about bank of america-full year 2009 review
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8/8/2019 About Bank of America-Full Year 2009 Review
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Investor Fact BookFull Year 2009
Kevin Stitt 704.386.5667
Lee McEntire 704.388.6780
Julie Park 704.386.4472
Patricia Noneman 980.388.3591
Jonathan Blum 212.449.3112
Internet address: http://investor.bankofamerica.com
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Table of Contents
I Th C III B i S t. The CompanyOur Company Today 2
Leadership Team 3
Board of Directors 4
Industry Rankings 5
Bank of America Today 6
U.S. Deposit Market Share 7
III. Business SegmentsCurrent Environment 44
Regulatory Overview and Recent Events 45
IV. DepositsOverview 46-48
-Banking Center Network 8
ATM Network 9
II. Financial OverviewFinancial Highlights 11
Supplemental Financial Data 12
Income Statement 13
V. Global Card ServicesOverview 51-52
Financials 53-54
VI. Home Loans & InsuranceBalance Sheet Composition 14
Balance Sheet 15
Net Income 16
Earnings Per Share 17
Dividends Per Share 18
Return on Equity 19
Return on Assets 20
Overview 55-58Financials 59-60
VII. Global BankingOverview 61-64
Financials 65-66
Noninterest Income Annual 21
Noninterest Income Quarterly 22
Noninterest Expense Annual 23
Noninterest Expense Quarterly 24
Rate Environment 25Net Interest Income and Yields Annual 26
VIII. Global MarketsOverview 67-69
Financials 70
IX. Global Wealth & Investment ManagementOverview 71-72
Quarterly Average Balance Sheet and Yields Table 28
Loan Portfolio 29
Nonperforming Assets 30-31
Net Charge-Offs and Provision Expense 32-34
Pre-Provision, Pre-Tax Income vs. Provision Expense 35
Allowance Allocation 36
Financials 73-75
X. All OtherFinancials 76
Global Principal Investments 77
Capital Levels 38
Efficiency Ratio 39Credit Ratings 40
Preferred Stock Information 41
Trust Preferred and Hybrid Securit ies Information 42
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All information is as of December 31, 2009, unless stated otherwise.
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Our Company Today
Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-marketbusinesses and large corporations with a full range of banking, investing, asset management and other financial and riskmanagement products and services. The company provides unmatched convenience in the United States, serving approximately59 million consumers and small business relationships with more than 6,000 retail banking offices, more than 18,000 ATMs and
award-winning online banking with nearly 30 million active users. Bank of America is among the world's leading wealthmanagement companies and is a global leader in corporate and investment banking and trading across a broad range of assetclasses serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leadingsupport to more than four 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. Bank of America Corporation stock (NYSE: BAC) is a component of the
.
StrengthsAbility to leverage size and scale Our size, scale and global presence enable us to provide our customers and clients with a fullrange of the highest-quality, innovative products and services, delivered with convenience and efficiency.
Diverse, market-leading businesses Our businesses have leading market shares in every major sector of the industry, creatingthe opportunity to build broad, deep relationships and to generate strong, balanced earnings.
Integrated deli er ntegrated delivery v v u u .Service quality and customer/client satisfaction We have a culture of service excellence and the skills, technology andinfrastructure to back it up. We are continuously working to improve satisfaction, reduce errors and speed problem resolution.
Capital strength Our balance sheet strength and ample liquidity give us the financial flexibility to support our customers andclients even during challenging economic times.
Talent and leadership We are attracting and retaining associates who can lead in a global organization, and we are building onour leading staffing, training and leadership development programs.
C iommunity support e re wor ng to strengt en t e many commun t es we serve t roug commun ty eve opment an ng($1.5 trillion over ten years), philanthropy ($2 billion over ten years), volunteerism (800,000 hours in 2009) and environmentallending and investments ($20 billion over ten years).
OpportunitiesFocus on execution With the headwinds of the past two years behind us, we are focusing all our energy and resources onexecuting our business plans to serve customers and clients, improving quality, accuracy and efficiency and lowering costs.
Our Goals
Expanding relationships Our greatest growth opportunity is with our existing customer and client base, in broadening anddeepening relationships by offering a full suite of financial products, services and solutions.
Investing for growth We are investing in technology and innovation to improve productivity and better meet associate, customer,client and shareholder needs.
Completing transitions We are completing merger transitions that will enable us to function effectively as an integrated team.
For Customers and Clients: To increase satisfaction and loyalty by providing the best value and service.Deliver high-quality financial products and services.Be a trusted adviser for financial solutions.
Deepen relationships and earn loyalty.
For Associates: To create a workplace in which all associates can excel and rewards are based on results.Attract and retain a world-class work force.
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Enable associates to grow and succeed while balancing work, family and health.
For Shareholders: To produce strong and consistent financial returns by attracting and retaining customers and clients, and bydeepening relationships in all our businesses.
For Communities : To strengthen the communities we serve through community development banking, philanthropy, volunteerismand environmental initiatives.
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Bank of America Leadership
B i T M ihrian T. MoynihanPresident and Chief Executive Officer, Bank of America Corporation
Catherine P. BessantGlobal Technology and Operations Executive, Bank of America Corporation
Neil A. CottyInterim Chief Financial Officer and Chief Accounting Officer, Bank of America Corporation
David C. DarnellPresident, Global Commercial Banking, Bank of America Corporation
Barbara J. DesoerPresident, Bank of America Home Loans and Insurance, Bank of America Corporation
Anne M. FinucaneGlobal Chief Strategy and Marketing Officer, Bank of America Corporation
Edward P. OKeefeGeneral Counsel, Bank of America Corporation
Sallie L. KrawcheckPresident, Global Wealth and Investment Management, Bank of America Corporation
Thomas K. MontagPresident, Global Banking and Markets, Bank of America Corporation
Joe L. PricePresident; Consumer, Small Business and Card Banking, Bank of America Corporation
Andrea B. SmithGlobal Human Resources Executive, Bank of America CorporationBruce R Thompsonruce R. ThompsonChief Risk Officer, Bank of America Corporation
Bank of America Leadership as of February 26, 2010
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Bank of America Board of Directors
DirectorsWalter E. Massey, (70)Chairman of the Board, Bank of America Corporation
Susan S. Bies, (62)Former Member, Board of Governors of the Federal Reserve System
William P. Boardman, (68)Retired Vice Chairman, Bank One Corporation and Retired Chairman of the Board, Visa International
Frank P. Bramble, Sr., (61)Former Executive Officer, MBNA Corporation
Virgis W. Colbert, (70)Senior Advisor, MillerCoors Company
Charles K. Gifford, (67)Former Chairman, Bank of America Corporation
Charles O. Holliday, Jr., (62)Retired Chairman, E.I. du Pont de Nemours and Company (DuPont)
D. Paul Jones, Jr., (67)Former Chairman, Chief Executive Officer and President, Compass Bancshares, Inc.
Monica C. Lozano, (53)Publisher and Chief Executive Officer, La Opinion
Thomas J. May, (62)Chairman, President and Chief Executive Officer, NSTAR
Brian T. Moynihan, (50)Chief Executive Officer and President, Bank of America Corporation
Donald E. Powell, (68))Former Chairman, Federal Deposit Insurance Corporation (FDIC)
Charles O. Rossotti, (69)Senior Advisor, The Carlyle Group
Thomas M. Ryan, (56)Chairman, President and Chief Executive Officer, CVS/Caremark Corporation
Robert W. Scully, (60), ( )Former Member of the Office of the Chairman, Morgan Stanley
Bank of America Board of Directors as of February 26, 2010
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Industry Rankings
TOP 10 U.S. BANKING COs.(2009 NET INCOME)$ in Millions
1. Goldman Sachs ($13,385)
2. Wells Fargo ($12,275)
TOP 10 U.S. BANKING COs.(IN EQUITY @ 12/31/09)$ in Millions
1. Bank of America ($231,444)2. JPMor an Chase 165 365
3. JPMorgan Chase ($11,728)
4. Bank of America ($6,276)5. PNC ($2,403)
6. U.S. Bancorp ($2,237)
7. Morgan Stanley ($1,406)
8. Ca ital One 884
. ,
3. Citigroup ($154,973)
4. Wells Fargo ($114,359)
5. Goldman Sachs ($70,714)
6. Morgan Stanley ($46,688)
7. PNC ($32,567)
9. BB&T ($877)
10. M&T Bank ($380)
. ,9. U.S. Bancorp ($26,661)
10. Capital One ($26,589)
TOP 10 U.S. BANKING COs.(IN ASSETS @ 12/31/09)$ in Billions1. Bank of America ($2,223)
TOP 10 U.S. BANKING COs.(IN MARKET CAP @ 12/31/09)$ in Billions1. JP Morgan Chase ($164)
. ,
3. Citigroup ($1,856)
4. Wells Fargo ($1,244)
5. Goldman Sachs ($849)
6. Morgan Stanley ($773)
7. U.S. Bancorp ($281)
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3. Bank of America ($150) (1)4. Citigroup ($94)
5. Goldman Sachs ($87)
6. U.S. Bancorp ($43)
7. Morgan Stanley ($40)
.
9. Bank of NY Mellon ($212)
10. SunTrust ($174)
. an o e on
9. PNC ($24)
10. State Street ($22)
5(1) Bank of America market capitalization includes 1,286 million Common Equivalent Shares that were converted to common stock on February 24, 2010
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Bank of America Today December 31, 2009
n m ons, except an mar et pr ce
December 31, 2009
Assets $2,223,299
Loans & leases 900,128
Domestic deposits 910,404
Foreign deposits 81,207
Shareholders' equity 231,444
Market capitalization (1) 149,640
Market price 15.06
Common outstanding shares (in thousands) 8,650,244
Twelve Months EndedDecember 31, 2009
Revenue, net of interest expense $119,643
Net income (loss) 6,276
Net income (loss), applicable to common shareholders (2,204)
Diluted EPS (0.29)
Employees 283,717
Banking centers (Domestic) 6,011
ATMs (Domestic) 18,262
(1) Market capitalization includes 1,286 million Common Equivalent Shares that were converted to common stock on February 24, 2010
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U.S. Deposit Market ShareU.S. Deposit Market Share
#1 (22%)WA
#1 (20%) ME#3
NH#3 (17%)
OR#4 (12%)
OR#2 (15%) ID
#5 (5%)
NVIA
#4 (3%) IL
NY#4 (6%)PA
#12 (2%)CT
#1 (21%)
RI#2 (22%)
MA#1 (23%)
#3(9%)
MI#2(14%)
CA#2 (21%)
CA#1 (25%)
#3 (6%)
AZ#3 (20%) NM#2 (16%)
KS#2 (6%)
OK#5 (5%)
MO#2 (9%)
AR#3 (6%)
#2(10%)
TN #4 (6%)GA
SC #2(11%)
NC #2 (28%)
VA#4 (12%) MD#1 (19%)DC
#1(22%)
NJ #1 (21%)
( )TX
#2 (16%)
#3(11%)
FL#1(18%)
#2#1
#3#4+
7Source: SNL Branch Data Source. U.S. Deposit Market Share (retail domestic deposits) based on June 2009 deposit data, adjusted for completed
transactions as of January 11, 2010.
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Banking Center Network
Washington
Total U.S. Banking Centers: 6,011Maineew Hampshire34
Nevada
IdahoOregon
237
8721
14Iowa Connecticut167
Massachusetts292
384
New Jerse
New YorkPennsylvania109
RhodeIsland45Michigan
251 377
TennesseeCalifornia
VirginiaMissouri
District of Columb
IllinoisMarylandansas
North CarolinaSouth CarolinarkansasklahomaNew Mexicorizona
88
978
176 49 42
60
44
212
84118
200192
32
201130
Kentucky2
New Jerse369Delaware2Indiana6
FloridaTexas
Georgia
483220
651
1-5051-7576-150151-200201-300>301
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ATM Network
Total U.S. (Branded Only) ATMs: 18,262700
Washington MaineNew Hampshire80
Nevada
70
1,041203
583
14
2133
1,301179
650
New York
Massachuse
New JersePennsylvania
OhioI di
Michiganisconsin
Iowa
MinnesotaIdaho
OregonMontana
2
4Wyoming4
South DakotaConnecticut348
Rhode Isla105
Nebraska3300Nevada
505North Carolina
1346
10261
71
694110162
72158
4,0203
637
68331
589103
476
317
294Virginia
South Carolina
MissouriDistrict of Columb
DelawareMaryland
Indiana
Kentucky
Tennessee
Georgia
IllinoisKansas
OklahomaNew Mexico
ColoradoUtah
Arizona
California3
Arkansas
West Virginia1
1,442
674831,906
Georgia
Florida
AlabamaLouisianaexas
1-5051-100101-300301-500501-1000>1001
9Note that there is one branded ATM in Alaska
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Financial Overview
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Financial Highlights
(Dollars in millions, except per share information; shares in thousands)
Fourth Third Second First FourthQuarter Quarter Quarter Quarter Quarter
2009 2008 2009 (1) 2009 (1) 2009 2009 2008 (1)Income statement
Net interest income $47,109 $45,360 $11,559 $11,423 $11,630 $12,497 $13,106Noninterest income 72,534 27,422 13,517 14,612 21,144 23,261 2,574Total revenue, net of interest expense 119,643 72,782 25,076 26,035 32,774 35,758 15,680Provision for credit losses 48,570 26,825 10,110 11,705 13,375 13,380 8,535Noninterest expense, before merger and
Year EndedDecember 31
restructuring charges 63,992 40,594 15,852 15,712 16,191 16,237 10,641Merger and restructuring charges 2,721 935 533 594 829 765 306Income tax expense (benefit) (1,916) 420 (1,225) (975) (845) 1,129 (2,013)Net income (loss) 6,276 4,008 (194) (1,001) 3,224 4,247 (1,789)Preferred stock dividends and accretion (2) 8,480 1,452 5,002 1,240 805 1,433 603Net income (loss) applicable to common shareholders (2,204) 2,556 (5,196) (2,241) 2,419 2,814 (2,392)Diluted earnings (loss) per common share (0.29) 0.54 (0.60) (0.26) 0.33 0.44 (0.48)Average diluted common shares issued
and outstanding 7,728,570 4,596,428 8,634,565 8,633,834 7,269,518 6,431,027 4,957,049Dividends paid per common share $0.04 $2.24 $0.01 $0.01 $0.01 $0.01 $0.32
Performance ratiosReturn on average assets 0.26 % 0.22 % n/m % n/m % 0.53 % 0.68 % n/m %Return on average common shareholders' equity n/ m 1.80 n/ m n/m 5.59 7.10 n/mReturn on average tangible common shareholders' equi ty (4) n/ m 4.72 n/ m n/m 12.68 16.15 n/mReturn on average tangible shareholders' equity (4) 4.18 5.19 n/ m n/m 8.86 12.42 n/m
At period endBook value per share of common stock (3) $21.48 $27.77 $21.48 $22.99 $22.71 $25.98 $27.77
(4) 11 94 11 94an e oo va ue p er s are o common s oc 11.94 . 11.94 . . . .Market price per share of common stock:
Closing price $15.06 $14.08 $15.06 $16.92 $13.20 $6.82 $14.08High closing price for the period 18.59 45.03 18.59 17.98 14.17 14.33 38.13Low closing price for the period 3.14 11.25 14.58 11.84 7.05 3.14 11.25
Market capitalization 130,273 70,645 130,273 146,363 114,199 43,654 70,645Number of banking centers - domestic 6,011 6,139 6,011 6,008 6,109 6,145 6,139Number of branded ATMs - domestic 18,262 18,685 18,262 18,254 18,426 18,532 18,685Full-time equivalent employees 283,717 240,202 283,717 281,863 282,408 286,625 240,202
(1) Due to a net loss for the three months ended December 31, 2009, September 30, 2 009 and December 31, 20 08, the impact of antidilutive equity instruments were excluded from diluted earnings per common share and
average diluted common shares.
(2) Includes $4.0 billion of accelerated accretion from redemption of preferred stock issued to the U.S. Treasury in the fourth quarter of 200 9.
(3) Book value per share of common stock includes the impact of the conversion of common equivalent shares to common shares.
(4) Tangible equity ratios and tangible book value per share of common stock are non-GAAP measures.
n/m = not meaningful
Certain prior period amounts have been reclassified to conform to current period presentation.
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Supplemental Financial Data(Dollars in millions, shares in thousands)
F u l l y t a xa b le -eq u iv a len t b a s i s da t aF o u r t h Third Second First Fourth
Q u a r t e r Quarter Quarter Quarter Quarter2 0 0 9 2008 2 0 0 9 2009 2009 2009 2008
Net interest income $ 4 8 , 4 1 0 $46,554 $ 1 1 , 8 9 6 11,753$ 11,942$ $12,819 $13,406Total revenue, net of interest expense 1 2 0 , 9 4 4 73,976 2 5 , 4 1 3 26,365 33,086 36,080 15,980Net interest yield 2 . 6 5 % 2.98 % 2 . 6 2 % 2.61 % 2.64 % 2.70 % 3.31 %Efficiency ratio 5 5 . 1 6 56.14 6 4 . 4 7 61.84 51.44 47.12 68.51
Y ea r En d edD e c e m b e r 3 1
R ec onc i l i a t ion t o GA A P f ina nc ia l mea sur esThe Corporation evaluates its business based upon ratios that utilize tangible equity which is a non-GAAP measure. Return on average tangible shareholders' equity measures the Corporation's earningscontribution as a percentage of shareholders equity reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangiblecommon shareholders' equity measures the Corporation's earning contribution available to common shareholders as a percentage of common shareholders' equity plus Common Equivalent Securitiesreduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. The tangible equity ratio represents shareholders' equity less goodwill and intangibleassets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred taxliabilities. The tangible common equity ratio represents common shareholders' equity plus Common Equivalent Securit ies less goodwill and intangible assets (excluding mortgage servicing rights), netof related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related def erred tax liabilities. Tangible book value per share ofcommon stock represents ending common shareholders' equity plus Common Equivalent Securities less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilitiesdivided by ending common shares outstanding plus the number of common shares issued upon conversion of Common Equivalent Securities. These measures are used to evaluate the Corporation's useof equity (i.e., capital). In addition, profitability, relationship, and investment models all use return on average tangible shareholders' equity as key measures to support our overall growth goals. Also,he efficiency ratio measuresthe costs expended to generate a dollar of revenue. We believe the use of these non-GAAPmeasures provides additional clarity inassessingthe results of theCorporation.
Other companies may define or calculate supplemental financial data differently. See the tables below for supplemental financial data and corresponding reconciliations to GAAP financialmeasures for the three months ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, and the years ended December 31, 2009 and 2008.
R ec onc i l i a t ion o f a v er a g e sha r eho lder s ' eq u i t y t o a v er a g e t a ng ib le sha r eho lder s ' eq u i t yShareholders' equity $ 2 4 4 , 6 4 5 $164,831 $ 2 5 0 , 5 9 9 $255,983 $242,867 $228,766 $176,566Goodwill (8 6 , 0 3 4 ) (79,827) (8 6 , 0 5 3 ) (86,170) (87,314) (84,584) (81,841)Intangible assets (excluding MSRs) (1 2 , 2 2 0 ) (9,502) (1 2 , 5 5 6 ) (13,223) (13,595) (9,461) (8,818)Related deferred tax liabilities 3 , 8 3 1 1 782 3 , 7 1 2 3 725 3 916 3 977 1 913 3 , 8 3 1 , 3 , 7 1 2 , , , ,
T a n g i b le s h a r eh o l d e r s ' eq u i t y $ 1 5 0 , 2 2 2 $77,284 $ 1 5 5 , 7 0 2 $160,315 $145,874 $138,698 $87,820R ec onc i l i a t ion o f a v er a g e c ommon sha r eho lder s ' eq u i t y t o a v er a g e t a ng ib le c omm on sha r eho lder s ' eq u i t yCommon shareholders' equity $ 1 8 2 , 2 8 8 $141,638 $ 1 9 7 , 1 2 3 $197,230 $173,497 $160,739 $142,535Common Equivalent Securities 1 , 2 1 3 - 4 , 8 1 1 - - - -Goodwill (8 6 , 0 3 4 ) (79,827) (8 6 , 0 5 3 ) (86,170) (87,314) (84,584) (81,841)Intangible assets (excluding MSRs) (1 2 , 2 2 0 ) (9,502) (1 2 , 5 5 6 ) (13,223) (13,595) (9,461) (8,818)Related deferred tax liabilities 3 , 8 3 1 1,782 3 , 7 1 2 3,725 3,916 3,977 1,913
T a n g i b le c om m on s h a r eh o l d e r s ' eq u i t y $ 8 9 , 0 7 8 $54,091 $ 1 0 7 , 0 3 7 $101,562 $76,504 $70,671 $53,789R e c o nc il ia t io n o f p e ri o d e n d s h a re h o ld e rs ' e q u it y t o p e ri od e n d t a ng ib le s h a re h o ld e rs ' e q u it yec onc i l i at i on o f p e r iod end sha r eho lder s eq u i t y t o p e r iod end t a ng ib le sha r eho lder s eq u i t yShareholders' equity $ 2 3 1 , 4 4 4 $177,052 $ 2 3 1 , 4 4 4 $257,683 $255,152 $239,549 $177,052Goodwill (8 6 , 3 1 4 ) (81,934) (8 6 , 3 1 4 ) (86,009) (86,246) (86,910) (81,934)Intangible assets (excluding MSRs) (1 2 , 0 2 6 ) (8,535) (1 2 , 0 2 6 ) (12,715) (13,245) (13,703) (8,535)Related deferred tax liabilities 3 , 4 9 8 1,854 3 , 4 9 8 3,714 3,843 3,958 1,854
T a n g i b le s h a r eh o l d e r s ' eq u i t y $ 1 3 6 , 6 0 2 $88,437 $ 1 3 6 , 6 0 2 $162,673 $159,504 $142,894 $88,437R ec onc i l i a t ion o f p e r iod end c ommon sha r eho lder s ' eq u i ty t o p e r iod end t a ng ib le c ommon sha r eho lder s ' eq u i tyCommon shareholders' equity $ 1 9 4 , 2 3 6 $139,351 $ 1 9 4 , 2 3 6 $198,843 $196,492 $166,272 $139,351Common Equivalent Securities 1 9 , 2 4 4 - 1 9 , 2 4 4 - - - -Goodwill (8 6 , 3 1 4 ) (81 934) (8 6 , 3 1 4 ) (86009) (86246) (86 910) (81934), ) ( , )Intangible assets (excluding MSRs) (1 2 , 0 2 6 ) (8,535) (1 2 , 0 2 6 ) (12,715) (13,245) (13,703) (8,535)Related deferred tax liabilities 3 , 4 9 8 1,854 3 , 4 9 8 3,714 3,843 3,958 1,854
T a n g i b le c om m on s h a r eh o l d e r s ' eq u i t y $ 1 1 8 , 6 3 8 $50,736 $ 1 1 8 , 6 3 8 $103,833 $100,844 $69,617 $50,736R ec onc i l i a t ion o f p e r iod end a sse t s t o p er iod end t a ng ib le a sse t sAssets $ 2 , 2 2 3 , 2 9 9 $1,817,943 $ 2 , 2 2 3 , 2 9 9 $2,251,043 $2,254,394 $2,321,963 $1,817,943Goodwill (8 6 , 3 1 4 ) (81,934) (8 6 , 3 1 4 ) (86,009) (86,246) (86,910) (81,934)Intangible assets (excluding MSRs) (1 2 , 0 2 6 ) (8,535) (1 2 , 0 2 6 ) (12,715) (13,245) (13,703) (8,535)Related deferred tax liabilities 3 , 4 9 8 1,854 3 , 4 9 8 3,714 3,843 3,958 1,854
Ta n g ib le a s s e t s $ 2 , 1 2 8 ,4 5 7 $1,729,328 $ 2 , 1 2 8 , 4 5 7 $2,156,033 $2,158,746 $2,225,308 $1,729,328
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R ec onc i l i a t ion o f end ing c omm on sha r es ou t s t a nd ing t o end ing t a ng ib le c ommon sha r es ou t s t a nd ingCommon shares outstanding 8 , 6 5 0 , 2 4 4 5,017,436 8 , 6 5 0 , 2 4 4 8,650,314 8,651,459 6,400,950 5,017,436Conversion of common equivalent shares 1 , 2 8 6 , 0 0 0 - 1 , 2 8 6 , 0 0 0 - - - -
Ta n g ib le c o m m o n s h a re s o u t s t a n din g 9 , 9 3 6 ,2 4 4 5,017,436 9 , 9 3 6 , 2 4 4 8,650,314 8,651,459 6,400,950 5,017,436
Certain prior period amounts have been reclassified to conform to current period presentation.
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Income Statement
(Dollars in millions, except per share information; shares in thousands) F o u r t h Third Second First FourthQu ar te r Quarter Quarter Quarter Quarter2 0 0 9 2008 2 0 0 9 (1 ) 2009 (1) 2009 2009 2008 (1)
I n te re st i n c o meInterest and fees on loans and leases $ 4 8 , 7 0 3 $56,017 $ 1 1 , 4 0 5 $11,620 $12,329 $13,349 $14,220Interest on debt securities 1 2 , 9 4 7 13,146 2 , 8 5 9 2,975 3,283 3,830 3,851Federal funds sold and securities borrowed or purchased under
agreements to resell 2 , 8 9 4 3,313 3 2 7 722 690 1,155 393Trading account assets 7 , 9 4 4 9,057 1 , 7 2 1 1,843 1,952 2,428 2,120Other interest income 5 , 4 2 8 4,151 1 , 3 3 3 1,363 1,338 1,394 1,018
7 7 9 1 6 1 7 6 4 5
Y e a r E n d e dD e c e m b e r 3 1
Total interest income 7 7 , 9 1 6 85,684 1 7 , 6 4 5 18,523 19,592 22,156 21,602I n t e r e s t e x p e n s e
Deposits 7 , 8 0 7 15,250 1 , 4 7 2 1,710 2,082 2,543 3,296Short-term borrowings 5 , 5 1 2 12,362 6 5 8 1,237 1,396 2,221 1,910Trading account liabilities 2 , 0 7 5 2,774 5 9 1 455 450 579 524Long-term debt 1 5 , 4 1 3 9,938 3 , 3 6 5 3,698 4,034 4,316 2,766
Total interest expense 3 0 , 8 0 7 40,324 6 , 0 8 6 7,100 7,962 9,659 8,496N e t in t e re st in c o m e 4 7 , 1 0 9 45,360 1 1 , 5 5 9 11,423 11,630 12,497 13,106
No n in te re st i n c o meCard income 8 , 3 5 3 13,314 1 , 7 8 2 1,557 2,149 2,865 3,102Service charges 1 1 , 0 3 8 10,316 2 , 7 5 6 3,020 2,729 2,533 2,559
1 1 9 1 9 3 0 1 4Investment and brokerage services 1 1 , 9 1 9 4,972 3 , 0 1 4 2,948 2,994 2,963 1,072Investment banking income 5 , 5 5 1 2,263 1 , 5 9 6 1,254 1,646 1,055 618Equity investment income (loss) 1 0 , 0 1 4 539 2 , 0 2 6 843 5,943 1,202 (791)Trading account profits (losses) 1 2 , 2 3 5 (5,911) 1 , 4 7 5 3,395 2,164 5,201 (4,101)Mortgage banking income 8 , 7 9 1 4,087 1 , 6 5 2 1,298 2,527 3,314 1,523Insurance income 2 , 7 6 0 1,833 7 0 3 707 662 688 741Gains on sales of debt securities 4 , 7 2 3 1,124 1 , 0 3 9 1,554 632 1,498 762Other income (loss) ( 14) (1,654) ( 1 , 8 8 4 ) (1,167) 724 2,313 (1,448)Other-than-temporary impairment losses on AFS debt securities:
Total other-than-temporary impairment losses ( 3 , 5 0 8 ) (3,461) ( 8 3 7 ) (847) (1,110) (714) (1,463)Less: Portion of other-than-temporary impairment losses
recognized in OCI 6 7 2 - 1 9 5 50 84 343 -(2 8 3 6 ) (6 4 2 )Net impairment losses recognized in earnings on AFS debt securities ( 2 , 8 3 6 ) (3,461) ( 6 4 2 ) (797) (1,026) (371) (1,463)
Total noninterest income 7 2 , 5 3 4 27,422 1 3 , 5 1 7 14,612 21,144 23,261 2,574To ta l re v e n u e , n e t o f in te re s t e xp e n s e 1 1 9 , 6 4 3 72,782 2 5 , 0 7 6 26,035 32,774 35,758 15,680
Pro v i s io n f o r c re d i t l o sse s 48 , 5 70 26,825 1 0 , 1 1 0 11,705 13,375 13,380 8,535No n in te re st e x pe n se
Personnel 3 1 , 5 2 8 18,371 7 , 3 5 7 7,613 7,790 8,768 4,027Occupancy 4 , 9 0 6 3,626 1 , 3 3 9 1,220 1,219 1,128 1,003Equipment 2 , 4 5 5 1,655 6 0 0 617 616 622 447Marketing 1 , 9 3 3 2,368 4 4 3 470 499 521 555Professional fees 2 , 2 8 1 1,592 7 7 0 562 544 405 521
1 9 7 8 4 3 2Amortization of intangibles 1 , 9 7 8 1,834 4 3 2 510 516 520 477Data processing 2 , 5 0 0 2,546 6 3 9 592 621 648 641Telecommunications 1 , 4 2 0 1,106 3 8 7 361 345 327 292Other general operating 1 4 , 9 9 1 7,496 3 , 8 8 5 3,767 4,041 3,298 2,678Merger and restructuring charges 2 , 7 2 1 935 5 3 3 594 829 765 306
Total noninterest expense 6 6 , 7 1 3 41,529 1 6 , 3 8 5 16,306 17,020 17,002 10,947I nc o m e (lo s s ) b e f o re in co m e t a xe s 4 , 3 6 0 4,428 ( 1 , 4 1 9 ) (1,976) 2,379 5,376 (3,802)
I n c o m e t a x e xp e n s e (b e n e f it ) (1 , 9 1 6 ) 420 ( 1 , 2 2 5 ) (975) (845) 1,129 (2,013)N e t in c o m e (lo s s ) $ 6 , 2 7 6 $4,008 $ ( 1 9 4 ) $(1,001) $3,224 $4,247 $(1,789)Pre f e r re d s to c k d i v ide n ds an d ac c re t io n (2 ) 8 , 4 8 0 1,452 5 , 0 0 2 1,240 805 1,433 603Ne t in c o me ( l o ss ) app l i c ab le to c o mmo n sh are h o lde rs $ ( 2 , 204 ) $2,556 $ ( 5 , 1 9 6 ) $(2,241) $2,419 $2,814 $(2,392)
Pe r c o mmo n sh are in f o rmat io n
Earnings (loss) $ ( 0 . 2 9 ) $0.54 $ ( 0 . 6 0 ) $(0.26) $0.33 $0.44 $(0.48)Diluted earnings (loss) ( 0 . 2 9 ) 0.54 ( 0 . 6 0 ) (0.26) 0.33 0.44 (0.48)Dividends paid 0 . 0 4 2.24 0 . 0 1 0.01 0.01 0.01 0.32
A v e r a g e c o m m o n s h a r e s i s s u e d a n d o u t s t a n d in g 7 , 7 2 8 , 5 7 0 4,592,085 8 , 6 3 4 , 5 6 5 8,633,834 7,241,515 6,370,815 4,957,049A v e r a g e d i lu t e d c o m m o n s h a r e s i s s u e d a n d o u t s t a n d in g 7 , 7 2 8 , 5 7 0 4,596,428 8 , 6 3 4 , 5 6 5 8,633,834 7,269,518 6,431,027 4,957,049
(1) Due to a net loss for the three months ended December 31, 2009, September 30, 200 9 and December 31, 2008, the impact of antidilutive equity instruments was excluded from diluted earnings per share and
average diluted common shares.
(2) Includes $4.0 billion of accelerated accretion from redem ption of preferred stock issued to the U.S. Treasury in the fourth quarter of 20 09.
13
Certain prior period amounts have been reclassified to conform to current period presentation.
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Balance Sheet Composition
Assets - 12/31/09$2.223 Trillion
Goodwill & Intangibles$98B4%
Other$315B14%
Assets - 12/31/09
Loans$900B
41%Cash
$121B6%
Debt Securit ies$311B14%
Market-Based Assets$477B21%
$2.223 TrillionEquity$231B10%
Liabilities & Equity - 12/31/09
Domestic Deposits$910B
41%
Other Liabilities$128B
6%
Long-Term Debt
$439B20%
14
Foreign Deposits$81B4%
Short-Term Borrowings$434B
19%
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Balance Sheet
(Dollars in millions)
D e c e m b e r 3 1 September 30 December 312 0 0 9 2009 2008
A s s e t sCash and cash equivalents $ 1 2 1 , 3 3 9 $152,412 $32,857Time deposits placed and other short-term investments 2 4 , 2 0 2 22,992 9,570Federal funds sold and securities borrowed or purchased under agreements to resell 1 8 9 , 9 3 3 187,761 82,478Trading account assets 1 8 2 , 2 0 6 204,838 134,315Derivative assets 8 0 , 6 8 9 94,855 62,252Debt securities:
Available-for-sale 3 0 1 , 6 0 1 247,200 276,904Held-to-maturity, at cost 9 , 8 4 0 9,545 685
Total debt securities 3 1 1 , 4 4 1 256,745 277,589Loans and leases 9 0 0 , 1 2 8 914,266 931,446Allowance for loan and lease losses ( 3 7 , 2 0 0 ) (35,832) (23,071)
Loans and leases, net of allowance 8 6 2 , 9 2 8 878,434 908,3751 0 0Premises and equipment, net 1 5 , 5 0 0 5, 7 ,
Mortgage servicing rights (includes $ 1 9 , 4 6 5 , $17,539 and $12,733 measured at fair value) 1 9 , 7 7 4 17,850 13,056Goodwill 8 6 , 3 1 4 86,009 81,934Intangible assets 1 2 , 0 2 6 12,715 8,535Loans held-for-sale 4 3 , 8 7 4 40,124 31,454Customer and other receivables 8 1 , 9 9 6 93,620 37,608Other assets 1 9 1 , 0 7 7 187,315 124,759
To t a l a s s e t s $ 2 , 2 2 3 ,2 9 9 $2,251,043 $1,817,943L iabi l i t iesDeposits in domestic offices:
Noninterest-bearing $ 2 6 9 , 6 1 5 $246,729 $213,994Interest-bearing 6 4 0 , 7 8 9 652,730 576,938
Deposits in foreign offices: Noninterest-bearing 5 , 4 8 9 4,889 4,004Interest-bearing 7 5 , 7 1 8 70,551 88,061
Total deposits 9 9 1 , 6 1 1 974,899 882,997Federal funds purchased and securities loaned or sold under agreements to repurchase 2 5 5 , 1 8 5 249,578 206,598Trading account liabilities 6 5 , 4 3 2 71,672 51,723Derivative liabilities 4 3 , 7 2 8 52,624 30,709Commercial paper and other short-term borrowings 6 9 , 5 2 4 62,280 158,056Accrued expenses and other liabilities (includes $ 1 , 4 8 7 , $1,567and $421 of reserve for
unfunded lending commitments) 1 2 7 , 8 5 4 126,019 42,516Long-term debt 4 3 8 , 5 2 1 456,288 268,292
To t a l lia b ilit ie s 1 , 9 9 1 ,8 5 5 1,993,360 1,640,891S h h ld ' ih a r e h o l d e r s ' e q u i t yPreferred stock, $0.01 par value; authorized - 1 0 0 , 0 0 0 , 0 0 0 shares; issued and
outstanding - 3 , 9 6 0 , 6 6 0 , 5,760,660 and 8,202,042 shares 3 7 , 2 0 8 58,840 37,701Common stock and additional paid-in capital, $0.01 par value; authorized - 1 0 , 0 0 0 , 0 0 0 , 0 0 0 shares;
issued and outstanding - 8 , 6 5 0 , 2 4 3 , 9 2 6 , 8,650,314,133and 5,017,435,592 shares 1 2 8 , 7 3 4 128,823 76,766Retained earnings 7 1 , 2 3 3 76,881 73,823Accumulated other comprehensive income (loss) ( 5 , 6 1 9 ) (6,705) (10,825)Other ( 1 1 2 ) (156) (413)
To t a l s h a re h o ld e r s ' e q u it y 2 3 1 4 4 4
15
To t a l s h a re h o ld e r s e q u it y 2 3 1 ,4 4 4 , ,To t a l lia b ilit ie s a n d s h a r e h o ld e rs ' e q u it y $ 2 , 2 2 3 , 2 9 9 $2,251,043 $1,817,943
Certain prior period amounts have been reclassified to conform to current period presentation.
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Net Income
N t I & N t I A il bl t C Sh h ld A l
$16,465
$21,133
$14,982
$16,447
$21,111
Net Income & Net Income Available to Common Shareholders - Annual$ in Millions
$7,517 $7,499
$9,553
$10,762
$13,947
$4,008
$6,276
$7,511$7,494
$9,548
$10,758
$13,931,
$2,556
$(2,204)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Net income (loss) Net income (loss) available to common shareholders(1)
Net Income and Net Income Available to Common Shareholders - Quarterly
$3,698
$268
$1,210
$3,410
$1,177
$4,247
$3,224$3,655
$215
$1,020
$3,224
$704
$2,814$2,419
$(1,789)
$(1,001)
$(2,392) $(2,241)
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
16
$(5,196)Net income (loss) Net income (loss) available to common shareholders(1)
(1) Net income available to common shareholders includes preferred dividends and related costs
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Earnings Per Share
D il t d E i P Sh A l
$3.55 $3.64
$4.04
$4.59
$3.30
D iluted Earnings Per Share - Annual
$2.26 $2.30
.
$0.54
$(0.29)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Diluted Earnings Per Share - Quarterly$0.82
$0.72
$0.44
$0.33
$0.05
.
$0.15
$(0.26)
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
17
$(0.48)
$(0.60)
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Dividend Per Share
Di id d P Sh A l
$1.70
$1.90
$2.12
$2.40$2.24
Dividends Per Share - Annual
$1.03$1.14
$1.22
$1.44
.
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Div idends Per Share - Quarterly
$0.64 $0.64 $0.64 $0.64 $0.64
$0.32
$0.01 $0.01 $0.01 $0.01
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
18Note:On 1/27/2010, the Board of Directors (the Board) declared a regular quarterly cash dividend on common stock of $0.01 per share, payable on 3/26/2010
to common stockholders of record on 3/5/2010.
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Return on Equity(1)
R t E it A l
15.96%15.42%
19.96%
21.50%
16.47% 16.51% 16.27%
Return on Equity - Annual
11.08%
1.80%
-1.21%2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Return on Equity - Quarterly
11.02%
2.90%
9.25%
1.97%
7.10%5.59%
0.60%
-6.68%
-4.51%
-10.46%
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
19(1)Annualized Return on Equity = (Net income available to common shareholders / Total average common shareholders equity)
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Return on Assets (1)
Return on Assets - Annual
1.46% 1.44%
1.34%1.30%
1.44%
Return on Assets Annual
1.12%1.16%
.
0.94%
0.22%0.26%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
0.93%
Return on Assets - Quarterly
0.78%
0.68%
0.53%
0.06%
.0.25%
-0.17%-0.03%
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
20
-0.37%
(1)Annualized Return on Assets = Net income / Total average assets
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Noninterest Income Annual
$ in Millions
$72,534
$38,182
$32,392
$14,607$16,338 $15,504
$18,270
$22,729$26,438 ,
$ i n M i l l i o n s
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9Service charges $4,543 $4,943 $5,276 $5,618 $6,989 $7,704 $8,224 $8,908 $10,316 $11,038
Card income 2,229 2,422 2,620 3,052 4,592 5,753 14,290 14,077 13,314 8,353
Mortgage banking 512 593 761 1,922 414 805 541 902 4,087 8,791
Investment & brokerage 1,929 2,112 2,237 2,371 3,614 4,184 4,456 5,147 4,972 11,919
Investment banking 1,512 1,579 1,545 1,736 1,886 1,856 2,317 2,345 2,263 5,551
Trading 1,923 1,842 778 408 869 1,763 3,358 (4,889) (5,911) 12,235
Gains (losses) on sales of debt securities 25 475 630 941 1,724 1,084 (443) 180 1,124 4,723
Other income 1,934 2,372 1,657 2,222 2,641 3,289 5,439 5,722 (2,743) 9,924
Total noninterest income $14,607 $16,338 $15,504 $18,270 $22,729 $26,438 $38,182 $32,392 $27,422 $72,534
% o f To t a l R e v e n u e 4 4 % 4 5 % 4 4 % 4 7 % 4 5 % 4 6 % 5 2 % 4 8 % 3 8 % 6 1 %
21
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Noninterest Income Quarterly
$ in Millions$23,261
$21,144
$9,789
$14,612
$13,517
$7,480
$3,639
$7,080$7,979
$2,574
$ in Mil l ions 2007 2008 2009
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QService charges $2,221 $2,415 $2,397 $2,638 $2,722 $2,559 $2,533 $2,729 $3,020 $2,756
Card income 3,595 3,591 3,639 3,451 3,122 3,102 2,865 2,149 1,557 1,782
Mortgage banking 155 386 451 439 1,674 1,523 3,314 2,527 1,298 1,652
Investment & brokerage 1,378 1,427 1,340 1,322 1,238 1,072 2,963 2,994 2,948 3,014
Investment banking 389 544 476 695 474 618 1,055 1,646 1,254 1,596
Trading (1,388) (5,380) (1,783) 357 (384) (4,101) 5,201 2,164 3,395 1,475
Gains (losses) on sales of debt securities 7 109 225 127 10 762 1,498 632 1,554 1,039
Other income 1 123 547 335 760 877 2 961 3 832 6 303 414 203, , , ,
Total noninterest income $7,480 $3,639 $7,080 $9,789 $7,979 $2,574 $23,261 $21,144 $14,612 $13,517
% of Total Revenue 46% 28% 41% 48% 41% 16% 65% 65% 56% 54%
22
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Noninterest Expense Annual
$ in Millions
23%
50 000
$60,000
$70,000
12%
3%
13%
$30,000
$40,000
,
49%
$0
$10,000
$20,000
Personnel Occupancy & Equipment Intangibles Amort. Mktg., Prof. , D.P. , & Te le . Other Expenses
$ in Mill ions2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Personnel $9,400 $9,829 $9,682 $10,446 $13,435 $15,054 $18,211 $18,753 $18,371 $31,528
Occupancy 1,682 1,774 1,780 2,006 2,379 2,588 2,826 3,038 3,626 4,906
Equipment 1,173 1,115 1,124 1,052 1,214 1,199 1,329 1,391 1,655 2,455
Total Occup. & Equip. 2,855 2,889 2,904 3,058 3,593 3,787 4,155 4,429 5,281 7,361
Intangibles Amort. 864 878 218 217 664 809 1,755 1,676 1,834 1,978
Marketing 621 682 753 985 1,349 1,255 2,336 2,356 2,368 1,933
Professional Fees 452 564 525 844 836 930 1,078 1,174 1,592 2,281
Data Processing 667 776 1,017 1,104 1,330 1,487 1,732 1,962 2,546 2,500
Telecommunications 527 484 481 571 730 827 945 1,013 1,106 1,420
Total Mktg., Prof., D.P., & Tele. 2,267 2,506 2,776 3,504 4,245 4,499 6,091 6,505 7,612 8,134
Other Operating Expense 2,697 3,302 2,856 2,930 4,457 4,120 5,909 5,751 7,496 14,991
Total Operating Expense $18,083 $19,404 $18,436 $20,155 $26,394 $28,269 $36,121 $37,114 $40,594 $63,992
Merger and restructuring charges $618 $412 $805 $410 $935 $2,721
Efficiency Ratio (1) 56.0% 57.4% 51.8% 51.1% 52.6% 49.4% 48.4% 54.7% 56.1% 55.2%
23
(1) Fully taxable equivalent
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Noninterest Expense Quarterly
$ in Millions
25%$14,000
$16,000
$18,000
12%
3%
14%
$6 000
$8,000
$10,000
$12,000
46%
$0
$2,000
$4,000
$ in Millions
Personnel Occupancy & Equipment Intangibles Amort. Mktg., Prof. , D.P., & Tele. Other Expenses
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QPersonnel $4,169 $4,822 $4,726 $4,420 $5,198 $4,027 $8,768 $7,790 $7,613 $7,357
Occupancy 754 827 849 848 926 1,003 1,128 1,219 1,220 1,339
Equipment 336 373 396 372 440 447 622 616 617 600
Total Occup. & Equip. 1,090 1,200 1,245 1,220 1,366 1,450 1,750 1,835 1,837 1,939
Intangibles Amort. 429 467 446 447 464 477 520 516 510 432
Marketing 552 712 637 571 605 555 521 499 470 443
2008007 2009
Professional Fees 258 404 285 362 424 521 405 544 562 770
Data Processing 463 590 563 587 755 641 648 621 592 639
Telecommunications 255 263 260 266 288 292 327 345 361 387Total Mktg., Prof. D.P., & Tele. 1,528 1,969 1,745 1,786 2,072 2,009 1,901 2,009 1,985 2,239
Other Operating Expense 1,314 1,811 931 1,574 2,313 2,678 3,298 4,041 3,767 3,885
Total Operating Expense $8,530 $10,269 $9,093 $9,447 $11,413 $10,641 $16,237 $16,191 $15,712 $15,852
Merger and restructuring charges $84 $140 $170 $212 $247 $306 $765 $829 $594 $533
Efficiency Ratio (1) 52.9% 77.4% 53.3% 46.6% 58.6% 68.5% 47.1% 51.4% 61.8% 64.5%
24
(1) Fully taxable equivalent
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Rate Environment
4.00%
4.50%
Yearly Average Rates
Yield Curves as of 12/31/2009
2.00%
2.50%
3.00%
3.50%
0.00%
0.50%
1.00%
1.50%
1ML 3ML 6ML 1Y Libor 2Y Swap 3Y Swap 5Y Swap 10Y Swap
2009 2008
Pa th of Federal Funds Rate 3M Libor vs FFMonthly Average R ates
1.50%
2.00%
2.50%
3.00%
3.50%
3.00%
4.00%
5.00%
6.00%
0.00%
0.50%
1.00%
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
0.00%
1.00%
2.00%
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
25
Fed Funds 3M Libor Spread
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Net Interest Income and Net Interest Yields Annual
$ in Millions
3.68% 3.75%3.96% 3.96%
3.75% 3.80%
3.42% 3.46%
$46,554 $48,410
3.20% 3.26% 3.17%
2.84% 2.82%2.60%
2.98%
2.65%
3.14%
$18,671 $20,633$21,511 $21,149
$28,677$31,569
$35,815 $36,190
Balance Sheet Ratios
Net interest income (FTE) Net interest yield Net interest yield (excl. trading)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Liquidity RatiosLoans & Leases/Domestic deposits 111% 117% 101% 96% 95% 100% 111% 126% 125% 106%
Loans & Leases/Earning assets 67% 65% 59% 55% 52% 48% 51% 56% 58% 52%
Total securities/Earning assets 14% 11% 13% 11% 17% 20% 20% 13% 16% 15%
Market based assets/Earning assets 27% 27% 29% 29% 30% 23% 26%
In terest Ra tes and Y ie ldsnterest Rates and YieldsLoan & Lease yield 8.15% 7.50% 6.58% 6.04% 5.95% 6.50% 7.43% 7.25% 6.18% 5.17%
Securities yield 6.07% 6.23% 5.44% 4.44% 4.88% 5.03% 5.26% 5.37% 5.34% 4.88%
Market-based assets yield 1.30% 1.06% 0.61% 0.45% 0.66% 1.37% 1.27%Earning assets yield 7.45% 6.90% 5.71% 4.90% 4.82% 5.35% 6.29% 6.41% 5.56% 4.33%
Interest-bearing deposit rate 4.20% 3.35% 2.07% 1.59% 1.48% 2.08% 2.92% 3.33% 2.39% 1.07%
Interest-bearing liabilities rate 5.09% 3.94% 2.42% 2.01% 1.98% 2.97% 3.99% 4.33% 2.88% 1.77%
Net Interest Y ield 3.20% 3.68% 3.75% 3.26% 3.17% 2.84% 2.82% 2.60% 2.98% 2.65%Net interest yield (ex cl. trading) (1) 3.96% 3.93% 3.71% 3.80% 3.42% 3.46% 3.14%
26
(1) Excludes the impact of market-based amounts included in Global Markets
(2) Includes the impact of securitizations utilizing actual bond costs
Managed net interest yield (excl. trading)(1, 2)
3.99% 3.99% 3.75% 4.13% 3.82% 3.88% 3.69%
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Net Interest Income and Net Interest Yields Quarterly
$ in Millions
3.38%3.46% 3.40%
3.65%
$13,406
2.61% 2.61%2.73%
2.92% 2.93%
.
2.70% 2.64% 2.61% 2.62%
. .3.09% 3.13% 3.13%
3.21%
$8,992$9,815 $10,291
$10,937$11,920 , $11,942 $11,753 $11,896
Balance Sheet Ratios Based on Quarterly Average Balances
Net interest income (FTE) Net interest yield Net interest yield (excl. trading)
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QLiquidity RatiosLoans & Leases/Domestic deposits 130% 130% 129% 128% 124% 119% 114% 108% 102% 99%
Loans & Leases/Earning assets 57% 58% 58% 59% 58% 58% 52% 53% 52% 50%
Total securities/Earning assets 13% 14% 15% 16% 16% 17% 15% 14% 15% 15%
Market based assets/Earning assets 30% 27% 26% 24% 23% 19% 26% 26% 26% 27%
2007 2008 2009
Interest Rates and YieldsLoan & Lease yield 7.25% 7.21% 6.64% 6.04% 6.03% 6.06% 5.46% 5.15% 5.01% 5.05%
Securities yield 5.45% 5.40% 5.17% 5.04% 5.52% 5.57% 5.47% 5.26% 4.62% 4.18%Market-based assets yield 0.77% 0.79% 1.19% 1.27% 1.33% 1.87% 1.57% 1.28% 1.18% 1.06%
Earning assets yield 6.48% 6.39% 5.89% 5.44% 5.52% 5.40% 4.74% 4.40% 4.19% 3.96%
Interest-bearing deposit rate 3.39% 3.44% 3.04% 2.38% 2.31% 1.91% 1.40% 1.15% 0.93% 0.80%
Interest-bearing liabilities rate 4.43% 4.25% 3.55% 2.87% 2.86% 2.30% 2.11% 1.84% 1.70% 1.42%
Net Interest Y ield 2.61% 2.61% 2.73% 2.92% 2.93% 3.31% 2.70% 2.64% 2.61% 2.62%(1)
27
(1) Excludes the impact of market-based amounts included in Global Markets
(2) Includes the impact of securitizations utilizing actual bond costs
e n eres y e exc . ra ng . . . . . . . . . .
Managed net interest yield (excl. trading) (1, 2) 3.80% 3.66% 3.69% 3.90% 3.83% 4.05% 3.63% 3.71% 3.67% 3.74%
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Quarterly Average Balance Sheet and Yields Table*(Dollars in millions)
Interest Interest InterestA g I / Y i ld/
Fourth Quarter 2009 Third Quarter 2009 Fourth Quarter 2008Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/Balance Expense Rate Balance Expense Rate Balance Expense Rate
Earning assetsTime deposits placed and other short-term investments $28,566 $220 3.06 % $29,485 $133 1.79 % $10,511 $158 5.97 %Federal funds sold and securities borrowed or purchased
under agreements to resell 244,914 327 0.53 223,039 722 1.28 104,843 393 1.50Trading account assets 218,787 1,800 3.28 212,488 1,909 3.58 179,687 2,170 4.82Debt securities (1) 279,231 2,921 4.18 263,712 3,048 4.62 280,942 3,913 5.57Loans and leases (2):
Residential mortgage (3) 236,883 3,108 5.24 241,924 3,258 5.38 253,560 3,596 5.67Home e uit 150,704 1,613 4.26 153 269 1 614 4.19 151 943 1 954 5.12150,704 1,613 4.26 , , . , , .Discontinued real estate 15,152 174 4.58 16,570 219 5.30 21,324 459 8.60Credit card - domestic 49,213 1,336 10.77 49,751 1,349 10.76 64,906 1,784 10.94Credit card - foreign 21,680 605 11.08 21,189 562 10.52 17,211 521 12.05Direct/Indirect consumer (4) 98,938 1,361 5.46 100,012 1,439 5.71 83,331 1,714 8.18Other consumer (5) 3,177 50 6.33 3,331 60 7.02 3,544 70 7.83
Total consumer 575,747 8,247 5.70 586,046 8,501 5.77 595,819 10,098 6.76Commercial - domestic 207,050 2,090 4.01 216,332 2,132 3.91 226,095 2,890 5.09Commercial real estate (6) 71,352 595 3.31 74,276 600 3.20 64,586 706 4.35Commercial lease financing 21,769 273 5.04 22,068 178 3.22 22,069 242 4.40Commercial - foreign 29,995 287 3.78 31,533 297 3.74 32,994 373 4.49
330 166 3 245 3 90Total commercial 330,166 3,245 3.90 344,209 3,207 3.70 345,744 4,211 4.85Total loans and leases 905,913 11,492 5.05 930,255 11,708 5.01 941,563 14,309 6.06
Other earning assets 130,487 1,222 3.72 131,021 1,333 4.05 99,127 959 3.85Total earning assets (7 ) 1,807,898 17,982 3.96 1,790,000 18,853 4.19 1,616,673 21,902 5.40
Cash and cash equivalents 230,618 196,116 77,388Other assets, less allowance for loan and lease losses 383,015 404,559 254,793
Total assets $2,421,531 $2,390,675 $1,948,854Interest-bearing liabilitiesDomestic interest-bearing deposits:
Savings $33,749 $54 0.63 % $34,170 $49 0.57 % $31,561 $58 0.73 %NOW and money market deposit accounts 392,212 388 0.39 356,873 353 0.39 285,410 813 1.13Consumer CDs and IRAs 192,779 835 1.72 214,284 1,100 2.04 229,410 1,835 3.18Negotiable CDs, public funds and other time deposits 31,758 82 1.04 48,905 118 0.95 36,510 270 2.94
Total domestic interest-bearing deposits 650,498 1,359 0.83 654,232 1,620 0.98 582,891 2,976 2.03Foreign interest-bearing deposits:
Banks located in foreign countries 16,477 30 0.73 15,941 29 0.73 41,398 125 1.20Governments and official institutions 6,650 4 0.23 6,488 4 0.23 13,738 30 0.87Time, savings and other 54,469 79 0.57 53,013 57 0.42 48,836 165 1.34
Total foreign interest-bearing deposits 77,596 113 0.58 75,442 90 0.47 103,972 320 1.22Total interest-bearing deposits 728,094 1,472 0.80 729,674 1,710 0.93 686,863 3,296 1.91
Federal funds urchased and securities loaned or sold underagreements to repurchase and other short-term borrowings 450,538 658 0.58 411,063 1,237 1.19 459,743 1,910 1.65
Trading account liabilities 83,118 591 2.82 73,290 455 2.46 65,058 524 3.20Long-term debt 445,440 3,365 3.01 449,974 3,698 3.27 255,709 2,766 4.32
Total interest-bearing liabilities (7 ) 1,707,190 6,086 1.42 1,664,001 7,100 1.70 1,467,373 8,496 2.30Noninterest-bearing sources:
Noninterest-bearing deposits 267,066 259,621 205,278Other liabilities 196,676 211,070 99,637Shareholders' equity 250,599 255,983 176,566
Tot al liabilit ies and shareholders' equit y $2, 421, 531 $2,390,675 $1,948,854Net interest spread 2.54 % 2.49 % 3.10 %
- 0 08- 0.08 . .Net interest income/yield on earning assets $11,896 2.62 % $11,753 2.61 % $13,406 3.31 %
(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 y ield.
(2) Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis. Purchased impaired loans were w ritten down to
fair value upon acquisition and accrete interest income over the remaining life of the loan.
(3) Includes foreign residential mortgages of $550 million and $66 2 million for the fourth and third quarters of 2009.
(4) Includes foreign consumer loans of $8.6 b illion and $8.4 billion in t he fourth and third quarters of 2009, and $ 2.0 billion in the fourth quarter of 200 8.
(5) Includes consumer finance loans of $2.3 billion and $2.4 billion in the f ourth and third quarters of 2009, and $2.7 billion in the fourth quarter of 2008; and other foreign consumer loans of $689 million
and $700 million in the fourth and third quarters of 2009, and $654 million in the fourth quarter of 2008.
28*Fully taxable-equivalent basis
(6) Includes domestic commercial real estate loans of $68.2 billion and $70.7 billion in t he fourth and third quarters of 2009, and $6 3.6 billion in the fourth quarter of 200 8, and foreign commercial real estate
loans of $3.1 billion and $3.6 billion in the fourth and third quarters of 2009, and $964 million in the fourth quarter of 2008.
(7) Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets $248 million and $136 million in the fourth and third quarters
of 2009, and $41 m illion in the fourth quarter of 2008. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest expense on the underlying
liabilities $(1.1) billion and $(873) million in the fourth and third quarters of 2009, and $237 million in the fourth quarter of 2008.
Certain prior period amounts have been reclassified to conform to current period presentation.
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Loan Portfolio
Outs tand ing L oans and L ea ses(Dollars in millions)
D e c e m b e r 3 1 December 31 Increase2009 2008 (Decrease)
C o n s u m e rResidential mortgage
(1) $242,129 $248,063 $(5,934)Home equity 149,126 152,483 (3,357)Discontinued real estate
(2) 14,854 19,981 (5,127)Credit card - domestic 49,453 64,128 (14,675)Credit card - foreign 21,656 17,146 4,510Direct/Indirect consumer
(3) 97,236 83,436 13,800Other consumer
(4) 3,110 3,442 (332)T o ta l con su m er 57 7,5 64 588,679 (11,115)
C o m m e r c i a lCommercial - domestic
(5) 198,903 219,233 (20,330)Commercial real estate
(6) 69,447 64,701 4,746Commercial lease financing 22,199 22,400 (201)Commercial - foreign 27,079 31,020 (3,941)
Total commercial loans 317,628 337,354 (19,726)Commercial loans measured at fair value
(7) 4,936 5,413 (477)T o ta l com m erci a l 32 2 ,5 64 342,767 (20,203)T o ta l l oan s an d leases $9 00,1 28 $931,446 $(31,318)
nc u es ore gn res ent a mortgages o m on at ecem er , . e not ave any mater a ore gn res ent a mortgage oans pror to anuary , .
(2) Includes $13.4 billion and $18.2 billion of pay option loans, and $1.5 billion and $1.8 billion of subprime loans at December 31, 2009 and December 31, 2008 which were
obtained in connection with the acquisition of Countrywide. The Corporation no longer originates these products.
(3) Includes dealer financial services of $41.6 billion and $40.1 billion, consumer lending of $19.7 billion and $28.2 billion, foreign consumer loans of $7.8 billion and
$1.8 billion at December 31, 2009 and December 31, 2008. The 2009 amount inclu des securit ies-based lending margin loans of $12.9 billion.
(4) At December 31, 2009 and December 31, 2008, includes consumer finance loans of $2.3 billion and $2.6 billion, and other foreign consumer loans of $709 million
and $618 million.
- , , . . , , .
(6) Includes domestic commercial real estate loans of $66.5 billion and $63.7 billion, and foreign commercial real estate loans of $3.0 billion and $979 million at
December 31, 2009 and December 31, 2008.
(7) Certain commercial loans are measured under the fair value option and inc lude commercial - domestic loans of $3.0 billion and $3.5 billion, commercial - f oreign
loans of $1.9 billion and $1.7 billion, and commercial real estate loans of $90 million and $203 million at December 31, 2009 and December 31, 2008.
Certain prior period amounts have been reclassified to conform to current period presentation.
29
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Nonperforming Assets
$ in Millions
36%
6%
3.98%
2.50%
3.00%
3.50%
4.00%
$30,000
$40,000
58%
36%
5% 8% 4%6%
10%1.39%
1.49% 1.53%
0.81%
0.47%0.68%
1.96%
1.00%
1.50%
2.00%
$10,000
$20,000
31%14% 14% 21% 30% 49% 55%
58%
54%64%
78% 82%74% 60% 45% 41%
36%5% 10%6% 4%0.28% 0.26%
0.00%
.
$-
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Total consumer Total commercial
Foreclosed properties & Nonperforming securities Nonperforming assets/Total loans, leases, & foreclosed properties
$ in Millions 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Residential mortgage $551 $556 $612 $531 $554 $570 $660 $1,999 $7,057 $16,596
Home equity 32 80 66 43 66 117 291 1,340 2,637 3,804
Discontinued real estate 77 249
Direct/Indirect consumer 19 27 30 28 33 37 2 8 26 86
Other consumer 1,104 16 25 36 85 61 77 95 91 104Total consumer 1,706 679 733 638 738 785 1,030 3,442 9,888 20,839
Commercial - domestic (1) 2,777 3,123 2,781 1,388 855 581 584 852 2,040 4,925
Commercial - foreign 486 461 1,359 578 267 34 13 19 290 177
Commercial real estate 239 243 164 142 87 49 118 1,099 3,906 7,286
Commercial lease financing 127 266 62 42 33 56 115
Small business commercial - domestic 152 205 200
Total commercial 3,505 3,830 4,307 2,235 1,475 726 757 2,155 6,497 12,703
Total nonperforming loans and leases 5,211 4,509 5,040 2,873 2,213 1,511 1,787 5,597 16,385 33,542
Foreclosed properties 249 402 225 148 102 92 69 351 1,827 2,205
Nonperforming securities 140
Total nonperforming assets (2, 3, 4) $5,460 $4,911 $5,265 $3,021 $2,455 $1,603 $1,856 $5,948 $18,212 $35,747
Nonperforming assets/Total assets (5) 0.85% 0.79% 0.80% 0.42% 0.22% 0.12% 0.13% 0.35% 1.00% 1.61%
Nonperforming assets/Total loans, leases, & foreclosed properties (5) 1.39% 1.49% 1.53% 0.81% 0.47% 0.28% 0.26% 0.68% 1.96% 3.98%
Allowance for loan and lease losses $6,838 $6,875 $6,358 $6,163 $8,626 $8,045 $9,016 $11,588 $23,071 $37,200
Allowance for loan and lease losses/Total loans and leases outstanding(5)
1.74% 2.09% 1.85% 1.66% 1.65% 1.40% 1.28% 1.33% 2.49% 4.16%
Allowance for loan and lease losses/Total nonperforming loans and leases(5)
131% 153% 126% 215% 390% 532% 505% 207% 141% 111%
(1) Excludes small business commercial - domestic loans.
(2) Balances do not include loans accounted for as purchased impaired loans even though the customer may be contractually past due. Loans accounted for as purchased impaired loans
were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan.
(3) Balances do not include nonperforming loans held-for-sale of $7.3 billion, $6.2 billion, $5.9 billion, $5.0 billion and $4.1 billion at December 31, 2009, September 30, 2009, June 30,
2009, March 31, 2009 and December 31, 2008, respectively.
(4) Balances do not inc lude loans measured at fair value under the fair value option. At December 31, 2009 and September 30, 2009, there were $15 million and $24 mi llion
30
. , , , , ,
measured at fair value under the fair value option. At December 31, 2009 and September 30, 2009, there were $87 million and $111 million of loans past due 90
days or more and still accruing interest measured at fair value under the fair value option. At June 30, 2009, March 31, 2009 and December 31, 2008, there were no loans
past due 90 days or more and still accruing interest measured at fair value under the fair value option.
(5) Ratios do not include loans measured at fair value under the fair value option of $4.9 billion, $6.2 billion, $7.0 billion, $7.4 billion and $5.4 billion at December 31, 2009, September 30,
2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively.
Loans are classified as domestic or foreign based upon the domicile of the borrower.
Certain prior period amounts have been reclassifi ed to conform to current period presentation.
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Nonperforming Assets
$ in Millions
36%36%
7%
6%
6%6%
2.64%
3.31%
3.72%
3.98%
2.50%
3.00%
3.50%
4.00%
$30,000
$40,000
57%
57%58% 58%
37%40%
36%
36%
36%
37%
6%6%
6%
13%
10%
0.43%
0.68%
0.90%
1.13%
1.45%
1.96%
1.00%
1.50%
2.00%
$10,000
$20,000
60% 58%57% 54%
50%54%
34%36%6%
0.00%
.
$-
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
Total consumer Total commercial Foreclosed properties Nonperforming assets/Total loans, leases, & foreclosed properties
$ in Mill ions3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Residential mortgage $1,176 $1,999 $2,576 $3,269 $4,638 $7,057 $10,846 $13,615 $15,509 $16,596
Home equity 764 1,340 1,786 1,851 2,049 2,637 3,497 3,826 3,741 3,804
Discontinued real estate 33 77 129 181 207 249
Direct/Indirect consumer 6 8 6 11 13 26 29 57 92 86Other consumer 94 95 91 89 89 91 91 93 105 104
Total Consumer 2,040 3,442 4,459 5,220 6,822 9,888 14,592 17,772 19,654 20,839
Commercial - domestic (1) 638 852 980 1,079 1,566 2,040 3,022 4,204 4,719 4,925
2007 200900 8
-
Commercial real estate 352 1,099 1,627 2,616 3,090 3,906 5,662 6,651 6,943 7,286
Commercial lease financing 29 33 44 40 35 56 104 104 170 115
Small business commercial - domestic 105 152 169 153 183 205 224 200 167 200
Total commercial 1,140 2,155 2,874 3,936 4,922 6,497 9,312 11,409 12,260 12,703
Total nonperforming loans and leases 3,180 5,597 7,333 9,156 11,744 16,385 23,904 29,181 31,914 33,542
Foreclosed properties 192 351 494 593 1,832 1,827 1,728 1,801 1,911 2,205
Total nonperforming assets (2, 3, 4) $3,372 $5,948 $7,827 $9,749 $13,576 $18,212 $25,632 $30,982 $33,825 $35,747
Loans past due 90 days or mo re and still accruing(2, 4, 5, 6) $2,995 $3,736 $4,160 $4,548 $4,819 $5,414 $6,344 $6,403 $7,595 $16,845
Nonperforming assets/Total assets (7) 0.21% 0.35% 0.45% 0.57% 0.74% 1.00% 1.11% 1.38% 1.51% 1.61%
Nonperforming assets/Total loans, leases, & foreclosed properties (7) 0.43% 0.68% 0.90% 1.13% 1.45% 1.96% 2.64% 3.31% 3.72% 3.98%
Allowance for loan and lease losses $9,535 $11,588 $14,891 $17,130 $20,346 $23,071 $29,048 $33,785 $35,832 $37,200
Reserve for unfunded lending commitments 392 518 507 507 427 421 2,102 1,992 1,567 1,487
Total allowance for credit losses $9,927 $12,106 $15,398 $17,637 $20,773 $23,492 $31,150 $35,777 $37,399 $38,687
Allowance for loan and lease losses/Total loans and leases outstanding(7) 1.21% 1.33% 1.71% 1.98% 2.17% 2.49% 3.00% 3.61% 3.95% 4.16%Allowance for loan and lease losses/Total nonperforming loans and leases (7) 300% 207% 203% 187% 173% 141% 122% 116% 112% 111%
Reservable commercial utilized criticized exposure (8) $ 10 ,8 20 $ 17 ,1 76 $ 21 ,15 7 $2 5,9 98 $ 31,0 09 $ 36 ,9 37 $ 48,6 60 $ 57 ,1 80 $ 60 ,0 59 $5 8,6 87
Reservable commercial utilized criticized exposure/Commercial utilized exposure (8) 3.05% 4.46% 5.43% 6.23% 7.45% 8.90% 11.13% 13.53% 14.78% 14.94%
(1) Excludes small business commercial - domestic loans.
(2) Balances do not include loans accounted for as purchased impaired loans even though the customer may be contractually past due. Loans accounted for as purchased impaired loans were written down to fair value upon acquisition and
accrete interest income over the remaining life of the loan.
31
(3) Balances do not incl ude nonperforming loans held-for -sale of $7.3 bil lion, $6.2 billion, $5.9 billion, $5.0 billion and $4.1 billi on at 12/31/2009, 9/30/2009, 6/30/2009, 3/31/2009 and 12/31/2008, respectivel y.
(4) Balances do not include loans measured at fair value under the fair value option. At 12/31/2009 and 9/30/2009, there were $15 million and $24 million of nonperforming loans measured at fair value under fair value option. At 6/30/2009,
3/31/2009 and 12/31/2008, there were no nonperforming loans measured at fair value under the fair value option. At 12/31/2009 and 9/30/2009, there were $87 million and $111 million of loans past due 90 day s or more and still accruing
interest measured at fair value under the fair value option. At 6/30/2009, 3/31/2009 and 12/31/2008, there were no loans past due 90 days or more and still accruing interest measured at fair value under the fair value option.
(5) Balances do not incl ude loans hel d-for-sale pa st due 90 days or more and stil l accruing interest included in other assets of $6 mill ion, $6 mill ion, $0, $18 milli on and $31 milli on at 12/31/2009, 9/30/2009, 6/30/2009, 3/31/2009 and 12/31/2008.
(6) Includes purchase of $9.4 billi on of Government National Mo rtgage Association loans during the three months ended 12/31/2009.
(7) Ratios do not include loans measured at fair value under the fair value optio n of $4.9 billi on, $6.2 bill ion, $7.0 bill ion, $7.4 bill ion and $5.4 bil lion at 12/31/2009, 9/30/2009, 6/30/2009, 3/31/2009 and 12/31/2008, respectivel y.
(8) Criticized exposure and ratios exclude assets held-for-sale, exposure measured at fair value under the fair value option and other nonreservable exposure. Including assets held-for-sale, other nonreservable exposure and commercial loans
measured at fair value, the ratios would have been 16.44 percent, 15.85 percent, 14.93 percent, 12.63 percent and 9.45 percent at 12/31/2009, 9/30/2009, 6/30/2009, 3/31/2009 and 12/31/2008, respectivel y.
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.
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Net Charge-offs and Provision Expense
$ in Billions
$48.6
3.58%
$33.7
$26.8
1.16% 1.10%
1.79%
$2.4$4.2 $3.7 $3.1 $3.1 $4.6 $4.5
$6.5
$16.2
$2.5 $4.3 $3.7 $2.8 $2.8 $4.0$5.0
$8.4
0.61%
0.87%
0.66%
0.85%0.70%
0.84%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Net charge-offs Provision for credit losses Net charge-off ratio
$ i n M i l li o n s2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9
Residential mort a e 0.03% 0.03% 0.04% 0.03% 0.02% 0.02% 0.02% 0.02% 0.36% 1.74%
Yea r - to -Da te Ne t Cha rg e -o f f s /L o s s es a n d Net Cha rg e -o f f /L o s s R a t i o s ( 1 )
Home equity 0.10% 0.09% 0.11% 0.05% 0.04% 0.05% 0.07% 0.28% 2.59% 4.56%
Discontinued real estate 0.15% 0.58%
Credit card domestic 3.29% 4.04% 5.11% 5.37% 5.31% 6.76% 4.85% 5.29% 6.57% 12.50%
Credit card foreign 2.46% 3.06% 3.34% 6.30%
Consumer direct/indirect 0.78% 0.82% 0.69% 0.55% 0.55% 0.55% 1.14% 1.96% 3.77% 5.46%
Other consumer 1.09% 3.70% 2.42% 2.89% 2.51% 3.99% 2.97% 6.18% 10.46% 12.94%
Total consumer 0.54% 1.14% 0.91% 0.91% 0.93% 1.26% 1.01% 1.07% 2.21% 4.22%
Commercial - domestic (2) 0.87% 1.46% 1.34% 0.68% 0.15% 0.13% 0.22% 0.08% 0.26% 1.09%
ommerc a - ore n . . . . . - . - . . . .
Commercial real estate 0.05% 0.16% 0.18% 0.20% -0.01% 0.00% 0.01% 0.11% 1.41% 3.69%
Commercial lease financing 1.23% 0.05% 1.13% -0.14% 0.01% 0.27% 0.89%
Small business commercial domestic 5.13% 9.80% 15.68%
Total commercial 0.68% 1.19% 1.33% 0.81% 0.20% 0.16% 0.13% 0.40% 1.07% 2.47%
Total net charge-offs 0.61% 1.16% 1.10% 0.87% 0.66% 0.85% 0.70% 0.84% 1.79% 3.58%
Managed credit card loss ratio 4.66% 4.76% 5.28% 5.36% 5.63% 6.92% 3.90% 4.79% 6.18% 11.25%
32
(1) Net charge-off/loss ratios are calculated as held net charge-offs or managed net losses divided by average outstanding held or managed loans and
leases excluding loans measured at fair value under the fair value option during the period for each loan and lease category.
(2) Excludes small business commercial - domestic loans.
Loans are classified as domestic or f oreign based upon the domicile of the borrower.
Certain prior period amounts have been reclassifi ed to conform to cu rrent period presentation.
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Net Charge-offs
C N t Ch g Off (1) (2)$ in Billions
$4,000
$5,000
$6,000
Consumer Net Charge Offs ( 1) (2)
$2,000
$3,000
$-
,
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
Residential mortgage Home equity Consumer credit card Consumer direct/indirect Other consumer
$1,000
$1,200
Commercial Net Charge Offs
$600
$800
$-
$200
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
33
Commercial & Industrial Small business Commercial real estate
(1) Consumer credit card charge offs shown on a managed basis(2) Other consumer net charge offs include Other consumer net charge offs and Discontinued real estate net charge offs
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Net Charge-offs and Provision Expense
Quarter l y Net Charge-of fs/Losses and N et Charge-of f/Loss Rat ios (1 )(Dollars in millions)
Held Basis Amount Percent Amount Percent Amount Percent Amount Percent Amount PercentResidential mortgage $1,233 2.07 % $1,247 2.05 % $1,085 1.72 % $785 1.20 % $466 0.73 %Home equity 1,560 4.11 1,970 5.10 1,839 4.71 1,681 4.30 1,113 2.92
2009 2009 2009 2009 2008Quarter Quarter Quarter Quarter QuarterFourth Third Second First Fourth
Discontinued real estate 14 0.38 37 0.89 35 0.76 15 0.31 19 0.36Credit card - domestic 1,546 12.46 1,787 14.25 1,788 13.87 1,426 9.81 1,244 7.63Credit card - foreign 395 7.22 382 7.14 276 5.88 186 4.48 162 3.75Direct/Indirect consumer 1,288 5.17 1,451 5.76 1,475 5.90 1,249 5.03 1,054 5.03Other consumer 114 14.20 118 14.00 99 11.93 97 11.67 124 13.79
Total consumer 6,150 4.24 6,992 4.73 6,597 4.39 5,439 3.54 4,182 2.79Commercial - domestic
(2) 637 1.36 773 1.58 536 1.03 244 0.46 255 0.50Commercial real estate 745 4.15 873 4.67 629 3.34 455 2.56 382 2.36 745 4.15Commercial lease financing 43 0.79 41 0.72 44 0.81 67 1.22 31 0.57Commercial - foreign 162 2.30 149 2.05 122 1.54 104 1.25 129 1.63
1,587 2.05 1,836 2.28 1,331 1.58 870 1.02 797 0.99Small business commercial - d omestic 684 15.16 796 17.45 773 16.69 633 13.47 562 11.55
Total commercial 2,271 2.78 2,632 3.09 2,104 2.37 1,503 1.68 1,359 1.59Total net charge-offs $8,421 3.71 $9,624 4.13 $8,701 3.64 $6,942 2.85 $5,541 2.36
Provision for credit losses $10,110 $11,705 $13,375 $13,380 $8,535
By Business SegmentDeposits $98 3.45 % $100 3.48 % $88 3.26 % $88 3.42 % $106 4.89 %Global Card Services
(3) 6,617 12.82 7,536 14.02 7,096 12.91 5,406 9.60 4,623 7.88Home Loans & Insurance 1,501 4.50 1,963 5.87 1,598 4.88 1,492 4.77 976 3.18Global Banking 1,436 1.91 1,748 2.25 1,477 1.83 1,122 1.37 992 1.19
254 12 25o a ar ets 254 12.25 . . . .Global Wealth & Investment Management 211 0.84 285 1.12 172 0.68 162 0.60 145 0.65All Other
(3) (1,696) (4.61) (2,052) (5.52) (1,759) (4.43) (1,333) (3.21) (1,316) (3.60)Total net charge-offs $8,421 3.71 $9,624 4.13 $8,701 3.64 $6,942 2.85 $5,541 2.36
S up p le m e nt a l m a na g e d b a s i s d a t aCredit card - domestic $4,195 12.69 % $4,816 13.92 % $4,530 12.69 % $3,421 9.20 % $2,929 7.66 %
672 8 48Credit card - foreign 672 8.48 661 8.41 517 7.06 373 5.47 334 4.57T ot al cred it card man aged net losses $4,867 11.88 $5,477 12.90 $5,047 11.73 $3,794 8.62 $3,263 7.16
(1) Net charge-off/loss ratios are calculated as annualized held net charge-offs or managed net losses divided by average outstanding held o r managed loans and leases excluding
loans measured at fair value under the fair value option during the period for each loan and lease category.
(2) Excludes small business commercial - domestic loans.
(3) Global Card Services is presented on a m anaged basis. The securitization offset is included within All Other.
Loans are classified as domestic or foreign based upon the domicile of the borrower.
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Certain prior period amounts have been reclassified to conform to current period presentation.
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Pre-provision, Pre-tax Income vs. Provision Expense
$ in Billions
$11.1
$19.1
$16.1
$13.4 $13.4
$11.7
$7.8
$3.0
$8.1 $8.2
$5.0
$10.1
$9.0
$2.0
$3.3
$6.0 $5.8$6.5
$8.5
$10.1
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
Pre-provision, pre-tax income, FTE basis Provision expense
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Performance by Geographical Area
Since the Corporations operations are highly integrated, certain asset, liability, income and expense amounts must be
a oca e o arr ve a o a asse s, o a revenue, ne o n eres expense, ncome e ore ncome axes an ne ncome y
geographic area. The Corporation identifies its geographic performance based on the business unit structure used to manage
the capital or expense deployed in the region as applicable. This requires certain judgments related to the allocation of
revenue so that revenue can be appropriately matched with the related expense or capital deployed in the region.
A t D e c e m b e r 3 1 Y e a r E n d e d D e c e m b e r 3 1To t a l R e v e n u e , In c o m e (L o s s )N e t o f I n t e r e s t B e f o r e In c o m e N e t I n c o m e
(Dollars in millions) Y e a r T o t a l A s s e t s ( 1 ) E x p e ns e ( 2 ) Ta xe s (L o s s )Domestic
(3) 2 0 0 9 $ 1 ,8 4 0 ,2 3 2 $ 9 8 ,2 7 8 ($ 6 ,9 0 1 ) ($ 1 ,0 2 5 )2008 1,678,853 67,549 3,289 3,254
2007 60,245 18,039 13,137
Asia(4) 2 0 0 9 1 1 8 , 9 2 1 1 0 , 6 8 5 8 , 0 9 6 5 , 1 0 1
2008 50,567 1,770 1,207 761
2007 1,613 1,146 721
2 0 0 9 2 3 9 3 7 4 9 0 8 5 2 2 9 5 1 6 5 2urope, e as an r ca 2 0 0 9 2 3 9 , 3 7 4 9 , 0 8 5 2 , 2 9 5 1 , 6 5 22008 78,790 3,020 (456) (252)
2007 4,097 894 592
Latin America and the Caribbean 2 0 0 9 2 4 , 7 7 2 1 , 5 9 5 8 7 0 5 4 82008 9,733 443 388 245
Total Foreign 2 0 0 9 3 8 3 , 0 6 7 2 1 , 3 6 5 1 1 , 2 6 1 7 , 3 0 12008 139,090 5,233 1,139 754
2007 6,588 2,885 1,845
To t a l C o n s o lid a t e d 2 0 0 9 $ 2 ,2 2 3 , 2 9 9 $ 1 1 9 ,6 4 3 $ 4 ,3 6 0 $ 6 ,2 7 62008 1,817,943 72,782 4,428 4,0082007 66,833 20,924 14,982
(1) Total assets include long-lived assets, which are primarily located in the U.S.
(2) There were no material intercompany revenues between geographic regions for any of the periods presented.
'
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, . . ,
total revenue, net of interest expense of $2.5 billion, $1.2 billion and $770 million; income before income taxes of $723 million, $552 million
and $292 million; and net income of $488 million, $404 million and $195 million for 2009, 2008 and 2007, respectively.
(4) The year ended December 31, 2009 amount includes pre-tax gains of $7.3 billion ($4.7 billion net-of-tax) on the sale of common shares
of the Corporations initial investment in CCB.
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Capital Levels
$ in Billions
$239.5
$255.2 $257.7
$231.4
6.9%7.3% 7.8%
8.2%
6.9%
7.5%
8.3%
7.6%
9.2%
10.1%
11.9%12.5%
10.4%
$101.4 100.2
$120.8
$171.1
$190.9 $193.1
$160.4
$138.5$146.8
$156.3$162.7 $161.0
$177.14.8%
4.2%4.8%
4.5%
$110.4 $112.4
$120.4
$94.1$83.4
$93.9.
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
$58.9 $56.1$63.3
$76.1
$ in Mil l ions (except per share information)3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Common shareholders' equity $135,109 $142,394 $139,003 $138,540 $136,888 $139,351 $166,272 $196,492 $198,843 $194,236
Total shareholders' equity 138,510 146,803 156,309 162,691 161,039 177,052 239,549 255,152 257,683 231,444
2007 2008 2009
Tier 1 capital Total shareholders' equity Tier 1 common equity ratio Tier 1 capital ratioTier 1 common
Tier 1 common (1) n/a n/a n/a 58,853 56,139 63,339 76,145 110,383 112,357 120,394
Tier 1 capital 94,108 83,372 93,899 101,439 100,248 120,814 171,061 190,874 193,073 160,388
Total capital 135,786 133,720 146,531 154,983 153,318 171,661 237,905 255,701 258,568 226,077
Goodwill, intangibles, & related deferred tax liabilities (2) 77,068 87,826 86,006 85,684 89,009 88,746 90,068 96,993 95,668 94,897
Tangible common shareholders' equity (3) 58,041 54,568 52,997 52,856 47,879 50,736 69,617 100,844 103,833 118,638
Tangible shareholders' equity (3) 61,442 58,977 70,303 77,007 72,030 88,437 142,894 159,504 162,673 136,602
Risk-weighted assets 1,145,069 1,212,905 1,250,942 1,230,307 1,328,084 1,320,824 1,695,192 1,599,569 1,548,962 1,542,517
Tangible assets (3) 1,501,695 1,627,920 1,650,496 1,631,191 1,742,168 1,729,328 2,225,308 2,158,746 2,156,033 2,128,457
Total assets 1,578,763 1,715,746 1,736,502 1,716,875 1,831,177 1,817,943 2,321,963 2,254,394 2,251,043 2,223,299
Common shares issued and outstanding 4,437 4,438 4,453 4,453 4,562 5,017 6,401 8,651 8,650 8,650
Total equity/Total assets 8.8% 8.6% 9.0% 9.5% 8.8% 9.7% 10.3% 11.3% 11.4% 10.4%
Tier 1 common equity ratio (1) n/a n/a n/a 4.8% 4.2% 4.8% 4.5% 6.9% 7.3% 7.8%
Tier 1 capital ratio 8.2% 6.9% 7.5% 8.3% 7.6% 9.2% 10.1% 11.9% 12.5% 10.4%
Total capital ratio 11.9% 11.0% 11.7% 12.6% 11.5% 13.0% 14.0% 16.0% 16.7% 14.7%
Tangible common equity ratio (3) 3.9% 3.4% 3.2% 3.2% 2.8% 2.9% 3.1% 4.7% 4.8% 5.6%
Tang. common equity/Risk-weighted assets (3) 5.1% 4.5% 4.2% 4.3% 3.6% 3.8% 4.1% 6.3% 6.7% 7.7%
Tangible equity ratio (3) 4.1% 3.6% 4.3% 4.7% 4.1% 5.1% 6.4% 7.4% 7.6% 6.4%
Book value per share $30.45 $32.09 $31.22 $31.11 $30.01 $27.77 $25.98 $22.71 $22.99 $21.48
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Tangible book value per share (3) 13.08 12.30 11.90 11.87 10.50 10.11 10.88 11.66 12.00 11.94
(1) Tier 1 common is not available prior to 2Q08
(2) Does not include related deferred tax liabilities prior to 1Q08
(3) Tangible measures adjust for the impact of goodwill, i ntangibles, and related deferred tax liabili ties. Prior to 1Q08, tangible measures adjusted for the impact of goodwill and intangible s.
n/a = not applicable
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Efficiency Ratio
56%
57%
52%51%
53%
55%
56%
55%
49%
48%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Efficiency ratio = noninterest expense/(net interest income + noninterest income)
39Fully taxable-equivalent basis
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Credit Ratings
re t rat ngs an out oo s are op n ons su ect to ongo ng rev ew y t e rat ng agenc es an may c angefrom time to time based our financial performance, industry dynamics and other factors. During 2009, therating agencies took numerous actions to adjust our ratings and outlooks, many of which were negative.The rating agencies have noted that our credit ratings currently reflect their expectation of significantsupport from the U.S. government. Other factors that influence our credit ratings include rating agenciesassessment of the general operating environment, our relative positions in the markets in which wecompete, reputation, liquidity position, the level and volatility of earnings, corporate governance and riskmanagemen po c es, an cap a pos on an cap a managemen prac ces.
Bank of America and certain of its banking subsidiaries also have debt securities issued in the marketplace.The Corporation and its primary banks debt ratings are:
Credit Rating Summaryredit Rating SummaryUpdated as ofFebruary 26, 2010
Bank of America Corporation (1 )Moody's Standard & Poor's Fitch
Outlook Stable Negative StableLong-term A2 A A+Short-term P-1 A-1 F1+Subordinated A3 A- ATrust preferred Baa3 BB BBPreferred stock Ba3 BB BB-
Bank of America, N.A. (2 )Moody's Standard & Poor's Fitch
Outlook Stable Negative StableDeposits Aa3 A+ AA-Long-term Aa3 A+ A+Short-term P-1 A-1 F1+
(1) Ratings are identical for Merrill Lynch & Co.(2) Ratings are identical for FIA Card Services, N.A.
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Preferred Stock Information
P r e f er r ed S t o c k I nf o r m a ti o n
Comm on Stock In format ionBank of America common stock is listed on The New York Stock Exchange, Inc. and The Pacific Stock Exchange Incorporated under the symbol BAC. The
common stock is also listed on the London Stock Exchange, and certain shares of common stock are listed on the Tokyo Stock Exchange. The stock is typically
listed in the Wall Street Journal as BankAm.
The Preferred BML Series S, also known as the Common Equivalent Stock (CES), was issued on December 3, 2009 in connection with the repayment of TARP funds
and fully converted into our common stock on February 24, 2010, upon receiving shareholder approval to increase the amount of authorized common shares.
Pre fe r red S tock In format ionThe following table is a summary of the outstanding Preferred Stock at December 31, 2009.
N o t io n a l C u m u la t i v e /S e rie s Is s u e D a te C U SIP T ick e r (1 ) $ in M il l i o ns F ix ed /F lo at in g R ate P aid F ix ed F lo at in g N o n-C um ula ti v e F irs t C al l D a te ( 2)
BAC Series B 01/07/1997 $1 Fixed 7.000 7.000 Cumulative Non-Callable
BAC Series D 09/14/2006 060505831 BAC PrD $661 Fixed 6.204 6.204 Non-Cumulative 09/14/2011
BAC Series E(3)
11/06/2006 060505815 BAC PrE $487 Fixed/Floating 4.000 4.000 3ML + 35bps Non-Cumulative 11/15/2011
R a t e
BAC Series H 05/23/2008 060505765 BAC PrH $2,862 Fixed 8.200 8.200 Non-Cumulative 05/01/2013BAC Series I 09/26/2007 060505740 BAC PrI $365 Fixed 6.625 6.625 Non-Cumulative 10/01/2017
BAC Series J 11/20/2007 060505724 BAC PrJ $978 Fixed 7.250 7.250 Non-Cumulative 11/1/2012
BAC Series K(4)
01/30/2008 060505DR2 $1,668 Fixed-to-Floating 8.000 8.000 3ML + 363bps Non-Cumulative 01/30/2018
BAC Series L(5)
01/29/2008 060505682 BAC PrL $3,349 Fixed 7.250 7.250 Non-Cumulative Non-Callable
BAC Series M(4)
04/30/2008 060505DT8 $1,434 Fixed-to-Floating 8.125 8.125 3ML + 364bps Non-Cumulative 05/15/2018
BML Series S(6)
12/03/2009 060505419 BAC PrS $19,244 Fixed $0.01/share Non-Cumulative Non-Callable
BML Series 1(7) (8)
11/01/2004 060505633 BML PrG $146 Floating 3.000 3.000 3ML + 75bps Non-Cumulative 11/28/2009
BML Series 2(7) (8)
03/14/2005 060505625 BML PrH $526 Floating 3.000 3.000 3ML + 65bps Non-Cumulative 11/28/2009
BML Series 3(7)
11/17/2005 060505617 BML PrI $670 Fixed 6.375 6.375 Non-Cumulative 11/28/2010
BML Series 4(7) (9)
11/17/2005 060505591 BML PrJ $389 Floating 4.000 4.000 3ML + 75bps Non-Cumulative 11/28/2010
BML Series 5(7) (9)
03/20/2007 060505583 BML PrL $606 Floating 4.000 4.000 3ML + 50bps Non-Cumulative 05/21/2012
BML Series 6(7)
09/21/2007 060505575 BML PrN $65 Fixed 6.700 6.700 Non-Cumulative 02/03/2009
BML Series 7(7)
09/21/2007 060505567 BML PrO $17 Fixed 6.250 6.250 Non-Cumulative 03/18/2010
BML Series 8(7)
04/22/2008 060505559 BML PrQ $2,673 Fixed 8.625 8.625 Non-Cumulative 05/28/2013
To ta l $ 3 6 ,1 4 0
(1)
(2) BAC preferred series are redeemable, in whole or in part, on any dividend payment date on or after the call date, at par. BML preferred series are redeemable in whole at any time or in part from time to time at par
(3) BAC Series E rate pays the greater of the fixed or floating rate
(4) BAC Series K and Series M pays fixed up to the call date, floating there afterwards
(5) BAC Series L may be converted into common stock at any time at the option of the holder; or at our option, in whole or in part, on or after 01/30/2013, if the closing price of BAC common stock exceeds the
trigger price for 20 trading days during any period of 30 consecutive trading days
(6) BAC Series S, also referred to as Common Equivalent Stock, was automatically converted to common stock on February 24, 2010
(7) BML Series 1 through 8 were issued on 01/02/2009 to replace MER series 1 through 8 preferred stock
(8) BML Series 1 and Series 2 are subject to a 3.00% minimum dividend rate
(9) BML Series 4 and Series 5 are subject to a 4.00% minimum dividend rate
N o t e : Merrill Lynch MC Series 2 & 3 Mandatory Convertible Non-Cumulative Preferred Stock are not included in the chart above, as they are settled contractually in common stock, not cash, on 10/15/2010
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Trust Preferred and Hybrid Securities InformationAggregate Aggregate Stated
(Dollars in millions) I ss ua nc e P ri nci pa l A mo unt P ri nci pa l A mo un t Matur i ty of Per Annum Interest Inter est Payment Redemption
The following table is a summary of the outstanding Trust and Hybrid Securities and the related Notes at December 31, 2009 as originated by Bank of America Corporation and its predecessor companies and subsidiaries.
I ssuer Date of Trust Secur i ti es of the Notes the Notes Rate of the Notes Dates Per iodBank of Amer icaCapital Trust I Dec 2001 $575 $593 Dec 2031 7.00 % 3/15,6/15,9/15,12/15 On or after 12/15/06Capital Trust II Jan 2002 900 928 Feb 2032 7.00 2/1,5/1,8/1,11/1 On or after 2/01/07Capital Trust III Aug 2002 500 516 Aug 2032 7.00 2/15,5/15,8/15,11/15 On or after 8/15/07Capital Trust IV Apr 2003 375 387 May 2033 5.88 2/1,5/1,8/1,11/1 On or after 5/01/08Capital