8-K

As filed with the Securities and Exchange Commission on October 6, 2008.

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

October 6, 2008

BANK OF AMERICA CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

1-6523

(Commission File Number)

56-0906609

(IRS Employer Identification No.)

100 North Tryon Street

Charlotte, North Carolina 28255

(Address of principal executive offices)

(704) 386-5681

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On October 6, 2008, Bank of America Corporation (the “Registrant”) announced financial results for the third quarter ended September 30, 2008, reporting third quarter net income of $1.18 billion and diluted earnings per common share of $0.15. A copy of the press release announcing the Registrant’s results for the third quarter ended September 30, 2008 is attached hereto as Exhibit 99.1 and incorporated by reference herein.

ITEM 7.01. REGULATION FD DISCLOSURE.

On October 6, 2008, the Registrant held an investor conference call and webcast to disclose financial results for the third quarter ended September 30, 2008. The Supplemental Information package for use during this conference call is furnished herewith as Exhibit 99.2 and incorporated by reference in Item 7.01. All information in the Supplemental Information package is presented as of September 30, 2008, and the Registrant does not assume any obligation to correct or update said information in the future.

The information in the preceding paragraph, as well as Exhibit 99.2 referenced therein, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in filings under the Securities Act of 1933.

ITEM 8.01. OTHER EVENTS.

On October 6, 2008, the Registrant announced financial results for the third quarter ended September 30, 2008, reporting third quarter net income of $1.18 billion and diluted earnings per common share of $0.15. A copy of the press release announcing the Registrant’s results for the third quarter ended September 30, 2008 is attached hereto as Exhibit 99.1 and incorporated by reference herein.

Separately, the Registrant announced that, in connection with the integration of Countrywide Financial Corporation (“Countrywide”) with its other businesses and operations, it intends to transfer substantially all of the assets and operations of Countrywide and its subsidiary Countrywide Home Loans, Inc. (“CHL”) to other subsidiaries of the Registrant. As part of the consideration for such transfer, if effected, the Registrant would assume debt securities and related guarantees of Countrywide and CHL in an aggregate amount of approximately $21 billion. There can be no assurance that such transfer and assumption will occur or as to the timing or terms thereof.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, in particular, the information as to our assumption of outstanding debt securities and related guarantees of Countrywide Financial Corporation and Countrywide Home Loans, Inc. All forward-looking statements, by their nature, are subject to risks and uncertainties. Our actual results may differ materially from those set forth in our forward-looking statements. As a large, international financial services company, we face risks that are inherent in the businesses and marketplaces in which we operate. Information

regarding important factors that could cause our future financial performance to vary from that described in our forward-looking statements is contained under the captions “Item 1A. Risk Factors,” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2007 and in Exhibit 99.3 included in this Form 8-K and may be provided in other reports and registration statements we file from time to time with the SEC. You should not place undue reliance on any forward-looking statements, which speak only as of the dates they are made. All subsequent written and oral forward-looking statements attributable to us or any person on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to herein. Except to the extent required by applicable law or regulation, we undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this filing or to reflect the occurrence of unanticipated events.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits.

The following exhibits are filed herewith:

EXHIBIT NO.
99.1	Press Release dated October 6, 2008 with respect to the Registrant’s financial results for the third quarter ended September 30, 2008
99.2	Supplemental Information prepared for use on October 6, 2008 in connection with financial results for the third quarter ended September 30, 2008
99.3	Risk Factors

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BANK OF AMERICA CORPORATION
By:	/s/ Neil A. Cotty
	Neil A. Cotty
	Chief Accounting Officer

Dated: October 6, 2008

EXHIBIT INDEX

EXHIBIT NO.	DESCRIPTION OF EXHIBIT
99.1	Press Release dated October 6, 2008 with respect to the Registrant’s financial results for the third quarter ended September 30, 2008
99.2	Supplemental Information prepared for use on October 6, 2008 in connection with financial results for the third quarter ended September 30, 2008
99.3	Risk Factors

EX-99.1

Exhibit 99.1

October 6, 2008

Investors May Contact:

Kevin Stitt, Bank of America, 1.704.386.5667

Lee McEntire, Bank of America, 1.704.388.6780

Reporters May Contact:

Robert Stickler, Bank of America, 1.704.386.8465

robert.stickler@bankofamerica.com

Bank of America Announces 3rd Quarter Earnings and Capital Raising Initiatives

Earns $1.18 billion, or $0.15 per share

Selling Approximately $10 billion in Common Stock

Reduces 4th Quarter Dividend 50% to $0.32

CHARLOTTE — Bank of America Corporation today reported third quarter 2008 net income of $1.18 billion, or $0.15 per share, down from $3.70 billion, or $0.82 per share, a year earlier.

The company also announced two initiatives to raise capital, targeting an 8 percent Tier 1 Capital ratio. The company intends to sell common stock with a target of raising $10 billion. In addition, the Board of Directors has declared a quarterly dividend on common stock of $0.32 to be paid on December 26, 2008 to shareholders of record on December 5, 2008. Assuming the current number of issued and outstanding shares, the reduction from $0.64 paid in recent quarters would add more than $1.4 billion to capital each quarter.

“These are the most difficult times for financial institutions that I have experienced in my 39 years in banking,” said Kenneth D. Lewis, chairman and chief executive officer. “We believe it is prudent to raise capital to very substantial levels in this uncertain environment. Both economic and financial market conditions have changed significantly in the last two months. We were willing to operate at capital levels over the short-term that were good, but not at our targeted levels, given projections two months ago. We now believe it is important to be at or near our 8 percent Tier 1 capital ratio target given the recessionary conditions and outlook for still weaker economic performance which we expect to drive higher credit losses and depress earnings. We believe that achieving higher capital levels today will position our company to provide credit to those consumers and businesses that are attracted to our strength and stability.

“We know many investors in our stock are quite disappointed with a dividend reduction,” Lewis continued. “It is not a decision we made lightly. However, we cannot pay out what we have not earned. Our goal is to resume dividend increases from the new level as soon as our earnings performance warrants.

“All that said, our company continues to be profitable, and we have been able in the last year to make a number of moves that should significantly enhance our earnings when economic and financial market conditions improve. Our diversity and scale give us strength to deal with the current issues that few competitors can match. I have never been more optimistic about the long-term prospects of Bank of America.”

Lower earnings in the third quarter compared to a year earlier were driven by a significant increase in provision expense, as credit costs continued to rise, partially offset by advances in various income categories largely as a result of the acquisition of Countrywide Financial Corporation on July 1, 2008 and LaSalle Bank. Countrywide results were not included in prior period results.

Bank of America is clearly benefiting from consumer and business flight to safety, as shown by year-over-year increases in loans and especially deposits. While consumer credit costs continued to increase in line with economic conditions, the company continued to increase the number of customer accounts and make progress in such categories as investment banking.

Third Quarter Selected Business Developments

• Retail deposits increased $56 billion to $586 billion from June 30 to September 30, 2008, including the addition of $35 billion from Countrywide, extending Bank of America’s lead as the largest retail depository institution in the United States. Excluding the impact of Countrywide, Bank of America gained $21 billion in retail deposits during the quarter as consumers moved money to safety. That gain was almost three times the industry average. Service charges increased $84 million from the second quarter, but debit card revenue declined slightly as consumers pulled back on spending.

• Reflecting deteriorating economic conditions, the consumer credit card business experienced a decrease in purchase volumes, slowing repayments and increased delinquencies during the quarter. Credit card held net charge offs increased to $1.24 billion, representing a net charge off rate of 6.14 percent. Credit card managed net credit losses rose to $3.00 billion, representing a loss rate of 6.40 percent.

• Investment banking income was up 22 percent from the previous year to $474 million. Revenue in Capital Markets and Advisory Services was adversely impacted by $952 million in CDO-related charges, $327 million in leveraged loan and commercial mortgage related writedowns and $190 million in losses on a commitment to buy back auction-rate securities from clients.

• Equity investment income results were negatively impacted by writedowns totaling $320 million on the preferred stock of Fannie Mae and Freddie Mac.

• Global Wealth and Investment Management revenue was affected by $630 million in support for cash funds and $123 million in losses on a commitment to buy back auction-rate securities from clients.

Third Quarter 2008 Financial Summary

Revenue and Expense

Revenue net of interest expense on a fully taxable-equivalent basis rose 21 percent to $19.90 billion from $16.47 billion a year earlier.

Net interest income on a fully taxable-equivalent basis rose 33 percent to $11.92 billion from $8.99 billion in the third quarter of 2007 due to the acquisitions of LaSalle and Countrywide, loan and deposit growth, and the impact of rate movements. The net interest yield increased 32 basis points to 2.93 percent due to increased yields on market-based activity driven by the steepening of the yield curve and the mix of products.

Noninterest income increased 7 percent to $7.98 billion from $7.48 billion a year earlier. The company booked a $630 million charge for providing support to cash funds and losses of $313 million related to auction-rate securities. Noninterest income was adversely impacted by $1.8 billion in writedowns and charges associated with market disruptions, which included Global Corporate and Investment Banking’s portion of the losses associated with auction-rate securities. Service charges income rose due in part to the increase in deposits. Mortgage banking income and insurance income also rose due to the acquisition of Countrywide.

Noninterest expense rose 34 percent to $11.66 billion, largely reflecting the addition of Countrywide and LaSalle. Pretax merger and restructuring charges related to acquisitions were $247 million compared with $84 million a year earlier. The efficiency ratio, on a fully taxable-equivalent basis, was 58.60 percent.

Credit Quality

Credit quality continued to weaken during the quarter with more rapid deterioration noted recently. The economy has moved to a recessionary environment and the risk of a prolonged recession has increased. Consumers are experiencing higher levels of stress from depreciating home prices, rising unemployment and tighter credit conditions. Higher levels of bankruptcies are occurring and delinquencies and losses have increased in all consumer portfolios.

Increased loss and delinquency trends first experienced in the home equity and homebuilder portfolios have now spread into the first mortgage, unsecured consumer lending and credit card portfolios. Deterioration has been more pronounced in California and Florida, which have been hit harder by home price depreciation and rising unemployment than in other markets. Commercial losses in sectors other than real estate and small business also increased, but remain below normalized ranges.

The company added almost $2 billion to the allowance for loan and lease losses during the quarter through provision. The additions were mainly for consumer loans,

including the unsecured consumer lending, credit card and residential mortgage portfolios. The current coverage ratios and amounts shown below include the addition of Countrywide.

• Provision for credit losses was $6.45 billion, up from $5.83 billion in the second quarter and from $2.03 billion in the third quarter of 2007.

• Net charge-offs were $4.36 billion, or 1.84 percent of total average loans and leases compared with $3.62 billion, or 1.67 percent, in the second quarter and $1.57 billion, or 0.80 percent, in the third quarter of 2007.

• Total managed net losses were $6.11 billion, or 2.32 percent, of total average managed loans and leases compared with $5.26 billion, or 2.16 percent, in the second quarter and $2.83 billion, or 1.27 percent, in the third quarter of 2007.

• Nonperforming assets were $13.36 billion or 1.42 percent of total loans, leases and foreclosed properties, compared with $9.75 billion, or 1.13 percent, at June 30, 2008 and $3.37 billion, or 0.43 percent, at September 30, 2007.

• The allowance for loan and lease losses was $20.35 billion, or 2.17 percent of loans and leases measured at historical cost compared with $17.13 billion, or 1.98 percent, at June 30, 2008 and $9.54 billion, or 1.21 percent, at September 30, 2007.

Capital Management

Total shareholders’ equity was $161.04 billion at September 30. Period-end assets were $1.83 trillion. The Tier 1 capital ratio estimate is 7.50 percent, down from 8.25 percent at June 30, 2008. The ratio was 8.22 percent a year earlier.

Bank of America paid a cash dividend of $0.64 per share in the quarter. The company also issued about 109 million common shares, including 107 million shares for the acquisition of Countrywide and 2 million shares related to employee stock options and ownership plans. No shares were repurchased during the quarter. Period-end common shares issued and outstanding were 4.56 billion for the third quarter, up from 4.45 billion for the second quarter of 2008 and 4.44 billion in the year ago quarter.

Transition update

The LaSalle transition will reach a significant milestone in the fourth quarter with expected major systems conversions. In addition, the cost saves achieved in connection with the transaction will exceed original projections.

The transition at Countrywide, which was acquired on July 1, is on track. The company today reached a major milestone by announcing in conjunction with a number of state attorneys general a proactive home retention program that will

modify troubled mortgages using principal reductions for nearly 400,000 Countrywide customers nationwide (see separate press release issued earlier today).

The combined company modified loans for more than 73,000 customers during the third quarter, up from 14,000 in the similar period in 2007.

Countrywide added $259 million in operating earnings to Bank of America this quarter, which was accretive to earnings per share by $0.06. The transition team is on track to reach targeted cost savings, which have been increased from original projections to $900 million after-tax, and expect to fully realize the benefits by 2011.

Bank of America agreed on September 15, 2008 to acquire Merrill Lynch. The company has begun to announce the senior management team of the combined company and the transition teams are beginning to map out their activities.

Note: Chief Executive Officer Kenneth D. Lewis and Chief Financial Officer Joe L. Price will discuss third quarter 2008 results in a conference call at 5 p.m. EDT today. The presentation and supporting materials can be accessed on the Bank of America Investor Relations Web site at http://investor.bankofamerica.com. For a listen-only connection to the conference call, dial 877.585.6241 or (international) 785.830.1916 and the conference ID: 79795.

Bank of America

Bank of America is one of the world’s largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 59 million consumer and small business relationships with more than 6,100 retail banking offices, more than 18,000 ATMs and award-winning online banking with more than 25 million active users. Bank of America offers industry leading support to more than 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients in more than 150 countries and has relationships with 99 percent of the U.S. Fortune 500 companies and 83 percent of the Fortune Global 500. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.

Forward-Looking Statements

This press release contains forward-looking statements, including statements about the financial conditions, results of operations and earnings outlook of Bank of America Corporation. The forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results or earnings to differ materially from such forward-looking statements include, among others, the following: 1) projected business increases following process changes and other investments are lower than expected; 2) competitive pressure among financial services companies increases significantly; 3) general economic conditions are less favorable than expected; 4) political conditions including the threat of future terrorist activity and

related actions by the United States abroad may adversely affect the company’s businesses and economic conditions as a whole; 5) changes in the interest rate environment and market liquidity reduce interest margins, impact funding sources and effect the ability to originate and distribute financial products in the primary and secondary markets; 6) changes in foreign exchange rates increases exposure; 7) changes in market rates and prices may adversely impact the value of financial products; 8) legislation or regulatory environments, requirements or changes adversely affect the businesses in which the company is engaged; 9) changes in accounting standards, rules or interpretations, 10) litigation liabilities, including costs, expenses, settlements and judgments, may adversely affect the company or its businesses; 11) mergers and acquisitions and their integration into the company; and 12) decisions to downsize, sell or close units or otherwise change the business mix of any of the company. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Bank of America does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements are made. For further information regarding Bank of America Corporation, please read the Bank of America reports filed with the SEC and available at www.sec.gov.

www.bankofamerica.com

###

The Company has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Company has filed with the SEC for more complete information about the Company and this offering. You may obtain these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, Bank of America Corporation or the lead managers will arrange to send you the prospectus if you request it by contacting Bank of America Corporation, Corporate Treasury - Securities Administration, at 1-866-804-5241, Banc of America Securities LLC, toll free at 1-800-294-1322 or Merrill Lynch & Co. at 1-866-500-5408.

Bank of America Corporation and Subsidiaries

Selected Financial Data

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

Summary Income Statement	Three Months Ended September 30					Nine Months Ended September 30
	2008		2007			2008		2007
Net interest income	$     11,642		$       8,617			$     32,254		$     25,276
Total noninterest income	7,979		7,480			24,848		28,753
Total revenue, net of interest expense	19,621		16,097			57,102		54,029
Provision for credit losses	6,450		2,030			18,290		5,075
Noninterest expense, before merger and restructuring charges	11,413		8,627			29,953		26,845
Merger and restructuring charges	247		84			629		270
Income before income taxes	1,511		5,356			8,230		21,839
Income tax expense	334		1,658			2,433		7,125
Net income	$       1,177		$       3,698			$       5,797		$     14,714
Earnings per common share	$         0.15		$         0.83			$         1.11		$         3.30
Diluted earnings per common share	0.15		0.82			1.10		3.25
Summary Average Balance Sheet	Three Months Ended September 30					Nine Months Ended September 30
	2008		2007			2008		2007
Total loans and leases	$   946,914		$   780,516			$   900,574		$   745,162
Debt securities	266,013		174,568			240,347		179,589
Total earning assets	1,622,466		1,375,795			1,544,617		1,352,177
Total assets	1,905,691		1,580,565			1,808,765		1,554,760
Total deposits	857,845		702,481			810,663		695,465
Shareholders’ equity	166,454		134,487			160,890		133,878
Common shareholders’ equity	142,303		131,606			141,337		131,017
Performance Ratios	Three Months Ended September 30					Nine Months Ended September 30
	2008		2007			2008		2007
Return on average assets	0.25	%	0.93		%	0.43	%	1.27		%
Return on average common shareholders’ equity	1.97		11.02			4.68		14.88
Credit Quality	Three Months Ended September 30					Nine Months Ended September 30
	2008		2007			2008		2007
Total net charge-offs	$       4,356		$       1,573			$     10,690		$       4,495
Annualized net charge-offs as a % of average loans and leases outstanding (1)	1.84	%	0.80		%	1.59	%	0.80		%
Provision for credit losses	$       6,450		$       2,030			$     18,290		$       5,075
Total consumer credit card managed net losses	2,996		2,024			8,119		6,076
Total consumer credit card managed net losses as a % of average managed credit card receivables	6.40	%	4.67		%	5.85	%	4.81		%
	September 30
	2008		2007
Total nonperforming assets	$     13,357		$       3,372
Nonperforming assets as a % of total loans, leases and foreclosed properties (1)	1.42	%	0.43		%
Allowance for loan and lease losses	$     20,346		$       9,535
Allowance for loan and lease losses as a % of total loans and leases measured at historical cost (1)	2.17	%	1.21		%
Capital Management	September 30
	2008		2007
Risk-based capital ratios:
Tier 1	7.50	*%	8.22		%
Tangible equity ratio (2)	4.03	*	4.09
Period-end common shares issued and outstanding	4,562,055		4,436,855
	Three Months Ended September 30					Nine Months Ended September 30
	2008		2007			2008		2007
Shares issued	109,108		9,499			124,170		49,734
Shares repurchased	—		(9,580	)		—		(71,030	)
Average common shares issued and outstanding	4,543,963		4,420,616			4,469,517		4,424,269
Average diluted common shares issued and outstanding	4,563,508		4,475,917			4,493,506		4,483,465
Dividends paid per common share	$         0.64		$         0.64			$         1.92		$         1.76
Summary Ending Balance Sheet	September 30
	2008		2007
Total loans and leases	$   942,676		$   793,537
Total debt securities	258,677		177,296
Total earning assets	1,544,907		1,362,543
Total assets	1,831,177		1,578,763
Total deposits	874,051		699,222
Total shareholders’ equity	161,039		138,510
Common shareholders’ equity	136,888		135,109
Book value per share of common stock	$       30.01		$       30.45

* Preliminary data

⁽¹⁾ Ratios do not include loans measured at fair value in accordance with SFAS 159 at and for the three and six months ended September 30, 2008 and 2007.

⁽²⁾ Tangible equity equals shareholders’ equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets

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

Bank of America Corporation and Subsidiaries

Supplemental Financial Data

(Dollars in millions)

Fully taxable-equivalent basis data	Three Months Ended September 30				Nine Months Ended September 30
	2008		2007		2008		2007
Net interest income	$  11,920		$    8,992		$33,148		$26,375
Total revenue, net of interest expense	19,899		16,472		57,996		55,128
Net interest yield	2.93	%	2.61	%	2.86	%	2.60	%
Efficiency ratio	58.60		52.89		52.73		49.19
Other Data	September 30
	2008		2007
Full-time equivalent employees	247,024		198,000
Number of banking centers - domestic	6,139		5,748
Number of branded ATMs - domestic	18,584		17,231

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

EX-99.2

Exhibit 99.2

Supplemental Information

Third 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
Core Net Interest Income - Managed Basis	6
Quarterly Average Balances and Interest Rates	7
Quarterly Average Balances and Interest Rates - Isolating Hedge Income/Expense	8
Year-to-Date Average Balances and Interest Rates	9
Year-to-Date Average Balances and Interest Rates - Isolating Hedge Income/Expense	10
Global Consumer and Small Business Banking
Key Indicators	11
E-commerce & BankofAmerica.com	12
Credit Card Data	13
Global Corporate and Investment Banking
Business Lending Key Indicators	14
Capital Markets and Advisory Services Key Indicators	15
Banc of America Securities U.S. Market Share and Product Ranking Graph	16
Super Senior Collateralized Debt Obligation Exposure	17
Subprime Super Senior Collateralized Debt Obligation Carrying Values	18
Outstanding Loans and Leases	19
Nonperforming Assets	20
Quarterly Net Charge-offs/Losses and Net Charge-off/Loss Ratios	21
Year-to-Date Net Charge-offs/Losses and Net Charge-off/Loss Ratios	22
Allocation of the Allowance for Credit Losses by Product Type	23
Exhibit A: Non - GAAP Reconciliation: Reconciliation of Net Charge-offs and Net Charge-off Ratios to Net Charge-offs and Net Charge-off Ratios Excluding the Impact of SOP 03-3	24
Appendix: Selected Slides from the Third Quarter 2008 Earnings Release Presentation	25

1

Bank of America Corporation and Subsidiaries

Consolidated Financial Highlights

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

	Nine Months Ended September 30						Third Quarter 2008 (1)			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007				Third Quarter 2007
	2008 (1)			2007
Income statement
Net interest income	$	32,254		$	25,276		$	11,642		$	10,621		$	9,991		$	9,165			$	8,617
Noninterest income		24,848			28,753			7,979			9,789			7,080			3,639				7,480
Total revenue, net of interest expense		57,102			54,029			19,621			20,410			17,071			12,804				16,097
Provision for credit losses		18,290			5,075			6,450			5,830			6,010			3,310				2,030
Noninterest expense, before merger and restructuring charges		29,953			26,845			11,413			9,447			9,093			10,269				8,627
Merger and restructuring charges		629			270			247			212			170			140				84
Income tax expense (benefit)		2,433			7,125			334			1,511			588			(1,183	)			1,658
Net income		5,797			14,714			1,177			3,410			1,210			268				3,698
Diluted earnings per common share		1.10			3.25			0.15			0.72			0.23			0.05				0.82
Average diluted common shares issued and outstanding		4,493,506			4,483,465			4,563,508			4,457,193			4,461,201			4,470,108				4,475,917
Dividends paid per common share	$	1.92		$	1.76		$	0.64		$	0.64		$	0.64		$	0.64			$	0.64
Performance ratios
Return on average assets		0.43	%		1.27	%		0.25	%		0.78	%		0.28	%		0.06		%		0.93	%
Return on average common shareholders’ equity		4.68			14.88			1.97			9.25			2.90			0.60				11.02
Risk-based Capital
Tier 1 Capital Ratio		7.50	%		8.22	%		7.50	%		8.25	%		7.51	%		6.87		%		8.22	%
Tangible equity ratio (2)		4.03			4.09			4.03			4.62			4.16			3.62				4.09
At period end
Book value per share of common stock	$	30.01		$	30.45		$	30.01		$	31.11		$	31.22		$	32.09			$	30.45
Tangible book value per share of common stock (3)		12.08			15.25			12.08			13.65			13.73			14.62				15.25
Market price per share of common stock:
Closing price	$	35.00		$	50.27		$	35.00		$	23.87		$	37.91		$	41.26			$	50.27
High closing price for the period		45.03			54.05			37.48			40.86			45.03			52.71				51.87
Low closing price for the period		18.52			47.00			18.52			23.87			35.31			41.10				47.00
Market capitalization		159,672			223,041			159,672			106,292			168,806			183,107				223,041
Number of banking centers - domestic		6,139			5,748			6,139			6,131			6,148			6,149				5,748
Number of branded ATMs - domestic		18,584			17,231			18,584			18,531			18,491			18,753				17,231
Full-time equivalent employees		247,024			198,000			247,024			206,587			209,096			209,718				198,000

(1) Preliminary data based on risk-based capital

(2) Tangible equity equals shareholders’ equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets.

(3) 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.

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

	Nine Months Ended September 30						Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007			Third Quarter 2007
	2008			2007
Net interest income	$	33,148		$	26,375		$	11,920		$	10,937		$	10,291		$	9,815		$	8,992
Total revenue, net of interest expense		57,996			55,128			19,899			20,726			17,371			13,454			16,472
Net interest yield		2.86	%		2.60	%		2.93	%		2.92	%		2.73	%		2.61	%		2.61	%
Efficiency ratio		52.73			49.19			58.60			46.60			53.32			77.36			52.89

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 September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007 and September 30, 2007, and the nine months ended September 30, 2008 and 2007.

Reconciliation of net income to operating earnings

	Nine Months Ended September 30								Third Quarter 2008				Second Quarter 2008				First Quarter 2008				Fourth Quarter 2007				Third Quarter 2007
	2008				2007
Net income	$	5,797			$	14,714			$	1,177			$	3,410			$	1,210			$	268			$	3,698
Merger and restructuring charges		629				270				247				212				170				140				84
Related income tax benefit		(205	)			(100	)			(64	)			(78	)			(63	)			(52	)			(31	)
Operating earnings	$	6,221			$	14,884			$	1,360			$	3,544			$	1,317			$	356			$	3,751
Reconciliation of ending common shareholders’ equity to ending common tangible shareholders’ equity
Ending common shareholders’ equity	$	136,888			$	135,109			$	136,888			$	138,540			$	139,003			$	142,394			$	135,109
Ending goodwill		(81,756	)			(67,433	)			(81,756	)			(77,760	)			(77,872	)			(77,530	)			(67,433	)
Ending common tangible shareholders’ equity	$	55,132			$	67,676			$	55,132			$	60,780			$	61,131			$	64,864			$	67,676
Reconciliation of average shareholders’ equity to average tangible shareholders’ equity
Average shareholders’ equity	$	160,890			$	133,878			$	166,454			$	161,428			$	154,728			$	144,924			$	134,487
Average goodwill		(79,150	)			(66,309	)			(81,977	)			(77,815	)			(77,628	)			(78,308	)			(67,499	)
Average tangible shareholders’ equity	$	81,740			$	67,569			$	84,477			$	83,613			$	77,100			$	66,616			$	66,988
Operating basis
Return on average assets		0.46		%		1.28		%		0.28		%		0.81		%		0.30		%		0.08		%		0.94		%
Return on average common shareholders’ equity		5.08				15.06				2.48				9.63				3.20				0.85				11.18
Return on average tangible shareholders’ equity		10.17				29.45				6.40				17.05				6.87				2.12				22.21
Efficiency ratio (1)		51.65				48.70				57.36				45.58				52.35				76.32				52.38

(1) Fully taxable-equivalent basis

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

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

Bank of America Corporation and Subsidiaries

Consolidated Statement of Income

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

	Nine Months Ended September 30					Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007			Third Quarter 2007
	2008			2007
Interest income
Interest and fees on loans and leases	$	41,797		$	40,318	$	14,261		$	13,121		$	14,415		$	15,363		$	14,111
Interest on debt securities		9,295			7,046		3,621			2,900			2,774			2,738			2,334
Federal funds sold and securities purchased under agreements to resell		2,920			5,974		912			800			1,208			1,748			1,839
Trading account assets		6,937			7,059		2,344			2,229			2,364			2,358			2,519
Other interest income		3,133			3,428		1,058			977			1,098			1,272			1,230
Total interest income		64,082			63,825		22,196			20,027			21,859			23,479			22,033
Interest expense
Deposits		11,954			12,840		3,846			3,520			4,588			5,253			4,545
Short-term borrowings		10,452			16,369		3,223			3,087			4,142			5,598			5,519
Trading account liabilities		2,250			2,619		661			749			840			825			906
Long-term debt		7,172			6,721		2,824			2,050			2,298			2,638			2,446
Total interest expense		31,828			38,549		10,554			9,406			11,868			14,314			13,416
Net interest income		32,254			25,276		11,642			10,621			9,991			9,165			8,617
Noninterest income
Card income		10,212			10,486		3,122			3,451			3,639			3,591			3,595
Service charges		7,757			6,493		2,722			2,638			2,397			2,415			2,221
Investment and brokerage services		3,900			3,720		1,238			1,322			1,340			1,427			1,378
Investment banking income		1,645			1,801		474			695			476			544			389
Equity investment income (loss)		1,330			3,747		(316	)		592			1,054			317			904
Trading account profits (losses)		(1,810	)		491		(384	)		357			(1,783	)		(5,380	)		(1,388	)
Mortgage banking income		2,564			516		1,674			439			451			386			155
Insurance premiums		1,092			548		678			217			197			213			235
Gains on sales of debt securities		362			71		10			127			225			109			7
Other income (loss)		(2,204	)		880		(1,239	)		(49	)		(916	)		17			(16	)
Total noninterest income		24,848			28,753		7,979			9,789			7,080			3,639			7,480
Total revenue, net of interest expense		57,102			54,029		19,621			20,410			17,071			12,804			16,097
Provision for credit losses		18,290			5,075		6,450			5,830			6,010			3,310			2,030
Noninterest expense
Personnel		14,344			13,931		5,198			4,420			4,726			4,822			4,169
Occupancy		2,623			2,211		926			848			849			827			754
Equipment		1,208			1,018		440			372			396			373			336
Marketing		1,813			1,644		605			571			637			712			552
Professional fees		1,071			770		424			362			285			404			258
Amortization of intangibles		1,357			1,209		464			447			446			467			429
Data processing		1,905			1,372		755			587			563			590			463
Telecommunications		814			750		288			266			260			263			255
Other general operating		4,818			3,940		2,313			1,574			931			1,811			1,411
Merger and restructuring charges		629			270		247			212			170			140			84
Total noninterest expense		30,582			27,115		11,660			9,659			9,263			10,409			8,711
Income (loss) before income taxes		8,230			21,839		1,511			4,921			1,798			(915	)		5,356
Income tax expense (benefit)		2,433			7,125		334			1,511			588			(1,183	)		1,658
Net income	$	5,797		$	14,714	$	1,177		$	3,410		$	1,210		$	268		$	3,698
Preferred stock dividends		849			129		473			186			190			53			43
Net income available to common shareholders	$	4,948		$	14,585	$	704		$	3,224		$	1,020		$	215		$	3,655
Per common share information
Earnings	$	1.11		$	3.30	$	0.15		$	0.73		$	0.23		$	0.05		$	0.83
Diluted earnings		1.10			3.25		0.15			0.72			0.23			0.05			0.82
Dividends paid		1.92			1.76		0.64			0.64			0.64			0.64			0.64
Average common shares issued and outstanding		4,469,517			4,424,269		4,543,963			4,435,719			4,427,823			4,421,554			4,420,616
Average diluted common shares issued and outstanding		4,493,506			4,483,465		4,563,508			4,457,193			4,461,201			4,470,108			4,475,917

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

This information is preliminary and based on company data available at the time of the presentation. 4

Bank of America Corporation and Subsidiaries

Consolidated Balance Sheet

(Dollars in millions)

	September 30 2008			June 30 2008			September 30 2007
Assets
Cash and cash equivalents	$	39,341		$	39,127		$	34,956
Time deposits placed and other short-term investments		11,709			7,649			8,829
Federal funds sold and securities purchased under agreements to resell		87,038			107,070			135,150
Trading account assets		174,859			167,837			179,365
Derivative assets		45,792			42,039			30,843
Debt securities		258,677			249,859			177,296
Loans and leases, net of allowance:
Loans and leases		942,676			870,464			793,537
Allowance for loan and lease losses		(20,346	)		(17,130	)		(9,535	)
Total loans and leases, net of allowance		922,330			853,334			784,002
Premises and equipment, net		13,000			11,627			9,762
Mortgage servicing rights (includes $20,811, $4,250 and $3,179 measured at fair value)		21,131			4,577			3,417
Goodwill		81,756			77,760			67,433
Intangible assets		9,167			9,603			9,635
Loans held-for-sale		27,414			23,630			30,672
Other assets		138,963			122,763			107,403
Total assets	$	1,831,177		$	1,716,875		$	1,578,763
Liabilities
Deposits in domestic offices:
Noninterest-bearing	$	201,025		$	199,587		$	165,343
Interest-bearing		577,503			497,631			434,728
Deposits in foreign offices:
Noninterest-bearing		3,524			3,432			3,950
Interest-bearing		91,999			84,114			95,201
Total deposits		874,051			784,764			699,222
Federal funds purchased and securities sold under agreements to repurchase		225,729			238,123			199,293
Trading account liabilities		68,229			70,806			87,155
Derivative liabilities		26,466			21,095			19,012
Commercial paper and other short-term borrowings		145,812			177,753			201,155
Accrued expenses and other liabilities (includes $427, $507 and $392 of reserve for unfunded lending commitments)		72,141			55,038			48,932
Long-term debt		257,710			206,605			185,484
Total liabilities		1,670,138			1,554,184			1,440,253
Shareholders’ equity
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 7,602,067, 7,602,067 and 143,739 shares		24,151			24,151			3,401
Common stock and additional paid-in capital, $0.01 par value; authorized - 7,500,000,000 shares; issued and outstanding - 4,562,054,554, 4,452,947,217 and 4,436,855,341 shares		65,361			61,109			60,276
Retained earnings		77,695			79,920			84,027
Accumulated other comprehensive income (loss)		(5,647	)		(1,864	)		(8,615	)
Other		(521	)		(625	)		(579	)
Total shareholders’ equity		161,039			162,691			138,510
Total liabilities and shareholders’ equity	$	1,831,177		$	1,716,875		$	1,578,763

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

This information is preliminary and based on company data available at the time of the presentation. 5

Bank of America Corporation and Subsidiaries

Core Net Interest Income - Managed Basis

(Dollars in millions)

	Nine Months Ended September 30								Third Quarter 2008				Second Quarter 2008				First Quarter 2008				Fourth Quarter 2007				Third Quarter 2007
	2008				2007
Net interest income (1)
As reported	$	33,148			$	26,375			$	11,920			$	10,937			$	10,291			$	9,815			$	8,992
Impact of market-based net interest income (2)		(4,125	)			(1,908	)			(1,448	)			(1,369	)			(1,308	)			(810	)			(789	)
Core net interest income		29,023				24,467				10,472				9,568				8,983				9,005				8,203
Impact of securitizations (3)		6,654				5,820				2,310				2,254				2,090				2,021				2,009
Core net interest income - managed basis	$	35,677			$	30,287			$	12,782			$	11,822			$	11,073			$	11,026			$	10,212
Average earning assets
As reported	$	1,544,617			$	1,352,177			$	1,622,466			$	1,500,234			$	1,510,295			$	1,502,998			$	1,375,795
Impact of market-based earning assets (2)		(385,517	)			(414,363	)			(377,630	)			(375,274	)			(403,733	)			(407,315	)			(407,066	)
Core average earning assets		1,159,100				937,814				1,244,836				1,124,960				1,106,562				1,095,683				968,729
Impact of securitizations		102,481				103,028				101,743				103,131				102,577				104,385				104,181
Core average earning assets - managed basis	$	1,261,581			$	1,040,842			$	1,346,579			$	1,228,091			$	1,209,139			$	1,200,068			$	1,072,910
Net interest yield contribution (1, 4)
As reported		2.86		%		2.60		%		2.93		%		2.92		%		2.73		%		2.61		%		2.61		%
Impact of market-based activities (2)		0.48				0.88				0.43				0.49				0.52				0.67				0.77
Core net interest yield on earning assets		3.34				3.48				3.36				3.41				3.25				3.28				3.38
Impact of securitizations		0.43				0.40				0.43				0.45				0.42				0.38				0.42
Core net interest yield on earning assets - managed basis		3.77		%		3.88		%		3.79		%		3.86		%		3.67		%		3.66		%		3.80		%

(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 nine months ended September 30, 2008 and 2007, the impact of market-based net interest income excludes $75 million and $44 million, and for the three months ended September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007 and September 30, 2007, respectively, excludes $23 million, $25 million, $27 million, $26 million and $22 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.

This information is preliminary and based on company data available at the time of the presentation. 6

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)

	Third Quarter 2008						Second Quarter 2008						Third 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	$	11,361	$	101	3.54	%	$	10,310	$	87	3.40	%	$	11,879	$	148	4.92	%
Federal funds sold and securities purchased under agreements to resell		136,322		912	2.67			126,169		800	2.54			139,259		1,839	5.27
Trading account assets		191,757		2,390	4.98			184,547		2,282	4.95			194,661		2,604	5.33
Debt securities (1)		266,013		3,672	5.52			235,369		2,963	5.04			174,568		2,380	5.45
Loans and leases (2):
Residential mortgage		260,748		3,712	5.69			256,164		3,541	5.54			274,385		3,928	5.72
Home equity		151,142		2,124	5.59			120,265		1,627	5.44			98,611		1,884	7.58
Discontinued real estate		22,031		399	7.25			—		—	—			—		—	—
Credit card - domestic		63,414		1,682	10.55			61,655		1,603	10.45			57,491		1,780	12.29
Credit card - foreign		17,075		535	12.47			16,566		512	12.43			11,995		371	12.25
Direct/Indirect consumer (3)		85,392		1,790	8.34			82,593		1,731	8.43			72,978		1,600	8.70
Other consumer (4)		3,723		80	8.78			3,953		84	8.36			4,322		96	8.90
Total consumer		603,525		10,322	6.82			541,196		9,098	6.75			519,782		9,659	7.39
Commercial - domestic		224,117		2,852	5.06			219,537		2,762	5.06			176,554		3,207	7.21
Commercial real estate (5)		63,220		727	4.57			62,810		737	4.72			38,977		733	7.47
Commercial lease financing		22,585		53	0.93			22,276		243	4.37			20,044		246	4.91
Commercial - foreign		33,467		377	4.48			32,820		366	4.48			25,159		377	5.95
Total commercial		343,389		4,009	4.64			337,443		4,108	4.89			260,734		4,563	6.95
Total loans and leases		946,914		14,331	6.03			878,639		13,206	6.04			780,516		14,222	7.25
Other earning assets		70,099		1,068	6.07			65,200		1,005	6.19			74,912		1,215	6.46
Total earning assets (6)		1,622,466		22,474	5.52			1,500,234		20,343	5.44			1,375,795		22,408	6.48
Cash and cash equivalents		36,030						33,799						31,356
Other assets, less allowance for loan and lease losses		247,195						220,580						173,414
Total assets	$	1,905,691					$	1,754,613					$	1,580,565
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	32,297	$	58	0.72	%	$	33,164	$	64	0.77	%	$	31,510	$	50	0.62	%
NOW and money market deposit accounts		278,520		973	1.39			258,104		856	1.33			215,078		1,104	2.04
Consumer CDs and IRAs		218,862		1,852	3.37			178,828		1,646	3.70			165,840		1,949	4.66
Negotiable CDs, public funds and other time deposits		36,039		291	3.21			24,216		195	3.25			17,392		227	5.20
Total domestic interest-bearing deposits		565,718		3,174	2.23			494,312		2,761	2.25			429,820		3,330	3.07
Foreign interest-bearing deposits:
Banks located in foreign countries		36,230		266	2.91			33,777		272	3.25			43,727		564	5.12
Governments and official institutions		11,847		72	2.43			11,789		77	2.62			17,206		218	5.03
Time, savings and other		48,209		334	2.76			55,403		410	2.97			41,868		433	4.09
Total foreign interest-bearing deposits		96,286		672	2.78			100,969		759	3.02			102,801		1,215	4.69
Total interest-bearing deposits		662,004		3,846	2.31			595,281		3,520	2.38			532,621		4,545	3.39
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings		465,511		3,223	2.76			444,578		3,087	2.79			409,070		5,519	5.36
Trading account liabilities		77,271		661	3.40			70,546		749	4.27			86,118		906	4.17
Long-term debt		264,934		2,824	4.26			205,194		2,050	4.00			175,265		2,446	5.58
Total interest-bearing liabilities (6)		1,469,720		10,554	2.86			1,315,599		9,406	2.87			1,203,074		13,416	4.43
Noninterest-bearing sources:
Noninterest-bearing deposits		195,841						190,721						169,860
Other liabilities		73,676						86,865						73,144
Shareholders’ equity		166,454						161,428						134,487
Total liabilities and shareholders’ equity	$	1,905,691					$	1,754,613					$	1,580,565
Net interest spread					2.66	%					2.57	%					2.05	%
Impact of noninterest-bearing sources					0.27						0.35						0.56
Net interest income/yield on earning assets			$	11,920	2.93	%			$	10,937	2.92	%			$	8,992	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.

(3) Includes foreign consumer loans of $2.6 billion and $3.0 billion in the third and second quarters of 2008, and $3.8 billion in the third quarter of 2007.

(4) Includes consumer finance loans of $2.7 billion and $2.8 billion in the third and second quarters of 2008, and $3.2 billion in the third quarter of 2007; and other foreign consumer loans of $1.1 billion and $862 million in the third and second quarters of 2008, and $843 million in the third quarter of 2007.

(5) Includes domestic commercial real estate loans of $62.2 billion and $61.6 billion in the third and second quarters of 2008, and $38.0 billion in the third quarter of 2007.

(6) Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $12 million and $104 million in the third and second quarters of 2008, and $170 million in the third quarter of 2007. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities $86 million and $37 million in the third and second quarters of 2008, and $226 million in the third quarter of 2007.

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

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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)

	Third Quarter 2008								Second Quarter 2008								Third 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)	$	11,361	$	105		3.68		%	$	10,310	$	91		3.56		%	$	11,879	$	152		5.06		%
Federal funds sold and securities purchased under agreements to resell (2)		136,322		948		2.78				126,169		867		2.75				139,259		1,936		5.54
Trading account assets		191,757		2,390		4.98				184,547		2,282		4.95				194,661		2,604		5.33
Debt securities (2)		266,013		3,675		5.52				235,369		2,963		5.04				174,568		2,385		5.46
Loans and leases:
Residential mortgage		260,748		3,712		5.69				256,164		3,541		5.54				274,385		3,928		5.72
Home equity		151,142		2,124		5.59				120,265		1,627		5.44				98,611		1,884		7.58
Discontinued real estate		22,031		399		7.25				—		—		—				—		—		—
Credit card - domestic		63,414		1,682		10.55				61,655		1,603		10.45				57,491		1,780		12.29
Credit card - foreign		17,075		535		12.47				16,566		512		12.43				11,995		371		12.25
Direct/Indirect consumer		85,392		1,790		8.34				82,593		1,731		8.43				72,978		1,600		8.70
Other consumer		3,723		80		8.78				3,953		84		8.36				4,322		96		8.90
Total consumer		603,525		10,322		6.82				541,196		9,098		6.75				519,782		9,659		7.39
Commercial - domestic (2)		224,117		2,820		5.01				219,537		2,795		5.12				176,554		3,220		7.24
Commercial real estate		63,220		727		4.57				62,810		737		4.72				38,977		733		7.47
Commercial lease financing		22,585		53		0.93				22,276		243		4.37				20,044		246		4.91
Commercial - foreign (2)		33,467		377		4.48				32,820		366		4.48				25,159		411		6.48
Total commercial		343,389		3,977		4.61				337,443		4,141		4.93				260,734		4,610		7.02
Total loans and leases		946,914		14,299		6.02				878,639		13,239		6.05				780,516		14,269		7.27
Other earning assets (2)		70,099		1,069		6.07				65,200		1,005		6.19				74,912		1,232		6.55
Total earning assets - excluding hedge impact		1,622,466		22,486		5.53				1,500,234		20,447		5.47				1,375,795		22,578		6.53
Net hedge income (expense) on assets				(12	)							(104	)							(170	)
Total earning assets - including hedge impact		1,622,466		22,474		5.52				1,500,234		20,343		5.44				1,375,795		22,408		6.48
Cash and cash equivalents		36,030								33,799								31,356
Other assets, less allowance for loan and lease losses		247,195								220,580								173,414
Total assets	$	1,905,691							$	1,754,613							$	1,580,565
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	32,297	$	58		0.72		%	$	33,164	$	64		0.77		%	$	31,510	$	50		0.62		%
NOW and money market deposit accounts (2)		278,520		973		1.39				258,104		851		1.33				215,078		1,099		2.03
Consumer CDs and IRAs (2)		218,862		1,765		3.21				178,828		1,535		3.45				165,840		1,797		4.30
Negotiable CDs, public funds and other time deposits (2)		36,039		288		3.18				24,216		193		3.21				17,392		225		5.15
Total domestic interest-bearing deposits		565,718		3,084		2.17				494,312		2,643		2.15				429,820		3,171		2.93
Foreign interest-bearing deposits:
Banks located in foreign countries (2)		36,230		279		3.07				33,777		272		3.25				43,727		566		5.14
Governments and official institutions		11,847		72		2.43				11,789		77		2.62				17,206		218		5.03
Time, savings and other		48,209		334		2.76				55,403		410		2.97				41,868		433		4.09
Total foreign interest-bearing deposits		96,286		685		2.84				100,969		759		3.02				102,801		1,217		4.70
Total interest-bearing deposits		662,004		3,769		2.27				595,281		3,402		2.30				532,621		4,388		3.27
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings (2)		465,511		2,938		2.51				444,578		2,980		2.70				409,070		5,560		5.40
Trading account liabilities		77,271		661		3.40				70,546		749		4.27				86,118		906		4.17
Long-term debt (2)		264,934		3,100		4.68				205,194		2,238		4.36				175,265		2,336		5.33
Total interest-bearing liabilities - excluding hedge impact		1,469,720		10,468		2.84				1,315,599		9,369		2.86				1,203,074		13,190		4.36
Net hedge (income) expense on liabilities				86								37								226
Total interest-bearing liabilities - including hedge impact		1,469,720		10,554		2.86				1,315,599		9,406		2.87				1,203,074		13,416		4.43
Noninterest-bearing sources:
Noninterest-bearing deposits		195,841								190,721								169,860
Other liabilities		73,676								86,865								73,144
Shareholders’ equity		166,454								161,428								134,487
Total liabilities and shareholders’ equity	$	1,905,691							$	1,754,613							$	1,580,565
Net interest spread						2.69								2.61								2.17
Impact of noninterest-bearing sources						0.27								0.35								0.55
Net interest income/yield on earning assets - excluding hedge impact			$	12,018		2.96		%			$	11,078		2.96		%			$	9,388		2.72		%
Net impact of hedge income (expense)				(98	)	(0.03	)					(141	)	(0.04	)					(396	)	(0.11	)
Net interest income/yield on earning assets			$	11,920		2.93		%			$	10,937		2.92		%			$	8,992		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:

	Third Quarter 2008			Second Quarter 2008			Third Quarter 2007
Time deposits placed and other short-term investments	$	(4	)	$	(4	)	$	(4	)
Federal funds sold and securities purchased under agreements to resell		(36	)		(67	)		(97	)
Debt securities		(3	)		—			(5	)
Commercial - domestic		32			(33	)		(13	)
Commercial - foreign		—			—			(34	)
Other earning assets		(1	)		—			(17	)
Net hedge income (expense) on assets	$	(12	)	$	(104	)	$	(170	)
Interest expense excludes the impact of interest rate risk management contracts, which increased (decreased) interest expense on:
NOW and money market deposit accounts	$	—		$	5		$	5
Consumer CDs and IRAs		87			111			152
Negotiable CDs, public funds and other time deposits		3			2			2
Banks located in foreign countries		(13	)		—			(2	)
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings		285			107			(41	)
Long-term debt		(276	)		(188	)		110
Net hedge (income) expense on liabilities	$	86		$	37		$	226

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

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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)

	Nine Months Ended September 30
	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	$	10,758	$	282	3.50	%	$	14,059	$	505	4.80	%
Federal funds sold and securities purchased under agreements to resell		135,846		2,920	2.87			157,139		5,974	5.07
Trading account assets		189,579		7,089	4.99			186,137		7,325	5.25
Debt securities (1)		240,347		9,470	5.25			179,589		7,225	5.37
Loans and leases (2):
Residential mortgage		262,478		11,090	5.63			260,469		11,140	5.70
Home equity		129,402		5,623	5.80			94,179		5,342	7.58
Discontinued real estate		7,397		399	7.19			—		—	—
Credit card - domestic		62,784		5,059	10.76			57,148		5,444	12.74
Credit card - foreign		16,297		1,521	12.47			11,694		1,038	11.86
Direct/Indirect consumer (3)		82,242		5,220	8.48			68,281		4,344	8.51
Other consumer (4)		3,908		251	8.58			4,614		318	9.21
Total consumer		564,508		29,163	6.90			496,385		27,626	7.43
Commercial - domestic		218,702		8,812	5.38			168,948		9,180	7.26
Commercial real estate (5)		62,746		2,351	5.00			37,305		2,092	7.50
Commercial lease financing		22,364		557	3.32			19,828		638	4.29
Commercial - foreign		32,254		1,130	4.68			22,696		1,026	6.05
Total commercial		336,066		12,850	5.11			248,777		12,936	6.95
Total loans and leases		900,574		42,013	6.23			745,162		40,562	7.27
Other earning assets		67,513		3,202	6.33			70,091		3,333	6.35
Total earning assets (6)		1,544,617		64,976	5.61			1,352,177		64,924	6.41
Cash and cash equivalents		34,598						32,881
Other assets, less allowance for loan and lease losses		229,550						169,702
Total assets	$	1,808,765					$	1,554,760
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	32,419	$	172	0.71	%	$	32,436	$	138	0.57	%
NOW and money market deposit accounts		261,918		2,968	1.51			213,230		3,027	1.90
Consumer CDs and IRAs		195,318		5,569	3.81			162,372		5,638	4.64
Negotiable CDs, public funds and other time deposits		30,838		806	3.49			15,690		554	4.72
Total domestic interest-bearing deposits		520,493		9,515	2.44			423,728		9,357	2.95
Foreign interest-bearing deposits:
Banks located in foreign countries		36,401		938	3.44			42,025		1,617	5.14
Governments and official institutions		12,758		281	2.94			16,529		620	5.01
Time, savings and other		52,211		1,220	3.12			40,587		1,246	4.10
Total foreign interest-bearing deposits		101,370		2,439	3.21			99,141		3,483	4.70
Total interest-bearing deposits		621,863		11,954	2.57			522,869		12,840	3.28
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings		454,355		10,452	3.07			414,126		16,369	5.28
Trading account liabilities		76,752		2,250	3.92			83,132		2,619	4.21
Long-term debt		223,017		7,172	4.29			160,895		6,721	5.57
Total interest-bearing liabilities (6)		1,375,987		31,828	3.09			1,181,022		38,549	4.36
Noninterest-bearing sources:
Noninterest-bearing deposits		188,800						172,596
Other liabilities		83,088						67,264
Shareholders’ equity		160,890						133,878
Total liabilities and shareholders’ equity	$	1,808,765					$	1,554,760
Net interest spread					2.52	%					2.05	%
Impact of noninterest-bearing sources					0.34						0.55
Net interest income/yield on earning assets			$	33,148	2.86	%			$	26,375	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) Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis.

(3) Includes foreign consumer loans of $3.0 billion and $3.9 billion for the nine months ended September 30, 2008 and 2007.

(4) Includes consumer finance loans of $2.8 billion and $3.2 billion, and other foreign consumer loans of $947 million and $1.2 billion for the nine months ended September 30, 2008 and 2007.

(5) Includes domestic commercial real estate loans of $61.6 billion and $36.6 billion for the nine months ended September 30, 2008 and 2007.

(6) Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $219 million and $408 million for the nine months ended September 30, 2008 and 2007. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities $172 million and $612 million for the nine months ended September 30, 2008 and 2007.

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

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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)

	Nine Months Ended September 30
	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)	$	10,758	$	294		3.65		%	$	14,059	$	546		5.19		%
Federal funds sold and securities purchased under agreements to resell (2)		135,846		3,093		3.04				157,139		6,277		5.33
Trading account assets		189,579		7,089		4.99				186,137		7,325		5.25
Debt securities (2)		240,347		9,474		5.26				179,589		7,241		5.38
Loans and leases:
Residential mortgage		262,478		11,090		5.63				260,469		11,140		5.70
Home equity		129,402		5,623		5.80				94,179		5,342		7.58
Discontinued real estate		7,397		399		7.19				—		—		—
Credit card - domestic		62,784		5,059		10.76				57,148		5,444		12.74
Credit card - foreign		16,297		1,521		12.47				11,694		1,038		11.86
Direct/Indirect consumer		82,242		5,220		8.48				68,281		4,344		8.51
Other consumer		3,908		251		8.58				4,614		318		9.21
Total consumer		564,508		29,163		6.90				496,385		27,626		7.43
Commercial - domestic (2)		218,702		8,840		5.40				168,948		9,201		7.28
Commercial real estate		62,746		2,351		5.00				37,305		2,092		7.50
Commercial lease financing		22,364		557		3.32				19,828		638		4.29
Commercial - foreign (2)		32,254		1,130		4.68				22,696		1,025		6.04
Total commercial		336,066		12,878		5.12				248,777		12,956		6.96
Total loans and leases		900,574		42,041		6.21				745,162		40,582		7.28
Other earning assets (2)		67,513		3,204		6.33				70,091		3,361		6.41
Total earning assets - excluding hedge impact		1,544,617		65,195		5.62				1,352,177		65,332		6.45
Net hedge income (expense) on assets				(219	)							(408	)
Total earning assets - including hedge impact		1,544,617		64,976		5.61				1,352,177		64,924		6.41
Cash and cash equivalents		34,598								32,881
Other assets, less allowance for loan and lease losses		229,550								169,702
Total assets	$	1,808,765							$	1,554,760
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	32,419	$	172		0.71		%	$	32,436	$	138		0.57		%
NOW and money market deposit accounts (2)		261,918		2,958		1.51				213,230		3,013		1.89
Consumer CDs and IRAs (2)		195,318		5,250		3.59				162,372		5,134		4.23
Negotiable CDs, public funds and other time deposits (2)		30,838		799		3.46				15,690		547		4.67
Total domestic interest-bearing deposits		520,493		9,179		2.36				423,728		8,832		2.79
Foreign interest-bearing deposits:
Banks located in foreign countries (2)		36,401		949		3.48				42,025		1,615		5.14
Governments and official institutions		12,758		281		2.94				16,529		620		5.01
Time, savings and other		52,211		1,220		3.12				40,587		1,246		4.10
Total foreign interest-bearing deposits		101,370		2,450		3.23				99,141		3,481		4.69
Total interest-bearing deposits		621,863		11,629		2.50				522,869		12,313		3.15
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings (2)		454,355		10,052		2.95				414,126		16,671		5.38
Trading account liabilities		76,752		2,250		3.92				83,132		2,619		4.21
Long-term debt (2)		223,017		7,725		4.62				160,895		6,334		5.25
Total interest-bearing liabilities - excluding hedge impact		1,375,987		31,656		3.07				1,181,022		37,937		4.29
Net hedge (income) expense on liabilities				172								612
Total interest-bearing liabilities - including hedge impact		1,375,987		31,828		3.09				1,181,022		38,549		4.36
Noninterest-bearing sources:
Noninterest-bearing deposits		188,800								172,596
Other liabilities		83,088								67,264
Shareholders’ equity		160,890								133,878
Total liabilities and shareholders’ equity	$	1,808,765							$	1,554,760
Net interest spread						2.55								2.16
Impact of noninterest-bearing sources						0.34								0.54
Net interest income/yield on earning assets - excluding hedge impact			$	33,539		2.89		%			$	27,395		2.70		%
Net impact of hedge income (expense)				(391	)	(0.03	)					(1,020	)	(0.10	)
Net interest income/yield on earning assets			$	33,148		2.86		%			$	26,375		2.60		%

(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:

	Nine Months Ended September 30
	2008			2007
Time deposits placed and other short-term investments	$	(12	)	$	(41	)
Federal funds sold and securities purchased under agreements to resell		(173	)		(303	)
Debt securities		(4	)		(16	)
Commercial - domestic		(28	)		(21	)
Commercial - foreign		—			1
Other earning assets		(2	)		(28	)
Net hedge income (expense) on assets	$	(219	)	$	(408	)
Interest expense excludes the impact of interest rate risk management contracts, which increased (decreased) interest expense on:
NOW and money market deposit accounts	$	10		$	14
Consumer CDs and IRAs		319			504
Negotiable CDs, public funds and other time deposits		7			7
Banks located in foreign countries		(11	)		2
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings		400			(302	)
Long-term debt		(553	)		387
Net hedge (income) expense on liabilities	$	172		$	612

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

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

Bank of America Corporation and Subsidiaries

Global Consumer and Small Business Banking - Key Indicators

(Dollars in millions; except as noted)

	Nine Months Ended September 30						Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007			Third Quarter 2007
	2008			2007
Deposits and Student Lending Key Indicators
Average retail deposit balances
Checking	$	181,337		$	173,593		$	180,678		$	183,920		$	179,426		$	176,189		$	171,380
Savings		32,039			32,020			31,959			32,765			31,393			31,534			31,081
MMS		127,559			107,295			140,660			130,718			120,563			115,122			109,754
CD’s & IRA’s		185,263			157,372			218,711			178,394			187,678			183,640			162,072
Foreign and other		3,331			2,847			4,039			3,689			2,718			3,546			3,173
Total average retail deposit balances	$	529,529		$	473,127		$	576,047		$	529,486		$	521,778		$	510,031		$	477,460
Retail deposit spreads (excludes noninterest costs)
Checking		4.10	%		4.25	%		4.09	%		4.03	%		4.16	%		4.26	%		4.26	%
Savings		3.83			3.75			3.79			3.74			3.91			3.79			3.74
MMS		1.04			2.98			1.07			1.11			1.20			2.40			2.95
CD’s & IRA’s		0.13			1.01			0.18			0.32			0.44			0.80			0.97
Foreign and other		3.98			4.35			2.94			3.84			4.43			4.37			4.32
Total retail deposit spreads		1.90			2.83			1.86			2.02			2.10			2.55			2.79
Net new retail checking (units in thousands)		2,043			1,961			812			674			557			343			757
Online banking (end of period)
Active accounts (units in thousands)		27,929			23,057			27,929			25,299			24,949			23,791			23,057
Active billpay accounts (units in thousands)		15,433			11,928			15,433			13,269			13,081			12,552			11,928
Card Services Key Indicators
Managed credit card data (1)
Gross interest yield		11.63	%		12.73	%		11.52	%		11.44	%		11.94	%		12.48	%		12.74	%
Loss rates		5.85			4.81			6.40			5.96			5.19			4.75			4.67
Average outstandings	$	185,258		$	169,005		$	186,408		$	185,659		$	183,694		$	178,411		$	172,002
Ending outstandings		183,398			173,770			183,398			187,162			183,758			183,691			173,770
New account growth (in thousands)		7,051			8,260			1,766			2,670			2,615			3,509			2,895
Purchase volumes	$	186,940		$	183,965		$	62,662		$	64,457		$	59,821		$	68,380		$	63,494
Delinquencies:
30 Day		5.89	%		5.24	%		5.89	%		5.53	%		5.61	%		5.45	%		5.24	%
90 Day		2.88			2.48			2.88			2.82			2.83			2.66			2.48
Mortgage, Home Equity and Insurance Services Key Indicators
Mortgage servicing rights at fair value period end balance	$	20,811		$	3,179		$	20,811		$	4,250		$	3,163		$	3,053		$	3,179
Capitalized mortgage servicing rights (% of loans serviced)		126	bps		130	bps		126	bps		145	bps		118	bps		118	bps		130	bps
Mortgage loans serviced for investors (in billions)	$	1,654		$	245		$	1,654		$	292		$	268		$	259		$	245
Global Consumer and Small Business Banking
Mortgage production	$	86,184		$	70,934		$	49,625		$	18,515		$	18,044		$	22,370		$	24,533
Home equity production		27,487			53,135			4,669			8,997			13,821			16,001			17,352
Total Corporation
Mortgage production		95,899			79,551			51,539			22,438			21,922			24,834			26,930
Home equity production		34,573			64,884			6,432			11,500			16,641			19,299			21,105

(1) Credit Card includes U.S. Consumer Card and foreign credit card. Does not include Business Credit Card.

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

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

Bank of America Corporation and Subsidiaries

E-Commerce & BankofAmerica.com

Bank of America has the largest active online banking customer base with 27.9 million subscribers.

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

15.4 million active bill pay users paid $47.7 billion worth of bills this quarter (through August 31, 2008). 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.

Approximately 37.6 million e-bills were presented in the 3rd quarter.

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

Bank of America Corporation and Subsidiaries

Credit Card Data ⁽¹⁾

(Dollars in millions)

	Nine Months Ended September 30							Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007			Third Quarter 2007
	2008			2007
Loans
Period end
Held credit card outstandings	$	81,350		$	71,702			$	81,350		$	78,642		$	75,911		$	80,724		$	71,702
Securitization impact		102,048			102,068				102,048			108,520			107,847			102,967			102,068
Managed credit card outstandings	$	183,398		$	173,770			$	183,398		$	187,162		$	183,758		$	183,691		$	173,770
Average
Held credit card outstandings	$	79,081		$	68,842			$	80,489		$	78,221		$	78,518		$	74,392		$	69,486
Securitization impact		106,177			100,163				105,919			107,438			105,176			104,019			102,516
Managed credit card outstandings	$	185,258		$	169,005			$	186,408		$	185,659		$	183,694		$	178,411		$	172,002
Credit Quality
Charge-Offs $
Held net charge-offs	$	3,306		$	2,595			$	1,242		$	1,108		$	956		$	846		$	808
Securitization impact		4,813			3,481				1,754			1,643			1,416			1,292			1,216
Managed credit card net losses	$	8,119		$	6,076			$	2,996		$	2,751		$	2,372		$	2,138		$	2,024
Charge-Offs %
Held net charge-offs		5.58	%		5.04		%		6.14	%		5.69	%		4.90	%		4.51	%		4.61		%
Securitization impact		0.27			(0.23	)			0.26			0.27			0.29			0.24			0.06
Managed credit card net losses		5.85	%		4.81		%		6.40	%		5.96	%		5.19	%		4.75	%		4.67		%
30+ Delinquency $
Held delinquency	$	4,675		$	3,727			$	4,675		$	4,121		$	4,017		$	4,298		$	3,727
Securitization impact		6,126			5,381				6,126			6,226			6,288			5,710			5,381
Managed delinquency	$	10,801		$	9,108			$	10,801		$	10,347		$	10,305		$	10,008		$	9,108
30+ Delinquency %
Held delinquency		5.75	%		5.20		%		5.75	%		5.24	%		5.29	%		5.32	%		5.20		%
Securitization impact		0.14			0.04				0.14			0.29			0.32			0.13			0.04
Managed delinquency		5.89	%		5.24		%		5.89	%		5.53	%		5.61	%		5.45	%		5.24		%
90+ Delinquency $
Held delinquency	$	2,330		$	1,788			$	2,330		$	2,109		$	2,055		$	2,127		$	1,788
Securitization impact		2,958			2,514				2,958			3,169			3,137			2,757			2,514
Managed delinquency	$	5,288		$	4,302			$	5,288		$	5,278		$	5,192		$	4,884		$	4,302
90+ Delinquency %
Held delinquency		2.87	%		2.49		%		2.87	%		2.68	%		2.71	%		2.63	%		2.49		%
Securitization impact		0.01			(0.01	)			0.01			0.14			0.12			0.03			(0.01	)
Managed delinquency		2.88	%		2.48		%		2.88	%		2.82	%		2.83	%		2.66	%		2.48		%

(1) Credit Card includes U.S. Consumer Card and foreign credit card. Does not include Business Credit Card.

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

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

Bank of America Corporation and Subsidiaries

Global Corporate and Investment Banking - Business Lending Key Indicators

(Dollars in millions)

	Nine Months Ended September 30						Third Quarter 2008			Second Quarter 2008			First Quarter 2008			Fourth Quarter 2007			Third Quarter 2007
	2008			2007
Provision for credit losses
Corporate lending	$	64		$	68		$	84		$	(31	)	$	11		$	(26	)	$	66
Commercial lending		1,033			48			416			294			323			144			70
Consumer indirect lending		604			257			280			135			189			162			102
Total provision for credit losses	$	1,701		$	373		$	780		$	398		$	523		$	280		$	238
Credit quality (1, 2, 3)
Utilized criticized exposure
Corporate lending	$	6,378		$	1,535		$	6,378		$	4,947		$	3,235		$	2,098		$	1,535
		5.83	%		1.99	%		5.83	%		4.93	%		3.24	%		2.44	%		1.99	%
Commercial lending	$	24,677		$	8,006		$	24,677		$	21,168		$	17,351		$	13,926		$	8,006
		9.13	%		4.23	%		9.13	%		7.98	%		6.73	%		5.40	%		4.23	%
Total utilized criticized exposure	$	31,055		$	9,541		$	31,055		$	26,115		$	20,586		$	16,024		$	9,541
		8.18	%		3.58	%		8.18	%		7.15	%		5.76	%		4.79	%		3.58	%
Nonperforming assets
Corporate lending	$	407		$	269		$	407		$	150		$	150		$	115		$	269
		0.65	%		0.61	%		0.65	%		0.27	%		0.30	%		0.24	%		0.61	%
Commercial lending	$	4,370		$	777		$	4,370		$	3,680		$	2,603		$	1,923		$	777
		1.69	%		0.39	%		1.69	%		1.42	%		1.02	%		0.77	%		0.39	%
Total nonperforming assets	$	4,777		$	1,046		$	4,777		$	3,830		$	2,753		$	2,038		$	1,046
		1.49	%		0.43	%		1.49	%		1.22	%		0.90	%		0.69	%		0.43	%
Average loans and leases by product
Commercial	$	157,149		$	117,855		$	160,648		$	157,850		$	152,914		$	150,192		$	120,357
Leases		24,376			21,745			24,574			24,287			24,264			24,246			22,051
Foreign		24,405			15,948			25,256			25,132			22,818			22,930			17,952
Real estate		58,650			34,867			59,169			58,656			58,118			55,814			36,120
Consumer		40,445			40,418			42,205			40,345			38,765			39,613			40,956
Other		1,740			2,026			1,515			1,822			1,885			1,991			1,940
Total average loans and leases	$	306,765		$	232,859		$	313,367		$	308,092		$	298,764		$	294,786		$	239,376

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

(2) 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.

(3) Criticized exposure related to the fair value option portfolio is not included. There are no nonperforming assets in the fair value portfolio.

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

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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)

	Nine Months Ended September 30			Third Quarter 2008		Second Quarter 2008		First Quarter 2008		Fourth Quarter 2007		Third Quarter 2007
	2008		2007
Investment banking income
Advisory fees	$      180		$      334	$          63		$        51		$        66		$      112		$       94
Debt underwriting	1,342		1,395	378		605		359		377		281
Equity underwriting	400		231	50		110		240		88		61
Total investment banking income	1,922		1,960	491		766		665		577		436
Sales and trading revenue
Fixed income:
Liquid products	3,027		1,559	1,063		1,102		862		596		634
Credit products	(123	)	171	(151	)	683		(655	)	(383	)	(844	)
Structured products	(4,101	)	185	(1,329	)	(922	)	(1,850	)	(5,511	)	(618	)
Total fixed income	(1,197	)	1,915	(417	)	863		(1,643	)	(5,298	)	(828	)
Equity income	807		1,119	175		298		334		206		252
Total sales and trading revenue	(390	)	3,034	(242	)	1,161		(1,309	)	(5,092	)	(576	)
Total Capital Markets and Advisory Services market-based revenue (1)	$    1,532		$   4,994	$       249		$    1,927		$    (644)		$  (4,515)		$    (140)
Balance sheet (average)
Trading account securities	$187,399		$183,705	$188,218		$183,119		$190,849		$188,925		$192,844
Reverse repurchases	57,094		63,193	63,375		51,655		56,184		51,266		52,436
Securities borrowed	69,165		90,358	62,982		65,742		78,839		84,399		81,404
Derivative assets	35,043		25,796	34,643		35,537		34,953		28,282		28,611
Total trading-related assets	$348,701		$363,052	$349,218		$336,053		$360,825		$352,872		$355,295
Sales credits from secondary trading
Liquid products	1,511		1,327	510		479		522		467		507
Credit products	1,033		1,198	295		384		354		346		422
Structured products	558		628	190		202		166		133		161
Equities	733		864	192		259		282		262		277
Total sales credits	3,835		4,017	1,187		1,324		1,324		1,208		1,367
Volatility of product revenues - 1 std dev
Liquid products	$     22.9		$     11.5	$        27.1		$     22.4		$     17.8		$      10.4		$     16.3
Credit products	23.1		11.4	24.7		8.8		26.5		12.0		21.8
Structured products	11.1		16.1	7.6		10.2		14.3		408.1		33.5
Equities	13.7		9.2	10.1		14.1		15.8		7.3		16.3
Total volatility	57.5		28.6	58.4		40.6		64.4		405.5		54.9

(1) Excludes $75 million and $44 million for the nine months ended September 30, 2008 and 2007, and $23 million, $25 million, $27 million, $26 million and $22 million, respectively, for the three months ended September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007 and September 30, 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.

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

Bank of America Corporation and Subsidiaries

Global Corporate and Investment Banking Strategic Progress

Source: Thomson Financial except Syndicated Loans and Leveraged Loans from Loan Pricing Corporation. Ranked based on deal size.

(1) M&A Announced Advisor Rankings

Highlights

• Top 5 rankings in:

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

• Market share for convertible debt, asset-backed securities and investment grade debt for YTD 08 includes self-funded deals, market share without these deals was 11.7%, 9.1% and 10.1%, respectively.

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

Bank of America Corporation and Subsidiaries

Super Senior Collateralized Debt Obligation Exposure Rollforward

(Dollars in millions)

	June 30, 2008 Net Exposure	Paydowns /Liquidations / Other		Third Quarter 2008 Net Writedowns (1)		September 30, 2008 Net Exposure
Super senior liquidity commitments
High grade	$   714	$  (26	)	$  —		$   688
Mezzanine	358	—		(21	)	337
CDO-squared	—	—		—		—
Total super senior liquidity commitments	1,072	(26	)	(21	)	1,025
Other super senior exposure
High grade	3,608	(13	)	(257	)	3,338
Mezzanine	277	(14	)	(84	)	179
CDO-squared	1,804	(9	)	(363	)	1,432
Total other super senior	5,689	(36	)	(704	)	4,949
Total super senior	$6,761	$  (62	)	$(725	)	$5,974
Purchased securities from liquidated CDOs	1,667	(57	)	(152	)	1,458
Total	$8,428	$(119	)	$(877	)	$7,432

(1) Net of insurance.

Super Senior Collateralized Debt Obligation Exposure

(Dollars in millions)

	Total CDO Exposure at September 30, 2008														Total CDO
	Subprime Exposure (1)							Non-Subprime Exposure (2)							Net Exposure
	Gross	Insured		Net of Insured Amount	Cumulative Writedowns (3)		Net Exposure	Gross	Insured		Net of Insured Amount	Cumulative Writedowns (3)		Net Exposure	September 30 2008	June 30 2008
Super senior liquidity commitments
High grade	$    —	$    —		$  —	$    —		$    —	$   688	$    —		$   688	$  —		$   688	$   688	$   714
Mezzanine	363	—		363	(26	)	337	—	—		—	—		—	337	358
CDO-squared	—	—		—	—		—	—	—		—	—		—	—	—
Total super senior liquidity commitments	363	—		363	(26	)	337	688	—		688	—		688	1,025	1,072
Other super senior exposure
High grade	5,142	(3,723	)	1,419	(477	)	942	3,459	(735	)	2,724	(328	)	2,396	3,338	3,608
Mezzanine	1,006	—		1,006	(827	)	179	—	—		—	—		—	179	277
CDO-squared	5,098	—		5,098	(3,666	)	1,432	349	(349	)	—	—		—	1,432	1,804
Total other super senior	11,246	(3,723	)	7,523	(4,970	)	2,553	3,808	(1,084	)	2,724	(328	)	2,396	4,949	5,689
Total super senior	$11,609	$(3,723	)	$7,886	$(4,996	)	$2,890	4,496	(1,084	)	$3,412	$(328	)	$3,084	$5,974	$6,761
Purchased securities from liquidated CDOs	1,750	—		1,750	(292	)	1,458	—	—		—	—		—	1,458	1,667
Total	$13,359	$(3,723	)	$9,636	$(5,288	)	$4,348	$4,496	$(1,084	)	$3,412	$(328	)	$3,084	$7,432	$8,428

(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) Net of insurance excluding losses taken on liquidated CDOs.

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

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

Bank of America Corporation and Subsidiaries

Subprime Super Senior Collateralized Debt Obligation Carrying Values ⁽¹⁾

(Dollars in millions)

	September 30, 2008
	Subprime Net Exposure	Carrying Value as a Percent of Original Net Exposure		Subprime Content of Collateral (2)		Vintage of Subprime Collateral
						Percent in 2006/2007 Vintages		Percent in 2005/Prior Vintages
Super senior liquidity commitments
High grade	$   —	—	%	—	%	—	%	—	%
Mezzanine	337	93		42		46		54
CDO-squared	—	—		—		—		—
Total super senior liquidity commitments	337	93
Other super senior exposure
High grade	942	66		56		14		86
Mezzanine	179	18		73		69		31
CDO-squared	1,432	28		23		71		29
Total other super senior	2,553	34
Total super senior	$2,890	37
Purchased securities from liquidated CDOs	1,458	48		51		38		62
Total	$4,348	40

(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.

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

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

Bank of America Corporation and Subsidiaries

Outstanding Loans and Leases

(Dollars in millions)

	September 30 2008	June 30 2008	Increase (Decrease)
Consumer
Residential mortgage	$256,989	$235,472	$21,517
Home equity	151,938	121,409	30,529
Discontinued real estate (1)	22,081	—	22,081
Credit card - domestic	63,012	62,081	931
Credit card - foreign	18,338	16,561	1,777
Direct/Indirect consumer (2)	82,849	84,907	(2,058	)
Other consumer (3)	3,680	3,859	(179	)
Total consumer	598,887	524,289	74,598
Commercial
Commercial - domestic (4)	219,303	220,610	(1,307	)
Commercial real estate (5)	63,736	62,897	839
Commercial lease financing	22,416	22,815	(399	)
Commercial - foreign	32,951	34,839	(1,888	)
Total commercial loans measured at historical cost	338,406	341,161	(2,755	)
Commercial loans measured at fair value (6)	5,383	5,014	369
Total commercial	343,789	346,175	(2,386	)
Total loans and leases	$942,676	$870,464	$72,212

(1) At September 30, 2008, includes $20.1 billion of pay option loans and $1.9 billion of subprime mortgage and home equity loans acquired in connection with the acquisition of Countrywide Financial Corporation which the Corporation will no longer originate.

(2) Includes foreign consumer loans of $2.4 billion and $2.9 billion at September 30, 2008 and June 30, 2008.

(3) Includes consumer finance loans of $2.7 billion and $2.8 billion, and other foreign consumer loans of $736 million and $839 million at September 30, 2008 and June 30, 2008.

(4) Includes small business commercial - domestic loans, primarily card related, of $19.4 billion and $19.9 billion at September 30, 2008 and June 30, 2008.

(5) Includes domestic commercial real estate loans of $62.7 billion and $61.8 billion, and foreign commercial real estate loans of $1.0 billion and $1.1 billion at September 30, 2008 and June 30, 2008.

(6) Certain commercial loans are measured at fair value in accordance with SFAS 159 and include commercial - domestic loans of $4.0 billion and $3.5 billion, commercial - foreign loans of $1.2 billion and $1.3 billion, and commercial real estate loans of $213 million and $176 million at September 30, 2008 and June 30, 2008.

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

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

Bank of America Corporation and Subsidiaries

Nonperforming Assets

(Dollars in millions)

	September 30 2008		June 30 2008		March 31 2008		December 31 2007		September 30 2007
Residential mortgage	$  4,477		$  3,269		$  2,576		$  1,999		$  1,176
Home equity	2,022		1,851		1,786		1,340		764
Discontinued real estate	2		—		—		—		—
Direct/Indirect consumer	13		11		6		8		6
Other consumer	89		89		91		95		94
Total consumer	6,603		5,220		4,459		3,442		2,040
Commercial - domestic (1)	1,566		1,079		980		852		638
Commercial real estate	3,090		2,616		1,627		1,099		352
Commercial lease financing	35		40		44		33		29
Commercial - foreign	48		48		54		19		16
	4,739		3,783		2,705		2,003		1,035
Small business commercial - domestic	183		153		169		152		105
Total commercial	4,922		3,936		2,874		2,155		1,140
Total nonperforming loans and leases	11,525		9,156		7,333		5,597		3,180
Foreclosed properties	1,832		593		494		351		192
Total nonperforming assets (2, 3)	$13,357		$  9,749		$  7,827		$  5,948		$  3,372
Loans past due 90 days or more and still accruing (3, 4)	$11,600		$  4,548		$  4,160		$  3,736		$  2,955
Nonperforming assets/Total assets (5)	0.73	%	0.57	%	0.45	%	0.35	%	0.21	%
Nonperforming assets/Total loans, leases and foreclosed properties (5)	1.42		1.13		0.90		0.68		0.43
Nonperforming loans and leases/Total loans and leases outstanding measured at historical cost (5)	1.23		1.06		0.84		0.64		0.40
Allowance for credit losses:
Allowance for loan and lease losses	$20,346		$17,130		$14,891		$11,588		$  9,535
Reserve for unfunded lending commitments	427		507		507		518		392
Total allowance for credit losses	$20,773		$17,637		$15,398		$12,106		$  9,927
Allowance for loan and lease losses/Total loans and leases outstanding measured at historical cost (5)	2.17	%	1.98	%	1.71	%	1.33	%	1.21	%
Allowance for loan and lease losses/Total nonperforming loans and leases measured at historical cost	177		187		203		207		300
Commercial utilized criticized exposure (6)	$33,837		$28,322		$22,720		$17,544		$10,803
Commercial utilized criticized exposure/Commercial utilized exposure (6)	7.32	%	6.16	%	5.16	%	4.18	%	3.06	%

(1) Excludes small business commercial - domestic loans.

(2) Balances do not include nonperforming loans held-for-sale included in other assets of $848 million, $388 million, $327 million, $188 million and $93 million at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007 and September 30, 2007, respectively.

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

(4) Balances do not include loans held-for-sale past due 90 days or more and still accruing interest included in other assets of $138 million, $32 million, $69 million, $79 million and $8 million at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007 and September 30, 2007, respectively.

(5) Ratios do not include loans measured at fair value in accordance with SFAS 159 of $5.4 billion, $5.0 billion, $5.1 billion, $4.6 billion and $4.5 billion at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007 and September 30, 2007, respectively.

(6) Criticized exposure and ratios exclude assets held-for-sale and exposure measured at fair value in accordance with SFAS 159. Including assets held-for-sale and commercial loans measured at fair value, the ratios would have been 7.94 percent, 6.62 percent, 6.12 percent, 4.77 percent and 3.66 percent at September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007 and September 30, 2007, respectively.

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

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

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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)

	Third Quarter 2008				Second Quarter 2008			First Quarter 2008				Fourth Quarter 2007			Third Quarter 2007
Held Basis	Amount		Percent		Amount	Percent		Amount		Percent		Amount	Percent		Amount		Percent
Residential mortgage	$  242		0.37	%	$     151	0.24	%	$     66		0.10	%	$    27	0.04	%	$    13		0.02	%
Home equity	964		2.53		923	3.09		496		1.71		179	0.63		50		0.20
Discontinued real estate	(3	)	(0.05	)	—	—		—		—		—	—		—		—
Credit card - domestic	1,094		6.86		976	6.36		847		5.39		738	4.87		712		4.91
Credit card - foreign	148		3.46		132	3.21		109		2.87		108	2.99		96		3.19
Direct/Indirect consumer	845		3.94		660	3.22		555		2.84		456	2.41		353		1.92
Other consumer	106		11.36		83	8.47		86		8.61		96	9.08		78		7.18
Total consumer	3,396		2.24		2,925	2.17		2,159		1.58		1,604	1.17		1,302		0.99
Commercial - domestic (3)	117		0.23		70	0.14		77		0.16		64	0.13		11		0.03
Commercial real estate	262		1.65		136	0.88		107		0.70		17	0.12		28		0.28
Commercial lease financing	8		0.13		6	0.11		15		0.27		17	0.31		(3	)	(0.07	)
Commercial - foreign	46		0.56		5	0.06		(7	)	(0.10	)	2	0.03		(4	)	(0.06	)
	433		0.54		217	0.28		192		0.25		100	0.13		32		0.05
Small business commercial - domestic	527		10.64		477	9.59		364		7.44		281	5.92		239		5.38
Total commercial	960		1.13		694	0.84		556		0.69		381	0.47		271		0.42
Total net charge-offs	$4,356		1.84		$3,619	1.67		$2,715		1.25		$1,985	0.91		$1,573		0.80
Supplemental managed basis data
Credit card - domestic	$2,643		6.87	%	$2,414	6.36	%	$2,068		5.48	%	$1,816	4.90	%	$1,707		4.76	%
Credit card - foreign	353		4.21		337	4.11		304		3.84		322	4.06		317		4.24
Total credit card managed net losses	$2,996		6.40		$2,751	5.96		$2,372		5.19		$2,138	4.75		$2,024		4.67

(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 measured at historical cost during the period for each loan and lease category.

(2) Net charge-offs include the impact of SOP 03-3 which decreased net charge-offs on residential mortgage $283 million, home equity $768 million, discontinued real-estate $943, commercial - domestic $14 million, commercial real estate $17 million and small business commercial - domestic $3 million for the three months ended September 30, 2008; on residential mortgage $3 million, home equity $4 million, commercial - domestic $3 million, commercial real estate $8 million and small business commercial - domestic $2 million for the three months ended June 30, 2008; on residential mortgage $2 million, home equity $3 million, commercial - domestic $3 million, commercial real estate $8 million and small business commercial - domestic $3 million for the three months ended March 31, 2008; and on residential mortgage $2 million, home equity $8 million, direct/indirect consumer $2 million, commercial - domestic $29 million, commercial real estate $27 million, commercial lease financing $2 million and small business commercial - domestic $5 million for the three months ended December 31, 2007. The impact of SOP 03-3 was not material for the three months ended September 30, 2007. Refer to Exhibit A on page 24 for a reconciliation of net charge-offs and net charge-off ratios to the net charge-offs and net charge-off ratios excluding the impact of SOP 03-3.

(3) Excludes small business commercial - domestic loans.

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

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

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

Bank of America Corporation and Subsidiaries

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

(Dollars in millions)

	Nine Months Ended September 30
	2008				2007
Held Basis	Amount		Percent		Amount		Percent
Residential mortgage	$     459		0.23	%	$     30		0.02	%
Home equity	2,383		2.46		95		0.13
Discontinued real estate	(3	)	(0.05	)	—		—
Credit card - domestic	2,917		6.20		2,325		5.44
Credit card - foreign	389		3.19		270		3.09
Direct/Indirect consumer	2,060		3.35		917		1.75
Other consumer	275		9.45		182		5.78
Total consumer	8,480		2.01		3,819		1.02
Commercial - domestic (3)	264		0.18		64		0.06
Commercial real estate	505		1.08		30		0.11
Commercial lease financing	29		0.17		(15	)	(0.10	)
Commercial - foreign	44		0.18		(1	)	(0.01	)
	842		0.36		78		0.04
Small business commercial - domestic	1,368		9.23		598		4.82
Total commercial	2,210		0.89		676		0.37
Total net charge-offs	$10,690		1.59		$4,495		0.80
Supplemental managed basis data
Credit card - domestic	$  7,125		6.24	%	$5,144		4.91	%
Credit card - foreign	994		4.06		932		4.31
Total credit card managed net losses	$  8,119		5.85		$6,076		4.81

(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 measured at historical cost during the period for each loan and lease category.

(2) Net charge-offs include the impact of SOP 03-3 which decreased net charge-offs on residential mortgage $288 million, home equity $775 million, discontinued real estate $943 million, commercial - domestic $20 million, commercial real estate $33 million and small business commercial - domestic $8 million for the nine months ended September 30, 2008. The impact of SOP 03-3 was not material for the nine months ended September 30, 2007. Refer to Exhibit A on page 24 for a reconciliation of net charge-offs and net charge-off ratios to net charge-offs and net charge-off ratios excluding the impact of SOP 03-3.

(3) Excludes small business commercial - domestic loans.

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

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

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

Bank of America Corporation and Subsidiaries

Allocation of the Allowance for Credit Losses by Product Type

(Dollars in millions)

	September 30 2008			June 30 2008			September 30 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	$  1,376	0.54	%	$    792	0.34	%	$   201	0.07	%
Home equity	4,744	3.12		3,812	3.14		402	0.40
Discontinued real estate	82	0.37		—	—		—	—
Credit card - domestic	3,624	5.75		3,210	5.17		2,751	4.69
Credit card - foreign	633	3.45		474	2.86		345	2.66
Direct/Indirect consumer	3,742	4.52		2,964	3.49		1,743	2.36
Other consumer	184	5.02		185	4.81		157	3.64
Total consumer	14,385	2.40		11,437	2.18		5,599	1.07
Commercial - domestic (2)	4,072	1.86		3,844	1.74		2,764	1.56
Commercial real estate	1,376	2.16		1,333	2.12		644	1.60
Commercial lease financing	210	0.94		199	0.87		186	0.91
Commercial - foreign	303	0.92		317	0.91		342	1.21
Total commercial	5,961	1.76		5,693	1.67		3,936	1.48
Allowance for loan and lease losses	20,346	2.17		17,130	1.98		9,535	1.21
Reserve for unfunded lending commitments	427			507			392
Allowance for credit losses	$20,773			$17,637			$9,927

(1) Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding measured at historical cost for each loan and lease category. Ratios do not include certain commercial loans measured at fair value in accordance with SFAS 159. Loans measured at fair value include commercial - domestic loans of $4.0 billion, $3.5 billion and $3.6 billion, commercial - foreign loans of $1.2 billion, $1.3 billion and $672 million, and commercial real estate loans of $213 million, $176 million and $224 million at September 30, 2008, June 30, 2008 and September 30, 2007.

(2) Includes allowance for small business commercial - domestic loans of $2.2 billion, $2.1 billion and $1.2 billion at September 30, 2008, June 30, 2008 and September 30, 2007.

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

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

Exhibit A: Non-GAAP Reconciliation

Reconciliation of Net Charge-offs and Net Charge-off Ratios to Net Charge-offs and Net Charge-off Ratios Excluding the Impact of SOP 03-3 ^{(1, 2)}

Net Charge-offs and Net Charge-off Ratios As Reported

	Nine Months Ended September 30, 2008					Third Quarter 2008					Second Quarter 2008				First Quarter 2008					Fourth Quarter 2007
	Average Outstanding					Average Outstanding					Average Outstanding				Average Outstanding					Average Outstanding
(Dollars in millions)	Amount		Loans and Leases	Percent		Amount		Loans and Leases	Percent		Amount	Loans and Leases	Percent		Amount		Loans and Leases	Percent		Amount	Loans and Leases	Percent
Residential mortgage	$     459		$262,478	0.23	%	$   242		$260,748	0.37	%	$   151	$256,164	0.24	%	$     66		$270,541	0.10	%	$     27	$277,058	0.04	%
Home equity	2,383		129,402	2.46		964		151,142	2.53		923	120,265	3.09		496		116,562	1.71		179	112,369	0.63
Discontinued real estate	(3	)	7,397	(0.05	)	(3	)	22,031	(0.05	)	—	—	—		—		—	—		—	—	—
Credit card - domestic	2,917		62,784	6.20		1,094		63,414	6.86		976	61,655	6.36		847		63,277	5.39		738	60,063	4.87
Credit card - foreign	389		16,297	3.19		148		17,075	3.46		132	16,566	3.21		109		15,241	2.87		108	14,329	2.99
Direct/Indirect consumer	2,060		82,242	3.35		845		85,392	3.94		660	82,593	3.22		555		78,705	2.84		456	75,138	2.41
Other consumer	275		3,908	9.45		106		3,723	11.36		83	3,953	8.47		86		4,049	8.61		96	4,206	9.08
Total consumer	8,480		564,508	2.01		3,396		603,525	2.24		2,925	541,196	2.17		2,159		548,375	1.58		1,604	543,163	1.17
Commercial - domestic	264		198,903	0.18		117		204,402	0.23		70	199,529	0.14		77		192,721	0.16		64	190,902	0.13
Commercial real estate	505		62,746	1.08		262		63,220	1.65		136	62,810	0.88		107		62,202	0.70		17	59,702	0.12
Commercial lease financing	29		22,364	0.17		8		22,585	0.13		6	22,276	0.11		15		22,227	0.27		17	22,239	0.31
Commercial - foreign	44		32,254	0.18		46		33,467	0.56		5	32,820	0.06		(7	)	30,463	(0.10	)	2	29,815	0.03
	842		316,267	0.36		433		323,674	0.54		217	317,435	0.28		192		307,613	0.25		100	302,658	0.13
Small business commercial - domestic	1,368		19,799	9.23		527		19,715	10.64		477	20,008	9.59		364		19,673	7.44		281	22,298	5.92
Total commercial	2,210		336,066	0.89		960		343,389	1.13		694	337,443	0.84		556		327,286	0.69		381	324,956	0.47
Total net charge-offs	$10,690		$900,574	1.59		$4,356		$946,914	1.84		$3,619	$878,639	1.67		$2,715		$875,661	1.25		$1,985	$868,119	0.91
Impact of Purchase Accounting Adjustments(3)
Residential mortgage	$   288		$   833			$   283		$  2,480			$  3				$  2					$  2
Home equity	775		1,265			768		3,767			4				3					8
Discontinued real estate	943		1,873			943		5,579			—				—					—
Credit card - domestic	—		—			—		—			—				—					—
Credit card - foreign	—		—			—		—			—				—					—
Direct/Indirect consumer	—		—			—		—			—				—					2
Other consumer	—		—			—		—			—				—					—
Total consumer	2,006		3,971			1,994		$11,826			7				5					12
Commercial - domestic	20		—			14		—			3				3					29
Commercial real estate	33		—			17		—			8				8					27
Commercial lease financing	—		—			—		—			—				—					2
Commercial - foreign	—		—			—		—			—				—					—
	53		—			31		—			11				11					58
Small business commercial - domestic	8		—			3		—			2				3					5
Total commercial	61		—			34		—			13				14					63
Total net charge-offs	$2,067		$3,971			$2,028		$11,826			$20				$19					$75
Net Charge-offs and Net Charge-off Ratios Excluding the Impact of Purchase Accounting Adjustments(3)
Residential mortgage	$     747		$263,311	0.38	%	$   525		$263,228	0.79	%	$   154	$256,164	0.24	%	$     68		$270,541	0.10	%	$     29	$277,058	0.04	%
Home equity	3,158		130,667	3.23		1,732		154,909	4.45		927	120,265	3.10		499		116,562	1.72		187	112,369	0.66
Discontinued real estate	940		9,270	13.54		940		27,610	13.55		—	—	—		—		—	—		—	—	—
Credit card - domestic	2,917		62,784	6.20		1,094		63,414	6.86		976	61,655	6.36		847		63,277	5.39		738	60,063	4.87
Credit card - foreign	389		16,297	3.19		148		17,075	3.46		132	16,566	3.21		109		15,241	2.87		108	14,329	2.99
Direct/Indirect consumer	2,060		82,242	3.35		845		85,392	3.94		660	82,593	3.22		555		78,705	2.84		458	75,138	2.41
Other consumer	275		3,908	9.45		106		3,723	11.36		83	3,953	8.47		86		4,049	8.61		96	4,206	9.08
Total consumer	10,486		568,479	2.46		5,390		615,351	3.48		2,932	541,196	2.18		2,164		548,375	1.59		1,616	543,163	1.18
Commercial - domestic	284		198,903	0.19		131		204,402	0.26		73	199,529	0.15		80		192,721	0.17		93	190,902	0.19
Commercial real estate	538		62,746	1.15		279		63,220	1.75		144	62,810	0.93		115		62,202	0.75		44	59,702	0.30
Commercial lease financing	29		22,364	0.17		8		22,585	0.13		6	22,276	0.11		15		22,227	0.27		19	22,239	0.34
Commercial - foreign	44		32,254	0.18		46		33,467	0.56		5	32,820	0.06		(7	)	30,463	(0.10	)	2	29,815	0.03
	895		316,267	0.38		464		323,674	0.58		228	317,435	0.29		203		307,613	0.27		158	302,658	0.21
Small business commercial - domestic	1,376		19,799	9.28		530		19,715	10.69		479	20,008	9.58		367		19,673	7.36		286	22,298	5.91
Total commercial	2,271		336,066	0.90		994		343,389	1.17		707	337,443	0.86		570		327,286	0.71		444	324,956	0.55
Total net charge-offs	$12,757		$904,545	1.88		$6,384		$958,740	2.66		$3,639	$878,639	1.67		$2,734		$875,661	1.26		$2,060	$868,119	0.95

(1) Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases measured at historical cost during the period for each loan category. The impact of SOP 03-3 on average outstanding loans and leases for the three months ended June 30, 2008, March 31, 2008 and December 31, 2007 was not material.

(2) The impact of SOP 03-3 was not material for the three and nine months ended September 30, 2007.

(3) These adjustments include purchase accounting adjustments in accordance with SOP 03-3 as well as purchase accounting adjustments related to nonimpaired loans

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

Appendix: Selected Slides from the

Third Quarter 2008 Earnings Release Presentation

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

Key Capital Markets Risk Exposures

($ in millions) Exposures

9/30/2008 6/30/2008

Leveraged lending related:

Net new commitments $ 2,535 $ 3,207

Prior commitments - distributed/funded/other (4,342) (3,039)

EOP Unfunded commitments 2,254 4,061

Net new additions 410 122

Sold or syndicated (2,268) (3,518)

EOP Funded commitments 4,296 6,154

Net writedown (145) (64)

Exposure originated prior to market disruption 4,150 6,630

Capital markets commercial mortgage related:

Unfunded commitments 700 717

Funded commitments 7,482 8,487

Net writedown (148) (79)

Other capital markets commercial mortgage writedowns (34) (184)

Super Senior CDO and other subprime related:

Super senior subprime, net of insurance 2,890 3,501

Super senior nonsubprime, net of insurance 3,084 3,260

Retained positions from terminated deals 1,458 1,667

Net writedown (952) (645)

EX-99.3

Exhibit 99.3

RISK FACTORS

Investing in our common stock involves risks, including the risks described below, that are specific to our shares of common stock and risks that could affect us, our business and our industry. Before purchasing any shares of our common stock, you should consider carefully the risks and other information set forth in a prospectus supplement and the attached prospectus pursuant to which we offer common stock, as well as the risks described in the documents incorporated by reference in the prospectus supplement and the attached prospectus, including those set forth under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2007.

There can be no assurance that recently enacted legislation authorizing the U.S. government to purchase large amounts of illiquid mortgages and mortgage-backed securities from financial institutions will help stabilize the U.S. financial system.

On October 3, 2008, President Bush signed into law the Emergency Economic Stabilization Act of 2008 (the “EESA”). The legislation was the result of a proposal by Treasury Secretary Henry Paulson to the U.S. Congress on September 20, 2008 in response to the financial crises affecting the banking system and financial markets and going concern threats to investment banks and other financial institutions. Pursuant to the EESA, the U.S. Treasury will have the authority to, among other things, purchase up to $700 billion of mortgages, mortgage-backed securities and certain other financial instruments from financial institutions for the purpose of stabilizing and providing liquidity to the U.S. financial markets. There can be no assurance, however, as to the actual impact that the EESA will have on the financial markets, including the extreme levels of volatility and limited credit availability currently being experienced. The failure of the EESA to help stabilize the financial markets and a continuation or worsening of current financial market conditions could materially and adversely affect our business, financial condition, results of operations, access to credit or the trading price of our common stock.

Difficult market conditions have adversely affected our industry.

Given the significance of our business in the United States, we are particularly exposed to downturns in the U.S. economy. Dramatic declines in the housing market over the past year, with falling home prices and increasing foreclosures, unemployment and under-employment, have negatively impacted the credit performance of mortgage loans and resulted in significant write-downs of asset values by financial institutions, including government-sponsored entities as well as major commercial and investment banks. These write-downs, initially of mortgage-backed securities but spreading to credit default swaps and other derivative and cash securities, in turn, have caused many financial institutions to seek additional capital, to merge with larger and stronger institutions and, in some cases, to fail. Reflecting concern about the stability of the financial markets generally and the strength of counterparties, many lenders and institutional investors have reduced or ceased providing funding to borrowers, including to other financial institutions. This market turmoil and tightening of credit have led to an increased level of commercial and consumer delinquencies, lack of consumer confidence, increased market volatility and widespread reduction of business activity generally. The resulting economic pressure on consumers and lack of confidence in the financial markets has adversely affected our business, financial condition and results of operations. We do not expect that the difficult conditions in the financial markets are likely to improve in the near future. A worsening of these conditions would likely exacerbate the adverse effects of these difficult market conditions on us and others in the financial institutions industry. In particular, we may face the following risks in connection with these events:

• We expect to face increased regulation of our industry, including as a result of the EESA. Compliance with such regulation may increase our costs and limit our ability to pursue business opportunities.

• Market developments may affect consumer confidence levels and may cause declines in credit card usage and adverse changes in payment patterns, causing increases in delinquencies and default rates, which we expect could impact our charge-offs and provision for credit losses.

• Our ability to assess the creditworthiness of our customers may be impaired if the models and approaches we use to select, manage, and underwrite our customers become less predictive of future behaviors.

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• The process we use to estimate losses inherent in our credit exposure requires difficult, subjective, and complex judgments, including forecasts of economic conditions and how these economic predictions might impair the ability of our borrowers to repay their loans, which may no longer be capable of accurate estimation which may, in turn, impact the reliability of the process.

• Our ability to borrow from other financial institutions or to engage in securitization funding transactions on favorable terms or at all could be adversely affected by further disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations.

• Competition in our industry could intensify as a result of the increasing consolidation of financial services companies in connection with current market conditions.

• We may be required to pay significantly higher Federal Deposit Insurance Corporation premiums because market developments have significantly depleted the insurance fund of the FDIC and reduced the ratio of reserves to insured deposits.

Current levels of market volatility are unprecedented.

The capital and credit markets have been experiencing volatility and disruption for more than 12 months. In recent weeks, the volatility and disruption has reached unprecedented levels. In some cases, the markets have produced downward pressure on stock prices and credit availability for certain issuers without regard to those issuers’ underlying financial strength. If current levels of market disruption and volatility continue or worsen, there can be no assurance that we will not experience an adverse effect, which may be material, on our ability to access capital and on our business, financial condition and results of operations.

The soundness of other financial institutions could adversely affect us.

Our ability to engage in routine funding transactions could be adversely affected by the actions and commercial soundness of other financial institutions. Financial services institutions are interrelated as a result of trading, clearing, counterparty or other relationships. We have exposure to many different industries and counterparties, and we routinely execute transactions with counterparties in the financial industry, including brokers and dealers, commercial banks, investment banks, mutual and hedge funds, and other institutional clients. As a result, defaults by, or even rumors or questions about, one or more financial services institutions, or the financial services industry generally, have led to market-wide liquidity problems and could lead to losses or defaults by us or by other institutions. Many of these transactions expose us to credit risk in the event of default of our counterparty or client. In addition, our credit risk may be exacerbated when the collateral held by us cannot be realized upon or is liquidated at prices not sufficient to recover the full amount of the loan or derivative exposure due us. There is no assurance that any such losses would not materially and adversely affect our results of operations.

Any reduction in our credit rating could increase the cost of our funding from the capital markets.

Although our long-term debt is currently rated investment grade by the major rating agencies, the ratings of that debt have been downgraded during 2008 by all of the major rating agencies. These rating agencies regularly evaluate us and their ratings of our long-term debt are based on a number of factors, including our financial strength as well as factors not entirely within our control, including conditions affecting the financial services industry generally. In light of the difficulties in the financial services industry and the financial markets, there can be no assurance that we will maintain our current ratings. Our failure to maintain those ratings could adversely affect the cost and other terms upon which we are able to obtain funding and increase our cost of capital.

We may fail to realize all of the anticipated benefits of a merger with Merrill Lynch & Co., Inc.

On September 15, 2008, we announced that we had entered into an Agreement and Plan of Merger, dated as of September 15, 2008, with Merrill Lynch & Co., Inc. (“Merrill Lynch”). Pursuant to the merger agreement, our newly-formed wholly-owned merger subsidiary will, subject to the terms and conditions of the merger agreement, merge into Merrill Lynch (the “Merrill Lynch merger”), with Merrill Lynch continuing as the surviving entity and our wholly-owned subsidiary. Completion of the Merrill Lynch merger is subject to certain customary conditions, including, among others, approval of the stockholders of both Bank of America and Merrill Lynch and receipt of regulatory approvals.

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If the Merrill Lynch merger is completed, its success will depend, in part, on our ability to realize the anticipated benefits and cost savings from combining the businesses of Bank of America and Merrill Lynch. However, to realize these anticipated benefits and cost savings, we must successfully combine the businesses of Bank of America and Merrill Lynch. If we are not able to achieve these objectives, the anticipated benefits and cost savings of the merger may not be realized fully or at all or may take longer to realize than expected.

Bank of America and Merrill Lynch have operated and, until the completion of the merger, will continue to operate, independently. It is possible that the integration process could result in the loss of key employees, the disruption of each company’s ongoing businesses or inconsistencies in standards, controls, procedures and policies that adversely affect our ability to maintain relationships with clients, customers, depositors and employees or to achieve the anticipated benefits of the merger. Integration efforts between the two companies will also divert management attention and resources. These integration matters could have an adverse effect on each of Merrill Lynch and Bank of America during such pre-merger transition period and for an undetermined period after consummation of the merger.

Many of the difficult market conditions that we face have adversely impacted Merrill Lynch as well.

Merrill Lynch and its business are subject to many of the same difficulties resulting from the market turmoil and tightening of credit as we are. Merrill Lynch has exposure to the mortgage market through securities, derivatives, loans and loan commitments, including CDOs and sub-prime mortgages or related securities, with respect to which Merrill Lynch has entered into credit derivatives with various counterparties, including financial guarantors. Like us, Merrill Lynch also faces counterparty risk. Valuation of these exposures will continue to be impacted by external market factors, including default rates, rating agency actions, and the prices at which observable market transactions occur and the continued availability of these transactions. Merrill Lynch’s ability to mitigate its risk by selling or hedging its exposures is also limited by the market environment, and its future results may continue to be materially impacted by the valuation adjustments applied to these positions. Many of the risks discussed above relating to the financial institutions industry, the difficult market conditions that exist in our industry, the volatility of the capital and credit markets and our credit risks apply to Merrill Lynch as well. Certain of these risks may have a differing impact, which in certain cases may be, or may have been, more adverse with respect to Merrill Lynch than with respect to us. In addition, Merrill Lynch may face risks in addition to those that we face.

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