Supplemental Information

EX-99.3 4 dex993.htm SUPPLEMENTAL INFORMATION Supplemental Information

Exhibit 99.3

LOGO

Supplemental Information

Third Quarter 2010

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


Bank of America Corporation and Subsidiaries
Table of Contents		Page

Consolidated Financial Highlights		2
Supplemental Financial Data		3
Consolidated Statement of Income		4
Consolidated Balance Sheet		5,6
Capital Management		7
Core Net Interest Income		8
Quarterly Average Balances and Interest Rates		9, 10
Quarterly Average Balances and Interest Rates - Isolating Hedge Income/Expense		11,12
Year-to-Date Average Balances and Interest Rates		13,14
Year-to-Date Average Balances and Interest Rates - Isolating Hedge Income/Expense		15,16
Debt Securities and Available-for-Sale Marketable Equity Securities		17
Quarterly Results by Business Segment		18
Year-to-Date Results by Business Segment		19
Deposits
Total Segment Results		20
Key Indicators		21
Global Card Services
Total Segment Results		22
Key Indicators		23
Home Loans & Insurance
Total Segment Results		24
Key Indicators		25
Global Commercial Banking
Total Segment Results		26
Key Indicators		27
Global Banking & Markets
Total Segment Results		28
Key Indicators		29
Investment Banking Product Rankings		30
Super Senior Collateralized Debt Obligation Exposure		31
Global Wealth & Investment Management
Total Segment Results		32
Key Indicators		33
All Other
Total Segment Results		34
Equity Investments		35
Outstanding Loans and Leases		36
Quarterly Average Loans and Leases by Business Segment		37
Commercial Credit Exposure by Industry		38
Net Credit Default Protection by Maturity Profile and Credit Exposure Debt Rating		39
Selected Emerging Markets		40
Nonperforming Loans, Leases and Foreclosed Properties		41
Nonperforming Loans, Leases and Foreclosed Properties Activity		42
Quarterly Net Charge-offs/Losses and Net Charge-off/Loss Ratios		43
Year-to-Date Net Charge-offs/Losses and Net Charge-off/Loss Ratios		44
Allocation of the Allowance for Credit Losses by Product Type		45

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

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


		1

Bank of America Corporation and Subsidiaries

Consolidated Financial Highlights

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


	Nine Months Ended September 30							Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
	2010			2009				Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
Income statement
Net interest income	$	39,084		$	35,550			$	12,435		$	12,900		$	13,749		$	11,559		$	11,423
Noninterest income		48,738			59,017				14,265			16,253			18,220			13,517			14,612
Total revenue, net of interest expense		87,822			94,567				26,700			29,153			31,969			25,076			26,035
Provision for credit losses		23,306			38,460				5,396			8,105			9,805			10,110			11,705
Noninterest expense ⁽¹⁾		50,394			48,140				16,395			16,745			17,254			15,852			15,712
Goodwill impairment		10,400			—				10,400			—			—			—			-
Merger and restructuring charges		1,450			2,188				421			508			521			533			594
Income tax expense (benefit)		3,266			(691	)			1,387			672			1,207			(1,225	)		(975	)
Net income (loss)		(994	)		6,470				(7,299	)		3,123			3,182			(194	)		(1,001	)
Preferred stock dividends and accretion ⁽²⁾		1,036			3,478				348			340			348			5,002			1,240
Net income (loss) applicable to common shareholders		(2,030	)		2,992				(7,647	)		2,783			2,834			(5,196	)		(2,241	)
Diluted earnings (loss) per common share		(0.21	)		0.39				(0.77	)		0.27			0.28			(0.60	)		(0.26	)
Average diluted common shares issued and outstanding ⁽³⁾		9,706,951			7,449,911				9,976,351			10,029,776			10,005,254			8,634,565			8,633,834
Dividends paid per common share ⁽³⁾	$	0.03		$	0.03			$	0.01		$	0.01		$	0.01		$	0.01		$	0.01

Performance ratios
Return on average assets		n/m			0.35		%		n/m			0.50	%		0.51	%		n/m			n/m
Return on average common shareholders’ equity		n/m			2.26				n/m			5.18			5.73			n/m			n/m
Return on average tangible common shareholders’ equity ⁽⁴⁾		n/m			4.82				n/m			9.19			9.79			n/m			n/m
Return on average tangible shareholders’ equity ⁽⁴⁾		n/m			5.83				n/m			8.98			9.55			n/m			n/m
At period end
Book value per share of common stock ⁽⁵⁾	$	21.17		$	22.99			$	21.17		$	21.45		$	21.12		$	21.48		$	22.99
Tangible book value per share of common stock ⁽⁴⁾		12.91			12.00				12.91			12.14			11.70			11.94			12.00
Market price per share of common stock:
Closing price	$	13.10		$	16.92			$	13.10		$	14.37		$	17.85		$	15.06		$	16.92
High closing price for the period		19.48			17.98				15.67			19.48			18.04			18.59			17.98
Low closing price for the period		12.32			3.14				12.32			14.37			14.45			14.58			11.84
Market capitalization		131,442			146,363				131,442			144,174			179,071			130,273			146,363

Number of banking centers - domestic		5,879			6,008				5,879			5,900			5,939			6,011			6,008
Number of branded ATMs - domestic		17,929			18,254				17,929			18,078			18,135			18,262			18,254
Full-time equivalent employees		284,169			285,778				285,822			283,224			283,319			283,055			282,457

(1)

Excludes merger and restructuring charges and goodwill impairment charge.

(2)

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

(3)

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

(4)

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

(5)

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

n/m

= not meaningful

Certain

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


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

Bank of America Corporation and Subsidiaries

Supplemental Financial Data

(Dollars in millions, except per share information)

Fully taxable-equivalent basis data ⁽¹⁾


	Nine Months Ended September 30						Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
	2010			2009			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
Net interest income	$	39,984		$	36,514		$	12,717		$	13,197		$	14,070		$	11,896		$	11,753
Total revenue, net of interest expense		88,722			95,531			26,982			29,450			32,290			25,413			26,365
Net interest yield ⁽²⁾		2.81	%		2.65	%		2.72	%		2.77	%		2.93	%		2.62	%		2.61	%
Efficiency ratio		70.16			52.68			100.87			58.58			55.05			64.47			61.84

(1)

Fully taxable-equivalent basis is a non-GAAP measure. Fully taxable-equivalent basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on page 46-47).

(2)

Calculation includes fees earned on overnight deposits placed with the Federal Reserve of $305 million and $249 million for the nine months ended September 30, 2010 and 2009; $107 million, $106 million, and $92 million for the third, second and first quarters of 2010, and $130 million and $107 million for the fourth and third quarters of 2009, respectively. For more information see Quarterly and Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis on pages 9-10 and 13-14.

Performance ratios, excluding goodwill impairment charge ⁽¹⁾

Nine Months Ended
September 30
2010

Third
Quarter
2010

Per common share information

Earnings

0.83

0.27

Diluted earnings

0.82

0.27

Efficiency ratio ⁽²⁾

58.43

62.33

Return on average assets

0.51

0.52

Return on average common shareholders’ equity

5.23

5.06

Return on average tangible common shareholders’

equity ⁽³⁾

10.36

9.77

Return on average tangible shareholders’ equity ⁽³⁾

9.03

8.54

(1)

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

(2)

Fully taxable-equivalent basis is a non-GAAP measure. Fully taxable-equivalent basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on page 46-47).

(3)

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

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


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

Bank of America Corporation and Subsidiaries

Consolidated Statement of Income

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


	Nine Months Ended September 30						Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
	2010			2009			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
Interest income
Interest and fees on loans and leases	$	38,847		$	37,298		$	12,485		$	12,887		$	13,475		$	11,405		$	11,620
Interest on debt securities		8,638			10,088			2,605			2,917			3,116			2,859			2,975
Federal funds sold and securities borrowed or purchased under agreements to resell		1,346			2,567			441			457			448			327			722
Trading account assets		5,180			6,223			1,641			1,796			1,743			1,721			1,843
Other interest income		3,196			4,095			1,037			1,062			1,097			1,333			1,363

Total interest income		57,207			60,271			18,209			19,119			19,879			17,645			18,523


Interest expense
Deposits		3,103			6,335			950			1,031			1,122			1,472			1,710
Short-term borrowings		2,557			4,854			848			891			818			658			1,237
Trading account liabilities		2,010			1,484			635			715			660			591			455
Long-term debt		10,453			12,048			3,341			3,582			3,530			3,365			3,698

Total interest expense		18,123			24,721			5,774			6,219			6,130			6,086			7,100

Net interest income		39,084			35,550			12,435			12,900			13,749			11,559			11,423

Noninterest income
Card income		5,981			6,571			1,982			2,023			1,976			1,782			1,557
Service charges		7,354			8,282			2,212			2,576			2,566			2,756			3,020
Investment and brokerage services		8,743			8,905			2,724			2,994			3,025			3,014			2,948
Investment banking income		3,930			3,955			1,371			1,319			1,240			1,596			1,254
Equity investment income		3,748			7,988			357			2,766			625			2,026			843
Trading account profits		9,059			10,760			2,596			1,227			5,236			1,475			3,395
Mortgage banking income		4,153			7,139			1,755			898			1,500			1,652			1,298
Insurance income		1,468			2,057			75			678			715			703			707
Gains on sales of debt securities		1,654			3,684			883			37			734			1,039			1,554
Other income (loss)		3,498			1,870			433			1,861			1,204			(1,884	)		(1,167	)
Other-than-temporary impairment losses on available-for-sale debt securities ⁽¹⁾:
Total other-than-temporary impairment losses		(1,616	)		(2,671	)		(156	)		(462	)		(1,819	)		(837	)		(847	)
Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income		766			477			33			336			1,218			195			50

Net impairment losses recognized in earnings on available-for-sale debt securities		(850	)		(2,194	)		(123	)		(126	)		(601	)		(642	)		(797	)

Total noninterest income		48,738			59,017			14,265			16,253			18,220			13,517			14,612

Total revenue, net of interest expense		87,822			94,567			26,700			29,153			31,969			25,076			26,035

Provision for credit losses		23,306			38,460			5,396			8,105			9,805			10,110			11,705

Noninterest expense
Personnel		26,349			24,171			8,402			8,789			9,158			7,357			7,613
Occupancy		3,504			3,567			1,150			1,182			1,172			1,339			1,220
Equipment		1,845			1,855			619			613			613			600			617
Marketing		1,479			1,490			497			495			487			443			470
Professional fees		1,812			1,511			651			644			517			770			562
Amortization of intangibles		1,311			1,546			426			439			446			432			510
Data processing		1,882			1,861			602			632			648			639			592
Telecommunications		1,050			1,033			361			359			330			387			361
Other general operating		11,162			11,106			3,687			3,592			3,883			3,885			3,767
Goodwill impairment		10,400			—			10,400			—			—			—			—
Merger and restructuring charges		1,450			2,188			421			508			521			533			594

Total noninterest expense		62,244			50,328			27,216			17,253			17,775			16,385			16,306

Income (loss) before income taxes		2,272			5,779			(5,912	)		3,795			4,389			(1,419	)		(1,976	)
Income tax expense (benefit)		3,266			(691	)		1,387			672			1,207			(1,225	)		(975	)

Net income (loss)	$	(994	)	$	6,470		$	(7,299	)	$	3,123		$	3,182		$	(194	)	$	(1,001	)

Preferred stock dividends and accretion		1,036			3,478			348			340			348			5,002			1,240

Net income (loss) applicable to common shareholders	$	(2,030	)	$	2,992		$	(7,647	)	$	2,783		$	2,834		$	(5,196	)	$	(2,241	)


Per common share information
Earnings (loss)	$	(0.21	)	$	0.39		$	(0.77	)	$	0.28		$	0.28		$	(0.60	)	$	(0.26	)
Diluted earnings (loss) ⁽²⁾		(0.21	)		0.39			(0.77	)		0.27			0.28			(0.60	)		(0.26	)
Dividends paid		0.03			0.03			0.01			0.01			0.01			0.01			0.01

Average common shares issued and outstanding		9,706,951			7,423,341			9,976,351			9,956,773			9,177,468			8,634,565			8,633,834

Average diluted common shares issued and outstanding ⁽²⁾		9,706,951			7,449,911			9,976,351			10,029,776			10,005,254			8,634,565			8,633,834

(1)

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

(2)

Due to a net loss for the third quarter of 2010, fourth and third quarters of 2009, and the nine months ended September 30, 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)


	September 30 2010			June 30 2010			September 30 2009
Assets
Cash and cash equivalents	$	131,116		$	151,034		$	152,412
Time deposits placed and other short-term investments		18,946			20,718			22,992
Federal funds sold and securities borrowed or purchased under agreements to resell		271,818			247,667			187,761
Trading account assets		207,695			197,376			204,838
Derivative assets		72,834			83,331			94,855
Debt securities:
Available-for-sale		322,424			314,765			247,200
Held-to-maturity, at cost		438			435			9,545
Total debt securities		322,862			315,200			256,745
Loans and leases		933,910			956,177			914,266
Allowance for loan and lease losses		(43,581	)		(45,255	)		(35,832	)
Loans and leases, net of allowance		890,329			910,922			878,434
Premises and equipment, net		14,320			14,536			15,373
Mortgage servicing rights (includes $12,251, $14,745 and $17,539 measured at fair value)		12,540			15,041			17,850
Goodwill		75,602			85,801			86,009
Intangible assets		10,402			10,796			12,715
Loans held-for-sale		33,276			38,046			40,124
Customer and other receivables		78,599			86,466			93,620
Other assets		187,472			186,944			187,315
Total assets	$	2,327,811		$	2,363,878		$	2,251,043

Assets of consolidated VIEs included in total assets above (substantially all pledged as collateral)
Trading account assets	$	11,186		$	10,675
Derivative assets		2,838			2,094
Available-for-sale debt securities		7,684			9,493
Loans and leases		132,106			134,143
Allowance for loan and lease losses		(9,831	)		(10,585	)
Loans and leases, net of allowance		122,275			123,558
Loans held-for-sale		3,301			3,371
All other assets		7,910			9,190
Total assets of consolidated VIEs	$	155,194		$	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)


	September 30 2010			June 30 2010			September 30 2009
Liabilities
Deposits in domestic offices:
Noninterest-bearing	$	265,672		$	258,988		$	246,729
Interest-bearing		634,784			640,807			652,730
Deposits in foreign offices:
Noninterest-bearing		6,297			5,791			4,889
Interest-bearing		70,569			68,881			70,551
Total deposits		977,322			974,467			974,899
Federal funds purchased and securities loaned or sold under agreements to repurchase		296,605			307,211			249,578
Trading account liabilities		90,010			89,982			71,672
Derivative liabilities		49,807			62,789			52,624
Commercial paper and other short-term borrowings		64,818			73,358			62,280
Accrued expenses and other liabilities (includes $1,294, $1,413 and $1,567 of reserve for unfunded lending commitments)		139,896			132,814			126,019
Long-term debt		478,858			490,083			456,288
Total liabilities		2,097,316			2,130,704			1,993,360
Shareholders’ equity
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 3,960,660, 3,960,660 and 5,760,660 shares		18,104			17,993			58,840
Common stock and additional paid-in capital, $0.01 par value; authorized - 12,800,000,000, 12,800,000,000 and 10,000,000,000 shares; issued and outstanding - 10,033,705,046, 10,033,016,719 and 8,650,314,133 shares		149,563			149,175			128,823
Retained earnings		62,515			70,497			76,881
Accumulated other comprehensive income (loss)		336			(4,447	)		(6,705	)
Other		(23	)		(44	)		(156	)
Total shareholders’ equity		230,495			233,174			257,683
Total liabilities and shareholders’ equity	$	2,327,811		$	2,363,878		$	2,251,043

Liabilities of consolidated VIEs included in total liabilities above
Commercial paper and other short-term borrowings	$	13,222		$	17,848
Long-term debt		79,228			85,186
All other liabilities		1,954			2,535
Total liabilities of consolidated VIEs	$	94,404		$	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)


	Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
Risk-based capital ⁽¹⁾:
Tier 1 common	$	124,756		$	119,716		$	115,520		$	120,394		$	112,357
Tier 1 capital		164,763			159,551			155,428			160,388			193,073
Total capital		231,120			220,827			219,913			226,070			258,568
Risk-weighted assets		1,476,774			1,494,990			1,519,723			1,542,517			1,548,962
Tier 1 common equity ratio ⁽²⁾		8.45	%		8.01	%		7.60	%		7.81	%		7.25	%
Tier 1 capital ratio		11.16			10.67			10.23			10.40			12.46
Total capital ratio		15.65			14.77			14.47			14.66			16.69
Tier 1 leverage ratio		7.24			6.69			6.46			6.91			8.39
Tangible equity ratio ⁽³⁾		6.58			6.16			6.03			6.42			7.55
Tangible common equity ratio ⁽³⁾		5.77			5.36			5.23			5.57			4.82

(1)

Reflects preliminary data for current period risk-based capital.

(2)

Tier 1 common equity ratio equals Tier 1 capital excluding preferred stock (except for Common Equivalent Securities at December 31, 2009), trust preferred securities, hybrid securities and minority interest divided by risk-weighted assets.

(3)

Tangible equity ratio equals period end tangible shareholders' equity divided by period end tangible assets. Tangible common equity equals period end tangible common shareholders' equity divided by period end tangible assets. Tangible shareholders' equity and tangible assets are non-GAAP measures. For corresponding reconciliations of tangible shareholders' equity and tangible assets to GAAP financial measures, see Exhibit A: Non-GAAP Reconciliations—Reconciliation to GAAP Financial Measures on pages 46-47. We believe the use of these non-GAAP measures provide additional clarity in assessing the results of the Corporation.

LOGO

*	Preliminary data on risk-based capital

Outstanding Common Stock

No common shares were repurchased in the third quarter of 2010.

There is no existing Board authorized share repurchase program.

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


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

Bank of America Corporation and Subsidiaries

Core Net Interest Income

(Dollars in millions)


	Nine Months Ended September 30								Third Quarter				Second Quarter				First Quarter				Fourth Quarter				Third Quarter
	2010				2009				2010				2010				2010				2009				2009
Net interest income ⁽¹⁾
As reported⁽²⁾	$	39,984			$	36,514			$	12,717			$	13,197			$	14,070			$	11,896			$	11,753
Impact of market-based net interest income ⁽³⁾		(3,280	)			(4,810	)			(1,045	)			(1,049	)			(1,186	)			(1,305	)			(1,394	)

Core net interest income		36,704				31,704				11,672				12,148				12,884				10,591				10,359
Impact of securitizations ⁽⁴⁾		n/a				8,050				n/a				n/a				n/a				2,474				2,567

Core net interest income ⁽⁵⁾	$	36,704			$	39,754			$	11,672			$	12,148			$	12,884			$	13,065			$	12,926


Average earning assets
As reported	$	1,902,303			$	1,837,706			$	1,863,819			$	1,910,790			$	1,933,060			$	1,807,898			$	1,790,000
Impact of market-based earning assets ⁽³⁾		(514,249	)			(478,288	)			(494,777	)			(521,010	)			(527,318	)			(490,563	)			(468,844	)

Core average earning assets		1,388,054				1,359,418				1,369,042				1,389,780				1,405,742				1,317,335				1,321,156
Impact of securitizations ⁽⁶⁾		n/a				86,438				n/a				n/a				n/a				75,337				81,703

Core average earning assets ⁽⁵⁾	$	1,388,054			$	1,445,856			$	1,369,042			$	1,389,780			$	1,405,742			$	1,392,672			$	1,402,859


Net interest yield contribution ^(1, 7)
As reported⁽²⁾		2.81		%		2.65		%		2.72		%		2.77		%		2.93		%		2.62		%		2.61	%
Impact of market-based activities ⁽³⁾		0.72				0.46				0.67				0.73				0.76				0.59				0.52

Core net interest yield on earning assets		3.53				3.11				3.39				3.50				3.69				3.21				3.13
Impact of securitizations		n/a				0.56				n/a				n/a				n/a				0.53				0.54

Core net interest yield on earning assets ⁽⁵⁾		3.53		%		3.67		%		3.39		%		3.50		%		3.69		%		3.74		%		3.67	%

(1)

Fully taxable-equivalent basis

(2)

Balance and calculation include fees earned on overnight deposits placed with the Federal Reserve of $305 million and $249 million for the nine months ended September 30, 2010 and 2009; $107 million, $106 million, and $92 million for the third, second and first quarters of 2010, and $130 million and $107 million for the fourth and third quarters of 2009, respectively. For more information see Quarterly and Year-to-Date Average Balances and Interest Rates–Fully Taxable-equivalent Basis on pages 9-10 and 13-14.

(3)

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

(4)

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

(5)

Periods subsequent to January 1, 2010 are presented in accordance with new consolidation guidance. Prior periods are presented on a managed basis.

(6)

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

(7)

Calculated on an annualized basis.

n/a = not applicable

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


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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Third Quarter 2010						Second Quarter 2010						Third Quarter 2009
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Earning assets
Time deposits placed and other short-term investments ⁽¹⁾	$	23,233	$	86	1.45	%	$	30,741	$	70	0.93	%	$	29,485	$	26	0.35	%
Federal funds sold and securities borrowed or purchased under agreements to resell		254,820		441	0.69			263,564		457	0.70			223,039		722	1.28
Trading account assets		210,529		1,692	3.20			213,927		1,853	3.47			212,488		1,909	3.58
Debt securities ⁽²⁾		328,097		2,646	3.22			314,299		2,966	3.78			263,712		3,048	4.62
Loans and leases ⁽³⁾:
Residential mortgage ⁽⁴⁾		237,292		2,797	4.71			247,715		2,982	4.82			241,924		3,258	5.38
Home equity		143,083		1,457	4.05			148,219		1,537	4.15			153,269		1,614	4.19
Discontinued real estate		13,632		122	3.56			13,972		134	3.84			16,570		219	5.30
Credit card - domestic		115,251		3,113	10.72			118,738		3,121	10.54			49,751		1,349	10.76
Credit card - foreign		27,047		875	12.84			27,706		854	12.37			21,189		562	10.52
Direct/Indirect consumer⁽⁵⁾		95,692		1,130	4.68			98,549		1,233	5.02			100,012		1,439	5.71
Other consumer ⁽⁶⁾		2,955		47	6.35			2,958		46	6.32			3,331		60	7.02

Total consumer		634,952		9,541	5.98			657,857		9,907	6.03			586,046		8,501	5.77

Commercial - domestic		192,306		2,040	4.21			195,144		2,005	4.12			216,332		2,132	3.91
Commercial real estate ⁽⁷⁾		55,660		452	3.22			64,218		541	3.38			74,276		600	3.20
Commercial lease financing		21,402		255	4.78			21,271		261	4.90			22,068		178	3.22
Commercial - foreign		30,540		282	3.67			28,564		256	3.59			31,533		297	3.74

Total commercial		299,908		3,029	4.01			309,197		3,063	3.97			344,209		3,207	3.70

Total loans and leases		934,860		12,570	5.35			967,054		12,970	5.38			930,255		11,708	5.01

Other earning assets		112,280		949	3.36			121,205		994	3.29			131,021		1,333	4.05

Total earning assets ⁽⁸⁾		1,863,819		18,384	3.93			1,910,790		19,310	4.05			1,790,000		18,746	4.17

Cash and cash equivalents ⁽¹⁾		155,784		107				209,686		106				196,116		107
Other assets, less allowance for loan and lease losses		351,604						369,269						404,559

Total assets	$	2,371,207					$	2,489,745					$	2,390,675

(1)

Fees earned on overnight deposits placed with the Federal Reserve, which were included in the Time Deposits Placed and Other Short-Term Investments line in prior periods have been reclassified to Cash and Cash Equivalents, consistent with the balance sheet presentation of these deposits. Net interest income and net interest yield are calculated excluding these fees.

(2)

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

(3)

Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis. Purchased credit-impaired loans were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan.

(4)

Includes foreign residential mortgages of $502 million and $506 million the third and second quarters of 2010, and $662 million in the third quarter of 2009.

(5)

Includes foreign consumer loans of $7.7 billion for both the third and second quarters of 2010, and $8.4 billion in the third quarter of 2009.

(6)

Includes consumer finance loans of $2.0 billion and $2.1 billion for the third and second quarters of 2010, and $2.4 billion in the third quarter of 2009; other foreign consumer loans of $788 million and $679 million in the third and second quarters of 2010, and $700 million in the third quarter of 2009; and consumer overdrafts of $123 million and $155 million for the third and second quarters of 2010, and $243 million in the third quarter of 2009.

(7)

Includes domestic commercial real estate loans of $53.1 billion and $61.6 billion in the third and second quarters of 2010, and $70.7 billion in the third quarter of 2009, and foreign commercial real estate loans of $2.5 billion and $2.6 billion in the third and second quarters of 2010, and $3.6 billion in the third quarter of 2009.

(8)

Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $643 million and $479 million in the third and second quarters of 2010, and $136 million in the third quarter of 2009. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities $1.0 billion and $829 million in the third and second quarters of 2010, and $873 million in the third quarter of 2009.

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


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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Third Quarter 2010						Second Quarter 2010						Third Quarter 2009
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	37,008	$	36	0.39	%	$	37,290	$	43	0.46	%	$	34,170	$	49	0.57	%
NOW and money market deposit accounts		442,906		359	0.32			442,262		372	0.34			356,873		353	0.39
Consumer CDs and IRAs		132,687		377	1.13			147,425		441	1.20			214,284		1,100	2.04
Negotiable CDs, public funds and other time deposits		17,326		57	1.30			17,355		59	1.36			48,905		118	0.96

Total domestic interest-bearing deposits		629,927		829	0.52			644,332		915	0.57			654,232		1,620	0.98

Foreign interest-bearing deposits:
Banks located in foreign countries		18,557		38	0.81			19,994		34	0.70			15,941		29	0.73
Governments and official institutions		2,992		3	0.28			4,990		3	0.26			6,488		4	0.23
Time, savings and other		52,310		80	0.61			51,176		79	0.62			53,013		57	0.42

Total foreign interest-bearing deposits		73,859		121	0.65			76,160		116	0.61			75,442		90	0.47

Total interest-bearing deposits		703,786		950	0.54			720,492		1,031	0.57			729,674		1,710	0.93

Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings		391,148		848	0.86			454,051		891	0.79			411,063		1,237	1.19
Trading account liabilities		95,265		635	2.65			100,021		715	2.87			73,290		455	2.46
Long-term debt		485,588		3,341	2.74			497,469		3,582	2.88			449,974		3,698	3.27

Total interest-bearing liabilities ⁽¹⁾		1,675,787		5,774	1.37			1,772,033		6,219	1.41			1,664,001		7,100	1.70

Noninterest-bearing sources:
Noninterest-bearing deposits		270,060						271,123						259,621
Other liabilities		191,382						213,128						211,070
Shareholders’ equity		233,978						233,461						255,983

Total liabilities and shareholders’ equity	$	2,371,207					$	2,489,745					$	2,390,675

Net interest spread					2.56	%					2.64	%					2.47	%
Impact of noninterest-bearing sources					0.13						0.10						0.12

Net interest income/yield on earning assets ⁽²⁾			$	12,610	2.69	%			$	13,091	2.74	%			$	11,646	2.59	%

(1)

Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $643 million and $479 million in the third and second quarters of 2010, and $136 million in the third quarter of 2009. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities $1.0 billion and $829 million in the third and second quarters of 2010, and $873 million in the third quarter of 2009.

(2)

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.

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


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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Third Quarter 2010							Second Quarter 2010							Third Quarter 2009
	Average Balance		Interest Income/ Expense			Yield/ Rate		Average Balance		Interest Income/ Expense			Yield/ Rate		Average Balance		Interest Income/ Expense			Yield/ Rate
Earning assets
Time deposits placed and other short-term investments ⁽²⁾	$	23,233	$	86		1.45	%	$	30,741	$	71		0.93	%	$	29,485	$	26		0.35	%
Federal funds sold and securities borrowed or purchased under agreements to resell ⁽²⁾		254,820		366		0.57			263,564		384		0.58			223,039		627		1.11
Trading account assets⁽²⁾		210,529		1,754		3.32			213,927		1,904		3.56			212,488		1,915		3.59
Debt securities ⁽²⁾		328,097		3,286		4.00			314,299		3,431		4.38			263,712		3,261		4.94
Loans and leases:
Residential mortgage		237,292		2,797		4.71			247,715		2,982		4.82			241,924		3,258		5.38
Home equity		143,083		1,457		4.05			148,219		1,537		4.15			153,269		1,614		4.19
Discontinued real estate		13,632		122		3.56			13,972		134		3.84			16,570		219		5.30
Credit card - domestic		115,251		3,113		10.72			118,738		3,121		10.54			49,751		1,349		10.76
Credit card - foreign		27,047		875		12.84			27,706		854		12.37			21,189		562		10.52
Direct/Indirect consumer		95,692		1,130		4.68			98,549		1,233		5.02			100,012		1,439		5.71
Other consumer		2,955		47		6.35			2,958		46		6.32			3,331		60		7.02
Total consumer		634,952		9,541		5.98			657,857		9,907		6.03			586,046		8,501		5.77
Commercial - domestic ⁽²⁾		192,306		2,056		4.24			195,144		2,040		4.19			216,332		2,144		3.93
Commercial real estate		55,660		452		3.22			64,218		541		3.38			74,276		600		3.20
Commercial lease financing		21,402		255		4.78			21,271		261		4.90			22,068		178		3.22
Commercial - foreign		30,540		282		3.67			28,564		256		3.59			31,533		297		3.74
Total commercial		299,908		3,045		4.03			309,197		3,098		4.02			344,209		3,219		3.71
Total loans and leases		934,860		12,586		5.35			967,054		13,005		5.39			930,255		11,720		5.01
Other earning assets		112,280		949		3.36			121,205		994		3.29			131,021		1,333		4.05
Total earning assets - excluding hedge impact		1,863,819		19,027		4.06			1,910,790		19,789		4.15			1,790,000		18,882		4.20
Net hedge expense on assets				(643	)						(479	)						(136	)
Total earning assets - including hedge impact		1,863,819		18,384		3.93			1,910,790		19,310		4.05			1,790,000		18,746		4.17
Cash and cash equivalents		155,784		107					209,686		106					196,116		107
Other assets, less allowance for loan and lease losses		351,604							369,269							404,559
Total assets	$	2,371,207						$	2,489,745						$	2,390,675

(1)

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

(2)

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

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


	Third Quarter 2010			Second Quarter 2010			Third Quarter 2009
Time deposits placed and other short-term investments	$	—		$	(1	)	$	—
Federal funds sold and securities borrowed or purchased under agreements to resell		75			73			95
Trading account assets		(62	)		(51	)		(6	)
Debt securities		(640	)		(465	)		(213	)
Commercial - domestic		(16	)		(35	)		(12	)

Net hedge expense on assets	$	(643	)	$	(479	)	$	(136	)

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


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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Third Quarter 2010							Second Quarter 2010							Third Quarter 2009
	Average Balance		Interest Income/ Expense			Yield/ Rate		Average Balance		Interest Income/ Expense			Yield/ Rate		Average Balance		Interest Income/ Expense			Yield/ Rate
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	37,008	$	36		0.39	%	$	37,290	$	43		0.46	%	$	34,170	$	49		0.57	%
NOW and money market deposit accounts⁽²⁾		442,906		360		0.32			442,262		372		0.34			356,873		353		0.39
Consumer CDs and IRAs⁽²⁾		132,687		328		0.98			147,425		395		1.07			214,284		1,054		1.95
Negotiable CDs, public funds and other time deposits ⁽²⁾		17,326		54		1.22			17,355		55		1.27			48,905		114		0.92
Total domestic interest-bearing deposits		629,927		778		0.49			644,332		865		0.54			654,232		1,570		0.95
Foreign interest-bearing deposits:
Banks located in foreign countries ⁽²⁾		18,557		19		0.39			19,994		17		0.34			15,941		14		0.37
Governments and official institutions		2,992		3		0.28			4,990		3		0.26			6,488		4		0.23
Time, savings and other		52,310		80		0.61			51,176		79		0.62			53,013		57		0.42
Total foreign interest-bearing deposits		73,859		102		0.54			76,160		99		0.52			75,442		75		0.40
Total interest-bearing deposits		703,786		880		0.50			720,492		964		0.54			729,674		1,645		0.90
Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings ⁽²⁾		391,148		700		0.71			454,051		815		0.72			411,063		1,059		1.02
Trading account liabilities		95,265		635		2.65			100,021		715		2.87			73,290		455		2.46
Long-term debt ⁽²⁾		485,588		4,579		3.76			497,469		4,554		3.67			449,974		4,814		4.26
Total interest-bearing liabilities - excluding hedge impact		1,675,787		6,794		1.61			1,772,033		7,048		1.59			1,664,001		7,973		1.90
Net hedge income on liabilities				(1,020	)						(829	)						(873	)
Total interest-bearing liabilities - including hedge impact		1,675,787		5,774		1.37			1,772,033		6,219		1.41			1,664,001		7,100		1.70
Noninterest-bearing sources:
Noninterest-bearing deposits		270,060							271,123							259,621
Other liabilities		191,382							213,128							211,070
Shareholders’ equity		233,978							233,461							255,983
Total liabilities and shareholders’ equity	$	2,371,207						$	2,489,745						$	2,390,675
Net interest spread						2.45							2.56							2.30
Impact of noninterest-bearing sources						0.16							0.11							0.13
Net interest income/yield on earning assets - excluding hedge impact				12,233		2.61	%				12,741		2.67	%				10,909		2.43	%
Net impact of hedge income (expense)				377		0.08					350		0.07					737		0.16
Net interest income/yield on earning assets			$	12,610		2.69	%			$	13,091		2.74	%			$	11,646		2.59	%

(1)

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

(2)

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

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


NOW and money market deposit accounts	$	(1	)	$	—		$	—
Consumer CDs and IRAs		49			46			46
Negotiable CDs, public funds and other time deposits		3			4			4
Banks located in foreign countries		19			17			15
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings		148			76			178
Long-term debt		(1,238	)		(972	)		(1,116	)

Net hedge income on liabilities	$	(1,020	)	$	(829	)	$	(873	)

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


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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Nine Months Ended September 30
	2010						2009
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Earning assets
Time deposits placed and other short-term investments ⁽¹⁾	$	27,175	$	217	1.06	%	$	27,094	$	244	1.20	%
Federal funds sold and securities borrowed or purchased under agreements to resell		261,444		1,346	0.69			232,680		2,567	1.47
Trading account assets		212,985		5,340	3.35			216,462		6,436	3.97
Debt securities ⁽²⁾		317,906		8,785	3.69			268,291		10,303	5.12
Loans and leases ⁽³⁾:
Residential mortgage⁽⁴⁾		242,922		8,879	4.87			253,531		10,427	5.49
Home equity		147,911		4,580	4.14			156,128		5,123	4.38
Discontinued real estate		14,009		409	3.89			18,078		908	6.70
Credit card - domestic		119,744		9,604	10.72			53,444		4,330	10.83
Credit card - foreign		28,198		2,635	12.50			18,973		1,517	10.69
Direct/Indirect consumer⁽⁵⁾		98,368		3,665	4.98			100,349		4,655	6.20
Other consumer ⁽⁶⁾		2,973		141	6.34			3,346		187	7.43
Total consumer		654,125		29,913	6.11			603,849		27,147	6.00
Commercial - domestic		196,665		6,015	4.09			229,462		6,793	3.96
Commercial real estate ⁽⁷⁾		62,755		1,568	3.34			74,021		1,777	3.21
Commercial lease financing		21,448		820	5.10			22,050		717	4.33
Commercial - foreign		29,309		802	3.66			33,878		1,119	4.42
Total commercial		310,177		9,205	3.97			359,411		10,406	3.87
Total loans and leases		964,302		39,118	5.42			963,260		37,553	5.21
Other earning assets		118,491		2,996	3.38			129,919		3,883	4.00
Total earning assets ⁽⁸⁾		1,902,303		57,802	4.06			1,837,706		60,986	4.43
Cash and cash equivalents ⁽¹⁾		187,310		305				184,650		249
Other assets, less allowance for loan and lease losses		366,783						420,549
Total assets	$	2,456,396					$	2,442,905

(1)

Fees earned on overnight deposits placed with the Federal Reserve, which were included in the Time Deposits Placed and Other Short-Term Investments line in prior periods, have been reclassified to Cash and Cash Equivalents, consistent with the balance sheet presentation of these deposits. Net interest income and net interest yield are calculated excluding these fees.

(2)

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

(3)

(4)

Includes foreign residential mortgages of $515 million and $647 million for the nine months ended September 30, 2010 and 2009.

(5)

Includes foreign consumer loans of $7.9 billion and $7.8 billion for the nine months ended September 30, 2010 and 2009.

(6)

Includes consumer finance loans of $2.1 billion and $2.5 billion, other foreign consumer loans of $711 million and $646 million, and consumer overdrafts of $137 million and $226 million for the nine months ended September 30, 2010 and 2009.

(7)

Includes domestic commercial real estate loans of $60.1 billion and $71.5 billion, and foreign commercial real estate loans of $2.7 billion and $2.5 billion for the nine months ended September 30, 2010 and 2009.

(8)

Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $1.4 billion and $208 million for the nine months ended September 30, 2010 and 2009. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities $2.8 billion and $1.9 billion for the nine months ended September 30, 2010 and 2009.

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


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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Nine Months Ended September 30
	2010						2009
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	36,482	$	122	0.45	%	$	33,645	$	161	0.64	%
NOW and money market deposit accounts		433,858		1,072	0.33			347,423		1,169	0.45
Consumer CDs and IRAs		148,644		1,385	1.25			226,555		4,219	2.49
Negotiable CDs, public funds and other time deposits		18,138		179	1.32			39,829		391	1.31
Total domestic interest-bearing deposits		637,122		2,758	0.58			647,452		5,940	1.23
Foreign interest-bearing deposits:
Banks located in foreign countries		18,964		104	0.73			20,381		114	0.75
Governments and official institutions		4,812		9	0.24			7,893		14	0.23
Time, savings and other		52,524		232	0.59			55,214		267	0.65
Total foreign interest-bearing deposits		76,300		345	0.60			83,488		395	0.63
Total interest-bearing deposits		713,422		3,103	0.58			730,940		6,335	1.16
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings		450,748		2,557	0.76			501,485		4,854	1.29
Trading account liabilities		95,159		2,010	2.82			68,530		1,484	2.90
Long-term debt		498,794		10,453	2.80			447,038		12,048	3.60
Total interest-bearing liabilities ⁽¹⁾		1,758,123		18,123	1.38			1,747,993		24,721	1.89
Noninterest-bearing sources:
Noninterest-bearing deposits		268,710						245,242
Other liabilities		197,105						207,032
Shareholders’ equity		232,458						242,638
Total liabilities and shareholders’ equity	$	2,456,396					$	2,442,905
Net interest spread					2.68	%					2.54	%
Impact of noninterest-bearing sources					0.11						0.09
Net interest income/yield on earning assets ⁽²⁾			$	39,679	2.79	%			$	36,265	2.63	%

(1)

(2)

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


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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Nine Months Ended September 30
	2010							2009
	Average Balance		Interest Income/ Expense			Yield/ Rate		Average Balance		Interest Income/ Expense			Yield/ Rate
Earning assets
Time deposits placed and other short-term investments⁽²⁾	$	27,175	$	218		1.07	%	$	27,094	$	247		1.22	%
Federal funds sold and securities borrowed or purchased under agreements to resell ⁽²⁾		261,444		1,118		0.57			232,680		2,413		1.39
Trading account assets ⁽²⁾		212,985		5,491		3.44			216,462		6,442		3.97
Debt securities ⁽²⁾		317,906		10,171		4.27			268,291		10,578		5.26
Loans and leases:
Residential mortgage		242,922		8,879		4.87			253,531		10,427		5.49
Home equity		147,911		4,580		4.14			156,128		5,123		4.38
Discontinued real estate		14,009		409		3.89			18,078		908		6.70
Credit card - domestic		119,744		9,604		10.72			53,444		4,330		10.83
Credit card - foreign		28,198		2,635		12.50			18,973		1,517		10.69
Direct/Indirect consumer		98,368		3,665		4.98			100,349		4,655		6.20
Other consumer		2,973		141		6.34			3,346		187		7.43
Total consumer		654,125		29,913		6.11			603,849		27,147		6.00
Commercial - domestic⁽²⁾		196,665		6,099		4.15			229,462		6,871		4.00
Commercial real estate		62,755		1,568		3.34			74,021		1,777		3.21
Commercial lease financing		21,448		820		5.10			22,050		717		4.33
Commercial - foreign		29,309		802		3.66			33,878		1,119		4.42
Total commercial		310,177		9,289		4.00			359,411		10,484		3.90
Total loans and leases		964,302		39,202		5.43			963,260		37,631		5.22
Other earning assets		118,491		2,996		3.38			129,919		3,883		3.99
Total earning assets - excluding hedge impact		1,902,303		59,196		4.16			1,837,706		61,194		4.45
Net hedge expense on assets				(1,394	)						(208	)
Total earning assets - including hedge impact		1,902,303		57,802		4.06			1,837,706		60,986		4.43
Cash and cash equivalents		187,310		305					184,650		249
Other assets, less allowance for loan and lease losses		366,783							420,549
Total assets	$	2,456,396						$	2,442,905

(1)

(2)

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

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


	Nine Months Ended September 30
	2010			2009
Time deposits placed and other short-term investments	$	(1	)	$	(3	)
Federal funds sold and securities borrowed or purchased under agreements to resell		228			154
Trading account assets		(151	)		(6	)
Debt securities		(1,386	)		(275	)
Commercial - domestic		(84	)		(78	)

Net hedge expense on assets	$	(1,394	)	$	(208	)

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


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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Nine Months Ended September 30
	2010							2009
	Average Balance		Interest Income/ Expense			Yield/ Rate		Average Balance		Interest Income/ Expense			Yield/ Rate
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	36,482	$	122		0.45	%	$	33,645	$	161		0.64	%
NOW and money market deposit accounts ⁽²⁾		433,858		1,073		0.33			347,423		1,170		0.45
Consumer CDs and IRAs⁽²⁾		148,644		1,246		1.12			226,555		4,050		2.39
Negotiable CDs, public funds and other time deposits⁽²⁾		18,138		169		1.24			39,829		379		1.27
Total domestic interest-bearing deposits		637,122		2,610		0.55			647,452		5,760		1.19
Foreign interest-bearing deposits:
Banks located in foreign countries⁽²⁾		18,964		51		0.36			20,381		79		0.52
Governments and official institutions		4,812		9		0.24			7,893		14		0.23
Time, savings and other		52,524		232		0.59			55,214		267		0.65
Total foreign interest-bearing deposits		76,300		292		0.51			83,488		360		0.58
Total interest-bearing deposits		713,422		2,902		0.54			730,940		6,120		1.12
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings ⁽²⁾		450,748		2,231		0.66			501,485		4,131		1.10
Trading account liabilities		95,159		2,010		2.82			68,530		1,484		2.90
Long-term debt⁽²⁾		498,794		13,799		3.69			447,038		14,921		4.46
Total interest-bearing liabilities - excluding hedge impact		1,758,123		20,942		1.59			1,747,993		26,656		2.04
Net hedge income on liabilities				(2,819	)						(1,935	)
Total interest-bearing liabilities - including hedge impact		1,758,123		18,123		1.38			1,747,993		24,721		1.89
Noninterest-bearing sources:
Noninterest-bearing deposits		268,710							245,242
Other liabilities		197,105							207,032
Shareholders’ equity		232,458							242,638
Total liabilities and shareholders’ equity	$	2,456,396						$	2,442,905
Net interest spread						2.57							2.41
Impact of noninterest-bearing sources						0.12							0.10
Net interest income/yield on earning assets - excluding hedge impact				38,254		2.69	%				34,538		2.51	%
Net impact of hedge income (expense)				1,425		0.10					1,727		0.12
Net interest income/yield on earning assets			$	39,679		2.79	%			$	36,265		2.63	%

(1)

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

(2)

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


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

NOW and money market deposit accounts	$	(1	)	$	(1	)
Consumer CDs and IRAs		139			169
Negotiable CDs, public funds and other time deposits		10			12
Banks located in foreign countries		53			35
Federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings		326			723
Long-term debt		(3,346	)		(2,873	)

Net hedge income on liabilities	$	(2,819)		$	(1,935)

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


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

Bank of America Corporation and Subsidiaries

Debt Securities and Available-for-Sale Marketable Equity Securities

(Dollars in millions)


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

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

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

Held-to-maturity debt securities		438		—		—			438

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

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


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

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

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

Held-to-maturity debt securities		435		—		—			435

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

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

(1)

Substantially all asset-backed securities.

(2)

Classified in other assets on the Consolidated Balance Sheet.

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


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

Bank of America Corporation and Subsidiaries

Quarterly Results by Business Segment

(Dollars in millions)


	Third Quarter 2010
	Total Corporation			Deposits		Global Card Services ⁽¹⁾			Home Loans & Insurance			Global Commercial Banking			Global Banking & Markets			GWIM		All Other ⁽¹⁾
Net interest income ⁽²⁾	$	12,717		$	1,922	$	4,361		$	1,346		$	1,874		$	1,874		$	1,292	$	48
Noninterest income		14,265			1,138		1,350			2,398			685			5,302			2,780		612

Total revenue, net of interest expense		26,982			3,060		5,711			3,744			2,559			7,176			4,072		660

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

Income (loss) before income taxes		(5,630	)		305		(9,565	)		(537	)		1,005			2,887			495		(220	)
Income tax expense (benefit) ⁽²⁾		1,669			110		306			(193	)		368			1,439			182		(543	)

Net income (loss)	$	(7,299	)	$	195	$	(9,871	)	$	(344	)	$	637		$	1,448		$	313	$	323


Average
Total loans and leases	$	934,860			n/m	$	171,191		$	127,713		$	198,839		$	98,847		$	99,318	$	238,457
Total assets ⁽³⁾		2,371,207		$	433,203		177,634			223,133			315,632			745,097			271,304		n/m
Total deposits		973,846			408,009		n/m			n/m			148,534			106,865			237,878		44,586
Allocated equity		233,978			24,382		35,270			26,628			41,172			52,519			23,896		30,111

Period end
Total loans and leases	$	933,910			n/m	$	168,845		$	127,701		$	195,858		$	99,476		$	99,772	$	241,837
Total assets ⁽³⁾		2,327,811		$	431,604		169,813			215,592			302,684			747,917			272,272		n/m
Total deposits		977,322			406,340		n/m			n/m			150,981			109,956			243,586		37,130

	Second Quarter 2010
	Total Corporation			Deposits		Global Card Services ⁽¹⁾			Home Loans & Insurance			Global Commercial Banking			Global Banking & Markets			GWIM		All Other ⁽¹⁾
Net interest income ⁽²⁾	$	13,197		$	2,115	$	4,439		$	1,000		$	2,118		$	1,977		$	1,385	$	163
Noninterest income		16,253			1,489		2,422			1,795			660			4,028			2,946		2,913

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

Provision for credit losses		8,105			61		3,795			2,390			623			(133	)		121		1,248
Noninterest expense		17,253			2,490		1,776			2,817			909			4,788			3,369		1,104

Income (loss) before income taxes		4,092			1,053		1,290			(2,412	)		1,246			1,350			841		724
Income tax expense (benefit) ⁽²⁾		969			385		470			(878	)		456			422			485		(371	)

Net income (loss)	$	3,123		$	668	$	820		$	(1,534	)	$	790		$	928		$	356	$	1,095


Average
Total loans and leases	$	967,054			n/m	$	177,571		$	130,664		$	206,111		$	95,902		$	99,007	$	257,245
Total assets ⁽³⁾		2,489,745		$	440,627		186,195			229,168			302,842			771,267			265,903		n/m
Total deposits		991,615			415,669		n/m			n/m			145,427			112,959			229,272		64,202
Allocated equity		233,461			24,212		40,517			26,346			41,971			53,138			23,515		23,762

Period end
Total loans and leases	$	956,177			n/m	$	173,021		$	129,798		$	203,173		$	95,647		$	99,351	$	254,615
Total assets ⁽³⁾		2,363,878		$	436,932		183,334			225,492			303,996			711,444			259,728		n/m
Total deposits		974,467			411,679		n/m			n/m			147,400			105,942			229,551		56,986

	Third Quarter 2009
	Total Corporation			Deposits		Global Card Services ⁽¹⁾			Home Loans & Insurance			Global Commercial Banking			Global Banking & Markets			GWIM		All Other ⁽¹⁾
Net interest income ⁽²⁾	$	11,753		$	1,726	$	4,920		$	1,309		$	2,012		$	2,255		$	1,329	$	(1,798	)
Noninterest income		14,612			1,906		2,330			2,104			760			5,419			2,543		(450	)

Total revenue, net of interest expense		26,365			3,632		7,250			3,413			2,772			7,674			3,872		(2,248	)

Provision for credit losses		11,705			93		6,823			2,897			2,057			538			515		(1,218	)
Noninterest expense		16,306			2,286		1,915			3,049			959			3,653			3,005		1,439

Income (loss) before income taxes		(1,646	)		1,253		(1,488	)		(2,533	)		(244	)		3,483			352		(2,469	)
Income tax expense (benefit) ⁽²⁾		(645	)		439		(533	)		(898	)		(84	)		1,241			118		(928	)

Net income (loss)	$	(1,001	)	$	814	$	(955	)	$	(1,635	)	$	(160	)	$	2,242		$	234	$	(1,541	)


Average
Total loans and leases	$	930,255			n/m	$	208,650		$	132,599		$	225,994		$	105,995		$	101,155	$	155,184
Total assets ⁽³⁾		2,390,675		$	443,204		224,165			236,086			292,878			754,295			239,352		n/m
Total deposits		989,296			418,449		n/m			n/m			131,548			104,228			214,992		95,131
Allocated equity		255,983			23,688		40,652			24,737			42,193			50,844			18,802		55,067

Period end
Total loans and leases	$	914,266			n/m	$	202,860		$	134,255		$	221,543		$	101,730		$	99,281	$	153,880
Total assets ⁽³⁾		2,251,043		$	441,585		219,642			234,725			284,869			703,275			248,472		n/m
Total deposits		974,899			416,951		n/m			n/m			133,214			98,704			220,481		81,449

(1)

Periods subsequent to January 1, 2010 are presented in accordance with new consolidation guidance. Prior periods for Global Card Services are presented on a managed basis with a corresponding offset in All Other.

(2)

Fully taxable-equivalent basis

(3)

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

n/m

= not meaningful

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


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

Bank of America Corporation and Subsidiaries

Year-to-Date Results by Business Segment

(Dollars in millions)


	Nine Months Ended September 30, 2010
	Total Corporation			Deposits		Global Card Services ⁽¹⁾			Home Loans & Insurance			Global Commercial Banking			Global Banking & Markets			GWIM		All Other ⁽¹⁾
Net interest income ⁽²⁾	$	39,984		$	6,183	$	13,618		$	3,559		$	6,205		$	5,997		$	4,068	$	354
Noninterest income		48,738			4,114		5,757			6,604			2,162			16,934			8,504		4,663

Total revenue, net of interest expense		88,722			10,297		19,375			10,163			8,367			22,931			12,572		5,017

Provision for credit losses		23,306			160		10,507			7,292			2,103			(43	)		491		2,796
Noninterest expense		62,244			7,678		15,607			9,125			2,876			13,602			10,011		3,345

Income (loss) before income taxes		3,172			2,459		(6,739	)		(6,254	)		3,388			9,372			2,070		(1,124	)
Income tax expense (benefit) ⁽²⁾		4,166			906		1,349			(2,304	)		1,248			3,777			941		(1,751	)

Net income (loss)	$	(994	)	$	1,553	$	(8,088	)	$	(3,950	)	$	2,140		$	5,595		$	1,129	$	627


Average
Total loans and leases	$	964,302			n/m	$	179,290		$	130,685		$	206,209		$	97,925		$	99,122	$	250,553
Total assets ⁽³⁾		2,456,396		$	437,612		186,491			228,765			304,581			764,909			264,554		n/m
Total deposits		982,132			412,593		n/m			n/m			145,857			107,927			230,604		59,640
Allocated equity		232,458			24,238		39,623			26,749			41,924			53,561			23,137		23,226

Period end
Total loans and leases	$	933,910			n/m	$	168,845		$	127,701		$	195,858		$	99,476		$	99,772	$	241,837
Total assets ⁽³⁾		2,327,811		$	431,604		169,813			215,592			302,684			747,917			272,272		n/m
Total deposits		977,322			406,340		n/m			n/m			150,981			109,956			243,586		37,130

	Nine Months Ended September 30, 2009
	Total Corporation			Deposits		Global Card Services ⁽¹⁾			Home Loans & Insurance			Global Commercial Banking			Global Banking & Markets			GWIM		All Other ⁽¹⁾
Net interest income ⁽²⁾	$	36,514		$	5,324	$	15,094		$	3,700		$	5,972		$	7,403		$	4,271	$	(5,250	)
Noninterest income		59,017			5,156		6,865			9,412			2,352			19,622			7,725		7,885

Total revenue, net of interest expense		95,531			10,480		21,959			13,112			8,324			27,025			11,996		2,635

Provision for credit losses		38,460			268		22,699			8,995			5,925			1,451			1,007		(1,885	)
Noninterest expense		50,328			7,173		5,848			8,540			2,902			12,328			9,263		4,274

Income (loss) before income taxes		6,743			3,039		(6,588	)		(4,423	)		(503	)		13,246			1,726		246
Income tax expense (benefit) ⁽²⁾		273			1,073		(2,321	)		(1,567	)		(244	)		4,623			603		(1,894	)

Net income (loss)	$	6,470		$	1,966	$	(4,267	)	$	(2,856	)	$	(259	)	$	8,623		$	1,123	$	2,140


Average
Total loans and leases	$	963,260			n/m	$	216,101		$	129,910		$	232,426		$	114,578		$	104,444	$	165,086
Total assets ⁽³⁾		2,442,905		$	428,223		232,816			229,212			277,894			789,860			251,719		n/m
Total deposits		976,182			403,551		n/m			n/m			125,333			103,630			226,964		92,139
Allocated equity		242,638			23,499		40,807			18,615			41,805			48,820			17,850		51,242

Period end
Total loans and leases	$	914,266			n/m	$	202,860		$	134,255		$	221,543		$	101,730		$	99,281	$	153,880
Total assets ⁽³⁾		2,251,043		$	441,585		219,642			234,725			284,869			703,275			248,472		n/m
Total deposits		974,899			416,951		n/m			n/m			133,214			98,704			220,481		81,449

(1)

(2)

Fully taxable-equivalent basis

(3)

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

n/m

= not meaningful

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


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

Bank of America Corporation and Subsidiaries

Deposits Segment Results

(Dollars in millions)


	Nine Months Ended September 30						Third Quarter 2010			Second Quarter 2010				First Quarter 2010			Fourth Quarter 2009				Third Quarter 2009
	2010			2009			Third Quarter 2010			Second Quarter 2010				First Quarter 2010			Fourth Quarter 2009				Third Quarter 2009
Net interest income ⁽¹⁾	$	6,183		$	5,324		$	1,922		$	2,115			$	2,146		$	1,765			$	1,726
Noninterest income:
Service charges		4,112			5,152			1,138			1,494				1,480			1,645				1,904
All other income (loss)		2			4			—			(5	)			7			(1	)			2

Total noninterest income		4,114			5,156			1,138			1,489				1,487			1,644				1,906

Total revenue, net of interest expense		10,297			10,480			3,060			3,604				3,633			3,409				3,632

Provision for credit losses		160			268			62			61				37			75				93
Noninterest expense		7,678			7,173			2,693			2,490				2,495			2,326				2,286

Income before income taxes		2,459			3,039			305			1,053				1,101			1,008				1,253
Income tax expense ⁽¹⁾		906			1,073			110			385				411			398				439

Net income	$	1,553		$	1,966		$	195		$	668			$	690		$	610			$	814


Net interest yield ⁽¹⁾		2.01	%		1.77	%		1.87	%		2.05		%		2.11	%		1.69		%		1.64	%
Return on average equity		8.57			11.19			3.17			11.07				11.60			10.14				13.63
Efficiency ratio ⁽¹⁾		74.57			68.45			88.03			69.08				68.67			68.23				62.93

Balance sheet

Average
Total earning assets ⁽²⁾	$	411,178		$	401,837		$	407,025		$	414,178			$	412,390		$	414,798			$	416,570
Total assets ⁽²⁾		437,612			428,223			433,203			440,627				439,070			441,478				443,204
Total deposits		412,593			403,551			408,009			415,669				414,169			416,534				418,449
Allocated equity		24,238			23,499			24,382			24,212				24,116			23,876				23,688

Period end
Total earning assets ⁽²⁾	$	405,552		$	415,076		$	405,552		$	410,919			$	416,174		$	417,713			$	415,076
Total assets ⁽²⁾		431,604			441,585			431,604			436,932				442,525			444,612				441,585
Total deposits		406,340			416,951			406,340			411,679				417,541			419,583				416,951

(1)

Fully taxable-equivalent basis

(2)

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

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


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

Bank of America Corporation and Subsidiaries

Deposits Key Indicators

(Dollars in millions, except as noted)


	Nine Months Ended September 30						Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
	2010			2009			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
Average deposit balances
Checking	$	146,704		$	132,555		$	147,112		$	149,198		$	143,767		$	138,997		$	136,557
Savings		34,656			31,485			35,135			35,467			33,345			31,995			32,374
MMS		120,637			89,438			122,959			122,089			116,796			108,848			98,659
CDs and IRAs		107,337			146,823			99,690			105,598			116,911			133,714			147,844
Foreign and other		3,259			3,250			3,113			3,317			3,350			2,980			3,015

Total average deposit balances	$	412,593		$	403,551		$	408,009		$	415,669		$	414,169		$	416,534		$	418,449


Deposit spreads (excludes noninterest costs)
Checking		3.80	%		4.06	%		3.76	%		3.82	%		3.82	%		3.82	%		3.93		%
Savings		3.69			3.86			3.63			3.70			3.73			3.67			3.83
MMS		1.05			0.36			1.53			0.84			0.77			0.59			0.58
CDs and IRAs		0.20			0.04			0.28			0.22			0.12			0.02			(0.01	)
Foreign and other		4.20			3.63			4.31			4.14			4.15			3.45			3.48
Total deposit spreads		2.04			1.74			2.22			2.01			1.90			1.73			1.72

Online banking (end of period)
Active accounts (units in thousands)		29,313			29,209			29,313			29,195			29,850			29,600			29,209
Active billpay accounts (units in thousands)		14,941			15,107			14,941			14,902			15,078			14,966			15,107

LOGO

Bank of America has the largest active online banking customer base with 29.3 million subscribers.

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

14.9 million active bill pay users paid $76.1 billion worth of bills this quarter.

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


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

Bank of America Corporation and Subsidiaries

Global Card Services Segment Results ⁽¹⁾

(Dollars in millions)


	Nine Months Ended September 30								Third Quarter 2010				Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009				Third Quarter 2009
	2010				2009				Third Quarter 2010				Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009				Third Quarter 2009
Net interest income ⁽²⁾	$	13,618			$	15,094			$	4,361			$	4,439		$	4,818		$	4,878			$	4,920
Noninterest income:
Card income		5,658				6,460				1,877				1,900			1,881			2,093				2,183
All other income (loss)		99				405				(527	)			522			104			115				147

Total noninterest income		5,757				6,865				1,350				2,422			1,985			2,208				2,330

Total revenue, net of interest expense		19,375				21,959				5,711				6,861			6,803			7,086				7,250

Provision for credit losses		10,507				22,699				3,177				3,795			3,535			6,854				6,823
Goodwill impairment		10,400				—				10,400				—			—			—				—
Noninterest expense ⁽³⁾		5,207				5,848				1,699				1,776			1,732			1,877				1,915

Income (loss) before income taxes		(6,739	)			(6,588	)			(9,565	)			1,290			1,536			(1,645	)			(1,488	)
Income tax expense (benefit) ⁽²⁾		1,349				(2,321	)			306				470			573			(651	)			(533	)

Net income (loss)	$	(8,088	)		$	(4,267	)		$	(9,871	)		$	820		$	963		$	(994	)		$	(955	)


Net interest yield ⁽²⁾		10.14		%		9.35		%		10.09		%		10.01	%		10.32	%		9.71		%		9.37		%
Return on average equity		n/m				n/m				n/m				8.12			9.05			n/m				n/m
Efficiency ratio ⁽²⁾		26.87				26.64				n/m				25.86			25.48			26.48				26.40
Efficiency ratio, excluding goodwill impairment charge ^(2, 3)		26.87				26.64				29.75				25.86			25.48			26.48				26.40

Balance sheet

Average
Total loans and leases	$	179,290			$	216,101			$	171,191			$	177,571		$	189,307		$	199,756			$	208,650
Total earning assets		179,494				215,901				171,456				177,868			189,353			199,383				208,287
Total assets		186,491				232,816				177,634				186,195			195,845			215,447				224,165
Allocated equity		39,623				40,807				35,270				40,517			43,170			41,696				40,652

Period end
Total loans and leases	$	168,845			$	202,860			$	168,845			$	173,021		$	181,763		$	196,289			$	202,860
Total earning assets		169,615				202,653				169,615				173,497			182,267			196,046				202,653
Total assets		169,813				219,642				169,813				183,334			190,996			212,668				219,642

(1)

Periods subsequent to January 1, 2010 are presented in accordance with new consolidation guidance. Prior periods are presented on a managed basis (See Exhibit A: Non-GAAP Reconciliations - Global Card Services - Reconciliation on page 48).

(2)

Fully taxable-equivalent basis

(3)

Excludes goodwill impairment of $10.4 billion during the three and nine months ended September 30, 2010.

n/m = not meaningful

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


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

Bank of America Corporation and Subsidiaries

Global Card Services Key Indicators ⁽¹⁾

(Dollars in millions)


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

Loans
Average
Securitization impact		n/a		$	100,727			n/a			n/a			n/a		$	91,705		$	97,520
Held credit card outstandings	$	147,942			72,417		$	142,298		$	146,444		$	155,225			70,893			70,940

Total credit card outstandings	$	147,942		$	173,144		$	142,298		$	146,444		$	155,225		$	162,598		$	168,460


Period end
Securitization impact		n/a		$	94,328			n/a			n/a			n/a		$	89,715		$	94,328
Held credit card outstandings	$	140,871			70,206		$	140,871		$	143,130		$	149,555			71,109			70,206

Total credit card outstandings	$	140,871		$	164,534		$	140,871		$	143,130		$	149,555		$	160,824		$	164,534


Credit Quality
Charge-offs $
Securitization impact		n/a		$	8,473			n/a			n/a			n/a		$	2,926		$	3,308
Held net charge-offs	$	12,323			5,845		$	3,270		$	4,459		$	4,594			1,941			2,169

Total credit card net losses	$	12,323		$	14,318		$	3,270		$	4,459		$	4,594		$	4,867		$	5,477


Charge-offs %
Securitization impact		n/a			0.27	%		n/a			n/a			n/a			1.02	%		0.77	%
Held net charge-offs		11.14	%		10.79			9.12	%		12.21	%		12.00	%		10.86			12.13

Total credit card net losses		11.14	%		11.06	%		9.12	%		12.21	%		12.00	%		11.88	%		12.90	%


30+ Delinquency $
Securitization impact		n/a		$	7,047			n/a			n/a			n/a		$	6,599		$	7,047
Held delinquency	$	7,643			5,054		$	7,643		$	8,256		$	10,172			5,011			5,054

Total delinquency	$	7,643		$	12,101		$	7,643		$	8,256		$	10,172		$	11,610		$	12,101


30+ Delinquency %
Securitization impact		n/a			0.15	%		n/a			n/a			n/a			0.17	%		0.15	%
Held delinquency		5.43	%		7.20			5.43	%		5.77	%		6.80	%		7.05			7.20

Total delinquency		5.43	%		7.35	%		5.43	%		5.77	%		6.80	%		7.22	%		7.35	%


90+ Delinquency $
Securitization impact		n/a		$	3,600			n/a			n/a			n/a		$	3,550		$	3,600
Held delinquency	$	4,007			2,593		$	4,007		$	4,542		$	5,589			2,673			2,593

Total delinquency	$	4,007		$	6,193		$	4,007		$	4,542		$	5,589		$	6,223		$	6,193


90+ Delinquency %
Securitization impact		n/a			0.07	%		n/a			n/a			n/a			0.11	%		0.07	%
Held delinquency		2.84	%		3.69			2.84	%		3.17	%		3.74	%		3.76			3.69

Total delinquency		2.84	%		3.76	%		2.84	%		3.17	%		3.74	%		3.87	%		3.76	%


Other Global Card Services Key Indicators


Credit card data
Gross interest yield		11.07	%		11.40	%		11.13	%		10.89	%		11.18	%		11.34	%		11.18	%
Risk adjusted margin		2.13			2.06			3.28			1.33			1.83			1.47			0.26
New account growth (in thousands)		2,129			3,201			714			670			745			994			1,014
Purchase volumes	$	156,858		$	153,031		$	54,257		$	53,924		$	48,677		$	54,875		$	53,031

Debit Card Data
Debit purchase volumes	$	173,537		$	161,055		$	58,334		$	59,136		$	56,067		$	57,186		$	54,764

(1)

Periods subsequent to January 1, 2010 are presented in accordance with new consolidation guidance. Prior periods are presented on a managed basis.

(2)

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

n/a = not applicable

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


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

Bank of America Corporation and Subsidiaries

Home Loans & Insurance Segment Results

(Dollars in millions; except as noted)


	Nine Months Ended September 30								Third Quarter 2010				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009
	2010				2009				Third Quarter 2010				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009
Net interest income ⁽¹⁾	$	3,559			$	3,700			$	1,346			$	1,000			$	1,213			$	1,275			$	1,309
Noninterest income:
Mortgage banking income		4,417				7,505				1,756				1,020				1,641				1,816				1,424
Insurance income		1,725				1,728				574				561				590				618				594
All other income		462				179				68				214				180				82				86

Total noninterest income		6,604				9,412				2,398				1,795				2,411				2,516				2,104

Total revenue, net of interest expense		10,163				13,112				3,744				2,795				3,624				3,791				3,413

Provision for credit losses		7,292				8,995				1,302				2,390				3,600				2,249				2,897
Noninterest expense		9,125				8,540				2,979				2,817				3,329				3,164				3,049

Loss before income taxes		(6,254	)			(4,423	)			(537	)			(2,412	)			(3,305	)			(1,622	)			(2,533	)
Income tax benefit ⁽¹⁾		(2,304	)			(1,567	)			(193	)			(878	)			(1,233	)			(628	)			(898	)

Net loss	$	(3,950	)		$	(2,856	)		$	(344	)		$	(1,534	)		$	(2,072	)		$	(994	)		$	(1,635	)


Net interest yield ⁽¹⁾		2.53		%		2.55		%		2.87		%		2.13		%		2.58		%		2.64		%		2.59		%
Efficiency ratio ⁽¹⁾		89.78				65.13				79.57				100.78				91.85				83.47				89.33

Balance sheet

Average
Total loans and leases	$	130,685			$	129,910			$	127,713			$	130,664			$	133,745			$	132,326			$	132,599
Total earning assets		188,307				193,694				186,022				188,146				190,805				191,544				200,426
Total assets		228,765				229,212				223,133				229,168				234,116				232,827				236,086
Allocated equity		26,749				18,615				26,628				26,346				27,280				26,214				24,737

Period end
Total loans and leases	$	127,701			$	134,255			$	127,701			$	129,798			$	132,428			$	131,302			$	134,255
Total earning assets		178,970				197,550				178,970				188,091				183,898				188,349				197,550
Total assets		215,592				234,725				215,592				225,492				224,570				232,588				234,725

Period end (in billions)
Mortgage servicing portfolio ⁽²⁾	$	2,079.5			$	2,148.3			$	2,079.5			$	2,127.6			$	2,143.7			$	2,150.8			$	2,148.3

(1)

Fully taxable-equivalent basis

(2)

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

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


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

Bank of America Corporation and Subsidiaries

Home Loans & Insurance Key Indicators

(Dollars in millions, except as noted)


	Nine Months Ended September 30								Third Quarter 2010				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009
	2010				2009				Third Quarter 2010				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009
Mortgage servicing rights at fair value rollforward:
Beginning balance, beginning of period	$	19,465			$	12,733			$	14,745			$	18,842			$	19,465			$	17,539			$	18,535
Merrill Lynch balance, January 1, 2009		—				209				—				—				—				—				—
Net additions		2,755				4,693				742				882				1,131				1,035				1,738
Impact of customer payments		(2,960	)			(3,402	)			(923	)			(981	)			(1,056	)			(1,089	)			(1,111	)
Other changes in MSR fair value		(7,009	)			3,306				(2,313	)			(3,998	)			(698	)			1,980				(1,623	)

Ending balance	$	12,251			$	17,539			$	12,251			$	14,745			$	18,842			$	19,465			$	17,539

Capitalized mortgage servicing rights
(% of loans serviced)		73		bps		102		bps		73		bps		86		bps		110		bps		113		bps		102		bps
Mortgage loans serviced for investors (in billions)	$	1,669			$	1,726			$	1,669			$	1,706			$	1,717			$	1,716			$	1,726

Loan production:
Home Loans & Insurance
First mortgage	$	205,981			$	271,003			$	69,875			$	69,141			$	66,965			$	83,503			$	89,484
Home equity		5,602				8,068				2,000				1,831				1,771				2,420				2,225
Total Corporation ⁽¹⁾
First mortgage		213,365				291,517				71,925				71,938				69,502				86,588				95,654
Home equity		6,300				10,427				2,136				2,137				2,027				2,787				2,739

Mortgage banking income
Production income:
Core production revenue	$	4,560			$	5,776			$	1,849			$	1,428			$	1,283			$	1,576			$	1,573
Representations and warranties		(2,646	)			(1,335	)			(872	)			(1,248	)			(526	)			(516	)			(455	)

Total production income		1,914				4,441				977				180				757				1,060				1,118

Servicing income:
Servicing fees		4,841				4,618				1,623				1,649				1,569				1,601				1,590
Impact of customer payments		(2,961	)			(3,402	)			(924	)			(981	)			(1,056	)			(1,089	)			(1,111	)
Fair value changes of MSRs, net of economic hedge results ⁽²⁾		119				1,444				(90	)			12				197				95				(313	)
Other servicing-related revenue		504				404				170				160				174				149				140

Total net servicing income		2,503				3,064				779				840				884				756				306

Total Home Loans & Insurance mortgage banking income		4,417				7,505				1,756				1,020				1,641				1,816				1,424
Other business segments’ mortgage banking loss ⁽³⁾		(264	)			(366	)			(1	)			(122	)			(141	)			(164	)			(126	)

Total consolidated mortgage banking income	$	4,153			$	7,139			$	1,755			$	898			$	1,500			$	1,652			$	1,298

(1)

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

(2)

Includes sale of mortgage servicing rights.

(3)

Fully taxable-equivalent basis Includes the effect of transfers of mortgage loans from Home Loans & Insurance to the ALM portfolio included in All Other.

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


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

Bank of America Corporation and Subsidiaries

Global Commercial Banking Segment Results

(Dollars in millions)


	Nine Months Ended September 30							Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009				Third Quarter 2009
	2010			2009				Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009				Third Quarter 2009
Net interest income ⁽¹⁾	$	6,205		$	5,972			$	1,874		$	2,118		$	2,213		$	2,082			$	2,012
Noninterest income:
Service charges		1,599			1,556				528			528			543			522				533
All other income		563			796				157			132			274			212				227

Total noninterest income		2,162			2,352				685			660			817			734				760

Total revenue, net of interest expense		8,367			8,324				2,559			2,778			3,030			2,816				2,772

Provision for credit losses		2,103			5,925				554			623			926			1,843				2,057
Noninterest expense		2,876			2,902				1,000			909			967			930				959

Income (loss) before income taxes		3,388			(503	)			1,005			1,246			1,137			43				(244	)
Income tax expense (benefit) ⁽¹⁾		1,248			(244	)			368			456			424			74				(84	)

Net income (loss)	$	2,140		$	(259	)		$	637		$	790		$	713		$	(31	)		$	(160	)


Net interest yield ⁽¹⁾		3.03	%		3.25		%		2.61	%		3.13	%		3.39	%		3.04		%		3.05		%
Return on average equity		6.82			n/m				6.14			7.55			6.78			n/m				n/m
Efficiency ratio ⁽¹⁾		34.37			34.87				39.06			32.73			31.92			33.02				34.61

Balance sheet

Average
Total loans and leases	$	206,209		$	232,426			$	198,839		$	206,111		$	213,841		$	219,239			$	225,994
Total earning assets ⁽²⁾		273,760			245,891				284,941			271,566			264,549			271,354				261,876
Total assets ⁽²⁾		304,581			277,894				315,632			302,842			295,043			301,865				292,878
Total deposits		145,857			125,333				148,534			145,427			143,557			143,182				131,548
Allocated equity		41,924			41,805				41,172			41,971			42,645			42,307				42,193

Period end
Total loans and leases	$	195,858		$	221,543			$	195,858		$	203,173		$	211,255		$	215,237			$	221,543
Total earning assets ⁽²⁾		271,410			253,557				271,410			272,830			271,288			264,855				253,557
Total assets ⁽²⁾		302,684			284,869				302,684			303,996			301,622			295,947				284,869
Total deposits		150,981			133,214				150,981			147,400			145,654			147,023				133,214

(1)

Fully taxable-equivalent basis

(2)

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

n/m = not meaningful

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


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

Bank of America Corporation and Subsidiaries

Global Commercial Banking Key Indicators

(Dollars in millions)


	Nine Months Ended September 30						Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
	2010			2009			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
Revenue, net of interest expense by service segment
Business lending	$	5,087		$	5,139		$	1,552		$	1,656		$	1,879		$	1,746		$	1,724
Treasury services		3,280			3,185			1,007			1,122			1,151			1,070			1,048

Total revenue, net of interest expense ⁽¹⁾	$	8,367		$	8,324		$	2,559		$	2,778		$	3,030		$	2,816		$	2,772


Average loans and leases by product
Commercial - domestic	$	104,572		$	121,192		$	101,446		$	104,261		$	108,081		$	111,341		$	115,324
Commercial real estate		53,765			63,160			49,747			53,721			57,917			60,351			62,773
Direct/Indirect consumer		45,490			45,297			45,400			45,776			45,400			45,001			45,309
Other		2,382			2,777			2,246			2,353			2,443			2,546			2,588

Total average loans and leases	$	206,209		$	232,426		$	198,839		$	206,111		$	213,841		$	219,239		$	225,994

Loan spread		2.31	%		2.01	%		2.29	%		2.32	%		2.30	%		2.18	%		2.11	%

Credit quality
Reservable utilized criticized exposure ⁽²⁾	$	36,332		$	42,109		$	36,332		$	37,613		$	39,586		$	41,225		$	42,109
		18.45	%		18.59	%		18.45	%		18.50	%		18.53	%		18.75	%		18.59	%
Nonperforming loans, leases and foreclosed properties ⁽³⁾	$	9,414		$	10,413		$	9,414		$	10,027		$	10,814		$	11,083		$	10,413
		4.79	%		4.69	%		4.79	%		4.92	%		5.10	%		5.13	%		4.69	%

Average deposit balances
Interest-bearing	$	53,973		$	50,134		$	53,558		$	54,187		$	54,182		$	53,862		$	49,533
Noninterest-bearing		91,884			75,199			94,976			91,240			89,375			89,320			82,015

Total	$	145,857		$	125,333		$	148,534		$	145,427		$	143,557		$	143,182		$	131,548

(1)

Fully taxable-equivalent basis

(2)

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

(3)

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

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


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

Bank of America Corporation and Subsidiaries

Global Banking & Markets Segment Results

(Dollars in millions)


	Nine Months Ended September 30								Third Quarter 2010				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009
	2010				2009				Third Quarter 2010				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009
Net interest income ⁽¹⁾	$	5,997			$	7,403			$	1,874			$	1,977			$	2,146			$	2,150			$	2,255
Noninterest income:
Service charges		1,568				1,478				520				529				519				565				555
Investment and brokerage services		1,880				2,066				581				676				623				596				590
Investment banking income		3,824				3,957				1,306				1,301				1,217				1,970				1,232
Trading account profits		8,727				10,426				2,453				1,202				5,072				1,377				3,411
All other income (loss)		935				1,695				442				320				173				(1,059	)			(369	)

Total noninterest income		16,934				19,622				5,302				4,028				7,604				3,449				5,419

Total revenue, net of interest expense		22,931				27,025				7,176				6,005				9,750				5,599				7,674

Provision for credit losses		(43	)			1,451				(157	)			(133	)			247				547				538
Noninterest expense		13,602				12,328				4,446				4,788				4,368				3,594				3,653

Income before income taxes		9,372				13,246				2,887				1,350				5,135				1,458				3,483
Income tax expense ⁽¹⁾		3,777				4,623				1,439				422				1,916				23				1,241

Net income	$	5,595			$	8,623			$	1,448			$	928			$	3,219			$	1,435			$	2,242


Return on average equity		13.97		%		23.61		%		10.94		%		7.00		%		23.71		%		11.05		%		17.49		%
Efficiency ratio ⁽¹⁾		59.32				45.62				61.96				79.73				44.80				64.19				47.60

Sales and trading revenue
Fixed income, currency and commodities	$	11,358			$	11,454			$	3,527			$	2,316			$	5,515			$	1,270			$	4,004
Equity income		3,356				3,951				974				852				1,530				950				1,265

Total sales and trading revenue ⁽²⁾	$	14,714			$	15,405			$	4,501			$	3,168			$	7,045			$	2,220			$	5,269


Balance sheet

Average
Total trading-related assets⁽³⁾	$	506,461			$	513,037			$	497,954			$	512,566			$	508,986			$	493,700			$	496,278
Total loans and leases		97,925				114,578				98,847				95,902				99,027				99,635				105,995
Total market-based earning assets		514,249				478,288				494,777				521,010				527,318				490,563				468,844
Total earning assets⁽⁴⁾		604,391				589,216				584,986				607,915				620,663				585,394				570,599
Total assets⁽⁴⁾		764,909				789,860				745,097				771,267				778,731				746,258				754,295
Total deposits		107,927				103,630				106,865				112,959				103,925				108,544				104,228
Allocated equity		53,561				48,820				52,519				53,138				55,053				51,523				50,844

Period end
Total trading-related assets⁽³⁾	$	508,611			$	448,692			$	508,611			$	471,314			$	440,524			$	410,755			$	448,692
Total loans and leases		99,476				101,730				99,476				95,647				95,588				95,930				101,730
Total market-based earning assets		500,664				418,754				500,664				463,069				440,304				404,315				418,754
Total earning assets ⁽⁴⁾		593,911				516,155				593,911				549,911				530,954				498,765				516,155
Total assets⁽⁴⁾		747,917				703,275				747,917				711,444				687,308				649,876				703,275
Total deposits		109,956				98,704				109,956				105,942				104,918				102,093				98,704

Trading-related assets (average)
Trading account securities	$	203,204			$	202,560			$	201,500			$	204,142			$	203,998			$	200,914			$	198,730
Reverse repurchases		182,466				159,989				174,297				184,146				189,118				173,574				155,608
Securities borrowed		55,656				48,559				54,782				57,309				54,878				53,092				53,694
Derivative assets		65,135				101,929				67,375				66,969				60,992				66,120				88,246

Total trading-related assets ⁽³⁾	$	506,461			$	513,037			$	497,954			$	512,566			$	508,986			$	493,700			$	496,278



(1) Fully taxable-equivalent basis
(2) Sales and trading revenue represents total Global Banking & Markets revenue, net of interest expense as adjusted by the following items:
Total Global Banking & Markets revenue, net of interest expense	$	*22,931*			$	27,025			$	*7,176*			$	6,005			$	9,750			$	5,599			$	7,674
Total Global Banking revenue, net of interest expense		*(6,969*	)			(9,844	)			*(2,287*	)			(2,391	)			(2,290	)			(2,152	)			(1,883	)
Investment banking income		*(1,766*	)			(1,940	)			*(573*	)			(596	)			(596	)			(908	)			(635	)
Fair value option net interest income		*(135*	)			(207	)			*(54*	)			(35	)			(47	)			(55	)			(66	)
Revenue (loss) shared		*653*				319				*239*				185				228				(264	)			179
Loss on sale of prime brokerage business		—				52				—				—				—				—				—

Total sales and trading revenue	$	*14,714*			$	15,405			$	*4,501*			$	3,168			$	7,045			$	2,220			$	5,269

(3)

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

(4)

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

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


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

Bank of America Corporation and Subsidiaries

Global Banking & Markets Key Indicators

(Dollars in millions)


	Nine Months Ended September 30								Third Quarter 2010				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009
	2010				2009				Third Quarter 2010				Second Quarter 2010				First Quarter 2010				Fourth Quarter 2009				Third Quarter 2009
Investment banking income ⁽¹⁾
Advisory ⁽²⁾	$	682			$	828			$	273			$	242			$	167			$	360			$	207
Debt issuance		2,398				2,323				798				827				773				805				724
Equity issuance		1,003				1,067				341				318				344				893				403

		4,083				4,218				1,412				1,387				1,284				2,058				1,334
Offset for intercompany fees ⁽³⁾		(153	)			(263	)			(41	)			(68	)			(44	)			(462	)			(80	)

Total investment banking income	$	3,930			$	3,955			$	1,371			$	1,319			$	1,240			$	1,596			$	1,254


Global Corporate & Investment Banking Key Indicators

Revenue, net of interest expense - by service segment
Business lending	$	2,641			$	2,098			$	821			$	870			$	948			$	748			$	604
Treasury services		2,029				5,966				645				712				673				701				749
Investment banking related ⁽⁴⁾		2,295				1,780				819				807				668				702				552

Total revenue, net of interest expense	$	6,965			$	9,844			$	2,285			$	2,389			$	2,289			$	2,151			$	1,905

Average deposit balances
Interest-bearing	$	53,876			$	46,708			$	55,839			$	55,116			$	50,614			$	49,155			$	44,141
Noninterest-bearing		45,870				47,819				44,046				49,073				44,497				49,591				51,505

Total average deposits	$	99,746			$	94,527			$	99,885			$	104,189			$	95,111			$	98,746			$	95,646


Loan spread		1.88		%		1.56		%		1.77		%		1.94		%		1.94		%		1.61		%		1.61		%

Provision for credit losses	$	(81	)		$	1,303			$	(101	)		$	(191	)		$	211			$	295			$	441

Credit quality ^{(5, 6)}
Reservable utilized criticized exposure	$	7,131			$	11,842			$	7,131			$	7,290			$	9,664			$	10,989			$	11,842
		6.95		%		11.15		%		6.95		%		7.29		%		9.69		%		10.72		%		11.15		%
Nonperforming loans, leases and foreclosed properties	$	992			$	1,335			$	992			$	905			$	922			$	1,240			$	1,335
		1.19		%		1.53		%		1.19		%		1.13		%		1.16		%		1.49		%		1.53		%
Average loans and leases by product
Commercial - domestic	$	34,138			$	47,381			$	32,682			$	33,594			$	36,178			$	39,664			$	42,602
Commercial real estate		31				77				25				31				36				46				55
Commercial lease financing		23,433				24,220				23,356				23,250				23,696				23,873				24,139
Commercial - foreign		23,094				25,071				24,646				22,705				21,901				22,375				23,764
Direct/Indirect consumer		1				4				—				1				2				2				3
Other		42				58				43				42				43				45				55

Total average loans and leases	$	80,739			$	96,811			$	80,752			$	79,623			$	81,856			$	86,005			$	90,618

(1)

Represents total investment banking income for the Corporation, including amounts related to Global Banking & Markets of $3.8 billion and $4.0 billion for the nine months ended September 30, 2010 and 2009; $1.3 billion, $1.3 billion, and $1.2 billion for the third, second and first quarters of 2010, and $2.0 billion and $1.2 billion for the fourth and third quarters of 2009, respectively.

(2)

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

(3)

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

(4)

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

(5)

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

(6)

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

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


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

Bank of America Corporation and Subsidiaries

Investment Banking Product Rankings

Nine Months Ended September 30, 2010

Global

U.S.

Product
Ranking

Market
Share

Product
Ranking

Market
Share

High-yield corporate debt

10.8

14.3

Leveraged loans

17.1

22.5

Mortgage-backed securities

14.1

16.8

Asset-backed securities

14.0

19.1

Convertible debt

7.3

13.9

Common stock underwriting

6.3

11.2

Investment grade corporate debt

6.3

13.2

Syndicated loans

8.9

21.6

Net investment banking revenue

7.1

12.2

Announced mergers and acquisitions

14.2

16.3

Equity capital markets

6.4

11.8

Debt capital markets

6.5

11.0

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

•

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

•

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

•

Mergers and acquisitions volume rankings are for announced transactions and give full credit to all advisors advising either the target or acquiror.

•

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

Highlights


*Global top 3 rankings in:*

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

*U.S. top 3 rankings in:*

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

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


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

Bank of America Corporation and Subsidiaries

Super Senior Collateralized Debt Obligation Exposure

(Dollars in millions)


	September 30, 2010
	Subprime ⁽¹⁾		Retained Positions		Total Subprime		Non- Subprime ⁽²⁾		Total
Unhedged	$	729	$	327	$	1,056	$	301	$	1,357
Hedged⁽³⁾		604		—		604		236		840

Total	$	1,333	$	327	$	1,660	$	537	$	2,197

(1)

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

(2)

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

(3)

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

Credit Default Swaps with Monoline Financial Guarantors

(Dollars in millions)


	September 30, 2010
	Super Senior CDOs				Other Guaranteed Positions				Total
Notional	$	3,276			$	35,556			$	38,832

Mark-to-market or guarantor receivable		2,860				6,880				9,740
Credit valuation adjustment		(2,188	)			(3,444	)			(5,632	)

Total	$	672			$	3,436			$	4,108

Credit valuation adjustment %		77		%		50		%		58		%

(Writedowns) gains during the three months ended September 30, 2010	$	(59	)		$	146			$	87

(Writedowns) gains during the nine months ended September 30, 2010		(392	)			300				(92	)

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


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

Bank of America Corporation and Subsidiaries

Global Wealth & Investment Management Segment Results

(Dollars in millions, except as noted)


	Nine Months Ended September 30						Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
	2010			2009			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
Net interest income ⁽¹⁾	$	4,068		$	4,271		$	1,292		$	1,385		$	1,391		$	1,273		$	1,329
Noninterest income:
Investment and brokerage services		6,525			6,262			2,134			2,241			2,150			2,161			2,104
All other income		1,979			1,463			646			705			628			1,835			439

Total noninterest income		8,504			7,725			2,780			2,946			2,778			3,996			2,543

Total revenue, net of interest expense		12,572			11,996			4,072			4,331			4,169			5,269			3,872

Provision for credit losses		491			1,007			128			121			242			53			515
Noninterest expense		10,011			9,263			3,449			3,369			3,193			3,145			3,005

Income before income taxes		2,070			1,726			495			841			734			2,071			352
Income tax expense ⁽¹⁾		941			603			182			485			274			774			118

Net income	$	1,129		$	1,123		$	313		$	356		$	460		$	1,297		$	234

Net interest yield ⁽¹⁾		2.33	%		2.60	%		2.13	%		2.36	%		2.51	%		2.28	%		2.53	%
Return on average equity		6.53			8.41			5.19			6.07			8.49			26.79			4.94
Efficiency ratio ⁽¹⁾		79.63			77.22			84.70			77.78			76.58			59.68			77.64

Balance sheet
Average
Total loans and leases	$	99,122		$	104,444		$	99,318		$	99,007		$	99,038		$	100,238		$	101,155
Total earning assets ⁽²⁾		233,528			219,548			240,796			234,976			224,633			221,874			208,699
Total assets ⁽²⁾		264,554			251,719			271,304			265,903			256,289			252,489			239,352
Total deposits		230,604			226,964			237,878			229,272			224,514			223,055			214,992
Allocated equity		23,137			17,850			23,896			23,515			21,977			19,209			18,802

Period end
Total loans and leases	$	99,772		$	99,281		$	99,772		$	99,351		$	98,538		$	99,571		$	99,281
Total earning assets ⁽²⁾		240,831			217,936			240,831			228,257			229,146			221,115			217,936
Total assets ⁽²⁾		272,272			248,472			272,272			259,728			261,325			254,473			248,472
Total deposits		243,586			220,481			243,586			229,551			230,044			224,839			220,481

(1)

Fully taxable-equivalent basis

(2)

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

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


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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions, except as noted)


	Nine Months Ended September 30						Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
	2010			2009			Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
Revenues
Merrill Lynch Global Wealth Management	$	9,503		$	9,447		$	3,096		$	3,244		$	3,163		$	3,115		$	3,080
U.S. Trust		1,908			1,871			611			656			641			607			598
Retirement & Philanthropic Services		810			754			269			274			267			261			249
Other ⁽²⁾		351			(76	)		96			157			98			1,286			(55	)

Total revenues	$	12,572		$	11,996		$	4,072		$	4,331		$	4,169		$	5,269		$	3,872


Client Balances ⁽³⁾
Client Balances by Business
Merrill Lynch Global Wealth Management	$	1,522,689		$	1,444,526		$	1,522,689		$	1,460,283		$	1,502,574		$	1,482,059		$	1,444,526
U.S. Trust		339,940			361,350			339,940			335,089			359,219			362,734			361,350
Retirement & Philanthropic Services		257,584			245,830			257,584			247,674			257,991			250,891			245,830
Other/Client brokerage assets and assets in custody included in assets under management ⁽²⁾		48,918			180,650			48,918			48,717			166,852			176,830			180,650

Client Balances by Type
Assets under management ⁽⁴⁾	$	624,158		$	739,831		$	624,158		$	603,306		$	750,721		$	749,852		$	739,831
Client brokerage assets ⁽⁵⁾		1,436,098			1,362,423			1,436,098			1,375,264			1,423,576			1,401,063			1,362,423
Assets in custody		125,784			142,293			125,784			131,557			144,705			143,870			142,293
Client deposits		243,586			220,481			243,586			229,551			230,044			224,839			220,481
Loans and leases		99,772			99,281			99,772			99,351			98,538			99,571			99,281
Less: Client brokerage assets and assets in custody included in assets under management		(360,267	)		(331,952	)		(360,267	)		(347,266	)		(360,948	)		(346,681	)		(331,952	)

Total client balances	$	2,169,131		$	2,232,357		$	2,169,131		$	2,091,763		$	2,286,636		$	2,272,514		$	2,232,357


Assets under Management Flows ⁽⁴⁾
Liquidity assets under management⁽⁶⁾	$	(35,706	)	$	(86,145	)	$	(7,555	)	$	(7,830	)	$	(20,321	)	$	(11,502	)	$	(22,797	)
Long-term assets under management ⁽⁷⁾		13,077			(1,923	)		6,097			392			6,588			6,893			5,039

Total assets under management flows	$	(22,629	)	$	(88,068	)	$	(1,458	)	$	(7,438	)	$	(13,733	)	$	(4,609	)	$	(17,758	)


Associates

Total Wealth Advisors		16,790			16,344			16,790			16,577			16,465			16,406			16,344

Total Client Facing Professionals		19,761			19,214			19,761			19,515			19,330			19,255			19,214

Merrill Lynch Global Wealth Management Metrics

Number of Financial Advisors		15,340			14,979			15,340			15,142			15,005			15,006			14,979

Financial Advisor Productivity⁽⁸⁾ (in thousands)	$	841		$	825		$	851		$	853		$	819		$	839		$	837

U.S. Trust Metrics

Client Facing Professionals		2,178			2,201			2,178			2,166			2,199			2,208			2,201

(1)

Global Wealth and Investment Management (GWIM) services clients through three primary businesses: Merrill Lynch Global Wealth Management (MLGWM); U.S. Trust, Bank of America Private Wealth Management (U.S. Trust); and Retirement & Philanthropic Services.

(2)

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

(3)

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

(4)

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

(5)

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

(6)

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

(7)

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

(8)

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

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


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

Bank of America Corporation and Subsidiaries

All Other Results ⁽¹⁾

(Dollars in millions)


	Nine Months Ended September 30						Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
	2010			2009			2010			2010			2010			2009			2009
Net interest income ⁽²⁾	$	354		$	(5,250	)	$	48		$	163		$	143		$	(1,527	)	$	(1,798	)
Noninterest income:
Card loss		—			(464	)		—			—			—			(432	)		(721	)
Equity investment income		2,575			8,184			94			2,114			367			830			882
Gains on sales of debt securities		1,456			3,585			794			15			647			852			1,442
All other income (loss)		632			(3,420	)		(276	)		784			124			(2,280	)		(2,053	)

Total noninterest income (loss)		4,663			7,885			612			2,913			1,138			(1,030	)		(450	)

Total revenue, net of interest expense		5,017			2,635			660			3,076			1,281			(2,557	)		(2,248	)

Provision for credit losses ⁽³⁾		2,796			(1,885	)		330			1,248			1,218			(1,511	)		(1,218	)
Merger and restructuring charges		1,450			2,188			421			508			521			533			594
All other noninterest expense		1,895			2,086			129			596			1,170			816			845

Income (loss) before income taxes		(1,124	)		246			(220	)		724			(1,628	)		(2,395	)		(2,469	)
Income tax benefit ⁽²⁾		(1,751	)		(1,894	)		(543	)		(371	)		(837	)		(878	)		(928	)

Net income (loss)	$	627		$	2,140		$	323		$	1,095		$	(791	)	$	(1,517	)	$	(1,541	)


Balance sheet

Average
Total loans and leases	$	250,553		$	165,086		$	238,457		$	257,245		$	256,151		$	154,038		$	155,184
Total deposits		59,640			92,139			44,586			64,202			70,418			78,635			95,131

Period end
Total loans and leases	$	241,837		$	153,880		$	241,837		$	254,615		$	255,851		$	161,153		$	153,880
Total deposits		37,130			81,449			37,130			56,986			56,468			65,435			81,449

(1)

All Other consists of equity investment activities including Global Principal Investments, Corporate Investments and Strategic Investments, the residential mortgage portfolio associated with ALM activities, the residual impact of cost allocation processes, merger and restructuring charges, intersegment eliminations, the results of First Republic Bank prior to its sale on July 1, 2010, fair value adjustments related to certain Merrill Lynch structured notes and the results of certain businesses that are expected to be or have been sold or are in the process of being liquidated. All Other also includes certain amounts associated with ALM activities, including the residual impact of funds transfer pricing allocation methodologies, amounts associated with the change in the value of derivatives used as economic hedges of interest rate and foreign exchange rate fluctuations, foreign exchange rate fluctuations related to revaluation of foreign-denominated debt issuances, certain gains (losses) on sales of whole mortgage loans, and gains (losses) on sales of debt securities. All Other also includes adjustments to noninterest income and income tax expense to remove the FTE impact of items (primarily low-income housing tax credits) that have been grossed up within noninterest income to a FTE amount in the business segments. In addition, the 2010 periods are presented in accordance with new consolidation guidance. The 2009 periods are presented on a managed basis and include the offsetting securitization impact to present Global Card Services on a managed basis. (See Exhibit A: Non-GAAP Reconciliations—All Other—Reconciliation on page 49).

(2)

Fully taxable-equivalent basis

(3)

Periods subsequent to January 1, 2010 are presented in accordance with the new consolidation guidance. Prior periods represent the provision for credit losses for All Other combined with the Global Card Services securitization offset.

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


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

Bank of America Corporation and Subsidiaries

Equity Investments

(Dollars in millions)

Global Principal Investments Exposures

Equity Investment
Income (Loss)

September 30, 2010

June 30,
2010

September 30, 2010

Book
Value

Unfunded
Commitments

Total

Total

Three Months
Ended

Nine Months
Ended

Global Principal Investments:

Private Equity Investments

4,813

188

5,001

6,441

(167

)

833

Global Real Estate

1,994

208

2,202

2,180

Global Strategic Capital

2,751

612

3,363

4,940

138

Legacy/Other Investments

2,614

479

3,093

1,249

116

432

Total Global Principal Investments

12,172

1,487

13,659

14,810

1,437

Components of Equity Investment Income (Loss)

(Dollars in millions)


	Nine Months Ended September 30						Third Quarter 2010		Second Quarter 2010		First Quarter 2010			Fourth Quarter 2009		Third Quarter 2009
	2010			2009			Third Quarter 2010		Second Quarter 2010		First Quarter 2010			Fourth Quarter 2009		Third Quarter 2009
Global Principal Investments	$	1,437		$	551		$	46	$	814	$	577		$	671	$	713
Corporate Investments		(300	)		(153	)		5		6		(311	)		65		109
Strategic and other investments ⁽¹⁾		1,438			7,786			43		1,294		101			94		60

Total equity investment income included in All Other		2,575			8,184			94		2,114		367			830		882
Total equity investment income (loss) included in the business segments ⁽²⁾		1,173			(196	)		263		652		258			1,196		(39	)

Total consolidated equity investment income	$	3,748		$	7,988		$	357	$	2,766	$	625		$	2,026	$	843

(1)

For the nine months ended September 30, 2009, includes a $7.2 billion pre-tax gain related to the sales of portions of the Corporation's China Construction Bank investment.

(2)

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

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


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

Bank of America Corporation and Subsidiaries

Outstanding Loans and Leases

(Dollars in millions)


	September 30 2010		June 30 2010		Increase (Decrease)
Consumer
Residential mortgage ⁽¹⁾	$	243,141	$	245,502	$	(2,361	)
Home equity		141,558		146,274		(4,716	)
Discontinued real estate ⁽²⁾		13,442		13,780		(338	)
Credit card - domestic		113,609		116,739		(3,130	)
Credit card - foreign		27,262		26,391		871
Direct/Indirect consumer⁽³⁾		92,479		98,239		(5,760	)
Other consumer ⁽⁴⁾		2,924		3,008		(84	)

Total consumer		634,415		649,933		(15,518	)


Commercial
Commercial - domestic ⁽⁵⁾		191,096		191,458		(362	)
Commercial real estate ⁽⁶⁾		52,819		61,587		(8,768	)
Commercial lease financing		21,321		21,392		(71	)
Commercial - foreign		30,575		27,909		2,666

Total commercial loans excluding loans measured at fair value		295,811		302,346		(6,535	)
Commercial loans measured at fair value ⁽⁷⁾		3,684		3,898		(214	)

Total commercial		299,495		306,244		(6,749	)

Total loans and leases	$	933,910	$	956,177	$	(22,267	)

(1)

Includes foreign residential mortgages of $98 million and $500 million at September 30, 2010 and June 30, 2010.

(2)

Includes $12.1 billion and $12.4 billion of pay option loans, and $1.4 billion and $1.4 billion of subprime loans at September 30, 2010 and June 30, 2010. The Corporation no longer originates these products.

(3)

Includes dealer financial services loans of $44.5 billion and $46.4 billion, consumer lending of $14.3 billion and $15.8 billion, domestic securities-based lending margin loans of $15.7 billion and $14.6 billion, student loans of $7.0 billion and $10.3 billion, foreign consumer loans of $7.7 billion and $7.5 billion, and other consumer loans of $3.3 billion and $3.7 billion at September 30, 2010 and June 30, 2010.

(4)

Includes consumer finance loans of $2.0 billion and $2.1 billion, other foreign consumer loans of $846 million and $733 million, and consumer overdrafts of $66 million and $186 million at September 30, 2010 and June 30, 2010.

(5)

Includes small business commercial - domestic loans, including card related products, of $15.2 billion and $15.9 billion at September 30, 2010 and June 30, 2010.

(6)

Includes domestic commercial real estate loans of $50.1 billion and $59.1 billion, and foreign commercial real estate loans of $2.7 billion and $2.4 billion at September 30, 2010 and June 30, 2010.

(7)

Certain commercial loans are accounted for under the fair value option and include commercial - domestic loans of $1.8 billion and $2.1 billion, commercial - foreign loans of $1.8 billion and $1.7 billion, and commercial real estate loans of $54 million and $114 million at September 30, 2010 and June 30, 2010.

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


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

Bank of America Corporation and Subsidiaries

Quarterly Average Loans and Leases by Business Segment

(Dollars in millions)


	Third Quarter 2010
	Total Corporation		Deposits		Global Card Services ⁽¹⁾		Home Loans & Insurance			Global Commercial Banking		Global Banking & Markets		GWIM		All Other ⁽¹⁾
Consumer
Residential mortgage	$	237,292	$	—	$	—	$	—		$	286	$	509	$	35,316	$	201,181
Home equity		143,083		—		—		125,688			914		—		16,330		151
Discontinued real estate		13,632		—		—		—			—		—		—		13,632
Credit card - domestic		115,251		—		115,251		—			—		—				—
Credit card - foreign		27,047		—		27,047		—			—		—		—		—
Direct/Indirect consumer		95,692		71		15,785		95			45,400		388		24,872		9,081
Other consumer		2,955		127		782		(232	)		—		9		17		2,252

Total consumer		634,952		198		158,865		125,551			46,600		906		76,535		226,297

Commercial
Commercial - domestic		192,306		295		11,044		2,155			101,446		45,876		20,649		10,841
Commercial real estate		55,660		2		213		7			49,747		911		1,954		2,826
Commercial lease financing		21,402		—		—		—			1		23,365		30		(1,994	)
Commercial - foreign		30,540		—		1,069		—			1,045		27,789		150		487

Total commercial		299,908		297		12,326		2,162			152,239		97,941		22,783		12,160

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


	Second Quarter 2010
	Total Corporation		Deposits		Global Card Services ⁽¹⁾		Home Loans & Insurance			Global Commercial Banking		Global Banking & Markets		GWIM		All Other⁽¹⁾
Consumer
Residential mortgage	$	247,715	$	—	$	—	$	—		$	304	$	513	$	35,276	$	211,622
Home equity		148,219		—		—		129,010			923		—		16,531		1,755
Discontinued real estate		13,972		—		—		—			—		—		—		13,972
Credit card - domestic		118,738		—		118,738		—			—		—		—		—
Credit card - foreign		27,706		—		27,706		—			—		—		—		—
Direct/Indirect consumer		98,549		76		17,654		101			45,776		82		24,112		10,748
Other consumer		2,958		132		673		(209	)		—		9		19		2,334

Total consumer		657,857		208		164,771		128,902			47,003		604		75,938		240,431

Commercial
Commercial - domestic		195,144		341		11,562		1,755			104,261		45,019		20,874		11,332
Commercial real estate		64,218		5		193		7			53,721		1,363		2,019		6,910
Commercial lease financing		21,271		—		—		—			1		23,250		30		(2,010	)
Commercial - foreign		28,564		—		1,045		—			1,125		25,666		146		582

Total commercial		309,197		346		12,800		1,762			159,108		95,298		23,069		16,814

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


	Third Quarter 2009
	Total Corporation		Deposits		Global Card Services ⁽¹⁾		Home Loans & Insurance			Global Commercial Banking		Global Banking & Markets		GWIM		All Other⁽¹⁾
Consumer
Residential mortgage	$	241,924	$	—	$	—	$	—		$	371	$	622	$	36,170	$	204,761
Home equity		153,269		—		—		130,751			994		—		18,380		3,144
Discontinued real estate		16,570		—		—		—			—		—		—		16,570
Credit card - domestic		49,751		—		137,312		—			—		—		—		(87,561	)
Credit card - foreign		21,189		—		31,148		—			—		—		—		(9,959	)
Direct/Indirect consumer		100,012		103		24,645		59			45,309		8		22,273		7,615
Other consumer		3,331		288		702		25			—		12		6		2,298

Total consumer		586,046		391		193,807		130,835			46,674		642		76,829		136,868

Commercial
Commercial - domestic		216,332		282		13,261		1,753			115,324		51,300		21,979		12,433
Commercial real estate		74,276		5		149		11			62,773		1,431		2,230		7,677
Commercial lease financing		22,068		—		—		—			1		24,141		—		(2,074	)
Commercial - foreign		31,533		—		1,433		—			1,222		28,481		117		280

Total commercial		344,209		287		14,843		1,764			179,320		105,353		24,326		18,316

Total loans and leases	$	930,255	$	678	$	208,650	$	132,599		$	225,994	$	105,995	$	101,155	$	155,184

(1)

Periods subsequent to January 1, 2010 are presented in accordance with new consolidation guidance. Prior periods for Global Card Services is presented on a managed basis with a corresponding offset in All Other.

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


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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Commercial Utilized							Total Commercial Committed
	September 30 2010		June 30 2010		Increase (Decrease)			September 30 2010			June 30 2010			Increase (Decrease)
Diversified financials	$	58,176	$	69,026	$	(10,850	)	$	88,222		$	98,177		$	(9,955	)
Real estate⁽⁴⁾		64,484		70,195		(5,711	)		79,016			85,714			(6,698	)
Government and public education		45,280		44,636		644			61,111			60,598			513
Healthcare equipment and services		29,980		30,439		(459	)		47,373			47,445			(72	)
Capital goods		22,693		22,699		(6	)		45,598			45,412			186
Retailing		24,130		23,590		540			42,560			42,497			63
Consumer services		26,377		27,436		(1,059	)		41,484			42,095			(611	)
Materials		15,928		15,471		457			33,082			32,452			630
Banks		28,702		26,430		2,272			31,918			29,375			2,543
Commercial services and supplies		20,483		22,117		(1,634	)		30,893			32,414			(1,521	)
Food, beverage and tobacco		14,075		14,285		(210	)		26,861			27,300			(439	)
Insurance		18,742		19,293		(551	)		26,028			26,852			(824	)
Individuals and trusts		20,029		21,997		(1,968	)		25,267			27,679			(2,412	)
Energy		9,451		9,057		394			24,942			24,073			869
Utilities		6,687		7,130		(443	)		24,515			23,927			588
Media		11,912		12,042		(130	)		21,133			20,902			231
Transportation		11,895		11,869		26			17,892			17,842			50
Religious and social organizations		8,999		8,955		44			11,312			11,206			106
Technology hardware and equipment		4,338		4,260		78			10,673			10,640			33
Telecommunication services		4,054		4,224		(170	)		9,882			9,880			2
Pharmaceuticals and biotechnology		2,583		2,527		56			9,625			10,136			(511	)
Software and services		3,728		3,170		558			9,345			9,158			187
Consumer durables and apparel		4,342		4,173		169			8,897			9,012			(115	)
Food and staples retailing		3,278		4,589		(1,311	)		6,276			7,743			(1,467	)
Automobiles and components		2,021		2,089		(68	)		5,293			5,219			74
Other		3,709		4,360		(651	)		7,391			8,728			(1,337	)
Total commercial credit exposure by industry	$	466,076	$	486,059	$	(19,983	)	$	746,589		$	766,476		$	(19,887	)

Net credit default protection purchased on total commitments ⁽⁵⁾								$	(20,487	)	$	(20,042	)

(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 $79.9 billion and $62.9 billion at September 30, 2010 and June 30, 2010. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $20.6 billion and $19.0 billion which consists primarily of other marketable securities at September 30, 2010 and June 30, 2010.

(2)

Total commercial utilized and total commercial committed exposure includes loans and letters of credit measured at fair value and are comprised of loans outstanding of $3.7 billion and $3.9 billion and issued letters of credit at notional value of $1.6 billion at both September 30, 2010 and June 30, 2010. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $26.9 billion and $26.0 billion at September 30, 2010 and June 30, 2010.

(3)

Includes small business commercial - domestic exposure.

(4)

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

(5)

Represents net notional credit protection purchased.

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


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

Bank of America Corporation and Subsidiaries

Net Credit Default Protection by Maturity Profile⁽¹⁾


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

(1)

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

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

(Dollars in millions)


	September 30, 2010					June 30, 2010
Ratings ⁽³⁾	Net Notional			Percent		Net Notional			Percent
AAA	$	—		—	%	$	—		—	%
AA		(189	)	0.9			(111	)	0.6
A		(6,577	)	32.0			(6,684	)	33.3
BBB		(8,440	)	41.2			(8,054	)	40.2
BB		(2,206	)	10.8			(2,331	)	11.6
B		(1,634	)	8.0			(1,536	)	7.7
CCC and below		(853	)	4.2			(924	)	4.6
NR⁽⁴⁾		(588	)	2.9			(402	)	2.0
Total net credit default protection	$	(20,487	)	100.0	%	$	(20,042	)	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 $(467) million and $(342) million in net credit default swap index positions at September 30, 2010 and June 30, 2010. While index positions are principally investment grade, credit default swaps indices include names in and across each of the ratings categories.

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


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

Bank of America Corporation and Subsidiaries

Selected Emerging Markets ⁽¹⁾

(Dollars in millions)


	Loans and Leases, and Loan Commitments		Other Financing ⁽²⁾		Derivative Assets ⁽³⁾		Securities / Other Investments ⁽⁴⁾		Total Cross–border Exposure ⁽⁵⁾		Local Country Exposure Net of Local Liabilities ⁽⁶⁾		Total Emerging Markets Exposure at September 30, 2010		Increase (Decrease) from June 30, 2010
Region/Country
Asia Pacific
China ⁽⁷⁾	$	751	$	898	$	896	$	21,425	$	23,970	$	—	$	23,970	$	11,118
India		3,138		1,692		629		2,476		7,935		119		8,054		459
South Korea		825		1,190		854		2,397		5,266		293		5,559		(209	)
Singapore		576		29		313		771		1,689		—		1,689		773
Taiwan		398		34		148		499		1,079		573		1,652		(274	)
Hong Kong		342		255		213		630		1,440		—		1,440		424
Thailand		17		12		69		404		502		17		519		309
Other Asia Pacific ⁽⁸⁾		263		37		114		595		1,009		3		1,012		170
Total Asia Pacific		6,310		4,147		3,236		29,197		42,890		1,005		43,895		12,770
Latin America
Brazil		637		372		411		1,054		2,474		2,918		5,392		308
Mexico ⁽⁹⁾		1,332		321		332		427		2,412		—		2,412		(3,127	)
Chile		1,083		163		396		32		1,674		13		1,687		23
Peru		250		157		40		82		529		51		580		60
Other Latin America ⁽⁸⁾		168		259		17		382		826		174		1,000		113
Total Latin America		3,470		1,272		1,196		1,977		7,915		3,156		11,071		(2,623	)
Middle East and Africa
Bahrain		78		—		6		1,175		1,259		—		1,259		313
United Arab Emirates		784		5		202		83		1,074		—		1,074		135
South Africa		333		9		46		81		469		—		469		(755	)
Other Middle East and Africa ⁽⁸⁾		462		73		129		192		856		1		857		(369	)
Total Middle East and Africa		1,657		87		383		1,531		3,658		1		3,659		(676	)
Central and Eastern Europe
Turkey		197		171		43		238		649		45		694		(218	)
Russian Federation		73		122		55		181		431		2		433		(110	)
Other Central and Eastern Europe ⁽⁸⁾		47		138		305		621		1,111		12		1,123		(24	)
Total Central and Eastern Europe		317		431		403		1,040		2,191		59		2,250		(352	)
Total emerging market exposure	$	11,754	$	5,937	$	5,218	$	33,745	$	56,654	$	4,221	$	60,875	$	9,119

(1)

There is no generally accepted definition of emerging markets. The definition that we use includes all countries in Asia Pacific excluding Japan, Australia and New Zealand; all countries in Latin America excluding Cayman Islands and Bermuda; all countries in Middle East and Africa; and all countries in Central and Eastern Europe. There was no emerging market exposure included in the portfolio accounted for under the fair value option at September 30, 2010 and June 30, 2010.

(2)

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

(3)

Derivative assets are carried at fair value and have been reduced by the amount of cash collateral applied of $1.5 billion and $964 million at September 30, 2010 and June 30, 2010 . At September 30, 2010 and June 30, 2010, there were $476 million and $565 million of other marketable securities collateralizing derivative assets.

(4)

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

(5)

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

(6)

Local country exposure includes amounts payable to the Corporation by borrowers with a country of residence in which the credit is booked, regardless of the currency in which the claim is denominated. Local funding or liabilities are subtracted from local exposures consistent with FFIEC reporting requirements. Total amount of available local liabilities funding local country exposure at September 30, 2010 was $17.9 billion compared to $16.8 billion at June 30, 2010. Local liabilities at September 30, 2010 in Asia Pacific, Latin America, and Middle East and Africa were $16.3 billion, $1.4 billion and $213 million, respectively, of which $8.1 billion were in Singapore, $2.0 billion in China, $1.8 billion in Hong Kong, $1.6 billion in South Korea, $1.3 billion in both India and Mexico, and $585 million were in Taiwan. There were no other countries with available local liabilities funding local country exposure greater than $500 million.

(7)

Securities/Other Investments includes an investment of $19.0 billion in China Construction Bank (CCB).

(8)

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

(9)

June 30, 2010 included an investment of $2.6 billion in Grupo Financiero Santander, S.A. This investment was sold during the third 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.		40

Bank of America Corporation and Subsidiaries

Nonperforming Loans, Leases and Foreclosed Properties

(Dollars in millions)


	September 30 2010			June 30 2010			March 31 2010			December 31 2009			September 30 2009
Residential mortgage	$	18,291		$	18,283		$	17,763		$	16,596		$	15,509
Home equity ⁽¹⁾		2,702			2,951			3,335			3,804			3,741
Discontinued real estate		297			293			279			249			207
Direct/Indirect consumer		83			85			91			86			92
Other consumer		56			72			89			104			105

Total consumer		21,429			21,684			21,557			20,839			19,654


Commercial - domestic ⁽²⁾		3,894			4,217			4,407			4,925			4,719
Commercial real estate		6,376			6,704			7,177			7,286			6,943
Commercial lease financing		123			140			147			115			170
Commercial - foreign		272			130			150			177			261

		10,665			11,191			11,881			12,503			12,093
Small business commercial - domestic		202			222			179			200			167

Total commercial		10,867			11,413			12,060			12,703			12,260

Total nonperforming loans and leases		32,296			33,097			33,617			33,542			31,914
Foreclosed properties		2,260			2,501			2,308			2,205			1,911

Total nonperforming loans, leases and foreclosed properties ^{(3, 4, 5)}	$	34,556		$	35,598		$	35,925		$	35,747		$	33,825


Federal Housing Administration insured loans past due 90 days or more and still accruing	$	16,427		$	15,338		$	13,589		$	11,680		$	2,325
Other loans past due 90 days or more and still accruing		5,781			6,448			7,851			5,181			5,270

Total loans past due 90 days or more and still accruing ^{(4, 6)}	$	22,208		$	21,786		$	21,440		$	16,861		$	7,595


Nonperforming loans, leases and foreclosed properties/Total assets⁽⁷⁾		1.49	%		1.51	%		1.54	%		1.61	%		1.51	%
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties⁽⁷⁾		3.71			3.73			3.69			3.98			3.72
Nonperforming loans and leases/Total loans and leases⁽⁷⁾		3.47			3.48			3.46			3.75			3.51

Allowance for credit losses:
Allowance for loan and lease losses ^(1, 8)	$	43,581		$	45,255		$	46,835		$	37,200		$	35,832
Reserve for unfunded lending commitments		1,294			1,413			1,521			1,487			1,567

Total allowance for credit losses	$	44,875		$	46,668		$	48,356		$	38,687		$	37,399


Allowance for loan and lease losses/Total loans and leases ⁽⁷⁾		4.69	%		4.75	%		4.82	%		4.16	%		3.95	%
Allowance for loan and lease losses/Total nonperforming loans and leases		135			137			139			111			112
Allowance for loan and lease losses (excluding the valuation allowance for purchased credit-impaired loans)/Total nonperforming loans and leases		118			121			124			99			101

Commercial utilized reservable criticized exposure ⁽⁹⁾	$	47,698		$	50,319		$	55,322		$	58,687		$	60,059
Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure⁽⁹⁾		13.06	%		13.48	%		14.43	%		15.03	%		14.86	%
Total commercial utilized criticized exposure/Commercial utilized exposure ⁽⁹⁾		13.96			14.39			15.68			16.45			15.85

(1)

Periods subsequent to January 1, 2010 are presented in accordance with new consolidation guidance. As a result of the new consolidation guidance the first quarter of 2010 includes $448 million in home equity nonperforming loans and $10.8 billion in allowance for loan and lease losses. The 2009 periods have not been restated.

(2)

Excludes small business commercial - domestic loans.

(3)

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

(4)

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


(5) Balances do not include the following:	September 30 2010		June 30 2010		March 31 2010		December 31 2009		September 30 2009
Nonperforming loans held-for-sale	$	*3,654*	$	4,044	$	4,195	$	6,011	$	4,563
Nonperforming loans accounted for under the fair value option		15		15		70		138		305
Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010		*378*		403		301		395		321
(6) Balances do not include the following:
Loans accounted for under the fair value option past due 90 days or more and still accruing	$	—	$	—	$	49	$	87	$	111
Loans held-for-sale past due 90 days or more and still accruing		79		158		241		47		52

(7)

Ratios do not include loans accounted for under the fair value option of $3.7 billion, $3.9 billion, $4.1 billion, $4.9 billion and $6.2 billion at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively.

(8)

Balances include the allowance for loan and lease losses on purchased credit-impaired loans of $5.6 billion, $5.3 billion, $5.1 billion, $3.9 billion and $3.8 billion at September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009, respectively.

(9)

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

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

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


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

Bank of America Corporation and Subsidiaries

Nonperforming Loans, Leases and Foreclosed Properties Activity

(Dollars in millions)


	Third Quarter 2010			Second Quarter 2010			First Quarter 2010			Fourth Quarter 2009			Third Quarter 2009
Nonperforming Consumer Loans:
Balance, beginning of period	$	21,684		$	21,557		$	20,839		$	19,654		$	17,772
Additions to nonperforming loans:
Consolidation of VIEs ⁽¹⁾		—			—			448			—			—
New nonaccrual loans		4,313			5,033			6,298			6,521			6,696
Reductions in nonperforming loans:
Paydowns and payoffs		(917	)		(528	)		(625	)		(371	)		(410	)
Returns to performing status ⁽²⁾		(1,469	)		(1,816	)		(2,521	)		(2,169	)		(966	)
Charge-offs⁽³⁾		(1,749	)		(2,231	)		(2,607	)		(2,443	)		(2,829	)
Transfers to foreclosed properties		(433	)		(331	)		(275	)		(353	)		(609	)

Total net additions to (reductions in) nonperforming loans		(255	)		127			718			1,185			1,882

Total nonperforming consumer loans, end of period		21,429			21,684			21,557			20,839			19,654
Foreclosed properties		1,485			1,744			1,388			1,428			1,298

Total nonperforming consumer loans and foreclosed properties, end of period ⁽⁴⁾	$	22,914		$	23,428		$	22,945		$	22,267		$	20,952

Nonperforming Commercial Loans and Leases ⁽⁵⁾:
Balance, beginning of period	$	11,413		$	12,060		$	12,703		$	12,260		$	11,409
Additions to nonperforming loans and leases:
New nonaccrual loans and leases		1,852			2,256			1,881			3,662			4,235
Advances		83			62			83			130			54
Reductions in nonperforming loans and leases:
Paydowns and payoffs		(906	)		(1,148	)		(771	)		(1,016	)		(892	)
Sales		(187	)		(256	)		(170	)		(283	)		(304	)
Return to performing status ⁽⁶⁾		(415	)		(404	)		(323	)		(220	)		(94	)
Charge-offs ⁽⁷⁾		(628	)		(870	)		(956	)		(1,448	)		(1,773	)
Transfers to foreclosed properties		(217	)		(205	)		(319	)		(376	)		(305	)
Transfers to loans held-for-sale		(128	)		(82	)		(68	)		(6	)		(70	)

Total net additions to (reductions in) nonperforming loans and leases		(546	)		(647	)		(643	)		443			851

Total nonperforming loans and leases, end of period		10,867			11,413			12,060			12,703			12,260
Foreclosed properties		775			757			920			777			613

Total nonperforming commercial loans, leases and foreclosed properties, end of period ⁽⁴⁾	$	11,642		$	12,170		$	12,980		$	13,480		$	12,873

(1)

Periods subsequent to January 1, 2010 are presented in accordance with new consolidation guidance. Prior periods have not been restated.

(2)

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

(3)

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

(4)

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

(5)

Includes small business commercial – domestic activity.

(6)

Commercial loans and leases may be restored to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Troubled debt restructurings are generally classified as performing after a sustained period of demonstrated payment performance.

(7)

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

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


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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Third Quarter 2010				Second Quarter 2010						First Quarter 2010				Fourth Quarter 2009						Third Quarter 2009
Net Charge-offs	Amount		Percent		Amount			Percent			Amount		Percent		Amount			Percent			Amount			Percent
Residential mortgage	$	660	1.10	%	$	971		1.57		%	$	1,069	1.78	%	$	1,233		2.07		%	$	1,247		2.05		%
Home equity		1,372	3.80			1,741		4.71				2,397	6.37			1,560		4.11				1,970		5.10
Discontinued real estate		17	0.48			19		0.54				21	0.60			14		0.38				37		0.89
Credit card - domestic		2,975	10.24			3,517		11.88				3,963	12.82			1,546		12.46				1,787		14.25
Credit card - foreign		295	4.32			942		13.64				631	8.57			395		7.22				382		7.14
Direct/Indirect consumer		707	2.93			879		3.58				1,109	4.46			1,288		5.17				1,451		5.76
Other consumer		80	10.68			73		10.01				58	7.80			114		14.20				118		14.00

Total consumer		6,106	3.81			8,142		4.96				9,248	5.60			6,150		4.24				6,992		4.73

Commercial - domestic ⁽³⁾		206	0.47			179		0.41				286	0.63			637		1.36				773		1.58
Commercial real estate		410	2.93			645		4.03				615	3.64			745		4.15				873		4.67
Commercial lease financing		19	0.34			(3	)	(0.06	)			21	0.40			43		0.79				41		0.72
Commercial - foreign		12	0.17			66		0.98				25	0.37			162		2.30				149		2.05

		647	0.91			887		1.23				947	1.28			1,587		2.05				1,836		2.28
Small business commercial - domestic		444	11.38			528		12.94				602	14.21			684		15.16				796		17.45

Total commercial		1,091	1.46			1,415		1.86				1,549	1.98			2,271		2.78				2,632		3.09

Total net charge-offs	$	7,197	3.07		$	9,557		3.98			$	10,797	4.44		$	8,421		3.71			$	9,624		4.13


By Business Segment
Deposits	$	70	55.99	%	$	66		47.67		%	$	43	34.73	%	$	97		56.52		%	$	98		57.21		%
Global Card Services ⁽⁴⁾		4,232	9.81			5,674		12.82				6,011	12.88			6,487		12.88				7,400		14.07
Home Loans & Insurance		1,323	4.11			1,664		5.11				2,317	7.03			1,502		4.50				1,962		5.87
Global Banking & Markets		52	0.22			87		0.38				143	0.61			517		2.18				486		1.94
Global Commercial Banking		728	1.45			958		1.87				1,076	2.04			1,310		2.37				1,453		2.55
Global Wealth & Investment Management		112	0.45			115		0.47				119	0.49			211		0.84				285		1.12
All Other ⁽⁴⁾		680	1.13			993		1.55				1,088	1.72			(1,703	)	(4.39	)			(2,060	)	(5.27	)

Total net charge-offs	$	7,197	3.07		$	9,557		3.98			$	10,797	4.44		$	8,421		3.71			$	9,624		4.13


Supplemental managed basis data

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

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

(1)

Periods subsequent to January 1, 2010 are presented in accordance with new consolidation guidance. Prior periods have not been restated.

(2)

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

(3)

Excludes small business commercial - domestic loans.

(4)

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

n/a = not applicable

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

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

LOGO


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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Nine Months Ended September 30
	2010				2009
Held Basis	Amount		Percent		Amount			Percent
Residential mortgage	$	2,700	1.49	%	$	3,117		1.64		%
Home equity		5,510	4.98			5,490		4.70
Discontinued real estate		57	0.54			87		0.64
Credit card - domestic		10,455	11.67			5,001		12.51
Credit card - foreign		1,868	8.86			844		5.95
Direct/Indirect consumer		2,695	3.66			4,175		5.56
Other consumer		211	9.50			314		12.54

Total consumer		23,496	4.80			19,028		4.21

Commercial - domestic ⁽³⁾		671	0.50			1,553		1.01
Commercial real estate		1,670	3.56			1,957		3.54
Commercial lease financing		37	0.23			152		0.92
Commercial - foreign		103	0.50			375		1.59

		2,481	1.15			4,037		1.62
Small business commercial - domestic		1,574	12.88			2,202		15.85

Total commercial		4,055	1.77			6,239		2.37

Total net charge-offs	$	27,551	3.84		$	25,267		3.53


By Business Segment
Deposits	$	179	46.19	%	$	269		50.39		%
Global Card Services ⁽⁴⁾		15,917	11.87			19,651		12.16
Home Loans & Insurance		5,304	5.43			5,053		5.20
Global Banking & Markets		282	0.40			1,094		1.36
Global Commercial Banking		2,762	1.79			3,751		2.16
Global Wealth & Investment Management		346	0.47			619		0.79
All Other ⁽⁴⁾		2,761	1.47			(5,170	)	(4.19	)

Total net charge-offs	$	27,551	3.84		$	25,267		3.53


Supplemental managed basis data

Credit card - domestic		n/a	n/a		$	12,767		11.88		%
Credit card - foreign		n/a	n/a			1,551		7.05

Total credit card managed net losses		n/a	n/a		$	14,318		11.06

(1)

Periods subsequent to January 1, 2010 are presented in accordance with new consolidation guidance. Prior periods have not been restated.

(2)

(3)

Excludes small business commercial - domestic loans.

(4)

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

n/a - not applicable

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

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


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

Bank of America Corporation and Subsidiaries

Allocation of the Allowance for Credit Losses by Product Type

(Dollars in millions)


	September 30, 2010						June 30, 2010						September 30, 2009
Allowance for loan and lease losses ⁽¹⁾	Amount		Percent of Total		Percent of Loans and Leases Outstanding ⁽²⁾		Amount		Percent of Total		Percent of Loans and Leases Outstanding ⁽²⁾		Amount		Percent of Total		Percent of Loans and Leases Outstanding ⁽²⁾
Residential mortgage	$	4,320	9.91	%	1.78	%	$	4,818	10.65	%	1.96	%	$	4,461	12.45	%	1.87	%
Home equity		12,925	29.66		9.13			12,880	28.46		8.81			9,719	27.12		6.39
Discontinued real estate		1,191	2.73		8.86			1,140	2.52		8.27			1,016	2.84		6.57
Credit card - domestic		11,977	27.48		10.54			12,384	27.36		10.61			5,182	14.46		10.53
Credit card - foreign		2,116	4.86		7.76			2,197	4.85		8.32			1,328	3.71		6.33
Direct/Indirect consumer		2,661	6.11		2.88			2,929	6.47		2.98			4,811	13.43		4.89
Other consumer		171	0.39		5.83			182	0.41		6.08			205	0.57		6.27

Total consumer		35,361	81.14		5.57			36,530	80.72		5.62			26,722	74.58		4.62

Commercial - domestic ⁽³⁾		4,089	9.38		2.14			4,495	9.93		2.35			5,385	15.03		2.59
Commercial real estate		3,573	8.20		6.77			3,593	7.94		5.83			3,007	8.39		4.14
Commercial lease financing		151	0.35		0.71			269	0.60		1.26			255	0.71		1.16
Commercial - foreign		407	0.93		1.33			368	0.81		1.32			463	1.29		1.68

Total commercial ⁽⁴⁾		8,220	18.86		2.78			8,725	19.28		2.89			9,110	25.42		2.76

Allowance for loan and lease losses		43,581	100.00	%	4.69			45,255	100.00	%	4.75			35,832	100.00	%	3.95

Reserve for unfunded lending commitments		1,294						1,413						1,567

Allowance for credit losses⁽⁵⁾	$	44,875					$	46,668					$	37,399

(1)

Periods subsequent to January 1, 2010 are presented in accordance with new consolidation guidance. Prior period has not been restated.

(2)

Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option for each loan and lease category. Loans accounted for under the fair value option include commercial—domestic loans of $1.8 billion, $2.1 billion and $4.0 billion, commercial—foreign loans of $1.8 billion, $1.7 billion and $2.1 billion, and commercial real estate loans of $54 million, $114 million and $98 million at September 30, 2010, June 30, 2010 and September 30, 2009.

(3)

Includes allowance for small business commercial—domestic loans of $1.8 billion, $2.0 billion and $2.7 billion at September 30, 2010, June 30, 2010, and September 30, 2009.

(4)

Includes allowance for loan and lease losses for impaired commercial loans of $577 million, $805 million and $1.3 billion at September 30, 2010, June 30, 2010 and September 30, 2009.

(5)

Includes $5.6 billion, $5.3 billion and $3.8 billion of allowance for credit losses related to purchased credit-impaired loans at September 30, 2010, June 30, 2010 and September 30, 2009.

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


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

Exhibit A: Non-GAAP Reconciliations

Bank of America Corporation and Subsidiaries

Reconciliation to GAAP Financial Measures

(Dollars in millions)

The Corporation evaluates its business based upon a fully taxable-equivalent basis which is a non-GAAP measure. Total revenue, net of interest expense, includes net interest income on a fully taxable-equivalent basis and noninterest income. The adjustment of net interest income to a fully taxable-equivalent basis results in a corresponding increase in income tax expense. The Corporation also evaluates its business based upon ratios that utilize tangible equity which is a non-GAAP measure. Return on average tangible common shareholders’ equity measures the Corporation’s earnings contribution as a percentage of common shareholders’ equity plus any Common Equivalent Securities less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible shareholders’ equity measures the Corporation’s earnings contribution as a percentage of average shareholders’ equity reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. The tangible common equity ratio represents common shareholders’ equity plus any Common Equivalent Securities less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. The tangible equity ratio represents total shareholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Tangible book value per common share represents ending common shareholders’ equity 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. Also, the efficiency ratio measures the costs expended to generate a dollar of revenue. In addition, earnings and diluted earnings per common share, the efficiency ratio, return on average assets, return on average common shareholders’ equity, return on average tangible common shareholders’ equity and return on average tangible shareholders’ equity have been calculated excluding the impact of the goodwill impairment charge of $10.4 billion taken during the third quarter of 2010. See below for Reconciliations of total noninterest expense, net income (loss) and net income (loss) applicable to common shareholders excluding the goodwill impairment charge to GAAP financial measures. We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation.

Other companies may define or calculate supplemental financial data differently. See the tables below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009 and the nine months ended September 30, 2010 and 2009.


	Nine Months Ended September 30						Third Quarter 2010			Second Quarter 2010		First Quarter 2010		Fourth Quarter 2009			Third Quarter 2009
	Nine Months Ended September 30
	2010			2009

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

Net interest income	$	39,084		$	35,550		$	12,435		$	12,900	$	13,749	$	11,559		$	11,423
Fully taxable-equivalent adjustment		900			964			282			297		321		337			330

Net interest income fully taxable-equivalent basis	$	39,984		$	36,514		$	12,717		$	13,197	$	14,070	$	11,896		$	11,753


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

Total revenue, net of interest expense	$	87,822		$	94,567		$	26,700		$	29,153	$	31,969	$	25,076		$	26,035
Fully taxable-equivalent adjustment		900			964			282			297		321		337			330

Total revenue, net of interest expense fully taxable-equivalent basis	$	88,722		$	95,531		$	26,982		$	29,450	$	32,290	$	25,413		$	26,365


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

Total noninterest expense	$	62,244		$	50,328		$	27,216		$	17,253	$	17,775	$	16,385		$	16,306
Goodwill impairment		(10,400	)		—			(10,400	)		—		—		—			—

Total noninterest expense, excluding goodwill impairment charge	$	51,844		$	50,328		$	16,816		$	17,253	$	17,775	$	16,385		$	16,306


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

Income tax expense (benefit)	$	3,266		$	(691	)	$	1,387		$	672	$	1,207	$	(1,225	)	$	(975	)
Fully taxable-equivalent adjustment		900			964			282			297		321		337			330

Income tax expense (benefit) fully taxable-equivalent basis	$	4,166		$	273		$	1,669		$	969	$	1,528	$	(888	)	$	(645	)


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

Net income (loss)	$	(994	)	$	6,470		$	(7,299	)	$	3,123	$	3,182	$	(194	)	$	(1,001	)
Goodwill impairment		10,400			—			10,400			—		—		—			—

Net income (loss), excluding goodwill impairment charge	$	9,406		$	6,470		$	3,101		$	3,123	$	3,182	$	(194	)	$	(1,001	)


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

Net income (loss) applicable to common shareholders	$	(2,030	)	$	2,992		$	(7,647	)	$	2,783	$	2,834	$	(5,196	)	$	(2,241	)
Goodwill impairment		10,400			—			10,400			—		—		—			—

Net income (loss) applicable to common shareholders, excluding goodwill impairment charge	$	8,370		$	2,992		$	2,753		$	2,783	$	2,834	$	(5,196	)	$	(2,241	)

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


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

Exhibit A: Non-GAAP Reconciliations - continued

Bank of America Corporation and Subsidiaries

Reconciliation to GAAP Financial Measures

(Dollars in millions, shares in thousands)


	Nine Months Ended						Third			Second			First			Fourth			Third
	September 30						Quarter			Quarter			Quarter			Quarter			Quarter
	2010			2009			2010			2010			2010			2009			2009

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

Common shareholders’ equity	$	210,643		$	177,289		$	215,911		$	215,468		$	200,380		$	197,123		$	197,230
Common Equivalent Securities		3,877			—			—			—			11,760			4,811			—
Goodwill		(84,959	)		(86,028	)		(82,484	)		(86,099	)		(86,334	)		(86,053	)		(86,170	)
Intangible assets (excluding MSRs)		(11,246	)		(12,107	)		(10,629	)		(11,216	)		(11,906	)		(12,556	)		(13,223	)
Related deferred tax liabilities		3,368			3,873			3,214			3,395			3,497			3,712			3,725

Tangible common shareholders’ equity	$	121,683		$	83,027		$	126,012		$	121,548		$	117,397		$	107,037		$	101,562


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

Shareholders’ equity	$	232,458		$	242,638		$	233,978		$	233,461		$	229,891		$	250,599		$	255,983
Goodwill		(84,959	)		(86,028	)		(82,484	)		(86,099	)		(86,334	)		(86,053	)		(86,170	)
Intangible assets (excluding MSRs)		(11,246	)		(12,107	)		(10,629	)		(11,216	)		(11,906	)		(12,556	)		(13,223	)
Related deferred tax liabilities		3,368			3,873			3,214			3,395			3,497			3,712			3,725

Tangible shareholders’ equity	$	139,621		$	148,376		$	144,079		$	139,541		$	135,148		$	155,702		$	160,315


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

Common shareholders’ equity	$	212,391		$	198,843		$	212,391		$	215,181		$	211,859		$	194,236		$	198,843
Common Equivalent Securities		—			—			—			—			—			19,244			—
Goodwill		(75,602	)		(86,009	)		(75,602	)		(85,801	)		(86,305	)		(86,314	)		(86,009	)
Intangible assets (excluding MSRs)		(10,402	)		(12,715	)		(10,402	)		(10,796	)		(11,548	)		(12,026	)		(12,715	)
Related deferred tax liabilities		3,123			3,714			3,123			3,215			3,396			3,498			3,714

Tangible common shareholders’ equity	$	129,510		$	103,833		$	129,510		$	121,799		$	117,402		$	118,638		$	103,833


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

Shareholders’ equity	$	230,495		$	257,683		$	230,495		$	233,174		$	229,823		$	231,444		$	257,683
Goodwill		(75,602	)		(86,009	)		(75,602	)		(85,801	)		(86,305	)		(86,314	)		(86,009	)
Intangible assets (excluding MSRs)		(10,402	)		(12,715	)		(10,402	)		(10,796	)		(11,548	)		(12,026	)		(12,715	)
Related deferred tax liabilities		3,123			3,714			3,123			3,215			3,396			3,498			3,714

Tangible shareholders’ equity	$	147,614		$	162,673		$	147,614		$	139,792		$	135,366		$	136,602		$	162,673


Reconciliation of period end assets to period end tangible assets

Assets	$	2,327,811		$	2,251,043		$	2,327,811		$	2,363,878		$	2,338,700		$	2,223,299		$	2,251,043
Goodwill		(75,602	)		(86,009	)		(75,602	)		(85,801	)		(86,305	)		(86,314	)		(86,009	)
Intangible assets (excluding MSRs)		(10,402	)		(12,715	)		(10,402	)		(10,796	)		(11,548	)		(12,026	)		(12,715	)
Related deferred tax liabilities		3,123			3,714			3,123			3,215			3,396			3,498			3,714

Tangible assets	$	2,244,930		$	2,156,033		$	2,244,930		$	2,270,496		$	2,244,243		$	2,128,457		$	2,156,033


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

Common shares outstanding		10,033,705			8,650,314			10,033,705			10,033,017			10,032,001			8,650,244			8,650,314
Assumed conversion of common equivalent shares ⁽¹⁾		—			—			—			—			—			1,286,000			—

Tangible common shares outstanding		10,033,705			8,650,314			10,033,705			10,033,017			10,032,001			9,936,244			8,650,314

(1)

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

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


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

Exhibit A: Non-GAAP Reconciliations - continued

Bank of America Corporation and Subsidiaries

Global Card Services - Reconciliation

(Dollars in millions)


	Nine Months Ended September 30, 2009									Fourth Quarter 2009
	Managed Basis ⁽¹⁾			Securitization Impact ⁽²⁾			Held Basis			Managed Basis ⁽¹⁾			Securitization Impact ⁽²⁾			Held Basis
Net interest income ⁽³⁾	$	15,094		$	(7,024	)	$	8,070		$	4,878		$	(2,226	)	$	2,652
Noninterest income:
Card income		6,460			(1,355	)		5,105			2,093			(679	)		1,414
All other income		405			(94	)		311			115			(21	)		94

Total noninterest income		6,865			(1,449	)		5,416			2,208			(700	)		1,508

Total revenue, net of interest expense		21,959			(8,473	)		13,486			7,086			(2,926	)		4,160

Provision for credit losses		22,699			(8,473	)		14,226			6,854			(2,926	)		3,928
Noninterest expense		5,848			—			5,848			1,877			—			1,877

Loss before income taxes		(6,588	)		—			(6,588	)		(1,645	)		—			(1,645	)
Income tax benefit ⁽³⁾		(2,321	)		—			(2,321	)		(651	)		—			(651	)

Net loss	$	(4,267	)	$	—		$	(4,267	)	$	(994	)	$	—		$	(994	)


Balance sheet
Average - total loans and leases	$	216,101		$	(100,727	)	$	115,374		$	199,756		$	(91,705	)	$	108,051
Period end - total loans and leases		202,860			(94,328	)		108,532			196,289			(89,715	)		106,574

	Third Quarter 2009
	Managed Basis ⁽¹⁾			Securitization Impact ⁽²⁾			Held Basis
Net interest income ⁽³⁾	$	4,920		$	(2,275	)	$	2,645
Noninterest income:
Card income		2,183			(1,007	)		1,176
All other income		147			(26	)		121

Total noninterest income		2,330			(1,033	)		1,297

Total revenue, net of interest expense		7,250			(3,308	)		3,942

Provision for credit losses		6,823			(3,308	)		3,515
Noninterest expense		1,915			—			1,915

Loss before income taxes		(1,488	)		—			(1,488	)
Income tax benefit⁽³⁾		(533	)		—			(533	)

Net loss	$	(955	)	$	—		$	(955	)


Balance sheet
Average - total loans and leases	$	208,650		$	(97,520	)	$	111,130
Period end - total loans and leases		202,860			(94,328	)		108,532

(1)

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

(2)

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

(3)

Fully taxable-equivalent basis

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

In 2010, the Corporation reports Global Card Services results in accordance with new consolidation guidance. The 2009 periods are presented on a managed basis. Managed basis assumes that securitized loans were not sold and presents earnings on these loans in a manner similar to the way loans that have not been sold (i.e., held loans) are presented. Loan securitization is an alternative funding process that is used by the Corporation to diversify funding sources. In prior periods, loan securitization removed loans from the Consolidated Balance Sheet through the sale of loans to an off-balance sheet qualifying special purpose entity which was excluded from the Corporation’s Consolidated Financial Statements in accordance with GAAP applicable at the time.

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

•

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

•

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

•

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


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

Exhibit A: Non-GAAP Reconciliations - continued

Bank of America Corporation and Subsidiaries

All Other - Reconciliation

(Dollars in millions)


	Nine Months Ended September 30, 2009								Fourth Quarter 2009
	Reported Basis⁽¹⁾			Securitization Offset⁽²⁾		As Adjusted			Reported Basis⁽¹⁾			Securitization Offset⁽²⁾		As Adjusted
Net interest income ⁽³⁾	$	(5,250	)	$	7,024	$	1,774		$	(1,527	)	$	2,226	$	699
Noninterest income:
Card income (loss)		(464	)		1,355		891			(432	)		679		247
Equity investment income		8,184			—		8,184			830			—		830
Gains on sales of debt securities		3,585			—		3,585			852			—		852
All other loss		(3,420	)		94		(3,326	)		(2,280	)		21		(2,259	)

Total noninterest income (loss)		7,885			1,449		9,334			(1,030	)		700		(330	)

Total revenue, net of interest expense		2,635			8,473		11,108			(2,557	)		2,926		369

Provision for credit losses		(1,885	)		8,473		6,588			(1,511	)		2,926		1,415
Merger and restructuring charges		2,188			—		2,188			533			—		533
All other noninterest expense		2,086			—		2,086			816			—		816

Income (loss) before income taxes		246			—		246			(2,395	)		—		(2,395	)
Income tax benefit⁽³⁾		(1,894	)		—		(1,894	)		(878	)		—		(878	)

Net income (loss)	$	2,140		$	—	$	2,140		$	(1,517	)	$	—	$	(1,517	)


Balance sheet
Average - total loans and leases	$	165,086		$	100,727	$	265,813		$	154,038		$	91,705	$	245,743
Period end - total loans and leases		153,880			94,328		248,208			161,153			89,715		250,868

	Third Quarter 2009
	Reported Basis⁽¹⁾			Securitization Offset⁽²⁾		As Adjusted
Net interest income ⁽³⁾	$	(1,798	)	$	2,275	$	477
Noninterest income:
Card income (loss)		(721	)		1,007		286
Equity investment income		882			—		882
Gains on sales of debt securities		1,442			—		1,442
All other loss		(2,053	)		26		(2,027	)

Total noninterest income (loss)		(450	)		1,033		583

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

Provision for credit losses		(1,218	)		3,308		2,090
Merger and restructuring charges		594			—		594
All other noninterest expense		845			—		845

Loss before income taxes		(2,469	)		—		(2,469	)
Income tax benefit⁽³⁾		(928	)		—		(928	)

Net income (loss)	$	(1,541	)	$	—	$	(1,541	)


Balance sheet
Average - total loans and leases	$	155,184		$	97,520	$	252,704
Period end - total loans and leases		153,880			94,328		248,208

(1)

Periods subsequent to January 1, 2010 are presented in accordance with new consolidation guidance. Prior periods are presented on a managed basis. Provision for credit losses represents provision for credit losses in All Other combined with the Global Card Services securitization offset.

(2)

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

(3)

Fully taxable-equivalent basis

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


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

Appendix: Selected Slides from the

Third Quarter 2010 Earnings Release Presentation


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

Exhibit 99.3A

LOGO

Balance Sheet Highlights

($ in billions) September 30, January 1, Change from 2010 2010 1 1/1/10

Total assets $ 2,327.8 $ 2,323.7 $ 4.1 Total risk-weighted assets 1,476.8 1,563.6 (86.8) Total deposits 977.3 991.6 (14.3) Long-term debt 478.9 522.9 (44.0) Tangible common equity 129.5 112.4 17.1 Tier 1 common equity 124.8 110.7 14.1 Global excess liquidity sources 324 214 110 Tier 1 common equity ratio 8.45 % 7.08 % 137 bps Tangible book value per share $ 12.91 $ 11.31 $ 1.60

Asset Quality

Allowance for loan and lease losses $ 43.6 $ 48.0 $ (4.4) as a % of loans and leases 4.69 % 4.81 % (10) bps coverage for annualized net losses 1.53 x 1.07 x 0.46 x Nonperforming assets $ 34.6 $ 36.2 $ (1.6)

1 Reflects the 12/31/09 information adjusted to include 1/1/10 adoption of FAS 166/167 as reported in our SEC filings.

LOGO

Strong Capital Measures Improving 1

Commentary vs. 2Q10

$110.7

$115.5

$119.7

$124.8

7.1%7.6%

8.0%

8.5%

9.6%10.2%10.7%

11.2%

10%

12%

14%

16%$0

$20

$40

$60$80$100

$120

$140

$160

1/1/2010

1Q10

2Q10

3Q10

$ in billions

Tier 1 common equity

Tier 1 common ratio

Tier 1 capital ratio

Tier 1 Common Equity

$112.4

$117.4

$121.8

$129.5

5.1%

5.2%

5.4%

5.8%

2%4%

6%8%$0

$20

$40

$60

$80

$100

$120

$140

$160

1/1/2010

1Q10

2Q10

3Q10$ in billions

Tangible common equity

Tangible common equity ratio

Tangible Common Equity

3Q10 ratios improved due to

–Earnings of $2.7B, net of preferred and common dividends and excluding goodwill impairment charge

–$18B reduction in risk-weighted assets

Tangible common equity increase driven by $6.2B, net of tax, valuation increase of CCB investment

1Capital measures reflect the implementation of FAS 166/167 on January 1, 2010 for comparative purposes

LOGO

Customer Behaviors and Regulatory Reform Driving Consumer Banking Model Changes

Overdraft Position

Fee-Generating Overdraft Transactions

Pre Regulation E Projected Post Regulation E

Point of Sale Debit 58% No Non-Point of Sale Debit 3% ACH 17% Checks 13% ATM 7% Online 2%

Background for Decision

(Summer of 2009)

• Small percentage (10%) of customers paid large amount of the charges (70%) averaging $1,000 fees per year

• Customer complaints were nearing all-time highs –significant majority of deposit complaints were overdraft issues

• Account closures by customers were at historic highs and increasing

• Regulation E was coming

Current State

• Account attrition 27% better than in 3Q09

• Customer satisfaction scores improved

• Customer complaints are down 51%—particularly escalated

• Customers have enhanced accounts with overdraft protection

• Associate satisfaction has improved

New Model

• Offering new attractive customer solutions, new payment models and new account features

• Revising mass market model to match cost to serve with new revenue opportunities

• Restructuring accounts replacing penalty fees with balances, activity qualifiers or monthly maintenance fees

• Implemented customer education and assistance on overdraft solutions

– Provided customers a choice of accounts offering overdraft protection

• Nearly 40% of accounts now have overdraft protection

– Allowing customer control by providing access to cash with overdrafts at ATMs

– Features such as e-alerts providing more clarity when balances are low or overdrawn

LOGO

Significant Items in 3Q10

Income Statement Items

• Goodwill impairment charge in Global Card Services segment of $10.4B

• Loan loss reserves were reduced by $1.8B in 3Q10 vs. $1.5B in 2Q10

• Recorded $0.6B charge for exposure in the U.K. involving payment protection insurance claims on consumer loan products

• Reduction in U.K. corporate tax rate to 27% resulted in a charge of $0.4B, included in income tax expense.

• Recorded additional litigation expense of $380M

• Recorded $0.9B net securities gains in 3Q10

• Equity investment income of $0.4B was $2.4B lower than 2Q10 driven by the absence of gains on sales of Itaú Unibanco ($1.2B) and MasterCard ($0.4B) and the CCB dividend ($0.5B)

• Fair value adjustment on structured liabilities resulted in a charge of $0.2B to other income compared to a gain of $1.2B in the previous quarter

Balance Sheet Items

• Recorded $9.8B, $6.2B net of tax, valuation increase on investment in China Construction Bank (CCB) through equity

• Completed sales of First Republic Bank and Santander–Mexico ownership stake

LOGO

Runoff Loan Portfolios

($ in billions, ending balances) September 30, June 30, Change from 2010 2010 June 30, 2010

Residential mortgage $31.7 $41.8 $(10.1)

Home equity 38.1 41.1 (3.0)

Discontinued real estate 13.4 13.8 (0.4)

Direct/indirect 39.0 46.0 (7.0)

Other consumer 1.5 1.4 0.1

Total consumer 123.7 144.1 (20.4)

Total commercial 8.2 13.3 (5.1)

Total runoff loans $131.9 $157.4 $(25.5)

3Q10 Runoff Portfolio Highlights

Sale of First Republic Bank in 3Q10 reduced loans by $17.5B

Includes Countrywide purchased credit-impaired loans of $35.4B ($10.6B residential mortgage, $12.8B home equity, $12.0B discontinued real estate) Residential mortgage includes $19.2B of government insured repurchases, which is likely to increase before it runs-off Direct/indirect loans include consumer finance loans of $13.8B, completed bulk purchase programs of $15.9B, and other loans of $9.3B in 3Q10 The majority of the commercial runoff portfolio reflects small business loans, while the reduction is primarily driven by the sale of First Republic

LOGO

3Q10 Loan Activity 1

(end of period loans, $ in billions)

Total Loans

$956.2 $8.9

$24.0 $7.2 $933.9

6/30 Loans Loan runoff Net charge- Net increase 9/30 Loans offs in loans

Addition to loan balance Subtraction to loan balance

Total Consumer

$9.7 $649.9

$19.1 $634.4 $6.1

6/30 Loans Loan runoff Net charge- Net increase 9/30 Loans offs in loans

Addition to loan balance Subtraction to loan balance

Commercial excl. CRE

$3.8

$244.7 $1.1 $0.7 $246.7

6/30 Loans Loan runoff Net charge- Net increase 9/30 Loans offs in loans

Addition to loan balance Subtraction to loan balance

Commercial Real Estate (CRE)

$61.6 $3.8 $0.4

$4.6 $52.8

6/30 Loans Loan runoff Net charge- Net decrease 9/30 Loans offs in loans

Addition to loan balance Subtraction to loan balance

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

LOGO

Investment and Brokerage Revenue

$3,500

$3,000

$2,500 $1,493 $1,520 $1,503 $1,556 millions $2,000 $1,381 in $1,500 $ $1,000 $1,230 $1,252 $1,281 $1,356 $500 $1,343 $0 $225 $242 $241 $82 3Q09 4Q09 1Q10 2Q10 3Q10

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

Commentary vs. 2Q10

• Investment and brokerage revenue declined by $270M vs. 2Q10 due to declines in asset management fees and brokerage income

• Asset management fees declined $95M reflecting

– Impact of the May 1st sale of the former Columbia Management long-term business

– Market valuations and absence of seasonal tax fees

– Partially offset by continued increased flows into long-term asset management products

• Brokerage fees declined $175M due to lower equity transactions driven by depressed industry trading volumes

Key Wealth Management Statistics

3Q10 2Q10

Financial Advisors 15,340 15,142

Client Facing Professionals 19,761 19,515 Assets under management ($ in B) 624.1 603.3 Total net client balances ($ in B) 2,169.1 2,091.7 MLGWM: Active accounts (in millions) 3.12 3.08 MLGWM: Net new $250K+ households 5,201 5,156

LOGO

Sales and Trading Revenue 1

$9,000

$8,000 $7,045

$7,000

$1,530

$6,000 $5,269

millions $5,000 $1,265 $4,501

in $4,000 $3,168 $974

$3,000

$2,220 $5,515 $852

$2,000 $4,004

$950 $3,527

$1,000 $2,316

$1,270

3Q09 4Q09 1Q10 2Q10 3Q10

Fixed income, currency and commodities Equity income

Commentary vs. 2Q10

• Sales and trading revenue increased $1.3B from 2Q10 driven by an improved trading environment, primarily in Credit Markets

• FICC revenue of $3.5B increased $1.2B compared to 2Q10 due to spread tightening, increased customer activity and eased concerns from the European sovereign debt crisis

• Equity revenue of $974M is up $122M from 2Q10 primarily due to the rebound from adverse market conditions in the prior quarter

• Marks on legacy assets resulted in gains of $264M compared to losses of $179M in 2Q10

• Average trading-related assets in the Global Banking & Markets segment were down 3% vs. 2Q10 to $498B

• Daily average trading VaR was flat compared to 2Q10 at $185M

• All days in the quarter had positive trading-related revenue

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

LOGO

Credit Trends Are Positive

Consumer 30+ Day Delinquencies 1

$14,000 $12,000 $10,000

$8,000 millions $7,643 in $6,000 $ $5,395 $4,000 $2,786 $2,000 $1,997 $-3Q09 4Q09 1Q10 2Q10 3Q10

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

Nonperforming Assets

$40,000 $35,747 $35,925 $35,598 $33,825 $34,556

$30,000 $13,480 $12,980 $12,170 $11,642 $12,873 millions $20,000 in $ $22,267 $22,945 $23,428 $22,914 $10,000 $20,952

3Q09 4Q09 1Q10 2Q10 3Q10 Consumer nonperforming loans, leases & foreclosed properties Commercial nonperforming loans, leases & foreclosed properties

Consumer Net Charge-offs 1

$6,000

$5,000

$4,000

$3,270 millions $3,000 in $ $2,000 $1,372 $1,000 $707 $660 $- $80 3Q09 4Q09 1Q10 2Q10 3Q10 Residential mortgage Home equity Credit card

Direct/Indirect Other Consumer

Commercial Net Charge-offs

$1,200

$1,000

$800 millions $600 in $ $444 $400 $410 $200 $218

3Q09 4Q09 1Q10 2Q10 3Q10

Commercial & Industrial Small business Commercial real estate

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

2 FHA insured loans are excluded for comparison purposes.

3 Includes commercial domestic excluding small business and commercial foreign.

LOGO

Allowance Coverage is Strong

Allowance to Annualized Net Charge-Off Coverage

1.65

Residential Mortgage

1.24

1.56 Excl Purchased Credit-Impaired 1 2.38

Home Equity

1.25 Excl Purchased Credit-Impaired 1 1.84

1.09

Credit Card

0.82

0.95

Direct / Indirect

0.83

2 3.09

Commercial & Industrial

2.87

2.20

Commercial Real Estate

1.39

1.34 Excl Purchased-Credit Impaired 1 1.53

Total Consolidated

1.05 Excl Purchased Credit-Impaired 1 1.18

3Q10 2Q10

Commentary vs. 2Q10

• $44B allowance for loan and lease losses provides coverage for 4.69% of loans, compared to $45B and 4.75% coverage in 2Q10

• Allowance now covers 1.5 times current period annualized net charge-offs compared to 1.2 times in 2Q10 (excluding the purchased credit-impaired reserves: 1.3 and 1.1 times for Total Consolidated and 1.6 and 1.3 times for Home Equity)

• Reserves were reduced by $1.8B in 3Q10 vs. $1.5B in 2Q10

• Delinquencies and inflow of nonperforming loans continue their positive trends

1 Home equity purchased credit-impaired includes the consumer allowance associated with the Countrywide acquisition. Total consolidated purchased credit-impaired includes the consumer allowance associated with the Countrywide acquisition and the commercial allowance associated with the Merrill Lynch acquisition.

2 Includes commercial domestic excluding small business and commercial foreign.

LOGO

3Q10 Results by Business Segment

($ in millions)

Global

Home Global Global

Total Global Card Wealth &

Deposits Loans & Commercial Banking & All Other

Corporation Services Investment

Insurance Banking Markets

Management

Net interest income (FTE) $12,717 $1,922 $4,361 $1,346 $1,874 $1,874 $1,292 $48

Card income 1,982 — 1,877 3 55 37 10 -

Service charges 2,212 1,138 — 5 528 520 19 2

Investment and brokerage services 2,724 (2) — — 11 581 2,134 -

Investment banking income 1,371 — — — 8 1,306 97 (40)

Equity investment income 357 3 1 5 (3) 77 180 94

Trading account profits 2,596 — — (1) (2) 2,453 39 107

Mortgage banking income 1,755 — — 1,756 — 19 4 (24)

Gains on sales of debt securities 883 — — 38 — 52 (1) 794

All other income 385 (1) (528) 592 88 257 298 (321)

Noninterest income 14,265 1,138 1,350 2,398 685 5,302 2,780 612

Total revenue, net of interest expense (FTE) 26,982 3,060 5,711 3,744 2,559 7,176 4,072 660

1 1

Total noninterest expense 27,216 2,693 12,099 2,979 1,000 4,446 3,449 550

Pre-tax, pre-provision earnings (234) 367 (6,388) 765 1,559 2,730 623 110

Provision for credit losses 5,396 62 3,177 1,302 554 (157) 128 330

Income (loss) before income taxes (5,630) 305 (9,565) (537) 1,005 2,887 495 (220)

Income tax expense (benefit) FTE 1,669 110 306 (193) 368 1,439 182 (543)

Net income (loss) $(7,299) $195 $(9,871) $(344) $637 $1,448 $313 $323

1 Includes goodwill impairment charge of $10.4B.

LOGO

FHA Insured Loans

Commentary vs. 2Q10

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

• Total consumer 30+ delinquency excluding FHA improved by $883M driven by decline in Consumer Card of $613M

($ in millions) 3Q10 2Q10 1Q10 4Q09 1 3Q09 1 FHA insured 30+ delinquencies $ 18,178 $ 16,988 $ 14,917 $ 12,241 $ 2,426

Change from prior period 1,190 2,071 2,676 9,815 1,979

30+ Delinquency Amounts

Total consumer as reported 36,167 35,860 36,799 37,093 27,925

Total consumer excluding FHA 2 17,989 18,872 21,882 24,852 25,499

Residential mortgages as reported 23,573 22,536 20,858 19,360 9,455

Residential mortgages excluding FHA 2 5,395 5,548 5,941 7,119 7,029

30+ Delinquency Ratios

Total consumer as reported 5.70% 5.52% 5.57% 5.56% 4.15%

Total consumer excluding FHA 2 3.21% 3.22% 3.64% 4.03% 4.04%

Residential mortgages as reported 9.69% 9.18% 8.51% 8.00% 3.96%

Residential mortgages excluding FHA 2 2.77% 2.68% 2.81% 3.26% 3.13%

1 2009 amounts shown on a managed basis.

2 Excludes purchased credit-impaired loans.

LOGO

Consumer Asset Quality Key Indicators

($ in millions)

Residential Mortgage Home Equity Discontinued Real Estate

3Q10 2Q10 3Q10 2Q10 3Q10 2Q10

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

As Reported As Reported As Reported As Reported As Reported As Reported

Loans end of period $ 243,141 $ 194,560 $ 245,502 $ 207,362 $ 141,558 $ 128,711 $ 146,274 $ 133,255 $ 13,442 $ 1,472 $ 13,780 $ 1,452

Loans average 237,292 196,074 247,715 210,750 143,083 130,192 148,219 135,126 13,632 1,544 13,972 1,543

Net charge-offs $ 660 $ 660 $ 971 $ 971 $ 1,372 $ 1,372 $ 1,741 $ 1,741 $ 17 $ 17 $ 19 $ 19

% of average loans 1.10% 1.34% 1.57% 1.85% 3.80% 4.18% 4.71% 5.17% 0.48% 4.25% 0.54% 4.90%

Allowance for loan losses $ 4,320 $ 4,318 $ 4,818 $ 4,816 $ 12,925 $ 8,489 $ 12,880 $ 8,701 $ 1,191 $ 95 $ 1,140 $ 60

% of Loans 1.78% 2.22% 1.96% 2.32% 9.13% 6.60% 8.81% 6.53% 8.86% 6.49% 8.27% 4.11%

Average refreshed (C)LTV 1 81 79 84 85 80 77

90%+ refreshed (C)LTV 1 34% 31% 41% 43% 28% 24%

Average refreshed FICO 718 719 723 723 641 645

% below 620 FICO 14% 13% 12% 12% 44% 43%

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

LOGO

Consumer Asset Quality Key Indicators (cont’d)

($ in millions)

Credit Card Other 1 Total Consumer

3Q10 2Q10 3Q10 2Q10 3Q10 2Q10

Loans end of period $ 140,871 $ 143,130 $ 95,403 $ 101,247 $ 634,415 $ 649,933

Loans average 142,298 146,444 98,647 101,507 634,952 657,857

Net charge-offs $ 3,270 $ 4,459 $ 787 $ 952 $ 6,106 $ 8,142

% of average loans 9.12% 12.21% 3.16% 3.77% 3.81% 4.96%

Allowance for loan losses $ 14,093 $ 14,581 $ 2,832 $ 3,111 $ 35,361 $ 36,530

% of Loans 10.00% 10.19% 2.97% 3.07% 5.57% 5.62%

• The average refreshed FICO for the U.S. Credit Card portfolio was 700 at 3Q10 compared to 697 at 2Q10

• The percentage below 620 was 14% at 3Q10 compared to 15% at 2Q10

• The 3Q credit card loss rate of 9.12% is down by 205 bps from 11.17% in 2Q10, excluding the 2Q10 accelerated losses in the foreign credit card portfolio to align policies on renegotiated loans with the domestic portfolio.

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

LOGO

Commercial Asset Quality Key Indicators 1

($ in millions)

Commercial and Commercial Commercial

2 Small Business Total Commercial Industrial Real Estate Lease Financing

3Q10 2Q10 3Q10 2Q10 3Q10 2Q10 3Q10 2Q10 3Q10 2Q10

Loans end of period $ 206,443 $ 203,454 $ 52,819 $ 61,587 $ 15,228 $ 15,913 $ 21,321 $ 21,392 $ 295,811 $ 302,346 Loans average $ 203,651 $ 203,280 $ 55,596 $ 64,116 $ 15,503 $ 16,329 $ 21,402 $ 21,271 $ 296,152 $ 304,996

Net Charge-offs $ 218 $ 245 $ 410 $ 645 $ 444 $ 528 $ 19 $ (3) $ 1,091 $ 1,415 % of average loans 0.43% 0.48% 2.93% 4.03% 11.38% 12.94% 0.34% (0.06%) 1.46% 1.86%

90+ Performing DPD 3 $ 145 $ 179 $ 174 $ 50 $ 363 $ 463 $ 24 $ 24 $ 706 $ 716 % of Loans 3 0.07% 0.09% 0.33% 0.08% 2.39% 2.91% 0.11% 0.11% 0.24% 0.24%

Nonperforming loans 3 $ 4,166 $ 4,347 $ 6,376 $ 6,704 $ 202 $ 222 $ 123 $ 140 $ 10,867 $ 11,413 % of Loans 3 2.02% 2.14% 12.07% 10.88% 1.33% 1.40% 0.58% 0.65% 3.67% 3.77%

Allowance for loan losses $ 2,676 $ 2,818 $ 3,573 $ 3,593 $ 1,820 $ 2,045 $ 151 $ 269 $ 8,220 $ 8,725 % of Loans 1.30% 1.38% 6.77% 5.83% 11.95% 12.85% 0.71% 1.26% 2.78% 2.89%

Reservable Criticized

Utilized Exposure 1, 3 $ 22,486 $ 24,100 $ 21,974 $ 22,918 $ 1,741 $ 1,467 $ 1,497 $ 1,834 $ 47,698 $ 50,319 % of Total Exposure 1, 3 8.25% 8.92% 39.00% 34.87% 11.40% 9.19% 7.02% 8.57% 13.06% 13.48%

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

2 Includes commercial domestic excluding small business and commercial foreign.

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

LOGO

Focus on Home Equity Loans

Loan Balances end of period

$200.0

$152.0 $149.1 $149.9

$146.3 $141.6 $150.0

billions $100.0 in $

$50.0

$0.0

3Q09 4Q09 1Q10 2Q10 3Q10

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

Allowance for Non-purchased Credit-Impaired Loans

$10,000 $8,701 $8,489 $8,263 $8,000 $7,189 $7,085

millions $6,000 in $ $4,000

$2,000

3Q09 4Q09 1Q10 2Q10 3Q10

Home Equity Portfolio Characteristics

•90% of portfolio are stand-alone originations versus piggy-back loans •$12.8B legacy Countrywide purchased credit-impaired loan portfolio •For the non-purchased credit-impaired portfolio –$25.3B are in first lien position –$103.5B are second lien positions –Approximately 36% or $37.1B have CLTVs greater than 100% –Does not mean that entire second lien position is a loss in the event of default –Assuming proceeds of 85% of the collateral value, we estimate collateral value of $11.6B available for second liens –Additionally, on 93% of second liens with CLTVs greater than 100%, the customer is current

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

Net Charge-offs 1 $3,000 $2,397

$2,000 $1,970 $1,741 $1,560 millions $1,372 in $ $1,000

3Q09 4Q09 1Q10 2Q10 3Q10

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

LOGO

Phase-In Rules on Basel III

Tier 1 Common Phase-in Details

Tier 1 Capital Counter-

Systemic Basel III Deduction

Common Conservation Cyclical Total

Buffer (?) Phase-in

Minimum Buffer Buffer (?)

1/1/2011 2.0% 0.0% 0.0% 0.0% 2.0% 0.0%

1/1/2012 2.0% 0.0% 0.0% 0.0% 2.0% 0.0%

1/1/2013 3.5% 0.0% 0.0% 0.0% 3.5% 0.0%

1/1/2014 4.0% 0.0% 0.0% 0.0% 4.0% 20.0%

1/1/2015 4.5% 0.0% 0.0% 0.0% 4.5% 40.0%

1/1/2016 4.5% 0.6% 0.0% 0.0% 5.1% 60.0%

1/1/2017 4.5% 1.3% 0.0% 0.0% 5.8% 80.0%

1/1/2018 4.5% 1.9% 0.0% 0.0% 6.4% 100.0%

1/1/2019 4.5% 2.5% 0.0% 0.0% 7.0% 100.0%