Supplemental Information

EX-99.3 4 dex993.htm SUPPLEMENTAL INFORMATION Supplemental Information

Exhibit 99.3

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Supplemental Information

First Quarter 2011

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
Debt Securities and Available-for-Sale Marketable Equity Securities			13
Quarterly Results by Business Segment			14
Deposits
Total Segment Results			15
Key Indicators			16
Global Card Services
Total Segment Results			17
Key Indicators			18
Consumer Real Estate Services
Total Segment Results			19
Quarter-to-Date Results			20
Key Indicators			21
Global Commercial Banking
Total Segment Results			22
Key Indicators			23
Global Banking & Markets
Total Segment Results			24
Key Indicators			25
Super Senior Collateralized Debt Obligation Exposure			26
Investment Banking Product Rankings			27
Global Wealth & Investment Management
Total Segment Results			28
Key Indicators			29
All Other
Total Segment Results			30
Equity Investments			31
Outstanding Loans and Leases			32
Quarterly Average Loans and Leases by Business Segment			33
Commercial Credit Exposure by Industry			34
Net Credit Default Protection by Maturity Profile and Credit Exposure Debt Rating			35
Selected Emerging Markets			36
Nonperforming Loans, Leases and Foreclosed Properties			37
Nonperforming Loans, Leases and Foreclosed Properties Activity			38
Quarterly Net Charge-offs and Net Charge-off Ratios			39
Allocation of the Allowance for Credit Losses by Product Type			40

Exhibit A: Non-GAAP Reconciliations			41,42

Appendix: Selected Slides from the First Quarter 2011 Earnings Release Presentation			43

Bank of America Corporation and Subsidiaries

Consolidated Financial Highlights

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


	First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010
Income statement
Net interest income	$	12,179		$	12,439		$	12,435		$	12,900		$	13,749
Noninterest income		14,698			9,959			14,265			16,253			18,220
Total revenue, net of interest expense		26,877			22,398			26,700			29,153			31,969
Provision for credit losses		3,814			5,129			5,396			8,105			9,805
Goodwill impairment		—			2,000			10,400			—			—
Merger and restructuring charges		202			370			421			508			521
All other noninterest expense ⁽¹⁾		20,081			18,494			16,395			16,745			17,254
Income tax expense (benefit)		731			(2,351	)		1,387			672			1,207
Net income (loss)		2,049			(1,244	)		(7,299	)		3,123			3,182
Preferred stock dividends		310			321			348			340			348
Net income (loss) applicable to common shareholders		1,739			(1,565	)		(7,647	)		2,783			2,834
Diluted earnings (loss) per common share ⁽²⁾		0.17			(0.16	)		(0.77	)		0.27			0.28
Average diluted common shares issued and outstanding ⁽²⁾		10,181,351			10,036,575			9,976,351			10,029,776			10,005,254
Dividends paid per common share	$	0.01		$	0.01		$	0.01		$	0.01		$	0.01

Performance ratios
Return on average assets		0.36	%		n/m			n/m			0.50	%		0.51	%
Return on average common shareholders’ equity		3.29			n/m			n/m			5.18			5.73
Return on average tangible common shareholders’ equity ⁽³⁾		5.28			n/m			n/m			9.19			9.79
Return on average tangible shareholders’ equity ⁽³⁾		5.54			n/m			n/m			8.98			9.55
At period end
Book value per share of common stock	$	21.15		$	20.99		$	21.17		$	21.45		$	21.12
Tangible book value per share of common stock ⁽³⁾		13.21			12.98			12.91			12.14			11.70
Market price per share of common stock:
Closing price	$	13.33		$	13.34		$	13.10		$	14.37		$	17.85
High closing price for the period		15.25			13.56			15.67			19.48			18.04
Low closing price for the period		13.33			10.95			12.32			14.37			14.45
Market capitalization		135,057			134,536			131,442			144,174			179,071

Number of banking centers - U.S.		5,805			5,856			5,879			5,900			5,939
Number of branded ATMs - U.S.		17,886			17,931			17,929			18,078			18,135
Full-time equivalent employees		288,062			288,471			287,293			284,628			284,638

(1)

Excludes merger and restructuring charges and goodwill impairment charge.

(2)

Due to a net loss applicable to common shareholders for the fourth and third quarters of 2010, no dilutive potential common shares were included in the calculations of diluted earnings per share and average diluted common shares because they were antidilutive.

(3)

Tangible equity ratios and tangible book value per share of common stock are non-GAAP measures. 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 - Reconciliations to GAAP Financial Measures on pages 41-42.)

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)


	First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010
Net interest income	$	12,397		$	12,709		$	12,717		$	13,197		$	14,070
Total revenue, net of interest expense		27,095			22,668			26,982			29,450			32,290
Net interest yield ⁽²⁾		2.67	%		2.69	%		2.72	%		2.77	%		2.93	%
Efficiency ratio		74.86			92.04			100.87			58.58			55.05

Performance ratios, excluding goodwill impairment charges (3)


	Fourth Quarter 2010			Third Quarter 2010
Per common share information
Earnings	$	0.04		$	0.27
Diluted earnings		0.04			0.27
Efficiency ratio ⁽¹⁾		83.22	%		62.33	%
Return on average assets		0.13			0.52
Return on average common shareholders’ equity		0.79			5.06
Return on average tangible common shareholders’ equity ⁽³⁾		1.27			8.67
Return on average tangible shareholders’ equity ⁽³⁾		1.96			8.54

(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 - Reconciliations to GAAP Financial Measures on pages 41-42).

(2)

Calculation includes fees earned on overnight deposits placed with the Federal Reserve of $63 million for the first quarter of 2011, and $63 million, $107 million, $106 million and $92 million for the fourth, third, second and first quarters of 2010, respectively. For more information see Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis on pages 9-10.

(3)

Total noninterest expense, excluding goodwill impairment charges, net income, excluding goodwill impairment charges and net income applicable to common shareholders, excluding goodwill impairment charges and tangible equity ratios 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 - Reconciliations to GAAP Financial Measures on pages 41-42).

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)


	First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010
Interest income
Loans and leases	$	11,929		$	12,149		$	12,485		$	12,887		$	13,475
Debt securities		2,882			3,029			2,605			2,917			3,116
Federal funds sold and securities borrowed or purchased under agreements to resell		517			486			441			457			448
Trading account assets		1,626			1,661			1,641			1,796			1,743
Other interest income		968			965			1,037			1,062			1,097

Total interest income		17,922			18,290			18,209			19,119			19,879


Interest expense
Deposits		839			894			950			1,031			1,122
Short-term borrowings		1,184			1,142			848			891			818
Trading account liabilities		627			561			635			715			660
Long-term debt		3,093			3,254			3,341			3,582			3,530

Total interest expense		5,743			5,851			5,774			6,219			6,130

Net interest income		12,179			12,439			12,435			12,900			13,749

Noninterest income
Card income		1,828			2,127			1,982			2,023			1,976
Service charges		2,032			2,036			2,212			2,576			2,566
Investment and brokerage services		3,101			2,879			2,724			2,994			3,025
Investment banking income		1,578			1,590			1,371			1,319			1,240
Equity investment income		1,475			1,512			357			2,766			625
Trading account profits		2,722			995			2,596			1,227			5,236
Mortgage banking income (loss)		630			(1,419	)		1,755			898			1,500
Insurance income		613			598			75			678			715
Gains on sales of debt securities		546			872			883			37			734
Other income (loss)		261			(1,114	)		433			1,861			1,204
Other-than-temporary impairment losses on available-for-sale debt securities:
Total other-than-temporary impairment losses		(111	)		(612	)		(156	)		(462	)		(1,819	)
Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income		23			495			33			336			1,218

Net impairment losses recognized in earnings on available-for-sale debt securities		(88	)		(117	)		(123	)		(126	)		(601	)

Total noninterest income		14,698			9,959			14,265			16,253			18,220

Total revenue, net of interest expense		26,877			22,398			26,700			29,153			31,969

Provision for credit losses		3,814			5,129			5,396			8,105			9,805

Noninterest expense
Personnel		10,168			8,800			8,402			8,789			9,158
Occupancy		1,189			1,212			1,150			1,182			1,172
Equipment		606			607			619			613			613
Marketing		564			484			497			495			487
Professional fees		646			883			651			644			517
Amortization of intangibles		385			420			426			439			446
Data processing		695			662			602			632			648
Telecommunications		371			366			361			359			330
Other general operating		5,457			5,060			3,687			3,592			3,883
Goodwill impairment		—			2,000			10,400			—			—
Merger and restructuring charges		202			370			421			508			521

Total noninterest expense		20,283			20,864			27,216			17,253			17,775

Income (loss) before income taxes		2,780			(3,595	)		(5,912	)		3,795			4,389
Income tax expense (benefit)		731			(2,351	)		1,387			672			1,207

Net income (loss)	$	2,049		$	(1,244	)	$	(7,299	)	$	3,123		$	3,182

Preferred stock dividends		310			321			348			340			348

Net income (loss) applicable to common shareholders	$	1,739		$	(1,565	)	$	(7,647	)	$	2,783		$	2,834


Per common share information
Earnings (loss)	$	0.17		$	(0.16	)	$	(0.77	)	$	0.28		$	0.28
Diluted earnings (loss) ⁽¹⁾		0.17			(0.16	)		(0.77	)		0.27			0.28
Dividends paid		0.01			0.01			0.01			0.01			0.01

Average common shares issued and outstanding		10,075,875			10,036,575			9,976,351			9,956,773			9,177,468

Average diluted common shares issued and outstanding ⁽¹⁾		10,181,351			10,036,575			9,976,351			10,029,776			10,005,254

(1)

Due to a net loss applicable to common shareholders for the fourth and third quarters of 2010, 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)


	March 31 2011			December 31 2010			March 31 2010
Assets
Cash and cash equivalents	$	97,542		$	108,427		$	144,794
Time deposits placed and other short-term investments		23,707			26,433			20,256
Federal funds sold and securities borrowed or purchased under agreements to resell		234,056			209,616			197,038
Trading account assets		208,761			194,671			206,018
Derivative assets		65,334			73,000			83,511
Debt securities:
Available-for-sale		330,345			337,627			316,020
Held-to-maturity, at cost		431			427			340
Total debt securities		330,776			338,054			316,360
Loans and leases		932,425			940,440			976,042
Allowance for loan and lease losses		(39,843	)		(41,885	)		(46,835	)
Loans and leases, net of allowance		892,582			898,555			929,207
Premises and equipment, net		14,151			14,306			15,147
Mortgage servicing rights (includes $15,282, $14,900 and $18,842 measured at fair value)		15,560			15,177			19,146
Goodwill		73,869			73,861			86,305
Intangible assets		9,560			9,923			11,548
Loans held-for-sale		25,003			35,058			35,386
Customer and other receivables		97,318			85,704			83,636
Other assets		186,313			182,124			196,282
Total assets	$	2,274,532		$	2,264,909		$	2,344,634

Assets of consolidated VIEs included in total assets above (substantially all pledged as collateral)
Trading account assets	$	12,012		$	19,627		$	11,826
Derivative assets		2,280			2,027			4,194
Available-for-sale debt securities		2,104			2,601			12,074
Loans and leases		146,309			145,469			129,432
Allowance for loan and lease losses		(8,335	)		(8,935	)		(11,140	)
Loans and leases, net of allowance		137,974			136,534			118,292
Loans held-for-sale		1,605			1,953			5,471
All other assets		4,883			7,086			9,637
Total assets of consolidated VIEs	$	160,858		$	169,828		$	161,494

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


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

Bank of America Corporation and Subsidiaries

Consolidated Balance Sheet (continued)

(Dollars in millions)


	March 31 2011			December 31 2010			March 31 2010
Liabilities
Deposits in U.S. offices:
Noninterest-bearing	$	286,357		$	285,200		$	255,470
Interest-bearing		652,096			645,713			643,943
Deposits in non-U.S. offices:
Noninterest-bearing		7,894			6,101			5,614
Interest-bearing		73,828			73,416			71,075
Total deposits		1,020,175			1,010,430			976,102
Federal funds purchased and securities loaned or sold under agreements to repurchase		260,521			245,359			270,601
Trading account liabilities		88,478			71,985			82,532
Derivative liabilities		53,501			55,914			52,861
Commercial paper and other short-term borrowings		58,324			59,962			85,406
Accrued expenses and other liabilities (includes $961, $1,188 and $1,521 of reserve for unfunded lending commitments)		128,221			144,580			135,656
Long-term debt		434,436			448,431			511,653
Total liabilities		2,043,656			2,036,661			2,114,811
Shareholders’ equity
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 3,943,660, 3,943,660 and 3,960,660 shares		16,562			16,562			17,964
Common stock and additional paid-in capital, $0.01 par value; authorized - 12,800,000,000, 12,800,000,000 and 11,300,000,000 shares; issued and outstanding - 10,131,803,417, 10,085,154,806 and 10,032,001,150 shares		151,379			150,905			149,048
Retained earnings		62,483			60,849			67,811
Accumulated other comprehensive income (loss)		463			(66	)		(4,929	)
Other		(11	)		(2	)		(71	)
Total shareholders’ equity		230,876			228,248			229,823
Total liabilities and shareholders’ equity	$	2,274,532		$	2,264,909		$	2,344,634

Liabilities of consolidated VIEs included in total liabilities above
Commercial paper and other short-term borrowings	$	6,954		$	6,742		$	21,631
Long-term debt		65,197			71,013			90,329
All other liabilities		1,240			9,141			5,135
Total liabilities of consolidated VIEs	$	73,391		$	86,896		$	117,095

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


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

Bank of America Corporation and Subsidiaries

Capital Management

(Dollars in millions)


	First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010
Risk-based capital ⁽¹⁾:
Tier 1 common	$	123,882		$	125,139		$	124,756		$	119,716		$	115,520
Tier 1 capital		162,295			163,626			164,763			159,551			155,428
Total capital		229,094			229,594			231,120			220,827			219,913
Risk-weighted assets		1,433,377			1,455,951			1,476,774			1,494,990			1,519,723
Tier 1 common equity ratio ⁽²⁾		8.64	%		8.60	%		8.45	%		8.01	%		7.60	%
Tier 1 capital ratio		11.32			11.24			11.16			10.67			10.23
Total capital ratio		15.98			15.77			15.65			14.77			14.47
Tier 1 leverage ratio		7.25			7.21			7.21			6.68			6.44
Tangible equity ratio ⁽³⁾		6.85			6.75			6.54			6.14			6.02
Tangible common equity ratio ⁽³⁾		6.10			5.99			5.74			5.35			5.22

(1)

Reflects preliminary data for current period risk-based capital.

(2)

Tier 1 common equity ratio equals Tier 1 capital excluding preferred stock, 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. We believe the use of these non-GAAP measures provide additional clarity in assessing the results of the Corporation. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on pages 41-42).

LOGO

*	Preliminary data on risk-based capital

Outstanding Common Stock

No common shares were repurchased in the first quarter of 2011.

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)


	First Quarter 2011				Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010				First Quarter 2010
Net interest income ⁽¹⁾
As reported⁽²⁾	$	12,397			$	12,709			$	12,717			$	13,197			$	14,070
Impact of market-based net interest income ⁽³⁾		(1,051	)			(1,150	)			(1,045	)			(1,049	)			(1,186	)

Core net interest income	$	11,346			$	11,559			$	11,672			$	12,148			$	12,884


Average earning assets
As reported	$	1,869,863			$	1,883,539			$	1,863,819			$	1,910,790			$	1,933,060
Impact of market-based earning assets ⁽³⁾		(467,042	)			(475,021	)			(494,772	)			(521,010	)			(527,316	)

Core average earning assets	$	1,402,821			$	1,408,518			$	1,369,047			$	1,389,780			$	1,405,744


Net interest yield contribution ^(1, 4)
As reported⁽²⁾		2.67		%		2.69		%		2.72		%		2.77		%		2.93		%
Impact of market-based activities ⁽³⁾		0.59				0.58				0.67				0.73				0.76

Core net interest yield on earning assets		3.26		%		3.27		%		3.39		%		3.50		%		3.69		%

(1)

Fully taxable-equivalent basis

(2)

Balance and calculation include fees earned on overnight deposits placed with the Federal Reserve of $63 million for the first quarter of 2011 and $63 million, $107 million, $106 million, and $92 million for the fourth, third, second and first quarters of 2010, respectively.

(3)

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

(4)

Calculated on an annualized basis.

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)


	First Quarter 2011							Fourth Quarter 2010							First Quarter 2010
			Interest							Interest							Interest
	Average		Income/		Yield/			Average		Income/		Yield/			Average		Income/		Yield/
	Balance		Expense		Rate			Balance		Expense		Rate			Balance		Expense		Rate
Earning assets
Time deposits placed and other short-term investments ⁽¹⁾	$	31,294	$	88		1.14	%	$	28,141	$	75		1.07	%	$	27,600	$	61		0.89	%
Federal funds sold and securities borrowed or purchased under agreements to resell		227,379		517		0.92			243,589		486		0.79			266,070		448		0.68
Trading account assets		221,041		1,669		3.05			216,003		1,710		3.15			214,542		1,795		3.37
Debt securities ⁽²⁾		335,847		2,917		3.49			341,867		3,065		3.58			311,136		3,173		4.09
Loans and leases ⁽³⁾:
Residential mortgage ⁽⁴⁾		262,049		2,881		4.40			254,051		2,857		4.50			243,833		3,100		5.09
Home equity		136,089		1,335		3.96			139,772		1,410		4.01			152,536		1,586		4.20
Discontinued real estate		12,899		110		3.42			13,297		118		3.57			14,433		153		4.24
U.S. credit card		109,941		2,837		10.47			112,673		3,040		10.70			125,353		3,370		10.90
Non-U.S. credit card		27,633		779		11.43			27,457		815		11.77			29,872		906		12.30
Direct/Indirect consumer⁽⁵⁾		90,097		993		4.47			91,549		1,088		4.72			100,920		1,302		5.23
Other consumer ⁽⁶⁾		2,753		45		6.58			2,796		45		6.32			3,002		48		6.35

Total consumer		641,461		8,980		5.65			641,595		9,373		5.81			669,949		10,465		6.30

U.S. commercial		191,353		1,926		4.08			193,608		1,894		3.88			202,662		1,970		3.94
Commercial real estate ⁽⁷⁾		48,359		437		3.66			51,617		432		3.32			68,526		575		3.40
Commercial lease financing		21,634		322		5.95			21,363		250		4.69			21,675		304		5.60
Non-U.S. commercial		36,159		299		3.35			32,431		289		3.53			28,803		264		3.72

Total commercial		297,505		2,984		4.06			299,019		2,865		3.81			321,666		3,113		3.92

Total loans and leases		938,966		11,964		5.14			940,614		12,238		5.18			991,615		13,578		5.53

Other earning assets		115,336		922		3.24			113,325		923		3.23			122,097		1,053		3.50

Total earning assets ⁽⁸⁾		1,869,863		18,077		3.92			1,883,539		18,497		3.90			1,933,060		20,108		4.19

Cash and cash equivalents ⁽¹⁾		138,241		63					136,967		63					196,911		92
Other assets, less allowance for loan and lease losses		330,434							349,752							386,638

Total assets	$	2,338,538						$	2,370,258						$	2,516,609

(1)

For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Corporation's Consolidated Balance Sheet presentation of these deposits. Net interest income and net interest yield are calculated excluding these fees.

(2)

Yields on available-for-sale 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 $92 million in the first quarter of 2011, and $96 million and $538 million in the fourth and first quarters of 2010.

(5)

Includes non-U.S. consumer loans of $8.2 billion in the first quarter of 2011, and $7.9 billion and $8.1 billion in the fourth and first quarters of 2010.

(6)

Includes consumer finance loans of $1.9 billion in the first quarter of 2011, and $2.0 billion and $2.2 billion in the fourth and first quarters of 2010; other non-U.S. consumer loans of $777 million in the first quarter of 2011, and $791 million and $664 million in the fourth and first quarters of 2010; and consumer overdrafts of $76 million in the first quarter of 2011, and $34 million and $132 million for the fourth and first quarters of 2010.

(7)

Includes U.S. commercial real estate loans of $45.7 billion in the first quarter of 2011, and $49.0 billion and $65.6 billion in the fourth and first quarters of 2010, and non-U.S. commercial real estate loans of $2.7 billion in the first quarter of 2011, and $2.6 billion and $3.0 billion in the fourth and first quarters of 2010.

(8)

Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $388 million in the first quarter of 2011, and $29 million and $272 million in the fourth and first quarters of 2010. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities $621 million in the first quarter of 2011, and $672 million and $970 million in the fourth and first quarters of 2010.

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


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

Bank of America Corporation and Subsidiaries

Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis (continued)

(Dollars in millions)


	First Quarter 2011							Fourth Quarter 2010							First Quarter 2010
			Interest							Interest							Interest
	Average		Income/		Yield/			Average		Income/		Yield/			Average		Income/		Yield/
	Balance		Expense		Rate			Balance		Expense		Rate			Balance		Expense		Rate
Interest-bearing liabilities
U.S. interest-bearing deposits:
Savings	$	38,905	$	32		0.34	%	$	37,145	$	35		0.36	%	$	35,126	$	43		0.50	%
NOW and money market deposit accounts		475,954		316		0.27			464,531		333		0.28			416,110		341		0.33
Consumer CDs and IRAs		118,306		300		1.03			124,855		338		1.07			166,189		567		1.38
Negotiable CDs, public funds and other time deposits		13,995		39		1.11			16,334		47		1.16			19,763		63		1.31

Total U.S. interest-bearing deposits		647,160		687		0.43			642,865		753		0.46			637,188		1,014		0.65

Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries		21,534		38		0.72			16,827		38		0.91			18,424		32		0.71
Governments and official institutions		2,307		2		0.35			1,560		2		0.42			5,626		3		0.22
Time, savings and other		60,432		112		0.76			58,746		101		0.69			54,885		73		0.53

Total non-U.S. interest-bearing deposits		84,273		152		0.73			77,133		141		0.73			78,935		108		0.55

Total interest-bearing deposits		731,433		839		0.46			719,998		894		0.49			716,123		1,122		0.64

Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings		371,573		1,184		1.29			369,738		1,142		1.23			508,332		818		0.65
Trading account liabilities		83,914		627		3.03			81,313		561		2.74			90,134		660		2.97
Long-term debt		440,511		3,093		2.84			465,875		3,254		2.78			513,634		3,530		2.77

Total interest-bearing liabilities ⁽⁸⁾		1,627,431		5,743		1.43			1,636,924		5,851		1.42			1,828,223		6,130		1.35

Noninterest-bearing sources:
Noninterest-bearing deposits		291,707							287,740							264,892
Other liabilities		188,631							210,069							193,584
Shareholders’ equity		230,769							235,525							229,910

Total liabilities and shareholders’ equity	$	2,338,538						$	2,370,258						$	2,516,609

Net interest spread						2.49	%						2.48	%						2.84	%
Impact of noninterest-bearing sources						0.17							0.18							0.08

Net interest income/yield on earning assets ⁽¹⁾			$	12,334		2.66	%			$	12,646		2.66	%			$	13,978		2.92	%

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)


	First Quarter 2011								Fourth Quarter 2010								First Quarter 2010
	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	$	31,294	$	88			1.14	%	$	28,141	$	75			1.07	%	$	27,600	$	61			0.89	%
Federal funds sold and securities borrowed or purchased under agreements to resell ⁽²⁾		227,379		462			0.82			243,589		420			0.68			266,070		368			0.56
Trading account assets⁽²⁾		221,041		1,739			3.19			216,003		1,776			3.27			214,542		1,833			3.45
Debt securities ⁽²⁾		335,847		3,279			3.96			341,867		3,085			3.58			311,136		3,454			4.45
Loans and leases:
Residential mortgage		262,049		2,881			4.40			254,051		2,857			4.50			243,833		3,100			5.09
Home equity		136,089		1,335			3.96			139,772		1,410			4.01			152,536		1,586			4.20
Discontinued real estate		12,899		110			3.42			13,297		118			3.57			14,433		153			4.24
U.S. credit card		109,941		2,837			10.47			112,673		3,040			10.70			125,353		3,370			10.90
Non-U.S. credit card		27,633		779			11.43			27,457		815			11.77			29,872		906			12.30
Direct/Indirect consumer		90,097		993			4.47			91,549		1,088			4.72			100,920		1,302			5.23
Other consumer		2,753		45			6.58			2,796		45			6.32			3,002		48			6.35

Total consumer		641,461		8,980			5.65			641,595		9,373			5.81			669,949		10,465			6.30

U.S. commercial ⁽²⁾		191,353		1,937			4.11			193,608		1,902			3.90			202,662		2,003			4.01
Commercial real estate		48,359		437			3.66			51,617		432			3.32			68,526		575			3.40
Commercial lease financing		21,634		322			5.95			21,363		250			4.69			21,675		304			5.60
Non-U.S. commercial ⁽²⁾		36,159		299			3.35			32,431		290			3.54			28,803		264			3.72

Total commercial		297,505		2,995			4.08			299,019		2,874			3.82			321,666		3,146			3.96

Total loans and leases		938,966		11,975			5.17			940,614		12,247			5.18			991,615		13,611			5.54

Other earning assets		115,336		922			3.24			113,325		923			3.23			122,097		1,053			3.50

Total earning assets - excluding hedge impact		1,869,863		18,465			4.00			1,883,539		18,526			3.90			1,933,060		20,380			4.27

Net hedge expense on assets				(388	)							(29	)							(272	)

Total earning assets - including hedge impact		1,869,863		18,077			3.92			1,883,539		18,497			3.90			1,933,060		20,108			4.19

Cash and cash equivalents		138,241		63						136,967		63						196,911		92
Other assets, less allowance for loan and lease losses		330,434								349,752								386,638

Total assets	$	2,338,538							$	2,370,258							$	2,516,609

(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:


	First Quarter 2011			Fourth Quarter 2010			First Quarter 2010
Federal funds sold and securities borrowed or purchased under agreements to resell	$	55		$	66		$	80
Trading account assets		(70	)		(66	)		(38	)
Debt securities		(362	)		(20	)		(281	)
U.S. commercial		(11	)		(8	)		(33	)
Non-U.S. commercial		—			(1	)		—

Net hedge expense on assets	$	(388	)	$	(29	)	$	(272	)

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)


	First Quarter 2011								Fourth Quarter 2010								First Quarter 2010
	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	$	38,905	$	32			0.34	%	$	37,145	$	35			0.36	%	$	35,126	$	43			0.50	%
NOW and money market deposit accounts ⁽²⁾		475,954		317			0.27			464,531		333			0.28			416,110		341			0.33
Consumer CDs and IRAs⁽²⁾		118,306		253			0.87			124,855		290			0.92			166,189		523			1.28
Negotiable CDs, public funds and other time deposits ⁽²⁾		13,995		35			1.01			16,334		44			1.08			19,763		60			1.23

Total U.S. interest-bearing deposits		647,160		637			0.40			642,865		702			0.43			637,188		967			0.62

Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries ⁽²⁾		21,534		20			0.38			16,827		19			0.47			18,424		15			0.33
Governments and official institutions		2,307		2			0.35			1,560		2			0.42			5,626		3			0.22
Time, savings and other		60,432		112			0.76			58,746		101			0.69			54,885		73			0.53

Total non-U.S. interest-bearing deposits		84,273		134			0.64			77,133		122			0.63			78,935		91			0.47

Total interest-bearing deposits		731,433		771			0.43			719,998		824			0.45			716,123		1,058			0.60

Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings ⁽²⁾		371,573		739			0.81			369,738		740			0.79			508,332		716			0.57
Trading account liabilities		83,914		627			3.03			81,313		561			2.74			90,134		660			2.97
Long-term debt ⁽²⁾		440,511		4,227			3.89			465,875		4,398			3.76			513,634		4,666			3.66

Total interest-bearing liabilities - excluding hedge impact		1,627,431		6,364			1.59			1,636,924		6,523			1.59			1,828,223		7,100			1.57

Net hedge income on liabilities				(621	)							(672	)							(970	)

Total interest-bearing liabilities - including hedge impact		1,627,431		5,743			1.43			1,636,924		5,851			1.42			1,828,223		6,130			1.35

Noninterest-bearing sources:
Noninterest-bearing deposits		291,707								287,740								264,892
Other liabilities		188,631								210,069								193,584
Shareholders’ equity		230,769								235,525								229,910

Total liabilities and shareholders’ equity	$	2,338,538							$	2,370,258							$	2,516,609

Net interest spread							2.41	%							2.31	%							2.70	%
Impact of noninterest-bearing sources							0.21								0.22								0.09

Net interest income/yield on earning assets - excluding hedge impact				12,101			2.62	%				12,003			2.53	%				13,280			2.79	%

Net impact of hedge income				233			0.04					643			0.13					698			0.13

Net interest income/yield on earning assets			$	12,334			2.66	%			$	12,646			2.66	%			$	13,978			2.92	%

(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:


	First Quarter 2011			Fourth Quarter 2010			First Quarter 2010
NOW and money market deposit accounts	$	(1	)	$	—		$	—
Consumer CDs and IRAs		47			48			44
Negotiable CDs, public funds and other time deposits		4			3			3
Banks located in non-U.S. countries		18			19			17
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings		445			402			102
Long-term debt		(1,134	)		(1,144	)		(1,136	)

Net hedge income on liabilities	$	(621	)	$	(672	)	$	(970	)

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


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

Bank of America Corporation and Subsidiaries

Debt Securities and Available-for-Sale Marketable Equity Securities

(Dollars in millions)


	March 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale debt securities
U.S. Treasury and agency securities	$	49,361	$	625	$	(887	)	$	49,099
Mortgage-backed securities:
Agency		192,301		2,605		(3,136	)		191,770
Agency collateralized mortgage obligations		34,819		237		(29	)		35,027
Non-agency residential		20,625		536		(507	)		20,654
Non-agency commercial		6,116		684		(1	)		6,799
Non-U.S. securities		4,250		63		(11	)		4,302
Corporate bonds		4,340		134		(5	)		4,469
Other taxable securities ⁽¹⁾		12,883		75		(90	)		12,868

Total taxable securities	$	324,695	$	4,959	$	(4,666	)	$	324,988
Tax-exempt securities		5,546		31		(220	)		5,357

Total available-for-sale debt securities	$	330,241	$	4,990	$	(4,886	)	$	330,345

Held-to-maturity debt securities		431		—		—			431

Total debt securities	$	330,672	$	4,990	$	(4,886	)	$	330,776

Available-for-sale marketable equity securities ⁽²⁾	$	8,535	$	11,925	$	(15	)	$	20,445


	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		(1	)		6,852
Non-U.S. securities		4,054		92		(7	)		4,139
Corporate bonds		5,157		144		(10	)		5,291
Other taxable securities ⁽¹⁾		15,514		39		(161	)		15,392

Total taxable securities	$	330,811	$	5,602	$	(4,283	)	$	332,130
Tax-exempt securities		5,687		32		(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

(1)

Substantially all asset-backed securities.

(2)

Classified in other assets on the Consolidated Balance Sheet.

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

Quarterly Results by Business Segment

(Dollars in millions)


	First Quarter 2011
	Total Corporation			Deposits			Global Card Services		Consumer Real Estate Services			Global Commercial Banking			Global Banking & Markets			GWIM		All Other
Net interest income ⁽¹⁾	$	12,397		$	2,205		$	3,743	$	904		$	1,846		$	2,038		$	1,569	$	92
Noninterest income		14,698			984			1,828		1,278			802			5,849			2,921		1,036

Total revenue, net of interest expense		27,095			3,189			5,571		2,182			2,648			7,887			4,490		1,128

Provision for credit losses		3,814			33			964		1,098			76			(202	)		46		1,799
Noninterest expense		20,283			2,592			1,887		4,884			1,106			4,726			3,600		1,488

Income (loss) before income taxes		2,998			564			2,720		(3,800	)		1,466			3,363			844		(2,159	)
Income tax expense (benefit) ⁽¹⁾		949			209			1,008		(1,408	)		543			1,231			313		(947	)

Net income (loss)	$	2,049		$	355		$	1,712	$	(2,392	)	$	923		$	2,132		$	531	$	(1,212	)


Average
Total loans and leases	$	938,966			n/m		$	162,885	$	120,560		$	191,977		$	103,704		$	100,851	$	258,350
Total assets ⁽²⁾		2,338,538		$	443,461			165,170		210,302			312,557			708,231			291,907		206,910
Total deposits		1,023,140			418,298			n/m		n/m			160,217			112,028			258,518		48,608

Period end
Total loans and leases	$	932,425			n/m		$	158,900	$	118,750		$	190,293		$	105,651		$	101,286	$	256,930
Total assets ⁽²⁾		2,274,532		$	456,248			163,435		205,504			309,917			698,399			280,524		160,505
Total deposits		1,020,175			431,022			n/m		n/m			161,584			115,212			256,526		34,817

	Fourth Quarter 2010
	Total Corporation			Deposits			Global Card Services		Consumer Real Estate Services			Global Commercial Banking			Global Banking & Markets			GWIM		All Other
Net interest income ⁽¹⁾	$	12,709		$	2,006		$	4,203	$	1,131		$	1,861		$	2,007		$	1,425	$	76
Noninterest income (loss)		9,959			997			2,043		(647	)		749			3,481			2,734		602

Total revenue, net of interest expense		22,668			3,003			6,246		484			2,610			5,488			4,159		678

Provision for credit losses		5,129			41			2,141		1,198			(132	)		(112	)		155		1,838
Noninterest expense		20,864			3,253			1,741		6,046			1,058			4,394			3,494		878

Income (loss) before income taxes		(3,325	)		(291	)		2,364		(6,760	)		1,684			1,206			510		(2,038	)
Income tax expense (benefit) ⁽¹⁾		(2,081	)		(101	)		876		(1,784	)		634			505			195		(2,406	)

Net income (loss)	$	(1,244	)	$	(190	)	$	1,488	$	(4,976	)	$	1,050		$	701		$	315	$	368


Average
Total loans and leases	$	940,614			n/m		$	167,156	$	124,934		$	194,819		$	100,606		$	100,306	$	252,180
Total assets ⁽²⁾		2,370,258		$	438,346			167,722		219,106			314,766			738,036			284,881		207,401
Total deposits		1,007,738			413,150			n/m		n/m			156,671			114,942			246,281		44,841

Period end
Total loans and leases	$	940,440			n/m		$	167,367	$	122,934		$	193,568		$	99,964		$	100,724	$	255,213
Total assets ⁽²⁾		2,264,909		$	440,954			169,745		213,363			312,787			651,638			289,954		186,468
Total deposits		1,010,430			415,189			n/m		n/m			161,278			110,971			257,983		38,748

	First Quarter 2010
	Total Corporation			Deposits			Global Card Services		Consumer Real Estate Services			Global Commercial Banking			Global Banking & Markets			GWIM		All Other
Net interest income ⁽¹⁾	$	14,070		$	2,175		$	4,818	$	1,213		$	2,189		$	2,170		$	1,464	$	41
Noninterest income		18,220			1,543			1,985		2,410			899			7,523			2,574		1,286

Total revenue, net of interest expense		32,290			3,718			6,803		3,623			3,088			9,693			4,038		1,327

Provision for credit losses		9,805			38			3,535		3,600			936			236			242		1,218
Noninterest expense		17,775			2,562			1,732		3,328			1,030			4,292			3,103		1,728

Income (loss) before income taxes		4,710			1,118			1,536		(3,305	)		1,122			5,165			693		(1,619	)
Income tax expense (benefit) ⁽¹⁾		1,528			417			573		(1,233	)		419			1,927			259		(834	)

Net income (loss)	$	3,182		$	701		$	963	$	(2,072	)	$	703		$	3,238		$	434	$	(785	)


Average
Total loans and leases	$	991,615			n/m		$	189,307	$	133,744		$	213,838		$	99,034		$	98,841	$	256,156
Total assets ⁽²⁾		2,516,609		$	441,854			195,809		234,010			298,007			776,584			249,799		320,546
Total deposits		981,015			416,842			n/m		n/m			143,635			103,634			221,613		70,858

Period end
Total loans and leases	$	976,042			n/m		$	181,763	$	132,427		$	211,250		$	95,580		$	98,343	$	255,869
Total assets ⁽²⁾		2,344,634		$	445,237			190,949		224,469			304,058			685,445			257,299		237,177
Total deposits		976,102			420,251			n/m		n/m			145,669			104,700			227,148		56,855

(1)

Fully taxable-equivalent basis

(2)

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 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

Deposits Segment Results

(Dollars in millions)


	First Quarter 2011			Fourth Quarter 2010				Third Quarter 2010			Second Quarter 2010			First Quarter 2010
Net interest income ⁽¹⁾	$	2,205		$	2,006			$	1,953		$	2,144		$	2,175
Noninterest income:
Service charges		923			946				1,138			1,494			1,479
All other income		61			51				55			57			64

Total noninterest income		984			997				1,193			1,551			1,543

Total revenue, net of interest expense		3,189			3,003				3,146			3,695			3,718

Provision for credit losses		33			41				62			60			38
Noninterest expense		2,592			3,253				2,756			2,567			2,562

Income (loss) before income taxes		564			(291	)			328			1,068			1,118
Income tax expense (benefit) ⁽¹⁾		209			(101	)			119			390			417

Net income (loss)	$	355		$	(190	)		$	209		$	678		$	701


Net interest yield ⁽¹⁾		2.14	%		1.93		%		1.89	%		2.06	%		2.12	%
Return on average equity		6.09			n/m				3.40			11.22			11.78
Return on average economic capital ⁽²⁾		25.43			n/m				13.09			43.74			46.33
Efficiency ratio ⁽¹⁾		81.28			108.33				87.61			69.45			68.92

Balance sheet

Average
Total earning assets ⁽³⁾	$	417,218		$	411,765			$	410,330		$	417,132		$	415,228
Total assets ⁽³⁾		443,461			438,346				436,479			443,520			441,854
Total deposits		418,298			413,150				411,117			418,480			416,842
Allocated equity		23,641			24,128				24,402			24,226			24,132
Economic capital ⁽⁴⁾		5,683			6,161				6,424			6,239			6,164

Period end
Total earning assets ⁽³⁾	$	429,956		$	414,215			$	408,734		$	413,648		$	418,873
Total assets ⁽³⁾		456,248			440,954				434,854			439,770			445,237
Total deposits		431,022			415,189				409,365			414,470			420,251

(1)

Fully taxable-equivalent basis

(2)

Return on average economic capital is calculated as net income, excluding cost of funds and earnings credit on intangibles, divided by average economic capital.

(3)

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

(4)

Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights).

n/m

= not meaningful

Certain prior period amounts have been reclassified among the segments 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

Deposits Key Indicators

(Dollars in millions, except as noted)


	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
	2011			2010			2010			2010			2010
Average deposit balances
Checking	$	160,452		$	154,333		$	150,117		$	152,130		$	146,610
Savings		36,701			35,120			35,135			35,467			33,345
MMS		125,941			124,446			122,996			122,123			116,826
CDs and IRAs		91,954			95,860			99,702			105,592			116,907
Non-U.S. and other		3,250			3,391			3,167			3,168			3,154

Total average deposit balances	$	418,298		$	413,150		$	411,117		$	418,480		$	416,842


Deposit spreads (excludes noninterest costs)
Checking		3.50	%		3.60	%		3.76	%		3.81	%		3.82	%
Savings		3.42			3.51			3.63			3.70			3.73
MMS		1.55			1.55			1.53			0.84			0.77
CDs and IRAs		0.35			0.32			0.28			0.22			0.12
Non-U.S. and other		3.97			4.10			4.24			4.34			4.40
Total deposit spreads		2.20			2.20			2.23			2.02			1.91

Client brokerage assets⁽¹⁾	$	66,703		$	63,597		$	59,984		$	51,102		$	55,856

Online banking (end of period)
Active accounts (units in thousands)		30,065			29,345			29,313			29,195			29,850
Active billpay accounts (units in thousands)		15,345			14,986			14,941			14,902			15,078

LOGO

Bank of America maintains a strong active online banking customer base with 30.1 million subscribers.

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

15.3 million active bill pay users paid $78.9 billion worth of bills this quarter.

(1)

During the first quarter of 2011, the Merrill Edge business was moved from GWIM along with historical results.

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

Global Card Services Segment Results

(Dollars in millions)


	First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010
Net interest income ⁽¹⁾	$	3,743		$	4,203		$	4,361		$	4,439		$	4,818
Noninterest income:
Card income		1,728			2,000			1,877			1,900			1,881
All other income (loss)		100			43			(527	)		522			104

Total noninterest income		1,828			2,043			1,350			2,422			1,985

Total revenue, net of interest expense		5,571			6,246			5,711			6,861			6,803

Provision for credit losses		964			2,141			3,177			3,795			3,535
Goodwill impairment		—			—			10,400			—			—
All other noninterest expense		1,887			1,741			1,706			1,776			1,732

Income (loss) before income taxes		2,720			2,364			(9,572	)		1,290			1,536
Income tax expense ⁽¹⁾		1,008			876			303			470			573

Net income (loss)	$	1,712		$	1,488		$	(9,875	)	$	820		$	963


Net interest yield ⁽¹⁾		9.28	%		9.94	%		10.09	%		10.01	%		10.32	%
Return on average equity		26.63			21.46			n/m			8.12			9.05
Return on average economic capital ⁽²⁾		51.95			40.37			13.94			19.44			20.08
Efficiency ratio ⁽¹⁾		33.89			27.89			n/m			25.88			25.47
Efficiency ratio, excluding goodwill impairment charge ⁽¹⁾		33.89			27.89			29.85			25.88			25.47

Balance sheet

Average
Total loans and leases	$	162,885		$	167,156		$	171,191		$	177,571		$	189,307
Total earning assets		163,577			167,716			171,456			177,868			189,353
Total assets		165,170			167,722			177,602			186,153			195,809
Allocated equity		26,073			27,499			35,270			40,517			43,170
Economic capital ⁽³⁾		13,407			14,798			15,529			17,349			19,901

Period end
Total loans and leases	$	158,900		$	167,367		$	168,845		$	173,021		$	181,763
Total earning assets		159,971			168,224			169,615			173,497			182,267
Total assets		163,435			169,745			169,786			183,298			190,949

(1)

Fully taxable-equivalent basis

(2)

Return on average economic capital is calculated as net income, excluding goodwill impairment charge, cost of funds and earnings credit on intangibles, divided by average economic capital.

(3)

Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights).

n/m = not meaningful

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


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

Bank of America Corporation and Subsidiaries

Global Card Services Key Indicators

(Dollars in millions)


	First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010
Credit Card Data ⁽¹⁾

Loans
Average credit card outstandings	$	137,574		$	140,130		$	142,298		$	146,444		$	155,225
Ending credit card outstandings		134,342			141,250			140,871			143,130			149,555

Credit Quality
Net charge-offs	$	2,676		$	2,911		$	3,270		$	4,459		$	4,594
		7.89	%		8.24	%		9.12	%		12.21	%		12.00	%
30+ delinquency	$	6,478		$	7,268		$	7,643		$	8,256		$	10,172
		4.82	%		5.15	%		5.43	%		5.77	%		6.80	%
90+ delinquency	$	3,570		$	3,919		$	4,007		$	4,542		$	5,589
		2.65	%		2.77	%		2.84	%		3.17	%		3.74	%

Other Global Card Services Key Indicators

Credit card data
Gross interest yield		10.67	%		10.92	%		11.13	%		10.89	%		11.18	%
Risk adjusted margin		4.97			5.40			3.28			1.33			1.83
New account growth (in thousands)		918			790			710			664			739
Purchase volumes	$	50,496		$	56,458		$	54,257		$	53,924		$	48,677

Debit Card Data
Debit purchase volumes	$	59,996		$	60,866		$	58,011		$	59,136		$	56,067

(1)

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

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.		18

Bank of America Corporation and Subsidiaries

Consumer Real Estate Services Segment Results

(Dollars in millions; except as noted)


	First Quarter 2011				Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010				First Quarter 2010
Net interest income ⁽¹⁾	$	904			$	1,131			$	1,346			$	1,000			$	1,213
Noninterest income:
Mortgage banking income (loss)		694				(1,338	)			1,756				1,020				1,641
Insurance income		499				532				574				561				590
All other income		85				159				68				215				179

Total noninterest income (loss)		1,278				(647	)			2,398				1,796				2,410

Total revenue, net of interest expense		2,182				484				3,744				2,796				3,623

Provision for credit losses		1,098				1,198				1,302				2,390				3,600
Goodwill impairment		—				2,000				—				—				—
All other noninterest expense		4,884				4,046				2,971				2,819				3,328

Loss before income taxes		(3,800	)			(6,760	)			(529	)			(2,413	)			(3,305	)
Income tax benefit ⁽¹⁾		(1,408	)			(1,784	)			(190	)			(878	)			(1,233	)

Net loss	$	(2,392	)		$	(4,976	)		$	(339	)		$	(1,535	)		$	(2,072	)


Net interest yield ⁽¹⁾		2.11		%		2.48		%		2.87		%		2.13		%		2.58		%
Efficiency ratio ⁽¹⁾		n/m				n/m				79.38				100.84				91.84

Balance sheet

Average
Total loans and leases	$	120,560			$	124,934			$	127,713			$	130,663			$	133,744
Total earning assets		173,315				180,960				186,021				188,145				190,804
Total assets		210,302				219,106				223,042				229,070				234,010
Allocated equity		18,846				24,451				26,627				26,346				27,280
Economic capital ⁽²⁾		16,095				19,643				21,818				21,535				22,466

Period end
Total loans and leases	$	118,750			$	122,934			$	127,700			$	129,798			$	132,427
Total earning assets		167,280				173,032				178,969				188,090				183,897
Total assets		205,504				213,363				215,505				225,398				224,469

Period end (in billions)
Mortgage servicing portfolio⁽³⁾	$	2,028.0			$	2,056.8			$	2,079.5			$	2,127.6			$	2,143.7

(1)

Fully taxable-equivalent basis

(2)

Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights).

(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 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

Consumer Real Estate Services Results ⁽¹⁾

(Dollars in millions)


	Three Months Ended March 31, 2011
	Total Consumer Real Estate Services			Home Loans & Insurance		Legacy Asset Servicing			Other
Net interest income ⁽²⁾	$	904		$	571	$	342		$	(9	)
Noninterest income:
Mortgage banking income (loss)		694			711		(19	)		2
Insurance income		499			499		—			—
All other income		85			79		6			—

Total noninterest income (loss)		1,278			1,289		(13	)		2

Total revenue, net of interest expense		2,182			1,860		329			(7	)

Provision for credit losses		1,098			—		1,098			—
Noninterest expense		4,884			1,654		3,230			—

Income (loss) before income taxes		(3,800	)		206		(3,999	)		(7	)
Income tax expense (benefit) ⁽²⁾		(1,408	)		76		(1,482	)		(2	)

Net income (loss)	$	(2,392	)	$	130	$	(2,517	)	$	(5	)


Balance sheet

Average
Total loans and leases	$	120,560		$	56,282	$	64,278		$	—
Total earning assets		173,315			80,582		66,625			26,108
Total assets		210,302			88,679		78,293			43,330
Allocated equity		18,846			n/a		n/a			n/a
Economic capital⁽³⁾		16,095			n/a		n/a			n/a

Period end
Total loans and leases	$	118,750		$	55,694	$	63,056		$	—
Total earning assets		167,280			75,038		65,251			26,991
Total assets		205,504			82,301		76,600			46,603

(1)

Consumer Real Estate Services includes Home Loans & Insurance and Legacy Asset Servicing with results related to mortgage servicing rights included in Other.

(2)

Fully taxable-equivalent basis

(3)

Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights).

n/m

= not meaningful

n/a

= not applicable

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

Consumer Real Estate Services Key Indicators

(Dollars in millions, except as noted)


	First Quarter 2011				Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010				First Quarter 2010
Mortgage servicing rights at fair value rollforward:
Balance, beginning of period	$	14,900			$	12,251			$	14,745			$	18,842			$	19,465
Net additions		841				757				745				882				1,131
Impact of customer payments		(706	)			(799	)			(923	)			(981	)			(1,056	)
Other changes in mortgage servicing rights fair value ⁽¹⁾		247				2,691				(2,316	)			(3,998	)			(698	)

Balance, end of period	$	15,282			$	14,900			$	12,251			$	14,745			$	18,842

Capitalized mortgage servicing rights
(% of loans serviced for investors)		95		bps		92		bps		73		bps		86		bps		110		bps
Mortgage loans serviced for investors (in billions)	$	1,610			$	1,628			$	1,669			$	1,706			$	1,717

Loan production:
Consumer Real Estate Services
First mortgage	$	52,519			$	81,255			$	69,875			$	69,141			$	66,965
Home equity		1,575				2,024				2,000				1,831				1,771
Total Corporation ⁽²⁾
First mortgage		56,734				84,673				71,925				71,938				69,502
Home equity		1,728				2,137				2,136				2,137				2,027

Mortgage banking income (loss)
Production income (loss):
Core production revenue	$	668			$	1,538			$	1,849			$	1,428			$	1,283
Representations and warranties provision		(1,013	)			(4,140	)			(872	)			(1,248	)			(526	)

Total production income (loss)		(345	)			(2,602	)			977				180				757

Servicing income:
Servicing fees		1,606				1,634				1,623				1,649				1,569
Impact of customer payments ⁽³⁾		(706	)			(799	)			(924	)			(981	)			(1,056	)
Fair value changes of mortgage servicing rights, net of economic hedge results ⁽⁴⁾		2				257				(90	)			12				197
Other servicing-related revenue		137				172				170				160				174

Total net servicing income		1,039				1,264				779				840				884

Total Consumer Real Estate Services mortgage banking income (loss)		694				(1,338	)			1,756				1,020				1,641
Other business segments' mortgage banking loss ⁽⁵⁾		(64	)			(81	)			(1	)			(122	)			(141	)

Total consolidated mortgage banking income (loss)	$	630			$	(1,419	)		$	1,755			$	898			$	1,500

(1)

These amounts reflect the change in discount rates and prepayment speed assumptions, mostly due to changes in interest rates, as well as the effect of changes in other assumptions.

(2)

In addition to loan production in Consumer Real Estate Services, the remaining first mortgage and home equity loan production is primarily in GWIM.

(3)

Represents the change in the market value of the mortgage servicing rights asset due to the impact of customer payments received during the year.

(4)

Includes sale of mortgage servicing rights.

(5)

Includes the effect of transfers of mortgage loans from Consumer Real Estate Services to the asset and liability management portfolio included in All Other.

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


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

Bank of America Corporation and Subsidiaries

Global Commercial Banking Segment Results

(Dollars in millions)


	First Quarter 2011			Fourth Quarter 2010				Third Quarter 2010			Second Quarter 2010			First Quarter 2010
Net interest income ⁽¹⁾	$	1,846		$	1,861			$	1,849		$	2,093		$	2,189
Noninterest income:
Service charges		606			563				589			589			599
All other income		196			186				191			198			300

Total noninterest income		802			749				780			787			899

Total revenue, net of interest expense		2,648			2,610				2,629			2,880			3,088

Provision for credit losses		76			(132	)			556			623			936
Noninterest expense		1,106			1,058				1,059			974			1,030

Income before income taxes		1,466			1,684				1,014			1,283			1,122
Income tax expense ⁽¹⁾		543			634				371			470			419

Net income	$	923		$	1,050			$	643		$	813		$	703


Net interest yield ⁽¹⁾		2.73	%		2.66		%		2.60	%		3.13	%		3.39	%
Return on average equity		9.02			9.69				5.94			7.44			6.40
Return on average economic capital ⁽²⁾		17.97			18.71				11.50			14.11			11.94
Efficiency ratio ⁽¹⁾		41.74			40.58				40.30			33.80			33.35

Balance sheet

Average
Total loans and leases	$	191,977		$	194,819			$	198,835		$	206,107		$	213,838
Total earning assets ⁽³⁾		274,648			277,385				281,732			268,533			261,640
Total assets ⁽³⁾		312,557			314,766				318,382			305,776			298,007
Total deposits		160,217			156,671				148,605			145,499			143,635
Allocated equity		41,493			42,978				42,912			43,858			44,566
Economic capital ⁽⁴⁾		20,793			22,274				22,205			23,147			23,950

Period end
Total loans and leases	$	190,293		$	193,568			$	195,853		$	203,169		$	211,250
Total earning assets ⁽³⁾		272,410			274,622				267,817			269,492			268,141
Total assets ⁽³⁾		309,917			312,787				304,521			306,222			304,058
Total deposits		161,584			161,278				150,994			147,414			145,669

(1)

Fully taxable-equivalent basis

(2)

Return on average economic capital is calculated as net income, excluding cost of funds and earnings credit on intangibles, divided by average economic capital.

(3)

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

(4)

Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights).

n/m = not meaningful

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


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

Bank of America Corporation and Subsidiaries

Global Commercial Banking Key Indicators

(Dollars in millions)


	First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010
	First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010
Revenue, net of interest expense by service segment
Business lending	$	1,484		$	1,505		$	1,556		$	1,656		$	1,879
Treasury services		1,164			1,105			1,073			1,224			1,209

Total revenue, net of interest expense ⁽¹⁾	$	2,648		$	2,610		$	2,629		$	2,880		$	3,088


Average loans and leases by product
U.S. commercial	$	104,703		$	102,914		$	101,447		$	104,262		$	108,081
Commercial real estate		42,796			45,854			49,747			53,721			57,918
Direct/Indirect consumer		41,976			43,711			45,400			45,776			45,400
Other		2,502			2,340			2,241			2,348			2,439

Total average loans and leases	$	191,977		$	194,819		$	198,835		$	206,107		$	213,838

Loan spread		2.39	%		2.27	%		2.29	%		2.32	%		2.30	%

Credit quality
Reservable utilized criticized exposure ⁽²⁾	$	30,643		$	32,816		$	36,332		$	37,613		$	39,586
		15.83	%		16.74	%		18.45	%		18.50	%		18.53	%
Nonperforming loans, leases and foreclosed properties ⁽³⁾	$	8,321		$	8,681		$	9,414		$	10,027		$	10,814
		4.36	%		4.47	%		4.79	%		4.92	%		5.10	%

Average deposit balances
Interest-bearing	$	54,678		$	55,354		$	53,565		$	54,195		$	54,189
Noninterest-bearing		105,539			101,317			95,040			91,304			89,446

Total	$	160,217		$	156,671		$	148,605		$	145,499		$	143,635

(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, commercial letters of credit and bankers acceptances.

(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 current period presentation.


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

Bank of America Corporation and Subsidiaries

Global Banking & Markets Segment Results

(Dollars in millions)


	First Quarter 2011				Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010				First Quarter 2010
Net interest income ⁽¹⁾	$	2,038			$	2,007			$	1,901			$	2,002			$	2,170
Noninterest income:
Service charges		475				501				459				468				463
Investment and brokerage services		677				563				581				676				623
Investment banking income		1,511				1,583				1,306				1,301				1,216
Trading account profits		2,620				962				2,453				1,202				5,072
All other income (loss)		566				(128	)			407				255				149

Total noninterest income		5,849				3,481				5,206				3,902				7,523

Total revenue, net of interest expense		7,887				5,488				7,107				5,904				9,693

Provision for credit losses		(202	)			(112	)			(157	)			(133	)			236
Noninterest expense		4,726				4,394				4,393				4,733				4,292

Income before income taxes		3,363				1,206				2,871				1,304				5,165
Income tax expense ⁽¹⁾		1,231				505				1,433				405				1,927

Net income	$	2,132			$	701			$	1,438			$	899			$	3,238


Return on average equity		20.57		%		5.85		%		11.24		%		7.04		%		24.72	%
Return on average economic capital ⁽²⁾		28.00				7.80				14.41				9.08				31.14
Efficiency ratio ⁽¹⁾		59.92				80.06				61.82				80.16				44.28

Balance sheet

Average
Total trading-related assets⁽³⁾	$	455,932			$	478,554			$	497,896			$	512,529			$	508,914
Total loans and leases		103,704				100,606				98,874				95,839				99,034
Total market-based earning assets		467,042				475,021				494,772				521,010				527,316
Total earning assets⁽⁴⁾		573,505				584,632				590,503				613,044				625,339
Total assets⁽⁴⁾		708,231				738,036				743,041				769,285				776,584
Total deposits		112,028				114,942				106,472				112,565				103,634
Allocated equity		42,029				47,511				50,756				51,245				53,131
Economic capital ⁽⁵⁾		31,197				36,810				40,237				40,705				42,470

Period end
Total trading-related assets⁽³⁾	$	455,889			$	413,567			$	508,577			$	471,117			$	440,479
Total loans and leases		105,651				99,964				99,525				95,756				95,580
Total market-based earning assets		465,609				416,174				500,664				463,069				440,304
Total earning assets ⁽⁴⁾		563,921				510,358				599,139				552,556				535,770
Total assets⁽⁴⁾		698,399				651,638				746,777				705,911				685,445
Total deposits		115,212				110,971				109,601				105,678				104,700

Trading-related assets (average)
Trading account securities	$	206,177			$	201,006			$	201,494			$	204,139			$	203,996
Reverse repurchases		149,667				160,266				174,297				184,146				189,118
Securities borrowed		44,799				50,491				54,730				57,276				54,783
Derivative assets		55,289				66,791				67,375				66,968				61,017

Total trading-related assets ⁽³⁾	$	455,932			$	478,554			$	497,896			$	512,529			$	508,914

(1)

Fully taxable-equivalent basis

(2)

Return on average economic capital is calculated as net income, excluding cost of funds and earnings credit on intangibles, divided by average economic capital.

(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).

(5)

Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights).

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


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

Bank of America Corporation and Subsidiaries

Global Banking & Markets Key Indicators

(Dollars in millions)


	First Quarter 2011				Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010				First Quarter 2010
Sales and trading revenue
Fixed income, currency and commodities	$	3,646			$	1,757			$	3,477			$	2,230			$	5,487
Equity income		1,249				781				967				882				1,514

Total sales and trading revenue	$	4,895			$	2,538			$	4,444			$	3,112			$	7,001

Investment banking income
Advisory ⁽¹⁾	$	319			$	336			$	273			$	242			$	167
Debt issuance		799				808				743				773				735
Equity issuance		393				439				290				286				314

Total investment banking income	$	1,511			$	1,583			$	1,306			$	1,301			$	1,216

Corporate Banking
Business lending	$	841			$	750			$	778			$	872			$	874
Treasury services		640				617				579				619				602

Total revenue, net of interest expense	$	1,481			$	1,367			$	1,357			$	1,491			$	1,476


Global Corporate & Investment Banking Key Indicators

Average deposit balances
Interest-bearing	$	53,145			$	59,068			$	55,833			$	55,109			$	50,607
Noninterest-bearing		52,214				48,454				43,981				49,009				44,426

Total average deposits	$	105,359			$	107,522			$	99,814			$	104,118			$	95,033


Loan spread		2.29		%		1.62		%		1.77		%		1.94		%		1.94	%

Provision for credit losses	$	(164	)		$	(110	)		$	(102	)		$	(191	)		$	201

Credit quality ^{(2, 3)}
Reservable utilized criticized exposure	$	5,298			$	5,924			$	7,131			$	7,290			$	9,664
		4.87		%		5.67		%		6.95		%		7.29		%		9.69	%
Nonperforming loans, leases and foreclosed properties	$	314			$	645			$	993			$	905			$	922
		0.35		%		0.76		%		1.19		%		1.13		%		1.16	%
Average loans and leases by product
U.S. commercial	$	33,704			$	33,522			$	32,681			$	33,593			$	36,178
Commercial real estate		82				24				26				31				36
Commercial lease financing		23,478				23,271				23,356				23,250				23,696
Non-U.S. commercial		30,220				26,550				24,650				22,710				21,905
Other		46				42				43				43				44

Total average loans and leases	$	87,530			$	83,409			$	80,756			$	79,627			$	81,859

(1)

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

(2)

(3)

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 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

Super Senior Collateralized Debt Obligation Exposure

(Dollars in millions)


	March 31, 2011
	Subprime ⁽¹⁾		Retained Positions		Total Subprime		Non- Subprime ⁽²⁾		Total
Unhedged	$	404	$	101	$	505	$	483	$	988
Hedged⁽³⁾		679		—		679		229		908

Total	$	1,083	$	101	$	1,184	$	712	$	1,896

(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)


	March 31, 2011
	Super Senior CDOs				Other Guaranteed Positions				Total
Notional	$	3,225			$	35,273			$	38,498
Mark-to-market or guarantor receivable		2,693				5,623				8,316
Credit valuation adjustment		(2,444	)			(2,838	)			(5,282	)

Total	$	249			$	2,785			$	3,034

Credit valuation adjustment %		91		%		50		%		64		%

Losses during the three months ended March 31, 2011	$	(276	)		$	(131	)		$	(407	)

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.		26

Bank of America Corporation and Subsidiaries

Investment Banking Product Rankings

Three Months Ended March 31, 2011

Global

U.S.

Product
Ranking

Market
Share

Product
Ranking

Market
Share

High-yield corporate debt

10.3

11.7

Leveraged loans

15.1

18.1

Mortgage-backed securities

9.4

11.3

Asset-backed securities

11.5

18.9

Convertible debt

4.0

6.4

Common stock underwriting

7.9

9.8

Investment grade corporate debt

6.9

12.8

Syndicated loans

9.4

17.9

Net investment banking revenue

7.9

12.3

Announced mergers and acquisitions

14.3

18.0

Equity capital markets

7.4

9.4

Debt capital markets

5.3

9.4

Source: Dealogic data as of April 4, 2011. Figures above include self-led transactions.

•

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

•

Debt capital markets excludes loans.

•

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.

Highlights


*Global 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

*U.S. top 3 rankings in:*

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

Excluding self-mandated deals:

Global: #1 - Leveraged loans, investment grade corporate debt

Global: #2 - Mortgage-backed securities, asset-backed securities, common stock underwriting, syndicated loans, equity capital markets

Global: #3 - High-yield corporate debt

US: #1 - Leveraged loans, investment grade corporate debt

US: #2 - High-yield corporate debt, mortgage-backed securities, asset-backed securities, syndicated loans

US: #3 - Debt capital markets


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

Bank of America Corporation and Subsidiaries

Global Wealth & Investment Management Segment Results

(Dollars in millions, except as noted)


	First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010
Net interest income ⁽¹⁾	$	1,569		$	1,425		$	1,344		$	1,442		$	1,464
Noninterest income:
Investment and brokerage services		2,377			2,265			2,089			2,194			2,106
All other income		544			469			463			552			468

Total noninterest income		2,921			2,734			2,552			2,746			2,574

Total revenue, net of interest expense		4,490			4,159			3,896			4,188			4,038

Provision for credit losses		46			155			128			121			242
Noninterest expense		3,600			3,494			3,373			3,277			3,103

Income before income taxes		844			510			395			790			693
Income tax expense ⁽¹⁾		313			195			145			466			259

Net income	$	531		$	315		$	250		$	324		$	434


Net interest yield ⁽¹⁾		2.34	%		2.14	%		2.21	%		2.45	%		2.60	%
Return on average equity		12.01			6.84			5.50			7.15			9.87
Return on average economic capital ⁽²⁾		30.34			17.73			14.81			18.81			26.35
Efficiency ratio ⁽¹⁾		80.18			84.03			86.57			78.24			76.86

Balance sheet
Average
Total loans and leases	$	100,851		$	100,306		$	99,103		$	98,811		$	98,841
Total earning assets ⁽³⁾		271,564			264,110			241,559			236,583			227,956
Total assets ⁽³⁾		291,907			284,881			262,053			257,198			249,799
Total deposits		258,518			246,281			234,808			226,277			221,613
Allocated equity		17,938			18,227			18,039			18,179			17,825
Economic capital ⁽⁴⁾		7,210			7,476			7,264			7,381			7,037

Period end
Total loans and leases	$	101,286		$	100,724		$	99,511		$	99,157		$	98,343
Total earning assets ⁽³⁾		259,805			268,963			242,203			229,890			235,519
Total assets ⁽³⁾		280,524			289,954			263,322			251,022			257,299
Total deposits		256,526			257,983			240,381			226,572			227,148

(1)

Fully taxable-equivalent basis

(2)

Return on average economic capital is calculated as net income, excluding cost of funds and earnings credit on intangibles, divided by average economic capital.

(3)

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

(4)

Economic capital represents allocated equity less goodwill and a percentage of intangible assets (excluding mortgage servicing rights).

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


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

Bank of America Corporation and Subsidiaries

Global Wealth & Investment Management - Key Indicators and Metrics

(Dollars in millions, except as noted)


	First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010
Revenues
Merrill Lynch Global Wealth Management	$	3,540		$	3,428		$	3,178		$	3,138		$	2,988
U.S. Trust		696			709			691			681			641
Retirement Services		272			225			243			244			239
Other ⁽¹⁾		(18	)		(203	)		(216	)		125			170

Total revenues	$	4,490		$	4,159		$	3,896		$	4,188		$	4,038



Client Balances ⁽²⁾
Client Balances by Business
Merrill Lynch Global Wealth Management	$	1,554,300		$	1,515,903		$	1,466,354		$	1,402,554		$	1,453,722
U.S. Trust		345,086			340,334			334,142			327,335			351,525
Retirement Services		255,046			246,775			234,249			224,930			233,304
Other^{(1, 3)}		71,759			78,275			86,199			92,227			199,738

Client Balances by Type
Assets under management ⁽³⁾	$	664,466		$	630,498		$	611,461		$	591,872		$	721,022
Client brokerage assets		1,087,097			1,077,049			1,055,384			1,010,751			1,062,292
Assets in custody		116,816			115,033			114,207			118,694			129,484
Client deposits		256,526			257,983			240,381			226,572			227,148
Loans and leases		101,286			100,724			99,511			99,157			98,343

Total client balances	$	2,226,191		$	2,181,287		$	2,120,944		$	2,047,046		$	2,238,289


Assets Under Management Flows ⁽³⁾
Liquidity assets under management ⁽⁴⁾	$	(6,659	)	$	(8,050	)	$	(6,599	)	$	(9,788	)	$	(17,278	)
Long-term assets under management ⁽⁵⁾		14,117			5,507			3,935			1,257			3,014

Total assets under management	$	7,458		$	(2,543	)	$	(2,664	)	$	(8,531	)	$	(14,264	)


Associates ⁽⁶⁾

Number of Financial Advisors		15,695			15,511			15,486			15,299			15,178

Total Wealth Advisors		17,201			17,025			16,983			16,781			16,682

Total Client Facing Professionals		20,273			20,069			20,014			19,745			19,573

Merrill Lynch Global Wealth Management Metrics

Financial Advisor Productivity ⁽⁷⁾ (in thousands)	$	931		$	913		$	846		$	843		$	808

U.S. Trust Metrics

Client Facing Professionals		2,313			2,311			2,302			2,277			2,302

(1)

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

(2)

During the first quarter of 2011, the Merrill Edge business was moved to Deposits along with historical results.

(3)

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

(4)

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.

(5)

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

(6)

Includes Merrill Edge ^®

(7)

Financial Advisor Productivity is defined as annualized MLGWM total revenue divided by the total number of financial advisors (excluding Merrill Edge Financial Advisors).

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

All Other Results ⁽¹⁾

(Dollars in millions)


	First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010
Net interest income ⁽²⁾	$	92		$	76		$	(37	)	$	77		$	41
Noninterest income:
Equity investment income		1,409			1,500			267			2,253			512
Gains on sales of debt securities		468			858			794			14			648
All other income (loss)		(841	)		(1,756	)		(275	)		782			126

Total noninterest income		1,036			602			786			3,049			1,286

Total revenue, net of interest expense		1,128			678			749			3,126			1,327

Provision for credit losses		1,799			1,838			328			1,249			1,218
Merger and restructuring charges		202			370			421			508			521
All other noninterest expense		1,286			508			137			599			1,207

Income (loss) before income taxes		(2,159	)		(2,038	)		(137	)		770			(1,619	)
Income tax benefit ⁽²⁾		(947	)		(2,406	)		(512	)		(354	)		(834	)

Net income (loss)	$	(1,212	)	$	368		$	375		$	1,124		$	(785	)


Balance sheet

Average
Total loans and leases	$	258,350		$	252,180		$	238,441		$	257,322		$	256,156
Total assets ⁽³⁾		206,910			207,401			218,798			303,430			320,546
Total deposits		48,608			44,841			44,870			64,708			70,858
Allocated equity		60,749			50,731			35,972			29,090			19,807

Period end
Total loans and leases	$	256,930		$	255,213		$	241,799		$	254,515		$	255,869
Total assets ⁽³⁾		160,505			186,468			204,895			256,763			237,177
Total deposits		34,817			38,748			37,653			57,425			56,855

(1)

All Other consists of equity investment activities including Global Principal Investments, Corporate Investments prior to its sale in the first quarter of 2010 and Strategic Investments (including the Corporation’s equity investment interest in BlackRock, Inc.), 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 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 asset and liability management 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, gains (losses) on sales of debt securities and impairment on debt securities. All Other also includes adjustments to noninterest income and income tax expense to remove the fully taxable-equivalent basis impact of items (primarily low-income housing tax credits) that have been grossed up within noninterest income to a fully taxable-equivalent basis amount in the business segments.

(2)

Fully taxable-equivalent basis

(3)

Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) of $668.4 billion, $661.1 billion, $634.3 billion, $611.7 billion and $589.4 billion for the first quarter of 2011, and the fourth, third, second and first quarters of 2010, and $661.6 billion, $647.8 billion, $621.5 billion, $604.0 billion and $612.1 billion for the first quarter of 2011, and the fourth, third, second and first quarters of 2010.

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


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

Bank of America Corporation and Subsidiaries

Equity Investments

(Dollars in millions)

Global Principal Investments Exposures

Equity Investment
Income

March 31, 2011

December 31,
2010

Book
Value

Unfunded
Commitments

Total

Total

First Quarter
2011

Global Principal Investments:

Private Equity Investments

5,008

186

5,194

4,988

1,203

Global Real Estate

1,492

212

1,704

1,995

Global Strategic Capital

2,469

464

2,933

3,122

Legacy/Other Investments

2,252

404

2,656

2,935

)

Total Global Principal Investments

11,221

1,266

12,487

13,040

1,365

Components of Equity Investment Income

(Dollars in millions)


	First Quarter 2011		Fourth Quarter 2010		Third Quarter 2010		Second Quarter 2010		First Quarter 2010
Global Principal Investments	$	1,365	$	867	$	46	$	814	$	577
Corporate Investments		14		6		6		6		(311	)
Strategic and other investments ⁽¹⁾		30		627		215		1,433		246

Total equity investment income included in All Other		1,409		1,500		267		2,253		512
Total equity investment income included in the business segments		66		12		90		513		113

Total consolidated equity investment income	$	1,475	$	1,512	$	357	$	2,766	$	625

(1)

Includes the Corporation’s equity investment interest in BlackRock.

Certain prior period amounts have been reclassified among the segments 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

Outstanding Loans and Leases

(Dollars in millions)


	March 31 2011		December 31 2010		Increase (Decrease)
Consumer
Residential mortgage ⁽¹⁾	$	261,934	$	257,973	$	3,961
Home equity		133,629		137,981		(4,352	)
Discontinued real estate ⁽²⁾		12,694		13,108		(414	)
U.S. credit card		107,107		113,785		(6,678	)
Non-U.S. credit card		27,235		27,465		(230	)
Direct/Indirect consumer⁽³⁾		89,444		90,308		(864	)
Other consumer ⁽⁴⁾		2,754		2,830		(76	)

Total consumer		634,797		643,450		(8,653	)


Commercial
U.S. commercial ⁽⁵⁾		188,449		190,305		(1,856	)
Commercial real estate ⁽⁶⁾		47,008		49,393		(2,385	)
Commercial lease financing		21,563		21,942		(379	)
Non-U.S. commercial		36,921		32,029		4,892

Total commercial loans excluding loans measured at fair value		293,941		293,669		272
Commercial loans measured at fair value ⁽⁷⁾		3,687		3,321		366

Total commercial		297,628		296,990		638

Total loans and leases	$	932,425	$	940,440	$	(8,015	)

(1)

Includes non-U.S. residential mortgages of $92 million and $90 million at March 31, 2011 and December 31, 2010.

(2)

Includes $11.4 billion and $11.8 billion of pay option loans, and $1.3 billion and $1.3 billion of subprime loans at March 31, 2011 and December 31, 2010. The Corporation no longer originates these products.

(3)

Includes dealer financial services loans of $41.0 billion and $42.9 billion, consumer lending of $11.5 billion and $12.9 billion, U.S. securities-based lending margin loans of $19.7 billion and $16.6 billion, student loans of $6.6 billion and $6.8 billion, non-U.S. consumer loans of $8.5 billion and $8.0 billion, and other consumer loans of $2.1 billion and $3.1 billion at March 31, 2011 and December 31, 2010.

(4)

Includes consumer finance loans of $1.9 billion and $1.9 billion, other non-U.S. consumer loans of $818 million and $803 million, and consumer overdrafts of $69 million and $88 million at March 31, 2011 and December 31, 2010.

(5)

Includes U.S. small business commercial loans, including card related products, of $14.3 billion and $14.7 billion at March 31, 2011 and December 31, 2010.

(6)

Includes U.S. commercial real estate loans of $44.7 billion and $46.9 billion, and non-U.S. commercial real estate loans of $2.4 billion and $2.5 billion at March 31, 2011 and December 31, 2010.

(7)

Certain commercial loans are accounted for under the fair value option and include U.S. commercial loans of $1.4 billion and $1.6 billion, non-U.S. commercial loans of $2.3 billion and $1.7 billion, and commercial real estate loans of $68 million and $79 million at March 31, 2011 and December 31, 2010.

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


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

Bank of America Corporation and Subsidiaries

Quarterly Average Loans and Leases by Business Segment

(Dollars in millions)


	First Quarter 2011
	Total Corporation		Deposits			Global Card Services		Consumer Real Estate Services			Global Commercial Banking		Global Banking & Markets		GWIM		All Other
Consumer
Residential mortgage	$	262,049	$	183		$	—	$	—		$	283	$	99	$	35,752	$	225,732
Home equity		136,089		131			—		119,123			1,013		—		15,686		136
Discontinued real estate		12,899		—			—		—			—		—		—		12,899
U.S. credit card		109,941		—			109,941		—			—		—		—		—
Non-U.S. credit card		27,633		—			27,633		—			—		—		—		—
Direct/Indirect consumer		90,097		56			12,744		97			41,976		371		28,110		6,743
Other consumer		2,753		69			771		(15	)		—		5		17		1,906

Total consumer		641,461		439			151,089		119,205			43,272		475		79,565		247,416

Commercial
U.S. commercial		191,353		198			10,521		1,349			104,703		45,511		19,355		9,716
Commercial real estate		48,359		2			257		5			42,796		934		1,731		2,634
Commercial lease financing		21,634		—			—		—			—		23,478		34		(1,878	)
Non-U.S. commercial		36,159		—			1,018		1			1,206		33,306		166		462

Total commercial		297,505		200			11,796		1,355			148,705		103,229		21,286		10,934

Total loans and leases	$	938,966	$	639		$	162,885	$	120,560		$	191,977	$	103,704	$	100,851	$	258,350


	Fourth Quarter 2010
	Total Corporation		Deposits			Global Card Services		Consumer Real Estate Services			Global Commercial Banking		Global Banking & Markets		GWIM		All Other
Consumer
Residential mortgage	$	254,051	$	160		$	—	$	—		$	282	$	104	$	35,327	$	218,178
Home equity		139,772		131			—		122,521			974		—		16,004		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		60			14,197		107			43,711		302		26,224		6,948
Other consumer		2,796		27			785		(356	)		—		5		18		2,317

Total consumer		641,595		378			155,112		122,272			44,967		411		77,573		240,882

Commercial
U.S. commercial		193,608		231			10,730		2,656			102,914		46,386		20,711		9,980
Commercial real estate		51,617		2			234		6			45,853		952		1,830		2,740
Commercial lease financing		21,363		—			—		—			1		23,271		35		(1,944	)
Non-U.S. commercial		32,431		2			1,080		—			1,084		29,586		157		522

Total commercial		299,019		235			12,044		2,662			149,852		100,195		22,733		11,298

Total loans and leases	$	940,614	$	613		$	167,156	$	124,934		$	194,819	$	100,606	$	100,306	$	252,180


	First Quarter 2010
	Total Corporation		Deposits			Global Card Services		Consumer Real Estate Services			Global Commercial Banking		Global Banking & Markets		GWIM		All Other
Consumer
Residential mortgage	$	243,833	$	(5	)	$	—	$	—		$	323	$	545	$	35,346	$	207,624
Home equity		152,536		123			—		133,018			980		—		16,692		1,723
Discontinued real estate		14,433		—			—		—			—		—		—		14,433
U.S. credit card		125,353		—			125,348		—			—		—		—		5
Non-U.S. credit card		29,872		—			29,878		—			—		—		—		(6	)
Direct/Indirect consumer		100,920		74			19,846		87			45,400		67		23,595		11,851
Other consumer		3,002		119			657		(790	)		—		7		23		2,986

Total consumer		669,949		311			175,729		132,315			46,703		619		75,656		238,616

Commercial
U.S. commercial		202,662		376			12,086		1,421			108,081		48,087		20,925		11,686
Commercial real estate		68,526		6			178		8			57,917		1,079		2,085		7,253
Commercial lease financing		21,675		—			—		—			1		23,696		31		(2,053	)
Non-U.S. commercial		28,803		2			1,314		—			1,136		25,553		144		654

Total commercial		321,666		384			13,578		1,429			167,135		98,415		23,185		17,540

Total loans and leases	$	991,615	$	695		$	189,307	$	133,744		$	213,838	$	99,034	$	98,841	$	256,156

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

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

(Dollars in millions)


	Commercial Utilized							Total Commercial Committed
	March 31 2011		December 31 2010		Increase (Decrease)			March 31 2011			December 31 2010			Increase (Decrease)
Diversified financials	$	54,085	$	55,196	$	(1,111	)	$	81,676		$	83,248		$	(1,572	)
Real estate ⁽⁴⁾		56,084		58,531		(2,447	)		69,273			72,004			(2,731	)
Government and public education		42,292		44,131		(1,839	)		58,174			59,594			(1,420	)
Healthcare equipment and services		29,227		30,420		(1,193	)		46,124			47,569			(1,445	)
Capital goods		22,151		21,940		211			45,833			46,087			(254	)
Retailing		24,994		24,660		334			44,506			43,950			556
Consumer services		23,261		24,759		(1,498	)		38,441			39,694			(1,253	)
Materials		16,162		15,873		289			34,277			33,046			1,231
Banks		29,454		26,831		2,623			32,894			29,667			3,227
Commercial services and supplies		21,013		20,056		957			31,139			30,517			622
Food, beverage and tobacco		14,789		14,777		12			28,550			28,126			424
Energy		10,426		9,765		661			27,471			26,328			1,143
Utilities		7,355		6,990		365			26,325			24,207			2,118
Insurance, including monolines		16,673		17,263		(590	)		23,483			24,417			(934	)
Individuals and trusts		16,935		18,278		(1,343	)		21,802			22,899			(1,097	)
Media		10,517		11,611		(1,094	)		19,944			20,619			(675	)
Transportation		11,721		12,070		(349	)		17,894			18,436			(542	)
Pharmaceuticals and biotechnology		4,569		3,859		710			12,063			11,009			1,054
Technology hardware and equipment		4,270		4,373		(103	)		10,798			10,932			(134	)
Religious and social organizations		8,013		8,409		(396	)		10,384			10,823			(439	)
Telecommunication services		3,717		3,823		(106	)		9,527			9,321			206
Software and services		3,358		3,837		(479	)		8,882			9,531			(649	)
Consumer durables and apparel		4,247		4,297		(50	)		8,599			8,836			(237	)
Food and staples retailing		3,824		3,222		602			6,940			6,161			779
Automobiles and components		2,256		2,090		166			5,905			5,941			(36	)
Other		7,556		13,361		(5,805	)		11,122			17,133			(6,011	)
Total commercial credit exposure by industry	$	448,949	$	460,422	$	(11,473	)	$	732,026		$	740,095		$	(8,069	)

Net credit default protection purchased on total commitments ⁽⁵⁾								$	(19,179	)	$	(20,118	)

(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 $57.7 billion and $58.3 billion at March 31, 2011 and December 31, 2010. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $14.9 billion and $17.7 billion which consists primarily of other marketable securities at March 31, 2011 and December 31, 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 $3.7 billion and $3.3 billion and issued letters of credit at notional value of $1.4 billion at both March 31, 2011 and December 31, 2010. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $27.0 billion and $25.9 billion at March 31, 2011 and December 31, 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 on the borrowers’ or counterparties’ primary business activity using operating cash flows 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.		34

Bank of America Corporation and Subsidiaries

Net Credit Default Protection by Maturity Profile⁽¹⁾


	March 31 2011			December 31 2010
Less than or equal to one year		13	%		14	%
Greater than one year and less than or equal to five years		78			80
Greater than five years		9			6
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)


	March 31, 2011						December 31, 2010
Ratings ⁽³⁾	Net Notional			Percent			Net Notional			Percent
AA	$	(223	)		1.2	%	$	(188	)		0.9	%
A		(6,967	)		36.3			(6,485	)		32.2
BBB		(7,105	)		37.0			(7,731	)		38.4
BB		(1,871	)		9.8			(2,106	)		10.5
B		(1,231	)		6.4			(1,260	)		6.3
CCC and below		(756	)		3.9			(762	)		3.8
NR ⁽⁴⁾		(1,026	)		5.4			(1,586	)		7.9
Total net credit default protection	$	(19,179	)		100.0	%	$	(20,118	)		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 $(921) million and $(1.5) billion in net credit default swap index positions at March 31, 2011 and December 31, 2010. While index positions are principally investment grade, credit default swaps indices include names in and across each of the ratings categories.

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


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

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 March 31, 2011		Increase (Decrease) from December 31, 2010
Region/Country
Asia Pacific
China ⁽⁷⁾	$	2,044	$	864	$	659	$	22,587	$	26,154	$	—	$	26,154	$	2,226
India		3,461		1,716		554		2,657		8,388		428		8,816		548
South Korea		395		1,408		557		2,582		4,942		2,322		7,264		1,985
Singapore		473		67		557		1,398		2,495		—		2,495		(51	)
Taiwan		387		122		66		765		1,340		1,006		2,346		491
Hong Kong		454		310		198		1,084		2,046		—		2,046		4
Thailand		20		14		19		471		524		108		632		(37	)
Indonesia		53		19		13		443		528		—		528		379
Other Asia Pacific ⁽⁸⁾		256		41		194		354		845		—		845		280
Total Asia Pacific		7,543		4,561		2,817		32,341		47,262		3,864		51,126		5,825
Latin America
Brazil		1,006		321		1,174		3,378		5,879		1,876		7,755		1,949
Mexico		1,863		286		266		882		3,297		—		3,297		(1,088	)
Chile		988		134		302		49		1,473		39		1,512		(14	)
Colombia		136		468		11		4		619		—		619		(58	)
Other Latin America ⁽⁸⁾		266		329		22		376		993		150		1,143		(235	)
Total Latin America		4,259		1,538		1,775		4,689		12,261		2,065		14,326		554
Middle East and Africa
United Arab Emirates		937		4		133		52		1,126		—		1,126		(50	)
Bahrain		79		1		4		1,000		1,084		2		1,086		(74	)
Other Middle East and Africa ⁽⁸⁾		769		90		206		245		1,310		26		1,336		(16	)
Total Middle East and Africa		1,785		95		343		1,297		3,520		28		3,548		(140	)
Central and Eastern Europe
Turkey		371		31		20		218		640		98		738		238
Russian Federation		216		93		32		139		480		22		502		(34	)
Other Central and Eastern Europe ⁽⁸⁾		120		184		360		827		1,491		—		1,491		238
Total Central and Eastern Europe		707		308		412		1,184		2,611		120		2,731		442
Total emerging market exposure	$	14,294	$	6,502	$	5,347	$	39,511	$	65,654	$	6,077	$	71,731	$	6,681

(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 March 31, 2011 and December 31, 2010, there was $368 million and $460 million in emerging market exposure accounted for under the fair value option.

(2)

Includes acceptances, due froms, standby letters of credit, 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 $881 million and $1.2 billion at March 31, 2011 and December 31, 2010. At March 31, 2011 and December 31, 2010, there were $306 million and $408 million of other marketable securities collateralizing derivative assets.

(4)

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

(5)

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

(6)

Local country exposure includes amounts payable to the Corporation by borrowers with a country of residence in which the credit is booked, regardless of the currency in which the claim is denominated. Local funding or liabilities are subtracted from local exposures consistent with FFIEC reporting requirements. Total amount of available local liabilities funding local country exposure at March 31, 2011 was $18.4 billion compared to $15.7 billion at December 31, 2010. Local liabilities at March 31, 2011 in Asia Pacific, Latin America, and Middle East and Africa were $16.3 billion, $1.9 billion and $263 million, respectively, of which $7.4 billion was in Singapore, $2.5 billion in Hong Kong, $2.1 billion in China, $1.9 billion in Mexico, $1.5 billion in India, $983 million in Korea, and $713 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 $21.0 billion in China Construction Bank.

(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.		36

Bank of America Corporation and Subsidiaries

Nonperforming Loans, Leases and Foreclosed Properties

(Dollars in millions)


	March 31 2011			December 31 2010			September 30 2010			June 30 2010			March 31 2010
Residential mortgage	$	17,466		$	17,691		$	18,291		$	18,283		$	17,763
Home equity		2,559			2,694			2,702			2,951			3,335
Discontinued real estate		327			331			297			293			279
Direct/Indirect consumer		68			90			83			85			91
Other consumer		36			48			56			72			89

Total consumer		20,456			20,854			21,429			21,684			21,557

U.S. commercial ⁽¹⁾		3,056			3,453			3,894			4,217			4,407
Commercial real estate		5,695			5,829			6,376			6,704			7,177
Commercial lease financing		53			117			123			140			147
Non-U.S. commercial		155			233			272			130			150

		8,959			9,632			10,665			11,191			11,881
U.S. small business commercial		172			204			202			222			179

Total commercial		9,131			9,836			10,867			11,413			12,060

Total nonperforming loans and leases		29,587			30,690			32,296			33,097			33,617
Foreclosed properties		2,056			1,974			2,260			2,501			2,308

Total nonperforming loans, leases and foreclosed properties ^(2, 3, 4)	$	31,643		$	32,664		$	34,556		$	35,598		$	35,925


Federal Housing Administration insured loans past due 90 days or more and still accruing	$	19,754		$	16,768		$	16,427		$	15,338		$	13,589
Other loans past due 90 days or more and still accruing		5,129			5,611			5,781			6,448			7,851

Total loans past due 90 days or more and still accruing ^(3, 5)	$	24,883		$	22,379		$	22,208		$	21,786		$	21,440


Nonperforming loans, leases and foreclosed properties/Total assets⁽⁶⁾		1.39	%		1.44	%		1.48	%		1.51	%		1.53	%
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties⁽⁶⁾		3.40			3.48			3.71			3.73			3.69
Nonperforming loans and leases/Total loans and leases⁽⁶⁾		3.19			3.27			3.47			3.48			3.46

Allowance for credit losses:
Allowance for loan and lease losses ⁽⁷⁾	$	39,843		$	41,885		$	43,581		$	45,255		$	46,835
Reserve for unfunded lending commitments		961			1,188			1,294			1,413			1,521

Total allowance for credit losses	$	40,804		$	43,073		$	44,875		$	46,668		$	48,356


Allowance for loan and lease losses/Total loans and leases ⁽⁶⁾		4.29	%		4.47	%		4.69	%		4.75	%		4.82	%
Allowance for loan and lease losses/Total nonperforming loans and leases		135			136			135			137			139
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total nonperforming loans and leases		108			116			118			121			124

Commercial utilized reservable criticized exposure ⁽⁸⁾	$	39,435		$	42,621		$	47,698		$	50,319		$	55,322
Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure⁽⁸⁾		10.94	%		11.80	%		13.06	%		13.48	%		14.43	%
Total commercial utilized criticized exposure/Commercial utilized exposure ⁽⁸⁾		11.73			12.43			13.61			14.26			15.49

(1)

Excludes U.S. small business commercial loans.

(2)

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.

(3)

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.

		43		43		43		43		43
(4) Balances do not include the following:	March 31 2011		December 31 2010		September 30 2010		June 30 2010		March 31 2010
Nonperforming loans held-for-sale	$	*2,421*	$	2,540	$	3,654	$	4,044	$	4,195
Nonperforming loans accounted for under the fair value option		15		30		15		15		70
Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010		*456*		426		378		403		301
(5) Balances do not include the following:
Loans accounted for under the fair value option past due 90 days or more and still accruing	$	—	$	—	$	—	$	—	$	49
Loans held-for-sale past due 90 days or more and still accruing		48		60		79		158		241

(6)

Ratios do not include loans accounted for under the fair value option of $3.7 billion, $3.3 billion, $3.7 billion, $3.9 billion and $4.1 billion at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

(7)

Balances include the allowance for loan and lease losses on purchased credit-impaired loans of $8.0 billion, $6.4 billion, $5.6 billion, $5.3 billion and $5.1 billion at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

(8)

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.		37

Bank of America Corporation and Subsidiaries

Nonperforming Loans, Leases and Foreclosed Properties Activity ⁽¹⁾

(Dollars in millions)


	First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010
Nonperforming Consumer Loans:
Balance, beginning of period	$	20,854		$	21,429		$	21,684		$	21,557		$	20,839
Additions to nonperforming loans:
Consolidation of VIEs		—			—			—			—			448
New nonaccrual loans		4,127			4,568			4,551			5,409			6,608
Reductions in nonperforming loans:
Paydowns and payoffs		(779	)		(739	)		(917	)		(528	)		(625	)
Returns to performing status ⁽²⁾		(1,340	)		(1,841	)		(1,469	)		(1,816	)		(2,521	)
Charge-offs⁽³⁾		(2,020	)		(2,261	)		(1,987	)		(2,607	)		(2,917	)
Transfers to foreclosed properties		(386	)		(302	)		(433	)		(331	)		(275	)

Total net additions to (reductions in) nonperforming loans		(398	)		(575	)		(255	)		127			718

Total nonperforming consumer loans, end of period		20,456			20,854			21,429			21,684			21,557
Foreclosed properties		1,331			1,249			1,485			1,744			1,388

Total nonperforming consumer loans and foreclosed properties, end of period	$	21,787		$	22,103		$	22,914		$	23,428		$	22,945

Nonperforming Commercial Loans and Leases ⁽⁴⁾:
Balance, beginning of period	$	9,836		$	10,867		$	11,413		$	12,060		$	12,703
Additions to nonperforming loans and leases:
New nonaccrual loans and leases		1,299			1,820			1,852			2,256			1,881
Advances		67			102			83			62			83
Reductions in nonperforming loans and leases:
Paydowns and payoffs		(764	)		(1,113	)		(906	)		(1,148	)		(771	)
Sales		(247	)		(228	)		(187	)		(256	)		(170	)
Return to performing status ⁽⁵⁾		(320	)		(465	)		(415	)		(404	)		(323	)
Charge-offs ⁽⁶⁾		(488	)		(767	)		(628	)		(870	)		(956	)
Transfers to foreclosed properties		(200	)		(304	)		(217	)		(205	)		(319	)
Transfers to loans held-for-sale		(52	)		(76	)		(128	)		(82	)		(68	)

Total net reductions in nonperforming loans and leases		(705	)		(1,031	)		(546	)		(647	)		(643	)

Total nonperforming loans and leases, end of period		9,131			9,836			10,867			11,413			12,060
Foreclosed properties		725			725			775			757			920

Total nonperforming commercial loans, leases and foreclosed properties, end of period	$	9,856		$	10,561		$	11,642		$	12,170		$	12,980

(1)

For amounts excluded from nonperforming loans, leases and foreclosed properties, see footnotes to Nonperforming Loans, Leases and Foreclosed Properties table on page 37.

(2)

Consumer loans may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Certain troubled debt restructurings are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

(3)

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

(4)

Includes U.S. small business commercial activity.

(5)

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.

(6)

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.		38

Bank of America Corporation and Subsidiaries

Quarterly Net Charge-offs and Net Charge-off Ratios ⁽¹⁾

(Dollars in millions)


	First Quarter 2011						Fourth Quarter 2010					Third Quarter 2010					Second Quarter 2010						First Quarter 2010
Net Charge-offs	Amount			Percent			Amount		Percent			Amount		Percent			Amount			Percent			Amount		Percent
Residential mortgage	$	905			1.40	%	$	970		1.51	%	$	660		1.10	%	$	971			1.57	%	$	1,069		1.78	%
Home equity		1,179			3.51			1,271		3.61			1,372		3.80			1,741			4.71			2,397		6.37
Discontinued real estate		20			0.61			11		0.35			17		0.48			19			0.54			21		0.60
U.S. credit card		2,274			8.39			2,572		9.05			2,975		10.24			3,517			11.88			3,963		12.82
Non-U.S. credit card		402			5.91			339		4.90			295		4.32			942			13.64			631		8.57
Direct/Indirect consumer		525			2.36			641		2.78			707		2.93			879			3.58			1,109		4.46
Other consumer		40			5.93			50		6.96			80		10.68			73			10.01			58		7.80

Total consumer		5,345			3.38			5,854		3.62			6,106		3.81			8,142			4.96			9,248		5.60

U.S. commercial ⁽²⁾		(21	)		(0.05	)		210		0.47			206		0.47			179			0.41			286		0.63
Commercial real estate		288			2.42			347		2.67			410		2.93			645			4.03			615		3.64
Commercial lease financing		1			0.02			20		0.38			19		0.34			(3	)		(0.06	)		21		0.40
Non-U.S. commercial		103			1.22			8		0.10			12		0.17			66			0.98			25		0.37

		371			0.54			585		0.83			647		0.91			887			1.23			947		1.28
U.S. small business commercial		312			8.68			344		9.13			444		11.38			528			12.94			602		14.21

Total commercial		683			0.94			929		1.25			1,091		1.46			1,415			1.86			1,549		1.98

Total net charge-offs	$	6,028			2.61		$	6,783		2.87		$	7,197		3.07		$	9,557			3.98		$	10,797		4.44


By Business Segment
Deposits	$	34			21.34	%	$	40		25.64	%	$	70		39.43	%	$	66			35.64	%	$	43		25.26	%
Global Card Services		3,343			8.32			3,693		8.76			4,232		9.81			5,674			12.82			6,011		12.88
Consumer Real Estate Services		1,114			3.75			1,183		3.76			1,323		4.11			1,664			5.11			2,317		7.03
Global Commercial Banking		513			1.08			639		1.30			728		1.45			958			1.87			1,076		2.04
Global Banking & Markets		(3	)		(0.01	)		25		0.10			52		0.22			87			0.38			143		0.61
Global Wealth & Investment Management		88			0.36			131		0.52			112		0.45			115			0.47			119		0.49
All Other		939			1.47			1,072		1.69			680		1.13			993			1.55			1,088		1.72

Total net charge-offs	$	6,028			2.61		$	6,783		2.87		$	7,197		3.07		$	9,557			3.98		$	10,797		4.44

(1)

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

(2)

Excludes U.S. small business commercial loans.

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.		39

Bank of America Corporation and Subsidiaries

Allocation of the Allowance for Credit Losses by Product Type

(Dollars in millions)


	March 31, 2011									December 31, 2010									March 31, 2010
Allowance for loan and lease losses	Amount		Percent of Total				Percent of Loans and Leases Outstanding ⁽¹⁾			Amount		Percent of Total				Percent of Loans and Leases Outstanding ⁽¹⁾			Amount		Percent of Total				Percent of Loans and Leases Outstanding ⁽¹⁾
Residential mortgage	$	5,369		13.48		%		2.05	%	$	5,082		12.14		%		1.97	%	$	4,960		10.59		%		2.02	%
Home equity		12,857		32.27				9.62			12,887		30.77				9.34			12,133		25.91				8.09
Discontinued real estate		1,871		4.69				14.74			1,283		3.06				9.79			878		1.87				6.18
U.S. credit card		9,100		22.84				8.50			10,876		25.97				9.56			13,703		29.26				11.34
Non-U.S.credit card		2,069		5.19				7.60			2,045		4.88				7.45			2,394		5.11				8.32
Direct/Indirect consumer		1,939		4.87				2.17			2,381		5.68				2.64			3,395		7.25				3.42
Other consumer		163		0.41				5.92			161		0.38				5.67			191		0.41				6.35

Total consumer		33,368		83.75				5.26			34,715		82.88				5.40			37,654		80.40				5.70

U.S. commercial ⁽²⁾		3,156		7.92				1.67			3,576		8.54				1.88			4,956		10.58				2.53
Commercial real estate		2,904		7.29				6.18			3,137		7.49				6.35			3,569		7.62				5.36
Commercial lease financing		124		0.31				0.57			126		0.30				0.57			278		0.59				1.30
Non-U.S.commercial		291		0.73				0.79			331		0.79				1.03			378		0.81				1.41

Total commercial ⁽³⁾		6,475		16.25				2.20			7,170		17.12				2.44			9,181		19.60				2.95

Allowance for loan and lease losses		39,843		100.00	%			4.29			41,885		100.00	%			4.47			46,835		100.00	%			4.82

Reserve for unfunded lending commitments		961									1,188									1,521

Allowance for credit losses ⁽⁴⁾	$	40,804								$	43,073								$	48,356

(1)

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 $1.4 billion, $1.6 billion and $2.5 billion, non-U.S. commercial loans of $2.3 billion, $1.7 billion and $1.5 billion, and commercial real estate loans of $68 million, $79 million and $101 million at March 31, 2011, December 31, 2010 and March 31, 2010, respectively.

(2)

Includes allowance for U.S. small business commercial loans of $1.3 billion, $1.5 billion and $2.1 billion at March 31, 2011, December 31, 2010 and March 31, 2010, respectively.

(3)

Includes allowance for loan and lease losses for impaired commercial loans of $996 million, $1.1 billion and $1.5 billion at March 31, 2011, December 31, 2010 and March 31, 2010, respectively.

(4)

Includes $8.0 billion, $6.4 billion and $5.1 billion of allowance for credit losses related to purchased credit-impaired loans at March 31, 2011, December 31, 2010 and March 31, 2010, respectively.

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

Exhibit A: Non-GAAP Reconciliations

Bank of America Corporation and Subsidiaries

Reconciliations to GAAP Financial Measures

(Dollars in millions)

The Corporation evaluates its business based on a fully taxable-equivalent basis, a non-GAAP measure. The Corporation believes managing the business with net interest income on a fully taxable-equivalent basis provides a more accurate picture of the interest margin for comparative purposes. 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. To derive the fully taxable-equivalent basis, net interest income is adjusted to reflect tax exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. This measure ensures comparability of net interest income arising from taxable and tax-exempt sources. The efficiency ratio measures the costs expended to generate a dollar of revenue, and net interest yield evaluates the basis points the Corporation earns over the cost of funds.

The Corporation also evaluates its business based on the following ratios that utilize tangible equity, 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 common share 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. 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.

In certain presentations, 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 are calculated excluding the impact of goodwill impairment charges of $2.0 billion and $10.4 billion recorded in the fourth and third quarters of 2010. Accordingly, these are non-GAAP measures.

See the tables below and on page 42 for reconciliations of these non-GAAP measures with financial measures defined by GAAP for the three months ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010. The Corporation believes 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.


	First Quarter 2011		Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010		First Quarter 2010

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

Net interest income	$	12,179	$	12,439		$	12,435		$	12,900	$	13,749
Fully taxable-equivalent adjustment		218		270			282			297		321

Net interest income on a fully taxable-equivalent basis	$	12,397	$	12,709		$	12,717		$	13,197	$	14,070


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

Total revenue, net of interest expense	$	26,877	$	22,398		$	26,700		$	29,153	$	31,969
Fully taxable-equivalent adjustment		218		270			282			297		321

Total revenue, net of interest expense on a fully taxable-equivalent basis	$	27,095	$	22,668		$	26,982		$	29,450	$	32,290


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

Total noninterest expense	$	20,283	$	20,864		$	27,216		$	17,253	$	17,775
Goodwill impairment charges		—		(2,000	)		(10,400	)		—		—

Total noninterest expense, excluding goodwill impairment charges	$	20,283	$	18,864		$	16,816		$	17,253	$	17,775


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

Income tax expense (benefit)	$	731	$	(2,351	)	$	1,387		$	672	$	1,207
Fully taxable-equivalent adjustment		218		270			282			297		321

Income tax expense (benefit) on a fully taxable-equivalent basis	$	949	$	(2,081	)	$	1,669		$	969	$	1,528


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

Net income (loss)	$	2,049	$	(1,244	)	$	(7,299	)	$	3,123	$	3,182
Goodwill impairment charges		—		2,000			10,400			—		—

Net income, excluding goodwill impairment charges	$	2,049	$	756		$	3,101		$	3,123	$	3,182


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

Net income (loss) applicable to common shareholders	$	1,739	$	(1,565	)	$	(7,647	)	$	2,783	$	2,834
Goodwill impairment charges		—		2,000			10,400			—		—

Net income applicable to common shareholders, excluding goodwill impairment charges	$	1,739	$	435		$	2,753		$	2,783	$	2,834

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

Exhibit A: Non-GAAP Reconciliations - continued

Bank of America Corporation and Subsidiaries

Reconciliations to GAAP Financial Measures

(Dollars in millions)


	First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010			First Quarter 2010

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

Common shareholders’ equity	$	214,206		$	218,728		$	215,911		$	215,468		$	200,399
Common Equivalent Securities		—			—			—			—			11,760
Goodwill		(73,922	)		(75,584	)		(82,484	)		(86,099	)		(86,353	)
Intangible assets (excluding mortgage servicing rights)		(9,769	)		(10,211	)		(10,629	)		(11,216	)		(11,906	)
Related deferred tax liabilities		3,035			3,121			3,214			3,395			3,497

Tangible common shareholders’ equity	$	133,550		$	136,054		$	126,012		$	121,548		$	117,397


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

Shareholders’ equity	$	230,769		$	235,525		$	233,978		$	233,461		$	229,910
Goodwill		(73,922	)		(75,584	)		(82,484	)		(86,099	)		(86,353	)
Intangible assets (excluding mortgage servicing rights)		(9,769	)		(10,211	)		(10,629	)		(11,216	)		(11,906	)
Related deferred tax liabilities		3,035			3,121			3,214			3,395			3,497

Tangible shareholders’ equity	$	150,113		$	152,851		$	144,079		$	139,541		$	135,148


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

Common shareholders’ equity	$	214,314		$	211,686		$	212,391		$	215,181		$	211,859
Goodwill		(73,869	)		(73,861	)		(75,602	)		(85,801	)		(86,305	)
Intangible assets (excluding mortgage servicing rights)		(9,560	)		(9,923	)		(10,402	)		(10,796	)		(11,548	)
Related deferred tax liabilities		2,933			3,036			3,123			3,215			3,396

Tangible common shareholders’ equity	$	133,818		$	130,938		$	129,510		$	121,799		$	117,402


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

Shareholders’ equity	$	230,876		$	228,248		$	230,495		$	233,174		$	229,823
Goodwill		(73,869	)		(73,861	)		(75,602	)		(85,801	)		(86,305	)
Intangible assets (excluding mortgage servicing rights)		(9,560	)		(9,923	)		(10,402	)		(10,796	)		(11,548	)
Related deferred tax liabilities		2,933			3,036			3,123			3,215			3,396

Tangible shareholders’ equity	$	150,380		$	147,500		$	147,614		$	139,792		$	135,366


Reconciliation of period end assets to period end tangible assets

Assets	$	2,274,532		$	2,264,909		$	2,339,660		$	2,368,384		$	2,344,634
Goodwill		(73,869	)		(73,861	)		(75,602	)		(85,801	)		(86,305	)
Intangible assets (excluding mortgage servicing rights)		(9,560	)		(9,923	)		(10,402	)		(10,796	)		(11,548	)
Related deferred tax liabilities		2,933			3,036			3,123			3,215			3,396

Tangible assets	$	2,194,036		$	2,184,161		$	2,256,779		$	2,275,002		$	2,250,177

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

Appendix: Selected Slides from the

First Quarter 2011 Earnings Release Presentation


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

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Key Takeaways from 1Q11 Results

Franchise Growth

Key hires in Capital Markets and Corporate & Investment Banking

Consumer banking transformation on schedule

Increasing financial advisors and small business bankers

Credit Quality

Net losses improved $755M from 4Q10 to lowest level since 2Q08

Consumer 30+ performing delinquencies, excluding FHA, improved 12% from 4Q10

Nonperforming loans, leases and foreclosed properties improved 3% from 4Q10

Loan loss reserves remain strong, covering current period annualized losses 1.6 times

Capital & Liquidity

Tangible Common Equity of $133.8B, or $13.21 per share

Tier 1 Common Equity ratio up slightly to 8.64%

Global excess liquidity grew to $386B

Long-term debt levels were reduced $14.0B

Customer Demand

Core commercial loans increased slightly

Deposit balances grew to $1.02T

Consumer spending up 6% over last year

Long-term AUM flows of client assets into wealth management of $14.1B

Simplification Progress

Sale of Balboa on target

Reduced capital markets legacy assets by 13% in the quarter

Reduced mortgage exposure to monolines with key settlement

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Balance Sheet Highlights

($ in billions except per share amounts)

March 31, 2011

March 31, 2010

Increase

(Decrease)

Total assets $ 2,274.5 $ 2,344.6 $ (70.1)

Total risk-weighted assets 1,433.4 1,519.7 (86.3)

Total deposits 1,020.2 976.1 44.1

Long-term debt 434.4 511.7 (77.3)

Tangible common shareholders’ equity 1 133.8 117.4 16.4

Tier 1 common equity 123.9 115.5 8.4

Global excess liquidity sources 386 269 117

Tier 1 common equity ratio 8.64 % 7.60 % 104 bps

Tangible book value per share 1 $ 13.21 $ 11.70 $ 1.51

Asset Quality

Allowance for loan and lease losses $ 39.8 $ 46.8 $ (7.0)

as a % of loans and leases 2 4.29 % 4.82 % (53) bps

coverage for annualized net losses 1.63 x 1.07 x 0.56 x

Nonperforming loans, leases

and foreclosed properties $ 31.6 $ 35.9 $ (4.3)

1 Represents non-GAAP financial measure

2 Excluded FVO loans

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Business Segment Highlights

Deposits

• Net income of $355M in 1Q11 improved from a loss of $190M in 4Q10 due to higher litigation costs in the prior quarter

• Solid deposit growth with disciplined pricing

– Rates paid on deposits improved 4 bps down to 32 bps

• Improvement in account closures and new accounts reflect continued focus on quality relationships and retention

• Early test market results are very positive in our consumer banking transformation

– Launched Customer Solutions in test markets allowing sales efforts to focus on the value of relationships with retail customers

– Platinum PrivilegesTM was rolled out in test markets focused on our Preferred Customer segment

Global Card Services

• Net income of $1.7B increased 15% over 4Q10 as credit improvements more than offset lower net interest income from continued loan balance declines and lower yields as well as seasonal decline in retail volume

• Total retail volume of debit and credit transactions was down seasonally from 4Q10, but increased 6% from 1Q10

• U.S. credit card net losses improved for the 6th consecutive quarter as delinquencies near all-time lows

• Payment rate on U.S. credit card improved for the 7th straight quarter

• New U.S. credit card accounts continue to grow and are up 26% from 4Q10

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Business Segment Highlights (cont’d)

Global Wealth & Investment Management

• Net income of $531M improved $216M from 4Q10 driven by a record quarter in fee income, higher net interest income and lower credit costs offset somewhat by higher advisor compensation expenses

• Client balances grew by $45B driven by market and long-term AUM flows of $14B

• Experienced the 7th consecutive quarter of increasing client-facing associates driven by 184 new Financial Advisors

Global Commercial Banking

• Net income of $923M was down $127M from 4Q10 driven by lower credit reserve reductions

• Continue to see moderate deposit growth across most commercial segments as customers remain liquid

• Loan pipeline is robust in upper-end middle market and real estate, and soft but promising growth across other segments

– Average commercial and industrial loans grew 2% from 4Q10

• Middle market revolver utilization rates improved to 35%

• Asset quality solidly improved

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Business Segment Highlights (cont’d)

Global Banking & Markets

• Net income of $2.1B improved $1.4B from 4Q10 on higher sales and trading results as well as strong investment banking fees and corporate banking revenue somewhat offset by continued investment in the franchise

• Sales and trading was up significantly from 4Q10 but below the record quarter of 1Q10

– Results include DVA losses of $357M in 1Q11 compared to gains of $31M in 4Q10 and gains of $169M in 1Q10

• Strong investment banking fees were in line with 4Q10 and up 24% compared to 1Q10

– Significant deals in Asia and Emerging Markets helped diversify revenue outside the U.S.

• Investment banking pipeline looks strong and ahead of last year at this time

• Legacy capital markets assets were reduced 13% from 4Q10, generally at levels at or above their valuations

• Increase in corporate loan balances, primarily non-U.S., reflecting growth in international trade finance and core loans

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Business Segment Highlights (cont’d)

Consumer Real Estate Services (previously Home Loans & Insurance)

• A net loss of $2.4B improved from a loss of $5.0B in 4Q10, but legacy costs continue to impact results and originations have slowed

• 1Q11 includes roughly $3.0B in costs for representations and warranties, litigation, and mortgage-related assessments and waivers

• This quarter, for the first time, we have segregated the results of our Legacy Asset Servicing unit from the rest of our Home Loans & Insurance operations

– Legacy Asset Servicing recorded a loss of $2.5B while Home Loans & Insurance reported a small profit

• We continue to make solid progress in addressing legacy issues

– Comprehensive action plan reached and identified in a consent order outlining remediation measures on foreclosure process

– Restarted foreclosures in 4Q10 with the progress mostly in non-judicial states

– Announced agreement with monoline insurer, Assured Guaranty, fully addressing their outstanding and potential repurchase claims representing original collateral exposure of $35.8B and principal at-risk of $10.9B

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Focus on Costs

$ in billions 1Q11 4Q10

Total noninterest expense $ 20.3 $ 20.9

Selected large items

Mortgage-related assessments and waivers $ 0.9 $ 0.2

Retirement eligible stock-based compensation expense 1.0 -

Litigation expense 0.9 1.5

Merger & restructuring charges 0.2 0.4

Goodwill impairment charge—2.0

Total selected large items(3.0)(4.1)

Noninterest expense adjusted for select items (1) $ 17.3 $ 16.8

1Q11 vs. 4Q10 expense, adjusted for large items, reflects slightly higher costs for increased revenue in our capital markets and wealth management businesses

Launching company-wide efficiency initiative

Goal is to increase earnings by reducing expenses, increasing revenue, enhancing risk control and making changes to allow us to better execute and serve customers while delivering more value for shareholders

Tangible results on expense levels expected to benefit financial performance in second half of 2012

1 Represents non-GAAP financial measure

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Significant Items in 1Q11

Significant items in 1Q11 earnings include ($ in billions, except EPS)

Pre-tax

Approximate EPS Impact 1

Revenue

Representations and warranties provision $ (1.0) $ (0.06)

Negative fair value adjustment on structured liabilities (0.6) (0.04)

Equity investment gains 1.1 0.07

Debt securities gains 0.5 0.03

Trading DVA loss (0.4) (0.02)

Expense

Litigation expense (0.9) (0.06)

Mortgage-related assessments and waivers (0.9) (0.06)

Retirement eligible stock-based compensation expense (1.0) (0.06)

Merger and restructuring charges (0.2) (0.01)

Provision

Loan loss reserve reduction 2.2 0.14

1 Reflects estimated diluted EPS impact

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1Q11 Loan Activity 1

Total Loans

(end of period loans, $ in billions)

$2.9 $940.4

$6.0 $932.4

$4.9

12/31 Loans

Loan-runoff

Net charge-offs

Net increase in loans

3/31 Loans

Addition to loan balance Subtraction from loan balance

Commercial excl. CRE

(end of period loans, $ in billions)

$3.5

$247.6 $0.1 $0.4 $250.6

12/31 Loans Loan-runoff Net charge-offs Net increase in loans 3/31 Loans

Addition to loan balance Subtraction from loan balance

Total Consumer

(end of period loans, $ in billions)

$1.4 $643.4

$4.7 $5.3 $634.8

12/31 Loans Loan-runoff Net charge- offs Net increase in loans 3/31 Loans

Addition to loan balance Subtraction from loan balance

Commercial Real Estate (CRE)

(end of period loans, $ in billions)

$49.4 $0.1 $0.3 $2.0 $47.0

12/31 Loans Loan-runoff Net charge- offs Net decrease in loans 3/31 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.

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Card Revenue

$3,000

$2,500

$2,127

$1,976 $2,023 $1,982

$2,000 $1,828

millions in $ $1,500

$1,000

$500

1Q10 2Q10 3Q10 4Q10 1Q11

Commentary vs. 4Q10

• Card revenue decreased $299M primarily as a result of seasonally lower retail volume

– Retail spending volume (debit and credit) decreased 6% from 4Q10, but is up 6% from 1Q10

• Continue to see signals of increasing consumer confidence and improving economy

– Unemployment rate declined to less than 9%

– In U.S. card, retail spend per average active account has increased 13% from 1Q10

– In U.S. card, payment rate, or the rate at which customers are paying off balances, improved for the seventh straight quarter

• Focus remains on growth with lower risk customers and continued expansion of existing customer relationships

• New U.S. consumer card accounts opened in the quarter were up 26% from 4Q10

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Consumer Real Estate Services

Consumer Real Estate Services (previously Home Loans & Insurance) originates first- and second-lien mortgage loans. The first-lien mortgage loans are generally sold into the secondary mortgage market or to Corporate Investments in All Other while retaining servicing and the customer relationship. Second-lien mortgages are retained on Consumer Real Estate Services’ balance sheet. Consumer Real Estate Services services mortgage loans, including those it owns, loans owned by other segments and loans owned by outside investors. Consumer Real Estate Services receives fees from other segments for servicing their loans. The financial results of the on-balance sheet loans are reported in the segment that owns the loan. Consumer Real Estate Services also provides insurance services. The components of Consumer Real Estate Services are:

• Home Loans & Insurance includes the ongoing loan production activities, servicing activities related to current loans, insurance operations and the Consumer Real Estate Services home equity portfolio not selected for inclusion in the Legacy Asset Servicing portfolio. Its results represent the ongoing activities of Consumer Real Estate Services.

• Legacy Asset Servicing is responsible for servicing delinquent loans and managing the runoff and exposures related to selected residential mortgage, home equity and discontinued loan portfolios, including owned loans and loans serviced for others (Legacy Asset Servicing portfolio). Its results represent the net cost of legacy exposures that is included in the results of Consumer Real Estate Services, including representations and warranties provision, litigation costs, financial results of the Consumer Real Estate Services home equity portfolio selected as part of the Legacy Asset Servicing portfolio and the financial results of the Legacy Asset Servicing portfolio serviced for others, including fees from other segments.

• Other includes the results related to MSRs, including risk management. It includes the change in MSR value, net of hedge results, together with any related assets or liabilities. These amounts are not allocated between Home Loans & Insurance and Legacy Asset Servicing since the MSR is managed as a single asset.

Note: Home Loans & Insurance and Legacy Asset Servicing provide services to each other and receive fees for such services.

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Investment and Brokerage Revenue

$3,500

$3,025 $2,994 $3,101

$3,000 $2,879

$2,724

$2,500

$1,511 $1,565 $1,614

millions in $ $2,000 $1,392 $1,477

$1,500

$1,000

$1,273

$1,347 $1,332 $1,402 $1,487

$500

$241

$0 $82

1Q10 2Q10 3Q10 4Q10 1Q11

Commentary vs. 4Q10

• Investment and brokerage revenue increased by $222M due to higher asset management fees and brokerage income

• Asset management fees increased $85M, reflecting a strong market and positive long-term AUM flows

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

• Brokerage fees increased $137M due to increased transactional activity

Key Wealth Management Statistics 1

1Q11 4Q10 1Q10

Financial Advisors 15,695 15,511 15,178

Client Facing Professionals 20,273 20,069 19,573

Assets under management ($ in B) 2 $ 664.7 $ 630.8 $ 721.4

Total client balances ($ in B) 2 $2,277.0 $2,229.8 $2,283.5

Merrill Lynch: Active accounts (in millions) 3.33 3.31 3.14

Merrill Lynch: Net new $250K+ households 5,833 8,052 7,285

1 Includes Merrill Edge®

2 1Q10 includes $98B in both assets under management (AUM) and total client balances of Columbia Management long-term asset management business through the date of sale on May 1, 2010

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Sales and Trading Revenue

$ in millions

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

$7,001

$1,514

$5,487

$3,112

$882

$2,230

$4,444

$967

$3,477

$2,538

$781

$1,757

$4,895

$1,249

$3,646

1Q10

2Q10

3Q10

4Q10

1Q11

Fixed income, currency and commodities

Equity income

Commentary vs. 4Q10

• Sales and trading revenue increased $2.4B from 4Q10 as intra-quarter volatility increased investor demand and positive market and event-specific news resulted in a more favorable trading environment

– Compared to record results in 1Q10, results were down 30%

• FICC revenue of $3.6B increased $1.9B compared to 4Q10 due to increased client activity

• Equity revenue of $1.2B increased $468M from 4Q10 primarily due to improved positioning and client activity in the equity derivatives business and higher commission revenue in the cash business

• Proprietary trading revenue was down 54% vs. 1Q10 as a result of downsizing the business, consistent with new regulatory guidelines

• Results for 1Q11 include DVA losses of $357M

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Investment Banking Fees

$ in millions

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

$1,240

$343

$774

$167

$1,319

$318

$827

$242

$1,371

$341

$798

$273

$1,590

$496

$869

$336

$1,578

$448

$845

$319

$(44) $(68) $(41) $(111) $(34)

1Q10 2Q10 3Q10 4Q10 1Q11

Advisory Debt issuance Equity issuance Other (primarily self-led deals)

Commentary vs. 4Q10

• Investment banking fees remained strong and BAML maintained a #2 ranking globally. Global market share of 7.9% reflects a 1.6% improvement over the quarter and was the largest increase among the top 15 banks 2

• Strong performance outside the US as demonstrated by the execution of several large transactions, including: the largest Japanese equity deal of 2011, on which BAML was the only non-Japanese book manager, and Joint Global Coordinator and Joint Bookrunner on the largest ECM deal in Russia since May 2007

• Continued leadership and strength globally in Leveraged Finance with lead involvement on several significant transactions

BAML 1Q11 Product Ranking Highlights 1, 2

Global Ranking U.S. Ranking

Net investment banking fees 2 2

Leveraged loans 1 1

Asset-backed securities 2 2

Syndicated loans 2 2

Investment grade corporate debt 2 2

Common stock underwriting 2 4

Mortgage-backed securities 3 2

High-yield corporate debt 3 2

1 BAML = Bank of America Merrill Lynch.

2 Source: Dealogic data as of April 4, 2011; includes self-led transactions.

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Noninterest Expense Levels

$30,000 $27,216

$25,000

$10,400 $20,864 $20,283

$20,000 $17,775 $17,253 $2,000

millions in $ $15,000 $10,115

$8,617 $8,464 $8,414 $10,064

$10,000 $16,816 $18,864

$5,000 $9,158 $8,789 $8,402 $8,800 $10,168

1Q10 2Q10 3Q10 4Q10 1Q11

Personnel expense Non-personnel expense Goodwill impairment

Commentary vs. 4Q10

• Excluding the goodwill impairment charge in 4Q10, 1Q11 expense increased $1.4B, or 8%, from 4Q10

– Personnel costs increased $1.4B primarily as a result of $1.0B retirement eligible stock-based compensation expense and compensation costs linked to increased revenue in sales and trading and investment and brokerage fees

– Non-personnel expenses were flat as costs outside of mortgage and litigation were managed down

• Litigation costs of $940M in 1Q11 were lower than 4Q10 of $1.5B

• Costs associated with mortgage-related assessments and waivers were $874M, including $548M for compensatory fees resulting from foreclosure delays compared to $230M in 4Q10, with the remainder being out-of-pocket costs that we do not expect to recover.

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Credit Trends Are Positive

Consumer 30+ Day Performing Delinquencies

$12,000

$10,000

$8,000

millions in $ $6,000 $6,478

$4,490

$4,000

$2,258

$2,000 $1,827

1Q10 2Q10 3Q10 4Q10 1Q11

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

Consumer Net Charge-offs

$5,000

$4,000

$3,000

millions in $ $2,676

$2,000

$1,179

$1,000 $905

$525

$- $40

1Q10 2Q10 3Q10 4Q10 1Q11

Residential mortgage Home equity Credit card

Direct/Indirect Other Consumer

Nonperforming Loans, Leases and Foreclosed Properties

$40.0

$35.9 $35.6 $34.6

$32.7 $31.6

$30.0 $13.0 $12.2 $11.6 $10.6 $9.9

billions in $ $20.0

$13.3 $14.3 $14.8

$15.1 $15.2

$10.0

$9.6 $9.1 $8.2 $7.0 $6.5

1Q10 2Q10 3Q10 4Q10 1Q11

Consumer < 180 DPD Consumer > 180 DPD Commercial

Commercial Net Charge-offs

$800

$600

millions in $ $400

$312

$288

$200

$82

1Q10 2Q10 3Q10 4Q10 1Q11

Commercial & Industrial 2 Small business Commercial real estate

1 FHA insured loans are excluded for comparison purposes

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

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Credit Highlights

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

1Q11 4Q10 Inc/ (Dec) 1Q11 4Q10 Inc/ (Dec)

Residential mortgage $ 905 $ 970 $ (65) $ 5,369 $ 5,082 $ 287

Home equity 1,179 1,271 (92) 12,857 12,887 (30)

Discontinued real estate 20 11 9 1,871 1,283 588

U.S. credit card 2,274 2,572 (298) 9,100 10,876 (1,776)

Non-U.S. credit card 402 339 63 2,069 2,045 24

Direct / Indirect consumer 525 641 (116) 1,939 2,381 (442)

Other consumer 40 50 (10) 163 161 2

Total consumer 5,345 5,854 (509) 33,368 34,715 (1,347)

U.S. Commercial (excl small business) (21) 210 (231) 1,893 2,062 (169)

U.S. small business commercial 312 344 (32) 1,263 1,514 (251)

Commercial real estate 288 347 (59) 2,904 3,137 (233)

Commercial leasing financing 1 20 (19) 124 126 (2)

Non-U.S. commercial 103 8 95 291 331 (40)

Total commercial 683 929 (246) 6,475 7,170 (695)

Total loans and leases $ 6,028 $ 6,783 $ (755) 39,843 41,885 (2,042)

Reserve for unfunded lending commitments 961 1,188 (227)

Allowance for credit losses $ 40,804 $ 43,073 $ (2,269)

Commentary vs. 4Q10

• Net charge-offs declined $755M to $6.0B in 1Q11 and the net charge-off ratio declined 26 bps to 2.61%

– Charge-offs declined across most products with the greatest decline in U.S. credit card

• Total provision expense was $3.8B ($6.0B charge-offs and reserve release of $2.2B)

• $39.8B allowance for loan and lease losses provides coverage for 4.29% of loans compared to $41.9B and 4.47% coverage in 4Q10

– Allowance now covers 1.63 times current period annualized net charge-offs compared to 1.56 times in 4Q10 (excluding purchased credit-impaired allowance: 1.31 times in 1Q11 vs. 1.32 times in 4Q10)

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Consumer Purchased Credit-Impaired Loans

$ in billions 1Q11 3/31/2011

Impairment Allowance

Home equity $ 0.5 $ 5.0

Residential mortgage 0.2 1.1

Discontinued real estate 0.8 1.8

Total Legacy Countrywide 1.5 7.9

Merrill Lynch consumer 0.1 0.1

Total purchased credit-impaired $ 1.6 $ 8.0

Total carrying value, net of allowance $ 27.7

Legal claim as of March 31, 2011 $ 41.7

Carrying value as % of legal claim 66%

Commentary

• 1Q11 included $1.6B impairment driven primarily by deterioration in home prices resulting in a revised home price outlook

– Given recent observed declines in both home price data and industry expectations, we revised our forecast for home prices downward, reflecting further declines in prices over 2011 and slower appreciation versus previous expectations in 2012-2015

• Including the $8.0B allowance, the portfolio is now carried at 66% of legal claim

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1Q11 Results by Business Segment

($ in millions)

Total Corporation Deposits Global Card Services Consumer Real Estate Commercial Services Global Banking & Banking Global Markets Global Wealth & All Other Investment Management

Net interest income (FTE) $12,397 $2,205 $3,743 $904 $1,846 $2,038 $1,569 $92

Card income 1,828 1 1,728 1 60 19 19 -

Service charges 2,032 923—5 606 475 23 -

Investment and brokerage services 3,101 44—- 9 677 2,377(6)

Investment banking income (loss) 1,578—— 8 1,511 94(35)

Equity investment income 1,475—6 1 6 41 12 1,409

Trading account profits (losses) 2,722——(3) 2,620 44 61

Mortgage banking income (loss) 630—- 694—13 9(86)

Insurance income (loss) 613 2 69 499—- 81(38)

Gains on sales of debt securities 546—- 6—72—468

All other income (loss) 173 14 25 72 116 421 262(737)

Total noninterest income 14,698 984 1,828 1,278 802 5,849 2,921 1,036

Total revenue, net of interest expense (FTE) 27,095 3,189 5,571 2,182 2,648 7,887 4,490 1,128

Total noninterest expense 20,283 2,592 1,887 4,884 1,106 4,726 3,600 1,488

Pre-tax, pre-provision earnings (loss) 6,812 597 3,684(2,702) 1,542 3,161 890(360)

Provision for credit losses 3,814 33 964 1,098 76(202) 46 1,799

Income (loss) before income taxes 2,998 564 2,720(3,800) 1,466 3,363 844(2,159)

Income tax expense (benefit) FTE 949 209 1,008(1,408) 543 1,231 313(947)

Net income (loss) $2,049 $355 $1,712 $(2,392) $923 $2,132 $531 $(1,212)

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Impact of FHA-Insured Loans on Delinquencies

($ in millions) 1Q10 2Q10 3Q10 4Q10 1Q11

FHA-insured 30+ Day Performing Delinquencies $ 14,917 $ 16,988 $ 18,178 $ 19,069 $ 22,891

Change from prior period 2,676 2,071 1,190 891 3,822

30+ Day Performing Delinquency Amounts

Total consumer as reported 36,799 35,860 36,167 36,254 38,072

Total consumer excluding FHA 1 21,882 18,872 17,989 17,185 15,181

Residential mortgages as reported 20,858 22,536 23,573 24,267 27,381

Residential mortgages excluding FHA 1 5,941 5,548 5,395 5,198 4,490

30+ Day Performing Delinquency Ratios

Total consumer as reported 5.57% 5.52% 5.70% 5.63% 6.00%

Total consumer excluding FHA 1 3.64% 3.22% 3.21% 3.10% 2.83%

Residential mortgages as reported 8.51% 9.18% 9.69% 9.41% 10.45%

Residential mortgages excluding FHA 1 2.81% 2.68% 2.77% 2.69% 2.39%

Commentary vs. 4Q10

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

– Total consumer 30+ day performing delinquency excluding FHA improved for the 8th consecutive quarter, lower by $2.0B driven by declines in U.S. Credit Card of $820M and Residential Mortgage excluding FHA of $708M

1 Excludes purchased credit-impaired loans

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Consumer Asset Quality Key Indicators

($ in millions)

Residential Mortgage Home Equity Discontinued Real Estate

1Q11 4Q10 1Q11 4Q10 1Q11 4Q10

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

Loans end of period $ 261,934 $ 187,895 $ 257,973 $ 193,435 $ 133,629 $ 121,160 $ 137,981 $ 125,391 $ 12,694 $ 1,399 $ 13,108 $ 1,456

Loans average 262,049 191,309 254,051 196,693 136,089 123,589 139,772 127,116 12,899 1,424 13,297 1,508

Net charge-offs $ 905 $ 905 $ 970 $ 970 $ 1,179 $ 1,179 $ 1,271 $ 1,271 $ 20 $ 20 $ 11 $ 11

% of average loans 1.40% 1.92% 1.51% 1.96% 3.51% 3.87% 3.61% 3.97% 0.61% 5.57% 0.35% 3.10%

Allowance for loan losses $ 5,369 $ 4,276 $ 5,082 $ 4,419 $ 12,857 $ 7,915 $ 12,887 $ 8,420 $ 1,871 $ 61 $ 1,283 $ 79

% of Loans 2.05% 2.24% 1.97% 2.28% 9.62% 6.53% 9.34% 6.72% 14.74% 4.39% 9.79% 5.45%

Average refreshed (C)LTV 1 82 81 86 85 80 81

90%+ refreshed (C)LTV 1 33% 33% 44% 41% 28% 29%

Average refreshed FICO 718 719 723 723 637 639

% below 620 FICO 14% 14% 13% 12% 46% 46%

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

(cont’d)

($ in millions)

Credit Card Other Total Consumer

1Q11 4Q10 1Q11 4Q10 1Q11 4Q10

Loans end of period $ 134,342 $ 141,250 $ 92,198 $ 93,138 $ 634,797 $ 643,450

Loans average 137,574 140,130 92,850 94,345 641,461 641,595

Net charge-offs $ 2,676 $ 2,911 $ 565 $ 691 $ 5,345 $ 5,854

% of average loans 7.89% 8.24% 2.47% 2.91% 3.38% 3.62%

Allowance for loan losses $ 11,169 $ 12,921 $ 2,102 $ 2,542 $ 33,368 $ 34,715

% of Loans 8.31% 9.15% 2.28% 2.73% 5.26% 5.40%

Commentary vs. 4Q10

• The average refreshed FICO for the U.S. Credit Card portfolio was 707 at 1Q11 compared to 706 at 4Q10

• The percentage below 620 was 12% at both 1Q11 and 4Q10

• The 1Q11 credit card loss rate of 7.89% is down 35bps from 8.24% in 4Q10

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 Commercial Commercial

Small Business Total Commercial

Industrial 2 Real Estate Lease Financing

1Q11 4Q10 1Q11 4Q10 1Q11 4Q10 1Q11 4Q10 1Q11 4Q10

Loans end of period $ 211,064 $ 207,615 $ 47,008 $ 49,393 $ 14,306 $ 14,719 $ 21,563 $ 21,942 $ 293,941 $ 293,669

Loans average $ 209,339 $ 207,551 $ 48,286 $ 51,538 $ 14,542 $ 14,939 $ 21,634 $ 21,363 $ 293,801 $ 295,391

Net Charge-offs $ 82 $ 218 $ 288 $ 347 $ 312 $ 344 $ 1 $ 20 $ 683 $ 929

% of average loans 0.16% 0.42% 2.42% 2.67% 8.68% 9.13% 0.02% 0.38% 0.94% 1.25%

90+ DPD Performing 3 $ 130 $ 242 $ 168 $ 47 $ 302 $ 325 $ 16 $ 18 $ 616 $ 632

% of loans 3 0.06% 0.12% 0.36% 0.10% 2.11% 2.21% 0.07% 0.08% 0.21% 0.22%

Nonperforming loans 3 $ 3,211 $ 3,686 $ 5,695 $ 5,829 $ 172 $ 204 $ 53 $ 117 $ 9,131 $ 9,836

% of loans 3 1.52% 1.78% 12.11% 11.80% 1.20% 1.39% 0.25% 0.53% 3.11% 3.35%

Allowance for loan losses $ 2,184 $ 2,393 $ 2,904 $ 3,137 $ 1,263 $ 1,514 $ 124 $ 126 $ 6,475 $ 7,170

% of loans 1.03% 1.15% 6.18% 6.35% 8.83% 10.28% 0.57% 0.57% 2.20% 2.44%

Reservable criticized utilized

exposure 1, 3 $ 17,455 $ 19,238 $ 19,186 $ 20,518 $ 1,637 $ 1,677 $ 1,157 $ 1,188 $ 39,435 $ 42,621

% of total reservable exposure 1, 3 6.36% 7.08% 38.24% 38.88% 11.43% 11.37% 5.36% 5.41% 10.94% 11.80%

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)

$200.0

$149.9 $146.3

$150.0 $141.6 $138.0

$133.6

billions in $ $100.0

$50.0

$0.0

1Q10 2Q10 3Q10 4Q10 1Q11

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 • $12.5B legacy Countrywide purchased credit-impaired (PCI) loan portfolio

• For the non-PCI portfolio:

–$25.4B are in first-lien position; $95.7B are second-lien positions

• Of second-liens, ~40% or $38.5B have CLTV greater than 100%??Does not mean 100% severity in the event of default??Assuming proceeds of 85% of the collateral value, we estimate collateral value of $9.7B available for second liens??Additionally, on 93% of second liens with CLTVs greater than 100%, the customer is current

• Allowance on the non-PCI home equity portfolio is $7.9B

Allowance for Non-purchased Credit-impaired Loans

$10,000

$8,701 $8,489

$8,263 $8,420 $7,915

$8,000

Millions in $ $6,000

$4,000

$2,000

1Q10 2Q10 3Q10 4Q10 1Q11

Net Charge-offs 1

$3,000

$2,397

$2,000 $1,741

millions in $ $1,372 $1,271

$1,179

$1,000

1Q10 2Q10 3Q10 4Q10 1Q11

Net charge-offs include $643M in 1Q10 and $128M in 2Q10 on collateral dependent modified loans

1 Charge-offs do not include Countrywide purchased credit-impaired portfolio as those losses were considered in establishing the nonaccretable difference in the original purchase accounting

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Run-off Loan Portfolios

Loan balances (end of period)

($ in billions)

March 31, December 31, Increase 1Q11

2011 2010 (Decrease) Revenue less

net charge-offs

Residential mortgage $ 12.1 $ 12.4 $ (0.3) $ (0.3) 1

Home equity 35.3 36.7 (1.4) (0.7) 1

Discontinued real estate 12.7 13.1 (0.4) (0.7) 1

Direct/Indirect consumer 32.0 35.4 (3.4) (0.1)

Other consumer 1.4 1.4 — —

Total consumer 93.5 99.0 (5.5) (1.8)

Total commercial 7.3 7.6 (0.3) (0.1)

Total run-off loans $ 100.8 $ 106.6 $ (5.8) $ (1.9)

1Q11 Run-off Portfolio Highlights

• Total run-off loans were down $5.8B from 4Q10

• Includes purchased credit-impaired loans of $35.7B ($11.8B residential mortgage, $12.6B home equity, $11.3B discontinued real estate)

• Direct/Indirect consumer loans include consumer finance loans of $11.1B, bulk purchase programs of $12.3B and other loans of $8.6B

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