Supplemental Information in connection with financial results

Exhibit 99.2

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Supplemental Information

Fourth Quarter 2008

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


Bank of America Corporation and Subsidiaries
Table of Contents		Page

Consolidated Financial Highlights		2
Supplemental Financial Data		3
Consolidated Statement of Income		4
Consolidated Balance Sheet		5
Capital Management		6
Core Net Interest Income - Managed Basis		7
Quarterly Average Balances and Interest Rates		8
Quarterly Average Balances and Interest Rates - Isolating Hedge Income/Expense		9
Year-to-Date Average Balances and Interest Rates		10
Year-to-Date Average Balances and Interest Rates - Isolating Hedge Income/Expense		11
Global Consumer and Small Business Banking
Total Segment Results		12
Quarter-to-Date Business Results		13
Year-to-Date Business Results		14
Key Indicators		15
E-commerce & BankofAmerica.com		16
Credit Card Data		17
Global Corporate and Investment Banking
Total Segment Results		18
Quarter-to-Date Business Results		19
Year-to-Date Business Results		20
Business Lending Key Indicators		21
Capital Markets and Advisory Services Key Indicators		22
Special Purpose Entities Liquidity Exposure		23
Super Senior Collateralized Debt Obligation Exposure		24
Subprime Super Senior Collateralized Debt Obligation Carrying Values		25
Global Wealth and Investment Management
Total Segment Results		26
Quarter-to-Date Business Results		27
Year-to-Date Business Results		28
Key Indicators		29
All Other
Total Segment Results		30
Outstanding Loans and Leases		31
Quarterly Average Loans and Leases by Business Segment		32
Commercial Credit Exposure by Industry		33
Net Credit Default Protection by Maturity Profile and Credit Exposure Debt Rating		34
Selected Emerging Markets		35
Nonperforming Assets		36
Quarterly Net Charge-offs/Losses and Net Charge-off/Loss Ratios		37
Year-to-Date Net Charge-offs/Losses and Net Charge-off/Loss Ratios		38
Allocation of the Allowance for Credit Losses by Product Type		39

Exhibit A: Non-GAAP Reconciliations		40
Exhibit B: Selected Fourth Quarter 2008 Merrill Lynch Results		42


		1

Bank of America Corporation and Subsidiaries

Consolidated Financial Highlights

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


	Year Ended December 31						Fourth Quarter				Third Quarter			Second Quarter			First Quarter			Fourth Quarter
	Year Ended December 31						Fourth Quarter				Third Quarter			Second Quarter			First Quarter			Fourth Quarter
	2008			2007			2008 ⁽¹⁾				2008			2008			2008			2007
Income statement
Net interest income	$	45,360		$	34,441		$	13,106			$	11,642		$	10,621		$	9,991		$	9,165
Noninterest income		27,422			32,392			2,574				7,979			9,789			7,080			3,639
Total revenue, net of interest expense		72,782			66,833			15,680				19,621			20,410			17,071			12,804
Provision for credit losses		26,825			8,385			8,535				6,450			5,830			6,010			3,310
Noninterest expense, before merger and restructuring charges		40,594			37,114			10,641				11,413			9,447			9,093			10,269
Merger and restructuring charges		935			410			306				247			212			170			140
Income tax expense (benefit)		420			5,942			(2,013	)			334			1,511			588			(1,183	)
Net income (loss)		4,008			14,982			(1,789	)			1,177			3,410			1,210			268
Preferred stock dividends		1,452			182			603				473			186			190			53
Net income (loss) applicable to common shareholders		2,556			14,800			(2,392	)			704			3,224			1,020			215
Diluted earnings (loss) per common share		0.55			3.30			(0.48	)			0.15			0.72			0.23			0.05
Average diluted common shares issued and outstanding		4,612,491			4,480,254			4,957,049				4,563,508			4,457,193			4,461,201			4,470,108
Dividends paid per common share	$	2.24		$	2.40		$	0.32			$	0.64		$	0.64		$	0.64		$	0.64

Performance ratios
Return on average assets		0.22	%		0.94	%		(0.37	)	%		0.25	%		0.78	%		0.28	%		0.06		%
Return on average common shareholders’ equity		1.80			11.08			(6.68	)			1.97			9.25			2.90			0.60

At period end
Book value per share of common stock	$	27.77		$	32.09		$	27.77			$	30.01		$	31.11		$	31.22		$	32.09
Tangible book value per share of common stock ⁽²⁾		11.44			14.62			11.44				12.08			13.65			13.73			14.62
Market price per share of common stock:
Closing price	$	14.08		$	41.26		$	14.08			$	35.00		$	23.87		$	37.91		$	41.26
High closing price for the period		45.03			54.05			38.13				37.48			40.86			45.03			52.71
Low closing price for the period		11.25			41.10			11.25				18.52			23.87			35.31			41.10
Market capitalization		70,645			183,107			70,645				159,672			106,292			168,806			183,107

Number of banking centers - domestic		6,139			6,149			6,139				6,139			6,131			6,148			6,149
Number of branded ATMs - domestic		18,685			18,753			18,685				18,584			18,531			18,491			18,753
Full-time equivalent employees		243,075			209,718			243,075				249,993			206,587			209,096			209,718

(1)

Due to the net loss for the three months ended December 31, 2008, the impact of antidilutive equity instruments have been excluded from diluted earnings per share and average diluted common shares.

(2)

Tangible book value per share of common stock is a non-GAAP measure. For a corresponding reconciliation of common tangible shareholders’ equity to a GAAP financial measure, see Supplemental Financial Data on page 3. We believe the use of this non-GAAP measure provides additional clarity in assessing the results of the Corporation.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		2

Bank of America Corporation and Subsidiaries

Supplemental Financial Data

(Dollars in millions)

Fully taxable-equivalent basis data


									Fourth Quarter 2008				Third Quarter 2008				Second Quarter 2008				First Quarter 2008				Fourth Quarter 2007
	Year Ended December 31
	2008				2007
Net interest income	$	46,554			$	36,190			$	13,406			$	11,920			$	10,937			$	10,291			$	9,815
Total revenue, net of interest expense		73,976				68,582				15,980				19,899				20,726				17,371				13,454
Net interest yield		2.98		%		2.60		%		3.31		%		2.93		%		2.92		%		2.73		%		2.61		%
Efficiency ratio		56.14				54.71				68.51				58.60				46.60				53.32				77.36
Reconciliation to GAAP financial measures Supplemental financial data presented on an operating basis is a basis of presentation not defined by accounting principles generally accepted in the United States (GAAP) that excludes merger and restructuring charges. We believe that the exclusion of merger and restructuring charges, which represent events outside our normal operations, provides a meaningful period-to-period comparison and is more reflective of normalized operations. Return on average common shareholders’ equity and return on average tangible shareholders’ equity utilize non-GAAP allocation methodologies. Return on average common shareholders’ equity measures the earnings contribution of a unit as a percentage of the shareholders’ equity allocated to that unit. Return on average tangible shareholders’ equity measures the earnings contribution of the Corporation as a percentage of shareholders’ equity reduced by goodwill. These measures are used to evaluate our use of equity (i.e., capital) at the individual unit level and are integral components in the analytics for resource allocation. The efficiency ratio measures the costs expended to generate a dollar of revenue. 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 December 31, 2008, September 30, 2008, June 30, 2008, March 31, 2008 and December 31, 2007, and the years ended December 31, 2008 and 2007. Reconciliation of net income to operating earnings
									Fourth Quarter 2008				Third Quarter 2008				Second Quarter 2008				First Quarter 2008				Fourth Quarter 2007
	Year Ended December 31
	2008				2007
Net income (loss)	$	4,008			$	14,982			$	(1,789	)		$	1,177			$	3,410			$	1,210			$	268
Merger and restructuring charges		935				410				306				247				212				170				140
Related income tax benefit		(305	)			(152	)			(100	)			(64	)			(78	)			(63	)			(52	)

Operating earnings (loss)	$	4,638			$	15,240			$	(1,583	)		$	1,360			$	3,544			$	1,317			$	356


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

Ending common shareholders’ equity	$	139,351			$	142,394			$	139,351			$	136,888			$	138,540			$	139,003			$	142,394
Ending goodwill		(81,934	)			(77,530	)			(81,934	)			(81,756	)			(77,760	)			(77,872	)			(77,530	)

Ending common tangible shareholders’ equity	$	57,417			$	64,864			$	57,417			$	55,132			$	60,780			$	61,131			$	64,864


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

Average shareholders’ equity	$	164,831			$	136,662			$	176,566			$	166,454			$	161,428			$	154,728			$	144,924
Average goodwill		(79,827	)			(69,333	)			(81,841	)			(81,977	)			(77,815	)			(77,628	)			(78,308	)

Average tangible shareholders’ equity	$	85,004			$	67,329			$	94,725			$	84,477			$	83,613			$	77,100			$	66,616


Operating basis

Return on average assets		0.25		%		0.95		%		(0.32	)	%		0.28		%		0.81		%		0.30		%		0.08		%
Return on average common shareholders’ equity		2.25				11.27				(6.10	)			2.48				9.63				3.20				0.85
Return on average tangible shareholders’ equity		5.46				22.64				(6.65	)			6.40				17.05				6.87				2.12
Efficiency ratio ⁽¹⁾		54.88				54.12				66.60				57.36				45.58				52.35				76.32

(1)

Fully taxable-equivalent basis

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation		3

Bank of America Corporation and Subsidiaries

Consolidated Statement of Income

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


							Fourth Quarter 2008 ⁽¹⁾			Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007
	Year Ended December 31
	2008			2007
Interest income
Interest and fees on loans and leases	$	56,017		$	55,681		$	14,220		$	14,261		$	13,121		$	14,415		$	15,363
Interest on debt securities		13,146			9,784			3,851			3,621			2,900			2,774			2,738
Federal funds sold and securities purchased under agreements to resell		3,313			7,722			393			912			800			1,208			1,748
Trading account assets		9,057			9,417			2,120			2,344			2,229			2,364			2,358
Other interest income		4,151			4,700			1,018			1,058			977			1,098			1,272

Total interest income		85,684			87,304			21,602			22,196			20,027			21,859			23,479

Interest expense
Deposits		15,250			18,093			3,296			3,846			3,520			4,588			5,253
Short-term borrowings		12,362			21,967			1,910			3,223			3,087			4,142			5,598
Trading account liabilities		2,774			3,444			524			661			749			840			825
Long-term debt		9,938			9,359			2,766			2,824			2,050			2,298			2,638

Total interest expense		40,324			52,863			8,496			10,554			9,406			11,868			14,314

Net interest income		45,360			34,441			13,106			11,642			10,621			9,991			9,165

Noninterest income
Card income		13,314			14,077			3,102			3,122			3,451			3,639			3,591
Service charges		10,316			8,908			2,559			2,722			2,638			2,397			2,415
Investment and brokerage services		4,972			5,147			1,072			1,238			1,322			1,340			1,427
Investment banking income		2,263			2,345			618			474			695			476			544
Equity investment income (loss)		539			4,064			(791	)		(316	)		592			1,054			317
Trading account profits (losses)		(5,911	)		(4,889	)		(4,101	)		(384	)		357			(1,783	)		(5,380	)
Mortgage banking income		4,087			902			1,523			1,674			439			451			386
Insurance premiums		1,833			761			741			678			217			197			213
Gains on sales of debt securities		1,124			180			762			10			127			225			109
Other income (loss)		(5,115	)		897			(2,911	)		(1,239	)		(49	)		(916	)		17

Total noninterest income		27,422			32,392			2,574			7,979			9,789			7,080			3,639

Total revenue, net of interest expense		72,782			66,833			15,680			19,621			20,410			17,071			12,804

Provision for credit losses		26,825			8,385			8,535			6,450			5,830			6,010			3,310

Noninterest expense
Personnel		18,371			18,753			4,027			5,198			4,420			4,726			4,822
Occupancy		3,626			3,038			1,003			926			848			849			827
Equipment		1,655			1,391			447			440			372			396			373
Marketing		2,368			2,356			555			605			571			637			712
Professional fees		1,592			1,174			521			424			362			285			404
Amortization of intangibles		1,834			1,676			477			464			447			446			467
Data processing		2,546			1,962			641			755			587			563			590
Telecommunications		1,106			1,013			292			288			266			260			263
Other general operating		7,496			5,751			2,678			2,313			1,574			931			1,811
Merger and restructuring charges		935			410			306			247			212			170			140

Total noninterest expense		41,529			37,524			10,947			11,660			9,659			9,263			10,409

Income (loss) before income taxes		4,428			20,924			(3,802	)		1,511			4,921			1,798			(915	)
Income tax expense (benefit)		420			5,942			(2,013	)		334			1,511			588			(1,183	)

Net income (loss)	$	4,008		$	14,982		$	(1,789	)	$	1,177		$	3,410		$	1,210		$	268

Preferred stock dividends		1,452			182			603			473			186			190			53

Net income (loss) applicable to common shareholders	$	2,556		$	14,800		$	(2,392	)	$	704		$	3,224		$	1,020		$	215

Per common share information
Earnings (loss)	$	0.56		$	3.35		$	(0.48	)	$	0.15		$	0.73		$	0.23		$	0.05
Diluted earnings (loss)		0.55			3.30			(0.48	)		0.15			0.72			0.23			0.05
Dividends paid		2.24			2.40			0.32			0.64			0.64			0.64			0.64

Average common shares issued and outstanding		4,592,085			4,423,579			4,957,049			4,543,963			4,435,719			4,427,823			4,421,554

Average diluted common shares issued and outstanding		4,612,491			4,480,254			4,957,049			4,563,508			4,457,193			4,461,201			4,470,108

(1)

Due to the net loss for the three months ended December 31, 2008, the impact of antidilutive equity instruments have been excluded from diluted earnings per share and average diluted common shares.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation		4

Bank of America Corporation and Subsidiaries

Consolidated Balance Sheet

(Dollars in millions)


	December 31 2008		September 30 2008		December 31 2007
	December 31 2008		September 30 2008		December 31 2007
Assets
Cash and cash equivalents	$ 32,857		$ 39,341		$ 42,531
Time deposits placed and other short-term investments	9,570		11,709		11,773
Federal funds sold and securities purchased under agreements to resell	82,478		87,038		129,552
Trading account assets	159,522		174,859		162,064
Derivative assets	62,252		45,792		34,662
Debt securities	277,589		258,677		214,056
Loans and leases, net of allowance:
Loans and leases	931,446		942,676		876,344
Allowance for loan and lease losses	(23,071	)	(20,346	)	(11,588	)
Total loans and leases, net of allowance	908,375		922,330		864,756
Premises and equipment, net	13,161		13,000		11,240
Mortgage servicing rights (includes $12,733, $20,811 and $3,053 measured at fair value)	13,056		21,131		3,347
Goodwill	81,934		81,756		77,530
Intangible assets	8,535		9,167		10,296
Loans held-for-sale	31,454		27,414		34,424
Other assets	137,160		138,963		119,515
Total assets	$1,817,943		$1,831,177		$1,715,746

Liabilities
Deposits in domestic offices:
Noninterest-bearing	$ 213,994		$ 201,025		$ 188,466
Interest-bearing	576,938		577,503		501,882
Deposits in foreign offices:
Noninterest-bearing	4,004		3,524		3,761
Interest-bearing	88,061		91,999		111,068
Total deposits	882,997		874,051		805,177
Federal funds purchased and securities sold under agreements to repurchase	206,598		225,729		221,435
Trading account liabilities	57,287		68,229		77,342
Derivative liabilities	30,709		26,466		22,423
Commercial paper and other short-term borrowings	158,056		145,812		191,089
Accrued expenses and other liabilities (includes $421, $427 and $518 of reserve for unfunded lending commitments)	36,952		72,141		53,969
Long-term debt	268,292		257,710		197,508
Total liabilities	1,640,891		1,670,138		1,568,943
Shareholders’ equity
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 8,202,042, 7,602,067 and 185,067 shares	37,701		24,151		4,409
Common stock and additional paid-in capital, $0.01 par value; authorized - 10,000,000,000, 7,500,000,000, and 7,500,000,000 shares; issued and outstanding - 5,017,435,592, 4,562,054,554 and 4,437,885,419 shares	76,766		65,361		60,328
Retained earnings	73,823		77,695		81,393
Accumulated other comprehensive income (loss)	(10,825	)	(5,647	)	1,129
Other	(413	)	(521	)	(456	)
Total shareholders’ equity	177,052		161,039		146,803
Total liabilities and shareholders’ equity	$1,817,943		$1,831,177		$1,715,746

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation		5

Bank of America Corporation and Subsidiaries

Capital Management

(Dollars in millions)


	Fourth Quarter 2008 ⁽¹⁾			Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007


Risk-based capital:
Tier 1 capital	$	120,804		$	100,248		$	101,439		$	93,899		$	83,372
Total capital		171,644			153,318			154,983			146,531			133,720
Risk-weighted assets		1,320,824			1,328,084			1,230,307			1,250,942			1,212,905
Tier 1 capital ratio		9.15	%		7.55	%		8.25	%		7.51	%		6.87	%
Total capital ratio		13.00			11.54			12.60			11.71			11.02
Tangible equity ratio ⁽²⁾		5.01			4.03			4.62			4.16			3.62
Tangible common equity ratio ⁽³⁾		2.83			2.64			3.14			3.11			3.35
Tier 1 leverage ratio		6.44			5.51			6.07			5.59			5.04

(1)

Preliminary data on risk-based capital

(2)

Tangible equity ratio equals shareholders’ equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets.

(3)

Tangible common equity ratio equals common shareholders’ equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets.

Share Repurchase Program

No common shares were repurchased in the fourth quarter of 2008.

75.0	million shares remain outstanding under the 2008 authorized program.

381 thousand shares were issued in the fourth quarter of 2008 under employee stock plans.

455.0 million common stock shares were issued to raise capital in the fourth quarter of 2008.

LOGO

*	Preliminary data on risk-based capital

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation		6

Bank of America Corporation and Subsidiaries

Core Net Interest Income - Managed Basis

(Dollars in millions)


	Year Ended December 31								Fourth Quarter 2008				Third Quarter 2008				Second Quarter 2008				First Quarter 2008				Fourth Quarter 2007
	2008				2007				Fourth Quarter 2008				Third Quarter 2008				Second Quarter 2008				First Quarter 2008				Fourth Quarter 2007
Net interest income ⁽¹⁾
As reported	$	46,554			$	36,190			$	13,406			$	11,920			$	10,937			$	10,291			$	9,815
Impact of market-based net interest income ⁽²⁾		(6,011	)			(2,718	)			(1,886	)			(1,448	)			(1,369	)			(1,308	)			(810	)

Core net interest income		40,543				33,472				11,520				10,472				9,568				8,983				9,005
Impact of securitizations ⁽³⁾		8,910				7,841				2,256				2,310				2,254				2,090				2,021

Core net interest income - managed basis	$	49,453			$	41,313			$	13,776			$	12,782			$	11,822			$	11,073			$	11,026


Average earning assets
As reported	$	1,562,729			$	1,390,192			$	1,616,673			$	1,622,466			$	1,500,234			$	1,510,295			$	1,502,998
Impact of market-based earning assets ⁽²⁾		(368,751	)			(412,587	)			(318,818	)			(377,630	)			(375,274	)			(403,733	)			(407,315	)

Core average earning assets		1,193,978				977,605				1,297,855				1,244,836				1,124,960				1,106,562				1,095,683
Impact of securitizations		100,145				103,371				93,189				101,743				103,131				102,577				104,385

Core average earning assets - managed basis	$	1,294,123			$	1,080,976			$	1,391,044			$	1,346,579			$	1,228,091			$	1,209,139			$	1,200,068


Net interest yield contribution ^{(1, 4)}
As reported		2.98		%		2.60		%		3.31		%		2.93		%		2.92		%		2.73		%		2.61		%
Impact of market-based activities ⁽²⁾		0.42				0.82				0.23				0.43				0.49				0.52				0.67

Core net interest yield on earning assets		3.40				3.42				3.54				3.36				3.41				3.25				3.28
Impact of securitizations		0.42				0.40				0.41				0.43				0.45				0.42				0.38

Core net interest yield on earning assets - managed basis		3.82		%		3.82		%		3.95		%		3.79		%		3.86		%		3.67		%		3.66		%

(1)

Fully taxable-equivalent basis

(2)

Represents the impact of market-based amounts included in the Capital Markets and Advisory Services business within Global Corporate and Investment Banking. For the year ended December 31, 2008 and 2007, the impact of market-based net interest income excludes $113 million and $70 million, and for the three months ended December 31, 2008, September 30, 2008, June 30, 2008, March 31, 2008 and December 31, 2007, respectively, excludes $36 million, $25 million, $25 million, $27 million and $26 million of net interest income on loans for which the fair value option has been elected and is not considered market-based income.

(3)

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

(4)

Calculated on an annualized basis.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation		7

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Fourth Quarter 2008						Third Quarter 2008						Fourth Quarter 2007
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Earning assets
Time deposits placed and other short-term investments	$	10,511	$	158	5.97	%	$	11,361	$	101	3.54	%	$	10,459	$	122	4.63	%
Federal funds sold and securities purchased under agreements to resell		104,843		393	1.50			136,322		912	2.67			151,938		1,748	4.59
Trading account assets		205,698		2,170	4.21			191,757		2,390	4.98			190,700		2,422	5.06
Debt securities ⁽¹⁾		280,942		3,913	5.57			266,013		3,672	5.52			206,873		2,795	5.40
Loans and leases ⁽²⁾:
Residential mortgage		253,468		3,581	5.65			260,748		3,712	5.69			277,058		3,972	5.73
Home equity		152,035		1,969	5.17			151,142		2,124	5.59			112,369		2,043	7.21
Discontinued real estate		21,324		459	8.60			22,031		399	7.25			n/a		n/a	n/a
Credit card - domestic		64,906		1,784	10.94			63,414		1,682	10.55			60,063		1,781	11.76
Credit card - foreign		17,211		521	12.05			17,075		535	12.47			14,329		464	12.86
Direct/Indirect consumer⁽³⁾		83,331		1,714	8.18			85,392		1,790	8.34			75,138		1,658	8.75
Other consumer ⁽⁴⁾		3,544		70	7.83			3,723		80	8.78			4,206		71	6.77
Total consumer		595,819		10,098	6.76			603,525		10,322	6.82			543,163		9,989	7.32
Commercial - domestic		226,095		2,890	5.09			224,117		2,852	5.06			213,200		3,704	6.89
Commercial real estate ⁽⁵⁾		64,586		706	4.35			63,220		727	4.57			59,702		1,053	6.99
Commercial lease financing		22,069		242	4.40			22,585		53	0.93			22,239		574	10.33
Commercial - foreign		32,994		373	4.49			33,467		377	4.48			29,815		426	5.67
Total commercial		345,744		4,211	4.85			343,389		4,009	4.64			324,956		5,757	7.03
Total loans and leases		941,563		14,309	6.06			946,914		14,331	6.03			868,119		15,746	7.21
Other earning assets		73,116		959	5.22			70,099		1,068	6.07			74,909		1,296	6.89
Total earning assets ⁽⁶⁾		1,616,673		21,902	5.40			1,622,466		22,474	5.52			1,502,998		24,129	6.39
Cash and cash equivalents		77,388						36,030						33,714
Other assets, less allowance for loan and lease losses		254,793						247,195						205,755
Total assets	$	1,948,854					$	1,905,691					$	1,742,467

Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	31,561	$	58	0.73	%	$	32,297	$	58	0.72	%	$	31,961	$	50	0.63	%
NOW and money market deposit accounts		285,390		813	1.13			278,520		973	1.39			240,914		1,334	2.20
Consumer CDs and IRAs		229,410		1,835	3.18			218,862		1,852	3.37			183,910		2,179	4.70
Negotiable CDs, public funds and other time deposits		36,510		270	2.94			36,039		291	3.21			34,997		420	4.76
Total domestic interest-bearing deposits		582,871		2,976	2.03			565,718		3,174	2.23			491,782		3,983	3.21
Foreign interest-bearing deposits:
Banks located in foreign countries		41,398		125	1.20			36,230		266	2.91			45,050		557	4.91
Governments and official institutions		13,738		30	0.87			11,847		72	2.43			16,506		192	4.62
Time, savings and other		48,836		165	1.34			48,209		334	2.76			51,919		521	3.98
Total foreign interest-bearing deposits		103,972		320	1.22			96,286		672	2.78			113,475		1,270	4.44
Total interest-bearing deposits		686,843		3,296	1.91			662,004		3,846	2.31			605,257		5,253	3.44
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings		459,743		1,910	1.65			465,511		3,223	2.76			456,530		5,598	4.87
Trading account liabilities		70,859		524	2.94			77,271		661	3.40			81,500		825	4.02
Long-term debt		255,709		2,766	4.32			264,934		2,824	4.26			196,444		2,638	5.37
Total interest-bearing liabilities ⁽⁶⁾		1,473,154		8,496	2.30			1,469,720		10,554	2.86			1,339,731		14,314	4.25
Noninterest-bearing sources:
Noninterest-bearing deposits		205,298						195,841						176,368
Other liabilities		93,836						73,676						81,444
Shareholders’ equity		176,566						166,454						144,924
Total liabilities and shareholders’ equity	$	1,948,854					$	1,905,691					$	1,742,467
Net interest spread					3.10	%					2.66	%					2.14	%
Impact of noninterest-bearing sources					0.21						0.27						0.47
Net interest income/yield on earning assets			$	13,406	3.31	%			$	11,920	2.93	%			$	9,815	2.61	%

(1)

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

(2)

Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis. We account for acquired impaired loans in accordance with SOP 03-3. Loans accounted for in accordance with SOP 03-3 were written down to fair value upon acquisition and acrete interest income over the remaining life of the loan.

(3)

Includes foreign consumer loans of $2.0 billion and $2.6 billion in the fourth and third quarters of 2008, and $3.6 billion in the fourth quarter of 2007.

(4)

Includes consumer finance loans of $2.7 billion in both the fourth and third quarters of 2008, and $3.1 billion in the fourth quarter of 2007; and other foreign consumer loans of $654 million and $725 million in the fourth and third quarters of 2008, and $845 million in the fourth quarter of 2007.

(5)

Includes domestic commercial real estate loans of $63.6 billion and $62.2 billion in the fourth and third quarters of 2008, and $58.5 billion in the fourth quarter of 2007.

(6)

Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $41 million and $12 million in the fourth and third quarters of 2008, and $134 million in the fourth quarter of 2007. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities $237 million and $86 million in the fourth and third quarters of 2008, and $201 million in the fourth quarter of 2007.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation		8

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Fourth Quarter 2008								Third Quarter 2008								Fourth Quarter 2007
	Average Balance		Interest Income/ Expense			Yield/ Rate			Average Balance		Interest Income/ Expense			Yield/ Rate			Average Balance		Interest Income/ Expense			Yield/ Rate
Earning assets
Time deposits placed and other short-term investments ⁽²⁾	$	10,511	$	162		6.13		%	$	11,361	$	105		3.68	%		$	10,459	$	126		4.79		%
Federal funds sold and securities purchased under agreements to resell⁽²⁾		104,843		414		1.57				136,322		948		2.78				151,938		1,843		4.84
Trading account assets		205,698		2,170		4.21				191,757		2,390		4.98				190,700		2,422		5.06
Debt securities ⁽²⁾		280,942		3,928		5.59				266,013		3,675		5.52				206,873		2,795		5.40
Loans and leases:
Residential mortgage		253,468		3,581		5.65				260,748		3,712		5.69				277,058		3,972		5.73
Home equity		152,035		1,969		5.17				151,142		2,124		5.59				112,369		2,043		7.21
Discontinued real estate		21,324		459		8.60				22,031		399		7.25				n/a		n/a		n/a
Credit card - domestic		64,906		1,784		10.94				63,414		1,682		10.55				60,063		1,781		11.76
Credit card - foreign		17,211		521		12.05				17,075		535		12.47				14,329		464		12.86
Direct/Indirect consumer		83,331		1,714		8.18				85,392		1,790		8.34				75,138		1,658		8.75
Other consumer		3,544		70		7.83				3,723		80		8.78				4,206		71		6.77
Total consumer		595,819		10,098		6.76				603,525		10,322		6.82				543,163		9,989		7.32
Commercial - domestic⁽²⁾		226,095		2,893		5.09				224,117		2,820		5.01				213,200		3,731		6.94
Commercial real estate		64,586		706		4.35				63,220		727		4.57				59,702		1,053		6.99
Commercial lease financing		22,069		242		4.40				22,585		53		0.93				22,239		574		10.33
Commercial - foreign ⁽²⁾		32,994		373		4.49				33,467		377		4.48				29,815		425		5.67
Total commercial		345,744		4,214		4.85				343,389		3,977		4.61				324,956		5,783		7.07
Total loans and leases		941,563		14,312		6.06				946,914		14,299		6.02				868,119		15,772		7.22
Other earning assets⁽²⁾		73,116		957		5.22				70,099		1,069		6.07				74,909		1,305		6.93
Total earning assets - excluding hedge impact		1,616,673		21,943		5.41				1,622,466		22,486		5.53				1,502,998		24,263		6.43
Net hedge income (expense) on assets				(41	)							(12	)							(134	)
Total earning assets - including hedge impact		1,616,673		21,902		5.40				1,622,466		22,474		5.52				1,502,998		24,129		6.39
Cash and cash equivalents		77,388								36,030								33,714
Other assets, less allowance for loan and lease losses		254,793								247,195								205,755
Total assets	$	1,948,854							$	1,905,691							$	1,742,467

Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	31,561	$	58		0.73		%	$	32,297	$	58		0.72		%	$	31,961	$	50		0.63		%
NOW and money market deposit accounts⁽²⁾		285,390		813		1.13				278,520		973		1.39				240,914		1,329		2.19
Consumer CDs and IRAs⁽²⁾		229,410		1,765		3.06				218,862		1,765		3.21				183,910		2,033		4.38
Negotiable CDs, public funds and other time deposits⁽²⁾		36,510		267		2.90				36,039		288		3.18				34,997		418		4.73
Total domestic interest-bearing deposits		582,871		2,903		1.98				565,718		3,084		2.17				491,782		3,830		3.09
Foreign interest-bearing deposits:
Banks located in foreign countries⁽²⁾		41,398		119		1.14				36,230		279		3.07				45,050		553		4.87
Governments and official institutions		13,738		30		0.87				11,847		72		2.43				16,506		192		4.62
Time, savings and other		48,836		165		1.34				48,209		334		2.76				51,919		521		3.98
Total foreign interest-bearing deposits		103,972		314		1.20				96,286		685		2.84				113,475		1,266		4.43
Total interest-bearing deposits		686,843		3,217		1.86				662,004		3,769		2.27				605,257		5,096		3.34
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings ⁽²⁾		459,743		1,549		1.34				465,511		2,938		2.51				456,530		5,638		4.90
Trading account liabilities		70,859		524		2.94				77,271		661		3.40				81,500		825		4.02
Long-term debt⁽²⁾		255,709		2,969		4.64				264,934		3,100		4.68				196,444		2,554		5.20
Total interest-bearing liabilities - excluding hedge impact		1,473,154		8,259		2.23				1,469,720		10,468		2.84				1,339,731		14,113		4.19
Net hedge (income) expense on liabilities				237								86								201
Total interest-bearing liabilities - including hedge impact		1,473,154		8,496		2.30				1,469,720		10,554		2.86				1,339,731		14,314		4.25
Noninterest-bearing sources:
Noninterest-bearing deposits		205,298								195,841								176,368
Other liabilities		93,836								73,676								81,444
Shareholders’ equity		176,566								166,454								144,924
Total liabilities and shareholders’ equity	$	1,948,854							$	1,905,691							$	1,742,467
Net interest spread						3.18								2.69								2.24
Impact of noninterest-bearing sources						0.21								0.27								0.47
Net interest income/yield on earning assets - excluding hedge impact			$	13,684		3.39		%			$	12,018		2.96		%			$	10,150		2.71		%
Net impact of hedge income (expense)				(278	)	(0.08	)					(98	)	(0.03	)					(335	)	(0.10	)
Net interest income/yield on earning assets			$	13,406		3.31		%			$	11,920		2.93		%			$	9,815		2.61		%

(1)

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

(2)

The following presents the impact of interest rate risk management derivatives on interest income and interest expense.

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


	Fourth Quarter 2008			Third Quarter 2008			Fourth Quarter 2007
Time deposits placed and other short-term investments	$	(4	)	$	(4	)	$	(4	)
Federal funds sold and securities purchased under agreements to resell		(21	)		(36	)		(95	)
Debt securities		(15	)		(3	)		—
Commercial - domestic		(3	)		32			(27	)
Commercial - foreign		—			—			1
Other earning assets		2			(1	)		(9	)

Net hedge income (expense) on assets	$	(41	)	$	(12	)	$	(134	)


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

NOW and money market deposit accounts	$	—		$	—		$	5
Consumer CDs and IRAs		70			87			146
Negotiable CDs, public funds and other time deposits		3			3			2
Banks located in foreign countries		6			(13	)		4
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings		361			285			(40	)
Long-term debt		(203	)		(276	)		84

Net hedge (income) expense on liabilities	$	237		$	86		$	201

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation		9

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Year Ended December 31
	2008						2007
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Earning assets
Time deposits placed and other short-term investments	$	10,696	$	440	4.11	%	$	13,152	$	627	4.77	%
Federal funds sold and securities purchased under agreements to resell		128,053		3,313	2.59			155,828		7,722	4.96
Trading account assets		193,631		9,259	4.78			187,287		9,747	5.20
Debt securities ⁽¹⁾		250,551		13,383	5.34			186,466		10,020	5.37
Loans and leases ⁽²⁾:
Residential mortgage		260,213		14,671	5.64			264,650		15,112	5.71
Home equity		135,091		7,592	5.62			98,765		7,385	7.48
Discontinued real estate		10,898		858	7.87			n/a		n/a	n/a
Credit card - domestic		63,318		6,843	10.81			57,883		7,225	12.48
Credit card - foreign		16,527		2,042	12.36			12,359		1,502	12.15
Direct/Indirect consumer⁽³⁾		82,516		6,934	8.40			70,009		6,002	8.57
Other consumer ⁽⁴⁾		3,816		321	8.41			4,510		389	8.64

Total consumer		572,379		39,261	6.86			508,176		37,615	7.40

Commercial - domestic		220,561		11,702	5.31			180,102		12,884	7.15
Commercial real estate ⁽⁵⁾		63,208		3,057	4.84			42,950		3,145	7.32
Commercial lease financing		22,290		799	3.58			20,435		1,212	5.93
Commercial - foreign		32,440		1,503	4.63			24,491		1,452	5.93

Total commercial		338,499		17,061	5.04			267,978		18,693	6.98

Total loans and leases		910,878		56,322	6.18			776,154		56,308	7.25

Other earning assets		68,920		4,161	6.04			71,305		4,629	6.49

Total earning assets ⁽⁶⁾		1,562,729		86,878	5.56			1,390,192		89,053	6.41

Cash and cash equivalents		45,354						33,091
Other assets, less allowance for loan and lease losses		235,896						178,790

Total assets	$	1,843,979					$	1,602,073

Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	32,204	$	230	0.71	%	$	32,316	$	188	0.58	%
NOW and money market deposit accounts		267,818		3,781	1.41			220,207		4,361	1.98
Consumer CDs and IRAs		203,887		7,404	3.63			167,801		7,817	4.66
Negotiable CDs, public funds and other time deposits		32,264		1,076	3.33			20,557		974	4.74

Total domestic interest-bearing deposits		536,173		12,491	2.33			440,881		13,340	3.03

Foreign interest-bearing deposits:
Banks located in foreign countries		37,657		1,063	2.82			42,788		2,174	5.08
Governments and official institutions		13,004		311	2.39			16,523		812	4.91
Time, savings and other		51,363		1,385	2.70			43,443		1,767	4.07

Total foreign interest-bearing deposits		102,024		2,759	2.70			102,754		4,753	4.63

Total interest-bearing deposits		638,197		15,250	2.39			543,635		18,093	3.33

Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings		455,710		12,362	2.71			424,814		21,967	5.17
Trading account liabilities		75,270		2,774	3.69			82,721		3,444	4.16
Long-term debt		231,235		9,938	4.30			169,855		9,359	5.51

Total interest-bearing liabilities ⁽⁶⁾		1,400,412		40,324	2.88			1,221,025		52,863	4.33

Noninterest-bearing sources:
Noninterest-bearing deposits		192,947						173,547
Other liabilities		85,789						70,839
Shareholders’ equity		164,831						136,662

Total liabilities and shareholders’ equity	$	1,843,979					$	1,602,073

Net interest spread					2.68	%					2.08	%
Impact of noninterest-bearing sources					0.30						0.52

Net interest income/yield on earning assets			$	46,554	2.98	%			$	36,190	2.60	%

(1)

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

(2)

(3)

Includes foreign consumer loans of $2.7 billion and $3.8 billion for the year ended December 31, 2008 and 2007.

(4)

Includes consumer finance loans of $2.8 billion and $3.2 billion, and other foreign consumer loans of $774 million and $1.1 billion for the year ended December 31, 2008 and 2007.

(5)

Includes domestic commercial real estate loans of $62.1 billion and $42.1 billion for the year ended December 31, 2008 and 2007.

(6)

Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $260 million and $542 million for the year ended December 31, 2008 and 2007. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities $409 million and $813 million for the year ended December 31, 2008 and 2007.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation		10

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Year Ended December 31
	2008								2007
	Average Balance		Interest Income/ Expense			Yield/ Rate			Average Balance		Interest Income/ Expense			Yield/ Rate
Earning assets
Time deposits placed and other short-term investments⁽²⁾	$	10,696	$	456		4.26		%	$	13,152	$	672		5.11		%
Federal funds sold and securities purchased under agreements to resell⁽²⁾		128,053		3,507		2.74				155,828		8,120		5.21
Trading account assets		193,631		9,259		4.78				187,287		9,747		5.20
Debt securities ⁽²⁾		250,551		13,402		5.35				186,466		10,036		5.38
Loans and leases:
Residential mortgage		260,213		14,671		5.64				264,650		15,112		5.71
Home equity		135,091		7,592		5.62				98,765		7,385		7.48
Discontinued real estate		10,898		858		7.87				n/a		n/a		n/a
Credit card- domestic		63,318		6,843		10.81				57,883		7,225		12.48
Credit card - foreign		16,527		2,042		12.36				12,359		1,502		12.15
Direct/Indirect consumer		82,516		6,934		8.40				70,009		6,002		8.57
Other consumer		3,816		321		8.41				4,510		389		8.64
Total consumer		572,379		39,261		6.86				508,176		37,615		7.40
Commercial - domestic⁽²⁾		220,561		11,733		5.32				180,102		12,932		7.18
Commercial real estate		63,208		3,057		4.84				42,950		3,145		7.32
Commercial lease financing		22,290		799		3.58				20,435		1,212		5.93
Commercial - foreign ⁽²⁾		32,440		1,503		4.63				24,491		1,450		5.92
Total commercial		338,499		17,092		5.05				267,978		18,739		6.99
Total loans and leases		910,878		56,353		6.19				776,154		56,354		7.26
Other earning assets⁽²⁾		68,920		4,161		6.04				71,305		4,666		6.54
Total earning assets - excluding hedge impact		1,562,729		87,138		5.58				1,390,192		89,595		6.44
Net hedge income (expense) on assets				(260	)							(542	)
Total earning assets - including hedge impact		1,562,729		86,878		5.56				1,390,192		89,053		6.41
Cash and cash equivalents		45,354								33,091
Other assets, less allowance for loan and lease losses		235,896								178,790
Total assets	$	1,843,979							$	1,602,073

Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	32,204	$	230		0.71		%	$	32,316	$	188		0.58		%
NOW and money market deposit accounts⁽²⁾		267,818		3,771		1.41				220,207		4,342		1.97
Consumer CDs and IRAs⁽²⁾		203,887		7,015		3.44				167,801		7,167		4.27
Negotiable CDs, public funds and other time deposits⁽²⁾		32,264		1,066		3.30				20,557		965		4.69
Total domestic interest-bearing deposits		536,173		12,082		2.25				440,881		12,662		2.87
Foreign interest-bearing deposits:
Banks located in foreign countries⁽²⁾		37,657		1,068		2.84				42,788		2,168		5.07
Governments and official institutions		13,004		311		2.39				16,523		812		4.91
Time, savings and other		51,363		1,385		2.70				43,443		1,767		4.07
Total foreign interest-bearing deposits		102,024		2,764		2.71				102,754		4,747		4.62
Total interest-bearing deposits		638,197		14,846		2.33				543,635		17,409		3.20
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings ⁽²⁾		455,710		11,601		2.55				424,814		22,309		5.25
Trading account liabilities		75,270		2,774		3.69				82,721		3,444		4.16
Long-term debt⁽²⁾		231,235		10,694		4.62				169,855		8,888		5.23
Total interest-bearing liabilities - excluding hedge impact		1,400,412		39,915		2.85				1,221,025		52,050		4.26
Net hedge (income) expense on liabilities				409								813
Total interest-bearing liabilities - including hedge impact		1,400,412		40,324		2.88				1,221,025		52,863		4.33
Noninterest-bearing sources:
Noninterest-bearing deposits		192,947								173,547
Other liabilities		85,789								70,839
Shareholders’ equity		164,831								136,662
Total liabilities and shareholders’ equity	$	1,843,979							$	1,602,073
Net interest spread						2.73								2.18
Impact of noninterest-bearing sources						0.30								0.52
Net interest income/yield on earning assets - excluding hedge impact			$	47,223		3.03		%			$	37,545		2.70		%
Net impact of hedge income (expense)				(669	)	(0.05	)					(1,355	)	(0.10	)
Net interest income/yield on earning assets			$	46,554		2.98		%			$	36,190		2.60		%

(1)

(2)

The following presents the impact of interest rate risk management derivatives on interest income and interest expense.

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


	Year Ended December 31
	2008			2007
Time deposits placed and other short-term investments	$	(16	)	$	(45	)
Federal funds sold and securities purchased under agreements to resell		(194	)		(398	)
Debt securities		(19	)		(16	)
Commercial - domestic		(31	)		(48	)
Commercial - foreign		—			2
Other earning assets		—			(37	)

Net hedge income (expense) on assets	$	(260	)	$	(542	)


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

NOW and money market deposit accounts	$	10		$	19
Consumer CDs and IRAs		389			650
Negotiable CDs, public funds and other time deposits		10			9
Banks located in foreign countries		(5	)		6
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings		761			(342	)
Long-term debt		(756	)		471

Net hedge (income) expense on liabilities	$	409		$	813

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation		11

Bank of America Corporation and Subsidiaries

Global Consumer and Small Business Banking Segment Results ^{(1, 2)}

(Dollars in millions; except as noted)


	Year Ended December 31						Fourth Quarter 2008			Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007
	2008			2007			Fourth Quarter 2008			Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007
Net interest income ⁽³⁾	$	33,851		$	28,712		$	9,274		$	8,946		$	7,985		$	7,646		$	7,431
Noninterest income:
Card income		10,057			10,194			2,474			2,296			2,560			2,727			2,627
Service charges		6,807			6,007			1,677			1,822			1,743			1,565			1,623
Mortgage banking income		4,422			1,332			1,602			1,756			409			655			490
Insurance premiums		1,968			912			765			709			253			241			250
All other income		1,239			698			119			408			208			504			200

Total noninterest income		24,493			19,143			6,637			6,991			5,173			5,692			5,190

Total revenue, net of interest expense		58,344			47,855			15,911			15,937			13,158			13,338			12,621
Provision for credit losses ⁽⁴⁾		26,841			12,920			7,584			6,505			6,382			6,370			4,287
Noninterest expense		24,937			20,349			7,145			7,267			5,355			5,170			5,572

Income before income taxes		6,566			14,586			1,182			2,165			1,421			1,798			2,762
Income tax expense ⁽³⁾		2,332			5,224			347			826			503			656			863

Net income	$	4,234		$	9,362		$	835		$	1,339		$	918		$	1,142		$	1,899

Net interest yield ⁽³⁾		8.43	%		8.03	%		8.55	%		8.29	%		8.60	%		8.28	%		7.90	%
Return on average equity		5.78			14.81			4.13			6.70			5.51			6.95			11.23
Efficiency ratio ⁽³⁾		42.74			42.52			44.91			45.59			40.70			38.76			44.15

Balance sheet⁽²⁾

Average
Total loans and leases	$	350,264		$	294,030		$	364,114		$	369,890		$	337,403		$	329,282		$	317,629
Total earning assets ⁽⁵⁾		401,671			357,639			431,723			429,465			373,345			371,514			373,125
Total assets ⁽⁵⁾		471,223			409,999			511,451			509,811			431,665			431,100			428,380
Total deposits		370,961			330,661			396,497			397,073			344,061			345,647			342,926
Allocated equity		73,317			63,235			80,520			79,497			66,984			66,119			67,086

Period end

Total loans and leases	$	365,198		$	325,759		$	365,198		$	367,673		$	340,392		$	331,441		$	325,759
Total earning assets ⁽⁵⁾		434,568			381,520			434,568			445,602			375,462			380,282			381,520
Total assets ⁽⁵⁾		511,401			445,319			511,401			506,934			429,556			439,828			445,319
Total deposits		393,165			346,908			393,165			400,122			341,924			352,058			346,908

Period end (in billions)
Mortgage servicing portfolio ⁽⁶⁾	$	2,057.3		$	516.9		$	2,057.3		$	2,026.2		$	540.8		$	529.7		$	516.9

(1)

Global Consumer and Small Business Banking has three primary businesses: Deposits and Student Lending, Card Services, and Mortgage, Home Equity and Insurance Services. Deposits and Student Lending includes the results of ALM activities.

(2)

Presented on a managed basis, specifically Card Services. (See Exhibit A: Non-GAAP Reconciliations—Global Consumer and Small Business Banking—Reconciliation on page 40).

(3)

Fully taxable-equivalent basis

(4)

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

(5)

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

(6)

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

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation		12

Bank of America Corporation and Subsidiaries

Global Consumer and Small Business Banking Business Results

(Dollars in millions)


	Three Months Ended December 31, 2008
	Total⁽¹⁾			Deposits and Student Lending ⁽²⁾			Card Services⁽¹⁾				Mortgage, Home Equity and Insurance Services
Net interest income ⁽³⁾	$	9,274		$	3,080		$	5,206			$	988
Noninterest income:
Card income		2,474			601			1,872				1
Service charges		1,677			1,676			—				1
Mortgage banking income		1,602			—			—				1,602
Insurance premiums		765			—			119				646
All other income (loss)		119			7			119				(7	)

Total noninterest income		6,637			2,284			2,110				2,243

Total revenue, net of interest expense		15,911			5,364			7,316				3,231

Provision for credit losses⁽⁴⁾		7,584			243			5,716				1,625
Noninterest expense		7,145			2,484			1,922				2,739

Income (loss) before income taxes		1,182			2,637			(322	)			(1,133	)
Income tax expense (benefit) ⁽³⁾		347			884			(118	)			(419	)

Net income (loss)	$	835		$	1,753		$	(204	)		$	(714	)

Net interest yield ⁽³⁾		8.55	%		3.32	%		9.16		%		2.27		%
Return on average equity		4.13			31.87			(1.89	)			(18.05	)
Efficiency ratio ⁽³⁾		44.91			46.33			26.28				84.76
Average - total loans and leases	$	364,114			n/m		$	226,144			$	122,074
Average - total deposits		396,497		$	379,172			n/m				n/m
Period end - total assets ⁽⁵⁾		511,401			389,450			249,676				205,386

	Three Months Ended September 30, 2008
	Total⁽¹⁾			Deposits and Student Lending ⁽²⁾			Card Services ⁽¹⁾				Mortgage, Home Equity and Insurance Services
Net interest income ⁽³⁾	$	8,946		$	2,996		$	4,831			$	1,119
Noninterest income:
Card income		2,296			616			1,679				1
Service charges		1,822			1,821			—				1
Mortgage banking income		1,756			—			—				1,756
Insurance premiums		709			—			139				570
All other income		408			8			394				6

Total noninterest income		6,991			2,445			2,212				2,334

Total revenue, net of interest expense		15,937			5,441			7,043				3,453

Provision for credit losses⁽⁴⁾		6,505			237			5,462				806
Noninterest expense		7,267			2,360			2,161				2,746

Income (loss) before income taxes		2,165			2,844			(580	)			(99	)
Income tax expense (benefit)⁽³⁾		826			1,070			(207	)			(37	)

Net income (loss)	$	1,339		$	1,774		$	(373	)		$	(62	)

Net interest yield ⁽³⁾		8.29	%		3.22	%		8.25		%		3.01		%
Return on average equity		6.70			32.73			(3.57	)			(1.50	)
Efficiency ratio ⁽³⁾		45.59			43.36			30.68				79.52
Average - total loans and leases	$	369,890			n/m		$	232,578			$	122,057
Average - total deposits		397,073		$	379,298			n/m				n/m
Period end - total assets ⁽⁵⁾		506,934			396,941			253,671				180,398

	Three Months Ended December 31, 2007
	Total⁽¹⁾			Deposits and Student Lending ⁽²⁾			Card Services ⁽¹⁾				Mortgage, Home Equity and Insurance Services
Net interest income ⁽³⁾	$	7,431		$	2,602		$	4,288			$	541
Noninterest income:
Card income		2,627			565			2,060				2
Service charges		1,623			1,622			—				1
Mortgage banking income		490			—			—				490
Insurance premiums		250			—			154				96
All other income		200			54			88				58

Total noninterest income		5,190			2,241			2,302				647

Total revenue, net of interest expense		12,621			4,843			6,590				1,188

Provision for credit losses⁽⁴⁾		4,287			205			3,413				669
Noninterest expense		5,572			2,448			2,390				734

Income (loss) before income taxes		2,762			2,190			787				(215	)
Income tax expense (benefit)⁽³⁾		863			654			289				(80	)

Net income (loss)	$	1,899		$	1,536		$	498			$	(135	)

Net interest yield ⁽³⁾		7.90	%		3.01	%		7.73		%		2.27		%
Return on average equity		11.23			24.84			4.95				(20.52	)
Efficiency ratio ⁽³⁾		44.15			50.55			36.26				61.78
Average - total loans and leases	$	317,629			n/m		$	219,624			$	84,393
Average - total deposits		342,926		$	337,424			n/m				n/m
Period end - total assets ⁽⁵⁾		445,319			380,934			254,356				100,992

(1)

Presented on a managed basis, specifically Card Services.

(2)

For the three months ended December 31, 2008, September 30, 2008 and December 31, 2007, a total of $4.5 billion, $3.3 billion and $2.4 billion of deposits were migrated from Global Consumer and Small Business Banking to Global Wealth and Investment Management.

(3)

Fully taxable-equivalent basis

(4)

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

(5)

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

n/m = not meaningful

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation		13

Bank of America Corporation and Subsidiaries

Global Consumer and Small Business Banking Business Results

(Dollars in millions)


	Year Ended December 31, 2008
	Total⁽¹⁾			Deposits and Student Lending ⁽²⁾			Card Services ⁽¹⁾			Mortgage, Home Equity and Insurance Services
	Total⁽¹⁾			Deposits and Student Lending ⁽²⁾			Card Services ⁽¹⁾			Mortgage, Home Equity and Insurance Services
Net interest income ⁽³⁾	$	33,851		$	11,395		$	19,184		$	3,272
Noninterest income:
Card income		10,057			2,397			7,655			5
Service charges		6,807			6,803			—			4
Mortgage banking income		4,422			—			—			4,422
Insurance premiums		1,968			—			552			1,416
All other income		1,239			54			1,042			143

Total noninterest income		24,493			9,254			9,249			5,990

Total revenue, net of interest expense		58,344			20,649			28,433			9,262
Provision for credit losses⁽⁴⁾		26,841			1,014			19,550			6,277
Noninterest expense		24,937			9,869			8,120			6,948

Income (loss) before income taxes		6,566			9,766			763			(3,963	)
Income tax expense (benefit)⁽³⁾		2,332			3,556			242			(1,466	)

Net income (loss)	$	4,234		$	6,210		$	521		$	(2,497	)

Net interest yield ⁽³⁾		8.43	%		3.23	%		8.36	%		2.52		%
Return on average equity		5.78			28.37			1.25			(25.79	)
Efficiency ratio ⁽³⁾		42.74			47.79			28.56			75.02
Average - total loans and leases	$	350,264			n/m		$	229,347		$	105,733
Average - total deposits		370,961		$	359,023			n/m			n/m
Period end - total assets ⁽⁵⁾		511,401			389,450			249,676			205,386

	Year Ended December 31, 2007
				Deposits and Student Lending ⁽²⁾			Card Services ⁽¹⁾			Mortgage, Home Equity and Insurance Services
	Total⁽¹⁾			Deposits and Student Lending ⁽²⁾			Card Services ⁽¹⁾			Mortgage, Home Equity and Insurance Services
Net interest income ⁽³⁾	$	28,712		$	10,549		$	16,284		$	1,879
Noninterest income:
Card income		10,194			2,156			8,032			6
Service charges		6,007			6,003			—			4
Mortgage banking income		1,332			—			—			1,332
Insurance premiums		912			—			565			347
All other income		698			143			434			121

Total noninterest income		19,143			8,302			9,031			1,810

Total revenue, net of interest expense		47,855			18,851			25,315			3,689
Provision for credit losses⁽⁴⁾		12,920			601			11,305			1,014
Noninterest expense		20,349			9,411			8,358			2,580

Income before income taxes		14,586			8,839			5,652			95
Income tax expense ⁽³⁾		5,224			3,126			2,062			36

Net income	$	9,362		$	5,713		$	3,590		$	59

Net interest yield ⁽³⁾		8.03	%		3.19	%		7.80	%		2.35		%
Return on average equity		14.81			26.49			9.13			2.50
Efficiency ratio ⁽³⁾		42.52			49.93			33.02			69.93
Average - total loans and leases	$	294,030			n/m		$	208,094		$	72,825
Average - total deposits		330,661		$	324,777			n/m			n/m
Period end - total assets ⁽⁵⁾		445,319			380,934			254,356			100,992

(1)

Presented on a managed basis, specifically Card Services.

(2)

For the year ended December 31, 2008 and 2007, a total of $20.5 billion and $11.4 billion of deposits were migrated from Global Consumer and Small Business Banking to Global Wealth and Investment Management.

(3)

Fully taxable-equivalent basis

(4)

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

(5)

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

n/m = not meaningful

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation		14

Bank of America Corporation and Subsidiaries

Global Consumer and Small Business Banking - Key Indicators

(Dollars in millions; except as noted)


	Year Ended December 31							Fourth Quarter 2008			Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007
	2008			2007				Fourth Quarter 2008			Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007
Deposits and Student Lending Key Indicators
Average deposit balances
Checking	$	126,380		$	125,220			$	124,861		$	126,096		$	128,486		$	126,099		$	125,087
Savings		29,249			29,335				28,687			29,392			30,092			28,828			28,960
MMS		74,327			63,155				80,677			80,364			69,772			66,361			64,722
CD’s & IRA’s		125,939			103,816				141,895			139,628			106,153			115,753			114,988
Foreign and other		3,128			3,251				3,052			3,818			2,982			2,653			3,667

Total average deposit balances	$	359,023		$	324,777			$	379,172		$	379,298		$	337,485		$	339,694		$	337,424

Total balances migrated to
Premier Banking and Investments	$	20,476		$	11,411			$	4,542		$	3,272		$	5,631		$	7,031		$	2,443

Deposit spreads (excludes noninterest costs)
Checking		4.23	%		4.28		%		4.26	%		4.24	%		4.16	%		4.28	%		4.31	%
Savings		3.80			3.74				3.82			3.80			3.70			3.89			3.77
MMS		1.21			3.26				0.91			1.15			1.30			1.54			2.83
CD’s & IRA’s		0.32			1.04				0.26			0.14			0.40			0.53			0.89
Foreign and other		3.62			3.51				3.72			3.69			3.59			3.46			3.59
Total deposit spreads		2.17			2.97				1.99			2.01			2.31			2.40			2.79

Net new retail checking (units in thousands)		2,184			2,304				130			823			674			557			343
Debit purchase volumes	$	210,538		$	189,453			$	52,935		$	53,263		$	54,274		$	50,066		$	51,133

Online banking (end of period)
Active accounts (units in thousands)		28,854			23,791				28,854			28,636			25,299			24,949			23,791
Active billpay accounts (units in thousands)		15,861			12,552				15,861			15,732			13,269			13,081			12,552

Card Services Key Indicators
Managed credit card data ⁽¹⁾
Gross interest yield		11.69	%		12.67		%		11.87	%		11.52	%		11.44	%		11.94	%		12.48	%
Risk adjusted margin ⁽¹⁾		6.63			7.70				6.47			6.75			6.39			6.92			7.74
Loss rates		6.18			4.79				7.16			6.40			5.96			5.19			4.75
Average outstandings	$	184,246		$	171,376			$	181,233		$	186,408		$	185,659		$	183,694		$	178,411
Ending outstandings		182,234			183,691				182,234			183,398			187,162			183,758			183,691
New account growth (in thousands)		8,483			11,769				1,432			1,766			2,670			2,615			3,509
Purchase volumes	$	243,525		$	252,345			$	56,585		$	62,662		$	64,457		$	59,821		$	68,380
Delinquencies:
30 Day		6.68	%		5.45		%		6.68	%		5.89	%		5.53	%		5.61	%		5.45	%
90 Day		3.16			2.66				3.16			2.88			2.82			2.83			2.66

Mortgage, Home Equity and Insurance Services Key Indicators
Mortgage servicing rights at fair value rollforward:
Beginning balance	$	3,053		$	2,869			$	20,811		$	4,250		$	3,163		$	3,053		$	3,179
Countrywide balance, July 1, 2008		17,188			—				—			17,188			—			—			—
Additions		2,587			792				677			875			669			366			253
Impact of customer payments		(3,313	)		(766	)			(1,458	)		(1,425	)		(233	)		(197	)		(212	)
Other changes in MSR		(6,782	)		158				(7,297	)		(77	)		651			(59	)		(167	)

Ending balance	$	12,733		$	3,053			$	12,733		$	20,811		$	4,250		$	3,163		$	3,053

Capitalized mortgage servicing rights (% of loans serviced)		77	bps		118		bps		77	bps		126	bps		145	bps		118	bps		118	bps
Mortgage loans serviced for investors (in billions)	$	1,654		$	259			$	1,654		$	1,654		$	292		$	268		$	259

Global Consumer and Small Business Banking
Mortgage production	$	128,945		$	93,304			$	42,761		$	49,625		$	18,515		$	18,044		$	22,109
Home equity production		31,998			69,226				3,920			5,260			8,997			13,821			16,001

Total Corporation
Mortgage production		140,510			104,385				44,611			51,539			22,438			21,922			24,551
Home equity production		40,490			84,183				5,326			7,023			11,500			16,641			19,299

(1)

Credit Card includes U.S. Consumer Card, foreign and U.S. Government card. Does not include Business Credit Card.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		15

Bank of America Corporation and Subsidiaries

E-Commerce & BankofAmerica.com

Bank of America has the largest active online banking customer base with 28.9 million subscribers.

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

15.9 million active bill pay users paid $80.6 billion worth of bills this quarter. The number of customers who sign up and use Bank of America’s Bill Pay Service continues to far surpass that of any other financial institution.

Currently, approximately 340 companies are presenting 38.9 million e-bills per quarter.

LOGO

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		16

Bank of America Corporation and Subsidiaries

Credit Card Data ⁽¹⁾

(Dollars in millions)


	Year Ended December 31							Fourth Quarter 2008			Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007
	2008			2007				Fourth Quarter 2008			Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007
Loans
Period end
Held credit card outstandings	$	81,274		$	80,724			$	81,274		$	81,350		$	78,642		$	75,911		$	80,724
Securitization impact		100,960			102,967				100,960			102,048			108,520			107,847			102,967

Managed credit card outstandings	$	182,234		$	183,691			$	182,234		$	183,398		$	187,162		$	183,758		$	183,691

Average
Held credit card outstandings	$	79,845		$	70,242			$	82,117		$	80,489		$	78,221		$	78,518		$	74,392
Securitization impact		104,401			101,134				99,116			105,919			107,438			105,176			104,019

Managed credit card outstandings	$	184,246		$	171,376			$	181,233		$	186,408		$	185,659		$	183,694		$	178,411

Credit Quality
Charge-Offs $
Held net charge-offs	$	4,712		$	3,442			$	1,406		$	1,242		$	1,108		$	956		$	846
Securitization impact		6,670			4,772				1,857			1,754			1,643			1,416			1,292

Managed credit card net losses	$	11,382		$	8,214			$	3,263		$	2,996		$	2,751		$	2,372		$	2,138

Charge-Offs %
Held net charge-offs		5.90	%		4.90		%		6.82	%		6.14	%		5.69	%		4.90	%		4.51	%
Securitization impact		0.28			(0.11	)			0.34			0.26			0.27			0.29			0.24

Managed credit card net losses		6.18	%		4.79		%		7.16	%		6.40	%		5.96	%		5.19	%		4.75	%

30+ Delinquency $
Held delinquency	$	5,324		$	4,298			$	5,324		$	4,675		$	4,121		$	4,017		$	4,298
Securitization impact		6,844			5,710				6,844			6,126			6,226			6,288			5,710

Managed delinquency	$	12,168		$	10,008			$	12,168		$	10,801		$	10,347		$	10,305		$	10,008

30+ Delinquency %
Held delinquency		6.55	%		5.32		%		6.55	%		5.75	%		5.24	%		5.29	%		5.32	%
Securitization impact		0.13			0.13				0.13			0.14			0.29			0.32			0.13

Managed delinquency		6.68	%		5.45		%		6.68	%		5.89	%		5.53	%		5.61	%		5.45	%

90+ Delinquency $
Held delinquency	$	2,565		$	2,127			$	2,565		$	2,330		$	2,109		$	2,055		$	2,127
Securitization impact		3,185			2,757				3,185			2,958			3,169			3,137			2,757

Managed delinquency	$	5,750		$	4,884			$	5,750		$	5,288		$	5,278		$	5,192		$	4,884

90+ Delinquency %
Held delinquency		3.16	%		2.63		%		3.16	%		2.87	%		2.68	%		2.71	%		2.63	%
Securitization impact		—			0.03				—			0.01			0.14			0.12			0.03

Managed delinquency		3.16	%		2.66		%		3.16	%		2.88	%		2.82	%		2.83	%		2.66	%

(1)

Credit Card includes U.S. Consumer Card, foreign and U.S. Government card. Does not include Business Credit Card.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		17

Bank of America Corporation and Subsidiaries

Global Corporate and Investment Banking Segment Results ⁽¹⁾

(Dollars in millions)


	Year Ended December 31								Fourth Quarter 2008				Third Quarter 2008				Second Quarter 2008				First Quarter 2008				Fourth Quarter 2007
	2008				2007				Fourth Quarter 2008				Third Quarter 2008				Second Quarter 2008				First Quarter 2008				Fourth Quarter 2007
Net interest income ⁽²⁾	$	16,538			$	11,206			$	4,949			$	4,140			$	3,837			$	3,612			$	3,435
Noninterest income:
Service charges		3,344				2,770				841				858				856				789				761
Investment and brokerage services		850				913				176				218				211				245				223
Investment banking income		2,708				2,537				786				491				766				665				577
Trading account profits (losses)		(5,956	)			(4,921	)			(4,142	)			(393	)			369				(1,790	)			(5,376	)
All other income (loss)		(4,044	)			1,146				(2,875	)			(761	)			(68	)			(340	)			(315	)

Total noninterest income (loss)		(3,098	)			2,445				(5,214	)			413				2,134				(431	)			(4,130	)

Total revenue, net of interest expense		13,440				13,651				(265	)			4,553				5,971				3,181				(695	)
Provision for credit losses		3,080				658				1,415				779				361				525				274
Noninterest expense		10,381				12,198				2,229				2,907				2,793				2,452				3,453

Income (loss) before income taxes		(21	)			795				(3,909	)			867				2,817				204				(4,422	)
Income tax expense (benefit)⁽²⁾		(7	)			285				(1,467	)			325				1,058				77				(1,651	)

Net income (loss)	$	(14	)		$	510			$	(2,442	)		$	542			$	1,759			$	127			$	(2,771	)

Net interest yield ⁽²⁾		2.36		%		1.65		%		2.96		%		2.32		%		2.20		%		2.01		%		1.89		%
Return on average equity		(0.02	)			1.12				(14.24	)			3.49				11.65				0.87				(20.53	)
Efficiency ratio ⁽²⁾		77.24				89.36				n/m				63.87				46.78				77.07				n/m

Balance sheet

Average
Total loans and leases	$	337,352			$	274,725			$	343,379			$	342,494			$	336,328			$	327,083			$	327,622
Total trading-related assets		341,544				362,195				317,306				350,063				337,058				361,923				354,336
Total market-based earning assets ⁽³⁾		368,751				412,587				318,817				377,630				375,274				403,733				407,315
Total earning assets⁽⁴⁾		699,708				677,215				666,084				710,004				701,834				721,165				720,587
Total assets ⁽⁴⁾		816,832				771,219				793,132				821,444				816,065				836,895				825,697
Total deposits		239,097				219,891				249,301				237,935				233,788				235,264				235,730
Allocated equity		62,441				45,309				68,217				61,798				60,718				58,973				53,558
Period end
Total loans and leases	$	340,692			$	326,042			$	340,692			$	339,645			$	346,046			$	328,083			$	326,042
Total trading-related assets		247,552				308,316				247,552				277,442				303,423				317,256				308,316
Total market-based earning assets ⁽³⁾		244,914				360,276				244,914				289,918				335,207				347,877				360,276
Total earning assets ⁽⁴⁾		589,431				675,407				589,431				633,976				669,774				671,279				675,407
Total assets ⁽⁴⁾		707,170				778,158				707,170				753,495				780,504				793,993				778,158
Total deposits		251,798				246,242				251,798				244,304				227,993				233,220				246,242

(1)

Global Corporate and Investment Banking has three primary businesses: Business Lending, Capital Markets and Advisory Services, and Treasury Services. In addition, ALM/Other includes the results of ALM activities and other Global Corporate and Investment Banking activities.

(2)

Fully taxable-equivalent basis

(3)

Total market-based earning assets represents earning assets included in the Capital Markets and Advisory Services business but excludes loans that are accounted for at fair value in accordance with SFAS 159.

(4)

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

n/m = not meaningful

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		18

Bank of America Corporation and Subsidiaries

Global Corporate and Investment Banking Business Results

(Dollars in millions)


	Three Months Ended December 31, 2008
	Total			Business Lending			Capital Markets and Advisory Services ⁽¹⁾			Treasury Services			ALM/ Other
Net interest income ⁽²⁾	$	4,949		$	1,783		$	1,922		$	1,009		$	235
Noninterest income:
Service charges		841			193			33			615			—
Investment and brokerage services		176			—			167			9			—
Investment banking income		786			—			786			—			—
Trading account profits (losses)		(4,142	)		(244	)		(3,916	)		18			—
All other income (loss)		(2,875	)		494			(3,631	)		265			(3	)

Total noninterest income (loss)		(5,214	)		443			(6,561	)		907			(3	)

Total revenue, net of interest expense		(265	)		2,226			(4,639	)		1,916			232
Provision for credit losses		1,415			1,381			11			23			—
Noninterest expense		2,229			446			973			773			37

Income (loss) before income taxes		(3,909	)		399			(5,623	)		1,120			195
Income tax expense (benefit) ⁽²⁾		(1,467	)		98			(2,008	)		364			79

Net income (loss)	$	(2,442	)	$	301		$	(3,615	)	$	756		$	116

Net interest yield ⁽²⁾		2.96	%		2.14	%		n/m			2.12	%		n/m
Return on average equity		(14.24	)		4.52			(60.53	)%		35.36			n/m
Efficiency ratio ⁽²⁾		n/m			20.02			n/m			40.28			n/m
Average - total loans and leases	$	343,379		$	323,644		$	12,259		$	7,444			n/m
Average - total deposits		249,301			n/m			47,593			201,346			n/m
Period end - total assets ⁽³⁾		707,170			336,561			313,141			223,895			n/m

	Three Months Ended September 30, 2008
	Total			Business Lending			Capital Markets and Advisory Services ⁽¹⁾			Treasury Services			ALM/ Other
Net interest income ⁽²⁾	$	4,140		$	1,542		$	1,472		$	912		$	214
Noninterest income:
Service charges		858			171			37			650			—
Investment and brokerage services		218			—			209			9			—
Investment banking income		491			—			491			—			—
Trading account profits (losses)		(393	)		40			(450	)		19			(2	)
All other income (loss)		(761	)		176			(1,472	)		295			240

Total noninterest income (loss)		413			387			(1,185	)		973			238

Total revenue, net of interest expense		4,553			1,929			287			1,885			452
Provision for credit losses		779			780			33			19			(53	)
Noninterest expense		2,907			547			1,340			983			37

Income (loss) before income taxes		867			602			(1,086	)		883			468
Income tax expense (benefit) ⁽²⁾		325			225			(403	)		329			174

Net income (loss)	$	542		$	377		$	(683	)	$	554		$	294

Net interest yield ⁽²⁾		2.32	%		1.93	%		n/m			2.20	%		n/m
Return on average equity		3.49			6.44			(13.94	)%		26.47			n/m
Efficiency ratio ⁽²⁾		63.87			28.33			n/m			52.12			n/m
Average - total loans and leases	$	342,494		$	313,364		$	21,676		$	7,429			n/m
Average - total deposits		237,935			n/m			57,227			180,392			n/m
Period end - total assets ⁽³⁾		753,495			333,552			356,528			207,168			n/m

	Three Months Ended December 31, 2007
	Total			Business Lending			Capital Markets and Advisory Services ⁽¹⁾			Treasury Services			ALM/ Other
Net interest income ⁽²⁾	$	3,435		$	1,702		$	836		$	995		$	(98	)
Noninterest income:
Service charges		761			150			35			578			(2	)
Investment and brokerage services		223			—			211			10			2
Investment banking income		577			—			577			—			—
Trading account profits (losses)		(5,376	)		(137	)		(5,263	)		17			7
All other income (loss)		(315	)		186			(885	)		290			94

Total noninterest income (loss)		(4,130	)		199			(5,325	)		895			101

Total revenue, net of interest expense		(695	)		1,901			(4,489	)		1,890			3
Provision for credit losses		274			280			(6	)		—			—
Noninterest expense		3,453			665			1,527			1,125			136

Income (loss) before income taxes		(4,422	)		956			(6,010	)		765			(133	)
Income tax expense (benefit) ⁽²⁾		(1,651	)		348			(2,228	)		277			(48	)

Net income (loss)	$	(2,771	)	$	608		$	(3,782	)	$	488		$	(85	)

Net interest yield ⁽²⁾		1.89	%		2.27	%		n/m			2.83	%		n/m
Return on average equity		(20.53	)		12.14			(97.04	)%		24.40			n/m
Efficiency ratio ⁽²⁾		n/m			35.06			n/m			59.44			n/m
Average - total loans and leases	$	327,622		$	294,802		$	26,086		$	6,688			n/m
Average - total deposits		235,730			n/m			74,111			161,381			n/m
Period end - total assets ⁽³⁾		778,158			303,966			413,811			183,996			n/m

(1)

Includes $36 million, $25 million and $26 million of net interest income on loans for which the fair value option has been elected and is not considered market-based income for the three months ended December 31, 2008, September 30, 2008 and December 31, 2007.

(2)

Fully taxable-equivalent basis

(3)

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

n/m = not meaningful

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		19

Bank of America Corporation and Subsidiaries

Global Corporate and Investment Banking Business Results

(Dollars in millions)


	Year Ended December 31, 2008
	Total			Business Lending			Capital Markets and Advisory Services ⁽¹⁾			Treasury Services			ALM/ Other
Net interest income ⁽²⁾	$	16,538		$	6,221		$	6,124		$	3,610		$	583
Noninterest income:
Service charges		3,344			657			134			2,553			—
Investment and brokerage services		850			—			810			40			—
Investment banking income		2,708			—			2,708			—			—
Trading account profits (losses)		(5,956	)		(251	)		(5,787	)		74			8
All other income (loss)		(4,044	)		1,196			(7,007	)		1,507			260

Total noninterest income (loss)		(3,098	)		1,602			(9,142	)		4,174			268

Total revenue, net of interest expense		13,440			7,823			(3,018	)		7,784			851
Provision for credit losses		3,080			3,082			5			47			(54	)
Noninterest expense		10,381			2,066			4,722			3,459			134

Income (loss) before income taxes		(21	)		2,675			(7,745	)		4,278			771
Income tax expense (benefit)⁽²⁾		(7	)		953			(2,797	)		1,546			291

Net income (loss)	$	(14	)	$	1,722		$	(4,948	)	$	2,732		$	480

Net interest yield ⁽²⁾		2.36	%		1.97	%		n/m			2.17	%		n/m
Return on average equity		(0.02	)		7.38			(24.32	)%		33.21			n/m
Efficiency ratio ⁽²⁾		77.24			26.40			n/m			44.43			n/m
Average - total loans and leases	$	337,352		$	311,003		$	19,021		$	7,298			n/m
Average - total deposits		239,097			n/m			57,795			180,974			n/m
Period end - total assets ⁽³⁾		707,170			336,561			313,141			223,895			n/m

	Year Ended December 31, 2007
	Total			Business Lending			Capital Markets and Advisory Services ⁽¹⁾			Treasury Services			ALM/ Other
Net interest income ⁽²⁾	$	11,206		$	4,926		$	2,788		$	3,792		$	(300	)
Noninterest income:
Service charges		2,770			516			134			2,121			(1	)
Investment and brokerage services		913			—			869			42			2
Investment banking income		2,537			—			2,537			—			—
Trading account profits (losses)		(4,921	)		(180	)		(4,811	)		63			7
All other income (loss)		1,146			823			(968	)		1,086			205

Total noninterest income (loss)		2,445			1,159			(2,239	)		3,312			213

Total revenue, net of interest expense		13,651			6,085			549			7,104			(87	)
Provision for credit losses		658			653			—			6			(1	)
Noninterest expense		12,198			2,262			5,925			3,713			298

Income (loss) before income taxes		795			3,170			(5,376	)		3,385			(384	)
Income tax expense (benefit)⁽²⁾		285			1,170			(1,991	)		1,249			(143	)

Net income (loss)	$	510		$	2,000		$	(3,385	)	$	2,136		$	(241	)

Net interest yield ⁽²⁾		1.65	%		1.96	%		n/m			2.79	%		n/m
Return on average equity		1.12			12.36			(25.52	)%		27.18			n/m
Efficiency ratio ⁽²⁾		89.36			37.19			n/m			52.27			n/m
Average - total loans and leases	$	274,725		$	248,474		$	20,418		$	5,860			n/m
Average - total deposits		219,891			n/m			66,836			152,827			n/m
Period end - total assets ⁽³⁾		778,158			303,966			413,811			183,996			n/m

(1)

Includes $113 million and $70 million of net interest income on loans for which the fair value option has been elected and is not considered market-based income for the year ended December 31, 2008 and 2007.

(2)

Fully taxable-equivalent basis

(3)

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

n/m = not meaningful

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		20

Bank of America Corporation and Subsidiaries

Global Corporate and Investment Banking - Business Lending Key Indicators

(Dollars in millions)


	Year Ended December 31					Fourth Quarter 2008		Third Quarter 2008		Second Quarter 2008			First Quarter 2008		Fourth Quarter 2007
	2008		2007			Fourth Quarter 2008		Third Quarter 2008		Second Quarter 2008			First Quarter 2008		Fourth Quarter 2007
Business lending revenue, net of interest expense
Corporate lending⁽¹⁾	$ 1,547		$ 745			$ 673		$ 312		$ 249			$ 313		$ 236
Commercial lending	5,534		4,726			1,469		1,293		1,470			1,302		1,601
Consumer indirect lending	742		614			84		324		310			24		64

Total revenue, net of interest expense	$ 7,823		$ 6,085			$ 2,226		$ 1,929		$ 2,029			$ 1,639		$ 1,901

Business lending margin
Corporate lending	1.20	%	0.80		%	1.68	%	1.07	%	0.97		%	0.95	%	0.76		%
Commercial lending	1.55		1.71			1.60		1.50		1.51			1.60		2.17
Consumer indirect lending	1.96		1.68			2.19		1.98		1.85			1.81		1.65

Provision for credit losses
Corporate lending	$ 362		$ 42			$ 301		$ 83		$ (33	)		$ 11		$ (26	)
Commercial lending	1,712		192			666		427		296			323		144
Consumer indirect lending	1,008		419			414		270		135			189		162

Total provision for credit losses	$ 3,082		$ 653			$ 1,381		$ 780		$ 398			$ 523		$ 280

Credit quality ^{(2, 3)}
Reservable utilized criticized exposure
Corporate lending	$ 5,291		$ 1,886			$ 5,291		$ 4,266		$ 3,317			$ 2,177		$ 1,886
	6.64	%	2.96		%	6.64	%	5.41	%	4.56		%	3.26	%	2.96		%
Commercial lending	$ 29,027		$ 13,834			$ 29,027		$ 24,428		$ 20,921			$ 17,199		$ 13,834
	10.82	%	5.66		%	10.82	%	9.18	%	8.02		%	6.83	%	5.66		%

Total reservable utilized criticized exposure	$ 34,318		$ 15,720			$ 34,318		$ 28,694		$ 24,238			$ 19,376		$ 15,720
	9.86	%	5.10		%	9.86	%	8.32	%	7.26		%	6.08	%	5.10		%
Nonperforming assets
Corporate lending	$ 634		$ 115			$ 634		$ 407		$ 150			$ 150		$ 115
	0.99	%	0.24		%	0.99	%	0.65	%	0.28		%	0.30	%	0.24		%
Commercial lending	$ 5,737		$ 1,923			$ 5,737		$ 4,370		$ 3,680			$ 2,603		$ 1,923
	2.20	%	0.77		%	2.20	%	1.69	%	1.42		%	1.02	%	0.78		%

Total nonperforming assets	$ 6,371		$ 2,038			$ 6,371		$ 4,777		$ 3,830			$ 2,753		$ 2,038
	1.97	%	0.69		%	1.97	%	1.49	%	1.22		%	0.91	%	0.69		%
Average loans and leases by product
Commercial	$160,878		$126,008			$172,000		$160,645		$157,839			$152,909		$150,194
Leases	24,363		22,375			24,324		24,574		24,287			24,264		24,246
Foreign	24,632		17,711			25,308		25,256		25,132			22,818		22,944
Real estate	59,098		40,147			60,432		59,169		58,656			58,118		55,814
Consumer	40,369		40,215			40,144		42,205		40,345			38,765		39,613
Other	1,663		2,018			1,436		1,515		1,822			1,885		1,991

Total average loans and leases	$311,003		$248,474			$323,644		$313,364		$308,081			$298,759		$294,802


(1) Total corporate lending revenue	*$ 1,547*		$ 745			*$ 673*		$ 312		$ 249			$ 313		$ 236
Less: Impact of credit mitigation	*309*		(14	)		*221*		24		(5	)		69		7

Corporate lending revenues excluding credit mitigation	*$ 1,238*		$ 759			*$ 452*		$ 288		$ 254			$ 244		$ 229

(2)

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

(3)

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

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		21

Bank of America Corporation and Subsidiaries

Global Corporate and Investment Banking - Capital Markets and Advisory Services Key Indicators

(Dollars in millions)


	Year Ended December 31						Fourth Quarter 2008			Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007
	2008			2007			Fourth Quarter 2008			Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007
Investment banking income
Advisory fees	$	287		$	443		$	107		$	63		$	51		$	66		$	110
Debt underwriting		1,797			1,775			455			378			605			359			379
Equity underwriting		624			319			224			50			110			240			88

Total investment banking income		2,708			2,537			786			491			766			665			577

Sales and trading revenue
Fixed income:
Liquid products		3,608			2,155			602			1,043			1,102			861			596
Credit products		(2,273	)		(212	)		(2,188	)		(113	)		683			(655	)		(383	)
Structured products		(7,987	)		(5,326	)		(3,876	)		(1,339	)		(922	)		(1,850	)		(5,511	)

Total fixed income		(6,652	)		(3,383	)		(5,462	)		(409	)		863			(1,644	)		(5,298	)
Equity income		813			1,325			1			180			298			334			206

Total sales and trading revenue		(5,839	)		(2,058	)		(5,461	)		(229	)		1,161			(1,310	)		(5,092	)

Total Capital Markets and Advisory Services market-based revenue⁽¹⁾	$	(3,131	)		$479		$	(4,675	)	$	262		$	1,927		$	(645	)	$	(4,515	)

Balance sheet (average)
Trading account securities	$	182,557		$	185,020		$	168,139		$	188,218		$	183,119		$	190,849		$	188,925
Reverse repurchases		56,371			60,187			54,217			63,375			51,655			56,184			51,266
Securities borrowed		62,482			88,856			42,580			62,982			65,742			78,839			84,399
Derivative assets		39,168			26,423			51,453			34,643			35,537			34,953			28,282

Total trading-related assets	$	340,578		$	360,486		$	316,389		$	349,218		$	336,053		$	360,825		$	352,872

Sales credits from secondary trading
Liquid products		2,392			2,064			692			548			557			595			534
Credit products		1,351			1,274			388			376			306			281			279
Structured products		750			761			190			192			202			166			133
Equities		945			1,126			212			192			259			282			262

Total sales credits		5,438			5,225			1,482			1,308			1,324			1,324			1,208

Volatility of product revenues - 1 std dev
Liquid products	$	60.8		$	11.7		$	95.6		$	50.6		$	36.2		$	42.2		$	10.4
Credit products		37.0			15.7			36.1			49.0			9.0			27.1			12.0
Structured products		65.7			207.8			94.9			34.7			38.5			66.2			408.1
Equities		11.0			9.9			13.1			10.6			8.7			10.1			7.3
Total volatility		88.4			208.9			111.3			82.4			42.2			64.4			405.5

(1)

Excludes $113 million and $70 million for the year ended December 31, 2008 and 2007, and $36 million, $25 million, $25 million, $27 million and $26 million, respectively, for the three months ended December 31, 2008, September 30, 2008, June 30, 2008, March 31, 2008 and December 31, 2007, of net interest income on loans for which the fair value option has been elected and is not considered market-based income.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		22

Bank of America Corporation and Subsidiaries

Special Purpose Entities Liquidity Exposure

(Dollars in millions)


	December 31, 2008
	VIEs⁽¹⁾				QSPEs ⁽²⁾		Total
	Consolidated ⁽³⁾		Unconsolidated		Unconsolidated		Total
Commercial paper conduits:
Multi-seller conduits	$	11,304	$	41,635	$	—	$	52,939
Asset acquisition conduits		1,121		2,622		—		3,743
Other corporate conduits		—		—		1,578		1,578
Home equity securitizations		—		—		13,064		13,064
Municipal bond trusts		396		3,872		2,921		7,189
Customer-sponsored conduits		—		980		—		980
Credit card securitizations		—		—		946		946
Collateralized debt obligation vehicles		—		542		—		542

Total liquidity exposure	$	12,821	$	49,651	$	18,509	$	80,981


	September 30, 2008
	VIEs⁽¹⁾				QSPEs ⁽²⁾		Total
	Consolidated ⁽³⁾		Unconsolidated		Unconsolidated		Total
Commercial paper conduits:
Multi-seller conduits	$	13,110	$	42,440	$	—	$	55,550
Asset acquisition conduits		1,130		5,619		—		6,749
Other corporate conduits		—		—		1,686		1,686
Home equity securitizations		—		—		13,315		13,315
Municipal bond trusts		4,148		4,714		3,049		11,911
Customer-sponsored conduits		—		1,142		—		1,142
Credit card securitizations		—		—		300		300
Collateralized debt obligation vehicles		—		1,051		—		1,051

Total liquidity exposure	$	18,388	$	54,966	$	18,350	$	91,704

(1)

Variable interest entities (VIEs) are special purpose entities (SPEs) which lack sufficient equity at risk or whose equity investors do not have a controlling financial interest. In accordance with Financial Accounting Standards Board (FASB) Interpretation No. 46 (Revised December 2003), “Consolidation of Variable Interest Entities, an interpretation of ARB No. 51” (FIN 46R), a VIE is consolidated by the party known as the primary beneficiary that will absorb the majority of the expected losses or expected residual returns of the VIEs or both. For example, an entity that holds a majority of the subordinated debt or equity securities issued by a VIE, or protects other investors from loss through a guarantee or similar arrangement, may have to consolidate the VIE. The assets and liabilities of consolidated VIEs are recorded on the Corporation’s balance sheet.

(2)

Qualifying special purposes entities (QSPEs) are SPEs whose activities are strictly limited to holding and servicing financial assets and meet the requirements set forth in SFAS No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities – a replacement of FASB Statement No. 125” (SFAS 140). QSPEs are generally not required to be consolidated by any party. This table includes only those QSPEs to which we have liquidity exposure.

(3)

We consolidate VIEs when we are the primary beneficiary that will absorb the majority of the expected losses or expected residual returns of the VIEs or both.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		23

Bank of America Corporation and Subsidiaries

Super Senior Collateralized Debt Obligation Exposure Rollforward

(Dollars in millions)


	September 30, 2008 Net Exposure		Paydowns / Liquidations / Other		Fourth Quarter 2008 Net Writedowns ⁽¹⁾		Reclassifications ⁽²⁾		December 31, 2008 Net Exposure
Super senior liquidity commitments
High grade	$	688	$ (146)		$ (66)		$—		$	476
Mezzanine		337	—		—		(337	)		—
CDO-squared		—	—		—		—			—

Total super senior liquidity commitments		1,025	(146	)	(66	)	(337	)		476

Other super senior exposure
High grade		3,338	(16	)	(815	)	—			2,507
Mezzanine		179	(65	)	(154	)	337			297
CDO-squared		1,432	(1,196	)	(236	)	—			—

Total other super senior		4,949	(1,277	)	(1,205	)	337			2,804

Total super senior	$	5,974	$(1,423)		$(1,271)		$—		$	3,280

Purchased securities from liquidated CDOs		1,458	987		(415	)	—			2,030

Total	$	7,432	$ (436)		$(1,686)		$—		$	5,310

Net writedowns recorded in earnings on super senior positions					(849)
Net writedowns recorded in earnings on purchased securities					(415)
Writedowns recorded in OCI					(422)

Total					$(1,686)

(1)

Net of insurance and includes unrealized losses recorded in OCI.

(2)

Represents CDO exposure that was reclassified from super senior liquidity commitments to other super senior exposure as the Corporation is no longer providing liquidity.

Super Senior Collateralized Debt Obligation Exposure

(Dollars in millions)


	Total CDO Exposure at December 31, 2008																								Total CDO
	Subprime Exposure ⁽¹⁾												Non-Subprime Exposure ⁽²⁾												Net Exposure
	Gross		Insured ⁽³⁾			Net of Insured Amount		Cumulative Writedowns ^(4,5)			Net Exposure		Gross		Insured ⁽³⁾			Net of Insured Amount		Cumulative Writedowns ^(4,5)			Net Exposure		December 31 2008		September 30 2008
Super senior liquidity commitments
High grade	$	—	$	—		$	—	$	—		$	—	$	542	$	—		$	542	$	(66	)	$	476	$	476	$	688
Mezzanine		—		—			—		—			—		—		—			—		—			—		—		337
CDO-squared		—		—			—		—			—		—		—			—		—			—		—		—

Total super senior liquidity commitments		—		—			—		—			—		542		—			542		(66	)		476		476		1,025
Other super senior exposure
High grade		4,330		(2,519	)		1,811		(1,127	)		684		3,445		(728	)		2,717		(894	)		1,823		2,507		3,338
Mezzanine		535		—			535		(238	)		297		—		—			—		—			—		297		179
CDO-squared		—		—			—		—			—		340		(340	)		—		—			—		—		1,432

Total other super senior		4,865		(2,519	)		2,346		(1,365	)		981		3,785		(1,068	)		2,717		(894	)		1,823		2,804		4,949

Total super senior	$	4,865	$	(2,519	)	$	2,346	$	(1,365	)	$	981	$	4,327	$	(1,068	)	$	3,259	$	(960	)	$	2,299	$	3,280	$	5,974

Purchased securities from liquidated CDOs		2,737		—			2,737		(707	)		2,030		—		—			—		—			—		2,030		1,458

Total	$	7,602	$	(2,519	)	$	5,083	$	(2,072	)	$	3,011	$	4,327	$	(1,068	)	$	3,259	$	(960	)	$	2,299	$	5,310	$	7,432

(1)

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

(2)

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

(3)

Insured exposures are presented prior to $2.1 billion of cumulative writedowns.

(4)

Net of insurance and excludes losses taken on liquidated CDOs.

(5)

Cumulative writedowns on subprime and non-subprime exposures include unrealized losses of $111 million and $311 million and are recorded in OCI .

Certain

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		24

Bank of America Corporation and Subsidiaries

Subprime Super Senior Collateralized Debt Obligation Carrying Values ⁽¹⁾

(Dollars in millions)


	December 31, 2008
	Subprime Net Exposure		Carrying Value as a Percent of Original Net Exposure		Subprime Content of Collateral ⁽²⁾		Vintage of Subprime Collateral
	Subprime Net Exposure		Carrying Value as a Percent of Original Net Exposure		Subprime Content of Collateral ⁽²⁾		Percent in 2006/2007 Vintages		Percent in 2005/Prior Vintages
Other super senior exposure ⁽³⁾
High grade	$	684	38	%	45	%	12	%	88	%
Mezzanine		297	56		35		66		34
CDO-squared		—	—		—		—		—

Total other super senior		981	42

Purchased securities from liquidated CDOs		2,030	34		27		26		74


Total	$	3,011	36

(1)

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

(2)

Based on current net exposure value.

(3)

At December 31, 2008, the Corporation did not have any subprime super senior liquidity commitments.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		25

Bank of America Corporation and Subsidiaries

Global Wealth and Investment Management Segment Results ^{(1, 2)}

(Dollars in millions, except as noted)


	Year Ended December 31							Fourth Quarter 2008			Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007
	2008			2007				Fourth Quarter 2008			Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007
Net interest income ⁽³⁾	$	4,775		$	3,917			$	1,342		$	1,266		$	1,149		$	1,018		$	1,007
Noninterest income:
Investment and brokerage services		4,059			3,781				881			1,002			1,095			1,081			1,080
All other income (loss)		(1,049	)		(145	)			(239	)		(704	)		51			(157	)		(319	)

Total noninterest income		3,010			3,636				642			298			1,146			924			761

Total revenue, net of interest expense		7,785			7,553				1,984			1,564			2,295			1,942			1,768

Provision for credit losses		664			14				152			150			119			243			34
Noninterest expense		4,904			4,480				1,068			1,284			1,241			1,311			1,297

Income before income taxes		2,217			3,059				764			130			935			388			437
Income tax expense ⁽³⁾		801			1,099				253			52			352			144			127

Net income	$	1,416		$	1,960			$	511		$	78		$	583		$	244		$	310

Net interest yield ⁽³⁾		2.97	%		3.11		%		3.03	%		3.09	%		2.96	%		2.78	%		2.91	%
Return on average equity		12.11			19.83				17.32			2.65			19.90			8.48			10.85
Efficiency ratio ⁽³⁾		62.99			59.31				53.77			82.10			54.10			67.52			73.34

Balance sheet
Average
Total loans and leases	$	87,591		$	73,473			$	88,874		$	88,253		$	87,573		$	85,642		$	82,816
Total earning assets ⁽⁴⁾		160,699			126,014				176,209			162,859			156,419			147,115			137,144
Total assets ⁽⁴⁾		169,986			134,032				184,650			172,313			165,869			156,928			147,390
Total deposits		159,525			124,871				171,340			160,999			157,114			148,503			138,163
Allocated equity		11,697			9,883				11,767			11,677			11,774			11,570			11,345

Period end
Total loans and leases	$	89,400		$	84,600			$	89,400		$	88,979		$	88,171		$	87,308		$	84,600
Total earning assets ⁽⁴⁾		178,240			145,056				178,240			169,582			157,334			153,743			145,056
Total assets ⁽⁴⁾		187,994			155,683				187,994			179,347			167,197			163,018			155,683
Total deposits		175,107			144,865				175,107			166,273			158,228			154,175			144,865

Client assets
Assets under management	$	524,026		$	643,531			$	524,026		$	564,438		$	589,459		$	607,521		$	643,531
Client brokerage assets ⁽⁵⁾		172,106			222,661				172,106			196,566			210,701			213,743			222,661
Assets in custody		133,726			167,575				133,726			150,575			156,530			158,486			167,575
Less: Client brokerage assets and assets in custody included in assets under management		(78,487	)		(87,071	)			(78,487	)		(82,921	)		(89,234	)		(88,755	)		(87,071	)

Total net client assets	$	751,371		$	946,696			$	751,371		$	828,658		$	867,456		$	890,995		$	946,696

(1)

Global Wealth and Investment Management services clients through three primary businesses: U.S. Trust, Bank of America Private Wealth Management (U.S. Trust), Columbia Management, and Premier Banking and Investments. In addition, ALM/Other primarily includes the results of ALM activities.

(2)

In July 2007, the operations of the acquired U.S. Trust Corporation were combined with the former Private Bank to create U.S. Trust, Bank of America Private Wealth Management. The results of the combined business were reported for periods beginning on July 1, 2007. Prior to July 1, 2007, the results solely reflect that of the former Private Bank.

(3)

Fully taxable-equivalent basis

(4)

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

(5)

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

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		26

Bank of America Corporation and Subsidiaries

Global Wealth and Investment Management Business Results

(Dollars in millions)


	Three Months Ended December 31, 2008
	Total			U.S. Trust			Columbia Management		Premier Banking and Investments ⁽¹⁾		ALM/ Other
Net interest income ⁽²⁾	$ 1,342			$	341		$ 15		$ 536		$450
Noninterest income:
Investment and brokerage services	881				304		301		239		37
All other income (loss)	(239	)			(5	)	(228	)	1		(7	)

Total noninterest income	642				299		73		240		30

Total revenue, net of interest expense	1,984				640		88		776		480

Provision for credit losses	152				78		—		74		—
Noninterest expense	1,068				370		190		383		125

Income (loss) before income taxes	764				192		(102	)	319		355
Income tax expense (benefit)⁽²⁾	253				71		(38	)	118		102

Net income (loss)	$ 511			$	121		$ (64	)	$ 201		$253

Net interest yield ⁽²⁾	3.03		%		2.53	%	n/m		1.63	%	n/m
Return on average equity	17.32				10.04		(32.85	)%	42.25		n/m
Efficiency ratio ⁽²⁾	53.77				57.74		n/m		49.44		n/m
Average - total loans and leases	$ 88,874			$	53,359		n/m		$ 35,514		n/m
Average - total deposits	171,340				41,238		n/m		130,085		n/m
Period end - total assets ⁽³⁾	187,994				57,166		$ 2,923		136,079		n/m

	Three Months Ended September 30, 2008
	Total			U.S. Trust			Columbia Management		Premier Banking and Investments ⁽¹⁾		ALM/ Other
Net interest income ⁽²⁾	$ 1,266				$ 314		$ 1		$ 534		$417
Noninterest income:
Investment and brokerage services	1,002				327		394		242		39
All other income (loss)	(704	)			(12	)	(635	)	(57	)	—

Total noninterest income (loss)	298				315		(241	)	185		39

Total revenue, net of interest expense	1,564				629		(240	)	719		456

Provision for credit losses	150				15		—		135		—
Noninterest expense	1,284				486		322		438		38

Income (loss) before income taxes	130				128		(562	)	146		418
Income tax expense (benefit)⁽²⁾	52				47		(208	)	54		159

Net income (loss)	$ 78				$ 81		$ (354	)	$ 92		$259

Net interest yield ⁽²⁾	3.09		%		2.35	%	n/m		1.71	%	n/m
Return on average equity	2.65				6.85		n/m		19.48		n/m
Efficiency ratio ⁽²⁾	82.10				77.19		n/m		60.89		n/m
Average - total loans and leases	$ 88,253				$53,174		n/m		$ 35,077		n/m
Average - total deposits	160,999				37,446		n/m		123,524		n/m
Period end - total assets ⁽³⁾	179,347				57,601		$3,084		128,242		n/m

	Three Months Ended December 31, 2007
	Total			U.S. Trust			Columbia Management		Premier Banking and Investments ⁽¹⁾		ALM/ Other
Net interest income ⁽²⁾	$ 1,007				$ 295		$ 4		$ 644		$ 64
Noninterest income:
Investment and brokerage services	1,080				386		401		246		47
All other income (loss)	(319	)			19		(385	)	42		5

Total noninterest income	761				405		16		288		52

Total revenue, net of interest expense	1,768				700		20		932		116

Provision for credit losses	34				11		—		22		1
Noninterest expense	1,297				491		298		447		61

Income (loss) before income taxes	437				198		(278	)	463		54
Income tax expense (benefit)⁽²⁾	127				74		(103	)	171		(15	)

Net income (loss)	$ 310				$ 124		$ (175	)	$ 292		$ 69

Net interest yield ⁽²⁾	2.91		%		2.54	%	n/m		2.42	%	n/m
Return on average equity	10.85				12.07		(96.87	)%	52.80		n/m
Efficiency ratio ⁽²⁾	73.34				70.20		n/m		47.93		n/m
Average - total loans and leases	$ 82,816				$46,036		n/m		$ 36,742		n/m
Average - total deposits	138,163				31,641		n/m		105,909		n/m
Period end - total assets ⁽³⁾	155,683				51,043		$1,943		113,365		n/m

(1)

For the three months ended December 31, 2008, September 30, 2008 and December 31, 2007, a total of $4.5 billion, $3.3 billion and $2.4 billion of deposits were migrated to Global Wealth and Investment Management from Global Consumer and Small Business Banking.

(2)

Fully taxable-equivalent basis

(3)

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

n/m = not meaningful

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		27

Bank of America Corporation and Subsidiaries

Global Wealth and Investment Management Business Results

(Dollars in millions)


	Year Ended December 31, 2008
	Total			U.S. Trust ⁽¹⁾		Columbia Management		Premier Banking and Investments ⁽²⁾		ALM/ Other
Net interest income ⁽³⁾	$ 4,775			$ 1,237		$ 13		$ 2,141		$1,384
Noninterest income:
Investment and brokerage services	4,059			1,397		1,496		1,002		164
All other income (loss)	(1,049	)		16		(1,118	)	58		(5	)

Total noninterest income	3,010			1,413		378		1,060		159

Total revenue, net of interest expense	7,785			2,650		391		3,201		1,543

Provision for credit losses	664			103		—		561		—
Noninterest expense	4,904			1,817		1,120		1,713		254

Income (loss) before income taxes	2,217			730		(729	)	927		1,289
Income tax expense (benefit)⁽³⁾	801			270		(270	)	343		458

Net income (loss)	$ 1,416			$ 460		$ (459	)	$ 584		$ 831

Net interest yield ⁽³⁾	2.97		%	2.40	%	n/m		1.75	%	n/m
Return on average equity	12.11			9.87		(65.35	)%	30.41		n/m
Efficiency ratio ⁽³⁾	62.99			68.54		n/m		53.51		n/m
Average - total loans and leases	$ 87,591			$51,388		n/m		$ 36,189		n/m
Average - total deposits	159,525			37,453		n/m		121,852		n/m
Period end - total assets ⁽⁴⁾	187,994			57,166		$ 2,923		136,079		n/m

	Year Ended December 31, 2007
	Total			U.S. Trust ⁽¹⁾		Columbia Management		Premier Banking and Investments ⁽²⁾		ALM/ Other
Net interest income ⁽³⁾	$ 3,917			$ 1,033		$ 7		$ 2,654		$223
Noninterest income:
Investment and brokerage services	3,781			1,230		1,435		950		166
All other income (loss)	(145	)		57		(366	)	145		19

Total noninterest income	3,636			1,287		1,069		1,095		185

Total revenue, net of interest expense	7,553			2,320		1,076		3,749		408

Provision for credit losses	14			(14	)	—		27		1
Noninterest expense	4,480			1,589		1,042		1,711		138

Income before income taxes	3,059			745		34		2,011		269
Income tax expense ⁽³⁾	1,099			275		13		744		67

Net income	$ 1,960			$ 470		$ 21		$ 1,267		$202

Net interest yield ⁽³⁾	3.11		%	2.68	%	n/m		2.70	%	n/m
Return on average equity	19.83			17.36		3.91	%	72.16		n/m
Efficiency ratio ⁽³⁾	59.31			68.49		96.85		45.64		n/m
Average - total loans and leases	$ 73,473			$38,529		n/m		$ 34,917		n/m
Average - total deposits	124,871			25,944		n/m		98,546		n/m
Period end - total assets ⁽⁴⁾	155,683			51,043		$1,943		113,365		n/m

(1)

In July 2007, the operations of the acquired U.S. Trust Corporation were combined with the former Private Bank to create U.S. Trust, Bank of America Private Wealth Management. The results of the combined business were reported for periods beginning on July 1, 2007. Prior to July 1, 2007, the results solely reflect that of the former Private Bank.

(2)

For the year ended December 31, 2008 and 2007, a total of $20.5 billion and $11.4 billion of deposits were migrated to Global Wealth and Investment Management from Global Consumer and Small Business Banking.

(3)

Fully taxable-equivalent basis

(4)

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

n/m = not meaningful

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		28

Bank of America Corporation and Subsidiaries

Global Wealth and Investment Management - Key Indicators

(Dollars in millions, except as noted)


	Year Ended December 31						Fourth Quarter 2008			Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007
	2008			2007			Fourth Quarter 2008			Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007
Investment and Brokerage Services
U.S. Trust ⁽¹⁾
Asset management fees	$	1,349		$	1,201		$	291		$	316		$	374		$	368		$	378
Brokerage income		48			29			13			11			13			11			8

Total	$	1,397		$	1,230		$	304		$	327		$	387		$	379		$	386

Columbia Management
Asset management fees	$	1,494		$	1,431		$	301		$	394		$	402		$	397		$	401
Brokerage income		2			4			—			—			1			1			—

Total	$	1,496		$	1,435		$	301		$	394		$	403		$	398		$	401

Premier Banking and Investments
Asset management fees	$	333		$	301		$	76		$	85		$	84		$	88		$	81
Brokerage income		669			649			163			157			179			170			165

Total	$	1,002		$	950		$	239		$	242		$	263		$	258		$	246

ALM/Other
Asset management fees	$	164		$	166		$	37		$	39		$	42		$	46		$	47
Brokerage income		—			—			—			—			—			—			—

Total	$	164		$	166		$	37		$	39		$	42		$	46		$	47

Total Global Wealth and Investment Management
Asset management fees	$	3,340		$	3,099		$	705		$	834		$	902		$	899		$	907
Brokerage income		719			682			176			168			193			182			173

Total investment and brokerage services	$	4,059		$	3,781		$	881		$	1,002		$	1,095		$	1,081		$	1,080

Assets Under Management ⁽²⁾
Assets under management by business:
U.S. Trust ⁽¹⁾	$	178,657		$	225,209		$	178,657		$	199,682		$	210,969		$	214,526		$	225,209
Columbia Management		387,340			439,053			387,340			407,345			422,827			409,064			439,053
Retirement and GWIM Client Solutions		33,498			42,814			33,498			39,547			45,907			48,655			42,814
Premier Banking and Investments		16,682			22,915			16,682			20,246			22,404			21,600			22,915
Eliminations ⁽³⁾		(92,298	)		(87,085	)		(92,298	)		(102,621	)		(113,001	)		(86,760	)		(87,085	)
International Wealth Management		147			625			147			239			353			436			625

Total assets under management	$	524,026		$	643,531		$	524,026		$	564,438		$	589,459		$	607,521		$	643,531

Assets under management rollforward:
Beginning balance	$	643,531		$	542,977		$	564,438		$	589,459		$	607,521		$	643,531		$	709,955
Net flows		1,197			25,271			12,596			7,477			(12,611	)		(6,265	)		(2,226	)
Market valuation/other		(120,702	)		75,283			(53,008	)		(32,498	)		(5,451	)		(29,745	)		(64,198	)

Ending balance	$	524,026		$	643,531		$	524,026		$	564,438		$	589,459		$	607,521		$	643,531

Assets under management mix:
Money market/other	$	253,310		$	246,213		$	253,310		$	238,075		$	225,887		$	242,956		$	246,213
Fixed income		102,747			111,217			102,747			102,596			107,687			107,365			111,217
Equity		167,969			286,101			167,969			223,767			255,885			257,200			286,101

Total assets under management	$	524,026		$	643,531		$	524,026		$	564,438		$	589,459		$	607,521		$	643,531

Client Brokerage Assets	$	172,106		$	222,661		$	172,106		$	196,566		$	210,701		$	213,743		$	222,661
Premier Banking and Investments Metrics
Client facing associates
Number of client managers		2,481			2,548			2,481			2,492			2,538			2,572			2,548
Number of financial advisors		2,007			1,950			2,007			1,964			1,974			1,952			1,950
All other		1,053			1,079			1,053			1,105			1,086			1,157			1,079

Total client facing associates		5,541			5,577			5,541			5,561			5,598			5,681			5,577

Financial Advisor Productivity ⁽⁴⁾ (in thousands)	$	453		$	445		$	105		$	109		$	121		$	118		$	113
Total client balances ⁽⁵⁾	$	290,661		$	309,190		$	290,661		$	301,093		$	308,174		$	309,687		$	309,190
Number of Households with Banking and Brokerage
Relationships (in thousands)		303			277			303			292			288			283			277
U.S. Trust Metrics⁽¹⁾
Client facing associates		3,733			3,989			3,733			3,747			3,882			3,922			3,989
Total client balances ⁽⁵⁾	$	308,349		$	380,687		$	308,349		$	344,004		$	357,575		$	362,425		$	380,687
Columbia Management Performance Metrics
# of 4 or 5 Star Funds by Morningstar		53			48			53			53			50			50			48
% of Assets Under Management in 4 or 5 Star Rated Funds ⁽⁶⁾		62	%		68	%		62	%		64	%		64	%		69	%		68	%

(1)

In July 2007, the operations of the acquired U.S. Trust Corporation were combined with the former Private Bank to create U.S. Trust, Bank of America Private Wealth Management. The results of the combined business were reported for periods beginning on July 1, 2007. Prior to July 1, 2007, the results solely reflect that of the former Private Bank.

(2)

The acquisition of LaSalle Bank Corporation contributed $7.5 billion to assets under management in fourth quarter 2007. The acquisition of U.S. Trust Corporation contributed $115.6 billion to assets under management in third quarter 2007. The sale of Marsico resulted in a $60.9 billion decrease in assets under management in fourth quarter 2007 (including a $5.3 billion reduction in eliminations).

(3)

The elimination of assets under management that are managed by two lines of business.

(4)

Financial advisor productivity is defined as full service gross production divided by average number of total financial advisors.

(5)

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

(6)

Results shown are defined by Columbia Management’s calculation using Morningstar’s Overall Rating criteria for 4 & 5 star rating. The assets under management of the Columbia Funds that had a 4 & 5 star rating were totaled then divided by the assets under management of all the funds in the ranking.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		29

Bank of America Corporation and Subsidiaries

All Other Results ⁽¹⁾

(Dollars in millions)


	Year Ended December 31						Fourth Quarter 2008			Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007
	Year Ended December 31
	2008			2007
Net interest income ⁽²⁾	$	(8,610	)	$	(7,645	)	$	(2,159	)	$	(2,432	)	$	(2,034	)	$	(1,985	)	$	(2,058	)
Noninterest income:
Card income		2,164			2,817			368			537			595			664			680
Equity investment income (loss)		265			3,745			(387	)		(326	)		710			268			278
Gains (losses) on sales of debt securities		1,133			180			784			(2	)		131			220			110
All other income (loss)		(545	)		426			(256	)		68			(100	)		(257	)		750

Total noninterest income		3,017			7,168			509			277			1,336			895			1,818

Total revenue, net of interest expense		(5,593	)		(477	)		(1,650	)		(2,155	)		(698	)		(1,090	)		(240	)
Provision for credit losses ⁽³⁾		(3,760	)		(5,207	)		(616	)		(984	)		(1,032	)		(1,128	)		(1,285	)
Merger and restructuring charges		935			410			306			247			212			170			140
All other noninterest expense		372			87			199			(45	)		58			160			(53	)

Income (loss) before income taxes		(3,140	)		4,233			(1,539	)		(1,373	)		64			(292	)		958
Income tax expense (benefit) ⁽²⁾		(1,512	)		1,083			(846	)		(591	)		(86	)		11			128

Net income (loss)	$	(1,628	)	$	3,150		$	(693	)	$	(782	)	$	150		$	(303	)	$	830


Balance sheet

Average
Total loans and leases	$	135,671		$	133,926		$	145,196		$	146,277		$	117,335		$	133,654		$	140,052
Total earning assets		300,651			229,324			342,657			320,138			268,636			270,501			272,142
Total assets		385,938			286,823			459,621			402,123			341,014			340,004			341,000
Total deposits		61,561			41,759			75,003			61,838			51,039			58,209			64,806

Period end
Total loans and leases	$	136,156		$	139,943		$	136,156		$	146,379		$	95,855		$	127,038		$	139,943
Total earning assets		333,959			261,587			333,959			295,747			256,226			252,713			261,587
Total assets		411,378			336,586			411,378			391,401			339,618			339,663			336,586
Total deposits		62,927			67,162			62,927			63,352			56,619			57,616			67,162

(1)

All Other consists of equity investment activities including Principal Investing, Corporate Investments and Strategic Investments, the residential mortgage portfolio associated with ALM activities, the residual impact of cost allocation processes, merger and restructuring charges, intersegment eliminations, and the results of certain businesses that are expected to be or have been sold or are in the process of being liquidated. All Other also includes certain amounts associated with ALM activities, including the residual impact of funds transfer pricing allocation methodologies, amounts associated with the change in the value of derivatives used as economic hedges of interest rate and foreign exchange rate fluctuations that do not qualify for SFAS No. 133 “Accounting for Derivative instruments and Hedging Activities, as amended” hedge accounting treatment, foreign exchange rate fluctuations related to SFAS No. 52, “Foreign Currency Translation” revaluation of foreign-denominated debt issuances, certain gains (losses) on sales of whole mortgage loans, and gains (losses) on sales of debt securities. All Other also includes adjustments to noninterest income and income tax expense to remove the FTE impact of items (primarily low-income housing tax credits) that have been grossed up within noninterest income to a FTE amount in the business segments. In addition, All Other includes the offsetting securitization impact to present Global Consumer and Small Business Banking on a managed basis. (See Exhibit A: Non-GAAP Reconciliations—All Other—Reconciliation on page 41).

(2)

Fully taxable-equivalent basis

(3)

Provision for credit losses represents provision for credit losses in All Other combined with the Global Consumer and Small Business Banking securitization offset.

Components of Equity Investment Income

(Dollars in millions)


	Year Ended December 31					Fourth Quarter 2008			Third Quarter 2008			Second Quarter 2008			First Quarter 2008		Fourth Quarter 2007
	Year Ended December 31
	2008			2007
Principal Investing	$	(84	)	$	2,217	$	(363	)	$	(29	)	$	296		$	12	$	117
Corporate Investments		(520	)		445		(295	)		(369	)		112			32		(7	)
Strategic and other investments		869			1,083		271			72			302			224		168

Total equity investment income (loss) included in All Other		265			3,745		(387	)		(326	)		710			268		278
Total equity investment income (loss) included in the business segments		274			319		(404	)		10			(118	)		786		39

Total consolidated equity investment income (loss)	$	539		$	4,064	$	(791	)	$	(316	)	$	592		$	1,054	$	317

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		30

Bank of America Corporation and Subsidiaries

Outstanding Loans and Leases

(Dollars in millions)


	December 31 2008		September 30 2008		Increase (Decrease)
Consumer
Residential mortgage	$	247,999	$	256,989	$	(8,990	)
Home equity		152,547		151,938		609
Discontinued real estate ⁽¹⁾		19,981		22,081		(2,100	)
Credit card - domestic		64,128		63,012		1,116
Credit card - foreign		17,146		18,338		(1,192	)
Direct/Indirect consumer⁽²⁾		83,436		82,849		587
Other consumer ⁽³⁾		3,442		3,680		(238	)

Total consumer		588,679		598,887		(10,208	)


Commercial
Commercial - domestic ⁽⁴⁾		219,233		219,303		(70	)
Commercial real estate ⁽⁵⁾		64,701		63,736		965
Commercial lease financing		22,400		22,416		(16	)
Commercial - foreign		31,020		32,951		(1,931	)

Total commercial loans excluding loans measured at fair value		337,354		338,406		(1,052	)
Commercial loans measured at fair value ⁽⁶⁾		5,413		5,383		30

Total commercial		342,767		343,789		(1,022	)

Total loans and leases	$	931,446	$	942,676	$	(11,230	)

(1)

At December 31, 2008 and September 30, 2008, includes $18.2 billion and $20.1 billion of pay option loans, and $1.8 billion and $1.9 billion of subprime loans obtained as part of the acquisition of Countrywide. The Corporation no longer originates these products.

(2)

Includes foreign consumer loans of $1.8 billion and $2.4 billion at December 31, 2008 and September 30, 2008.

(3)

Includes consumer finance loans of $2.6 billion and $2.7 billion, and other foreign consumer loans of $618 million and $736 million at December 31, 2008 and September 30, 2008.

(4)

Includes small business commercial—domestic loans, primarily card related, of $19.1 billion and $19.4 billion at December 31, 2008 and September 30, 2008.

(5)

Includes domestic commercial real estate loans of $63.7 billion and $62.7 billion, and foreign commercial real estate loans of $979 million and $1.0 billion at December 31, 2008 and September 30, 2008.

(6)

Certain commercial loans are measured at fair value in accordance with SFAS 159 and include commercial—domestic loans of $3.5 billion and $4.0 billion, commercial—foreign loans of $1.7 billion and $1.2 billion, and commercial real estate loans of $203 million and $213 million at December 31, 2008 and September 30, 2008.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		31

Bank of America Corporation and Subsidiaries

Quarterly Average Loans and Leases by Business Segment

(Dollars in millions)


	Fourth Quarter 2008
	Total Corporation		Global Consumer and Small Business Banking ⁽¹⁾		Global Corporate and Investment Banking		Global Wealth and Investment Management		All Other ⁽¹⁾
Consumer
Residential mortgage	$	253,468	$	17	$	519	$	35,278	$	217,654
Home equity		152,035		121,129		919		24,621		5,366
Discontinued real estate		21,324		—		—		—		21,324
Credit card - domestic		64,906		152,175		—		—		(87,269	)
Credit card - foreign		17,211		29,058		—		—		(11,847	)
Direct/Indirect consumer		83,331		39,116		40,143		4,647		(575	)
Other consumer		3,544		946		10		17		2,571

Total consumer		595,819		342,441		41,591		64,563		147,224

Commercial
Commercial - domestic		226,095		20,047		183,517		22,370		161
Commercial real estate		64,586		260		62,412		1,874		40
Commercial lease financing		22,069		—		24,324		—		(2,255	)
Commercial - foreign		32,994		1,366		31,535		67		26

Total commercial		345,744		21,673		301,788		24,311		(2,028	)

Total loans and leases	$	941,563	$	364,114	$	343,379	$	88,874	$	145,196


	Third Quarter 2008
	Total Corporation		Global Consumer and Small Business Banking ⁽¹⁾		Global Corporate and Investment Banking		Global Wealth and Investment Management		All Other ⁽¹⁾
Consumer
Residential mortgage	$	260,748	$	10	$	616	$	35,050	$	225,072
Home equity		151,142		121,089		887		23,644		5,522
Discontinued real estate		22,031		—		—		—		22,031
Credit card - domestic		63,414		153,037		—		—		(89,623	)
Credit card - foreign		17,075		33,371		—		—		(16,296	)
Direct/Indirect consumer		85,392		38,860		42,205		5,013		(686	)
Other consumer		3,723		1,097		18		18		2,590

Total consumer		603,525		347,464		43,726		63,725		148,610

Commercial
Commercial - domestic		224,117		20,505		181,204		22,707		(299	)
Commercial real estate		63,220		355		61,139		1,740		(14	)
Commercial lease financing		22,585		—		24,608		—		(2,023	)
Commercial - foreign		33,467		1,566		31,817		81		3

Total commercial		343,389		22,426		298,768		24,528		(2,333	)

Total loans and leases	$	946,914	$	369,890	$	342,494	$	88,253	$	146,277


	Fourth Quarter 2007
	Total Corporation		Global Consumer and Small Business Banking ⁽¹⁾		Global Corporate and Investment Banking		Global Wealth and Investment Management		All Other ⁽¹⁾
Consumer
Residential mortgage	$	277,058	$	12	$	1,007	$	33,758	$	242,281
Home equity		112,369		84,000		976		23,319		4,074
Discontinued real estate		n/a		n/a		n/a		n/a		n/a
Credit card - domestic		60,063		146,901		—		—		(86,838	)
Credit card - foreign		14,329		31,510		—		—		(17,181	)
Direct/Indirect consumer		75,138		33,278		39,613		4,980		(2,733	)
Other consumer		4,206		1,087		19		25		3,075

Total consumer		543,163		296,788		41,615		62,082		142,678

Commercial
Commercial - domestic		213,200		18,817		175,613		19,388		(618	)
Commercial real estate		59,702		489		57,945		1,262		6
Commercial lease financing		22,239		—		24,359		—		(2,120	)
Commercial - foreign		29,815		1,535		28,090		84		106

Total commercial		324,956		20,841		286,007		20,734		(2,626	)

Total loans and leases	$	868,119	$	317,629	$	327,622	$	82,816	$	140,052

(1)

Global Consumer and Small Business Banking, specifically Card Services, is presented on a managed basis with a corresponding offset recorded in All Other.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		32

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Commercial Utilized				Total Commercial Committed
	December 31 2008	September 30 2008	Increase (Decrease)		December 31 2008		September 30 2008		Increase (Decrease)
Real estate⁽⁴⁾	$ 79,766	$ 77,955	$ 1,811		$103,889		$ 105,287		$ (1,398	)
Diversified financials	50,327	49,917	410		103,306		99,909		3,397
Government and public education	39,386	35,716	3,670		58,608		55,841		2,767
Capital goods	27,588	27,904	(316	)	52,522		53,006		(484	)
Retailing	30,736	32,372	(1,636	)	50,102		52,332		(2,230	)
Healthcare equipment and services	31,280	27,479	3,801		46,785		44,189		2,596
Consumer services	28,715	27,469	1,246		43,948		42,967		981
Materials	22,825	22,139	686		38,105		37,529		576
Commercial services and supplies	24,095	21,698	2,397		34,867		31,773		3,094
Individuals and trusts	22,752	24,071	(1,319	)	33,045		34,067		(1,022	)
Food, beverage and tobacco	17,257	14,899	2,358		28,521		28,624		(103	)
Banks	22,134	25,636	(3,502	)	26,493		30,699		(4,206	)
Energy	11,885	12,226	(341	)	22,732		23,557		(825	)
Media	8,939	8,690	249		19,301		19,966		(665	)
Utilities	8,230	7,549	681		19,272		18,998		274
Transportation	13,050	12,569	481		18,561		18,258		303
Insurance	11,223	9,377	1,846		17,855		16,924		931
Religious and social organizations	9,539	9,020	519		12,576		12,191		385
Consumer durables and apparel	6,219	6,100	119		10,862		10,798		64
Technology hardware and equipment	3,971	3,889	82		10,371		10,871		(500	)
Pharmaceuticals and biotechnology	3,721	3,326	395		10,111		9,336		775
Software and services	4,093	4,268	(175	)	9,590		10,130		(540	)
Telecommunication services	3,681	3,851	(170	)	8,036		8,214		(178	)
Food and staples retailing	4,282	3,934	348		7,012		6,504		508
Automobiles and components	3,093	2,788	305		6,081		5,726		355
Household and personal products	1,137	1,168	(31	)	2,817		2,935		(118	)
Semiconductors and semiconductor equipment	1,105	1,036	69		1,822		1,782		40
Other	7,720	7,399	321		8,142		7,975		167
Total commercial credit exposure by industry	$498,749	$484,445	$14,304		$805,332		$800,388		$ 4,944
Net credit default protection purchased on total commitments ⁽⁵⁾					$ (9,654	)	$ (8,914	)

(1)

Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held-for-sale, commercial letters of credit, bankers’ acceptances, securitized assets, foreclosed properties and other collateral acquired. Derivative assets are reported on a mark-to-market basis and have been reduced by the amount of cash collateral applied of $34.8 billion and $18.1 billion at December 31, 2008 and September 30, 2008. In addition to cash collateral, derivative assets are also collateralized by $7.7 billion and $4.0 billion of primarily other marketable securities at December 31, 2008 and September 30, 2008 for which the credit risk has not been reduced.

(2)

Total commercial utilized and total commercial committed exposure includes loans and letters of credit measured at fair value in accordance with SFAS 159 and are comprised of loans outstanding of $5.4 billion at both December 31, 2008 and September 30, 2008 and issued letters of credit at notional value of $1.4 billion and $1.3 billion for the same periods. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $15.5 billion and $16.0 billion at December 31, 2008 and September 30, 2008.

(3)

Includes small business commercial - domestic exposure.

(4)

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

(5)

Represents net notional credit protection purchased.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		33

Bank of America Corporation and Subsidiaries

Net Credit Default Protection by Maturity Profile⁽¹⁾


	December 31		September 30
	2008		2008
Less than or equal to one year	1	%	(4	)	%
Greater than one year and less than or equal to five years	92		94
Greater than five years	7		10

Total net credit default protection	100	%	100		%

(1)

In order to mitigate the cost of purchasing ideal levels of credit protection, credit exposure can be added by selling credit protection. The distribution of maturities for net credit default protection purchased is shown as positive percentages and the distribution of maturities for net credit protection sold as negative percentages.

Net Credit Default Protection by Credit Exposure Debt Rating⁽¹⁾

(Dollars in millions)


	December 31, 2008					September 30, 2008
Ratings	Net Notional		Percent			Net Notional		Percent
AAA	$ 30		(0.3	)	%	$ 48		(0.5	)	%
AA	(103	)	1.1			(51	)	0.6
A	(2,800	)	29.0			(3,269	)	36.7
BBB	(4,856	)	50.2			(4,186	)	47.0
BB	(1,948	)	20.2			(1,368	)	15.3
B	(579	)	6.0			(194	)	2.2
CCC and below	(278	)	2.9			(55	)	0.6
NR⁽²⁾	880		(9.1	)		161		(1.9	)

Total net credit default protection	$(9,654	)	100.0		%	$(8,914	)	100.0		%

(1)

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

(2)

In addition to unrated names, “NR” includes $948 million and $200 million in net credit default swap index positions at December 31, 2008 and at September 30, 2008. While index positions are principally investment grade, credit default swaps indices include names in and across each of the ratings categories.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		34

Bank of America Corporation and Subsidiaries

Selected Emerging Markets ⁽¹⁾

(Dollars in millions)


	Loans and Leases, and Loan Commitments	Other Financing ⁽²⁾	Derivative Assets ⁽³⁾	Securities/ Other Investments ⁽⁴⁾	Total Cross–border Exposure ⁽⁵⁾	Local Country Exposure Net of Local Liabilities ⁽⁶⁾	Total Emerging Markets Exposure December 31, 2008	Increase (Decrease) from September 30, 2008
Region/Country
Asia Pacific
China ⁽⁷⁾	$ 285	$ 48	$ 499	$19,827	$20,659	$ 46	$20,705	$4,759
South Korea	665	871	1,635	1,505	4,676	—	4,676	(280	)
India	1,521	689	1,045	1,179	4,434	—	4,434	(111	)
Singapore	347	73	813	336	1,569	—	1,569	394
Taiwan	304	26	60	29	419	423	842	(141	)
Hong Kong	429	28	143	81	681	—	681	61
Other Asia Pacific ⁽⁸⁾	187	97	40	281	605	—	605	(83	)

Total Asia Pacific	3,738	1,832	4,235	23,238	33,043	469	33,512	4,599

Latin America
Mexico ⁽⁹⁾	1,335	301	132	2,264	4,032	125	4,157	(827	)
Brazil ⁽¹⁰⁾	350	407	50	2,544	3,351	518	3,869	(1,166	)
Chile	294	241	30	11	576	3	579	(76	)
Other Latin America ⁽⁸⁾	150	273	2	67	492	155	647	(209	)

Total Latin America	2,129	1,222	214	4,886	8,451	801	9,252	(2,278	)

Middle East and Africa
Bahrain	269	7	59	854	1,189	—	1,189	(42	)
Other Middle East and Africa ⁽⁸⁾	661	131	367	107	1,266	—	1,266	(41	)

Total Middle East and Africa	930	138	426	961	2,455	—	2,455	(83	)

Central and Eastern Europe ⁽⁸⁾	65	114	262	188	629	—	629	190

Total emerging market exposure	$6,862	$3,306	$5,137	$29,273	$44,578	$1,270	$45,848	$2,428

(1)

There is no generally accepted definition of emerging markets. The definition that we use includes all countries in Asia Pacific excluding Japan, Australia and New Zealand; all countries in Latin America excluding Cayman Islands and Bermuda; all countries in Middle East and Africa; and all countries in Central and Eastern Europe excluding Greece. There was no emerging market exposure included in the portfolio measured at fair value in accordance with SFAS 159 at December 31, 2008 and September 30, 2008.

(2)

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

(3)

Derivative assets are reported on a mark-to-market basis and have been reduced by the amount of cash collateral applied of $152 million and $89 million at December 31, 2008 and September 30, 2008. At December 31, 2008 and September 30, 2008, there were $531 million and $334 million of other marketable securities collateralizing derivative assets for which credit risk has not been reduced.

(4)

Generally, cross-border resale agreements are presented based on the domicile of the counterparty, consistent with Federal Financial Institutions Examination Council (FFIEC) reporting rules. Cross-border resale agreements where the underlying securities are U.S. Treasury securities, in which case the domicile is the U.S., are excluded from this presentation.

(5)

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

(6)

Local country exposure includes amounts payable to the Corporation by borrowers with a country of residence in which the credit is booked, regardless of the currency in which the claim is denominated. Local funding or liabilities are subtracted from local exposures as allowed by the FFIEC. Total amount of available local liabilities funding local country exposure at December 31, 2008 was $12.6 billion compared to $17.6 billion at September 30, 2008. Local liabilities at December 31, 2008 in Asia Pacific and Latin America were $12.1 billion and $538 million, of which $4.9 billion were in Singapore, $2.2 billion in Hong Kong, $1.7 billion in South Korea, $1.0 billion in India, and $882 million in China. There were no other countries with available local liabilities funding local country exposure greater than $500 million.

(7)

Securities/Other Investments include an investment of $19.7 billion in China Construction Bank (CCB).

(8)

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

(9)

Securities/Other Investments include an investment of $2.1 billion in Grupo Financiero Santander, S.A.

(10)

Securities/Other Investments include an investment of $2.5 billion in Banco Itaú Holding Financeira S.A.

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		35

Bank of America Corporation and Subsidiaries

Nonperforming Assets

(Dollars in millions)


	December 31 2008		September 30 2008		June 30 2008		March 31 2008		December 31 2007
Residential mortgage	$ 7,044		$ 4,638		$ 3,269		$ 2,576		$ 1,999
Home equity	2,670		2,049		1,851		1,786		1,340
Discontinued real estate	77		33		n/a		n/a		n/a
Direct/Indirect consumer	26		13		11		6		8
Other consumer	91		89		89		91		95

Total consumer	9,908		6,822		5,220		4,459		3,442

Commercial - domestic ⁽¹⁾	2,040		1,566		1,079		980		852
Commercial real estate	3,906		3,090		2,616		1,627		1,099
Commercial lease financing	56		35		40		44		33
Commercial - foreign	290		48		48		54		19

	6,292		4,739		3,783		2,705		2,003
Small business commercial - domestic	205		183		153		169		152

Total commercial	6,497		4,922		3,936		2,874		2,155

Total nonperforming loans and leases	16,405		11,744		9,156		7,333		5,597
Foreclosed properties	1,827		1,832		593		494		351

Total nonperforming assets ^{(2, 3, 4,)}	$18,232		$13,576		$ 9,749		$ 7,827		$ 5,948

Loans past due 90 days or more and still accruing ^{(2, 4, 5)}	$ 5,414		$ 4,819		$ 4,548		$ 4,160		$ 3,736
Nonperforming assets/Total assets ⁽⁶⁾	1.01	%	0.74	%	0.57	%	0.45	%	0.35	%
Nonperforming assets/Total loans, leases and foreclosed properties⁽⁶⁾	1.96		1.45		1.13		0.90		0.68
Nonperforming loans and leases/Total loans and leases outstanding⁽⁶⁾	1.77		1.25		1.06		0.84		0.64
Allowance for credit losses:
Allowance for loan and lease losses	$23,071		$20,346		$17,130		$14,891		$11,588
Reserve for unfunded lending commitments	421		427		507		507		518

Total allowance for credit losses	$23,492		$20,773		$17,637		$15,398		$12,106

Allowance for loan and lease losses/Total loans and leases outstanding ⁽⁶⁾	2.49	%	2.17	%	1.98	%	1.71	%	1.33	%
Allowance for loan and lease losses/Total nonperforming loans and leases⁽⁶⁾	141		173		187		203		207
Reservable commercial utilized criticized exposure ⁽⁷⁾	$36,937		$31,009		$25,998		$21,157		$17,176
Reservable commercial utilized criticized exposure/Commercial utilized exposure ⁽⁷⁾	8.90	%	7.45	%	6.23	%	5.43	%	4.46	%

(1)

Excludes small business commercial - domestic loans.

(2)

Balances do not include loans accounted for in accordance with SOP 03-3 even though the customer may be contractually past due. Loans accounted for in accordance with SOP 03-3 were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan.

(3)

Balances do not include nonperforming loans held-for-sale included in other assets of $1.3 billion, $848 million, $388 million, $327 million and $188 million at December 31, 2008, September 30, 2008, June 30, 2008, March 31, 2008 and December 31, 2007, respectively.

(4)

Balances do not include loans measured at fair value in accordance with SFAS 159. At December 31, 2008, September 30, 2008, June 30, 2008, March 31, 2008 and December 31, 2007, there were no nonperforming loans measured at fair value in accordance with SFAS 159. At June 30, 2008, there were $81 million of loans past due 90 days or more and still accruing interest measured at fair value in accordance with SFAS 159. At December 31, 2008, September 30, 2008, March 31, 2008 and December 31, 2007, there were no loans past due 90 days or more and still accruing interest measured at fair value in accordance with SFAS 159.

(5)

Balances do not include loans held-for-sale past due 90 days or more and still accruing interest included in other assets of $31 million, $138 million, $32 million, $69 million and $79 million at December 31, 2008, September 30, 2008, June 30, 2008, March 31, 2008 and December 31, 2007, respectively.

(6)

Ratios do not include loans measured at fair value in accordance with SFAS 159 of $5.4 billion, $5.4 billion, $5.0 billion, $5.1 billion and $4.6 billion at December 31, 2008, September 30, 2008, June 30, 2008, March 31, 2008 and December 31, 2007, respectively.

(7)

Criticized exposure and ratios exclude assets held-for-sale, exposure measured at fair value in accordance with SFAS 159 and other nonreservable exposure. Including assets held-for-sale, other nonreservable exposure and commercial loans measured at fair value, the ratios would have been 9.45 percent, 7.94 percent, 6.62 percent, 6.12 percent and 4.77 percent at December 31, 2008, September 30, 2008, June 30, 2008, March 31, 2008 and December 31, 2007, respectively.

n/a = not applicable

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

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		36

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Fourth Quarter 2008				Third Quarter 2008				Second Quarter 2008				First Quarter 2008				Fourth Quarter 2007
Held Basis	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
Residential mortgage	$ 466		0.73	%	$ 242		0.37	%	$ 151		0.24	%	$ 66		0.10	%	$ 27		0.04	%
Home equity	1,113		2.92		964		2.53		923		3.09		496		1.71		179		0.63
Discontinued real estate	19		0.36		(3	)	(0.05	)	n/a		n/a		n/a		n/a		n/a		n/a
Credit card - domestic	1,244		7.63		1,094		6.86		976		6.36		847		5.39		738		4.87
Credit card - foreign	162		3.75		148		3.46		132		3.21		109		2.87		108		2.99
Direct/Indirect consumer	1,054		5.03		845		3.94		660		3.22		555		2.84		456		2.41
Other consumer	124		13.79		106		11.36		83		8.47		86		8.61		96		9.08

Total consumer	4,182		2.79		3,396		2.24		2,925		2.17		2,159		1.58		1,604		1.17

Commercial - domestic ⁽²⁾	255		0.50		117		0.23		70		0.14		77		0.16		64		0.13
Commercial real estate	382		2.36		262		1.65		136		0.88		107		0.70		17		0.12
Commercial lease financing	31		0.57		8		0.13		6		0.11		15		0.27		17		0.31
Commercial - foreign	129		1.63		46		0.56		5		0.06		(7	)	(0.10	)	2		0.03

	797		0.99		433		0.54		217		0.28		192		0.25		100		0.13
Small business commercial - domestic	562		11.55		527		10.64		477		9.59		364		7.44		281		5.92

Total commercial	1,359		1.59		960		1.13		694		0.84		556		0.69		381		0.47

Total net charge-offs	$5,541		2.36		$4,356		1.84		$3,619		1.67		$2,715		1.25		$1,985		0.91

By Business Segment
Global Consumer and Small Business Banking ⁽³⁾	$5,707		6.24	%	$5,112		5.50	%	$4,687		5.59	%	$3,676		4.49	%	$3,028		3.78	%
Global Corporate and Investment Banking	1,006		1.18		604		0.71		318		0.39		328		0.41		214		0.26
Global Wealth and Investment Management	144		0.65		108		0.49		92		0.42		52		0.24		28		0.13
All Other ⁽³⁾	(1,316	)	(3.61	)	(1,468	)	(3.99	)	(1,478	)	(5.07	)	(1,341	)	(4.04	)	(1,285	)	(3.64	)

Total net charge-offs	$5,541		2.36		$4,356		1.84		$3,619		1.67		$2,715		1.25		$1,985		0.91

Supplemental managed basis data
Credit card - domestic	$2,929		7.66	%	$2,643		6.87	%	$2,414		6.36	%	$2,068		5.48	%	$1,816		4.90	%
Credit card - foreign	334		4.57		353		4.21		337		4.11		304		3.84		322		4.06

Total credit card managed net losses	$3,263		7.16		$2,996		6.40		$2,751		5.96		$2,372		5.19		$2,138		4.75

(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 excluding loans measured at fair value in accordance with SFAS 159 during the period for each loan and lease category.

(2)

Excludes small business commercial - domestic loans.

(3)

Global Consumer and Small Business Banking is presented on a managed basis, specifically Card Services. The securitization offset is included within All Other.

n/a = not applicable

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

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		37

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)


	Year Ended December 31
	2008				2007
Held Basis	Amount		Percent		Amount		Percent
Residential mortgage	$ 925		0.36	%	$ 56		0.02	%
Home equity	3,496		2.59		274		0.28
Discontinued real estate	16		0.15		n/a		n/a
Credit card - domestic	4,161		6.57		3,063		5.29
Credit card - foreign	551		3.34		379		3.06
Direct/Indirect consumer	3,114		3.77		1,373		1.96
Other consumer	399		10.46		278		6.18

Total consumer	12,662		2.21		5,423		1.07

Commercial - domestic ⁽²⁾	519		0.26		127		0.08
Commercial real estate	887		1.41		47		0.11
Commercial lease financing	60		0.27		2		0.01
Commercial - foreign	173		0.55		1		—

	1,639		0.52		177		0.07
Small business commercial - domestic	1,930		9.80		880		5.13

Total commercial	3,569		1.07		1,057		0.40

Total net charge-offs	$16,231		1.79		$ 6,480		0.84

By Business Segment:
Global Consumer and Small Business Banking ⁽³⁾	$19,182		5.48	%	$10,806		3.68	%
Global Corporate and Investment Banking	2,256		0.68		503		0.19
Global Wealth and Investment Management	396		0.45		66		0.09
All Other ⁽³⁾	(5,603	)	(4.13	)	(4,895	)	(3.66	)

Total net charge-offs	$16,231		1.79		$ 6,480		0.84

Supplemental managed basis data
Credit card - domestic	$10,054		6.60	%	$ 6,960		4.91	%
Credit card - foreign	1,328		4.17		1,254		4.24

Total credit card managed net losses	$11,382		6.18		$ 8,214		4.79

(1)

Net charge-off/loss ratios are calculated as held net charge-offs or managed net losses divided by average outstanding held or managed loans and leases excluding loans measured at fair value in accordance with SFAS 159 during the period for each loan and lease category.

(2)

Excludes small business commercial - domestic loans.

(3)

Global Consumer and Small Business Banking is presented on a managed basis, specifically Card Services. The securitization offset is included within All Other.

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

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		38

Bank of America Corporation and Subsidiaries

Allocation of the Allowance for Credit Losses by Product Type

(Dollars in millions)


	December 31, 2008			September 30, 2008			December 31, 2007
Allowance for loan and lease losses	Amount	Percent of loans and leases outstanding ⁽¹⁾		Amount	Percent of loans and leases outstanding ⁽¹⁾		Amount	Percent of loans and leases outstanding ⁽¹⁾
Residential mortgage	$ 1,382	0.56	%	$ 1,376	0.54	%	$ 207	0.08	%
Home equity	5,385	3.53		4,744	3.12		963	0.84
Discontinued real estate	658	3.29		82	0.37		n/a	n/a
Credit card - domestic	3,947	6.16		3,624	5.75		2,919	4.44
Credit card - foreign	742	4.33		633	3.45		441	2.95
Direct/Indirect consumer	4,341	5.20		3,742	4.52		2,077	2.71
Other consumer	203	5.87		184	5.02		151	3.61

Total consumer	16,658	2.83		14,385	2.40		6,758	1.23

Commercial - domestic ⁽²⁾	4,339	1.98		4,072	1.86		3,194	1.53
Commercial real estate	1,465	2.26		1,376	2.16		1,083	1.77
Commercial lease financing	223	1.00		210	0.94		218	0.97
Commercial - foreign	386	1.25		303	0.92		335	1.18

Total commercial ⁽³⁾	6,413	1.90		5,961	1.76		4,830	1.51

Allowance for loan and lease losses	23,071	2.49		20,346	2.17		11,588	1.33
Reserve for unfunded lending commitments	421			427			518

Allowance for credit losses	$23,492			$20,773			$12,106

(1)

Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans measured in accordance with SFAS 159 for each loan and lease category. Loans measured at fair value include commercial - domestic loans of $3.5 billion, $4.0 billion and $3.5 billion, commercial - foreign loans of $1.7 billion, $1.2 billion and $790 million, and commercial real estate loans of $203 million, $213 million and $304 million at December 31, 2008, September 30, 2008 and December 31, 2007.

(2)

Includes allowance for small business commercial - domestic loans of $2.4 billion, $2.2 billion and $1.4 billion at December 31, 2008, September 30, 2008 and December 31, 2007.

(3)

Includes allowance for loan and lease losses for impaired commercial loans of $691 million, $561 million and $123 million at December 31, 2008, September 30, 2008 and December 31, 2007.

n/a = not applicable

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		39

Exhibit A: Non-GAAP Reconciliations

Bank of America Corporation and Subsidiaries

Global Consumer and Small Business Banking - Reconciliation

(Dollars in millions)


	Year Ended December 31, 2008			Year Ended December 31, 2007			Fourth Quarter 2008
	Managed Basis⁽¹⁾	Securitization Impact⁽²⁾	Held Basis	Managed Basis⁽¹⁾	Securitization Impact⁽²⁾	Held Basis	Managed Basis⁽¹⁾	Securitization Impact⁽²⁾	Held Basis
Net interest income ⁽³⁾	$ 33,851	$ (8,701)	$ 25,150	$ 28,712	$ (8,027)	$ 20,685	$ 9,274	$ (2,299)	$ 6,975
Noninterest income:
Card income	10,057	2,250	12,307	10,194	3,356	13,550	2,474	482	2,956
Service charges	6,807	—	6,807	6,007	—	6,007	1,677	—	1,677
Mortgage banking income	4,422	—	4,422	1,332	—	1,332	1,602	—	1,602
Insurance premiums	1,968	(186)	1,782	912	(250)	662	765	(34)	731
All other income	1,239	(33)	1,206	698	(38)	660	119	(6)	113

Total noninterest income	24,493	2,031	26,524	19,143	3,068	22,211	6,637	442	7,079

Total revenue, net of interest expense	58,344	(6,670)	51,674	47,855	(4,959)	42,896	15,911	(1,857)	14,054
Provision for credit losses	26,841	(6,670)	20,171	12,920	(4,959)	7,961	7,584	(1,857)	5,727
Noninterest expense	24,937	—	24,937	20,349	—	20,349	7,145	—	7,145

Income before income taxes	6,566	—	6,566	14,586	—	14,586	1,182	—	1,182
Income tax expense⁽³⁾	2,332	—	2,332	5,224	—	5,224	347	—	347

Net income	$ 4,234	$ —	$ 4,234	$ 9,362	$ —	$ 9,362	$ 835	$ —	$ 835

Balance sheet
Average - total loans and leases	$350,264	$(104,401)	$245,863	$294,030	$(103,284)	$190,746	$364,114	$ (99,116)	$264,998
Period end - total loans and leases	365,198	(100,960)	264,238	325,759	(102,967)	222,792	365,198	(100,960)	264,238

	Third Quarter 2008			Second Quarter 2008			First Quarter 2008
	Managed Basis⁽¹⁾	Securitization Impact⁽²⁾	Held Basis	Managed Basis⁽¹⁾	Securitization Impact⁽²⁾	Held Basis	Managed Basis⁽¹⁾	Securitization Impact⁽²⁾	Held Basis
Net interest income ⁽³⁾	$ 8,946	$ (2,207)	$ 6,739	$ 7,985	$ (2,140)	$ 5,845	$ 7,646	$ (2,055)	$ 5,591
Noninterest income:
Card income	2,296	507	2,803	2,560	557	3,117	2,727	704	3,431
Service charges	1,822	—	1,822	1,743	—	1,743	1,565	—	1,565
Mortgage banking income	1,756	—	1,756	409	—	409	655	—	655
Insurance premiums	709	(44)	665	253	(52)	201	241	(56)	185
All other income	408	(10)	398	208	(8)	200	504	(9)	495

Total noninterest income	6,991	453	7,444	5,173	497	5,670	5,692	639	6,331

Total revenue, net of interest expense	15,937	(1,754)	14,183	13,158	(1,643)	11,515	13,338	(1,416)	11,922
Provision for credit losses	6,505	(1,754)	4,751	6,382	(1,643)	4,739	6,370	(1,416)	4,954
Noninterest expense	7,267	—	7,267	5,355	—	5,355	5,170	—	5,170

Income before income taxes	2,165	—	2,165	1,421	—	1,421	1,798	—	1,798
Income tax expense⁽³⁾	826	—	826	503	—	503	656	—	656

Net income	$ 1,339	$ —	$ 1,339	$ 918	$ —	$ 918	$ 1,142	$ —	$ 1,142

Balance sheet
Average - total loans and leases	$369,890	$(105,919)	$263,971	$337,403	$(107,438)	$229,965	$329,282	$(105,176)	$224,106
Period end - total loans and leases	367,673	(102,048)	265,625	340,392	(108,520)	231,872	331,441	(107,847)	223,594

	Fourth Quarter 2007
	Managed Basis⁽¹⁾	Securitization Impact⁽²⁾	Held Basis
Net interest income ⁽³⁾	$ 7,431	$ (2,071)	$ 5,360
Noninterest income:
Card income	2,627	828	3,455
Service charges	1,623	—	1,623
Mortgage banking income	490	—	490
Insurance premiums	250	(57)	193
All other income	200	(10)	190

Total noninterest income	5,190	761	5,951

Total revenue, net of interest expense	12,621	(1,310)	11,311
Provision for credit losses	4,287	(1,310)	2,977
Noninterest expense	5,572	—	5,572

Income before income taxes	2,762	—	2,762
Income tax expense⁽³⁾	863	—	863

Net income	$ 1,899	$ —	$ 1,899

Balance sheet
Average - total loans and leases	$317,629	$(105,091)	$212,538
Period end - total loans and leases	325,759	(102,967)	222,792

(1)

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

(2)

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

(3)

Fully taxable-equivalent basis

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

The Corporation reports Global Consumer and Small Business Banking’s results, specifically Card Services, on a managed basis. This basis of presentation excludes the Corporation’s securitized mortgage and home equity portfolios for which the Corporation retains servicing. Reporting on a managed basis is consistent with the way that management evaluates the results of Global Consumer and Small Business Banking. 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. Loan securitization removes loans from the Consolidated Balance Sheet through the sale of loans to an off-balance sheet qualified special purpose entity which is excluded from the Corporation’s Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States (GAAP).

The performance of the managed portfolio is important in understanding Global Consumer and Small Business Banking’s and 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, retained excess servicing income is exposed to similar credit risk and repricing of interest rates as held loans. Global Consumer and Small Business Banking’s managed income statement line items differ from a held basis reported as follows:

•

Managed net interest income includes Global Consumer and Small Business Banking’s 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 includes Global Consumer and Small Business Banking’s noninterest income on a held basis less the reclassification of certain components of card income (e.g., excess servicing income) to record managed net interest income and provision for credit losses. Noninterest income, both on a held and managed basis, also includes the impact of adjustments to the interest-only strip that are recorded in card income as management continues to manage this impact within Global Consumer and Small Business Banking.

•

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		40

Exhibit A: Non-GAAP Reconciliations - continued

Bank of America Corporation and Subsidiaries

All Other - Reconciliation

(Dollars in millions)


	Year Ended December 31, 2008			Year Ended December 31, 2007			Fourth Quarter 2008
	Reported Basis⁽¹⁾	Securitization Offset⁽²⁾	As Adjusted	Reported Basis⁽¹⁾	Securitization Offset⁽²⁾	As Adjusted	Reported Basis⁽¹⁾	Securitization Offset⁽²⁾	As Adjusted
Net interest income ⁽³⁾	$ (8,610)	$ 8,701	$ 91	$ (7,645)	$ 8,027	$ 382	$ (2,159)	$ 2,299	$ 140
Noninterest income:
Card income	2,164	(2,250)	(86)	2,817	(3,356)	(539)	368	(482)	(114)
Equity investment income (loss)	265	—	265	3,745	—	3,745	(387)	—	(387)
Gains (losses) on sales of debt securities	1,133	—	1,133	180	—	180	784	—	784
All other income (loss)	(545)	219	(326)	426	288	714	(256)	40	(216)

Total noninterest income	3,017	(2,031)	986	7,168	(3,068)	4,100	509	(442)	67

Total revenue, net of interest expense	(5,593)	6,670	1,077	(477)	4,959	4,482	(1,650)	1,857	207
Provision for credit losses	(3,760)	6,670	2,910	(5,207)	4,959	(248)	(616)	1,857	1,241
Merger and restructuring charges	935	—	935	410	—	410	306	—	306
All other noninterest expense	372	—	372	87	—	87	199	—	199

Income (loss) before income taxes	(3,140)	—	(3,140)	4,233	—	4,233	(1,539)	—	(1,539)
Income tax expense (benefit)⁽³⁾	(1,512)	—	(1,512)	1,083	—	1,083	(846)	—	(846)

Net income (loss)	$ (1,628)	$ —	$ (1,628)	$ 3,150	$ —	$ 3,150	$ (693)	$ —	$ (693)

Balance sheet
Average - total loans and leases	$135,671	$104,401	$240,072	$133,926	$103,284	$237,210	$145,196	$ 99,116	$244,312
Period end - total loans and leases	136,156	100,960	237,116	139,943	102,967	242,910	136,156	100,960	237,116

	Third Quarter 2008			Second Quarter 2008			First Quarter 2008
	Reported Basis⁽¹⁾	Securitization Offset⁽²⁾	As Adjusted	Reported Basis⁽¹⁾	Securitization Offset⁽²⁾	As Adjusted	Reported Basis⁽¹⁾	Securitization Offset⁽²⁾	As Adjusted
Net interest income ⁽³⁾	$ (2,432)	$ 2,207	$ (225)	$ (2,034)	$ 2,140	$ 106	$ (1,985)	$ 2,055	$ 70
Noninterest income:
Card income	537	(507)	30	595	(557)	38	664	(704)	(40)
Equity investment income	(326)	—	(326)	710	—	710	268	—	268
Gains on sales of debt securities	(2)	—	(2)	131	—	131	220	—	220
All other income (loss)	68	54	122	(100)	60	(40)	(257)	65	(192)

Total noninterest income	277	(453)	(176)	1,336	(497)	839	895	(639)	256

Total revenue, net of interest expense	(2,155)	1,754	(401)	(698)	1,643	945	(1,090)	1,416	326
Provision for credit losses	(984)	1,754	770	(1,032)	1,643	611	(1,128)	1,416	288
Merger and restructuring charges	247	—	247	212	—	212	170	—	170
All other noninterest expense	(45)	—	(45)	58	—	58	160	—	160

Income (loss) before income taxes	(1,373)	—	(1,373)	64	—	64	(292)	—	(292)
Income tax expense (benefit)⁽³⁾	(591)	—	(591)	(86)	—	(86)	11	—	11

Net income (loss)	$ (782)	$ —	$ (782)	$ 150	$ —	$ 150	$ (303)	$ —	$ (303)

Balance sheet
Average - total loans and leases	$146,277	$105,919	$252,196	$117,335	$107,438	$224,773	$133,654	$105,176	$238,830
Period end - total loans and leases	146,379	102,048	248,427	95,855	108,520	204,375	127,038	107,847	234,885

	Fourth Quarter 2007
	Reported Basis⁽¹⁾	Securitization Offset⁽²⁾	As Adjusted
Net interest income ⁽³⁾	$ (2,058)	$ 2,071	$ 13
Noninterest income:
Card income	680	(828)	(148)
Equity investment income	278	—	278
Gains on sales of debt securities	110	—	110
All other income (loss)	750	67	817

Total noninterest income	1,818	(761)	1,057

Total revenue, net of interest expense	(240)	1,310	1,070
Provision for credit losses	(1,285)	1,310	25
Merger and restructuring charges	140	—	140
All other noninterest expense	(53)	—	(53)

Income before income taxes	958	—	958
Income tax expense⁽³⁾	128	—	128

Net income	$ 830	$ —	$ 830

Balance sheet
Average - total loans and leases	$140,052	$105,091	$245,143
Period end - total loans and leases	139,943	102,967	242,910

(1)

Provision for credit losses represents provision for credit losses in All Other combined with the Global Consumer and Small Business Banking securitization offset.

(2)

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

(3)

Fully taxable-equivalent basis

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


Information for periods beginning July 1, 2008 includes the Countrywide acquisition; prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.		41

Exhibit B: Selected Fourth Quarter 2008 Merrill Lynch Results

(results are not part of Bank of America fourth quarter results)


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


Merrill Lynch & Co., Inc.
Preliminary Unaudited Earnings Summary		Attachment I

(In millions, except per share amounts)


	For the Three Months Ended			Percent Inc / (Dec)
	Dec. 26 2008	Sept. 26, 2008	Dec. 28 2007	4Q08 vs. 3Q08		4Q08 vs. 4Q07
Revenues
Principal transactions	$(13,109)	$(6,573)	$(12,596)	N/M	%	N/M	%
Commissions	1,450	1,745	1,924	(17)		(25)
Managed accounts and other fee-based revenues	1,295	1,395	1,440	(7)		(10)
Investment banking	813	845	1,267	(4)		(36)
Earnings from equity method investments	(430)	4,401	531	N/M		N/M
Other⁽¹⁾	(3,390)	(2,986)	(2,304)	N/M		N/M

Subtotal	(13,371)	(1,173)	(9,738)	N/M		N/M
Interest and dividend revenues	4,624	9,019	14,170	(49)		(67)
Less interest expense	3,804	7,830	12,624	(51)		(70)

Net interest profit	820	1,189	1,546	(31)		(47)

Revenues, net of interest expense	(12,551)	16	(8,192)	N/M		N/M

Non-interest expenses
Compensation and benefits	3,830	3,483	4,339	10		(12)
Communications and technology	534	546	597	(2)		(11)
Occupancy and related depreciation	316	314	306	1		3
Professional fees	311	242	311	29		0
Brokerage, clearing, and exchange fees	289	348	395	(17)		(27)
Advertising and market development	151	159	249	(5)		(39)
Office supplies and postage	55	48	64	15		(14)
Other ⁽²⁾	3,493	588	467	N/M		N/M
Payment related to price reset on common stock offering	—	2,500	—	N/M		N/M
Restructuring charge	2	39	—	N/M		N/M

Total non-interest expenses	8,981	8,267	6,728	9		33

Pre-tax loss from continuing operations	(21,532)	(8,251)	(14,920)	N/M		N/M
Income tax benefit	(6,237)	(3,131)	(4,623)	N/M		N/M

Net loss from continuing operations	(15,295)	(5,120)	(10,297)	N/M		N/M

Discontinued operations:
Pre-tax (loss)/earnings from discontinued operations	(31)	(53)	795	N/M		N/M
Income tax (benefit)/expense	(15)	(21)	331	N/M		N/M

Net (loss)/earnings from discontinued operations	(16)	(32)	464	N/M		N/M

Net loss	$(15,311)	$(5,152)	$ (9,833)	N/M		N/M

Preferred stock dividends	$ 139	$ 2,319	$ 73	N/M		90

Net loss applicable to common stockholders	$(15,450)	$(7,471)	$ (9,906)	N/M		N/M

Basic loss per common share from continuing operations	(9.61)	(5.56)	(12.57)	N/M		N/M
Basic (loss)/earnings per common share from discontinued operations	(0.01)	(0.02)	0.56	N/M		N/M

Basic loss per common share	$ (9.62)	$ (5.58)	$ (12.01)	N/M		N/M
Diluted loss per common share from continuing operations	(9.61)	(5.56)	(12.57)	N/M		N/M
Diluted (loss)/earnings per common share from discontinued operations	(0.01)	(0.02)	0.56	N/M		N/M

Diluted loss per common share	$ (9.62)	$ (5.58)	$ (12.01)	N/M		N/M
Average shares used in computing earnings per common share
Basic	1,606.6	1,339.0	825.0	20		95
Diluted	1,606.6	1,339.0	825.0	20		95

N/M = Not Meaningful

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

(1)

Includes gains and losses on investment securities, private equity investments, loans and other miscellaneous items.

(2)

Includes $2.3 billion related to goodwill impairment and approximately $0.9 billion of litigation accruals recorded in 4Q08.


Merrill Lynch & Co., Inc. Preliminary Unaudited Earnings Summary		Attachment II

(In millions, except per share amounts)


	For the Year Ended					Percent Inc / (Dec)
	Dec. 26 2008			Dec. 28 2007		Percent Inc / (Dec)
Revenues
Principal transactions	$	(26,183	)	$(12,067	)	N/M		%
Commissions		6,895		7,284		(5	)
Managed accounts and other fee-based revenues		5,544		5,465		1
Investment banking		3,733		5,582		(33	)
Earnings from equity method investments		4,513		1,627		177
Other⁽¹⁾		(9,700	)	(2,190	)	N/M

Subtotal		(15,198	)	5,701		(367	)

Interest and dividend revenues		33,039		56,974		(42	)
Less interest expense		29,558		51,425		(43	)

Net interest profit		3,481		5,549		(37	)


Revenues, net of interest expense		(11,717	)	11,250		N/M


Non-interest expenses
Compensation and benefits		15,000		15,903		(6	)
Communications and technology		2,201		2,057		7
Occupancy and related depreciation		1,267		1,139		11
Professional fees		1,058		1,027		3
Brokerage, clearing, and exchange fees		1,394		1,415		(1	)
Advertising and market development		652		785		(17	)
Office supplies and postage		215		233		(8	)
Other ⁽²⁾		4,705		1,522		209
Payment related to price reset on common stock offering		2,500		—		N/M
Restructuring charge		486		—		N/M


Total non-interest expenses		29,478		24,081		22


Pre-tax loss from continuing operations		(41,195	)	(12,831	)	N/M

Income tax benefit		(14,177	)	(4,194	)	N/M


Net loss from continuing operations		(27,018	)	(8,637	)	N/M


Discontinued operations:
Pre-tax (loss)/earnings from discontinued operations		(141	)	1,397		N/M
Income (benefit)/tax expense		(80	)	537		N/M

Net (loss)/earnings from discontinued operations		(61	)	860		N/M


Net loss	$	(27,079	)	$ (7,777	)	N/M


Preferred stock dividends	$	2,869		$ 270		N/M


Net loss applicable to common stockholders	$	(29,948	)	$ (8,047	)	N/M


Basic loss per common share from continuing operations		(24.39	)	(10.73	)	N/M
Basic (loss)/earnings per common share from discontinued operations		(0.05	)	1.04		N/M

Basic loss per common share	$	(24.44	)	$ (9.69	)	N/M

Diluted loss per common share from continuing operations		(24.39	)	(10.73	)	N/M
Diluted (loss)/earnings per common share from discontinued operations		(0.05	)	1.04		N/M

Diluted loss per common share	$	(24.44	)	$ (9.69	)	N/M

Average shares used in computing earnings per common share
Basic		1,225.6		830.4		48
Diluted		1,225.6		830.4		48

N/M = Not Meaningful

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

(1)

Includes gains and losses on investment securities, private equity investments, loans and other miscellaneous items.

(2)

Includes $2.3 billion related to goodwill impairment recorded in 4Q08, approximately $1.1 billion of litigation accruals and $0.5 billion associated with the auction rate securities repurchase program.

Merrill Lynch & Co., Inc.

Preliminary Segment Data (unaudited)

Attachment III

(Dollars in millions)


	For the Three Months Ended									Percent Inc / (Dec)						For the Year Ended						Percent Inc / (Dec)
	Dec. 26, 2008			Sept. 26, 2008			Dec. 28, 2007			4Q08 vs. 3Q08			4Q08 vs. 4Q07			Dec. 26, 2008			Dec. 28, 2007			Percent Inc / (Dec)
Global Markets & Investment Banking
Global Markets
FICC	$(14,573	)		$(9,943	)		$(15,155	)		N/M		%	N/M		%	$(35,962	)		$(15,873	)		N/M		%
Equity Markets	(1,774	)		6,030			2,171			N/M			N/M			7,866			8,286			(5	)

Total Global Markets net revenues	(16,347	)		(3,913	)		(12,984	)		N/M			N/M			(28,096	)		(7,587	)		N/M
Investment Banking ⁽¹⁾
Origination:
Debt	151			182			217			(17	)		(30	)		931			1,550			(40	)
Equity	296			214			375			38			(21	)		1,047			1,629			(36	)
Strategic Advisory Services	271			354			559			(23	)		(52	)		1,317			1,740			(24	)

Total Investment Banking net revenues	718			750			1,151			(4	)		(38	)		3,295			4,919			(33	)

Total net revenues	(15,629	)		(3,163	)		(11,833	)		N/M			N/M			(24,801	)		(2,668	)		N/M

Non-interest expenses before restructuring charge	5,793			2,833			4,044			104			43			14,912			13,677			9

Restructuring charge	2			18			—			N/M			N/M			331			—			N/M

Pre-tax (loss) / earnings from continuing operations	(21,424	)		(6,014	)		(15,877	)		N/M			N/M			(40,044	)		(16,345	)		N/M

Pre-tax (loss) / earnings from continuing operations, before restructuring charge	(21,422	)		(5,996	)		(15,877	)		N/M			N/M			(39,713	)		(16,345	)		N/M

Pre-tax profit margin	N/M			N/M			N/M									N/M			N/M

Pre-tax profit margin, before restructuring charge	N/M			N/M			N/M									N/M			N/M

Global Wealth Management
Global Private Client
Fee-based revenues	$ 1,387			$ 1,568			$ 1,656			(12	)		(16	)		$ 6,171			$ 6,278			(2	)
Transactional and origination revenues	761			729			972			4			(22	)		3,313			3,887			(15	)
Net interest profit and related hedges⁽²⁾	558			587			565			(5	)		(1	)		2,387			2,318			3
Other revenues	(7	)		110			116			N/M			N/M			288			416			(31	)

Total Global Private Client net revenues	2,699			2,994			3,309			(10	)		(18	)		12,159			12,899			(6	)

Global Investment Management net revenues	(64	)		241			286			N/M			N/M			669			1,122			(40	)

Total net revenues	2,635			3,235			3,595			(19	)		(27	)		12,828			14,021			(9	)

Non-interest expenses before restructuring charge	2,396			2,461			2,681			(3	)		(11	)		10,357			10,391			(0	)

Restructuring charge	—			21			—			N/M			N/M			155			—			N/M

Pre-tax (loss) / earnings from continuing operations	239			753			914			(68	)		(74	)		2,316			3,630			(36	)

Pre-tax (loss) / earnings from continuing operations, before restructuring charge	239			774			914			(69	)		(74	)		2,471			3,630			(32	)

Pre-tax profit margin	9.1		%	23.3		%	25.4		%							18.1		%	25.9		%

Pre-tax profit margin, before restructuring charge	9.1		%	23.9		%	25.4		%							19.3		%	25.9		%

Corporate
Total net revenues	$ 443			$ (56	)		$ 46			N/M			N/M			$ 256			$ (103	)		N/M

Non-interest expenses before restructuring charge⁽³⁾	790			2,934			3			(73	)		N/M			3,723			13			N/M

Restructuring charge	—			—			—			N/M			N/M			—			—			N/M

Pre-tax (loss) / earnings from continuing operations	(347	)		(2,990	)		43			N/M			N/M			(3,467	)		(116	)		N/M

Total
Total net revenues	$(12,551	)		$ 16			$ (8,192	)		N/M			N/M			$(11,717	)		$ 11,250			N/M

Non-interest expenses before restructuring charge	8,979			8,228			6,728			9			33			28,992			24,081			20

Restructuring charge	2			39			—			N/M			N/M			486			—			N/M

Pre-tax (loss) / earnings from continuing operations	(21,532	)		(8,251	)		(14,920	)		N/M			N/M			(41,195	)		(12,831	)		N/M

Pre-tax profit margin	N/M			N/M			N/M									N/M			N/M

N/M = Not Meaningful

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

(1)

A portion of Origination revenue is recorded in Global Wealth Management.

(2)

Includes interest component of non-qualifying derivatives which are included in Other Revenues in Attachment I and II.

(3)

For the year ended 2008 amounts include expenses of $2.5 billion related to the Temasek reset payment in 3Q08, $0.9 billion of litigation accruals recorded in 4Q08 and $0.5 billion associated with the auction rate securities repurchase program.

Merrill Lynch & Co., Inc.

Consolidated Quarterly Earnings (unaudited)

Attachment IV

(In millions)


	4Q07		1Q08		2Q08		3Q08		4Q08
Revenues
Principal transactions	$(12,596	)	$(2,418	)	$(4,083	)	$(6,573	)	$(13,109	)
Commissions
Listed and over-the-counter securities	1,294		1,319		1,221		1,220		1,066
Mutual funds	570		532		539		459		342
Other	60		38		51		66		42

Total	1,924		1,889		1,811		1,745		1,450
Managed accounts and other fee-based revenues
Portfolio service fees	902		892		852		857		764
Asset management fees	179		206		198		196		185
Account fees	120		117		116		115		108
Other fees	239		240		233		227		238

Total	1,440		1,455		1,399		1,395		1,295
Investment banking
Underwriting	717		543		841		490		546
Strategic advisory	550		374		317		355		267

Total	1,267		917		1,158		845		813
Earnings from equity method investments	531		431		111		4,401		(430	)
Other⁽¹⁾	(2,304	)	(1,449	)	(1,875	)	(2,986	)	(3,390	)

Subtotal	(9,738	)	825		(1,479	)	(1,173	)	(13,371	)
Interest and dividend revenues	14,170		11,861		7,535		9,019		4,624
Less interest expense	12,624		9,752		8,172		7,830		3,804

Net interest profit	1,546		2,109		(637	)	1,189		820


Revenues, net of interest expense	(8,192	)	2,934		(2,116	)	16		(12,551	)

Non-Interest Expenses
Compensation and benefits	4,339		4,196		3,491		3,483		3,830
Communications and technology	597		555		566		546		534
Brokerage, clearing, and exchange fees	395		387		370		348		289
Occupancy and related depreciation	306		309		328		314		316
Professional fees	311		242		263		242		311
Advertising and market development	249		176		166		159		151
Office supplies and postage	64		57		55		48		55
Other	467		313		311		588		3,493
Payment related to common stock offering	—		—		—		2,500		—
Restructuring charge	—		—		445		39		2

Total Non-Interest Expenses	6,728		6,235		5,995		8,267		8,981


Pre-tax loss from continuing operations	(14,920	)	(3,301	)	(8,111	)	(8,251	)	(21,532	)
Income tax benefit	(4,623	)	(1,332	)	(3,477	)	(3,131	)	(6,237	)


Net loss from continuing operations	(10,297	)	(1,969	)	(4,634	)	(5,120	)	(15,295	)

Discontinued operations:
Pre-tax earnings/(loss) from discontinued operations	795		(25	)	(32	)	(53	)	(31	)
Income tax expense/(benefit)	331		(32	)	(12	)	(21	)	(15	)

Net earnings/(loss) from discontinued operations	464		7		(20	)	(32	)	(16	)


Net loss	$ (9,833	)	$(1,962	)	$(4,654	)	$(5,152	)	$(15,311	)
Per Common Share Data

	4Q07		1Q08		2Q08		3Q08		4Q08
Loss from continuing operations - Basic	$ (12.57	)	$ (2.20	)	$ (4.95	)	$ (5.56	)	$ (9.61	)
Loss from continuing operations - Diluted	(12.57	)	(2.20	)	(4.95	)	(5.56	)	(9.61	)
Dividends paid	0.35		0.35		0.35		0.35		0.35
Book value	29.34		25.93		21.43		18.59		7.57
Adjusted book value ⁽²⁾	N/M		28.93		24.94		18.90		8.24

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

(1)

Includes gains and losses on investment securities, private equity investments, loans and other miscellaneous items.

(2)

Adjusted book value per common share is calculated by dividing: common stockholders’ equity after giving effect for conversion of convertible preferred on an “if-converted” basis by common shares outstanding adjusted for such conversion.

Merrill Lynch & Co., Inc.

Supplemental Data (unaudited)

Attachment V

(Dollars in billions)


	4Q07	1Q08	2Q08		3Q08		4Q08
Client Assets
U.S.	$ 1,586	$ 1,479	$ 1,447		$ 1,333		$ 1,108
Non - U.S.	165	158	158		142		139

Total Client Assets	1,751	1,637	1,605		1,475		1,247

Assets in Annuitized-Revenue Products	655	607	630		580		466
Net New Money^{(1) (2)}
All Client Accounts	$30	$6	$(5	)	$(3	)	$(10	)

Annuitized-Revenue Products ⁽³⁾	—	11	8		2		(10	)
Balance Sheet Information: ⁽⁴⁾
Short-term Borrowings	$ 24.9	$ 21.6	$ 19.1		$ 25.7		$ 31.2
Deposits	104.0	104.8	100.5		90.0		96.1
Long-term Borrowings	261.0	259.5	270.4		227.3		206.6
Junior Subordinated Notes (related to trust preferred securities)	5.2	5.2	5.2		5.2		5.3

Stockholders’ Equity: ⁽⁴⁾
Preferred Stockholders’ Equity	4.4	11.0	13.7		8.6		8.6
Common Stockholders’ Equity	27.5	25.5	21.1		29.8		12.1

Total Stockholders’ Equity	31.9	36.5	34.8		38.4		20.7
Full-Time Employees ⁽⁵⁾	64,200	63,100	60,000		60,900		58,500

Financial Advisors	16,740	16,660	16,690		16,850		16,090

Common shares outstanding (in millions):
Weighted-average - basic	825.0	974.1	984.1		1,339.0		1,606.6
Weighted-average - diluted	825.0	974.1	984.1		1,339.0		1,606.6
Period-end	939.1	985.1	985.4		1,600.1		1,600.1

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

(1)

Net new money excludes flows associated with the Institutional Advisory Division which serves certain small- and middle-market companies, as well as net inflows at BlackRock from distribution channels other than Merrill Lynch.

(2)

Net new money has been restated to include net inflows of assets which are not held in custody but generate fee revenue.

(3)

Includes both net new client assets into annuitized-revenue products, as well as existing client assets transferred into annuitized-revenue products.

(4)

Balance Sheet Information and Stockholders’ Equity are estimated for 4Q08.

(5)

Excludes full-time employees on salary continuation severance.

Merrill Lynch & Co., Inc.

(Unaudited)

Attachment VI

(Dollars in millions)


U.S. Super Senior ABS CDO Exposure	Long		Short⁽¹⁾		Net
September 26, 2008	$ 6,381		$(5,295	)	$1,086
4Q Exposure Changes:
Sale of CDO’s and terminations of hedges	(3,228	)	3,228		—
Gains / (Losses)	(1,191	)	822		(369	)
Liquidations / Amortization	(158	)	149		(9	)

December 26, 2008	$ 1,804		$(1,096	)	$ 708

(1)

Hedges are affected by a variety of factors that impact the degree of their effectiveness. These factors may include differences in attachment point, timing of cash flows, control rights, limited recourse to counterparties and other basis risks.

As of December 26, 2008, Merrill Lynch’s secondary trading exposure was ($281) million compared to ($273) million at September 26, 2008.


Credit Default Swaps with Financial Guarantors on U.S. Super Senior ABS CDOs	Notional of CDS		Potential Exposure		Mark-to-Market Prior to Credit Valuation Adjustments	Life-to-Date Credit Valuation Adjustments		Carrying Value
September 26, 2008	$(2,851	)	$(810	)	$2,041	$(613	)	$1,428
4Q Activity	20		332		312	(282	)	30

December 26, 2008	$(2,831	)	$(478	)	$2,353	$(895	)	$1,458


Credit Default Swaps with Financial Guarantors (Excluding U.S. Super Senior ABS CDO)	Notional of CDS ⁽¹⁾		Potential Exposure ⁽²⁾		Mark-to-Market Prior to Credit Valuation Adjustments⁽³⁾	Life-to-Date Credit Valuation Adjustments ⁽⁴⁾		Carrying Value
By counterparty credit quality ⁽⁵⁾
AAA	$(17,293	)	$(13,718	)	$ 3,575	$ (804	)	$2,771
AA	(16,672	)	(11,851	)	4,821	(1,832	)	2,989
A	(1,197	)	(879	)	318	(118	)	200
BBB	(5,570	)	(4,522	)	1,048	(440	)	608
Non-investment grade or unrated	(9,581	)	(6,570	)	3,011	(1,809	)	1,202

Total financial guarantor exposures for ABS CDOs	$(50,313	)	$(37,540	)	$12,773	$(5,003	)	$7,770

(1)

The gross notional amount of CDS purchased as protection to hedge predominantly Corporate CDO, CLO, RMBS and CMBS exposure was $50.3 billion and $58.0 billion at December 26, 2008, and September 26, 2008, respectively. This decline was due to terminations, foreign exchange revaluations and amortization of the underlying reference entities on the CDS. Amounts do not include exposure with financial guarantors on U.S. Super Senior ABS CDO’s which are reported separately above.

(2)

The notional of the total CDS, net of gains prior to credit valuation adjustments, was $37.5 billion and $51.4 billion at December 26, 2008 and September 26, 2008, respectively.

(3)

Represents life-to-date mark-to-market gains prior to credit valuation adjustments. Balance was $12.8 billion and $6.6 billion as of December 26, 2008 and September 26, 2008, respectively. This increase was largely driven by further deterioration of U.S. CMBS and CLO underlying assets.

(4)

Represents life-to-date credit valuation adjustments. Balance was $5.0 billion and $2.1 billion as of December 26, 2008 and September 26, 2008, respectively.

(5)

Represents S&P rating band as of December 26, 2008.

Merrill Lynch & Co., Inc.

(Unaudited)

Attachment VII


	Net exposures as of Sep. 26, 2008	Net gains/(losses) reported in income		Other net changes in net exposures ⁽¹⁾		Net exposures as of Dec. 26, 2008	Percent Inc/(Dec)
Residential Mortgage-Related (excluding U.S. Banks investment securities portfolio):

U.S. Prime ⁽²⁾	$34,637	$ 101		$ 61		$34,799	0		%

Other Residential:
U.S. Sub-prime	295	(113	)	13		195	(34	)	%
U.S. Alt-A	25	(18	)	20		27	8		%
Non-U.S.	4,644	(250	)	(1,014	)	3,380	(27	)	%

Total Other Residential⁽³⁾	$ 4,964	$(381	)	$ (981	)	$ 3,602	(27	)	%

(1)

Represents U.S. Prime originations, foreign exchange revaluations, hedges, paydowns, changes in loan commitments and related funding.

(2)

As of December 26, 2008, net exposures include approximately $31.1 billion of prime loans originated with GWM clients (of which $15.0 billion were originated by First Republic Bank).

(3)

Includes warehouse lending, whole loans and residential mortgage-backed securities.


	Net exposures as of Sep. 26, 2008	Net gains/(losses) reported in income ⁽²⁾		Unrealized gains/(losses) included in OCI (pre-tax) ⁽³⁾		Other net changes in net exposures ⁽⁴⁾		Net exposures as of Dec. 26, 2008	Percent Inc/(Dec)
U.S. Banks Investment Securities Portfolio:
Sub-prime residential mortgage-backed securities	$ 2,702	$ (152	)	$ (418	)	$(119	)	$ 2,013	(25	)	%
Alt-A residential mortgage-backed securities	3,498	(846	)	(209	)	(148	)	2,295	(34	)	%
Commercial mortgage-backed securities	5,040	(99	)	(2,407	)	591		3,125	(38	)	%
Prime residential mortgage-backed securities	2,509	(48	)	(464	)	(152	)	1,845	(26	)	%
Non-residential asset-backed securities	723	(2	)	(92	)	(3	)	626	(13	)	%
Non-residential CDOs	486	(5	)	(145	)	(7	)	329	(32	)	%
Agency residential asset-backed securities	492	(10	)	—		(476	)	6	(99	)	%
Other	207	—		(13	)	(2	)	192	(7	)	%

Total ⁽¹⁾	$15,657	$(1,162	)	$(3,748	)	$(316	)	$10,431	(33	)	%

(1)

The December 26, 2008 net exposures include investment securities of approximately $6.0 billion recorded in a non-U.S. Banks legal entity.

(2)

Primarily represents losses on certain securities deemed to be other-than-temporarily impaired.

(3)

The cumulative, pre-tax balance in OCI related to this portfolio was approximately negative $9.3 billion as of December 26, 2008.

(4)

Primarily represents principal paydowns, sales and hedges.


	Net exposures as of Sep. 26, 2008	Net gains/(losses) reported in income		Other net changes in net exposures ⁽¹⁾		Net exposures as of Dec. 26, 2008	Percent Inc/(Dec)
Commercial Real Estate:
Whole Loans/Conduits	$ 6,128	$ (475	)	$(1,808	)	$3,845	(37	)	%
Securities and Derivatives	555	(187	)	(194	)	174	(69	)	%
Real Estate Investments⁽²⁾	6,136	(469	)	18		5,685	(7	)	%

Total Commercial Real Estate, excluding First Republic Bank	$12,819	$(1,131	)	$(1,984	)	$9,704	(24	)	%


First Republic Bank	$ 2,933	$ 12		$ 174		$3,119	6		%

(1)

Primarily represents sales, paydowns and foreign exchange revaluations.

(2)

The Company makes equity and debt investments in entities whose underlying assets are real estate. The Company consolidates those entities in which we are the primary beneficiary in accordance with FIN No. 46-R, Consolidation of Variable Interest Entities (revised December 2003)—an interpretation of ARB No. 51. The Company does not consider itself to have economic exposure to the total underlying assets in those entities. The amounts presented are the Company’s net investment and therefore exclude the amounts that have been consolidated but for which the Company does not consider itself to have economic exposure.