Bank of America Reports Third-Quarter Financial Results

Net Loss of $7.3 Billion, or $0.77 per Diluted Share, Includes Goodwill Impairment Charge of $10.4 Billion

Excluding Goodwill Impairment Charge, Net Income Was $3.1 Billion, or $0.27 per Diluted Share1

Credit Costs Decline for Fifth Consecutive Quarter

Tier 1 Capital Ratios Continue to Strengthen

Strong Asset Management Fees in Wealth Management Business

Investment Bank Remains No. 2 in Global Investment Banking Fees

CHARLOTTE, N.C.--(BUSINESS WIRE)-- Bank of America Corporation today reported a net loss of $7.3 billion, or $0.77 per diluted share, in the third quarter of 2010, including a non-cash, non-tax deductible goodwill impairment charge of $10.4 billion. Excluding this charge, net income was $3.1 billion, or $0.27 per diluted share, compared with a net loss of $1.0 billion, or $0.26 per diluted share, in the third quarter of 2009.

About the Goodwill Impairment Charge

As previously announced, the goodwill impairment charge is a non-cash, non-tax deductible charge applicable to the Global Card Services segment. The goodwill impairment charge does not impact regulatory capital or tangible equity ratios or liquidity, and has no impact on the company's ability to serve its customers and clients around the world. The charge results from the limits to be placed on debit interchange fees under the financial reform legislation enacted in July 2010, which will reduce future revenues in the Global Card Services business.

1 Excluding the goodwill impairment charge from certain financial measures represents a non-GAAP measure. For reconciliation to GAAP measures, refer to page 21 of this press release.

New Consumer Bank Strategy

As a result of the legislation and other changes in the environment, the company is changing the way its consumer bank does business, focusing on a relationship enhancement strategy designed to incent customers to bring more business and to make pricing more upfront and transparent. This change moves away from a dependence on penalty fees, which the industry had adopted over the years, and provides the customer with a better banking experience. These changes are expected to result in additional revenue.

Bank of America has begun to introduce new customer solutions designed to meet these goals. In August, the company began offering eBanking, which allows customers who primarily use such alternative channels as online banking and ATMs, to be rewarded with better pricing. The bank plans to begin testing new offerings in December that will provide customers choices on how to pay for their banking services and reward them for using certain products or bringing more balances. The company is also considering other new products in the payments area that would meet the evolving needs of specific customer groups with testing scheduled to begin next year.

Operating Results

Third-quarter 2010 results compared to a year ago benefited from lower credit costs, higher net interest income due in part to the adoption of new consolidation guidance on January 1, 2010, and increases in other income, mortgage banking income and card income. These improvements were partially offset by lower service charges, lower trading account profits and a decrease in insurance income.

"Our results this quarter demonstrate continued traction with each customer group - consumers, businesses, and institutional investors," said President and Chief Executive Officer Brian Moynihan. "Our strategy is to leave nothing to chance in our goal of doing everything we can for each of our customers.

"We are adapting to the regulatory environment, credit quality continues to improve, and we are managing risk and building capital. We are realistic about the near-term challenges, and optimistic about the long-term opportunity."

Third-Quarter Business Highlights

    --  Bank of America continued to leverage its global franchise. Through the
        third quarter of 2010, approximately 200,000 loan and deposit products
        have been sold to Bank of America Merrill Lynch customers. In addition,
        referrals between Global Wealth and Investment Management and the
        company's Global Commercial Bank and Global Banking and Markets
        businesses totaled approximately 3,500 in the third quarter and
        approximately 10,700 year to date. The company's retirement business
        continues to win more business.
    --  Global Wealth and Investment Management reported strong growth in client
        assets driven by higher market prices and increased inflows into
        higher-yielding products. These included a $14 billion increase in
        deposits and a $6 billion increase in long-term assets under management.
        Global Wealth and Investment Management increased the number of its
        client-facing associates for the fifth consecutive quarter.
    --  Bank of America Merrill Lynch ranked No. 2 in global investment banking
        revenues with a 7 percent market share, according to Dealogic's
        third-quarter 2010 league tables. The company has No. 1 positions in
        both global and U.S. rankings in leveraged loans, syndicated loans,
        mortgage- and asset-backed securities and high-yield corporate debt.
    --  Bank of America Merrill Lynch participated in five of the top 10 merger
        and acquisition transactions in the third quarter. The company had the
        lead role in the largest U.S. equity deal this year (Metlife) and was
        the global coordinator for the largest equity deal in history
        (Petrobras).
    --  Bank of America continued to support the economic recovery by extending
        approximately $173 billion in credit in the third quarter of 2010,
        according to preliminary data. Credit extensions included $72 billion in
        first mortgages, $80 billion in commercial non-real estate, $11 billion
        in commercial real estate, $3 billion in domestic consumer and small
        business card, $2 billion in home equity products and $5 billion in
        other consumer credit. Commercial credit extensions include a
        significant number of credit renewals.
    --  The $72 billion in first mortgages helped nearly 322,000 people either
        purchase homes or refinance existing mortgages. This included
        approximately 17,000 first-time homebuyer credit-qualified mortgages and
        more than 103,000 mortgages to low- and moderate-income borrowers.
        Approximately 36 percent of funded first mortgages were for home
        purchases and 64 percent were refinances.
    --  Since the start of 2008, Bank of America and previously Countrywide have
        completed nearly 700,000 loan modifications with customers. During the
        third quarter, nearly 50,000 loan modifications were completed,
        including 13,000 consumers who converted from trial modifications under
        the U.S. government's Making Home Affordable Program.
    --  Recognizing that small businesses are an important engine for economic
        activity, Bank of America recently announced plans to hire more than
        1,000 small business bankers through early 2012 to provide personalized
        deposit, credit and cash management solutions to small business owners.
    --  Overall consumer customer satisfaction with Bank of America continued to
        improve in the third quarter of 2010 as a result of a continued focus on
        customer service, including several new programs designed to enhance
        responsiveness to customer questions and concerns.
    --  Average retail deposit balances rose 2 percent from the year-ago period
        to $633 billion, excluding the reduction associated with the completed
        sale of First Republic Bank during the quarter. Strong growth in Bank of
        America Merrill Lynch Global Wealth Management drove the increase.

Third-Quarter 2010 Financial Summary

Revenue and Expense


                           Three Months Ended

(Dollars in millions)      September 30, 2010  June 30, 2010  September 30, 2009

Net interest income, FTE   $ 12,717            $ 13,197       $ 11,753
basis1

Noninterest income           14,265              16,253         14,612

Total revenue net of
interest expense, FTE        26,982              29,450         26,365
basis

Noninterest expense2       $ 16,816            $ 17,253       $ 16,306

Goodwill impairment charge   10,400              -              -

Efficiency ratio             100.87%             58.58%         61.84%

Efficiency ratio,
excluding goodwill           62.33%              n/a            n/a
impairment charge



1 FTE basis is a non-GAAP measure. For reconciliation to GAAP measures, refer to page 21 of this press release. In the three months ended September 30, 2009, net interest income on a managed FTE basis was $14.3 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.

2Excludes goodwill impairment charge of $10.4 billion.

n/a = not applicable

Revenue, net of interest expense, on a fully taxable-equivalent (FTE) basis rose 2 percent from the year-ago period. Net interest income on an FTE basis increased 8 percent from a year earlier, reflecting the impact of the adoption of new consolidation guidance, effective January 1, 2010, which added assets of approximately $100 billion to the balance sheet as of that date. The change, while having no impact on net income, primarily increased net interest income and card income offset by increased provision for credit losses.

Compared to the second quarter of 2010, revenue, net of interest expense, on an FTE basis was down 8 percent. Net interest income on an FTE basis was down 4 percent from the second quarter of 2010, reflecting lower loan levels and the impact of the extended low rate environment. The net interest yield widened 11 basis points from the year-ago quarter due primarily to the higher-yielding loans included on our balance sheet related to the adoption of the new consolidation guidance, partially offset by the impact of spread compression. Compared to the second quarter of 2010, the net interest yield decreased 5 basis points due mainly to a shift in the mix of earning assets as higher-yielding assets ran off and were replaced with lower-yielding assets available in the lower rate environment.

Noninterest income declined 2 percent from the year-ago quarter due primarily to lower service charges, reduced trading account profits and lower gains on sales of debt securities. Additionally, insurance income was lower compared to the same period a year ago as a result of a $592 million reserve related to payment protection insurance claims in the U.K. These factors were partially offset by year-over-year improvements in other income driven largely by lower losses of $190 million primarily related to structured liabilities, compared to losses of $1.8 billion in the year-ago period, higher mortgage banking income, and increases in card income.

Noninterest expense was up 67 percent from the year-ago quarter, primarily reflecting the goodwill impairment charge. Excluding the goodwill impairment charge, noninterest expense was up 3 percent from a year ago due primarily to higher personnel costs, increased professional fees and litigation costs. Pretax merger and restructuring charges declined $173 million from a year earlier to $421 million.

Credit Quality


                   Three Months Ended

(Dollars in        September 30, 2010  June 30, 2010     September 30, 2009
millions)

Provision for      $ 5,396             $ 8,105           $ 11,705
credit losses

Net charge-offs      7,197               9,557             9,624

Net charge-off       3.07%               3.98%             4.13%
ratio1

Total managed net    n/a                 n/a             $ 12,932
losses2

Total managed net    n/a                 n/a               5.03%
loss ratio1,2

                   At September 30,    At June 30, 2010  At September 30, 2009
                   2010

Nonperforming
loans, leases and  $ 34,556            $ 35,598          $ 33,825
foreclosed
properties

Nonperforming
loans, leases and    3.71%               3.73%             3.72%
foreclosed
properties ratio3

Allowance for loan $ 43,581            $ 45,255          $ 35,832
and lease losses

Allowance for loan
and lease losses     4.69%               4.75%             3.95%
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 and other 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 quarter, with net charge-offs continuing to decline in almost all portfolios. Credit costs, while still at elevated levels, fell for the fifth consecutive quarter. Additionally, delinquencies accruing past due 30 days or more, excluding FHA-insured loans, declined for the sixth consecutive quarter, and reservable criticized utilized levels decreased for the fourth consecutive quarter.

Net charge-offs were $2.4 billion lower than the second quarter of 2010, reflecting improvement in the consumer and commercial portfolios. The decrease was primarily driven by the impact of continued improvement in delinquencies in both the consumer credit card and real estate portfolios. The allowance to annualized net charge-off coverage ratio improved in the third quarter to 1.53 times, compared with 1.18 times in the second quarter of 2010 and 0.94 times in the third quarter of 2009. Excluding purchased credit-impaired loans, the allowance to annualized net charge-off coverage ratio was 1.34, 1.05 and 0.86 times, respectively. Nonperforming loans, leases and foreclosed properties declined to $34.6 billion, compared with $35.6 billion at June 30, 2010 and $33.8 billion a year ago.

The provision for credit losses was $5.4 billion, $2.7 billion lower than the second quarter and $6.3 billion lower than the same period a year earlier. The provision was $1.8 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 $1.45 billion reduction in the second quarter and an addition of $2.1 billion a year earlier.

The reserve reduction in the third quarter was primarily due to improved delinquencies, collections and bankruptcies in the domestic credit card, small business and consumer lending businesses. Additionally, improving portfolio trends in consumer real estate products and reductions across the core commercial portfolio, reflecting stabilization of borrower credit profiles and economic conditions, contributed to the reserve reduction. These were partially offset by reserve additions for certain purchased credit-impaired consumer portfolios obtained through acquisitions.

Capital and Liquidity Management


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

Total
shareholders'     $ 230,495              $ 233,174         $ 257,683
equity

Tier 1 common       8.45%                  8.01%             7.25%
ratio

Tier 1 capital      11.16%                 10.67%            12.46%
ratio

Total capital       15.65%                 14.77%            16.69%
ratio

Tangible common     5.77%                  5.36%             4.82%
equity ratio1

Tangible book     $ 12.91                $ 12.14           $ 12.00
value per share1



1Tangible 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 21 of this press release.

Capital ratios strengthened from the second quarter of 2010 due to retained earnings and the sale of First Republic Bank. Additionally, the total capital ratio and tangible common equity ratio benefited from the mark-to-market after-tax adjustment in equity of $6.2 billion on the company's investment in China Construction Bank that is within a year of the expiration of sales restrictions. The company's liquidity position strengthened during the quarter as customers continued to reduce debt. The company's total global excess liquidity sources rose more than $30 billion from the second quarter of 2010 to $324 billion. At September 30, 2010, the company's time-to-required funding was 23 months.

During the quarter, a cash dividend of $0.01 per common share was paid, and the company declared $348 million in preferred dividends. Period-end common shares issued and outstanding were 10.03 billion for the second and third quarters of 2010 and 8.65 billion for the third quarter of 2009. The increase in outstanding shares year over year was driven primarily by the company's capital-raising initiative in the fourth quarter of 2009 and the related conversion of common equivalent shares into common stock in the first quarter of 2010.

Business Segment Results

Deposits


                    Three Months Ended

(Dollars in         September 30, 2010  June 30, 2010     September 30, 2009
millions)

Total revenue, net
of interest         $ 3,060             $ 3,604           $ 3,632
expense, FTE basis

Provision for         62                  61                93
credit losses

Noninterest           2,693               2,490             2,286
expense

Net income            195                 668               814

Efficiency ratio,     88.03%              69.08%            62.93%
FTE basis

Return on average     3.17%               11.07%            13.63%
equity

Average deposits    $ 408,009           $ 415,669         $ 418,449

                    At September 30,    At June 30, 2010  At September 30, 2009
                    2010

Period-end          $ 406,340           $ 411,679         $ 416,951
deposits



Deposits net income of $195 million declined $619 million from the year-ago period due to decreases in revenue and higher noninterest expense. The revenue decline was driven by the impact of Regulation E, which was effective beginning this quarter, and related overdraft policy changes implemented beginning in the fourth quarter of 2009. This was partially offset by disciplined pricing and a customer shift to more liquid products, which led to increased net interest income.

Noninterest expense increased 18 percent from a year ago as a higher proportion of costs associated with banking center sales and service efforts were aligned to Deposits from the other consumer businesses.

Average deposits declined 2 percent from a year ago driven by the decline in higher-yielding former Countrywide deposits and the transfer of certain deposits to other client-managed businesses, partially offset by organic growth.

Global Card Services


                    Three Months Ended

(Dollars in         September 30, 2010  June 30, 2010     September 30, 2009
millions)

Total revenue, net
of interest         $ 5,711             $ 6,861           $ 7,250
expense, FTE
basis1

Provision for         3,177               3,795             6,823
credit losses1

Noninterest           1,699               1,776             1,915
expense2

Goodwill              10,400              -                 -
impairment charge

Net income (loss)     (9,871)             820               (955)

Efficiency            n/m                 25.86%            26.40%
ratio,FTE basis

Return on average     n/m                 8.12%             n/m
equity

Average loans1      $ 171,191           $ 177,571         $ 208,650

                    At September 30,    At June 30, 2010  At September 30, 2009
                    2010

Period-end loans1   $ 168,845           $ 173,021         $ 202,860



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 21 of this press release.

2Excludes goodwill impairment charge of $10.4 billion.

n/m = not meaningful

Global Card Services reported a net loss of $9.9 billion due to the $10.4 billion goodwill impairment charge. Excluding this charge, Global Card Services would have reported net income of $529 million, compared to a net loss of $955 million a year ago.

Revenue decreased $1.5 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 $592 million reserve related to future payment protection insurance claims in the U.K.

Provision for credit losses decreased $3.6 billion from a year ago driven by $3.2 billion lower charge-offs and reserve reductions due to lower delinquencies and decreasing bankruptcies as a result of the improved economic environment.

Noninterest expense increased compared to a year ago due to the goodwill impairment charge. Excluding this impairment charge, noninterest expense decreased 11 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.

Home Loans and Insurance


                    Three Months Ended

(Dollars in         September 30, 2010  June 30, 2010     September 30, 2009
millions)

Total revenue, net
of interest         $ 3,744             $ 2,795           $ 3,413
expense, FTE basis

Provision for         1,302               2,390             2,897
credit losses

Noninterest           2,979               2,817             3,049
expense

Net income (loss)     (344)               (1,534)           (1,635)

Efficiency ratio,     79.57%              100.78%           89.33%
FTE basis

Average loans       $ 127,713           $ 130,664         $ 132,599

                    At September 30,    At June 30, 2010  At September 30, 2009
                    2010

Period-end loans    $ 127,701           $ 129,798         $ 134,255



The net loss of $344 million in Home Loans and Insurance decreased $1.3 billion from the year-ago period. Revenue increased 10 percent largely due to higher mortgage banking income primarily driven by improved mortgage servicing rights results, net of hedges, and higher production income driven by wider production margins. These improvements were partially offset by a $417 million increase in representations and warranties expense.

Provision for credit losses decreased $1.6 billion driven primarily by improving portfolio trends, which led to lower net charge-offs and reserve reductions compared to the reserve increases in the prior year. In addition, provision for credit losses benefited from a lower reserve addition in the Countrywide purchased credit-impaired home equity portfolio.

Noninterest expense was essentially flat from a year ago as lower production and insurance expenses were offset by higher costs related to the increase in default management staff and other loss mitigation activities.

Global Commercial Banking


                          Three Months Ended

(Dollars in millions)     September 30, 2010  June 30, 2010  September 30, 2009

Total revenue, net of
interest expense, FTE     $ 2,559             $ 2,778        $ 2,772
basis

Provision for credit        554                 623            2,057
losses

Noninterest expense         1,000               909            959

Net income (loss)           637                 790            (160)

Efficiency ratio, FTE       39.06%              32.73%         34.61%
basis

Return on average equity    6.14%               7.55%          n/m

Average loans and leases  $ 198,839           $ 206,111      $ 225,994

Average deposits            148,534             145,427        131,548



n/m = not meaningful

Global Commercial Banking net income increased $797 million from the year-ago loss of $160 million due to lower credit costs.

Revenue decreased $213 million from a year ago primarily due to a lower residual net interest income allocation related to asset and liability management activities and, to a lesser extent, declines in net interest income from lower average loan balances. These were partially offset by improved loan spreads on new, renewed and amended facilities. In addition, revenue was positively impacted by strong deposit growth as clients remained very liquid.

The provision for credit losses decreased $1.5 billion from a year ago driven by reserve reductions and lower net charge-offs in the commercial real estate portfolio, reflecting stabilization of appraised values primarily in the homebuilder portfolio and fewer single name charge-offs, combined with lower net charge-offs in the commercial domestic portfolio, reflecting improved borrower credit profiles.

Average loan and lease balances decreased $27.2 billion from a year ago due to client deleveraging and low new loan demand. Average deposit balances continued to grow, increasing by $17.0 billion, as clients managed to new liquidity levels.

Global Banking and Markets


                          Three Months Ended

(Dollars in millions)     September 30, 2010  June 30, 2010  September 30, 2009

Total revenue, net of
interest expense, FTE     $ 7,176             $ 6,005        $ 7,674
basis

Provision for credit        (157)               (133)          538
losses

Noninterest expense         4,446               4,788          3,653

Net income                  1,448               928            2,242

Efficiency ratio, FTE       61.96%              79.73%         47.60%
basis

Return on average equity    10.94%              7.00%          17.49%

Total average assets      $ 745,097           $ 771,267      $ 754,295

Total average deposits      106,865             112,959        104,228



Global Banking and Markets net income decreased $794 million from strong year-ago levels, driven by reduced revenues, increased noninterest expense and higher income tax expense partially offset by lower credit costs.

Revenue decreased 7 percent from the year-ago period due to lower sales and trading revenues, partially offset by higher Investment Banking fees and revenues from Corporate Banking. Compared to the second quarter, revenue rose 20 percent due to an improved trading environment, primarily in Credit sales and trading.

Provision for credit losses declined $695 million from a year ago primarily driven by lower net charge-offs and reserve reductions in the corporate portfolio, reflecting improvement in borrower credit profiles and reduction in reservable criticized levels.

Noninterest expense increased $793 million driven by higher compensation costs, which reflects the year-over-year impact of changing compensation last year to deliver a greater portion of incentives over time and increases in other operating costs. Additionally, the most recent period was impacted by a $388 million charge related to the U.K. tax rate change, impacting the carrying value of the deferred tax asset.

Fixed Income, Currency and Commodities sales and trading revenue fell to $3.5 billion, compared to $4.0 billion a year ago, due to the relative changes in spreads over last year, mainly in Credit. Compared to the second quarter of 2010, Fixed Income, Currency and Commodities sales and trading revenue rose $1.2 billion due to spread tightening, increased customer activity and eased concerns from the European sovereign debt crisis.

Equities sales and trading revenue declined to $1.0 billion from $1.3 billion a year ago, driven primarily by a decrease in volumes as well as reductions in equity derivatives revenue. Compared to the second quarter of 2010, equities revenue rose $122 million primarily due to the rebound from adverse market conditions in the prior period.

Global Wealth and Investment Management


                    Three Months Ended

(Dollars in         September 30, 2010  June 30, 2010     September 30, 2009
millions)

Total revenue, net
of interest         $ 4,072             $ 4,331           $ 3,872
expense, FTE basis

Provision for         128                 121               515
credit losses

Noninterest           3,449               3,369             3,005
expense

Net income            313                 356               234

Efficiency ratio,     84.70%              77.78%            77.64%
FTE basis

Return on average     5.19%               6.07%             4.94%
equity

Average loans       $ 99,318            $ 99,007          $ 101,155

Average deposits      237,878             229,272           214,992

(in billions)       At September 30,    At June 30, 2010  At September 30, 2009
                    2010

Assets under        $ 624.1             $ 603.3           $ 739.8
management1

Total net client      2,169.1             2,091.7           2,232.3
balances1,2



1Assets under management (AUM) and total net client assets include the Columbia Management long-term asset management business through the date of sale on May 1, 2010.

2Net client balances are defined as assets under management, client brokerage assets, assets in custody, client deposits and loans.

Global Wealth and Investment Management net income increased $79 million from a year earlier driven by lower credit costs and higher noninterest income, partially offset by higher noninterest expense.

Revenue increased $200 million from a year earlier to $4.1 billion driven by higher asset management fees and the absence of support for certain cash funds in the prior year, partially offset by lower brokerage income.

The provision for credit losses decreased $387 million from a year ago to $128 million driven by lower reserve additions and 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, personnel costs, higher litigation and support costs.

All Other

All Other reported net income of $323 million, compared to a $1.5 billion net loss a year ago, as higher revenue reflected an increase in net interest income and negative fair value adjustments of $190 million related to structured liabilities, compared to negative fair value adjustments of $1.8 billion in the year-ago period. This was partially offset by an increase in the provision for credit losses.

The provision for credit losses increased from a year ago primarily due to the impact of the new consolidation guidance as the prior year period included a securitization offset to present Global Card Services on a managed basis. This was partially offset by reserve reductions to the residential mortgage portfolio due to improving portfolio trends as compared to reserve additions in the prior year. In addition, the provision benefited from a lower reserve addition in the Countrywide purchased credit-impaired discontinued real estate portfolio.

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 third-quarter 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 "anticipate," "target," "expect," "estimate," "intend," "plan," "goal," "believe," or other words of similar meaning. 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 reserves, 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, the company's ability to mitigate a decline in revenues, liquidity, regulatory and GAAP capital levels, including complying with any Basel capital requirements without raising additional capital, revenue impact of the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (the CARD Act), 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 Report on Form 10-Q for the quarter ended June 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 in connection with the foreclosures; 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 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 the 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)

Summary        Nine Months Ended                          Second       Third
Income         September 30                Third
Statement                                  Quarter        Quarter      Quarter
                                           2010
               2010          2009                         2010         2009

Net interest   $39,084       $35,550       $12,435        $12,900      $11,423
income

Noninterest    48,738        59,017        14,265         16,253       14,612
income

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

Provision for  23,306        38,460        5,396          8,105        11,705
credit losses

Noninterest    50,394        48,140        16,395         16,745       15,712
expense (5)

Goodwill       10,400        -             10,400         -            -
impairment

Merger and
restructuring  1,450         2,188         421            508          594
charges

Income (loss)
before income  2,272         5,779         (5,912     )   3,795        (1,976    )
taxes

Income tax
expense        3,266         (691      )   1,387          672          (975      )
(benefit)

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

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

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

Earnings
(loss) per     $(0.21    )   $0.39         $(0.77     )   $0.28        $(0.26    )
common share

Diluted
(loss)         (0.21     )   0.39          (0.77      )   0.27         (0.26     )
earnings per
common share

Summary        Nine Months Ended                                       Third
Average        September 30                Third          Second
Balance Sheet                              Quarter        Quarter      Quarter
                                           2010           2010
               2010          2009                                      2009

Total loans    $964,302      $963,260      $934,860       $967,054     $930,255
and leases

Debt           317,906       268,291       328,097        314,299      263,712
securities

Total earning  1,902,303     1,837,706     1,863,819      1,910,790    1,790,000
assets

Total assets   2,456,396     2,442,905     2,371,207      2,489,745    2,390,675

Total          982,132       976,182       973,846        991,615      989,295
deposits

Shareholders'  232,458       242,638       233,978        233,461      255,983
equity

Common
shareholders'  210,643       177,289       215,911        215,468      197,230
equity

Performance    Nine Months Ended           Third          Second       Third
Ratios         September 30                               Quarter      Quarter
                                           Quarter

               2010          2009          2010           2010         2009

Return on
average        n/m           0.35        % n/m            0.50       % n/m
assets

Return on
average
common         n/m           2.26          n/m            5.18         n/m
shareholders'
equity

Credit         Nine Months Ended           Third          Second       Third
Quality        September 30                Quarter        Quarter      Quarter
                                           2010           2010         2009
               2010          2009

Total net      $27,551       $25,267       $7,197         $9,557       $9,624
charge-offs

Annualized
net
charge-offs
as a % of      3.84        % 3.53        % 3.07         % 3.98       % 4.13        %
average loans
and leases
outstanding
(1)

Provision for  $23,306       $38,460       $5,396         $8,105       $11,705
credit losses

Total
consumer
credit card    n/a           14,318        n/a            n/a          5,477
managed net
losses

Total
consumer
credit card
managed net
losses as a %  n/a           11.06       % n/a            n/a          12.90       %
of average
managed
credit card
receivables

                                           September 30   June 30      September 30
                                           2010           2010         2009

Total
nonperforming
loans, leases                              $34,556        $35,598      $33,825
and
foreclosed
properties

Nonperforming
loans, leases
and
foreclosed
properties as
a % of total                               3.71         % 3.73       % 3.72        %
loans, leases
and
foreclosed
properties
(1)

Allowance for
loan and                                   $43,581        $45,255      $35,832
lease losses

Allowance for
loan and
lease losses
as a % of                                  4.69         % 4.75       % 3.95        %
total loans
and leases
outstanding
(1)

Capital
Management                                 September 30   June 30      September 30
                                           2010           2010         2009



Risk-based
capital:

Tier 1 common                              8.45         % 8.01       % 7.25        %
equity ratio

Tier 1                                     11.16          10.67        12.46
capital ratio

Total capital                              15.65          14.77        16.69
ratio

Tier 1
leverage                                   7.24           6.69         8.39
ratio

Tangible
equity ratio                               6.58           6.16         7.55
(2)

Tangible
common equity                              5.77           5.36         4.82
ratio (2)

Period-end
common shares                              10,033,705     10,033,017   8,650,314
issued and
outstanding

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



Shares issued  1,383,461     3,632,878     688            1,016        (1,145    )
(3)

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

Average
diluted
common shares  9,706,951     7,449,911     9,976,351      10,029,776   8,633,834
issued and
outstanding

Dividends
paid per       $0.03         $0.03         $0.01          $0.01        $0.01
common share

Summary End
of Period
Balance Sheet                              September 30   June 30      September 30
                                           2010
                                                          2010         2009



Total loans                                $933,910       $956,177     $914,266
and leases

Total debt                                 322,862        315,200      256,745
securities

Total earning                              1,863,206      1,850,517    1,823,932
assets

Total assets                               2,327,811      2,363,878    2,251,043

Total                                      977,322        974,467      974,899
deposits

Total
shareholders'                              230,495        233,174      257,683
equity

Common
shareholders'                              212,391        215,181      198,843
equity

Book value
per share of                               21.17          21.45        22.99
common stock
(4)

Tangible book
value per
share of                                   12.91          12.14        12.00
common stock
(4)

(1)Ratios do not include loans measured at fair value under the fair value option at
and for the three and nine months ended September 30, 2010 and 2009.

(2)Tangible equity ratio equals period end tangible shareholders' equity divided by
period end tangible assets. Tangible common equity equals period end tangible common
shareholders' equity divided by period end tangible assets. Tangible shareholders'
equity and tangible assets are non-GAAP measures. For corresponding reconciliations
of tangible shareholders' equity and tangible assets to GAAP financial measures, see
Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on
page 21. We believe the use of these non-GAAP measures provide additional clarity in
assessing the results of the Corporation.

(3)2009 amounts include approximately 1.375 billion shares issued in the Merrill
Lynch acquisition.

(4)Book value per share of common stock includes the impact of the conversion of
common equivalent shares to common shares. Tangible book value per share of common
stock represents ending 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 ending common shares
outstanding plus the number of common shares issued upon conversion of common
equivalent shares.

(5)Excludes merger and restructuring charges and goodwill impairment charge.

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 Business Segment Results

(Dollars in millions)

             Third Quarter 2010

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

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

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

Noninterest  2,693       1,699         2,979         1,000         4,446         3,449        550
expense

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

Efficiency   88.03     % n/m           79.57      %  39.06      %  61.96      %  84.70     %  n/m
ratio (2)

Return on
average      3.17        n/m           n/m           6.14          10.94         5.19         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

             Second Quarter 2010

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

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

Provision
for credit   61          3,795         2,390         623           (133     )    121          1,248
losses

Noninterest  2,490       1,776         2,817         909           4,788         3,369        1,104
expense

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

Efficiency   69.08     % 25.86      %  100.78     %  32.73      %  79.73      %  77.78     %  n/m
ratio (2)

Return on
average      11.07       8.12          n/m           7.55          7.00          6.07         n/m
equity

Average -
Total loans  n/m         $177,571      $130,664      $206,111      $95,902       $99,007      $257,245
and leases

Average -
Total        $415,669    n/m           n/m           145,427       112,959       229,272      64,202
deposits

             Third Quarter 2009

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

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

Provision
for credit   93          6,823         2,897         2,057         538           515          (1,218   )
losses

Noninterest  2,286       1,915         3,049         959           3,653         3,005        1,439
expense

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

Efficiency   62.93     % 26.40      %  89.33      %  34.61      %  47.60      %  77.64     %  n/m
ratio (2)

Return on
average      13.63       n/m           n/m           n/m           17.49         4.94         n/m
equity

Average -
Total loans  n/m         $208,650      $132,599      $225,994      $105,995      $101,155     $155,184
and leases

Average -
Total        $418,449    n/m           n/m           131,548       104,228       214,992      95,131
deposits

(1)In 2010, Global Card Services is presented in accordance with new consolidation guidance. The 2009
periods are presented on a managed basis and provision for credit losses represented: For Global Card
Services - Provision for credit losses on held loans combined with realized credit losses associated
with the securitized loan portfolio, and for All Other - Provision for credit losses combined with the
Global Card Services securitization offset.

(2)Fully taxable-equivalent (FTE) basis. FTE basis is a performance measure used by management in
operating the business that management believes provides investors with a more accurate picture of the
interest margin for comparative purposes, see Exhibit A: Non-GAAP Reconciliations - Reconciliation to
GAAP Financial Measures on page 21. We believe the use of these non-GAAP measures provide additional
clarity in assessing the results of the Corporation.

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 Business Segment Results

(Dollars in
millions)

            Nine Months Ended September 30, 2010

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

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

Provision
for credit  160        10,507        7,292         2,103         (43      )    491         2,796
losses

Noninterest 7,678      5,207         9,125         2,876         13,602        10,011      3,345
expense

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

Efficiency  74.57    % 26.87      %  89.78      %  34.37      %  59.32      %  79.63    %  n/m
ratio (2)

Return on
average     8.57       n/m           n/m           6.82          13.97         6.53        n/m
equity

Average -
Total loans n/m        $179,290      $130,685      $206,209      $97,925       $99,122     $250,553
and leases

Average -
Total       $412,593   n/m           n/m           145,857       107,927       230,604     59,640
deposits

            Nine Months Ended September 30, 2009

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

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

Provision
for credit  268        22,699        8,995         5,925         1,451         1,007       (1,885   )
losses

Noninterest 7,173      5,848         8,540         2,902         12,328        9,263       4,274
expense

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

Efficiency  68.45    % 26.64      %  65.13      %  34.87      %  45.62      %  77.22    %  n/m
ratio (2)

Return on
average     11.19      n/m           n/m           n/m           23.61         8.41        n/m
equity

Average -
Total loans n/m        $216,101      $129,910      $232,426      $114,578      $104,444    $165,086
and leases

Average -
Total       $403,551   n/m           n/m           125,333       103,630       226,964     92,139
deposits

(1)In 2010, Global Card Services is presented in accordance with new consolidation guidance. The 2009
period is presented on a managed basis and provision for credit losses represented: For Global Card
Services - Provision for credit losses on held loans combined with realized credit losses associated
with the securitized loan portfolio, and for All Other - Provision for credit losses combined with
the Global Card Services securitization offset.

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

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)

Fully               Nine Months Ended      Third        Second     Third
taxable-equivalent                                      Quarter
basis data(1)       September 30           Quarter                 Quarter
                                                        2010
                    2010        2009       2010                    2009

Net interest        $39,984     $36,514    $12,717      $13,197    $11,753
income

Total revenue, net
of interest         88,722      95,531     26,982       29,450     26,365
expense

Net interest yield  2.81     %  2.65     % 2.72       % 2.77     % 2.61       %
(2)

Efficiency ratio    70.16       52.68      100.87       58.58      61.84

Other Data
                                           September    June 30    September
                                           30                      30
                                                        2010
                                           2010                    2009


Full-time
equivalent                                 285,822      283,224    282,457
employees

Number of banking                          5,879        5,900      6,008
centers - domestic

Number of branded                          17,929       18,078     18,254
ATMs - domestic

(1) FTE basis is a non-GAAP measure. FTE basis is a performance measure used by
management in operating the business that management believes provides
investors with a more accurate

picture of the interest margin for comparative purposes. (See Reconciliation to
GAAP Financial Measures on page 21).

(2)Calculation includes fees earned on overnight deposits placed with the
Federal Reserve of $305 million and $249 million for the nine months ended
September 30, 2010 and 2009; $107 million, $106 million, and $92 million for
the third, second, and first quarters of 2010, and $130 million and $107
million for the fourth and third quarters of 2009, respectively. For more
information see Quarterly and Year-to-Date Average Balances and Interest Rates
- Fully Taxable-equivalent Basis on pages 18 and 19.

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

Performance ratios, excluding goodwill impairment
charge(1)

                   Nine Months
                                           Third
                   Ended
                                           Quarter
                   September 30
                                           2010
                   2010

Per common share
information

Earnings (loss)     $ 0.83                 $ 0.27

Diluted earnings    0.82                   0.27
(loss)

Efficiency ratio    58.43    %             62.33      %
(2)

Return on average   0.51                   0.52
assets

Return on average
common              5.23                   5.06
shareholders'
equity

Return on average
tangible common     10.36                  9.77
shareholders'
equity (3)

Return on average
tangible            9.03                   8.54
shareholders'
equity (3)

(1) Total noninterest expense, excluding goodwill impairment charge, net
income, excluding goodwill impairment charge and net income applicable to
common shareholders, excluding goodwill impairment charge are non-GAAP
measures. We believe the use of these non-GAAP measures provides additional
clarity in assessing the results of the corporation. (See Exhibit A: Non-GAAP
Reconciliations - Reconciliation to GAAP Financial Measures on page 21).

(2) Fully taxable-equivalent basis is a non-GAAP measure. Fully
taxable-equivalent basis is a performance measure used by management in
operating the business that management believes provides investors with a more
accurate picture of the interest margin for comparative purposes. (See Exhibit
A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on page
21).

(3) Tangible equity ratios and tangible book value per share of common stock
are non-GAAP measures. For corresponding reconciliations of average tangible
common shareholders' equity and tangible shareholders' equity to GAAP financial
measures, see Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP
Financial Measures on page 21. 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 fully taxable-equivalent
basis which is a non-GAAP measure. Total revenue, net of interest expense,
includes net interest income on a fully taxable-equivalent basis and noninterest
income. The adjustment of net interest income to a fully taxable-equivalent
basis results in a corresponding increase in income tax expense. The Corporation
also evaluates its business based upon ratios that utilize tangible equity which
is a non-GAAP measure. Return on average tangible common shareholders' equity
measures the Corporation's earnings contribution as a percentage of common
shareholders' equity plus any Common Equivalent Securities less goodwill and
intangible assets (excluding mortgage servicing rights), net of related deferred
tax liabilities. Return on average tangible shareholders' equity measures the
Corporation's earnings contribution as a percentage of average shareholders'
equity reduced by goodwill and intangible assets (excluding mortgage servicing
rights), net of related deferred tax liabilities. The tangible common equity
ratio represents common shareholders' equity plus any Common Equivalent
Securities less goodwill and intangible assets (excluding mortgage servicing
rights), net of related deferred tax liabilities divided by total assets less
goodwill and intangible assets (excluding mortgage servicing rights), net of
related deferred tax liabilities. The tangible equity ratio represents total
shareholders' equity less goodwill and intangible assets (excluding mortgage
servicing rights), net of related deferred tax liabilities divided by total
assets less goodwill and intangible assets (excluding mortgage servicing
rights), net of related deferred tax liabilities. Tangible book value per common
share represents ending common shareholders' equity less goodwill and intangible
assets (excluding mortgage servicing rights), net of related deferred tax
liabilities divided by ending common shares outstanding. These measures are used
to evaluate the Corporation's use of equity (i.e., capital). In addition,
profitability, relationship and investment models all use return on average
tangible shareholders' equity as key measures to support our overall growth
goals. Also, the efficiency ratio measures the costs expended to generate a
dollar of revenue. In addition, earnings and diluted earnings per common share,
the efficiency ratio, return on average assets, return on average common
shareholders' equity, return on average tangible common shareholders' equity and
return on average tangible shareholders' equity have been calculated excluding
the impact of the goodwill impairment charge of $10.4 billion taken during the
third quarter of 2010. See below for Reconciliations of total noninterest
expense, net income (loss) and net income (loss) applicable to common
shareholders excluding the goodwill impairment charge to GAAP financial
measures. We believe the use of these non-GAAP measures provides additional
clarity in assessing the results of the Corporation.

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

                     Nine Months Ended
                     September 30             Third       Second      Third

                                              Quarter     Quarter     Quarter

                     2010        2009         2010        2010        2009



Reconciliation of net interest income to net interest income FTE basis

Net interest income  $39,084     $35,550      $12,435     $12,900     $11,423

Fully
taxable-equivalent   900         964          282         297         330
adjustment

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

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

Total revenue, net   $87,822     $94,567      $26,700     $29,153     $26,035
of interest expense

Fully
taxable-equivalent   900         964          282         297         330
adjustment

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

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

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

Goodwill impairment  (10,400)    -            (10,400)    -           -

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

Reconciliation of income before income taxes to pretax pre-provision income FTE
basis

Income before income $2,272      $5,779       $(5,912)    $3,795      $(1,976)
taxes

Provision for credit 23,306      38,460       5,396       8,105       11,705
losses

Fully
taxable-equivalent   900         964          282         297         330
adjustment

Pretax pre-provision
income fully         $26,478     $45,203      $(234)      $12,197     $10,059
taxable-equivalent
basis

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

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

Goodwill impairment  10,400      -            10,400      -           -

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

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

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

Goodwill impairment  10,400      -            10,400      -           -

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

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

Income tax expense   $3,266      $(691)       $1,387      $672        $(975)
(benefit)

Fully
taxable-equivalent   900         964          282         297         330
adjustment

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

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

Common shareholders' $212,391    $198,843     $212,391    $215,181    $198,843
equity

Goodwill             (75,602)    (86,009)     (75,602)    (85,801)    (86,009)

Intangible assets    (10,402)    (12,715)     (10,402)    (10,796)    (12,715)
(excluding MSRs)

Related deferred tax 3,123       3,714        3,123       3,215       3,714
liabilities

Tangible common      $129,510    $103,833     $129,510    $121,799    $103,833
shareholders' equity

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

Shareholders' equity $230,495    $257,683     $230,495    $233,174    $257,683

Goodwill             (75,602)    (86,009)     (75,602)    (85,801)    (86,009)

Intangible assets    (10,402)    (12,715)     (10,402)    (10,796)    (12,715)
(excluding MSRs)

Related deferred tax 3,123       3,714        3,123       3,215       3,714
liabilities

Tangible             $147,614    $162,673     $147,614    $139,792    $162,673
shareholders' equity

Reconciliation of period end assets to period end tangible assets

Assets               $2,327,811  $2,251,043   $2,327,811  $2,363,878  $2,251,043

Goodwill             (75,602)    (86,009)     (75,602)    (85,801)    (86,009)

Intangible assets    (10,402)    (12,715)     (10,402)    (10,796)    (12,715)
(excluding MSRs)

Related deferred tax 3,123       3,714        3,123       3,215       3,714
liabilities

Tangible assets      $2,244,930  $2,156,033   $2,244,930  $2,270,496  $2,156,033

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 prior periods, loan securitization removed loans from the Consolidated
Balance Sheet through the sale of loans to an off-balance sheet qualifying special purpose
entity which was excluded from the Corporation's Consolidated Financial Statements in
accordance with GAAP applicable at the time.

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

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

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

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

Global Card
Services

               Nine Months Ended September 30, 2009     Three Months Ended September 30, 2009

               Managed     Securitization Held          Managed     Securitization Held
                                                        Basis (1)
               Basis (1)   Impact (2)     Basis                     Impact (2)     Basis

Net interest   $15,094     $(7,024  )     $8,070        $4,920      $(2,275 )      $2,645
income (3)

Noninterest
income:

Card income    6,460       (1,355   )     5,105         2,183       (1,007  )      1,176

All other      405         (94      )     311           147         (26     )      121
income

Total
noninterest    6,865       (1,449   )     5,416         2,330       (1,033  )      1,297
income

Total
revenue, net   21,959      (8,473   )     13,486        7,250       (3,308  )      3,942
of interest
expense

Provision for  22,699      (8,473   )     14,226        6,823       (3,308  )      3,515
credit losses

Noninterest    5,848       -              5,848         1,915       -              1,915
expense

Loss before    (6,588   )  -              (6,588   )    (1,488   )  -              (1,488   )
income taxes

Income tax     (2,321   )  -              (2,321   )    (533     )  -              (533     )
benefit (3)

Net loss       $(4,267  )  $-             $(4,267  )    $(955    )  $-             $(955    )

Average -                  $                                        $
total loans    $216,101    (100,727 )     $115,374      $208,650    (97,520 )      $111,130
and leases

All Other

               Nine Months Ended September 30, 2009     Three Months Ended September 30, 2009

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

Net interest
income (loss)  $(5,250  )  $7,024         $1,774        $(1,798  )  $2,275         $477
(3)

Noninterest
income:

Card income    (464     )  1,355          891           (721     )  1,007          286

Equity
investment     8,184       -              8,184         882         -              882
income

Gains on
sales of debt  3,585       -              3,585         1,442       -              1,442
securities

All other      (3,420   )  94             (3,326   )    (2,053   )  26             (2,027   )
income (loss)

Total
noninterest    7,885       1,449          9,334         (450     )  1,033          583
income

Total
revenue, net   2,635       8,473          11,108        (2,248   )  3,308          1,060
of interest
expense

Provision for  (1,885   )  8,473          6,588         (1,218   )  3,308          2,090
credit losses

Merger and
restructuring  2,188       -              2,188         594         -              594
charges

All other
noninterest    2,086       -              2,086         845         -              845
expense

Income (loss)
before income  246         -              246           (2,469   )  -              (2,469   )
taxes

Income tax     (1,894   )  -              (1,894   )    (928     )  -              (928     )
benefit (3)

Net income     $2,140      $-             $2,140        $(1,541  )  $-             $(1,541  )

Average -
total loans    $165,086    $100,727       $265,813      $155,184    $97,520        $252,704
and leases

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

(2)The securitization impact/offset on net interest income is on a funds 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