reported 2.62% 2.61% 1 bps

Impact of securitizations 13.03 12.47 56 bps

Managed assets 3.03 3.04 (1) bps

Market-based 1.06 1.18 (12) bps

Managed Core 3.74 3.67 7 bps

Reported Core 3.21 3.13 8 bps

Represents average securitized loans less accrued interest receivable and certain securitized bonds retained

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Capital Results

Tier 1 capital declined as a result of $45 billion TARP repayment, partially offset by issuance of $19 billion of common equivalent securities

Tier 1 common increased $8 billion from issuance of $19 billion of common equivalent securities offset by net loss after preferred dividends and higher disallowed deferred tax assets primarily as a result of TARP repayment

lowering regulatory capital

Tier 1 capital ratio equals Tier 1 capital including common equivalent securities divided by risk-weighted assets.

Tier 1 common equity ratio equals Tier 1 capital including common equivalent securities excluding preferred stock, trust preferred securities, hybrid securities and minority interest divided by risk-weighted assets.

Tangible common equity ratio equals common shareholders’ equity including common equivalent securities less goodwill and intangible assets (excluding mortgage service rights) net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities.

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Impact of Adopting SFAS 166 and 167

SFAS 166 and 167 are effective January 1, 2010

Net incremental balance sheet impact expected to be approximately $100 billion

Includes securitized credit card and home equity receivables returning to the balance sheet with

net incremental impact of $72 billion

– Regulatory capital will be reduced by approximately $10 billion, including DTA limitation,

as reserves are established for those securitized receivables

– Majority of receivables are already fully risk weighted for regulatory purposes

Assets from other QSPEs or VIEs returning to the balance sheet expected to be roughly $25 to $30 billion

Best Preliminary

12/31/2009 Impact Estimate

Allowance to Loans 4.2% 60-65 bps

Tier 1 Capital Ratio 10.4% (70-75)

Tier 1 Common Ratio 7.8% (65-70)

Tangible Common Equity 5.6% (45-50)

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Executing Merger Integrations

Merrill Lynch

Countrywide

4Q09 cost savings of $1.1 billion increasing YTD to $3.3 billion (well ahead of original ‘09 estimate)

Retained 94% of high-producing financial

advisors

• Received more than 3,100 referrals from FAs to the commercial bank

• 41% of FAs have sold a banking product to their customers

• Launched the new sales and trading portal to more than 40,000 clients

• Rolled out the Merrill Lynch brand to wealth management clients

2009 Ranking—2nd largest fee producer of global investment banking revenue (Source: Dealogic)

Completed deposit system conversion 3Q09

Completed industry’s most complex mortgage servicing platform conversion to date in 4Q09

Cost savings of $1.3 billion pre-tax achieved in 2009 and well ahead of $1.0 billion merger announcement target

Now have full first mortgage capabilities in banking centers

All done while originating home loans of over $378 billion in 2009, improving estimated market share to roughly 23%

Helping customers avoid foreclosure with approximately 260,000 completed loan modifications in 2009, on top of 230,000 done in 2008 (excluding Merrill Lynch). In addition, just over 200,000 Bank of America customers are already in a trial period modification under the Government’s Making Home Affordable program at end of 2009.

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Summary

Although global economies remain weak, encouraging credit trends continue to emerge

Begin 2010 with no government preferred ownership and a new management team in place

Capital levels and liquidity are very strong

Expect economic recovery to continue but on slow path

Global growth expectations of just more than 4 percent

US GDP expectations around 3 percent

Unemployment levels expected to remain elevated

Housing market expected to maintain stability

Capital markets expected to show good steady volume

Loan demand expected to continue weak trends at least through first half 2010

Regulatory climate exhibiting pressure on revenue

Bank of America remains well-positioned to combat the headwinds and win in the marketplace