Bank of America Corporation

Bank of America Earns US$3.2 Billion in Second Quarter

    Charlotte, North Carolina (ots/PRNewswire) -

    - 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.

    (Logo: http://www.newscom.com/cgi-bin/prnh/20050720/CLW086LOGO-b )

    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.

@@start.t1@@      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@@end@@

    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.

@@start.t2@@      (All amounts in U.S. dollars unless otherwise noted)
      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.@@end@@

    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.

@@start.t3@@      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@@end@@

    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.

@@start.t4@@      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@@end@@

    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.

@@start.t5@@      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@@end@@

    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.

@@start.t6@@      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@@end@@

    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.

@@start.t7@@      - 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@@end@@

    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.

@@start.t8@@      - 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@@end@@

    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.

@@start.t9@@      - 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@@end@@

    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.

    www.bankofamerica.com

@@start.t10@@      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@@end@@

@@start.t11@@                                                  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.@@end@@

    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.

@@start.t12@@      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@@end@@

    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.

@@start.t13@@      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@@end@@

    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.

@@start.t14@@      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@@end@@

    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:

@@start.t15@@      - 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.@@end@@

@@start.t16@@      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)
                          ======            ===      ======          ====              ===        ====
      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.@@end@@

    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.

ots Originaltext: Bank of America Corporation
Im Internet recherchierbar: http://www.presseportal.ch

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 / Logo:
http://www.newscom.com/cgi-bin/prnh/20050720/CLW086LOGO-b



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