Bank of America Earns $4.2 Billion in First Quarter



    
    Earnings Exceed All of 2008

    Record Revenue of $36 Billion and Pretax, Pre-Provision Income of $19
Billion

    Merrill Lynch Contributes More Than $3 Billion to Net Income

    Tangible Common Equity Ratio Improves to 3.13 Percent

    Extends $183 Billion in Credit in the First Quarter

    Adds $6.4 Billion to Loan Loss Reserve


    
    CHARLOTTE, N.C., April 20 /PRNewswire-FirstCall/ -- Bank of America
Corporation today reported first-quarter 2009 net income of $4.2 billion.
After preferred dividends, including $402 million paid to the U.S. government,
diluted earnings per share were $0.44.
    

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

    
    Those results compared with net income of $1.2 billion, or diluted
earnings per share of $0.23 after preferred dividends, during the same period
last year.
    

    
    Results for the quarter include Merrill Lynch & Co., which Bank of
America purchased on January 1, 2009, and Countrywide Financial, which was
acquired on July 1, 2008. Merrill Lynch contributed $3.7 billion to net
income, excluding certain merger costs, on strong capital markets revenue.
Countrywide also added to net income as mortgage lending and refinancing
volume increased. The year-ago period does not include Merrill Lynch and
Countrywide results.
    

    
    The company also took several actions in the quarter to enhance its
capital and liquidity position, including strengthening its loan loss reserves
and building its cash position.
    

    
    "The fact that we were able to post strong, positive net income for the
quarter is extremely welcome news in this environment," said Kenneth D. Lewis,
chairman and chief executive officer. "It shows the power of our diversified
business model as well as the ability of our associates to execute. We are
especially gratified that our new teammates at Countrywide and Merrill Lynch
had outstanding performance that contributed significantly to our success."
    

    
    However, we understand that we continue to face extremely difficult
challenges primarily from deteriorating credit quality driven by weakness in
the economy and growing unemployment," Lewis said. "Our company continues to
be a solid contributor to the effort to revitalize the U.S. economy through
our industry-leading efforts to reform mortgage lending, restructure home
loans where appropriate and mitigate foreclosures wherever possible. We look
forward to continuing that role."
    

    First Quarter 2009 Business Highlights

    --  Bank of America Merrill Lynch was No. 2 in global and U.S. investment
        banking fees during the quarter and based on volume was No. 1 in U.S.
        equity capital markets, No. 1 in U.S. high yield debt, leveraged and
        syndicated loans, and was a top-five advisor on mergers and
        acquisitions globally and in the U.S., according to first-quarter
        league tables.


    --  Bank of America funded $85 billion in first mortgages, helping more
        than 382,000 people either purchase a home or refinance their existing
        mortgage. Approximately 25 percent were for purchases.


    --  Credit extended during the quarter, including commercial renewals of
        $44.3 billion, was $183.1 billion compared with $180.8 billion in the
        fourth quarter. New credit included $85.2 billion in mortgages, $70.9
        billion in commercial non-real estate, $11.2 billion in commercial
real
        estate, $5.5 billion in domestic and small business card, $4.0 billion
        in home equity products and $6.3 billion in other consumer credit.
        Excluding commercial renewals, new credit extended during the period
        was $138.8 billion compared with more than $115 billion in the fourth
        quarter.


    --  During the first quarter, Small Business Banking extended more than
        $720 million in new credit comprised of credit cards, loans and lines
        of credit to more than 45,000 new customers.


    --  The company originated $16 billion in mortgages made to 102,000 low-
        and moderate-income borrowers.


    --  To meet rising refinancing and first mortgage application volume, the
        company is in the process of adding approximately 5,000 positions in
        fulfillment. In addition, the company has more than 6,400 associates
in
        place to address increasing needs from consumers for assistance with
        loan modifications.


    --  To help homeowners avoid foreclosure, Bank of America modified nearly
        119,000 home loans during the quarter. Last year, the company embarked
        on a loan modification program projected to modify over $100 billion
in
        loans to help keep up to 630,000 borrowers in their homes. The
        centerpiece of the program is a proactive loan modification process to
        provide relief to eligible borrowers who are seriously delinquent or
        are likely to become seriously delinquent as a result of loan
features,
        such as rate resets or payment recasts. In some instances, innovative
        new approaches will be employed to include automatic streamlined loan
        modifications across certain classes of borrowers. Also during the
        first quarter, the company began a new program that utilizes
        affordability measures to qualify borrowers for loan modifications.


    --  Average retail deposits in the quarter increased $140.0 billion, or 27
        percent, from a year earlier, including $107.3 billion in balances
from
        Countrywide and Merrill Lynch. Excluding Countrywide and Merrill
Lynch,
        Bank of America grew retail deposits $32.7 billion, or 6 percent, from
        the year-ago quarter.

    Transition Update

    
    The Merrill Lynch integration is on track and expected to meet targeted
cost savings. Senior- and middle-management appointments have been made across
all lines of business, including the complete integration of global research,
and the combination of a large number of client-facing teams in corporate and
investment banking and Global Markets is in place.
    

    
    Merrill Lynch financial advisors and Bank of America are engaged in
client referrals. Merrill Lynch financial advisors are in the process of
integrating Bank of America's broad product set to offer clients. The business
has had early success with a sales program for certificates of deposit, which
booked more than $135 million in CDs in Florida alone. The program soon will
be rolled out nationally.
    

    
    Bank of America and Merrill Lynch investment banking teams worked
jointly, providing advice and financing on numerous transactions in the
quarter.
    

    
    The Countrywide transition is on track. Cost savings from the acquisition
are ahead of schedule.
    

    
    Later this month, the company will introduce the Bank of America Home
Loans and Insurance brand to consumers.
    

    First Quarter 2009 Financial Summary

    Revenue and Expense

    
    Revenue net of interest expense on a fully taxable-equivalent basis more
than doubled to a record $36.1 billion from a year ago.
    

    
    Net interest income on a fully taxable-equivalent basis rose 25 percent
to $12.8 billion from $10.3 billion in the first quarter of 2008 due to an
improved rate environment, the addition of Countrywide and Merrill Lynch and
an increase in market-based net interest income. These improvements were
impacted by the sale of securities and higher funding costs related to an
increase in long-term debt. The net interest yield declined three basis points
to 2.70 percent due to lower-yielding assets associated with the acquisitions
during the past year.
    

    
    Noninterest income rose more than threefold to $23.3 billion compared
with a year earlier. Increases in trading account profits, investment and
brokerage services, gains on sales of debt securities and other income
reflected the addition of Merrill Lynch while growth in mortgage banking
income reflected the Countrywide acquisition and higher mortgage activity due
to lower interest rates. Equity investment income includes a $1.9 billion
pretax gain on the sale of China Construction Bank (CCB) shares. Bank of
America continues to own approximately 17 percent of the common shares of CCB.
These increases were partially offset by lower card income due to higher
credit costs on securitized credit card loans and lower revenues.
    

    
    Noninterest income included $2.2 billion in gains related to
mark-to-market adjustments on certain Merrill Lynch structured notes as a
result of credit spreads widening.
    

    
    Noninterest expense increased to $17.0 billion from $9.3 billion a year
earlier. Higher personnel and general operating expenses, driven in part by
the Merrill Lynch and Countrywide acquisitions, contributed $6.4 billion of
the increase. Pretax merger and restructuring charges related to acquisitions
rose to $765 million from $170 million a year earlier.
    

    
    The efficiency ratio on a fully taxable-equivalent basis was 47.12
percent compared with 53.32 percent a year earlier. Pretax, pre-provision
income on fully taxable-equivalent basis was a record $19.1 billion.
    

    Credit Quality

    
    Credit quality deteriorated further across all lines of business as
housing prices continued to fall and the economic environment weakened.
Consumers are under significant stress from rising unemployment and
underemployment levels. These conditions led to higher losses in almost all
consumer portfolios.
    

    
    Declining home values, reduced spending by consumers and businesses and
continued turmoil in the financial markets negatively impacted the commercial
portfolio. Commercial losses increased from the prior quarter driven by higher
broad-based losses in the non-homebuilder portion of the real estate portfolio
within Global Banking and the small business portfolio within Global Card
Services.
    

    
    The provision for credit losses of $13.4 billion rose from $8.5 billion
in the fourth quarter and included a $6.4 billion net addition to the
allowance for loan and lease losses. Reserves were added across most consumer
portfolios reflecting increasing economic stress on consumers. Reserves were
also increased on commercial portfolios. Nonperforming assets were $25.7
billion compared with $18.2 billion at December 31, 2008 and $7.8 billion at
March 31, 2008, reflecting the continued deterioration in portfolios tied to
housing. The 2009 coverage ratios and amounts shown in the following table
include Merrill Lynch.
    


    Credit Quality Statistics

    

    
    (Dollars in millions)            Q1 2009      Q4 2008      Q1 2008
    

    
    Provision for credit losses      $13,380       $8,535       $6,010
    

    
    Net Charge-offs                    6,942        5,541        2,715
    Net Charge-off ratios(1)            2.85%        2.36%        1.25%
    

    
    Total managed net losses          $9,124       $7,398       $4,131
    Total managed net loss
     ratio(1)                           3.40%        2.84%        1.70%
    


    
                                  At 3/31/09  At 12/31/08   At 3/31/08
    

    
    Nonperforming assets             $25,743      $18,232       $7,827
    Nonperforming assets
     ratio(2)                           2.65%        1.96%        0.90%
    

    
    Allowance for loan and lease
     losses                          $29,048      $23,071      $14,891
    Allowance for loan and lease
     losses ratio(3)                    3.00%        2.49%        1.71%
    

    
    (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 at fair value in accordance
    with SFAS 159.

    Capital Management

    
    Total shareholders' equity was $239.5 billion at March 31. Period end
assets were $2.3 trillion. The Tier 1 Capital ratio was 10.09 percent, up from
9.15 percent at December 31, 2008 and higher than the 7.51 percent a year ago.
The Tangible Common Equity ratio was 3.13 percent, up from 2.93 percent at
December 31, 2008 and lower than 3.21 percent a year earlier.
    

    
    In January, $20.5 billion of common shares were issued in connection with
the Merrill Lynch acquisition. The company also issued $8.6 billion of
preferred shares in exchange for outstanding Merrill Lynch preferred stock.
Additionally, the company issued $30.0 billion in preferred stock related to
the Troubled Asset Relief Program to the U.S. Department of the Treasury. Bank
of America paid a cash dividend of $0.01 per common share. During the quarter,
preferred dividends decreased earnings available to common shareholders by
$1.4 billion. Period end common shares issued and outstanding were 6.40
billion for the first quarter of 2009, 5.02 billion for the fourth quarter of
2008 and 4.45 billion for the year-ago quarter.
    

    First Quarter 2009 Business Segment Results

    
    Effective January 1, Bank of America reports results from six main
business segments. The former Global Consumer and Small Business Banking now
is reflected in three separate business segments: Deposits, Global Card
Services and Home Loans and Insurance. The former Global Corporate and
Investment Banking is now divided into Global Banking and Global Markets.
These results along with Global Wealth Management are presented below. Certain
prior period amounts have been reclassified to conform to current period
presentation.
    

    Deposits

    

    
    (Dollars in millions)                      Q1 2009             Q1 2008
    

    
    Total revenue, net of
     interest expense(1)                        $3,464              $4,150
    

    
    Provision for credit losses                    311                 246
    Noninterest expense                          2,363               2,216
    

    
    Net income                                     493               1,060
    

    
    Efficiency ratio(1)                          68.20%              53.37%
    Return on average equity                      8.41               16.99
    

    
    Deposits(2)                               $377,575            $339,464
    


    
                                            At 3/31/09          At 3/31/08
    

    
    Period ending deposits                    $391,604            $345,990
    

    
    (1) Fully taxable-equivalent basis
    (2) Balances averaged for period

    
    Deposits net income fell 53 percent from a year ago due to lower net
revenue. The decrease in revenue was primarily a result of a lower residual
net interest allocation and spread compression on money market deposits and
certificates of deposit. Noninterest income declined 5 percent as service
charge income decreased due to changes in consumer spending behavior
attributed to current economic conditions.
    

    
    Average consumer deposits rose 11 percent, or $38 billion, from a year
earlier due mainly to the Countrywide acquisition and organic growth in
checking and savings products.
    

    Global Card Services

    

    
    (Dollars in millions)                      Q1 2009             Q1 2008
    

    
    Total managed revenue, net
     of interest expense(1)(2)                  $7,457              $7,868
    

    
    Provision for credit
     losses(3)                                   8,221               4,312
    Noninterest expense                          2,075               2,199
    

    
    Net income (loss)                           (1,769)                867
    

    
    Efficiency ratio(2)                          27.83%              27.95%
    Return on average equity                       n/m                9.18
    

    
    Managed loans(4)                          $224,406            $229,147
    


    
                                            At 3/31/09          At 3/31/08
    

    
    Period ending loans                       $218,031            $229,974
    

    
    (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, which now includes Debit Card to better coordinate
the company's payments businesses, swung to a net loss of $1.8 billion as the
weak economic environment drove credit costs higher. Managed net revenue
declined 5 percent to $7.5 billion due mainly to lower fee income and the
absence of the positive impact from the Visa Inc. initial public offering a
year earlier. The decline was partially offset by higher net interest income
due to lower funding costs.
    

    
    Provision expense nearly doubled to $8.2 billion from a year earlier as
economic conditions led to deterioration in the consumer card, consumer
lending and small business portfolios, including a higher level of
bankruptcies. Also contributing were reserve additions related to maturing
securitizations.
    

    
    Noninterest expense decreased 6 percent due to lower levels of
marketing-related expenses.
    

    Home Loans and Insurance

    

    
    (Dollars in millions)                      Q1 2009             Q1 2008
    

    
    Total revenue, net of
     interest expense(1)                        $5,224              $1,372
    

    
    Provision for credit losses                  3,372               1,812
    Noninterest expense                          2,650                 722
    

    
    Net income (loss)                             (498)               (732)
    

    
    Efficiency ratio(1)                          50.73%              52.66%
    Return on average equity                       n/m                 n/m
    

    
    Loans(2)                                  $126,696             $87,238
    


    
                                            At 3/31/09          At 3/31/08
    

    
    Period ending loans                       $131,343             $88,321
    

    
    (1) Fully taxable-equivalent basis
    (2) Balances averaged for period
    

    
    n/m = not meaningful

    
    The net loss in Home Loans and Insurance narrowed to $498 million as
revenue rose, mostly offset by higher credit costs and noninterest expense.
Net revenue nearly quadrupled to $5.2 billion primarily due to the acquisition
of Countrywide and from higher mortgage banking income as lower interest rates
drove an increase in mortgage activity.
    

    
    The provision for credit losses increased to $3.4 billion driven by
economic and housing market weakness particularly in regions experiencing
higher unemployment and falling home prices.
    

    
    Noninterest expense increased to $2.7 billion primarily due to the
acquisition of Countrywide.
    

    Global Banking

    

    
    (Dollars in millions)                      Q1 2009             Q1 2008
    

    
    Total revenue, net of
     interest expense(1)                        $4,641              $3,856
    

    
    Provision for credit losses                  1,848                 526
    Noninterest expense                          2,511               1,740
    

    
    Net income                                     175               1,000
    

    
    Efficiency ratio(1)                          54.11%              45.13%
    Return on average equity                      1.25                8.73
    

    
    Loans and leases(2)                       $330,972            $305,924
    Deposits(2)                                196,061             160,726
    

    
    (1) Fully taxable-equivalent basis
    (2) Balances averaged for period

    
    Global Banking net income fell to $175 million as credit costs increased
and noninterest expense rose.
    

    
    Net revenue increased 20 percent mainly from the addition of Merrill
Lynch, strong advisory and capital markets income and improvement in net
interest income driven by loan spreads and increased deposit balances.
    

    
    The provision for credit losses increased to $1.8 billion as net
charge-offs and reserves continued to rise, primarily in the real estate and
retail dealer-related portfolios.
    


    --  Corporate Banking revenue of $1.4 billion increased 30 percent as a
        result of higher loan and deposit balances, increased loan spreads and
        fee income as clients returned to more traditional providers of
        financing. These positive impacts were partially offset by lower
        revenue attributed to the impact of lower interest rates on deposit
        balances.


    --  Commercial Banking revenue rose 3 percent to $2.8 billion driven by a
        20 percent increase in deposit balances and a more modest increase in
        both loan balances and spreads. The year-ago quarter included the
        positive impact from the Visa Inc. initial public offering.

    --  Investment Banking revenue of $433 million includes fees from mergers
        and acquisitions, market share gains in debt and equity capital
markets
        fees and reflects the impact of the Merrill Lynch integration.
        Investment banking income more than doubled, driven by debt capital
        raising and advisory fees.

        --  Note: Total investment banking income in the quarter of $1.1
            billion is shared between Global Banking and Global Markets based
            on an internal fee-sharing arrangement between the two segments.
            Advisory fee income more than quadrupled from the year-ago
quarter,
            while fees from debt capital raising almost doubled, reflecting
the
            increased size and breadth from the acquisition of Merrill Lynch.

    Global Markets

    

    
    (Dollars in millions)                      Q1 2009             Q1 2008
    

    
    Total revenue, net of
     interest expense(1)                        $6,791               $(848)
    

    
    Provision for credit losses                     51                  (1)
    Noninterest expense                          3,059                 726
    

    
    Net income                                   2,365                (991)
    

    
    Efficiency ratio(1)                          45.04%                n/m
    Return on average equity                     33.81                 n/m
    

    
    Loans and leases(2)                        $18,610             $20,927
    Trading-related
     assets(2)                                 536,977             357,488
    Deposits(2)                                  8,516              13,486
    

    
    (1) Fully taxable-equivalent basis
    (2) Balances averaged for period
    

    
    n/m = not meaningful

    
    Global Markets swung to net income of $2.4 billion due to the Merrill
Lynch acquisition and lower losses on positions that resulted from market
disruptions including collateralized debt obligations (CDOs), leveraged
lending and commercial mortgages.
    

    
    Net revenue was $6.8 billion, which included $1.7 billion of losses
primarily on positions that resulted from market disruptions. The increase in
net revenue was driven by the addition of Merrill Lynch, strong trading
results in interest and currency rate products, equities and commodities.
    


    --  Rates and Currencies revenue of $3.6 billion was driven by the
enhanced
        global breadth of product and distribution capabilities from the
        acquisition of Merrill Lynch, increased volatility in interest and
        currency rates.


    --  Mortgage and Credit revenues of $1.2 billion and $890 million,
        respectively, were driven by the complementary nature of the legacy
        institution platforms relating to origination and distribution, as
well
        as lower market liquidity driven losses.


    --  Equities revenue of $1.4 billion increased due mainly to the
        acquisition of Merrill Lynch, despite the weak origination market and
        lower financing revenue opportunities as a result of deleveraging by
        clients.


    --  Commodities revenue of $536 million was driven by the power and
natural
        gas markets.

    Global Wealth Management

    

    
    (Dollars in millions)                      Q1 2009             Q1 2008
    

    
    Total revenue, net of
     interest expense (1)                       $4,361              $1,942
    

    
    Provision for credit losses                    254                 243
    Noninterest expense                          3,288               1,314
    

    
    Net income                                     510                 242
    

    
    Efficiency ratio(1)                          75.41%              67.71%
    Return on average equity                     11.21                8.40
    

    
    Loans(2)                                  $110,533             $85,644
    Deposits(2)                                249,350             148,503
    


    
    (in billions)                           At 3/31/09          At 3/31/08
    

    
    Assets under management                     $697.3              $607.5
    

    
    (1) Fully taxable-equivalent basis
    (2) Balances averaged for period

    
    Net income more than doubled to $510 million due to the acquisition of
Merrill Lynch partially offset by lower net interest income from legacy Bank
of America.
    

    
    Net revenue increased to $4.4 billion as investment and brokerage service
income rose to $2.4 billion and net interest income increased 62 percent
mainly from the acquisition of Merrill Lynch.
    


    --  U.S. Trust, Bank of America Private Wealth Management net income fell
        28 percent to $95 million as net revenue declined and credit costs
        rose. Net revenue decreased 4 percent to $692 million on lower
        investment and brokerage services income.


    --  The net loss in Columbia Management narrowed to $50 million from $82
        million in the same period last year due primarily to the $103 million
        reduction in support provided to certain cash funds, partially offset
        by the impact of declining equity markets on investment and brokerage
        fees.


    --  Global Wealth Advisors, which includes the wealth management
        organization of Merrill Lynch, had net income of $565 million,
compared
        with $176 million a year earlier driven by the positive impact on
        earnings from the acquisition. Net revenue increased to $3.3 billion
        compared with $983 million as asset management fees and brokerage
        income rose due to the acquisition of Merrill Lynch partially offset
by
        the effect of lower equity markets and spread compression.

    All Other(1,2)

    

    
    (Dollars in millions)                      Q1 2009             Q1 2008
    

    
    Total revenue, net of
     interest expense(3)                        $4,142               $(969)
    

    
    Provision for credit losses                   (677)             (1,128)
    Noninterest expense                          1,056                 346
    

    
    Net income                                   2,971                (236)
    

    
    Loans and leases(4)                       $168,450            $133,883
    

    
    (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 related to certain Merrill Lynch structured notes and the
        results of certain consumer finance, investment management and
        commercial lending businesses that are being liquidated. All Other
        also includes the offsetting securitization impact to present Global
        Card Services on a managed basis. For more information and detailed
        reconciliation, please refer to the data pages supplied with this
        Press Release.
    (2) Effective January 1, 2009, All Other includes the results of First
        Republic Bank, which was acquired as part of the Merrill Lynch
        acquisition.
    (3) Fully taxable-equivalent basis
    (4) Balances averaged for period


    
    All Other swung to net income of $3.0 billion from a net loss of $236
million a year earlier. Fair value adjustments related to certain Merrill
Lynch structured notes, increased gains on sales of debt securities and higher
equity investment income related to the gain on the sale of CCB shares drove
the increase. The provision for credit losses rose due to deterioration in the
residential mortgage portfolio. Noninterest expense increased mostly on merger
and restructuring charges related to the Merrill Lynch acquisition.
    

    
    Note: Chairman and Chief Executive Officer Kenneth D. Lewis and Chief
Financial Officer Joe L. Price will discuss first 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 55
million consumer and small business relationships with more than 6,100 retail
banking offices, more than 18,500 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 (NYSE:   BAC) is a component of the Dow Jones
Industrial Average and is listed on the New York Stock Exchange.
    

    
    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, loan modifications, investment bank rankings, loan and deposit
growth, mortgage originations and market share, credit losses, credit reserves
and charge-offs, consumer credit card net loss ratios, tax rates, payments on
mortgage-backed securities, global markets originations and trading 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:  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.
    

    www.bankofamerica.com



    

    
    Bank of America Corporation and Subsidiaries
    Selected Financial Data
    

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

    
                                                    Three Months Ended
    Summary Income Statement                             March 31
    ------------------------                        ------------------
                                                      2009       2008
                                                      ----       ----
    Net interest income                             $12,497     $9,991
    Total noninterest income                         23,261      7,080
                                                     ------      -----
      Total revenue, net of interest expense         35,758     17,071
    Provision for credit losses                      13,380      6,010
    Noninterest expense, before merger and
     restructuring charges                           16,237      9,093
    Merger and restructuring charges                    765        170
                                                        ---        ---
      Income before income taxes                      5,376      1,798
    Income tax expense                                1,129        588
                                                      -----        ---
      Net income                                     $4,247     $1,210
                                                     ======     ======
    Preferred stock dividends                         1,433        190
                                                      -----        ---
      Net income applicable to common
       shareholders                                  $2,814     $1,020
                                                     ======     ======
    

    
    Earnings per common share                         $0.44      $0.23
    Diluted earnings per common share                  0.44       0.23
    


    
                                                    Three Months Ended
    Summary Average Balance Sheet                        March 31
    -----------------------------                   ------------------
                                                      2009       2008
                                                      ----       ----
    Total loans and leases                         $994,121   $875,661
    Debt securities                                 286,249    219,377
    Total earning assets                          1,912,483  1,510,295
    Total assets                                  2,519,134  1,764,927
    Total deposits                                  964,081    787,623
    Shareholders' equity                            228,766    154,728
    Common shareholders' equity                     160,739    141,456
    


    
                                                    Three Months Ended
    Performance Ratios                                   March 31
    -------------------                             ------------------
                                                      2009       2008
                                                      ----       ----
    Return on average assets                           0.68%      0.28%
    Return on average common shareholders' equity      7.10       2.90
    


    
                                                    Three Months Ended
    Credit Quality                                       March 31
    --------------                                  ------------------
                                                      2009       2008
                                                      ----       ----
    Total net charge-offs                            $6,942     $2,715
    Annualized net charge-offs as a % of
     average loans and leases outstanding (1)          2.85%      1.25%
    Provision for credit losses                     $13,380     $6,010
    Total consumer credit card managed net losses     3,794      2,372
    Total consumer credit card managed net
     losses as a % of average managed
     credit card receivables                           8.62%      5.19%
    


    
                                                           March 31
                                                     ------------------
                                                      2009       2008
                                                      ----       ----
    Total nonperforming assets                      $25,743     $7,827
    Nonperforming assets as a % of total loans,
     leases and foreclosed properties (1)              2.65%      0.90%
    Allowance for loan and lease losses             $29,048    $14,891
    Allowance for loan and lease losses as a %
     of total loans and leases (1)                     3.00%      1.71%
    


    
    Capital Management                                     March 31
    ------------------                               ------------------
                                                       2009       2008
                                                       ----       ----
    Risk-based capital ratios:
      Tier 1                                          10.09%      7.51%
      Total                                           14.03      11.71
    Tangible equity ratio (2)                          6.42       4.26
    Tangible common equity ratio (3)                   3.13       3.21
    

    
    Period-end common shares issued
     and outstanding                              6,400,950  4,452,810
    


    
                                                    Three Months Ended
                                                         March 31
                                                    ------------------
                                                      2009       2008
                                                      ----       ----
    Shares issued (4)                             1,383,514     14,925
    Average common shares issued and outstanding  6,370,815  4,427,823
    Average diluted common shares issued
     and outstanding                              6,431,027  4,461,201
    Dividends paid per common share                   $0.01      $0.64
    


    
    Summary End of Period Balance Sheet                 March 31
    -----------------------------------             ------------------
                                                      2009       2008
                                                      ----       ----
    Total loans and leases                         $977,008   $873,870
    Total debt securities                           262,638    223,000
    Total earning assets                          1,714,460  1,458,017
    Total assets                                  2,321,963  1,736,502
    Total deposits                                  953,508    797,069
    Total shareholders' equity                      239,549    156,309
    Common shareholders' equity                     166,272    139,003
    Book value per share of common stock             $25.98     $31.22
    

    
    ---------------------------------------------
    (1) Ratios do not include loans measured at fair value in accordance
        with SFAS 159 at and for the three months ended March 31, 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) Includes approximately 1.375 billion shares issued in the Merrill
        Lynch acquisition.
    Certain prior period amounts have been reclassified to conform to current
    period presentation.
    


    
    Information for periods beginning July 1, 2008 include the Countrywide
    acquisition. Information for the period beginning January 1, 2009
    includes the Merrill Lynch acquisition. Prior periods have not been
    restated.
    This information is preliminary and based on company data available at
    the time of the presentation.
    



    
    Bank of America Corporation and Subsidiaries
    Business Segment Results
    ------------------------
    (Dollars in millions)
    

    
    For the three months
     ended March 31
    

    
                                             Global Card        Home Loans &
                           Deposits         Services (1,2)        Insurance
                        --------------      --------------      -------------
                        2009      2008      2009      2008      2009     2008
                        ----      ----      ----      ----      ----     ----
    Total revenue,
     net of interest
     expense (3)      $3,464    $4,150    $7,457    $7,868    $5,224   $1,372
    Provision for
     credit losses       311       246     8,221     4,312     3,372    1,812
    Noninterest
     expense           2,363     2,216     2,075     2,199     2,650      722
    Net income
     (loss)              493     1,060    (1,769)      867      (498)    (732)
    

    
    Efficiency
     ratio (3)         68.20%    53.37%    27.83%    27.95%    50.73%   52.66%
    Return on
     average equity     8.41     16.99      n/m       9.18      n/m      n/m
    Average -
     total loans and
     leases             n/a       n/a   $224,406  $229,147  $126,696  $87,238
    Average -
     total deposits $377,575  $339,464      n/a       n/a       n/a      n/a
    


    
                                                                Global Wealth
                        Global Banking      Global Markets       Management
                        --------------      --------------      -------------
                        2009      2008      2009      2008      2009     2008
                        ----      ----      ----      ----      ----     ----
    Total revenue,
     net of interest
     expense (3)      $4,641    $3,856    $6,791     $(848)   $4,361   $1,942
    Provision for
     credit losses     1,848       526        51        (1)      254      243
    Noninterest
     expense           2,511     1,740     3,059       726     3,288    1,314
    Net income           175     1,000     2,365      (991)      510      242
    

    
    Efficiency
     ratio (3)         54.11%    45.13%    45.04%     n/m      75.41%   67.71%
    Return on
     average equity     1.25      8.73     33.81      n/m      11.21     8.40
    Average -
     total loans
     and leases     $330,972  $305,924   $18,610   $20,927  $110,533  $85,644
    Average -
     total deposits  196,061   160,726     8,516    13,486   249,350  148,503
    


    
                       All Other (1,4)
                       ----------------
                        2009      2008
                        ----      ----
    Total revenue,
     net of interest
     expense (3)      $4,142     $(969)
    Provision for
     credit losses      (677)   (1,128)
    Noninterest
     expense           1,056       346
    Net income         2,971      (236)
    

    
    Average -
     total loans
     and leases     $168,450  $133,883
    Average -
     total deposits  109,890   113,219
    

    
    ---------------
    (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
    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.
    



    
    Bank of America Corporation and Subsidiaries
    Supplemental Financial Data
    ---------------------------
    (Dollars in millions)
                                                    Three Months
    Fully taxable-equivalent basis data            Ended March 31
    -----------------------------------            --------------
                                                    2009     2008
                                                    ----     ----
    Net interest income                          $12,819  $10,291
    Total revenue, net of interest expense        36,080   17,371
    Net interest yield                              2.70%    2.73%
    Efficiency ratio                               47.12    53.32
    


    
    Other Data                                       March 31
    ----------                                     --------------
                                                    2009     2008
                                                    ----     ----
    Full-time equivalent employees               284,802  209,096
    Number of banking centers - domestic           6,145    6,148
    Number of branded ATMs - domestic             18,532   18,491
    

    
    Certain prior period amounts have been reclassified to conform to
    current period presentation.
    


    
    Information for periods beginning July 1, 2008 include the Countrywide
    acquisition. Information for the period beginning January 1, 2009
    includes the Merrill Lynch acquisition. Prior periods have not been
    restated.
    

    
    This information is preliminary and based on company data available at
    the time of the presentation.
    



    
    Bank of America Corporation and Subsidiaries
    Reconciliation - Managed to GAAP
    ---------------------------------
    (Dollars in millions)
    


    
    The Corporation reports Global Card Services on a managed basis. Reporting
    on a managed basis is consistent with the way that management evaluates
    the results of  Global Card Services.
    Managed basis assumes that securitized loans were not sold and presents
    earnings on these loans in a manner similar to the way loans that have not
    been sold (i.e., held loans) are presented.
    Loan securitization is an alternative funding process that is used by the
    Corporation to diversify funding sources. Loan securitization removes
    loans from the Consolidated Balance Sheet through the sale of loans to an
    off-balance sheet qualified special purpose entity which is excluded from
    the Corporation's Consolidated Financial Statements in accordance with
    accounting principles generally accepted in the United States (GAAP).
    

    
    The performance of the managed portfolio is important in understanding
    Global Card Services' results as it demonstrates the results of the entire
    portfolio serviced by the business. Securitized loans continue to be
    serviced by the business and are subject to the same underwriting
    standards and ongoing monitoring as held loans. In addition, retained
    excess servicing income is exposed to similar credit risk and repricing
    of interest rates as held loans. Global Card Services' managed income
    statement line items differ from a held basis reported as follows:
    

    
    - Managed net interest income includes Global Card Services' net interest
      income on held loans and interest income on the securitized loans less
      the internal funds transfer pricing allocation related to securitized
      loans.
    - Managed noninterest income includes Global Card Services' noninterest
      income on a held basis less the reclassification of certain components
      of card income (e.g., excess servicing income) to record managed net
      interest income and provision for credit losses. Noninterest income,
      both on a held and managed basis, also includes the impact of
      adjustments to the interest-only strip that are recorded in card
      income as management continues to manage this impact within Global
      Card Services.
    - Provision for credit losses represents the provision for credit
      losses on held loans combined with realized credit losses associated
      with the securitized loan portfolio.
    


    
    Global Card Services
                                      Three Months Ended March 31, 2009
                                    -------------------------------------
                                                    Securiti-
                                       Managed        zation      Held
                                       Basis (1)    Impact (2)    Basis
                                       ---------    ----------    -----
    Net interest income (3)               $5,207     $(2,391)   $2,816
    Noninterest income:
        Card income                        2,115         244     2,359
        All other income                     135         (35)      100
                                             ---         ---       ---
            Total noninterest
             income                        2,250         209     2,459
                                           -----         ---     -----
            Total revenue, net of
             interest expense              7,457      (2,182)    5,275
    

    
    Provision for credit losses            8,221      (2,182)    6,039
    Noninterest expense                    2,075           -     2,075
                                           -----         ---     -----
            Income (loss) before
             income taxes                 (2,839)          -    (2,839)
    Income tax expense
     (benefit) (3)                        (1,070)          -    (1,070)
                                          ------         ---    ------
             Net income (loss)           $(1,769)         $-   $(1,769)
                                         =======         ===   =======
    

    
       Average - total loans and
       leases                           $224,406   $(102,672) $121,734
    


    
                                      Three Months Ended March 31, 2008
                                    -------------------------------------
                                                    Securiti-
                                       Managed        zation      Held
                                       Basis (1)    Impact (2)    Basis
                                       ---------    ----------    -----
    Net interest income (3)               $4,527     $(2,055)   $2,472
    Noninterest income:
        Card income                        2,720         704     3,424
        All other income                     621         (65)      556
                                             ---         ---       ---
            Total noninterest
             income                        3,341         639     3,980
                                           -----         ---     -----
            Total revenue, net of
             interest expense              7,868      (1,416)    6,452
    

    
    Provision for credit losses            4,312      (1,416)    2,896
    Noninterest expense                    2,199           -     2,199
                                           -----         ---     -----
            Income (loss) before
             income taxes                  1,357           -     1,357
    Income tax expense
     (benefit) (3)                           490           -       490
                                             ---         ---       ---
             Net income (loss)              $867          $-      $867
                                            ====         ===      ====
    

    
       Average - total loans and
       leases                           $229,147   $(105,176) $123,971
    



    
    All Other
                                      Three Months Ended March 31, 2009
                                    -------------------------------------
                                                     Securiti-
                                       Reported       zation       As
                                       Basis (4)    Offset (2)  Adjusted
                                      ----------    ----------  --------
    Net interest income (3)              $(1,780)     $2,391      $611
    Noninterest income:
        Card income (loss)                   534        (244)      290
        Equity investment income           1,326           -     1,326
        Gains on sales of debt
         securities                        1,471           -     1,471
        All other income (loss)            2,591          35     2,626
                                           -----         ---     -----
            Total noninterest
             income                        5,922        (209)    5,713
                                           -----        ----     -----
            Total revenue, net of
             interest expense              4,142       2,182     6,324
    

    
    Provision for credit losses             (677)      2,182     1,505
    Merger and restructuring
     charges                                 765           -       765
    All other noninterest expense            291           -       291
                                             ---         ---       ---
            Income (loss) before
             income taxes                  3,763           -     3,763
    Income tax expense (3)                   792           -       792
                                             ---         ---       ---
             Net income (loss)            $2,971          $-    $2,971
                                          ======         ===    ======
    

    
       Average - total loans and
       leases                           $168,450    $102,672  $271,122
    


    
                                      Three Months Ended March 31, 2008
                                      ---------------------------------
                                                     Securiti-
                                       Reported       zation       As
                                       Basis (4)    Offset (2)  Adjusted
                                      ----------    ----------  --------
    Net interest income (3)              $(1,856)     $2,055      $199
    Noninterest income:
        Card income (loss)                   663        (704)      (41)
        Equity investment income             268           -       268
        Gains on sales of debt
         securities                          220           -       220
        All other income (loss)             (264)         65      (199)
                                            ----         ---      ----
            Total noninterest
             income                          887        (639)      248
                                             ---        ----       ---
            Total revenue, net of
             interest expense               (969)      1,416       447
    

    
    Provision for credit losses           (1,128)      1,416       288
    Merger and restructuring
     charges                                 170           -       170
    All other noninterest expense            176           -       176
                                             ---         ---       ---
            Income (loss) before
             income taxes                   (187)          -      (187)
    Income tax expense (3)                    49           -        49
                                              --         ---        --
             Net income (loss)             $(236)         $-     $(236)
                                           =====         ===     =====
    

    
       Average - total loans and
       leases                           $133,883    $105,176  $239,059
    

    
    -----------------------------
    (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.





    




For further information:

For further information: Investors: Kevin Stitt, +1-704-386-5667, Lee
McEntire, +1-704-388-6780, or Grace Yoon, +1-212-449-7323; or Reporters: Scott
Silvestri, +1-980-388-9921, scott.silvestri@bankofamerica.com, all of Bank of
America Web Site: http://www.bankofamerica.com

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