Supplemental Information

EX-99.3 4 dex993.htm SUPPLEMENTAL INFORMATION Supplemental Information

Exhibit 99.3

LOGO

Supplemental Information

Fourth 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			9,10
Quarterly Average Balances and Interest Rates - Isolating Hedge Income/Expense			11,12
Year-to-Date Average Balances and Interest Rates			13,14
Year-to-Date Average Balances and Interest Rates - Isolating Hedge Income/Expense			15,16
Debt Securities and Available-for-Sale Marketable Equity Securities			17
Quarterly Results by Business Segment			18
Year-to-Date Results by Business Segment			19
Deposits
Total Segment Results			20
Key Indicators			21
Global Card Services
Total Segment Results			22
Key Indicators			23
Home Loans & Insurance
Total Segment Results			24
Key Indicators			25
Global Commercial Banking
Total Segment Results			26
Key Indicators			27
Global Banking & Markets
Total Segment Results			28
Key Indicators			29
Investment Banking Product Rankings			30
Super Senior Collateralized Debt Obligation Exposure			31
Global Wealth & Investment Management
Total Segment Results			32
Key Indicators			33
All Other
Total Segment Results			34
Equity Investments			35
Outstanding Loans and Leases			36
Quarterly Average Loans and Leases by Business Segment			37
Commercial Credit Exposure by Industry			38
Net Credit Default Protection by Maturity Profile and Credit Exposure Debt Rating			39
Selected Emerging Markets			40
Nonperforming Loans, Leases and Foreclosed Properties			41
Nonperforming Loans, Leases and Foreclosed Properties Activity			42
Quarterly Net Charge-offs/Losses and Net Charge-off/Loss Ratios			43
Year-to-Date Net Charge-offs/Losses and Net Charge-off/Loss Ratios			44
Allocation of the Allowance for Credit Losses by Product Type			45

Exhibit A: Non-GAAP Reconciliations			46,47,48,49

Appendix: Selected Slides from the Fourth Quarter 2010 Earnings Release Presentation			50


		1

Bank of America Corporation and Subsidiaries

Consolidated Financial Highlights

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


	Year Ended December 31							Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009
	2010			2009				Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009
Income statement
Net interest income	$	51,523		$	47,109			$	12,439		$	12,435		$	12,900		$	13,749		$	11,559
Noninterest income		58,697			72,534				9,959			14,265			16,253			18,220			13,517
Total revenue, net of interest expense		110,220			119,643				22,398			26,700			29,153			31,969			25,076
Provision for credit losses		28,435			48,570				5,129			5,396			8,105			9,805			10,110
Noninterest expense ⁽¹⁾		68,888			63,992				18,494			16,395			16,745			17,254			15,852
Goodwill impairment		12,400			—				2,000			10,400			—			—			—
Merger and restructuring charges		1,820			2,721				370			421			508			521			533
Income tax expense (benefit)		915			(1,916	)			(2,351	)		1,387			672			1,207			(1,225	)
Net income (loss)		(2,238	)		6,276				(1,244	)		(7,299	)		3,123			3,182			(194	)
Preferred stock dividends and accretion ⁽²⁾		1,357			8,480				321			348			340			348			5,002
Net income (loss) applicable to common shareholders		(3,595	)		(2,204	)			(1,565	)		(7,647	)		2,783			2,834			(5,196	)
Diluted earnings (loss) per common share ⁽³⁾		(0.37	)		(0.29	)			(0.16	)		(0.77	)		0.27			0.28			(0.60	)
Average diluted common shares issued and outstanding ⁽³⁾		9,790,472			7,728,570				10,036,575			9,976,351			10,029,776			10,005,254			8,634,565
Dividends paid per common share	$	0.04		$	0.04			$	0.01		$	0.01		$	0.01		$	0.01		$	0.01

Performance ratios
Return on average assets		n/m			0.26		%		n/m			n/m			0.50	%		0.51	%		n/m
Return on average common shareholders’ equity		n/m			n/m				n/m			n/m			5.18			5.73			n/m
Return on average tangible common shareholders’ equity ⁽⁴⁾		n/m			n/m				n/m			n/m			9.19			9.79			n/m
Return on average tangible shareholders’ equity ⁽⁴⁾		n/m			4.18				n/m			n/m			8.98			9.55			n/m
At period end
Book value per share of common stock ⁽⁵⁾	$	20.99		$	21.48			$	20.99		$	21.17		$	21.45		$	21.12		$	21.48
Tangible book value per share of common stock ⁽⁴⁾		12.98			11.94				12.98			12.91			12.14			11.70			11.94
Market price per share of common stock:
Closing price	$	13.34		$	15.06			$	13.34		$	13.10		$	14.37		$	17.85		$	15.06
High closing price for the period		19.48			18.59				13.56			15.67			19.48			18.04			18.59
Low closing price for the period		10.95			3.14				10.95			12.32			14.37			14.45			14.58
Market capitalization		134,536			130,273				134,536			131,442			144,174			179,071			130,273

Number of banking centers - U.S.		5,856			6,011				5,856			5,879			5,900			5,939			6,011
Number of branded ATMs - U.S.		17,931			18,262				17,931			17,929			18,078			18,135			18,262
Full-time equivalent employees		286,951			283,055				286,951			285,822			283,224			283,319			283,055

(1)

Excludes merger and restructuring charges and goodwill impairment charge.

(2)

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

(3)

Due to a net loss applicable to common shareholders for the fourth and third quarters of 2010, fourth quarter of 2009, and the years ended 2010 and 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.

(4)

Tangible equity ratios and tangible book value per share of common stock are non-GAAP measures. For corresponding reconciliations of average tangible common shareholders’ equity and tangible shareholders’ equity to GAAP financial measures, see Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on pages 46-47. We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation.

(5)

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, except per share information)

Fully taxable-equivalent basis data ⁽¹⁾


	Year Ended						Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009
	December 31
	2010			2009
Net interest income	$	52,693		$	48,410		$	12,709		$	12,717		$	13,197		$	14,070		$	11,896
Total revenue, net of interest expense		111,390			120,944			22,668			26,982			29,450			32,290			25,413
Net interest yield ⁽²⁾		2.78	%		2.65	%		2.69	%		2.72	%		2.77	%		2.93	%		2.62	%
Efficiency ratio		74.61			55.16			92.04			100.87			58.58			55.05			64.47

(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 pages 46-47).

(2)

Calculation includes fees earned on overnight deposits placed with the Federal Reserve of $368 million and $379 million for the years ended December 31, 2010 and 2009; $63 million, $107 million, $106 million and $92 million for the fourth, third, second and first quarters of 2010, and $130 million for the fourth quarter of 2009, respectively. For more information see Quarterly and Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis on pages 9-10 and 13-14.

Performance ratios, excluding goodwill impairment charges ⁽¹⁾

Year Ended
December 31
2010

Fourth
Quarter
2010

Third
Quarter
2010

Per common share information

Earnings

0.87

0.04

0.27

Diluted earnings

0.86

0.04

0.27

Efficiency ratio ⁽²⁾

63.48

83.22

62.33

Return on average assets

0.42

0.13

0.52

Return on average common shareholders’ equity

4.14

0.79

5.06

Return on average tangible common shareholders’ equity ⁽³⁾

7.03

1.27

8.67

Return on average tangible shareholders’ equity ⁽³⁾

7.11

1.96

8.54

(1)

Total noninterest expense, excluding goodwill impairment charges, net income, excluding goodwill impairment charges and net income applicable to common shareholders, excluding goodwill impairment charges are non-GAAP measures. We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on pages 46-47).

(2)

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 pages 46-47).

(3)

Tangible equity ratios 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 pages 46-47. We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation.

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)


							Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009
	Year Ended December 31
	2010			2009
Interest income
Loans and leases	$	50,996		$	48,703		$	12,149		$	12,485		$	12,887		$	13,475		$	11,405
Debt securities		11,667			12,947			3,029			2,605			2,917			3,116			2,859
Federal funds sold and securities borrowed or purchased under agreements to resell		1,832			2,894			486			441			457			448			327
Trading account assets		6,841			7,944			1,661			1,641			1,796			1,743			1,721
Other interest income		4,161			5,428			965			1,037			1,062			1,097			1,333

Total interest income		75,497			77,916			18,290			18,209			19,119			19,879			17,645


Interest expense
Deposits		3,997			7,807			894			950			1,031			1,122			1,472
Short-term borrowings		3,699			5,512			1,142			848			891			818			658
Trading account liabilities		2,571			2,075			561			635			715			660			591
Long-term debt		13,707			15,413			3,254			3,341			3,582			3,530			3,365

Total interest expense		23,974			30,807			5,851			5,774			6,219			6,130			6,086

Net interest income		51,523			47,109			12,439			12,435			12,900			13,749			11,559

Noninterest income
Card income		8,108			8,353			2,127			1,982			2,023			1,976			1,782
Service charges		9,390			11,038			2,036			2,212			2,576			2,566			2,756
Investment and brokerage services		11,622			11,919			2,879			2,724			2,994			3,025			3,014
Investment banking income		5,520			5,551			1,590			1,371			1,319			1,240			1,596
Equity investment income		5,260			10,014			1,512			357			2,766			625			2,026
Trading account profits		10,054			12,235			995			2,596			1,227			5,236			1,475
Mortgage banking income (loss)		2,734			8,791			(1,419	)		1,755			898			1,500			1,652
Insurance income		2,066			2,760			598			75			678			715			703
Gains on sales of debt securities		2,526			4,723			872			883			37			734			1,039
Other income (loss)		2,384			(14	)		(1,114	)		433			1,861			1,204			(1,884	)
Other-than-temporary impairment losses on available-for-sale debt securities ⁽¹⁾:
Total other-than-temporary impairment losses		(2,174	)		(3,508	)		(612	)		(156	)		(462	)		(1,819	)		(837	)
Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income		1,207			672			495			33			336			1,218			195

Net impairment losses recognized in earnings on available-for-sale debt securities		(967	)		(2,836	)		(117	)		(123	)		(126	)		(601	)		(642	)

Total noninterest income		58,697			72,534			9,959			14,265			16,253			18,220			13,517

Total revenue, net of interest expense		110,220			119,643			22,398			26,700			29,153			31,969			25,076

Provision for credit losses		28,435			48,570			5,129			5,396			8,105			9,805			10,110

Noninterest expense
Personnel		35,149			31,528			8,800			8,402			8,789			9,158			7,357
Occupancy		4,716			4,906			1,212			1,150			1,182			1,172			1,339
Equipment		2,452			2,455			607			619			613			613			600
Marketing		1,963			1,933			484			497			495			487			443
Professional fees		2,695			2,281			883			651			644			517			770
Amortization of intangibles		1,731			1,978			420			426			439			446			432
Data processing		2,544			2,500			662			602			632			648			639
Telecommunications		1,416			1,420			366			361			359			330			387
Other general operating		16,222			14,991			5,060			3,687			3,592			3,883			3,885
Goodwill impairment		12,400			—			2,000			10,400			—			—			—
Merger and restructuring charges		1,820			2,721			370			421			508			521			533

Total noninterest expense		83,108			66,713			20,864			27,216			17,253			17,775			16,385

Income (loss) before income taxes		(1,323	)		4,360			(3,595	)		(5,912	)		3,795			4,389			(1,419	)
Income tax expense (benefit)		915			(1,916	)		(2,351	)		1,387			672			1,207			(1,225	)

Net income (loss)	$	(2,238	)	$	6,276		$	(1,244	)	$	(7,299	)	$	3,123		$	3,182		$	(194	)

Preferred stock dividends and accretion		1,357			8,480			321			348			340			348			5,002

Net income (loss) applicable to common shareholders	$	(3,595	)	$	(2,204	)	$	(1,565	)	$	(7,647	)	$	2,783		$	2,834		$	(5,196	)


Per common share information
Earnings (loss)	$	(0.37	)	$	(0.29	)	$	(0.16	)	$	(0.77	)	$	0.28		$	0.28		$	(0.60	)
Diluted earnings (loss) ⁽²⁾		(0.37	)		(0.29	)		(0.16	)		(0.77	)		0.27			0.28			(0.60	)
Dividends paid		0.04			0.04			0.01			0.01			0.01			0.01			0.01

Average common shares issued and outstanding		9,790,472			7,728,570			10,036,575			9,976,351			9,956,773			9,177,468			8,634,565

Average diluted common shares issued and outstanding ⁽²⁾		9,790,472			7,728,570			10,036,575			9,976,351			10,029,776			10,005,254			8,634,565

(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.

(2)

Due to a net loss applicable to common shareholders for the fourth and third quarters of 2010, fourth quarter of 2009, and the years ended December 31, 2010 and 2009, the impact of antidilutive equity instruments was excluded from diluted earnings per share and average diluted 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.		4

Bank of America Corporation and Subsidiaries

Consolidated Balance Sheet

(Dollars in millions)


	December 31 2010			September 30 2010			December 31 2009
Assets
Cash and cash equivalents	$	108,427		$	131,116		$	121,339
Time deposits placed and other short-term investments		26,433			18,946			24,202
Federal funds sold and securities borrowed or purchased under agreements to resell		209,616			271,818			189,933
Trading account assets		194,671			207,695			182,206
Derivative assets		73,000			84,684			87,622
Debt securities:
Available-for-sale		337,627			322,424			301,601
Held-to-maturity, at cost		427			438			9,840
Total debt securities		338,054			322,862			311,441
Loans and leases		940,440			933,910			900,128
Allowance for loan and lease losses		(41,885	)		(43,581	)		(37,200	)
Loans and leases, net of allowance		898,555			890,329			862,928
Premises and equipment, net		14,306			14,320			15,500
Mortgage servicing rights (includes $14,900, $12,251 and $19,465 measured at fair value)		15,177			12,540			19,774
Goodwill		73,861			75,602			86,314
Intangible assets		9,923			10,402			12,026
Loans held-for-sale		35,058			33,276			43,874
Customer and other receivables		85,704			78,599			81,996
Other assets		182,124			187,471			191,077
Total assets	$	2,264,909		$	2,339,660		$	2,230,232

Assets of consolidated VIEs included in total assets above (substantially all pledged as collateral)
Trading account assets	$	19,627		$	11,186
Derivative assets		2,027			2,838
Available-for-sale debt securities		2,601			7,684
Loans and leases		145,469			132,106
Allowance for loan and lease losses		(8,935	)		(9,831	)
Loans and leases, net of allowance		136,534			122,275
Loans held-for-sale		1,953			3,301
All other assets		7,086			7,910
Total assets of consolidated VIEs	$	169,828		$	155,194

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)


	December 31 2010			September 30 2010			December 31 2009
Liabilities
Deposits in U.S. offices:
Noninterest-bearing	$	285,200		$	265,672		$	269,615
Interest-bearing		645,713			634,784			640,789
Deposits in non-U.S. offices:
Noninterest-bearing		6,101			6,297			5,489
Interest-bearing		73,416			70,569			75,718
Total deposits		1,010,430			977,322			991,611
Federal funds purchased and securities loaned or sold under agreements to repurchase		245,359			296,605			255,185
Trading account liabilities		71,985			90,010			65,432
Derivative liabilities		55,914			61,656			50,661
Commercial paper and other short-term borrowings		59,962			64,818			69,524
Accrued expenses and other liabilities (includes $1,188, $1,294 and $1,487 of reserve for unfunded lending commitments)		144,580			139,896			127,854
Long-term debt		448,431			478,858			438,521
Total liabilities		2,036,661			2,109,165			1,998,788
Shareholders’ equity
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 3,943,660, 3,960,660 and 5,264,660 shares		16,562			18,104			37,208
Common stock and additional paid-in capital, $0.01 par value; authorized - 12,800,000,000, 12,800,000,000 and 10,000,000,000 shares; issued and outstanding - 10,085,154,806, 10,033,705,046 and 8,650,243,926 shares		150,905			149,563			128,734
Retained earnings		60,849			62,515			71,233
Accumulated other comprehensive income (loss)		(66	)		336			(5,619	)
Other		(2	)		(23	)		(112	)
Total shareholders’ equity		228,248			230,495			231,444
Total liabilities and shareholders’ equity	$	2,264,909		$	2,339,660		$	2,230,232

Liabilities of consolidated VIEs included in total liabilities above
Commercial paper and other short-term borrowings	$	6,742		$	13,222
Long-term debt		71,013			79,228
All other liabilities		9,141			1,954
Total liabilities of consolidated VIEs	$	86,896		$	94,404

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)


	Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009
Risk-based capital ⁽¹⁾:
Tier 1 common	$	125,139		$	124,756		$	119,716		$	115,520		$	120,394
Tier 1 capital		163,626			164,763			159,551			155,428			160,388
Total capital		229,594			231,120			220,827			219,913			226,070
Risk-weighted assets		1,455,951			1,476,774			1,494,990			1,519,723			1,542,517
Tier 1 common equity ratio ⁽²⁾		8.60	%		8.45	%		8.01	%		7.60	%		7.81	%
Tier 1 capital ratio		11.24			11.16			10.67			10.23			10.40
Total capital ratio		15.77			15.65			14.77			14.47			14.66
Tier 1 leverage ratio		7.21			7.21			6.68			6.44			6.88
Tangible equity ratio ⁽³⁾		6.75			6.54			6.14			6.02			6.40
Tangible common equity ratio ⁽³⁾		5.99			5.74			5.35			5.22			5.56

(1)

Reflects preliminary data for current period 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 pages 46-47. We believe the use of these non-GAAP measures provide additional clarity in assessing the results of the Corporation.

LOGO

*	Preliminary data on risk-based capital

Outstanding Common Stock

No common shares were repurchased in the fourth quarter of 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)


	Year Ended December 31								Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
	2010				2009				2010				2010				2010				2010				2009
Net interest income ⁽¹⁾
As reported⁽²⁾	$	52,693			$	48,410			$	12,709			$	12,717			$	13,197			$	14,070			$	11,896
Impact of market-based net interest income ⁽³⁾		(4,430	)			(6,117	)			(1,150	)			(1,045	)			(1,049	)			(1,186	)			(1,305	)

Core net interest income		48,263				42,293				11,559				11,672				12,148				12,884				10,591
Impact of securitizations ⁽⁴⁾		n/a				10,524				n/a				n/a				n/a				n/a				2,474

Core net interest income ⁽⁵⁾	$	48,263			$	52,817			$	11,559			$	11,672			$	12,148			$	12,884			$	13,065


Average earning assets
As reported	$	1,897,573			$	1,830,193			$	1,883,539			$	1,863,819			$	1,910,790			$	1,933,060			$	1,807,898
Impact of market-based earning assets ⁽³⁾		(504,360	)			(481,376	)			(475,021	)			(494,771	)			(521,010	)			(527,316	)			(490,557	)

Core average earning assets		1,393,213				1,348,817				1,408,518				1,369,048				1,389,780				1,405,744				1,317,341
Impact of securitizations ⁽⁶⁾		n/a				83,640				n/a				n/a				n/a				n/a				75,337

Core average earning assets ⁽⁵⁾	$	1,393,213			$	1,432,457			$	1,408,518			$	1,369,048			$	1,389,780			$	1,405,744			$	1,392,678


Net interest yield contribution ^(1, 7)
As reported⁽²⁾		2.78		%		2.65		%		2.69		%		2.72		%		2.77		%		2.93		%		2.62		%
Impact of market-based activities ⁽³⁾		0.68				0.49				0.58				0.67				0.73				0.76				0.59

Core net interest yield on earning assets		3.46				3.14				3.27				3.39				3.50				3.69				3.21
Impact of securitizations		n/a				0.55				n/a				n/a				n/a				n/a				0.53

Core net interest yield on earning assets ⁽⁵⁾		3.46		%		3.69		%		3.27		%		3.39		%		3.50		%		3.69		%		3.74		%

(1)

Fully taxable-equivalent basis

(2)

Balance and calculation include fees earned on overnight deposits placed with the Federal Reserve of $368 million and $379 million for years ended December 31, 2010 and 2009; $63 million, $107 million, $106 million, and $92 million for the fourth, third, second and first quarters of 2010, and $130 million for the fourth quarter of 2009, respectively.

(3)

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

(4)

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

(5)

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

(6)

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

(7)

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)


	Fourth Quarter 2010							Third Quarter 2010							Fourth 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 ⁽¹⁾	$	28,141	$	75		1.07	%	$	23,233	$	86		1.45	%	$	28,566	$	90		1.25	%
Federal funds sold and securities borrowed or purchased under agreements to resell		243,589		486		0.79			254,820		441		0.69			244,914		327		0.53
Trading account assets		216,003		1,710		3.15			210,529		1,692		3.20			218,787		1,800		3.28
Debt securities ⁽²⁾		341,867		3,065		3.58			328,097		2,646		3.22			279,231		2,921		4.18
Loans and leases ⁽³⁾:
Residential mortgage ⁽⁴⁾		254,051		2,857		4.50			237,292		2,797		4.71			236,883		3,108		5.24
Home equity		139,772		1,410		4.01			143,083		1,457		4.05			150,704		1,613		4.26
Discontinued real estate		13,297		118		3.57			13,632		122		3.56			15,152		174		4.58
U.S. credit card		112,673		3,040		10.70			115,251		3,113		10.72			49,213		1,336		10.77
Non-U.S. credit card		27,457		815		11.77			27,047		875		12.84			21,680		605		11.08
Direct/Indirect consumer⁽⁵⁾		91,549		1,088		4.72			95,692		1,130		4.68			98,938		1,361		5.46
Other consumer ⁽⁶⁾		2,796		45		6.32			2,955		47		6.35			3,177		50		6.33

Total consumer		641,595		9,373		5.81			634,952		9,541		5.98			575,747		8,247		5.70

U.S. commercial		193,608		1,894		3.88			192,306		2,040		4.21			207,050		2,090		4.01
Commercial real estate ⁽⁷⁾		51,617		432		3.32			55,660		452		3.22			71,352		595		3.31
Commercial lease financing		21,363		250		4.69			21,402		255		4.78			21,769		273		5.04
Non-U.S. commercial		32,431		289		3.53			30,540		282		3.67			29,995		287		3.78

Total commercial		299,019		2,865		3.81			299,908		3,029		4.01			330,166		3,245		3.90

Total loans and leases		940,614		12,238		5.18			934,860		12,570		5.35			905,913		11,492		5.05

Other earning assets		113,325		923		3.23			112,280		949		3.36			130,487		1,222		3.72

Total earning assets ⁽⁸⁾		1,883,539		18,497		3.90			1,863,819		18,384		3.93			1,807,898		17,852		3.93

Cash and cash equivalents ⁽¹⁾		136,967		63					155,784		107					230,618		130
Other assets, less allowance for loan and lease losses		349,752							359,794							392,508

Total assets	$	2,370,258						$	2,379,397						$	2,431,024

(1)

Fees earned on overnight deposits placed with the Federal Reserve, which were included in the time deposits placed and other short-term investments line in prior periods have been reclassified to cash and cash equivalents, consistent with the balance sheet presentation of these deposits. Net interest income and net interest yield are calculated excluding these fees.

(2)

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.

(3)

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.

(4)

Includes non-U.S. residential mortgages of $96 million and $502 million the fourth and third quarters of 2010, and $550 million in the fourth quarter of 2009.

(5)

Includes non-U.S. consumer loans of $7.9 billion and $7.7 billion the fourth and third quarters of 2010, and $8.6 billion in the fourth quarter of 2009.

(6)

Includes consumer finance loans of $2.0 billion in both the fourth and third quarters of 2010, and $2.3 billion in the fourth quarter of 2009; other non-U.S. consumer loans of $791 million and $788 million in the fourth and third quarters of 2010, and $689 million in the fourth quarter of 2009; and consumer overdrafts of $34 million and $123 million for the fourth and third quarters of 2010, and $192 million in the fourth quarter of 2009.

(7)

Includes U.S. commercial real estate loans of $49.0 billion and $53.1 billion in the fourth and third quarters of 2010, and $68.2 billion in the fourth quarter of 2009, and non-U.S. commercial real estate loans of $2.6 billion and $2.5 billion in the fourth and third quarters of 2010, and $3.1 billion in the fourth quarter of 2009.

(8)

Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $29 million and $639 million in the fourth and third quarters of 2010, and $248 million in the fourth quarter of 2009. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities $672 million and $1.0 billion in the fourth and third quarters of 2010, and $1.1 billion in the fourth 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 (continued)

(Dollars in millions)


	Fourth Quarter 2010							Third Quarter 2010							Fourth Quarter 2009
	Average Balance		Interest Income/ Expense		Yield/ Rate			Average Balance		Interest Income/ Expense		Yield/ Rate			Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-bearing liabilities
U.S. interest-bearing deposits:
Savings	$	37,145	$	35		0.36	%	$	37,008	$	36		0.39	%	$	33,749	$	54		0.63	%
NOW and money market deposit accounts		464,531		333		0.28			442,906		359		0.32			392,212		388		0.39
Consumer CDs and IRAs		124,855		338		1.07			132,687		377		1.13			192,779		835		1.72
Negotiable CDs, public funds and other time deposits		16,334		47		1.16			17,326		57		1.30			31,758		82		1.04

Total U.S. interest-bearing deposits		642,865		753		0.46			629,927		829		0.52			650,498		1,359		0.83

Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries		16,827		38		0.91			17,431		38		0.86			16,132		30		0.75
Governments and official institutions		1,560		2		0.42			2,055		2		0.36			5,779		4		0.26
Time, savings and other		58,746		101		0.69			54,373		81		0.59			55,685		79		0.56

Total non-U.S. interest-bearing deposits		77,133		141		0.73			73,859		121		0.65			77,596		113		0.58

Total interest-bearing deposits		719,998		894		0.49			703,786		950		0.54			728,094		1,472		0.80

Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings		369,738		1,142		1.23			391,148		848		0.86			450,538		658		0.58
Trading account liabilities		81,313		561		2.74			95,265		635		2.65			83,118		591		2.82
Long-term debt		465,875		3,254		2.78			485,588		3,341		2.74			445,440		3,365		3.01

Total interest-bearing liabilities ⁽⁸⁾		1,636,924		5,851		1.42			1,675,787		5,774		1.37			1,707,190		6,086		1.42

Noninterest-bearing sources:
Noninterest-bearing deposits		287,740							270,060							267,066
Other liabilities		210,069							199,572							206,169
Shareholders’ equity		235,525							233,978							250,599

Total liabilities and shareholders’ equity	$	2,370,258						$	2,379,397						$	2,431,024

Net interest spread						2.48	%						2.56	%						2.51	%
Impact of noninterest-bearing sources						0.18							0.13							0.08

Net interest income/yield on earning assets ⁽¹⁾			$	12,646		2.66	%			$	12,610		2.69	%			$	11,766		2.59	%

For footnotes see page 9.

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

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

(Dollars in millions)


	Fourth Quarter 2010								Third Quarter 2010								Fourth 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	$	28,141	$	75			1.07	%	$	23,233	$	86			1.45	%	$	28,566	$	90			1.25	%
Federal funds sold and securities borrowed or purchased under agreements to resell ⁽²⁾		243,589		420			0.68			254,820		366			0.57			244,914		253			0.41
Trading account assets⁽²⁾		216,003		1,776			3.27			210,529		1,750			3.31			218,787		1,844			3.36
Debt securities ⁽²⁾		341,867		3,085			3.58			328,097		3,286			4.00			279,231		3,176			4.54
Loans and leases:
Residential mortgage		254,051		2,857			4.50			237,292		2,797			4.71			236,883		3,108			5.24
Home equity		139,772		1,410			4.01			143,083		1,457			4.05			150,704		1,613			4.26
Discontinued real estate		13,297		118			3.57			13,632		122			3.56			15,152		174			4.58
U.S. credit card		112,673		3,040			10.70			115,251		3,113			10.72			49,213		1,336			10.77
Non-U.S. credit card		27,457		815			11.77			27,047		875			12.84			21,680		605			11.08
Direct/Indirect consumer		91,549		1,088			4.72			95,692		1,130			4.68			98,938		1,361			5.46
Other consumer		2,796		45			6.32			2,955		47			6.35			3,177		50			6.33
Total consumer		641,595		9,373			5.81			634,952		9,541			5.98			575,747		8,247			5.70
U.S. commercial ⁽²⁾		193,608		1,902			3.90			192,306		2,056			4.24			207,050		2,113			4.05
Commercial real estate		51,617		432			3.32			55,660		452			3.22			71,352		595			3.31
Commercial lease financing		21,363		250			4.69			21,402		255			4.78			21,769		273			5.04
Non-U.S. commercial ⁽²⁾		32,431		290			3.54			30,540		282			3.67			29,995		287			3.78
Total commercial		299,019		2,874			3.82			299,908		3,045			4.03			330,166		3,268			3.93
Total loans and leases		940,614		12,247			5.18			934,860		12,586			5.35			905,913		11,515			5.06
Other earning assets		113,325		923			3.23			112,280		949			3.36			130,487		1,222			3.72
Total earning assets - excluding hedge impact		1,883,539		18,526			3.90			1,863,819		19,023			4.05			1,807,898		18,100			3.97
Net hedge expense on assets				(29	)							(639	)							(248	)
Total earning assets - including hedge impact		1,883,539		18,497			3.90			1,863,819		18,384			3.93			1,807,898		17,852			3.93
Cash and cash equivalents		136,967		63						155,784		107						230,618		130
Other assets, less allowance for loan and lease losses		349,752								359,794								392,508
Total assets	$	2,370,258							$	2,379,397							$	2,431,024

(1)

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

(2)

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

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


	Fourth Quarter 2010			Third Quarter 2010			Fourth Quarter 2009
Federal funds sold and securities borrowed or purchased under agreements to resell	$	66		$	75		$	74
Trading account assets		(66	)		(58	)		(44	)
Debt securities		(20	)		(640	)		(255	)
U.S. commercial		(8	)		(16	)		(23	)
Non-U.S. commercial		(1	)		—			—

Net hedge expense on assets	$	(29	)	$	(639	)	$	(248	)

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

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

(Dollars in millions)


	Fourth Quarter 2010								Third Quarter 2010								Fourth Quarter 2009
	Average Balance		Interest Income/ Expense			Yield/ Rate			Average Balance		Interest Income/ Expense			Yield/ Rate			Average Balance		Interest Income/ Expense			Yield/ Rate
Interest-bearing liabilities
U.S. interest-bearing deposits:
Savings	$	37,145	$	35			0.36	%	$	37,008	$	36			0.39	%	$	33,749	$	54			0.63	%
NOW and money market deposit accounts ⁽²⁾		464,531		333			0.28			442,906		360			0.32			392,212		388			0.39
Consumer CDs and IRAs⁽²⁾		124,855		290			0.92			132,687		328			0.98			192,779		791			1.63
Negotiable CDs, public funds and other time deposits ⁽²⁾		16,334		44			1.08			17,326		54			1.22			31,758		80			0.99
Total U.S. interest-bearing deposits		642,865		702			0.43			629,927		778			0.49			650,498		1,313			0.80
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries ⁽²⁾		16,827		19			0.47			17,431		19			0.42			16,132		14			0.37
Governments and official institutions		1,560		2			0.42			2,055		2			0.36			5,779		4			0.26
Time, savings and other		58,746		101			0.69			54,373		81			0.59			55,685		79			0.56
Total non-U.S. interest-bearing deposits		77,133		122			0.63			73,859		102			0.54			77,596		97			0.50
Total interest-bearing deposits		719,998		824			0.45			703,786		880			0.50			728,094		1,410			0.77
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings ⁽²⁾		369,738		740			0.79			391,148		700			0.71			450,538		551			0.49
Trading account liabilities		81,313		561			2.74			95,265		635			2.65			83,118		591			2.82
Long-term debt ⁽²⁾		465,875		4,398			3.76			485,588		4,579			3.76			445,440		4,605			4.12
Total interest-bearing liabilities - excluding hedge impact		1,636,924		6,523			1.59			1,675,787		6,794			1.61			1,707,190		7,157			1.66
Net hedge income on liabilities				(672	)							(1,020	)							(1,071	)
Total interest-bearing liabilities - including hedge impact		1,636,924		5,851			1.42			1,675,787		5,774			1.37			1,707,190		6,086			1.42
Noninterest-bearing sources:
Noninterest-bearing deposits		287,740								270,060								267,066
Other liabilities		210,069								199,572								206,169
Shareholders' equity		235,525								233,978								250,599
Total liabilities and shareholders’ equity	$	2,370,258							$	2,379,397							$	2,431,024
Net interest spread							2.31	%							2.44	%							2.31	%
Impact of noninterest-bearing sources							0.22								0.16								0.09
Net interest income/yield on earning assets - excluding hedge impact				12,003			2.53	%				12,229			2.60	%				10,943			2.40	%
Net impact of hedge income (expense)				643			0.13					381			0.09					823			0.19
Net interest income/yield on earning assets			$	12,646			2.66	%			$	12,610			2.69	%			$	11,766			2.59	%

(1)

(2)

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

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


	Fourth Quarter 2010			Third Quarter 2010			Fourth Quarter 2009
NOW and money market deposit accounts	$	—		$	(1	)	$	—
Consumer CDs and IRAs		48			49			44
Negotiable CDs, public funds and other time deposits		3			3			2
Banks located in non-U.S. countries		19			19			16
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings		402			148			107
Long-term debt		(1,144	)		(1,238	)		(1,240	)

Net hedge income on liabilities	$	(672	)	$	(1,020	)	$	(1,071	)

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

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

(Dollars in millions)


	Year Ended December 31
	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 ⁽¹⁾	$	27,419	$	292		1.06	%	$	27,465	$	334		1.22	%
Federal funds sold and securities borrowed or purchased under agreements to resell		256,943		1,832		0.71			235,764		2,894		1.23
Trading account assets		213,745		7,050		3.30			217,048		8,236		3.79
Debt securities ⁽²⁾		323,946		11,850		3.66			271,048		13,224		4.88
Loans and leases ⁽³⁾:
Residential mortgage⁽⁴⁾		245,727		11,736		4.78			249,335		13,535		5.43
Home equity		145,860		5,990		4.11			154,761		6,736		4.35
Discontinued real estate		13,830		527		3.81			17,340		1,082		6.24
U.S. credit card		117,962		12,644		10.72			52,378		5,666		10.82
Non-U.S. credit card		28,011		3,450		12.32			19,655		2,122		10.80
Direct/Indirect consumer⁽⁵⁾		96,649		4,753		4.92			99,993		6,016		6.02
Other consumer ⁽⁶⁾		2,927		186		6.34			3,303		237		7.17
Total consumer		650,966		39,286		6.04			596,765		35,394		5.93
U.S. commercial		195,895		7,909		4.04			223,813		8,883		3.97
Commercial real estate ⁽⁷⁾		59,947		2,000		3.34			73,349		2,372		3.23
Commercial lease financing		21,427		1,070		4.99			21,979		990		4.51
Non-U.S. commercial		30,096		1,091		3.62			32,899		1,406		4.27
Total commercial		307,365		12,070		3.93			352,040		13,651		3.88
Total loans and leases		958,331		51,356		5.36			948,805		49,045		5.17
Other earning assets		117,189		3,919		3.34			130,063		5,105		3.92
Total earning assets ⁽⁸⁾		1,897,573		76,299		4.02			1,830,193		78,838		4.31
Cash and cash equivalents ⁽¹⁾		174,621		368					196,237		379
Other assets, less allowance for loan and lease losses		367,408							416,638
Total assets	$	2,439,602						$	2,443,068

(1)

Fees earned on overnight deposits placed with the Federal Reserve, which were included in the time deposits placed and other short-term investments line in prior periods, have been reclassified to cash and cash equivalents, consistent with the balance sheet presentation of these deposits. Net interest income and net interest yield are calculated excluding these fees.

(2)

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.

(3)

(4)

Includes non-U.S. residential mortgages of $410 million and $622 million for the year ended December 31, 2010 and 2009.

(5)

Includes non-U.S. consumer loans of $7.9 billion and $8.0 billion for the year ended December 31, 2010 and 2009.

(6)

Includes consumer finance loans of $2.1 billion and $2.4 billion, other non-U.S. consumer loans of $731 million and $657 million, and consumer overdrafts of $111 million and $217 million for the year ended December 31, 2010 and 2009.

(7)

Includes U.S. commercial real estate loans of $57.3 billion and $70.7 billion, and non-U.S. commercial real estate loans of $2.7 billion for both the years ended December 31, 2010 and 2009.

(8)

Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $1.4 billion and $456 million for the year ended December 31, 2010 and 2009. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities $3.5 billion and $3.0 billion for the year ended December 31, 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.		13

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Year Ended December 31
	2010							2009
	Average Balance		Interest Income/ Expense		Yield/ Rate			Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-bearing liabilities
U.S. interest-bearing deposits:
Savings	$	36,649	$	157		0.43	%	$	33,671	$	215		0.64	%
NOW and money market deposit accounts		441,589		1,405		0.32			358,712		1,557		0.43
Consumer CDs and IRAs		142,648		1,723		1.21			218,041		5,054		2.32
Negotiable CDs, public funds and other time deposits		17,683		226		1.28			37,796		473		1.25
Total U.S. interest-bearing deposits		638,569		3,511		0.55			648,220		7,299		1.13
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries		18,102		144		0.80			18,688		145		0.78
Governments and official institutions		3,349		10		0.28			6,270		16		0.26
Time, savings and other		55,059		332		0.60			57,045		347		0.61
Total non-U.S. interest-bearing deposits		76,510		486		0.64			82,003		508		0.62
Total interest-bearing deposits		715,079		3,997		0.56			730,223		7,807		1.07
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings		430,329		3,699		0.86			488,644		5,512		1.13
Trading account liabilities		91,669		2,571		2.80			72,207		2,075		2.87
Long-term debt		490,497		13,707		2.79			446,634		15,413		3.45
Total interest-bearing liabilities ⁽⁸⁾		1,727,574		23,974		1.39			1,737,708		30,807		1.77
Noninterest-bearing sources:
Noninterest-bearing deposits		273,507							250,743
Other liabilities		205,290							209,972
Shareholders’ equity		233,231							244,645
Total liabilities and shareholders’ equity	$	2,439,602						$	2,443,068
Net interest spread						2.63	%						2.54	%
Impact of noninterest-bearing sources						0.13							0.08
Net interest income/yield on earning assets ⁽¹⁾			$	52,325		2.76	%			$	48,031		2.62	%

For footnotes see page 13.

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.		14

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Year Ended December 31
	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⁾	$	27,419	$	293			1.07	%	$	27,465	$	337			1.23	%
Federal funds sold and securities borrowed or purchased under agreements to resell⁽²⁾		256,943		1,538			0.60			235,764		2,666			1.13
Trading account assets ⁽²⁾		213,745		7,263			3.40			217,048		8,286			3.82
Debt securities ⁽²⁾		323,946		13,256			4.09			271,048		13,754			5.07
Loans and leases:
Residential mortgage		245,727		11,736			4.78			249,335		13,535			5.43
Home equity		145,860		5,990			4.11			154,761		6,736			4.35
Discontinued real estate		13,830		527			3.81			17,340		1,082			6.24
U.S. credit card		117,962		12,644			10.72			52,378		5,666			10.82
Non-U.S. credit card		28,011		3,450			12.32			19,655		2,122			10.80
Direct/Indirect consumer		96,649		4,753			4.92			99,993		6,016			6.02
Other consumer		2,927		186			6.34			3,303		237			7.17
Total consumer		650,966		39,286			6.04			596,765		35,394			5.93
U.S. commercial⁽²⁾		195,895		8,001			4.08			223,813		8,984			4.01
Commercial real estate		59,947		2,000			3.34			73,349		2,372			3.23
Commercial lease financing		21,427		1,070			4.99			21,979		990			4.51
Non-U.S. commercial ⁽²⁾		30,096		1,092			3.63			32,899		1,406			4.27
Total commercial		307,365		12,163			3.96			352,040		13,752			3.91
Total loans and leases		958,331		51,449			5.37			948,805		49,146			5.18
Other earning assets		117,189		3,919			3.34			130,063		5,105			3.92
Total earning assets - excluding hedge impact		1,897,573		77,718			4.10			1,830,193		79,294			4.33
Net hedge expense on assets				(1,419	)							(456	)
Total earning assets - including hedge impact		1,897,573		76,299			4.02			1,830,193		78,838			4.31
Cash and cash equivalents		174,621		368						196,237		379
Other assets, less allowance for loan and lease losses		367,408								416,638
Total assets	$	2,439,602							$	2,443,068

(1)

(2)

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

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


	Year Ended December 31
	2010			2009
Time deposits placed and other short-term investments	$	(1	)	$	(3	)
Federal funds sold and securities borrowed or purchased under agreements to resell		294			228
Trading account assets		(213	)		(50	)
Debt securities		(1,406	)		(530	)
U.S. commercial		(92	)		(101	)
Non-U.S. commercial		(1	)		—

Net hedge expense on assets	$	(1,419	)	$	(456	)

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.		15

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Year Ended December 31
	2010								2009
	Average Balance		Interest Income/ Expense			Yield/ Rate			Average Balance		Interest Income/ Expense			Yield/ Rate
Interest-bearing liabilities
U.S. interest-bearing deposits:
Savings	$	36,649	$	157			0.43	%	$	33,671	$	215			0.64	%
NOW and money market deposit accounts⁽²⁾		441,589		1,406			0.32			358,712		1,558			0.43
Consumer CDs and IRAs⁽²⁾		142,648		1,536			1.08			218,041		4,841			2.22
Negotiable CDs, public funds and other time deposits⁽²⁾		17,683		213			1.21			37,796		459			1.22
Total U.S. interest-bearing deposits		638,569		3,312			0.52			648,220		7,073			1.09
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries⁽²⁾		18,102		72			0.40			18,688		95			0.51
Governments and official institutions		3,349		10			0.28			6,270		16			0.26
Time, savings and other		55,059		332			0.60			57,045		346			0.61
Total non-U.S. interest-bearing deposits		76,510		414			0.54			82,003		457			0.56
Total interest-bearing deposits		715,079		3,726			0.52			730,223		7,530			1.03
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings ⁽²⁾		430,329		2,971			0.69			488,644		4,682			0.96
Trading account liabilities		91,669		2,571			2.80			72,207		2,075			2.87
Long-term debt⁽²⁾		490,497		18,197			3.71			446,634		19,526			4.37
Total interest-bearing liabilities - excluding hedge impact		1,727,574		27,465			1.59			1,737,708		33,813			1.95
Net hedge income on liabilities				(3,491	)							(3,006	)
Total interest-bearing liabilities - including hedge impact		1,727,574		23,974			1.39			1,737,708		30,807			1.77
Noninterest-bearing sources:
Noninterest-bearing deposits		273,507								250,743
Other liabilities		205,290								209,972
Shareholders’ equity		233,231								244,645
Total liabilities and shareholders’ equity	$	2,439,602							$	2,443,068
Net interest spread							2.51								2.38
Impact of noninterest-bearing sources							0.14								0.11
Net interest income/yield on earning assets - excluding hedge impact				50,253			2.65	%				45,481			2.49	%
Net impact of hedge income (expense)				2,072			0.11					2,550			0.13
Net interest income/yield on earning assets			$	52,325			2.76	%			$	48,031			2.62	%

(1)

(2)

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

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


	Year Ended December 31
	2010			2009
NOW and money market deposit accounts	$	(1	)	$	(1	)
Consumer CDs and IRAs		187			213
Negotiable CDs, public funds and other time deposits		13			14
Banks located in non-U.S. countries		72			51
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings		728			830
Long-term debt		(4,490	)		(4,113	)

Net hedge income on liabilities	$	(3,491	)	$	(3,006	)

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.		16

Bank of America Corporation and Subsidiaries

Debt Securities and Available-for-Sale Marketable Equity Securities

(Dollars in millions)

December 31, 2010

Amortized
Cost

Gross
Unrealized
Gains

Gross
Unrealized
Losses

Fair
Value

Available-for-sale debt securities

U.S. Treasury and agency securities

49,413

604

(912

)

49,105

Mortgage-backed securities:

Agency

190,409

3,048

(2,240

)

191,217

Agency collateralized mortgage obligations

36,639

401

(23

)

37,017

Non-agency residential

23,458

588

(929

)

23,117

Non-agency commercial

6,167

686

)

6,852

Non-U.S. securities

4,054

)

4,139

Corporate bonds

5,157

144

(10

)

5,291

Other taxable securities ⁽¹⁾

15,514

(161

)

15,392

Total taxable securities

330,811

5,602

(4,283

)

332,130

Tax-exempt securities

5,687

(222

)

5,497

Total available-for-sale debt securities

336,498

5,634

(4,505

)

337,627

Held-to-maturity debt securities

427

—

427

Total debt securities

336,925

5,634

(4,505

)

338,054

Available-for-sale marketable equity securities ⁽²⁾

8,650

10,628

(13

)

19,265


	September 30, 2010
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale debt securities
U.S. Treasury and agency securities	$	53,153	$	499	$	(1,602	)	$	52,050
Mortgage-backed securities:
Agency		162,143		3,785		(103	)		165,825
Agency collateralized mortgage obligations		38,856		478		(73	)		39,261
Non-agency residential		25,716		738		(669	)		25,785
Non-agency commercial		6,632		943		(22	)		7,553
Non-U.S. securities		3,960		95		(468	)		3,587
Corporate bonds		5,888		256		(20	)		6,124
Other taxable securities ⁽¹⁾		16,534		57		(322	)		16,269

Total taxable securities	$	312,882	$	6,851	$	(3,279	)	$	316,454
Tax-exempt securities		5,882		159		(71	)		5,970

Total available-for-sale debt securities	$	318,764	$	7,010	$	(3,350	)	$	322,424

Held-to-maturity debt securities		438		—		—			438

Total debt securities	$	319,202	$	7,010	$	(3,350	)	$	322,862

Available-for-sale marketable equity securities ⁽²⁾	$	8,598	$	9,868	$	(28	)	$	18,438

(1)

Substantially all asset-backed securities.

(2)

Classified 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.		17

Bank of America Corporation and Subsidiaries

Quarterly Results by Business Segment

(Dollars in millions)


	Fourth 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⁾	$	12,709		$	1,945		$	4,203		$	1,131		$	1,881		$	1,992		$	1,488	$	69
Noninterest income (loss)		9,959			939			2,043			(647	)		655			3,575			2,791		603

Total revenue, net of interest expense		22,668			2,884			6,246			484			2,536			5,567			4,279		672

Provision for credit losses		5,129			41			2,141			1,198			(132	)		(112	)		155		1,838
Noninterest expense		20,864			3,153			1,746			6,038			998			4,436			3,587		906

Income (loss) before income taxes		(3,325	)		(310	)		2,359			(6,752	)		1,670			1,243			537		(2,072	)
Income tax expense (benefit) ⁽²⁾		(2,081	)		(109	)		874			(1,781	)		629			519			205		(2,418	)

Net income (loss)	$	(1,244	)	$	(201	)	$	1,485		$	(4,971	)	$	1,041		$	724		$	332	$	346


Average
Total loans and leases	$	940,614			n/m		$	167,156		$	124,934		$	194,825		$	100,620		$	100,586	$	252,154
Total assets ⁽³⁾		2,370,258		$	431,193			167,745			219,192			311,406			741,300			290,995		n/m
Total deposits		1,007,738			406,278			n/m			n/m			156,598			115,325			253,402		44,282
Allocated equity		235,525			24,103			27,499			24,451			40,732			49,765			18,260		50,715

Period end
Total loans and leases	$	940,440			n/m		$	167,367		$	122,935		$	193,573		$	100,010		$	101,020	$	255,155
Total assets ⁽³⁾		2,264,909		$	432,334			169,762			213,455			310,131			655,535			297,301		n/m
Total deposits		1,010,430			406,856			n/m			n/m			161,260			111,447			266,444		38,162

	Third 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⁾	$	12,717		$	1,922		$	4,361		$	1,346		$	1,874		$	1,874		$	1,376	$	(36	)
Noninterest income		14,265			1,138			1,350			2,398			685			5,302			2,609		783

Total revenue, net of interest expense		26,982			3,060			5,711			3,744			2,559			7,176			3,985		747

Provision for credit losses		5,396			62			3,177			1,302			554			(157	)		128		330
Noninterest expense		27,216			2,693			12,099			2,979			1,000			4,446			3,449		550

Income (loss) before income taxes		(5,630	)		305			(9,565	)		(537	)		1,005			2,887			408		(133	)
Income tax expense (benefit) ⁽²⁾		1,669			110			306			(193	)		368			1,439			151		(512	)

Net income (loss)	$	(7,299	)	$	195		$	(9,871	)	$	(344	)	$	637		$	1,448		$	257	$	379


Average
Total loans and leases	$	934,860			n/m		$	171,191		$	127,713		$	198,839		$	98,847		$	99,318	$	238,457
Total assets ⁽³⁾		2,379,397		$	433,203			177,634			223,133			315,632			745,097			264,068		n/m
Total deposits		973,846			408,009			n/m			n/m			148,534			106,865			237,878		44,586
Allocated equity		233,978			24,382			35,270			26,628			41,172			52,519			18,070		35,937

Period end
Total loans and leases	$	933,910			n/m		$	168,845		$	127,701		$	195,858		$	99,476		$	99,772	$	241,837
Total assets ⁽³⁾		2,339,660		$	431,604			169,813			215,592			302,684			747,917			265,529		n/m
Total deposits		977,322			406,340			n/m			n/m			150,981			109,956			243,586		37,130

	Fourth 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⁾	$	11,896		$	1,765		$	4,878		$	1,275		$	2,082		$	2,150		$	1,386	$	(1,640	)
Noninterest income		13,517			1,644			2,208			2,516			734			3,449			2,662		304

Total revenue, net of interest expense		25,413			3,409			7,086			3,791			2,816			5,599			4,048		(1,336	)

Provision for credit losses		10,110			75			6,854			2,249			1,843			547			53		(1,511	)
Noninterest expense		16,385			2,326			1,877			3,164			930			3,594			3,143		1,351

Income (loss) before income taxes		(1,082	)		1,008			(1,645	)		(1,622	)		43			1,458			852		(1,176	)
Income tax expense (benefit) ⁽²⁾		(888	)		398			(651	)		(628	)		74			23			323		(427	)

Net income (loss)	$	(194	)	$	610		$	(994	)	$	(994	)	$	(31	)	$	1,435		$	529	$	(749	)


Average
Total loans and leases	$	905,913			n/m		$	199,756		$	132,326		$	219,239		$	99,635		$	100,238	$	154,038
Total assets ⁽³⁾		2,431,024		$	441,478			215,447			232,827			301,865			746,258			249,353		n/m
Total deposits		995,160			416,534			n/m			n/m			143,182			108,544			223,055		78,635
Allocated equity		250,599			23,876			41,696			26,214			42,307			51,523			17,409		47,574

Period end
Total loans and leases	$	900,128			n/m		$	196,289		$	131,302		$	215,237		$	95,930		$	99,571	$	161,153
Total assets ⁽³⁾		2,230,232		$	444,612			212,668			232,588			295,947			649,876			250,963		n/m
Total deposits		991,611			419,583			n/m			n/m			147,023			102,093			224,839		65,434

(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.		18

Bank of America Corporation and Subsidiaries

Year-to-Date Results by Business Segment

(Dollars in millions)


	Year Ended December 31, 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⁾	$	52,693		$	8,128	$	17,821		$	4,690		$	8,086		$	7,989		$	5,831	$	148
Noninterest income		58,697			5,053		7,800			5,957			2,817			20,509			10,840		5,721

Total revenue, net of interest expense		111,390			13,181		25,621			10,647			10,903			28,498			16,671		5,869

Provision for credit losses		28,435			201		12,648			8,490			1,971			(155	)		646		4,634
Noninterest expense		83,108			10,831		17,353			15,163			3,874			18,038			13,598		4,251

Income (loss) before income taxes		(153	)		2,149		(4,380	)		(13,006	)		5,058			10,615			2,427		(3,016	)
Income tax expense (benefit) ⁽²⁾		2,085			797		2,223			(4,085	)		1,877			4,296			1,080		(4,103	)

Net income (loss)	$	(2,238	)	$	1,352	$	(6,603	)	$	(8,921	)	$	3,181		$	6,319		$	1,347	$	1,087


Average
Total loans and leases	$	958,331			n/m	$	176,232		$	129,236		$	203,339		$	98,604		$	99,491	$	250,956
Total assets ⁽³⁾		2,439,602		$	435,994		181,766			226,352			306,302			758,958			266,638		n/m
Total deposits		988,586			411,001		n/m			n/m			148,565			109,792			236,350		55,769
Allocated equity		233,231			24,204		36,567			26,170			41,624			52,604			18,098		33,964

Period end
Total loans and leases	$	940,440			n/m	$	167,367		$	122,935		$	193,573		$	100,010		$	101,020	$	255,155
Total assets ⁽³⁾		2,264,909		$	432,334		169,762			213,455			310,131			655,535			297,301		n/m
Total deposits		1,010,430			406,856		n/m			n/m			161,260			111,447			266,444		38,162

	Year Ended December 31, 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⁾	$	48,410		$	7,089	$	19,972		$	4,975		$	8,054		$	9,553		$	5,988	$	(7,221	)
Noninterest income		72,534			6,801		9,074			11,928			3,087			23,070			10,149		8,425

Total revenue, net of interest expense		120,944			13,890		29,046			16,903			11,141			32,623			16,137		1,204

Provision for credit losses		48,570			343		29,553			11,244			7,768			1,998			1,061		(3,397	)
Noninterest expense		66,713			9,501		7,726			11,705			3,833			15,921			12,397		5,630

Income (loss) before income taxes		5,661			4,046		(8,233	)		(6,046	)		(460	)		14,704			2,679		(1,029	)
Income tax expense (benefit) ⁽²⁾		(615	)		1,470		(2,972	)		(2,195	)		(170	)		4,646			963		(2,357	)

Net income (loss)	$	6,276		$	2,576	$	(5,261	)	$	(3,851	)	$	(290	)	$	10,058		$	1,716	$	1,328


Average
Total loans and leases	$	948,805			n/m	$	211,981		$	130,519		$	229,102		$	110,811		$	103,384	$	162,302
Total assets ⁽³⁾		2,443,068		$	431,564		228,438			230,123			283,936			778,870			249,887		n/m
Total deposits		980,966			406,823		n/m			n/m			129,832			104,868			225,979		88,736
Allocated equity		244,645			23,594		41,031			20,530			41,931			49,502			16,582		51,475

Period end
Total loans and leases	$	900,128			n/m	$	196,289		$	131,302		$	215,237		$	95,930		$	99,571	$	161,153
Total assets ⁽³⁾		2,230,232		$	444,612		212,668			232,588			295,947			649,876			250,963		n/m
Total deposits		991,611			419,583		n/m			n/m			147,023			102,093			224,839		65,434

(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.		19

Bank of America Corporation and Subsidiaries

Deposits Segment Results

(Dollars in millions)


	Year Ended December 31								Fourth Quarter				Third Quarter				Second Quarter				First Quarter			Fourth Quarter
	2010				2009				2010				2010				2010				2010			2009
Net interest income ⁽¹⁾:
Direct	$	8,564			$	7,124			$	2,243			$	2,290			$	2,085			$	1,946		$	1,828
Residual		(436	)			(35	)			(298	)			(368	)			30				200			(63	)

Total net interest income		8,128				7,089				1,945				1,922				2,115				2,146			1,765
Noninterest income:
Service charges		5,058				6,796				946				1,138				1,494				1,480			1,645
All other income (loss)		(5	)			5				(7	)			—				(5	)			7			(1	)

Total noninterest income		5,053				6,801				939				1,138				1,489				1,487			1,644

Total revenue, net of interest expense		13,181				13,890				2,884				3,060				3,604				3,633			3,409

Provision for credit losses		201				343				41				62				61				37			75
Noninterest expense		10,831				9,501				3,153				2,693				2,490				2,495			2,326

Income (loss) before income taxes		2,149				4,046				(310	)			305				1,053				1,101			1,008
Income tax expense (benefit) ⁽¹⁾		797				1,470				(109	)			110				385				411			398

Net income (loss)	$	1,352			$	2,576			$	(201	)		$	195			$	668			$	690		$	610


Net interest yield ⁽¹⁾		1.99		%		1.75		%		1.91		%		1.87		%		2.05		%		2.11	%		1.69		%
Return on average equity		5.58				10.92				n/m				3.17				11.07				11.60			10.14
Efficiency ratio ⁽¹⁾		82.17				68.40				109.32				88.03				69.08				68.67			68.23

Balance sheet

Average
Total earning assets ⁽²⁾	$	409,359			$	405,104			$	403,962			$	407,025			$	414,178			$	412,390		$	414,798
Total assets ⁽²⁾		435,994				431,564				431,193				433,203				440,627				439,070			441,478
Total deposits		411,001				406,823				406,278				408,009				415,669				414,169			416,534
Allocated equity		24,204				23,594				24,103				24,382				24,212				24,116			23,876

Period end
Total earning assets ⁽²⁾	$	403,926			$	417,713			$	403,926			$	405,552			$	410,919			$	416,174		$	417,713
Total assets ⁽²⁾		432,334				444,612				432,334				431,604				436,932				442,525			444,612
Total deposits		406,856				419,583				406,856				406,340				411,679				417,541			419,583

(1)

Fully taxable-equivalent basis

(2)

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.		20

Bank of America Corporation and Subsidiaries

Deposits Key Indicators

(Dollars in millions, except as noted)


	Year Ended December 31						Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
	2010			2009			2010			2010			2010			2010			2009
Average deposit balances
Checking	$	147,248		$	134,179		$	148,860		$	147,112		$	149,198		$	143,767		$	138,997
Savings		34,762			31,614			35,079			35,135			35,467			33,345			31,995
MMS		121,352			94,330			123,472			122,959			122,089			116,796			108,848
CDs and IRAs		104,289			143,519			95,246			99,690			105,598			116,911			133,714
Non-U.S. and other		3,350			3,181			3,621			3,113			3,317			3,350			2,980

Total average deposit balances	$	411,001		$	406,823		$	406,278		$	408,009		$	415,669		$	414,169		$	416,534


Deposit spreads (excludes noninterest costs)
Checking		3.75	%		3.99	%		3.61	%		3.76	%		3.82	%		3.82	%		3.82	%
Savings		3.64			3.81			3.51			3.63			3.70			3.73			3.67
MMS		1.18			0.43			1.55			1.53			0.84			0.77			0.59
CDs and IRAs		0.23			0.04			0.32			0.28			0.22			0.12			0.02
Non-U.S. and other		4.10			3.58			3.84			4.31			4.14			4.15			3.45
Total deposit spreads		2.08			1.74			2.19			2.22			2.01			1.90			1.73

Online banking (end of period)
Active accounts (units in thousands)		29,345			29,600			29,345			29,313			29,195			29,850			29,600
Active billpay accounts (units in thousands)		14,986			14,966			14,986			14,941			14,902			15,078			14,966

LOGO

Bank of America maintains a strong active online banking customer base with 29.3 million subscribers.

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

15.0 million active bill pay users paid $76.8 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.		21

Bank of America Corporation and Subsidiaries

Global Card Services Segment Results ⁽¹⁾

(Dollars in millions)


	Year Ended December 31								Fourth Quarter				Third Quarter				Second Quarter			First Quarter			Fourth Quarter
	2010				2009				2010				2010				2010			2010			2009
Net interest income ⁽²⁾:
Direct	$	17,872			$	19,977			$	4,238			$	4,405			$	4,436		$	4,793		$	4,887
Residual		(51	)			(5	)			(35	)			(44	)			3			25			(9	)

Total net interest income		17,821				19,972				4,203				4,361				4,439			4,818			4,878
Noninterest income:
Card income		7,658				8,553				2,000				1,877				1,900			1,881			2,093
All other income (loss)		142				521				43				(527	)			522			104			115

Total noninterest income		7,800				9,074				2,043				1,350				2,422			1,985			2,208

Total revenue, net of interest expense		25,621				29,046				6,246				5,711				6,861			6,803			7,086

Provision for credit losses		12,648				29,553				2,141				3,177				3,795			3,535			6,854
Goodwill impairment		10,400				—				—				10,400				—			—			—
All other noninterest expense ⁽³⁾		6,953				7,726				1,746				1,699				1,776			1,732			1,877

Income (loss) before income taxes		(4,380	)			(8,233	)			2,359				(9,565	)			1,290			1,536			(1,645	)
Income tax expense (benefit) ⁽²⁾		2,223				(2,972	)			874				306				470			573			(651	)

Net income (loss)	$	(6,603	)		$	(5,261	)		$	1,485			$	(9,871	)		$	820		$	963		$	(994	)


Net interest yield ⁽²⁾		10.10		%		9.43		%		9.94		%		10.09		%		10.01	%		10.32	%		9.71		%
Return on average equity		n/m				n/m				21.41				n/m				8.12			9.05			n/m
Efficiency ratio ⁽²⁾		67.73				26.60				27.97				n/m				25.86			25.48			26.48
Efficiency ratio, excluding goodwill impairment impact ^(2, 3)		27.14				26.60				27.97				29.75				25.86			25.48			26.48

Balance sheet

Average
Total loans and leases	$	176,232			$	211,981			$	167,156			$	171,191			$	177,571		$	189,307		$	199,756
Total earning assets		176,525				211,737				167,716				171,456				177,868			189,353			199,383
Total assets		181,766				228,438				167,745				177,634				186,195			195,845			215,447
Allocated equity		36,567				41,031				27,499				35,270				40,517			43,170			41,696

Period end
Total loans and leases	$	167,367			$	196,289			$	167,367			$	168,845			$	173,021		$	181,763		$	196,289
Total earning assets		168,224				196,046				168,224				169,615				173,497			182,267			196,046
Total assets		169,762				212,668				169,762				169,813				183,334			190,996			212,668

(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 48).

(2)

Fully taxable-equivalent basis

(3)

Excludes goodwill impairment of $10.4 billion in the third quarter of 2010 and year ended December 31, 2010.

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 Card Services Key Indicators ⁽¹⁾

(Dollars in millions)


	Year Ended December 31						Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
	2010			2009			2010			2010			2010			2010			2009
Credit Card Data ⁽²⁾

Loans
Average
Securitization impact		n/a		$	98,453			n/a			n/a			n/a			n/a		$	91,705
Held credit card outstandings	$	145,973			72,033		$	140,130		$	142,298		$	146,444		$	155,225			70,893

Total credit card outstandings	$	145,973		$	170,486		$	140,130		$	142,298		$	146,444		$	155,225		$	162,598


Period end
Securitization impact		n/a		$	89,715			n/a			n/a			n/a			n/a		$	89,715
Held credit card outstandings	$	141,250			71,109		$	141,250		$	140,871		$	143,130		$	149,555			71,109

Total credit card outstandings	$	141,250		$	160,824		$	141,250		$	140,871		$	143,130		$	149,555		$	160,824


Credit Quality
Charge-offs $
Securitization impact		n/a		$	11,399			n/a			n/a			n/a			n/a		$	2,926
Held net charge-offs	$	15,234			7,786		$	2,911		$	3,270		$	4,459		$	4,594			1,941

Total credit card net losses	$	15,234		$	19,185		$	2,911		$	3,270		$	4,459		$	4,594		$	4,867


Charge-offs %
Securitization impact		n/a			0.44	%		n/a			n/a			n/a			n/a			1.02	%
Held net charge-offs		10.44	%		10.81			8.24	%		9.12	%		12.21	%		12.00	%		10.86

Total credit card net losses		10.44	%		11.25	%		8.24	%		9.12	%		12.21	%		12.00	%		11.88	%


30+ Delinquency $
Securitization impact		n/a		$	6,599			n/a			n/a			n/a			n/a		$	6,599
Held delinquency	$	7,268			5,011		$	7,268		$	7,643		$	8,256		$	10,172			5,011

Total delinquency	$	7,268		$	11,610		$	7,268		$	7,643		$	8,256		$	10,172		$	11,610


30+ Delinquency %
Securitization impact		n/a			0.17	%		n/a			n/a			n/a			n/a			0.17	%
Held delinquency		5.15	%		7.05			5.15	%		5.43	%		5.77	%		6.80	%		7.05

Total delinquency		5.15	%		7.22	%		5.15	%		5.43	%		5.77	%		6.80	%		7.22	%


90+ Delinquency $
Securitization impact		n/a		$	3,550			n/a			n/a			n/a			n/a		$	3,550
Held delinquency	$	3,919			2,673		$	3,919		$	4,007		$	4,542		$	5,589			2,673

Total delinquency	$	3,919		$	6,223		$	3,919		$	4,007		$	4,542		$	5,589		$	6,223


90+ Delinquency %
Securitization impact		n/a			0.11	%		n/a			n/a			n/a			n/a			0.11	%
Held delinquency		2.77	%		3.76			2.77	%		2.84	%		3.17	%		3.74	%		3.76

Total delinquency		2.77	%		3.87	%		2.77	%		2.84	%		3.17	%		3.74	%		3.87	%


Other Global Card Services Key Indicators


Credit card data
Gross interest yield		11.03	%		11.38	%		10.92	%		11.13	%		10.89	%		11.18	%		11.34	%
Risk adjusted margin		2.92			1.92			5.40			3.28			1.33			1.83			1.47
New account growth (in thousands)		2,903			4,174			790			710			664			739			988
Purchase volumes	$	213,316		$	207,906		$	56,458		$	54,257		$	53,924		$	48,677		$	54,875

Debit Card Data
Debit purchase volumes	$	234,080		$	218,241		$	60,866		$	58,011		$	59,136		$	56,067		$	57,186

(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.		23

Bank of America Corporation and Subsidiaries

Home Loans & Insurance Segment Results

(Dollars in millions; except as noted)


	Year Ended December 31								Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009
	2010				2009				Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009
Net interest income ⁽¹⁾:
Direct	$	4,763			$	4,981			$	1,182			$	1,405			$	995			$	1,181			$1,285
Residual		(73	)			(6	)			(51	)			(59	)			5				32			(10)

Total net interest income		4,690				4,975				1,131				1,346				1,000				1,213			1,275
Noninterest income:
Mortgage banking income (loss)		3,079				9,321				(1,338	)			1,756				1,020				1,641			1,816
Insurance income		2,257				2,346				532				574				561				590			618
All other income		621				261				159				68				214				180			82

Total noninterest income (loss)		5,957				11,928				(647	)			2,398				1,795				2,411			2,516

Total revenue, net of interest expense		10,647				16,903				484				3,744				2,795				3,624			3,791

Provision for credit losses		8,490				11,244				1,198				1,302				2,390				3,600			2,249
Goodwill impairment		2,000				—				2,000				—				—				—			—
All other noninterest expense ⁽²⁾		13,163				11,705				4,038				2,979				2,817				3,329			3,164

Loss before income taxes		(13,006	)			(6,046	)			(6,752	)			(537	)			(2,412	)			(3,305	)		(1,622)
Income tax benefit ⁽¹⁾		(4,085	)			(2,195	)			(1,781	)			(193	)			(878	)			(1,233	)		(628)

Net loss	$	(8,921	)		$	(3,851	)		$	(4,971	)		$	(344	)		$	(1,534	)		$	(2,072	)		$(994)


Net interest yield ⁽¹⁾		2.52		%		2.58		%		2.48		%		2.87		%		2.13		%		2.58		%	2.64	%
Efficiency ratio ⁽¹⁾		142.42				69.25				n/m				79.57				100.78				91.85			83.48
Efficiency ratio, excluding goodwill impairment impact ^{(1, 2)}		123.63				69.25				n/m				79.57				100.78				91.85			83.48

Balance sheet

Average
Total loans and leases	$	129,236			$	130,519			$	124,934			$	127,713			$	130,664			$	133,745			$132,326
Total earning assets		186,455				193,152				180,960				186,022				188,146				190,805			191,544
Total assets		226,352				230,123				219,192				223,133				229,168				234,116			232,827
Allocated equity		26,170				20,530				24,451				26,628				26,346				27,280			26,214

Period end
Total loans and leases	$	122,935			$	131,302			$	122,935			$	127,701			$	129,798			$	132,428			$131,302
Total earning assets		173,033				188,349				173,033				178,970				188,091				183,898			188,349
Total assets		213,455				232,588				213,455				215,592				225,492				224,570			232,588

Period end (in billions)
Mortgage servicing portfolio ⁽³⁾	$	2,056.8			$	2,150.8			$	2,056.8			$	2,079.5			$	2,127.6			$	2,143.7			$2,150.8

(1)

Fully taxable-equivalent basis

(2)

Excludes goodwill impairment of $2.0 billion in the fourth quarter of 2010 and year ended December 31, 2010.

(3)

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

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.		24

Bank of America Corporation and Subsidiaries

Home Loans & Insurance Key Indicators

(Dollars in millions, except as noted)


	Year Ended December 31								Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009
	2010				2009				Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009
Mortgage servicing rights at fair value rollforward:
Balance, beginning of period	$	19,465			$	12,733			$	12,251			$	14,745			$	18,842			$	19,465			$	17,539
Merrill Lynch balance, January 1, 2009		—				209				—				—				—				—				—
Net additions		3,515				5,728				757				745				882				1,131				1,035
Impact of customer payments		(3,759	)			(4,491	)			(799	)			(923	)			(981	)			(1,056	)			(1,089	)
Other changes in MSR fair value		(4,321	)			5,286				2,691				(2,316	)			(3,998	)			(698	)			1,980

Balance, end of period	$	14,900			$	19,465			$	14,900			$	12,251			$	14,745			$	18,842			$	19,465

Capitalized mortgage servicing rights
(% of loans serviced)		92		bps		113		bps		92		bps		73		bps		86		bps		110		bps		113		bps
Mortgage loans serviced for investors (in billions)	$	1,628			$	1,716			$	1,628			$	1,669			$	1,706			$	1,717			$	1,716

Loan production:
Home Loans & Insurance
First mortgage	$	287,236			$	354,506			$	81,255			$	69,875			$	69,141			$	66,965			$	83,503
Home equity		7,626				10,488				2,024				2,000				1,831				1,771				2,420
Total Corporation ⁽¹⁾
First mortgage		298,038				378,105				84,673				71,925				71,938				69,502				86,588
Home equity		8,437				13,214				2,137				2,136				2,137				2,027				2,787

Mortgage banking income (loss)
Production income (loss):
Core production revenue	$	6,098			$	7,352			$	1,538			$	1,849			$	1,428			$	1,283			$	1,576
Representations and warranties		(6,786	)			(1,851	)			(4,140	)			(872	)			(1,248	)			(526	)			(516	)

Total production income (loss)		(688	)			5,501				(2,602	)			977				180				757				1,060

Servicing income:
Servicing fees		6,475				6,219				1,634				1,623				1,649				1,569				1,601
Impact of customer payments		(3,760	)			(4,491	)			(799	)			(924	)			(981	)			(1,056	)			(1,089	)
Fair value changes of MSRs, net of economic hedge results ⁽²⁾		376				1,539				257				(90	)			12				197				95
Other servicing-related revenue		676				553				172				170				160				174				149

Total net servicing income		3,767				3,820				1,264				779				840				884				756

Total Home Loans & Insurance mortgage banking income (loss)		3,079				9,321				(1,338	)			1,756				1,020				1,641				1,816
Other business segments’ mortgage banking loss ⁽³⁾		(345	)			(530	)			(81	)			(1	)			(122	)			(141	)			(164	)

Total consolidated mortgage banking income (loss)	$	2,734			$	8,791			$	(1,419	)		$	1,755			$	898			$	1,500			$	1,652

(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.		25

Bank of America Corporation and Subsidiaries

Global Commercial Banking Segment Results

(Dollars in millions)


	Year Ended December 31								Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009
	Year Ended December 31
	2010				2009
Net interest income ⁽¹⁾:
Direct	$	8,316			$	8,072			$	2,039			$	2,065			$	2,103		$	2,109		$	2,113
Residual		(230	)			(18	)			(158	)			(191	)			15			104			(31	)

Total net interest income		8,086				8,054				1,881				1,874				2,118			2,213			2,082
Noninterest income:
Service charges		2,105				2,078				506				528				528			543			522
All other income		712				1,009				149				157				132			274			212

Total noninterest income		2,817				3,087				655				685				660			817			734

Total revenue, net of interest expense		10,903				11,141				2,536				2,559				2,778			3,030			2,816

Provision for credit losses		1,971				7,768				(132	)			554				623			926			1,843
Noninterest expense		3,874				3,833				998				1,000				909			967			930

Income (loss) before income taxes		5,058				(460	)			1,670				1,005				1,246			1,137			43
Income tax expense (benefit) ⁽¹⁾		1,877				(170	)			629				368				456			424			74

Net income (loss)	$	3,181			$	(290	)		$	1,041			$	637			$	790		$	713		$	(31	)


Net interest yield ⁽¹⁾		2.94		%		3.19		%		2.66		%		2.61		%		3.13	%		3.39	%		3.04		%
Return on average equity		7.64				n/m				10.14				6.14				7.55			6.78			n/m
Efficiency ratio ⁽¹⁾		35.52				34.40				39.32				39.06				32.73			31.92			33.02

Balance sheet

Average
Total loans and leases	$	203,339			$	229,102			$	194,825			$	198,839			$	206,111		$	213,841		$	219,239
Total earning assets ⁽²⁾		275,356				252,309				280,094				284,941				271,566			264,549			271,354
Total assets ⁽²⁾		306,302				283,936				311,406				315,632				302,842			295,043			301,865
Total deposits		148,565				129,832				156,598				148,534				145,427			143,557			143,182
Allocated equity		41,624				41,931				40,732				41,172				41,971			42,645			42,307

Period end
Total loans and leases	$	193,573			$	215,237			$	193,573			$	195,858			$	203,173		$	211,255		$	215,237
Total earning assets ⁽²⁾		277,551				264,855				277,551				271,411				272,830			271,288			264,855
Total assets ⁽²⁾		310,131				295,947				310,131				302,684				303,996			301,622			295,947
Total deposits		161,260				147,023				161,260				150,981				147,400			145,654			147,023

(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.		26

Bank of America Corporation and Subsidiaries

Global Commercial Banking Key Indicators

(Dollars in millions)


	Year Ended December 31						Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009
	2010			2009			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009
Revenue, net of interest expense by service segment
Business lending	$	6,587		$	6,886		$	1,501		$	1,555		$	1,654		$	1,877		$	1,745
Treasury services		4,316			4,255			1,035			1,004			1,124			1,153			1,071

Total revenue, net of interest expense ⁽¹⁾	$	10,903		$	11,141		$	2,536		$	2,559		$	2,778		$	3,030		$	2,816


Average loans and leases by product
U.S. commercial	$	104,154		$	118,709		$	102,913		$	101,446		$	104,261		$	108,081		$	111,341
Commercial real estate		51,771			62,452			45,853			49,748			53,721			57,917			60,352
Direct/Indirect consumer		45,068			45,243			43,711			45,400			45,776			45,400			45,002
Other		2,346			2,698			2,348			2,245			2,353			2,443			2,544

Total average loans and leases	$	203,339		$	229,102		$	194,825		$	198,839		$	206,111		$	213,841		$	219,239

Loan spread		2.30	%		2.05	%		2.27	%		2.29	%		2.32	%		2.30	%		2.18	%

Credit quality
Reservable utilized criticized exposure ⁽²⁾	$	32,816		$	41,225		$	32,816		$	36,332		$	37,613		$	39,586		$	41,225
		16.74	%		18.75	%		16.74	%		18.45	%		18.50	%		18.53	%		18.75	%
Nonperforming loans, leases and foreclosed properties ⁽³⁾	$	8,681		$	11,083		$	8,681		$	9,414		$	10,027		$	10,814		$	11,083
		4.47	%		5.12	%		4.47	%		4.79	%		4.92	%		5.10	%		5.13	%

Average deposit balances
Interest-bearing	$	54,320		$	51,074		$	55,346		$	53,558		$	54,187		$	54,183		$	53,862
Noninterest-bearing		94,245			78,758			101,252			94,976			91,240			89,374			89,320

Total	$	148,565		$	129,832		$	156,598		$	148,534		$	145,427		$	143,557		$	143,182

(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.		27

Bank of America Corporation and Subsidiaries

Global Banking & Markets Segment Results

(Dollars in millions)


	Year Ended								Fourth				Third				Second				First				Fourth
	December 31								Quarter				Quarter				Quarter				Quarter				Quarter
	2010				2009				2010				2010				2010				2010				2009
Net interest income ⁽¹⁾:
Direct	$	8,086			$	9,793			$	2,059			$	1,955			$	1,968			$	2,104			$	2,215
Residual		(97	)			(240	)			(67	)			(81	)			9				42				(65	)

Total net interest income		7,989				9,553				1,992				1,874				1,977				2,146				2,150
Noninterest income:
Service charges		2,126				2,044				558				520				529				519				565
Investment and brokerage services		2,441				2,662				561				581				676				623				596
Investment banking income		5,408				5,927				1,584				1,306				1,301				1,217				1,970
Trading account profits		9,689				11,803				962				2,453				1,202				5,072				1,377
All other income (loss)		845				634				(90	)			442				320				173				(1,059	)

Total noninterest income		20,509				23,070				3,575				5,302				4,028				7,604				3,449

Total revenue, net of interest expense		28,498				32,623				5,567				7,176				6,005				9,750				5,599

Provision for credit losses		(155	)			1,998				(112	)			(157	)			(133	)			247				547
Noninterest expense		18,038				15,921				4,436				4,446				4,788				4,368				3,594

Income before income taxes		10,615				14,704				1,243				2,887				1,350				5,135				1,458
Income tax expense ⁽¹⁾		4,296				4,646				519				1,439				422				1,916				23

Net income	$	6,319			$	10,058			$	724			$	1,448			$	928			$	3,219			$	1,435


Return on average equity		12.01		%		20.32		%		5.77		%		10.94		%		7.00		%		23.71		%		11.05		%
Efficiency ratio ⁽¹⁾		63.30				48.80				79.69				61.96				79.73				44.80				64.19

Sales and trading revenue
Fixed income, currency and commodities	$	13,158			$	12,723			$	1,800			$	3,527			$	2,316			$	5,515			$	1,270
Equity income		4,145				4,902				789				974				852				1,530				950

Total sales and trading revenue ⁽²⁾	$	17,303			$	17,625			$	2,589			$	4,501			$	3,168			$	7,045			$	2,220


Balance sheet

Average
Total trading-related assets⁽³⁾	$	499,433			$	508,163			$	478,574			$	497,954			$	512,566			$	508,986			$	493,700
Total loans and leases		98,604				110,811				100,620				98,847				95,902				99,027				99,635
Total market-based earning assets		504,360				481,376				475,021				494,771				521,010				527,316				490,557
Total earning assets⁽⁴⁾		598,613				588,252				581,470				584,986				607,915				620,663				585,394
Total assets⁽⁴⁾		758,958				778,870				741,300				745,097				771,267				778,731				746,258
Total deposits		109,792				104,868				115,325				106,865				112,959				103,925				108,544
Allocated equity		52,604				49,502				49,765				52,519				53,138				55,053				51,523

Period end
Total trading-related assets⁽³⁾	$	413,563			$	410,755			$	413,563			$	508,611			$	471,314			$	440,524			$	410,755
Total loans and leases		100,010				95,930				100,010				99,476				95,647				95,588				95,930
Total market-based earning assets		416,174				404,315				416,174				500,664				463,069				440,304				404,315
Total earning assets ⁽⁴⁾		509,269				498,765				509,269				593,911				549,911				530,954				498,765
Total assets⁽⁴⁾		655,535				649,876				655,535				747,917				711,444				687,308				649,876
Total deposits		111,447				102,093				111,447				109,956				105,942				104,918				102,093

Trading-related assets (average)
Trading account securities	$	202,650			$	202,145			$	201,003			$	201,500			$	204,143			$	203,998			$	200,914
Reverse repurchases		176,870				163,413				160,266				174,297				184,146				189,118				173,574
Securities borrowed		54,360				49,702				50,514				54,782				57,309				54,878				53,092
Derivative assets		65,553				92,903				66,791				67,375				66,968				60,992				66,120

Total trading-related assets ⁽³⁾	$	499,433			$	508,163			$	478,574			$	497,954			$	512,566			$	508,986			$	493,700



(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	$	*28,498*			$	32,623			$	*5,567*			$	7,176			$	6,005			$	9,750			$	5,599
Total Global Banking revenue, net of interest expense		*(9,237*	)			(11,995	)			*(2,268*	)			(2,287	)			(2,391	)			(2,290	)			(2,152	)
Investment banking income		*(2,454*	)			(2,848	)			*(689*	)			(573	)			(596	)			(596	)			(908	)
Fair value option net interest income		*(175*	)			(262	)			*(39*	)			(54	)			(35	)			(47	)			(55	)
Revenue (loss) shared		*671*				55				18				239				185				228				(264	)
Loss on sale of prime brokerage business		—				52				—				—				—				—				—

Total sales and trading revenue	$	*17,303*			$	17,625			$	*2,589*			$	4,501			$	3,168			$	7,045			$	2,220

(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.		28

Bank of America Corporation and Subsidiaries

Global Banking & Markets Key Indicators

(Dollars in millions)


	Year Ended								Fourth				Third				Second				First				Fourth
	December 31								Quarter				Quarter				Quarter				Quarter				Quarter
	2010				2009				2010				2010				2010				2010				2009
Investment banking income ⁽¹⁾
Advisory ⁽²⁾	$	1,019			$	1,167			$	337			$	273			$	242			$	167			$	360
Debt issuance		3,267				3,124				869				798				827				773				805
Equity issuance		1,499				1,964				496				341				318				344				893

		5,785				6,255				1,702				1,412				1,387				1,284				2,058
Offset for intercompany fees ⁽³⁾		(265	)			(704	)			(112	)			(41	)			(68	)			(44	)			(462	)

Total investment banking income	$	5,520			$	5,551			$	1,590			$	1,371			$	1,319			$	1,240			$	1,596


Global Corporate & Investment Banking Key Indicators

Revenue, net of interest expense - by service segment
Business lending	$	3,391			$	2,824			$	752			$	815			$	871			$	953			$	747
Treasury services		2,765				6,689				734				651				711				669				702
Investment banking related ⁽⁴⁾		3,075				2,483				781				820				806				668				702

Total revenue, net of interest expense	$	9,231			$	11,996			$	2,267			$	2,286			$	2,388			$	2,290			$	2,151

Average deposit balances
Interest-bearing	$	55,186			$	47,325			$	59,076			$	55,839			$	55,116			$	50,614			$	49,155
Noninterest-bearing		46,538				48,265				48,519				44,046				49,073				44,497				49,591

Total average deposits	$	101,724			$	95,590			$	107,595			$	99,885			$	104,189			$	95,111			$	98,746


Loan spread		1.81		%		1.57		%		1.62		%		1.77		%		1.94		%		1.94		%		1.61		%

Provision for credit losses	$	(192	)		$	1,598			$	(110	)		$	(101	)		$	(191	)		$	211			$	295

Credit quality ^{(5, 6)}
Reservable utilized criticized exposure	$	5,924			$	10,989			$	5,924			$	7,131			$	7,290			$	9,664			$	10,989
		5.67		%		10.72		%		5.67		%		6.95		%		7.29		%		9.69		%		10.72		%
Nonperforming loans, leases and foreclosed properties	$	645			$	1,240			$	645			$	992			$	905			$	922			$	1,240
		0.77		%		1.49		%		0.77		%		1.19		%		1.13		%		1.16		%		1.49		%
Average loans and leases by product
U.S. commercial	$	33,983			$	45,436			$	33,521			$	32,682			$	33,594			$	36,178			$	39,664
Commercial real estate		29				69				24				26				31				36				46
Commercial lease financing		23,392				24,132				23,271				23,356				23,250				23,696				23,873
Non-U.S. commercial		23,964				24,391				26,544				24,646				22,705				21,901				22,375
Direct/Indirect consumer		2				2				2				2				1				2				2
Other		41				57				40				40				42				43				45

Total average loans and leases	$	81,411			$	94,087			$	83,402			$	80,752			$	79,623			$	81,856			$	86,005

(1)

Represents total investment banking income for the Corporation, including amounts related to Global Banking & Markets of $5.4 billion and $5.9 billion for the years ended December 31, 2010 and 2009; $1.6 billion, $1.3 billion, $1.3 billion and $1.2 billion for the fourth, third, second and first quarters of 2010 and $2.0 billion for the fourth quarter 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)

(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.		29

Bank of America Corporation and Subsidiaries

Investment Banking Product Rankings

Year Ended December 31, 2010

Global

U.S.

Product
Ranking

Market
Share

Product
Ranking

Market
Share

High-yield corporate debt

10.2

13.7

Leveraged loans

15.7

20.4

Mortgage-backed securities

12.1

14.0

Asset-backed securities

12.5

17.0

Convertible debt

7.6

13.4

Common stock underwriting

6.1

11.3

Investment grade corporate debt

6.1

13.0

Syndicated loans

8.5

20.1

Net investment banking revenue

6.8

11.7

Announced mergers and acquisitions

12.8

18.4

Equity capital markets

6.3

11.7

Debt capital markets

6.3

10.3

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 give full credit to all advisors advising either the target or acquiror.

•

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

Highlights


*Global top 3 rankings in:*

High-yield corporate debt		Convertible debt
Leveraged loans		Investment grade corporate debt
Mortgage-backed securities		Syndicated loans
Asset-backed securities

*U.S. top 3 rankings in:*

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

Excluding self-mandated deals:

Global: #1 - Leveraged loans, mortgage-backed securities

Global: #2 - High-yield corporate debt, asset-backed securities, investment grade corporate debt, syndicated loans

Global: #3 - Convertible debt

US: #1 - High-yield corporate debt, leveraged loans, syndicated loans

US: #2 - Mortgage-backed securities, asset-backed securities, investment grade corporate debt

US: #3 - Convertible debt, common stock underwriting, equity capital markets, debt capital markets


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

Bank of America Corporation and Subsidiaries

Super Senior Collateralized Debt Obligation Exposure

(Dollars in millions)


	December 31, 2010
	Subprime ⁽¹⁾		Retained Positions		Total Subprime		Non- Subprime ⁽²⁾		Total
Unhedged	$	721	$	156	$	877	$	338	$	1,215
Hedged⁽³⁾		583		—		583		189		772

Total	$	1,304	$	156	$	1,460	$	527	$	1,987

(1)

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

(2)

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

(3)

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

Credit Default Swaps with Monoline Financial Guarantors

(Dollars in millions)


	December 31, 2010
	Super Senior CDOs				Other Guaranteed Positions				Total
Notional	$	3,241			$	34,511			$	37,752

Mark-to-market or guarantor receivable		2,834				6,367				9,201
Credit valuation adjustment		(2,168	)			(3,107	)			(5,275	)

Total	$	666			$	3,260			$	3,926

Credit valuation adjustment %		77		%		49		%		57		%

Gains during the three months ended December 31, 2010	$	6			$	62			$	68

(Writedowns) gains during the year ended December 31, 2010		(386	)			362				(24	)

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.		31

Bank of America Corporation and Subsidiaries

Global Wealth & Investment Management Segment Results

(Dollars in millions, except as noted)


	Year Ended December 31								Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009
	2010				2009				Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009
Net interest income ⁽¹⁾:
Direct	$	6,102			$	6,035			$	1,675			$	1,597			$	1,455		$	1,375		$	1,430
Residual		(271	)			(47	)			(187	)			(221	)			19			118			(44	)

Total net interest income		5,831				5,988				1,488				1,376				1,474			1,493			1,386
Noninterest income:
Investment and brokerage services		8,832				8,425				2,307				2,134				2,241			2,150			2,161
All other income		2,008				1,724				484				475				566			483			501

Total noninterest income		10,840				10,149				2,791				2,609				2,807			2,633			2,662

Total revenue, net of interest expense		16,671				16,137				4,279				3,985				4,281			4,126			4,048

Provision for credit losses		646				1,061				155				128				121			242			53
Noninterest expense		13,598				12,397				3,587				3,449				3,369			3,193			3,143

Income before income taxes		2,427				2,679				537				408				791			691			852
Income tax expense ⁽¹⁾		1,080				963				205				151				466			258			323

Net income	$	1,347			$	1,716			$	332			$	257			$	325		$	433		$	529

Net interest yield ⁽¹⁾		2.37		%		2.64		%		2.18		%		2.24		%		2.48	%		2.63	%		2.41		%
Return on average equity		7.44				10.35				7.21				5.65				7.16			9.84			12.07
Efficiency ratio ⁽¹⁾		81.57				76.82				83.83				86.58				78.68			77.38			77.61

Balance sheet
Average
Total loans and leases	$	99,491			$	103,384			$	100,586			$	99,318			$	99,007		$	99,038		$	100,238
Total earning assets ⁽²⁾		245,812				226,856				270,097				243,816				238,401			230,521			227,714
Total assets ⁽²⁾		266,638				249,887				290,995				264,068				259,143			251,943			249,353
Total deposits		236,350				225,979				253,402				237,878				229,272			224,514			223,055
Allocated equity		18,098				16,582				18,260				18,070				18,205			17,852			17,409

Period end
Total loans and leases	$	101,020			$	99,571			$	101,020			$	99,772			$	99,351		$	98,538		$	99,571
Total earning assets ⁽²⁾		275,598				227,796				275,598				244,418				231,574			237,004			227,796
Total assets ⁽²⁾		297,301				250,963				297,301				265,529				252,860			258,953			250,963
Total deposits		266,444				224,839				266,444				243,586				229,551			230,044			224,839

(1)

Fully taxable-equivalent basis

(2)

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.		32

Bank of America Corporation and Subsidiaries

Global Wealth & Investment Management - Key Indicators and Metrics ⁽¹⁾

(Dollars in millions, except as noted)


	Year Ended December 31						Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009
	2010			2009			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009
Revenues
Merrill Lynch Global Wealth Management	$	13,114		$	12,596		$	3,547		$	3,263		$	3,230		$	3,074		$	3,148
U.S. Trust		2,721			2,596			708			691			681			641			645
Retirement Services		950			910			225			242			244			239			233
Other ⁽²⁾		(114	)		35			(201	)		(211	)		126			172			22

Total revenues	$	16,671		$	16,137		$	4,279		$	3,985		$	4,281		$	4,126		$	4,048



Client Balances ⁽³⁾
Client Balances by Business
Merrill Lynch Global Wealth Management	$	1,577,023		$	1,482,057		$	1,577,023		$	1,522,689		$	1,460,283		$	1,502,574		$	1,482,057
U.S. Trust		367,712			384,238			367,712			360,705			355,202			381,025			384,238
Retirement Services		249,212			229,387			249,212			236,819			227,561			236,185			229,387
Other / Client brokerage assets and assets in custody included in assets under management ⁽²⁾		44,596			176,830			44,596			48,918			48,717			166,852			176,830

Client Balances by Type
Assets under management ⁽⁴⁾	$	643,955		$	749,851		$	643,955		$	624,158		$	603,306		$	750,721		$	749,851
Client brokerage assets ⁽⁵⁾		1,480,231			1,402,977			1,480,231			1,436,098			1,375,264			1,423,576			1,402,977
Assets under custody		126,203			144,012			126,203			125,784			131,557			144,705			144,012
Client deposits		266,444			224,839			266,444			243,586			229,551			230,044			224,839
Loans and leases		101,020			99,571			101,020			99,772			99,351			98,538			99,571
Less: Client brokerage assets and assets in custody included in assets under management		(379,310	)		(348,738	)		(379,310	)		(360,267	)		(347,266	)		(360,948	)		(348,738	)

Total client balances	$	2,238,543		$	2,272,512		$	2,238,543		$	2,169,131		$	2,091,763		$	2,286,636		$	2,272,512


Assets Under Management Flows ⁽⁴⁾
Liquidity assets under management ⁽⁶⁾	$	(44,618	)	$	(97,646	)	$	(8,912	)	$	(7,555	)	$	(7,830	)	$	(20,321	)	$	(11,502	)
Long-term assets under management ⁽⁷⁾		19,986			4,970			6,909			6,097			392			6,588			6,893

Total assets under management	$	(24,632	)	$	(92,676	)	$	(2,003	)	$	(1,458	)	$	(7,438	)	$	(13,733	)	$	(4,609	)


Associates

Total Wealth Advisors		16,962			16,571			16,962			16,926			16,723			16,604			16,571

Total Client Facing Professionals		20,010			19,439			20,010			19,987			19,732			19,535			19,439

Merrill Lynch Global Wealth Management Metrics

Number of Financial Advisors		15,498			15,171			15,498			15,476			15,288			15,144			15,171

Financial Advisor Productivity ⁽⁸⁾ (in thousands)	$	854		$	819		$	916		$	843		$	845		$	812		$	830

U.S. Trust Metrics

Client Facing Professionals		2,274			2,277			2,274			2,265			2,243			2,270			2,277

(1)

Global Wealth and Investment Management (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 Services.

(2)

Other includes the results of BofA Global Capital Management (the former Columbia cash management business) and residual net interest income.

(3)

Client balances consists of assets under management, client brokerage assets, assets in custody, client deposits and loans and leases.

(4)

Includes 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.

(6)

Assets under advisory and discretion of GWIM in which the investment strategy seeks a high level of income while maintaining liquidity and capital preservation. The duration of these strategies are less than one year.

(7)

Assets under advisory and discretion of GWIM in which the duration of the investment strategy is longer than one year.

(8)

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

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

All Other Results ⁽¹⁾

(Dollars in millions)


	Year Ended						Fourth			Third			Second			First			Fourth
	December 31						Quarter			Quarter			Quarter			Quarter			Quarter
	2010			2009			2010			2010			2010			2010			2009
Net interest income ⁽²⁾:
Direct	$	(1,010	)	$	(7,572	)	$	(727	)	$	(1,000	)	$	155		$	562		$	(1,862	)
Residual		1,158			351			796			964			(81	)		(521	)		222

Total net interest income		148			(7,221	)		69			(36	)		74			41			(1,640	)
Noninterest income:
Card income (loss)		2			(896	)		2			—			—			—			(432	)
Equity investment income		4,532			10,589			1,500			267			2,252			513			2,163
Gains on sales of debt securities		2,314			4,437			858			794			15			647			852
All other income (loss)		(1,127	)		(5,705	)		(1,757	)		(278	)		785			123			(2,279	)

Total noninterest income		5,721			8,425			603			783			3,052			1,283			304

Total revenue, net of interest expense		5,869			1,204			672			747			3,126			1,324			(1,336	)

Provision for credit losses ⁽³⁾		4,634			(3,397	)		1,838			330			1,248			1,218			(1,511	)
Merger and restructuring charges		1,820			2,721			370			421			508			521			533
All other noninterest expense		2,431			2,909			536			129			596			1,170			818

Income (loss) before income taxes		(3,016	)		(1,029	)		(2,072	)		(133	)		774			(1,585	)		(1,176	)
Income tax benefit ⁽²⁾		(4,103	)		(2,357	)		(2,418	)		(512	)		(352	)		(821	)		(427	)

Net income (loss)	$	1,087		$	1,328		$	346		$	379		$	1,126		$	(764	)	$	(749	)


Balance sheet

Average
Total loans and leases	$	250,956		$	162,302		$	252,154		$	238,457		$	257,245		$	256,151		$	154,038
Total deposits		55,769			88,736			44,282			44,586			64,202			70,417			78,635

Period end
Total loans and leases	$	255,155		$	161,153		$	255,155		$	241,837		$	254,615		$	255,851		$	161,153
Total deposits		38,162			65,434			38,162			37,130			56,986			56,466			65,434

(1)

All Other consists of equity investment activities including Global Principal Investments, Corporate Investments and Strategic Investments (including the Corporation’s equity investment in BlackRock, Inc.), 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 prior to its sale on July 1, 2010, 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 non-U.S.-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 49).

(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.		34

Bank of America Corporation and Subsidiaries

Equity Investments

(Dollars in millions)

Global Principal Investments Exposures

Equity Investment
Income

December 31, 2010

September 30,
2010

December 31, 2010

Book
Value

Unfunded
Commitments

Total

Total

Three Months
Ended

Year
Ended

Global Principal Investments:

Private Equity Investments

4,811

177

4,988

5,001

635

1,468

Global Real Estate

1,789

206

1,995

2,202

Global Strategic Capital

2,550

572

3,122

3,363

193

Legacy/Other Investments

2,506

429

2,935

3,093

154

586

Total Global Principal Investments

11,656

1,384

13,040

13,659

867

2,304

Components of Equity Investment Income (Loss)

(Dollars in millions)


	Year Ended December 31						Fourth Quarter 2010		Third Quarter 2010		Second Quarter 2010		First Quarter 2010			Fourth Quarter 2009
	2010			2009			Fourth Quarter 2010		Third Quarter 2010		Second Quarter 2010		First Quarter 2010			Fourth Quarter 2009
Global Principal Investments	$	2,304		$	1,222		$	867	$	46	$	814	$	577		$	671
Corporate Investments		(293	)		(88	)		6		6		6		(311	)		65
Strategic and other investments ^{(1, 2)}		2,521			9,455			627		215		1,432		247			1,427

Total equity investment income included in All Other		4,532			10,589			1,500		267		2,252		513			2,163
Total equity investment income (loss) included in the business segments		728			(575	)		12		90		514		112			(137	)

Total consolidated equity investment income	$	5,260		$	10,014		$	1,512	$	357	$	2,766	$	625		$	2,026

(1)

For the year ended December 31, 2009, includes a pre-tax gain of $7.2 billion related to the sales of portions of the Corporation’s China Construction Bank investment.

(2)

Includes the Corporation’s equity investment interest in BlackRock.

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

Outstanding Loans and Leases

(Dollars in millions)


	December 31 2010		September 30 2010		Increase (Decrease)
Consumer
Residential mortgage ⁽¹⁾	$	257,973	$	243,141	$	14,832
Home equity		137,981		141,558		(3,577	)
Discontinued real estate ⁽²⁾		13,108		13,442		(334	)
U.S. credit card		113,785		113,609		176
Non-U.S. credit card		27,465		27,262		203
Direct/Indirect consumer⁽³⁾		90,308		92,479		(2,171	)
Other consumer ⁽⁴⁾		2,830		2,924		(94	)

Total consumer		643,450		634,415		9,035


Commercial
U.S. commercial ⁽⁵⁾		190,305		191,096		(791	)
Commercial real estate ⁽⁶⁾		49,393		52,819		(3,426	)
Commercial lease financing		21,942		21,321		621
Non-U.S. commercial		32,029		30,575		1,454

Total commercial loans excluding loans measured at fair value		293,669		295,811		(2,142	)
Commercial loans measured at fair value ⁽⁷⁾		3,321		3,684		(363	)

Total commercial		296,990		299,495		(2,505	)

Total loans and leases	$	940,440	$	933,910	$	6,530

(1)

Includes non-U.S. residential mortgages of $90 million and $98 million at December 31, 2010 and September 30, 2010.

(2)

Includes $11.8 billion and $12.1 billion of pay option loans, and $1.3 billion and $1.4 billion of subprime loans at December 31, 2010 and September 30, 2010. The Corporation no longer originates these products.

(3)

Includes dealer financial services loans of $42.9 billion and $44.5 billion, consumer lending of $12.9 billion and $14.3 billion, U.S. securities-based lending margin loans of $16.6 billion and $15.7 billion, student loans of $6.8 billion and $7.0 billion, non-U.S. consumer loans of $8.0 billion and $7.7 billion, and other consumer loans of $3.1 billion and $3.3 billion at December 31, 2010 and September 30, 2010.

(4)

Includes consumer finance loans of $1.9 billion and $2.0 billion, other non-U.S. consumer loans of $803 million and $846 million, and consumer overdrafts of $88 million and $66 million at December 31, 2010 and September 30, 2010.

(5)

Includes U.S. small business commercial loans, including card related products, of $14.7 billion and $15.2 billion at December 31, 2010 and September 30, 2010.

(6)

Includes U.S. commercial real estate loans of $46.9 billion and $50.1 billion, and non-U.S. commercial real estate loans of $2.5 billion and $2.7 billion at December 31, 2010 and September 30, 2010.

(7)

Certain commercial loans are accounted for under the fair value option and include U.S. commercial loans of $1.6 billion and $1.8 billion, non-U.S. commercial. loans of $1.7 billion and $1.8 billion, and commercial real estate loans of $79 million and $54 million at December 31, 2010 and September 30, 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.		36

Bank of America Corporation and Subsidiaries

Quarterly Average Loans and Leases by Business Segment

(Dollars in millions)


	Fourth 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	$	254,051	$	—	$	—	$	—		$	282	$	104	$	35,476	$	218,189
Home equity		139,772		—		—		122,521			974		—		16,135		142
Discontinued real estate		13,297		—		—		—			—		—		—		13,297
U.S. credit card		112,673		—		112,673		—			—		—		—		—
Non-U.S. credit card		27,457		—		27,457		—			—		—		—		—
Direct/Indirect consumer		91,549		66		14,197		107			43,711		302		26,225		6,941
Other consumer		2,796		39		785		(356	)		—		7		19		2,302

Total consumer		641,595		105		155,112		122,272			44,967		413		77,855		240,871

Commercial
U.S. commercial		193,608		232		10,730		2,656			102,913		46,404		20,711		9,962
Commercial real estate		51,617		2		234		6			45,853		951		1,830		2,741
Commercial lease financing		21,363		—		—		—			1		23,271		35		(1,944	)
Non-U.S. commercial		32,431		—		1,080		—			1,091		29,581		155		524

Total commercial		299,019		234		12,044		2,662			149,858		100,207		22,731		11,283

Total loans and leases	$	940,614	$	339	$	167,156	$	124,934		$	194,825	$	100,620	$	100,586	$	252,154


	Third 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	$	237,292	$	—	$	—	$	—		$	286	$	509	$	35,316	$	201,181
Home equity		143,083		—		—		125,688			914		—		16,330		151
Discontinued real estate		13,632		—		—		—			—		—		—		13,632
U.S. credit card		115,251		—		115,251		—			—		—		—		—
Non-U.S. credit card		27,047		—		27,047		—			—		—		—		—
Direct/Indirect consumer		95,692		71		15,785		95			45,400		388		24,872		9,081
Other consumer		2,955		127		782		(232	)		—		8		16		2,254

Total consumer		634,952		198		158,865		125,551			46,600		905		76,534		226,299

Commercial
U.S. commercial		192,306		295		11,044		2,155			101,446		45,877		20,651		10,838
Commercial real estate		55,660		2		213		7			49,748		911		1,954		2,825
Commercial lease financing		21,402		—		—		—			1		23,365		30		(1,994	)
Non-U.S. commercial		30,540		—		1,069		—			1,044		27,789		149		489

Total commercial		299,908		297		12,326		2,162			152,239		97,942		22,784		12,158

Total loans and leases	$	934,860	$	495	$	171,191	$	127,713		$	198,839	$	98,847	$	99,318	$	238,457


	Fourth 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	$	236,883	$	—	$	—	$	—		$	351	$	557	$	35,797	$	200,178
Home equity		150,704		—		—		130,601			958		—		17,405		1,740
Discontinued real estate		15,152		—		—		—			—		—		—		15,152
U.S. credit card		49,213		—		131,140		—			—		—		—		(81,927	)
Non-U.S. credit card		21,680		—		31,458		—			—		—		—		(9,778	)
Direct/Indirect consumer		98,938		86		22,188		85			45,002		35		23,346		8,196
Other consumer		3,177		209		693		(373	)		—		9		13		2,626

Total consumer		575,747		295		185,479		130,313			46,311		601		76,561		136,187

Commercial
U.S. commercial		207,050		379		12,665		2,004			111,341		47,277		21,367		12,017
Commercial real estate		71,352		7		165		9			60,352		1,233		2,184		7,402
Commercial lease financing		21,769		—		—		—			1		23,873		1		(2,106	)
Non-U.S. commercial		29,995		—		1,447		—			1,234		26,651		125		538

Total commercial		330,166		386		14,277		2,013			172,928		99,034		23,677		17,851

Total loans and leases	$	905,913	$	681	$	199,756	$	132,326		$	219,239	$	99,635	$	100,238	$	154,038

(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.		37

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Commercial Utilized							Total Commercial Committed
	December 31 2010		September 30 2010		Increase (Decrease)			December 31 2010			September 30 2010			Increase (Decrease)
Diversified financials	$	51,916	$	58,176	$	(6,260	)	$	83,248		$	88,222		$	(4,974	)
Real estate ⁽⁴⁾		58,531		64,484		(5,953	)		72,004			79,016			(7,012	)
Government and public education		43,008		45,280		(2,272	)		59,594			61,111			(1,517	)
Healthcare equipment and services		30,420		29,980		440			47,569			47,373			196
Capital goods		21,353		22,693		(1,340	)		46,087			45,598			489
Retailing		24,660		24,130		530			43,950			42,560			1,390
Consumer services		24,659		26,377		(1,718	)		39,694			41,484			(1,790	)
Materials		15,873		15,928		(55	)		33,046			33,082			(36	)
Commercial services and supplies		20,056		20,483		(427	)		30,517			30,893			(376	)
Banks		26,831		28,702		(1,871	)		29,667			31,918			(2,251	)
Food, beverage and tobacco		14,777		14,075		702			28,126			26,861			1,265
Energy		9,765		9,451		314			26,328			24,942			1,386
Insurance		17,263		18,742		(1,479	)		24,417			26,028			(1,611	)
Utilities		6,990		6,687		303			24,207			24,515			(308	)
Individuals and trusts		17,778		20,029		(2,251	)		22,899			25,267			(2,368	)
Media		11,611		11,912		(301	)		20,619			21,133			(514	)
Transportation		12,070		11,895		175			18,436			17,892			544
Pharmaceuticals and biotechnology		3,859		2,583		1,276			11,009			9,625			1,384
Technology hardware and equipment		4,373		4,338		35			10,932			10,673			259
Religious and social organizations		8,409		8,999		(590	)		10,823			11,312			(489	)
Software and services		3,837		3,728		109			9,531			9,345			186
Telecommunication services		3,823		4,054		(231	)		9,321			9,882			(561	)
Consumer durables and apparel		4,297		4,342		(45	)		8,836			8,897			(61	)
Food and staples retailing		3,222		3,278		(56	)		6,161			6,276			(115	)
Automobiles and components		2,090		2,021		69			5,941			5,293			648
Other		13,361		15,559		(2,198	)		17,133			19,241			(2,108	)
Total commercial credit exposure by industry	$	454,832	$	477,926	$	(23,094	)	$	740,095		$	758,439		$	(18,344	)

Net credit default protection purchased on total commitments ⁽⁵⁾								$	(20,118	)	$	(20,487	)

(1)

Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held-for-sale, commercial letters of credit, bankers' acceptances, securitized assets, foreclosed properties and other collateral acquired. Derivative assets are reported on a mark-to-market basis and have been reduced by the amount of cash collateral applied of $58.3 billion and $68.1 billion at December 31, 2010 and September 30, 2010. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $17.7 billion and $19.4 billion which consists primarily of other marketable securities at December 31, 2010 and September 30, 2010.

(2)

Total commercial utilized and total commercial committed exposure includes loans and letters of credit measured at fair value and are comprised of loans outstanding of $3.3 billion and $3.7 billion and issued letters of credit at notional value of $1.4 billion and $1.6 billion at December 31, 2010 and September 30, 2010. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $25.9 billion and $26.9 billion at December 31, 2010 and September 30, 2010.

(3)

Includes U.S. small business commercial 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.		38

Bank of America Corporation and Subsidiaries

Net Credit Default Protection by Maturity Profile⁽¹⁾


	December 31 2010			September 30 2010
Less than or equal to one year		14	%		18	%
Greater than one year and less than or equal to five years		80			78
Greater than five years		6			4
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)


	December 31, 2010						September 30, 2010
Ratings ⁽³⁾	Net Notional			Percent			Net Notional			Percent
AA	$	(188	)		0.9	%	$	(189	)		0.9	%
A		(6,485	)		32.2			(6,577	)		32.0
BBB		(7,731	)		38.4			(8,440	)		41.2
BB		(2,106	)		10.5			(2,206	)		10.8
B		(1,260	)		6.3			(1,634	)		8.0
CCC and below		(762	)		3.8			(853	)		4.2
NR ⁽⁴⁾		(1,586	)		7.9			(588	)		2.9
Total net credit default protection	$	(20,118	)		100.0	%	$	(20,487	)		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 $(1,530) million and $(467) million in net credit default swap index positions at December 31, 2010 and September 30, 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.		39

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 December 31, 2010		Increase (Decrease) from September 30, 2010
Region/Country
Asia Pacific
China ⁽⁷⁾	$	1,064	$	1,237	$	870	$	20,757	$	23,928	$	—	$	23,928	$	(42	)
India		3,292		1,590		607		2,013		7,502		766		8,268		214
South Korea		621		1,156		585		2,009		4,371		908		5,279		(280	)
Singapore		560		75		442		1,469		2,546		—		2,546		857
Hong Kong		349		516		242		935		2,042		—		2,042		602
Taiwan		283		64		84		692		1,123		732		1,855		203
Thailand		20		17		39		569		645		24		669		150
Other Asia Pacific ⁽⁸⁾		298		32		145		239		714		—		714		(298	)
Total Asia Pacific		6,487		4,687		3,014		28,683		42,871		2,430		45,301		1,406
Latin America
Brazil		1,033		293		560		2,355		4,241		1,565		5,806		414
Mexico		1,917		305		303		1,860		4,385		—		4,385		1,973
Chile		954		132		401		38		1,525		1		1,526		(161	)
Colombia		132		460		10		75		677		—		677		342
Peru		231		150		16		121		518		—		518		(62	)
Other Latin America ⁽⁸⁾		74		167		10		456		707		153		860		195
Total Latin America		4,341		1,507		1,300		4,905		12,053		1,719		13,772		2,701
Middle East and Africa
United Arab Emirates		967		6		154		49		1,176		—		1,176		102
Bahrain		78		—		3		1,079		1,160		—		1,160		(99	)
South Africa		406		7		56		102		571		—		571		102
Other Middle East and Africa ⁽⁸⁾		441		55		132		153		781		—		781		(76	)
Total Middle East and Africa		1,892		68		345		1,383		3,688		—		3,688		29
Central and Eastern Europe
Russian Federation		264		133		35		104		536		—		536		103
Turkey		269		165		14		52		500		—		500		(194	)
Other Central and Eastern Europe ⁽⁸⁾		148		210		277		618		1,253		—		1,253		130
Total Central and Eastern Europe		681		508		326		774		2,289		—		2,289		39
Total emerging market exposure	$	13,401	$	6,770	$	4,985	$	35,745	$	60,901	$	4,149	$	65,050	$	4,175

(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. At December 31, 2010 and September 30, 2010 there was $460 million and $0 in emerging market exposure accounted for under the fair value option.

(2)

Includes acceptances, due froms, 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 $1.2 billion and $1.5 billion at December 31, 2010 and September 30, 2010. At December 31, 2010 and September 30, 2010, there were $408 million and $476 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)

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

(6)

Local country exposure includes amounts payable to the Corporation by borrowers with a country of residence in which the credit is booked, regardless of the currency in which the claim is denominated. Local funding or liabilities are subtracted from local exposures consistent with FFIEC reporting requirements. Total amount of available local liabilities funding local country exposure at December 31, 2010 was $15.7 billion compared to $17.9 billion at September 30, 2010. Local liabilities at December 31, 2010 in Asia Pacific, Latin America, and Middle East and Africa were $15.1 billion, $451 million and $193 million, respectively, of which $7.9 billion was in Singapore, $1.8 billion in both China and Hong Kong, $1.2 billion in India, $802 million in South Korea, and $573 million in Taiwan. There were no other countries with available local liabilities funding local country exposure greater than $500 million.

(7)

Securities/Other Investments includes an investment of $19.7 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 non-U.S. exposure of more than $500 million.

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

(Dollars in millions)


	December 31 2010			September 30 2010			June 30 2010			March 31 2010			December 31 2009
Residential mortgage	$	17,691		$	18,291		$	18,283		$	17,763		$	16,596
Home equity ⁽¹⁾		2,694			2,702			2,951			3,335			3,804
Discontinued real estate		331			297			293			279			249
Direct/Indirect consumer		90			83			85			91			86
Other consumer		48			56			72			89			104

Total consumer		20,854			21,429			21,684			21,557			20,839


U.S. commercial ⁽²⁾		3,453			3,894			4,217			4,407			4,925
Commercial real estate		5,829			6,376			6,704			7,177			7,286
Commercial lease financing		117			123			140			147			115
Non-U.S. commercial		233			272			130			150			177

		9,632			10,665			11,191			11,881			12,503
U.S. small business commercial		204			202			222			179			200

Total commercial		9,836			10,867			11,413			12,060			12,703

Total nonperforming loans and leases		30,690			32,296			33,097			33,617			33,542
Foreclosed properties		1,974			2,260			2,501			2,308			2,205

Total nonperforming loans, leases and foreclosed properties ^{(3, 4, 5)}	$	32,664		$	34,556		$	35,598		$	35,925		$	35,747


Federal Housing Administration insured loans past due 90 days or more and still accruing	$	16,768		$	16,427		$	15,338		$	13,589		$	11,680
Other loans past due 90 days or more and still accruing		5,611			5,781			6,448			7,851			5,181

Total loans past due 90 days or more and still accruing ^{(4, 6)}	$	22,379		$	22,208		$	21,786		$	21,440		$	16,861


Nonperforming loans, leases and foreclosed properties/Total assets⁽⁷⁾		1.44	%		1.48	%		1.51	%		1.53	%		1.61	%
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties⁽⁷⁾		3.48			3.71			3.73			3.69			3.98
Nonperforming loans and leases/Total loans and leases⁽⁷⁾		3.27			3.47			3.48			3.46			3.75

Allowance for credit losses:
Allowance for loan and lease losses ^(1, 8)	$	41,885		$	43,581		$	45,255		$	46,835		$	37,200
Reserve for unfunded lending commitments		1,188			1,294			1,413			1,521			1,487

Total allowance for credit losses	$	43,073		$	44,875		$	46,668		$	48,356		$	38,687


Allowance for loan and lease losses/Total loans and leases ⁽⁷⁾		4.47	%		4.69	%		4.75	%		4.82	%		4.16	%
Allowance for loan and lease losses/Total nonperforming loans and leases		136			135			137			139			111
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total nonperforming loans and leases		116			118			121			124			99

Commercial utilized reservable criticized exposure ⁽⁹⁾	$	42,621		$	47,698		$	50,319		$	55,322		$	58,687
Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure⁽⁹⁾		11.80	%		13.06	%		13.48	%		14.43	%		15.03	%
Total commercial utilized criticized exposure/Commercial utilized exposure ⁽⁹⁾		12.65			13.61			14.26			15.49			16.22

(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 period has not been restated.

(2)

Excludes U.S. small business commercial 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:	December 31 2010		September 30 2010		June 30 2010		March 31 2010		December 31 2009
Nonperforming loans held-for-sale	$	*2,540*	$	3,654	$	4,044	$	4,195	$	6,011
Nonperforming loans accounted for under the fair value option		30		15		15		70		138
Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010		*426*		378		403		301		395
(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
Loans held-for-sale past due 90 days or more and still accruing		60		79		158		241		47

(7)

Ratios do not include loans accounted for under the fair value option of $3.3 billion, $3.7 billion, $3.9 billion, $4.1 billion and $4.9 billion at December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010 and December 31, 2009, respectively.

(8)

Balances include the allowance for loan and lease losses on purchased credit-impaired loans of $6.4 billion, $5.6 billion, $5.3 billion, $5.1 billion and $3.9 billion at December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010 and December 31, 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 U.S. or non-U.S. 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.		41

Bank of America Corporation and Subsidiaries

Nonperforming Loans, Leases and Foreclosed Properties Activity ⁽¹⁾

(Dollars in millions)


	Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009
Nonperforming Consumer Loans:
Balance, beginning of period	$	21,429		$	21,684		$	21,557		$	20,839		$	19,654
Additions to nonperforming loans:
Consolidation of VIEs ⁽²⁾		—			—			—			448			—
New nonaccrual loans		4,568			4,551			5,409			6,608			6,732
Reductions in nonperforming loans:
Paydowns and payoffs		(739	)		(917	)		(528	)		(625	)		(371	)
Returns to performing status ⁽³⁾		(1,841	)		(1,469	)		(1,816	)		(2,521	)		(2,169	)
Charge-offs⁽⁴⁾		(2,261	)		(1,987	)		(2,607	)		(2,917	)		(2,654	)
Transfers to foreclosed properties		(302	)		(433	)		(331	)		(275	)		(353	)

Total net additions to (reductions in) nonperforming loans		(575	)		(255	)		127			718			1,185

Total nonperforming consumer loans, end of period		20,854			21,429			21,684			21,557			20,839
Foreclosed properties		1,249			1,485			1,744			1,388			1,428

Total nonperforming consumer loans and foreclosed properties, end of period	$	22,103		$	22,914		$	23,428		$	22,945		$	22,267

Nonperforming Commercial Loans and Leases ⁽⁵⁾:
Balance, beginning of period	$	10,867		$	11,413		$	12,060		$	12,703		$	12,260
Additions to nonperforming loans and leases:
New nonaccrual loans and leases		1,820			1,852			2,256			1,881			3,662
Advances		102			83			62			83			130
Reductions in nonperforming loans and leases:
Paydowns and payoffs		(1,113	)		(906	)		(1,148	)		(771	)		(1,016	)
Sales		(228	)		(187	)		(256	)		(170	)		(283	)
Return to performing status ⁽⁶⁾		(465	)		(415	)		(404	)		(323	)		(220	)
Charge-offs ⁽⁷⁾		(767	)		(628	)		(870	)		(956	)		(1,448	)
Transfers to foreclosed properties		(304	)		(217	)		(205	)		(319	)		(376	)
Transfers to loans held-for-sale		(76	)		(128	)		(82	)		(68	)		(6	)

Total net additions to (reductions in) nonperforming loans and leases		(1,031	)		(546	)		(647	)		(643	)		443

Total nonperforming loans and leases, end of period		9,836			10,867			11,413			12,060			12,703
Foreclosed properties		725			775			757			920			777

Total nonperforming commercial loans, leases and foreclosed properties, end of period	$	10,561		$	11,642		$	12,170		$	12,980		$	13,480

(1)

For amounts excluded from nonperforming loans, leases and foreclosed properties, see footnotes to Nonperforming Loans, Leases and Foreclosed Properties table on page 41.

(2)

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

(3)

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 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.

(4)

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 and therefore are excluded from this table.

(5)

Includes U.S. small business commercial 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.		42

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Fourth Quarter 2010					Third Quarter 2010					Second Quarter 2010							First Quarter 2010					Fourth Quarter 2009
Net Charge-offs	Amount		Percent			Amount		Percent			Amount			Percent				Amount		Percent			Amount			Percent
Residential mortgage	$	970		1.51	%	$	660		1.10	%	$	971			1.57		%	$	1,069		1.78	%	$	1,233			2.07		%
Home equity		1,271		3.61			1,372		3.80			1,741			4.71				2,397		6.37			1,560			4.11
Discontinued real estate		11		0.35			17		0.48			19			0.54				21		0.60			14			0.38
U.S. credit card		2,572		9.05			2,975		10.24			3,517			11.88				3,963		12.82			1,546			12.46
Non-U.S. credit card		339		4.90			295		4.32			942			13.64				631		8.57			395			7.22
Direct/Indirect consumer		641		2.78			707		2.93			879			3.58				1,109		4.46			1,288			5.17
Other consumer		50		6.96			80		10.68			73			10.01				58		7.80			114			14.20

Total consumer		5,854		3.62			6,106		3.81			8,142			4.96				9,248		5.60			6,150			4.24

U.S. commercial ⁽³⁾		210		0.47			206		0.47			179			0.41				286		0.63			637			1.36
Commercial real estate		347		2.67			410		2.93			645			4.03				615		3.64			745			4.15
Commercial lease financing		20		0.38			19		0.34			(3	)		(0.06	)			21		0.40			43			0.79
Non-U.S. commercial		8		0.10			12		0.17			66			0.98				25		0.37			162			2.30

		585		0.83			647		0.91			887			1.23				947		1.28			1,587			2.05
U.S. small business commercial		344		9.13			444		11.38			528			12.94				602		14.21			684			15.16

Total commercial		929		1.25			1,091		1.46			1,415			1.86				1,549		1.98			2,271			2.78

Total net charge-offs	$	6,783		2.87		$	7,197		3.07		$	9,557			3.98			$	10,797		4.44		$	8,421			3.71


By Business Segment
Deposits	$	40		46.30	%	$	70		55.99	%	$	66			47.67		%	$	43		34.73	%	$	97			56.52		%
Global Card Services ⁽⁴⁾		3,693		8.76			4,232		9.81			5,674			12.82				6,011		12.88			6,487			12.88
Home Loans & Insurance		1,183		3.76			1,323		4.11			1,664			5.11				2,317		7.03			1,502			4.50
Global Banking & Markets		25		0.10			52		0.22			87			0.38				143		0.61			517			2.18
Global Commercial Banking		639		1.30			728		1.45			958			1.87				1,076		2.04			1,310			2.37
Global Wealth & Investment Management		131		0.52			112		0.45			115			0.47				119		0.49			211			0.84
All Other ⁽⁴⁾		1,072		1.69			680		1.13			993			1.55				1,088		1.72			(1,703	)		(4.39	)

Total net charge-offs	$	6,783		2.87		$	7,197		3.07		$	9,557			3.98			$	10,797		4.44		$	8,421			3.71


Supplemental managed basis data
U.S. credit card		n/a		n/a			n/a		n/a			n/a			n/a				n/a		n/a		$	4,195			12.69		%
Non-U.S. credit card		n/a		n/a			n/a		n/a			n/a			n/a				n/a		n/a			672			8.48

Total credit card managed net losses		n/a		n/a			n/a		n/a			n/a			n/a				n/a		n/a		$	4,867			11.88

(1)

The 2010 periods are presented in accordance with new consolidation guidance. The 2009 period 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 U.S. small business commercial 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 U.S. or non-U.S. 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.		43

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Year Ended December 31
	2010					2009
Held Basis	Amount		Percent			Amount			Percent
Residential mortgage	$	3,670		1.49	%	$	4,350			1.74		%
Home equity		6,781		4.65			7,050			4.56
Discontinued real estate		68		0.49			101			0.58
U.S. credit card		13,027		11.04			6,547			12.50
Non-U.S. credit card		2,207		7.88			1,239			6.30
Direct/Indirect consumer		3,336		3.45			5,463			5.46
Other consumer		261		8.89			428			12.94

Total consumer		29,350		4.51			25,178			4.22

U.S. commercial ⁽³⁾		881		0.50			2,190			1.09
Commercial real estate		2,017		3.37			2,702			3.69
Commercial lease financing		57		0.27			195			0.89
Non-U.S. commercial		111		0.39			537			1.76

		3,066		1.07			5,624			1.72
U.S. small business commercial		1,918		12.00			2,886			15.68

Total commercial		4,984		1.64			8,510			2.47

Total net charge-offs	$	34,334		3.60		$	33,688			3.58


By Business Segment
Deposits	$	219		46.21	%	$	366			51.88		%
Global Card Services ⁽⁴⁾		19,610		11.13			26,138			12.33
Home Loans & Insurance		6,487		5.02			6,554			5.02
Global Banking & Markets		307		0.32			1,611			1.55
Global Commercial Banking		3,401		1.67			5,061			2.21
Global Wealth & Investment Management		477		0.48			830			0.80
All Other ⁽⁴⁾		3,833		1.53			(6,872	)		(4.24	)

Total net charge-offs	$	34,334		3.60		$	33,688			3.58


Supplemental managed basis data

U.S. credit card		n/a		n/a		$	16,962			12.07		%
Non-U.S. credit card		n/a		n/a			2,223			7.43

Total credit card managed net losses		n/a		n/a		$	19,185			11.25

(1)

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

(2)

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

(3)

Excludes U.S. small business commercial 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 U.S. or non-U.S. 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.		44

Bank of America Corporation and Subsidiaries

Allocation of the Allowance for Credit Losses by Product Type

(Dollars in millions)


	December 31, 2010								September 30, 2010								December 31, 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	$	4,648		11.10	%		1.80	%	$	4,320		9.91	%		1.78	%	$	4,607		12.38	%		1.90	%
Home equity		12,934		30.88			9.37			12,925		29.66			9.13			10,160		27.31			6.81
Discontinued real estate		1,670		3.99			12.74			1,191		2.73			8.86			989		2.66			6.66
U.S. credit card		10,876		25.97			9.56			11,977		27.48			10.54			6,017		16.18			12.17
Non-U.S. credit card		2,045		4.88			7.45			2,116		4.86			7.76			1,581		4.25			7.30
Direct/Indirect consumer		2,381		5.68			2.64			2,661		6.11			2.88			4,227		11.36			4.35
Other consumer		161		0.38			5.67			171		0.39			5.83			204		0.55			6.53

Total consumer		34,715		82.88			5.40			35,361		81.14			5.57			27,785		74.69			4.81

U.S. commercial ⁽³⁾		3,576		8.54			1.88			4,089		9.38			2.14			5,152		13.85			2.59
Commercial real estate		3,137		7.49			6.35			3,573		8.20			6.77			3,567		9.59			5.14
Commercial lease financing		126		0.30			0.57			151		0.35			0.71			291		0.78			1.31
Non-U.S. commercial		331		0.79			1.03			407		0.93			1.33			405		1.09			1.50

Total commercial ⁽⁴⁾		7,170		17.12			2.44			8,220		18.86			2.78			9,415		25.31			2.96

Allowance for loan and lease losses		41,885		100.00	%		4.47			43,581		100.00	%		4.69			37,200		100.00	%		4.16

Reserve for unfunded lending commitments		1,188								1,294								1,487

Allowance for credit losses ⁽⁵⁾	$	43,073							$	44,875							$	38,687

(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 U.S. commercial loans of $1.6 billion, $1.8 billion and $3.0 billion, non-U.S. commercial loans of $1.7 billion, $1.8 billion and $1.9 billion, and commercial real estate loans of $79 million, $54 million and $90 million at December 31, 2010, September 30, 2010 and December 31, 2009.

(3)

Includes allowance for U.S. small business commercial loans of $1.5 billion, $1.8 billion and $2.4 billion at December 31, 2010, September 30, 2010, and December 31, 2009.

(4)

Includes allowance for loan and lease losses for impaired commercial loans of $635 million, $673 million and $1.2 billion at December 31, 2010, September 30, 2010 and December 31, 2009.

(5)

Includes $6.4 billion, $5.6 billion and $3.9 billion of allowance for credit losses related to purchased credit-impaired loans at December 31, 2010, September 30, 2010 and December 31, 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.		45

Exhibit A: Non-GAAP Reconciliations

Bank of America Corporation and Subsidiaries

Reconciliation to GAAP Financial Measures

(Dollars in millions)

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 Corporation views related ratios and analyses (i.e., efficiency ratios and net interest yield) on a fully taxable-equivalent basis. 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 less 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 share of common stock represents ending common shareholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by ending common shares outstanding plus the number of common shares issued upon conversion of common equivalent 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. In addition, earnings and diluted earnings per common share, the efficiency ratio, return on average assets, return on common shareholders’ equity, return on average tangible common shareholders’ equity and return on average tangible shareholders’ equity have been calculated excluding the impact of the goodwill impairment charges taken during 2010. See below reconciliations of total noninterest expense, net income (loss) and net income (loss) applicable to common shareholders excluding the goodwill impairment charges to GAAP financial measures. 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 and on page 47 for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010 and December 31, 2009 and the years ended December 31, 2010 and 2009.


	Year Ended December 31						Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010		First Quarter 2010		Fourth Quarter 2009
	Year Ended December 31
	2010			2009

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

Net interest income	$	51,523		$	47,109		$	12,439		$	12,435		$	12,900	$	13,749	$	11,559
Fully taxable-equivalent adjustment		1,170			1,301			270			282			297		321		337

Net interest income fully taxable-equivalent basis	$	52,693		$	48,410		$	12,709		$	12,717		$	13,197	$	14,070	$	11,896


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	$	110,220		$	119,643		$	22,398		$	26,700		$	29,153	$	31,969	$	25,076
Fully taxable-equivalent adjustment		1,170			1,301			270			282			297		321		337

Total revenue, net of interest expense fully taxable-equivalent basis	$	111,390		$	120,944		$	22,668		$	26,982		$	29,450	$	32,290	$	25,413


Reconciliation of total noninterest expense to total noninterest expense, excluding goodwill impairment charges

Total noninterest expense	$	83,108		$	66,713		$	20,864		$	27,216		$	17,253	$	17,775	$	16,385
Goodwill impairment		12,400			—			2,000			10,400			—		—		—

Total noninterest expense, excluding goodwill impairment charges	$	70,708		$	66,713		$	18,864		$	16,816		$	17,253	$	17,775	$	16,385


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

Income tax expense (benefit)	$	915		$	(1,916	)	$	(2,351	)	$	1,387		$	672	$	1,207	$	(1,225	)
Fully taxable-equivalent adjustment		1,170			1,301			270			282			297		321		337

Income tax expense (benefit) fully taxable-equivalent basis	$	2,085		$	(615	)	$	(2,081	)	$	1,669		$	969	$	1,528	$	(888	)


Reconciliation of net income (loss) to net income (loss), excluding goodwill impairment charges

Net income (loss)	$	(2,238	)	$	6,276		$	(1,244	)	$	(7,299	)	$	3,123	$	3,182	$	(194	)
Goodwill impairment		12,400			—			2,000			10,400			—		—		—

Net income (loss), excluding goodwill impairment charges	$	10,162		$	6,276		$	756		$	3,101		$	3,123	$	3,182	$	(194	)


Reconciliation of net income (loss) applicable to common shareholders to net income (loss) applicable to common shareholders, excluding goodwill impairment charges

Net income (loss) applicable to common shareholders	$	(3,595	)	$	(2,204	)	$	(1,565	)	$	(7,647	)	$	2,783	$	2,834	$	(5,196	)
Goodwill impairment		12,400			—			2,000			10,400			—		—		—

Net income (loss) applicable to common shareholders, excluding goodwill impairment charges	$	8,805		$	(2,204	)	$	435		$	2,753		$	2,783	$	2,834	$	(5,196	)

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.		46

Exhibit A: Non-GAAP Reconciliations - continued

Bank of America Corporation and Subsidiaries

Reconciliation to GAAP Financial Measures

(Dollars in millions, shares in thousands)


	Year Ended						Fourth			Third			Second			First			Fourth
	December 31						Quarter			Quarter			Quarter			Quarter			Quarter
	2010			2009			2010			2010			2010			2010			2009

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

Common shareholders’ equity	$	212,681		$	182,288		$	218,728		$	215,911		$	215,468		$	200,380		$	197,123
Common Equivalent Securities		2,900			1,213			—			—			—			11,760			4,811
Goodwill		(82,596	)		(86,034	)		(75,584	)		(82,484	)		(86,099	)		(86,334	)		(86,053	)
Intangible assets (excluding MSRs)		(10,985	)		(12,220	)		(10,211	)		(10,629	)		(11,216	)		(11,906	)		(12,556	)
Related deferred tax liabilities		3,306			3,831			3,121			3,214			3,395			3,497			3,712

Tangible common shareholders’ equity	$	125,306		$	89,078		$	136,054		$	126,012		$	121,548		$	117,397		$	107,037


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

Shareholders’ equity	$	233,231		$	244,645		$	235,525		$	233,978		$	233,461		$	229,891		$	250,599
Goodwill		(82,596	)		(86,034	)		(75,584	)		(82,484	)		(86,099	)		(86,334	)		(86,053	)
Intangible assets (excluding MSRs)		(10,985	)		(12,220	)		(10,211	)		(10,629	)		(11,216	)		(11,906	)		(12,556	)
Related deferred tax liabilities		3,306			3,831			3,121			3,214			3,395			3,497			3,712

Tangible shareholders’ equity	$	142,956		$	150,222		$	152,851		$	144,079		$	139,541		$	135,148		$	155,702


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

Common shareholders’ equity	$	211,686		$	194,236		$	211,686		$	212,391		$	215,181		$	211,859		$	194,236
Common Equivalent Securities		—			19,244			—			—			—			—			19,244
Goodwill		(73,861	)		(86,314	)		(73,861	)		(75,602	)		(85,801	)		(86,305	)		(86,314	)
Intangible assets (excluding MSRs)		(9,923	)		(12,026	)		(9,923	)		(10,402	)		(10,796	)		(11,548	)		(12,026	)
Related deferred tax liabilities		3,036			3,498			3,036			3,123			3,215			3,396			3,498

Tangible common shareholders’ equity	$	130,938		$	118,638		$	130,938		$	129,510		$	121,799		$	117,402		$	118,638


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

Shareholders’ equity	$	228,248		$	231,444		$	228,248		$	230,495		$	233,174		$	229,823		$	231,444
Goodwill		(73,861	)		(86,314	)		(73,861	)		(75,602	)		(85,801	)		(86,305	)		(86,314	)
Intangible assets (excluding MSRs)		(9,923	)		(12,026	)		(9,923	)		(10,402	)		(10,796	)		(11,548	)		(12,026	)
Related deferred tax liabilities		3,036			3,498			3,036			3,123			3,215			3,396			3,498

Tangible shareholders’ equity	$	147,500		$	136,602		$	147,500		$	147,614		$	139,792		$	135,366		$	136,602


Reconciliation of period end assets to period end tangible assets

Assets	$	2,264,909		$	2,230,232		$	2,264,909		$	2,339,660		$	2,368,384		$	2,344,634		$	2,230,232
Goodwill		(73,861	)		(86,314	)		(73,861	)		(75,602	)		(85,801	)		(86,305	)		(86,314	)
Intangible assets (excluding MSRs)		(9,923	)		(12,026	)		(9,923	)		(10,402	)		(10,796	)		(11,548	)		(12,026	)
Related deferred tax liabilities		3,036			3,498			3,036			3,123			3,215			3,396			3,498

Tangible assets	$	2,184,161		$	2,135,390		$	2,184,161		$	2,256,779		$	2,275,002		$	2,250,177		$	2,135,390


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

Common shares outstanding		10,085,155			8,650,244			10,085,155			10,033,705			10,033,017			10,032,001			8,650,244
Assumed conversion of common equivalent shares ⁽¹⁾		—			1,286,000			—			—			—			—			1,286,000

Tangible common shares outstanding		10,085,155			9,936,244			10,085,155			10,033,705			10,033,017			10,032,001			9,936,244

(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.		47

Exhibit A: Non-GAAP Reconciliations - continued

Bank of America Corporation and Subsidiaries

Global Card Services - Reconciliation

(Dollars in millions)


	Year Ended December 31, 2009									Fourth Quarter 2009
	Managed Basis ⁽¹⁾			Securitization Impact ⁽²⁾			Held Basis			Managed Basis ⁽¹⁾			Securitization Impact ⁽²⁾			Held Basis
Net interest income ⁽³⁾	$	19,972		$	(9,250	)	$	10,722		$	4,878		$	(2,226	)	$	2,652
Noninterest income:
Card income		8,553			(2,034	)		6,519			2,093			(679	)		1,414
All other income		521			(115	)		406			115			(21	)		94

Total noninterest income		9,074			(2,149	)		6,925			2,208			(700	)		1,508

Total revenue, net of interest expense		29,046			(11,399	)		17,647			7,086			(2,926	)		4,160

Provision for credit losses		29,553			(11,399	)		18,154			6,854			(2,926	)		3,928
Noninterest expense		7,726			—			7,726			1,877			—			1,877

Loss before income taxes		(8,233	)		—			(8,233	)		(1,645	)		—			(1,645	)
Income tax benefit⁽³⁾		(2,972	)		—			(2,972	)		(651	)		—			(651	)

Net loss	$	(5,261	)	$	—		$	(5,261	)	$	(994	)	$	—		$	(994	)


Balance sheet

Average - total loans and leases	$	211,981		$	(98,453	)	$	113,528		$	199,756		$	(91,705	)	$	108,051
Period end - total loans and leases		196,289			(89,715	)		106,574			196,289			(89,715	)		106,574

(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 the 2009 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 the 2009 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.		48

Exhibit A: Non-GAAP Reconciliations - continued

Bank of America Corporation and Subsidiaries

All Other - Reconciliation

(Dollars in millions)


	Year Ended December 31, 2009								Fourth Quarter 2009
	Reported Basis⁽¹⁾			Securitization Offset⁽²⁾		As Adjusted			Reported Basis⁽¹⁾			Securitization Offset⁽²⁾		As Adjusted
Net interest income ⁽³⁾	$	(7,221	)	$	9,250	$	9,250		$	(1,640	)	$	2,226	$	2,226
Noninterest income:
Card income (loss)		(896	)		2,034		1,138			(432	)		679		247
Equity investment income		10,589			—		10,589			2,163			—		2,163
Gains on sales of debt securities		4,437			—		4,437			852			—		852
All other loss		(5,705	)		115		(5,590	)		(2,279	)		21		(2,258	)

Total noninterest income		8,425			2,149		10,574			304			700		1,004

Total revenue, net of interest expense		1,204			11,399		12,603			(1,336	)		2,926		1,590

Provision for credit losses		(3,397	)		11,399		8,002			(1,511	)		2,926		1,415
Merger and restructuring charges		2,721			—		2,721			533			—		533
All other noninterest expense		2,909			—		2,909			818			—		818

Loss before income taxes		(1,029	)		—		(1,029	)		(1,176	)		—		(1,176	)
Income tax benefit⁽³⁾		(2,357	)		—		(2,357	)		(427	)		—		(427	)

Net income (loss)	$	1,328		$	—	$	1,328		$	(749	)	$	—	$	(749	)


Balance sheet

Average - total loans and leases	$	162,302		$	98,453	$	260,755		$	154,038		$	91,705	$	245,743
Period end - total loans and leases		161,153			89,715		250,868			161,153			89,715		250,868

(1)

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

(2)

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

(3)

Fully taxable-equivalent basis

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


This information is preliminary and based on company data available at the time of the presentation.		49

Appendix: Selected Slides from the

Fourth Quarter 2010 Earnings Release Presentation


This information is preliminary and based on company data available at the time of the presentation.		50

LOGO

Franchise Strengthened in 2010

• Capital levels

– Tier 1 Common Equity ratio improved 152 bps to 8.60% Tangible Common Equity ratio improved 1

– 94 bps to 5.99% Tangible Book Value per share 1 – increased 15% to $12.98

• Credit quality 2

– Full-year 2010 credit costs of $28.4B less than half of $60.0B in 2009

– 30-day delinquencies declined in U. th

– S. card portfolio for 7 consecutive quarter

– Nonperforming loans, leases and foreclosed properties decreased $1.9B from 3Q10 and $3.5B from 4Q09

– 4Q10 provision expense of $5.1B down 61% from 4Q09

– Reserve coverage of 4Q10 annualized net charge-offs of 1.56 vs. 1.05 at end of 2009

• Strong deposit growth

– Deposits rose to more than $1T in 2010 as commercial companies added to their cash balances and affluent and high net-worth clients brought more of their business to Bank of America

– Deposits up $18.8B from end of 2009, despite deposits sold of $25.7B

– Average retail deposits up $14.1B from 3Q10 mainly attributable to Global Wealth & Investment Management

– Average commercial deposits up $16.2B from 3Q10 resulting from clients maintaining high levels of liquidity

• Loan levels have begun to stabilize

– Total Commercial and Industrial loans grew $3.2B from 3Q10

• Reduced non-core assets

– Sales generated Tier 1 Common Equity of $3.1B in 2010

– Reduced legacy capital markets exposures by $12B, down 34% from end of 2009

• Making progress on legacy mortgage issues

• Steady progress on customer-focused franchise

1 Reflects the 12/31/09 information adjusted to include 1/1/10 adoption of consolidation guidance as reported in our SEC filings.

2 Amounts for periods prior to 2010 are on a managed basis and are non-GAAP measures. See page 50 for a reconciliation to GAAP measures.

LOGO

Balance Sheet Highlights

($ in billions except per share amounts) December 31, 2010 January 1, 2010 1 Increase (Decrease)

Total assets $ 2,264.9 $ 2,323.7 $ (58.8)

Total risk-weighted assets 1,456.0 1,563.6(107.6)

Total deposits 1,010.4 991.6 18.8

Long-term debt 448.4 522.9(74.5)

Tangible common equity 130.9 112.4 18.5

Tier 1 common equity 125.1 110.7 14.4

Global excess liquidity sources 336 214 122

Tier 1 common equity ratio 8.60 % 7.08 % 152 bps

Tangible book value per share $ 12.98 $ 11.31 $ 1.67

Asset Quality

Allowance for loan and lease losses $ 41.9 $ 48.0 $ (6.1)

as a % of loans and leases 4.47 % 4.81 %(34) bps

coverage for annualized net losses 1.56 x 1.05 x 0.51 x

Nonperforming loans, leases

and foreclosed properties $ 32.7 $ 36.2 $ (3.5)

1 Reflects the 12/31/09 information adjusted to include 1/1/10 adoption of consolidation guidance as reported in our SEC filings.

LOGO

Addressing Legacy Mortgage Issues

Representations and Warranties

• Important step forward as a result of agreements with GSEs announced on January 3, 2011

• Recorded expense in 4Q10 of $3B for representations and warranties for loans sold directly to the GSEs

• We believe the remaining representations and warranties exposure for loans sold directly to the GSEs has been addressed as a result of these agreements and the associated adjustments to the liability for representations and warranties

– Ongoing liability assumes no material changes in experience with GSEs, home prices or other economic conditions

• Experience with non-GSE claims remains limited

– No change in approach on non-GSE claims

– If valid claims are presented in accordance with contractual rights, loan repurchase claims will be processed appropriately

Modifications

• Completed 285K modifications in 2010 and 775K modifications cumulatively since 2008 by Bank of America and (previously) Countrywide

– The 285K modifications in 2010 include 109K customers who converted from trial modifications under MHA

• Completed 76K modifications in 4Q10

• Actions continue to be taken to internally realign resources to focus on loan modification efforts

– In early December, announced that more than 2,500 Centralized Sales and Fulfillment associates would be deployed to Servicing over the next several months to support the expected peak default volumes in 2011

– Moving associates from Small Business, Card and other areas into HL&I to assist with Servicing

LOGO

Addressing Legacy Mortgage Issues (cont’d)

Foreclosures

• Resumed foreclosure sales in most non-judicial states in early December, starting with vacant and non-owner occupied properties; expect to resume sales in remaining states in 1Q11

• Maintaining a deliberate and phased approach

• Remain committed to ensure no property is taken to foreclosure improperly

• Review of our foreclosure process shows the basis for our decisions has been accurate

• Process areas identified for improvement

Delinquency Statistics for Completed Foreclosure Sales

• 78% of borrowers had not made a mortgage payment for more than one year

• Average of 585 days in delinquent status (approximately 19 months)

• 50% of properties were vacant (excludes loans for which occupancy status was unknown)

• 54% of borrowers were unemployed or had their income reduced

LOGO

Significant Items in 4Q10

Reported Earnings Per Share in 4Q10 $ (0.16)

Significant items in 4Q10 earnings include ($ in billions, except EPS) Pre-tax Approximate EPS Impact 1

Representations and warranties expense $ (4.1) $ (0.26)

Negative fair value adjustment on structured liabilities(1.2)(0.07)

Asset sales gains (losses)

Partial ownership stake in Blackrock 0.1 0.01

CCB rights 0.4 0.03

Global Securities Solutions(0.2)(0.01)

Securities gains 0.9 0.05

Goodwill impairment charge - Home Loans & Insurance(2.0)(0.20)

Litigation expense (excluding fees paid to external service providers)(1.5)(0.09)

Merger and restructuring charges(0.4)(0.02)

Loan loss reserve reduction 1.7 0.11

Income tax valuation allowance release 1.2 2 0.12

1 Reflects estimated diluted EPS impact.

2 Amount is after-tax

LOGO

4Q10 Loan Activity 1

Total Loans

(end of period loans, $ in billions)

$933.9

$3.4

$6.8

$16.7

$940.4

9/30 Loans

Loan-runoff

Net charge-offs

Net increase in loans

12/31 Loans

Addition to loan balance

Subtraction from loan balance

Total Consumer

(end of period loans, $ in billions)

$634.4

$3.0

$5.9

$18.0

$643.4

9/30 Loans

Loan-runoff

Net charge-offs

Net increase in loans

12/31 Loans

Addition to loan balance

Subtraction from loan balance

Commercial excl. CRE

(end of period loans, $ in billions)

$246.7

$0.3

$0.6

$1.8

$247.6

9/30 Loans

Loan-runoff

Net charge-offs

Net increase in loans

12/31 Loans

Addition to loan balance

Subtraction from loan balance

Commercial Real Estate (CRE)

(end of period loans, $ in billions)

$52.9

$0.1

$0.3

$3.0

$49.5

9/30 Loans

Loan-runoff

Net charge-offs

Net decrease in loans

12/31 Loans

Addition to loan balance

Subtraction from loan balance

1 Loan run-off excludes the impact of net charge-offs as total net charge-offs are shown as a separate column.

LOGO

Service Charges

$ in millions

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

$2,756 $1,089 $1,667

4Q09

$2,566

$1,062

$1,504

1Q10

$2,576

$1,059

$1,517

2Q10

$2,212

$1,050

$1,162

3Q10

$2,036

$1,066

$970

4Q10

Consumer service charges1

Commercial service charges1

Commentary vs. 3Q10

• Service charges were down $176M as a result of the full quarter impact of Regulation E

– Includes approximately $275M increased impact from Regulation E

• Our customer-focused strategy continues to improve account closure rates and customer satisfaction

– Accounts closed by customers has been reduced 38% since 4Q09

– Customer dissatisfaction levels have shown improvement for 5 straight quarters

1 Consumer includes Deposits, HL&I and GWIM; Commercial includes GCB, GBAM and Other.

LOGO

Investment and Brokerage Revenue

$ in millions

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

$1,520 $1,252

$242

4Q09

$1,503

$1,281

$241

1Q10

$1,556

$1,356

$82

2Q10

$1,381

$1,343

3Q10

$1,467

$1,412

4Q10

Columbia long-term business Asset management fees (excluding Columbia) Brokerage income

Commentary vs. 3Q10

• Global Wealth & Investment Management reported near record quarterly revenue levels in 4Q10

• Investment and brokerage revenue increased by $155M vs. 3Q10 due to higher asset management fees and brokerage income

• Asset management fees increased $69M reflecting a strong market and positive long-term client flows

– Revenue from inflows into higher valued products more than offset revenue from outflows in lower valued products such as custody and money market funds

• Brokerage fees increased $86M in part due to increased transactional activity

Key Wealth Management Statistics

4Q10 3Q10 4Q09

Financial Advisors 15,498 15,476 15,171

Client Facing Professionals 20,010 19,987 19,439

Assets under management ($ in B) $ 643.9 $ 624.1 $ 749.8 1

Total client balances ($ in B) $ 2,238.5 $ 2,169.1 $ 2,272.5 1

MLGWM: Active accounts (in millions) 3.30 3.12 3.13

MLGWM: Net new $250K+ households 8,052 7,079 3,242

1 Assets under management (AUM) and total client balances include $114.2B and $114.6B, respectively, of Columbia Management long-term asset management business through the date of sale on May 1, 2010.

LOGO

Sales and Trading Revenue 1

$ in millions

$9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0

$2,220 $950 $1,270

4Q09

$7,045

$1,530

$5,515

1Q10

$3,168 $852

$2,316

2Q10

$4,501

$974

$3,527

3Q10

$2,589 $789

$1,800

4Q10

Fixed income, currency and commodities Equity income

Commentary vs. 3Q10

• Sales and trading revenue decreased $1.9B from 3Q10 as a result of positioning in a weak trading environment, seasonal trading declines and reduction of risk-weighted assets by 11% with daily average VaR falling 15% during the quarter

• FICC revenue of $1.8B decreased $1.7B compared to 3Q10 as spread tightening early in the quarter was offset by diminished client activity and European debt deterioration

• Equity revenue of $789M is down $185M from 3Q10 as an increase in cash business commission revenue was more than offset by a decline in market volatility and client flows impacting derivatives

1 Sales and trading revenue includes trading profits, net interest spread from our primary trading businesses in Global Banking & Markets, and sales commissions that are included in investment and brokerage fees.

LOGO

Credit Trends Are Positive

Consumer 30+ Day Delinquencies 1

$ in millions

$14,000 $12,000 $10,000 , $8,000 $6,000 $4,000 $2,000 $-

$7,268

$5,198

$2,635 $1,929

4Q09 1Q10 2Q10 3Q10 4Q10

Residential mortgage excl. FHA 2 Home equity Credit card Direct/Indirect

Nonperforming Loans, Leases and Foreclosed Properties

$ in millions $40,000 $30,000 $20,000 $10,000 $-

$35,747

$13,480

$22,267

4Q09

$35,925

$12,980

$22,945

1Q10

$35,598

$12,170

$23,428

2Q10

$34,556

$11,642

$22,914

3Q10

$32,664

$10,561

$22,103

4Q10

Consumer Commercial

Consumer Net Charge-offs 1

$ in millions

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

4Q10 includes $330M valuation adjustment on certain mortgage loans

$2,911

$1,271 $ $641 970 $50

4Q09 1Q10 2Q10 3Q10 4Q10

Residential mortgage Home equity Credit card Direct/Indirect Other Consumer

Commercial Net Charge-offs

$ in millions

$900 $800 $700 $600 $500 $400 $300 $200 $100 $-

$344 $347 $218

4Q09 1Q10 2Q10 3Q10 4Q10

Commercial & Industrial 3 Small business Commercial real estate

1 Credit card shown on a managed basis prior to 2010.

2 FHA insured loans are excluded for comparison purposes.

3 Includes U.S. commercial (excluding small business) and non-U.S. commercial, excluding Leasing.

LOGO

Credit Highlights

($ in millions) Net Charge-offs Allowance for Loan Losses

4Q10 3Q10 Inc/ (Dec) 4Q10 3Q10 Inc/ (Dec)

Residential mortgage $ 970 $ 660 $ 310 $ 4,648 $ 4,320 $ 328

Home equity 1,271 1,372(101) 12,934 12,925 9

Discontinued real estate 11 17(6) 1,670 1,191 479

US credit card 2,572 2,975(403) 10,876 11,977(1,101)

Non US credit card 339 295 44 2,045 2,116(71)

Direct / indirect consumer 641 707(66) 2,381 2,661(280)

Other consumer 50 80(30) 161 171(10)

Total consumer 5,854 6,106(252) 34,715 35,361(646)

US Commercial (excl small business) 210 206 4 2,062 2,269(207)

Small business 344 444(100) 1,514 1,820(306)

Commercial real estate 347 410(63) 3,137 3,573(436)

Commercial leasing 20 19 1 126 151(25)

Non US commercial 8 12(4) 331 407(76)

Total commercial 929 1,091(162) 7,170 8,220(1,050)

Total loans and leases $ 6,783 $ 7,197 $ (414) $ 41,885 $ 43,581 $ (1,696)

Commentary vs. 3Q10

• Net charge-offs declined $414M to $6.8B in 4Q10 and the net charge-off ratio declined 20 bps to 2.87%

– Charge-offs declined across almost all products

– Consumer, excluding FHA-insured loans, 30+ performing delinquencies declined for the 7th consecutive quarter

– 4Q10 residential mortgage charge-offs included $330M for valuation adjustments on certain mortgage loans

• Loan loss reserves declined $1.7B during the quarter

– $42B allowance for loan and lease losses provides coverage for 4.47% of loans compared to $44B and 4.69% coverage in 3Q10

– Allowance now covers 1.6 times current period annualized net charge-offs compared to 1.5 times in 3Q10 (excluding the purchased credit-impaired reserves: 1.3 times in 4Q10 and 3Q10)

– Reserves for the purchased credit-impaired loan portfolio increased by $828M, impacting discontinued real estate, residential mortgage and home equity

– Most categories of loans experienced reserve releases during the quarter, led by unsecured products

LOGO

4Q10 Results by Business Segment

($ in millions) Total Corporation Deposits Global Card Services Home Loans & Insurance Global Commercial Banking & Banking Global Markets Global Wealth & Investment Management All Other

Net interest income (FTE) $12,709 $1,945 $4,203 $1,131 $1,881 $1,992 $1,488 $69

Card income 2,127—2,000—69 34 22 2

Service charges 2,036 946—5 506 558 19 2

Investment and brokerage services 2,879(2)—- 10 561 2,307 3

Investment banking income 1,590—— 9 1,584 110(113)

Equity investment income 1,512—1 1(14) 9 15 1,500

Trading account profits 995——(12) 962 39 6

Mortgage banking income(1,419)—-(1,338) -(6) 7(82)

Gains on sales of debt securities 872—- 54—5(45) 858

All other income(633)(5) 42 631 87(132) 317(1,573)

Noninterest income 9,959 939 2,043(647) 655 3,575 2,791 603

Total revenue, net of interest expense (FTE) 22,668 2,884 6,246 484 2,536 5,567 4,279 672

Total noninterest expense 20,864 3,153 1,746 6,038 998 4,436 3,587 906

Pre-tax, pre-provision earnings 1,804(269) 4,500(5,554) 1,538 1,131 692(234)

Provision for credit losses 5,129 41 2,141 1,198(132)(112) 155 1,838

Income (loss) before income taxes(3,325)(310) 2,359(6,752) 1,670 1,243 537(2,072)

Income tax expense (benefit) FTE(2,081)(109) 874(1,781) 629 519 205(2,418)

Net income (loss) $(1,244) $(201) $1,485 $(4,971) $1,041 $724 $332 $346

LOGO

Impact of FHA-Insured Loans on Delinquencies

Commentary vs. 3Q10

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

– Total consumer 30+ delinquency excluding FHA improved by $804M driven by decline in U.S. Credit Card of $546M

($ in millions) 4Q10 3Q10 2Q10 1Q10 4Q09 1

FHA-insured 30+ Delinquencies $ 19,069 $ 18,178 $ 16,988 $ 14,917 $ 12,241

Change from prior period 891 1,190 2,071 2,676 9,815

30+ Delinquency Amounts

Total consumer as reported 36,254 36,167 35,860 36,799 37,093

Total consumer excluding FHA 2 17,185 17,989 18,872 21,882 24,852

Residential mortgages as reported 24,267 23,573 22,536 20,858 19,360

Residential mortgages excluding FHA 2 5,198 5,395 5,548 5,941 7,119

30+ Delinquency Ratios

Total consumer as reported 5.63% 5.70% 5.52% 5.57% 5.56%

Total consumer excluding FHA 2 3.10% 3.21% 3.22% 3.64% 4.03%

Residential mortgages as reported 9.41% 9.69% 9.18% 8.51% 8.00%

Residential mortgages excluding FHA 2 2.69% 2.77% 2.68% 2.81% 3.26%

1 2009 amounts shown on a managed basis.

2 Excludes purchased credit-impaired loans.

LOGO

Consumer Asset Quality Key Indicators

($ in millions)

Residential Mortgage Home Equity Discontinued Real Estate

4Q10 3Q10 4Q10 3Q10 4Q10 3Q10

As Reported Excluding Countrywide Purchased Credit- Impaired and FHA Insured Portfolios As Reported Excluding Countrywide Purchased Credit- Impaired and FHA Insured Portfolios As Reported Excluding Countrywide Purchased Credit- Impaired As Reported Excluding Countrywide Purchased Credit- Impaired As Reported Excluding Countrywide Purchased Credit- Impaired As Reported Excluding Countrywide Purchased Credit- Impaired

Loans end of period $257,973 $193,435 $243,141 $194,560 $137,981 $125,391 $141,558 $128,711 $13,108 $1,456 $13,442 $1,472

Loans average 254,051 196,693 237,292 196,074 139,772 127,116 143,083 130,192 13,297 1,508 13,632 1,544

Net charge-offs $970 $970 $660 $660 $1,271 $1,271 $1,372 $1,372 $11 $11 $17 $17

% of average loans 1.51% 1.96% 1.10% 1.34% 3.61% 3.97% 3.80% 4.18% 0.35% 3.10% 0.48% 4.25%

Allowance for loan losses $4,648 $4,419 $4,320 $4,318 $12,934 $8,420 $12,925 $8,489 $1,670 $79 $1,191 $95

% of Loans 1.80% 2.28% 1.78% 2.22% 9.37% 6.72% 9.13% 6.60% 12.74% 5.45% 8.86% 6.49%

Average refreshed (C)LTV 1 81 81 85 84 81 80

90%+ refreshed (C)LTV 1 33% 34% 41% 41% 29% 28%

Average refreshed FICO 719 718 723 723 639 641

% below 620 FICO 14% 14% 12% 12% 46% 44%

1 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 Key Indicators (cont’d)

($ in millions)

Credit Card Other 1 Total Consumer

4Q10 3Q10 4Q10 3Q10 4Q10 3Q10

Loans end of period $141,250 $140,871 $93,138 $95,403 $643,450 $634,415

Loans average 140,130 142,298 94,345 98,647 641,595 634,952

Net charge-offs $2,911 $3,270 $691 $787 $5,854 $6,106

% of average loans 8.24% 9.12% 2.91% 3.16% 3.62% 3.81%

Allowance for loan losses $12,921 $14,093 $2,542 $2,832 $34,715 $35,361

% of Loans 9.15% 10.00% 2.73% 2.97% 5.40% 5.57%

Commentary vs. 3Q10

• The average refreshed FICO for the U.S. Credit Card portfolio was 706 at 4Q10 compared to 702 at 3Q10

• The percentage below 620 was 12% at 4Q10 compared to 13% at 3Q10

• The 4Q10 credit card loss rate of 8.24% is down by 88bps from 9.12% in 3Q10

1 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 and Industrial 2 Commercial Real Estate Commercial Small Business Lease Financing Total Commercial

4Q10 3Q10 4Q10 3Q10 4Q10 3Q10 4Q10 3Q10 4Q10 3Q10

Loans end of period $ 207,615 $ 206,443 $ 49,393 $ 52,819 $ 14,719 $ 15,228 $ 21,942 $ 21,321 $ 293,669 $ 295,811

Loans average $ 207,551 $ 203,651 $ 51,538 $ 55,596 $ 14,939 $ 15,503 $ 21,363 $ 21,402 $ 295,391 $ 296,152

Net Charge-offs $ 218 $ 218 $ 347 $ 410 $ 344 $ 444 $ 20 $ 19 $ 929 $ 1,091

% of average loans 0.42% 0.43% 2.67% 2.93% 9.13% 11.38% 0.38% 0.34% 1.25% 1.46%

90+ Performing DPD 3 $ 242 $ 145 $ 47 $ 174 $ 325 $ 363 $ 18 $ 24 $ 632 $ 706

% of Loans 3 0.12% 0.07% 0.10% 0.33% 2.21% 2.39% 0.08% 0.11% 0.22% 0.24%

Nonperforming loans 3 $ 3,686 $ 4,166 $ 5,829 $ 6,376 $ 204 $ 202 $ 117 $ 123 $ 9,836 $ 10,867

% of Loans 3 1.78% 2.02% 11.80% 12.07% 1.39% 1.33% 0.53% 0.58% 3.35% 3.67%

Allowance for loan losses $ 2,393 $ 2,676 $ 3,137 $ 3,573 $ 1,514 $ 1,820 $ 126 $ 151 $ 7,170 $ 8,220

% of Loans 1.15% 1.30% 6.35% 6.77% 10.28% 11.95% 0.57% 0.71% 2.44% 2.78%

Reservable Criticized Utilized

Exposure 1, 3 $ 19,238 $ 22,486 $ 20,518 $ 21,974 $ 1,677 $ 1,741 $ 1,188 $ 1,497 $ 42,621 $ 47,698

% of Total Reservable Exposure 1, 3 7.08% 8.25% 38.88% 39.00% 11.37% 11.40% 5.41% 7.02% 11.80% 13.06%

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

2 Includes U.S. commercial, excluding small business, and non-U.S. commercial.

3 Excludes the Merrill Lynch purchased credit-impaired loan portfolio.

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Focus on Home Equity Loans

Loan Balances (end of period)

$in billions

$200.0 $150.0 $100.0 $50.0 $0.0

$149.1 $149.9 $146.3 $141.6 $138.0

4Q09 1Q10 2Q10 3Q10 4Q10

Non-purchased credit-impaired second lien

First lien Purchased credit-impaired

Home Equity Portfolio Characteristics

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

• $12.6B legacy Countrywide purchased credit-impaired loan portfolio

• For the non-purchased credit-impaired portfolio

– $24.8B are in first lien position

– $100.5B are second lien positions

– Approximately 36% or $36B 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 $9.8B available for second liens

• Additionally, on 93% of second liens with CLTVs greater than 100%, the customer is current

• Allowance on the non-purchased credit-impaired home equity portfolio is $8.4B

Allowance for Non-purchased Credit-impaired Loans

$in millions

$10,000 $8,000 $6,000 $4,000 $2,000 $0

$7,189

$8,263

$8,701

$8,489

$8,420

4Q09 1Q10 2Q10 3Q10 4Q10

Net Charge-offs 1

$in millions

$3,000 $2,000 $1,000 $0

$1,560

$2,397

$1,741

$1,372

$1,271

4Q09 1Q10 2Q10 3Q10 4Q10

Net charge-offs include $643M in 1Q10 and $128M in 2Q10 on collateral dependent modified loans, and $170M in 1Q10, $126M in 2Q10, $92M in 3Q10 and $75M in 4Q10 from consolidation of loans under FAS 166/167

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

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Run-off Loan Portfolios

($ in billions)

Loan balances (end of period)

December 31, 2010

September 30, 2010

Increase (Decrease)

4Q10 Revenue less net charge-offs

Residential mortgage Home equity Discontinued real estate Direct/indirect Other consumer Total consumer Total commercial Subtotal

Government insured mortgage repurchases Total run-off loans

$ 12.3 36.7

13.1

35.5

1.4

99.0

7.6

106.6

20.7 $127.3

$ 12.5 38.1

13.4

39.0

1.5

104.5

8.2

112.7

19.2 $131.9

$ (0.2) (1.4)

(0.3)

(3.5)

(0.1)

(5.5)

(0.6)

(6.1)

1.5

$ (4.6)

$ (0.3) 1

(0.3) 1

(0.4) 1

(0.2) 0.0

(1.1)

(0.1)

(1.2) 0.1

$ (1.1)

4Q10 Run-off Portfolio Highlights

• Total run-off loans were down $4.6B from 3Q10 and down $31.2B from 4Q09. Excluding government-insured mortgage repurchases, run-off loans were down $6.1B from 3Q10 and $38.6B from 4Q09.

• Includes Countrywide purchased credit-impaired loans of $34.8B ($10.6B residential mortgage, $12.6B home equity, $11.6B discontinued real estate)

• Direct/indirect loans include consumer finance loans of $12.4B, completed bulk purchase programs of $14.1B, and other loans of $9.0B in 4Q10

1 Incremental provisions to the lifetime loss estimates of the CFC credit-impaired portfolio have been included in revenue less net charge-offs

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Strong Capital Measures Improving

Tier 1 Common Equity

$in billions

$160 $140 $120 $100 $80 $60 $40 $20 $0

$120.4

$115.5

$119.7

$124.8

$125.1

7.8%

7.6%

8.0%

8.5%

8.6%

4Q09 1Q10 2Q10 3Q10 4Q10

18% 16% 14% 12% 10% 8% 6% 4% 2% 0%

Tier 1 common equity Tier 1 common ratio

Tangible Common Equity

$ in billions

$160 $140 $120 $100 $80 $60 $40 $20 $0

$118.6

$117.4

$121.8

$129.5

$130.9

5.6%

5.2%

5.4%

5.7%

6.0%

8% 6% 4% 2% 0%

4Q09 1Q10 2Q10 3Q10 4Q10

Tangible common equity Tangible common equity ratio

Commentary vs. 3Q10

• Capital ratios improved as a result of:

– Net income less goodwill impairment charges, mark to market of certain structured liabilities and dividends increased (structured liability mark impacts TCE ratio but not regulatory ratios)

– 4Q10 also included $1.5B conversion of preferred stock to common stock

– EOP assets declined $75B and reduced risk-weighted assets by more than $20B

– Partially offset by an increase in the DTA disallowance