Bank of America Reports Fourth-Quarter and 2010 Financial Results

Fourth-Quarter Net Loss of $1.2 Billion, or $0.16 per Diluted Share, Includes Goodwill Impairment Charge of $2.0 Billion

Excluding Goodwill Impairment Charge, Fourth-Quarter Net Income Was $756 Million, or $0.04 per Diluted Share1

2010 Net Loss of $2.2 Billion, or $0.37 per Diluted Share, Includes Goodwill Impairment Charges of $12.4 Billion

Excluding Goodwill Impairment Charges, 2010 Net Income Was $10.2 Billion, or $0.86 per Diluted Share1

Deposits Rose to a Record $1 Trillion at Year-End

Company Continues to Build Capital and Strengthen the Balance Sheet

Credit Costs Decline Significantly as Economy Continues to Improve

Global Wealth and Investment Management Reports Record Asset Management Fees in the Fourth Quarter

Investment Bank Ranked No. 2 Globally and No. 1 in the U.S. in Revenues for 2010

CHARLOTTE, N.C.--(BUSINESS WIRE)-- Bank of America Corporation today reported a net loss of $1.2 billion, or $0.16 per diluted share, for the fourth quarter of 2010, including the previously announced goodwill impairment charge of $2.0 billion in the Home Loans and Insurance segment. Excluding the goodwill impairment charge, the company earned $756 million, or $ 0.04 per share.

1 Excluding the goodwill impairment charge from certain financial measures represents a non-GAAP measure. For reconciliation to GAAP measures, refer to page 25 of this press release.

Results for the most recent quarter also include a $4.1 billion provision expense for outstanding and future mortgage repurchase claims, including the previously announced $3.0 billion related to the Government Sponsored Enterprises (GSEs). Also included in the company's fourth-quarter results are $1.5 billion in litigation expenses, excluding fees paid to external legal service providers, primarily in the company's consumer businesses, and lower sales and trading revenues. These factors were partially offset by the continued reduction in credit costs, approximately $360 million in net gains from the sale of non-core assets, and a $1.2 billion income tax benefit from a valuation allowance release.

For the year, Bank of America had goodwill impairment charges of $12.4 billion, which resulted in a net loss of $2.2 billion, or $0.37 per diluted share. Excluding the goodwill impairment charges, the company earned $10.2 billion, or $0.86 per diluted share.

During the year, the company also recorded $2.6 billion in litigation expenses, $6.8 billion in representations and warranties provision and $321 million in gains related to legacy assets as it made significant progress resolving legacy issues.


                              Three months ended       Year ended
(Dollars in millions)
                              December 31              December 31

                              2010         2009        2010         2009

Net income (loss) excluding   $ 756        $ (194  )   $ 10,162     $ 6,276
goodwill

Goodwill impairment           $ 2,000      $ -         $ 12,400     $ -

Net income (loss)             $ (1,244 )   $ (194  )   $ (2,238 )   $ 6,276

Diluted earnings (loss) per
common share, excluding       $ 0.04       $ (0.60 )   $ 0.86       $ (0.29 )
goodwill

Diluted earnings (loss) per   $ (0.16  )   $ (0.60 )   $ (0.37  )   $ (0.29 )
common share



"Last year was a necessary repair and rebuilding year," said President and Chief Executive Officer Brian Moynihan. "Our results reflect the progress we are making at putting legacy - primarily mortgage-related - issues behind us. We earned $10.2 billion before goodwill impairment charges, rebuilt our capital positions, reduced the risk on our balance sheet, and shed more than $19 billion in assets that didn't directly serve customers and clients.

"We enter 2011 with the best customer franchise in the business against a backdrop of an improving economy. Full economic recovery depends on housing market stability. We will return value to shareholders by focusing on customers and clients, continuing to build capital, and executing our strategy."

2010 Financial Highlights

    --  The allowance for loan and lease losses to annualized net charge-off
        coverage ratio improved in the fourth quarter to 1.56 times, versus 1.11
        times at year-end 2009.
    --  Fourth-quarter 2010 net charge-offs were 2.87 percent, down for three
        straight quarters, or five straight quarters on a managed basis.
    --  The representations and warranties liability was $5.4 billion at
        year-end, up from $3.5 billion in 2009. The representations and
        warranties provision during 2010 was $6.8 billion, including $4.1
        billion in the fourth quarter of 2010.
    --  Global excess liquidity rose to a record $336 billion and
        time-to-required funding was 24 months at year-end 2010.
    --  Risk-weighted assets were reduced by $87 billion compared to year-end
        2009 through the sale of non-core positions, reductions in legacy
        positions and balance sheet management.
    --  The Tier 1 common ratio reached 8.60 percent at December 31, 2010, up
        from 7.81 percent at the end of 2009.
    --  Tangible common equity ratio reached 5.99 percent at December 31, 2010,
        up from 5.56 percent at the end of 2009.
    --  Ending deposit balances reached a record $1 trillion at December 31,
        2010, even with the sales of First Republic and Global Securities
        Solutions during the year.

Full-Year and Fourth-Quarter Business Highlights

    --  The company maintained its market-leading positions in key segments,
        including deposits, payment products, consumer lending, wealth
        management, small business and middle-market lending, treasury services,
        investment banking, and sales and trading.
    --  Global Wealth and Investment Management continued to drive a strong
        client focus bringing together the investment products and the banking
        products of legacy entities.
    --  Record asset management fees were reported in Global Wealth and
        Investment Management in the fourth quarter of 2010 with $644 billion in
        assets under management at December 31, 2010.
    --  Average deposit balances in Global Wealth and Investment Management grew
        nearly 14 percent in the fourth quarter of 2010 to a record $253.4
        billion from $223.1 billion in the fourth quarter of 2009.
    --  Approximately 281,000 loan and deposit products were sold to customers
        who had an investment relationship with Merrill Lynch in the past.
    --  Global Card Services returned to profitability in the fourth quarter of
        2010 with net income of $1.5 billion. Excluding the $10.4 billion
        goodwill impairment charge in the third quarter of 2010, Global Card
        Services would have been profitable for four straight quarters.
    --  New U.S. consumer card accounts in the quarter were up 9 percent from
        the third quarter of 2010.
    --  Bank of America Merrill Lynch ranked No. 2 in global investment banking
        revenues for 2010 with a 6.8 percent market share, according to
        Dealogic. The company ended the year with No. 1 positions in both global
        and U.S. rankings in leveraged loans and asset-backed securities. Bank
        of America Merrill Lynch participated in eight of the top 10 investment
        banking deals of the year by fees and six of the top 10 investment
        banking deals in the fourth quarter by fees.
    --  Bank of America continued to support the economic recovery by extending
        approximately $188 billion in credit in the fourth quarter of 2010,
        according to preliminary data. Credit extensions included $85 billion in
        first mortgages, $80 billion in commercial non-real estate, $11 billion
        in commercial real estate, $4 billion in domestic consumer and small
        business card, $2 billion in home equity products and $6 billion in
        other consumer credit.
    --  The $85 billion in first mortgages funded in the fourth quarter helped
        nearly 370,000 people either purchase homes or refinance existing
        mortgages. This included approximately 14,000 first-time homebuyer
        credit-qualified mortgages and more than 105,000 mortgages to low- and
        moderate-income borrowers. Approximately 26 percent of funded first
        mortgages were for home purchases and 74 percent were refinances.
    --  Bank of America continued to support small business, lending $21 billion
        to small- and medium-sized businesses in the fourth quarter. For the
        year, Bank of America provided $92 billion in credit to small- and
        medium-sized businesses, exceeding its previously announced goal to
        provide more than $85 billion to these businesses in 2010.
    --  Since the start of 2008, Bank of America and previously Countrywide have
        completed nearly 775,000 loan modifications with customers. During the
        fourth quarter, 76,000 loan modifications were completed, including
        25,000 consumers who converted from trial modifications under the U.S.
        government's Making Home Affordable Program. The fourth-quarter numbers
        represented a 69 percent increase from total modifications in the fourth
        quarter a year ago.

Fourth-Quarter 2010 Revenue and Expense


                                  Three Months Ended

                                  December 31,   September 30,   December 31,
(Dollars in millions)
                                  2010           2010            2009

Net interest income, FTE basis1   $ 12,709       $ 12,717        $ 11,896

Noninterest income                  9,959          14,265          13,517

Total revenue, net of interest      22,668         26,982          25,413
expense, FTE basis

Noninterest expense2              $ 18,864       $ 16,816        $ 16,385

Goodwill impairment charge          2,000          10,400          -

Net (loss)                        $ (1,244 )     $ (7,299 )      $ (194   )

Net income (loss) excluding       $ 756          $ 3,101         $ (194   )
goodwill impairment charge



1 FTE basis is a non-GAAP measure. For reconciliation to GAAP measures, refer to page 25 of this press release. In the three months ended December 31, 2009, net interest income on a managed FTE basis was $14.4 billion. Managed basis assumes that credit card loans that were securitized were not sold and presented earnings on these loans in a manner similar to the way loans that have not been sold (i.e., held loans) were presented.

2 Excludes goodwill impairment charges of $10.4 billion and $2.0 billion in the third and fourth quarters of 2010, respectively.

Revenue, net of interest expense, on a fully taxable-equivalent (FTE) basis fell 11 percent from the fourth quarter of 2009. Net interest income on an FTE basis increased 7 percent from a year earlier. Adjusting for the impact of adopting new consolidation guidance on January 1, 2010, revenue for the fourth quarter of 2010 was down 20 percent from the fourth quarter of 2009.

Noninterest income declined 26 percent, or $3.6 billion, from the year-ago quarter due to lower mortgage banking income as a result of a $3.6 billion increase in representations and warranties provision, $720 million lower service charges and a $994 million decline in equity investment income and trading account profits. These factors were partially offset by year-over-year improvements in other income driven by lower losses on structured liabilities and increases in card income due to the adoption of new consolidation guidance.

Noninterest expense was up 27 percent from the year-ago quarter, driven in part by the $2.0 billion goodwill impairment charge. Excluding the goodwill impairment charge, noninterest expense was up 15 percent, or $2.5 billion, from a year ago, due primarily to a $933 million increase in litigation expenses, $1.4 billion in higher personnel costs as the company builds out businesses such as wealth management and international capital markets, and a $113 million rise in professional fees. Pretax merger and restructuring charges declined $163 million from a year earlier to $370 million. Results also reflect a $2.4 billion tax benefit that includes a $1.2 billion income tax asset valuation allowance release.

2010 Revenue and Expense


                                                    Full-Year

(Dollars in millions)                               2010          2009

Net interest income, FTE basis1                     $ 52,693      $ 48,410

Noninterest income                                    58,697        72,534

Total revenue net of interest expense, FTE basis      111,390       120,944

Noninterest expense2                                $ 70,708      $ 66,713

Goodwill impairment charge                            12,400        -

Net income (loss)                                   $ (2,238  )   $ 6,276

Net income excluding goodwill impairment charges2   $ 10,162      $ 6,276



1 FTE basis is a non-GAAP measure. For reconciliation to GAAP measures, refer to page 25 of this press release. For the year ended December 31, 2009, net interest income on a managed FTE basis was $58.9 billion. Managed basis assumes that credit card loans that were securitized were not sold and presented earnings on these loans in a manner similar to the way loans that have not been sold (i.e., held loans) were presented.

2 Excludes goodwill impairment charges of $12.4 billion in 2010.

For the full year 2010, revenue, net of interest expense, on an FTE basis fell 8 percent from the prior year. Net interest income on an FTE basis increased 9 percent from a year earlier, reflecting the impact of the adoption of new consolidation guidance.

Noninterest income declined from the prior year due primarily to lower mortgage banking income, reflecting $6.8 billion in representations and warranties costs. In addition, there were declines in the following areas: equity investment income, gains on sales of debt securities, trading account profits, service charges and insurance income. These factors were partially offset by year-over-year improvements in other income driven largely by essentially flat fair value adjustments on structured liabilities, compared to negative fair value adjustments of $4.9 billion in the year-ago period, and increases in card income due to the adoption of new consolidation guidance.

Noninterest expense was up from the prior year, primarily reflecting the $12.4 billion in goodwill impairment charges. Excluding these charges, noninterest expense was up 6 percent from a year ago attributable largely to an increase in personnel costs of $3.6 billion, reflecting the building out of several businesses including the international capital markets platform and a $1.6 billion increase in litigation expenses. Pretax merger and restructuring charges declined $901 million from a year earlier to $1.8 billion.

Fourth-Quarter 2010 Credit Quality


                                  Three Months Ended

                                  December 31,   September 30,   December 31,
(Dollars in millions)
                                  2010           2010            2009

Provision for credit losses       $ 5,129        $ 5,396         $ 10,110

Net charge-offs                     6,783          7,197           8,421

Net charge-off ratio1               2.87   %       3.07   %        3.71   %

Total managed net losses2           n/a            n/a           $ 11,347

Total managed net loss ratio1,2     n/a            n/a             4.54   %

                                  At December    At September    At December

                                  31, 2010       30, 2010        31, 2009

Nonperforming loans, leases and   $ 32,664       $ 34,556        $ 35,747
foreclosed properties

Nonperforming loans, leases and     3.48   %       3.71   %        3.98   %
foreclosed properties ratio3

Allowance for loan and lease      $ 41,885       $ 43,581        $ 37,200
losses

Allowance for loan and lease        4.47   %       4.69   %        4.16   %
losses ratio4



1 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 during the period.

2 Periods prior to January 1, 2010 are shown on a managed basis, which prior to the adoption of new consolidation guidance included losses on securitized credit card loans, which are reported in net charge-offs post-adoption.

3 Nonperforming loans, leases and foreclosed properties ratios are calculated as nonperforming loans, leases and foreclosed properties divided by outstanding loans, leases and foreclosed properties at the end of the period.

4 Allowance for loan and lease losses ratios are calculated as allowance for loan and lease losses divided by loans and leases outstanding at the end of the period.

n/a = not applicable

Note: Ratios do not include loans measured under the fair value option.

Credit quality continued to improve during the fourth quarter, with net charge-offs continuing to decline across nearly all portfolios. Credit costs, while still at elevated levels, fell for the sixth consecutive quarter. Additionally, delinquencies 30 days past due or more and still accruing, excluding Federal Housing Administration-insured loans, declined for the seventh consecutive quarter, and reservable criticized utilized levels decreased for the fifth consecutive quarter.

Net charge-offs declined $414 million from the third quarter of 2010, reflecting improvement in both the consumer and commercial portfolios. The decrease was primarily driven by the impact of a continued decline in delinquencies and bankruptcies across the U.S. Global Card Services loan portfolios and a decline in delinquencies in the home equity portfolio.

The allowance for loan and lease losses to annualized net charge-off coverage ratio improved in the fourth quarter to 1.56 times, compared with 1.53 times in the third quarter of 2010 and 1.11 times in the fourth quarter of 2009. Excluding purchased credit-impaired loans, the allowance to annualized net charge-off coverage ratio was 1.32, 1.34 and 1.01 times for the same periods, respectively.

Nonperforming loans, leases and foreclosed properties were $32.7 billion at December 31, 2010, down 5 percent from $34.6 billion at September 30, 2010, and 9 percent from $35.7 billion at December 31, 2009.

The provision for credit losses was $5.1 billion, $267 million lower than the third quarter and $5.0 billion lower than the same period a year earlier. The provision was $1.7 billion lower than net charge-offs, resulting in a reduction in the allowance for loan and lease losses for the quarter. This compares with a $1.8 billion reduction in the third quarter and the addition of $1.7 billion a year earlier.

Improved delinquencies and bankruptcies in the U.S. credit card, small business and consumer lending businesses in the fourth quarter led to a reduction in the allowance for loan and lease losses. Additionally, continuing improvement in economic conditions contributed to an allowance reduction in the core commercial portfolio. These were partially offset by allowance additions of $828 million related to consumer purchased credit-impaired portfolios obtained in prior periods through acquisitions.

2010 Credit Quality


                                  Full-Year

(Dollars in millions)             2010         2009

Provision for credit losses       $ 28,435     $ 48,570

Net charge-offs                     34,334       33,688

Net charge-off ratio1               3.60   %     3.58   %

Total managed net losses2           n/a        $ 45,087

Total managed net loss ratio1,2     n/a          4.33   %



1 Net charge-off/loss ratios are calculated as held net charge-offs or managed net losses divided by average outstanding held or managed loans and leases during the period.

2 Periods prior to January 1, 2010 are shown on a managed basis, which prior to the adoption of new consolidation guidance included losses on securitized credit card and other loans, which are reported in net charge-offs post-adoption.

n/a = not applicable

Note: Ratios do not include loans measured under the fair value option.

Broad-based improvement across most portfolios drove lower credit costs in 2010, resulting in a reduction in the allowance for loan and lease losses. Full-year provision for credit losses was $28.4 billion compared to $48.6 billion in 2009 or less than half of 2009 managed credit costs of $60 billion. The improving portfolio trends throughout the year were across most of the consumer and commercial businesses, particularly the U.S. credit card, small business and consumer lending businesses, as well as core commercial loan portfolios. The allowance reductions were partially offset by additions related to consumer purchased credit-impaired portfolios obtained in prior periods through acquisitions.

Net charge-offs were $646 million higher than the prior year due to the adoption of new consolidation guidance, partially offset by decreases in charge-offs across most portfolios due to the improving portfolio trends noted above.

Capital and Liquidity Management


(Dollars in millions, except per   At December   At September   At December
share information)
                                   31, 2010      30, 2010       31, 2009

Total shareholders' equity         $ 228,248     $ 230,495      $ 231,444

Tier 1 common ratio                  8.60    %     8.45    %      7.81    %

Tier 1 capital ratio                 11.24   %     11.16   %      10.40   %

Total capital ratio                  15.77   %     15.65   %      14.66   %

Tangible common equity ratio1        5.99    %     5.74    %      5.56    %

Tangible book value per share1     $ 12.98       $ 12.91        $ 11.94



1 Tangible common equity ratio and tangible book value per share are non-GAAP measures. Other companies may define or calculate the tangible common equity ratio and tangible book value per share differently. For reconciliation to GAAP measures, refer to page 25 of this press release.

The company's liquidity position strengthened during the fourth quarter. The company's total global excess liquidity rose approximately $12 billion from the third quarter of 2010 to $336 billion. At December 31, 2010, the company's time-to-required funding was 24 months.

During the quarter, a cash dividend of $0.01 per common share was paid, and the company declared $321 million in preferred dividends. Period-end common shares issued and outstanding were 10.09 billion for the fourth quarter, 10.03 billion for the third quarter of 2010 and 8.65 billion for the fourth quarter of 2009. The increase in outstanding shares year over year was driven primarily by the conversion of common equivalent shares into common stock in the first quarter of 2010, the issuance of common stock under employee plans during the year and the conversion of the mandatory convertible preferred stock in the fourth quarter of 2010.

Business Segment Results

Deposits


                                 Full-Year

(Dollars in millions)            2010                   2009

Total revenue, net of interest   $ 13,181               $ 13,890
expense, FTE basis

Provision for credit losses        201                    343

Noninterest expense                10,831                 9,501

Net income                       $ 1,352                $ 2,576

Return on average equity           5.58    %              10.92   %

Average deposits                 $ 411,001              $ 406,823

                                 At December 31, 2010   At December 31, 2009

Period-end deposits              $ 406,856              $ 419,583



Deposits full-year 2010 net income of $1.4 billion declined $1.2 billion from a year ago due to decreases in revenue and higher noninterest expense.

The revenue decline was driven by the impact of Regulation E (Reg E), which was effective in the third quarter of 2010 and the overdraft policy changes implemented in the fourth quarter of 2009. These were partially offset by increased net interest income due to a customer shift to more liquid products and continued pricing discipline.

Noninterest expense increased 14 percent from a year ago as a result of a higher proportion of costs associated with banking center sales and service efforts being aligned to Deposits from the other segments and increased litigation expenses in 2010. The prior year included a special FDIC assessment of $362 million.

Average deposits were up 1 percent from a year ago mainly due to the transfer of certain deposits from other client-managed businesses as well as organic growth, partially offset by the expected runoff of higher-cost legacy Countrywide deposits.

Deposits reported a fourth-quarter net loss of $201 million, compared to net income of $610 million during the same period last year, due to a decline in revenue and an increase in noninterest expense. Revenue declined due to the impact of Reg E, partially offset by increased net interest income due to a customer shift to more liquid products and continued pricing discipline. Noninterest expense increased due to the increased litigation expenses and as a result of higher proportion of costs associated with banking center sales and service efforts being aligned to Deposits from other business segments.

Global Card Services


                                 Full-Year

(Dollars in millions)            2010                   2009

Total revenue, net of interest   $ 25,621               $ 29,046
expense, FTE basis1

Provision for credit losses1       12,648                 29,553

Noninterest expense2               6,953                  7,726

Goodwill impairment charge         10,400                 -

Net (loss)                       $ (6,603  )            $ (5,261  )

Net income (loss) excluding      $ 3,797                $ (5,261  )
goodwill impairment charge2

Return on average equity           n/m                    n/m

Average loans1                   $ 176,232              $ 211,981

                                 At December 31, 2010   At December 31, 2009

Period-end loans1                $ 167,367              $ 196,289



1 Results for 2009 shown on a managed basis. Managed basis assumed that credit card loans that were securitized were not sold and presented earnings on these loans in a manner similar to the way loans that have not been sold (i.e., held loans) were presented and represented provision for credit losses on held loans combined with realized credit losses associated with the securitized credit card loan portfolio. For more information and detailed reconciliation, refer to page 26 of this press release.

2 Excludes goodwill impairment charge of $10.4 billion in 2010.

n/m = not meaningful

Global Card Services reported a full-year net loss of $6.6 billion due to the $10.4 billion goodwill impairment charge in the third quarter. Excluding this charge, Global Card Services net income was $3.8 billion, compared to a net loss of $5.3 billion a year ago as both credit costs and noninterest expense declined. During the year, risk-adjusted margin for consumer credit card increased to 2.92 percent compared to 1.92 percent in 2009, primarily driven by improvement in credit quality.

Revenue decreased $3.4 billion from a year ago driven by lower average loans, reduced interest and fee income primarily resulting from the implementation of the CARD Act, and the impact of recording a provision related to future payment protection insurance claims in the U.K. This decrease was partially offset by the gain on the sale of the MasterCard position in 2010.

Provision for credit losses decreased $16.9 billion from a year ago driven primarily by lower delinquencies and decreasing bankruptcies as a result of the improved economic environment. This resulted in reserve reductions of $7.0 billion in 2010 compared to reserve increases of $3.4 billion in 2009 and $6.5 billion lower net charge-offs. Risk-adjusted margin increased to 2.92 percent compared to 1.92 percent in 2009.

Noninterest expense increased compared to a year ago due to the $10.4 billion goodwill impairment charge. Excluding this impairment charge, noninterest expense decreased 10 percent compared to the year-ago period as a higher proportion of costs associated with banking center sales and service efforts were aligned to Deposits from Global Card Services.

Net income of $1.5 billion in the fourth quarter of 2010 compared to a net loss of $994 million during the same period last year due to lower credit costs as the economy improved. Revenue declined 12 percent during the fourth quarter of 2010 compared with the same period a year ago driven by lower average loans and reduced interest and fee income primarily resulting from the implementation of the CARD Act.

Home Loans and Insurance


                                 Full-Year

(Dollars in millions)            2010                   2009

Total revenue, net of interest   $ 10,647               $ 16,903
expense, FTE basis

Provision for credit losses        8,490                  11,244

Noninterest expense1               13,163                 11,705

Goodwill impairment charge         2,000                  -

Net loss                         $ (8,921  )            $ (3,851  )

Net loss excluding goodwill      $ (6,921  )            $ (3,851  )
impairment charge1

Average loans                    $ 129,236              $ 130,519

                                 At December 31, 2010   At December 31, 2009

Period-end loans                 $ 122,935              $ 131,302



1 Excludes goodwill impairment charge of $2.0 billion in 2010.

Home Loans and Insurance reported a full-year net loss of $8.9 billion for 2010 primarily due to $6.8 billion in representations and warranties expense and a $2.0 billion goodwill impairment charge.

Revenue declined by $6.3 billion, or 37 percent, driven by an increase of $4.9 billion in representations and warranties expense and a $1.2 billion decline in mortgage production revenue. The decline in production revenue was primarily due to a decline in loan volumes, reflecting a drop in the overall size of the mortgage market.

Provision for credit losses decreased $2.8 billion driven by improving portfolio trends including a lower reserve addition for the Countrywide purchased credit-impaired home equity portfolio. Excluding the goodwill impairment charge, noninterest expense increased $1.5 billion from a year ago due to higher litigation expenses and an increase in default-related servicing expenses, partially offset by lower production expense and insurance losses.

The fourth-quarter 2010 net loss of $5.0 billion compared to a net loss of $1.0 billion in the fourth quarter of 2009. The increase was primarily due to representations and warranties expense of $4.1 billion in the fourth quarter of 2010, which includes $3.0 billion related to the previously announced GSE agreements as well as adjustments to the representations and warranties liability for other loans sold directly to the GSEs and not covered by those agreements. Excluding the $2.0 billion goodwill impairment charge, Home Loans and Insurance net loss was $3.0 billion for the fourth quarter of 2010.

Bank of America believes that it has addressed its remaining exposure to repurchase obligations for residential mortgage loans sold directly to the GSEs through the $3.0 billion increase in representations and warranties provision referred to above. The calculation of the provision incorporates historical experience with the GSEs and certain assumptions regarding home prices and other economic matters, and future provisions for representations and warranties may be affected if the actual results are different.

At December 31, 2010, the company's unresolved repurchase requests totaled approximately $10.7 billion, compared with $12.9 billion on September 30, 2010 and $7.6 billion at the end of 2009. The liability for representations and warranties was $5.4 billion at December 31, 2010, compared with $4.4 billion on September 30, 2010, and $3.5 billion at the end of 2009. The increase in the liability reflects the $6.8 billion in representations and warranties provision expensed during the year, less payments made to various counterparties.

Compared to the same period in the prior year, results in the fourth quarter of 2010 were also impacted by the $2.0 billion goodwill impairment charge, increased default and other loss mitigation servicing expenses, partially offset by more favorable mortgage servicing rights results. Provision for credit losses in the fourth quarter of 2010 decreased as compared to the same period in the prior year driven by lower net charge-offs and improving portfolio trends.

Global Commercial Banking


                                                    Full-Year

(Dollars in millions)                               2010          2009

Total revenue, net of interest expense, FTE basis   $ 10,903      $ 11,141

Provision for credit losses                           1,971         7,768

Noninterest expense                                   3,874         3,833

Net income (loss)                                   $ 3,181       $ (290    )

Return on average equity                              7.64    %     n/m

Average loans and leases                            $ 203,339     $ 229,102

Average deposits                                      148,565       129,832



n/m = not meaningful

Global Commercial Banking full-year net income increased $3.5 billion from the year-ago loss of $290 million due to lower credit costs.

Revenue decreased $238 million from a year ago primarily due to a lower residual net interest income allocation related to asset and liability management activities and increased costs from an agreement to purchase certain loans. These factors were partially offset by credit pricing discipline, which negated the impact of lower loan volumes, and continued deposit growth from existing clients.

The provision for credit losses decreased $5.8 billion to $2.0 billion for the year compared to 2009. The decrease was driven by improvements primarily in the commercial real estate portfolio, reflecting stabilizing values, and the U.S. commercial portfolio, reflecting improved borrower credit profiles. All other portfolios experienced lower net charge-offs attributable to more stable economic conditions.

Average deposit balances continued to grow, increasing by $18.7 billion, as clients managed to new liquidity levels. Although average loan and lease balances decreased $25.8 billion from a year ago due to client deleveraging and low loan demand, ending commercial and industrial loan balances have grown approximately 2 percent from the third quarter of 2010, showing stability.

Fourth-quarter 2010 net income increased to $1.0 billion compared to a net loss of $31 million in the same period last year. The provision for credit losses decreased $2.0 billion compared to the same period in 2009. Revenues and provision for credit losses declined due to the same factors as described in the full-year discussion above.

Global Banking and Markets


                                                    Full-Year

(Dollars in millions)                               2010          2009

Total revenue, net of interest expense, FTE basis   $ 28,498      $ 32,623

Provision for credit losses                           (155    )     1,998

Noninterest expense                                   18,038        15,921

Net income                                            6,319         10,058

Return on average equity                              12.01   %     20.32   %

Total average assets                                $ 758,958     $ 778,870

Total average deposits                                109,792       104,868



Global Banking and Markets full-year net income decreased $3.7 billion compared to the prior year. Revenue decreased primarily due to the weak trading environment and losses on certain market positions. The prior year included a $3.8 billion gain on the contribution of the merchant services business to a joint venture, which was largely offset by market disruption charges. The provision for credit losses declined $2.2 billion due to lower net charge-offs in the corporate portfolio reflecting improvement in borrower credit profiles and lower reservable criticized levels.

Fixed Income, Currency and Commodities sales and trading revenue of $13.2 billion increased $435 million compared to a year ago as a reduction in market activity and increased investor risk aversion in 2010 were offset by significantly lower market disruption charges.

Equities sales and trading revenue declined to $4.1 billion from $4.9 billion a year ago, driven primarily by a decrease in volumes as well as adverse market conditions in the equity derivatives business.

Noninterest expense increased $2.1 billion driven by higher compensation costs, approximately $400 million for the U.K. bonus tax in the second quarter, and the recognition of expense on proportionately larger prior year incentive deferrals. Income tax expense was adversely affected by a charge related to the U.K. tax rate reduction, impacting the carrying value of the deferred tax asset.

Fourth-quarter 2010 net income declined to $724 million, compared with $1.4 billion a year earlier, as revenues remained flat and a benefit in the provision for credit losses due to lower net charge-offs and reserve reductions was offset by higher compensation expense.

Global Wealth and Investment Management


                                 Full-Year

(Dollars in millions)            2010                   20091

Total revenue, net of interest   $ 16,671               $ 16,137
expense, FTE basis

Provision for credit losses        646                    1,061

Noninterest expense                13,598                 12,397

Net income                         1,347                  1,716

Return on average equity           7.44    %              10.35   %

Average loans                    $ 99,491               $ 103,384

Average deposits                   236,350                225,979

(in billions)                    At December 31, 2010   At December 31, 2009

Assets under management2         $ 643.9                $ 749.8

Total net client balances2,3       2,238.5                2,272.5



1 The historical results of GWIM have been restated to reflect the transfer of the company's investment in BlackRock to All Other.

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

3 Total client balances are defined as assets under management, client brokerage assets, assets in custody, client deposits and loans.

Global Wealth and Investment Management full-year 2010 net income decreased $369 million from a year earlier driven by higher noninterest expense and the tax-related effect from the sale of the Columbia long-term business, partially offset by higher noninterest income and lower credit costs.

Revenue increased $534 million from a year earlier to $16.7 billion, driven by higher asset management fees and transactional revenue.

For the year, provision for credit losses decreased $415 million from a year ago to $646 million, driven by lower net charge-offs in the consumer real estate and commercial portfolios, along with the absence of a prior-year single large commercial charge-off. Noninterest expense increased from a year ago due primarily to higher revenue-related expenses, support costs and personnel costs associated with further development of the business.

Fourth-quarter 2010 net income decreased $197 million to $332 million compared with the same period last year, reflecting higher provision for credit losses. Revenue increased to $4.3 billion, compared to $4.0 billion in the year-ago quarter, due in part to increased deposits. Asset management fees rose to $1.4 billion in the fourth quarter, reflecting positive market and long-term client flows.

All Other


                                                    Full-Year

(Dollars in millions)                               2010        2009

Total revenue, net of interest expense, FTE basis   $ 5,869     $ 1,204

Provision for credit losses                         $ 4,634     $ (3,379  )

Noninterest expense                                   2,431       2,909

Net income                                          $ 1,087     $ 1,328

Average loans                                       $ 250,956   $ 162,302



All Other reported full-year net income of $1.1 billion, down $241 million from $1.3 billion a year ago, as higher revenue reflected an increase in net interest income and positive fair value adjustments related to structured liabilities, compared to negative fair value adjustments of $4.9 billion in the year-ago period. These items were offset by a significantly higher provision for credit losses, lower equity investment gains and lower gains on sales of debt securities in 2010 as compared to 2009.

The provision for credit losses increased to $4.6 billion from a provision benefit of $3.4 billion a year ago, primarily due to the impact of the new consolidation guidance as the prior year included a securitization offset to present Global Card Services on a managed basis. Additionally, the provision for credit losses was adversely impacted by further reserve increases to the Countrywide purchased credit-impaired discontinued real estate portfolio. These items were partially offset by a lower provision for credit losses related to the residential mortgage portfolio due to improving portfolio trends.

Fourth-quarter 2010 net income of $346 million increased $1.1 billion from a $749 million loss a year earlier, primarily driven by lower negative fair value adjustments related to structured liabilities and a significantly lower provision for credit losses compared to the fourth quarter of 2009 primarily due to the impact of the new consolidation guidance.

All Other consists primarily of equity investments, the residential mortgage portfolio associated with asset and liability management (ALM) activities, the residual impact of the cost allocation process, merger and restructuring charges, intersegment eliminations, fair value adjustments related to structured liabilities and the results of certain consumer finance, investment management and commercial lending businesses that are being liquidated. Prior to January 1, 2010, All Other also included the offsetting securitization impact to present Global Card Services on a managed basis. For more information and detailed reconciliation, please refer to the data pages supplied with this press release.

Note: President and Chief Executive Officer Brian Moynihan and Chief Financial Officer Charles Noski will discuss fourth-quarter and full-year 2010 results in a conference call at 8:30 a.m. ET today. The presentation and supporting materials can be accessed on the Bank of America Investor Relations Web site at http://investor.bankofamerica.com. For a listen-only connection to the conference call, dial 1.888.245.1801 (U.S.) or 1.785.424.1733 (international) and the conference ID: 79795.

Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 57 million consumer and small business relationships with approximately 5,900 retail banking offices and approximately 18,000 ATMs and award-winning online banking with 29 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.

Forward-Looking Statements

Bank of America and its management may make certain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as "anticipates," "targets," "expects," "estimates," "intends," "plans," "goals," "believes" and other similar expressions or future or conditional verbs such as "will," "should," "would" and "could." The forward-looking statements made represent Bank of America's current expectations, plans or forecasts of its future results and revenues, including future risk-weighted assets and any mitigation efforts to reduce risk-weighted assets; representations and warranties liabilities, expenses and repurchase activity; net interest income; credit trends and conditions, including credit losses, credit reserves, charge-offs, delinquency trends and nonperforming asset levels; consumer and commercial service charges, including the impact of changes in the company's overdraft policy as well as from the Electronic Fund Transfer Act and the company's ability to mitigate a decline in revenues; liquidity; capital levels determined by regulatory agencies or established in accordance with accounting principles generally accepted in the U.S., including complying with any Basel capital requirements without raising additional capital; the revenue impact of the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (the CARD Act); the revenue impact resulting from and any mitigation actions taken in response to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Financial Reform Act); mortgage production levels; long-term debt levels; runoff of loan portfolios; the number of delayed foreclosure sales and the resulting financial impact; and other similar matters. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and are often beyond Bank of America's control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements.

You should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risks, as well as those more fully discussed under Item 1A. "Risk Factors" of Bank of America's 2009 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q for the quarters ended June 30, 2010, and September 30, 2010, and in any of Bank of America's subsequent SEC filings: the foreclosure revenue and assessment process, the effectiveness of the company's response and any third-party claims asserted or governmental action taken in connection with the foreclosures; certain obligations under and provisions contained in the agreements regarding representations and warranties with Fannie Mae and Freddie Mac; the adequacy of the liability for the representations and warranties exposures to the GSEs, monolines and the private label securitization and other investors; the potential assertion and impact of additional claims not addressed by the Fannie Mae and Freddie Mac agreements; negative economic conditions; Bank of America's modification policies and related results; the level and volatility of the capital markets, interest rates, currency values and other market indices; changes in consumer, investor and counterparty confidence, and the related impact on financial markets and institutions; Bank of America's credit ratings and the credit ratings of its securitizations; estimates of fair value of certain of Bank of America's assets and liabilities; legislative and regulatory actions in the United States (including the impact of the Financial Reform Act, the Electronic Fund Transfer Act, the CARD Act and related regulations and interpretations) and internationally; the identification and effectiveness of any initiatives to mitigate the negative impact of the Financial Reform Act; the impact of litigation and regulatory investigations, including costs, expenses, settlements and judgments; various monetary and fiscal policies and regulations of the U.S. and non-U.S. governments; changes in accounting standards, rules and interpretations (including new consolidation guidance), inaccurate estimates or assumptions in the application of accounting policies, including in determining reserves, applicable guidance regarding goodwill accounting and the impact on Bank of America's financial statements; increased globalization of the financial services industry and competition with other U.S. and international financial institutions; Bank of America's ability to attract new employees and retain and motivate existing employees; mergers and acquisitions and their integration into Bank of America, including the company's ability to realize the benefits and cost savings from and limit any unexpected liabilities acquired as a result of the Merrill Lynch acquisition; Bank of America's reputation; and decisions to downsize, sell or close units or otherwise change the business mix of Bank of America.

Forward-looking statements speak only as of the date they are made, and Bank of America undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

BofA Global Capital Management Group, LLC ("BofA Global Capital Management") is an asset management division of Bank of America Corporation. BofA Global Capital Management entities furnish investment management services and products for institutional and individual investors.

Bank of America Merrill Lynch is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, financial advisory, and other investment banking activities are performed by investment banking affiliates of Bank of America Corporation ("Investment Banking Affiliates"), including Banc of America Securities LLC, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, which are both registered broker-dealers and members of FINRA and SIPC. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed. Bank of America Corporation's broker-dealers are not banks and are separate legal entities from their bank affiliates. The obligations of the broker-dealers are not obligations of their bank or thrift affiliates (unless explicitly stated otherwise), and these bank affiliates are not responsible for securities sold, offered or recommended by the broker-dealers. The foregoing also applies to other non-bank, non-thrift affiliates.

www.bankofamerica.com



Bank of America Corporation and Subsidiaries

Selected Financial Data

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

                Year Ended                      Fourth           Third            Fourth

Summary
Income          December 31                     Quarter          Quarter          Quarter
Statement

                2010            2009            2010             2010             2009

Net interest    $ 51,523        $ 47,109        $ 12,439         $ 12,435         $ 11,559
income

Noninterest       58,697          72,534          9,959            14,265           13,517
income

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

Provision for     28,435          48,570          5,129            5,396            10,110
credit losses

Noninterest       68,888          63,992          18,494           16,395           15,852
expense (1)

Goodwill          12,400          -               2,000            10,400           -
impairment

Merger and
restructuring     1,820           2,721           370              421              533
charges

Income (loss)
before income     (1,323    )     4,360           (3,595     )     (5,912     )     (1,419    )
taxes

Income tax
expense           915             (1,916    )     (2,351     )     1,387            (1,225    )
(benefit)

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

Preferred
stock             1,357           8,480           321              348              5,002
dividends and
accretion (2)

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

Loss per        $ (0.37     )   $ (0.29     )   $ (0.16      )   $ (0.77      )   $ (0.60     )
common share

Diluted loss
per common        (0.37     )     (0.29     )     (0.16      )     (0.77      )     (0.60     )
share (3)

                Year Ended                      Fourth           Third            Fourth

Summary
Average         December 31                     Quarter          Quarter          Quarter
Balance Sheet

                2010            2009            2010             2010             2009

Total loans     $ 958,331       $ 948,805       $ 940,614        $ 934,860        $ 905,913
and leases

Debt              323,946         271,048         341,867          328,097          279,231
securities

Total earning     1,897,573       1,830,193       1,883,539        1,863,819        1,807,898
assets

Total assets      2,439,602       2,443,068       2,370,258        2,379,397        2,431,024

Total             988,586         980,966         1,007,738        973,846          995,160
deposits

Shareholders'     233,231         244,645         235,525          233,978          250,599
equity

Common
shareholders'     212,681         182,288         218,728          215,911          197,123
equity

                Year Ended                      Fourth           Third            Fourth

Performance     December 31                     Quarter          Quarter          Quarter
Ratios

                2010            2009            2010             2010             2009

Return on
average           n/m             0.26      %     n/m              n/m              n/m
assets

Return on
average
tangible          n/m             4.18            n/m              n/m              n/m
shareholders'
equity (4)

                Year Ended                      Fourth           Third            Fourth

Credit          December 31                     Quarter          Quarter          Quarter
Quality

                2010            2009            2010             2010             2009

Total net
charge-offs     $ 34,334        $ 33,688        $ 6,783          $ 7,197          $ 8,421
(5)

Net
charge-offs
as a % of
average loans     3.60      %     3.58      %     2.87       %     3.07       %     3.71      %
and leases
outstanding
(5, 6)

Provision for   $ 28,435        $ 48,570        $ 5,129          $ 5,396          $ 10,110
credit losses

Total
consumer
credit card       n/a             19,185          n/a              n/a              4,867
managed net
losses

Total
consumer
credit card
managed net
losses as a %     n/a             11.25     %     n/a              n/a              11.88     %
of average
managed
credit card
receivables

                                                December 31      September 30     December 31

                                                2010             2010             2009

Total
nonperforming
loans, leases
and                                             $ 32,664         $ 34,556         $ 35,747
foreclosed
properties
(5)

Nonperforming
loans, leases
and
foreclosed
properties as
a % of total                                      3.48       %     3.71       %     3.98      %
loans, leases
and
foreclosed
properties
(5, 6)

Allowance for
loan and                                        $ 41,885         $ 43,581         $ 37,200
lease losses
(5)

Allowance for
loan and
lease losses
as a % of                                         4.47       %     4.69       %     4.16      %
total loans
and leases
outstanding
(5, 6)

Capital                                         December 31      September 30     December 31
Management

                                                2010             2010             2009

Risk-based
capital: (7)

Tier 1 common
equity ratio                                      8.60       %     8.45       %     7.81      %
(8)

Tier 1                                            11.24            11.16            10.40
capital ratio

Total capital                                     15.77            15.65            14.66
ratio

Tier 1
leverage                                          7.21             7.21             6.88
ratio

Tangible
equity ratio                                      6.75             6.54             6.40
(9)

Tangible
common equity                                     5.99             5.74             5.56
ratio (9)

Period-end
common shares                                     10,085,155       10,033,705       8,650,244
issued and
outstanding

                Year Ended                      Fourth           Third            Fourth

                December 31                     Quarter          Quarter          Quarter

                2010            2009            2010             2010             2009

Shares issued     1,434,911       3,632,808       51,450           688              n/a
(10)

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

Average
diluted
common shares     9,790,472       7,728,570       10,036,575       9,976,351        8,634,565
issued and
outstanding
(3)

Dividends
paid per        $ 0.04          $ 0.04          $ 0.01           $ 0.01           $ 0.01
common share

Summary End
of Period                                       December 31      September 30     December 31
Balance Sheet

                                                2010             2010             2009

Total loans                                     $ 940,440        $ 933,910        $ 900,128
and leases

Total debt                                        338,054          322,862          311,441
securities

Total earning                                     1,819,659        1,863,206        1,726,489
assets

Total assets                                      2,264,909        2,339,660        2,230,232

Total                                             1,010,430        977,322          991,611
deposits

Total
shareholders'                                     228,248          230,495          231,444
equity

Common
shareholders'                                     211,686          212,391          194,236
equity

Book value
per share of                                    $ 20.99          $ 21.17          $ 21.48
common stock
(11)

Tangible book
value per
share of                                          12.98            12.91            11.94
common stock
(4)




(1)   Excludes merger and restructuring charges and goodwill impairment.

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

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

      Return on average tangible shareholders' equity and tangible book value
      per share of common stock are non-GAAP measures. For corresponding
(4)   reconciliation of average tangible shareholders' equity to GAAP financial
      measures, see Reconciliation to GAAP Financial Measures on page 25. We
      believe the use of these non-GAAP measures provides additional clarity in
      assessing the results of the Corporation.

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

      Ratios do not include loans accounted for under the fair value option
(6)   during the period. Charge-off ratios are annualized for the quarterly
      presentation.

(7)   Reflects preliminary data for the current period risk-based capital.

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

      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
(9)   non-GAAP measures. For corresponding reconciliations of tangible
      shareholders' equity and tangible assets to GAAP financial measures, see
      Reconciliation to GAAP Financial Measures on page 25. We believe the use
      of these non-GAAP measures provide additional clarity in assessing the
      results of the Corporation.

(10)  Year ended December 31, 2009 includes approximately 1.375 billion shares
      issued in the Merrill Lynch acquisition.

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

n/a = not applicable

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.





Bank of America Corporation and Subsidiaries

Quarterly Results by Business Segment

(Dollars in
millions)

              Fourth Quarter 2010

                                                        Global        Global
                            Global Card   Home Loans                                            All
              Deposits                                  Commercial    Banking &     GWIM
                            Services(1)   & Insurance                                           Other(1)
                                                        Banking       Markets

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

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

Noninterest     3,153         1,746         6,038         998           4,436         3,587       906
expense

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

Return on
average         n/m           21.41         n/m           10.14         5.77          7.21        n/m
equity

Average -
Total loans     n/m         $ 167,156     $ 124,934     $ 194,825     $ 100,620     $ 100,586   $ 252,154
and leases

Average -
Total         $ 406,278       n/m           n/m           156,598       115,325       253,402     44,282
deposits

              Third Quarter 2010

                            Global Card                 Global        Global
                                          Home Loans                                            All
              Deposits      Services                    Commercial    Banking &     GWIM
                            (1)           & Insurance                                           Other (1)
                                                        Banking       Markets

Total
revenue,
net of        $ 3,060       $ 5,711       $ 3,744       $ 2,559       $ 7,176       $ 3,985     $ 747
interest
expense (2)

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

Noninterest     2,693         12,099        2,979         1,000         4,446         3,449       550
expense

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

Return on
average         3.17          n/m           n/m           6.14          10.94         5.65        n/m
equity

Average -
Total loans     n/m         $ 171,191     $ 127,713     $ 198,839     $ 98,847      $ 99,318    $ 238,457
and leases

Average -
Total         $ 408,009       n/m           n/m           148,534       106,865       237,878     44,586
deposits

              Fourth Quarter 2009

                            Global Card                 Global        Global
                                          Home Loans                                            All
              Deposits      Services                    Commercial    Banking &     GWIM
                            (1)           & Insurance                                           Other (1)
                                                        Banking       Markets

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

Provision
for credit      75            6,854         2,249         1,843         547           53          (1,511  )
losses

Noninterest     2,326         1,877         3,164         930           3,594         3,143       1,351
expense

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

Return on
average         10.14         n/m           n/m           n/m           11.05         12.07       n/m
equity

Average -
Total loans     n/m         $ 199,756     $ 132,326     $ 219,239     $ 99,635      $ 100,238   $ 154,038
and leases

Average -
Total         $ 416,534       n/m           n/m           143,182       108,544       223,055     78,635
deposits




     The 2010 periods are presented in accordance with new consolidation
(1)  guidance. The 2009 period for Global Card Services is presented on a
     managed basis with a corresponding offset in All Other (See Reconciliation
     - Managed to GAAP on page 26).

     Fully taxable-equivalent (FTE) basis. FTE basis is a performance measure
(2)  used by management in operating the business that management believes
     provides investors with a more accurate picture of the interest margin for
     comparative purposes.

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.





Bank of America Corporation and Subsidiaries

Year-to-Date Results by Business Segment

(Dollars in
millions)

              Year Ended December 31, 2010

                                                      Global        Global
                          Global Card   Home Loans                                            All
              Deposits                                Commercial    Banking &     GWIM
                          Services(1)   & Insurance                                           Other(1)
                                                      Banking       Markets

Total
revenue,
net of        $ 13,181    $ 25,621      $ 10,647      $ 10,903      $ 28,498      $ 16,671    $ 5,869
interest
expense (2)

Provision
for credit      201         12,648        8,490         1,971         (155    )     646         4,634
losses

Noninterest     10,831      17,353        15,163        3,874         18,038        13,598      4,251
expense

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

Return on
average         5.58        n/m           n/m           7.64          12.01         7.44        n/m
equity

Average -
Total loans     n/m       $ 176,232     $ 129,236     $ 203,339     $ 98,604      $ 99,491    $ 250,956
and leases

Average -
Total         $ 411,001     n/m           n/m           148,565       109,792       236,350     55,769
deposits

              Year Ended December 31, 2009

                          Global Card                 Global        Global
                                        Home Loans                                            All
              Deposits    Services                    Commercial    Banking &     GWIM
                          (1)           & Insurance                                           Other (1)
                                                      Banking       Markets

Total
revenue,
net of        $ 13,890    $ 29,046      $ 16,903      $ 11,141      $ 32,623      $ 16,137    $ 1,204
interest
expense (2)

Provision
for credit      343         29,553        11,244        7,768         1,998         1,061       (3,397  )
losses

Noninterest     9,501       7,726         11,705        3,833         15,921        12,397      5,630
expense

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

Return on
average         10.92       n/m           n/m           n/m           20.32         10.35       n/m
equity

Average -
Total loans     n/m       $ 211,981     $ 130,519     $ 229,102     $ 110,811     $ 103,384   $ 162,302
and leases

Average -
Total         $ 406,823     n/m           n/m           129,832       104,868       225,979     88,736
deposits




     The 2010 period is presented in accordance with new consolidation guidance.
(1)  The 2009 period for Global Card Services is presented on a managed basis
     with a corresponding offset in All Other (See Reconciliation - Managed to
     GAAP on page 26).

     FTE basis. FTE basis is a performance measure used by management in
(2)  operating the business that management believes provides investors with a
     more accurate picture of the interest margin for comparative purposes.

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.





Bank of America Corporation and Subsidiaries

Supplemental Financial Data

(Dollars in
millions, except
per share
information)

                     Year Ended                  Fourth        Third         Fourth

Fully
taxable-equivalent   December 31                 Quarter       Quarter       Quarter
basis data(1)

                     2010          2009          2010          2010          2009

Net interest         $ 52,693      $ 48,410      $ 12,709      $ 12,717      $ 11,896
income

Total revenue, net
of interest            111,390       120,944       22,668        26,982        25,413
expense

Net interest yield     2.78    %     2.65    %     2.69    %     2.72    %     2.62    %
(2)

Efficiency ratio       74.61         55.16         92.04         100.87        64.47

Other Data                                       December 31   September     December 31
                                                               30

                                                 2010          2010          2009

Full-time
equivalent                                         286,951       285,822       283,055
employees

Number of banking                                  5,856         5,879         6,011
centers - U.S.

Number of branded                                  17,931        17,929        18,262
ATMs - U.S.




     FTE basis is a non-GAAP measure. FTE basis is a performance measure used by
     management in operating the business that management believes provides
(1)  investors with a more accurate picture of the interest margin for
     comparative purposes. (See Reconciliation to GAAP Financial Measures on
     page 25).

     Calculation includes fees earned on overnight deposits placed with the
(2)  Federal Reserve of $368 million and $379 million for the years ended
     December 31, 2010 and 2009; $63 million and $107 million for the fourth and
     third quarters of 2010, and $130 million for the fourth quarter of 2009.




Performance ratios, excluding goodwill
impairment charges(1)

                                           Year Ended      Fourth      Third

                                           December 31     Quarter     Quarter

                                           2010            2010        2010

Per common share information

Earnings                                   $ 0.87          $ 0.04      $ 0.27

Diluted earnings                             0.86            0.04        0.27

Efficiency ratio (2)                         63.48 %         83.22 %     62.33 %

Return on average assets                     0.42            0.13        0.52

Return on average common shareholders'       4.14            0.79        5.06
equity

Return on average tangible common            7.03            1.27        8.67
shareholders' equity (3)

Return on average tangible shareholders'     7.11            1.96        8.54
equity (3)




     Total noninterest expense, excluding goodwill impairment charges, net
     income, excluding goodwill impairment charges and net income applicable to
(1)  common shareholders, excluding goodwill impairment charges are non-GAAP
     measures. We believe the use of these non-GAAP measures provides additional
     clarity in assessing the results of the Corporation. (See Reconciliation to
     GAAP Financial Measures on page 25).

     Fully taxable-equivalent basis is a non-GAAP measure. Fully
     taxable-equivalent basis is a performance measure used by management in
(2)  operating the business that management believes provides investors with a
     more accurate picture of the interest margin for comparative purposes. (See
     Reconciliation to GAAP Financial Measures on page 25).

     Tangible equity ratios are non-GAAP measures. For corresponding
     reconciliations of average tangible common shareholders' equity and
(3)  tangible shareholders' equity to GAAP financial measures, see
     Reconciliation to GAAP Financial Measures on page 25. 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.




Bank of America Corporation and Subsidiaries

Reconciliation to GAAP Financial Measures

(Dollars in millions, shares in thousands)

The Corporation evaluates its business based upon a FTE basis which is a
non-GAAP measure. Total revenue, net of interest expense, includes net interest
income on a FTE basis and noninterest income. The Corporation views related
ratios and analyses (i.e., efficiency ratios and net interest yield) on a FTE
basis. The adjustment of net interest income to a FTE basis results in a
corresponding increase in income tax expense. The Corporation also evaluates its
business based upon ratios that utilize tangible equity which is a non-GAAP
measure. Return on average tangible common shareholders' equity measures the
Corporation's earnings contribution as a percentage of common shareholders'
equity plus any Common Equivalent Securities less goodwill and intangible assets
(excluding mortgage servicing rights), net of related deferred tax liabilities.
Return on average tangible shareholders' equity measures the Corporation's
earnings contribution as a percentage of average shareholders' equity less
goodwill and intangible assets (excluding mortgage servicing rights), net of
related deferred tax liabilities. The tangible common equity ratio represents
common shareholders' equity plus any Common Equivalent Securities less goodwill
and intangible assets (excluding mortgage servicing rights), net of related
deferred tax liabilities divided by total assets less goodwill and intangible
assets (excluding mortgage servicing rights), net of related deferred tax
liabilities. The tangible equity ratio represents total shareholders' equity
less goodwill and intangible assets (excluding mortgage servicing rights), net
of related deferred tax liabilities divided by total assets less goodwill and
intangible assets (excluding mortgage servicing rights), net of related deferred
tax liabilities. Tangible book value per share of common stock represents ending
common shareholders' equity less goodwill and intangible assets (excluding
mortgage servicing rights), net of related deferred tax liabilities divided by
ending common shares outstanding plus the number of common shares issued upon
conversion of common equivalent shares. These measures are used to evaluate the
Corporation's use of equity (i.e., capital). In addition, profitability,
relationship, and investment models all use return on average tangible
shareholders' equity as key measures to support our overall growth goals. Also,
the efficiency ratio measures the costs expended to generate a dollar of
revenue. In addition, earnings and diluted earnings per common share, the
efficiency ratio, return on average assets, return on common shareholders'
equity, return on average tangible common shareholders' equity and return on
average tangible shareholders' equity have been calculated excluding the impact
of the goodwill impairment charges taken during 2010. See below reconciliations
of total noninterest expense, net income (loss) and net income (loss) applicable
to common shareholders excluding the goodwill impairment charges to GAAP
financial measures. We believe the use of these non-GAAP measures provides
additional clarity in assessing the results of the Corporation.

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





                     Year Ended                       Fourth           Third            Fourth

                     December 31                      Quarter          Quarter          Quarter

                     2010             2009            2010             2010             2009

Reconciliation of net interest income to net interest income FTE basis

Net interest         $ 51,523         $ 47,109        $ 12,439         $ 12,435         $ 11,559
income

Fully
taxable-equivalent     1,170            1,301           270              282              337
adjustment

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

Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense
FTE basis

Total revenue, net
of interest          $ 110,220        $ 119,643       $ 22,398         $ 26,700         $ 25,076
expense

Fully
taxable-equivalent     1,170            1,301           270              282              337
adjustment

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

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

Total noninterest    $ 83,108         $ 66,713        $ 20,864         $ 27,216         $ 16,385
expense

Goodwill               12,400           -               2,000            10,400           -
impairment

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

Reconciliation of income tax expense (benefit) to income tax expense (benefit) FTE basis

Income tax expense   $ 915            $ (1,916    )   $ (2,351     )   $ 1,387          $ (1,225    )
(benefit)

Fully
taxable-equivalent     1,170            1,301           270              282              337
adjustment

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

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

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

Goodwill               12,400           -               2,000            10,400           -
impairment

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

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

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

Goodwill               12,400           -               2,000            10,400           -
impairment

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

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

Common
shareholders'        $ 212,681        $ 182,288       $ 218,728        $ 215,911        $ 197,123
equity

Common Equivalent      2,900            1,213           -                -                4,811
Securities

Goodwill               (82,596    )     (86,034   )     (75,584    )     (82,484    )     (86,053   )

Intangible assets      (10,985    )     (12,220   )     (10,211    )     (10,629    )     (12,556   )
(excluding MSRs)

Related deferred       3,306            3,831           3,121            3,214            3,712
tax liabilities

Tangible common
shareholders'        $ 125,306        $ 89,078        $ 136,054        $ 126,012        $ 107,037
equity

Reconciliation of average shareholders' equity to average tangible shareholders' equity

Shareholders'        $ 233,231        $ 244,645       $ 235,525        $ 233,978        $ 250,599
equity

Goodwill               (82,596    )     (86,034   )     (75,584    )     (82,484    )     (86,053   )

Intangible assets      (10,985    )     (12,220   )     (10,211    )     (10,629    )     (12,556   )
(excluding MSRs)

Related deferred       3,306            3,831           3,121            3,214            3,712
tax liabilities

Tangible
shareholders'        $ 142,956        $ 150,222       $ 152,851        $ 144,079        $ 155,702
equity

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

Common
shareholders'        $ 211,686        $ 194,236       $ 211,686        $ 212,391        $ 194,236
equity

Common Equivalent      -                19,244          -                -                19,244
Securities

Goodwill               (73,861    )     (86,314   )     (73,861    )     (75,602    )     (86,314   )

Intangible assets      (9,923     )     (12,026   )     (9,923     )     (10,402    )     (12,026   )
(excluding MSRs)

Related deferred       3,036            3,498           3,036            3,123            3,498
tax liabilities

Tangible common
shareholders'        $ 130,938        $ 118,638       $ 130,938        $ 129,510        $ 118,638
equity

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

Shareholders'        $ 228,248        $ 231,444       $ 228,248        $ 230,495        $ 231,444
equity

Goodwill               (73,861    )     (86,314   )     (73,861    )     (75,602    )     (86,314   )

Intangible assets      (9,923     )     (12,026   )     (9,923     )     (10,402    )     (12,026   )
(excluding MSRs)

Related deferred       3,036            3,498           3,036            3,123            3,498
tax liabilities

Tangible
shareholders'        $ 147,500        $ 136,602       $ 147,500        $ 147,614        $ 136,602
equity

Reconciliation of period end assets to period end tangible assets

Assets               $ 2,264,909      $ 2,230,232     $ 2,264,909      $ 2,339,660      $ 2,230,232

Goodwill               (73,861    )     (86,314   )     (73,861    )     (75,602    )     (86,314   )

Intangible assets      (9,923     )     (12,026   )     (9,923     )     (10,402    )     (12,026   )
(excluding MSRs)

Related deferred       3,036            3,498           3,036            3,123            3,498
tax liabilities

Tangible assets      $ 2,184,161      $ 2,135,390     $ 2,184,161      $ 2,256,779      $ 2,135,390

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

Common shares          10,085,155       8,650,244       10,085,155       10,033,705       8,650,244
outstanding

Assumed conversion
of common              -                1,286,000       -                -                1,286,000
equivalent shares
(1)

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

(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.




Bank of America Corporation and Subsidiaries

Reconciliation - Managed to GAAP

(Dollars in millions)

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

The performance of the managed portfolio is important in understanding Global
Card Services results as it demonstrates the results of the entire portfolio
serviced by the business. Securitized loans continue to be serviced by the
business and are subject to the same underwriting standards and ongoing
monitoring as held loans. In addition, excess servicing income is exposed to
similar credit risk and repricing of interest rates as held loans. In the 2009
periods, Global Card Services managed income statement line items differed from
a held basis reported as follows:

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

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

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





Global Card
Services

                Year Ended December 31, 2009                 Fourth Quarter 2009

                Managed       Securitization   Held          Managed       Securitization   Held

                Basis (1)     Impact (2)       Basis         Basis (1)     Impact (2)       Basis

Net interest    $ 19,972      $ (9,250  )      $ 10,722      $ 4,878       $ (2,226  )      $ 2,652
income (3)

Noninterest
income:

Card income       8,553         (2,034  )        6,519         2,093         (679    )        1,414

All other         521           (115    )        406           115           (21     )        94
income

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

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

Provision for     29,553        (11,399 )        18,154        6,854         (2,926  )        3,928
credit losses

Noninterest       7,726         -                7,726         1,877         -                1,877
expense

Loss before       (8,233  )     -                (8,233  )     (1,645  )     -                (1,645  )
income taxes

Income tax        (2,972  )     -                (2,972  )     (651    )     -                (651    )
benefit (3)

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

Average -
total loans     $ 211,981     $ (98,453 )      $ 113,528     $ 199,756     $ (91,705 )      $ 108,051
and leases

All Other

                Year Ended December 31, 2009                 Fourth Quarter 2009

                Reported      Securitization   As            Reported      Securitization   As
                                                             Basis(4)
                Basis(4)      Offset(2)        Adjusted                    Offset(2)        Adjusted

Net interest    $ (7,221  )   $ 9,250          $ 2,029       $ (1,640  )   $ 2,226          $ 586
income (3)

Noninterest
income:

Card income       (896    )     2,034            1,138         (432    )     679              247
(loss)

Equity
investment        10,589        -                10,589        2,163         -                2,163
income

Gains on
sales of debt     4,437         -                4,437         852           -                852
securities

All other         (5,705  )     115              (5,590  )     (2,279  )     21               (2,258  )
loss

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

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

Provision for     (3,397  )     11,399           8,002         (1,511  )     2,926            1,415
credit losses

Merger and
restructuring     2,721         -                2,721         533           -                533
charges

All other
noninterest       2,909         -                2,909         818           -                818
expense

Loss before       (1,029  )     -                (1,029  )     (1,176  )     -                (1,176  )
income taxes

Income tax        (2,357  )     -                (2,357  )     (427    )     -                (427    )
benefit (3)

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

Average -
total loans     $ 162,302     $ 98,453         $ 260,755     $ 154,038     $ 91,705         $ 245,743
and leases




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

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

(3)  FTE basis

(4)  Provision for credit losses represents provision for credit losses in 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.




    Source: Bank of America Corporation