Good morning. Before Ken Lewis and Joe Price begin their comments, let me remind you that this presentation does contain some forward-looking statements regarding both our financial condition and financial results and that these statements involve certain risks that may cause actual results in the future to be different from our current expectations. These factors include among other things, changes in economic conditions, changes in interest rates, competitive pressures within the financial services industry, and legislative or regulatory requirements that may affect our businesses and for additional factors, please see our press release and SEC documents. And with that, let me turn it over to Ken Lewis. Kenneth D. Lewis: Good morning and thanks for joining our earnings review. Before we get started, I want to say a couple of things to the investment community. This is the first time I have addressed you since my announcement to retire and I just wanted to say thank you for the support you have shown me during my time with you, as well as the support you have shown the company. It's been a pleasure to lead Bank of America and to interact with all of you. As I've said before, we have a vast amount of talent in the company and we have market-leading positions in geographies, businesses, and distribution capabilities that are the envy of the industry. I have no doubt that Bank of America will thrive and my absence will not slow the momentum that is starting once again to move this company forward. Okay, while it's never easy to talk about earnings when you are reporting a loss, there are several things this quarter than indicate that there are better days ahead. Frankly, earnings this quarter were fairly consistent with the expectations we discussed three months ago. We indicated in July that profitability would be tougher in the second half of the year versus the first half due to the absence of several unusual positive items that helped first half earnings, as well as due to the normal seasonal drop in revenue that occurs in the second half. We did experience the seasonal impact and although revenue overall dropped in the third quarter, results were better in some businesses than the normal seasonal pattern. Overall, the pace of deterioration in credit quality slowed and was somewhat better than expected in several portfolios. On the negative side, earnings reflected the impact of the charge for terminating the government asset guarantee terms fee associated with the Merrill acquisition, as well as the negative accounting impact associated with the improvement in our credit spreads. But as I said last quarter, I would rather see the operating improvements and take the accounting lumps that come with our company's improving spreads. For the third quarter of 2009 Bank of America had a net loss of $1.0 billion, before preferred dividends, or a loss of $0.26 per diluted share after deducting preferred dividends of $1.24 billion, including almost $900.0 million related to the government and TARP. The termination of the government asset guarantee term sheet resulted in an expense of approximately $400.0 million in the quarter. The mark on the Merrill-structured notes was a negative $1.8 billion and the mark on the company's own derivative liabilities was $700.0 million. Total revenue on an FTE basis was in excess of $26.0 billion while pre-tax, pre-provision income was approximately $10.0 billion, including the impact of the $3.0 billion of negative items just mentioned. There were several positive trends in the quarter. The balance sheet continues to be managed prudently, resulting in lower risk-weighted assets, increased liquidity, and improved capital ratios. As we experienced in the second quarter, Merrill Lynch continued to provide a significant contribution to operating revenue. The capital markets environment was better than expected and resulted in a 37% increase in sales and trading revenue and solid investment banking revenue, although down seasonally from the previous quarter. Results in Global Wealth and investment management reflected higher asset management fees and brokerage income driven by increased client activity and stabilization among our financial advisors. New deposit generation maintained its positive momentum with overall corporate-wide average deposits up more than $14.0 billion. We continue to meet or exceed many of the milestones around both the Merrill and Countrywide integrations. Finally, and not the least, we believe we may have peaked in total credit losses this quarter, although the levels going forward will continue to be elevated and certain businesses will still experience power losses. Unfortunately, any earnings impact of these positives this quarter were more than offset by continued high level of provision expense, lower customer activity due to the economic environment, and the other items that I just mentioned. Total credit extended in the third quarter was $184.0 billion, including commercial renewals versus $212.0 billion in the second quarter. The larger components were $96.0 billion in first mortgages, $66.0 billion in non-real estate commercial, and $8.0 billion in commercial real estate. The remaining $14.0 billion includes other consumer retail loans and small business loans. Despite these new extensions, loan growth overall declined due to lower consumer spending and a resurgence in the capital markets, allowing corporate clients to issue bonds and equity, replacing loans as a source of funding. Additionally, companies continue to be very cautious and we are not seeing the level of seasonal inventory builds or capital expenditure spending at any meaningful level. Provision expense in the third quarter decreased from the second quarter by $1.7 billion, but included a $2.1 billion addition to the reserves and that's versus a $4.7 billion in the second quarter. Now, before I turn it over to Joe let me make a couple of comments about the current environment. Merrill Lynch continued to be accretive to earnings year-to-date as these market-sensitive businesses offer diversification to offset the core credit headwinds we are facing. Although expected to peak this year, net loss levels will continue to remain high going into 2010. Additions to the reserve will most likely continue at least through the fourth quarter, but as you saw this quarter, the level of reserve addition is down substantially. We continue to position the balance sheet to write off the recession with deleveraging actions earlier this year, shrinking certain asset positions and substantially adding to reserve levels. Our outlook for the economy is close to the consensus view, with unemployment peaking around the 10% level. We believe the pace of new bankruptcy filings for individuals has slowed somewhat but still see some additional pressure on home prices. Based on this economic scenario, results in the fourth quarter are expected to continue to be challenging as we close the year. While we still have several quarters before we can discuss actual normalized earnings, we believe that the economy is stabilizing and customer sentiment is improving. At this point, let me turn it over to Joe for additional color and commentary. Joe L. Price: I plan over the next few minutes to cover the performance of each of our businesses, credit quality and some other topics, but before getting into business results, let me highlight the large items that impacted earnings in the third quarter, and you can see these on Slide 5. As most of you are aware by now, structured notes issued by Merrill Lynch, which are mark-to-market under the fair value option, resulted in the hit earnings of $1.8 billion on a pre-tax basis due to narrowing credit spreads. If you remember, the mark was a negative $3.6 billion in the second quarter. Now, as a reminder, the impact of marking our cash liabilities does not impact Tier 1 capital. Credit evaluation adjustments on derivative liabilities—and these are principally in our trading businesses—were revalued, resulting in a negative impact of $714.0 million versus a negative of $1.6 billion in the second quarter. Again, a good thing, but still negative to earnings. Market disruption valuation adjustments this quarter in our global markets business were actually a net positive of $200.0 million. On the CMBS and related exposure side in global markets, we took a charge of approximately $600.0 million related to exposures in the hotel industry and equity investments. On our remaining CDO-related exposure we recorded a loss of $138.0 million. These negative charges were offset by positive marks in legacy assets, primarily on the recovery of value on exposures by monoline. This enabled us to recover a portion of the valuation allowances against the reduced receivables from monolines. Now, the third quarter tax rate, or tax benefit, of the loss was higher than statutory due to a shift in the geographic mix of our earnings globally. In the fourth quarter we expect the effective tax rate to trend toward statutory, absent any unusual items. Now let me quickly touch upon some highlights in each of the businesses this quarter. In our deposit segment, on Slide 7, earnings were $798.0 million in the quarter, up from $509.0 million in the second quarter. Net interest income of $1.7 billion was flat with the second quarter, while non-interest income of $1.9 billion increased 10%. Non-interest expense of $2.3 billion declined 11% due to the absence of the FDIC special assessment charge that was incurred in the second quarter. Now on Slide 8 you can see average retail deposit levels for the quarter, excluding Countrywide, were up almost $8.0 billion, or 1.2% from the second quarter, which we believe is about industry growth. We continue to see product mix shift from CDs to higher margin checking accounts. Now, Merrill Lynch continues to show momentum here as financial advisors provide to customers the benefits of an expanded product suite. Checking balances now represent over 40% of our retail deposit base. In late September we announced changes of our overdraft fee policies. These changes were intended to help customers avoid excessive overdrafts by better managing their finances. As a result of these changes, future fee revenue streams will be negatively impacted beginning in the fourth quarter. Now we are assessing proactive strategies to further strengthen consumer trust and more evenly balance our fee structure across our entire customer base. Additionally, as most of you are aware, the Federal Reserve is expected to issue a final ruling in the fourth quarter addressing Reg E. The proposed ruling may further impact our fee revenue on a go-forward basis. We will be more explicit about the impact once the final ruling is known. But as things currently stand, given the changes we made, absent any mitigating actions, I would expect revenue to negatively impacted between $150.0 million and $200.0 million in the fourth quarter. The global card services is on Slide 9. Although a loss of $1.0 billion dollars was recorded, this was an improvement over the second quarter results by almost $600.0 million, due mainly to lower managed provision expense. Both managed revenue and expense levels were flat with the second quarter. Provision dropped $766.0 million due to reserve reductions of approximately $560.0 million this quarter, which occurred in consumer credit card, consumer lending, and small business as delinquencies improved. I will come back to this in a minute, as we actually reduced reserves $1.2 billion but we had to put up reserves of about $600.0 million associated with maturing credit card securitizations. Average managed consumer credit outstandings were down 2.4% from the second quarter to $168.0 billion. In the third quarter retail purchase volume—and this will be both debit and credit volume—was flat with the second quarter, although down 7% from a year ago. We continue to add new accounts. 700,000 new domestic retail and small business credit card accounts in the quarter with credit lines of approximately $4.5 billion. Now home loans and insurance—and you can see this on Slide 10—experienced an increase in mortgage rates for most of the quarter although we have seen a drop in the 30-year fixed rate closer to 5% at the end of the quarter. As a result, total revenue for the quarter was $3.4 billion, down $1.0 billion from second quarter levels due to lower production and lower MSR hedge results. Production revenue decreased $565.0 million due to the lower volumes and margins. Servicing income decreased $672.0 million, primarily due to lower MSR performance, net of hedge results, reported in the line of business. As forecasted HPI, or the Home Price Index, improvements hurt our MSR valuation. HPI improvements increase the change of repayment or refinance, thereby increasing projected prepays fees. Now the capitalization rate for the consumer mortgage MSR asset ended the quarter 102 basis points, down 7 basis points from the second quarter. Provision increased $171.0 million to $2.9 billion and reflected an addition to the reserves of $900.0 million, most of which was associated with the home equity purchased impaired, or the SOP 03-3 portfolios. Total first mortgage fundings in the quarter were $96.0 billion, down 14% from second quarter, or $111.0 billion. Approximately 39% of the fundings were for home purchases versus approximately 30% in the second quarter. And we continue to maintain strong market share during the quarter, estimated to be in excess of 20%. And although we've seen volatility in the rate environment, and it has started to cause the re-fi volumes to trail off for most of the third quarter, we have observed volumes picking up with the recent decline in rates. Global Wealth and Investment Management—and you can see this on Slide 11—earned $271.0 million in the third quarter, down from second quarter levels due mainly to higher provision expense. Growth in asset management fees and brokerage income was more than offset by additional Columbia cash support to purchase all remaining SIV, or structured investment vehicle, exposure and other troubled assets, principally from certain cash funds. Provision was up $277.0 million due to the charge-off of a single commercial client and higher additions to the reserve. Assets under management ended the quarter at $740.0 billion, up $35.0 billion from the end of June as the improvement in market valuations more than offset outflows from the money market funds. We ended the quarter with approximately 15,000 financial advisors, flat with the end of June and an indication of ongoing stabilization in that group. Also, as you already know, we finalized details on the sale of the long-term asset management business of Columbia to Ameriprise, that's expected to close in the second quarter of next year. These are in the low end of the range we disclosed, think of this as having minimal P&L impact but monetizing nearly $800.0 million of goodwill and intangibles, thereby improving capital slightly. Now Global Banking—and you can see this on Slide 12, and remember it encompasses our commercial bank, corporate bank, and the investment bank—essentially broke even in the quarter with $40.0 million in net income, down from the second quarter due to the absence of the gain from the sale of our merchant processing business to a joint venture. Loan spreads continued to widen as facilities were re-priced at higher market rates. Although commercial and corporate clients are being cautious, given the economy, and balances are down, we continue to see improved credit spreads as market prices reflect underlying risks. Provision expense decreased 9% to $2.3 billion but still included a sizeable reserve addition during the quarter of $592.0 million, mainly associated with commercial real estate. Average loans as reported for the quarter were down 4% from the second quarter as clients continued to aggressively manage working capital and operating capacity levels. Significant bond issuance for loan repayments also impacted balances. However, average deposit levels increased $10.0 billion, or 5%, from the second quarter levels. Investment banking fees—and this is across the corporation—were down $392.0 million—and this is detailed on Slide 13—to $1.3 billion versus the second quarter but still represented a strong quarter in our mind given the seasonal trends. The combined Bank of America/Merrill Lynch franchise ranked number one in high-yield debt, leveraged loans, and MBS, number two in ABS and syndicated loans, and ranked number three in global, and number two in U.S. investment banking fees for the first nine months of 2009. Global markets on Slide 14 earned $2.2 billion in the third quarter, up $800.0 million, or 58%, versus the second quarter. Strong sales and trading results, which you can see on Slide 15, combined with lower market disruption charges, drove the increase. Risk-weighted assets declined 5% reflecting a more efficient use of the balance sheet and market value changes. As you can see on Slide 15, sales and trading revenue in the third quarter was $5.3 billion versus $3.9 billion in the second quarter. Lower credit valuation adjustments on derivative liabilities, which were an actual negative mark in the quarter of approximately $700.0 million, and lower market disruption charges, where we had an actual positive mark of approximately $200.0 million in the quarter, helped this quarter. But even so, results were better than we expected, given the normal seasonal slowdown. Structured products, rates and currencies, and equity trading all improved versus the second quarter. Non-interest expense was down from the prior quarter due to merger-related cost saves and a change in compensation that delivers a greater portion of incentive pay over time. We detail on Slides 16 and 17 a number of the most pertinent legacy exposures in the capital markets business. I won't go into detail, but as you will see, most of the exposure showed improvement or reductions versus the second quarter. Not included in the six business segments is equity investment income of $886.0 million in the third quarter, due mainly to improved market valuations. In addition, on a consolidated basis we had security gains of approximately $1.6 billion, partially offset by impairment charges on non-agency RMBS of $411.0 million. Now let me switch to credit quality, and this starts on Slide 19. Consumers continue to experience stress from higher unemployment and under-employment levels, ongoing high bankruptcy levels, as well as depressed home prices, leading to higher losses in almost all of our consumer portfolios. Likewise, commercial portfolios reported higher charge-offs as a result of the prolonged recession and the impacts of continued stress on the consumer- and housing-related sectors and deterioration in non-home builder commercial real estate. Third quarter provision of $11.7 billion exceeded net charge-offs, reflecting the addition of $2.1 billion to the reserve, which was lower than the addition of $4.7 billion in the second quarter. We even had reserve reductions in certain portfolios. Consumer reserve additions were $1.5 billion, $1.3 billion associated with the reduction and expected principal cash flows on the Countrywide purchased impaired portfolio, $660.0 million for consumer real estate loans, $600.0 million associated with card securitizations that matured and came on the balance sheet during the quarter, offset by reductions in the allowance for credit cards that were already on the balance sheet and where delinquencies improved $600.0 million. And a reduction in the allowance for consumer lending and dealer financial services of $530.0 million. Commercial reserve additions were approximately $600.0 million, essentially all earmarked for commercial real estate, although a decrease of $140.0 million in reserves for small business were offset by an increase in other non-real estate commercial. Our allowance for loan and lease losses now stands at $35.8 billion, or almost 4% of our loan and lease portfolio. Our reserve for unfunded commitments now stands at $1.6 billion, bringing the total reserve to $37.4 billion. Now we expect some reserve increases, including reserves for maturing card securitizations, for the next quarter or two, but as Ken said, at levels reduced from the current quarter. Now even though the economy has shown some signs of stabilization that point toward recovery, the ultimate level of credit losses and reserve additions will be dependent upon whether the stabilization is sustained, as well as the duration of the credit cycle. And I should note here that my comments about future reserve additions do not take into account the impact of FAS 166 and 167 that will be implemented next year and will result in the consolidation of certain assets such as the credit card trust on the balance sheet. Now the held-basis net charge-offs across all businesses in the quarter increased $923.0 million, or 49 basis points, from the second quarter levels, to 4.13% of the portfolio, or $9.6 billion. On a managed basis, overall consolidated net losses in the quarter increased $1.2 billion to $12.9 billion. Of the $1.2 billion increase, the consumer increase was almost 60%, or $720.0 million. Now due to the reduction in balances, principally in unsecured products, the loss rates are somewhat distorted so that's why I'm talking in dollar terms. Credit card represents 53% of total managed consumer losses, and as you can see on Slide 21, managed consumer credit card net losses were $5.5 billion compared to $5.0 billion in the second quarter. Losses increased due to a jump in early-stage delinquencies in late 2008 and early 2009. If you couple that with the 180-day charge-off policy, you can see why losses increased this quarter. 30-day-plus delinquencies in consumer credit card decreased $868.0 million, the second consecutive quarterly drop, leading to the reserve actions I mentioned earlier. Now, we continue to be cautiously optimistic that delinquency trends signal a stabilization in losses, however, as I mentioned earlier, delayed recovery in the U.S. economy beyond expectations or unforeseen events could obviously keep pressure on this performance. Credit quality in our consumer real estate business continued to deteriorate in the third quarter. But before I get into individual consumer real products, let me remind you of a couple of important drivers, as I did last quarter. Total consumer NPAs, which are highlighted on Slide 22, increased $1.9 billion in the third quarter compared to an increase of $3.2 billion in the second quarter, and now total $21.0 billion. This is primarily comprised of consumer real estate with the lion's share being first mortgage. Now there are a number of things affecting this portfolio that as a reminder we generally place consumer real estate on non-performing at 90 days past due and take charge offs at 180 days, at which time we write the loans down to appraised value. We perform quarterly valuation refreshes, taking additional write-downs as needed. We also have troubled debt restructurings, or TDRs, which we explained last quarter, that reflected as NPAs, even though most were not 90 days past due when the restructuring or modification was made. While are efforts are to responsibly keep borrowers in their homes and paying, as we think that reduces the overall costs, the impact is that the NPA number is elevated. Now, former moratoriums on foreclosures have been lifted as the MHA program and other modification efforts are now up and running, therefore once a loan has been evaluated under all the various programs, if no other alternative exists, that loan will be released into foreclosure. Now our residential mortgage portfolio—and I'm on Slide 23 now—showed an increase of $162.0 million in losses to $1.2 billion, or 205 basis points, an increase of half as much as we saw in the second quarter. Much of the increase was driven by a revision of our estimate of the impact of the REO process and what that has on net realizable value. Absent that catch-up adjustment, charge-offs were virtually flat at $1.1 billion, or 180 basis points. 30+ delinquencies rose $1.9 billion, representing the repurchase of delinquent government insured, or guaranteed, loans from securitizations. Excluding the repurchase, 30-day delinquencies were up slightly, about $139.0 million. Now on the non-performing asset front, we saw an increase of $2.0 billion, less than the $2.8 billion in the second quarter. Non-performing TDRs increased $841.0 million in the quarter. Approximately 60% of the new TDRs into nonperforming were performing at the time of reclassifications. Of the $16.5 billion of residential mortgage in NPAs, TDRs make up 18%. Now, about 57%, or $9.4 billion of the NPAs are greater than 180 days past due and have been written down to appraised values, which should be considered when evaluating reserve adequacy. I should also note that we saw stability in both severity and average size of charge-offs this quarter. Our reserve levels were increased on this portfolio during the quarter and represent 1.87% of period end loan balances versus 1.67% in June. Now, given the weakness in the economy and the continued pressure on home prices, we may see continued deterioration in this portfolio, and therefore may add further additions to the reserve. Now switching specifically to home equity—and I'm back on Slide 24—net charge-offs increased $131.0 million to $1.97 billion in the third quarter. However, we accelerated charge-offs of $223.0 million during the quarter related to an adjustment to our loss severities due to the protracted nature of collection under some insurance contracts. Excluding that adjustment, net charge-offs would have dropped in the quarter. 30+ performing delinquencies are up $184.0 million, or 15 basis points, to 1.4%. Non-performing assets in home equity, principally loans greater than 90 days past due, decreased to $3.8 billion, a decrease of $146.0 million, which is the first decrease since the start of this credit cycle. Now as I explained last quarter, we've been working with borrowers to modify their loans to terms that better align with their ability to pay. When we do that, under most circumstances the loans are identified as TDRs. Non-performing TDRs in home equity increased $218.0 million. Almost 90% of the modified home equity loans were performing at the time of reclassification into TDRs, elevating NPA levels. Now to give you some color, TDRs, where we have improved the likelihood of repayment, make up 43% of home equity NPAs. In addition, about 17%, or 656.0 million of the NPAs are greater than 180 days past due and have been written down to appraised values. We increased reserves for this portfolio to $9.7 billion, or 6.39% of ending balances, and that would be 5.12%, excluding the purchase-impaired one, due to further deterioration in the purchased-impaired portfolio and continued to elevated levels of delinquency on the rest of the portfolio, while delinquency growth has slowed versus the previous quarter, delinquency levels continue to be elevated. On Slide 25 we provide you details on our direct and indirect loans, which includes the auto- and other-dealer-related portfolios as well as consumer lending. Net charge-offs in dealer financed decreased 3% to $194.0 million, or 1.85% of the portfolio, as we've experienced improved collateral values. We saw the expected leveling off in consumer lending charge offs and expect them to decrease due to the improvements in delinquent amounts. Slide 26 shows the details of the purchased impaired Countrywide portfolio, which shows lower charge-offs but with actual trends of frequency and severity continuing above our expectations, we added $1.3 billion to the allowance on this portfolio. We have provided more details on the slide for you given the charge this quarter so I won't go through that in detail. In looking forward, I would say this portfolio's valuation—and remember the purchased impaired portfolio is a life-alone reserved portfolio—is more sensitive to HPI and our success under the modification programs. We would also expect a lion's share of the charge-offs to come through in the next few quarters. Now similar factors for the drivers behind our valuation of non-agency CMO securities, which drove the OTTI charge that I mentioned earlier. Switching to our commercial portfolios—and you can see this on Slide 29—net charge-offs increased in the quarter to $2.6 billion, or 309 basis points, up in dollar terms about 25% from the second quarter. Net losses in our $18.0 billion small business portfolio, which are reported as commercial loan losses, increased $23.0 million, to $796.0 million, compared to an increase of $140.0 million in the second quarter. As we've discussed before, many of the issues in small business relate to how we grew the portfolio over the past few years, which is now compounded by the current economic trends. However, we think we are close to the peak in small businesses losses as indicated by several linked quarter declines in 30+ delinquencies, as well as 90+ delinquencies, which are down more than 10%. Our current allowance for small business stands at 15% of the portfolio. Now excluding small business, commercial net charge-offs increased $505.0 million from the second quarter to $1.8 billion, representing a charge-off ratio of 228 basis points. The losses in the quarter were split almost equally between non-real estate, which is about 52%, and real estate. Of the $261.0 million increase in non-real estate losses, 72% was driven by two fraud-related losses. And within commercial real estate, net charge-offs increased $244.0 million to $873.0 million, representing a charge-off ratio of 4.67%. Now this is the first quarter that non-home builder losses now constitute a majority, or 57%, of our commercial real estate losses. The increase in net charge-offs from the non-home builder portion of the portfolio was driven primarily by multi-family rental and multi-use property types. Commercial NPAs—and this is detailed on Slide 30—rose approximately $1.0 billion, an increase of just about half of the second quarter, to $12.9 billion, or $12.7 billion excluding small business. 44% of the increase was due to commercial real estate, driven by non-home builder exposures. Home builders actually dropped again this quarter. Now let me give you some color behind the make-up of our commercial NPAs. Commercial real estate makes up about 59% of the balance, or about $7.6 billion, with a little less than half of that being home builders. Outside of commercial real estate, the balance is concentrated in housing-related and consumer-dependent portfolios within commercial/domestic. NPAs are most significant in commercial services and supplies—think realtors, employment agencies, office supplies, etc.—at 6% of the total commercial NPAs, followed by individuals in trust at 4% and vehicle dealers and media at 2% each. No other industry comprised greater than 2%. Now just over 90% of commercial NPAs are collateralized and approximately 34% are contractually current. Total commercial NPAs are carried at about 75% of original value before considering loan loss reserves. The reservable criticized utilized exposure in our commercial book increased $2.9 billion in the third quarter compared to an increase of $8.5 billion in the second quarter and is the lowest increase since the fourth quarter of 2007. However, it was still an increase and reflective of the continued deterioration in the U.S. economy with about 60% of the increase being real estate. Commercial real estate criticized increased $1.7 billion to $29.9 billion. While home builders with $6.7 billion still represent the largest concentration, we actually saw a reduction there of about $670.0 million. The largest increases were in office, multi-family rental, and multi-use properties. Outside of commercial real estate we saw further weakening and, again, housing-related and consumer-dependent businesses. 85% of the assets in commercial reservable criticized are secured, of which approximately 10% is our highly secured asset-based lending business. Now while we obviously will see some continued deterioration, our past rated credit discussion over the past couple of quarters have felt much better, which is translating to lower flows into criticized. And as I mentioned earlier, we added to commercial reserves in the third quarter, of which almost all was related to commercial real estate. Total commercial reserve coverage at the end of September increased to 2.76% of loans. Then we move from credit quality and talk about net interest income—and here I'm on Slide 32—compared to the second quarter on a managed and FTE basis, net interest income was down $356.0 million. Managed core NII dropped approximately $283.0 million while market-based NII dropped by $73.0 million. The core NII decrease was mainly due to lower loan levels, almost across the board, due to weaker demand, and the impact of our earlier deleveraging of the LM[?] portfolio, partially offset by the impact of the favorable rate environment and improved pricing. Also impacting our net interest income was the drag from asset quality, both non-performing as well as interest reversals. This negative impact on core managed NII in the third quarter was $1.15 billion due to non-performing assets, approximately $330.0 million in interest reversals, approximately $820.0 million. Combined, this impact was approximately $40.0 million worse than the second quarter. Now, most of the interest reversals relate to the credit card business. The core net interest margin on a managed basis decreased 6 basis points to 3.65% due mainly to lower loan levels and higher-yielding assets such as cards. Now turning to our interest rate risk position, we continue to be asset sensitive where we benefit is rates rise and are exposed as rated decline. As you can see from the bubble chart on Slide 34, which as you know is based on the forward curve, our interest rate risk position is slightly more asset-sensitive relative to how we were positioned three months ago. The change in sensitivity is primarily due to a lower level of rates. Given how low rates are, we remain flush with liquidity and believe an asset-sensitive position makes sense, as we are positioned to benefit as rates rise in the future. Now let me say a few things about capital—and you can see this on Slide 37—the Tier 1 capital ratio at the end of September was 12.46%, up 53 basis points from the second quarter, due mainly to managing the size of our balance sheet. Our Tier 1 capital level is $100.0 billion in excess of the 6% well-capitalized minimum requirement. Tier 1 common increased 35 basis points to 7.25% while our tangible common equity ratio increased at 4.82%. Tangible common equity rose as a result of improved valuations in securities available for sale, which increased OCI. As a reminder, the appreciation above our current values for either Black Rock or China Construction Bank is not included in OCI. Preferred dividends this quarter were $1.24 billion, of which almost $900.0 million is associated with TARP preferred, or $0.10 per share per quarter, given no tax benefit. I remind you that this is up from the second quarter due to the preferred exchanges for common in the second period which recognized the discounts from the exchange. This level of preferred dividends in the third quarter is expected to remain about the same next quarter. Now going forward into the final quarter of 2009 and in line with Ken's remarks, we believe we are at a peak in total credit losses, or at least very close to it. Having said that, it's difficult to call a specific quarter when credit costs start to drop substantially from the peak. Excluding the purchased impaired portfolio and the amount we put up for maturing securitizations, reserve additions would have been minimal this quarter. And once we hit the inflection point on losses where we no longer have to build reserves, we should get some lift. We improved our strong balance sheet again this quarter with a robust and even more conservative liquidity position, stronger credit reserves, and higher capital ratios. With credit losses possibly peaking soon, we believe the level of our reserves and revenue generation over the next several quarters will enable us to get through the period with minimal impact on capital levels. Merrill Lynch once again contributed positively to earnings and has done so over the first nine months of the year. The Merrill Lynch integration effort is on track and continues to make headway. With Countrywide we are in the process of launching significant system conversions over the next several quarters and plan to finalize the Countrywide integration by June of next year. Cost saves at Merrill were approximately $1.0 billion this quarter, or $2.2 billion for nine months, so we're well on our way towards exceeding 45% of the total cost saves, which were projected at $7.0 billion annually in 2009 and well ahead of our original 2009 goal. We continue to see decent business momentum this quarter and with further stabilization in both the economy and credit quality we can continue to improve our competitive position, which should enhance the bottom-line. With that, we will open up for questions.