| Statement Of Income Interest Based Revenue (USD $) | ||||
| In Millions, except Share data in Thousands | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Interest income | ||||
| Interest and fees on loans and leases | $12,329 | $13,121 | $25,678 | $27,536 |
| Interest on debt securities | 3,283 | 2,900 | 7,113 | 5,674 |
| Federal funds sold and securities borrowed or purchased under agreements to resell | 690 | 800 | 1,845 | 2,008 |
| Trading account assets | 1,952 | 2,229 | 4,380 | 4,593 |
| Other interest income | 1,338 | 977 | 2,732 | 2,075 |
| Total interest income | 19,592 | 20,027 | 41,748 | 41,886 |
| Interest expense | ||||
| Deposits | 2,082 | 3,520 | 4,625 | 8,108 |
| Short-term borrowings | 1,396 | 3,087 | 3,617 | 7,229 |
| Trading account liabilities | 450 | 749 | 1,029 | 1,589 |
| Long-term debt | 4,034 | 2,050 | 8,350 | 4,348 |
| Total interest expense | 7,962 | 9,406 | 17,621 | 21,274 |
| Net interest income | 11,630 | 10,621 | 24,127 | 20,612 |
| Noninterest income | ||||
| Card income | 2,149 | 3,451 | 5,014 | 7,090 |
| Service charges | 2,729 | 2,638 | 5,262 | 5,035 |
| Investment and brokerage services | 2,994 | 1,322 | 5,957 | 2,662 |
| Investment banking income | 1,646 | 695 | 2,701 | 1,171 |
| Equity investment income | 5,943 | 592 | 7,145 | 1,646 |
| Trading account profits (losses) | 2,164 | 357 | 7,365 | (1,426) |
| Mortgage banking income | 2,527 | 439 | 5,841 | 890 |
| Insurance income | 662 | 217 | 1,350 | 414 |
| Gains on sales of debt securities | 632 | 127 | 2,130 | 352 |
| Other income (loss) (includes $1,026 and $1,397 of debt other-than-temporary-impairment losses for 2009) | (302) | (49) | 1,640 | (965) |
| Total noninterest income | 21,144 | 9,789 | 44,405 | 16,869 |
| Total revenue, net of interest expense | 32,774 | 20,410 | 68,532 | 37,481 |
| Provision for credit losses | 13,375 | 5,830 | 26,755 | 11,840 |
| Noninterest expense | ||||
| Personnel | 7,790 | 4,420 | 16,558 | 9,146 |
| Occupancy | 1,219 | 848 | 2,347 | 1,697 |
| Equipment | 616 | 372 | 1,238 | 768 |
| Marketing | 499 | 571 | 1,020 | 1,208 |
| Professional fees | 544 | 362 | 949 | 647 |
| Amortization of intangibles | 516 | 447 | 1,036 | 893 |
| Data processing | 621 | 587 | 1,269 | 1,150 |
| Telecommunications | 345 | 266 | 672 | 526 |
| Other general operating | 4,041 | 1,574 | 7,339 | 2,505 |
| Merger and restructuring charges | 829 | 212 | 1,594 | 382 |
| Total noninterest expense | 17,020 | 9,659 | 34,022 | 18,922 |
| Income before income taxes | 2,379 | 4,921 | 7,755 | 6,719 |
| Income tax expense (benefit) | (845) | 1,511 | 284 | 2,099 |
| Net income | 3,224 | 3,410 | 7,471 | 4,620 |
| Preferred stock dividends | 805 | 186 | 2,238 | 376 |
| Net income available to common shareholders | $2,419 | $3,224 | $5,233 | $4,244 |
| Per common share information | ||||
| Earnings | 0.33 | 0.72 | 0.75 | 0.95 |
| Diluted earnings | 0.33 | 0.72 | 0.75 | 0.95 |
| Dividends paid | 0.01 | 0.64 | 0.02 | 1.28 |
| Average common shares issued and outstanding | 7,241,515 | 4,435,719 | 6,808,262 | 4,431,870 |
| Average diluted common shares issued and outstanding | 7,269,518 | 4,444,098 | 6,836,972 | 4,445,428 |
| Statement Of Income Interest Based Revenue (Parenthetical) (USD $) | ||||
| In Millions | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Other income (loss) (includes debt other-than-temporary-impairment losses) | $1,026 | $0 | $1,397 | $0 |
| Statement Of Financial Position Unclassified - Deposit Based Operations (USD $) | ||
| In Millions | Jun. 30, 2009
| Dec. 31, 2008
|
| Assets | ||
| Cash and cash equivalents | $140,366 | $32,857 |
| Time deposits placed and other short-term investments | 25,710 | 9,570 |
| Federal funds sold and securities borrowed or purchased under agreements to resell (includes $69,826 and $2,330 measured at fair value and $184,595 and $82,099 pledged as collateral) | 184,685 | 82,478 |
| Trading account assets (includes $58,875 and $69,348 pledged as collateral) | 199,471 | 159,522 |
| Derivative assets | 101,707 | 62,252 |
| Debt securities: | ||
| Available-for-sale (includes $121,309 and $158,939 pledged as collateral) | 257,519 | 276,904 |
| Held-to-maturity, at cost (fair value - $7,844 and $685) | 9,719 | 685 |
| Total debt securities | 267,238 | 277,589 |
| Loans and leases (includes $6,962 and $5,413 measured at fair value and $140,265 and $166,891 pledged as collateral) | 942,248 | 931,446 |
| Allowance for loan and lease losses | (33,785) | (23,071) |
| Loans and leases, net of allowance | 908,463 | 908,375 |
| Premises and equipment, net | 15,667 | 13,161 |
| Mortgage servicing rights (includes $18,535 and $12,733 measured at fair value) | 18,857 | 13,056 |
| Goodwill | 86,246 | 81,934 |
| Intangible assets | 13,245 | 8,535 |
| Loans held-for-sale (includes $38,302 and $18,964 measured at fair value) | 50,994 | 31,454 |
| Other assets (includes $30,714 and $29,906 measured at fair value) | 241,745 | 137,160 |
| Total assets | 2,254,394 | 1,817,943 |
| Deposits in domestic offices: | ||
| Noninterest-bearing | 248,757 | 213,994 |
| Interest-bearing (includes $1,658 and $1,717 measured at fair value) | 650,725 | 576,938 |
| Deposits in foreign offices: | ||
| Noninterest-bearing | 4,560 | 4,004 |
| Interest-bearing | 66,700 | 88,061 |
| Total deposits | 970,742 | 882,997 |
| Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $48,601 measured at fair value at June 30, 2009) | 263,639 | 206,598 |
| Trading account liabilities | 53,384 | 57,287 |
| Derivative liabilities | 51,300 | 30,709 |
| Commercial paper and other short-term borrowings (includes $1,387 measured at fair value at June 30, 2009) | 96,236 | 158,056 |
| Accrued expenses and other liabilities (includes $13,475 and $1,978 measured at fair value and $1,992 and $421 of reserve for unfunded lending commitments) | 116,754 | 36,952 |
| Long-term debt (includes $41,010 measured at fair value at June 30, 2009) | 447,187 | 268,292 |
| Total liabilities | 1,999,242 | 1,640,891 |
| Commitments and contingencies | 0 | 0 |
| Shareholders' equity | ||
| Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 5,760,731 and 8,202,042 shares | 58,660 | 37,701 |
| Common stock and additional paid-in capital, $0.01 par value; authorized - 10,000,000,000 shares; issued and outstanding - 8,651,459,122 and 5,017,435,592 shares | 128,717 | 76,766 |
| Retained earnings | 79,210 | 73,823 |
| Accumulated other comprehensive income (loss) | (11,227) | (10,825) |
| Other | (208) | (413) |
| Total shareholders' equity | 255,152 | 177,052 |
| Total liabilities and shareholders' equity | $2,254,394 | $1,817,943 |
| Statement Of Financial Position Unclassified - Deposit Based Operations (Parenthetical) (USD $) | ||
| In Millions, except Share data | Jun. 30, 2009
| Dec. 31, 2008
|
| Federal funds sold and securities borrowed or purchased under agreements to resell, measured at fair value | $69,826 | $2,330 |
| Federal funds sold and securities borrowed or purchased under agreements to resell, pledged as collateral | 184,595 | 82,099 |
| Trading account assets, pledged as collateral | 58,875 | 69,348 |
| Available-for-sale, pledged as collateral | 121,309 | 158,939 |
| Held-to-maturity, at cost, fair value | 7,844 | 685 |
| Loans and leases, measured at fair value | 6,962 | 5,413 |
| Loans and leases, pledged as collateral | 140,265 | 166,891 |
| Mortgage servicing rights, measured at fair value | 18,535 | 12,733 |
| Loans held-for-sale, measured at fair value | 38,302 | 18,964 |
| Other assets, measured at fair value | 30,714 | 29,906 |
| Interest-bearing, measured at fair value | 1,658 | 1,717 |
| Federal funds purchased and securities loaned or sold under agreements to repurchase, measured at fair value | 48,601 | 0 |
| Commercial paper and other short-term borrowings, measured at fair value | 1,387 | 0 |
| Accrued expenses and other liabilities, measured at fair value | 13,475 | 1,978 |
| Accrued expenses and other liabilities, reserve for unfunded lending commitments | 1,992 | 421 |
| Long-term debt, measured at fair value | $41,010 | $0 |
| Preferred stock, par value | 0.01 | 0.01 |
| Preferred stock, authorized shares | 100,000,000 | 100,000,000 |
| Preferred stock, issued shares | 5,760,731 | 8,202,042 |
| Preferred stock, outstanding shares | 5,760,731 | 8,202,042 |
| Common stock, par value | 0.01 | 0.01 |
| Common stock, authorized shares | 10,000,000,000 | 10,000,000,000 |
| Common stock, issued shares | 8,651,459,122 | 5,017,435,592 |
| Common stock, outstanding shares | 8,651,459,122 | 5,017,435,592 |
| Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | |||||||||||||||||||
| In Millions, except Share data in Thousands | Preferred Stock
| Common Stock and Additional Paid-in Capital Amount
| Retained Earnings
| Accumulated Other Comprehensive Income [Member]
| Other
| Total
| |||||||||||||
| Beginning Balance at Dec. 31, 2007 | 4,437,885 | ||||||||||||||||||
| Beginning Balance at Dec. 31, 2007 | $4,409 | $60,328 | $81,393 | $1,129 | [1] | ($456) | $146,803 | ||||||||||||
| Net income | 4,620 | 4,620 | |||||||||||||||||
| Net changes in available-for-sale debt and marketable equity securities | (3,102) | [1] | (3,102) | ||||||||||||||||
| Net changes in foreign currency translation adjustments | 62 | [1] | 62 | ||||||||||||||||
| Net changes in derivatives | 24 | [1] | 24 | ||||||||||||||||
| Employee benefit plan adjustments | 23 | [1] | 23 | ||||||||||||||||
| Dividends paid: | |||||||||||||||||||
| Common | (5,717) | (5,717) | |||||||||||||||||
| Preferred | (376) | (376) | |||||||||||||||||
| Issuance of preferred stock | 19,742 | 19,742 | |||||||||||||||||
| Common stock issued under employee plans and related tax effects | 15,062 | ||||||||||||||||||
| Common stock issued under employee plans and related tax effects | 781 | (169) | 612 | ||||||||||||||||
| Ending Balance at Jun. 30, 2008 | 24,151 | 61,109 | 79,920 | (1,864) | [1] | (625) | 162,691 | ||||||||||||
| Ending Balance at Jun. 30, 2008 | 4,452,947 | ||||||||||||||||||
| Dividends paid: | |||||||||||||||||||
| Beginning Balance at Dec. 31, 2008 | 5,017,436 | ||||||||||||||||||
| Beginning Balance at Dec. 31, 2008 | 37,701 | 76,766 | 73,823 | (10,825) | [1] | (413) | 177,052 | ||||||||||||
| Cumulative adjustment for accounting change - Other-than-temporary impairments on debt securities | 71 | [2] | (71) | [1],[2] | 0 | [2] | |||||||||||||
| Net income | 7,471 | 7,471 | |||||||||||||||||
| Net changes in available-for-sale debt and marketable equity securities | (993) | [1] | (993) | ||||||||||||||||
| Net changes in foreign currency translation adjustments | (101) | [1] | (101) | ||||||||||||||||
| Net changes in derivatives | 487 | [1] | 487 | ||||||||||||||||
| Employee benefit plan adjustments | 276 | [1] | 276 | ||||||||||||||||
| Dividends paid: | |||||||||||||||||||
| Common | (150) | (150) | |||||||||||||||||
| Preferred | (2,235) | [3] | (2,235) | [3] | |||||||||||||||
| Issuance of preferred stock | 26,800 | [4] | 3,200 | [4] | 30,000 | [4] | |||||||||||||
| Stock issued in acquisition | 8,605 | 20,504 | 29,109 | ||||||||||||||||
| Stock issued in acquisition | 1,375,476 | ||||||||||||||||||
| Issuance of common stock | 1,250,000 | ||||||||||||||||||
| Issuance of common stock | 13,468 | 13,468 | |||||||||||||||||
| Exchange of preferred stock | (14,797) | 14,221 | 576 | 0 | |||||||||||||||
| Exchange of preferred stock | 999,935 | ||||||||||||||||||
| Common stock issued under employee plans and related tax effects | 8,612 | ||||||||||||||||||
| Common stock issued under employee plans and related tax effects | 558 | 205 | 763 | ||||||||||||||||
| Other | 351 | (346) | 5 | ||||||||||||||||
| Ending Balance at Jun. 30, 2009 | $58,660 | $128,717 | $79,210 | ($11,227) | [1] | ($208) | $255,152 | ||||||||||||
| Ending Balance at Jun. 30, 2009 | 8,651,459 | ||||||||||||||||||
| [1]Amounts shown are net-of-tax. For additional information on accumulated OCI, see Note 13 - Shareholders' Equity and Earnings Per Common Share to the Consolidated Financial Statements. | |||||||||||||||||||
| [2]Effective January 1, 2009, the Corporation early adopted FSP No. FAS 115-2, FAS 124-2 and EITF 99-20-2. Amounts shown are net-of-tax. For additional information on the adoption of this accounting pronouncement, see Note 1 - Summary of Significant Accounting Principles and Note 5 - Securities to the Consolidated Financial Statements. | |||||||||||||||||||
| [3]Excludes $233 million of second quarter 2009 cumulative preferred dividends not declared as of June 30, 2009 and $346 million of accretion of discounts on preferred stock. | |||||||||||||||||||
| [4]Proceeds from the issuance of Series Q and Series R Preferred Stock were allocated to the preferred stock and warrants on a relative fair value basis. For more information, see Note 13 - Shareholders' Equity and Earnings Per Common Share to the Consolidated Financial Statements. | |||||||||||||||||||
| Statement Of Cash Flows Indirect Deposit Based Operations (USD $) | ||
| In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Operating activities | ||
| Net income | $7,471 | $4,620 |
| Reconciliation of net income to net cash provided by operating activities: | ||
| Provision for credit losses | 26,755 | 11,840 |
| Gains on sales of debt securities | (2,130) | (352) |
| Depreciation and premises improvements amortization | 1,169 | 676 |
| Amortization of intangibles | 1,036 | 893 |
| Deferred income tax expense (benefit) | 247 | (769) |
| Net decrease (increase) in trading and derivative instruments | 41,190 | (20,866) |
| Net decrease in other assets | 14,107 | 8,261 |
| Net (decrease) increase in accrued expenses and other liabilities | (18,629) | 3,400 |
| Other operating activities, net | (5,605) | 3,495 |
| Net cash provided by operating activities | 65,611 | 11,198 |
| Investing activities | ||
| Net decrease in time deposits placed and other short-term investments | 17,573 | 4,124 |
| Net decrease in federal funds sold and securities borrowed or purchased under agreements to resell | 36,617 | 22,482 |
| Proceeds from sales of available-for-sale debt securities | 77,402 | 48,991 |
| Proceeds from paydowns and maturities of available-for-sale debt securities | 31,900 | 12,710 |
| Purchases of available-for-sale debt securities | (43,670) | (82,343) |
| Proceeds from maturities of held-to-maturity debt securities | 795 | 63 |
| Purchases of held-to-maturity debt securities | (1,819) | (745) |
| Proceeds from sales of loans and leases | 5,846 | 36,523 |
| Other changes in loans and leases, net | 8,646 | (58,559) |
| Net purchases of premises and equipment | (1,240) | (1,109) |
| Proceeds from sales of foreclosed properties | 851 | 138 |
| Cash received upon acquisition, net | 31,804 | 0 |
| Other investing activities, net | 18,369 | (198) |
| Net cash provided by (used in) investing activities | 183,074 | (17,923) |
| Financing activities | ||
| Net decrease in deposits | (10,362) | (20,413) |
| Net (decrease) increase in federal funds purchased and securities loaned or sold under agreements to repurchase | (54,539) | 16,688 |
| Net decrease in commercial paper and other short-term borrowings | (99,715) | (13,336) |
| Proceeds from issuance of long-term debt | 42,635 | 20,489 |
| Retirement of long-term debt | (60,228) | (13,750) |
| Proceeds from issuance of preferred stock | 30,000 | 19,742 |
| Proceeds from issuance of common stock | 13,468 | 28 |
| Cash dividends paid | (2,385) | (6,093) |
| Excess tax benefits of share-based payments | 0 | 26 |
| Other financing activities, net | (18) | (18) |
| Net cash (used in) provided by financing activities | (141,144) | 3,363 |
| Effect of exchange rate changes on cash and cash equivalents | (32) | (42) |
| Net increase (decrease) in cash and cash equivalents | 107,509 | (3,404) |
| Cash and cash equivalents at January 1 | 32,857 | 42,531 |
| Cash and cash equivalents at June 30 | $140,366 | $39,127 |
| Notes to Financial Statements | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| NOTE 1-Summary of Significant Accounting Principles | NOTE 1-Summary of Significant Accounting Principles Principles of Consolidation and Basis of Presentation The Consolidated Financial Statements include the accounts of the Corporation and its majority-owned subsidiaries, and those variable interest entities (VIEs) where the Corporation is the primary beneficiary. All significant intercompany accounts and transactions have been eliminated. Results of operations of companies purchased are included from the dates of acquisition and for VIEs, from the dates that the Corporation became the primary beneficiary. Assets held in an agency or fiduciary capacity are not included in the Consolidated Financial Statements. The Corporation accounts for investments in companies for which it owns a voting interest of 20 percent to 50 percent and for which it has the ability to exercise significant influence over operating and financing decisions using the equity method of accounting. These investments are included in other assets and are subject to impairment testing. The Corporations proportionate share of income or loss is included in equity investment income. The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates and assumptions. These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements filed as Exhibit 99.2 to the Corporations Current Report on Form 8-K filed on May28, 2009. The nature of the Corporations business is such that the results of any interim period are not necessarily indicative of results for a full year. In the opinion of management, normal recurring adjustments necessary for a fair statement of the interim period results have been made. The Corporation evaluates subsequent events through the date of filing. Certain prior period amounts have been reclassified to conform to current period presentation. Recently Proposed and Issued Accounting Pronouncements On July1, 2009, the Financial Accounting Standards Board (FASB) issued FASB Statement of Financial Accounting Standards (SFAS) No.168, FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles (SFAS 168). SFAS 168 approved the FASB Accounting Standards Codification as the single source of authoritative nongovernmental GAAP. The FASB Accounting Standards Codification is effective for interim or annual periods ending after September15, 2009. All existing accounting standards have been superseded and all other accounting literature not included in the FASB Accounting Standards Codification will be considered nonauthoritative. The adoption of SFAS 168 will not impact the Corporations financial condition and results of operations. On June12, 2009, the FASB issued SFAS No.166, Accounting for Transfers of Financial Assets an amendment of FASB Statement No.140 (SFAS 166), and SFAS No.167, Amendments to FASB Interpretation No.46(R) (SFAS 167).The amendments will be effective Ja |
| NOTE 2-Merger and Restructuring Activity | NOTE 2-Merger and Restructuring Activity Merrill Lynch On January1, 2009, the Corporation acquired Merrill Lynch through its merger with a subsidiary of the Corporation in exchange for common and preferred stock with a value of $29.1 billion, creating a financial services franchise with significantly enhanced wealth management, investment banking and international capabilities. Under the terms of the merger agreement, Merrill Lynch common shareholders received 0.8595 of a share of Bank of America Corporation common stock in exchange for each share of Merrill Lynch common stock. In addition, Merrill Lynch non-convertible preferred shareholders received Bank of America Corporation preferred stock having substantially similar terms. Merrill Lynch convertible preferred stock remains outstanding and is convertible into Bank of America common stock at an equivalent exchange ratio. With the acquisition, the Corporation has one of the largest wealth management businesses in the world with approximately 15,000 financial advisors and more than $1.8 trillion in client assets. Global investment management capabilities include an economic ownership of approximately 50 percent in BlackRock, Inc. (BlackRock), a publicly traded investment management company. In addition, the acquisition adds strengths in debt and equity underwriting, sales and trading, and merger and acquisition advice, creating significant opportunities to deepen relationships with corporate and institutional clients around the globe. Merrill Lynchs results of operations were included in the Corporations results beginning January1, 2009. The Merrill Lynch merger is being accounted for under the acquisition method of accounting in accordance with SFAS 141R. Accordingly, the purchase price was preliminarily allocated to the acquired assets and liabilities based on their estimated fair values at the Merrill Lynch acquisition date as summarized in the following table. Preliminary goodwill of $5.0 billion is calculated as the purchase premium after adjusting for the fair value of net assets acquired and represents the value expected from the synergies created from combining the Merrill Lynch wealth management and corporate and investment banking businesses with the Corporations capabilities in consumer and commercial banking as well as the economies of scale expected from combining the operations of the two companies. Merrill Lynch Preliminary Purchase Price Allocation (Dollars in billions, except per share amounts) Purchase price Merrill Lynch common shares exchanged (in millions) 1,600 Exchange ratio 0.8595 The Corporations common shares issued (in millions) 1,375 Purchase price per share of the Corporations common stock (1) $ 14.08 Total value of the Corporations common stock and cash exchanged for fractional shares $ 19.4 Merrill Lynch preferred stock (2) 8.6 Fair value of outstanding employee stock awards 1.1 Total purchase price 29.1 Preliminary allocation of the purchase price Merrill Lynch stockholders equity 19.9 Merrill Lynch goodwill and intangible asse |
| NOTE 3-Trading Account Assets and Liabilities | NOTE 3-Trading Account Assets and Liabilities The following table presents the fair values of the components of trading account assets and liabilities at June30, 2009 and December31, 2008. (Dollars in millions) June30 2009 December31 2008 Trading account assets U.S. government and agency securities (1) $ 71,324 $ 84,660 Corporate securities, trading loans and other 58,685 34,056 Equity securities 29,681 20,258 Foreign sovereign debt 21,683 13,614 Mortgage trading loans and asset-backed securities 18,098 6,934 Total trading account assets $ 199,471 $ 159,522 Trading account liabilities U.S. government and agency securities $ 16,053 $ 32,850 Equity securities 18,849 12,128 Foreign sovereign debt 11,647 7,252 Corporate securities and other 6,835 5,057 Total trading account liabilities $ 53,384 $ 57,287 (1) Includes $42.7 billion and $52.6 billion at June30, 2009 and December31, 2008 of government-sponsored enterprise obligations. |
| NOTE 4-Derivatives | NOTE 4-Derivatives The Corporation designates derivatives as trading derivatives, economic hedges, or as derivatives used for SFAS 133 hedge accounting purposes. For additional information on the Corporations derivatives and hedging activities, see Note 1 Summary of Significant Accounting Principles to the Consolidated Financial Statements filed as Exhibit 99.2 to the Corporations Current Report on Form 8-K filed on May28, 2009. Derivative Balances The Corporation enters into derivatives to facilitate client transactions, for proprietary trading purposes and to manage risk exposures. The following table identifies derivative instruments included on the Consolidated Balance Sheet in derivative assets and liabilities at June30, 2009 and December31, 2008. Balances are provided on a gross basis, prior to the application of the impact of counterparty and collateral netting. Total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and have been reduced by the cash collateral applied. June30, 2009 Gross Derivative Assets Gross Derivative Liabilities (Dollars in billions) Contract/ Notional(1) Derivatives Used in Trading Activities and as Economic Hedges Derivatives Designated as SFAS 133 Hedging Instruments(2) Total Derivatives Used in Trading Activities and as Economic Hedges Derivatives Designatedas SFAS 133 Hedging Instruments(2) Total Interest rate contracts Swaps $ 49,577.5 $ 1,288.6 $ 4.9 $ 1,293.5 $ 1,260.4 $ 0.6 $ 1,261.0 Futures and forwards 9,130.4 8.4 - 8.4 7.1 - 7.1 Written options 2,696.1 0.1 - 0.1 90.3 - 90.3 Purchased options 2,550.3 90.9 - 90.9 0.8 - 0.8 Foreign exchange contracts Swaps 652.1 25.3 4.0 29.3 29.2 0.7 29.9 Spot, futures and forwards 1,840.6 34.1 - 34.1 34.6 0.1 34.7 Written options 486.3 - - - 16.3 - 16.3 Purchased options 478.0 17.2 - 17.2 - - - Equity contracts Swaps 57.5 1.9 - 1.9 1.9 - 1.9 Futures and forwards 97.8 4.2 - 4.2 3.7 - 3.7 Written options 249.0 5.0 - 5.0 31.0 - 31.0 Purchased options 257.9 28.4 - 28.4 2.3 0.1 2.4 Commodity contracts Swaps 90.3 12.3 - 12.3 11.3 - 11.3 Futures and forwards 1,906.5 5.8 - 5.8 3.8 - 3.8 Written options 68.2 - - - 6.7 - 6.7 Purchased options 64.8 6.5 - 6.5 - - - Credit derivatives Purchased |
| NOTE 5-Securities | NOTE 5-Securities The amortized cost, gross unrealized gains and losses, and fair value of AFS debt and marketable equity securities at June30, 2009 and December31, 2008 were: (Dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses FairValue Available-for-sale debt securities, June30, 2009 U.S. Treasury securities and agency debentures $ 14,545 $ 383 $ (12 ) $ 14,916 Mortgage-backed securities: Agency MBSs 135,348 2,330 (210 ) 137,468 Agency collateralized mortgage obligations 17,573 401 (112 ) 17,862 Non-agency MBSs 48,222 2,179 (7,945 ) 42,456 Foreign securities 5,405 24 (1,204 ) 4,225 Corporate/Agency bonds 5,794 101 (412 ) 5,483 Other taxable securities (1) 23,198 150 (749 ) 22,599 Total taxable securities 250,085 5,568 (10,644 ) 245,009 Tax-exempt securities 13,032 85 (607 ) 12,510 Total available-for-sale debt securities $ 263,117 $ 5,653 $ (11,251 ) $ 257,519 Available-for-sale marketable equity securities (2) $ 6,427 $ 1,495 $ (947 ) $ 6,975 Available-for-sale debt securities, December31, 2008 U.S. Treasury securities and agency debentures $ 4,540 $ 121 $ (14 ) $ 4,647 Mortgage-backed securities: Agency MBSs 191,913 3,064 (146 ) 194,831 Non-agency MBSs 43,224 860 (9,337 ) 34,747 Foreign securities 5,675 6 (678 ) 5,003 Corporate/Agency bonds 5,560 31 (1,022 ) 4,569 Other taxable securities (1) 24,832 11 (1,300 ) 23,543 Total taxable securities 275,744 4,093 (12,497 ) 267,340 Tax-exempt securities 10,501 44 (981 ) 9,564 Total available-for-sale debt securities $ 286,245 $ 4,137 $ (13,478 ) $ 276,904 Available-for-sale marketable equity securities (2) $ 18,892 $ 7,717 $ (1,537 ) $ 25,072 (1) Includes ABS. (2) Represents those AFS marketable equity securities that are recorded in other assets on the Consolidated Balance Sheet. At December31, 2008, approximately $19.7 billion of the fair value balance, including $7.7 billion of unrealized gain on the unrestricted shares, represents China Construction Bank (CCB) shares. At June30, 2009, the amortized cost and fair value of held-to-maturity debt securities was $9.7 billion and $7.8 billion, which includes asset-backed securities that were issued by the Corporations credit card securitization trust and retained by the Corporation with an amortized cost of $7.4 bil |
| NOTE 6-Outstanding Loans and Leases | NOTE 6-Outstanding Loans and Leases Outstanding loans and leases at June30, 2009 and December31, 2008 were: (Dollars in millions) June30 2009 December31 2008 Consumer Residential mortgage (1) $ 245,967 $ 248,063 Home equity 155,058 152,483 Discontinued real estate (2) 17,490 19,981 Credit card domestic 48,948 64,128 Credit card foreign 20,429 17,146 Direct/Indirect consumer (3) 99,154 83,436 Other consumer (4) 3,390 3,442 Total consumer 590,436 588,679 Commercial Commercial domestic (5) 217,571 219,233 Commercial real estate (6) 75,081 64,701 Commercial lease financing 22,387 22,400 Commercial foreign 29,811 31,020 Total commercial loans 344,850 337,354 Commercial loans measured at fair value (7) 6,962 5,413 Total commercial 351,812 342,767 Total loans and leases $ 942,248 $ 931,446 (1) Includes foreign residential mortgages of $710 million at June30, 2009. (2) Includes $15.9 billion and $18.2 billion of pay option loans and $1.6 billion and $1.8 billion of subprime loans at June30, 2009 and December31, 2008 obtained as part of the acquisition of Countrywide. The Corporation no longer originates these products. (3) Includes dealer financial services of $40.9 billion and $40.1 billion, consumer lending of $24.2 billion and $28.2 billion, securities based lending margin loans of $11.0 billion and $0 and foreign consumer loans of $7.7 billion and $1.8 billion at June30, 2009 and December31, 2008. (4) Includes consumer finance loans of $2.4 billion and $2.6 billion, and other foreign consumer loans of $721 million and $618 million at June30, 2009 and December31, 2008. (5) Includes small business commercial domestic loans, primarily card related, of $18.1 billion and $19.1 billion at June30, 2009 and December31, 2008. (6) Includes domestic commercial real estate loans of $71.6 billion and $63.7 billion, and foreign commercial real estate loans of $3.5 billion and $979 million at June30, 2009 and December31, 2008. (7) Certain commercial loans are measured at fair value in accordance with SFAS 159 and include commercial domestic loans of $4.4 billion and $3.5 billion, commercial foreign loans of $2.5 billion and $1.7 billion, and commercial real estate loans of $123 million and $203 million at June30, 2009 and December31, 2008. See Note 16 Fair Value Disclosures for additional discussion of fair value for certain financial instruments. The Corporation mitigates a portion of its credit risk in the residential mortgage portfolio through cash collateralized synthetic securitizations which provide mezzanine risk protection and are designed to reimburse the Corporation in the event that losses exceed 10 bps of the original pool balance. As of June30, 2009 and December31, 2008, $93.2 billion and $109.3 billion of mortgage loans were protected by these agreements. During the three and six months ended |
| NOTE 7-Allowance for Credit Losses | NOTE 7-Allowance for Credit Losses The following table summarizes the changes in the allowance for the three and six months ended June30, 2009 and 2008. The Corporation recorded $855 million and $1.7 billion of charges to the provision for credit losses during the three and six months ended June30, 2009, specifically for loans associated with the SOP 03-3 portfolio. The amount of the allowance for loan and lease losses associated with the SOP 03-3 portfolio was $2.5 billion at June30, 2009. ThreeMonthsEndedJune30 SixMonthsEndedJune30 (Dollars in millions) 2009 2008 2009 2008 Allowance for loan and lease losses, beginning of period $ 29,048 $ 14,891 $ 23,071 $ 11,588 Loans and leases charged off (9,126 ) (3,977 ) (16,482 ) (7,063 ) Recoveries of loans and leases previously charged off 425 358 839 729 Net charge-offs (8,701 ) (3,619 ) (15,643 ) (6,334 ) Provision for loan and lease losses 13,347 5,830 26,699 11,851 Other (1) 91 28 (342 ) 25 Allowance for loan and lease losses, June30 33,785 17,130 33,785 17,130 Reserve for unfunded lending commitments, beginning of period 2,102 507 421 518 Provision for unfunded lending commitments 28 - 56 (11 ) Other (2) (138 ) - 1,515 - Reserve for unfunded lending commitments, June30 1,992 507 1,992 507 Allowance for credit losses, June30 $ 35,777 $ 17,637 $ 35,777 $ 17,637 (1) For the six months ended June30, 2009, amount includes a $750 million reduction in the allowance for loan and lease losses related to credit card loans of $8.5 billion which were exchanged for a $7.8 billion held-to-maturity debt security that was issued by the Corporations U.S. credit card securitization trust. This reduction was partially offset by a $340 million increase associated with the reclassification of the December31, 2008 receivable expected to be reimbursable under residential mortgage cash collateralized synthetic securitizations from the allowance for loan and lease losses to other assets. (2) For the three and six months ended June30, 2009, this amount represents the fair value of the acquired Merrill Lynch unfunded lending commitments excluding those accounted for in accordance with SFAS 159, net of accretion. |
| NOTE 8-Securitizations | NOTE 8-Securitizations The Corporation routinely securitizes loans and debt securities. These securitizations are a source of funding for the Corporation in addition to transferring the economic risk of the loans or debt securities to third parties. In a securitization, various classes of debt securities may be issued and are generally collateralized by a single class of transferred assets which most often consist of residential mortgages, but may also include commercial mortgages, credit card receivables, home equity loans, automobile loans, municipal bonds or mortgage-backed securities. The securitized loans may be serviced by the Corporation or by third parties. With each securitization, the Corporation may retain a portion of the securities, subordinated tranches, interest-only strips, subordinated interests in accrued interest and fees on the securitized receivables, and, in some cases, overcollateralization and cash reserve accounts, all of which are called retained interests. These retained interests are recorded in other assets, AFS debt securities, trading account assets or derivative assets and are carried at fair value or amounts that approximate fair value with changes recorded in income or accumulated OCI. Changes in the fair value of credit card related interest-only strips are recorded in card income. In addition, the Corporation may enter into derivatives with the securitization trust to mitigate the trusts interest rate or foreign exchange risk. These derivatives are entered into at market terms and are generally senior in payment. The Corporation also may serve as the underwriter and distributor of the securitization, serve as the administrator of the trust, and from time to time, make markets in securities issued by the securitization trusts. For more information related to derivatives, see Note 4 Derivatives. On June12, 2009, the FASB issued SFAS 166 and SFAS 167 which will result in the consolidation of certain QSPEs and VIEs that are not currently recorded on the Corporations Consolidated Balance Sheet. For more information on SFAS 166 and SFAS 167, see Note 1 Summary of Significant Accounting Principles. First Lien Mortgage-related Securitizations As part of its mortgage banking activities, the Corporation securitizes a portion of the residential mortgage loans it originates or purchases from third parties in conjunction with or shortly after loan closing or purchase. In addition, the Corporation may, from time to time, securitize commercial mortgages and first lien residential mortgages that it originates or purchases from other entities. The following tables summarize selected information related to mortgage securitizations for the three and six months ended June30, 2009 and 2008 and at June30, 2009 and December31, 2008. Residential Mortgage Non-Agency Agency Prime Subprime Alt-A Commercial Mortgage Three Months Ended June30 (Dollars in millions) 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 Cash proceeds from new securitizations (1) $ 96,427 $ 20,682 $ - $ 190 |
| NOTE 9 - Variable Interest Entities | NOTE 9-Variable Interest Entities In addition to the securitization vehicles described in Note 8 Securitizations and Note 18 Mortgage Servicing Rights, which are typically structured as QSPEs, the Corporation utilizes SPEs in the ordinary course of business to support its own and its customers financing and investing needs. These SPEs are typically structured as VIEs and are thus subject to consolidation by the reporting enterprise that absorbs the majority of the economic risks and rewards of the VIE. To determine whether it must consolidate a VIE, the Corporation qualitatively analyzes the design of the VIE to identify the creators of variability within the VIE, including an assessment as to the nature of the risks that are created by the assets and other contractual arrangements of the VIE, and identifies whether it will absorb a majority of that variability. On June12, 2009, the FASB issued SFAS 166 and SFAS 167 which will result in the consolidation of certain QSPEs and VIEs that are not currently recorded on the Corporations Consolidated Balance Sheet. For more information on SFAS 166 and SFAS 167, see Note 1 Summary of Significant Accounting Principles. In addition to the VIEs discussed below, the Corporation uses VIEs such as trust preferred securities trusts in connection with its funding activities, as described in more detail in Note 12 Short-term Borrowings and Long-term Debt to the Consolidated Financial Statements filed as Exhibit 99.2 to the Corporations Current Report on Form 8-K filed on May28, 2009. The Corporation also uses VIEs in the form of synthetic securitization vehicles to mitigate a portion of the credit risk on its residential mortgage loan portfolio as described in Note 6 Outstanding Loans and Leases. The Corporation has also provided support to or has loss exposure resulting from its involvement with other VIEs, including certain cash funds managed within GWIM, as described in more detail in Note 12 Commitments and Contingencies. The table below presents the assets and liabilities of VIEs which have been consolidated on the Corporations Balance Sheet at June30, 2009, total assets of consolidated VIEs at December31, 2008, and the Corporations maximum exposure to loss resulting from its involvement with consolidated VIEs as of June30, 2009 and December31, 2008. The Corporations maximum exposure to loss is based on the unlikely event that all of the assets in the VIEs become worthless and incorporates not only potential losses associated with assets recorded on the Corporations Balance Sheet but also potential losses associated with off-balance sheet commitments such as unfunded liquidity commitments and other contractual arrangements. Consolidated VIEs (Dollars in millions) Multi-Seller Conduits LoanOther Investment Vehicles CDOs Leveraged LeaseTrusts Other Vehicles Total Consolidated VIEs, June30, 2009 (1) Maximum loss exposure (2) $ 10,837 $ 7,344 $ 4,452 $ 5,547 $ 1,785 $ 29,965 Consolidated Assets (3) Trading account assets $ - |
| NOTE 10-Goodwill and Intangible Assets | NOTE 10-Goodwill and Intangible Assets The following table presents goodwill at June30, 2009 and December31, 2008, which includes $5.0 billion of goodwill related to the acquisition of Merrill Lynch. As discussed in more detail in Note 19 Business Segment Information, the Corporation changed its basis of presentation from three segments to six segments effective January1, 2009 in connection with the Merrill Lynch acquisition. As a result, the reporting units to be utilized for goodwill impairment tests will be the business segments or one level below the business segments. For more information on the Merrill Lynch acquisition, see Note 2 Merger and Restructuring Activity. (Dollars in millions) June30 2009 December31 2008 Deposits $ 17,818 $ 17,805 Global Card Services 22,290 22,271 Home Loans Insurance 4,797 4,797 Global Banking 26,754 27,490 Global Markets 3,265 2,080 Global Wealth Investment Management 10,187 6,503 All Other 1,135 988 Total goodwill $ 86,246 $ 81,934 Due to continued stress for Home Loans Insurance and Global Card Services as a result of current market conditions we concluded, consistent with the first quarter of 2009, that an additional impairment analysis should be performed for these two reporting units in the second quarter of 2009. In performing the first step of the additional impairment analysis, we utilized the market approach for Home Loans Insurance and the income approach for Global Card Services.Based on the results of this analysis, both Home Loans Insurance and Global Card Services passed the first step analysis (i.e., fair value exceeded its carrying value). Although not required, to further substantiate the value of the Corporations goodwill balance, the second step analysis (i.e., comparing the implied fair value of the reporting units goodwill with the carrying amount of that goodwill) was performed for both Home Loans Insurance and Global Card Services. As a result of the tests, which were consistent with the results of the tests performed in 2008 and the first quarter of 2009, no goodwill impairment was recognized for the six months ended June30, 2009. For more information on goodwill impairment testing, see the Goodwill and Intangible Assets section of Note 1 Summary of Significant Accounting Principles to the Consolidated Financial Statements filed as Exhibit 99.2 to the Corporations Current Report on Form 8-K filed on May28, 2009. The gross carrying values and accumulated amortization related to intangible assets at June30, 2009 and December31, 2008 are presented below: June30, 2009 December31, 2008 (Dollars in millions) GrossCarrying Value Accumulated Amortization GrossCarrying Value Accumulated Amortization Purchased credit card relationships $ 7,163 $ 3,090 $ 7,080 $ 2,740 Core deposit intangibles 5,276 3,486 |
| NOTE 11-Long-term Debt | NOTE 11-Long-term Debt The following table presents long-term debt at June30, 2009 including long-term debt associated with the acquisition of Merrill Lynch. (Dollars in millions) June30,2009 Long-term debt issued by Merrill Lynch Co., Inc. and subsidiaries Senior debt issued by Merrill Lynch Co., Inc. $ 89,626 Senior debt issued by subsidiaries guaranteed by Merrill Lynch Co., Inc. 7,444 Senior structured notes issued by Merrill Lynch Co., Inc. 33,125 Senior structured notes issued by subsidiaries guaranteed by Merrill Lynch Co., Inc. 16,798 Subordinated debt issued by Merrill Lynch Co., Inc. 10,965 Junior subordinated notes (related to trust preferred securities) 3,540 Other subsidiary financing 5,007 Total long-term debt issued by Merrill Lynch Co., Inc. and subsidiaries (1) 166,505 Other long-term debt issued by Bank of America Corporation and subsidiaries 280,682 Total long-term debt $ 447,187 (1) Includes $83.5 billion of fixed-rate obligations and $83.0 billion of variable-rate obligations. The weighted-average interest rate for debt (excluding structured notes) issued by Merrill Lynch Co., Inc. and subsidiaries was 3.67 percent as of June30, 2009. Including the Merrill Lynch acquisition, the Corporation has aggregate annual maturities on its long-term debt obligations of $80.6 billion maturing within one year, $77.5 billion maturing in two years, $73.0 billion maturing in three years, $35.9 billion maturing in four years, $33.3 billion maturing in five years and $146.9 billion for all years thereafter. Certain structured notes acquired in connection with the acquisition of Merrill Lynch are accounted for under the fair value option. For more information on these structured notes, see Note 16 Fair Value Disclosures. |
| NOTE 12-Commitments and Contingencies | NOTE 12-Commitments and Contingencies In the normal course of business, the Corporation enters into a number of off-balance sheet commitments. These commitments expose the Corporation to varying degrees of credit and market risk and are subject to the same credit and market risk limitation reviews as those instruments recorded on the Corporations Consolidated Balance Sheet. Credit Extension Commitments The Corporation enters into commitments to extend credit such as loan commitments, SBLCs and commercial letters of credit to meet the financing needs of its customers. The unfunded legally binding lending commitments shown in the following table are net of amounts distributed (e.g., syndicated) to other financial institutions of $39.4 billion and $46.9 billion at June30, 2009 and December31, 2008. At June30, 2009, the carrying amount of these commitments, excluding fair value adjustments, was $2.0 billion, including deferred revenue of $35 million and a reserve for unfunded legally binding lending commitments of $2.0 billion. At December31, 2008, the comparable amounts were $454 million, $33 million and $421 million. The carrying amount of these commitments is recorded in accrued expenses and other liabilities. The table below also includes the notional value of commitments of $26.8 billion and $16.9 billion at June30, 2009 and December31, 2008, which are measured at fair value in accordance with SFAS 159. However, the table below excludes the fair value adjustment of $1.45 billion and $1.12 billion on these commitments that was recorded in accrued expenses and other liabilities. For information regarding the Corporations loan commitments accounted for at fair value, see Note 16 Fair Value Disclosures. (Dollars in millions) Expiresin1 year or less Expiresafter1 yearthrough3 years Expiresafter3 years through 5 years Expires 5 years Total Credit extension commitments, June30, 2009 Loan commitments $ 149,809 $ 169,915 $ 56,397 $ 27,593 $ 403,714 Home equity lines of credit 3,621 2,662 7,242 86,732 100,257 Standby letters of credit and financial guarantees (1) 30,450 27,331 6,741 13,491 78,013 Commercial letters of credit 1,995 43 25 1,452 3,515 Legally binding commitments (2) 185,875 199,951 70,405 129,268 585,499 Credit card lines (3) 583,534 - - - 583,534 Total credit extension commitments $ 769,409 $ 199,951 $ 70,405 $ 129,268 $ 1,169,033 Credit extension commitments, December31, 2008 Loan commitments $ 128,992 $ 120,234 $ 67,111 $ 31,200 $ 347,537 Home equity lines of credit 3,883 2,322 4,799 96,415 107,419 Standby letters of credit and financial guarantees (1) 33,350 26,090 8,328 9,812 77,580 Commercial letters of credit 2,228 29 1 1,507 3,765 Legally binding commitments (2) 168,453 148,675 80,239 138,934 536,301 C |
| NOTE 13-Shareholders' Equity and Earnings Per Common Share | NOTE 13 Shareholders Equity and Earnings Per Common Share Common Stock In January 2009, the Corporation issued 1.4 billion shares of common stock in connection with its acquisition of Merrill Lynch. For additional information regarding the Merrill Lynch acquisition, see Note 2 Merger and Restructuring Activity. In addition, during the first quarter of 2009, the Corporation issued warrants to purchase approximately 199.1 million shares of common stock in connection with preferred stock issuances to the U.S. government. For more information, see the following preferred stock discussion. During the second quarter of 2009, the Corporation issued 1.25 billion shares of its common stock at an average price of $10.77 per share through an at-the-market issuance program resulting in gross proceeds of approximately $13.5 billion. The Corporation may repurchase shares, subject to certain restrictions, from time to time, in the open market or in private transactions through the Corporations approved repurchase program. For the six months ended June30, 2009, the Corporation did not repurchase any shares of common stock and issued approximately 8.6million shares under employee stock plans. As of June 30, 2009, 1.2 billion of unissued common shares have been reserved for future issuances. In July 2009, the Board declared a third quarter cash dividend on common stock of $0.01 per share, payable on September25, 2009 to common shareholders of record on September4, 2009. In April 2009, the Board declared a second quarter cash dividend of $0.01 per common share which was paid on June26, 2009 to common shareholders of record on June5, 2009. In January 2009, the Board declared a first quarter cash dividend of $0.01 per common share which was paid on March27, 2009 to common shareholders of record on March6, 2009. Preferred Stock In the second quarter of 2009, the Corporation entered into agreements with certain holders of non-government perpetual preferred shares to exchange their holdings of approximately $7.3 billion aggregate liquidation preference of perpetual preferred stock for approximately 545 million shares of common stock. In addition, the Corporation exchanged approximately $3.9 billion aggregate liquidation preference of non-government preferred stock for approximately 200 million shares of common stock in an exchange offer. In total, these exchanges resulted in the exchange of approximately $11.3 billion aggregate liquidation preference of preferred stock into approximately 745 million shares of common stock. The table below provides further detail on the non-convertible perpetual preferred stock exchanges. (Dollars in millions, actual shares) Series Preferred Shares Exchanged Carrying Value(1) CommonShares Issued FairValueof StockIssued Negotiated Exchanges Series K 173,298 $ 4,332 328,193,964 $ 3,635 Series M 102,643 2,566 192,970,068 2,178 Series 4 7,024 211 11,642,232 131 Series D 6,566 164 10,104,798 114 Series 7 33,404 33 2,069,047 23 Total Negotiated Exchanges 322,935 |
| NOTE 14-Pension, Postretirement and Other Employee Plans | NOTE 14-Pension, Postretirement and Other Employee Plans The Corporation sponsors noncontributory trusteed qualified pension plans that cover substantially all officers and employees, a number of noncontributory nonqualified pension plans, and postretirement health and life plans. The plans provide defined benefits based on an employees compensation and years of service. The Bank of America Pension Plan (the Pension Plan) provides participants with compensation credits, generally based on years of service. For account balances based on compensation credits prior to January1, 2008, the Pension Plan allows participants to select from various earnings measures, which are based on the returns of certain funds or common stock of the Corporation. The participant-selected earnings measures determine the earnings rate on the individual participant account balances in the Pension Plan. Participants may elect to modify earnings measure allocations on a periodic basis subject to the provisions of the Pension Plan. For account balances based on compensation credits subsequent to December31, 2007, the account balance earnings rate is based on a benchmark rate. For eligible employees in the Pension Plan on or after January1, 2008, the benefits become vested upon completion of three years of service. It is the policy of the Corporation to fund not less than the minimum funding amount required by ERISA. A detailed discussion of these plans is presented in Note 16 Employee Benefit Plans to the Consolidated Financial Statements filed as Exhibit 99.2 to the Corporations Current Report on Form 8-K filed on May28, 2009. As a result of the Merrill Lynch acquisition, the Corporation assumed the obligations related to the plans of Merrill Lynch. These plans include a terminated U.S. pension plan, non-U.S. pension plans, and other postretirement plans. The non-U.S. pension plans vary based on the country and local practices. In 1988, Merrill Lynch purchased a group annuity contract that guarantees the payment of benefits vested under the terminated U.S. pension plan. The Corporation, under a supplemental agreement, may be responsible for, or benefit from, actual experience and investment performance of the annuity assets. The Corporation has contributed approximately $120million toward this agreement during the six months ended June30, 2009. Additional contributions may be required under the supplemental agreement. Net periodic benefit cost (income) of the Corporations plans for the three and six months ended June30, 2009 and 2008 included the following components: ThreeMonthsEndedJune30 Qualified PensionPlans Nonqualifiedand Other PensionPlans(1) Postretirement HealthandLife Plans (Dollars in millions) 2009 2008 2009(2) 2008 2009(2) 2008 Components of net periodic benefit cost (income) Service cost $ 87 $ 69 $ 7 $ 1 $ 3 $ 3 Interest cost 183 201 59 19 22 20 Expected return on plan assets (308 ) (355 ) (54 ) - (2 ) |
| NOTE 15-Income Taxes | NOTE 15-Income Taxes The Corporations net deferred tax assets increased by $19.6 billion as a result of the acquisition of Merrill Lynch on January1, 2009. Included in these deferred tax assets are carryforward amounts generated in the U.S. and U.K. that are deductible in the future as net operating losses (NOLs). The U.K. NOL deferred tax asset of $9.7 billion has an unlimited carryforward period, but due to change-in-control limitations in the three years prior to and following the change in ownership, can be jeopardized by certain major changes in the nature or conduct of the Corporations U.K. businesses. The Corporation has concluded that no valuation allowance is required. The U.S. federal NOL of $11.8 billion, which is represented by a deferred tax asset of $4.1 billion, can be carried forward against future tax periods of the Corporation until 2028, and no valuation allowance has been established based upon the Corporations estimate that future taxable income will be sufficient to utilize the NOL prior to its expiration. Merrill Lynch also has U.S. federal capital loss and foreign tax credit carryforwards against which valuation allowances have been recorded to reduce the assets to the amounts the Corporation believes are more likely than not to be realized before their expiration. The determination of the amount of deferred tax assets that are more likely than not to be realized involves the assessment of all available evidence, both positive and negative. This evidence includes, but is not limited to, historical taxable income and projected future taxable income, the character and geographic mix of projected future taxable income, and projected future reversals of existing deferred tax liabilities. During the quarter ended June30, 2009, the Corporation released $750 million of the valuation allowance attributable to Merrill Lynchs federal capital loss carryforward as the capital gain recognized on the sale of CCB shares increased the portion of such carryforward that is more likely than not to be realized. At June30, 2009 and December31, 2008, the balance of the Corporations unrecognized tax benefits (UTBs) was $5.9 billion and $3.5 billion. The increase was primarily due to the acquisition of Merrill Lynch. As of June30, 2009, $4.5 billion of the UTBs (net of items such as state income taxes and foreign tax credit offsets) would, if recognized, affect the Corporations effective tax rate in future periods. In December 2008, the U.S. Tax Court issued an adverse decision with respect to Merrill Lynchs tax treatment of a 1987 transaction which the Corporation expects to appeal. The UTBs with respect to this transaction have been included in the amounts disclosed above. Merrill Lynch is under examination by the Internal Revenue Service (IRS) and other tax authorities in countries and states in which Merrill Lynch has significant business operations. The examinations of the U.S. federal income tax returns are ongoing for the years 2005 to 2007. Tax returns filed in the U.K. are currently under examination for the years 2006 to 2007. The Corporation has paid assessments issued by tax authorities in Japan for the tax year |
| Note 16-Fair Value Disclosures | Note 16 Fair Value Disclosures SFAS 157 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Corporation determines the fair values of its financial instruments based on the fair value hierarchy established in SFAS 157 which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. The Corporation carries certain corporate loans and loan commitments, LHFS, securities financing agreements, long-term deposits and certain structured notes that are classified as long-term debt at fair value in accordance with SFAS 159. The Corporation also carries at fair value trading account assets and liabilities, derivative assets and liabilities, AFS debt securities, MSRs, and certain other assets. A detailed discussion regarding the fair value hierarchy and how the Corporation measures fair value is presented in Note 1 Summary of Significant Accounting Principles to the Consolidated Financial Statements filed as Exhibit 99.2 to the Corporations Current Report on Form 8-K filed on May28, 2009. Fair Value Measurement Level 1, 2 and 3 Valuation Techniques Financial instruments are considered Level 1 when valuation can be based on quoted prices in active markets for identical assets or liabilities. Level 2 financial instruments are valued using quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or models using inputs that are observable or can be corroborated by observable market data of substantially the full term of the assets or liabilities. Financial instruments are considered Level 3 when their values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable and when determination of the fair value requires significant management judgment or estimation. The Corporation also uses market indices for direct inputs to certain models, where the cash settlement is directly linked to appreciation or depreciation of that particular index (primarily in the context of structured credit products). In those cases, no material adjustments are made to the index-based values. In other cases, market indices are also used as inputs to valuation, but are adjusted for trade specific factors such as rating, credit quality, vintage and other factors. Corporate Loans and Loan Commitments The fair values of loans and loan commitments are based on market prices, where available, or discounted cash flows using market-based credit spreads of comparable debt instruments or credit derivatives of the specific borrower or comparable borrowers. Results of discounted cash flow calculations may be adjusted, as appropriate, to reflect other market conditions or the perceived credit risk of the borrower. Securities Financing Agreements |
| Note 17-Fair Value of Financial Instruments (SFAS 107 Disclosure) | Note 17 Fair Value of Financial Instruments (SFAS 107 Disclosure) SFAS No.107, Disclosures About Fair Value of Financial Instruments (SFAS 107), requires the disclosure of the estimated fair value of financial instruments including those financial instruments for which the Corporation did not elect the fair value option. The fair values of such instruments have been derived, in part, by the Corporations assumptions, the estimated amount and timing of future cash flows and estimated discount rates. Different assumptions could significantly affect these estimated fair values. Accordingly, the net realizable values could be materially different from the estimates presented below. In addition, the estimates are only indicative of the value of individual financial instruments and should not be considered an indication of the fair value of the Corporation. The provisions of SFAS 107 do not require the disclosure of the fair value of lease financing arrangements and nonfinancial instruments, including goodwill and intangible assets such as purchased credit card, affinity and trust relationships. The following disclosures represent financial instruments in which the ending balances at June30, 2009 are not carried at fair value in their entirety on the Corporations Consolidated Balance Sheet. Short-term Financial Instruments The carrying value of short-term financial instruments, including cash and cash equivalents, time deposits placed, federal funds sold and purchased, resale and certain repurchase agreements, commercial paper and other short-term investments and borrowings, approximates the fair value of these instruments. These financial instruments generally expose the Corporation to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market. In accordance with SFAS 159, the Corporation elected to fair value certain securities financing agreements and commercial paper and other short-term borrowings. See Note 16 Fair Value Disclosures for additional information on these financial instruments. Loans Fair values were generally determined by discounting both principal and interest cash flows expected to be collected using an observable discount rate for similar instruments with adjustments that the Corporation believes a market participant would consider in determining fair value. The Corporation estimates the cash flows expected to be collected using internal credit risk, interest rate and prepayment risk models that incorporate the Corporations best estimate of current key assumptions, such as default rates, loss severity and prepayment speeds for the life of the loan. In accordance with SFAS 159, the Corporation elected to fair value certain large corporate loans which exceeded the Corporations single name credit risk concentration guidelines. See Note 16 Fair Value Disclosures for additional information on loans for which the Corporation adopted the fair value option. Deposits The fair value for certain deposits with stated maturities was calculated by discounting contractual cash flows using current market rates for instruments with similar maturit |
| NOTE 18-Mortgage Servicing Rights | NOTE 18-Mortgage Servicing Rights The Corporation accounts for consumer MSRs at fair value with changes in fair value recorded in the Consolidated Statement of Income in mortgage banking income. The Corporation economically hedges these MSRs with certain derivatives and securities. The following table presents activity for residential first mortgage MSRs for the three and six months ended June30, 2009 and 2008. ThreeMonthsEndedJune30 SixMonthsEndedJune30 (Dollars in millions) 2009 2008 2009 2008 Balance, beginning of period $ 14,096 $ 3,163 $ 12,733 $ 3,053 Merrill Lynch balance, January1, 2009 - - 209 - Additions 1,706 669 2,955 1,035 Impact of customer payments (797 ) (233 ) (1,982 ) (430 ) Other changes in MSR market value 3,530 651 4,620 592 Balance, June30 $ 18,535 $ 4,250 $ 18,535 $ 4,250 Mortgage loans serviced for investors (in billions) $ 1,703 $ 292 $ 1,703 $ 292 For the three and six months ended June30, 2009, other changes in MSR market value were $3.5 billion and $4.6 billion compared to $651 million and $592 million for the same periods in 2008. These amounts reflect the change in discount rates and prepayment speed assumptions, mostly due to changes in interest rates, as well as the effect of changes in other assumptions. For the three and six months ended June30, 2009, the amounts did not include $300 million and $308 million resulting from lower than expected prepayments. For the same periods in 2008, the amounts did not include $(16) million and $(4) million resulting from greater than expected prepayments. The net amounts of $3.8 billion and $4.9 billion for the current periods, and $635 million and $588 million for the comparable periods in 2008 are included in the line mortgage banking income (loss) for mortgage servicing rights in the table Level 3 Total Realized and Unrealized Gains (Losses) Included in Earnings in Note 16 Fair Value Disclosures. At June30, 2009 and December31, 2008, the fair value of consumer MSRs was $18.5 billion and $12.7 billion. The Corporation uses an OAS valuation approach to determine the fair value of MSRs which factors in prepayment risk. This approach consists of projecting servicing cash flows under multiple interest rate scenarios and discounting these cash flows using risk-adjusted discount rates. The key economic assumptions used in valuations of MSRs include weighted-average lives of the MSRs and the OAS levels. Key economic assumptions used in determining the fair value of MSRs at June30, 2009 and December31, 2008 were as follows: June30, 2009 December31,2008 (Dollars in millions) Fixed Adjustable Fixed Adjustable Weighted-average option adjusted spread 1.73 % 5.24 % 1.71 % 6.40 % Weighted-average life, in years 5.11 3.11 3.26 2.71 The following table presents the sensitivity of t |
| NOTE 19-Business Segment Information | NOTE 19-Business Segment Information The Corporation reports the results of its operations through six business segments: Deposits, Global Card Services, Home Loans Insurance, Global Banking, Global Markets and Global Wealth Investment Management (GWIM), with the remaining operations recorded in All Other. Effective January1, 2009, as a result of the Merrill Lynch acquisition, the Corporation changed its basis of presentation from three segments to six segments. The former Global Consumer and Small Business Banking now is reflected in three separate business segments: Deposits, Global Card Services and Home Loans Insurance. The former Global Corporate and Investment Banking now is divided into Global Banking and Global Markets. Prior period amounts have been reclassified to conform to current period presentation. These changes did not have an impact on the previously reported consolidated results of the Corporation. The Corporation may periodically reclassify business segment results based on modifications to its management reporting methodologies and changes in organizational alignment. Deposits Deposits includes the results of consumer deposits activities which consist of a comprehensive range of products provided to consumers and small businesses. In addition, Deposits includes student lending results and the net effect of our ALM activities. Deposits products include traditional savings accounts, money market savings accounts, CDs and IRAs, and noninterest- and interest-bearing checking accounts. These products provide a relatively stable source of funding and liquidity. The Corporation earns net interest spread revenues from investing this liquidity in earning assets through client-facing lending and ALM activities. The revenue is allocated to the deposit products using a funds transfer pricing process which takes into account the interest rates and maturity characteristics of the deposits. Deposits also generate fees such as account service fees, non-sufficient fund fees, overdraft charges and ATM fees. In addition, Deposits includes the impact of migrating customers, and their related deposit balances, between GWIM and Deposits. Net interest income and service fees on such deposits are included subsequent to migration. In order to better coordinate the consumer payments businesses, we consolidated our consumer and small business card products into Global Card Services; therefore, debit card has moved from Deposits to Global Card Services. Global Card Services Global Card Services provides a broad offering of products including U.S. consumer and business card, consumer lending, international card and debit card to consumers and small businesses. The Corporation reports Global Card Services results on a managed basis which is consistent with the way that management evaluates the results of Global Card Services. Managed basis assumes that securitized loans were not sold and presents earnings on these loans in a manner similar to the way loans that have not been sold (i.e., held loans) are presented. Loan securitization is an alternative funding process that is used by the Corporation to diversify funding sources. Loan |
| NOTE 20-Performance by Geographical Area | NOTE 20-Performance by Geographical Area Since the Corporations operations are highly integrated, certain income, expense, asset and liability amounts must be allocated to arrive at total revenue, net of interest expense, income before income taxes, net income and total assets by geographic area. The Corporation identifies its geographic performance based upon 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. Three Months Ended June30 Six Months Ended June30 (Dollars in millions) Year TotalRevenue, NetofInterest Expense (1) Income (Loss) BeforeIncome Taxes NetIncome (Loss) TotalRevenue, NetofInterest Expense (1) Income (Loss) BeforeIncome Taxes NetIncome (Loss) Domestic (2) 2009 $ 24,433 $ (3,112 ) $ (205 ) $ 54,050 $ (1,372 ) $ 1,663 2008 18,778 4,348 3,037 34,726 5,954 4,135 Asia (3) 2009 6,360 5,680 3,578 9,476 8,155 5,138 2008 509 321 203 748 430 272 Europe, Middle East and Africa 2009 1,632 (336 ) (242 ) 4,281 625 450 2008 950 116 85 1,622 18 15 Latin America and the Caribbean 2009 349 147 93 725 347 220 2008 173 136 85 385 317 198 Total Foreign 2009 8,341 5,491 3,429 14,482 9,127 5,808 2008 1,632 573 373 2,755 765 485 Total Consolidated 2009 $ 32,774 $ 2,379 $ 3,224 $ 68,532 $ 7,755 $ 7,471 2008 20,410 4,921 3,410 37,481 6,719 4,620 (1) There were no material intercompany revenues between geographic regions for any of the periods presented. (2) Includes the Corporations Canadian operations which had total revenue, net of interest expense of $341 million and $682 million; income before income taxes of $40 million and $195 million; and net income of $50 million and $156 million for the three and six months ended June30, 2009, respectively. Includes the Corporations Canadian operations which had total revenue, net of interest expense of $269 million and $567 million; income before income taxes of $97 million and $254 million; and net income of $73 million and $189 million for the three and six months ended June30, 2008, respectively. (3) The three and six months ended June30, 2009, includes pre-tax gains of $5.3 billion ($3.5 billion net-of-tax) and $7.3 billion ($4.7 billion net-of-tax) on the sale of common shares of the Corporations initial |
| Document Information | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Document Information [Text Block] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Amendment Description | N.A. |
| Document Period End Date | 2009-06-30 |
| Entity Information (USD $) | |||
| 6 Months Ended
Jun. 30, 2009 | Jul. 31, 2009
| Jun. 30, 2008
| |
| Entity [Text Block] | |||
| Trading Symbol | BAC | ||
| Entity Registrant Name | BANK OF AMERICA CORP /DE/ | ||
| Entity Central Index Key | 0000070858 | ||
| Current Fiscal Year End Date | --12-31 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Current Reporting Status | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Entity Common Stock, Shares Outstanding | 8,651,594,786 | ||
| Entity Public Float | $151,887,915,138 |
