Bank of America Corporation

Bank of America Announces 2009 Net Income of US$6.3 Billion

    Charlotte, North Carolina (ots/PRNewswire) - Bank of America Corporation today reported full-year 2009 net income of US$6.3 billion, compared with net income of US$4.0 billion in 2008. Including preferred stock dividends and the negative impact from the repayment of the U.S. government's US$45 billion preferred stock investment in the company under the Troubled Asset Relief Program (TARP), income applicable to common shareholders was a net loss of US$2.2 billion, or US$0.29 per diluted share.

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

    Those results compared with 2008 net income applicable to common shareholders of US$2.6 billion, or US$0.54 per diluted share.

    In the fourth quarter of 2009, the company's net loss narrowed to US$194 million from a loss of US$1.8 billion a year earlier. Including dividends on preferred stock and the one-time US$4.0 billion negative impact associated with repaying TARP, income applicable to common shareholders in the period was a net loss of US$5.2 billion, or US$0.60 per diluted share, compared with a net loss of US$2.4 billion, or US$0.48 per diluted share, in the year-ago quarter.

    Results in the fourth quarter reflected continued elevated credit costs, although lower than in the third quarter of 2009. While net interest income declined from the year-ago quarter as a result of lower asset liability management portfolio levels and reduced loan demand, noninterest income was up sharply due to an improvement in trading and significantly higher income from investment and brokerage services, equity investments and investment banking.

    "While it's disappointing to report a loss for the fourth quarter, there were a number of important accomplishments worth noting," said Chief Executive Officer and President Brian T. Moynihan. "First, we repaid the American taxpayer, with interest, for the TARP investment. Second, we have taken steps to strengthen our balance sheet through successful securities offerings. And third, all of our non-credit businesses recorded positive contributions to our results.

    "As we look at 2010, we are encouraged by signs the economy is improving, as we have seen in the stabilization of our credit costs, particularly in the consumer businesses. That said, economic conditions remain fragile and we expect high unemployment levels to continue, creating an ongoing drag on consumer spending and growth."

    Full-Year and Fourth-Quarter 2009 Business Highlights

@@start.t1@@      - During the quarter, Bank of America funded US$86.6 billion in first
         mortgages, helping more than 400,000 people either purchase homes
         or refinance their existing mortgages. This funding included US$22.9
         billion in mortgages made to 151,000 low- and moderate-income
         borrowers. Approximately 42 percent of first mortgages were for home
         purchases.
      - In 2009, Bank of America has provided home ownership retention
         opportunities to approximately 460,000 customers. This includes
         260,000 loan modifications with total unpaid principal balances of
         approximately US$55 billion and approximately 200,000 customers who
         werein trial-period modifications under the government's Making Home
         Affordable program at December 31.
      - Bank of America Home Loans expanded its home retention staff to more
         than 15,000 to help customers experiencing difficulty with their home
         loans. This represents more than double the size of the team since
         Bank of America acquired Countrywide.
      - In 2009, Bank of America extended US$756 billion in credit, including
         commercial renewals of US$208 billion, according to preliminary data.
         New credit included US$378 billion in first mortgages, US$282 billion
         in commercial non-real estate, US$39 billion in commercial real estate,
         US$18 billion in domestic consumer and small business card, US$13
         billion in home equity products and nearly US$26 billion in other
         consumer credit.
      - In 2009, Small Business Lending extended more than US$14 billion in
         credit comprised of US$12 billion in Business Banking and US$2 billion
         to more than 146,000 Small Business Banking businesses. Bank of America
         recently announced an initiative to increase lending to small- and
         medium-sized businesses in 2010 by at least US$5 billion from 2009
         levels.
      - Average retail deposits during the quarter increased US$89.9 billion,
         or 15 percent, from a year earlier. Excluding the initial impact of the
         Merrill Lynch acquisition and the expected decline in higher-yielding
         Countrywide deposits, average retail deposits experienced strong
         organic growth of US$29.1 billion as momentum in the affluent and mass
         affluent customer base continued.
      - Bank of America introduced the Clarity Commitment(TM) for home
         mortgages, home refinancing and credit cards. The Clarity Commitment
         is a simple, easy-to-read and understand, one-page summary for customers
         that includes important information on payments, interest rates and
         fees. Bank of America began presenting these improved materials to more
         than 40 million of its customers in 2009.
      - The integration of Merrill Lynch remained on track with cost
         savings surpassing original estimates for the first year.
      - Bank of America Merrill Lynch ranked No. 2 in global and U.S.
         investment banking fees, according to Dealogic 2009 league tables.
      - In Global Wealth and Investment Management, the financial
         advisor network of more than 15,000 was up slightly from the third
         quarter as the retention rate stood at the highest level in recent
         years and the company increased hiring, training and development of new
         advisors.
      - Bank of America agreed to sell the long-term asset management
         business of Columbia Management to Ameriprise Financial, Inc. The
         company also agreed to sell First Republic Bank to a number of
         investors, including investment funds managed by Colony Capital, LLC
         and General Atlantic LLC, led by First Republic's existing management.
         Both sales are expected to close in the second quarter of 2010.
      - Bank of America repaid the US$45 billion of the U.S. taxpayers'
         preferred stock investment in the company as part of TARP. Repayment
         followed the successful completion of a securities offering. In
         2009, Bank of America raised a total of US$57 billion in additional
         Tier 1 common capital through various measures, further strengthening
         its liquidity and capital position.@@end@@

    Fourth-Quarter 2009 Financial Summary  

    Revenue and Expense  

    Revenue net of interest expense on a fully taxable-equivalent basis rose 59 percent to US$25.4 billion from US$16.0 billion a year ago, reflecting in part the addition of Merrill Lynch.

    Net interest income on a fully taxable-equivalent basis declined 11 percent to US$11.9 billion, compared with US$13.4 billion a year earlier. The decrease was a result of lower asset liability management portfolio levels, reduced loan levels and the unfavorable impact of higher nonperforming loans. This was partially offset by the addition of Merrill Lynch. The net interest yield narrowed 69 basis points to 2.62 percent.

    Noninterest income rose to US$13.5 billion from US$2.6 billion a year earlier. Higher trading account profits, investment and brokerage services fees and investment banking income reflected the addition of Merrill Lynch and significantly lower market disruption losses. The current quarter also included a US$1.1 billion gain on the company's investment in BlackRock as a result of its purchase of Barclay's asset management business. These increases were partially offset by US$1.6 billion in losses mostly related to mark-to-market adjustments on the Merrill Lynch structured notes, as the company's credit spreads improved during the quarter. Card income declined US$1.3 billion mainly due to higher credit losses on securitized credit card loans and lower fee income.

    Noninterest expense increased to US$16.4 billion from US$10.9 billion a year earlier. Personnel costs and other general operating expenses rose, driven in part by the Merrill Lynch acquisition. Pretax merger and restructuring charges rose to US$533 million from US$306 million a year earlier.

    The efficiency ratio on a fully taxable-equivalent basis was 64.47 percent, compared with 68.51 percent a year earlier.

    Pretax, pre-provision income on a fully taxable-equivalent basis was US$9.0 billion compared with US$5.0 billion a year earlier. The company had a tax benefit of US$1.2 billion in the quarter compared with a benefit of US$2.0 billion the same period last year.

    Credit Quality  

    Credit quality showed signs of improvement in most portfolios compared with the prior quarter, although credit costs remained high as global economic conditions remained challenging. Rising unemployment and underemployment kept consumers under stress and individuals spent longer periods without work. Losses, however, declined in most consumer portfolios from the prior quarter.

    The impact of the weak economy on the commercial portfolios moderated somewhat with criticized loans decreasing and the growth of nonperforming loans slowing. Losses in the homebuilder portfolio dropped from the prior quarter and losses in the commercial domestic portfolio declined across a broad range of borrowers and industries.

    Net charge-offs were US$1.2 billion lower than the prior quarter, driven by improvements across most consumer portfolios. Net charge-offs declined from the previous quarter for the first time in nearly four years. Nonperforming assets were US$35.7 billion, compared with US$33.8 billion at September 30, 2009, reflecting a slower rate of increase than in recent quarters.

    The provision for credit losses was US$10.1 billion, US$1.6 billion lower than the third quarter and US$1.6 billion higher than the same period a year earlier. The US$1.7 billion addition to the reserve for credit losses was lower than the third quarter, driven by lower additions on the purchased impaired consumer portfolios obtained through acquisitions and improved delinquencies in certain consumer and small business portfolios. These decreases were partially offset by additions to increase reserve coverage on the consumer credit card portfolio. The 2008 coverage ratios and amounts shown in the following table do not include Merrill Lynch, which was acquired on January 1, 2009.  (All amounts in US Dollars unless otherwise noted)

@@start.t2@@      (Dollars in millions)                         Q4 2009        Q3 2009          Q4 2008
      ---------------------                         -------         -------         -------
      Provision for credit losses                $10,110         $11,705          $8,535
      Net charge-offs                                      8,421            9,624            5,541
      Net charge-off ratio(1)                          3.71%            4.13%            2.36%
      Total managed net losses                    $11,347         $12,932          $7,398
      Total managed net loss ratio(1)              4.54%            5.03%            2.84%
                                                          At 12/31/09    At 9/30/09  At 12/31/08
                                                          -----------    ----------  -----------
      Nonperforming assets                          $35,747         $33,825         $18,212
      Nonperforming assets ratio(2)                 3.98%            3.72%            1.96%
      Allowance for loan and lease
        losses                                                $37,200         $35,832         $23,071
      Allowance for loan and lease
        losses ratio(3)                                      4.16%            3.95%            2.49%@@end@@

    (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 lease losses divided by loans and leases outstanding at the end of the period.

    Note: Ratios do not include loans measured under the fair value option.

    Capital Management

@@start.t3@@                                                         At 12/31/09  At 09/30/09  At 12/31/08
                                                         -----------  -----------  -----------
      Total shareholders' equity              $231,444        $257,683        $177,052
        (in millions)
      Tier 1 common ratio                                7.81%            7.25%            4.80%
      Tier 1 capital ratio                            10.40            12.46              9.15
      Total capital ratio                              14.66            16.69            13.00
      Tangible common equity ratio(1)            5.57              4.82              2.93
      Tangible book value per share            $11.94          $12.00          $10.11@@end@@

    (1) Tangible common equity and tangible book value per share are non-GAAP measures. Other companies may define or calculate the tangible common equity ratio and tangible book value per share differently. For reconciliation to GAAP measures, please refer to page 22 of this press release.

    Capital ratios were impacted from the prior quarter primarily due to the issuance of equity and repayment of TARP.

    During the quarter, a cash dividend of $0.01 per common share was paid and the company reported $5.0 billion in preferred dividends. Period-end common shares issued and outstanding were 8.65 billion for the fourth and third quarters of 2009 and 5.02 billion for the fourth quarter of 2008.

    During the fourth quarter, Bank of America sold 1.286 billion common equivalent securities, generating gross proceeds of $19.3 billion. The offering was priced at $15.00 per depository share and its proceeds, along with existing corporate funds, were used to repurchase all the preferred stock issued to the U.S. Department of the Treasury to repay the TARP investment.

    Full-Year 2009 Financial Summary  

    Revenue and Expense  

    Revenue net of interest expense on a fully taxable-equivalent basis rose 63 percent to $120.9 billion from $74.0 billion a year ago, reflecting in part the addition of Countrywide and Merrill Lynch.

    Net interest income on a fully taxable-equivalent basis was $48.4 billion, compared with $46.6 billion for 2008. The increase was a result of increased deposit levels, a favorable rate environment, the acquisitions of Merrill Lynch and Countrywide, offset in part by asset liability management portfolio levels, lower consumer loan balances and an increase in nonperforming loans. The net interest yield narrowed 33 basis points to 2.65 percent.

    Noninterest income rose to $72.5 billion from $27.4 billion a year earlier. Higher trading account profits, equity investment income, investment and brokerage services fees and investment banking income reflected the addition of Merrill Lynch and significantly lower market disruption losses. These increases, as well as the increase in mortgage banking income related to the Countrywide acquisition and gains on the sale of debt securities, were partially offset by $4.9 billion in net losses mostly related to mark-to-market adjustments on the Merrill Lynch structured notes, as the company's credit spreads improved, and approximately $800 million in net credit valuation adjustments on derivative liabilities. Card income declined $5.0 billion mainly from higher credit losses on securitized credit card loans and lower fee income.

    Noninterest expense increased to $66.7 billion from $41.5 billion a year earlier. Personnel costs and other general operating expenses rose due to the full-year impact of Countrywide and the addition of Merrill Lynch. Pretax merger and restructuring charges rose to $2.7 billion from $935 million a year earlier.

    The efficiency ratio on a fully taxable-equivalent basis was 55.16 percent compared with 56.14 percent a year earlier.

    Pretax, pre-provision income on a fully taxable-equivalent basis was $54.2 billion compared with $32.4 billion a year earlier. For the year, the company recognized a tax benefit of $1.9 billion, compared with a tax expense of $420 million in 2008. The decrease in tax expense was due to certain tax benefits, as well as a shift in the geographic mix of the company's earnings driven by the addition of Merrill Lynch.

    Credit Quality  

    Weakness in global economies drove higher credit costs in 2009. The provision for credit losses was $48.6 billion, $21.7 billion higher than 2008, reflecting higher net charge-offs and additions to reserves. Higher reserve additions resulted from further deterioration on the purchased impaired consumer portfolios obtained through acquisitions, broad-based deterioration in the core commercial portfolio and the impact of deterioration in the housing markets on the residential mortgage portfolio.

    Net charge-offs were $17.5 billion higher than the prior year across all portfolios. Nonperforming assets were $35.7 billion, compared with $18.2 billion at December 31, 2008. The 2008 ratios and amounts shown in the following table do not include Merrill Lynch, which was acquired on January 1, 2009.

    Credit Quality

      (Dollars in millions)                      2009        2008
      ---------------------                      ----        ----
      Provision for credit losses        $48,570  $26,825
      Net charge-offs                            33,688    16,231
      Net charge-off ratio(1)                  3.58%      1.79%
      Total managed net losses            $45,087  $22,901
      Total managed net loss ratio(1)      4.33%      2.27%

    (1) Net charge-off/loss ratios are calculated as held net charge-offs or managed net losses divided by average outstanding held or managed loans and leases during the period.

    Note: Ratios do not include loans measured under the fair value option.

    Capital Management  

    Bank of America increased its Tier 1 common capital by $57 billion through multiple capital actions taken during 2009 that included issuing shares of common stock, issuing common equivalent securities, exchanging certain non-government preferred stock for common stock and asset sales.

    Tangible common equity benefited from the positive impact of market movement on available-for-sale securities.

    During the year, cash dividends of $0.04 per common share were paid and the company reported $8.5 billion in preferred dividends including the cost associated with TARP repayment.

    2009 Business Segment Results  

    Deposits

      (Dollars in millions)                                2009              2008
      ---------------------                                 ----              ----
      Total revenue, net of interest
        expense(1)                                            $14,008         $17,840
      Provision for credit losses                         380                399
      Noninterest expense                                  9,693            8,783
      Net income                                                 2,506            5,512
      Efficiency ratio(1)                                  69.19%          49.23%
      Return on average equity                          10.55            22.55
      Deposits(2)                                          $406,833        $357,608
                                                              At 12/31/09  At 12/31/08
                                                              -----------  -----------
      Period-ending deposits                         $419,583        $375,763

    (1) Fully taxable-equivalent basis  

    (2) Balances averaged for period  

    Deposits net income fell 55 percent from a year ago as revenue declined and noninterest expense rose. Revenue declined mainly due to lower residual net interest income impacted by the corporation's asset liability management activities and spread compression as interest rates declined. Noninterest expense increased as a result of higher Federal Deposit Insurance Corp. (FDIC) insurance and special assessment costs.

    Average customer deposits rose 14 percent, or $49.2 billion, from a year ago due to strong organic growth and the transfer of certain client deposits from Global Wealth and Investment Management. Organic growth was driven by the continuing need of customers to manage their liquidity as illustrated by growth in higher spread deposits from new money, as well as movement from certificates of deposit to other products. The increase was partially offset by the expected decline in higher-yielding Countrywide deposits.

    Fourth-quarter net income fell 62 percent to $595 million compared with the same period last year due to a decline in revenue and an increase in noninterest expense. These period-over-period changes were driven by the same factors as described in the full year discussion above. The decline in revenue included the impact of implementing new initiatives aimed at assisting customers who are economically stressed by reducing the amount of their banking fees. Overdraft fees declined $160 million as a result of these initiatives.

    Global Card Services

@@start.t4@@(Dollars in millions)                                            2009              2008
        ---------------------                                            ----              ----
      Total managed revenue, net of interest
        expense(1,2)                                                      $29,342         $31,220
      Provision for credit losses(3)                            30,081          20,164
      Noninterest expense                                                7,961            9,160
      Net income (loss)                                                 (5,555)          1,234
      Efficiency ratio(2)                                                27.13%          29.34%
      Return on average equity                                        n/m                 3.15
      Managed loans(4)                                                $216,654        $236,714
                                                                          At 12/31/09  At 12/31/08
                                                                          -----------  -----------
      Period-ending loans                                          $201,230        $233,040@@end@@

    (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 reported a net loss of $5.6 billion as credit costs continued to rise, reflecting weak economies in the U.S., Europe and Canada. Managed net revenue declined 6 percent to $29.3 billion mainly due to lower fee income and the absence of one-time gains that positively impacted 2008 results. The decline was partially offset by higher net interest income, as lower funding costs outpaced the decline in average managed loans. The revenue decline also was partially driven by enrolling customers who are experiencing financial stress in various card modification programs.

    Provision expense increased to $30.1 billion from a year earlier as economic conditions led to higher losses in the consumer card and consumer lending portfolios, including a higher level of bankruptcies. Reserve additions related to maturing securitizations and increased coverage on the consumer credit card portfolio also contributed to the increase. These increases were partially offset by reserve reductions in consumer lending and lower reserve additions for the small business portfolio resulting from improved delinquencies.

    Noninterest expense declined 13 percent on lower operating and marketing costs.

    The fourth-quarter net loss of $1.0 billion was due to higher credit costs and lower managed revenues driven by the impact of the weak economy. Net revenue fell 11 percent compared with a year ago as net interest and fee income declined, partially offset by lower operating and marketing costs. Additionally, in the fourth quarter, the company helped more than 200,000 customers by reducing their rates and providing them more affordable payment terms.

    Home Loans and Insurance

      (Dollars in millions)                                 2009              2008
      ---------------------                                 ----              ----
      Total revenue, net of interest
        expense(1)                                            $16,902          $9,310
      Provision for credit losses                    11,244            6,287
      Noninterest expense                                 11,683            6,962
      Net income (loss)                                    (3,838)         (2,482)
      Efficiency ratio(1)                                  69.12%          74.78%
      Return on average equity                            n/m                n/m
      Loans(2)                                                $130,519        $105,724
                                                              At 12/31/09  At 12/31/08
                                                              -----------  -----------
      Period-ending loans                              $131,302        $122,947

    (1) Fully taxable-equivalent basis  

    (2) Balances averaged for period  

    n/m = not meaningful  

    The net loss in Home Loans and Insurance widened to $3.8 billion as higher credit costs continued to negatively impact results. Net revenue increased 82 percent primarily driven by the full-year benefit of Countrywide and higher loan production income from increased refinance activity.

    The provision for credit losses rose to $11.2 billion, driven by continued economic weakness and lower home prices. Reserves were increased mainly due to further deterioration in the purchased impaired portfolio.

    Noninterest expense rose to $11.7 billion mostly due to the full-year impact of Countrywide as well as increased compensation costs and other expenses related to higher production volume and higher delinquencies. Part of the increase in expenses was a result of more than doubling the staff and other costs in the home retention group.

    The fourth-quarter net loss increased 40 percent to $993 million compared with the year-ago quarter. Net revenue rose mostly on higher income from loan production. The increase was partially offset by lower servicing revenue driven by unfavorable mortgage servicing rights results. Higher production volume and delinquencies led to increased expenses. Provision for credit losses increased due to the same factors as described in the full-year discussion above.

    Global Banking

      (Dollars in millions)                          2009         2008
      ---------------------                            ----         ----
      Total revenue, net of interest
        expense(1)                                        $23,035    $16,796
      Provision for credit losses                 8,835        3,130
      Noninterest expense                              9,539        6,684
      Net income                                            2,969        4,472
      Efficiency ratio(1)                              41.41%      39.80%
      Return on average equity                        4.93         8.84
      Loans and leases(2)                         $315,002  $318,325
      Deposits(2)                                        211,261    177,528

    (1) Fully taxable-equivalent basis  

    (2) Balances averaged for period  

    Global Banking net income declined to $3.0 billion. Strong deposit growth and the impact of the Merrill Lynch acquisition were more than offset by increased credit costs and higher FDIC insurance and special assessment costs.

    The provision for credit losses rose to $8.8 billion driven by higher net charge-offs and additions to reserves in the commercial real estate and commercial domestic portfolios. These increases reflect deterioration across a broad range of industries, property types and borrowers.

@@start.t5@@      - Commercial Banking revenue increased to $15.2 billion, reflecting
         strong deposit growth, credit spread improvement on loan yields and the
         gain related to the sale of the merchant processing business to a joint
         venture during the second quarter. This was offset in part by lower
         residual net interest income, narrower spreads on deposits and reduced
         loan balances. Net income was negatively impacted by a significant
         increase in credit costs and higher FDIC insurance and special
         assessment costs.
      - Corporate Banking and Investment Banking revenue rose 44 percent, or
         $2.4 billion, driven by strong investment banking revenues due to the
         expanded Bank of America Merrill Lynch platform and strong deposit
         growth. The increase was partially offset by the costs of credit
         hedging and lower residual net interest income. Net income was further
         impacted by higher credit costs, operating expenses associated with the
         Merrill Lynch acquisition and higher FDIC insurance and special
         assessment costs.@@end@@

    Fourth-quarter net income declined 74 percent to $264 million compared with a year earlier due to higher credit, FDIC insurance and compensation costs. Provision for credit losses rose due to higher net charge-offs and reserve additions within the commercial real estate portfolio. Net revenue increased due to the impact of the Merrill Lynch acquisition.

    Note: 2009 investment banking income of $5.6 billion was shared primarily between Global Banking and Global Markets based on an internal fee-sharing arrangement between the two segments. This represents a more than twofold increase from a year earlier, reflecting the company's larger investment banking platform.

    Global Markets

      (Dollars in millions)                            2009         2008
      ---------------------                            ----         ----
      Total revenue, net of interest
        expense(1)                                        $20,626    $(3,831)
      Provision for credit losses                    400          (50)
      Noninterest expense                            10,042        3,906
      Net income (loss)                                 7,177      (4,916)
      Efficiency ratio(1)                              48.68%        n/m
      Return on average equity                      23.33%        n/m
      Total assets(2)                                $656,621  $427,734

    (1) Fully taxable-equivalent basis  

    (2) Balances averaged for period  

    n/m = not meaningful  

    Global Markets net income increased $12.1 billion driven by the addition of Merrill Lynch and a more favorable trading environment. Revenue increased to $20.6 billion due to improved market conditions and the reduced impact of market disruption charges compared with the prior year. Noninterest expense increased due to the Merrill Lynch acquisition. The increase was partially offset by a change in compensation that delivers a greater portion of incentive pay over time.

@@start.t6@@      - Fixed Income, Currency and Commodities revenue of $14.9 billion was
         primarily driven by sales and trading revenues of $12.7 billion. Credit
         products benefited from improved market liquidity and tighter credit
         spreads. Investment banking fees were positively impacted by new
         issuance capabilities.
      - Equities revenue of $5.7 billion, including sales and trading revenue
         of $4.9 billion, was driven by the addition of Merrill Lynch and an
         increase in customer flow due to positive market sentiment and gains
         from risk positioning.@@end@@

    Fourth-quarter net income increased $4.8 billion compared with a net loss of $3.7 billion in the same period last year. Net revenue increased due to a more favorable trading environment from the prior year, including significantly lower market disruption charges and the addition of Merrill Lynch.

    Global Wealth and Investment Management

      (Dollars in millions)                          2009              2008
      ---------------------                          ----              ----
      Total revenue, net of interest        $18,123          $7,809
      Expense(1)
      Provision for credit losses                1,061                664
      Noninterest expense                          13,077            4,910
      Net income                                          2,539            1,428
      Efficiency ratio(1)                            72.16%          62.87%
      Return on average equity                    13.44            12.20
      Loans(2)                                         $103,398         $87,593
      Deposits(2)                                      225,980         160,702
      (in billions)                            At 12/31/09  At 12/31/08
      -------------                            -----------  -----------
      Assets under management                    $749.8          $523.1
      Total net client assets(3)            $2,172.9          $917.6

    (1) Fully taxable-equivalent basis  

    (2) Balances averaged for period  

    (3) Client assets are defined as assets under management, client brokerage assets, other assets in custody and client deposits

    Global Wealth and Investment Management net income rose to $2.5 billion driven by the addition of Merrill Lynch, partially offset by lower residual net interest income and higher credit costs.

    Net revenue more than doubled to $18.1 billion on higher investment and brokerage service income from the addition of Merrill Lynch, a $1.1 billion gain related to the BlackRock equity investment and the lower level of support for certain cash funds.

    The provision for credit losses increased $397 million to $1.1 billion driven by higher net charge-offs in the consumer real estate portfolio, as well as higher net charge-offs and reserve increases in the commercial portfolios.

@@start.t7@@      - Merrill Lynch Global Wealth Management net income increased
         22 percent to $1.5 billion from a year earlier as the impact of lower
         residual net interest income, the migration of deposits and loan
         balances to the Deposits and Home Loans and Insurance businesses and
         higher credit costs were more than offset by the addition of Merrill
         Lynch.
      - U.S. Trust, Bank of America Private Wealth Management net income
         declined to $174 million as net revenue fell and credit costs
         increased significantly, including the impact of a single large
         commercial charge-off in the third quarter. Net revenue declined 11
         percent to $2.7 billion driven by a lower residual net interest income
         allocation and the effect of lower valuations in equity markets on asset
         management fee income.
      - Columbia Management net loss narrowed to $7 million compared with a
         net loss of $469 million a year earlier, driven by a $917 million
         reduction in support provided to certain cash funds, partially offset by
         the impact of lower valuations in the equity markets, as well as net
         outflows in the cash complex. As a result of actions taken during the
         year, Columbia's money market funds no longer have exposure to
         structured investment vehicles or other troubled assets and all capital
         support agreements have been terminated.@@end@@

    Fourth-quarter net income increased $816 million to $1.3 billion, compared with the same period last year as revenue increased to $5.5 billion. The increase in revenue was driven primarily by the Merrill Lynch acquisition and the gain related to the BlackRock equity interest.

    All Other

      (Dollars in millions)                            2009         2008
      ---------------------                            ----         ----
      Total revenue, net of interest
        expense(1)                                        $(1,092)  $(5,168)
      Provision for credit losses(2)          (3,431)    (3,769)
      Noninterest expense                              4,718        1,124
      Net income (loss)                                    478      (1,240)
      Loans and leases(3)                         $155,561  $135,789

    (1) Fully taxable-equivalent basis  

    (2) Numbers in parentheses represent a provision benefit  

    (3) Balances averaged for period  

    All Other reported net income of $478 million. Higher equity investment income and increased gains on the sale of debt securities were offset by $4.9 billion mark-to-market losses mainly related to certain Merrill Lynch structured notes as credit spreads improved. Results were also impacted by other-than-temporary impairment charges related to non-agency collateralized mortgage obligations. Excluding the securitization impact to show Global Card Services on a managed basis, the provision for credit losses increased compared with the same period last year due to higher losses in the residential mortgage portfolio. Noninterest expense increased due to merger and restructuring charges related to the Merrill Lynch acquisition and a pretax charge to pay the U.S. government to terminate its asset guarantee term sheet.

    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. Effective January 1, 2009, All Other includes the results of First Republic Bank, which was acquired as part of the Merrill Lynch acquisition.

    Note: Chief Executive Officer and President Brian T. Moynihan and Chief Financial Officer Joe L. Price will discuss 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 1.888.245.1801 (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 59 million consumer and small business relationships with 6,000 retail banking offices, more than 18,000 ATMs and award-winning online banking with nearly 30 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  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 integration of the Merrill Lynch and Countrywide acquisitions and related cost savings, future results and revenues, credit losses, credit reserves and charge-offs, nonperforming asset levels, level of preferred dividends, service charges, the closing of the First Republic Bank and Columbia Management sales, effective tax rate, noninterest expense, impact of changes in fair value of Merrill Lynch structured notes, impact of SFAS 166 and 167 on capital and reserves, mortgage production 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, third quarter 2009 Quarterly Report on Form 10-Q, 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; Bank of America's modification policies and related results; 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 (including the impact of Regulation E, the Card Act of 2009 and related regulations) 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 (including SFAS 166 and 167) 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.t8@@      Bank of America Corporation and Subsidiaries
      Selected Financial Data
      (Dollars in millions, except per share data; shares in thousands)
      Summary Income
        Statement                    Three Months Ended         Year Ended
                                                 December 31              December 31
                                              2009         2008         2009         2008
                                              ----         ----         ----         ----
      Net interest income        $11,559    $13,106    $47,109    $45,360
      Noninterest income          13,517        2,574      72,534      27,422
          Total revenue, net
            of interest expense  25,076      15,680    119,643      72,782
      Provision for credit
        losses                            10,110        8,535      48,570      26,825
      Noninterest expense,
        before merger and
        restructuring charges    15,852      10,641      63,992      40,594
      Merger and
        restructuring charges         533          306        2,721          935
          Income (loss) before
            income taxes              (1,419)    (3,802)      4,360        4,428
      Income tax expense
        (benefit)                        (1,225)    (2,013)    (1,916)         420
          Net income (loss)         $(194)  $(1,789)    $6,276      $4,008
      Preferred stock
        dividends and
        accretion (1)                  5,002          603        8,480        1,452
          Net income (loss)
            applicable to
            common
            shareholders            $(5,196)  $(2,392)  $(2,204)    $2,556
      Earnings (loss) per
        common share                  $(0.60)    $(0.48)    $(0.29)      $0.54
      Diluted earnings (loss)
        per common share              (0.60)      (0.48)      (0.29)        0.54
      Summary Average
        Balance Sheet              Three Months Ended         Year Ended
                                                 December 31              December 31
                                              2009         2008         2009         2008
                                              ----         ----         ----         ----
      Total loans and
        leases                         $905,913  $941,563  $948,805  $910,878
      Debt securities              279,231    280,942    271,048    250,551
      Total earning assets  1,807,898 1,616,673 1,830,193 1,562,729
      Total assets                2,421,531 1,948,854 2,437,517 1,843,979
      Total deposits                995,160    892,141    980,966    831,144
      Shareholders' equity      250,599    176,566    244,645    164,831
      Common shareholders'
        equity                          197,123    142,535    182,288    141,638
      Performance Ratios        Three Months Ended        Year Ended
                                                 December 31            December 31
                                              2009         2008         2009         2008
      Return on average
        assets                                 n/m          n/m         0.26%        0.22%
      Return on average
        common shareholders'
        equity                                 n/m          n/m          n/m         1.80@@end@@

@@start.t9@@      Credit Quality                Three Months Ended        Year Ended
                                                 December 31              December 31
                                              2009         2008         2009         2008
                                              ----         ----         ----         ----
      Total net charge-offs      $8,421      $5,541    $33,688    $16,231
      Annualized net
        charge-offs as a % of
        average loans and
        leases outstanding (2)      3.71%        2.36%        3.58%        1.79%
      Provision for credit
        losses                          $10,110      $8,535    $48,570    $26,825
      Total consumer credit
        card managed net
        losses                              4,867        3,263      19,185      11,382
      Total consumer credit
        card managed net
        losses as a % of
        average managed credit
        card receivables              11.88%        7.16%      11.25%        6.18%
                                                 December 31
                                              2009         2008
                                              ----         ----
      Total nonperforming
        assets                          $35,747    $18,212
      Nonperforming assets
        as a % of total loans,
        leases and foreclosed
        properties (2)                  3.98%        1.96%
      Allowance for loan and
        lease losses                 $37,200    $23,071
      Allowance for loan and
        lease losses as a % of
        total loans and leases
        outstanding (2)                 4.16%        2.49%
      Capital Management                December 31
                                              2009              2008
                                              ----              ----
      Risk-based capital
         ratios:
          Tier 1 common equity      7.81%          4.80%
          Tier 1 capital              10.40            9.15
          Total capital                14.66          13.00
      Tier 1 leverage ratio         6.91            6.44
      Tangible equity ratio (3)  6.42            5.11
      Tangible common equity
        ratio (4)                          5.57            2.93
      Period-end common
        shares issued and
        outstanding                8,650,244    5,017,436
                                            Three Months Ended         Year Ended
                                                 December 31                December 31
                                              2009          2008          2009         2008
                                              ----          ----          ----         ----
      Shares issued (5)                 n/a      455,381  3,632,808      579,551
      Average common shares
        issued and
        outstanding                8,634,565  4,957,049  7,728,570  4,592,085
      Average diluted
        common shares issued
        and  outstanding        8,634,565  4,957,049  7,728,570  4,596,428
      Dividends paid per
        common share                    $0.01         $0.32         $0.04         $2.24
      Summary End of Period
        Balance Sheet
                                                 December 31
                                              2009          2008
                                              ----          ----
      Total loans and
        leases                         $900,128    $931,446
      Total debt
        securities                    311,441      277,589
      Total earning
        assets                        1,726,489  1,536,198
      Total assets                2,223,299  1,817,943
      Total deposits                991,611      882,997
      Total shareholders'
        equity                          231,444      177,052
      Common shareholders'
        equity                          194,236      139,351
      Book value per share
        of common stock (6)        $21.48        $27.77
      Tangible book value
        per share of common
        stock (6)                         11.94         10.11@@end@@

    (1) Includes $4.0 billion of accelerated accretion from redemption of preferred stock issued to the U.S. Treasury in the fourth quarter of 2009.

    (2) Ratios do not include loans measured at fair value under the fair  value option at and for the three months and year ended December 31,  2009 and 2008.

    (3) Tangible equity ratio represents 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) Tangible common equity ratio represents common shareholders' equity  plus Common Equivalent Securities 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.

    (5) 2009 amounts include approximately 1.375 billion shares issued in  the Merrill Lynch acquisition.

    (6) Book value per share of common stock includes the impact of the  conversion of common equivalent shares to common shares. Tangible book value per share of common stock represents ending common  shareholders' equity plus Common Equivalent Securities less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred  tax liabilities divided by ending common shares outstanding plus the number of common shares issued upon conversion of Common Equivalent Securities.

    n/m = not meaningful        

    n/a = not applicable        

    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.t10@@      Bank of America Corporation and Subsidiaries
      Business Segment Results
      (Dollars in millions)
      For the three months ended December 31
                                                                      Global Card          Home Loans
                                            Deposits          Services (1, 2)      & Insurance
                                        2009        2008        2009        2008        2009        2008
                                        ----        ----        ----        ----        ----        ----
      Total revenue, net
        of interest
        expense (3)            $3,448    $4,657    $7,161    $8,018    $3,793    $3,253
      Provision for
        credit losses                91         107      6,924      5,851      2,249      1,623
      Noninterest expense  2,374      2,215      1,936      2,179      3,165      2,752
      Net income (loss)         595      1,563    (1,028)         (9)      (993)      (707)
      Efficiency ratio (3) 68.86%    47.58%    27.05%    27.18%    83.43%    84.58%
      Return on average
        equity                        9.79      25.39         n/m         n/m         n/m         n/m
      Average - total
        loans and leases         n/m         n/m $204,748 $233,427 $132,326 $122,065
      Average - total
        deposits              $416,464 $377,987         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)            $4,932    $4,059    $3,443  $(4,555)  $5,508    $1,991
      Provision for
        credit losses          2,063      1,402         252          13          54         152
      Noninterest expense  2,409      1,179      2,078      1,105      3,330      1,069
      Net income (loss)         264      1,032      1,184    (3,653)    1,331         515
      Efficiency
        ratio (3)                 48.83%    29.05%    60.33%        n/m      60.45%    53.70%
      Return on average
        equity                        1.73        7.65      14.45         n/m      26.76      17.40
      Average - total
        loans and leases $297,488 $331,115         n/m         n/m $100,264  $88,876
      Average - total
        deposits                228,995  199,465         n/m         n/m  223,056  172,435
                                        All Other (1, 4)
                                        2009         2008
                                        ----         ----
      Total revenue,
        net of interest
        expense (3)          $(2,872) $(1,443)
      Provision for
        credit losses         (1,523)      (613)
      Noninterest
        expense                    1,093         448
      Net loss                  (1,547)      (530)
      Average - total
        loans and leases $146,185 $145,241
      Average - total
        deposits                 91,775  110,471@@end@@

    (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.

@@start.t11@@      Bank of America Corporation and Subsidiaries
      Business Segment Results
      (Dollars in millions)
      For the year ended December 31
                                                                      Global Card          Home Loans
                                            Deposits          Services (1, 2)      & Insurance
                                        2009        2008        2009        2008        2009        2008
                                        ----        ----        ----        ----        ----        ----
      Total revenue, net
        of interest
        expense (3)          $14,008  $17,840  $29,342  $31,220  $16,902    $9,310
      Provision for
        credit losses              380         399    30,081    20,164    11,244      6,287
      Noninterest expense  9,693      8,783      7,961      9,160    11,683      6,962
      Net income (loss)      2,506      5,512    (5,555)    1,234    (3,838)  (2,482)
      Efficiency ratio (3) 69.19%    49.23%    27.13%    29.34%    69.12%    74.78%
      Return on average
        equity                      10.55      22.55         n/m        3.15         n/m         n/m
      Average - total
        loans and leases         n/m         n/m $216,654 $236,714 $130,519 $105,724
      Average - total
        deposits              $406,833 $357,608         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)          $23,035  $16,796  $20,626  $(3,831) $18,123    $7,809
      Provision for
        credit losses          8,835      3,130         400         (50)    1,061         664
      Noninterest expense  9,539      6,684    10,042      3,906    13,077      4,910
      Net income (loss)      2,969      4,472      7,177    (4,916)    2,539      1,428
      Efficiency
        ratio (3)                 41.41%    39.80%    48.68%        n/m      72.16%    62.87%
      Return on average
        equity                        4.93        8.84      23.33         n/m      13.44      12.20
      Average - total
        loans and leases $315,002 $318,325         n/m         n/m $103,398  $87,593
      Average - total
        deposits                211,261  177,528         n/m         n/m  225,980  160,702
                                        All Other (1, 4)
                                        2009         2008
                                        ----         ----
      Total revenue, net
        of interest
        expense (3)          $(1,092) $(5,168)
      Provision for
        credit losses         (3,431)  (3,769)
      Noninterest expense  4,718      1,124
      Net income (loss)         478    (1,240)
      Average - total
        loans and leases $155,561 $135,789
      Average - total
        deposits                103,122  105,725@@end@@

    (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.

@@start.t12@@      Bank of America Corporation and Subsidiaries
      Supplemental Financial Data
      (Dollars in millions)
      Fully taxable-equivalent
        basis data                  Three Months Ended         Year Ended
                                                 December 31              December 31
                                              2009         2008         2009         2008
                                              ----         ----         ----         ----
      Net interest income      $11,896    $13,406    $48,410    $46,554
      Total revenue, net of
        interest expense          25,413      15,980    120,944      73,976
      Net interest yield            2.62%        3.31%        2.65%        2.98%
      Efficiency ratio              64.47        68.51        55.16        56.14
      Other Data                          December 31
                                              2009         2008
                                              ----         ----
      Full-time equivalent
        employees                      283,717    240,202
      Number of banking
        centers - domestic          6,011        6,139
      Number of branded
        ATMs - domestic              18,262      18,685@@end@@

    Reconciliation to GAAP financial measures      

    The Corporation evaluates its business based upon ratios that utilize  tangible equity which is a non-GAAP measure. The tangible equity ratio  represents 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. The tangible common equity ratio represents common  shareholders' equity plus Common Equivalent Securities 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. Tangible book value per share of common stock represents ending common shareholders' equity plus Common Equivalent Securities less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by ending common shares outstanding plus the number of common shares issued upon conversion of Common Equivalent Securities.  These measures are used to evaluate the Corporation's use of equity  (i.e., capital). We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation.

    Other companies may define or calculate supplemental financial data  differently.  See the tables below for corresponding reconciliations to  GAAP financial measures at December 31, 2009, September 30, 2009 and  December 31, 2008.

@@start.t13@@                                                              December 31  September 30  December 31
                                                                    2009                2009            2008
      Reconciliation of period end
        shareholders' equity to period
        end tangible shareholders' equity
      Shareholders' equity                          $231,444         $257,683      $177,052
      Goodwill                                                (86,314)         (86,009)      (81,934)
      Intangible assets (excluding MSRs)      (12,026)         (12,715)        (8,535)
      Related deferred tax liabilities            3,498              3,714          1,854
      Tangible shareholders' equity            $136,602         $162,673        $88,437
      Reconciliation of period end
        common shareholders' equity to
        period end tangible common
        shareholders' equity
      Common shareholders' equity                $194,236         $198,843      $139,351
      Common Equivalent Securities                 19,244                    -                 -
      Goodwill                                                (86,314)         (86,009)      (81,934)
      Intangible assets (excluding MSRs)      (12,026)         (12,715)        (8,535)
      Related deferred tax liabilities            3,498              3,714          1,854
      Tangible common shareholders'
        equity                                                $118,638         $103,833        $50,736
      Reconciliation of period end
        assets to period end tangible
        assets
      Assets                                              $2,223,299      $2,251,043  $1,817,943
      Goodwill                                                (86,314)         (86,009)      (81,934)
      Intangible assets (excluding MSRs)      (12,026)         (12,715)        (8,535)
      Related deferred tax liabilities            3,498              3,714          1,854
      Tangible assets                                $2,128,457      $2,156,033  $1,729,328
      Reconciliation of ending common
        shares outstanding to ending
        tangible common shares
        outstanding
      Common shares outstanding                 8,650,244        8,650,314    5,017,436
      Conversion of common
        equivalent shares                            1,286,000                    -                 -
      Tangible common shares
        outstanding                                      9,936,244        8,650,314    5,017,436
      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)@@end@@

    The Corporation reports Global Card Services' results on a managed basis  which is consistent with the way that management evaluates the results  of  Global Card Services. Managed basis assumes that securitized loans  were not sold and presents earnings on these loans in a manner similar  to the way loans that have not been sold (i.e., held loans) are  presented. Loan securitization is an alternative funding process that is  used by the Corporation to diversify funding sources. Loan  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.t14@@      -- 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 securitized 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@@

    Global Card Services  

@@start.t15@@                                 Year Ended December 31,        Year Ended December 31,
                                                2009                                      2008
                                                Securiti-                            Securiti-
                                 Managed    zation    Held      Managed    zation      Held
                                Basis (1) Impact(2) Basis    Basis(1) Impact(2)  Basis
                                 -------  -------- -------  -------  --------  -------
      Net interest
        income (3)        $20,264  $(9,250)  $11,014  $19,589    $(8,701)  $10,888
      Noninterest
        income:
         Card income        8,555    (2,034)      6,521    10,033        2,250      12,283
         All other
          income                 523        (115)         408      1,598         (219)      1,379
            Total
              noninterest
              income          9,078    (2,149)      6,929    11,631        2,031      13,662
            Total revenue,
              net of
              interest
              expense        29,342  (11,399)    17,943    31,220      (6,670)    24,550
      Provision for
        credit losses    30,081  (11,399)    18,682    20,164      (6,670)    13,494
      Noninterest
        expense                7,961            -        7,961      9,160              -        9,160
      Income (loss)
        before income
        taxes                 (8,700)          -      (8,700)    1,896              -        1,896
      Income tax
        expense
        (benefit) (3)    (3,145)          -      (3,145)        662              -          662
          Net income
            (loss)         $(5,555)         $-    $(5,555)  $1,234            $-      $1,234
      Average - total
        loans and
        leases            $216,654 $(98,453) $118,201 $236,714 $(104,401) $132,313
      All Other
                                 Year Ended December 31,        Year Ended December 31,
                                                2009                                      2008
                                          Securiti-                                  Securiti-
                          Reported    zation          As         Reported  zation          As
                              Basis      Offset      Adjusted      Basis      Offset      Adjusted
                                 (4)         (2)                            (4)         (2)
      Net interest
        income
        (loss) (3)        $(6,922)  $9,250      $2,328  $(8,019)    $8,701         $682
      Noninterest
        income:
         Card income
          (loss)                (895)    2,034        1,139      2,164      (2,250)         (86)
         Equity
          investment
          income              9,020            -        9,020         265              -          265
         Gains on sales
          of debt
          securities        4,440            -        4,440      1,133              -        1,133
         All other
          income (loss) (6,735)        115      (6,620)      (711)         219         (492)
            Total
              noninterest
              income          5,830      2,149        7,979      2,851      (2,031)         820
            Total revenue,
              net of
              interest
              expense        (1,092)  11,399      10,307    (5,168)      6,670        1,502
      Provision for
        credit losses    (3,431)  11,399        7,968    (3,769)      6,670        2,901
      Merger and
        restructuring
        charges                2,721            -        2,721         935              -          935
      All other
        noninterest
        expense                1,997            -        1,997         189              -          189
            Loss before
              income
              taxes          (2,379)          -      (2,379)  (2,523)            -      (2,523)
      Income tax
        benefit (3)        (2,857)          -      (2,857)  (1,283)            -      (1,283)
            Net income
              (loss)            $478          $-         $478  $(1,240)          $-    $(1,240)
      Average - total
        loans and
        leases            $155,561  $98,453  $254,014 $135,789  $104,401  $240,190@@end@@

    (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.

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

Contact:
CONTACT:  Investors, Kevin Stitt, +1-704-386-5667 or Lee
McEntire,+1-704-388-6780; or Reporters, Scott Silvestri,
+1-980-388-9921,scott.silvestri@bankofamerica.com; all of Bank of
America



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