Bank of America Earns $3.1 Billion in Second Quarter

Credit Quality Continues to Improve, Especially in Credit Card

Capital Ratios Strengthened

Investment Bank Moves up to No. 1 in U.S. Investment Banking Fees

Strong Asset Management Fees and Brokerage Income Drive Wealth Management

Average Retail Deposit Balances Rise 3 Percent

CHARLOTTE, N.C.--(BUSINESS WIRE)-- Bank of America Corporation today reported second-quarter 2010 net income of $3.1 billion, compared to net income of $3.2 billion a year ago. After preferred dividends, earnings were $0.27 per diluted share, compared to $0.33 in the second quarter of 2009.

Results were driven by lower credit costs, which improved for the fourth straight quarter, and the sale of non-core assets as the company focused on strengthening key business lines and divesting assets that do not directly contribute to providing financial services to customers. These positives were partially offset by lower trading account profits, reduced mortgage banking income and increased costs associated with the United Kingdom payroll tax on certain year-end incentive payments.

"Our quarterly results show that we are making progress on our strategy to align around our three core customer groups - consumers, businesses, and institutional investors - and create the financial institution that customers tell us they want, built on a broad relationship of clarity, transparency, and helping them manage through challenging times," said Chief Executive Officer and President Brian Moynihan. "We improved our capital foundation through retained earnings, and credit quality improved even faster than expected. We have the most complete financial franchise in the world, and we are focused on executing our strategy and delivering outstanding long-term value to our customers and shareholders."

Second-Quarter Business Highlights

    --  Bank of America continued to leverage its global franchise and increase
        the number of referrals. Approximately 80,000 lending and deposit
        products were delivered to Merrill Lynch clients in the second quarter,
        up from 60,000 in the first quarter of 2010 and 35,000 in all of 2009.
        Referrals between Global Wealth and Investment Management and the
        company's commercial and corporate businesses increased 24 percent from
        the first quarter of 2010.
    --  Bank of America Merrill Lynch ranked No. 1 in U.S. net investment
        banking revenues with a 13 percent market share, according to Dealogic
        second-quarter 2010 league tables, as well as No. 1 in global leveraged
        loans, No. 1 in global investment grade corporate debt and No. 1 in
        global syndicated loans.
    --  Average retail deposit balances rose 3 percent from a year ago to $649.6
        billion, paced by strong organic growth in Merrill Lynch Global Wealth
        Management.
    --  Bank of America extended approximately $174 billion in credit in the
        second quarter of 2010, according to preliminary data. Credit extensions
        included $72 billion in first mortgages, $76 billion in commercial
        non-real estate, $13 billion in commercial real estate, $3 billion in
        domestic consumer and small business card, $2 billion in home equity
        products and $8 billion in other consumer credit. Commercial credit
        extensions include a significant number of credit renewals.
    --  Bank of America funded $72 billion in first mortgages, helping more than
        342,000 people either purchase homes or refinance existing mortgages
        during the quarter. This funding included approximately 35,000
        first-time homebuyer credit-qualified mortgages, and more than 129,000
        mortgages to low- and moderate-income borrowers. Approximately 53
        percent of funded first mortgages were for home purchases.
    --  Since the start of 2008, Bank of America and previously Countrywide have
        completed nearly 650,000 loan modifications with customers. During the
        quarter, more than 80,000 loan modifications were completed, including
        38,000 consumers who converted from trial modifications under the
        government's Making Home Affordable program.
    --  During the quarter, Global Wealth and Investment Management launched
        Merrill Edge, which combines the investment expertise of Merrill Lynch
        and the banking strength of Bank of America. Merrill Edge is designed
        for self-directed and mass affluent clients to more effectively manage
        their investments, savings, credit, banking and retirement assets via an
        online platform, phone channels and branch offices. Since its
        introduction a few weeks ago, the company has followed up with 7,000
        qualified contacts.
    --  Global Wealth and Investment Management reported strong asset management
        fees during the quarter and the second-highest quarterly brokerage
        income since the acquisition of Merrill Lynch.

    --  Bank of America sold or agreed to sell a number of non-core assets
        during the quarter as part of the company's strategy to focus on its
        core businesses and strengthen capital ratios. The transactions included
        the following:
        o The sale of the company's preferred and common shares of Itau Unibanco
          Holding S.A., which generated a $1.2 billion pretax gain.
        o The sale of the company's equity position in MasterCard, resulting in
          a pretax gain of approximately $440 million.
        o The sale of Columbia Management's long-term asset management business,
          which generated a $60 million pretax gain and resulted in a reduction
          in goodwill and intangibles of approximately $800 million.
        o An agreement to sell the company's entire 24.9 percent stake in Grupo
          Financiero Santander, S.A.B. de C.V. back to an affiliate of its
          parent company in a private transaction for $2.5 billion. This
          generated a pretax loss of $428 million.
        o An agreement to sell a $1.9 billion portfolio of limited partnership
          interests in private equity funds to AXA Private Equity at a pretax
          loss of approximately $160 million.

Second-Quarter 2010 Financial Summary

Revenue and Expense


                                 Three Months Ended

(Dollars in millions)            June 30, 2010  March 31, 2010  June 30, 2009

Net interest income, FTE basis1  $ 13,197       $ 14,070        $ 11,942

Noninterest income               16,253         18,220          21,144

Total revenue net of interest    29,450         32,290          33,086
expense, FTE basis

Noninterest expense              $ 17,253       $ 17,775        $ 17,020

Efficiency ratio                 58.58%         55.05%          51.44%



1 FTE basis is a non-GAAP measure. In the three months ended June 30, 2009, net interest income on a managed FTE basis was $14.7 billion. Prior year 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. For reconciliation to GAAP measures, refer to page 20 of this press release.

Revenue, net of interest expense, on a fully taxable-equivalent (FTE) basis declined 11 percent from the year-ago period. The year-ago period included gains from the sale of the company's shares in China Construction Bank (CCB) and the contribution of a merchant services business to a joint venture.

Net interest income on an FTE basis increased $1.3 billion from a year earlier, reflecting the impact of the adoption of new consolidation guidance, effective January 1, 2010, which added net assets of approximately $100 billion to the balance sheet. The change, while having no material impact on net income, primarily increased net interest income offset by changes in card income and the provision for credit losses.

The net interest yield widened 13 basis points from the year-ago quarter due in part to the higher-yielding loans, which were brought back on the balance sheet, related to the adoption of the new consolidation guidance.

Noninterest income declined 23 percent from the year-ago quarter due primarily to lower equity investment income, lower mortgage banking income, reduced trading account profits and lower net gains on sales of debt securities as a result of losses associated with the sale of certain non-agency residential mortgage-backed securities. Equity investment income was lower as the prior year period included a $5.3 billion pretax gain on the sale of CCB shares, while other income last year included a $3.8 billion pretax gain on the contribution of the merchant services business to a joint venture. The decrease in equity investment income related to the CCB transaction was offset in part by the gains on the sale of non-core assets. The decline in mortgage banking income reflected an increase in representations and warranties expense, lower production volume and margins, and less favorable mortgage servicing rights results, net of hedges. Partially offsetting these decreases was a $1.2 billion credit-related pretax gain primarily associated with the Merrill Lynch structured notes, compared to a $3.6 billion pretax loss on these structured notes in the year-ago period.

Noninterest expense rose slightly from the year-ago quarter on higher personnel costs due in part to the U.K. payroll tax on certain year-end incentive payments enacted this quarter, and increased professional fees. Pretax merger and restructuring charges declined $321 million from a year earlier.

Credit Quality


                           Three Months Ended

(Dollars in millions)      June 30, 2010     March 31, 2010     June 30, 2009

Provision for credit       $ 8,105           $ 9,805            $ 13,375
losses

Net charge-offs              9,557             10,797             8,701

Net charge-off ratio1        3.98%             4.44%              3.64%

Total managed net losses2    -                 -                $ 11,684

Total managed net loss       -                 -                  4.42%
ratio1,2

                           At June 30, 2010  At March 31, 2010  At June 30, 2009

Nonperforming loans,
leases and foreclosed      $ 35,701          $ 35,925           $ 30,982
properties

Nonperforming loans,
leases and foreclosed        3.74%             3.69%              3.31%
properties ratio3

Allowance for loan and     $ 45,255          $ 46,835           $ 33,785
lease losses

Allowance for loan and       4.75%             4.82%              3.61%
lease 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 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.

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 most consumer portfolios. Credit costs, while still high, fell for the fourth consecutive quarter, reflecting continued improvement in relatively weak global economic conditions.

Credit quality across most commercial portfolios continued to improve with reservable criticized levels decreasing for the third consecutive quarter and nonperforming loans, leases and foreclosed properties decreasing for the second consecutive quarter. Net charge-offs in the core commercial portfolio declined across a broad range of borrowers and industries.

Net charge-offs were $1.2 billion lower than the first quarter, reflecting improvement in the consumer and commercial portfolios. Specific drivers of the decrease included the higher first-quarter charge-offs on certain modified collateral-dependent consumer real estate loans and continued improvement in delinquencies and collections in the domestic credit card portfolio in the second quarter. These improvements were partially offset by losses related to certain foreign credit card renegotiated loans as the company conformed to domestic charge-off policies. Nonperforming loans, leases and foreclosed properties were $35.7 billion, compared with $35.9 billion at March 31, 2010 and $31.0 billion a year ago.

The provision for credit losses was $8.1 billion, $1.7 billion lower than the first quarter and $5.3 billion lower than the same period a year earlier. The provision was $1.45 billion lower than net charge-offs, resulting in a reduction in the reserve for credit losses for the quarter. This compares with a $992 million reduction to the reserve for credit losses in the first quarter and a $4.7 billion addition a year earlier. The reserve reduction in the current quarter was primarily due to improved delinquencies, collections and bankruptcies in domestic credit card and consumer lending businesses, and improved credit profiles in the commercial portfolios. These were partially offset by reserve additions in the consumer real estate portfolios amid continued stress in the housing market, which included reserve additions for purchased credit-impaired consumer portfolios obtained through acquisitions.

Capital and Liquidity Management


                                At June 30,  At March 31,  At June 30,

                                2010         2010          2009

Total shareholders' equity
                                $ 233,174    $ 229,823     $ 255,152
(in millions)

Tier 1 common ratio               8.01%        7.60%         6.90%

Tier 1 capital ratio              10.67%       10.23%        11.93%

Total capital ratio               14.77%       14.47%        15.99%

Tangible common equity ratio1     5.36%        5.23%         4.67%

Tangible book value per share1  $ 12.14      $ 11.70       $ 11.66



1 Tangible common equity 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 20 of this press release.

Capital ratios were positively impacted from the first quarter of 2010 primarily due to the sale of certain non-core assets and increased retained earnings. The company's liquidity position strengthened during the quarter as customers continued to reduce debt. Cash and cash equivalents rose $6.2 billion from the first quarter and $10.7 billion compared to the same period last year. The company's total global excess liquidity sources rose $20 billion from the first quarter of 2010 to approximately $290 billion. At June 30, 2010, the company's time-to-required funding was 22 months.

During the quarter, a cash dividend of $0.01 per common share was paid, and the company reported $340 million in preferred dividends. Period-end common shares issued and outstanding were 10.03 billion for the first and second quarters of 2010 and 8.65 billion for the second 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.

2010 Business Segment Results

Deposits


                          Three Months Ended

(Dollars in millions)     June 30, 2010     March 31, 2010     June 30, 2009

Total revenue, net of
interest expense, FTE     $ 3,604           $ 3,633            $ 3,477
basis

Provision for credit        61                37                 87
losses

Noninterest expense         2,496             2,498              2,593

Net income                  665               688                534

Efficiency ratio, FTE       69.24%            68.75%             74.59%
basis

Return on average equity    11.01%            11.57%             9.16%

Average deposits          $ 415,670         $ 414,169          $ 415,502

                          At June 30, 2010  At March 31, 2010  At June 30, 2009

Period-end deposits       $ 411,682         $ 417,541          $ 421,651



Deposits net income rose 25 percent from the year-ago period due to increases in revenue and lower noninterest expense. Net revenue increased as disciplined pricing, a customer shift to more liquid products, and a higher residual net interest income allocation related to asset and liability management (ALM) activities, which drove higher net interest income. This was partially offset by lower service charges driven by overdraft policy changes announced in 2009.

Noninterest expense decreased 4 percent from a year ago due to the absence of the special FDIC assessment, partially offset by higher retail distribution costs that shifted to Deposits from the other consumer businesses.

Average deposits remained relatively flat from a year ago as organic growth and the transfer of certain deposits from other client-managed businesses were offset by the expected decline in higher-yielding Countrywide deposits.


Global Card Services

                          Three Months Ended

(Dollars in millions)     June 30, 2010     March 31, 2010     June 30, 2009

Total revenue, net of
interest expense, FTE     $ 6,861           $ 6,803            $ 7,262
basis1

Provision for credit        3,795             3,535              7,655
losses1

Noninterest expense         1,799             1,757              1,936

Net income (loss)           806               947                (1,586)

Efficiency ratio,FTE        26.20%            25.84%             26.66%
basis

Return on average equity    7.98%             8.90%              n/m

Average loans1            $ 177,571         $ 189,307          $ 215,808

                          At June 30, 2010  At March 31, 2010  At June 30, 2009

Period-end loans1         $ 173,021         $ 181,763          $ 211,325



1Results 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.


n/m = not meaningful



Global Card Services net income increased $2.4 billion compared to a year ago due to declining credit costs reflecting continued improvement in the U.S. economy.

Revenue decreased $401 million from a year ago, driven by lower average loans and reduced interest and fee income primarily resulting from the implementation of the CARD Act, partially offset by the $440 million pretax gain on the sale of the MasterCard position.

Provision for credit losses decreased $3.9 billion from a year ago as lower delinquencies, decreasing bankruptcies and lower expected losses from the improving economic outlook drove lower charge-offs and reserve reductions during the quarter.

Noninterest expense decreased compared to a year ago as a higher percentage of the retail distribution costs shifted to Deposits from Global Card Services.

Home Loans and Insurance


                       Three Months Ended

(Dollars in millions)  June 30, 2010     March 31, 2010     June 30, 2009

Total revenue, net of
interest expense, FTE  $ 2,795           $ 3,624            $ 4,463
basis

Provision for credit     2,390             3,600              2,726
losses

Noninterest expense      2,817             3,329              2,834

Net income (loss)        (1,534)           (2,072)            (726)

Efficiency ratio, FTE    100.78%           91.85%             63.50%
basis

Average loans          $ 130,664         $ 133,745          $ 131,509

                       At June 30, 2010  At March 31, 2010  At June 30, 2009

Period-end loans       $ 129,798         $ 132,428          $ 131,120



The net loss in Home Loans and Insurance increased $808 million compared to the year-ago period. Revenue decreased 37 percent largely due to lower mortgage banking income. The year-over-year decline in mortgage banking income was driven by the $802 million increase in representations and warranties expense, combined with lower production volume and margins resulting from a decrease in refinance activity. Also contributing to the decline were less favorable mortgage servicing results partially offset by increased servicing income.

The provision for credit losses decreased $336 million from the year-ago period due to lower reserve additions driven by improving portfolio trends. Provision expense continued to remain elevated amid continued stress in the housing market.

Noninterest expense was essentially flat from a year ago as lower production expenses and a lower insurance loss provision were offset by increased costs related to default management staff and loss mitigation efforts.

Global Commercial Banking


                                Three Months Ended

(Dollars in millions)           June 30, 2010  March 31, 2010  June 30, 2009

Total revenue, net of interest  $ 2,778        $ 3,030         $ 2,843
expense, FTE basis

Provision for credit losses       623            926             2,081

Noninterest expense               909            967             970

Net income (loss)                 790            713             (64)

Efficiency ratio, FTE basis       32.74%         31.92%          34.12%

Return on average equity          7.55%          6.78%           n/m

Average loans and leases        $ 206,111      $ 213,841       $ 234,355

Average deposits                  145,221        143,369         125,805



n/m = not meaningful

Global Commercial Banking net income increased $854 million from a year ago due to lower credit costs partially offset by lower revenues.

Revenue decreased from the same period in the prior year. Net interest income benefited from improved loan spreads on new, renewed and amended facilities offset by loan balance declines. Strong deposit growth contributed to net revenue as clients remained very liquid. Revenue was negatively impacted by increased costs related to an agreement to purchase certain loans, partially offset by a higher residual net interest income allocation related to asset and liability management activities.

The provision for credit losses decreased $1.5 billion driven by reserve reductions and lower net charge-offs in the commercial domestic and retail dealer-related portfolios, reflecting improved borrower credit profiles and higher resale values. Also contributing to the decline in provision was the higher level of reserve additions in commercial real estate in the year-ago period.

Average loan balances decreased $28.2 billion compared to the same period a year ago due to continued low demand due in part to client deleveraging and economic uncertainty. Average deposit balances continued to grow, increasing by $19.4 billion as clients remain very liquid.

Global Banking and Markets


                                Three Months Ended

(Dollars in millions)           June 30, 2010  March 31, 2010  June 30, 2009

Total revenue, net of interest  $ 6,005        $ 9,751         $ 10,411
expense, FTE basis

Provision for credit losses       (133)          247             588

Noninterest expense               4,790          4,370           3,920

Net income                        927            3,218           3,903

Efficiency ratio, FTE basis       79.75%         44.83%          37.66%

Return on average equity          7.00%          23.70%          31.52%

Total average assets            $ 774,792      $ 782,126       $ 780,910

Total average deposits          $ 113,165      $ 104,113       $ 102,650



Global Banking and Markets net income decreased $3.0 billion compared to a year earlier, as the year-ago period included a gain on the contribution of the merchant services business to a joint venture, and the most recent period was impacted by a widespread market slowdown in the sales and trading businesses.

Revenue decreased $4.4 billion due to the lack of the $3.8 billion gain on the contribution of the merchant services business in 2009, as well as general market deterioration resulting from market concerns around the global economy and the lack of liquidity as sovereign debt fears and regulatory uncertainty fueled investor concerns. Noninterest expense increased $870 million driven by the U.K. payroll tax on certain year-end incentive payments and the recognition of expense on proportionately larger prior year incentive deferrals. Provision for credit losses declined from a year ago primarily driven by an improved risk portfolio. This resulted in reserve reductions and lower charge-offs in the corporate portfolio, reflecting stabilizing borrower cash flows and improved borrower liquidity.

Fixed Income, Currency and Commodities revenue fell to $2.6 billion, compared to $3.1 billion a year ago, due to spread widening and a decline in liquidity, reflecting increased investor risk aversion and greater economic uncertainty.

Equities revenue declined to $1.0 billion, compared to $1.3 billion a year ago, driven primarily by lower sales and trading revenues of $852 million due to adverse market conditions and reductions in equity derivatives revenue.

Corporate and Investment Banking revenue of $2.4 billion included Corporate Banking revenue of $1.6 billion. Excluding the merchant services gain in the prior year, Corporate and Investment Banking revenue was up $210 million year over year, largely as a result of an increase in net interest income and growth in fee revenue.

Global Wealth and Investment Management


                          Three Months Ended

(Dollars in millions)     June 30, 2010     March 31, 2010     June 30, 2009

Total revenue, net of
interest                  $ 4,331           $ 4,169            $ 3,962

expense, FTE basis

Provision for credit        121               242                238
losses

Noninterest expense         3,370             3,191              3,142

Net income                  356               461                396

Efficiency ratio, FTE       77.77%            76.56%             79.26%
basis

Return on average equity    6.08%             8.50%              8.77%

Average loans             $ 99,007          $ 99,038           $ 101,746

Average deposits            229,272           224,514            215,381

(in billions)             At June 30, 2010  At March 31, 2010  At June 30, 2009

Assets under management   $ 603.3           $ 750.7            $ 705.2
(AUM)1

Total net client            1,992.4           2,188.1            2,022.2
assets1,2



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

2Client assets are defined as assets under management, client brokerage assets, and other assets in custody and client deposits.

Global Wealth and Investment Management net income declined $40 million from a year earlier driven in part by the tax-related effects of the sale of the former Columbia Management long-term asset management business, partially offset by higher investment and brokerage activity and lower credit costs.

Revenue increased $369 million from a year earlier to $4.3 billion, which represents Global Wealth and Investment Management's highest quarterly revenue other than the fourth quarter of 2009, which included a $1.1 billion gain related to the company's equity investment in BlackRock, Inc. The increase was driven by higher investment and brokerage income, higher net interest income compared to the second quarter of 2009, and the pretax gain on the sale of Columbia Management's long-term asset management business. The provision for credit losses decreased $117 million from a year ago to $121 million due to improvement in the consumer real estate portfolio.

Merrill Lynch Global Wealth Management net revenue increased $234 million from a year earlier due to higher investment and brokerage income driven by the impact of higher average equity market levels, increased AUM flows, and higher transactional brokerage activity, as well as higher net interest income.

U.S. Trust, Bank of America Private Wealth Management, and Retirement and Philanthropic Services net revenue increased $29 million and $15 million, respectively, from a year ago due to improved net interest margin at U.S. Trust and higher valuations in the equity markets in Retirement and Philanthropic Services.

Global Wealth and Investment Management also includes the results of BofA Global Capital Management, which is the cash and liquidity asset management business that Bank of America retained following the sale of Columbia Management's long-term asset management business and the economic ownership interest related to the company's investment in BlackRock, Inc.

All Other

All Other reported net income of $1.1 billion, up $346 million from a year ago due to higher net revenue driven by a $1.2 billion pretax gain on the sale of shares of Itau and credit-related gains primarily associated with the Merrill Lynch structured notes of $1.2 billion, partially offset by increases in the provision for credit losses and noninterest expense.

The increase in provision for credit losses was driven by the impact of the new consolidation guidance, partially offset by lower reserve additions related to the residential mortgage and the discontinued real estate purchased credit-impaired portfolios. Results were also impacted by lower gains on sales of debt securities as a result of net losses on sales of certain non-agency residential mortgage-backed securities. Noninterest expense increased due to higher personnel, general operating and other expenses.

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 certain Merrill Lynch structured notes 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: Chief Executive Officer and President Brian Moynihan and Chief Financial Officer Charles Noski will discuss second-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 5,900 retail banking offices, more than 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 are not historical facts, but instead represent Bank of America's current expectations, plans or forecasts of its future results and revenues, including future asset management and brokerage fees, sales and trading revenues, representation and warranties expenses, deferred tax assets, net interest income, credit trends and conditions, including credit losses, credit reserves, charge-offs 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, liquidity, regulatory and GAAP capital levels, revenue impact of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), mortgage production levels, mortgage modifications, loss rates on the Countrywide purchased credit-impaired portfolio 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 in any of Bank of America's subsequent SEC filings: negative economic conditions that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits; 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 in, 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 assets and liabilities; legislative and regulatory actions in the United States (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Electronic Fund Transfer Act, the CARD Act of 2009 and related regulations) and internationally; 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 accounting guidance on consolidation) 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; 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        Six Months Ended             Second         First          Second
Income
Statement      June 30                      Quarter        Quarter        Quarter

                 2010           2009          2010           2010           2009

Net interest   $ 26,649       $ 24,127      $ 12,900       $ 13,749       $ 11,630
income

Noninterest      34,473         44,405        16,253         18,220         21,144
income

Total
revenue, net     61,122         68,532        29,153         31,969         32,774
of interest
expense

Provision for    17,910         26,755        8,105          9,805          13,375
credit losses

Noninterest
expense,
before merger    33,999         32,428        16,745         17,254         16,191
and
restructuring
charges

Merger and
restructuring    1,029          1,594         508            521            829
charges

Income before    8,184          7,755         3,795          4,389          2,379
income taxes

Income tax       1,879          284           672            1,207          (845      )
expense

Net income     $ 6,305        $ 7,471       $ 3,123        $ 3,182        $ 3,224

Preferred
stock            688            2,238         340            348            805
dividends and
accretion

Net income
applicable to  $ 5,617        $ 5,233       $ 2,783        $ 2,834        $ 2,419
common
shareholders

Earnings per   $ 0.56         $ 0.75        $ 0.28         $ 0.28         $ 0.33
common share

Diluted
earnings per     0.55           0.75          0.27           0.28           0.33
common share

Summary        Six Months Ended             Second         First          Second
Average
Balance Sheet  June 30                      Quarter        Quarter        Quarter

                 2010           2009          2010           2010           2009

Total loans    $ 979,267      $ 980,035     $ 967,054      $ 991,615      $ 966,105
and leases

Debt             312,727        270,618       314,299        311,136        255,159
securities

Total earning    1,921,864      1,861,954     1,910,790      1,933,060      1,811,981
assets

Total assets     2,499,697      2,469,452     2,489,745      2,509,760      2,420,317

Total            986,344        969,516       991,615        981,015        974,892
deposits

Shareholders'    231,686        235,855       233,461        229,891        242,867
equity

Common
shareholders'    207,966        167,153       215,468        200,380        173,497
equity

Performance    Six Months Ended             Second         First          Second
Ratios
               June 30                      Quarter        Quarter        Quarter

                 2010           2009          2010           2010           2009

Return on
average          0.51       %   0.61      %   0.50       %   0.51       %   0.53      %
assets

Return on
average common   5.45           6.31          5.18           5.73           5.59
shareholders'
equity

Credit         Six Months Ended             Second         First          Second
Quality
               June 30                      Quarter        Quarter        Quarter

                 2010           2009          2010           2010           2009

Total net      $ 20,354       $ 15,643      $ 9,557        $ 10,797       $ 8,701
charge-offs

Annualized
net
charge-offs
as a % of        4.21       %   3.24      %   3.98       %   4.44       %   3.64      %
average loans
and leases
outstanding
(1)

Provision for  $ 17,910       $ 26,755      $ 8,105        $ 9,805        $ 13,375
credit losses

Total
consumer
credit card      n/a            8,841         n/a            n/a            5,047
managed net
losses

Total consumer credit card managed

net losses as a % of average managed

credit card      n/a            10.16     %   n/a            n/a        %   11.73     %
receivables

                                            June 30        March 31       June 30

                                              2010           2010           2009

Total nonperforming loans,
leases and foreclosed                       $ 35,701       $ 35,925       $ 30,982
properties

Nonperforming loans, leases and foreclosed
properties as a % of total loans, leases      3.74       %   3.69       %   3.31      %
and foreclosed properties (1)

Allowance for
loan and                                    $ 45,255       $ 46,835       $ 33,785
lease losses

Allowance for loan and lease losses as a %    4.75       %   4.82       %   3.61      %
of total loans and leases outstanding (1)

Capital                                     June 30        March 31       June 30
Management

                                              2010           2010           2009

Risk-based
capital:

Tier 1 common                                 8.01       %   7.60       %   6.90      %
equity ratio

Tier 1                                        10.67          10.23          11.93
capital ratio

Total capital                                 14.77          14.47          15.99
ratio

Tier 1
leverage                                      6.69           6.46           8.21
ratio

Tangible
equity ratio                                  6.16           6.03           7.39
(2)

Tangible
common equity                                 5.36           5.23           4.67
ratio (3)

Period-end
common shares                                 10,033,017     10,032,001     8,651,459
issued and
outstanding

               Six Months Ended             Second         First          Second
                                            Quarter        Quarter        Quarter
               June 30

                 2010           2009          2010           2010           2009

Shares issued    1,382,773      3,634,024     1,016          1,381,757      2,250,509
(4)

Average common
shares issued    9,570,166      6,808,262     9,956,773      9,177,468      7,241,515
and
outstanding

Average
diluted common
shares issued    10,020,926     6,836,972     10,029,776     10,005,254     7,269,518
and
outstanding

Dividends
paid per       $ 0.02         $ 0.02        $ 0.01         $ 0.01         $ 0.01
common share

Summary End of
Period Balance                              June 30        March 31       June 30
Sheet

                                              2010           2010           2009

Total loans                                 $ 956,177      $ 976,042      $ 942,248
and leases

Total debt                                    315,200        316,360        267,238
securities

Total earning                                 1,850,517      1,823,932      1,721,618
assets

Total assets                                  2,363,878      2,338,700      2,254,394

Total                                         974,467        976,102        970,742
deposits

Total
shareholders'                                 233,174        229,823        255,152
equity

Common
shareholders'                                 215,181        211,859        196,492
equity

Book value
per share of                                $ 21.45        $ 21.12        $ 22.71
common stock
(5)

Tangible book
value per
share of                                      12.14          11.70          11.66
common stock
(5)

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

(2)Tangible equity ratio represents 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.

(3)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.

(4)2009 amounts include approximately 1.375 billion shares issued in
the Merrill Lynch acquisition.

(5)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.

n/a = not
applicable

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

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





Bank of America Corporation and Subsidiaries

Quarterly Business Segment Results

(Dollars in
millions)

             Second Quarter 2010

                          Global Card    Home Loans     Global         Global                      All Other
             Deposits     Services(1)    & Insurance    Commercial     Banking &      GWIM         (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    2,496        1,799          2,817          909            4,790          3,370        1,072
expense

Net income     665          806            (1,534  )      790            927            356          1,113
(loss)

Efficiency     69.24   %    26.20     %    100.78    %    32.74     %    79.75     %    77.77   %    n/m
ratio (2)

Return on
average        11.01        7.98           n/m            7.55           7.00           6.08         n/m
equity

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

Average -
Total        $ 415,670      n/m            n/m            145,221        113,165        229,272      64,201
deposits

             First Quarter 2010

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

Total
revenue,
net of       $ 3,633      $ 6,803        $ 3,624        $ 3,030          9,751        $ 4,169      $ 1,280
interest
expense

Provision
for credit     37           3,535          3,600          926            247            242          1,218
losses

Noninterest    2,498        1,757          3,329          967            4,370          3,191        1,663
expense

Net income     688          947            (2,072  )      713            3,218          461          (773    )
(loss)

Efficiency     68.75   %    25.84     %    91.85     %    31.92     %    44.83     %    76.56   %    n/m
ratio (2)

Return on
average        11.57        8.90           n/m            6.78           23.70          8.50         n/m
equity

Average -
Total loans    n/m        $ 189,307      $ 133,745      $ 213,841      $ 99,027       $ 99,038     $ 256,151
and leases

Average -
Total        $ 414,169      n/m            n/m            143,369        104,113        224,514      70,417
deposits

             Second Quarter 2009

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

Total
revenue,
net of       $ 3,477      $ 7,262        $ 4,463        $ 2,843          10,411       $ 3,962      $ 668
interest
expense

Provision
for credit     87           7,655          2,726          2,081          588            238          -
losses

Noninterest    2,593        1,936          2,834          970            3,920          3,142        1,625
expense

Net income     534          (1,586  )      (726    )      (64     )      3,903          396          767
(loss)

Efficiency     74.59   %    26.66     %    63.50     %    34.12     %    37.66     %    79.26   %    n/m
ratio (2)

Return on
average        9.16         n/m            n/m            n/m            31.52          8.77         n/m
equity

Average -
Total loans    n/m        $ 215,808      $ 131,509      $ 234,355      $ 116,513      $ 101,746    $ 165,558
and leases

Average -
Total        $ 415,502      n/m            n/m            125,805        102,650        215,381      89,527
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.

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)

             Six Months Ended June 30, 2010

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

Total
revenue,
net of       $ 7,237      $ 13,664       $ 6,419        $ 5,808          15,756     $ 8,500      $ 4,356
interest
expense

Provision
for credit     98           7,330          5,990          1,549          114          363          2,466
losses

Noninterest    4,994        3,556          6,146          1,876          9,160        6,561        2,735
expense

Net income     1,353        1,753          (3,606  )      1,503          4,145        817          340
(loss)

Efficiency     68.99   %    26.02     %    95.73     %    32.31     %    58.14   %    77.18   %    n/m
ratio (2)

Return on
average        11.29        8.45           n/m            7.16           15.46        7.25         n/m
equity

Average -
Total loans    n/m        $ 183,407      $ 132,196      $ 209,955      $ 97,456     $ 99,023     $ 256,700
and leases

Average -
Total        $ 414,924      n/m            n/m            144,300        108,664      226,906      67,291
deposits

             Six Months Ended June 30, 2009

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

Total
revenue,
net of       $ 6,849      $ 14,709       $ 9,699        $ 5,552          19,351     $ 8,124      $ 4,882
interest
expense

Provision
for credit     175          15,876         6,098          3,868          913          492          (667    )
losses

Noninterest    4,895        3,982          5,491          1,944          8,613        6,256        2,841
expense

Net income     1,148        (3,343  )      (1,221  )      (100    )      6,420        890          3,677
(loss)

Efficiency     71.47   %    27.07     %    56.62     %    35.00     %    44.51   %    77.00   %    n/m
ratio (2)

Return on
average        9.89         n/m            n/m            n/m            27.09        10.33        n/m
equity

Average -
Total loans    n/m        $ 219,888      $ 128,543      $ 235,695      $ 118,940    $ 106,116    $ 170,119
and leases

Average -
Total        $ 395,999      n/m            n/m            122,175        103,325      233,049      90,597
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               Six Months Ended
taxable-equivalent  June 30                   Second       First        Second
basis data(1)                                 Quarter      Quarter      Quarter
                                              2010         2010         2009
                      2010        2009

Net interest        $ 27,267    $ 24,761    $ 13,197     $ 14,070     $ 11,942
income

Total revenue, net
of interest           61,740      69,166      29,450       32,290       33,086
expense

Net interest yield    2.85   %    2.67   %    2.77    %    2.93    %    2.64    %

Efficiency ratio      56.73       49.19       58.58        55.05        51.44

Other Data
                                              June 30      March        June 30
                                                           31
                                              2010                      2009
                                                           2010


Full-time
equivalent                                    283,224      283,320      282,973
employees

Number of banking                             5,900        5,939        6,109
centers - domestic

Number of branded                             18,078       18,135       18,426
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 20).

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 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. 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. The
tangible common equity ratio represents common 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). 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 at June 30, 2010, March 31,
2010 and June 30, 2009, and for the six months ended June 30, 2010 and 2009. We believe the use
of these non-GAAP measures provides additional clarity in assessing the results of the
Corporation.

                    Six Months Ended                 Second         First          Second

                    June 30                          Quarter        Quarter        Quarter

                      2010           2009              2010           2010           2009

Reconciliation of net interest income to net
interest income FTE basis

Net interest        $ 26,649       $ 24,127          $ 12,900       $ 13,749       $ 11,630
income

Fully
taxable-equivalent    618            634               297            321            312
adjustment

Net interest
income fully        $ 27,267       $ 24,761          $ 13,197       $ 14,070       $ 11,942
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         $ 61,122       $ 68,532          $ 29,153       $ 31,969       $ 32,774
expense

Fully
taxable-equivalent    618            634               297            321            312
adjustment

Total revenue, net
of interest
expense fully       $ 61,740       $ 69,166          $ 29,450       $ 32,290       $ 33,086
taxable-equivalent
basis

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

Income before       $ 8,184        $ 7,755           $ 3,795        $ 4,389        $ 2,379
income taxes

Provision for         17,910         26,755            8,105          9,805          13,375
credit losses

Fully
taxable-equivalent    618            634               297            321            312
adjustment

Pretax
pre-provision
income fully        $ 26,712       $ 35,144          $ 12,197       $ 14,515       $ 16,066
taxable-equivalent
basis

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

Income tax expense  $ 1,879        $ 284             $ 672          $ 1,207          ($845     )
(benefit)

Fully
taxable-equivalent    618            634               297            321            312
adjustment

Income tax expense
(benefit) fully     $ 2,497        $ 918             $ 969          $ 1,528          ($533     )
taxable-equivalent
basis

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

Common
shareholders'       $ 215,181      $ 196,492         $ 215,181      $ 211,859      $ 196,492
equity

Goodwill              (85,801   )    (86,246   )       (85,801   )    (86,305   )    (86,246   )

Intangible assets     (10,796   )    (13,245   )       (10,796   )    (11,548   )    (13,245   )
(excluding MSRs)

Related deferred      3,215          3,843             3,215          3,396          3,843
tax liabilities

Tangible common
shareholders'       $ 121,799      $ 100,844         $ 121,799      $ 117,402      $ 100,844
equity

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

Shareholders'       $ 233,174      $ 255,152         $ 233,174      $ 229,823      $ 255,152
equity

Goodwill              (85,801   )    (86,246   )       (85,801   )    (86,305   )    (86,246   )

Intangible assets     (10,796   )    (13,245   )       (10,796   )    (11,548   )    (13,245   )
(excluding MSRs)

Related deferred      3,215          3,843             3,215          3,396          3,843
tax liabilities

Tangible
shareholders'       $ 139,792      $ 159,504         $ 139,792      $ 135,366      $ 159,504
equity

Reconciliation of period end assets to period
end tangible assets

Assets              $ 2,363,878    $ 2,254,394       $ 2,363,878    $ 2,338,700    $ 2,254,394

Goodwill              (85,801   )    (86,246   )       (85,801   )    (86,305   )    (86,246   )

Intangible assets     (10,796   )    (13,245   )       (10,796   )    (11,548   )    (13,245   )
(excluding MSRs)

Related deferred      3,215          3,843             3,215          3,396          3,843
tax liabilities

Tangible assets     $ 2,270,496    $ 2,158,746       $ 2,270,496    $ 2,244,243    $ 2,158,746

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

              Six Months Ended June 30, 2009             Three Months Ended June 30, 2009

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

Net interest  $ 10,174     $ (4,749   )    $ 5,425       $ 4,976      $ (2,358   )    $ 2,618
income (3)

Noninterest
income:

Card income     4,277        (348     )      3,929         2,163        (592     )      1,571

All other       258          (67      )      191           123          (33      )      90
income

Total
noninterest     4,535        (415     )      4,120         2,286        (625     )      1,661
income

Total
revenue, net    14,709       (5,164   )      9,545         7,262        (2,983   )      4,279
of interest
expense

Provision for   15,876       (5,164   )      10,712        7,655        (2,983   )      4,672
credit losses

Noninterest     3,982        -               3,982         1,936        -               1,936
expense

Loss before     (5,149  )    -               (5,149  )     (2,329  )    -               (2,329  )
income taxes

Income tax      (1,806  )    -               (1,806  )     (743    )    -               (743    )
benefit (3)

Net loss      $ (3,343  )  $ -             $ (3,343  )   $ (1,586  )  $ -             $ (1,586  )

Average -
total loans   $ 219,888    $ (102,357 )    $ 117,531     $ 215,808    $ (102,046 )    $ 113,762
and leases

All Other

              Six Months Ended June 30, 2009             Three Months Ended June 30, 2009

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

Net interest
income (loss) $ (3,452  )  $ 4,749         $ 1,297       $ (1,595  )  $ 2,358         $ 763
(3)

Noninterest
income:

Card income     256          348             604           (278    )    592             314

Equity
investment      7,302        -               7,302         5,979        -               5,979
income

Gains on
sales of debt   2,143        -               2,143         672          -               672
securities

All other       (1,367  )    67              (1,300  )     (4,110  )    33              (4,077  )
income (loss)

Total
noninterest     8,334        415             8,749         2,263        625             2,888
income

Total
revenue, net    4,882        5,164           10,046        668          2,983           3,651
of interest
expense

Provision for   (667    )    5,164           4,497         -            2,983           2,983
credit losses

Merger and
restructuring   1,594        -               1,594         829          -               829
charges

All other
noninterest     1,247        -               1,247         796          -               796
expense

Income (loss)
before income   2,708        -               2,708         (957    )    -               (957    )
taxes

Income tax      (969    )    -               (969    )     (1,724  )    -               (1,724  )
benefit (3)

Net income    $ 3,677      $ -             $ 3,677       $ 767        $ -             $ 767

Average -
total loans   $ 170,119    $ 102,357       $ 272,476     $ 165,558    $ 102,046       $ 267,604
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