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Spokeswoman Colleen Haggerty said the decline from $758 billion in 2009 reflected lower demand for loans in the first half of 2010. She said there were sequential increases in lending in each of the four quarters in 2010.

The bank extended nearly $188 billion in credit in the final quarter of 2010, a 4.5 percent increase over the same period a year ago. That included $85 billion in first mortgages, $15 billion to nonprofit, government and anchor institutions, and $75 million to community development financial institutions that provide loans for low- and moderate-income families and small businesses.

Bank of America also completed 76,000 mortgage modifications in the fourth quarter. The bank so far has completed 775,000 loan modifications since January 2008.

Shares of the bank added 44 cents, or 3 percent, to $14.72 in midday trading.