Bank Of America Earns Us$3.2 Billion In Second Quarter

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17th July 2009, 11:22pm - Views: 1408





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MEDIA RELEASE PR35424


Bank of America Earns US$3.2 Billion in Second Quarter


CHARLOTTE, N.C., July 17 /PRNewswire-AsiaNet/ --


              Strong Pretax, Pre-provision Income of US$16 Billion


             Another Good Quarter in Capital Markets and Home Loans


        Enhanced Capital Strength, Tier 1 Capital Ratio at 11.93 Percent


        Extends More Than US$211 Billion in Credit in the Second Quarter


                   Adds US$4.7 Billion to Credit Loss Reserves



    Bank of America Corporation today reported second-quarter 2009 net income 

of US$3.2 billion. After deducting preferred dividends of US$805 million, 

including US$713 million paid to the U.S. government, diluted earnings per 

share were US$0.33.




    Those results compared with net income of US$3.4 billion, or diluted

earnings per share of US$0.72 during the year-ago period.


    For the first half of 2009, Bank of America earned US$7.5 billion, or

US$0.75 per share.


    Results were driven by continued strong revenue performance in the

wholesale capital markets businesses as well as in home loans, complemented

by the previously announced gains on the sale of China Construction Bank

(CCB) shares and the sale of the company's merchant processing business to a

joint venture. These positives were somewhat offset by continuing high credit

costs, including additions to the reserve for loan and lease losses, as well

as significant negative credit valuation adjustments on certain liabilities

including the Merrill Lynch structured notes and the impact of a special

Federal Deposit Insurance Corp. (FDIC) assessment.


    Bank of America finished the second quarter with its strongest capital

position in recent memory, with a Tier 1 Capital ratio of 11.93 percent as

well as a leading liquidity position among global banks.


    "Having positive net income in an extremely challenging environment

speaks to the diversity and strength of our business model as well as the

extraordinary effort put forth by all of our associates," said Kenneth D.

Lewis, chief executive officer and president. "Our goals during this

difficult time have been to enhance the strength of our balance sheet and

capital position and to continue to improve our earning power while dealing

with the credit issues facing our industry due to the recession.


    "Difficult challenges lie ahead from continued weakness in the global

economy, rising unemployment and deteriorating credit quality that will

affect our performance for the rest of the year and into 2010," Lewis said.

"However, we are convinced that Bank of America will weather the storm and

emerge as an acknowledged leader in financial services in the United States

and around the world."


    "Most importantly, we continue to serve our customers and clients around

the world every day, helping them with their accounts, meeting their

financial needs and adding new business," Lewis added.


    Second Quarter 2009 Business Highlights

    

    - Bank of America increased its Tier 1 common capital by nearly

      US$40 billion through multiple actions during the quarter that included

      issuing shares of common stock, exchanging certain non-government

      preferred stock for common stock, and asset sales.


    - Bank of America Merrill Lynch ranked No. 1 in high-yield debt

      and leveraged loans based on volume, and the firm was No. 2 and No. 3,

      respectively, in U.S. and global investment banking fees for the first

      half of 2009, according to second quarter league tables.


    - Sales and trading revenue, excluding credit valuation adjustments on 

      derivative liabilities and market disruption charges, rose

      to a record US$6.7 billion.


    - During the quarter, Bank of America announced the sale of its

      merchant processing business to a joint venture, which included First

      Data Corp. The transaction is expected to deliver next-generation

      payments solutions to merchants.


    - Bank of America funded US$110.6 billion in first mortgages, helping

      nearly 500,000 people either purchase a home or refinance their existing

      mortgage, including US$24.3 billion in mortgages made to 154,000 

      low- and moderate-income borrowers. Approximately 29 percent of first 

      mortgages were for purchases.


    - Credit extended during the quarter, including commercial renewals of

      US$55 billion, was more than US$211 billion, compared with US$183 

      billion in the first quarter. New credit included US$111 billion in 

      mortgages, US$78 billion in commercial non-real estate, approximately 

      US$9 billion in commercial real estate, US$4 billion in domestic and 

      small business card, US$4 billion in home equity products and more than 

      US$5 billion in other consumer credit.(1)


    - During the second quarter, Small Business Banking extended more than

      US$580 million in new credit comprised of credit cards, loans and lines 

      of credit to more than 35,000 customers.


    - To help homeowners avoid foreclosure, Bank of America has provided rate

      relief or agreed to modifications with approximately 150,000 customers 

      for the first six months of 2009, compared with more than 230,000 for 

      all of 2008 for Bank of America and Countrywide. In addition, 

      approximately 80,000 Bank of America customers are already in a trial 

      period modification or were in the process of responding to an offer 

      under the Making Home Affordable program through mid-July.


    - Average retail deposits in the quarter increased US$136.3

      billion, or 26 percent, from a year earlier, including US$104.3 billion

      in balances from Merrill Lynch and Countrywide. Excluding Countrywide 

      and Merrill Lynch, Bank of America grew retail deposits US$32.0 

      billion, or 6 percent, from the year-ago quarter.


    (1) Preliminary data as of July 17, 2009



    Transition Update

    The Merrill Lynch integration is on track and meeting expected goals. The

company in 2009 expects to achieve in excess of 40 percent of the previously

announced goal of approximately US$7 billion in cost savings, ahead of the

original goal of 25 percent for the year.


    Since June 1, approximately 6,500 affluent banking-only clients in Bank

of America have been referred to Merrill Lynch financial advisors. Of that

group, approximately 1,400 now have added an investment relationship with the

company. Merrill Lynch financial advisors referred more than 1,100 clients to

the commercial bank of Bank of America.


    The Countrywide transition and related cost savings are on track.


    The new Bank of America Home Loans and Insurance brand was introduced to

consumers during the quarter as part of the transition.


    Second Quarter 2009 Financial Summary


    Revenue and Expense

    Revenue net of interest expense on a fully taxable-equivalent basis rose

60 percent to US$33.1 billion compared with US$20.7 billion a year ago.


    Net interest income on a fully taxable-equivalent basis rose 9 percent to

US$11.9 billion from US$10.9 billion in the second quarter of 2008 due to an

improved rate environment and the addition of Countrywide and Merrill Lynch.

These improvements were partially offset by a shift in loan mix and the sale

of securities. Net interest yield narrowed 28 basis points to 2.64 percent

due to the addition of lower yielding assets from Countrywide and Merrill

Lynch, sales of securities, and a shift in loan mix, partially offset by the

favorable rate environment.


    Noninterest income rose to US$21.1 billion from US$9.8 billion a year

earlier. Higher mortgage banking income, trading account profits and

investment and brokerage services income reflected the addition of Merrill

Lynch and Countrywide. Additionally, the increase was driven by a US$5.3

billion pretax gain on the sale of CCB shares. Bank of America continues to

own approximately 11 percent of the common shares of CCB. Noninterest income

in the period also included a US$3.8 billion pretax gain from the completed

sale of the merchant processing business to a joint venture. These increases

were partially offset by US$3.6 billion in losses related to mark-to-market

adjustments including the Merrill Lynch structured notes as a result of

narrowing credit spreads during the quarter. Card income declined due to

higher credit losses on securitized credit card loans and lower fee income.


    Noninterest expense increased to US$17.0 billion from US$9.7 billion a

year earlier. This reflects higher personnel and general operating expenses,

driven in part by the Merrill Lynch and Countrywide acquisitions and the FDIC

special assessment. Pretax merger and restructuring charges rose to US$829

million from US$212 million a year earlier.


    The efficiency ratio on a fully taxable-equivalent basis was 51.44

percent compared with 46.60 percent a year earlier.


    Pretax, pre-provision income on a fully-taxable equivalent basis was

US$16.1 billion compared with US$11.1 billion a year earlier.


    Credit Quality

    Credit quality deteriorated further as the economic environment weakened.

Consumers remained under significant stress as unemployment and

underemployment increased and individuals spent longer periods without work.

These conditions led to higher losses in almost all consumer portfolios

compared with the prior quarter.


    Declining home values and reduced spending by consumers and businesses

negatively impacted the commercial portfolios resulting in broad-based

increases in criticized and nonperforming loans. Commercial loan losses rose

from the prior quarter as commercial domestic and small business portfolios

were impacted in sectors dependent on discretionary consumer spending. Losses

in the commercial real estate portfolio also increased.


    The provision for credit losses was US$13.4 billion, flat with the first

quarter. Credit losses were higher than the prior quarter and reserves, which

were increased by US$4.7 billion, were added across most consumer portfolios

and the commercial portfolio reflecting the impact of the weak economy.

Nonperforming assets were US$31.0 billion compared with US$25.6 billion at

March 31, 2009, reflecting the continued deterioration in economic

conditions. The 2009 coverage ratios and amounts shown in the following table

include Merrill Lynch.



    Credit Quality


    (Dollars in millions)         Q2 2009          Q1 2009          Q2 2008

    ---------------------         -------          -------          -------

    Provision for credit

     losses                       $13,375          $13,380           $5,830


    Net Charge-offs                 8,701            6,942            3,619

    Net Charge-off

     ratios(1)                       3.64%            2.85%            1.67%


    Total managed net

     losses                       $11,684           $9,124           $5,262

    Total managed net

     loss ratio(1)                   4.42%            3.40%            2.16%



                               At 6/30/09       At 3/31/09       At 6/30/08

                               ----------       ----------       ----------

    Nonperforming assets          $30,982          $25,632           $9,749

    Nonperforming

     assets ratio(2)                 3.31%            2.64%            1.13%


    Allowance for loan

     and lease losses             $33,785          $29,048          $17,130

    Allowance for

     loan and lease

     losses ratio(3)                 3.61%            3.00%            1.98%


     (1) Net charge-off/loss ratios are calculated as annualized held net 

         charge-offs or managed net losses divided by average outstanding 

         held or managed loans and leases during the period.

     (2) Nonperforming assets ratios are calculated as nonperforming assets

         divided by outstanding loans, leases and foreclosed properties at 

         the end of the period.

     (3) Allowance for loan and lease losses ratios are calculated as 

         allowance for loan and leases losses divided by loans and leases 

         outstanding at the end of the period.


    Note: Ratios do not include loans measured at fair value in accordance

          with SFAS 159.


    Capital Management

    Total shareholders' equity was $255.2 billion at June 30. Period-end

assets were $2.3 trillion. The Tier 1 Capital ratio was 11.93 percent, up

from 10.09 percent at March 31, 2009 and from 8.25 percent a year ago. The

Tier 1 Common ratio was 6.90 percent, compared with 4.49 percent at March 31,

2009 and 4.78 percent at June 30, 2008. The Tangible Common Equity ratio was

4.67 percent, up from 3.13 percent at March 31, 2009 and 3.24 percent a year

earlier. Tangible book value per share of common stock was $11.66, compared

with $10.88 at March 31, 2009 and $11.87 a year earlier.


    During the quarter the bank increased its Tier 1 common capital by nearly

$40 billion, easily exceeding the $33.9 billion Supervisory Capital

Assessment Program (SCAP) buffer set by the Federal Reserve in May. Actions

contributing toward that goal during the quarter included: issuing shares of

common stock; exchanging certain non-government preferred stock for common

stock; the sale of a portion of shares in CCB; and the sale of the company's

merchant processing business to a joint venture.


    During the quarter, Bank of America issued 1.25 billion, or $13.5

billion, of common shares. Bank of America exchanged the equivalent of $14.8

billion of non-government preferred shares for approximately 1 billion shares

of common stock through private exchanges and a tender offer. A cash dividend

of $0.01 per common share was paid. The company recorded $1.4 billion in

preferred dividends, partially offset by $576 million related to the exchange

of preferred stock in the calculation of net income available to common

shareholders. Period-end common shares issued and outstanding were 8.65

billion for the second quarter of 2009, 6.40 billion for the first quarter of

2009 and 4.45 billion for the year-ago quarter.


    Second Quarter 2009 Business Segment Results


    Deposits

    (Dollars in millions)                       Q2 2009              Q2 2008

    --------------------                        -------              -------

    Total revenue, net of

     interest expense(1)                         $3,495               $4,400


    Provision for credit losses                      96                   89

    Noninterest expense                           2,649                2,324


    Net income                                      505                1,238


    Efficiency ratio(1)                           75.80%               52.82%

    Return on average equity                       8.58                20.30


    Deposits(2)                                $417,114             $337,253



                                             At 6/30/09           At 6/30/08

                                             ----------           ----------

    Period-ending deposits                     $423,192             $336,136


    (1) Fully taxable-equivalent basis

    (2) Balances averaged for period



    Deposits net income fell 59 percent from a year ago on lower revenue and

higher noninterest expense. Revenue declined as a result of lower residual

net interest income allocation related to asset and liability management

activities and spread compression due to declining interest rates.

Noninterest expense rose mainly from the FDIC special assessment.


    Average customer deposits rose 24 percent, or $79.9 billion, from a year

earlier on strong organic growth, the transfer of client deposits from Global

Wealth and Investment Management and the acquisition of Countrywide.

    

    Global Card Services


    (Dollars in millions)                       Q2 2009              Q2 2008

    --------------------                        -------              -------

    Total managed revenue, net

     of interest expense(1),(2)                  $7,337               $7,500


    Provision for credit

     losses(3)                                    7,741                4,259

    Noninterest expense                           1,976                2,375


    Net income (loss)                            (1,618)                 582


    Efficiency ratio(2)                           26.93%               31.67%

    Return on average equity                        n/m                 6.01


    Managed loans(4)                           $220,365             $238,918



                                             At 6/30/09           At 6/30/08

                                             ----------           ----------

    Period-ending loans                        $215,904             $240,617


     (1) Managed basis.  Managed basis assumes that credit card loans that 

         have been securitized 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.  For more information and detailed

         reconciliation, please refer to the data pages supplied with this 

         press release.

     (2) Fully taxable-equivalent basis

     (3) Represents provision for credit losses on held loans combined with 

         realized credit losses associated with the securitized credit card 

         loan portfolio

     (4) Balances averaged for period

     n/m = not meaningful 



    Global Card Services swung to a net loss of $1.6 billion as credit costs

rose in the weakening economies in the U.S., Europe and Canada. Managed net

revenue declined 2 percent to $7.3 billion mainly due to lower fee income

partially offset by higher net interest income, as lower funding costs

outpaced the decline in average managed loans.


    Provision expense increased to $7.7 billion from a year earlier as the

consumer card and consumer lending portfolios deteriorated due to the

economic conditions and a rising level of bankruptcies. Also contributing

were reserve additions related to maturing securitizations.


    Noninterest expense fell 17 percent on lower operating and marketing

costs.

    

    Home Loans and Insurance


    (Dollars in millions)                       Q2 2009              Q2 2008

    --------------------                        -------              -------

    Total revenue, net of

     interest expense(1)                         $4,461               $1,261


    Provision for credit losses                   2,726                2,034

    Noninterest expense                           2,829                  732


    Net income (loss)                              (725)                (948)


    Efficiency ratio(1)                           63.41%               58.02%

    Return on average equity                        n/m                  n/m


    Loans(2)                                   $131,509              $91,199



                                             At 6/30/09           At 6/30/08

                                             ----------           ----------

    Period-ending loans                        $131,120              $92,064


     (1) Fully taxable-equivalent basis

     (2) Balances averaged for period

     n/m = not meaningful


    The net loss in Home Loans and Insurance narrowed as higher revenue was

mostly offset by increased credit costs and noninterest expense. Net revenue

rose mainly due to the acquisition of Countrywide and higher mortgage banking

income as lower interest rates spurred an increase in refinance activity.


    The provision for credit losses increased to $2.7 billion driven by

economic weakness and falling home prices.


    Noninterest expense increased to $2.8 billion mostly due to the

acquisition of Countrywide.


    

    Global Banking


    (Dollars in millions)                       Q2 2009              Q2 2008

    --------------------                        -------              -------

    Total revenue, net of

     interest expense(1)                         $8,658               $4,455


    Provision for credit losses                   2,584                  400

    Noninterest expense                           2,232                1,747


    Net income                                    2,487                1,433


    Efficiency ratio(1)                           25.78%               39.24%

    Return on average equity                      16.50                11.85


    Loans and leases(2)                        $323,217             $315,282

    Deposits(2)                                 199,879              169,738


     (1) Fully taxable-equivalent basis

     (2) Balances averaged for period 



    Global Banking net income rose to $2.5 billion, benefitting from a $3.8

billion pretax gain generated by the sale of the company's merchant

processing business to a joint venture, the addition of Merrill Lynch and

strong deposit growth. Higher revenue was partially offset by the challenging

credit environment and the FDIC special assessment.


    The provision for credit losses increased to $2.6 billion, driven by loan

loss reserve increases and higher losses within the commercial domestic

portfolio, which were across a broad range of borrowers and industries. Also

contributing to the increase were higher losses and reserve additions in the

commercial real estate portfolio for deterioration across various property

types.

     

    - Corporate Banking and Investment Banking revenue rose 28

      percent to $2.0 billion as a result of the Merrill Lynch acquisition,

      strong fee growth from debt and equity capital markets, higher deposits

      and a change in deposit mix. These increases were more than offset by

      higher credit costs and the FDIC special assessment.


    - Commercial Banking revenue, excluding the $3.8 billion pretax

      gain associated with the sale of the merchant processing business to a

      joint venture, was $2.9 billion as credit and deposit net interest

      margins improved, offset by lower residual net interest income. Net

      income was negatively impacted by higher credit costs and the FDIC

      special assessment.

         - Note: Total investment banking income, including self-led

           deals, in the quarter of $1.7 billion is shared primarily between

           Global Banking and Global Markets based on an internal fee-sharing

           arrangement between the two segments. Debt and Equity issuance 

           income led to an increase from the year-ago quarter, while 

           advisory fees increased 83 percent, reflecting the larger 

           investment banking platform from the Merrill Lynch acquisition.



    Global Markets


    (Dollars in millions)                       Q2 2009              Q2 2008

    --------------------                        -------              -------

    Total revenue, net of

     interest expense(1)                         $4,452               $1,378


    Provision for credit losses                      (1)                 (38)

    Noninterest expense                           2,559                  951


    Net income                                    1,377                  298


    Efficiency ratio(1)                           57.46%               69.04%

    Return on average equity                      17.81                 9.90


    Trading-related

     assets(2)                                 $503,688             $332,748


     (1) Fully taxable-equivalent basis

     (2) Balances averaged for period



    Global Markets net income increased $1.1 billion. The increase was driven

by the addition of Merrill Lynch and lower market disruption related charges

of $900 million - a portion of the $1.3 billion total for the company. Net

revenue was strong during the period, excluding the credit valuation

adjustment on derivative liabilities and market disruption charges,

surpassing record first-quarter 2009 revenue. Noninterest expense was higher

as a result of the addition of Merrill Lynch.

    

    - Fixed Income, Currency and Commodities revenue of $3.2 billion was

      driven by a more than fourfold increase in sales and trading revenue 

      and by investment banking revenue that nearly doubled. Sales and 

      trading was positively impacted by the addition of Merrill Lynch and an 

      increase in liquidity in certain credit markets. Investment banking 

      fees were positively impacted from the combination of the legacy 

      Merrill Lynch and Bank of America debt issuance capabilities and the 

      opening up of credit issuance markets.


    - Equities revenue of $1.3 billion was driven by the addition of Merrill

      Lynch and the ability to take advantage of the increase in equity flows

      during the quarter, which resulted in higher commission revenue and a

      fivefold increase in equity issuance revenue, partially offset by lower

      market volatility.




    Global Wealth and Investment Management


    (Dollars in millions)                       Q2 2009              Q2 2008

    --------------------                        -------              -------

    Total revenue, net of

     interest expense(1)                         $4,196               $2,295


    Provision for credit losses                     238                  119

    Noninterest expense                           3,304                1,244


    Net income                                      441                  581


    Efficiency ratio(1)                           78.74%               54.21%

    Return on average equity                       9.45                19.84


    Loans(2)                                   $101,748              $87,574

    Deposits(2)                                 214,111              157,113



    (in billions)                            At 6/30/09           At 6/30/08

    ------------                             ----------           ----------


    Assets under management                      $705.2               $589.4

    Total client assets(3)                     $1,824.3               $867.4


     (1) Fully taxable-equivalent basis

     (2) Balances averaged for period

     (3) Client assets are defined as assets under management, client 

         brokerage assets and other assets in custody 


    Global Wealth and Investment Management net income fell 24 percent due to

lower residual net interest income, lower equity market levels, higher credit

costs and the transfer of certain client balances to the Deposits and the

Home Loans and Insurance segments, partially offset by the addition of

Merrill Lynch.


    Net revenue increased to $4.2 billion as investment and brokerage service

income rose and net interest income increased 12 percent due to the addition

of Merrill Lynch.

    

    - Merrill Lynch Global Wealth Management net income declined 15 percent

      to $283 million from a year earlier as the addition of Merrill Lynch 

      was more than offset by the impact of the significant transfer of 

      client balances during the quarter to the Deposits and the Home Loans 

      and Insurance segments and lower net interest income. Net revenue 

      increased to $3.0 billion from $1.1 billion a year ago as investment 

      and brokerage income rose mainly from the addition of Merrill Lynch.


    - U.S. Trust, Bank of America Private Wealth Management net income fell 

      65 percent to $67 million as net revenue declined and credit costs 

      rose. Net revenue fell 13 percent to $674 million driven by reduced

      residual net interest income and the effect of lower equity market

      levels.


    - Columbia Management net income nearly doubled to $72 million

      from a year earlier on lower support for certain cash funds and reduced

      expenses. The increase was partially offset by lower investment and

      brokerage revenue which was mainly impacted by lower equity market

      levels.


    All Other (1),(2)


    (Dollars in millions)                       Q2 2009              Q2 2008

    --------------------                        -------              -------

    Total revenue, net of

     interest expense(3)                           $487                $(563)


    Provision for credit losses                      (9)              (1,033)

    Noninterest expense                           1,471                  286


    Net income                                      757                  226


    Loans and leases(4)                        $159,142             $117,504


     (1) All Other consists primarily of equity investments, the residential

         mortgage portfolio associated with asset and liability management 

         (ALM) activities, the residual impact of the cost allocation process,

         merger and restructuring charges, intersegment eliminations, fair 

         value adjustments related to certain Merrill Lynch structured notes 

         and the results of certain consumer finance, investment management 

         and commercial lending businesses that are being liquidated. All Other

         also includes the offsetting securitization impact to present Global 

         Card Services on a managed basis. For more information and detailed 

         reconciliation, please refer to the data pages supplied with this 

         press release.  

     (2) Effective January 1, 2009, All Other includes the results of First 

         Republic Bank, which was acquired as part of the Merrill Lynch 

         acquisition.  

     (3) Fully taxable-equivalent basis

     (4) Balances averaged for period



    All Other net income increased to $757 million. Higher equity investment

income related to the gain on the sale of CCB shares and increased gains on

the sale of debt securities were partially offset by fair value adjustments

related to certain Merrill Lynch structured notes and

other-than-temporary-impairment charges related to non-agency collateralized

mortgage obligations. The provision for credit losses rose primarily due to

continued deterioration in the residential mortgage portfolio. Noninterest

expense increased mostly on merger and restructuring charges related to the

Merrill Lynch acquisition.


    Note: Chief Executive Officer and President Kenneth D. Lewis and Chief

Financial Officer Joe L. Price will discuss second quarter 2009 results in a

conference call at 9:30 a.m. EDT today. The presentation and supporting

materials can be accessed on the Bank of America Investor Relations Web site

at http://investor.bankofamerica.com. For a listen-only connection to the

conference call, dial +1-877-200-4456 (U.S.) or +1-785-424-1732 

(international) and the conference ID: 79795.


    Bank of America

    Bank of America is one of the world's largest financial institutions,

serving individual consumers, small- and middle-market businesses and large

corporations with a full range of banking, investing, asset management and

other financial and risk management products and services. The company

provides unmatched convenience in the United States, serving approximately 53

million consumer and small business relationships with more than 6,100 retail

banking offices, nearly 18,500 ATMs and award-winning online banking with 29

million active users. Bank of America is among the world's leading wealth

management companies and is a global leader in corporate and investment

banking and trading across a broad range of asset classes serving

corporations, governments, institutions and individuals around the world.

Bank of America offers industry-leading support to more than 4 million small

business owners through a suite of innovative, easy-to-use online products

and services. The company serves clients in more than 150 countries. Bank of

America Corporation stock (NYSE: BAC) is a component of the Dow Jones

Industrial Average and is listed on the New York Stock Exchange.


    Forward-Looking Statements

    Bank of America and its management may make certain statements that

constitute "forward-looking statements" within the meaning of the Private

Securities Litigation reform Act of 1995. These statements are not historical

facts, but instead represent Bank of America's current expectations, plans or

forecasts of its future earnings, integration of acquisitions and related

cost savings, mortgage originations and market share, credit losses, credit

reserves and charge-offs, consumer credit card net loss ratios, mortgage

delinquencies, core net interest income margin and other similar matters.

These statements are not guarantees of future results or performance and

involve certain risks, uncertainties and assumptions that are difficult to

predict and are often beyond Bank of America's control. Actual outcomes and

results may differ materially from those expressed in, or implied by, any of

these forward-looking statements.


    You should not place undue reliance on any forward-looking statement and

should consider all of the following uncertainties and risks, as well as

those more fully discussed under Item 1A. "Risk Factors" of Bank of America's

2008 Annual Report on Form 10-K and in any of Bank of America's subsequent

SEC filings: negative economic conditions that adversely affect the general

economy, housing prices, the job market, consumer confidence and spending

habits; the level and volatility of the capital markets, interest rates,

currency values and other market indices; changes in consumer, investor and

counterparty confidence in, and the related impact on, financial markets and

institutions; Bank of America's credit ratings and the credit ratings of its

securitizations; estimates of fair value of certain Bank of America assets

and liabilities; legislative and regulatory actions in the United States and

internationally; the impact of litigation and regulatory investigations,

including costs, expenses, settlements and judgments; various monetary and

fiscal policies and regulations of the U.S. and non-U.S. governments; changes

in accounting standards, rules and interpretations and the impact on Bank of

America's financial statements; increased globalization of the financial

services industry and competition with other U.S. and international financial

institutions; Bank of America's ability to attract new employees and retain

and motivate existing employees; mergers and acquisitions and their

integration into Bank of America; Bank of America's reputation; and decisions

to downsize, sell or close units or otherwise change the business mix of Bank

of America. Forward-looking statements speak only as of the date they are

made, and Bank of America undertakes no obligation to update any

forward-looking statement to reflect the impact of circumstances or events

that arise after the date the forward-looking statement was made.


    Columbia Management Group, LLC ("Columbia Management") is the primary

investment management division of Bank of America Corporation. Columbia

Management entities furnish investment management services and products for

institutional and individual investors. Columbia Funds and Excelsior Funds

are distributed by Columbia Management Distributors, Inc., member FINRA and

SIPC. Columbia Management Distributors, Inc. is part of Columbia Management

and an affiliate of Bank of America Corporation.


    Investors should carefully consider the investment objectives, risks,

charges and expenses of any Columbia Fund or Excelsior Fund before investing.

Contact your Columbia Management representative for a prospectus, which

contains this and other important information about the fund. Read it

carefully before investing.


    Bank of America Merrill Lynch is the marketing name for the global

banking and global markets businesses of Bank of America Corporation.

Lending, derivatives, and other commercial banking activities are performed

by banking affiliates of Bank of America Corporation, including Bank of

America, N.A., member FDIC. Securities, financial advisory, and other

investment banking activities are performed by investment banking affiliates

of Bank of America Corporation ("Investment Banking Affiliates"), including

Banc of America Securities LLC, and Merrill Lynch, Pierce, Fenner & Smith

Incorporated, which are both registered broker-dealers and members of FINRA

and SIPC. Investment products offered by Investment Banking Affiliates: Are

Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed. Bank of America

Corporation's broker-dealers are not banks and are separate legal entities

from their bank affiliates. The obligations of the broker-dealers are not

obligations of their bank or thrift affiliates (unless explicitly stated

otherwise), and these bank affiliates are not responsible for securities

sold, offered or recommended by the broker-dealers. The foregoing also

applies to our other non-bank, non-thrift affiliates.




    

    Bank of America Corporation and Subsidiaries 

    Selected Financial Data 

    -----------------------

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

                                                                         

    Summary Income              Three Months Ended     Six Months Ended  

     Statement                       June 30               June 30       

    --------------             -------------------    -----------------  

                                   2009       2008       2009       2008 

                                   ----       ----       ----       ---- 


    Net interest income         $11,630    $10,621    $24,127    $20,612 

    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, before                                                     

     merger and                                                          

     restructuring                                                       

     charges                     16,191      9,447     32,428     18,540 

    Merger and restructuring                                             

     charges                        829        212      1,594        382 

                                    ---        ---      -----        --- 

      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 

                                 ======     ======     ======     ====== 

                                                                     

    Earnings per                                                         

     common share                 $0.33      $0.72      $0.75      $0.95 

    Diluted earnings per                                                 

     common share                  0.33       0.72       0.75       0.95 

    

                                                                 

    Summary Average             Three Months Ended     Six Months Ended  

     Balance Sheet                   June 30               June 30       

    ---------------            -------------------    -----------------  

                                   2009       2008       2009       2008 

                                   ----       ----       ----       ----

 

    Total loans and leases     $966,105   $878,639   $980,035   $877,150 

    Debt securities             255,159    235,369    270,618    227,373 

    Total earning assets      1,811,981  1,500,234  1,861,954  1,505,265 

    Total assets              2,420,317  1,754,613  2,469,452  1,759,770 

    Total deposits              974,892    786,002    969,516    786,813 

    Shareholders' equity        242,867    161,428    235,855    158,078 

    Common                                                               

     shareholders'                                                       

     equity                     173,497    140,243    167,153    140,849 


    

                                Three Months Ended     Six Months Ended  

    Performance Ratios               June 30               June 30       

    -------------------        -------------------    -----------------  

                                   2009       2008       2009       2008 

                                   ----       ----       ----       ----

 

    Return on average assets       0.53%      0.78%      0.61%      0.53%

    Return on average common                                             

     shareholders' equity          5.59       9.25       6.31       6.06 

                                                                 

    

                                Three Months Ended     Six Months Ended  

    Credit Quality                   June 30               June 30       

    --------------             -------------------    -----------------  

                                   2009       2008       2009       2008 

                                   ----       ----       ----       ---- 


    Total net charge-offs        $8,701     $3,619    $15,643     $6,334 

    Annualized net charge-                                               

     offs as a % of average                                              

     loans and leases                                                    

     outstanding (1)               3.64%      1.67%      3.24%      1.46%

    Provision for                                                        

     credit losses              $13,375     $5,830    $26,755    $11,840 

    Total consumer                                                       

     credit card                                                         

     managed net losses           5,047      2,751      8,841      5,123 

    Total consumer credit 

     card managed net                                                    

     losses as a % of                                                    

     average managed credit 

     card receivables             11.73%      5.96%     10.16%      5.58%

                                   

                                  

                                       June 30      

                                   ---------------                       

                                   2009       2008                       

                                   ----       ----                       

    Total nonperforming                                                  

     assets                     $30,982     $9,749                       

    Nonperforming assets as                                              

     a % of total loans,                                                 

     leases and foreclosed                                               

     properties (1)                3.31%      1.13%                      

    Allowance for loan                                                   

     and lease losses           $33,785    $17,130                       

    Allowance for loan and                                               

     lease losses as a % of                                              

     total loans and leases                                              

     outstanding (1)               3.61%      1.98%                      

                                                                         


    Capital Management                  June 30      

    ------------------             ---------------                       

                                   2009       2008                       

                                   ----       ----                       

    Risk-based capital                                                   

     ratios:                                                             

      Tier 1                      11.93%      8.25%                      

      Tier 1 common                6.90       4.78                       

      Total                       15.99      12.60                       

    Tangible equity ratio (2)      7.39       4.72                       

    Tangible common equity                                               

     ratio (3)                     4.67       3.24                       

                                                                     

    Period-end common                                                    

     shares issued and                                                   

     outstanding              8,651,459  4,452,947                       

                                           

                          

                                Three Months Ended     Six Months Ended  

                                     June 30               June 30       

                               -------------------    -----------------  

                                   2009       2008       2009       2008 

                                   ----       ----       ----       ---- 


    Shares issued (4)         2,250,509        137  3,634,024     15,062 

    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 

    Dividends paid per                                                   

     common share                 $0.01      $0.64      $0.02      $1.28 


                                                                     

                                      June 30                            

    Summary End of Period          ---------------                       

     Balance Sheet                 2009       2008                       

   

---------------------          ----       ----

                       

    Total loans and leases     $942,248   $870,464                       

    Total debt securities       267,238    249,859                       

    Total earning assets      1,721,618  1,458,796                       

    Total assets              2,254,394  1,716,875                       

    Total deposits              970,742    784,764                       

    Total shareholders'                                                  

     equity                     255,152    162,691                       

    Common shareholders'                                                 

     equity                     196,492    138,540                       

    Book value per share of                                              

     common stock                $22.71     $31.11                       

                                                                     

    ---------------------------------------------------------- 

     (1) Ratios do not include loans measured at fair value in accordance with

         SFAS 159 at and for the three and six months ended June 30, 2009 and

         2008. 

     (2) Tangible equity ratio equals shareholders' equity less goodwill and 

         intangible assets (excluding mortgage servicing rights), net of 

         related deferred tax liabilities divided by total assets less 

         goodwill and intangible assets (excluding mortgage servicing rights),

         net of related deferred tax liabilities. 

     (3) Tangible common equity ratio equals common shareholders' equity less 

         goodwill and intangible assets (excluding mortgage servicing rights),

         net of related deferred tax liabilities divided by total assets less

         goodwill and intangible assets (excluding mortgage servicing rights),

         net of related deferred tax liabilities. 

     (4) 2009 amounts include approximately 1.375 billion shares issued in the

         Merrill Lynch acquisition.



    Certain prior period amounts have been reclassified to conform to current

period presentation.


    Information for periods beginning July 1, 2008 include the Countrywide

acquisition. Information for the period beginning January 1, 2009 includes 

the Merrill Lynch acquisition. Prior periods have not been restated.


    This information is preliminary and based on company data available at

the time of the presentation.


    

    Bank of America Corporation and Subsidiaries        

    Business Segment Results                            

    ------------------------                            

     (Dollars in millions)                               

                                                    

    For the three months                                              

     ended June 30                                                          

                                          Global Card          Home Loans   

                        Deposits        Services (1, 2)       & Insurance

                    --------------      ---------------       -------------

                    2009      2008      2009      2008        2009     2008 

                    ----      ----      ----      ----        ----     ---- 

    Total revenue, 

     net of                                                                   

     interest 

     expense (3)   $3,495    $4,400    $7,337    $7,500      $4,461    $1,261 

    Provision for                                                             

     credit losses     96        89     7,741     4,259       2,726     2,034 

    Noninterest 

     expense        2,649     2,324     1,976     2,375       2,829       732 

    Net income 

     (loss)           505     1,238    (1,618)      582        (725)     (948)

                                                                          

    Efficiency 

     ratio (3)      75.80%    52.82%    26.93%    31.67%      63.41%    58.02%

    Return on 

     average 

     equity          8.58     20.30      n/m       6.01         n/m       n/m 

   

Average - total                                                           

     loans and 

     leases           n/m       n/m $220,365   $238,918    $131,509   $91,199 

    Average -  

     total 

     deposits    $417,114  $337,253      n/m        n/m         n/m       n/m 

                                                                         

                                                                        

                                                             Global Wealth &

                                                               Investment   

                    Global Banking       Global Markets        Management 

                    --------------       ---------------      --------------

                    2009      2008       2009       2008      2009      2008 

                    ----      ----       ----       ----      ----      ---- 

    Total revenue, 

     net of                                                                   

     interest 

     expense (3)   $8,658    $4,455    $4,452    $1,378      $4,196    $2,295 

    Provision for                                                             

     credit losses  2,584       400        (1)      (38)        238       119 

    Noninterest 

     expense        2,232     1,747     2,559       951       3,304     1,244 

    Net income      2,487     1,433     1,377       298         441       581 

                                                                          

    Efficiency 

     ratio (3)      25.78%    39.24%    57.46%    69.04%      78.74%    54.21%

    Return on 

     average 

     equity         16.50     11.85     17.81      9.90        9.45     19.84 

    Average - total                                                           

     loans and 

     leases      $323,217  $315,282      n/m       n/m     $101,748   $87,574 

    Average - 

     total 

     deposits     199,879   169,738      n/m       n/m      214,111   157,113 


                                                                          

                    All Other (1, 4)                                          

                    ----------------                                          

                     2009      2008                                           

                     ----      ----                                           

    Total revenue, 

     net of                                                                   

     interest 

     expense (3)     $487     $(563)                                          

    Provision for                                                             

     credit losses     (9)   (1,033)                                          

    Noninterest 

     expense        1,471       286                                           

    Net income        757       226                                           

                                                                          

    Average - total                                                           

     loans and 

     leases      $159,142  $117,504                                           

    Average - 

     total 

     deposits     108,079    96,998                                           

                                                                          

    --------------------------------------------------

     (1) Global Card Services is presented on a managed basis with a 

         corresponding offset recorded in All Other. 

     (2) Provision for credit losses represents provision for credit losses 

         on held loans combined with realized credit losses associated with 

         the securitized loan portfolio. 

     (3) Fully taxable-equivalent (FTE) basis. FTE basis is a performance 

         measure used by management in operating the business that management

         believes provides investors with a more accurate picture of the 

         interest margin for comparative purposes. 

     (4) Provision for credit losses represents provision for credit losses 

         in All Other combined with the Global Card Services securitization 

         offset. 

    n/m = not meaningful



    Certain prior period amounts have been reclassified to conform to current

period presentation.


    Information for periods beginning July 1, 2008 include the Countrywide

acquisition. Information for the period beginning January 1, 2009 includes 

the Merrill Lynch acquisition. Prior periods have not been restated.


    This information is preliminary and based on company data available at

the time of the presentation.


    

    Bank of America Corporation and Subsidiaries    

    Business Segment Results                        

    ------------------------                        

     (Dollars in millions)                           

                                                

    For the six months ended June 30                               

                                                

                                          Global Card          Home Loans &

                        Deposits        Services (1, 2)         Insurance

                     --------------     --------------         -------------

                     2009      2008     2009      2008         2009     2008 

                     ----      ----     ----      ----         ----     ---- 

    Total revenue, 

     net of 

     interest 

     expense (3)   $6,907    $8,488  $14,846   $15,430       $9,684    $2,584 

    Provision for 

     credit losses    187       195   16,182     8,711        6,098     3,846 

    Noninterest 

     expense        5,008     4,516    4,053     4,572        5,479     1,470 

    Net income 

     (loss)         1,106     2,363   (3,494)    1,401       (1,223)   (1,721)

                                                                          

    Efficiency 

     ratio (3)      72.50%    53.21%   27.30%    29.63%       56.58%    56.91%

    Return on 

     average equity  9.47     19.31      n/m      7.28          n/m       n/m 

    Average - total 

     loans and 

     leases           n/m       n/m $224,391  $236,738     $129,110   $89,218 

    Average - 

     total 

     deposits    $397,454  $338,358      n/m       n/m          n/m       n/m 

                                                                          

                                                                          

                                                            Global Wealth & 

                                                               Investment   

                    Global Banking      Global Markets         Management

                    --------------      --------------        --------------

                    2009      2008      2009      2008        2009      2008 

                    ----      ----      ----      ----        ----      ---- 

    Total revenue, 

     net of 

     interest 

     expense (3)  $13,298    $8,354  $11,351      $537       $8,559    $4,237 

    Provision for 

     credit losses  4,432       926       50       (39)         492       362 

    Noninterest 

     expense        4,747     3,494    5,615     1,680        6,594     2,555 

    Net income 

     (loss)         2,659     2,456    3,812      (691)         951       825 

                                                                

    Efficiency 

     ratio (3)      35.70%    41.82%   49.46%      n/m        77.04%    60.31%

    Return on 

     average equity  9.17     10.27    26.38       n/m        10.70     14.21 

    Average - 

     total loans 

     and leases  $327,074  $310,603      n/m       n/m     $106,117   $86,609 

    Average - 

     total 

     deposits     197,981   165,232      n/m       n/m      231,853   152,808 

                                                     

            

                    All Other (1, 4)                    

                    ----------------                    

                     2009      2008                     

                     ----      ----                     

    Total revenue, 

     net of 

     interest 

     expense (3)   $4,521   $(1,533)                    

    Provision for 

     credit losses   (686)   (2,161)                    

    Noninterest 

     expense        2,526       635                     

    Net income 

     (loss)         3,660       (13)                    

                                                    

    Average - 

     total loans 

     and leases  $163,770  $125,695                     

    Average - 

     total 

     deposits     108,757   105,109                     

                                                    

    ----------------------------------------------------

     (1) Global Card Services is presented on a managed basis with a 

         corresponding offset recorded in All Other. 

     (2) Provision for credit losses represents provision for credit losses 

         on held loans combined with realized credit losses associated with 

         the securitized loan portfolio. 

     (3) Fully taxable-equivalent (FTE) basis. FTE basis is a performance 

         measure used by management in operating the business that management

         believes provides investors with a more accurate picture of the 

         interest margin for comparative purposes. 

     (4) Provision for credit losses represents provision for credit losses 

         in All Other combined with the Global Card Services securitization 

         offset. 

    n/m = not meaningful 


    Certain prior period amounts have been reclassified to conform to current 

period presentation. 


    Information for periods beginning July 1, 2008 include the Countrywide 

acquisition. Information for the period beginning January 1, 2009 includes 

the Merrill Lynch acquisition. Prior periods have not been restated.  

    This information is preliminary and based on company data available at 

the time of the presentation. 


    

    Bank of America Corporation and Subsidiaries 

    Supplemental Financial Data                                             

    ---------------------------                                             

     (Dollars in millions)                                                   

                                                                        

    Fully taxable-                          Three Months       Six Months   

     equivalent basis data                 Ended June 30     Ended June 30  

    ----------------------               ----------------  ---------------- 

                                            2009     2008     2009     2008 

                                            ----     ----     ----     ---- 


    Net interest income                  $11,942  $10,937  $24,761  $21,228 

    Total revenue, net of                                                   

     interest expense                     33,086   20,726   69,166   38,097 

    Net interest yield                      2.64%    2.92%    2.67%    2.83%

    Efficiency ratio                       51.44    46.60    49.19    49.67 

                                                                        

                                                                        

                                               June 30                      

                                            -------------

    Other Data                              2009     2008                   

    ----------                              ----     ---- 

                  

    Full-time equivalent employees       282,408  206,587                   

    Number of banking centers - domestic   6,109    6,131                   

    Number of branded ATMs - domestic     18,426   18,531                   



    Certain prior period amounts have been reclassified to conform to

current period presentation.



    Bank of America Corporation and Subsidiaries 

    Reconciliation - Managed to GAAP  

    ---------------------------------

    (Dollars in millions) 


    The Corporation reports Global Card Services on a managed basis. 

Reporting on a managed basis 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 securitization removes loans from the Consolidated Balance Sheet  

through the sale of loans to an off-balance sheet qualified special 

purpose entity which is excluded from the Corporation's Consolidated 

Financial Statements in accordance with accounting principles generally

accepted in the United States (GAAP).   


    The performance of the managed portfolio is important in understanding 

Global Card Services' results as it demonstrates the results of the 

entire portfolio serviced by the business. Securitized loans continue 

to be serviced by the business and are subject to the same underwriting

standards and ongoing monitoring as held loans. In addition, retained 

excess servicing income is exposed to similar credit risk and repricing 

of interest rates as held loans. Global Card Services' managed income 

statement line items differ from a held basis reported as follows:     

    

    - Managed net interest income includes Global Card Services' net interest

      income on held loans and interest income on the securitized loans less 

      the internal funds transfer pricing allocation related to securitized 

      loans.  

    - Managed noninterest income includes Global Card Services' noninterest 

      income on a held basis less the reclassification of certain components 

     

of card income (e.g., excess servicing income) to record managed net

      interest income and provision for credit losses. Noninterest income, 

      both on a held and managed basis, also includes the impact of 

      adjustments to the interest-only strip that are recorded in card income

      as management continues to manage this impact within Global Card 

      Services.                           

    - Provision for credit losses represents the provision for credit losses 

      on held loans combined with realized credit losses associated with the 

      securitized loan portfolio.                        


    

    Global Card Services                                                      

                                                                          

                     Six Months Ended                  Six Months Ended       

                      June 30, 2009                     June 30, 2008         

                    ------------------                ------------------      

                         

Securit-                         Securit-           

               Managed    ization      Held     Managed    ization      Held  

              Basis (1)  Impact (2)    Basis   Basis (1)  Impact (2)    Basis 

             ----------  ----------    -----   ---------  ----------    -----

    Net 

     interest                                                                 

     income 

     (3)         $10,308   $(4,749)   $5,559     $9,331     $(4,195)   $5,136 

    Noninterest 

    

income:                                                                  

     Card 

      income       4,279      (348)    3,931      5,275       1,261     6,536 

     All other                                                               

      income         259       (67)      192        824        (125)      699 

                     ---       ---       ---        ---        ----       --- 

      Total                                                                 

       noninterest                                                          

       income      4,538      (415)    4,123      6,099       1,136     7,235 

                   -----      ----     -----      -----       -----     ----- 

      Total 

       revenue,                                                             

       net of                                                               

       interest                                                             

       expense    14,846    (5,164)    9,682     15,430      (3,059)   12,371 

                                                                          

    Provision

     for credit 

     losses       16,182    (5,164)   11,018      8,711      (3,059)    5,652 

    Noninterest 

     expense       4,053         -     4,053      4,572           -     4,572 

                   -----       ---     -----      -----         ---     ----- 

      Income 

       (loss)                                                               

       before 

       income                                                               

       taxes      (5,389)        -    (5,389)     2,147           -     2,147 

    Income tax 

     expense                                                                  

     (benefit) 

     (3)          (1,895)        -    (1,895)       746           -       746 

                  ------       ---    ------        ---         ---       --- 

      Net 

       income                                                               

       (loss)    $(3,494)       $-   $(3,494)    $1,401          $-    $1,401 

                 =======       ===   =======     ======         ===    ====== 

                                                                          

    Average - 

     total 

     loans 

     and 

     leases     $224,391 $(102,357) $122,034   $236,738   $(106,306) $130,432 

                                                                          

                                                                          

    All Other                                                                 

                     Six Months Ended                 Six Months Ended      

                       June 30, 2009                     June 30, 2008        

                     ------------------               -----------------       

                            Securit-                         Securit-         

                Reported    ization       As     Reported    ization    As    

                Basis (4) Offset (2)  Adjusted  Basis (4)  Offset (2) Adjusted

               ---------  ----------  --------  ---------  ---------- --------

    Net 

     interest                                                              

     income(3)  $(3,477)    $4,749    $1,272    $(3,771)     $4,195      $424 

    Noninterest 

     income:                                                                  

     Card income                                                             

      (loss)        256        348       604      1,259      (1,261)       (2)

     Equity 

      investment                                                             

      income      7,305          -     7,305        977           -       977 

     Gains on                                                                

      sales of                                                               

      debt                                                                   

      securities  2,143          -     2,143        351           -       351 

     All other 

      income                                                                 

      (loss)     (1,706)        67    (1,639)      (349)        125      (224)

                 ------        ---    ------       ----         ---      ---- 

      Total                                                                 

       noninterest                                                          

       income     7,998        415     8,413      2,238      (1,136)    1,102 

                  -----        ---     -----      -----      ------     ----- 

      Total 

       revenue,                                                    

       net of                                                           

       interest                                                         

       expense    4,521      5,164     9,685     (1,533)      3,059     1,526 

              

    Provision 

     for credit 

     losses        (686)     5,164     4,478     (2,161)      3,059       898 

    Merger and                                                                

     restructuring                                                            

     charges      1,594          -     1,594        382           -       382 

    All other                                                                 

     noninterest 

     expense        932          -       932        253           -       253 

                    ---        ---       ---        ---         ---       --- 

      Income 

       (loss)                                                               

       before 

       income                                                               

       taxes      2,681          -     2,681         (7)          -        (7)

    Income tax                                                                

     expense (3)   (979)         -      (979)         6           -         6 

                   ----        ---      ----        ---         ---       --- 

      Net 

       income                                                               

       (loss)    $3,660         $-    $3,660       $(13)         $-      $(13)

                 ======        ===    ======       ====         ===      ==== 

Business Banking Bank Of America 2 image

                                                                          

    Average - 

     total                                                                    

     loans 

     and                                                                

     leases    $163,770   $102,357  $266,127   $125,695    $106,306  $232,001 

                                                                          

    ---------------------------------------------

     (1) Provision for credit losses represents provision for credit losses 

         on held loans combined with realized credit losses associated with 

         the securitized loan portfolio. 

     (2) The securitization impact/offset on net interest income is on a funds

         transfer pricing methodology consistent with the way funding costs 

         are allocated to the businesses. 

     (3) FTE basis 

     (4) Provision for credit losses represents provision for credit losses 

         in All Other combined with the Global Card Services securitization 

         offset. 



    Certain prior period amounts have been reclassified among the segments

to conform to the current period presentation.


    Information for periods beginning July 1, 2008 include the Countrywide

acquisition. Information for the period beginning January 1, 2009 includes 

the Merrill Lynch acquisition. Prior periods have not been restated.


    This information is preliminary and based on company data available at

the time of the presentation.


     SOURCE: Bank of America


    CONTACT: Investors: Kevin Stitt

             Bank of America

             +1-704-386-5667 

 

             Lee McEntire 

             Bank of America

             +1-704-388-6780 


             Grace Yoon

             Bank of America

             +1-212-449-7323; or 


             Reporters: Scott Silvestri 

             Bank of America

             +1-980-388-9921 

            

scott.silvestri@bankofamerica.com 




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