Supplemental Information

EX-99.3 4 dex993.htm SUPPLEMENTAL INFORMATION Supplemental Information

Exhibit 99.3

LOGO

Supplemental Information

Second Quarter 2010

This information is preliminary and based on company data available at the time of the earnings 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		5,6
Capital Management		7
Core Net Interest Income		8
Quarterly Average Balances and Interest Rates		9
Quarterly Average Balances and Interest Rates - Isolating Hedge Income/Expense		10
Year-to-Date Average Balances and Interest Rates		11
Year-to-Date Average Balances and Interest Rates - Isolating Hedge Income/Expense		12
Debt Securities and Available-for-Sale Marketable Equity Securities		13
Quarterly Results by Business Segment		14
Year-to-Date Results by Business Segment		15
Deposits
Total Segment Results		16
Key Indicators		17
Global Card Services
Total Segment Results		18
Key Indicators		19
Home Loans & Insurance
Total Segment Results		20
Key Indicators		21
Global Commercial Banking
Total Segment Results		22
Key Indicators		23
Global Banking & Markets
Total Segment Results		24
Key Indicators		25
Investment Banking Product Rankings		26
Super Senior Collateralized Debt Obligation Exposure		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
Select Western European Countries		38
Selected Emerging Markets		39
Nonperforming Loans, Leases and Foreclosed Properties		40
Nonperforming Loans, Leases and Foreclosed Properties Activity		41
Quarterly Net Charge-offs/Losses and Net Charge-off/Loss Ratios		42
Year-to-Date Net Charge-offs/Losses and Net Charge-off/Loss Ratios		43
Allocation of the Allowance for Credit Losses by Product Type		44

Exhibit A: Non-GAAP Reconciliations		45,46,47

Appendix: Selected Slides from the Second Quarter 2010 Earnings Release Presentation		48


		1

Bank of America Corporation and Subsidiaries

Consolidated Financial Highlights

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


	Six Months Ended June 30						Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
	2010			2009			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
Income statement
Net interest income	$	26,649		$	24,127		$	12,900		$	13,749		$	11,559		$	11,423		$	11,630
Noninterest income		34,473			44,405			16,253			18,220			13,517			14,612			21,144
Total revenue, net of interest expense		61,122			68,532			29,153			31,969			25,076			26,035			32,774
Provision for credit losses		17,910			26,755			8,105			9,805			10,110			11,705			13,375
Noninterest expense, before merger and restructuring charges		33,999			32,428			16,745			17,254			15,852			15,712			16,191
Merger and restructuring charges		1,029			1,594			508			521			533			594			829
Income tax expense (benefit)		1,879			284			672			1,207			(1,225	)		(975	)		(845	)
Net income (loss)		6,305			7,471			3,123			3,182			(194	)		(1,001	)		3,224
Preferred stock dividends and accretion ⁽¹⁾		688			2,238			340			348			5,002			1,240			805
Net income (loss) applicable to common shareholders		5,617			5,233			2,783			2,834			(5,196	)		(2,241	)		2,419
Diluted earnings (loss) per common share		0.55			0.75			0.27			0.28			(0.60	)		(0.26	)		0.33
Average diluted common shares issued and outstanding ⁽²⁾		10,020,926			6,836,972			10,029,776			10,005,254			8,634,565			8,633,834			7,269,518
Dividends paid per common share ⁽²⁾	$	0.02		$	0.02		$	0.01		$	0.01		$	0.01		$	0.01		$	0.01

Performance ratios
Return on average assets		0.51	%		0.61	%		0.50	%		0.51	%		n/m			n/m			0.53		%
Return on average common shareholders’ equity		5.45			6.31			5.18			5.73			n/m			n/m			5.59
Return on average tangible common shareholders’ equity ⁽³⁾		9.48			20.47			9.19			9.79			n/m			n/m			12.68
Return on average tangible shareholders’ equity ⁽³⁾		9.26			10.59			8.98			9.55			n/m			n/m			8.86
At period end
Book value per share of common stock ⁽⁴⁾	$	21.45		$	22.71		$	21.45		$	21.12		$	21.48		$	22.99		$	22.71
Tangible book value per share of common stock ⁽³⁾		12.14			11.66			12.14			11.70			11.94			12.00			11.66
Market price per share of common stock:
Closing price	$	14.37		$	13.20		$	14.37		$	17.85		$	15.06		$	16.92		$	13.20
High closing price for the period		19.48			14.33			19.48			18.04			18.59			17.98			14.17
Low closing price for the period		14.37			3.14			14.37			14.45			14.58			11.84			7.05
Market capitalization		144,174			114,199			144,174			179,071			130,273			146,363			114,199

Number of banking centers - domestic		5,900			6,109			5,900			5,939			6,011			6,008			6,109
Number of branded ATMs - domestic		18,078			18,426			18,078			18,135			18,262			18,254			18,426
Full-time equivalent employees		283,224			282,973			283,224			283,320			283,055			282,457			282,973

(1)

Fourth quarter 2009 includes $4.0 billion of accelerated accretion from redemption of preferred stock issued to the U.S. Treasury.

(2)

Due to a net loss applicable to common shareholders for the fourth and third quarters of 2009, no dilutive potential common shares were included in the calculations of diluted earnings per share and average diluted common shares because they were antidilutive.

(3)

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 Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on page 45. We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation.

(4)

Fourth quarter 2009 book value gives effect to the automatic conversion of common equivalent shares to common shares which occurred during the first quarter of 2010.

n/m

= not meaningful

Certain

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


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)


Fully taxable-equivalent basis data ⁽¹⁾
	Six Months Ended June 30						Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
	2010			2009			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
Net interest income	$	27,267		$	24,761		$	13,197		$	14,070		$	11,896		$	11,753		$	11,942
Total revenue, net of interest expense		61,740			69,166			29,450			32,290			25,413			26,365			33,086
Net interest yield		2.85	%		2.67	%		2.77	%		2.93	%		2.62	%		2.61	%		2.64	%
Efficiency ratio		56.73			49.19			58.58			55.05			64.47			61.84			51.44

(1)

Fully taxable-equivalent basis is a non-GAAP measure. Fully taxable-equivalent basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on page 45).

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


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)


	Six Months Ended June 30						Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
	2010			2009			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
Interest income
Interest and fees on loans and leases	$	26,362		$	25,678		$	12,887		$	13,475		$	11,405		$	11,620		$	12,329
Interest on debt securities		6,033			7,113			2,917			3,116			2,859			2,975			3,283
Federal funds sold and securities borrowed or purchased under agreements to resell		905			1,845			457			448			327			722			690
Trading account assets		3,551			4,380			1,808			1,743			1,721			1,843			1,952
Other interest income		2,159			2,732			1,062			1,097			1,333			1,363			1,338

Total interest income		39,010			41,748			19,131			19,879			17,645			18,523			19,592

Interest expense
Deposits		2,153			4,625			1,031			1,122			1,472			1,710			2,082
Short-term borrowings		1,709			3,617			891			818			658			1,237			1,396
Trading account liabilities		1,387			1,029			727			660			591			455			450
Long-term debt		7,112			8,350			3,582			3,530			3,365			3,698			4,034

Total interest expense		12,361			17,621			6,231			6,130			6,086			7,100			7,962

Net interest income		26,649			24,127			12,900			13,749			11,559			11,423			11,630

Noninterest income
Card income		3,999			5,014			2,023			1,976			1,782			1,557			2,149
Service charges		5,142			5,262			2,576			2,566			2,756			3,020			2,729
Investment and brokerage services		6,019			5,957			2,994			3,025			3,014			2,948			2,994
Investment banking income		2,559			2,701			1,319			1,240			1,596			1,254			1,646
Equity investment income		3,391			7,145			2,766			625			2,026			843			5,943
Trading account profits		6,463			7,365			1,227			5,236			1,475			3,395			2,164
Mortgage banking income		2,398			5,841			898			1,500			1,652			1,298			2,527
Insurance income		1,393			1,350			678			715			703			707			662
Gains on sales of debt securities		771			2,130			37			734			1,039			1,554			632
Other income (loss)		3,065			3,037			1,861			1,204			(1,884	)		(1,167	)		724
Other-than-temporary impairment losses on available-for-sale debt securities ⁽¹⁾:
Total other-than-temporary impairment losses		(1,783	)		(1,824	)		(462	)		(1,819	)		(837	)		(847	)		(1,110	)
Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income		1,056			427			336			1,218			195			50			84

Net impairment losses recognized in earnings on available-for-sale debt securities		(727	)		(1,397	)		(126	)		(601	)		(642	)		(797	)		(1,026	)

Total noninterest income		34,473			44,405			16,253			18,220			13,517			14,612			21,144

Total revenue, net of interest expense		61,122			68,532			29,153			31,969			25,076			26,035			32,774

Provision for credit losses		17,910			26,755			8,105			9,805			10,110			11,705			13,375

Noninterest expense
Personnel		17,947			16,558			8,789			9,158			7,357			7,613			7,790
Occupancy		2,354			2,347			1,182			1,172			1,339			1,220			1,219
Equipment		1,226			1,238			613			613			600			617			616
Marketing		982			1,020			495			487			443			470			499
Professional fees		1,161			949			644			517			770			562			544
Amortization of intangibles		885			1,036			439			446			432			510			516
Data processing		1,280			1,269			632			648			639			592			621
Telecommunications		689			672			359			330			387			361			345
Other general operating		7,475			7,339			3,592			3,883			3,885			3,767			4,041
Merger and restructuring charges		1,029			1,594			508			521			533			594			829

Total noninterest expense		35,028			34,022			17,253			17,775			16,385			16,306			17,020

Income (loss) before income taxes		8,184			7,755			3,795			4,389			(1,419	)		(1,976	)		2,379
Income tax expense (benefit)		1,879			284			672			1,207			(1,225	)		(975	)		(845	)

Net income (loss)	$	6,305		$	7,471		$	3,123		$	3,182		$	(194	)	$	(1,001	)	$	3,224

Preferred stock dividends and accretion		688			2,238			340			348			5,002			1,240			805

Net income (loss) applicable to common shareholders	$	5,617		$	5,233		$	2,783		$	2,834		$	(5,196	)	$	(2,241	)	$	2,419


Per common share information
Earnings (loss)	$	0.56		$	0.75		$	0.28		$	0.28		$	(0.60	)	$	(0.26	)	$	0.33
Diluted earnings (loss)		0.55			0.75			0.27			0.28			(0.60	)		(0.26	)		0.33
Dividends paid		0.02			0.02			0.01			0.01			0.01			0.01			0.01

Average common shares issued and outstanding		9,570,166			6,808,262			9,956,773			9,177,468			8,634,565			8,633,834			7,241,515

Average diluted common shares issued and outstanding		10,020,926			6,836,972			10,029,776			10,005,254			8,634,565			8,633,834			7,269,518

(1)

In 2010, the amount of other-than-temporary impairment remaining in other comprehensive income for the individual quarters does not necessarily equal the year-to-date amount as the amount of other-than-temporary impairment remaining in other comprehensive income for the year-to-date period relates to securities on which other-than-temporary impairment was recognized in income in any quarter during the year-to-date period.

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


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)


	June 30 2010			March 31 2010			June 30 2009
Assets
Cash and cash equivalents	$	151,034		$	144,794		$	140,366
Time deposits placed and other short-term investments		20,718			20,256			25,710
Federal funds sold and securities borrowed or purchased under agreements to resell		247,667			197,038			184,685
Trading account assets		197,376			206,018			175,934
Derivative assets		83,331			77,577			101,707
Debt securities:
Available-for-sale		314,765			316,020			257,519
Held-to-maturity, at cost		435			340			9,719
Total debt securities		315,200			316,360			267,238
Loans and leases		956,177			976,042			942,248
Allowance for loan and lease losses		(45,255	)		(46,835	)		(33,785	)
Loans and leases, net of allowance		910,922			929,207			908,463
Premises and equipment, net		14,536			15,147			15,667
Mortgage servicing rights (includes $14,745, $18,842 and $18,535 measured at fair value)		15,041			19,146			18,857
Goodwill		85,801			86,305			86,246
Intangible assets		10,796			11,548			13,245
Loans held-for-sale		38,046			35,386			50,994
Customer and other receivables		86,466			83,636			80,976
Other assets		186,944			196,282			184,306
Total assets	$	2,363,878		$	2,338,700		$	2,254,394

Assets of consolidated VIEs included in total assets above (substantially all pledged as collateral)
Trading account assets	$	10,675		$	11,826
Derivative assets		1,863			4,194
Available-for-sale debt securities		9,493			12,074
Loans and leases		122,700			129,432
Allowance for loan and lease losses		(10,533	)		(11,140	)
Loans and leases, net of allowance		112,167			118,292
Loans held-for-sale		3,416			5,471
All other assets		9,059			9,637
Total assets of consolidated VIEs	$	146,673		$	161,494

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


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

Bank of America Corporation and Subsidiaries

Consolidated Balance Sheet (continued)

(Dollars in millions)


	June 30 2010			March 31 2010			June 30 2009
Liabilities
Deposits in domestic offices:
Noninterest-bearing	$	258,988		$	255,470		$	248,757
Interest-bearing		640,807			643,943			650,725
Deposits in foreign offices:
Noninterest-bearing		5,791			5,614			4,560
Interest-bearing		68,881			71,075			66,700
Total deposits		974,467			976,102			970,742
Federal funds purchased and securities loaned or sold under agreements to repurchase		307,211			270,601			263,639
Trading account liabilities		89,982			82,532			50,000
Derivative liabilities		62,789			46,927			51,300
Commercial paper and other short-term borrowings		73,358			85,406			96,236
Accrued expenses and other liabilities (includes $1,413, $1,521 and $1,992 of reserve for unfunded lending commitments)		132,814			135,656			120,138
Long-term debt		490,083			511,653			447,187
Total liabilities		2,130,704			2,108,877			1,999,242
Shareholders’ equity
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 3,960,660, 3,960,660 and 5,760,731 shares		17,993			17,964			58,660
Common stock and additional paid-in capital, $0.01 par value; authorized - 12,800,000,000, 11,300,000,000 and
10,000,000,000 shares; issued and outstanding - 10,033,016,719, 10,032,001,150 and 8,651,459,122 shares		149,175			149,048			128,717
Retained earnings		70,497			67,811			79,210
Accumulated other comprehensive income (loss)		(4,447	)		(4,929	)		(11,227	)
Other		(44	)		(71	)		(208	)
Total shareholders’ equity		233,174			229,823			255,152
Total liabilities and shareholders’ equity	$	2,363,878		$	2,338,700		$	2,254,394

Liabilities of consolidated VIEs included in total liabilities above
Commercial paper and other short-term borrowings	$	18,549		$	21,631
Long-term debt		85,186			90,329
All other liabilities		1,835			5,135
Total liabilities of consolidated VIEs	$	105,570		$	117,095

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


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

Bank of America Corporation and Subsidiaries

Capital Management

(Dollars in millions)


	Second Quarter 2010 ⁽¹⁾			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
Risk-based capital:
Tier 1 common	$	119,716		$	115,520		$	120,394		$	112,357		$	110,383
Tier 1 capital		159,551			155,428			160,388			193,073			190,874
Total capital		220,827			219,913			226,070			258,568			255,701
Risk-weighted assets		1,494,990			1,519,723			1,542,517			1,548,962			1,599,569
Tier 1 common equity ratio ⁽²⁾		8.01	%		7.60	%		7.81	%		7.25	%		6.90	%
Tier 1 capital ratio		10.67			10.23			10.40			12.46			11.93
Total capital ratio		14.77			14.47			14.66			16.69			15.99
Tier 1 leverage ratio		6.69			6.46			6.91			8.39			8.21
Tangible equity ratio ⁽³⁾		6.16			6.03			6.42			7.55			7.39
Tangible common equity ratio ⁽³⁾		5.36			5.23			5.57			4.82			4.67

(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 at December 31, 2009), 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 Exhibit A: Non-GAAP Reconciliations—Reconciliation to GAAP Financial Measures on page 45. 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 second quarter of 2010.

There is no existing Board authorized share repurchase program.

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


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

Bank of America Corporation and Subsidiaries

Core Net Interest Income

(Dollars in millions)


	Six Months Ended June 30								Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
	2010				2009				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
Net interest income ⁽¹⁾
As reported	$	27,267			$	24,761			$	13,197			$	14,070			$	11,896			$	11,753			$	11,942
Impact of market-based net interest income ⁽²⁾		(2,235	)			(3,416	)			(1,049	)			(1,186	)			(1,305	)			(1,394	)			(1,522	)

Core net interest income		25,032				21,345				12,148				12,884				10,591				10,359				10,420
Impact of securitizations ⁽³⁾		n/a				5,483				n/a				n/a				2,474				2,567				2,734

Core net interest income ⁽⁴⁾	$	25,032			$	26,828			$	12,148			$	12,884			$	13,065			$	12,926			$	13,154


Average earning assets
As reported	$	1,921,864			$	1,861,954			$	1,910,790			$	1,933,060			$	1,807,898			$	1,790,000			$	1,811,981
Impact of market-based earning assets ⁽²⁾		(524,054	)			(483,086	)			(520,825	)			(527,319	)			(490,561	)			(468,838	)			(476,431	)

Core average earning assets		1,397,810				1,378,868				1,389,965				1,405,741				1,317,337				1,321,162				1,335,550
Impact of securitizations ⁽⁵⁾		n/a				88,845				n/a				n/a				75,337				81,703				86,154

Core average earning assets ⁽⁴⁾	$	1,397,810			$	1,467,713			$	1,389,965			$	1,405,741			$	1,392,674			$	1,402,865			$	1,421,704


Net interest yield contribution ^(1, 6)
As reported		2.85		%		2.67		%		2.77		%		2.93		%		2.62		%		2.61		%		2.64		%
Impact of market-based activities ⁽²⁾		0.75				0.44				0.73				0.76				0.59				0.52				0.49

Core net interest yield on earning assets		3.60				3.11				3.50				3.69				3.21				3.13				3.13
Impact of securitizations		n/a				0.56				n/a				n/a				0.53				0.54				0.58

Core net interest yield on earning assets ⁽⁴⁾		3.60		%		3.67		%		3.50		%		3.69		%		3.74		%		3.67		%		3.71		%

(1)

Fully taxable-equivalent basis

(2)

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

(3)

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

(4)

The 2010 periods are presented in accordance with new consolidation guidance. The 2009 periods are presented on a managed basis.

(5)

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

(6)

Calculated on an annualized basis.

n/a

= not applicable

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


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

(Dollars in millions)


	Second Quarter 2010						First Quarter 2010						Second Quarter 2009
	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	$	30,741	$	176	2.30	%	$	27,600	$	153	2.25	%	$	25,604	$	169	2.64	%
Federal funds sold and securities borrowed or purchased under agreements to resell		263,564		457	0.70			266,070		448	0.68			230,955		690	1.20
Trading account assets		213,927		1,865	3.49			214,542		1,795	3.37			199,820		2,028	4.07
Debt securities ⁽¹⁾		314,299		2,966	3.78			311,136		3,173	4.09			255,159		3,353	5.26
Loans and leases ⁽²⁾:
Residential mortgage ⁽³⁾		247,715		2,982	4.82			243,833		3,100	5.09			253,803		3,489	5.50
Home equity		148,219		1,537	4.15			152,536		1,586	4.20			156,599		1,722	4.41
Discontinued real estate		13,972		134	3.84			14,433		153	4.24			18,309		303	6.61
Credit card - domestic		118,738		3,121	10.54			125,353		3,370	10.90			51,721		1,380	10.70
Credit card - foreign		27,706		854	12.37			29,872		906	12.30			18,825		501	10.66
Direct/Indirect consumer⁽⁴⁾		98,549		1,233	5.02			100,920		1,302	5.23			100,302		1,532	6.12
Other consumer ⁽⁵⁾		2,958		46	6.32			3,002		48	6.35			3,298		63	7.77

Total consumer		657,857		9,907	6.03			669,949		10,465	6.30			602,857		8,990	5.97

Commercial - domestic		195,144		2,005	4.12			202,662		1,970	3.94			231,639		2,176	3.77
Commercial real estate ⁽⁶⁾		64,218		541	3.38			68,526		575	3.40			75,559		627	3.33
Commercial lease financing		21,271		261	4.90			21,675		304	5.60			22,026		260	4.72
Commercial - foreign		28,564		256	3.59			28,803		264	3.72			34,024		360	4.24

Total commercial		309,197		3,063	3.97			321,666		3,113	3.92			363,248		3,423	3.78

Total loans and leases		967,054		12,970	5.38			991,615		13,578	5.53			966,105		12,413	5.15

Other earning assets		121,205		994	3.29			122,097		1,053	3.50			134,338		1,251	3.73

Total earning assets ⁽⁷⁾		1,910,790		19,428	4.08			1,933,060		20,200	4.22			1,811,981		19,904	4.40

Cash and cash equivalents		209,686						196,911						204,354
Other assets, less allowance for loan and lease losses		369,269						379,789						403,982

Total assets	$	2,489,745					$	2,509,760					$	2,420,317


Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	37,290	$	43	0.46	%	$	35,126	$	43	0.50	%	$	34,367	$	54	0.63	%
NOW and money market deposit accounts		442,262		372	0.34			416,110		341	0.33			342,570		376	0.44
Consumer CDs and IRAs		147,425		441	1.20			166,189		567	1.38			229,392		1,409	2.46
Negotiable CDs, public funds and other time deposits		17,355		59	1.36			19,763		63	1.31			39,100		124	1.28

Total domestic interest-bearing deposits		644,332		915	0.57			637,188		1,014	0.65			645,429		1,963	1.22

Foreign interest-bearing deposits:
Banks located in foreign countries		19,994		34	0.70			18,338		32	0.70			19,261		37	0.76
Governments and official institutions		4,990		3	0.26			6,493		3	0.21			7,379		4	0.22
Time, savings and other		51,176		79	0.62			54,104		73	0.55			54,307		78	0.58

Total foreign interest-bearing deposits		76,160		116	0.61			78,935		108	0.55			80,947		119	0.59

Total interest-bearing deposits		720,492		1,031	0.57			716,123		1,122	0.64			726,376		2,082	1.15

Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings		454,051		891	0.79			508,332		818	0.65			503,451		1,396	1.11
Trading account liabilities		100,021		727	2.92			90,134		660	2.97			62,778		450	2.87
Long-term debt		497,469		3,582	2.88			513,634		3,530	2.77			444,131		4,034	3.64

Total interest-bearing liabilities ⁽⁷⁾		1,772,033		6,231	1.41			1,828,223		6,130	1.35			1,736,736		7,962	1.84

Noninterest-bearing sources:
Noninterest-bearing deposits		271,123						264,892						248,516
Other liabilities		213,128						186,754						192,198
Shareholders’ equity		233,461						229,891						242,867

Total liabilities and shareholders’ equity	$	2,489,745					$	2,509,760					$	2,420,317

Net interest spread					2.67	%					2.87	%					2.56	%
Impact of noninterest-bearing sources					0.10						0.06						0.08

Net interest income/yield on earning assets			$	13,197	2.77	%			$	14,070	2.93	%			$	11,942	2.64	%

(1)

Yields on AFS debt securities are calculated based on fair value rather than the cost basis. 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 credit-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 $506 million and $538 million for the second and first quarters of 2010, and $650 million in the second quarter of 2009.

(4)

Includes foreign consumer loans of $7.7 billion and $8.1 billion for the second and first quarters of 2010, and $8.0 billion in the second quarter of 2009.

(5)

Includes consumer finance loans of $2.1 billion and $2.2 billion for the second and first quarters of 2010, and $2.5 billion in the second quarter of 2009; other foreign consumer loans of $679 million and $664 million in the second and first quarters of 2010, and $640 million in the second quarter of 2009; and consumer overdrafts of $155 million and $132 million for the second and first quarters of 2010, and $185 million in the second quarter of 2009.

(6)

Includes domestic commercial real estate loans of $61.6 billion and $65.6 billion in the second and first quarters of 2010, and $72.8 billion in the second quarter of 2009, and foreign commercial real estate loans of $2.6 billion and $3.0 billion in the second and first quarters of 2010, and $2.8 billion in the second quarter of 2009.

(7)

Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $479 million and $272 million in the second and first quarters of 2010, and $11 million in the second quarter of 2009. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities $829 million and $970 million in the second and first quarters of 2010, and $550 million in the second quarter of 2009.

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


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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Second Quarter 2010							First Quarter 2010							Second Quarter 2009
	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	$	30,741	$	177		2.31	%	$	27,600	$	153		2.25	%	$	25,604	$	172		2.69	%
Federal funds sold and securities borrowed or purchased under agreements to resell ⁽²⁾		263,564		384		0.58			266,070		368		0.56			230,955		628		1.09
Trading account assets⁽²⁾		213,927		1,916		3.59			214,542		1,833		3.45			199,820		2,028		4.07
Debt securities ⁽²⁾		314,299		3,431		4.38			311,136		3,454		4.45			255,159		3,387		5.31
Loans and leases:
Residential mortgage		247,715		2,982		4.82			243,833		3,100		5.09			253,803		3,489		5.50
Home equity		148,219		1,537		4.15			152,536		1,586		4.20			156,599		1,722		4.41
Discontinued real estate		13,972		134		3.84			14,433		153		4.24			18,309		303		6.61
Credit card - domestic		118,738		3,121		10.54			125,353		3,370		10.90			51,721		1,380		10.70
Credit card - foreign		27,706		854		12.37			29,872		906		12.30			18,825		501		10.66
Direct/Indirect consumer		98,549		1,233		5.02			100,920		1,302		5.23			100,302		1,532		6.12
Other consumer		2,958		46		6.32			3,002		48		6.35			3,298		63		7.77
Total consumer		657,857		9,907		6.03			669,949		10,465		6.30			602,857		8,990		5.97
Commercial - domestic ⁽²⁾		195,144		2,040		4.19			202,662		2,003		4.01			231,639		2,212		3.83
Commercial real estate		64,218		541		3.38			68,526		575		3.40			75,559		627		3.33
Commercial lease financing		21,271		261		4.90			21,675		304		5.60			22,026		260		4.72
Commercial - foreign		28,564		256		3.59			28,803		264		3.72			34,024		360		4.24
Total commercial		309,197		3,098		4.02			321,666		3,146		3.96			363,248		3,459		3.82
Total loans and leases		967,054		13,005		5.39			991,615		13,611		5.54			966,105		12,449		5.16
Other earning assets		121,205		994		3.29			122,097		1,053		3.50			134,338		1,251		3.73
Total earning assets - excluding hedge impact		1,910,790		19,907		4.17			1,933,060		20,472		4.27			1,811,981		19,915		4.40
Net hedge expense on assets				(479	)						(272	)						(11	)
Total earning assets - including hedge impact		1,910,790		19,428		4.08			1,933,060		20,200		4.22			1,811,981		19,904		4.40
Cash and cash equivalents		209,686							196,911							204,354
Other assets, less allowance for loan and lease losses		369,269							379,789							403,982
Total assets	$	2,489,745						$	2,509,760						$	2,420,317

Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	37,290	$	43		0.46	%	$	35,126	$	43		0.50	%	$	34,367	$	54		0.63	%
NOW and money market deposit accounts		442,262		372		0.34			416,110		341		0.33			342,570		376		0.44
Consumer CDs and IRAs⁽²⁾		147,425		395		1.07			166,189		523		1.28			229,392		1,350		2.36
Negotiable CDs, public funds and other time deposits ⁽²⁾		17,355		55		1.27			19,763		60		1.23			39,100		119		1.24
Total domestic interest-bearing deposits		644,332		865		0.54			637,188		967		0.62			645,429		1,899		1.18
Foreign interest-bearing deposits:
Banks located in foreign countries ⁽²⁾		19,994		17		0.34			18,338		15		0.33			19,261		24		0.48
Governments and official institutions		4,990		3		0.26			6,493		3		0.21			7,379		4		0.22
Time, savings and other		51,176		79		0.62			54,104		73		0.55			54,307		78		0.58
Total foreign interest-bearing deposits		76,160		99		0.52			78,935		91		0.47			80,947		106		0.52
Total interest-bearing deposits		720,492		964		0.54			716,123		1,058		0.60			726,376		2,005		1.11
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings ⁽²⁾		454,051		815		0.72			508,332		716		0.57			503,451		1,157		0.92
Trading account liabilities		100,021		727		2.92			90,134		660		2.97			62,778		450		2.87
Long-term debt ⁽²⁾		497,469		4,554		3.67			513,634		4,666		3.66			444,131		4,900		4.42
Total interest-bearing liabilities - excluding hedge impact		1,772,033		7,060		1.60			1,828,223		7,100		1.57			1,736,736		8,512		1.96
Net hedge income on liabilities				(829	)						(970	)						(550	)
Total interest-bearing liabilities - including hedge impact		1,772,033		6,231		1.41			1,828,223		6,130		1.35			1,736,736		7,962		1.84
Noninterest-bearing sources:
Noninterest-bearing deposits		271,123							264,892							248,516
Other liabilities		213,128							186,754							192,198
Shareholders’ equity		233,461							229,891							242,867
Total liabilities and shareholders’ equity	$	2,489,745						$	2,509,760						$	2,420,317
Net interest spread						2.57							2.70							2.44
Impact of noninterest-bearing sources						0.12							0.09							0.08
Net interest income/yield on earning assets - excluding hedge impact				12,847		2.69	%				13,372		2.79	%				11,403		2.52	%
Net impact of hedge income (expense)				350		0.08					698		0.14					539		0.12
Net interest income/yield on earning assets			$	13,197		2.77	%			$	14,070		2.93	%			$	11,942		2.64	%

(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:


	Second Quarter 2010			First Quarter 2010			Second Quarter 2009
Time deposits placed and other short-term investments	$	(1	)	$	—		$	(3	)
Federal funds sold and securities borrowed or purchased under agreements to resell		73			80			62
Trading account assets		(51	)		(38	)		—
Debt securities		(465	)		(281	)		(34	)
Commercial - domestic		(35	)		(33	)		(36	)

Net hedge expense on assets	$	(479	)	$	(272	)	$	(11	)


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

Consumer CDs and IRAs	$	46		$	44		$	59
Negotiable CDs, public funds and other time deposits		4			3			5
Banks located in foreign countries		17			17			13
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings		76			102			239
Long-term debt		(972	)		(1,136	)		(866	)

Net hedge income on liabilities	$	(829	)	$	(970	)	$	(550	)

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


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

(Dollars in millions)


	Six Months Ended June 30
	2010						2009
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Earning assets
Time deposits placed and other short-term investments	$	29,179	$	329	2.27	%	$	25,879	$	360	2.80	%
Federal funds sold and securities borrowed or purchased under agreements to resell		264,810		905	0.69			237,581		1,845	1.56
Trading account assets		214,233		3,660	3.43			218,481		4,527	4.16
Debt securities ⁽¹⁾		312,727		6,139	3.93			270,618		7,255	5.37
Loans and leases ⁽²⁾:
Residential mortgage⁽³⁾		245,785		6,082	4.95			259,431		7,169	5.53
Home equity		150,365		3,123	4.18			157,582		3,509	4.48
Discontinued real estate		14,201		287	4.05			18,845		689	7.31
Credit card - domestic		122,027		6,491	10.73			55,320		2,981	10.87
Credit card - foreign		28,783		1,760	12.33			17,847		955	10.79
Direct/Indirect consumer⁽⁴⁾		99,728		2,535	5.13			100,521		3,216	6.45
Other consumer ⁽⁵⁾		2,981		94	6.34			3,351		127	7.63
Total consumer		663,870		20,372	6.17			612,897		18,646	6.11
Commercial - domestic		198,882		3,975	4.03			236,135		4,661	3.98
Commercial real estate ⁽⁶⁾		66,361		1,116	3.39			73,892		1,177	3.21
Commercial lease financing		21,472		565	5.26			22,041		539	4.89
Commercial - foreign		28,682		520	3.65			35,070		822	4.73
Total commercial		315,397		6,176	3.94			367,138		7,199	3.95
Total loans and leases		979,267		26,548	5.45			980,035		25,845	5.30
Other earning assets		121,648		2,047	3.39			129,360		2,550	3.98
Total earning assets ⁽⁷⁾		1,921,864		39,628	4.16			1,861,954		42,382	4.57
Cash and cash equivalents		203,334						178,822
Other assets, less allowance for loan and lease losses		374,499						428,676
Total assets	$	2,499,697					$	2,469,452

Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	36,214	$	86	0.48	%	$	33,378	$	112	0.68	%
NOW and money market deposit accounts		429,258		713	0.33			342,620		816	0.48
Consumer CDs and IRAs		156,755		1,008	1.30			232,792		3,119	2.70
Negotiable CDs, public funds and other time deposits		18,552		122	1.33			35,216		273	1.56
Total domestic interest-bearing deposits		640,779		1,929	0.61			644,006		4,320	1.35
Foreign interest-bearing deposits:
Banks located in foreign countries		19,171		66	0.70			22,638		85	0.75
Governments and official institutions		5,737		6	0.23			8,607		10	0.23
Time, savings and other		52,633		152	0.58			56,332		210	0.76
Total foreign interest-bearing deposits		77,541		224	0.58			87,577		305	0.70
Total interest-bearing deposits		718,320		2,153	0.60			731,583		4,625	1.27
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings		481,041		1,709	0.72			547,446		3,617	1.33
Trading account liabilities		95,105		1,387	2.94			66,111		1,029	3.14
Long-term debt		505,507		7,112	2.82			445,545		8,350	3.76
Total interest-bearing liabilities ⁽⁷⁾		1,799,973		12,361	1.38			1,790,685		17,621	1.98
Noninterest-bearing sources:
Noninterest-bearing deposits		268,024						237,933
Other liabilities		200,014						204,979
Shareholders’ equity		231,686						235,855
Total liabilities and shareholders’ equity	$	2,499,697					$	2,469,452
Net interest spread					2.78	%					2.59	%
Impact of noninterest-bearing sources					0.07						0.08
Net interest income/yield on earning assets			$	27,267	2.85	%			$	24,761	2.67	%

(1)

Yields on AFS debt securities are calculated based on fair value rather than the cost basis. The use of fair value does not have a material impact on net interest yield.

(2)

(3)

Includes foreign residential mortgages of $522 million and $639 million for the six months ended June 30, 2010 and 2009.

(4)

Includes foreign consumer loans of $7.9 billion and $7.5 billion for the six months ended June 30, 2010 and 2009.

(5)

Includes consumer finance loans of $2.2 billion and $2.5 billion, other foreign consumer loans of $671 million and $618 million, and consumer overdrafts of $144 million and $217 million for the six months ended June 30, 2010 and 2009.

(6)

Includes domestic commercial real estate loans of $63.6 billion and $71.9 billion, and foreign commercial real estate loans of $2.8 billion and $2.0 billion for the six months ended June 30, 2010 and 2009.

(7)

Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $751 million and $72 million for the six months ended June 30, 2010 and 2009. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities $1.8 billion and $1.1 billion for the six months ended June 30, 2010 and 2009.

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


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

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)


	Six Months Ended June 30
	2010							2009
	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⁾	$	29,179	$	330		2.28	%	$	25,879	$	363		2.82	%
Federal funds sold and securities borrowed or purchased under agreements to resell⁽²⁾		264,810		752		0.57			237,581		1,786		1.51
Trading account assets ⁽²⁾		214,233		3,749		3.52			218,481		4,527		4.16
Debt securities ⁽²⁾		312,727		6,885		4.44			270,618		7,317		5.42
Loans and leases:
Residential mortgage		245,785		6,082		4.95			259,431		7,169		5.53
Home equity		150,365		3,123		4.18			157,582		3,509		4.48
Discontinued real estate		14,201		287		4.05			18,845		689		7.31
Credit card - domestic		122,027		6,491		10.73			55,320		2,981		10.87
Credit card - foreign		28,783		1,760		12.33			17,847		955		10.79
Direct/Indirect consumer		99,728		2,535		5.13			100,521		3,216		6.45
Other consumer		2,981		94		6.34			3,351		127		7.63
Total consumer		663,870		20,372		6.17			612,897		18,646		6.11
Commercial-domestic⁽²⁾		198,882		4,043		4.10			236,135		4,727		4.04
Commercial real estate		66,361		1,116		3.39			73,892		1,177		3.21
Commercial lease financing		21,472		565		5.26			22,041		539		4.89
Commercial-foreign		28,682		520		3.65			35,070		822		4.73
Total commercial		315,397		6,244		3.99			367,138		7,265		3.99
Total loans and leases		979,267		26,616		5.48			980,035		25,911		5.32
Other earning assets		121,648		2,047		3.39			129,360		2,550		3.98
Total earning assets-excluding hedge impact		1,921,864		40,379		4.23			1,861,954		42,454		4.58
Net hedge expense on assets				(751	)						(72	)
Total earning assets-including hedge impact		1,921,864		39,628		4.16			1,861,954		42,382		4.57
Cash and cash equivalents		203,334							178,822
Other assets, less allowance for loan and lease losses		374,499							428,676
Total assets	$	2,499,697						$	2,469,452

Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	36,214	$	86		0.48	%	$	33,378	$	112		0.68	%
NOW and money market deposit accounts⁽²⁾		429,258		713		0.33			342,620		817		0.48
Consumer CDs and IRAs⁽²⁾		156,755		918		1.18			232,792		2,996		2.60
Negotiable CDs, public funds and other time deposits⁽²⁾		18,552		115		1.25			35,216		265		1.53
Total domestic interest-bearing deposits		640,779		1,832		0.58			644,006		4,190		1.31
Foreign interest-bearing deposits:
Banks located in foreign countries⁽²⁾		19,171		32		0.34			22,638		65		0.57
Governments and official institutions		5,737		6		0.23			8,607		10		0.23
Time, savings and other		52,633		152		0.58			56,332		210		0.76
Total foreign interest-bearing deposits		77,541		190		0.49			87,577		285		0.66
Total interest-bearing deposits		718,320		2,022		0.57			731,583		4,475		1.23
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings ⁽²⁾		481,041		1,531		0.64			547,446		3,072		1.13
Trading account liabilities		95,105		1,387		2.94			66,111		1,029		3.14
Long-term debt⁽²⁾		505,507		9,220		3.68			445,545		10,107		4.56
Total interest-bearing liabilities-excluding hedge impact		1,799,973		14,160		1.59			1,790,685		18,683		2.10
Net hedge income on liabilities				(1,799	)						(1,062	)
Total interest-bearing liabilities-including hedge impact		1,799,973		12,361		1.38			1,790,685		17,621		1.98
Noninterest-bearing sources:
Noninterest-bearing deposits		268,024							237,933
Other liabilities		200,014							204,979
Shareholders’ equity		231,686							235,855
Total liabilities and shareholders’ equity	$	2,499,697						$	2,469,452
Net interest spread						2.64							2.48
Impact of noninterest-bearing sources						0.10							0.08
Net interest income/yield on earning assets - excluding hedge impact			$	26,219		2.74	%			$	23,771		2.56	%
Net impact of hedge income (expense)				1,048		0.11					990		0.11
Net interest income/yield on earning assets			$	27,267		2.85	%			$	24,761		2.67	%

(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:


	Six Months Ended June 30
	2010			2009
Time deposits placed and other short-term investments	$	(1	)	$	(3	)
Federal funds sold and securities borrowed or purchased under agreements to resell		153			59
Trading account assets		(89	)		—
Debt securities		(746	)		(62	)
Commercial-domestic		(68	)		(66	)

Net hedge expense on assets	$	(751	)	$	(72	)


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

NOW and money market deposit accounts	$	—		$	(1	)
Consumer CDs and IRAs		90			123
Negotiable CDs, public funds and other time deposits		7			8
Banks located in foreign countries		34			20
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings		178			545
Long-term debt		(2,108	)		(1,757	)

Net hedge income on liabilities	$	(1,799	)	$	(1,062	)

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


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

Bank of America Corporation and Subsidiaries

Debt Securities and Available-for-Sale Marketable Equity Securities

(Dollars in millions)


	June 30, 2010
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale debt securities
U.S. Treasury and agency securities	$	50,630	$	476	$	(722	)	$	50,384
Mortgage-backed securities:
Agency		148,618		5,025		(62	)		153,581
Agency collateralized mortgage obligations		40,139		816		(85	)		40,870
Non-agency residential		29,795		597		(1,032	)		29,360
Non-agency commercial		6,327		840		(39	)		7,128
Foreign securities		3,703		70		(823	)		2,950
Corporate bonds		6,249		181		(63	)		6,367
Other taxable securities ⁽¹⁾		17,176		73		(537	)		16,712

Total taxable securities		302,637		8,078		(3,363	)		307,352
Tax-exempt securities		7,462		96		(145	)		7,413

Total available-for-sale debt securities	$	310,099	$	8,174	$	(3,508	)	$	314,765

Held-to-maturity debt securities		435		—		—			435

Total debt securities	$	310,534	$	8,174	$	(3,508	)	$	315,200

Available-for-sale marketable equity securities ⁽²⁾	$	181	$	30	$	(32	)	$	179


	March 31, 2010
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value


Available-for-sale debt securities
U.S. Treasury and agency securities	$	40,664	$	291	$	(212	)	$	40,743
Mortgage-backed securities:
Agency		150,356		2,791		(578	)		152,569
Agency collateralized mortgage obligations		43,403		320		(250	)		43,473
Non-agency residential		35,008		655		(2,685	)		32,978
Non-agency commercial		6,971		947		(48	)		7,870
Foreign securities		3,826		41		(744	)		3,123
Corporate bonds		6,780		162		(85	)		6,857
Other taxable securities ⁽¹⁾		19,914		84		(539	)		19,459

Total taxable securities		306,922		5,291		(5,141	)		307,072
Tax-exempt securities		9,041		74		(167	)		8,948

Total available-for-sale debt securities	$	315,963	$	5,365	$	(5,308	)	$	316,020

Held-to-maturity debt securities		340		—		—			340

Total debt securities	$	316,303	$	5,365	$	(5,308	)	$	316,360

Available-for-sale marketable equity securities ⁽²⁾	$	2,937	$	3,679	$	(42	)	$	6,574

(1)

Includes asset-backed securities.

(2)

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.


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

Bank of America Corporation and Subsidiaries

Quarterly Results by Business Segment

(Dollars in millions)


	Second Quarter 2010
	Total Corporation			Deposits		Global Card Services ⁽¹⁾			Home Loans & Insurance			Global Commercial Banking			Global Banking & Markets			GWIM		All Other⁽¹⁾
Net interest income ⁽²⁾	$	13,197		$	2,115	$	4,439		$	1,000		$	2,118		$	1,976		$	1,385	$	164
Noninterest income		16,253			1,489		2,422			1,795			660			4,029			2,946		2,912

Total revenue, net of interest expense		29,450			3,604		6,861			2,795			2,778			6,005			4,331		3,076

Provision for credit losses		8,105			61		3,795			2,390			623			(133	)		121		1,248
Noninterest expense		17,253			2,496		1,799			2,817			909			4,790			3,370		1,072

Income (loss) before income taxes		4,092			1,047		1,267			(2,412	)		1,246			1,348			840		756
Income tax expense (benefit) ⁽²⁾		969			382		461			(878	)		456			421			484		(357	)

Net income (loss)	$	3,123		$	665	$	806		$	(1,534	)	$	790		$	927		$	356	$	1,113


Average
Total loans and leases	$	967,054			n/m	$	177,571		$	130,664		$	206,111		$	95,902		$	99,007	$	257,245
Total assets ⁽³⁾		2,489,745		$	440,628		186,195			229,168			302,636			774,792			265,908		n/m
Total deposits		991,615			415,670		n/m			n/m			145,221			113,165			229,272		64,201
Allocated equity		233,461			24,212		40,517			26,346			41,971			53,117			23,515		23,783

Period end
Total loans and leases	$	956,177			n/m	$	173,021		$	129,798		$	203,173		$	95,647		$	99,351	$	254,615
Total assets ⁽³⁾		2,363,878		$	436,935		183,334			225,492			303,848			712,219			259,734		n/m
Total deposits		974,467			411,682		n/m			n/m			147,251			106,091			229,551		56,983

	First Quarter 2010
	Total Corporation			Deposits		Global Card Services ⁽¹⁾			Home Loans & Insurance			Global Commercial Banking			Global Banking & Markets			GWIM		All Other⁽¹⁾
Net interest income ⁽²⁾	$	14,070		$	2,146	$	4,818		$	1,213		$	2,213		$	2,146		$	1,391	$	143
Noninterest income		18,220			1,487		1,985			2,411			817			7,605			2,778		1,137

Total revenue, net of interest expense		32,290			3,633		6,803			3,624			3,030			9,751			4,169		1,280

Provision for credit losses		9,805			37		3,535			3,600			926			247			242		1,218
Noninterest expense		17,775			2,498		1,757			3,329			967			4,370			3,191		1,663

Income (loss) before income taxes		4,710			1,098		1,511			(3,305	)		1,137			5,134			736		(1,601	)
Income tax expense (benefit) ⁽²⁾		1,528			410		564			(1,233	)		424			1,916			275		(828	)

Net income (loss)	$	3,182		$	688	$	947		$	(2,072	)	$	713		$	3,218		$	461	$	(773	)


Average
Total loans and leases	$	991,615			n/m	$	189,307		$	133,745		$	213,841		$	99,027		$	99,038	$	256,151
Total assets ⁽³⁾		2,509,760		$	439,070		195,845			234,116			294,856			782,126			256,286		n/m
Total deposits		981,015			414,169		n/m			n/m			143,369			104,113			224,514		70,417
Allocated equity		229,891			24,116		43,170			27,280			42,645			55,053			21,978		15,649

Period end
Total loans and leases	$	976,042			n/m	$	181,763		$	132,428		$	211,255		$	95,588		$	98,538	$	255,851
Total assets ⁽³⁾		2,338,700		$	442,525		190,996			224,570			301,423			690,772			261,330		n/m
Total deposits		976,102			417,541		n/m			n/m			145,454			105,117			230,044		56,467

	Second Quarter 2009
	Total Corporation			Deposits		Global Card Services ⁽¹⁾			Home Loans & Insurance			Global Commercial Banking			Global Banking & Markets			GWIM		All Other⁽¹⁾
Net interest income ⁽²⁾	$	11,942		$	1,729	$	4,976		$	1,199		$	1,979		$	2,366		$	1,288	$	(1,595	)
Noninterest income		21,144			1,748		2,286			3,264			864			8,045			2,674		2,263

Total revenue, net of interest expense		33,086			3,477		7,262			4,463			2,843			10,411			3,962		668

Provision for credit losses		13,375			87		7,655			2,726			2,081			588			238		—
Noninterest expense		17,020			2,593		1,936			2,834			970			3,920			3,142		1,625

Income (loss) before income taxes		2,691			797		(2,329	)		(1,097	)		(208	)		5,903			582		(957	)
Income tax expense (benefit) ⁽²⁾		(533	)		263		(743	)		(371	)		(144	)		2,000			186		(1,724	)

Net income (loss)	$	3,224		$	534	$	(1,586	)	$	(726	)	$	(64	)	$	3,903		$	396	$	767


Average
Total loans and leases	$	966,105			n/m	$	215,808		$	131,509		$	234,355		$	116,513		$	101,746	$	165,558
Total assets ⁽³⁾		2,420,317		$	440,039		231,927			232,253			278,267			780,910			237,591		n/m
Total deposits		974,892			415,502		n/m			n/m			125,805			102,650			215,381		89,527
Allocated equity		242,867			23,381		41,775			16,128			43,476			49,670			18,113		50,324

Period end
Total loans and leases	$	942,248			n/m	$	211,325		$	131,120		$	230,131		$	108,320		$	100,852	$	159,977
Total assets ⁽³⁾		2,254,394		$	445,936		227,905			234,277			275,213			695,735			233,792		n/m
Total deposits		970,742			421,651		n/m			n/m			128,348			104,124			207,580		84,226

(1)

The 2010 periods are presented in accordance with new consolidation guidance. The 2009 period for Global Card Services is presented on a managed basis with a corresponding offset 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.


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

Bank of America Corporation and Subsidiaries

Year-to-Date Results by Business Segment

(Dollars in millions)


	Six Months Ended June 30, 2010
	Total Corporation		Deposits		Global Card Services ⁽¹⁾			Home Loans & Insurance			Global Commercial Banking			Global Banking & Markets		GWIM		All Other ⁽¹⁾
Net interest income ⁽²⁾	$	27,267	$	4,261	$	9,257		$	2,213		$	4,331		$	4,122	$	2,776	$	307
Noninterest income		34,473		2,976		4,407			4,206			1,477			11,634		5,724		4,049

Total revenue, net of interest expense		61,740		7,237		13,664			6,419			5,808			15,756		8,500		4,356

Provision for credit losses		17,910		98		7,330			5,990			1,549			114		363		2,466
Noninterest expense		35,028		4,994		3,556			6,146			1,876			9,160		6,561		2,735

Income (loss) before income taxes		8,802		2,145		2,778			(5,717	)		2,383			6,482		1,576		(845	)
Income tax expense (benefit) ⁽²⁾		2,497		792		1,025			(2,111	)		880			2,337		759		(1,185	)

Net income (loss)	$	6,305	$	1,353	$	1,753		$	(3,606	)	$	1,503		$	4,145	$	817	$	340


Average
Total loans and leases	$	979,267		n/m	$	183,407		$	132,196		$	209,955		$	97,456	$	99,023	$	256,700
Total assets ⁽³⁾		2,499,697	$	439,854		190,993			231,628			298,767			778,439		261,124		n/m
Total deposits		986,344		414,924		n/m			n/m			144,300			108,664		226,906		67,291
Allocated equity		231,686		24,164		41,836			26,811			42,306			54,080		22,751		19,738

Period end
Total loans and leases	$	956,177		n/m	$	173,021		$	129,798		$	203,173		$	95,647	$	99,351	$	254,615
Total assets ⁽³⁾		2,363,878	$	436,935		183,334			225,492			303,848			712,219		259,734		n/m
Total deposits		974,467		411,682		n/m			n/m			147,251			106,091		229,551		56,983

	Six Months Ended June 30, 2009
	Total Corporation		Deposits		Global Card Services ⁽¹⁾			Home Loans & Insurance			Global Commercial Banking			Global Banking & Markets		GWIM		All Other ⁽¹⁾
Net interest income ⁽²⁾	$	24,761	$	3,598	$	10,174		$	2,391		$	3,960		$	5,148	$	2,942	$	(3,452	)
Noninterest income		44,405		3,251		4,535			7,308			1,592			14,203		5,182		8,334

Total revenue, net of interest expense		69,166		6,849		14,709			9,699			5,552			19,351		8,124		4,882

Provision for credit losses		26,755		175		15,876			6,098			3,868			913		492		(667	)
Noninterest expense		34,022		4,895		3,982			5,491			1,944			8,613		6,256		2,841

Income (loss) before income taxes		8,389		1,779		(5,149	)		(1,890	)		(260	)		9,825		1,376		2,708
Income tax expense (benefit) ⁽²⁾		918		631		(1,806	)		(669	)		(160	)		3,405		486		(969	)

Net income (loss)	$	7,471	$	1,148	$	(3,343	)	$	(1,221	)	$	(100	)	$	6,420	$	890	$	3,677


Average
Total loans and leases	$	980,035		n/m	$	219,888		$	128,543		$	235,695		$	118,940	$	106,116	$	170,119
Total assets ⁽³⁾		2,469,452	$	420,634		237,214			225,718			270,444			807,940		258,003		n/m
Total deposits		969,516		395,999		n/m			n/m			122,175			103,325		233,049		90,597
Allocated equity		235,855		23,402		40,885			15,503			41,608			47,792		17,366		49,299

Period end
Total loans and leases	$	942,248		n/m	$	211,325		$	131,120		$	230,131		$	108,320	$	100,852	$	159,977
Total assets ⁽³⁾		2,254,394	$	445,936		227,905			234,277			275,213			695,735		233,792		n/m
Total deposits		970,742		421,651		n/m			n/m			128,348			104,124		207,580		84,226

(1)

The 2010 period is presented in accordance with new consolidation guidance. The 2009 period for Global Card Services is presented on a managed basis with a corresponding offset 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.


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

Bank of America Corporation and Subsidiaries

Deposits Segment Results ⁽¹⁾

(Dollars in millions)


	Six Months Ended June 30						Second Quarter 2010				First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
	2010			2009			Second Quarter 2010				First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
Net interest income ⁽²⁾	$	4,261		$	3,598		$	2,115			$	2,146		$	1,764		$	1,726		$	1,729
Noninterest income:
Service charges		2,974			3,248			1,494				1,480			1,645			1,904			1,747
All other income (loss)		2			3			(5	)			7			—			2			1

Total noninterest income		2,976			3,251			1,489				1,487			1,645			1,906			1,748

Total revenue, net of interest expense		7,237			6,849			3,604				3,633			3,409			3,632			3,477

Provision for credit losses		98			175			61				37			75			93			87
Noninterest expense		4,994			4,895			2,496				2,498			2,330			2,287			2,593

Income before income taxes		2,145			1,779			1,047				1,098			1,004			1,252			797
Income tax expense ⁽²⁾		792			631			382				410			396			439			263

Net income	$	1,353		$	1,148		$	665			$	688		$	608		$	813		$	534


Net interest yield ⁽²⁾		2.08	%		1.84	%		2.05		%		2.11	%		1.69	%		1.64	%		1.68	%
Return on average equity		11.29			9.89			11.01				11.57			10.10			13.62			9.16
Efficiency ratio ⁽²⁾		68.99			71.47			69.24				68.75			68.36			62.97			74.59

Balance sheet

Average
Total earning assets ⁽³⁾	$	413,290		$	394,374		$	414,179			$	412,390		$	414,798		$	416,637		$	413,674
Total assets ⁽³⁾		439,854			420,634			440,628				439,070			441,478			443,271			440,039
Total deposits		414,924			395,999			415,670				414,169			416,534			418,512			415,502
Allocated equity		24,164			23,402			24,212				24,116			23,876			23,688			23,381

Period end
Total earning assets ⁽³⁾	$	410,922		$	420,004		$	410,922			$	416,174		$	417,713		$	415,075		$	420,004
Total assets ⁽³⁾		436,935			445,936			436,935				442,525			444,612			441,585			445,936
Total deposits		411,682			421,651			411,682				417,541			419,583			416,951			421,651

(1)

Deposits includes the net impact of migrating customers and their related deposit balances between the Merrill Lynch Global Wealth Management (MLGWM) business within Global Wealth & Investment Management (GWIM) and Deposits. Subsequent to the date of migration, the associated net interest income, service charges and noninterest expense are recorded in the business to which deposits were transferred.

(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.


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

Bank of America Corporation and Subsidiaries

Deposits Key Indicators

(Dollars in millions, except as noted)


	Six Months Ended June 30							Second Quarter 2010				First Quarter 2010			Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
	2010			2009				Second Quarter 2010				First Quarter 2010			Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
Average deposit balances
Checking	$	146,497		$	130,541			$	149,198			$	143,767		$	138,997			$	136,605			$	135,357
Savings		34,412			31,034				35,467				33,345			31,995				32,374				32,488
MMS		119,457			84,751				122,089				116,796			108,848				98,659				91,275
CDs and IRAs		111,223			146,304				105,598				116,911			133,714				147,844				152,828
Foreign and other		3,335			3,369				3,318				3,350			2,980				3,030				3,554

Total average deposit balances	$	414,924		$	395,999			$	415,670			$	414,169		$	416,534			$	418,512			$	415,502


Total balances migrated to (from) MLGWM	$	2,454		$	(40,480	)		$	(555	)		$	3,009		$	(33	)		$	(2,920	)		$	(34,340	)

Deposit spreads (excludes noninterest costs)
Checking		3.82	%		4.12		%		3.82		%		3.82	%		3.82		%		3.93		%		4.07		%
Savings		3.72			3.88				3.70				3.73			3.67				3.83				3.87
MMS		0.81			0.23				0.84				0.77			0.59				0.58				0.55
CDs and IRAs		0.17			0.07				0.22				0.12			0.02				(0.01	)			0.05
Foreign and other		4.14			3.70				4.14				4.15			3.45				3.46				3.68
Total deposit spreads		1.95			1.75				2.01				1.90			1.73				1.72				1.78

Online banking (end of period)
Active accounts (units in thousands)		29,195			28,649				29,195				29,850			29,600				29,209				28,649
Active billpay accounts (units in thousands)		14,902			15,115				14,902				15,078			14,966				15,107				15,115

LOGO

Bank of America has the largest active online banking customer base with 29.2 million subscribers.

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

14.9 million active bill pay users paid $76.0 billion worth of bills this quarter.

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


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 Segment Results ⁽¹⁾

(Dollars in millions)


	Six Months Ended June 30							Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
	2010			2009				Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
Net interest income ⁽²⁾	$	9,257		$	10,174			$	4,439		$	4,818		$	4,878			$	4,920			$	4,976
Noninterest income:
Card income		3,781			4,277				1,900			1,881			2,093				2,183				2,163
All other income		626			258				522			104			115				147				123

Total noninterest income		4,407			4,535				2,422			1,985			2,208				2,330				2,286

Total revenue, net of interest expense		13,664			14,709				6,861			6,803			7,086				7,250				7,262

Provision for credit losses		7,330			15,876				3,795			3,535			6,854				6,823				7,655
Noninterest expense		3,556			3,982				1,799			1,757			1,899				1,936				1,936

Income (loss) before income taxes		2,778			(5,149	)			1,267			1,511			(1,667	)			(1,509	)			(2,329	)
Income tax expense (benefit) ⁽²⁾		1,025			(1,806	)			461			564			(659	)			(541	)			(743	)

Net income (loss)	$	1,753		$	(3,343	)		$	806		$	947		$	(1,008	)		$	(968	)		$	(1,586	)


Net interest yield ⁽²⁾		10.17	%		9.34		%		10.01	%		10.32	%		9.71		%		9.37		%		9.26		%
Return on average equity		8.45			n/m				7.98			8.90			n/m				n/m				n/m
Efficiency ratio ⁽²⁾		26.02			27.07				26.20			25.84			26.79				26.71				26.66

Balance sheet

Average
Total loans and leases	$	183,407		$	219,888			$	177,571		$	189,307		$	199,756			$	208,650			$	215,808
Total earning assets		183,579			219,771				177,868			189,353			199,383				208,287				215,575
Total assets		190,993			237,214				186,195			195,845			215,447				224,165				231,927
Allocated equity		41,836			40,885				40,517			43,170			41,696				40,652				41,775

Period end
Total loans and leases	$	173,021		$	211,325			$	173,021		$	181,763		$	196,289			$	202,860			$	211,325
Total earning assets		173,497			211,054				173,497			182,267			196,046				202,653				211,054
Total assets		183,334			227,905				183,334			190,996			212,668				219,642				227,905

(1)

The 2010 periods are presented in accordance with new consolidation guidance. The 2009 periods are presented on a managed basis. (See Exhibit A: Non-GAAP Reconciliations - Global Card Services - Reconciliation on page 46).

(2)

Fully taxable-equivalent basis

n/m = not meaningful

Certain

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


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

Bank of America Corporation and Subsidiaries

Global Card Services Key Indicators ⁽¹⁾

(Dollars in millions)


	Six Months Ended June 30						Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
	2010			2009			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
Credit Card Data ⁽²⁾

Loans
Average
Securitization impact		n/a		$	102,357			n/a			n/a		$	91,705		$	97,520		$	102,046
Held credit card outstandings	$	150,810			73,167		$	146,444		$	155,225			70,893			70,940			70,546

Total credit card outstandings	$	150,810		$	175,524		$	146,444		$	155,225		$	162,598		$	168,460		$	172,592


Period end
Securitization impact		n/a		$	100,438			n/a			n/a		$	89,715		$	94,328		$	100,438
Held credit card outstandings	$	143,130			69,377		$	143,130		$	149,555			71,109			70,206			69,377

Total credit card outstandings	$	143,130		$	169,815		$	143,130		$	149,555		$	160,824		$	164,534		$	169,815


Credit Quality
Charge-offs $
Securitization impact		n/a		$	5,165			n/a			n/a		$	2,926		$	3,308		$	2,983
Held net charge-offs	$	9,053			3,676		$	4,459		$	4,594			1,941			2,169			2,064

Total credit card net losses	$	9,053		$	8,841		$	4,459		$	4,594		$	4,867		$	5,477		$	5,047


Charge-offs %
Securitization impact		n/a			0.03	%		n/a			n/a			1.02	%		0.77	%		(0.01	)	%
Held net charge-offs		12.11	%		10.13			12.21	%		12.00	%		10.86			12.13			11.74

Total credit card net losses		12.11	%		10.16	%		12.21	%		12.00	%		11.88	%		12.90	%		11.73		%


30+ Delinquency $
Securitization impact		n/a		$	7,748			n/a			n/a		$	6,599		$	7,047		$	7,748
Held delinquency	$	8,212			5,221		$	8,212		$	10,125			4,961			5,054			5,221

Total delinquency	$	8,212		$	12,969		$	8,212		$	10,125		$	11,560		$	12,101		$	12,969


30+ Delinquency %
Securitization impact		n/a			0.11	%		n/a			n/a			0.21	%		0.15	%		0.11		%
Held delinquency		5.74	%		7.53			5.74	%		6.77	%		6.98			7.20			7.53

Total delinquency		5.74	%		7.64	%		5.74	%		6.77	%		7.19	%		7.35	%		7.64		%


90+ Delinquency $
Securitization impact		n/a		$	4,263			n/a			n/a		$	3,550		$	3,600		$	4,263
Held delinquency	$	4,526			2,894		$	4,526		$	5,572			2,657			2,593			2,894

Total delinquency	$	4,526		$	7,157		$	4,526		$	5,572		$	6,207		$	6,193		$	7,157


90+ Delinquency %
Securitization impact		n/a			0.04	%		n/a			n/a			0.12	%		0.07	%		0.04		%
Held delinquency		3.16	%		4.17			3.16	%		3.73	%		3.74			3.69			4.17

Total delinquency		3.16	%		4.21	%		3.16	%		3.73	%		3.86	%		3.76	%		4.21		%


Other Global Card Services Key Indicators


Credit card data
Gross interest yield		11.04	%		11.51	%		10.89	%		11.18	%		11.34	%		11.18	%		11.33		%
Risk adjusted margin		1.58			2.94			1.33			1.83			1.47			0.26			1.28
New account growth (in thousands)		1,414			2,188			670			745			994			1,014			957
Purchase volumes	$	102,600		$	100,000		$	53,924		$	48,677		$	54,875		$	53,031		$	51,944

Debit Card Data
Debit purchase volumes	$	115,203		$	106,291		$	59,136		$	56,067		$	57,186		$	54,764		$	55,158

(1)

The 2010 periods are presented in accordance with new consolidation guidance. The 2009 periods are presented on a managed basis.

(2)

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

n/a = not applicable

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


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 Segment Results

(Dollars in millions; except as noted)


	Six Months Ended June 30								Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
	2010				2009				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
Net interest income ⁽¹⁾	$	2,213			$	2,391			$	1,000			$	1,213			$	1,275			$	1,309			$	1,199
Noninterest income:
Mortgage banking income		2,661				6,081				1,020				1,641				1,816				1,424				2,661
Insurance income		1,151				1,134				561				590				618				594				553
All other income		394				93				214				180				82				86				50

Total noninterest income		4,206				7,308				1,795				2,411				2,516				2,104				3,264

Total revenue, net of interest expense		6,419				9,699				2,795				3,624				3,791				3,413				4,463

Provision for credit losses		5,990				6,098				2,390				3,600				2,249				2,897				2,726
Noninterest expense		6,146				5,491				2,817				3,329				3,164				3,049				2,834

Loss before income taxes		(5,717	)			(1,890	)			(2,412	)			(3,305	)			(1,622	)			(2,533	)			(1,097	)
Income tax benefit ⁽¹⁾		(2,111	)			(669	)			(878	)			(1,233	)			(628	)			(898	)			(371	)

Net loss	$	(3,606	)		$	(1,221	)		$	(1,534	)		$	(2,072	)		$	(994	)		$	(1,635	)		$	(726	)


Net interest yield ⁽¹⁾		2.36		%		2.53		%		2.13		%		2.58		%		2.64		%		2.59		%		2.43		%
Efficiency ratio ⁽¹⁾		95.73				56.62				100.78				91.85				83.47				89.33				63.50

Balance sheet

Average
Total loans and leases	$	132,196			$	128,543			$	130,664			$	133,745			$	132,326			$	132,599			$	131,509
Total earning assets		189,468				190,272				188,146				190,805				191,544				200,426				197,651
Total assets		231,628				225,718				229,168				234,116				232,827				236,086				232,253
Allocated equity		26,811				15,503				26,346				27,280				26,214				24,737				16,128

Period end
Total loans and leases	$	129,798			$	131,120			$	129,798			$	132,428			$	131,302			$	134,255			$	131,120
Total earning assets		188,091				197,419				188,091				183,898				188,349				197,550				197,419
Total assets		225,492				234,277				225,492				224,570				232,588				234,725				234,277

Period end (in billions)
Mortgage servicing portfolio ⁽²⁾	$	2,127.6			$	2,111.9			$	2,127.6			$	2,143.7			$	2,150.8			$	2,148.3			$	2,111.9

(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.


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

Bank of America Corporation and Subsidiaries

Home Loans & Insurance Key Indicators

(Dollars in millions, except as noted)


	Six Months Ended June 30								Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
	2010				2009				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
Mortgage servicing rights at fair value rollforward:
Beginning balance	$	19,465			$	12,733			$	18,842			$	19,465			$	17,539			$	18,535			$	14,096
Merrill Lynch balance, January 1, 2009		—				209				—				—				—				—				—
Net additions		2,013				2,955				882				1,131				1,035				1,738				1,706
Impact of customer payments		(2,037	)			(2,291	)			(981	)			(1,056	)			(1,089	)			(1,111	)			(1,098	)
Other changes in MSR fair value		(4,696	)			4,929				(3,998	)			(698	)			1,980				(1,623	)			3,831

Ending balance	$	14,745			$	18,535			$	14,745			$	18,842			$	19,465			$	17,539			$	18,535

Capitalized mortgage servicing rights
(% of loans serviced)		86		bps		109		bps		86		bps		110		bps		113		bps		102		bps		109		bps
Mortgage loans serviced for investors (in billions)	$	1,706			$	1,703			$	1,706			$	1,717			$	1,716			$	1,726			$	1,703

Loan production:
Home Loans & Insurance
First mortgage	$	136,106			$	181,519			$	69,141			$	66,965			$	83,503			$	89,484			$	103,021
Home equity		3,602				5,843				1,831				1,771				2,420				2,225				2,920
Total Corporation ⁽¹⁾
First mortgage		141,440				195,863				71,938				69,502				86,588				95,654				110,645
Home equity		4,164				7,688				2,137				2,027				2,787				2,739				3,650

Mortgage banking income
Production income	$	937			$	3,323			$	180			$	757			$	1,060			$	1,118			$	1,674
Servicing income:
Servicing fees		3,214				3,029				1,647				1,567				1,601				1,596				1,511
Impact of customer payments		(2,037	)			(2,291	)			(981	)			(1,056	)			(1,089	)			(1,111	)			(1,098	)
Fair value changes of MSRs, net of economic hedge results ⁽²⁾		209				1,757				12				197				95				(313	)			447
Other servicing-related revenue		338				263				162				176				149				134				127

Total net servicing income		1,724				2,758				840				884				756				306				987

Total Home Loans & Insurance mortgage banking income		2,661				6,081				1,020				1,641				1,816				1,424				2,661
Other business segments’ mortgage banking loss ⁽³⁾		(263	)			(240	)			(122	)			(141	)			(164	)			(126	)			(134	)

Total consolidated mortgage banking income	$	2,398			$	5,841			$	898			$	1,500			$	1,652			$	1,298			$	2,527

(1)

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

(2)

Includes sale of mortgage servicing rights.

(3)

Includes the effect of 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.


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

Bank of America Corporation and Subsidiaries

Global Commercial Banking Segment Results

(Dollars in millions)


	Six Months Ended June 30							Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
	2010			2009				Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
Net interest income ⁽¹⁾	$	4,331		$	3,960			$	2,118		$	2,213		$	2,082			$	2,012			$	1,979
Noninterest income:
Service charges		1,071			1,023				528			543			522				533				512
All other income		406			569				132			274			212				227				352

Total noninterest income		1,477			1,592				660			817			734				760				864

Total revenue, net of interest expense		5,808			5,552				2,778			3,030			2,816				2,772				2,843

Provision for credit losses		1,549			3,868				623			926			1,843				2,057				2,081
Noninterest expense		1,876			1,944				909			967			930				959				970

Income (loss) before income taxes		2,383			(260	)			1,246			1,137			43				(244	)			(208	)
Income tax expense (benefit) ⁽¹⁾		880			(160	)			456			424			74				(84	)			(144	)

Net income (loss)	$	1,503		$	(100	)		$	790		$	713		$	(31	)		$	(160	)		$	(64	)


Net interest yield ⁽¹⁾		3.26	%		3.36		%		3.13	%		3.39	%		3.04		%		3.05		%		3.23		%
Return on average equity		7.16			n/m				7.55			6.78			n/m				n/m				n/m
Efficiency ratio ⁽¹⁾		32.31			35.00				32.74			31.92			33.03				34.61				34.12

Balance sheet

Average
Total loans and leases	$	209,955		$	235,695			$	206,111		$	213,841		$	219,239			$	225,994			$	234,355
Total earning assets ⁽²⁾		267,890			237,932				271,370			264,370			271,266				261,876				245,586
Total assets ⁽²⁾		298,767			270,444				302,636			294,856			301,771				292,878				278,267
Total deposits		144,300			122,175				145,221			143,369			143,089				131,548				125,805
Allocated equity		42,306			41,608				41,971			42,645			42,307				42,193				43,476

Period end
Total loans and leases	$	203,173		$	230,131			$	203,173		$	211,255		$	215,237			$	221,543			$	230,131
Total earning assets ⁽²⁾		272,691			243,771				272,691			271,098			264,745				253,557				243,771
Total assets ⁽²⁾		303,848			275,213				303,848			301,423			295,829				284,869				275,213
Total deposits		147,251			128,348				147,251			145,454			146,905				133,214				128,348

(1)

Fully taxable-equivalent basis

(2)

Total earning assets and 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.


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

Bank of America Corporation and Subsidiaries

Global Commercial Banking Key Indicators

(Dollars in millions)


	Six Months Ended June 30						Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
	2010			2009			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
Revenue, net of interest expense by service segment
Business lending	$	3,535		$	3,424		$	1,656		$	1,879		$	1,746		$	1,724		$	1,801
Treasury services		2,273			2,128			1,122			1,151			1,070			1,048			1,042

Total revenue, net of interest expense ⁽¹⁾	$	5,808		$	5,552		$	2,778		$	3,030		$	2,816		$	2,772		$	2,843


Average loans and leases by product
Commercial - domestic	$	106,160		$	124,175		$	104,261		$	108,081		$	111,341		$	115,324		$	122,107
Commercial real estate		55,808			63,357			53,721			57,917			60,351			62,773			64,430
Direct/Indirect consumer		45,589			45,334			45,776			45,400			45,001			45,309			45,052
Other		2,398			2,829			2,353			2,443			2,546			2,588			2,766

Total average loans and leases	$	209,955		$	235,695		$	206,111		$	213,841		$	219,239		$	225,994		$	234,355

Loan spread		2.31	%		1.96	%		2.32	%		2.30	%		2.18	%		2.11	%		2.03	%

Credit quality
Reservable utilized criticized exposure ⁽²⁾	$	37,613		$	39,360		$	37,613		$	39,586		$	41,225		$	42,109		$	39,360
		18.50	%		16.73	%		18.50	%		18.53	%		18.75	%		18.59	%		16.73	%
Nonperforming loans, leases and foreclosed properties ⁽³⁾	$	10,027		$	9,695		$	10,027		$	10,814		$	11,083		$	10,412		$	9,695
		4.92	%		4.21	%		4.92	%		5.10	%		5.13	%		4.69	%		4.21	%

Average deposit balances
Interest-bearing	$	54,185		$	50,441		$	54,187		$	54,182		$	53,862		$	49,533		$	49,579
Noninterest-bearing		90,115			71,734			91,034			89,187			89,227			82,015			76,226

Total	$	144,300		$	122,175		$	145,221		$	143,369		$	143,089		$	131,548		$	125,805

(1)

Fully taxable-equivalent basis

(2)

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 and commercial letters of credit.

(3)

Nonperforming loans, leases and foreclosed properties are presented on an end-of-period basis. The nonperforming ratio is calculated as nonperforming loans, leases and foreclosed properties divided by loans, leases and foreclosed properties.

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


This information is preliminary and based on company data available at the time of the presentation.		23

Bank of America Corporation and Subsidiaries

Global Banking & Markets Segment Results

(Dollars in millions)


	Six Months Ended June 30								Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
	2010				2009				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
Net interest income ⁽¹⁾	$	4,122			$	5,148			$	1,976			$	2,146			$	2,169			$	2,255			$	2,366
Noninterest income:
Service charges		1,048				923				529				519				565				555				441
Investment and brokerage services		1,299				1,476				676				623				596				590				861
Investment banking income		2,518				2,725				1,301				1,217				1,970				1,232				1,605
Trading account profits		6,274				7,017				1,202				5,072				1,378				3,411				2,048
All other income (loss)		495				2,062				321				174				(1,059	)			(368	)			3,090

Total noninterest income		11,634				14,203				4,029				7,605				3,450				5,420				8,045

Total revenue, net of interest expense		15,756				19,351				6,005				9,751				5,619				7,675				10,411

Provision for credit losses		114				913				(133	)			247				547				538				588
Noninterest expense		9,160				8,613				4,790				4,370				3,595				3,640				3,920

Income before income taxes		6,482				9,825				1,348				5,134				1,477				3,497				5,903
Income tax expense ⁽¹⁾		2,337				3,405				421				1,916				30				1,246				2,000

Net income	$	4,145			$	6,420			$	927			$	3,218			$	1,447			$	2,251			$	3,903


Return on average equity		15.46		%		27.09		%		7.00		%		23.70		%		11.14		%		17.57		%		31.52		%
Efficiency ratio ⁽¹⁾		58.14				44.51				79.75				44.83				63.98				47.42				37.66

Sales and trading revenue
Fixed income, currency and commodities	$	7,831			$	7,450			$	2,316			$	5,515			$	1,270			$	4,004			$	2,682
Equity income		2,382				2,687				852				1,530				950				1,265				1,198

Total sales and trading revenue ⁽²⁾	$	10,213			$	10,137			$	3,168			$	7,045			$	2,220			$	5,269			$	3,880


Balance sheet

Average
Total trading-related assets⁽³⁾	$	511,358			$	521,558			$	513,204			$	509,492			$	494,001			$	496,326			$	504,861
Total loans and leases		97,456				118,940				95,902				99,027				99,635				105,995				116,513
Total market-based earning assets		524,054				483,086				520,825				527,319				490,561				468,838				476,431
Total earning assets⁽⁴⁾		617,133				598,681				610,791				623,545				585,396				570,601				587,112
Total assets⁽⁴⁾		778,439				807,940				774,792				782,126				746,564				754,344				780,910
Total deposits		108,664				103,325				113,165				104,113				108,638				104,228				102,650
Allocated equity		54,080				47,792				53,117				55,053				51,523				50,844				49,670

Period end
Total trading-related assets⁽³⁾	$	472,079			$	436,002			$	472,079			$	441,087			$	411,562			$	448,821			$	436,002
Total loans and leases		95,647				108,320				95,647				95,588				95,930				101,730				108,320
Total market-based earning assets		462,484				401,164				462,484				440,305				404,315				418,756				401,164
Total earning assets ⁽⁴⁾		549,911				506,184				549,911				533,845				501,877				516,156				506,184
Total assets⁽⁴⁾		712,219				695,735				712,219				690,772				653,802				703,404				695,735
Total deposits		106,091				104,124				106,091				105,117				102,211				98,704				104,124

Trading-related assets (average)
Trading account securities	$	204,072			$	204,509			$	204,142			$	204,001			$	200,917			$	198,732			$	191,014
Reverse repurchases		186,618				162,216				184,146				189,118				173,574				155,608				160,630
Securities borrowed		56,100				45,950				57,309				54,878				53,092				53,694				51,296
Derivative assets		64,568				108,883				67,607				61,495				66,418				88,292				101,921

Total trading-related assets ⁽³⁾	$	511,358			$	521,558			$	513,204			$	509,492			$	494,001			$	496,326			$	504,861



(1) Fully taxable-equivalent basis
(2) Sales and trading revenue represents total Global Banking & Markets revenue, net of interest expense as adjusted by the following items:
Total Global Banking & Markets revenue, net of interest expense	$	*15,756*			$	19,351			$	*6,005*			$	9,751			$	5,619			$	7,675			$	10,411
Total Global Banking revenue, net of interest expense		*(4,683*	)			(7,959	)			*(2,391*	)			(2,292	)			(2,173	)			(1,885	)			(5,928	)
Investment banking income		*(1,192*	)			(1,305	)			*(596*	)			(596	)			(908	)			(635	)			(820	)
Fair value option net interest income		*(82*	)			(141	)			*(35*	)			(47	)			(55	)			(66	)			(73	)
Revenue (loss) shared		*414*				139				*185*				229				(263	)			180				269
Loss on sale of prime brokerage business		—				52				—				—				—				—				21

Total sales and trading revenue	$	*10,213*			$	10,137			$	*3,168*			$	7,045			$	2,220			$	5,269			$	3,880

(3)

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

(4)

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.


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

Bank of America Corporation and Subsidiaries

Global Banking & Markets Key Indicators

(Dollars in millions)


	Six Months Ended June 30								Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
	2010				2009				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
Investment banking income⁽¹⁾
Advisory ⁽¹⁾	$	409			$	621			$	242			$	167			$	360			$	186			$	292
Debt issuance		1,600				1,599				827				773				805				720				944
Equity issuance		662				665				318				344				893				406				508

		2,671				2,885				1,387				1,284				2,058				1,312				1,744
Offset for intercompany fees⁽³⁾		(112	)			(184	)			(68	)			(44	)			(462	)			(58	)			(98	)

Total investment banking income	$	2,559			$	2,701			$	1,319			$	1,240			$	1,596			$	1,254			$	1,646


Global Corporate & Investment Banking Key Indicators

Revenue, net of interest expense - by service segment
Business lending	$	1,818			$	1,494			$	870			$	948			$	747			$	602			$	633
Treasury services		1,385				5,217				712				673				721				751				4,494
Investment banking related ⁽⁴⁾		1,475				1,226				807				668				705				550				799

Total revenue, net of interest expense	$	4,678			$	7,937			$	2,389			$	2,289			$	2,173			$	1,903			$	5,926

Average deposit balances
Interest-bearing	$	52,877			$	48,013			$	55,116			$	50,614			$	49,155			$	44,141			$	44,323
Noninterest-bearing		46,798				45,945				49,073				44,497				49,591				51,505				48,372

Total average deposits	$	99,675			$	93,958			$	104,189			$	95,111			$	98,746			$	95,646			$	92,695


Loan spread		1.94		%		1.54		%		1.94		%		1.94		%		1.61		%		1.61		%		1.55		%

Provision for credit losses	$	21			$	862			$	(190	)		$	211			$	295			$	441			$	588

Credit quality ^{(5, 6)}
Reservable utilized criticized exposure	$	7,290			$	11,542			$	7,290			$	9,664			$	10,989			$	11,842			$	11,542
		7.29		%		10.31		%		7.29		%		9.69		%		10.72		%		11.15		%		10.31		%
Nonperforming loans, leases and foreclosed properties	$	905			$	1,273			$	905			$	922			$	1,240			$	1,335			$	1,273
		1.13		%		1.38		%		1.13		%		1.16		%		1.49		%		1.53		%		1.38		%
Average loans and leases by product
Commercial - domestic	$	34,879			$	49,810			$	33,594			$	36,178			$	39,664			$	42,602			$	46,870
Commercial real estate		33				87				31				36				46				55				73
Commercial lease financing		23,472				24,261				23,250				23,696				23,873				24,139				24,207
Commercial - foreign		22,305				25,735				22,705				21,901				22,375				23,764				25,853
Direct/Indirect consumer		1				4				1				2				2				3				3
Other		43				61				42				43				45				55				60

Total average loans and leases	$	80,733			$	99,958			$	79,623			$	81,856			$	86,005			$	90,618			$	97,066

(1)

Represents total investment banking income for the Corporation, including amounts related to Global Banking & Markets of $2.5 billion and $2.7 billion for the six months ended June 30, 2010 and 2009; $1.3 billion and $1.2 billion for the second and first quarters of 2010, and $2.0 billion, $1.2 billion and $1.6 billion for the fourth, third and second quarters of 2009, respectively.

(2)

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

(3)

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

(4)

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

(5)

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.

(6)

Nonperforming loans, leases and foreclosed properties 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.


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

Bank of America Corporation and Subsidiaries

Investment Banking Product Rankings


	Six Months Ended June 30, 2010
	Global			U.S.
	Product Ranking	Market Share		Product Ranking	Market Share
High-yield corporate debt	2	10.8	%	2	15.8	%
Leveraged loans	1	18.3		1	23.5
Mortgage-backed securities	1	17.9		1	20.6
Asset-backed securities	1	14.5		1	19.8
Convertible debt	3	8.9		3	13.2
Common stock underwriting	3	7.1		4	9.4
Investment grade corporate debt	2	6.2		2	15.9
Syndicated loans	2	9.5		1	21.3
Net investment banking revenue	2	7.3		1	12.6
Announced mergers and acquisitions	5	13.4		5	21.1
Equity capital markets	2	7.3		3	10.3
Debt capital markets	3	6.9		1	11.8

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



*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
Convertible debt		Debt capital markets

Excluding self-led deals, global and U.S. leveraged loans, mortgage-backed securities and asset-backed securities rankings were #1. High-yield corporate debt and investment grade corporate debt ranked #2 in the U.S. and globally. Syndicated loans ranked #1 in the U.S. and #2 globally. Convertible debt ranked #3 and common stock underwriting ranked #4 in the U.S. Net investment banking revenue ranked #1 in the U.S. and #2 globally, debt capital markets ranked #2 and equity capital markets ranked #3 in the U.S.


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

Bank of America Corporation and Subsidiaries

Super Senior Collateralized Debt Obligation Exposure

(Dollars in millions)


	June 30, 2010
	Subprime ⁽¹⁾		Retained Positions		Total Subprime		Non- Subprime ⁽²⁾		Total
Unhedged	$	745	$	330	$	1,075	$	307	$	1,382
Hedged⁽³⁾		580		—		580		552		1,132

Total	$	1,325	$	330	$	1,655	$	859	$	2,514

(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)


	June 30, 2010
	Super Senior CDOs				Other Guaranteed Positions				Total
Notional	$	3,668			$	35,235			$	38,903

Mark-to-market or guarantor receivable	$	2,919			$	7,292			$	10,211
Credit valuation adjustment		(2,206	)			(3,783	)			(5,989	)

Total	$	713			$	3,509			$	4,222

Credit valuation adjustment %		76		%		52		%		59		%

(Writedowns) gains during the three months ended June 30, 2010	$	(224	)		$	115			$	(109	)

(Writedowns) gains during the six months ended June 30, 2010		(333	)			154				(179	)

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


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)


	Six Months Ended June 30								Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
	2010				2009				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009				Second Quarter 2009
Net interest income ⁽²⁾	$	2,776			$	2,942			$	1,385			$	1,391			$	1,273			$	1,329			$	1,288
Noninterest income:
Investment and brokerage services		4,391				4,158				2,241				2,150				2,161				2,104				2,028
All other income		1,333				1,024				705				628				1,834				438				646

Total noninterest income		5,724				5,182				2,946				2,778				3,995				2,542				2,674

Total revenue, net of interest expense		8,500				8,124				4,331				4,169				5,268				3,871				3,962

Provision for credit losses		363				492				121				242				53				515				238
Noninterest expense		6,561				6,256				3,370				3,191				3,144				3,003				3,142

Income before income taxes		1,576				1,376				840				736				2,071				353				582
Income tax expense ⁽²⁾		759				486				484				275				774				118				186

Net income	$	817			$	890			$	356			$	461			$	1,297			$	235			$	396

Net interest yield ⁽²⁾		2.44		%		2.64		%		2.36		%		2.51		%		2.28		%		2.53		%		2.52		%
Return on average equity		7.25				10.33				6.08				8.50				26.79				4.95				8.77
Efficiency ratio ⁽²⁾		77.18				77.00				77.77				76.56				59.67				77.60				79.26

Balance sheet
Average
Total loans and leases	$	99,023			$	106,116			$	99,007			$	99,038			$	100,238			$	101,155			$	101,746
Total earning assets ⁽³⁾		229,835				225,060				234,981				224,631				221,870				208,696				205,234
Total assets ⁽³⁾		261,124				258,003				265,908				256,286				252,486				239,349				237,591
Total deposits		226,906				233,049				229,272				224,514				223,055				214,992				215,381
Allocated equity		22,751				17,366				23,515				21,978				19,209				18,802				18,113

Period end
Total loans and leases	$	99,351			$	100,852			$	99,351			$	98,538			$	99,571			$	99,281			$	100,852
Total earning assets ⁽³⁾		228,262				203,878				228,262				229,150				221,114				217,934				203,878
Total assets ⁽³⁾		259,734				233,792				259,734				261,330				254,472				248,469				233,792
Total deposits		229,551				207,580				229,551				230,044				224,839				220,481				207,580

Client assets ⁽⁴⁾
Assets under management	$	603,306			$	705,216			$	603,306			$	750,721			$	749,852			$	739,831			$	705,216
Client brokerage assets ⁽⁵⁾		1,375,264				1,281,014				1,375,264				1,423,576				1,401,063				1,362,423				1,281,014
Assets in custody		131,557				135,987				131,557				144,705				143,870				142,293				135,987
Client deposits		229,553				207,581				229,553				230,041				224,840				220,482				207,581
Less: Client brokerage assets and assets in custody included in assets under management		(347,268	)			(307,619	)			(347,268	)			(360,945	)			(346,682	)			(331,953	)			(307,619	)

Total net client assets	$	1,992,412			$	2,022,179			$	1,992,412			$	2,188,098			$	2,172,943			$	2,133,076			$	2,022,179

(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 Retirement & Philanthropic Services.

(2)

Fully taxable-equivalent basis

(3)

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

(4)

Assets under management and total net client assets include the Columbia Management long-term asset management business through the date of sale on May 1, 2010.

(5)

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.


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 June 30, 2010
	Total			Merrill Lynch Global Wealth Management ⁽¹⁾			U.S. Trust			Retirement & Philanthropic Services			Other ⁽²⁾
Net interest income ⁽³⁾	$	1,385		$	1,089		$	356		$	22		$	(82	)
Noninterest income:
Investment and brokerage services		2,241			1,697			289			221			34
All other income		705			458			11			31			205

Total noninterest income		2,946			2,155			300			252			239

Total revenue, net of interest expense		4,331			3,244			656			274			157

Provision for credit losses		121			35			86			—			—
Noninterest expense		3,370			2,707			443			207			13

Income before income taxes		840			502			127			67			144
Income tax expense⁽³⁾		484			186			47			25			226

Net income (loss)	$	356		$	316		$	80		$	42		$	(82	)


Net interest yield ⁽³⁾		2.36	%		2.27	%		2.86	%		3.26	%		n/m
Return on average equity		6.08			13.85			5.56			n/m			n/m
Efficiency ratio ⁽³⁾		77.77			83.45			67.51			75.56			n/m
Average - total loans and leases	$	99,007		$	49,022		$	49,983			n/m			n/m
Average - total deposits		229,272			185,967			40,778		$	2,500			n/m
Period end - total assets ⁽⁴⁾		259,734			201,410			52,993			2,799			n/m

	Three Months Ended March 31, 2010
	Total			Merrill Lynch Global Wealth Management ⁽¹⁾			U.S. Trust			Retirement & Philanthropic Services			Other ⁽²⁾
Net interest income ⁽³⁾	$	1,391		$	1,106		$	361		$	22		$	(98	)
Noninterest income:
Investment and brokerage services		2,150			1,630			269			219			32
All other income		628			427			11			27			163

Total noninterest income		2,778			2,057			280			246			195

Total revenue, net of interest expense		4,169			3,163			641			268			97

Provision for credit losses		242			58			184			—			—
Noninterest expense		3,191			2,535			400			208			48

Income before income taxes		736			570			57			60			49
Income tax expense⁽³⁾		275			211			21			22			21

Net income	$	461		$	359		$	36		$	38		$	28


Net interest yield ⁽³⁾		2.51	%		2.44	%		2.88	%		3.30	%		n/m
Return on average equity		8.50			15.98			2.72			n/m			n/m
Efficiency ratio ⁽³⁾		76.56			80.14			62.33			77.45			n/m
Average - total loans and leases	$	99,038		$	48,290		$	50,748			n/m			n/m
Average - total deposits		224,514			180,819			41,257		$	2,416			n/m
Period end - total assets ⁽⁴⁾		261,330			207,700			53,467			2,752			n/m

	Three Months Ended June 30, 2009
	Total			Merrill Lynch Global Wealth Management ⁽¹⁾			U.S. Trust			Retirement & Philanthropic Services			Other ⁽²⁾
Net interest income ⁽³⁾	$	1,288		$	1,037		$	330		$	21		$	(100	)
Noninterest income:
Investment and brokerage services		2,028			1,479			286			196			67
All other income		646			494			11			42			99

Total noninterest income		2,674			1,973			297			238			166

Total revenue, net of interest expense		3,962			3,010			627			259			66

Provision for credit losses		238			154			84			—			—
Noninterest expense		3,142			2,496			442			177			27

Income before income taxes		582			360			101			82			39
Income tax expense (benefit) ⁽³⁾		186			133			37			30			(14	)

Net income	$	396		$	227		$	64		$	52		$	53


Net interest yield ⁽³⁾		2.52	%		2.47	%		2.50	%		3.31	%		n/m
Return on average equity		8.77			11.32			5.05			n/m			n/m
Efficiency ratio ⁽³⁾		79.26			82.90			70.42			68.39			n/m
Average - total loans and leases	$	101,746		$	48,866		$	52,876			n/m			n/m
Average - total deposits		215,381			174,330			38,554		$	2,473			n/m
Period end - total assets ⁽⁴⁾		233,792			181,708			56,669			2,289			n/m

(1)

MLGWM includes the impact of migrating customers and their related deposit and loan balances to or from Deposits, Home Loans & Insurance and the ALM portfolio. Subsequent to the date of migration, the associated net interest income, noninterest income and noninterest expense are recorded in the business to which the customers migrated. During the three months ended June 30, 2010 and 2009, total deposits of $555 million and $34.3 billion were migrated from MLGWM to Deposits. During the three months ended March 31, 2010, total deposits of $3.0 billion were migrated to MLGWM from Deposits. In addition, during the three months ended June 30, 2010, March 31, 2010 and June 30, 2009, total loans of $19 million, $598 million and $3.5 billion were migrated from MLGWM to Home Loans & Insurance and the ALM portfolio.

(2)

Other includes the results of BofA Global Capital Management (the former Columbia cash management business) and BlackRock Inc.

(3)

Fully taxable-equivalent basis

(4)

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.


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)


	Six Months Ended June 30, 2010
	Total			Merrill Lynch Global Wealth Management⁽¹⁾			U.S. Trust			Retirement & Philanthropic Services			Other ⁽²⁾
Net interest income ⁽³⁾	$	2,776		$	2,195		$	717		$	44		$	(180	)
Noninterest income:
Investment and brokerage services		4,391			3,327			558			440			66
All other income		1,333			885			22			58			368

Total noninterest income		5,724			4,212			580			498			434

Total revenue, net of interest expense		8,500			6,407			1,297			542			254

Provision for credit losses		363			93			270			—			—
Noninterest expense		6,561			5,242			843			415			61

Income before income taxes		1,576			1,072			184			127			193
Income tax expense ⁽³⁾		759			397			68			47			247

Net income (loss)	$	817		$	675		$	116		$	80		$	(54	)


Net interest yield ⁽³⁾		2.44	%		2.35	%		2.87	%		3.28	%		n/m
Return on average equity		7.25			14.91			4.19			n/m			n/m
Efficiency ratio ⁽³⁾		77.18			81.82			64.95			76.49			n/m
Average - total loans and leases	$	99,023		$	48,658		$	50,364			n/m			n/m
Average - total deposits		226,906			183,407			41,016		$	2,458			n/m
Period end - total assets ⁽⁴⁾		259,734			201,410			52,993			2,799			n/m

	Six Months Ended June 30, 2009
	Total			Merrill Lynch Global Wealth Management⁽¹⁾			U.S. Trust			Retirement & Philanthropic Services			Other ⁽²⁾
Net interest income ⁽³⁾	$	2,942		$	2,416		$	685		$	42		$	(201	)
Noninterest income:
Investment and brokerage services		4,158			3,057			562			392			147
All other income		1,024			894			25			71			34

Total noninterest income		5,182			3,951			587			463			181

Total revenue, net of interest expense		8,124			6,367			1,272			505			(20	)

Provision for credit losses		492			377			115			—			—
Noninterest expense		6,256			4,936			899			362			59

Income (loss) before income taxes		1,376			1,054			258			143			(79	)
Income tax expense (benefit) ⁽³⁾		486			390			95			53			(52	)

Net income (loss)	$	890		$	664		$	163		$	90		$	(27	)


Net interest yield ⁽³⁾		2.64	%		2.59	%		2.60	%		3.54	%		n/m
Return on average equity		10.33			17.58			6.59			n/m			n/m
Efficiency ratio ⁽³⁾		77.00			77.52			70.67			71.67			n/m
Average - total loans and leases	$	106,116		$	53,264		$	52,850			n/m			n/m
Average - total deposits		233,049			191,586			39,027		$	2,413			n/m
Period end - total assets ⁽⁴⁾		233,792			181,708			56,669			2,289			n/m

(1)

MLGWM includes the impact of migrating customers and their related deposit and loan balances to or from Deposits, Home Loans & Insurance and the ALM portfolio. Subsequent to the date of migration, the associated net interest income, noninterest income and noninterest expense are recorded in the business to which the customers migrated. During the six months ended June 30, 2010, total deposits of $2.5 billion migrated to MLGWM from Deposits. During the six months ended June 30, 2009, total deposits of $40.5 billion were migrated from MLGWM to Deposits. In addition during the six months ended June 30, 2010 and 2009, total loans of $617 million and $13.6 billion were migrated from MLGWM to Home Loans & Insurance and the ALM portfolio.

(2)

Other includes the results of BofA Global Capital Management (the former Columbia cash management business) and BlackRock Inc.

(3)

Fully taxable-equivalent basis

(4)

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.


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)


	Six Months Ended June 30						Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
	2010			2009			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
Investment and Brokerage Services
Merrill Lynch Global Wealth Management
Asset management fees	$	1,774		$	1,585		$	911		$	863		$	830		$	802		$	759
Brokerage income		1,553			1,472			786			767			814			782			720

Total	$	3,327		$	3,057		$	1,697		$	1,630		$	1,644		$	1,584		$	1,479

U.S. Trust
Asset management fees	$	550		$	548		$	285		$	265		$	260		$	261		$	281
Brokerage income		8			14			4			4			4			5			5

Total	$	558		$	562		$	289		$	269		$	264		$	266		$	286

Retirement & Philanthropic Services
Asset management fees	$	249		$	234		$	127		$	122		$	121		$	115		$	116
Brokerage income		191			158			94			97			91			87			80

Total	$	440		$	392		$	221		$	219		$	212		$	202		$	196

Other ⁽¹⁾
Asset management fees	$	66		$	147		$	34		$	32		$	41		$	52		$	67
Brokerage income		—			—			—			—			—			—			—

Total	$	66		$	147		$	34		$	32		$	41		$	52		$	67

Total Global Wealth & Investment Management
Asset management fees	$	2,639		$	2,514		$	1,357		$	1,282		$	1,252		$	1,230		$	1,223
Brokerage income		1,752			1,644			884			868			909			874			805

Total investment and brokerage services	$	4,391		$	4,158		$	2,241		$	2,150		$	2,161		$	2,104		$	2,028


Assets Under Management ⁽²⁾
Assets under management by business:
Merrill Lynch Global Wealth Management	$	305,297		$	239,888		$	305,297		$	296,244		$	281,933		$	268,107		$	239,888
U.S. Trust		177,648			180,902			177,648			189,236			187,984			187,964			180,902
Retirement & Philanthropic Services		43,471			39,298			43,471			46,487			47,183			44,437			39,298
BofA Global Capital Management		105,324			331,810			105,324			303,740			320,191			329,103			331,810
Eliminations ⁽³⁾		(28,568	)		(86,811	)		(28,568	)		(85,126	)		(87,574	)		(89,915	)		(86,811	)
International Wealth Management		134			129			134			140			135			135			129

Total assets under management	$	603,306		$	705,216		$	603,306		$	750,721		$	749,852		$	739,831		$	705,216


Assets under management rollforward:
Beginning balance	$	749,852		$	523,159		$	750,721		$	749,852		$	739,831		$	705,216		$	697,371
Merrill Lynch balance, January 1, 2009		—			246,292			—			—			—			—			—
Net flows		(21,869	)		(70,306	)		(7,438	)		(14,431	)		(4,606	)		(17,757	)		(27,071	)
Market valuation/other		(124,677	)		6,071			(139,977	)		15,300			14,627			52,372			34,916

Ending balance	$	603,306		$	705,216		$	603,306		$	750,721		$	749,852		$	739,831		$	705,216


Assets under management mix:
Money market/other	$	147,961		$	215,637		$	147,961		$	158,577		$	179,112		$	193,593		$	215,637
Fixed income		199,793			204,974			199,793			232,109			226,970			221,963			204,974
Equity		255,552			284,605			255,552			360,035			343,770			324,275			284,605

Total assets under management	$	603,306		$	705,216		$	603,306		$	750,721		$	749,852		$	739,831		$	705,216

Assets under management - domestic and foreign:
Domestic	$	591,025		$	685,492		$	591,025		$	728,979		$	728,899		$	717,289		$	685,492
Foreign		12,281			19,724			12,281			21,742			20,953			22,542			19,724

Total assets under management	$	603,306		$	705,216		$	603,306		$	750,721		$	749,852		$	739,831		$	705,216


Client Brokerage Assets	$	1,375,264		$	1,281,014		$	1,375,264		$	1,423,576		$	1,401,063		$	1,362,423		$	1,281,014

GWIM Metrics

Total Financial Advisors & Wealth Advisors		16,571			16,290			16,571			16,465			16,406			16,344			16,290

Client Facing Professionals		19,607			19,299			19,607			19,435			19,355			19,310			19,299

Merrill Lynch Global Wealth Management Metrics

Number of Financial Advisors		15,142			15,008			15,142			15,005			15,006			14,979			15,008

Financial Advisor Productivity ⁽⁴⁾ (in thousands)	$	836		$	819		$	853		$	819		$	839		$	837		$	823

Total client balances ⁽⁵⁾	$	1,410,788		$	1,318,124		$	1,410,788		$	1,454,287		$	1,434,255		$	1,397,302		$	1,318,124

U.S. Trust Metrics

Client Facing Professionals		2,163			2,200			2,163			2,188			2,197			2,190			2,200

Total client balances ⁽⁵⁾	$	285,233		$	296,457		$	285,233		$	308,968		$	310,965		$	309,294		$	296,457

Retirement & Philanthropic Services Metrics

Total client balances ⁽⁵⁾	$	247,674		$	223,689		$	247,674		$	257,991		$	250,891		$	245,831		$	223,689

(1)

Other includes the results of BofA Global Capital Management (the former Columbia cash management business) and BlackRock Inc.

(2)

Assets under management includes the Columbia Management long-term asset management business through the date of sale on May 1, 2010.

(3)

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

(4)

Financial Advisor Productivity is defined as annualized total revenue (excluding residual net interest income) divided by the total number of financial advisors.

(5)

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

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


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⁾

(Dollars in millions)


	Six Months Ended June 30						Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
	2010			2009			2010			2010			2009			2009			2009
Net interest income ⁽²⁾	$	307		$	(3,452	)	$	164		$	143		$	(1,545	)	$	(1,798	)	$	(1,595	)
Noninterest income:
Card income (loss)		—			256			—			—			(431	)		(721	)		(278	)
Equity investment income		2,481			7,302			2,114			367			828			882			5,979
Gains on sales of debt securities		662			2,143			15			647			853			1,442			672
All other income (loss)		906			(1,367	)		783			123			(2,281	)		(2,053	)		(4,110	)

Total noninterest income (loss)		4,049			8,334			2,912			1,137			(1,031	)		(450	)		2,263

Total revenue, net of interest expense		4,356			4,882			3,076			1,280			(2,576	)		(2,248	)		668

Provision for credit losses ⁽³⁾		2,466			(667	)		1,248			1,218			(1,511	)		(1,218	)		—
Merger and restructuring charges		1,029			1,594			508			521			533			594			829
All other noninterest expense		1,706			1,247			564			1,142			790			838			796

Income (loss) before income taxes		(845	)		2,708			756			(1,601	)		(2,388	)		(2,462	)		(957	)
Income tax benefit ⁽²⁾		(1,185	)		(969	)		(357	)		(828	)		(875	)		(925	)		(1,724	)

Net income (loss)	$	340		$	3,677		$	1,113		$	(773	)	$	(1,513	)	$	(1,537	)	$	767


Balance sheet

Average
Total loans and leases	$	256,700		$	170,119		$	257,245		$	256,151		$	154,038		$	155,184		$	165,558
Total deposits		67,291			90,597			64,201			70,417			78,634			95,067			89,527

Period end
Total loans and leases	$	254,615		$	159,977		$	254,615		$	255,851		$	161,153		$	153,880		$	159,977
Total deposits		56,983			84,226			56,983			56,467			65,434			81,449			84,226

(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, the results of First Republic Bank, fair value adjustments related to certain Merrill Lynch structured notes 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, the 2010 periods are presented in accordance with new consolidation guidance. The 2009 periods are presented on a managed basis and include the offsetting securitization impact to present Global Card Services on a managed basis. (See Exhibit A: Non-GAAP Reconciliations—All Other—Reconciliation on page 47).

(2)

Fully taxable-equivalent basis

(3)

The 2010 periods are presented in accordance with the new consolidation guidance. The 2009 periods represent the provision for credit losses for 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.


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)

June 30, 2010

March 31,
2010

June 30, 2010

Book
Value

Unfunded
Commitments

Total

Total

Three months
ended

Six months
ended

Global Principal Investments:

Private Equity Investments

6,217

224

6,441

6,008

913

1,314

Global Real Estate

1,958

222

2,180

2,397

Global Strategic Capital

3,618

1,322

4,940

6,129

(114

)

Legacy/Other Investments

1,193

1,249

1,371

)

Total Global Principal Investments

12,986

1,824

14,810

15,905

814

1,391

Components of Equity Investment Income (Loss)

(Dollars in millions)


	Six Months Ended June 30						Second Quarter 2010		First Quarter 2010			Fourth Quarter 2009		Third Quarter 2009			Second Quarter 2009
	2010			2009			Second Quarter 2010		First Quarter 2010			Fourth Quarter 2009		Third Quarter 2009			Second Quarter 2009
Global Principal Investments	$	1,391		$	(162	)	$	814	$	577		$	671	$	713		$	304
Corporate Investments		(305	)		(262	)		6		(311	)		65		109			10
Strategic and other investments ⁽¹⁾		1,395			7,726			1,294		101			92		60			5,665

Total equity investment income included in All Other		2,481			7,302			2,114		367			828		882			5,979
Total equity investment income (loss) included in the business segments ⁽²⁾		910			(157	)		652		258			1,198		(39	)		(36	)

Total consolidated equity investment income	$	3,391		$	7,145		$	2,766	$	625		$	2,026	$	843		$	5,943

(1)

The three months ended June 30, 2009, includes a $5.3 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.


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)


	June 30 2010		March 31 2010		Increase (Decrease)
Consumer
Residential mortgage ⁽¹⁾	$	245,502	$	245,007	$	495
Home equity		146,274		149,907		(3,633	)
Discontinued real estate ⁽²⁾		13,780		14,211		(431	)
Credit card - domestic		116,739		120,783		(4,044	)
Credit card - foreign		26,391		28,772		(2,381	)
Direct/Indirect consumer⁽³⁾		98,239		99,372		(1,133	)
Other consumer ⁽⁴⁾		3,008		3,022		(14	)

Total consumer		649,933		661,074		(11,141	)


Commercial
Commercial - domestic ⁽⁵⁾		191,458		195,862		(4,404	)
Commercial real estate ⁽⁶⁾		61,587		66,649		(5,062	)
Commercial lease financing		21,392		21,465		(73	)
Commercial - foreign		27,909		26,905		1,004

Total commercial loans excluding loans measured at fair value		302,346		310,881		(8,535	)
Commercial loans measured at fair value ⁽⁷⁾		3,898		4,087		(189	)

Total commercial		306,244		314,968		(8,724	)

Total loans and leases	$	956,177	$	976,042	$	(19,865	)

(1)

Includes foreign residential mortgages of $500 million and $511 million at June 30, 2010 and March 31, 2010.

(2)

Includes $12.4 billion and $12.8 billion of pay option loans, and $1.4 billion of subprime loans at both June 30, 2010 and March 31, 2010. The Corporation no longer originates these products.

(3)

Includes dealer financial services loans of $46.4 billion and $45.3 billion, consumer lending of $15.8 billion and $17.7 billion, domestic securities-based lending margin loans of $14.6 billion and $13.5 billion, student loans of $10.3 billion and $11.1 billion, foreign consumer loans of $7.5 billion and $7.9 billion, and other consumer loans of $3.7 billion and $3.9 billion at June 30, 2010 and March 31, 2010.

(4)

Includes consumer finance loans of $2.1 billion and $2.2 billion, other foreign consumer loans of $733 million and $680 million, and consumer overdrafts of $186 million and $173 million at June 30, 2010 and March 31, 2010.

(5)

Includes small business commercial - domestic loans, including card related products, of $15.9 billion and $16.6 billion at June 30, 2010 and March 31, 2010.

(6)

Includes domestic commercial real estate loans of $59.1 billion and $63.9 billion, and foreign commercial real estate loans of $2.4 billion and $2.7 billion at June 30, 2010 and March 31, 2010.

(7)

Certain commercial loans are accounted for under the fair value option and include commercial - domestic loans of $2.1 billion and $2.5 billion, commercial - foreign loans of $1.7 billion and $1.5 billion, and commercial real estate loans of $114 million and $101 million at June 30, 2010 and March 31, 2010.

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


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)


	Second Quarter 2010
	Total Corporation		Deposits		Global Card Services ⁽¹⁾		Home Loans & Insurance		Global Commercial Banking		Global Banking & Markets		GWIM		All Other ⁽¹⁾
Consumer
Residential mortgage	$	247,715	$	—	$	—	$	—	$	304	$	513	$	35,276	$	211,622
Home equity		148,219		—		—		129,010		923		—		16,531		1,755
Discontinued real estate		13,972		—		—		—		—		—		—		13,972
Credit card - domestic		118,738		—		118,738		—		—		—		—		—
Credit card - foreign		27,706		—		27,706		—		—		—		—		—
Direct/Indirect consumer		98,549		76		17,654		101		45,776		82		24,112		10,748
Other consumer		2,958		132		673		—		—		7		19		2,127

Total consumer		657,857		208		164,771		129,111		47,003		602		75,938		240,224

Commercial
Commercial - domestic		195,144		341		11,562		1,546		104,261		45,019		20,874		11,541
Commercial real estate		64,218		5		193		7		53,721		1,363		2,019		6,910
Commercial lease financing		21,271		—		—		—		1		23,250		30		(2,010	)
Commercial - foreign		28,564		—		1,045		—		1,125		25,668		146		580

Total commercial		309,197		346		12,800		1,553		159,108		95,300		23,069		17,021

Total loans and leases	$	967,054	$	554	$	177,571	$	130,664	$	206,111	$	95,902	$	99,007	$	257,245


	First Quarter 2010
	Total Corporation		Deposits		Global Card Services ⁽¹⁾		Home Loans & Insurance		Global Commercial Banking		Global Banking & Markets		GWIM		All Other⁽¹⁾
Consumer
Residential mortgage	$	243,833	$	—	$	—	$	—	$	323	$	545	$	35,418	$	207,547
Home equity		152,536		—		—		133,018		980		—		16,817		1,721
Discontinued real estate		14,433		—		—		—		—		—		—		14,433
Credit card - domestic		125,353		—		125,348		—		—		—		—		5
Credit card - foreign		29,872		—		29,877		—		—		—		—		(5	)
Direct/Indirect consumer		100,920		81		19,846		87		45,400		67		23,595		11,844
Other consumer		3,002		43		658		—		—		9		23		2,269

Total consumer		669,949		124		175,729		133,105		46,703		621		75,853		237,814

Commercial
Commercial - domestic		202,662		376		12,086		632		108,081		48,081		20,925		12,481
Commercial real estate		68,526		6		178		8		57,917		1,079		2,085		7,253
Commercial lease financing		21,675		—		—		—		1		23,696		31		(2,053	)
Commercial - foreign		28,803		—		1,314		—		1,139		25,550		144		656

Total commercial		321,666		382		13,578		640		167,138		98,406		23,185		18,337

Total loans and leases	$	991,615	$	506	$	189,307	$	133,745	$	213,841	$	99,027	$	99,038	$	256,151


	Second Quarter 2009
	Total Corporation		Deposits		Global Card Services ⁽¹⁾		Home Loans & Insurance		Global Commercial Banking		Global Banking & Markets		GWIM		All Other⁽¹⁾
Consumer
Residential mortgage	$	253,803	$	—	$	—	$	—	$	403	$	650	$	36,212	$	216,538
Home equity		156,599		—		—		129,420		1,051		—		19,556		6,572
Discontinued real estate		18,309		—		—		—		—		—		—		18,309
Credit card - domestic		51,721		—		143,209		—		—		—		—		(91,488	)
Credit card - foreign		18,825		—		29,383		—		—		—		—		(10,558	)
Direct/Indirect consumer		100,302		147		27,167		69		45,052		5		21,294		6,568
Other consumer		3,298		245		634		18		—		12		14		2,375

Total consumer		602,857		392		200,393		129,507		46,506		667		77,076		148,316

Commercial
Commercial - domestic		231,639		202		13,911		1,990		122,107		58,853		22,357		12,219
Commercial real estate		75,559		22		135		12		64,430		2,128		2,242		6,590
Commercial lease financing		22,026		—		—		—		1		24,209		—		(2,184	)
Commercial - foreign		34,024		—		1,369		—		1,311		30,656		71		617

Total commercial		363,248		224		15,415		2,002		187,849		115,846		24,670		17,242

Total loans and leases	$	966,105	$	616	$	215,808	$	131,509	$	234,355	$	116,513	$	101,746	$	165,558

(1)

The 2010 periods are presented in accordance with new consolidation guidance. The 2009 period for Global Card Services is presented on a managed basis with a corresponding offset in All Other.

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


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
	June 30 2010		March 31 2010		Increase (Decrease)			June 30 2010			March 31 2010			Increase (Decrease)
Diversified financials	$	69,026	$	65,169	$	3,857		$	98,177		$	95,737		$	2,440
Real estate⁽⁴⁾		70,195		72,937		(2,742	)		85,714			88,148			(2,434	)
Government and public education		44,636		45,954		(1,318	)		60,598			61,951			(1,353	)
Healthcare equipment and services		30,439		29,249		1,190			47,445			45,843			1,602
Capital goods		22,699		22,593		106			45,412			46,064			(652	)
Retailing		23,590		23,666		(76	)		42,497			42,155			342
Consumer services		27,436		28,881		(1,445	)		42,095			43,864			(1,769	)
Materials		15,471		16,311		(840	)		32,452			32,740			(288	)
Commercial services and supplies		22,117		22,807		(690	)		32,414			32,995			(581	)
Banks		26,430		24,794		1,636			29,375			27,868			1,507
Individuals and trusts		21,997		23,493		(1,496	)		27,679			30,680			(3,001	)
Food, beverage and tobacco		14,285		13,875		410			27,300			26,982			318
Insurance		19,293		19,923		(630	)		26,852			27,202			(350	)
Energy		9,057		10,222		(1,165	)		24,073			24,818			(745	)
Utilities		7,130		8,149		(1,019	)		23,927			25,592			(1,665	)
Media		12,042		13,498		(1,456	)		20,902			22,233			(1,331	)
Transportation		11,869		12,671		(802	)		17,842			18,638			(796	)
Religious and social organizations		8,955		8,936		19			11,206			11,305			(99	)
Technology hardware and equipment		4,260		3,821		439			10,640			10,229			411
Pharmaceuticals and biotechnology		2,527		2,796		(269	)		10,136			10,448			(312	)
Telecommunication services		4,224		3,496		728			9,880			9,564			316
Software and services		3,170		3,111		59			9,158			8,931			227
Consumer durables and apparel		4,173		4,287		(114	)		9,012			9,414			(402	)
Food and staples retailing		4,589		3,438		1,151			7,743			6,501			1,242
Automobiles and components		2,089		2,209		(120	)		5,219			5,187			32
Other		4,360		4,553		(193	)		8,728			9,458			(730	)
Total commercial credit exposure by industry	$	486,059	$	490,839	$	(4,780	)	$	766,476		$	774,547		$	(8,071	)

Net credit default protection purchased on total commitments ⁽⁵⁾								$	(20,042	)	$	(20,600	)

(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 $62.9 billion and $58.1 billion at June 30, 2010 and March 31, 2010. Not reflected in utilized and committed exposure is additional derivative non-cash collateral held of $19.0 billion and $16.0 billion which consists primarily of other marketable securities at June 30, 2010 and March 31, 2010.

(2)

Total commercial utilized and total commercial committed exposure includes loans and letters of credit accounted for under the fair value option and are comprised of loans outstanding of $3.9 billion and $4.1 billion and issued letters of credit at notional value of $1.6 billion at both June 30, 2010 and March 31, 2010. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $26.0 billion and $25.7 billion at June 30, 2010 and March 31, 2010.

(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.


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⁾


	June 30 2010		March 31 2010
Less than or equal to one year	18	%	17	%
Greater than one year and less than or equal to five years	78		81
Greater than five years	4		2
Total net credit default protection	100	%	100	%

(1)

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)


	June 30, 2010					March 31, 2010
Ratings ⁽³⁾	Net Notional			Percent		Net Notional			Percent
AAA	$	—		—	%	$	15		(0.1	)	%
AA		(111	)	0.6			(285	)	1.4
A		(6,684	)	33.3			(6,414	)	31.1
BBB		(8,054	)	40.2			(9,025	)	43.8
BB		(2,331	)	11.6			(2,335	)	11.3
B		(1,536	)	7.7			(774	)	3.9
CCC and below		(924	)	4.6			(1,489	)	7.2
NR⁽⁴⁾		(402	)	2.0			(293	)	1.4
Total net credit default protection	$	(20,042	)	100.0	%	$	(20,600	)	100.0		%

(1)

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 $342 million and $(211) million in net credit default swap index positions at June 30, 2010 and March 31, 2010. 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.


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

Bank of America Corporation and Subsidiaries

Select Western European Countries

(Dollars in millions)


	Loans and Leases, and Loan Commitments		Other Financing ⁽¹⁾		Derivative Assets ⁽²⁾		Securities/ Other Investments ⁽³⁾		Total Cross–border Exposure ⁽⁴⁾		Local Country Exposure Net of Local Liabilities ⁽⁵⁾		Total Foreign Exposure at June 30, 2010		Increase (Decrease) From March 31, 2010			Credit Default Protection ⁽⁶⁾
Country
Greece
Sovereign	$	—	$	—	$	82	$	175	$	257	$	—	$	257	$	64		$	(13	)
Non-sovereign		333		2		68		127		530		—		530		(576	)		—
Total Greece	$	333	$	2	$	150	$	302	$	787	$	—	$	787	$	(512	)	$	(13	)
Ireland
Sovereign	$	10	$	15	$	5	$	—	$	30	$	—	$	30	$	(371	)	$	(30	)
Non-sovereign		1,749		546		609		964		3,868		—		3,868		(924	)		(20	)
Total Ireland	$	1,759	$	561	$	614	$	964	$	3,898	$	—	$	3,898	$	(1,295	)	$	(50	)
Italy
Sovereign	$	—	$	—	$	967	$	14	$	981	$	22	$	1,003	$	(1,332	)	$	(949	)
Non-sovereign		886		39		758		2,352		4,035		1,735		5,770		(1,538	)		(43	)
Total Italy	$	886	$	39	$	1,725	$	2,366	$	5,016	$	1,757	$	6,773	$	(2,870	)	$	(992	)
Portugal
Sovereign	$	—	$	—	$	22	$	5	$	27	$	—	$	27	$	(6	)	$	(34	)
Non-sovereign		60		48		65		204		377		—		377		(321	)		—
Total Portugal	$	60	$	48	$	87	$	209	$	404	$	—	$	404	$	(327	)	$	(34	)
Spain
Sovereign	$	—	$	—	$	22	$	4	$	26	$	71	$	97	$	(25	)	$	(61	)
Non-sovereign		1,118		38		531		1,512		3,199		1,033		4,232		(1,328	)		(6	)
Total Spain	$	1,118	$	38	$	553	$	1,516	$	3,225	$	1,104	$	4,329	$	(1,353	)	$	(67	)

(1)

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

(2)

Derivative assets are carried at fair value and have been reduced by the amount of cash collateral applied of $3.2 billion at June 30, 2010. At June 30, 2010, there were $368 million of other marketable securities collateralizing derivative assets.

(3)

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.

(4)

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.

(5)

(6)

Represents net notional credit default protection purchased to hedge counterparty risk.


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

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 at June 30, 2010		Increase (Decrease) from March 31, 2010
Region/Country
Asia Pacific
China ⁽⁷⁾	$	1,007	$	927	$	654	$	10,010	$	12,598	$	254	$	12,852	$	770
India		2,883		1,676		594		2,442		7,595		—		7,595		(268	)
South Korea		812		1,331		1,071		2,533		5,747		21		5,768		(25	)
Taiwan		412		35		127		573		1,147		779		1,926		1,051
Hong Kong		348		199		157		312		1,016		—		1,016		(85	)
Singapore		285		125		8		498		916		—		916		(107	)
Other Asia Pacific ⁽⁸⁾		229		43		329		451		1,052		—		1,052		47
Total Asia Pacific		5,976		4,336		2,940		16,819		30,071		1,054		31,125		1,383
Latin America
Mexico ⁽⁹⁾		1,727		370		310		3,132		5,539		—		5,539		250
Brazil ⁽¹⁰⁾		539		450		151		1,056		2,196		2,888		5,084		(4,047	)
Chile		971		269		256		166		1,662		2		1,664		236
Other Latin America ⁽⁸⁾		334		357		29		526		1,246		161		1,407		(45	)
Total Latin America		3,571		1,446		746		4,880		10,643		3,051		13,694		(3,606	)
Middle East and Africa
South Africa		329		8		50		837		1,224		—		1,224		18
Bahrain		79		2		18		847		946		—		946		(83	)
United Arab Emirates		790		3		123		23		939		—		939		(24	)
Israel		87		14		48		494		643		1		644		395
Other Middle East and Africa ⁽⁸⁾		325		46		89		122		582		—		582		83
Total Middle East and Africa		1,610		73		328		2,323		4,334		1		4,335		389
Central and Eastern Europe
Turkey		154		291		37		220		702		210		912		321
Russian Federation		60		115		93		275		543		—		543		118
Other Central and Eastern Europe ⁽⁸⁾		49		143		303		621		1,116		31		1,147		(148	)
Total Central and Eastern Europe		263		549		433		1,116		2,361		241		2,602		291
Total emerging market exposure	$	11,420	$	6,404	$	4,447	$	25,138	$	47,409	$	4,347	$	51,756	$	(1,543	)

(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. There was no emerging market exposure included in the portfolio accounted for under the fair value option at June 30, 2010 and March 31, 2010.

(2)

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

(3)

Derivative assets are carried at fair value and have been reduced by the amount of cash collateral applied of $964 million and $704 million at June 30, 2010 and March 31, 2010 . At June 30, 2010 and March 31, 2010, there were $565 million and $428 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 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)

(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 June 30, 2010 was $16.8 billion compared to $18.9 billion at March 31, 2010. Local liabilities at June 30, 2010 in Asia Pacific, Latin America, and Middle East and Africa were $15.6 billion, $952 million and $213 million, respectively, of which $7.5 billion were in Singapore, $2.1 billion in India, $1.9 billion in Hong Kong, $1.5 billion in China, $1.3 billion in South Korea, and $844 million were 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 $2.6 billion in Grupo Financiero Santander, S.A.

(10)

March 31, 2010 included an investment of $5.4 billion in Itaú Unibanco Holding S.A. This investment was sold during the Second quarter of 2010.

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


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

Bank of America Corporation and Subsidiaries

Nonperforming Loans, Leases and Foreclosed Properties

(Dollars in millions)


	June 30 2010			March 31 2010			December 31 2009			September 30 2009			June 30 2009
	June 30 2010			March 31 2010			December 31 2009			September 30 2009			June 30 2009
Residential mortgage	$	18,283		$	17,763		$	16,596		$	15,509		$	13,615
Home equity ⁽¹⁾		2,951			3,335			3,804			3,741			3,826
Discontinued real estate		293			279			249			207			181
Direct/Indirect consumer		85			91			86			92			57
Other consumer		72			89			104			105			93

Total consumer		21,684			21,557			20,839			19,654			17,772


Commercial - domestic ⁽²⁾		4,320			4,407			4,925			4,719			4,204
Commercial real estate		6,704			7,177			7,286			6,943			6,651
Commercial lease financing		140			147			115			170			104
Commercial - foreign		130			150			177			261			250

		11,294			11,881			12,503			12,093			11,209
Small business commercial - domestic		222			179			200			167			200

Total commercial		11,516			12,060			12,703			12,260			11,409

Total nonperforming loans and leases		33,200			33,617			33,542			31,914			29,181
Foreclosed properties		2,501			2,308			2,205			1,911			1,801

Total nonperforming loans, leases and foreclosed properties ^(3, 4, 5)	$	35,701		$	35,925		$	35,747		$	33,825		$	30,982


Federal Housing Administration insured loans past due 90 days or more and still accruing	$	15,338		$	13,589		$	11,680		$	2,325		$	447
Other loans past due 90 days or more and still accruing		6,431			7,834			5,165			5,270			5,956

Total loans past due 90 days or more and still accruing ^{(4, 6)}	$	21,769		$	21,423		$	16,845		$	7,595		$	6,403


Nonperforming loans, leases and foreclosed properties/Total assets⁽⁷⁾		1.51	%		1.54	%		1.61	%		1.51	%		1.38	%
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties⁽⁷⁾		3.74			3.69			3.98			3.72			3.31
Nonperforming loans and leases/Total loans and leases⁽⁷⁾		3.49			3.46			3.75			3.51			3.12

Allowance for credit losses:
Allowance for loan and lease losses ^(1, 8)	$	45,255		$	46,835		$	37,200		$	35,832		$	33,785
Reserve for unfunded lending commitments		1,413			1,521			1,487			1,567			1,992

Total allowance for credit losses	$	46,668		$	48,356		$	38,687		$	37,399		$	35,777


Allowance for loan and lease losses/Total loans and leases ⁽⁷⁾		4.75	%		4.82	%		4.16	%		3.95	%		3.61	%
Allowance for loan and lease losses/Total nonperforming loans and leases		136			139			111			112			116
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total nonperforming loans and leases		120			124			99			101			108

Commercial utilized reservable criticized exposure ⁽⁹⁾	$	50,422		$	55,322		$	58,687		$	60,059		$	57,180
Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure⁽⁹⁾		13.50	%		14.43	%		15.03	%		14.86	%		13.63	%
Total commercial utilized criticized exposure/Commercial utilized exposure ⁽⁹⁾		14.41			15.63			16.30			15.73			14.79

(1)

The 2010 periods are presented in accordance with new consolidation guidance. As a result of the new accounting guidance the first quarter of 2010 includes $448 million in home equity nonperforming loans and $10.8 billion in allowance for loan and lease losses. The 2009 periods have not been restated.

(2)

Excludes small business commercial - domestic loans.

(3)

Balances do not include past due consumer credit card, business card loans, consumer loans secured by real estate where repayments are insured by the Federal Housing Administration and in general, consumer loans not secured by real estate.

(4)

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


(5) Balances do not include the following:	June 30 2010		March 31 2010		December 31 2009		September 30 2009		June 30 2009
Nonperforming loans held-for-sale	$	*4,044*	$	4,953	$	7,347	$	6,212	$	5,866
Nonperforming loans accounted for under the fair value option		15		70		138		305		111
Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010		*403*		301		395		321		362
(6) Balances do not include the following:
Loans accounted for under the fair value option past due 90 days or more and still accruing	$	—	$	49	$	87	$	111	$	—
Loans held-for-sale past due 90 days or more and still accruing		*158*		223		6		6		—

(7)

Ratios do not include loans accounted for under the fair value option of $3.9 billion, $4.1 billion, $4.9 billion, $6.2 billion and $7.0 billion at June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively.

(8)

Balances include the allowance for loan and lease losses on purchased credit-impaired loans of $5.3 billion, $5.0 billion, $3.9 billion, $3.6 billion and $2.3 billion at June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively.

(9)

Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable exposure excludes loans held-for-sale exposure accounted for under the fair value option and other nonreservable exposure both of which are included in total commercial utilized exposure.

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.


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

Bank of America Corporation and Subsidiaries

Nonperforming Loans, Leases and Foreclosed Properties Activity

(Dollars in millions)


	Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
Nonperforming Consumer Loans:
Balance, beginning of period	$	21,557		$	20,839		$	19,654		$	17,772		$	14,592
Additions to nonperforming loans:
Consolidation of VIEs ⁽¹⁾		—			448			—			—			—
New nonaccrual loans		5,033			6,298			6,521			6,696			7,076
Reductions in nonperforming loans:
Paydowns and payoffs		(528	)		(625	)		(371	)		(410	)		(382	)
Returns to performing status ⁽²⁾		(1,816	)		(2,521	)		(2,169	)		(966	)		(804	)
Charge-offs⁽³⁾		(2,231	)		(2,607	)		(2,443	)		(2,829	)		(2,478	)
Transfers to foreclosed properties		(331	)		(275	)		(353	)		(609	)		(232	)

Total net additions to nonperforming loans		127			718			1,185			1,882			3,180

Total nonperforming consumer loans, end of period		21,684			21,557			20,839			19,654			17,772
Foreclosed properties		1,744			1,388			1,428			1,298			1,330

Total nonperforming consumer loans and foreclosed properties, end of period ⁽⁴⁾	$	23,428		$	22,945		$	22,267		$	20,952		$	19,102

Nonperforming Commercial Loans and Leases ⁽⁵⁾:
Balance, beginning of period	$	12,060		$	12,703		$	12,260		$	11,409		$	9,312
Additions to nonperforming loans and leases:
New nonaccrual loans and leases		2,256			1,881			3,662			4,235			4,296
Advances		62			83			130			54			120
Reductions in nonperforming loans and leases:
Paydowns and payoffs		(1,045	)		(771	)		(1,016	)		(892	)		(588	)
Sales		(256	)		(170	)		(283	)		(304	)		(36	)
Return to performing status ⁽⁶⁾		(404	)		(323	)		(220	)		(94	)		(92	)
Charge-offs ⁽⁷⁾		(870	)		(956	)		(1,448	)		(1,773	)		(1,429	)
Transfers to foreclosed properties		(205	)		(319	)		(376	)		(305	)		(174	)
Transfers to loans held-for-sale		(82	)		(68	)		(6	)		(70	)		—

Total net additions to (reductions in) nonperforming loans		(544	)		(643	)		443			851			2,097

Total nonperforming loans and leases, end of period		11,516			12,060			12,703			12,260			11,409
Foreclosed properties		757			920			777			613			471

Total nonperforming commercial loans, leases and foreclosed properties, end of period ⁽⁴⁾	$	12,273		$	12,980		$	13,480		$	12,873		$	11,880

(1)

The 2010 periods are presented in accordance with new consolidation guidance. The 2009 periods have not been restated.

(2)

Consumer loans may be returned 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. Certain troubled debt restructurings are generally classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

(3)

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

(4)

For amounts excluded from nonperforming loans, leases and foreclosed properties, see footnotes to Nonperforming Loans, Leases and Foreclosed Properties table on page 40.

(5)

Includes small business commercial – domestic activity.

(6)

Commercial 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 a sustained period of demonstrated payment performance.

(7)

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.


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

Bank of America Corporation and Subsidiaries

Quarterly Net Charge-offs/Losses and Net Charge-off/Loss Ratios ^{(1, 2)}

(Dollars in millions)


	Second Quarter 2010						First Quarter 2010				Fourth Quarter 2009						Third Quarter 2009						Second Quarter 2009
Net Charge-offs	Amount			Percent			Amount		Percent		Amount			Percent			Amount			Percent			Amount			Percent
Residential mortgage	$	971		1.57		%	$	1,069	1.78	%	$	1,233		2.07		%	$	1,247		2.05		%	$	1,085		1.72		%
Home equity		1,741		4.71				2,397	6.37			1,560		4.11				1,970		5.10				1,839		4.71
Discontinued real estate		19		0.54				21	0.60			14		0.38				37		0.89				35		0.76
Credit card - domestic		3,517		11.88				3,963	12.82			1,546		12.46				1,787		14.25				1,788		13.87
Credit card - foreign		942		13.64				631	8.57			395		7.22				382		7.14				276		5.88
Direct/Indirect consumer		879		3.58				1,109	4.46			1,288		5.17				1,451		5.76				1,475		5.90
Other consumer		73		10.01				58	7.80			114		14.20				118		14.00				99		11.93

Total consumer		8,142		4.96				9,248	5.60			6,150		4.24				6,992		4.73				6,597		4.39

Commercial - domestic ⁽³⁾		179		0.41				286	0.63			637		1.36				773		1.58				536		1.03
Commercial real estate		645		4.03				615	3.64			745		4.15				873		4.67				629		3.34
Commercial lease financing		(3	)	(0.06	)			21	0.40			43		0.79				41		0.72				44		0.81
Commercial - foreign		66		0.98				25	0.37			162		2.30				149		2.05				122		1.54

		887		1.23				947	1.28			1,587		2.05				1,836		2.28				1,331		1.58
Small business commercial - domestic		528		12.94				602	14.21			684		15.16				796		17.45				773		16.69

Total commercial		1,415		1.86				1,549	1.98			2,271		2.78				2,632		3.09				2,104		2.37

Total net charge-offs	$	9,557		3.98			$	10,797	4.44		$	8,421		3.71			$	9,624		4.13			$	8,701		3.64


By Business Segment
Deposits	$	66		47.67		%	$	43	34.73	%	$	97		56.52		%	$	98		57.21		%	$	86		56.10		%
Global Card Services ⁽⁴⁾		5,674		12.82				6,011	12.88			6,487		12.88				7,400		14.07				6,975		12.96
Home Loans & Insurance		1,664		5.11				2,317	7.03			1,502		4.50				1,962		5.87				1,599		4.88
Global Banking & Markets		87		0.38				143	0.61			517		2.18				486		1.94				391		1.44
Global Commercial Banking		958		1.87				1,076	2.04			1,310		2.37				1,453		2.55				1,246		2.13
Global Wealth & Investment Management		115		0.47				119	0.49			211		0.84				285		1.12				172		0.68
All Other ⁽⁴⁾		993		1.55				1,088	1.72			(1,703	)	(4.39	)			(2,060	)	(5.27	)			(1,768	)	(4.28	)

Total net charge-offs	$	9,557		3.98			$	10,797	4.44		$	8,421		3.71			$	9,624		4.13			$	8,701		3.64


Supplemental managed basis data

Credit card - domestic		n/a		n/a				n/a	n/a		$	4,195		12.69		%	$	4,816		13.92		%	$	4,530		12.69		%
Credit card - foreign		n/a		n/a				n/a	n/a			672		8.48				661		8.41				517		7.06

Total credit card managed net losses		n/a		n/a				n/a	n/a		$	4,867		11.88			$	5,477		12.90			$	5,047		11.73

(1)

The 2010 periods are presented in accordance with new consolidation guidance. The 2009 periods have not been restated.

(2)

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

(3)

Excludes small business commercial - domestic loans.

(4)

The 2009 periods for Global Card Services are presented on a managed basis with a corresponding offset in All Other.

n/a = not applicable

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


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

Bank of America Corporation and Subsidiaries

Year-to-Date Net Charge-offs/Losses and Net Charge-off/Loss Ratios^{(1, 2)}

(Dollars in millions)


	Six Months Ended June 30
	2010				2009
Held Basis	Amount		Percent		Amount			Percent
Residential mortgage	$	2,040	1.67	%	$	1,870		1.45		%
Home equity		4,138	5.55			3,520		4.50
Discontinued real estate		40	0.57			50		0.53
Credit card - domestic		7,480	12.36			3,214		11.72
Credit card - foreign		1,573	11.02			462		5.22
Direct/Indirect consumer		1,988	4.02			2,724		5.46
Other consumer		131	8.90			196		11.80

Total consumer		17,390	5.28			12,036		3.96

Commercial - domestic ⁽³⁾		465	0.52			780		0.74
Commercial real estate		1,260	3.83			1,084		2.96
Commercial lease financing		18	0.17			111		1.02
Commercial - foreign		91	0.68			226		1.39

		1,834	1.26			2,201		1.30
Small business commercial - domestic		1,130	13.59			1,406		15.07

Total commercial		2,964	1.92			3,607		2.02

Total net charge-offs	$	20,354	4.21		$	15,643		3.24


By Business Segment
Deposits	$	109	41.53	%	$	172		47.15		%
Global Card Services ⁽⁴⁾		11,685	12.85			12,251		11.24
Home Loans & Insurance		3,981	6.07			3,090		4.85
Global Banking & Markets		230	0.50			607		1.10
Global Commercial Banking		2,034	1.95			2,299		1.97
Global Wealth & Investment Management		234	0.48			334		0.64
All Other ⁽⁴⁾		2,081	1.64			(3,110	)	(3.69	)

Total net charge-offs	$	20,354	4.21		$	15,643		3.24


Supplemental managed basis data

Credit card - domestic		n/a	n/a		$	7,951		10.91		%
Credit card - foreign		n/a	n/a			890		6.29

Total credit card managed net losses		n/a	n/a		$	8,841		10.16

(1)

The 2010 period is presented in accordance with new consolidation guidance. The 2009 period has not been restated.

(2)

(3)

Excludes small business commercial - domestic loans.

(4)

The 2009 period for Global Card Services is presented on a managed basis with a corresponding offset in All Other.

n/a - not applicable

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.


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

Bank of America Corporation and Subsidiaries

Allocation of the Allowance for Credit Losses by Product Type

(Dollars in millions)


		June 30, 2010						March 31, 2010							June 30, 2009
Allowance for loan and lease losses ⁽¹⁾		Amount	Percent of Total		Percent of Loans and Leases Outstanding ⁽²⁾			Amount	Percent of Total			Percent of Loans and Leases Outstanding ⁽²⁾			Amount	Percent of Total			Percent of Loans and Leases Outstanding ⁽²⁾
Residential mortgage	$	4,818	10.65	%	1.96	%	$	4,683	10.00		%	1.91	%	$	4,119	12.19		%	1.67	%
Home equity		12,880	28.46		8.81			12,178	26.00			8.12			8,664	25.64			5.59
Discontinued real estate		1,140	2.52		8.27			1,110	2.37			7.81			398	1.18			2.28
Credit card - domestic		12,384	27.36		10.61			13,703	29.26			11.34			5,153	15.25			10.53
Credit card - foreign		2,197	4.85		8.32			2,394	5.11			8.32			1,320	3.91			6.46
Direct/Indirect consumer		2,929	6.47		2.98			3,395	7.25			3.42			5,369	15.89			5.41
Other consumer		182	0.41		6.08			191	0.41			6.35			210	0.63			6.22

Total consumer		36,530	80.72		5.62			37,654	80.40			5.70			25,233	74.69			4.27

Commercial - domestic ⁽³⁾		4,495	9.93		2.35			4,956	10.58			2.53			5,486	16.24			2.52
Commercial real estate		3,593	7.94		5.83			3,569	7.62			5.36			2,396	7.09			3.19
Commercial lease financing		269	0.60		1.26			278	0.59			1.30			255	0.75			1.14
Commercial - foreign		368	0.81		1.32			378	0.81			1.41			415	1.23			1.39

Total commercial ⁽⁴⁾		8,725	19.28		2.89			9,181	19.60			2.95			8,552	25.31			2.48

Allowance for loan and lease losses		45,255	100.00	%	4.75			46,835	100.00	%		4.82			33,785	100.00	%		3.61

Reserve for unfunded lending commitments		1,413						1,521							1,992

Allowance for credit losses	$	46,668					$	48,356						$	35,777

(1)

The 2010 periods are presented in accordance with new consolidation guidance. The 2009 period has not been restated.

(2)

Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option for each loan and lease category. Loans accounted for under the fair value option include commercial—domestic loans of $2.1 billion, $2.5 billion and $4.4 billion, commercial—foreign loans of $1.7 billion, $1.5 billion and $2.5 billion, and commercial real estate loans of $114 million, $101 million and $123 million at June 30, 2010, March 31, 2010 and June 30, 2009.

(3)

Includes allowance for small business commercial—domestic loans of $2.0 billion, $2.1 billion and $2.8 billion at June 30, 2010, March 31, 2010, and June 30, 2009.

(4)

Includes allowance for loan and lease losses for impaired commercial loans of $732 million, $934 million and $1.6 billion at June 30, 2010, March 31, 2010 and June 30, 2009.

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


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

Exhibit A: Non-GAAP Reconciliations

Bank of America Corporation and Subsidiaries

Reconciliation to GAAP Financial Measures

(Dollars in millions, shares in thousands)

The Corporation evaluates its business based upon a fully taxable-equivalent basis which is a non-GAAP measure. Total revenue, net of interest expense, includes net interest income on a fully taxable-equivalent basis and noninterest income. The adjustment of net interest income to a fully taxable-equivalent basis results in a corresponding increase in income tax expense. The Corporation also evaluates its business based upon ratios that utilize tangible equity which is a non-GAAP measure. Return on average tangible common shareholders’ equity measures the Corporation’s earnings contribution as a percentage of common shareholders’ equity plus any Common Equivalent Securities less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible shareholders’ equity measures the Corporation’s earnings contribution as a percentage of average shareholders’ equity reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. The tangible common equity ratio represents common shareholders’ equity plus any 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. The tangible equity ratio represents total 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 tax liabilities. Tangible book value per common share represents ending common shareholders’ equity plus any 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 any common shares issued upon assumed conversion of common equivalent shares. 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 June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009 and the six months ended June 30, 2010 and 2009.


	Six Months Ended June 30						Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009
	2010			2009			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009			Second Quarter 2009

Reconciliation of net interest income to net interest income fully taxable-equivalent basis

Net interest income	$	26,649		$	24,127		$	12,900		$	13,749		$	11,559		$	11,423		$	11,630
Fully taxable-equivalent adjustment		618			634			297			321			337			330			312

Net interest income fully taxable-equivalent basis	$	27,267		$	24,761		$	13,197		$	14,070		$	11,896		$	11,753		$	11,942


Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense fully taxable-equivalent basis

Total revenue, net of interest expense	$	61,122		$	68,532		$	29,153		$	31,969		$	25,076		$	26,035		$	32,774
Fully taxable-equivalent adjustment		618			634			297			321			337			330			312

Total revenue, net of interest expense fully taxable-equivalent basis	$	61,740		$	69,166		$	29,450		$	32,290		$	25,413		$	26,365		$	33,086


Reconciliation of income tax expense (benefit) to income tax expense (benefit) fully taxable-equivalent basis

Income tax expense (benefit)	$	1,879		$	284		$	672		$	1,207		$	(1,225	)	$	(975	)	$	(845	)
Fully taxable-equivalent adjustment		618			634			297			321			337			330			312

Income tax expense (benefit) fully taxable-equivalent basis	$	2,497		$	918		$	969		$	1,528		$	(888	)	$	(645	)	$	(533	)


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

Common shareholders’ equity	$	207,966		$	167,153		$	215,468		$	200,380		$	197,123		$	197,230		$	173,497
Common Equivalent Securities		5,848			—			—			11,760			4,811			—			—
Goodwill		(86,216	)		(85,956	)		(86,099	)		(86,334	)		(86,053	)		(86,170	)		(87,314	)
Intangible assets (excluding MSRs)		(11,559	)		(11,539	)		(11,216	)		(11,906	)		(12,556	)		(13,223	)		(13,595	)
Related deferred tax liabilities		3,446			3,946			3,395			3,497			3,712			3,725			3,916

Tangible common shareholders’ equity	$	119,485		$	73,604		$	121,548		$	117,397		$	107,037		$	101,562		$	76,504


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

Shareholders’ equity	$	231,686		$	235,855		$	233,461		$	229,891		$	250,599		$	255,983		$	242,867
Goodwill		(86,216	)		(85,956	)		(86,099	)		(86,334	)		(86,053	)		(86,170	)		(87,314	)
Intangible assets (excluding MSRs)		(11,559	)		(11,539	)		(11,216	)		(11,906	)		(12,556	)		(13,223	)		(13,595	)
Related deferred tax liabilities		3,446			3,946			3,395			3,497			3,712			3,725			3,916

Tangible shareholders’ equity	$	137,357		$	142,306		$	139,541		$	135,148		$	155,702		$	160,315		$	145,874


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

Common shareholders’ equity	$	215,181		$	196,492		$	215,181		$	211,859		$	194,236		$	198,843		$	196,492
Common Equivalent Securities		—			—			—			—			19,244			—			—
Goodwill		(85,801	)		(86,246	)		(85,801	)		(86,305	)		(86,314	)		(86,009	)		(86,246	)
Intangible assets (excluding MSRs)		(10,796	)		(13,245	)		(10,796	)		(11,548	)		(12,026	)		(12,715	)		(13,245	)
Related deferred tax liabilities		3,215			3,843			3,215			3,396			3,498			3,714			3,843

Tangible common shareholders’ equity	$	121,799		$	100,844		$	121,799		$	117,402		$	118,638		$	103,833		$	100,844


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

Shareholders’ equity	$	233,174		$	255,152		$	233,174		$	229,823		$	231,444		$	257,683		$	255,152
Goodwill		(85,801	)		(86,246	)		(85,801	)		(86,305	)		(86,314	)		(86,009	)		(86,246	)
Intangible assets (excluding MSRs)		(10,796	)		(13,245	)		(10,796	)		(11,548	)		(12,026	)		(12,715	)		(13,245	)
Related deferred tax liabilities		3,215			3,843			3,215			3,396			3,498			3,714			3,843

Tangible shareholders’ equity	$	139,792		$	159,504		$	139,792		$	135,366		$	136,602		$	162,673		$	159,504


Reconciliation of period end assets to period end tangible assets

Assets	$	2,363,878		$	2,254,394		$	2,363,878		$	2,338,700		$	2,223,299		$	2,251,043		$	2,254,394
Goodwill		(85,801	)		(86,246	)		(85,801	)		(86,305	)		(86,314	)		(86,009	)		(86,246	)
Intangible assets (excluding MSRs)		(10,796	)		(13,245	)		(10,796	)		(11,548	)		(12,026	)		(12,715	)		(13,245	)
Related deferred tax liabilities		3,215			3,843			3,215			3,396			3,498			3,714			3,843

Tangible assets	$	2,270,496		$	2,158,746		$	2,270,496		$	2,244,243		$	2,128,457		$	2,156,033		$	2,158,746


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

Common shares outstanding		10,033,017			8,651,459			10,033,017			10,032,001			8,650,244			8,650,314			8,651,459
Assumed conversion of common equivalent shares ⁽¹⁾		—			—			—			—			1,286,000			—			—

Tangible common shares outstanding		10,033,017			8,651,459			10,033,017			10,032,001			9,936,244			8,650,314			8,651,459

(1)

On February 24, 2010, the common equivalent shares converted into common shares.

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


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

Exhibit A: Non-GAAP Reconciliations - continued

Bank of America Corporation and Subsidiaries

Global Card Services - Reconciliation

(Dollars in millions)


	Six Months Ended June 30, 2009									Fourth Quarter 2009
	Managed Basis ⁽¹⁾			Securitization Impact ⁽²⁾			Held Basis			Managed Basis ⁽¹⁾			Securitization Impact ⁽²⁾			Held Basis
Net interest income ⁽³⁾	$	10,174		$	(4,749	)	$	5,425		$	4,878		$	(2,226	)	$	2,652
Noninterest income:
Card income		4,277			(348	)		3,929			2,093			(679	)		1,414
All other income		258			(67	)		191			115			(21	)		94

Total noninterest income		4,535			(415	)		4,120			2,208			(700	)		1,508

Total revenue, net of interest expense		14,709			(5,164	)		9,545			7,086			(2,926	)		4,160

Provision for credit losses		15,876			(5,164	)		10,712			6,854			(2,926	)		3,928
Noninterest expense		3,982			—			3,982			1,899			—			1,899

Loss before income taxes		(5,149	)		—			(5,149	)		(1,667	)		—			(1,667	)
Income tax benefit⁽³⁾		(1,806	)		—			(1,806	)		(659	)		—			(659	)

Net loss	$	(3,343	)	$	—		$	(3,343	)	$	(1,008	)	$	—		$	(1,008	)


Balance sheet
Average - total loans and leases	$	219,888		$	(102,357	)	$	117,531		$	199,756		$	(91,705	)	$	108,051
Period end - total loans and leases		211,325			(100,438	)		110,887			196,289			(89,715	)		106,574

	Third Quarter 2009									Second Quarter 2009
	Managed Basis ⁽¹⁾			Securitization Impact ⁽²⁾			Held Basis			Managed Basis ⁽¹⁾			Securitization Impact ⁽²⁾			Held Basis
Net interest income ⁽³⁾	$	4,920		$	(2,275	)	$	2,645		$	4,976		$	(2,358	)	$	2,618
Noninterest income:
Card income		2,183			(1,007	)		1,176			2,163			(592	)		1,571
All other income		147			(26	)		121			123			(33	)		90

Total noninterest income		2,330			(1,033	)		1,297			2,286			(625	)		1,661

Total revenue, net of interest expense		7,250			(3,308	)		3,942			7,262			(2,983	)		4,279

Provision for credit losses		6,823			(3,308	)		3,515			7,655			(2,983	)		4,672
Noninterest expense		1,936			—			1,936			1,936			—			1,936

Loss before income taxes		(1,509	)		—			(1,509	)		(2,329	)		—			(2,329	)
Income tax benefit⁽³⁾		(541	)		—			(541	)		(743	)		—			(743	)

Net loss	$	(968	)	$	—		$	(968	)	$	(1,586	)	$	—		$	(1,586	)


Balance sheet
Average - total loans and leases	$	208,650		$	(97,520	)	$	111,130		$	215,808		$	(102,046	)	$	113,762
Period end - total loans and leases		202,860			(94,328	)		108,532			211,325			(100,438	)		110,887

(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.

In 2010, the Corporation reports Global Card Services results in accordance with new consolidation guidance. The 2009 periods are presented on a managed basis. 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. In prior periods, loan securitization removed loans from the Consolidated Balance Sheet through the sale of loans to an off-balance sheet qualifying special purpose entity which was excluded from the Corporation’s Consolidated Financial Statements in accordance with GAAP applicable at the time.

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. In prior periods, Global Card Services managed income statement line items differed from a held basis reported as follows:

•

Managed net interest income included 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 included 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 included the impact of adjustments to the interest-only strips that were recorded in card income as management managed this impact within Global Card Services.

•

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


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

Exhibit A: Non-GAAP Reconciliations - continued

Bank of America Corporation and Subsidiaries

All Other - Reconciliation

(Dollars in millions)


	Six Months Ended June 30, 2009								Fourth Quarter 2009
	Reported Basis⁽¹⁾			Securitization Offset⁽²⁾		As Adjusted			Reported Basis⁽¹⁾			Securitization Offset⁽²⁾		As Adjusted
Net interest income ⁽³⁾	$	(3,452	)	$	4,749	$	1,297		$	(1,545	)	$	2,226	$	681
Noninterest income:
Card income (loss)		256			348		604			(431	)		679		248
Equity investment income		7,302			—		7,302			828			—		828
Gains on sales of debt securities		2,143			—		2,143			853			—		853
All other loss		(1,367	)		67		(1,300	)		(2,281	)		21		(2,260	)

Total noninterest income (loss)		8,334			415		8,749			(1,031	)		700		(331	)

Total revenue, net of interest expense		4,882			5,164		10,046			(2,576	)		2,926		350


Provision for credit losses		(667	)		5,164		4,497			(1,511	)		2,926		1,415
Merger and restructuring charges		1,594			—		1,594			533			—		533
All other noninterest expense		1,247			—		1,247			790			—		790

Income (loss) before income taxes		2,708			—		2,708			(2,388	)		—		(2,388	)
Income tax benefit⁽³⁾		(969	)		—		(969	)		(875	)		—		(875	)

Net income (loss)	$	3,677		$	—	$	3,677		$	(1,513	)	$	—	$	(1,513	)


Balance sheet
Average - total loans and leases	$	170,119		$	102,357	$	272,476		$	154,038		$	91,705	$	245,743
Period end - total loans and leases		159,977			100,438		260,415			161,153			89,715		250,868

	Third Quarter 2009								Second Quarter 2009
	Reported Basis⁽¹⁾			Securitization Offset⁽²⁾		As Adjusted			Reported Basis⁽¹⁾			Securitization Offset⁽²⁾		As Adjusted
Net interest income ⁽³⁾	$	(1,798	)	$	2,275	$	477		$	(1,595	)	$	2,358	$	763
Noninterest income:
Card income (loss)		(721	)		1,007		286			(278	)		592		314
Equity investment income		882			—		882			5,979			—		5,979
Gains on sales of debt securities		1,442			—		1,442			672			—		672
All other income (loss)		(2,053	)		26		(2,027	)		(4,110	)		33		(4,077	)

Total noninterest income (loss)		(450	)		1,033		583			2,263			625		2,888

Total revenue, net of interest expense		(2,248	)		3,308		1,060			668			2,983		3,651

Provision for credit losses		(1,218	)		3,308		2,090			—			2,983		2,983
Merger and restructuring charges		594			—		594			829			—		829
All other noninterest expense		838			—		838			796			—		796

Loss before income taxes		(2,462	)		—		(2,462	)		(957	)		—		(957	)
Income tax benefit⁽³⁾		(925	)		—		(925	)		(1,724	)		—		(1,724	)

Net income (loss)	$	(1,537	)	$	—	$	(1,537	)	$	767		$	—	$	767


Balance sheet
Average - total loans and leases	$	155,184		$	97,520	$	252,704		$	165,558		$	102,046	$	267,604
Period end - total loans and leases		153,880			94,328		248,208			159,977			100,438		260,415

(1)

The 2010 periods are presented in accordance with new consolidation guidance. The 2009 periods are presented on a managed basis. 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.


This information is preliminary and based on company data available at the time of the presentation.		47

Appendix: Selected Slides from the

Second Quarter 2010 Earnings Release Presentation


This information is preliminary and based on company data available at the time of the presentation.		48

Exhibit 99.3A

LOGO

Key Takeaways

• Making good progress on core franchise

• Credit quality trends continue to improve

• Minimizing risk and strengthening capital

– Generated $3.1 B in 2Q earnings

– Sold non-core assets of $13 B thus far in 2010

– Reduced legacy capital markets exposures by $9 B in 2010

– Strengthened underwriting practices

– Reduced risk on assets held that are most likely to be impacted by regulatory reform

• Managing headwinds effectively

– Concerns on global economy

– Weak loan demand

– Sustained low rate environment

– Regulatory reform costs

LOGO

Large Items in 2Q10

• Asset sales

– Itaú Unibanco pre-tax gain of $1.2 B in equity investment income

– Columbia long-term business sale resulted in an approximate $0.8 B reduction to goodwill and intangibles

– Sale of MasterCard position resulted in a $0.4 B pre-tax gain in equity investment income

– Santander

– Mexico pre-tax loss of $0.4 B

• Fair value adjustment on Merrill Lynch structured notes resulted in a gain of $1.2 B in other income

• Recorded dividend from CCB ownership of $0.5 B in equity investment income

• UK payroll tax resulted in increased personnel expense of $0.4 B

• Cost of reps and warranties in mortgage banking income increased from $0.5 B to $1.2 B in 2Q

LOGO

Financial Highlights

• Revenue of $29.5 B down 9% from 1Q10 and down 18% from 2Q09 on a managed basis

– Net interest income continues to be pressured by lack of loan demand, down $873 M to $13.2 B

– Sales and trading revenue declined $3.9 B including write-downs on legacy assets of $179 M

– Fair value adjustment on Merrill Lynch structured notes resulted in 2Q10 gain of $1.2 B, 1Q10 gain of $226 M, and 2Q09 loss of $3.6 B

• Expense of $17.3 B down 3% from 1Q10 but up 1% from 2Q09

– 2Q10 expenses include $425 M related to UK payroll tax

– 1Q10 expenses included $758 M for retirement eligible grants, and higher litigation expenses

• Credit quality trends continue to improve

– Net charge-offs of $9.6 B declined $1.2 B from 1Q10

– Nonperforming loans, leases and foreclosed properties decreased compared to 1Q10

– Commercial reservable criticized levels down for third straight quarter

– 30+ day delinquencies in credit card declined for 5th consecutive quarter

– Provision expense of $8.1 B declined $1.7 B or 17% from 1Q10 and $8.3 B or 50% from 2Q09 on a managed basis

– Provision expense was $1.45 B less than charge-offs while 1Q10 provision expense was $992 M less than net charge-offs, resulting in a reduction in the reserve for credit losses in both quarters

• Capital and liquidity continue to strengthen

– Tier 1 capital ratio of 10.67%

– Tier 1 common ratio of 8.01%

– Tangible common equity ratio of 5.36%

– Tangible book value per share increased $0.44 from 1Q10 to $12.14

– Global excess liquidity increased roughly $20 B to approximately $290 B

– Allowance for loan and lease losses of $45.3 B covers 4.75% of loans

LOGO

Net Interest Income (continued)

Comments vs. 1Q10

•Average loans, including impact of net charge-offs, declined $29 B compared to 1Q10 •Consumer declines were led by average card receivables of approximately $9 B; average home equity loans declined more than $4 B •Commercial loans declined $13 B, primarily in the domestic and commercial real estate areas

Comments vs. 1Q10

•Average retail deposits grew almost $8 B driven by wealth management customers and a move to more liquid products •Commercial deposits increased $11 B as clients maintain liquidity and high compensating balances •Other deposits, primarily CDs with institutional investors, declined

$8 B

Comments vs. 1Q10

•The growth in average balances of $7 B was primarily due to additions of hedged U.S. treasuries

Average Loans (excel. REsidential Mortgages)

$ millions $1,200 $900 $600 $300 $0

$814 $788 $761 $748 $719

$353 $344 $330 $322 $309

$451 $442 $431 $426 $410

2Q09 3Q09 4Q09 1Q10 2Q10

Managed Consumer loans (excl. residential mortgages)

Commercial loans

Average Deposits

$ millions $1,200 $900 $600 $300 $0

$975 $990 $995 $961 $992

$116 $121 $102 $92 $64

$228 $236 $256 $247 $258

$631 $633 $611 $642 $650

2Q09 3Q09 4Q09 1Q10 2Q10

Retail deposits Commercial deposits Other deposits

Average Discretionary Portfollo (on Balance Sheet)

$ millions $1,200 $900 $600 $300 $0

$509 $506 $516 $555 $562

$255 $264 $279 $311 $314

$254 $242 $237 $244 $248

2Q09 3Q09 4Q09 1Q10 2Q10

Resdential mortgages Investment securities

LOGO

Service Charges

Commentary

•Service charges were fairly flat vs. 1Q10 but down from a year ago as a result of overdraft policies implemented in 4Q09

Expected Regulation E impact:

• Implementation begins in mid-quarter 3Q10 causing a decline in service charges

• Excluding impact of mitigation, service charges for the total company are still expected to move closer to $2 B in 4Q10

Note: Consumer = Deposits, HL&I and GWIM; Commercial = GCB, GBAM and Other.

LOGO

Mortgage Banking Revenue

Commentary Key Mortgage Statistics

•Mortgage banking revenue declined $602 M vs. 1Q10 ($ in B) 2Q10 1Q10 2Q09

– 2Q10 included $1.2 B for reps and warranties, an

increase of $722 M Total Corp Home Loan Originations

– Core production revenue increased $176 M due to First Mortgage $ 71.9 $ 69.5 $ 110.6

higher volumes and margins Home Equity 2.1 2.0 3.7

– Core servicing revenues increased $126 M

– MSR results, net of hedge, were less favorable MSR, Ending Balance $ 14.7 $ 18.8 $ 18.5

compared to 1Q10 Capitalized MSR, bps 86 110 109

• The change in value of the MSR asset was Serviced for Others, EOP $ 1,706 $ 1,717 $ 1,703

effectively hedged

$ in Millions

$3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 ($500) ($1,000) ($1,500)

$2,527 $1,298 $1,652 $1,500 $898

2Q09 3Q09 4Q09 1Q10 2Q10

MSR performance, net of hedge

Core servicing revenue

Rep and Warranty

Core production revenue

Total Mortgage Banking Income

LOGO

Investment and Brokerage Revenue

Excluding the impact of reduced fees from the sale of Columbia Management long-term business sale, asset management and brokerage fees increased $127 million

Commentary Key Wealth Management Statistics

•Investment and brokerage revenue decline of $31 M from 2Q10 1Q10 2Q09

1Q10 reflects reduced fees as a result of the sale of the

Columbia Management long-term business Client Facing Professionals 19,607 19,435 19,299

•Excluding the reduced revenue of $158 M due to the Columbia Financial Advisors 15,142 15,005 15,008

sale, asset management fees increased $74 M reflecting Wealth Advisors 1,429 1,460 1,282

– Higher seasonal tax prep fees Other Client Facing 3,036 2,970 3,009

– Market valuation as lag effect of pricing benefited AUM ($ in Bs) $ 603.3 $ 750.7 $ 705.2

the current quarter fees Net Client Assets ($ in Bs) $ 1,992.4 $ 2,188.1 $ 2,022.2

– Increased flows from Wrap products Active accts in MLGWM 3,081,863 3,142,373 3,221,571

•Brokerage fees increased $53 M primarily due to higher equity Net new $250K+ households in MLGWM 3,726 6,313 (5,574)

transactions driven by volatility, and mutual fund trails

•Client assets declined nearly $200 B primarily related to the

sale of Columbia business and market conditions

$ in Millions

$4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0

$2,994 $1,569 $1,425

$2,948 $1,493 $1,455

$3,014 $1,520 $1,494

$3,025 $1,503 $1,522

$2,994 $1,556 $1,438

2Q09 3Q09 4Q09 1Q10 2Q10

Asset management Brokerage income

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Other Revenue Items

• Equity investment income

– Equity investment income of $2.8 B in 2Q10 compared to $0.6 B in 1Q10 and $5.9 B in 2Q09

– 2Q10 includes $1.2 B pre-tax gain on sale of Itaú Unibanco investment; $0.4 B pre-tax gain from sale of MasterCard position; CCB dividend of $0.5 B; and a pre-tax loss of $0.4 B on the planned sale of the Santander – Mexico investment

– 1Q10 included $0.3 B loss from sale of $3 B discretionary equity securities portfolio

– 2Q09 included $5.3 B pre-tax gain from partial sale of CCB investment

• Gains on sales of debt securities

– Gains on sales of debt securities of $37 M in 2Q10 compared to $734 M in 1Q10 and $632 M in 2Q09 o 2Q10 includes losses on non-agency residential mortgage-backed securities sold as a result of a change in portfolio objectives to focus on capital management and credit risk reduction, which were more than offset by approximately $750 M in gains on sales

• Insurance income

– Insurance income declined $37 M from 1Q10 to $678 M in 2Q10 mainly from lower credit card protection volume

• Other income

– Merrill Lynch structured notes resulted in 2Q10 valuation gain of $1.2 B vs. a gain of $226 M in 1Q10 and $3.6 B loss in 2Q09

– 2Q09 included $3.8 B gain from contribution of merchant services business into a joint venture

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Asset Quality Items of Interest

• Acceleration of $378 M in foreign card charge-offs to align policies on renegotiated loans with the domestic portfolio

• Consumer real estate losses are down from 1Q10 primarily due to lower charge-offs on collateral dependent modified loans as we implemented new guidance in 1Q10

– Home equity decreased $515 M ($128 M in 2Q10 vs. $643 M in 1Q10)

– Residential mortgage decreased $147 M ($14 M 2Q10 vs. $161 M 1Q10)

• We continue to repurchase delinquent FHA government insured loans which masks the continued improvement in our 30+ delinquency trends

– Total consumer 30+ delinquency excluding FHA improved by $3.0 B

($ in Millions)

2Q10 1Q10 4Q09 3Q09 2Q09

FHA insured 30+ delinquencies $ 16,988 $ 14,917 $ 12,241 $ 2,426 $ 447

Change from prior period 2,071 2,676 9,815 1,979 36

30+ Delinquency Amounts

Total consumer as reported 1 35,817 36,752 37,043 27,925 26,771

Total consumer excluding FHA 1 18,829 21,835 24,802 25,499 26,324

Residential mortgages as reported 22,536 20,858 19,360 9,455 7,533

Residential mortgages excluding FHA 5,548 5,941 7,119 7,029 7,086

30+ Delinquency Ratios

Total consumer as reported 1 5.51% 5.56% 5.55% 4.15% 3.88%

Total consumer excluding FHA 1,2 3.21% 3.63% 4.02% 4.04% 4.04%

Residential mortgages as reported 9.18% 8.51% 8.00% 3.96% 3.06%

Residential mortgages excluding FHA 2 2.68% 2.81% 3.26% 3.13% 3.01%

2009 amounts shown on a managed basis.

Ratios exclude purchased credit-impaired loans.

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Credit Quality

Commentary

•Net losses down $1.2 B from 1Q10, or $947 M after

normalizing for charge-offs on collateral dependent

modified loans and foreign credit card losses related to

aligning policies on renegotiated loans with the domestic

portfolio

– Consumer losses continue to improve, down

$813 M after adjusting for collateral dependent

losses and foreign credit card losses related to

aligning policies on renegotiated loans with the

domestic portfolio

– Commercial losses declined $134 M and were

broad-based across industries and borrowers

and driven by improvement in borrower credit

profiles and liquidity

Commentary

•Total allowance coverage now stands at 4.75% of loans

and leases

•Reserve reduction through provision was $1.45 B

– Consumer unsecured reserves were reduced

$1.7 B

– Consumer real estate reserves increased

$928 M, including $328 M for Countrywide

purchased credit-impaired loans

– Commercial reserves decreased $458 M driven

by commercial excluding real estate

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Delinquency and Criticized Trends

Commentary

Core delinquencies declined in 2Q10. Card Services declined for the fifth consecutive quarter. Consumer real estate products continued to show signs of stabilization as core delinquencies improved

Excluding government guaranteed repurchases, consumer 30+ delinquencies declined $3.0 B

Commentary

2Q10 declined $4.9 B, the third straight quarterly decline, driven by paydowns and upgrades as client credit profiles and liquidity improved

Consumer 30 days past due performing

$ in millions $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0

$26,771 $27,925 $37,043 $38,752 $35,617

$447 $2,426 $12,241 $14,917 $16,988

$26,324 $25,499 $24,802 $21,835 $18,829

2Q09 3Q09 4Q09 1Q10 2Q10

Core consumer Government guaranteed repurchases

Commercial utilized reservable criticized exposure

$ in millions $62,000 $60,000 $58,000 $56,000 $54,000 $52,000 $50,000 $48,000 $46,000 $44,000

$57,180 $60,059 $58,687 $55,322 $50,422

2Q09 3Q09 4Q09 1Q10 2Q10

Commercial utilized reservable criticized exposure

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Consumer 30+ Day Delinquency 1

$ in millions

$25,000 $20,000 $15,000 $10,000 $5,000 $0

$2,001 $2,185 $2,185 $2,218 $1,983

$4,019 $3,945 $3,708 $3,370 $2,918

$7,086 $7,029 $7,119 $5,941 $5,548

$7,533 $9,455 $19,360 $20,858 $22,536

$12,969 $12,101 $11,560 $10,125 $8,212

2Q09 3Q09 4Q09 1Q10 2Q10

Residential Mortgage

Residential Mortgage includes FHA insured loans. Excluding FHA insured, residential mortgage continues to improve

Credit Card

Residential Mortgage

Excl. FHA

Direct/Indirect

Home Equity

Residential Mortgage

Residential Mortgage includes FHA

insured loans. Excluding FHA insured,

residential mortgage continues to improve

Credit Card

Residential Mortgage

Excl. FHA

Direct/Indirect

Home Equity

2009 Credit card shown on a managed basis.

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Consumer Net Charge-offs 1

2009 Credit card shown on a managed basis.

in millions

$6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0

$5,047 $5,477 $4,867 $4,594 $4,459

$1,839 $1,970 $1,580 $2,397 $1,741

$1,475 $1,451 $1,288 $1,109 $971

$1,085 $1,247 $1,233 $1,069 $879

2Q09 3Q09 4Q09 1Q10 2Q10

Residential Mortagage Home Equity Credit Card Direct/Indirect

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Focus on Home Equity Loans

Home Equity Portfolio Characteristics

•90% of portfolio are stand-alone originations versus piggy back loans

•$13.0 B legacy Countrywide purchased

Non-purchased credit-impaired second lien

First lien

credit-impaired loan portfolio

•For the non-purchased credit-impaired portfolio:

– $25.7 B are in first lien position

– $107.6 B are second lien positions

• 38% or $40.6 B have CLTVs greater than 100%

– Does not mean that entire second lien position is a loss

in the event of default

– Assuming proceeds of 85% of the collateral value, we

estimate collateral value of $11.5 B available for second

liens

– Additionally, on 94% of second liens with CLTVs greater than 100%, the customer is current

•Allowance on the non-purchased credit-impaired home equity portfolio is $8.7 B

Net charge-offs include $643M in 1Q10 and $128M in 2Q10 on collateral dependent modified loans, and $170M in 1Q10 and $126M in 2Q10 from consolidation of loans under FAS 166/167

Note: Charge-offs do not include Countrywide purchased credit-impaired portfolio as they were considered part of the original purchase accounting.

Loan Balances – End of Period ($ in billions)

$150 $100 $50 $0

$155.1 $152.0 $149.1 $149.9 $146.3

$13.0 $25.7 $107.6

2Q09 3Q09 4Q09 1Q10 2Q10

Column 1 Purchased credit-Impaired First lien

Allowance For Non-Purchased Credit-Impaired Loans ($ in millions)

$10,000 $5,000 $0

$6,756 $7,085 $7,189 $8,263 $8,701

2Q09 3Q09 4Q09 1Q10 2Q10

Net Charge-offs ($ in millions)

$2,500 $2,000 $1,500 $1,000 $500 $0

$1,839 $1,970 $1,560 $2,397 $1,741

2Q09 3Q09 4Q09 1Q10 2Q10

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Results by Business Segment – 2Q10

Global Wealth Global Global

Global Card Home Loans & Investment Commercial Banking &

Total Corp Deposits Services & Insurance Management Banking Markets All Other

Net interest income $ 13,197 $ 2,115 $ 4,439 $ 1,000 $ 1,385 $ 2,118 $ 1,976 $ 164

Card income 2,023 - 1,900 1 26 65 31 -

Service charges 2,576 1,494 - 4 19 528 529 2

Investment and brokerage services 2,994 (3) - - 2,241 7 676 73

Investment banking income 1,319 - - - 78 8 1,301 (68)

Equity investment income 2,766 1 441 4 162 (15) 59 2,114

Trading account profits 1,227 - - - 25 - 1,202 -

Mortgage banking income 898 - - 1,020 3 - 20 (145)

Gains on sales of debt securities 37 - - - (3) - 25 15

All other income 2,413 (3) 81 766 395 67 186 921

Total noninterest income 16,253 1,489 2,422 1,795 2,946 660 4,029 2,912

Total revenue, net of interest expense 29,450 3,604 6,861 2,795 4,331 2,778 6,005 3,076

Total noninterest expense 17,253 2,496 1,799 2,817 3,370 909 4,790 1,072

Pre-tax preprovision earnings 12,197 1,108 5,062 (22) 961 1,869 1,215 2,004

Provision for credit losses 8,105 61 3,795 2,390 121 623 (133) 1,248

Income (loss) before income taxes 4,092 1,047 1,267 (2,412) 840 1,246 1,348 756

Income tax expense (benefit) 969 382 461 (878) 484 456 421 (357)

Net income (loss) $ 3,123 $ 665 $ 806 $ (1,534) $ 356 $ 790 $ 927 $ 1,113

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Consumer Asset Quality Key Indicators

($ in millions) Residential Mortgage Home Equity Discontinued Real Estate

2Q10 1Q10 2Q10 1Q10 2Q10 1Q10

Excluding Excluding Excluding Excluding Excluding Excluding

Purchased Purchased Purchased Purchased Purchased Purchased

Credit Credit Credit Credit Credit Credit

Impaired Impaired Impaired Impaired Impaired Impaired

and FHA and FHA and FHA and FHA and FHA and FHA

As Insured As Insured As Insured As Insured As Insured As Insured

Reported Portfolios 1 Reported Portfolios 1 Reported Portfolios 1 Reported Portfolios 1 Reported Portfolios 1 Reported Portfolios 1

Loans EOP $ 245,502 $ 207,362 $ 245,007 $ 211,545 $ 146,274 $ 133,255 $ 149,907 $ 136,668 $ 13,780 $ 1,452 $ 14,211 $ 1,529

Loans Avg 247,715 210,750 243,833 215,307 148,219 135,126 152,536 139,542 13,972 1,543 14,433 1,921

Net Charge-offs $ 971 $ 971 $ 1,069 $ 1,069 $ 1,741 $ 1,741 $ 2,397 $ 2,397 $ 19 $ 19 $ 21 $ 21

% of avg loans 1.57 % 1.85 % 1.78 % 2.01 % 4.71 % 5.17 % 6.37 % 6.97 % 0.54 % 4.90 % 0.60 % 4.47 %

Allowance for loan losses $ 4,818 $ 4,816 $ 4,683 $ 4,680 $ 12,880 $ 8,701 $ 12,178 $ 8,263 $ 1,140 $ 60 $ 1,110 $ 82

% of Loans 1.96 % 2.32 % 1.91 % 2.21 % 8.81 % 6.53 % 8.12 % 6.05 % 8.27 % 4.13 % 7.81 % 5.37 %

Avg. refreshed (C)LTV 2 78 81 85 85 77 74

90%+ refreshed (C)LTV 2 31 % 32 % 43 % 42 % 24 % 22 %

Avg. refreshed FICO 719 716 723 715 645 652

% below 620 FICO 13 % 12 % 12 % 12 % 43 % 39 %

1 Excludes the purchased credit-impaired loan portfolio acquired from Countrywide and FHA Insured residential mortgage portfolio.

2 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.

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Consumer Asset Quality Indicators (cont’d)

($ in millions)

Credit Card Other 1 Total Consumer

2Q10 1Q10 2Q10 1Q10 2Q10 1Q10

Loans EOP $ 143,130 $ 149,555 $ 101,247 $ 102,394 $ 649,933 $ 661,074

Loans Avg 146,444 155,225 101,507 103,922 657,857 669,949

Net Charge-offs $ 4,459 $ 4,594 $ 952 $ 1,167 $ 8,142 $ 9,248

% of avg loans 12.21% 12.00% 3.77% 4.55% 4.96% 5.60%

Allowance for loan losses $ 14,581 $ 16,097 $ 3,111 $ 3,586 $ 36,530 $ 37,654

% of Loans 10.19% 10.76% 3.07% 3.50% 5.62% 5.70%

• The average refreshed FICO for the U.S. Credit Card portfolio was 697 at 2Q10 compared to 693 at 1Q10

• The percentage below 620 FICO was 15% at 2Q10 compared to 16% at 1Q10

• Excluding the accelerated losses in the foreign credit card portfolio, the loss rate of 12.21% is reduced to 11.17%, or

down 83 bps from 1Q10

Note: EOP = End of Period

Other primarily consists of the Consumer Lending and Dealer Financial Services portfolios.

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Commercial Asset Quality Key Indicators 1

($ in millions) Commercial Real Commercial Lease

Commercial 2 Estate Small Business Financing Total Commercial

2Q10 1Q10 2Q10 1Q10 2Q10 1Q10 2Q10 1Q10 2Q10 1Q10

Loans EOP $ 203,454 $ 206,189 $ 61,587 $ 66,649 $ 15,913 $ 16,578 $ 21,392 $ 21,465 $ 302,346 $ 310,881

Loans Avg 203,280 209,741 64,116 68,435 16,329 17,181 21,271 21,675 304,996 317,032

Net charge-offs $ 245 $ 311 $ 645 $ 615 $ 528 $ 602 $ (3) $ 21 $ 1,415 $ 1,549

% of avg loans 0.48 % 0.59 % 4.03 % 3.64 % 12.94 % 14.21 % (0.06) % 0.40 % 1.86 % 1.98 %

90+ Performing DPD 3 $ 179 $ 203 $ 50 $ 80 $ 463 $ 573 $ 24 $ 24 $ 716 $ 880

% of Loans 3 0.09 % 0.10 % 0.08 % 0.12 % 2.91 % 3.45 % 0.11 % 0.11 % 0.24 % 0.28 %

Nonperforming loans 3 $ 4,450 $ 4,557 $ 6,704 $ 7,177 $ 222 $ 179 $ 140 $ 147 $ 11,516 $ 12,060

% of Loans 3 2.19 % 2.21 % 10.88 % 10.77 % 1.40 % 1.08 % 0.65 % 0.68 % 3.81 % 3.88 %

Allowance for loan losses $ 2,817 $ 3,186 $ 3,593 $ 3,569 $ 2,045 $ 2,148 $ 269 $ 278 $ 8,725 $ 9,181

% of Loans 1.37 % 1.55 % 5.83 % 5.36 % 12.85 % 12.95 % 1.26 % 1.30 % 2.89 % 2.95 %

Reservable Criticized

Utilized Exposure 3,4 $ 24,203 $ 28,161 $ 22,918 $ 23,340 $ 1,467 $ 1,643 $ 1,834 $ 2,178 $ 50,422 $ 55,322

% of Total Exposure 3,4 8.95 % 10.26 % 34.87 % 32.87 % 9.19 % 9.88 % 8.57 % 10.15 % 13.50 % 14.43 %

1 Includes conforming adjustments and represents the impact of securitizations utilizing actual bond costs. This is different from the business segment view which utilizes funds transfer pricing methodologies.

Includes commercial domestic and commercial foreign.

Excludes the Merrill Lynch purchased credit-impaired loan portfolio.

Excludes derivatives, foreclosed property, assets held for sale, debt securities and FVO loans.