Supplemental Package

EX-99.3 4 dex993.htm SUPPLEMENTAL PACKAGE Supplemental Package

Exhibit 99.3

LOGO

Supplemental Information

Second 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
Year-to-Date Average Balances and Interest Rates			11,12
Debt Securities and Available-for-Sale Marketable Equity Securities			13
Quarterly Results by Business Segment			14
Year-to-Date Results by Business Segment			15
Deposits
Total Segment Results			16
Key Indicators			17
Global Card Services
Total Segment Results			18
Key Indicators			19
Consumer Real Estate Services
Total Segment Results			20
Quarterly and Year-to-Date Results			21
Key Indicators			22
Global Commercial Banking
Total Segment Results			23
Key Indicators			24
Global Banking & Markets
Total Segment Results			25
Key Indicators			26
Credit Default Swaps with Monoline Financial Guarantors			27
Investment Banking Product Rankings			28
Global Wealth & Investment Management
Total Segment Results			29
Key Indicators			30
All Other
Total Segment Results			31
Equity Investments			32
Outstanding Loans and Leases			33
Quarterly Average Loans and Leases by Business Segment			34
Commercial Credit Exposure by Industry			35
Net Credit Default Protection by Maturity Profile and Credit Exposure Debt Rating			36
Selected Emerging Markets			37
Selected European Countries			38
Nonperforming Loans, Leases and Foreclosed Properties			39
Nonperforming Loans, Leases and Foreclosed Properties Activity			40
Quarterly Net Charge-offs and Net Charge-off Ratios			41
Year-to-Date Net Charge-offs and Net Charge-off Ratios			42
Allocation of the Allowance for Credit Losses by Product Type			43

Exhibit A: Non-GAAP Reconciliations			44,45

Appendix: Selected Slides from the Second Quarter 2011 Earnings Release Presentation			46

Bank of America Corporation and Subsidiaries

Consolidated Financial Highlights

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


	Six Months Ended June 30						Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
	2011			2010			Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
Income statement
Net interest income	$	23,425		$	26,649		$	11,246		$	12,179		$	12,439		$	12,435		$	12,900
Noninterest income		16,688			34,473			1,990			14,698			9,959			14,265			16,253
Total revenue, net of interest expense		40,113			61,122			13,236			26,877			22,398			26,700			29,153
Provision for credit losses		7,069			17,910			3,255			3,814			5,129			5,396			8,105
Goodwill impairment		2,603			—			2,603			—			2,000			10,400			—
Merger and restructuring charges		361			1,029			159			202			370			421			508
All other noninterest expense ⁽¹⁾		40,175			33,999			20,094			20,081			18,494			16,395			16,745
Income tax expense (benefit)		(3,318	)		1,879			(4,049	)		731			(2,351	)		1,387			672
Net income (loss)		(6,777	)		6,305			(8,826	)		2,049			(1,244	)		(7,299	)		3,123
Preferred stock dividends		611			688			301			310			321			348			340
Net income (loss) applicable to common shareholders		(7,388	)		5,617			(9,127	)		1,739			(1,565	)		(7,647	)		2,783
Diluted earnings (loss) per common share ⁽²⁾		(0.73	)		0.55			(0.90	)		0.17			(0.16	)		(0.77	)		0.27
Average diluted common shares issued and outstanding ⁽²⁾		10,085,479			10,020,926			10,094,928			10,181,351			10,036,575			9,976,351			10,029,776
Dividends paid per common share	$	0.02		$	0.02		$	0.01		$	0.01		$	0.01		$	0.01		$	0.01

Performance ratios
Return on average assets		n/m			0.51	%		n/m			0.36	%		n/m			n/m			0.50	%
Return on average common shareholders’ equity		n/m			5.45			n/m			3.29			n/m			n/m			5.18
Return on average tangible common shareholders’ equity ⁽³⁾		n/m			9.48			n/m			5.28			n/m			n/m			9.19
Return on average tangible shareholders’ equity ⁽³⁾		n/m			9.26			n/m			5.54			n/m			n/m			8.98
At period end
Book value per share of common stock	$	20.29		$	21.45		$	20.29		$	21.15		$	20.99		$	21.17		$	21.45
Tangible book value per share of common stock ⁽³⁾		12.65			12.14			12.65			13.21			12.98			12.91			12.14
Market price per share of common stock:
Closing price	$	10.96		$	14.37		$	10.96		$	13.33		$	13.34		$	13.10		$	14.37
High closing price for the period		15.25			19.48			13.72			15.25			13.56			15.67			19.48
Low closing price for the period		10.50			14.37			10.50			13.33			10.95			12.32			14.37
Market capitalization		111,060			144,174			111,060			135,057			134,536			131,442			144,174

Number of banking centers - U.S.		5,742			5,900			5,742			5,805			5,856			5,879			5,900
Number of branded ATMs - U.S.		17,817			18,078			17,817			17,886			17,926			17,929			18,078
Full-time equivalent employees		287,839			284,628			287,839			288,062			288,471			287,293			284,628

(1)

Excludes merger and restructuring charges and goodwill impairment charge.

(2)

Due to a net loss applicable to common shareholders for the second quarter of 2011 and 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 44-45.)

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⁾


	Six Months Ended June 30							Second Quarter 2011				First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
	2011				2010			Second Quarter 2011				First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
Net interest income	$	23,890			$	27,267		$	11,493			$	12,397		$	12,709		$	12,717		$	13,197
Total revenue, net of interest expense		40,578				61,740			13,483				27,095			22,668			26,982			29,450
Net interest yield ⁽²⁾		2.58		%		2.85	%		2.50		%		2.67	%		2.69	%		2.72	%		2.77	%
Efficiency ratio		n/m				56.73			n/m				74.86			92.04			100.87			58.58



Performance ratios, excluding goodwill impairment charges⁽³⁾

	Six Months Ended June 30 2011							Second Quarter 2011							Fourth Quarter 2010			Third Quarter 2010
Per common share information
Earnings (loss)	$	(0.48	)					$	(0.65	)					$	0.04		$	0.27
Diluted earnings (loss)		(0.48	)						(0.65	)						0.04			0.27
Efficiency ratio ⁽¹⁾		n/m							n/m							83.22	%		62.33	%
Return on average assets		n/m							n/m							0.13			0.52
Return on average common shareholders’ equity		n/m							n/m							0.79			5.06
Return on average tangible common shareholders’ equity ⁽³⁾		n/m							n/m							1.27			8.67
Return on average tangible shareholders’ equity ⁽³⁾		n/m							n/m							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 44-45).

(2)

Calculation includes fees earned on overnight deposits placed with the Federal Reserve of $112 million and $198 million for the six months ended June 30, 2011 and 2010; $49 million and $63 million for the second and first quarters of 2011, and $63 million, $107 million and $106 million for the fourth, third and second quarters of 2010, respectively. For more information see Quarterly and Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis on pages 9-10 and 11-12.

(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 44-45).

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.		3

Bank of America Corporation and Subsidiaries

Consolidated Statement of Income

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


	Six Months Ended June 30						Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
	2011			2010			2011			2011			2010			2010			2010
Interest income
Loans and leases	$	23,249		$	26,362		$	11,320		$	11,929		$	12,149		$	12,485		$	12,887
Debt securities		5,557			6,033			2,675			2,882			3,029			2,605			2,917
Federal funds sold and securities borrowed or purchased under agreements to resell		1,114			905			597			517			486			441			457
Trading account assets		3,164			3,539			1,538			1,626			1,661			1,641			1,796
Other interest income		1,886			2,159			918			968			965			1,037			1,062

Total interest income		34,970			38,998			17,048			17,922			18,290			18,209			19,119


Interest expense
Deposits		1,682			2,153			843			839			894			950			1,031
Short-term borrowings		2,525			1,709			1,341			1,184			1,142			848			891
Trading account liabilities		1,254			1,375			627			627			561			635			715
Long-term debt		6,084			7,112			2,991			3,093			3,254			3,341			3,582

Total interest expense		11,545			12,349			5,802			5,743			5,851			5,774			6,219

Net interest income		23,425			26,649			11,246			12,179			12,439			12,435			12,900

Noninterest income
Card income		3,795			3,999			1,967			1,828			2,127			1,982			2,023
Service charges		4,044			5,142			2,012			2,032			2,036			2,212			2,576
Investment and brokerage services		6,110			6,019			3,009			3,101			2,879			2,724			2,994
Investment banking income		3,262			2,559			1,684			1,578			1,590			1,371			1,319
Equity investment income		2,687			3,391			1,212			1,475			1,512			357			2,766
Trading account profits		4,813			6,463			2,091			2,722			995			2,596			1,227
Mortgage banking income (loss)		(12,566	)		2,398			(13,196	)		630			(1,419	)		1,755			898
Insurance income		1,013			1,393			400			613			598			75			678
Gains on sales of debt securities		1,445			771			899			546			872			883			37
Other income (loss)		2,218			3,065			1,957			261			(1,114	)		433			1,861
Other-than-temporary impairment losses on available-for-sale debt securities:
Total other-than-temporary impairment losses		(157	)		(1,783	)		(63	)		(111	)		(612	)		(156	)		(462	)
Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income		24			1,056			18			23			495			33			336

Net impairment losses recognized in earnings on available-for-sale debt securities		(133	)		(727	)		(45	)		(88	)		(117	)		(123	)		(126	)

Total noninterest income		16,688			34,473			1,990			14,698			9,959			14,265			16,253

Total revenue, net of interest expense		40,113			61,122			13,236			26,877			22,398			26,700			29,153

Provision for credit losses		7,069			17,910			3,255			3,814			5,129			5,396			8,105

Noninterest expense
Personnel		19,339			17,947			9,171			10,168			8,800			8,402			8,789
Occupancy		2,434			2,354			1,245			1,189			1,212			1,150			1,182
Equipment		1,199			1,226			593			606			607			619			613
Marketing		1,124			982			560			564			484			497			495
Professional fees		1,412			1,161			766			646			883			651			644
Amortization of intangibles		767			885			382			385			420			426			439
Data processing		1,338			1,280			643			695			662			602			632
Telecommunications		762			689			391			371			366			361			359
Other general operating		11,800			7,475			6,343			5,457			5,060			3,687			3,592
Goodwill impairment		2,603			—			2,603			—			2,000			10,400			—
Merger and restructuring charges		361			1,029			159			202			370			421			508

Total noninterest expense		43,139			35,028			22,856			20,283			20,864			27,216			17,253

Income (loss) before income taxes		(10,095	)		8,184			(12,875	)		2,780			(3,595	)		(5,912	)		3,795
Income tax expense (benefit)		(3,318	)		1,879			(4,049	)		731			(2,351	)		1,387			672

Net income (loss)	$	(6,777	)	$	6,305		$	(8,826	)	$	2,049		$	(1,244	)	$	(7,299	)	$	3,123

Preferred stock dividends		611			688			301			310			321			348			340

Net income (loss) applicable to common shareholders	$	(7,388	)	$	5,617		$	(9,127	)	$	1,739		$	(1,565	)	$	(7,647	)	$	2,783


Per common share information
Earnings (loss)	$	(0.73	)	$	0.56		$	(0.90	)	$	0.17		$	(0.16	)	$	(0.77	)	$	0.28
Diluted earnings (loss) ⁽¹⁾		(0.73	)		0.55			(0.90	)		0.17			(0.16	)		(0.77	)		0.27
Dividends paid		0.02			0.02			0.01			0.01			0.01			0.01			0.01

Average common shares issued and outstanding		10,085,479			9,570,166			10,094,928			10,075,875			10,036,575			9,976,351			9,956,773

Average diluted common shares issued and outstanding ⁽¹⁾		10,085,479			10,020,926			10,094,928			10,181,351			10,036,575			9,976,351			10,029,776

(1)

Due to a net loss applicable to common shareholders for the second quarter of 2011 and 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)


	June 30 2011			March 31 2011			June 30 2010
Assets
Cash and cash equivalents	$	119,527		$	97,542		$	151,034
Time deposits placed and other short-term investments		20,291			23,707			20,718
Federal funds sold and securities borrowed or purchased under agreements to resell		235,181			234,056			247,667
Trading account assets		196,939			208,761			197,376
Derivative assets		66,598			65,334			87,839
Debt securities:
Available-for-sale		330,871			330,345			314,765
Held-to-maturity, at cost		181			431			435
Total debt securities		331,052			330,776			315,200
Loans and leases		941,257			932,425			956,177
Allowance for loan and lease losses		(37,312	)		(39,843	)		(45,255	)
Loans and leases, net of allowance		903,945			892,582			910,922
Premises and equipment, net		13,793			14,151			14,536
Mortgage servicing rights (includes $12,372, $15,282 and $14,745 measured at fair value)		12,642			15,560			15,041
Goodwill		71,074			73,869			85,801
Intangible assets		9,176			9,560			10,796
Loans held-for-sale		20,092			25,003			38,046
Customer and other receivables		86,550			97,318			86,466
Other assets		174,459			186,313			186,942
Total assets	$	2,261,319		$	2,274,532		$	2,368,384

Assets of consolidated VIEs included in total assets above (substantially all pledged as collateral)
Trading account assets	$	10,746		$	12,012		$	10,675
Derivative assets		2,293			2,280			2,094
Available-for-sale debt securities		251			2,104			9,493
Loans and leases		151,928			146,309			134,143
Allowance for loan and lease losses		(7,792	)		(8,335	)		(10,585	)
Loans and leases, net of allowance		144,136			137,974			123,558
Loans held-for-sale		1,561			1,605			3,371
All other assets		7,115			4,883			9,190
Total assets of consolidated VIEs	$	166,102		$	160,858		$	158,381

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


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

Bank of America Corporation and Subsidiaries

Consolidated Balance Sheet (continued)

(Dollars in millions)


	June 30 2011		March 31 2011			June 30 2010
Liabilities
Deposits in U.S. offices:
Noninterest-bearing	$	301,558	$	286,357		$	258,988
Interest-bearing		647,480		652,096			640,807
Deposits in non-U.S. offices:
Noninterest-bearing		6,555		7,894			5,791
Interest-bearing		82,815		73,828			68,881
Total deposits		1,038,408		1,020,175			974,467
Federal funds purchased and securities loaned or sold under agreements to repurchase		239,521		260,521			307,211
Trading account liabilities		74,989		88,478			89,982
Derivative liabilities		54,414		53,501			67,297
Commercial paper and other short-term borrowings		50,632		58,324			73,358
Accrued expenses and other liabilities (includes $897, $961 and $1,413 of reserve for unfunded lending commitments)		154,520		128,221			132,812
Long-term debt		426,659		434,436			490,083
Total liabilities		2,039,143		2,043,656			2,135,210
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			17,993
Common stock and additional paid-in capital, $0.01 par value; authorized - 12,800,000,000, 12,800,000,000 and 12,800,000,000 shares; issued and outstanding - 10,133,189,501, 10,131,803,417 and 10,033,016,719 shares		151,567		151,379			149,175
Retained earnings		53,254		62,483			70,497
Accumulated other comprehensive income (loss)		793		463			(4,447	)
Other		—		(11	)		(44	)
Total shareholders’ equity		222,176		230,876			233,174
Total liabilities and shareholders’ equity	$	2,261,319	$	2,274,532		$	2,368,384

Liabilities of consolidated VIEs included in total liabilities above
Commercial paper and other short-term borrowings	$	5,421	$	6,954		$	17,848
Long-term debt		64,745		65,197			85,186
All other liabilities		1,127		1,240			2,535
Total liabilities of consolidated VIEs	$	71,293	$	73,391		$	105,569

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


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

Bank of America Corporation and Subsidiaries

Capital Management

(Dollars in millions)


	Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
Risk-based capital ⁽¹⁾:
Tier 1 common	$	114,684		$	123,882		$	125,139		$	124,756		$	119,716
Tier 1 capital		153,133			162,295			163,626			164,763			159,551
Total capital		217,986			229,094			229,594			231,120			220,827
Risk-weighted assets		1,392,747			1,433,377			1,455,951			1,476,774			1,494,990
Tier 1 common equity ratio ⁽²⁾		8.23	%		8.64	%		8.60	%		8.45	%		8.01	%
Tier 1 capital ratio		11.00			11.32			11.24			11.16			10.67
Total capital ratio		15.65			15.98			15.77			15.65			14.77
Tier 1 leverage ratio		6.86			7.25			7.21			7.21			6.68
Tangible equity ratio ⁽³⁾		6.63			6.85			6.75			6.54			6.14
Tangible common equity ratio ⁽³⁾		5.87			6.10			5.99			5.74			5.35

(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 44-45).

LOGO

*	Preliminary data on risk-based capital

Outstanding Common Stock

No common shares were repurchased in the second 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)


	Six Months Ended June 30								Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter
	2011				2010				2011				2011				2010				2010				2010
Net interest income ⁽¹⁾
As reported⁽²⁾	$	23,890			$	27,267			$	11,493			$	12,397			$	12,709			$	12,717			$	13,197
Impact of market-based net interest income ⁽³⁾		(1,965	)			(2,235	)			(914	)			(1,051	)			(1,150	)			(1,045	)			(1,049	)

Core net interest income	$	21,925			$	25,032			$	10,579			$	11,346			$	11,559			$	11,672			$	12,148


Average earning assets ⁽⁴⁾
As reported	$	1,857,124			$	1,921,864			$	1,844,525			$	1,869,863			$	1,883,539			$	1,863,819			$	1,910,790
Impact of market-based earning assets ⁽³⁾		(465,617	)			(533,180	)			(461,775	)			(469,503	)			(481,629	)			(503,890	)			(530,785	)

Core average earning assets	$	1,391,507			$	1,388,684			$	1,382,750			$	1,400,360			$	1,401,910			$	1,359,929			$	1,380,005


Net interest yield contribution ^(1, 5)
As reported⁽²⁾		2.58		%		2.85		%		2.50		%		2.67		%		2.69		%		2.72		%		2.77		%
Impact of market-based activities ⁽³⁾		0.58				0.77				0.56				0.59				0.60				0.70				0.76

Core net interest yield on earning assets		3.16		%		3.62		%		3.06		%		3.26		%		3.29		%		3.42		%		3.53		%

(1)

Fully taxable-equivalent basis

(2)

Balance and calculation include fees earned on overnight deposits placed with the Federal Reserve of $112 million and $198 million for the six months ended June 30, 2011 and 2010; $49 million and $63 million for the second and first quarters of 2011, and $63 million, $107 million and $106 million for the fourth, third and second quarters of 2010, respectively.

(3)

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

(4)

For the three and six months ended June 30, 2011, $40.4 billion and $20.3 billion of non-interest earning equity securities were reclassified from trading account assets to other non-earning assets. Prior period amounts are immaterial and have not been restated.

(5)

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)


	Second Quarter 2011							First Quarter 2011							Second 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⁾	$	27,298	$	106		1.56	%	$	31,294	$	88		1.14	%	$	30,741	$	70		0.93	%
Federal funds sold and securities borrowed or purchased under agreements to resell		259,069		597		0.92			227,379		517		0.92			263,564		457		0.70
Trading account assets⁽²⁾		186,760		1,576		3.38			221,041		1,669		3.05			213,927		1,853		3.47
Debt securities ⁽³⁾		335,269		2,696		3.22			335,847		2,917		3.49			314,299		2,966		3.78
Loans and leases ⁽⁴⁾:
Residential mortgage ⁽⁵⁾		265,420		2,763		4.16			262,049		2,881		4.40			247,715		2,982		4.82
Home equity		131,786		1,261		3.83			136,089		1,335		3.96			148,219		1,537		4.15
Discontinued real estate		15,997		129		3.22			12,899		110		3.42			13,972		134		3.84
U.S. credit card		106,164		2,718		10.27			109,941		2,837		10.47			118,738		3,121		10.54
Non-U.S. credit card		27,259		760		11.18			27,633		779		11.43			27,706		854		12.37
Direct/Indirect consumer⁽⁶⁾		89,403		945		4.24			90,097		993		4.47			98,549		1,233		5.02
Other consumer ⁽⁷⁾		2,745		47		6.87			2,753		45		6.58			2,958		46		6.32

Total consumer		638,774		8,623		5.41			641,461		8,980		5.65			657,857		9,907		6.03

U.S. commercial		190,479		1,827		3.85			191,353		1,926		4.08			195,144		2,005		4.12
Commercial real estate ⁽⁸⁾		45,762		382		3.35			48,359		437		3.66			64,218		541		3.38
Commercial lease financing		21,284		235		4.41			21,634		322		5.95			21,271		261		4.90
Non-U.S. commercial		42,214		339		3.22			36,159		299		3.35			28,564		256		3.59

Total commercial		299,739		2,783		3.72			297,505		2,984		4.06			309,197		3,063		3.97

Total loans and leases		938,513		11,406		4.87			938,966		11,964		5.14			967,054		12,970		5.38

Other earning assets		97,616		866		3.56			115,336		922		3.24			121,205		994		3.29

Total earning assets		1,844,525		17,247		3.75			1,869,863		18,077		3.92			1,910,790		19,310		4.05

Cash and cash equivalents ⁽¹⁾		115,956		49					138,241		63					209,686		106
Other assets, less allowance for loan and lease losses⁽²⁾		378,629							330,434							373,956

Total assets	$	2,339,110						$	2,338,538						$	2,494,432

(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)

For the second quarter of 2011, $40.4 billion of non-interest earning equity securities were reclassified from trading account assets to other non-earning assets. Prior period amounts are immaterial and have not been restated.

(3)

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.

(4)

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.

(5)

Includes non-U.S. residential mortgages of $94 million and $92 million in the second and first quarters of 2011, and $506 million in the second quarter of 2010.

(6)

Includes non-U.S. consumer loans of $8.7 billion and $8.2 billion in the second and first quarters of 2011, and $7.7 billion in the second quarter of 2010.

(7)

Includes consumer finance loans of $1.8 billion and $1.9 billion in the second and first quarters of 2011, and $2.1 billion in the second quarter of 2010; other non-U.S. consumer loans of $840 million and $777 million in the second and first quarters of 2011, and $679 million in the second quarter of 2010; and consumer overdrafts of $79 million and $76 million in the second and first quarters of 2011, and $155 million in the second quarter of 2010.

(8)

Includes U.S. commercial real estate loans of $43.4 billion and $45.7 billion in the second and first quarters of 2011, and $61.6 billion in the second quarter of 2010, and non-U.S. commercial real estate loans of $2.4 billion and $2.7 billion in the second and first quarters of 2011, and $2.6 billion in the second quarter of 2010.

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


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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Second Quarter 2011							First Quarter 2011							Second 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	$	41,668	$	31		0.30	%	$	38,905	$	32		0.34	%	$	37,290	$	43		0.46	%
NOW and money market deposit accounts		478,690		304		0.25			475,954		316		0.27			442,262		372		0.34
Consumer CDs and IRAs		113,728		281		0.99			118,306		300		1.03			147,425		441		1.20
Negotiable CDs, public funds and other time deposits		13,842		42		1.22			13,995		39		1.11			17,355		59		1.36

Total U.S. interest-bearing deposits		647,928		658		0.41			647,160		687		0.43			644,332		915		0.57

Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries		19,234		37		0.77			21,534		38		0.72			19,751		36		0.72
Governments and official institutions		2,131		2		0.38			2,307		2		0.35			4,214		3		0.28
Time, savings and other		64,889		146		0.90			60,432		112		0.76			52,195		77		0.60

Total non-U.S. interest-bearing deposits		86,254		185		0.86			84,273		152		0.73			76,160		116		0.61

Total interest-bearing deposits		734,182		843		0.46			731,433		839		0.46			720,492		1,031		0.57

Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings		338,692		1,342		1.59			371,573		1,184		1.29			454,051		891		0.79
Trading account liabilities		96,108		627		2.62			83,914		627		3.03			100,021		715		2.87
Long-term debt		435,144		2,991		2.75			440,511		3,093		2.84			497,469		3,582		2.88

Total interest-bearing liabilities		1,604,126		5,803		1.45			1,627,431		5,743		1.43			1,772,033		6,219		1.41

Noninterest-bearing sources:
Noninterest-bearing deposits		301,762							291,707							271,123
Other liabilities		198,155							188,631							217,815
Shareholders’ equity		235,067							230,769							233,461

Total liabilities and shareholders’ equity	$	2,339,110						$	2,338,538						$	2,494,432

Net interest spread						2.30	%						2.49	%						2.64	%
Impact of noninterest-bearing sources						0.19							0.17							0.10

Net interest income/yield on earning assets ⁽¹⁾			$	11,444		2.49	%			$	12,334		2.66	%			$	13,091		2.74	%

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

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

(Dollars in millions)


	Six Months Ended June 30
	2011							2010
	Average Balance		Interest Income/ Expense		Yield/ Rate			Average Balance		Interest Income/ Expense		Yield/ Rate
Earning assets
Time deposits placed and other short-term investments ⁽¹⁾	$	29,285	$	194		1.34	%	$	29,179	$	130		0.90	%
Federal funds sold and securities borrowed or purchased under agreements to resell		243,311		1,114		0.92			264,810		905		0.69
Trading account assets ⁽²⁾		203,806		3,245		3.21			214,233		3,648		3.42
Debt securities ⁽³⁾		335,556		5,613		3.35			312,727		6,139		3.93
Loans and leases ⁽⁴⁾:
Residential mortgage⁽⁵⁾		263,744		5,644		4.28			245,785		6,082		4.95
Home equity		133,926		2,596		3.90			150,365		3,123		4.18
Discontinued real estate		14,457		239		3.31			14,201		287		4.05
U.S. credit card		108,042		5,555		10.37			122,027		6,491		10.73
Non-U.S. credit card		27,445		1,539		11.31			28,783		1,760		12.33
Direct/Indirect consumer⁽⁶⁾		89,748		1,938		4.36			99,728		2,535		5.13
Other consumer ⁽⁷⁾		2,748		92		6.75			2,981		94		6.34

Total consumer		640,110		17,603		5.53			663,870		20,372		6.17

U.S. commercial		190,914		3,753		3.96			198,882		3,975		4.03
Commercial real estate ⁽⁸⁾		47,053		819		3.51			66,361		1,116		3.39
Commercial lease financing		21,458		557		5.18			21,472		565		5.26
Non-U.S. commercial		39,203		638		3.28			28,682		520		3.65

Total commercial		298,628		5,767		3.89			315,397		6,176		3.94

Total loans and leases		938,738		23,370		5.01			979,267		26,548		5.45

Other earning assets		106,428		1,788		3.39			121,648		2,047		3.39

Total earning assets		1,857,124		35,324		3.84			1,921,864		39,417		4.14

Cash and cash equivalents ⁽¹⁾		127,037		112					203,334		198
Other assets, less allowance for loan and lease losses ⁽²⁾		354,665							380,261

Total assets	$	2,338,826						$	2,505,459

(1)

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

(2)

For the six months ended June 30, 2011, $20.3 billion of non-interest earning equity securities were reclassified from trading account assets to other non-earning assets. Prior period amounts are immaterial and have not been restated.

(3)

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

(4)

(5)

Includes non-U.S. residential mortgages of $93 million and $522 million for the six months ended June 30, 2011 and 2010.

(6)

Includes non-U.S. consumer loans of $8.4 billion and $7.9 billion for the six months ended June 30, 2011 and 2010.

(7)

Includes consumer finance loans of $1.9 billion and $2.2 billion, other non-U.S. consumer loans of $809 million and $671 million, and consumer overdrafts of $78 million and $144 million for the six months ended June 30, 2011 and 2010.

(8)

Includes U.S. commercial real estate loans of $44.5 billion and $63.6 billion, and non-U.S. commercial real estate loans of $2.5 billion and $2.8 billion for the six months ended June 30, 2011 and 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.		11

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Six Months Ended June 30
	2011							2010
	Average Balance		Interest Income/ Expense		Yield/ Rate			Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-bearing liabilities
U.S. interest-bearing deposits:
Savings	$	40,294	$	63		0.32	%	$	36,214	$	86		0.48	%
NOW and money market deposit accounts		477,330		620		0.26			429,258		713		0.33
Consumer CDs and IRAs		116,004		581		1.01			156,755		1,008		1.30
Negotiable CDs, public funds and other time deposits		13,918		81		1.17			18,552		122		1.33

Total U.S. interest-bearing deposits		647,546		1,345		0.42			640,779		1,929		0.61

Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries		20,378		75		0.74			19,091		68		0.72
Governments and official institutions		2,219		4		0.36			4,916		6		0.25
Time, savings and other		62,673		258		0.83			53,534		150		0.57

Total non-U.S. interest-bearing deposits		85,270		337		0.80			77,541		224		0.58

Total interest-bearing deposits		732,816		1,682		0.46			718,320		2,153		0.60

Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings		355,042		2,526		1.43			481,041		1,709		0.72
Trading account liabilities		90,044		1,254		2.81			95,105		1,374		2.91
Long-term debt		437,812		6,084		2.80			505,507		7,112		2.82

Total interest-bearing liabilities		1,615,714		11,546		1.44			1,799,973		12,348		1.38

Noninterest-bearing sources:
Noninterest-bearing deposits		296,762							268,024
Other liabilities		193,420							205,767
Shareholders’ equity		232,930							231,695

Total liabilities and shareholders’ equity	$	2,338,826						$	2,505,459

Net interest spread						2.40	%						2.76	%
Impact of noninterest-bearing sources						0.17							0.06

Net interest income/yield on earning assets ⁽¹⁾			$	23,778		2.57	%			$	27,069		2.82	%

For footnotes see page 11.

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


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

Bank of America Corporation and Subsidiaries

Debt Securities and Available-for-Sale Marketable Equity Securities

(Dollars in millions)


	June 30, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale debt securities
U.S. Treasury and agency securities	$	49,874	$	684	$	(1,289	)	$	49,269
Mortgage-backed securities:
Agency		180,151		3,128		(1,663	)		181,616
Agency collateralized mortgage obligations		48,212		930		(31	)		49,111
Non-agency residential		19,564		568		(557	)		19,575
Non-agency commercial		6,018		702		(2	)		6,718
Non-U.S. securities		4,314		62		(16	)		4,360
Corporate bonds		4,388		154		(4	)		4,538
Other taxable securities ⁽¹⁾		12,010		79		(66	)		12,023

Total taxable securities	$	324,531	$	6,307	$	(3,628	)	$	327,210
Tax-exempt securities		3,808		18		(165	)		3,661

Total available-for-sale debt securities	$	328,339	$	6,325	$	(3,793	)	$	330,871

Held-to-maturity debt securities		181		—		—			181

Total debt securities	$	328,520	$	6,325	$	(3,793	)	$	331,052

Available-for-sale marketable equity securities ⁽²⁾	$	8,536	$	10,445	$	(19	)	$	18,962


	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

(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)


	Second Quarter 2011
	Total Corporation			Deposits		Global Card Services		Consumer Real Estate Services			Global Commercial Banking			Global Banking & Markets			GWIM		All Other
	Total Corporation			Deposits		Global Card Services		Consumer Real Estate Services			Global Commercial Banking			Global Banking & Markets			GWIM		All Other
Net interest income ⁽¹⁾	$	11,493		$	2,281	$	3,611	$	579		$	1,827		$	1,791		$	1,571	$	(167	)
Noninterest income (loss)		1,990			1,020		1,925		(11,894	)		983			5,005			2,919		2,032

Total revenue, net of interest expense		13,483			3,301		5,536		(11,315	)		2,810			6,796			4,490		1,865

Provision for credit losses		3,255			31		481		1,507			(417	)		(82	)		72		1,663
Noninterest expense		22,856			2,599		1,882		8,647			1,068			4,713			3,631		316

Income (loss) before income taxes		(12,628	)		671		3,173		(21,469	)		2,159			2,165			787		(114	)
Income tax expense (benefit) ⁽¹⁾		(3,802	)		241		1,138		(6,949	)		778			607			281		102

Net income (loss)	$	(8,826	)	$	430	$	2,035	$	(14,520	)	$	1,381		$	1,558		$	506	$	(216	)


Average
Total loans and leases	$	938,513			n/m	$	156,788	$	121,683		$	189,346		$	109,473		$	102,200	$	258,397
Total assets ⁽²⁾		2,339,110		$	451,554		161,776		198,030			320,428			750,908			289,050		167,364
Total deposits		1,035,944			426,684		n/m		n/m			166,481			118,133			255,219		46,684

Period end
Total loans and leases	$	941,257			n/m	$	153,280	$	121,553		$	189,434		$	114,165		$	102,878	$	259,285
Total assets ⁽²⁾		2,261,319		$	449,123		161,756		185,398			280,289			691,249			284,294		209,210
Total deposits		1,038,408			424,579		n/m		n/m			170,156			123,618			255,580		42,355
	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	$	3,747	$	896		$	1,850		$	2,037		$	1,569	$	93
Noninterest income		14,698			984		1,940		1,167			801			5,849			2,923		1,034

Total revenue, net of interest expense		27,095			3,189		5,687		2,063			2,651			7,886			4,492		1,127

Provision for credit losses		3,814			33		961		1,098			79			(202	)		46		1,799
Noninterest expense		20,283			2,592		1,969		4,801			1,106			4,722			3,599		1,494

Income (loss) before income taxes		2,998			564		2,757		(3,836	)		1,466			3,366			847		(2,166	)
Income tax expense (benefit) ⁽¹⁾		949			209		1,022		(1,421	)		543			1,232			314		(950	)

Net income (loss)	$	2,049		$	355	$	1,735	$	(2,415	)	$	923		$	2,134		$	533	$	(1,216	)


Average
Total loans and leases	$	938,966			n/m	$	162,425	$	120,560		$	192,437		$	103,704		$	100,851	$	258,350
Total assets ⁽²⁾		2,338,538		$	443,461		165,768		209,329			312,570			710,684			297,335		199,391
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	$	158,444	$	118,749		$	190,749		$	105,651		$	101,286	$	256,931
Total assets ⁽²⁾		2,274,532		$	456,248		164,084		204,485			309,930			698,458			285,472		155,855
Total deposits		1,020,175			431,022		n/m		n/m			161,584			115,212			256,526		34,818
	Second 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⁾	$	13,197		$	2,144	$	4,442	$	992		$	2,097		$	2,002		$	1,443	$	77
Noninterest income		16,253			1,551		2,506		1,712			786			3,902			2,746		3,050

Total revenue, net of interest expense		29,450			3,695		6,948		2,704			2,883			5,904			4,189		3,127

Provision for credit losses		8,105			61		3,796		2,390			623			(133	)		122		1,246
Noninterest expense		17,253			2,572		1,852		2,738			974			4,735			3,269		1,113

Income (loss) before income taxes		4,092			1,062		1,300		(2,424	)		1,286			1,302			798		768
Income tax expense (benefit) ⁽¹⁾		969			388		474		(882	)		471			404			469		(355	)

Net income (loss)	$	3,123		$	674	$	826	$	(1,542	)	$	815		$	898		$	329	$	1,123


Average
Total loans and leases	$	967,054			n/m	$	177,076	$	130,662		$	206,603		$	95,839		$	98,811	$	257,322
Total assets ⁽²⁾		2,494,432		$	443,520		187,138		227,595			305,788			779,060			259,801		291,530
Total deposits		991,615			418,480		n/m		n/m			145,499			112,565			226,276		64,709

Period end
Total loans and leases	$	956,177			n/m	$	172,531	$	129,797		$	203,659		$	95,756		$	99,157	$	254,516
Total assets ⁽²⁾		2,368,384		$	439,770		184,213		223,998			306,234			718,563			252,507		243,099
Total deposits		974,467			414,470		n/m		n/m			147,414			105,678			226,572		57,424

(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

Year-to-Date Results by Business Segment

(Dollars in millions)


	Six Months Ended June 30, 2011
	Total Corporation			Deposits		Global Card Services		Consumer Real Estate Services			Global Commercial Banking			Global Banking & Markets			GWIM		All Other
Net interest income ⁽¹⁾	$	23,890		$	4,486	$	7,358	$	1,475		$	3,677		$	3,828		$	3,140	$	(74	)
Noninterest income (loss)		16,688			2,004		3,865		(10,727	)		1,784			10,854			5,842		3,066

Total revenue, net of interest expense		40,578			6,490		11,223		(9,252	)		5,461			14,682			8,982		2,992

Provision for credit losses		7,069			64		1,442		2,605			(338	)		(284	)		118		3,462
Noninterest expense		43,139			5,191		3,851		13,448			2,174			9,435			7,230		1,810

Income (loss) before income taxes		(9,630	)		1,235		5,930		(25,305	)		3,625			5,531			1,634		(2,280	)
Income tax expense (benefit) ⁽¹⁾		(2,853	)		450		2,160		(8,370	)		1,321			1,839			595		(848	)

Net income (loss)	$	(6,777	)	$	785	$	3,770	$	(16,935	)	$	2,304		$	3,692		$	1,039	$	(1,432	)


Average
Total loans and leases	$	938,738			n/m	$	159,591	$	121,125		$	190,883		$	106,604		$	101,529	$	258,374
Total assets ⁽²⁾		2,338,826		$	447,530		163,761		203,648			316,521			730,907			293,170		n/m
Total deposits		1,029,578			422,514		n/m		n/m			163,366			115,097			256,859		47,642

Period end
Total loans and leases	$	941,257			n/m	$	153,280	$	121,553		$	189,434		$	114,165		$	102,878	$	259,285
Total assets ⁽²⁾		2,261,319		$	449,123		161,756		185,398			280,289			691,249			284,294		n/m
Total deposits		1,038,408			424,579		n/m		n/m			170,156			123,618			255,580		42,355

	Six Months Ended June 30, 2010
	Total Corporation			Deposits		Global Card Services		Consumer Real Estate Services			Global Commercial Banking			Global Banking & Markets			GWIM		All Other
Net interest income ⁽¹⁾	$	27,267		$	4,319	$	9,262	$	2,199		$	4,290		$	4,172		$	2,907	$	118
Noninterest income		34,473			3,094		4,576		4,038			1,685			11,425			5,323		4,332

Total revenue, net of interest expense		61,740			7,413		13,838		6,237			5,975			15,597			8,230		4,450

Provision for credit losses		17,910			98		7,331		5,990			1,559			103			363		2,466
Noninterest expense		35,028			5,139		3,664		5,985			2,005			9,024			6,368		2,843

Income (loss) before income taxes		8,802			2,176		2,843		(5,738	)		2,411			6,470			1,499		(859	)
Income tax expense (benefit) ⁽¹⁾		2,497			804		1,049		(2,119	)		891			2,333			731		(1,192	)

Net income (loss)	$	6,305		$	1,372	$	1,794	$	(3,619	)	$	1,520		$	4,137		$	768	$	333


Average
Total loans and leases	$	979,267			n/m	$	182,909	$	132,195		$	210,450		$	97,427		$	98,826	$	256,742
Total assets ⁽²⁾		2,505,459		$	442,691		191,913		230,076			301,925			781,949			256,510		n/m
Total deposits		986,345			417,665		n/m		n/m			144,572			108,124			223,956		67,770

Period end
Total loans and leases	$	956,177			n/m	$	172,531	$	129,797		$	203,659		$	95,756		$	99,157	$	254,516
Total assets ⁽²⁾		2,368,384		$	439,770		184,213		223,998			306,234			718,563			252,507		n/m
Total deposits		974,467			414,470		n/m		n/m			147,414			105,678			226,572		57,424

(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 the current period presentation.


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

Bank of America Corporation and Subsidiaries

Deposits Segment Results

(Dollars in millions)


	Six Months Ended June 30						Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010				Third Quarter 2010			Second Quarter 2010
	2011			2010			Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010				Third Quarter 2010			Second Quarter 2010
Net interest income ⁽¹⁾	$	4,486		$	4,319		$	2,281		$	2,205		$	2,006			$	1,954		$	2,144
Noninterest income:
Service charges		1,888			2,973			965			923			947				1,138			1,494
All other income		116			121			55			61			50				54			57

Total noninterest income		2,004			3,094			1,020			984			997				1,192			1,551

Total revenue, net of interest expense		6,490			7,413			3,301			3,189			3,003				3,146			3,695

Provision for credit losses		64			98			31			33			41				62			61
Noninterest expense		5,191			5,139			2,599			2,592			3,262				2,762			2,572

Income (loss) before income taxes		1,235			2,176			671			564			(300	)			322			1,062
Income tax expense (benefit) ⁽¹⁾		450			804			241			209			(105	)			116			388

Net income (loss)	$	785		$	1,372		$	430		$	355		$	(195	)		$	206		$	674


Net interest yield ⁽¹⁾		2.15	%		2.09	%		2.15	%		2.14	%		1.93		%		1.89	%		2.06	%
Return on average equity		6.70			11.45			7.30			6.09			n/m				3.34			11.16
Return on average economic capital ⁽²⁾		27.93			44.82			30.41			25.43			n/m				12.85			43.52
Efficiency ratio ⁽¹⁾		79.99			69.32			78.75			81.28			108.61				87.81			69.59

Balance sheet

Average
Total earning assets ⁽³⁾	$	421,313		$	416,185		$	425,363		$	417,218		$	411,765			$	410,330		$	417,132
Total assets ⁽³⁾		447,530			442,691			451,554			443,461			438,346				436,479			443,520
Total deposits		422,514			417,665			426,684			418,298			413,150				411,117			418,480
Allocated equity		23,627			24,179			23,612			23,641			24,128				24,402			24,226
Economic capital ⁽⁴⁾		5,672			6,202			5,662			5,683			6,161				6,424			6,239

Period end
Total earning assets ⁽³⁾	$	422,646		$	413,648		$	422,646		$	429,956		$	414,215			$	408,734		$	413,648
Total assets ⁽³⁾		449,123			439,770			449,123			456,248			440,954				434,854			439,770
Total deposits		424,579			414,470			424,579			431,022			415,189				409,365			414,470

(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.

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.		16

Bank of America Corporation and Subsidiaries

Deposits Key Indicators

(Dollars in millions, except as noted)


	Six Months Ended June 30						Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
	2011			2010			Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
Average deposit balances
Checking	$	163,576		$	149,385		$	166,666		$	160,452		$	154,333		$	150,117		$	152,130
Savings		37,962			34,412			39,209			36,701			35,120			35,135			35,467
MMS		127,251			119,489			128,546			125,941			124,446			122,996			122,123
CDs and IRAs		90,425			111,218			88,912			91,954			95,860			99,702			105,592
Non-U.S. and other		3,300			3,161			3,351			3,250			3,391			3,167			3,168

Total average deposit balances	$	422,514		$	417,665		$	426,684		$	418,298		$	413,150		$	411,117		$	418,480


Deposit spreads (excludes noninterest costs)
Checking		3.43	%		3.82	%		3.36	%		3.50	%		3.60	%		3.76	%		3.81	%
Savings		3.37			3.72			3.32			3.42			3.51			3.63			3.70
MMS		1.50			0.81			1.46			1.55			1.55			1.53			0.84
CDs and IRAs		0.35			0.17			0.36			0.35			0.32			0.28			0.22
Non-U.S. and other		3.90			4.37			3.83			3.97			4.10			4.24			4.34
Total deposit spreads		2.18			1.96			2.16			2.20			2.20			2.23			2.02

Cost per dollar deposit ⁽¹⁾		2.52	%		2.48	%		2.44	%		2.60	%		2.65	%		2.67	%		2.46	%

Client brokerage assets⁽²⁾	$	69,000		$	51,102		$	69,000		$	66,703		$	63,597		$	59,984		$	51,102

Online banking (end of period)
Active accounts (units in thousands)		29,660			29,195			29,660			30,065			29,345			29,313			29,195
Active billpay accounts (units in thousands)		15,356			14,902			15,356			15,345			14,986			14,941			14,902
Online Only (units in thousands)		14,304			14,293			14,304			14,720			14,359			14,372			14,293

(1)

Cost per dollar deposit represents annualized noninterest expense, excluding one-time expenses, as a percentage of average deposits.

(2)

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.		17

Bank of America Corporation and Subsidiaries

Global Card Services Segment Results

(Dollars in millions)


	Six Months Ended June 30						Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
	2011			2010			Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
Net interest income ⁽¹⁾	$	7,358		$	9,262		$	3,611		$	3,747		$	4,206		$	4,364		$	4,442
Noninterest income:
Card income		3,562			3,784			1,833			1,729			2,000			1,879			1,901
All other income (loss)		303			792			92			211			125			(403	)		605

Total noninterest income		3,865			4,576			1,925			1,940			2,125			1,476			2,506

Total revenue, net of interest expense		11,223			13,838			5,536			5,687			6,331			5,840			6,948

Provision for credit losses		1,442			7,331			481			961			2,144			3,177			3,796
Goodwill impairment		—			—			—			—			—			10,400			—
All other noninterest expense		3,851			3,664			1,882			1,969			1,807			1,750			1,852

Income (loss) before income taxes		5,930			2,843			3,173			2,757			2,380			(9,487	)		1,300
Income tax expense ⁽¹⁾		2,160			1,049			1,138			1,022			882			334			474

Net income (loss)	$	3,770		$	1,794		$	2,035		$	1,735		$	1,498		$	(9,821	)	$	826


Net interest yield ⁽¹⁾		9.19	%		10.13	%		9.12	%		9.26	%		9.92	%		10.07	%		9.97	%
Return on average equity		29.73			8.61			32.66			26.89			21.51			n/m			8.14
Return on average economic capital ⁽²⁾		59.01			19.74			66.26			52.32			40.33			15.19			19.40
Efficiency ratio ⁽¹⁾		34.31			26.49			33.99			34.62			28.54			n/m			26.68
Efficiency ratio, excluding goodwill impairment charge ⁽¹⁾		34.31			26.49			33.99			34.62			28.54			29.97			26.68

Balance sheet

Average
Total loans and leases	$	159,591		$	182,909		$	156,788		$	162,425		$	166,683		$	170,706		$	177,076
Total earning assets		161,462			184,326			158,861			164,093			168,173			171,999			178,646
Total assets		163,761			191,913			161,776			165,768			168,273			178,255			187,138
Allocated equity		25,573			41,994			24,982			26,171			27,626			35,391			40,677
Economic capital ⁽³⁾		12,915			18,767			12,341			13,496			14,916			15,643			17,501

Period end
Total loans and leases	$	153,280		$	172,531		$	153,280		$	158,444		$	166,899		$	168,366		$	172,531
Total earning assets		156,058			174,278			156,058			160,529			168,706			170,037			174,278
Total assets		161,756			184,213			161,756			164,084			170,311			170,317			184,213

(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.

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.		18

Bank of America Corporation and Subsidiaries

Global Card Services Key Indicators

(Dollars in millions)


	Six Months Ended June 30						Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
	2011			2010			Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
Credit Card Data ⁽¹⁾

Loans
Average credit card outstandings	$	135,487		$	150,810		$	133,423		$	137,574		$	140,130		$	142,298		$	146,444
Ending credit card outstandings		130,696			143,130			130,696			134,342			141,250			140,871			143,130

Credit quality
Net charge-offs	$	5,036		$	9,053		$	2,360		$	2,676		$	2,911		$	3,270		$	4,459
		7.50	%		12.11	%		7.09	%		7.89	%		8.24	%		9.12	%		12.21	%
30+ delinquency	$	5,478		$	8,256		$	5,478		$	6,478		$	7,268		$	7,643		$	8,256
		4.19	%		5.77	%		4.19	%		4.82	%		5.15	%		5.43	%		5.77	%
90+ delinquency	$	3,020		$	4,542		$	3,020		$	3,570		$	3,919		$	4,007		$	4,542
		2.31	%		3.17	%		2.31	%		2.65	%		2.77	%		2.84	%		3.17	%

Other Global Card Services Key Indicators

Credit card data
Gross interest yield		10.57	%		11.04	%		10.47	%		10.67	%		10.92	%		11.13	%		10.89	%
Risk adjusted margin		5.41			1.58			5.87			4.97			5.40			3.28			1.33
New account growth (in thousands)		1,859			1,403			941			918			790			710			664
Purchase volumes	$	106,683		$	102,600		$	56,187		$	50,496		$	56,458		$	54,257		$	53,924

Debit card data
Debit purchase volumes	$	124,045		$	115,203		$	64,049		$	59,996		$	60,866		$	58,011		$	59,136

(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.		19

Bank of America Corporation and Subsidiaries

Consumer Real Estate Services Segment Results

(Dollars in millions; except as noted)


	Six Months Ended June 30								Second Quarter 2011				First Quarter 2011				Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010
	2011				2010				Second Quarter 2011				First Quarter 2011				Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010
Net interest income ⁽¹⁾	$	1,475			$	2,199			$	579			$	896			$	1,124			$	1,339			$	992
Noninterest income:
Mortgage banking income (loss)		(12,323	)			2,661				(13,018	)			695				(1,254	)			1,757				1,020
Insurance income		730				1,051				299				431				484				527				513
All other income (loss)		866				326				825				41				126				(12	)			179

Total noninterest income (loss)		(10,727	)			4,038				(11,894	)			1,167				(644	)			2,272				1,712

Total revenue, net of interest expense		(9,252	)			6,237				(11,315	)			2,063				480				3,611				2,704

Provision for credit losses		2,605				5,990				1,507				1,098				1,198				1,302				2,390
Goodwill impairment		2,603				—				2,603				—				2,000				—				—
All other noninterest expense		10,845				5,985				6,044				4,801				3,980				2,924				2,738

Loss before income taxes		(25,305	)			(5,738	)			(21,469	)			(3,836	)			(6,698	)			(615	)			(2,424	)
Income tax benefit ⁽¹⁾		(8,370	)			(2,119	)			(6,949	)			(1,421	)			(1,761	)			(222	)			(882	)

Net loss	$	(16,935	)		$	(3,619	)		$	(14,520	)		$	(2,415	)		$	(4,937	)		$	(393	)		$	(1,542	)


Net interest yield ⁽¹⁾		1.80		%		2.36		%		1.46		%		2.11		%		2.48		%		2.87		%		2.13		%
Efficiency ratio ⁽¹⁾		n/m				95.96				n/m				n/m				n/m				80.97				101.27

Balance sheet

Average
Total loans and leases	$	121,125			$	132,195			$	121,683			$	120,560			$	124,933			$	127,712			$	130,662
Total earning assets		165,469				188,222				158,674				172,339				180,030				184,994				186,873
Total assets		203,648				230,076				198,030				209,329				218,085				221,909				227,595
Allocated equity		17,933				26,641				17,139				18,736				24,310				26,493				26,174
Economic capital ⁽²⁾		15,211				21,837				14,437				15,994				19,511				21,692				21,371

Period end
Total loans and leases	$	121,553			$	129,797			$	121,553			$	118,749			$	122,933			$	127,700			$	129,797
Total earning assets		149,908				186,819				149,908				166,265				172,082				178,068				186,819
Total assets		185,398				223,998				185,398				204,485				212,413				214,498				223,998

Period end (in billions)
Mortgage servicing portfolio⁽³⁾	$	1,996.7			$	2,127.6			$	1,996.7			$	2,028.0			$	2,056.8			$	2,079.5			$	2,127.6

(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.		20

Bank of America Corporation and Subsidiaries

Consumer Real Estate Services Results ⁽¹⁾

(Dollars in millions)


	Six Months Ended June 30, 2011
	Total Consumer Real Estate Services			Home Loans		Legacy Asset Servicing			Other
Net interest income ⁽²⁾	$	1,475		$	1,056	$	460		$	(41	)
Noninterest income:
Mortgage banking income (loss)		(12,323	)		1,696		(13,149	)		(870	)
Insurance income		730			730		—			—
All other income		866			822		44			—

Total noninterest income (loss)		(10,727	)		3,248		(13,105	)		(870	)

Total revenue, net of interest expense		(9,252	)		4,304		(12,645	)		(911	)

Provision for credit losses		2,605			121		2,484			—
Goodwill impairment		2,603			—		—			2,603
Noninterest expense		10,845			3,221		7,624			—

Income (loss) before income taxes		(25,305	)		962		(22,753	)		(3,514	)
Income tax expense (benefit) ⁽²⁾		(8,370	)		354		(8,388	)		(336	)

Net income (loss)	$	(16,935	)	$	608	$	(14,365	)	$	(3,178	)


Balance sheet

Average
Total loans and leases	$	121,125		$	55,632	$	65,493		$	—
Total earning assets		165,469			75,695		67,565			22,209
Total assets		203,648			77,052		83,531			43,065
Allocated equity		17,933			n/a		n/a			n/a
Economic capital⁽³⁾		15,211			n/a		n/a			n/a

Period end
Total loans and leases	$	121,553		$	55,454	$	66,099		$	—
Total earning assets		149,908			69,822		68,114			11,972
Total assets		185,398			71,723		83,412			30,263

	Three Months Ended June 30, 2011
	Total Consumer Real Estate Services			Home Loans		Legacy Asset Servicing			Other
Net interest income ⁽²⁾	$	579		$	481	$	129		$	(31	)
Noninterest income:
Mortgage banking income (loss)		(13,018	)		938		(13,083	)		(873	)
Insurance income		299			299		—			—
All other income		825			795		30			—

Total noninterest income (loss)		(11,894	)		2,032		(13,053	)		(873	)

Total revenue, net of interest expense		(11,315	)		2,513		(12,924	)		(904	)

Provision for credit losses		1,507			121		1,386			—
Goodwill impairment		2,603			—		—			2,603
Noninterest expense		6,044			1,553		4,491			—

Income (loss) before income taxes		(21,469	)		839		(18,801	)		(3,507	)
Income tax expense (benefit) ⁽²⁾		(6,949	)		308		(6,924	)		(333	)

Net income (loss)	$	(14,520	)	$	531	$	(11,877	)	$	(3,174	)


Balance sheet

Average
Total loans and leases	$	121,683		$	55,267	$	66,416		$	—
Total earning assets		158,674			71,876		68,444			18,354
Total assets		198,030			73,377		84,616			40,037
Allocated equity		17,139			n/a		n/a			n/a
Economic capital⁽³⁾		14,437			n/a		n/a			n/a

Period end
Total loans and leases	$	121,553		$	55,454	$	66,099		$	—
Total earning assets		149,908			69,822		68,114			11,972
Total assets		185,398			71,723		83,411			30,264

	Three Months Ended March 31, 2011
	Total Consumer Real Estate Services			Home Loans		Legacy Asset Servicing			Other
Net interest income ⁽²⁾	$	896		$	575	$	331		$	(10	)
Noninterest income:
Mortgage banking income (loss)		695			758		(66	)		3
Insurance income		431			431		—			—
All other income		41			27		14			—

Total noninterest income (loss)		1,167			1,216		(52	)		3

Total revenue, net of interest expense		2,063			1,791		279			(7	)

Provision for credit losses		1,098			—		1,098			—
Noninterest expense		4,801			1,668		3,133			—

Income (loss) before income taxes		(3,836	)		123		(3,952	)		(7	)
Income tax expense (benefit) ⁽²⁾		(1,421	)		46		(1,464	)		(3	)

Net income (loss)	$	(2,415	)	$	77	$	(2,488	)	$	(4	)


Balance sheet

Average
Total loans and leases	$	120,560		$	55,990	$	64,570		$	—
Total earning assets		172,339			79,469		66,763			26,107
Total assets		209,329			80,686		82,517			46,126
Allocated equity		18,736			n/a		n/a			n/a
Economic capital⁽³⁾		15,994			n/a		n/a			n/a

Period end
Total loans and leases	$	118,749		$	55,608	$	63,141		$	—
Total earning assets		166,265			74,047		65,228			26,990
Total assets		204,485			74,783		80,303			49,399

(1)

Consumer Real Estate Services includes Home Loans 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/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.		21

Bank of America Corporation and Subsidiaries

Consumer Real Estate Services Key Indicators

(Dollars in millions, except as noted)


	Six Months Ended June 30								Second Quarter 2011				First Quarter 2011				Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010
	2011				2010				Second Quarter 2011				First Quarter 2011				Fourth Quarter 2010				Third Quarter 2010				Second Quarter 2010
Mortgage servicing rights at fair value rollforward:
Balance, beginning of period	$	14,900			$	19,465			$	15,282			$	14,900			$	12,251			$	14,745			$	18,842
Net additions		1,017				2,014				176				841				757				745				882
Impact of customer payments		(1,345	)			(2,037	)			(639	)			(706	)			(799	)			(923	)			(981	)
Other changes in mortgage servicing rights fair value ⁽¹⁾		(2,200	)			(4,697	)			(2,447	)			247				2,691				(2,316	)			(3,998	)

Balance, end of period	$	12,372			$	14,745			$	12,372			$	15,282			$	14,900			$	12,251			$	14,745

Capitalized mortgage servicing rights
(% of loans serviced for investors)		78		bps		86		bps		78		bps		95		bps		92		bps		73		bps		86		bps
Mortgage loans serviced for investors (in billions)	$	1,578			$	1,706			$	1,578			$	1,610			$	1,628			$	1,669			$	1,706

Loan production:
Consumer Real Estate Services
First mortgage	$	90,839			$	136,106			$	38,320			$	52,519			$	81,255			$	69,875			$	69,141
Home equity		2,454				3,602				879				1,575				2,024				2,000				1,831
Total Corporation ⁽²⁾
First mortgage		97,104				141,440				40,370				56,734				84,673				71,925				71,938
Home equity		2,782				4,184				1,054				1,728				2,137				2,136				2,137

Mortgage banking income (loss)
Production income (loss):
Core production revenue	$	1,492			$	2,711			$	824			$	668			$	1,622			$	1,849			$	1,428
Representations and warranties provision		(15,050	)			(1,774	)			(14,037	)			(1,013	)			(4,140	)			(872	)			(1,248	)

Total production income (loss)		(13,558	)			937				(13,213	)			(345	)			(2,518	)			977				180

Servicing income:
Servicing fees		3,162				3,218				1,556				1,606				1,634				1,623				1,649
Impact of customer payments ⁽³⁾		(1,345	)			(2,037	)			(639	)			(706	)			(799	)			(923	)			(981	)
Fair value changes of mortgage servicing rights, net of economic hedge results ⁽⁴⁾		(870	)			209				(873	)			3				257				(89	)			12
Other servicing-related revenue		288				334				151				137				172				169				160

Total net servicing income		1,235				1,724				195				1,040				1,264				780				840

Total Consumer Real Estate Services mortgage banking income (loss)		(12,323	)			2,661				(13,018	)			695				(1,254	)			1,757				1,020
Other business segments’ mortgage banking loss ⁽⁵⁾		(243	)			(263	)			(178	)			(65	)			(165	)			(2	)			(122	)

Total consolidated mortgage banking income (loss)	$	(12,566	)		$	2,398			$	(13,196	)		$	630			$	(1,419	)		$	1,755			$	898

(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.		22

Bank of America Corporation and Subsidiaries

Global Commercial Banking Segment Results

(Dollars in millions)


	Six Months Ended June 30							Second Quarter				First Quarter			Fourth Quarter				Third Quarter			Second Quarter
	2011				2010			2011				2011			2010				2010			2010
Net interest income ⁽¹⁾	$	3,677			$	4,290		$	1,827			$	1,850		$	1,865			$	1,853		$	2,097
Noninterest income:
Service charges		1,182				1,188			576				606			563				589			589
All other income		602				497			407				195			186				191			197

Total noninterest income		1,784				1,685			983				801			749				780			786

Total revenue, net of interest expense		5,461				5,975			2,810				2,651			2,614				2,633			2,883

Provision for credit losses		(338	)			1,559			(417	)			79			(136	)			556			623
Noninterest expense		2,174				2,005			1,068				1,106			1,061				1,061			974

Income before income taxes		3,625				2,411			2,159				1,466			1,689				1,016			1,286
Income tax expense ⁽¹⁾		1,321				891			778				543			636				372			471

Net income	$	2,304			$	1,520		$	1,381			$	923		$	1,053			$	644		$	815


Net interest yield ⁽¹⁾		2.66		%		3.26	%		2.60		%		2.73	%		2.67		%		2.61	%		3.13	%
Return on average equity		11.33				6.93			13.67				9.02			9.72				5.96			7.46
Return on average economic capital ⁽²⁾		22.85				13.04			27.92				17.96			18.76				11.52			14.14
Efficiency ratio ⁽¹⁾		39.81				33.56			38.01				41.72			40.58				40.28			33.80

Balance sheet

Average
Total loans and leases	$	190,883			$	210,450		$	189,346			$	192,437		$	195,293			$	199,320		$	206,603
Total earning assets ⁽³⁾		278,272				265,125			281,844				274,662			277,402				281,749			268,552
Total assets ⁽³⁾		316,521				301,925			320,428				312,570			314,781				318,395			305,788
Total deposits		163,366				144,572			166,481				160,217			156,672				148,605			145,499
Allocated equity		41,008				44,222			40,515				41,506			42,992				42,925			43,869
Economic capital ⁽⁴⁾		20,309				23,558			19,817				20,806			22,289				22,218			23,159

Period end
Total loans and leases	$	189,434			$	203,659		$	189,434			$	190,749		$	194,038			$	196,333		$	203,659
Total earning assets ⁽³⁾		242,272				269,508			242,272				272,424			274,637				267,834			269,508
Total assets ⁽³⁾		280,289				306,234			280,289				309,930			312,802				304,534			306,234
Total deposits		170,156				147,414			170,156				161,584			161,279				150,994			147,414

(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.

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 Commercial Banking Key Indicators

(Dollars in millions)


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

	2011			2010			2011			2011			2010			2010			2010
Revenue, net of interest expense by service segment
Business lending	$	3,045		$	3,493		$	1,564		$	1,481		$	1,491		$	1,536		$	1,635
Treasury services		2,416			2,482			1,246			1,170			1,123			1,097			1,248

Total revenue, net of interest expense ⁽¹⁾	$	5,461		$	5,975		$	2,810		$	2,651		$	2,614		$	2,633		$	2,883


Average loans and leases by product
U.S. commercial	$	104,766		$	106,161		$	104,829		$	104,703		$	102,914		$	101,447		$	104,262
Commercial real estate		41,690			55,808			40,597			42,796			45,854			49,747			53,721
Direct/Indirect consumer		41,752			46,088			41,078			42,436			44,185			45,885			46,272
Other		2,675			2,393			2,842			2,502			2,340			2,241			2,348

Total average loans and leases	$	190,883		$	210,450		$	189,346		$	192,437		$	195,293		$	199,320		$	206,603

Loan spread		2.33	%		2.31	%		2.26	%		2.40	%		2.27	%		2.29	%		2.32	%

Credit quality
Reservable utilized criticized exposure ⁽²⁾	$	27,041		$	37,613		$	27,041		$	30,643		$	32,816		$	36,332		$	37,613
		14.27	%		18.50	%		14.27	%		15.83	%		16.74	%		18.45	%		18.50	%
Nonperforming loans, leases and foreclosed properties ⁽³⁾	$	7,373		$	10,027		$	7,373		$	8,321		$	8,681		$	9,414		$	10,027
		3.88	%		4.92	%		3.88	%		4.36	%		4.47	%		4.79	%		4.92	%

Average deposit balances
Interest-bearing	$	53,655		$	54,192		$	52,643		$	54,679		$	55,354		$	53,565		$	54,195
Noninterest-bearing		109,711			90,380			113,838			105,538			101,318			95,040			91,304

Total	$	163,366		$	144,572		$	166,481		$	160,217		$	156,672		$	148,605		$	145,499

(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.		24

Bank of America Corporation and Subsidiaries

Global Banking & Markets Segment Results

(Dollars in millions)


	Six Months Ended June 30							Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter
	2011				2010			2011				2011				2010				2010				2010
Net interest income ⁽¹⁾	$	3,828			$	4,172		$	1,791			$	2,037			$	2,007			$	1,901			$	2,002
Noninterest income:
Service charges		917				931			442				475				501				459				468
Investment and brokerage services		1,264				1,299			587				677				562				580				676
Investment banking income		3,148				2,517			1,637				1,511				1,583				1,306				1,301
Trading account profits		4,691				6,273			2,071				2,620				961				2,454				1,202
All other income (loss)		834				405			268				566				(210	)			407				255

Total noninterest income		10,854				11,425			5,005				5,849				3,397				5,206				3,902

Total revenue, net of interest expense		14,682				15,597			6,796				7,886				5,404				7,107				5,904

Provision for credit losses		(284	)			103			(82	)			(202	)			(112	)			(157	)			(133	)
Noninterest expense		9,435				9,024			4,713				4,722				4,383				4,391				4,735

Income before income taxes		5,531				6,470			2,165				3,366				1,133				2,873				1,302
Income tax expense ⁽¹⁾		1,839				2,333			607				1,232				478				1,434				404

Net income	$	3,692			$	4,137		$	1,558			$	2,134			$	655			$	1,439			$	898


Return on average equity		18.61		%		15.99	%		16.44		%		20.59		%		5.47		%		11.25		%		7.03		%
Return on average economic capital ⁽²⁾		25.86				20.28			23.40				28.02				7.30				14.42				9.06
Efficiency ratio ⁽¹⁾		64.26				57.86			69.35				59.88				81.12				61.78				80.19

Balance sheet

Average
Total trading-related assets^{(3, 4)}	$	459,278			$	519,767		$	460,153			$	458,394			$	485,161			$	507,014			$	522,304
Total loans and leases		106,604				97,427			109,473				103,704				100,606				98,874				95,839
Total earning assets^(3,5)		572,701				628,193			569,517				575,920				591,238				599,621				622,820
Total assets⁽⁵⁾		730,907				781,949			750,908				710,684				744,643				752,159				779,060
Total deposits		115,097				108,124			118,133				112,028				114,942				106,472				112,565
Allocated equity		40,004				52,182			38,001				42,029				47,511				50,756				51,245
Economic capital ⁽⁶⁾		29,126				41,582			27,078				31,197				36,810				40,237				40,705

Period end
Total trading-related assets⁽⁴⁾	$	445,220			$	483,769		$	445,220			$	455,958			$	417,714			$	516,875			$	483,769
Total loans and leases		114,165				95,756			114,165				105,651				99,964				99,525				95,756
Total earning assets ⁽⁵⁾		557,327				565,208			557,327				563,943				514,462				607,436				565,208
Total assets⁽⁵⁾		691,249				718,563			691,249				698,458				655,778				755,075				718,563
Total deposits		123,618				105,678			123,618				115,212				110,971				109,601				105,678

Trading-related assets (average)
Trading account securities ⁽³⁾	$	190,004			$	204,068		$	174,009			$	206,177			$	201,006			$	201,494			$	204,139
Reverse repurchases		162,655				195,590			173,403				151,788				166,070				183,246				193,905
Securities borrowed		49,616				56,100			54,044				45,140				51,294				54,899				57,292
Derivative assets		57,003				64,009			58,697				55,289				66,791				67,375				66,968

Total trading-related assets ^(3, 4)	$	459,278			$	519,767		$	460,153			$	458,394			$	485,161			$	507,014			$	522,304

(1)

Fully taxable-equivalent basis

(2)

(3)

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

(4)

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

(5)

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

(6)

Economic capital represents allocated equity less goodwill and a percentage of intangible assets.

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

Global Banking & Markets Key Indicators

(Dollars in millions)


	Six Months Ended June 30							Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter
	2011				2010			2011				2011				2010				2010				2010
Sales and trading revenue
Fixed income, currency and commodities	$	6,343			$	7,717		$	2,697			$	3,646			$	1,673			$	3,477			$	2,230
Equity income		2,330				2,396			1,081				1,249				781				967				882

Total sales and trading revenue ⁽¹⁾	$	8,673			$	10,113		$	3,778			$	4,895			$	2,454			$	4,444			$	3,112

Investment banking income
Advisory ⁽²⁾	$	700			$	409		$	381			$	319			$	336			$	273			$	242
Debt issuance		1,679				1,509			880				799				808				743				773
Equity issuance		769				599			376				393				439				290				286

Total investment banking income	$	3,148			$	2,517		$	1,637			$	1,511			$	1,583			$	1,306			$	1,301

Corporate Banking
Business lending	$	1,626			$	1,747		$	758			$	868			$	750			$	778			$	872
Treasury services		1,237				1,218			624				613				617				579				619

Total revenue, net of interest expense	$	2,863			$	2,965		$	1,382			$	1,481			$	1,367			$	1,357			$	1,491


Global Corporate & Investment Banking Key Indicators

Average deposit balances
Interest-bearing	$	55,347			$	52,870		$	57,524			$	53,145			$	59,068			$	55,833			$	55,109
Noninterest-bearing		52,650				46,730			53,081				52,214				48,454				43,981				49,009

Total average deposits	$	107,997			$	99,600		$	110,605			$	105,359			$	107,522			$	99,814			$	104,118


Loan spread		1.92		%		1.94	%		1.57		%		2.29		%		1.62		%		1.77		%		1.94		%

Provision for credit losses	$	(238	)		$	10		$	(74	)		$	(164	)		$	(110	)		$	(102	)		$	(191	)

Credit quality ^{(3, 4)}
Reservable utilized criticized exposure	$	4,801			$	7,290		$	4,801			$	5,298			$	5,924			$	7,131			$	7,290
		4.26		%		7.29	%		4.26		%		4.87		%		5.67		%		6.95		%		7.29		%
Nonperforming loans, leases and foreclosed properties	$	327			$	905		$	327			$	314			$	645			$	993			$	905
		0.34		%		1.13	%		0.34		%		0.35		%		0.76		%		1.19		%		1.13		%
Average loans and leases by product
U.S. commercial	$	34,039			$	34,878		$	34,369			$	33,704			$	33,522			$	32,681			$	33,593
Commercial real estate		68				33			54				82				24				26				31
Commercial lease financing		23,259				23,472			23,041				23,478				23,271				23,356				23,250
Non-U.S. commercial		32,757				22,309			35,267				30,220				26,550				24,650				22,710
Other		42				45			41				46				42				43				43

Total average loans and leases	$	90,165			$	80,737		$	92,772			$	87,530			$	83,409			$	80,756			$	79,627



(1) Sales and trading revenue breakdown:
Net Interest Income	$	2,037			$	2,328		$	952			$	1,085			$	1,183			$	1,090			$	1,083
Commissions		1,255				1,258			583				672				542				560				657
Trading		4,618				6,244			2,031				2,587				925				2,427				1,189
Other		763				283			212				551				(196	)			367				183

*Total sales and trading revenue*	$	8,673			$	10,113		$	3,778			$	4,895			$	2,454			$	4,444			$	3,112

(2)

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

(3)

(4)

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.		26

Bank of America Corporation and Subsidiaries

Credit Default Swaps with Monoline Financial Guarantors

(Dollars in millions)


	June 30, 2011
	Super Senior CDOs				Other Guaranteed Positions				Total
Notional	$	2,968			$	32,656			$	35,624
Mark-to-market or guarantor receivable		2,578				6,150				8,728
Credit valuation adjustment		(2,363	)			(3,314	)			(5,677	)

Total	$	215			$	2,836			$	3,051

Credit valuation adjustment %		92		%		54		%		65		%

Losses during the three months ended June 30, 2011	$	(38	)		$	(223	)		$	(261	)

Losses during the six months ended June 30, 2011		(314	)			(354	)			(668	)

	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.		27

Bank of America Corporation and Subsidiaries

Investment Banking Product Rankings

Six Months Ended June 30, 2011

Global

U.S.

Product
Ranking

Market
Share

Product
Ranking

Market
Share

High-yield corporate debt

9.7

11.4

Leveraged loans

14.1

17.8

Mortgage-backed securities

11.1

14.4

Asset-backed securities

13.0

20.3

Convertible debt

6.3

10.3

Common stock underwriting

7.7

9.9

Investment grade corporate debt

6.8

14.4

Syndicated loans

10.2

19.2

Net investment banking revenue

7.9

11.9

Announced mergers and acquisitions

14.1

21.1

Equity capital markets

7.5

10.0

Debt capital markets

5.7

10.6

Source: Dealogic data as of July 5, 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 but includes agencies.

•

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

•

Mergers and acquisitions volume rankings are for announced transactions and provide credit to all investment banks advising the target or acquiror.

•

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

Highlights


*Global top 3 rankings in:*

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

Excluding self-mandated deals:

Global: #1 - Asset-backed securities, Investment grade corporate debt

Global: #2 - High-yield corporate debt, Leveraged loans, Mortgage-backed securities, Common stock underwriting, Syndicated loans, Equity capital markets

US: #1 - Asset-backed securities, Investment grade corporate debt

US: #2 - High-yield corporate debt, Leveraged loans, Mortgage-backed securities, Syndicated loans, Debt capital markets


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 Segment Results

(Dollars in millions, except as noted)


	Six Months Ended June 30						Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
	2011			2010			Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
Net interest income ⁽¹⁾	$	3,140		$	2,907		$	1,571		$	1,569		$	1,425		$	1,345		$	1,443
Noninterest income:
Investment and brokerage services		4,756			4,303			2,378			2,378			2,266			2,091			2,195
All other income		1,086			1,020			541			545			470			462			551

Total noninterest income		5,842			5,323			2,919			2,923			2,736			2,553			2,746

Total revenue, net of interest expense		8,982			8,230			4,490			4,492			4,161			3,898			4,189

Provision for credit losses		118			363			72			46			155			127			122
Noninterest expense		7,230			6,368			3,631			3,599			3,485			3,364			3,269

Income before income taxes		1,634			1,499			787			847			521			407			798
Income tax expense ⁽¹⁾		595			731			281			314			199			150			469

Net income	$	1,039		$	768		$	506		$	533		$	322		$	257		$	329


Net interest yield ⁽¹⁾		2.32	%		2.49	%		2.34	%		2.30	%		2.10	%		2.18	%		2.42	%
Return on average equity		11.80			8.61			11.54			12.06			7.00			5.66			7.27
Return on average economic capital ⁽²⁾		30.21			22.76			29.97			30.44			18.12			15.20			19.10
Efficiency ratio ⁽¹⁾		80.50			77.37			80.88			80.12			83.76			86.29			78.05

Balance sheet
Average
Total loans and leases	$	101,529		$	98,826		$	102,200		$	100,851		$	100,306		$	99,103		$	98,811
Total earning assets ⁽³⁾		272,958			235,284			268,968			276,992			268,872			245,146			239,186
Total assets ⁽³⁾		293,170			256,510			289,050			297,335			289,643			265,641			259,801
Total deposits		256,859			223,956			255,219			258,518			246,281			234,807			226,276
Allocated equity		17,755			18,002			17,574			17,938			18,227			18,039			18,179
Economic capital ⁽⁴⁾		7,038			7,209			6,868			7,210			7,475			7,264			7,380

Period end
Total loans and leases	$	102,878		$	99,157		$	102,878		$	101,286		$	100,724		$	99,511		$	99,157
Total earning assets ⁽³⁾		263,867			231,375			263,867			264,753			275,260			245,370			231,375
Total assets ⁽³⁾		284,294			252,507			284,294			285,472			296,251			266,489			252,507
Total deposits		255,580			226,572			255,580			256,526			257,982			240,381			226,572

(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.

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

Global Wealth & Investment Management - Key Indicators and Metrics

(Dollars in millions, except as noted)


	Six Months Ended June 30						Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
	2011			2010			Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
Revenues
Merrill Lynch Global Wealth Management	$	7,034		$	6,126		$	3,494		$	3,540		$	3,428		$	3,177		$	3,138
U.S. Trust		1,407			1,323			711			696			708			691			682
Retirement Services		545			483			273			272			226			242			244
Other ⁽¹⁾		(4	)		298			12			(16	)		(201	)		(212	)		125

Total revenues	$	8,982		$	8,230		$	4,490		$	4,492		$	4,161		$	3,898		$	4,189


Client Balances

Client Balances by Business
Merrill Lynch Global Wealth Management	$	1,539,798		$	1,402,547		$	1,539,798		$	1,554,294		$	1,515,896		$	1,466,346		$	1,402,547
U.S. Trust		341,911			327,342			341,911			345,092			340,341			334,150			327,342
Retirement Services		252,379			224,930			252,379			255,573			246,774			234,249			224,930
Other^{(1, 2)}		67,875			92,227			67,875			71,759			78,275			86,199			92,227

Client Balances by Type
Assets under management ⁽²⁾	$	660,928		$	591,872		$	660,928		$	664,466		$	630,498		$	611,461		$	591,872
Client brokerage assets		1,066,078			1,010,751			1,066,078			1,087,624			1,077,049			1,055,384			1,010,751
Assets in custody		116,499			118,694			116,499			116,816			115,033			114,207			118,694
Client deposits		255,580			226,572			255,580			256,526			257,982			240,381			226,572
Loans and leases		102,878			99,157			102,878			101,286			100,724			99,511			99,157

Total client balances	$	2,201,963		$	2,047,046		$	2,201,963		$	2,226,718		$	2,181,286		$	2,120,944		$	2,047,046


Assets Under Management Flows ⁽²⁾
Liquidity assets under management ⁽³⁾	$	(10,430	)	$	(27,066	)	$	(3,771	)	$	(6,659	)	$	(8,050	)	$	(6,599	)	$	(9,788	)
Long-term assets under management ⁽⁴⁾		18,694			4,401			4,535			14,159			5,648			4,032			1,366

Total assets under management flows	$	8,264		$	(22,665	)	$	764		$	7,500		$	(2,402	)	$	(2,567	)	$	(8,422	)


Associates ⁽⁵⁾

Number of Financial Advisors		16,241			15,299			16,241			15,695			15,511			15,486			15,299

Total Wealth Advisors		17,817			16,781			17,817			17,201			17,025			16,983			16,781

Total Client Facing Professionals		20,876			19,744			20,876			20,273			20,068			20,013			19,744

Merrill Lynch Global Wealth Management Metrics

Financial Advisor Productivity ⁽⁶⁾ (in thousands)	$	912		$	826		$	894		$	931		$	913		$	846		$	843

U.S. Trust Metrics

Client Facing Professionals		2,280			2,277			2,280			2,313			2,311			2,302			2,277

(1)

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

(2)

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

(3)

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.

(4)

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

(5)

Includes Merrill Edge ^®

(6)

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.		30

Bank of America Corporation and Subsidiaries

All Other Results ⁽¹⁾

(Dollars in millions)


	Six Months Ended June 30						Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
	2011			2010			Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
Net interest income ⁽²⁾	$	(74	)	$	118		$	(167	)	$	93		$	76		$	(39	)	$	77
Noninterest income:
Equity investment income		2,547			2,765			1,139			1,408			1,501			267			2,253
Gains on sales of debt securities		1,299			662			831			468			858			794			14
All other income (loss)		(780	)		905			62			(842	)		(1,760	)		(275	)		783

Total noninterest income		3,066			4,332			2,032			1,034			599			786			3,050

Total revenue, net of interest expense		2,992			4,450			1,865			1,127			675			747			3,127

Provision for credit losses		3,462			2,466			1,663			1,799			1,839			329			1,246
Merger and restructuring charges		361			1,029			159			202			370			421			508
All other noninterest expense		1,449			1,814			157			1,292			516			143			605

Income (loss) before income taxes		(2,280	)		(859	)		(114	)		(2,166	)		(2,050	)		(146	)		768
Income tax expense (benefit) ⁽²⁾		(848	)		(1,192	)		102			(950	)		(2,410	)		(515	)		(355	)

Net income (loss)	$	(1,432	)	$	333		$	(216	)	$	(1,216	)	$	360		$	369		$	1,123



Balance sheet

Average
Total loans and leases	$	258,374		$	256,742		$	258,397		$	258,350		$	252,180		$	238,442		$	257,322
Total assets ⁽³⁾		183,289			300,395			167,364			199,391			196,487			206,559			291,530
Total deposits		47,642			67,770			46,684			48,608			44,841			44,871			64,709
Allocated equity ⁽⁴⁾		67,030			24,475			73,244			60,748			50,731			35,972			29,091

Period end
Total loans and leases	$	259,285		$	254,516		$	259,285		$	256,931		$	255,212		$	241,798		$	254,516
Total assets ⁽⁵⁾		209,210			243,099			209,210			155,855			176,400			193,893			243,099
Total deposits		42,355			57,424			42,355			34,818			38,748			37,652			57,424

(1)

All Other consists of two broad groupings, Equity Investments and Other. Equity Investments includes Global Principal Investments, Strategic and other investments, and Corporate Investments. BlackRock, Inc., previously included in Strategic and other investments, was sold during 2011. Substantially all of the equity investments in Corporate Investments were sold during 2010. Other includes liquidating businesses, merger and restructuring charges, ALM functions (i.e., residential mortgage portfolio and investment securities) and related activities (i.e., economic hedges, fair value option on structured liabilities), and the impact of certain allocation methodologies. Other also includes certain residential mortgage and discontinued real estate products that are managed by Legacy Asset Servicing within Consumer Real Estate Services).

(2)

Fully taxable-equivalent basis

(3)

Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) of $672.3 billion and $600.1 billion for the six months ended June 30, 2011 and 2010; $676.7 billion, $667.9 billion, $660.7 billion, $633.8 billion and $611.2 billion for the second and first quarters of 2011, and the fourth, third and second quarters of 2010, respectively.

(4)

Represents both the risk-based capital and the portion of goodwill and intangibles assigned to All Other as well as the remaining portion of equity not specifically allocated to the segments.

(5)

Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) of $629.6 billion, $661.1 billion, $647.3 billion, $621.1 billion and $603.5 billion at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively.

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

Equity Investments

(Dollars in millions)

Global Principal Investments Exposures

Equity Investment
Income

June 30, 2011

March 31,
2011

June 30, 2011

Book
Value

Unfunded
Commitments

Total

Three Months
Ended

Six Months
Ended

Global Principal Investments:

Private Equity Investments

5,021

133

5,154

5,194

210

1,413

Global Real Estate

1,505

214

1,719

1,704

116

Global Strategic Capital

2,522

406

2,928

2,933

182

275

Legacy/Other Investments

1,757

369

2,126

2,656

(35

)

(40

)

Total Global Principal Investments

10,805

1,122

11,927

12,487

399

1,764

Components of Equity Investment Income

(Dollars in millions)


	Six Months Ended June 30					Second Quarter		First Quarter		Fourth Quarter		Third Quarter		Second Quarter
	2011		2010			2011		2011		2010		2010		2010
Global Principal Investments	$	1,764	$	1,391		$	399	$	1,365	$	867	$	46	$	814
Corporate Investments		—		(305	)		—		—		6		6		6
Strategic and other investments ⁽¹⁾		783		1,679			740		43		628		215		1,433

Total equity investment income included in All Other		2,547		2,765			1,139		1,408		1,501		267		2,253
Total equity investment income included in the business segments		140		626			73		67		11		90		513

Total consolidated equity investment income	$	2,687	$	3,391		$	1,212	$	1,475	$	1,512	$	357	$	2,766

(1)

Includes the Corporation’s equity investment interest in BlackRock prior to its sale in the second quarter of 2011.

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.		32

Bank of America Corporation and Subsidiaries

Outstanding Loans and Leases

(Dollars in millions)


	June 30 2011		March 31 2011		Increase (Decrease)
Consumer
Residential mortgage ⁽¹⁾	$	266,333	$	261,934	$	4,399
Home equity		130,654		133,629		(2,975	)
Discontinued real estate ⁽²⁾		12,003		12,694		(691	)
U.S. credit card		104,659		107,107		(2,448	)
Non-U.S. credit card		26,037		27,235		(1,198	)
Direct/Indirect consumer⁽³⁾		90,258		89,444		814
Other consumer ⁽⁴⁾		2,762		2,754		8

Total consumer loans excluding loans measured at fair value		632,706		634,797		(2,091	)
Consumer loans measured at fair value ⁽⁵⁾		5,194		—		5,194

Total consumer		637,900		634,797		3,103


Commercial
U.S. commercial ⁽⁶⁾		190,606		188,449		2,157
Commercial real estate ⁽⁷⁾		44,028		47,008		(2,980	)
Commercial lease financing		21,391		21,563		(172	)
Non-U.S. commercial		42,929		36,921		6,008

Total commercial loans excluding loans measured at fair value		298,954		293,941		5,013
Commercial loans measured at fair value ⁽⁵⁾		4,403		3,687		716

Total commercial		303,357		297,628		5,729

Total loans and leases	$	941,257	$	932,425	$	8,832

(1)

Includes non-U.S. residential mortgages of $90 million and $92 million at June 30, 2011 and March 31, 2011.

(2)

Includes $10.7 billion and $11.4 billion of pay option loans, and $1.3 billion and $1.3 billion of subprime loans at June 30, 2011 and March 31, 2011. The Corporation no longer originates these products.

(3)

Includes dealer financial services loans of $42.1 billion and $41.5 billion, consumer lending of $9.9 billion and $11.1 billion, U.S. securities-based lending margin loans of $21.3 billion and $19.7 billion, student loans of $6.3 billion and $6.6 billion, non-U.S. consumer loans of $8.7 billion and $8.5 billion, and other consumer loans of $2.0 billion and $2.1 billion at June 30, 2011 and March 31, 2011.

(4)

Includes consumer finance loans of $1.8 billion and $1.9 billion, other non-U.S. consumer loans of $866 million and $818 million, and consumer overdrafts of $104 million and $69 million at June 30, 2011 and March 31, 2011.

(5)

Certain consumer loans are accounted for under the fair value option and include residential mortgages of $1.2 billion and discontinued real estate of $4.0 billion at June 30, 2011. Certain commercial loans are accounted for under the fair value option and include U.S. commercial loans of $1.6 billion and $1.4 billion, non-U.S. commercial loans of $2.8 billion and $2.3 billion, and commercial real estate loans of $11 million and $68 million at June 30, 2011 and March 31, 2011.

(6)

Includes U.S. small business commercial loans, including card related products, of $13.9 billion and $14.3 billion at June 30, 2011 and March 31, 2011.

(7)

Includes U.S. commercial real estate loans of $41.7 billion and $44.6 billion, and non-U.S. commercial real estate loans of $2.3 billion and $2.4 billion at June 30, 2011 and March 31, 2011.

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.		33

Bank of America Corporation and Subsidiaries

Quarterly Average Loans and Leases by Business Segment

(Dollars in millions)


	Second Quarter 2011
	Total Corporation		Deposits		Global Card Services		Consumer Real Estate Services			Global Commercial Banking		Global Banking & Markets		GWIM		All Other
Consumer
Residential mortgage	$	265,420	$	—	$	—	$	1,167		$	263	$	101	$	36,367	$	227,522
Home equity		131,786		—		—		115,250			1,033		—		15,248		255
Discontinued real estate		15,997		—		—		3,548			—		—		—		12,449
U.S. credit card		106,164		—		106,164		—			—		—		—		—
Non-U.S. credit card		27,259		—		27,259		—			—		—		—		—
Direct/Indirect consumer		89,403		52		10,932		94			41,078		561		30,231		6,455
Other consumer		2,745		414		835		—			—		5		17		1,474

Total consumer		638,774		466		145,190		120,059			42,374		667		81,863		248,155

Commercial
U.S. commercial		190,479		157		10,421		1,619			104,829		45,755		18,322		9,376
Commercial real estate		45,762		3		277		5			40,597		908		1,792		2,180
Commercial lease financing		21,284		—		—		—			—		23,042		34		(1,792	)
Non-U.S. commercial		42,214		—		900		—			1,546		39,101		189		478

Total commercial		299,739		160		11,598		1,624			146,972		108,806		20,337		10,242

Total loans and leases	$	938,513	$	626	$	156,788	$	121,683		$	189,346	$	109,473	$	102,200	$	258,397


	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	$	—	$	—	$	—		$	283	$	99	$	35,752	$	225,915
Home equity		136,089		—		—		119,123			1,013		—		15,686		267
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		12,284		97			42,436		371		28,110		6,743
Other consumer		2,753		383		772		(16	)		2		5		18		1,589

Total consumer		641,461		439		150,630		119,204			43,734		475		79,566		247,413

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		—		1,017		2			1,204		33,306		165		465

Total commercial		297,505		200		11,795		1,356			148,703		103,229		21,285		10,937

Total loans and leases	$	938,966	$	639	$	162,425	$	120,560		$	192,437	$	103,704	$	100,851	$	258,350


	Second Quarter 2010
	Total Corporation		Deposits		Global Card Services		Consumer Real Estate Services			Global Commercial Banking		Global Banking & Markets		GWIM		All Other
Consumer
Residential mortgage	$	247,715	$	—	$	—	$	—		$	304	$	513	$	35,204	$	211,694
Home equity		148,219		—		—		129,010			923		—		16,409		1,877
Discontinued real estate		13,972		—		—		—			—		—		—		13,972
U.S. credit card		118,738		—		118,738		—			—		—		—		—
Non-U.S. credit card		27,706		—		27,706		—			—		—		—		—
Direct/Indirect consumer		98,549		69		17,159		101			46,272		82		24,112		10,754
Other consumer		2,958		326		673		(210	)		—		7		19		2,143

Total consumer		657,857		395		164,276		128,901			47,499		602		75,744		240,440

Commercial
U.S. commercial		195,144		341		11,562		1,754			104,262		44,952		20,872		11,401
Commercial real estate		64,218		5		193		7			53,721		1,363		2,019		6,910
Commercial lease financing		21,271		—		—		—			1		23,250		30		(2,010	)
Non-U.S. commercial		28,564		—		1,045		—			1,120		25,672		146		581

Total commercial		309,197		346		12,800		1,761			159,104		95,237		23,067		16,882

Total loans and leases	$	967,054	$	741	$	177,076	$	130,662		$	206,603	$	95,839	$	98,811	$	257,322

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.		34

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Commercial Utilized							Total Commercial Committed
	June 30 2011		March 31 2011		Increase (Decrease)			June 30 2011			March 31 2011			Increase (Decrease)
Diversified financials	$	51,889	$	54,085	$	(2,196	)	$	79,056		$	81,676		$	(2,620	)
Real estate ⁽⁴⁾		53,597		56,084		(2,487	)		67,093			69,273			(2,180	)
Government and public education		42,153		42,292		(139	)		58,027			58,174			(147	)
Capital goods		23,880		22,151		1,729			46,822			45,833			989
Healthcare equipment and services		28,757		29,227		(470	)		45,608			46,124			(516	)
Retailing		25,530		24,994		536			45,604			44,506			1,098
Consumer services		23,195		23,261		(66	)		37,735			38,441			(706	)
Materials		17,696		16,162		1,534			35,831			34,277			1,554
Banks		32,005		29,454		2,551			35,461			32,894			2,567
Commercial services and supplies		20,740		21,013		(273	)		31,344			31,139			205
Energy		12,661		10,426		2,235			29,817			27,471			2,346
Food, beverage and tobacco		14,697		14,789		(92	)		28,920			28,550			370
Utilities		6,407		7,355		(948	)		24,697			26,325			(1,628	)
Insurance, including monolines		16,306		16,673		(367	)		23,059			23,483			(424	)
Individuals and trusts		16,249		16,935		(686	)		20,498			21,802			(1,304	)
Media		10,730		10,517		213			20,461			19,944			517
Transportation		11,778		11,721		57			18,129			17,894			235
Pharmaceuticals and biotechnology		4,998		4,569		429			12,152			12,063			89
Technology hardware and equipment		4,557		4,270		287			11,005			10,798			207
Religious and social organizations		8,087		8,013		74			10,319			10,384			(65	)
Telecommunication services		3,890		3,717		173			10,096			9,527			569
Software and services		3,480		3,358		122			8,995			8,882			113
Consumer durables and apparel		4,329		4,247		82			8,938			8,599			339
Food and staples retailing		3,123		3,824		(701	)		6,521			6,940			(419	)
Automobiles and components		2,466		2,256		210			6,391			5,905			486
Other		3,521		7,556		(4,035	)		7,191			11,122			(3,931	)
Total commercial credit exposure by industry	$	446,721	$	448,949	$	(2,228	)	$	729,770		$	732,026		$	(2,256	)

Net credit default protection purchased on total commitments ⁽⁵⁾								$	(19,861	)	$	(19,179	)

(1)

Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held-for-sale, commercial letters of credit, bankers’ acceptances, securitized assets, foreclosed properties and other collateral acquired. Derivative assets are reported on a mark-to-market basis and have been reduced by the amount of cash collateral applied of $58.8 billion and $57.7 billion at June 30, 2011 and March 31, 2011. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $14.0 billion and $14.9 billion which consists primarily of other marketable securities at June 30, 2011 and March 31, 2011.

(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 $4.0 billion and $3.7 billion and issued letters of credit at notional value of $1.2 billion and $1.4 billion at June 30, 2011 and March 31, 2011. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $26.8 billion and $27.0 billion at June 30, 2011 and March 31, 2011.

(3)

Includes U.S. small business commercial exposure.

(4)

Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based upon the borrowers’ or counterparties’ primary business activity using operating cash 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.		35

Bank of America Corporation and Subsidiaries

Net Credit Default Protection by Maturity Profile⁽¹⁾


	June 30 2011			March 31 2011
Less than or equal to one year		14	%		13	%
Greater than one year and less than or equal to five years		80			78
Greater than five years		6			9
Total net credit default protection		100	%		100	%

(1)

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

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

(Dollars in millions)


	June 30, 2011						March 31, 2011
Ratings ⁽³⁾	Net Notional			Percent			Net Notional			Percent
AA	$	(313	)		1.6	%	$	(223	)		1.2	%
A		(7,016	)		35.3			(6,967	)		36.3
BBB		(7,542	)		38.0			(7,105	)		37.0
BB		(1,659	)		8.4			(1,871	)		9.8
B		(1,381	)		7.0			(1,231	)		6.4
CCC and below		(756	)		3.8			(756	)		3.9
NR ⁽⁴⁾		(1,194	)		5.9			(1,026	)		5.4
Total net credit default protection	$	(19,861	)		100.0	%	$	(19,179	)		100.0	%

(1)

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

(2)

Ratings are refreshed on a quarterly basis.

(3)

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

(4)

In addition to names which have not been rated, “NR” includes $(1.1) billion and $(921) million in net credit default swap index positions at June 30, 2011 and March 31, 2011. 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.		36

Bank of America Corporation and Subsidiaries

Selected Emerging Markets ⁽¹⁾

(Dollars in millions)


	Loans and Leases, and Loan Commitments		Other Financing ⁽²⁾		Derivative Assets ⁽³⁾		Securities / Other Investments ⁽⁴⁾		Total Cross–border Exposure ⁽⁵⁾		Local Country Exposure Net of Local Liabilities ⁽⁶⁾		Total Emerging Markets Exposure at June 30, 2011		Increase (Decrease) from March 31, 2011
Region/Country
Asia Pacific
China ⁽⁷⁾	$	2,534	$	425	$	990	$	21,494	$	25,443	$	99	$	25,542	$	(612	)
India		4,154		1,485		551		2,381		8,571		516		9,087		271
South Korea		873		1,255		401		2,105		4,634		1,774		6,408		(856	)
Taiwan		472		78		74		603		1,227		1,519		2,746		400
Singapore		616		43		428		1,488		2,575		—		2,575		80
Hong Kong		518		396		178		1,056		2,148		287		2,435		389
Thailand		20		15		32		878		945		—		945		313
Malaysia		85		10		132		476		703		2		705		366
Indonesia		148		15		5		519		687		7		694		166
Other Asia Pacific ⁽⁸⁾		226		92		53		381		752		—		752		246
Total Asia Pacific		9,646		3,814		2,844		31,381		47,685		4,204		51,889		763
Latin America
Brazil		1,254		375		407		3,213		5,249		1,848		7,097		(658	)
Mexico		2,029		475		257		3,032		5,793		—		5,793		2,496
Chile		1,069		58		336		27		1,490		41		1,531		19
Peru		373		114		20		92		599		—		599		107
Other Latin America ⁽⁸⁾		263		346		39		334		982		152		1,134		(136	)
Total Latin America		4,988		1,368		1,059		6,698		14,113		2,041		16,154		1,828
Middle East and Africa
United Arab Emirates		1,088		30		126		85		1,329		—		1,329		203
Bahrain		79		1		4		1,001		1,085		2		1,087		1
South Africa		361		22		88		48		519		—		519		109
Other Middle East and Africa ⁽⁸⁾		513		103		93		209		918		28		946		20
Total Middle East and Africa		2,041		156		311		1,343		3,851		30		3,881		333
Central and Eastern Europe
Russian Federation		819		117		12		187		1,135		11		1,146		644
Turkey		321		45		6		217		589		96		685		(53	)
Other Central and Eastern Europe ⁽⁸⁾		116		84		221		492		913		—		913		(578	)
Total Central and Eastern Europe		1,256		246		239		896		2,637		107		2,744		13
Total emerging market exposure	$	17,931	$	5,584	$	4,453	$	40,318	$	68,286	$	6,382	$	74,668	$	2,937

(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 June 30, 2011 and March 31, 2011, there was $474 million and $368 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 $1.1 billion and $881 million at June 30, 2011 and March 31, 2011. At June 30, 2011 and March 31, 2011, there were $226 million and $306 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 June 30, 2011 was $21.4 billion compared to $18.4 billion at March 31, 2011. Local liabilities at June 30, 2011 in Asia Pacific, Latin America, and Middle East and Africa were $19.2 billion, $1.6 billion and $579 million, respectively, of which $8.8 billion was in Singapore, $2.6 billion in Hong Kong, $2.4 billion in China, $2.1 billion in India, $1.5 billion in Mexico, $1.0 billion in Korea, $949 million in Indonesia and $579 million in South Africa. There were no other countries with available local liabilities funding local country exposure greater than $500 million.

(7)

Securities/Other Investments includes an investment of $19.6 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.		37

Bank of America Corporation and Subsidiaries

Selected European Countries

(Dollars in millions)


	Loans and Leases, and Loan Commitments		Other Financing ⁽¹⁾		Derivative Assets ⁽²⁾		Securities/ Other Investments ⁽³⁾		Total Cross–border Exposure ⁽⁴⁾		Local Country Exposure Net of Local Liabilities ⁽⁵⁾		Total Non-U.S. Exposure at June 30, 2011		Credit Default Protection ⁽⁶⁾
Greece
Sovereign	$	—	$	—	$	—	$	17	$	17	$	—	$	17	$	(7	)
Non-sovereign		399		5		52		47		503		—		503		—
Total Greece	$	399	$	5	$	52	$	64	$	520	$	—	$	520	$	(7	)
Ireland
Sovereign	$	1	$	—	$	10	$	25	$	36	$	—	$	36	$	—
Non-sovereign		1,625		570		304		298		2,797		—		2,797		(41	)
Total Ireland	$	1,626	$	570	$	314	$	323	$	2,833	$	—	$	2,833	$	(41	)
Italy
Sovereign	$	28	$	—	$	1,320	$	16	$	1,364	$	9	$	1,373	$	(1,361	)
Non-sovereign		1,165		18		655		1,233		3,071		2,450		5,521		(252	)
Total Italy	$	1,193	$	18	$	1,975	$	1,249	$	4,435	$	2,459	$	6,894	$	(1,613	)
Portugal
Sovereign	$	—	$	—	$	32	$	—	$	32	$	—	$	32	$	(30	)
Non-sovereign		280		22		6		80		388		—		388		—
Total Portugal	$	280	$	22	$	38	$	80	$	420	$	—	$	420	$	(30	)
Spain
Sovereign	$	27	$	—	$	39	$	5	$	71	$	52	$	123	$	(64	)
Non-sovereign		911		102		241		2,199		3,453		2,490		5,943		(14	)
Total Spain	$	938	$	102	$	280	$	2,204	$	3,524	$	2,542	$	6,066	$	(78	)
Total
Sovereign	$	56	$	—	$	1,401	$	63	$	1,520	$	61	$	1,581	$	(1,462	)
Non-sovereign		4,380		717		1,258		3,857		10,212		4,940		15,152		(307	)
Total selected European exposure	$	4,436	$	717	$	2,659	$	3,920	$	11,732	$	5,001	$	16,733	$	(1,769	)

(1)

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

(2)

Derivative assets are carried at fair value and have been reduced by the amount of cash collateral applied of $3.1 billion at June 30, 2011. At June 30, 2011, there was $77 million of other marketable securities collateralizing derivative assets.

(3)

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

(4)

(5)

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 of $957 million are subtracted from local exposures consistent with FFIEC reporting requirements. Of the $957 million applied for exposure reduction, $389 million was in Italy, $362 million in Ireland, $158 million in Spain and $48 million in Greece.

(6)

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

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

Nonperforming Loans, Leases and Foreclosed Properties

(Dollars in millions)


	June 30 2011			March 31 2011			December 31 2010			September 30 2010			June 30 2010
Residential mortgage	$	16,726		$	17,466		$	17,691		$	18,291		$	18,283
Home equity		2,345			2,559			2,694			2,702			2,951
Discontinued real estate		324			327			331			297			293
Direct/Indirect consumer		58			68			90			83			85
Other consumer		25			36			48			56			72

Total consumer		19,478			20,456			20,854			21,429			21,684

U.S. commercial ⁽¹⁾		2,767			3,056			3,453			3,894			4,217
Commercial real estate		5,051			5,695			5,829			6,376			6,704
Commercial lease financing		23			53			117			123			140
Non-U.S. commercial		108			155			233			272			130

		7,949			8,959			9,632			10,665			11,191
U.S. small business commercial		156			172			204			202			222

Total commercial		8,105			9,131			9,836			10,867			11,413

Total nonperforming loans and leases		27,583			29,587			30,690			32,296			33,097
Foreclosed properties		2,475			2,056			1,974			2,260			2,501

Total nonperforming loans, leases and foreclosed properties ^{(2, 3, 4)}	$	30,058		$	31,643		$	32,664		$	34,556		$	35,598


Fully insured home loans past due 90 days or more and still accruing	$	20,047		$	19,754		$	16,768		$	16,427		$	15,338
Other loans past due 90 days or more and still accruing		4,243			5,129			5,611			5,781			6,448

Total loans past due 90 days or more and still accruing ^{(3, 5)}	$	24,290		$	24,883		$	22,379		$	22,208		$	21,786


Nonperforming loans, leases and foreclosed properties/Total assets⁽⁶⁾		1.33	%		1.39	%		1.44	%		1.48	%		1.51	%
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total loans and leases (excluding purchased credit-impaired loans) ⁽⁶⁾		3.24			3.58			3.94			4.25			4.37
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties⁽⁶⁾		3.22			3.40			3.48			3.71			3.73
Nonperforming loans and leases/Total loans and leases⁽⁶⁾		2.96			3.19			3.27			3.47			3.48

Allowance for credit losses:
Allowance for loan and lease losses ⁽⁷⁾	$	37,312		$	39,843		$	41,885		$	43,581		$	45,255
Reserve for unfunded lending commitments		897			961			1,188			1,294			1,413

Total allowance for credit losses	$	38,209		$	40,804		$	43,073		$	44,875		$	46,668


Allowance for loan and lease losses/Total loans and leases ⁽⁶⁾		4.00	%		4.29	%		4.47	%		4.69	%		4.75	%
Allowance for loan and lease losses/Total nonperforming loans and leases⁽⁸⁾		135			135			136			135			137
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total nonperforming loans and leases		105			108			116			118			121

Commercial utilized reservable criticized exposure ⁽⁹⁾	$	35,110		$	39,435		$	42,621		$	47,698		$	50,319
Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure⁽⁹⁾		9.73	%		10.94	%		11.80	%		13.06	%		13.48	%
Total commercial utilized criticized exposure/Commercial utilized exposure ⁽⁹⁾		10.80			11.73			12.43			13.61			14.26

(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, individually insured long-term credit protection agreements 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.

(4) Balances do not include the following:

June 30
2011

March 31
2011

December 31
2010

September 30
2010

June 30
2010

Nonperforming loans held-for-sale

2,119

2,421

2,540

3,654

4,044

Nonperforming loans accounted for under the fair value option

2,389

Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010

465

456

426

378

403

(5)

Balances do not include loans held-for-sale past due 90 days or more and still accruing of $19 million, $48 million, $60 million, $79 million and $158 million at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively. At June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010 there were no loans accounted for under the fair value option past due 90 days or more and still accruing interest.

(6)

Total assets and total loans and leases do not include loans accounted for under the fair value option of $9.6 billion, $3.7 billion, $3.3 billion, $3.7 billion and $3.9 billion at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively.

(7)

Balances include the allowance for loan and lease losses on purchased credit-impaired loans of $8.4 billion, $8.0 billion, $6.4 billion, $5.6 billion and $5.3 billion at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively.

(8)

Allowance for loan and lease losses includes $19.9 billion, $22.1 billion, $22.9 billion, $23.7 billion and $24.3 billion allocated to products (primarily Global Card Services portfolios and purchased credit-impaired loans) that are excluded from nonperforming loans and leases at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively. Excluding these amounts, allowance for loan and lease losses as a percentage of total nonperforming loans and leases was 63 percent, 60 percent, 62 percent, 62 percent and 63 percent at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively.

(9)

Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure excludes loans held-for-sale, exposure accounted for under the fair value option and other nonreservable 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.		39

Bank of America Corporation and Subsidiaries

Nonperforming Loans, Leases and Foreclosed Properties Activity ⁽¹⁾

(Dollars in millions)


	Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
Nonperforming Consumer Loans:
Balance, beginning of period	$	20,456		$	20,854		$	21,429		$	21,684		$	21,557
Additions to nonperforming loans:
New nonaccrual loans		4,044			4,127			4,568			4,551			5,409
Reductions in nonperforming loans:
Paydowns and payoffs		(1,003	)		(779	)		(739	)		(917	)		(528	)
Returns to performing status ⁽²⁾		(1,311	)		(1,340	)		(1,841	)		(1,469	)		(1,816	)
Charge-offs⁽³⁾		(2,300	)		(2,020	)		(2,261	)		(1,987	)		(2,607	)
Transfers to foreclosed properties		(408	)		(386	)		(302	)		(433	)		(331	)

Total net additions (reductions) to nonperforming loans		(978	)		(398	)		(575	)		(255	)		127

Total nonperforming consumer loans, end of period		19,478			20,456			20,854			21,429			21,684
Foreclosed properties		1,797			1,331			1,249			1,485			1,744

Total nonperforming consumer loans and foreclosed properties, end of period	$	21,275		$	21,787		$	22,103		$	22,914		$	23,428

Nonperforming Commercial Loans and Leases ⁽⁴⁾:
Balance, beginning of period	$	9,131		$	9,836		$	10,867		$	11,413		$	12,060
Additions to nonperforming loans and leases:
New nonaccrual loans and leases		1,042			1,299			1,820			1,852			2,256
Advances		52			67			102			83			62
Reductions in nonperforming loans and leases:
Paydowns and payoffs		(1,023	)		(764	)		(1,113	)		(906	)		(1,148	)
Sales		(141	)		(247	)		(228	)		(187	)		(256	)
Return to performing status ⁽⁵⁾		(362	)		(320	)		(465	)		(415	)		(404	)
Charge-offs ⁽⁶⁾		(291	)		(488	)		(767	)		(628	)		(870	)
Transfers to foreclosed properties		(241	)		(200	)		(304	)		(217	)		(205	)
Transfers to loans held-for-sale		(62	)		(52	)		(76	)		(128	)		(82	)

Total net reductions in nonperforming loans and leases		(1,026	)		(705	)		(1,031	)		(546	)		(647	)

Total nonperforming commercial loans and leases, end of period		8,105			9,131			9,836			10,867			11,413
Foreclosed properties		678			725			725			775			757

Total nonperforming commercial loans, leases and foreclosed properties, end of period	$	8,783		$	9,856		$	10,561		$	11,642		$	12,170

(1)

For amounts excluded from nonperforming loans, leases and foreclosed properties, see footnotes to Nonperforming Loans, Leases and Foreclosed Properties table on page 39.

(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 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 and accordingly are excluded from this table.

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


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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Second Quarter 2011						First Quarter 2011						Fourth Quarter 2010					Third Quarter 2010					Second Quarter 2010
Net Charge-offs	Amount			Percent			Amount			Percent			Amount		Percent			Amount		Percent			Amount			Percent
Residential mortgage	$	1,104			1.67	%	$	905			1.40	%	$	970		1.51	%	$	660		1.10	%	$	971			1.57	%
Home equity		1,263			3.84			1,179			3.51			1,271		3.61			1,372		3.80			1,741			4.71
Discontinued real estate		26			0.84			20			0.61			11		0.35			17		0.48			19			0.54
U.S. credit card		1,931			7.29			2,274			8.39			2,572		9.05			2,975		10.24			3,517			11.88
Non-U.S. credit card		429			6.31			402			5.91			339		4.90			295		4.32			942			13.64
Direct/Indirect consumer		366			1.64			525			2.36			641		2.78			707		2.93			879			3.58
Other consumer		43			6.44			40			5.93			50		6.96			80		10.68			73			10.01

Total consumer		5,162			3.27			5,345			3.38			5,854		3.62			6,106		3.81			8,142			4.96

U.S. commercial ⁽²⁾		60			0.14			(21	)		(0.05	)		210		0.47			206		0.47			179			0.41
Commercial real estate		163			1.43			288			2.42			347		2.67			410		2.93			645			4.03
Commercial lease financing		(8	)		(0.15	)		1			0.02			20		0.38			19		0.34			(3	)		(0.06	)
Non-U.S. commercial		13			0.13			103			1.22			8		0.10			12		0.17			66			0.98

		228			0.32			371			0.54			585		0.83			647		0.91			887			1.23
U.S. small business commercial		275			7.78			312			8.68			344		9.13			444		11.38			528			12.94

Total commercial		503			0.68			683			0.94			929		1.25			1,091		1.46			1,415			1.86

Total net charge-offs	$	5,665			2.44		$	6,028			2.61		$	6,783		2.87		$	7,197		3.07		$	9,557			3.98


By Business Segment
Deposits	$	36			23.58	%	$	34			21.34	%	$	40		25.64	%	$	70		39.43	%	$	66			35.64	%
Global Card Services		2,879			7.37			3,342			8.34			3,693		8.79			4,230		9.83			5,672			12.85
Consumer Real Estate Services		1,213			4.16			1,114			3.75			1,183		3.76			1,323		4.11			1,664			5.11
Global Commercial Banking		321			0.68			514			1.08			639		1.30			730		1.45			960			1.86
Global Banking & Markets		(9	)		(0.03	)		(3	)		(0.01	)		25		0.10			52		0.22			87			0.38
Global Wealth & Investment Management		129			0.50			88			0.36			131		0.52			112		0.45			115			0.47
All Other		1,096			1.70			939			1.47			1,072		1.69			680		1.13			993			1.55

Total net charge-offs	$	5,665			2.44		$	6,028			2.61		$	6,783		2.87		$	7,197		3.07		$	9,557			3.98

(1)

Net charge-off 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.		41

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Six Months Ended June 30
	2011						2010
Net Charge-offs	Amount			Percent			Amount		Percent
Residential mortgage	$	2,009			1.54	%	$	2,040		1.67	%
Home equity		2,442			3.68			4,138		5.55
Discontinued real estate		46			0.73			40		0.57
U.S. credit card		4,205			7.85			7,480		12.36
Non-U.S. credit card		831			6.11			1,573		11.02
Direct/Indirect consumer		891			2.00			1,988		4.02
Other consumer		83			6.19			131		8.90

Total consumer		10,507			3.32			17,390		5.28

U.S. commercial ⁽²⁾		39			0.05			465		0.52
Commercial real estate		451			1.93			1,260		3.83
Commercial lease financing		(7	)		(0.06	)		18		0.17
Non-U.S. commercial		116			0.64			91		0.68

		599			0.43			1,834		1.26
U.S. small business commercial		587			8.24			1,130		13.59

Total commercial		1,186			0.81			2,964		1.92

Total net charge-offs	$	11,693			2.53		$	20,354		4.21


By Business Segment
Deposits	$	70			22.45	%	$	109		41.53	%
Global Card Services		6,221			7.86			11,682		12.88
Consumer Real Estate Services		2,327			3.95			3,981		6.07
Global Commercial Banking		835			0.88			2,037		1.95
Global Banking & Markets		(12	)		(0.02	)		230		0.50
Global Wealth & Investment Management		217			0.43			234		0.48
All Other		2,035			1.59			2,081		1.64

Total net charge-offs	$	11,693			2.53		$	20,354		4.21

(1)

(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.


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

Bank of America Corporation and Subsidiaries

Allocation of the Allowance for Credit Losses by Product Type

(Dollars in millions)


	June 30, 2011								March 31, 2011								June 30, 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	$	5,845		15.66	%		2.19	%	$	5,369		13.48	%		2.05	%	$	5,086		11.24	%		2.07	%
Home equity		13,111		35.14			10.03			12,857		32.27			9.62			12,840		28.37			8.78
Discontinued real estate		1,997		5.35			16.64			1,871		4.69			14.74			912		2.02			6.62
U.S. credit card		7,540		20.21			7.20			9,100		22.84			8.50			12,384		27.36			10.61
Non-U.S.credit card		1,771		4.75			6.80			2,069		5.19			7.60			2,197		4.85			8.32
Direct/Indirect consumer		1,475		3.95			1.63			1,939		4.87			2.17			2,929		6.47			2.98
Other consumer		145		0.39			5.25			163		0.41			5.92			182		0.41			6.08

Total consumer		31,884		85.45			5.04			33,368		83.75			5.26			36,530		80.72			5.62

U.S. commercial ⁽²⁾		2,792		7.48			1.46			3,156		7.92			1.67			4,495		9.93			2.35
Commercial real estate		2,314		6.20			5.26			2,904		7.29			6.18			3,593		7.94			5.83
Commercial lease financing		99		0.27			0.46			124		0.31			0.57			269		0.60			1.26
Non-U.S.commercial		223		0.60			0.52			291		0.73			0.79			368		0.81			1.32

Total commercial ⁽³⁾		5,428		14.55			1.82			6,475		16.25			2.20			8,725		19.28			2.89

Allowance for loan and lease losses		37,312		100.00	%		4.00			39,843		100.00	%		4.29			45,255		100.00	%		4.75

Reserve for unfunded lending commitments		897								961								1,413

Allowance for credit losses ⁽⁴⁾	$	38,209							$	40,804							$	46,668

(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 residental mortgage loans of $1.2 billion and discontinued real estate loans of $4.0 billion at June 30, 2011. They also include U.S. commercial loans of $1.6 billion, $1.4 billion and $2.1 billion, non-U.S. commercial loans of $2.8 billion, $2.3 billion and $1.7 billion, and commercial real estate loans of $11 million, $68 million and $114 million at June 30, 2011, March 31, 2011 and June 30, 2010, respectively.

(2)

Includes allowance for U.S. small business commercial loans of $1.0 billion, $1.3 billion and $2.0 billion at June 30, 2011, March 31, 2011 and June 30, 2010, respectively.

(3)

Includes allowance for loan and lease losses for impaired commercial loans of $778 million, $996 million and $1.4 billion at June 30, 2011, March 31, 2011 and June 30, 2010, respectively.

(4)

Includes $8.4 billion, $8.0 billion and $5.3 billion of allowance for credit losses related to purchased credit-impaired loans at June 30, 2011, March 31, 2011 and June 30, 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.		43

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 $2.6 billion recorded in the second quarter of 2011, and $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 45 for reconciliations of these non-GAAP measures with financial measures defined by GAAP for the three months ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010 and the six months ended June 30, 2011 and 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.


	Six Months Ended June 30					Second Quarter 2011			First Quarter 2011		Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
	2011			2010		Second Quarter 2011			First Quarter 2011		Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010

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

Net interest income	$	23,425		$	26,649	$	11,246		$	12,179	$	12,439		$	12,435		$	12,900
Fully taxable-equivalent adjustment		465			618		247			218		270			282			297

Net interest income on a fully taxable-equivalent basis	$	23,890		$	27,267	$	11,493		$	12,397	$	12,709		$	12,717		$	13,197


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	$	40,113		$	61,122	$	13,236		$	26,877	$	22,398		$	26,700		$	29,153
Fully taxable-equivalent adjustment		465			618		247			218		270			282			297

Total revenue, net of interest expense on a fully taxable-equivalent basis	$	40,578		$	61,740	$	13,483		$	27,095	$	22,668		$	26,982		$	29,450


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

Total noninterest expense	$	43,139		$	35,028	$	22,856		$	20,283	$	20,864		$	27,216		$	17,253
Goodwill impairment charges		(2,603	)		—		(2,603	)		—		(2,000	)		(10,400	)		—

Total noninterest expense, excluding goodwill impairment charges	$	40,536		$	35,028	$	20,253		$	20,283	$	18,864		$	16,816		$	17,253


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

Income tax expense (benefit)	$	(3,318	)	$	1,879	$	(4,049	)	$	731	$	(2,351	)	$	1,387		$	672
Fully taxable-equivalent adjustment		465			618		247			218		270			282			297

Income tax expense (benefit) on a fully taxable-equivalent basis	$	(2,853	)	$	2,497	$	(3,802	)	$	949	$	(2,081	)	$	1,669		$	969


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

Net income (loss)	$	(6,777	)	$	6,305	$	(8,826	)	$	2,049	$	(1,244	)	$	(7,299	)	$	3,123
Goodwill impairment charges		2,603			—		2,603			—		2,000			10,400			—

Net income (loss), excluding goodwill impairment charges	$	(4,174	)	$	6,305	$	(6,223	)	$	2,049	$	756		$	3,101		$	3,123


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

Net income (loss) applicable to common shareholders	$	(7,388	)	$	5,617	$	(9,127	)	$	1,739	$	(1,565	)	$	(7,647	)	$	2,783
Goodwill impairment charges		2,603			—		2,603			—		2,000			10,400			—

Net income (loss) applicable to common shareholders, excluding goodwill impairment charges	$	(4,785	)	$	5,617	$	(6,524	)	$	1,739	$	435		$	2,753		$	2,783

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


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

Exhibit A: Non-GAAP Reconciliations - continued

Bank of America Corporation and Subsidiaries

Reconciliations to GAAP Financial Measures

(Dollars in millions)


	Six Months Ended June 30						Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010
	2011			2010			Second Quarter 2011			First Quarter 2011			Fourth Quarter 2010			Third Quarter 2010			Second Quarter 2010

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

Common shareholders’ equity	$	216,367		$	207,975		$	218,505		$	214,206		$	218,728		$	215,911		$	215,468
Common Equivalent Securities		—			5,848			—			—			—			—			—
Goodwill		(73,834	)		(86,225	)		(73,748	)		(73,922	)		(75,584	)		(82,484	)		(86,099	)
Intangible assets (excluding mortgage servicing rights)		(9,580	)		(11,559	)		(9,394	)		(9,769	)		(10,211	)		(10,629	)		(11,216	)
Related deferred tax liabilities		2,983			3,446			2,932			3,035			3,121			3,214			3,395

Tangible common shareholders’ equity	$	135,936		$	119,485		$	138,295		$	133,550		$	136,054		$	126,012		$	121,548


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

Shareholders’ equity	$	232,930		$	231,695		$	235,067		$	230,769		$	235,525		$	233,978		$	233,461
Goodwill		(73,834	)		(86,225	)		(73,748	)		(73,922	)		(75,584	)		(82,484	)		(86,099	)
Intangible assets (excluding mortgage servicing rights)		(9,580	)		(11,559	)		(9,394	)		(9,769	)		(10,211	)		(10,629	)		(11,216	)
Related deferred tax liabilities		2,983			3,446			2,932			3,035			3,121			3,214			3,395

Tangible shareholders’ equity	$	152,499		$	137,357		$	154,857		$	150,113		$	152,851		$	144,079		$	139,541


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

Common shareholders’ equity	$	205,614		$	215,181		$	205,614		$	214,314		$	211,686		$	212,391		$	215,181
Goodwill		(71,074	)		(85,801	)		(71,074	)		(73,869	)		(73,861	)		(75,602	)		(85,801	)
Intangible assets (excluding mortgage servicing rights)		(9,176	)		(10,796	)		(9,176	)		(9,560	)		(9,923	)		(10,402	)		(10,796	)
Related deferred tax liabilities		2,853			3,215			2,853			2,933			3,036			3,123			3,215

Tangible common shareholders’ equity	$	128,217		$	121,799		$	128,217		$	133,818		$	130,938		$	129,510		$	121,799


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

Shareholders’ equity	$	222,176		$	233,174		$	222,176		$	230,876		$	228,248		$	230,495		$	233,174
Goodwill		(71,074	)		(85,801	)		(71,074	)		(73,869	)		(73,861	)		(75,602	)		(85,801	)
Intangible assets (excluding mortgage servicing rights)		(9,176	)		(10,796	)		(9,176	)		(9,560	)		(9,923	)		(10,402	)		(10,796	)
Related deferred tax liabilities		2,853			3,215			2,853			2,933			3,036			3,123			3,215

Tangible shareholders’ equity	$	144,779		$	139,792		$	144,779		$	150,380		$	147,500		$	147,614		$	139,792


Reconciliation of period end assets to period end tangible assets

Assets	$	2,261,319		$	2,368,384		$	2,261,319		$	2,274,532		$	2,264,909		$	2,339,660		$	2,368,384
Goodwill		(71,074	)		(85,801	)		(71,074	)		(73,869	)		(73,861	)		(75,602	)		(85,801	)
Intangible assets (excluding mortgage servicing rights)		(9,176	)		(10,796	)		(9,176	)		(9,560	)		(9,923	)		(10,402	)		(10,796	)
Related deferred tax liabilities		2,853			3,215			2,853			2,933			3,036			3,123			3,215

Tangible assets	$	2,183,922		$	2,275,002		$	2,183,922		$	2,194,036		$	2,184,161		$	2,256,779		$	2,275,002

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


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

Appendix: Selected Slides from the

Second Quarter 2011 Earnings Release Presentation


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

LOGO

2Q11 Highlights

2Q11 reported net loss of $8.8B ($0.90 EPS) reflects $20.7B pre-tax mortgage related charges and $2.5B net pre-tax gains from other selected items

Excluding mortgage and selected items, net income was $3.7B or $0.33 EPS 1

Took important steps to address a substantial portion of our mortgage-related matters

Customer-focused strategy generating strong results

Credit quality continues to improve

Liquidity increasing

Deposits growing

Loans reflect growth in our corporate lending portfolio and a $6.6B reduction in loan run-off

Capital ratios remain solid; Basel III preparation continues

Strong credit reserve coverage

Efficiency initiative has begun

1 Represents a non-GAAP financial measure. Refer to Press Release for list of all adjusting items.

LOGO

Deposits

Inc/(Dec)

$ in millions 2Q11 1Q11 2Q10

Net interest income 1 $2,281 $76 $137

Noninterest income 1,020 36 (531)

Total revenue 3,301 112 (394)

Provision for credit losses 31 (2) (30)

Noninterest expense 2,599 7 27

Income tax expense 1 241 32 (147)

Net income $430 $75 ($244)

Key Indicators ($ in billions) 2Q11 1Q11 2Q10

Average deposits $426.7 $418.3 $418.5

Client brokerage assets $69.0 $66.7 $51.1

Cost per $ deposit 2.44% 2.60% 2.46%

Rates paid on deposits 0.29% 0.32% 0.45%

Return on average economic capital 30.4% 25.4% 43.5%

Commentary

Net income of $430MM in 2Q11 increased $75MM from 1Q11

2% deposit growth from 1Q11 due to seasonal tax refunds and prolonged low interest rate environment

Rates paid on deposits decreased 3bps from 1Q11 to 29bps

Improvement in checking account closures and new accounts reflects continued focus on quality relationships and retention

Second consecutive quarter of positive net new accounts

Cost per $ deposit improved 16bps to 2.44% from 1Q11 highlighting our efficiency and competitive edge in maintaining a low cost distribution channel

Customer Solutions pilot trending above expectations

Nationwide roll out is expected to begin in early 2012

Merrill Edge® continues to grow as brokerage assets increased 3% from 1Q11

1 Fully taxable-equivalent basis.

LOGO

Global Wealth & Investment Management

Inc/(Dec)

$ in millions 2Q11 1Q11 2Q10

Net interest income 1 $1,571 $2 $128

Noninterest income 2,919 (4) 173

Total revenue 4,490 (2) 301

Provision for credit losses 72 26 (50)

Noninterest expense 3,631 32 362

Income tax expense 1 281 (33) (188)

Net income $506 ($27) $177

Key Indicators ($ in billions) 2Q11 1Q11 2Q10

Total client balances $2,201.9 $2,226.7 $2,047.0

Average loans and leases $102.2 $100.9 $98.8

Average deposits $255.2 $258.5 $226.3

Liquidity AUM flows ($3.8) ($6.7) ($9.8)

Long-term AUM flows $4.5 $14.2 $1.4

Financial advisors (in thousands) 16.2 15.7 15.3

Pre-tax margin 17.5% 18.9% 19.1%

Return on average economic capital 30.0% 30.4% 19.1%

Commentary

Net income of $506MM was down $27MM from 1Q11 on higher expenses from increased investment in advisors and higher credit costs

Revenue nearly flat to 1Q11 record levels

Record Asset Management fees driven by market and long-term AUM flows

Lower brokerage revenue reflecting lower market activity

Client balances fell by 1% driven by lower market valuations and seasonal outflow in deposits and brokerage offset by AUM inflows

Average loans up $1.3B from 1Q11, the 5th consecutive quarter of loan growth

Provision expense increased from decline in residential mortgage valuations

8th consecutive quarter of increased client facing associates driven by the addition of more than 500 financial advisors in 2Q11

1 Fully taxable-equivalent basis.

LOGO

Global Commercial Banking

Inc/(Dec)

$ in millions 2Q11 1Q11 2Q10

Net interest income 1 $1,827 ($23) ($270)

Noninterest income 983 182 197

Total revenue 2,810 159 (73)

Provision for credit losses (417) (496) (1,040)

Noninterest expense 1,068 (38) 94

Income tax expense 1 778 235 307

Net income $1,381 $458 $566

Key Indicators ($ in billions) 2Q11 1Q11 2Q10

Average loans and leases $189.3 $192.4 $206.6

Nonperforming loans, leases and

foreclosed properties $7.4 $8.3 $10.0

Average deposits $166.5 $160.2 $145.5

Credit revenue $1.6 $1.5 $1.6

Treasury revenue $1.2 $1.2 $1.2

Return on average economic capital 27.9% 18.0% 14.1%

Commentary

Net income of $1.4B improved $458MM from 1Q11 driven by improved credit costs and higher revenue Average deposits grew $6.3B as customers remain highly liquid Average loans declined $3.1B from 1Q11

Commercial Real Estate declined $2.2B

Commercial and Industrial increased $467MM driven by Middle Market Middle market revolver utilization rates declined slightly from 35.3% to 34.5% Asset quality improved

Net charge-offs declined $193MM from 1Q11 to $321MM, primarily in Commercial Real Estate

Nonperforming loans, leases and foreclosed properties declined from $8.3B in 1Q11 to $7.4B in 2Q11

1 Fully taxable-equivalent basis.

LOGO

Global Banking and Markets

IInc/(Dec) $ in millions 2Q11 1Q11 2Q10

Net interest income 1 $1,791 ($246) ($211) Noninterest income 5,005 (844) 1,103 Total revenue 6,796 (1,090) 892 Provision for credit losses (82) 120 51 Noninterest expense 4,713 (9) (22) Income tax expense 1 607 (625) 203 Net income $1,558 ($576) $660

Key Indicators ($ in billions) 2Q11 1Q11 2Q10

Average loans and leases $109.5 $103.7 $95.8 Average deposits $118.1 $112.0 $112.6 Average trading-related assets $460.2 $458.4 $522.3 Sales and trading revenue $3.8 $4.9 $3.1 Investment banking fees $1.6 $1.5 $1.3 Corporate banking revenue $1.4 $1.5 $1.5 Percent of profitable trading days 97% 100% 81% Return on average economic capital 23.4% 28.0% 9.1% $460.2

1 Fully taxable-equivalent basis.

Commentary

Net income of $1.6B fell seasonally $576MM from 1Q11 on lower sales and trading results partially offset by higher investment banking fees

Sales and trading revenue of $3.8B declined $1.1B from 1Q11 but increased $666MM from 2Q10

– Results include DVA gains of $121MM in 2Q11 compared to losses of $357MM in 1Q11 and gains of $77MM in 2Q10

– As market uncertainty increased towards the end of the quarter due to European debt crisis and global economic concerns, we reduced risk

– Sales and trading RWA declined $37B as we reduced legacy assets, exited proprietary trading and continued to optimize the balance sheet

Investment banking fees excluding self-led were a record high since the Merrill Lynch acquisition

Average loan and lease balances increased $5.8B from 1Q11, primarily from international growth in commercial loans and trade finance in the Corporate Bank

LOGO

Consumer Real Estate Services (CRES)

2Q11

Less Mortgage- Adjusted 2Q11

2Q11 reported related and Other CRES Less

$ in millions results Selected Selected Items 1

Adjustments

Total revenue, net of interest expense 2 ($11,315) ($14,786) $3,471

Provision for credit losses 1,507 - 1,507

Noninterest expense 8,647 5,219 3,428

Income tax benefit 2 (6,949) (6,439) (510)

Net loss ($14,520) ($13,566) ($954)

1Q11

Less Mortgage- Adjusted 1Q11

1Q11 reported related and Other CRES Less

$ in millions results Selected Selected Items 1

Adjustments

Total revenue, net of interest expense 2 $2,063 ($1,541) $3,604

Provision for credit losses 1,098 - 1,098

Noninterest expense 4,801 1,659 3,142

Income tax benefit 2 (1,421) (1,184) (237)

Net loss ($2,415) ($2,016) ($399)

Selected CRES related items ($ in millions) 3 2Q11 1Q11

Representation and warranties provision ($14,037) ($1,013)

MSR write-down 4 (1,501) (528)

Balboa sale gain, net of fees 752 -

Goodwill impairment charge (2,603) -

Litigation expense (1,900) (785)

Assessments and waivers costs (716) (874)

Key Indicators ($ in billions) 2Q11 1Q11

Average loans and leases $121.7 $120.6

MSR, end of period 12.4 15.3

Capitalized MSR (bps) 78 95

Servicing portfolio (EOP, $ in trillions) 2.0 2.0

Commentary

Net loss of $14.5B includes $14.0B in representation and warranties provision as well as other charges for the MSR write-down related to higher servicing costs, goodwill impairment, litigation expense and assessments and waivers costs related to foreclosure delays, and also includes the Balboa gain

Excluding selected items noted, CRES reported an adjusted net loss of $954MM

The adjusted loss was $555MM greater than adjusted 1Q11 results as revenue was impacted by the sale of the insurance business and expenses were impacted by increased operating costs

Provision expense increased $409MM as a result of the non-purchased credit-impaired (PCI) portfolio

During the quarter, the MSR asset decreased by $2.9B from $15.3B in 1Q11 to $12.4B

The capitalized MSR rate ended the period at 78bps vs. 95bps in 1Q11

1 Represents a non-GAAP financial measure.

2 Fully taxable-equivalent basis.

3 Items shown are on a pre-tax basis.

4 Excludes net positive hedge activity of approximately $628MM and $531MM in 2Q11 and 1Q11, respectively.

LOGO

Home Loans Business (within CRES)

2Q11

Less Mortgage-

related and Other Home Loans less

$ in millions Home Loans Selected Selected Items 1

Adjustments

Total revenue, net of interest expense 2 $2,513 $706 $1,807

Provision for credit losses 121 - 121

Noninterest expense 1,553 - 1,553

Income tax expense 2 308 261 47

Net income $531 $445 $86

1Q11

Less Mortgage-

related and Other Home Loans less

$ in millions Home Loans Selected Selected Items 1

Adjustments

Total revenue, net of interest expense 2 $1,791 $- $1,791

Provision for credit losses - - -

Noninterest expense 1,668 - 1,668

Income tax expense 2 46 - 46

Net income $77 $- $77

Selected mortgage-related and other items ($ in millions) 3 2Q11 1Q11

Representations and warranties provision ($46) $-

Balboa sale gain (net of fees) 752 -

Key Indicators ($ in billions) 2Q11 1Q11

Total Corporation Home Loan Originations

First mortgage $40.4 $56.7

Home equity 1.1 1.7

Average loans and leases 55.3 56.0

Commentary on Home Loans Business

Recorded net income of $531MM in 2Q11

Excluding items noted, the business was marginally profitable in 2Q11 and slightly higher than 1Q11

Originations of $40.4B first-lien mortgages across the enterprise in 2Q11 were down 29% from 1Q11

Expenses were down as personnel was reduced to reflect the lower origination volumes

Commentary on Other 4

Other within CRES recorded a net loss of $3.2B which includes the results of the MSR and the goodwill impairment charge of $2.6B

MSR valuation changes net of hedge were $876MM unfavorable to 1Q11driven by the change in value of the MSRs related to higher servicing costs

Higher estimated costs to service given changes to the ongoing servicing of delinquent loans

Additional servicing obligations under the settlement agreement and consent orders

Extension of default workout timelines in judicial states

1 Represents a non-GAAP financial measure.

2 Fully taxable-equivalent basis.

3 Items shown are on a pre-tax basis.

4 CRES consists of Home Loans, Legacy Asset Servicing and Other; see Other (within CRES) for additional information on Other.

LOGO

Legacy Asset Servicing Business (within CRES)

2Q11

Less Mortgage- Legacy Asset

Legacy Asset related and Other Services less

$ in millions Services Selected Selected Items 1

Adjustments

Total revenue, net of interest expense 2 ($12,924) ($13,991) $1,067

Provision for credit losses 1,386 - 1,386

Noninterest expense 4,491 2,616 1,875

Income tax benefit 2 (6,924) (6,145) (779)

Net loss ($11,877) ($10,462) ($1,415)

1Q11

Less Mortgage- Legacy Asset

Legacy Asset related and Other Services less

$ in millions Services Selected Selected Items 1

Adjustments

Total revenue, net of interest expense 2 $279 ($1,013) $1,292

Provision for credit losses 1,098 - 1,098

Noninterest expense 3,133 1,659 1,474

Income tax benefit 2 (1,464) (989) (475)

Net loss ($2,488) ($1,683) ($805)

Selected mortgage-related items ($ in millions) 3 2Q11 1Q11

Representations and warranties provision ($13,991) ($1,013)

Litigation (1,900) (785)

Assessments and waivers costs (716) (874)

Key Indicators ($ in billions) 2Q11 1Q11

Average loans and leases $66.4 $64.6

# of loans serviced (in thousands) 4,362 4,513

# of loans 60 day delinquent (in thousands) 1,211 1,274

Commentary

Net loss of $11.9B in 2Q11

Excluding selected large items noted, the net loss was $1.4B and widened $0.6B over 1Q11 driven in part by higher servicing costs as well as higher credit costs

As previously announced, 2Q11 included $14.0B R&W provision expense

$8.6B settlement on legacy Countrywide non- GSE private-label securitizations

$5.4B additional reserve on other non-GSE, and to a lesser extent GSE

Noninterest expense adjusted for the items noted increased $402MM to $1.9B as staffing levels increased to elevated levels

Provision expense increased $288MM driven by reserve increases in the non-PCI portfolio

Number of first mortgage loans serviced by Legacy Asset Servicing declined by 151K in 2Q11 driven by foreclosure and short sales

60+ day delinquencies declined 5% to 1.2MM units

1 Represents a non-GAAP financial measure.

2 Fully taxable-equivalent basis.

LOGO

All Other 1

Inc/(Dec)

$ in millions 2Q11 1Q11 2Q10

Total revenue, net of interest expense 2

Provision for credit losses

Noninterest expense

Income tax expense 2

Net income (loss)

$1,865 $738 ($1,262)

1,663 (136) 417

316 (1,178) (797)

102 1,052 457

($216) $1,000 ($1,339)

Key Indicators ($ in billions) 2Q11 1Q11 2Q10

Average loans and leases

Average deposits

Book value of Global Principal Investments

$258.4 $258.4 $257.3

$46.7 $48.6 $64.7

$10.8 $11.2 $13.0

Commentary

Net loss of $216MM is a result of elevated credit costs related to valuation refreshes on consumer real estate loans and lower revenue

Revenue is impacted by the following selected items:

$ in millions 2Q11 1Q11 2Q10

FVO on structured notes $214 ($586) $1,173

Gains on sales of debt securities 831 468 14

Equity investment income 1,139 1,408 2,253

Noninterest expense improved as 1Q included the annual retirement eligible stock-based compensation expense

1 All Other includes the discontinued real estate business, Global Principal Investing business, activities of our strategic investment portfolio and our discretionary portfolio used to provide interest rate risk management on our balance sheet.

2 Fully taxable-equivalent basis.

LOGO

Expenses

2Q11 Noninterest Expense ($B)

2Q11 1Q11 4Q10

Total noninterest expense $22.9 $20.3 $20.9

Selected large mortgage-related items

Litigation expense 1.9 0.8 0.6

Mortgage-related assessments and waivers costs 0.7 0.9 0.2

CRES goodwill impairment charge 2.6 - 2.0

Commentary vs. 1Q11

Expense increased $2.6B from 1Q11

Excluding the selected mortgage-related items in the quarter, noninterest expense was in line with 1Q11, excluding the $1.0B cost of retirement eligible stock-based compensation expense which only happens in the first quarter

2Q included increased servicing costs in our mortgage business as well as increased costs of adding client-facing professionals across targeted growth areas offset by reduced personnel in other areas of the company

Among the many client facing associates added in growth areas during the quarter were more than 500 financial advisors and nearly 100 small business bankers

Average FTE in 2Q11 287,839 vs. 288,062 in 1Q11

Company-wide efficiency initiative launched (“New BAC”)

Team of internal and external experts driving process

Tangible results on expense levels from New BAC are expected in 2012

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Consumer Credit Trends

Inc/(Dec)

2Q11

$ in millions 1Q11 2Q10

Net charge-offs $5,162 ($183) ($2,980)

30+ performing delinquencies 1 13,517 (1,594) (5,290)

Nonperforming loans and foreclosed properties 21,275 (512) (2,153)

Allowance for loan and lease losses 31,884 (1,484) (4,646)

% coverage of loans and leases 5.04% (22)bps (58)bps

# times of annualized net charge-offs 1.54x 0.00x 0.42x

# times of annualized net charge-offs excl. PCI 1.14x (0.04)x 0.18 x

Consumer Net Charge-offs ($MM)

$5,000

$4,000

$3,000

$2,360

$2,000

$1,263

$1,000 $1,104

$366

$- $43

2Q10 3Q10 4Q10 1Q11 2Q11

Residential mortgage Home equity

Credit card Direct/Indirect

Other Consumer

Commentary

Net charge-offs declined $183MM in 2Q11 compared to 1Q11

Driven by continued improvement in the U.S. credit card portfolio partially offset by increases in consumer real estate

30+ performing delinquencies (excluding fully insured home loans) improved 11% from 1Q11

Nonperforming loans and foreclosed properties declined 2% from 1Q11

Total provision expense was $3.8B ($5.2B charge- offs and reserve reduction of $1.4B)

2Q11 included $412MM reserve addition for PCI loans driven primarily by deterioration in home prices

$31.9B allowance for loan and lease losses provides coverage for 5.04% of loans compared to $33.4B and 5.26% coverage in 1Q11

Allowance covers 1.54 times current period annualized net charge-offs; remains unchanged from 1Q11 (excluding PCI allowance: 1.14 times in 2Q11 vs. 1.18 times in 1Q11)

1 Excludes FHA-insured loans and other loans individually insured under long-term credit protection agreements.

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Residential Mortgage and Home Equity 30+ Day Performing Delinquencies

Residential Mortgage, 30+ Days Past Due ($B, %) 1, 2

$8.0 3.2% 3.5%

2.7% 2.8% 2.8% 3.0%

$7.1 2.6% 2.5%

2.5%

$6.0 2.1%

2.0%

$5.5

$5.0 $5.3 $5.2 1.5%

$4.0 $4.4 $4.3 1.0%

0.5%

$2.0 0.0%

2Q08 2Q09 2Q10 3Q10 4Q10 1Q11 2Q11

30+ day past due 30+ day past due %

Home Equity, 30+ Days Past Due ($B, %) 2

$2.5 2.0%

1.6%

1.5% 1.5% 1.5%

1.4% 1.4%

1.3% 1.5%

$2.0

$2.0 $2.0 $2.0 $1.9

$1.8 1.0%

$1.5 $1.7

$1.5 0.5%

$1.0 0.0%

2Q08 2Q09 2Q10 3Q10 4Q10 1Q11 2Q11

30+ day past due 30+ day past due %

1 Excludes FHA-insured loans and other loans individually insured under long-term credit protection agreements.

2 Excludes PCI loans.

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Consumer Nonperforming Loans, Leases and Foreclosed Properties (NPAs)

Residential Mortgage NPAs ($MM)

$25,000

$19,504 $19,396

$20,000 $18,676 $18,493 $17,971

$15,000

12,835 13,393

13,734 13,703 13,364

$10,000

$5,000

6,669 6,003

4,942 4,790 4,607

2Q10 3Q10 4Q10 1Q11 2Q11

Resi<180 DPD Resi>180 DPD

Home Equity NPAs ($MM)

$4,000

$3,500

$3,010 $2,768

$3,000 $2,763

$2,633

807 $2,417

$2,500

878 985

$2,000 1,008

984

$ 1,500

$1,000 2,203

1,890 1,778

1,625 1,433

$500

2Q10 3Q10 4Q10 1Q11 2Q11

Home Equity<180 DPD Home Equity>180 DPD

Commentary

Consumer Real Estate NPAs continue to show improvement

Inflows of nonaccrual loans are steadily declining; down 25% from 2Q10

Paydowns and payoffs increasing

Charge-offs remain elevated on refreshed valuation losses even though frequency of loss continues to improve

Foreclosures have restarted (principally non-judicial states) which helped reduce the backlog

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Commercial Credit Trends

Inc/(Dec)

2Q11

$ in millions 1Q11 2Q10

Net charge-offs $503 ($180) ($912)

Nonperforming loans, leases and foreclosed

properties 8,783 (1,073) (3,387)

Reservable Criticized 35,110 (4,325) (15,209)

Allowance for loan and lease losses 5,428 (1,047) (3,297)

% coverage of loans and leases 1 1.82% (38)bps (107)bps

# times annualized net charge-offs 2.69x 0.35x 1.15x

Commercial Net Charge-offs 1 ($MM)

$800

$600

$400

$275

$200

$163

$73

2Q10 3Q10 4Q10 1Q11 2Q11

Commercial & Industrial Small business Commercial real estate

1 Excludes FVO loans.

Commentary

Net charge-offs declined $180MM in 2Q11 compared to 1Q11

Continued improvement in Commercial Real Estate resulted in both higher recoveries and lower charge-offs Nonperforming loans, leases and foreclosed properties have declined for 6 consecutive quarters, a 35% decline from 4Q09 peak

Reservable criticized decreased $4.3B (11%) from 1Q11 and $15.2B (30%) from 2Q10 Total provision benefit of $523MM included a reserve reduction of $1.0B $5.4B allowance for loan and lease losses now covers 2.69 times current period annualized net charge-offs compared to 2.34 times in 1Q11

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Selected Items in 2Q11

2Q11 Selected Items Included in Earnings ($B, except EPS)

Approximate

Pre-tax EPS Impact 1

Revenue

Mortgage-related

Representations and warranties provision ($14.0) ($0.88)

MSR negative valuation from servicing changes (1.5) (0.09)

Asset sales and other selected

Securities gains 0.9 0.06

CCB dividend 0.8 0.05

Gain on sale of Balboa 0.8 0.05

Gain on sale of BlackRock stake 0.4 0.02

Strategic investment impairment (0.5) (0.03)

Other 0.1 0.00

Expense

Mortgage-related

Litigation expense (1.9) (0.11)

Assessments and waivers costs (0.7) (0.04)

Goodwill impairment (2.6) (0.26)

1 Reflects estimated diluted EPS impact

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2Q11 Results by Business Segment

2Q11 Results by Business Segment ($MM)

Consumer Global Global Global

Total Global Card Wealth &

Deposits Real Estate Commercial Banking & All Other

Corporation Services Investment

Services Banking Markets Management

Net interest income 1, 2 $11,493 $2,281 $3,611 $579 $1,827 $1,791 $1,571($167)

Card income 1,967 1 1,833—84 27 21 1

Service charges 2,012 965 5—576 442 21 3

Investment and brokerage services 3,009 43—- 7 587 2,378(6)

Investment banking income (loss) 1,684—-(27) 11 1,637 94(31)

Equity investment income (loss) 1,212—1—53(5) 24 1,139

Trading account profits (losses) 2,091——(13) 2,071 35(2)

Mortgage banking income (loss)(13,196)—-(13,018)—8 4(190)

Insurance income (loss) 400 1(23) 299—- 83 40

Gains on sales of debt securities 899—- 17—51—831

All other income 1,912 10 109 835 265 187 259 247

Total noninterest income (loss) 1,990 1,020 1,925(11,894) 983 5,005 2,919 2,032

Total revenue, net of interest expense 1, 2 13,483 3,301 5,536(11,315) 2,810 6,796 4,490 1,865

Total noninterest expense 22,856 2,599 1,882 8,647 1,068 4,713 3,631 316

Pre-tax, pre-provision earnings (loss) 1, 2(9,373) 702 3,654(19,962) 1,742 2,083 859 1,549

Provision for credit losses 3,255 31 481 1,507(417)(82) 72 1,663

Income (loss) before income taxes(12,628) 671 3,173(21,469) 2,159 2,165 787(114)

Income tax expense (benefit) 1, 2(3,802) 241 1,138(6,949) 778 607 281 102

Net income (loss)($8,826) $430 $2,035($14,520) $1,381 $1,558 $506($216)

1 Fully taxable-equivalent basis.

2 Represents a non-GAAP financial measure.

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Other (within CRES)

2Q11

Less Mortgage-

Other related and Other Other less

$ in millions Selected Selected Items 1

Adjustments

Total revenue, net of interest expense 2($904)($1,501) $597

Noninterest expense 2,603 2,603 -

Income tax expense (benefit) 2(333)(555) 222

Net income (loss)($3,174)($3,549) $375

1Q11

Less Mortgage-

Other related and Other Other less

$ in millions Selected Selected Items 1

Adjustments

Total revenue, net of interest expense 2($7)($528) $521

Income tax expense (benefit) 2(3)(195) 192

Net income (loss)($4)($333) $329

Selected mortgage-related items ($ in millions) 3 2Q11 1Q11

Goodwill impairment charge($2,603) $-

MSR write-down 4(1,501)(528)

1 Represents a non-GAAP financial measure.

2 Fully taxable-equivalent basis.

3 Items shown are on a pre-tax basis.

4 Excludes net positive hedge activity of approximately $628MM and $531MM in 2Q11 and 1Q11, respectively.

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Impact of FHA and Other Fully Insured Home Loans on Delinquencies 1

FHA and Other Fully Insured Home Loans ($MM)

2Q10 3Q10 4Q10 1Q11 2Q11

FHA and Other Fully insured Home Loans 30+ Day Performing Delinquencies $17,053 $18,256 $19,150 $22,961 $23,802

Change from prior period 2,066 1,203 894 3,811 841

30+ Day Performing Delinquency Amounts

Total consumer as reported 35,860 36,167 36,254 38,072 37,319

Total consumer excluding FHA and other fully insured home loans 2 18,807 17,911 17,104 15,111 13,517

Residential mortgages as reported 22,536 23,573 24,267 27,381 28,091

Residential mortgages excluding FHA and other fully insured home loans 2 5,483 5,317 5,117 4,420 4,289

30+ Day Performing Delinquency Ratios

Total consumer as reported 5.52% 5.70% 5.63% 6.00% 5.90%

Total consumer excluding FHA and other fully insured home loans 2 3.24% 3.23% 3.16% 2.90% 2.63%

Residential mortgages as reported 9.18% 9.69% 9.41% 10.45% 10.55%

Residential mortgages excluding FHA and other fully insured home loans 2 2.72% 2.82% 2.84% 2.57% 2.52%

Commentary vs. 1Q11

During 2Q11 we continued to repurchase delinquent fully-insured home loans which masks the continued improvement in our 30+ day performing delinquency trends

– Total consumer 30+ day performing delinquency excluding fully-insured home loans improved for the 9th consecutive quarter, down $1.6B

– U.S. credit card of $831MM led the decline while first- and second-lien mortgages declined as well

1 Includes FHA-insured loans and loans individually insured under long-term credit protection agreements.

2 Excludes PCI loans.

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Home Loan Asset Quality Key Indicators

Home Loan Asset Quality Indicators ($MM)

Residential Mortgage 1 Home Equity Discontinued Real Estate 1

2Q11 1Q11 2Q11 1Q11 2Q11 1Q11

Excluding Excluding

Countrywide Countrywide Excluding Excluding Excluding Excluding

Purchased Purchased Countrywide Countrywide Countrywide Countrywide

As As As As As As

Credit- Credit- Purchased Purchased Purchased Purchased

Reported Reported Reported Reported Reported Reported

impaired and impaired and Credit- Credit- Credit- Credit-

Fully Insured Fully Insured impaired impaired impaired impaired

Loans Loans

Loans end of period $266,333 $169,865 $261,934 $171,996 $130,654 $118,339 $133,629 $121,160 $12,003 $1,126 $12,694 $1,399

Loans average 264,258 171,285 262,049 176,153 131,786 119,416 136,089 123,589 12,450 1,292 12,899 1,424

Net charge-offs $1,104 $1,104 $905 $905 $1,263 $1,263 $1,179 $1,179 $26 $26 $20 $20

% of average loans 1.68% 2.58% 1.40% 2.08% 3.84% 4.24% 3.51% 3.87% 0.84% 8.07% 0.61% 5.57%

Allowance for loan losses $5,845 $4,600 $5,369 $4,276 $13,111 $8,037 $12,857 $7,915 $1,997 $78 $1,871 $61

% of loans 2.19% 2.71% 2.05% 2.49% 10.03% 6.79% 9.62% 6.53% 16.64% 6.91% 14.74% 4.39%

Average refreshed (C)LTV 2 85 83 88 86 83 80

90%+ refreshed (C)LTV 2 38% 36% 47% 44% 32% 28%

Average refreshed FICO 715 714 725 723 636 637

% below 620 FICO 15% 15% 12% 13% 47% 46%

1 Excludes fair value option loans which were added to the residential mortgage and discontinued real estate portfolios beginning in 2Q11.

2 Loan-to-value (LTV) calculations apply to the residential mortgage and discontinued real estate portfolio. Combined loan-to-value (CLTV) calculations apply to the home equity portfolio.

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Home Equity Loans

Loan Balances ($B, end of period)

$200.0

$146.3 $141.6 $150.0 $138.0 $133.6 $130.7

$100.0

$50.0

$0.0

2Q10 3Q10 4Q10 1Q11 2Q11

Non-purchased credit-impaired second lien First-lien Purchased credit-impaired

Net Charge-offs ($B) 1

$3.0 2Q10 includes $128MM

of collateral dependent

modified loans

$2.0 $1.7

$1.4

$1.3 $1.3

$1.2

$1.0

$0.0

2Q10 3Q10 4Q10 1Q11 2Q11

Allowance for Non-purchased Credit-impaired Loans ($B)

$10.0 $8.7 $8.5 $8.4 $7.9 $8.0 $8.0

$6.0 $4.0 $2.0

$0.0

2Q10 3Q10 4Q10 1Q11 2Q11

Home Equity Portfolio Characteristics

91% of portfolio is stand-alone originations versus piggy back loans $12.3B legacy Countrywide PCI loan portfolio, for which we have a $5.1B allowance at 6/30/11 For the non-PCI portfolio:

– $25.1B are in first-lien position; $93.3B are second-lien positions

• Of second-liens, ~43% or $40.4B 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 $10.5B available for second liens

– Additionally, on 94% of second-liens with CLTVs greater than 100%, the customer is current Allowance on the non-PCI home equity portfolio is $8.0B

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