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Bank of America Third Quarter Earnings Per Share Decline 31% to 82 Cents

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Supplemental third quarter 2007 financial information

Capital Markets Losses Offset Solid Revenue Growth in Most Businesses

CHARLOTTE, Oct. 18 /PRNewswire-FirstCall/ -- Bank of America Corporation today reported third quarter net income declined 32 percent to $3.70 billion from $5.42 billion a year earlier. Diluted earnings per share fell 31 percent to $0.82 from $1.18.

Lower net income resulted from a $1.33 billion decline in earnings in Global Corporate and Investment Banking given the significant disruption in the financial markets during the quarter. Provision expense increased $865 million due to consumer and small business credit costs rising from post bankruptcy reform lows, growth and seasoning in various portfolios and stress in several portfolios driven by the weakened U.S. housing market.

"While the significant dislocations in the capital markets have hurt most participants, we are still very disappointed in our third quarter performance," said Kenneth D. Lewis, chairman and chief executive officer. "However, the majority of our businesses experienced solid revenue growth as sales momentum continued, demonstrating the value of our diverse business mix. We continued to invest in our businesses for the long term and to introduce innovative products and services to differentiate Bank of America in the marketplace. While we cannot predict the near term, I am confident that such innovation and execution combined with the advantages of scale and reach are the formula for future success."

    Impact of Capital Markets on Financial Results

     * Unprecedented market disruptions impacted trading results. As a result,
       Global Corporate and Investment Banking net income fell 93 percent to
       $100 million from $1.43 billion a year earlier.
     * Capital Markets and Advisory Services, a business within GCIB which
       includes Liquid Products, Credit Products, Structured Products and
       Equities, posted a $717 million net loss compared with net income of
       $298 million a year earlier. Included in the net loss for the quarter
       were $247 million in markdowns, net of fees, on leveraged and non-
       leveraged loans and commitments.
         - Contributing to the loss in Credit Products was a $607 million
           trading revenue loss due principally to the breakdowns in
           traditional pricing relationships, which made hedges ineffective,
           and the widening of credit spreads.
         - Structured Products, which includes asset-backed and residential
           mortgage-backed securities, commercial mortgages, collateralized
           debt obligations (CDOs) and structured credit trading had a net
           revenue loss of $527 million. The loss arose from lower investment
           banking fees and trading declines principally due to the same
           conditions affecting Credit Products.

    Third Quarter 2007 Business Highlights (vs. a year earlier)

     * Total sales of retail products rose 12 percent, generated by strong
       growth in sales of first mortgages, checking and savings accounts and
       online banking activations. Net new retail checking accounts grew to a
       record 757,000.
     * Retail deposits increased $16.52 billion, or 4 percent. Debit card
       purchase volume increased 11 percent and an increase in retail accounts
       drove service charge income higher by 8 percent.
     * First mortgage originations rose 27 percent helped by the success of No
       Fee Mortgage PLUS, which accounted for 21 percent of first mortgage
       production in the third quarter.
     * Average loans and leases in Business Lending increased 9 percent to
       nearly $240 billion.
     * Total unit sales to small businesses with less than $2.5 million in
       annual sales rose 24 percent, while average deposits grew 9 percent.
     * Total assets under management (AUM) in Global Wealth and Investment
       Management increased to a record of nearly $710 billion helped by the
       addition of U.S. Trust and strong net flows. On a 1-year and 3-year AUM
       weighted basis, 63 percent and 96 percent, respectively, of the
       Columbia Funds and Excelsior equity funds were in the top 2 performance
       quartiles compared with their peer group.(1)

(1) Results shown are defined by Global Wealth and Investment Management's calculation of the percentage of assets under management in the top two quartiles of categories based on Morningstar as of August 31, 2007. The category percentile rank was calculated by ranking the three year net return of share classes within the categories. The assets of the number of funds within the top 2 quartile results were added and then divided by Global Wealth and Investment Management's total assets under management. Past performance is no guarantee of future results. The share class earning the ranking may have limited eligibility and may not be available to all investors.


    Third Quarter 2007 Financial Summary

    Revenue

Revenue net of interest expense on a fully taxable-equivalent basis declined 12 percent to $16.30 billion from $18.49 billion in the third quarter 2006.

Noninterest income fell 24 percent to $7.31 billion from $9.60 billion in the third quarter of 2006. The decrease was mainly due to trading account losses of $1.46 billion and the absence of a gain on the sale of the company's operations in Brazil recognized in the third quarter of last year. The decrease was partially offset by the absence of a $469 million loss on the sale of debt securities a year earlier and improvements in investment and brokerage services and equity investment income.

Net interest income on a fully taxable-equivalent basis was $8.99 billion compared with $8.89 billion the previous year. The net interest yield narrowed 12 basis points to 2.61 percent.

Efficiency

Noninterest expense decreased 4 percent to $8.54 billion from $8.86 billion a year earlier as a result of lower capital markets incentive compensation and pretax merger and restructuring charges. Pretax merger and restructuring charges mainly related to the U.S. Trust acquisition were $84 million compared with $269 million a year earlier which were associated with the MBNA purchase. The efficiency ratio on a fully taxable-equivalent basis was 52.40 percent.

Credit Quality

Credit costs continued to rise from the unusually low levels experienced in 2006 post bankruptcy reform. Given weakened housing and capital markets conditions, certain sectors began to experience some weakness. However, overall credit quality remained sound as credit card losses stabilized, declining from the second quarter.

Provision expense in the third quarter rose from a year ago due to higher net charge-offs and increased reserves from the seasoning of the small business and home equity portfolios, reflecting growth in these businesses. The company also added reserves for its home equity and homebuilder loan portfolios in view of the impact of the weakened U.S. housing market.

     * Provision for credit losses was $2.03 billion, up from $1.81 billion in
       the second quarter of 2007, and $1.17 billion in the third quarter of
       2006.
     * Net charge-offs were $1.57 billion, or 0.80 percent of total average
       loans and leases. This compared with $1.50 billion, or 0.81 percent, in
       the second quarter of 2007 and $1.28 billion, or 0.75 percent, in the
       third quarter of 2006.
     * Total managed net losses were $2.84 billion, or 1.27 percent of total
       average managed loans and leases compared with $2.77 billion, or 1.31
       percent, in the second quarter of 2007 and $2.20 billion, or 1.11
       percent, in the third quarter of 2006.
     * Nonperforming assets were $3.37 billion, or 0.43 percent of total
       loans, leases and foreclosed properties, at September 30 compared with
       $2.39 billion, or 0.32 percent, at June 30, 2007 and $1.66 billion, or
       0.25 percent at September 30, 2006.
     * The allowance for loan and lease losses was $9.54 billion, or 1.21
       percent of total loans and leases measured at historical cost at
       September 30 compared with $9.06 billion, or 1.20 percent, at June 30
       and $8.87 billion, or 1.33 percent, at September 30, 2006.

    Capital Management

Total shareholders' equity was $138.51 billion at September 30. Period-end assets were $1.6 trillion. The Tier 1 capital ratio was 8.22 percent, down from 8.52 percent at June 30, 2007 and 8.48 percent a year ago due to the impact of the U.S. Trust acquisition.

During the quarter, Bank of America paid a cash dividend of $0.64 per share. The company also issued 9.5 million common shares related to employee stock options and ownership plans and repurchased 9.6 million common shares. Period-ending common shares issued and outstanding were 4.44 billion for the third quarter of 2007, compared with 4.44 billion for the second quarter of 2007 and 4.50 billion for the third quarter of 2006.


    Third Quarter 2007 Business Segment Results


    Global Consumer and Small Business Banking(1)

    (Dollars in millions)                        Q3 2007             Q3 2006

    Total managed revenue net of
     interest expense(2)                         $11,985             $11,284

    Provision for credit losses                    3,121               2,049
    Noninterest expense                            4,971               4,619

    Net Income                                     2,452               2,919

    Efficiency ratio                              41.48 %             40.94 %
    Return on average equity                       15.63               18.70

    Managed loans and leases(3)                 $331,656            $291,028
    Deposits(3)                                  321,552             332,500

     (1) Managed basis.  Managed basis assumes that 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) Balances averaged for period

Managed net revenue rose 6 percent as higher card income and service charge income helped generate an 11 percent increase in noninterest income. Net income decreased 16 percent from a year ago as credit costs rose.

The provision for credit losses increased 52 percent to $3.12 billion. The increase resulted mainly from portfolio seasoning due to growth in the businesses and increased losses post bankruptcy reform. The weak housing market also contributed to adding reserves for the home equity portfolio.

    * Deposits net revenue rose 4 percent to $4.42 billion and net income
      increased 3 percent to $1.32 billion as service charges and debit card
      income rose.
    * Card Services managed net revenue rose 6 percent to $6.50 billion while
      net income of $1.08 billion declined 25 percent as credit costs
      increased. Card losses stabilized and declined from the second quarter.
    * Consumer Real Estate had $837 million in net revenue, a 15 percent
      increase, as home equity balances rose and first mortgage originations
      grew. Net income fell 55 percent to $73 million on higher credit costs.


    Global Corporate and Investment Banking


    (Dollars in millions)                        Q3 2007             Q3 2006

    Total revenue net of interest
     expense(1)                                   $2,885              $5,168

    Provision for credit losses                      228                  36
    Noninterest expense                            2,486               2,861

    Net Income                                       100               1,433

    Efficiency ratio                              86.19 %             55.36 %
    Return on average equity                        0.91               13.82

    Loans and leases(2)                         $267,758            $234,800
    Trading-related assets(2)                    356,867             339,119
    Deposits(2)                                  217,632             194,806

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

Net revenue fell 44 percent as sales and trading-related revenue declined, reducing noninterest income by 95 percent. Net income fell 93 percent due to the revenue decrease and higher provision expense (see Impact of Capital Markets on Financial Results on page 2 for details).

The provision for credit losses increased to $228 million from $36 million a year ago, reflecting the impact of the weak housing market particularly on the homebuilder sector.

Spread compression continued to dampen results in Business Lending and Treasury Services, which otherwise continued to deepen client relationships while recording solid business activity.

    * Business Lending net revenue rose 1 percent to $1.39 billion while net
      income decreased 27 percent to $379 million because of higher credit
      costs and continued spread compression. Average loans and leases
      increased 9 percent to nearly $240 billion.
    * Capital Markets and Advisory Services had a net revenue loss of
      $184 million, reflecting declines in trading associated with the
      disruption in the credit markets. The business had a net loss of
      $717 million on sales and trading losses, declines in investment banking
      fees and markdowns on loans held for sale and unfunded commitments
      partially offset by lower incentive compensation. While results in
      Credit Products and Structured Products were sharply lower, Liquid
      Products registered good gains.
    * Treasury Services net revenue declined 8 percent to $1.75 billion, while
      net income decreased 12 percent to $558 million reflecting the sale of a
      merchant services business a year earlier and spread compression.


    Global Wealth and Investment Management


    (Dollars in millions)                        Q3 2007             Q3 2006

    Total revenue net of interest
    expense(1)                                    $2,200              $1,778

    Provision for credit losses                      (29)                  0
    Noninterest expense                            1,274                 965

    Net Income                                       599                 513

    Efficiency ratio                               57.91 %             54.31 %
    Return on average equity                       19.98               20.95

    Loans and leases(2)                          $77,041             $61,684
    Deposits(2)                                  127,819             100,915


    (in billions)                             At 9/30/07          At 9/30/06

    Assets under management                       $709.9              $517.0

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

In July, Bank of America completed the acquisition of U.S. Trust, creating U.S. Trust, Bank of America Private Wealth Management, within Global Wealth and Investment Management to serve wealthy and ultra-wealthy clients.

Net revenue in Global Wealth and Investment Management increased 24 percent as higher customer activity and improved client asset inflows resulted in a 34 percent increase in noninterest income. Net income increased 17 percent from a year ago as fee income increased. The acquisition of U.S. Trust contributed about 10 percent to net revenue and 5 percent to net income.

Asset management fees increased 42 percent to a record $976 million driven by higher assets under management helped by nearly $116 billion in assets added from the acquisition of U.S. Trust, net asset inflows of more than $44 billion and increased market values of more than $38 billion.

    * U.S. Trust, Bank of America Private Wealth Management net revenue rose
      48 percent to $674 million and net income rose 55 percent to $143
      million due to the acquisition of U.S. Trust, which contributed nearly
      30 percent to net revenue and 22 percent to net income, increased
      lending and deposits volume and strong customer activity.
    * Columbia Management net revenue rose 30 percent to $488 million
      supported by strong client inflows, increased market values and the
      addition of U.S. Trust, which contributed 6 percent to net revenue. Net
      income increased 46 percent to $114 million, with U.S. Trust
      contributing 4 percent.
    * Premier Banking and Investments net revenue rose 11 percent to
      $948 million on record investment and brokerage services results, up 28
      percent from a year ago. Net income increased 12 percent to
      $325 million.


    All Other(1)

    (Dollars in millions)                        Q3 2007             Q3 2006

    Total revenue net of interest
     expense(2)                                    $(766)               $262

    Provision for credit losses                   (1,290)               (920)
    Noninterest expense                             (188)                418

    Net Income                                       547                 551

    Loans and leases(3)                         $104,061             $85,965

    (1) All Other consists primarily of equity investments, the residual
        impact of the allowance for credit losses and the cost allocation
        processes, Merger and Restructuring Charges, intersegment
        eliminations, and the results of certain consumer finance and
        commercial lending businesses that are being liquidated. All Other
        also includes the offsetting securitization impact to present Global
        Consumer and Small Business Banking on a managed basis. For more
        information and detailed reconciliation, please refer to the data
        pages supplied with this Press Release.
    (2) Fully taxable-equivalent basis
    (3) Balances averaged for period

All Other net income was $547 million compared with $551 million a year earlier. Revenue compared with last year was lower without the contribution from the sale of Brazil operations. This was offset partly by reduced other expenses from certain liquidating businesses. Equity investments income rose 24 percent to $852 million from $687 million.

Note: Chief Executive Officer Kenneth D. Lewis and Joe L. Price, chief financial officer, will discuss third quarter 2007 results in a conference call at 9:30 a.m. (Eastern Time) today. The call can be accessed via a webcast available on the Bank of America Investor Relations Web site at http://investor.bankofamerica.com.

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 more than 57 million consumer and small business relationships with more than 5,700 retail banking offices, more than 17,000 ATMs and award-winning online banking with more than 23 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 175 countries and has relationships with 99 percent of the U.S. Fortune 500 companies and 80 percent of the Fortune Global 500. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

This press release contains forward-looking statements, including statements about the financial conditions, results of operations and earnings outlook of Bank of America Corporation. The forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results or earnings to differ materially from such forward-looking statements include, among others, the following: 1) projected business increases following process changes and other investments are lower than expected; 2) competitive pressure among financial services companies increases significantly; 3) general economic conditions are less favorable than expected; 4) political conditions including the threat of future terrorist activity and related actions by the United States abroad may adversely affect the company's businesses and economic conditions as a whole; 5) changes in the interest rate environment and market liquidity reduce interest margins, impact funding sources and effect the ability to originate and distribute financial products in the primary and secondary markets; 6) changes in foreign exchange rates increases exposure; 7) changes in market rates and prices may adversely impact the value of financial products; 8) legislation or regulatory environments, requirements or changes adversely affect the businesses in which the company is engaged; 9) changes in accounting standards, rules or interpretations, 10) litigation liabilities, including costs, expenses, settlements and judgments, may adversely affect the company or its businesses; 11) mergers and acquisitions and their integration into the company; and 12) decisions to downsize, sell or close units or otherwise change the business mix of any of the company. Accordingly, readers are cautioned not to place undue reliance on forward- looking statements, which speak only as of the date on which they are made. Bank of America does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements are made. For further information regarding Bank of America Corporation, please read the Bank of America reports filed with the SEC and available at www.sec.gov.

Columbia Mutual Funds: Please consider the investment objectives, risks, charges and expenses of Columbia mutual funds carefully before investing. Contact your financial advisor for a prospectus which contains this and other important information about the fund. Read it carefully before you invest.

Columbia Management: Columbia Management is the primary investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and advise institutional and mutual fund portfolios. Columbia Funds are distributed by Columbia Management Distributors, Inc., member NASD, SIPC. Columbia Management Distributors, Inc. is part of Columbia Management and an affiliate of Bank of America Corporation.

                            www.bankofamerica.com




    Bank of America Corporation
    Selected Financial Data
    (Dollars in millions, except per share data;
     shares in thousands)


    Summary Income           Three Months Ended         Nine Months Ended
     Statement                  September  30              September 30
                            2007            2006      2007            2006

    Net interest income     $8,615        $8,586      $25,269      $25,992
    Total noninterest
     income                  7,314         9,598       28,378       28,102
       Total revenue, net
        of interest
        expense             15,929        18,184       53,647       54,094
    Provision for credit
     losses                  2,030         1,165        5,075        3,440
    Other noninterest
     expense                 8,459         8,594       26,463       25,943
    Merger and
     restructuring
     charges                    84           269          270          561
       Income before
        income taxes         5,356         8,156       21,839       24,150
    Income tax expense       1,658         2,740        7,125        8,273
       Net income           $3,698        $5,416      $14,714      $15,877

    Earnings per common
     share                   $0.83         $1.20        $3.30        $3.49
    Diluted earnings per
     common share             0.82          1.18         3.25         3.44


    Summary Average         Three Months Ended        Nine Months Ended
     Balance Sheet             September 30              September 30
                           2007             2006      2007            2006

    Total loans and
     leases               $780,516      $673,477     $745,162     $641,909
    Debt securities        174,568       236,033      179,589      235,874
    Total earning assets 1,375,795     1,302,366    1,352,177    1,258,927
    Total assets         1,580,565     1,497,987    1,554,760    1,457,087
    Total deposits         702,481       676,851      695,465      670,552
    Shareholders' equity   134,487       129,262      133,878      129,256
    Common shareholders'
     equity                131,606       129,098      131,017      129,021


    Performance Ratios        Three Months Ended         Nine Months Ended
                                 September 30               September 30
                             2007             2006     2007            2006

    Return on average
     assets                   0.93 %        1.43 %      1.27 %       1.46 %
    Return on average
     common
     shareholders'
     equity                  11.02         16.64       14.88        16.44


    Credit Quality           Three Months Ended        Nine Months Ended
                                September 30              September 30
                            2007            2006      2007           2006

    Net charge-offs         $1,573        $1,277      $4,495       $3,122
    Annualized net
     charge-offs as a %
     of average loans
     and leases
     outstanding (1)          0.80  %       0.75 %      0.80 %       0.65  %
    Provision for credit
     losses                 $2,030        $1,165      $5,075       $3,440
    Managed credit card
     net losses              2,024         1,748       6,076        4,468
    Managed credit card
     net losses as a %
     of average managed
     credit card
     receivables              4.67  %       4.23 %      4.81 %       3.68  %


                                September 30
                             2007          2006

    Nonperforming assets    $3,372        $1,656
    Nonperforming assets
     as a % of total
     loans, leases and
     foreclosed
     properties (1)           0.43  %       0.25 %
    Allowance for loan
     and lease losses       $9,535        $8,872
    Allowance for loan
     and lease losses as
     a % of total loans
     and leases measured at
     historical cost (1)      1.21  %       1.33 %


    Capital Management           September 30
                              2007          2006
    Risk-based capital
     ratios:
    Tier 1                    8.22 %*       8.48 %
    Total                    11.86 *       11.46
    Tier 1 leverage
     ratio                    6.20 *        6.16

    Period-end common
     shares issued and
     outstanding         4,436,855     4,498,145


                             Three Months Ended        Nine Months Ended
                                September 30             September 30
                            2007           2006       2007          2006

    Shares issued            9,499        29,704      49,734       98,312 (2)
    Shares repurchased      (9,580)      (59,500)    (71,030)    (231,000)
    Average common
     shares issued and
     outstanding         4,420,616     4,499,704   4,424,269    4,547,693
    Average diluted
     common shares
     issued and
     outstanding         4,475,917     4,570,558   4,483,465    4,614,599
    Dividends paid per
     common share            $0.64         $0.56       $1.76        $1.56


    Summary Ending
     Balance Sheet             September 30
                           2007             2006

    Total loans and
     leases               $793,537      $669,149
    Total debt
     securities            177,296       195,152
    Total earning assets 1,362,543     1,216,965
    Total assets         1,578,763     1,449,211
    Total deposits         699,222       665,905
    Total shareholders'
     equity                138,510       133,597
    Common shareholders'
     equity                135,109       132,771
    Book value per share
     of common stock        $30.45        $29.52


    * Preliminary data

    (1) Ratios do not include loans measured at fair value in accordance with
        SFAS 159 at and for the three and nine months ended September 30,
        2007.
    (2) Does not include 631,145 shares issued in conjunction with the merger
        with MBNA.

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



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

    Global Consumer and Small    Three Months Ended      Nine Months Ended
    Business Banking (1)            September 30            September 30
                                 2007         2006        2007        2006
    Total revenue, net of
     interest expense (FTE)
     (2)                        $11,985     $11,284     $35,168     $33,255
    Provision for credit
     losses (3)                   3,121       2,049       8,626       5,757
    Noninterest expense           4,971       4,619      14,567      13,591
    Net income                    2,452       2,919       7,559       8,784

    Efficiency ratio (2)          41.48 %     40.94 %     41.42 %     40.87 %
    Return on average equity      15.63       18.70       16.35       18.56
    Average - total loans and
     leases                    $331,656    $291,028    $319,089    $284,261
    Average - total deposits    321,552     332,500     324,867     333,709

    Deposits
    Total revenue, net of
     interest expense (FTE)(2)   $4,423      $4,272     $13,068     $12,371
    Net income                    1,321       1,287       3,958       3,611
    Card Services (1)
    Total revenue, net of
     interest expense (FTE)(2)    6,505       6,110      18,886      18,190
    Net income                    1,083       1,439       3,133       4,550
    Consumer Real Estate
    Total revenue, net of
     interest expense (FTE)(2)      837         726       2,521       2,135
    Net income                       73         162         436         511


    Global Corporate and         Three Months Ended      Nine Months Ended
     Investment Banking             September 30            September 30
                                 2007          2006      2007          2006

    Total revenue, net of
     interest expense (FTE)(2)   $2,885      $5,168     $14,198     $16,008
    Provision for credit
     losses                         228          36         384          82
    Noninterest expense           2,486       2,861       8,566       8,572
    Net income                      100       1,433       3,300       4,634

    Efficiency ratio (2)          86.19 %     55.36 %     60.33 %     53.55 %
    Return on average equity       0.91       13.82       10.38       14.59
    Average - total loans and
     leases                    $267,758    $234,800    $256,590    $230,345
    Average - total deposits    217,632     194,806     215,491     191,773

    Business Lending
    Total revenue, net of
     interest expense (FTE)(2)   $1,388      $1,378      $4,242      $4,242
    Net income                      379         519       1,446       1,657
    Capital Markets and
     Advisory Services
    Total revenue, net of
     interest expense (FTE)(2)     (184)      1,927       4,853       6,413
    Net income                     (717)        298         453       1,308
    Treasury Services
    Total revenue, net of
     interest expense (FTE)(2)    1,751       1,901       5,250       5,447
    Net income                      558         634       1,634       1,742


    Global Wealth and            Three Months Ended      Nine Months Ended
     Investment Management          September 30            September 30
                                 2007          2006      2007          2006

    Total revenue, net of
     interest expense (FTE)(2)   $2,200      $1,778      $6,096      $5,458
    Provision for credit
     losses                         (29)          -         (20)        (41)
    Noninterest expense           1,274         965       3,317       2,881
    Net income                      599         513       1,761       1,650

    Efficiency ratio (2)          57.91 %     54.31 %     54.42 %     52.79 %
    Return on average equity      19.98       20.95       22.18       22.19
    Average - total loans and
     leases                     $77,041     $61,684     $70,322     $59,890
    Average - total deposits    127,819     100,915     120,387     101,063

    U.S. Trust (4)
    Total revenue, net of
     interest expense (FTE)(2)     $674        $454      $1,621      $1,437
    Net income                      143          92         345         356
    Columbia Management
    Total revenue, net of
     interest expense (FTE)(2)      488         376       1,385       1,119
    Net income                      114          78         330         240
    Premier Banking and
     Investments
    Total revenue, net of
     interest expense (FTE)(2)      948         855       2,818       2,569
    Net income                      325         291         981         888



    All Other (1)                Three Months Ended      Nine Months Ended
                                    September 30            September 30
                                 2007          2006      2007          2006

    Total revenue, net of
     interest expense (FTE)
     (2)                          $(766)       $262       $(716)       $241
    Provision for credit
     losses (5)                  (1,290)       (920)     (3,915)     (2,358)
    Noninterest expense            (188)        418         283       1,460
    Net income                      547         551       2,094         809
    Average - total loans and
     leases                     104,061      85,965      99,161      67,413
    Average - total deposits     35,478      48,630      34,720      44,007


    (1) Global Consumer and Small Business Banking is presented on a managed
        basis, specifically Card Services, with a corresponding offset
        recorded in All Other.
    (2) Fully taxable-equivalent (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.
    (3) Represents provision for credit losses on held loans combined with
        realized credit losses associated with the securitized loan portfolio.
    (4) In July 2007, the acquisition of U.S. Trust Corporation was completed
        combining with the former Private Bank creating U.S. Trust, Bank of
        America Private Wealth Management and results of the combined business
        were reported for periods ending after July 1, 2007.
    (5) Represents the provision for credit losses in All Other combined with
        the Global Consumer and Small Business Banking securitization offset.

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



    Bank of America Corporation
    Supplemental Financial Data
    (Dollars in millions)


    Fully taxable-equivalent      Three Months Ended     Nine Months Ended
     basis data                       September 30          September 30
                                    2007       2006       2007       2006

    Net interest income             $8,990     $8,894    $26,368    $26,860
    Total revenue, net of interest
     expense                        16,304     18,492     54,746     54,962
    Net interest yield                2.61 %     2.73 %     2.60 %     2.85 %
    Efficiency ratio                 52.40      47.93      48.83      48.22


    Other Data                        September 30
                                    2007         2006

    Full-time equivalent employees 198,000    200,220
    Number of banking centers -
     domestic                        5,748      5,722
    Number of branded ATMs -
     domestic                       17,231     16,846

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



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

    The Corporation reports its Global Consumer and Small Business Banking's
    results, specifically Card Services, on a managed basis.  This basis of
    presentation excludes the Corporation's securitized mortgage and home
    equity portfolios for which the Corporation retains servicing.  Reporting
    on a managed basis is consistent with the way that management as well as
    analysts evaluate the results of Global Consumer and Small Business
    Banking.  Managed basis assumes that 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. 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
    generally accepted accounting principles (GAAP).

    The performance of the managed portfolio is important in understanding
    Global Consumer and Small Business Banking's and 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
    Consumer and Small Business Banking's managed income statement line items
    differ from a held basis reported as follows:

    * Managed net interest income includes Global Consumer and Small Business
      Banking's 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 Consumer and Small Business
      Banking's 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
      Consumer and Small Business Banking.

    * Provision for credit losses represents the provision for credit losses
      on held loans combined with realized credit losses associated with the
      securitized loan portfolio.

    All of these securitization adjustments relate to the Card Services'
    business within Global Consumer and Small Business Banking.



    Global Consumer and Small Business Banking

                                                  Third Quarter 2007

                                           Managed   Securitization
                                          Basis (1)    Impact (2)   Held Basis

    Net interest income (3)                   $7,265      $(2,085)     $5,180
    Noninterest income
        Card income                            2,587          896       3,483
        Service charges                        1,519            -       1,519
        Mortgage banking income                  244            -         244
        Gains (losses) on sales of debt
         securities                                -            -           -
        All other income                         370          (70)        300
            Total noninterest income           4,720          826       5,546
            Total revenue, net of
             interest expense                 11,985       (1,259)     10,726

    Provision for credit losses                3,121       (1,259)      1,862
    Noninterest expense                        4,971            -       4,971
            Income before income taxes         3,893            -       3,893
    Income tax expense (3)                     1,441            -       1,441
            Net income                        $2,452           $-      $2,452

     Average - total loans and leases       $331,656    $(104,317)   $227,339


                                                  Third Quarter 2006

                                           Managed   Securitization
                                          Basis (1)    Impact (2)   Held Basis

    Net interest income (3)                   $7,016     $(1,872)     $5,144
    Noninterest income
        Card income                            2,333       1,032       3,365
        Service charges                        1,410           -       1,410
        Mortgage banking income                  215           -         215
        Gains (losses) on sales of debt
         securities                                -           -           -
        All other income                         310         (68)        242
            Total noninterest income           4,268         964       5,232
            Total revenue, net of
             interest expense                 11,284        (908)     10,376

    Provision for credit losses                2,049        (908)      1,141
    Noninterest expense                        4,619           -       4,619
            Income before income taxes         4,616           -       4,616
    Income tax expense (3)                     1,697           -       1,697
            Net income                        $2,919          $-      $2,919

     Average - total loans and leases       $291,028    $(97,371)   $193,657



    All Other

                                                  Third Quarter 2007

                                           Reported  Securitization     As
                                          Basis (4)   Offset (2)     Adjusted

    Net interest income (3)                  $(2,031)     $2,085         $54
    Noninterest income
        Card income                              739        (896)       (157)
        Equity investment income                 852           -         852
        Gains (losses) on sales of debt
         securities                                7           -           7
        All other income                        (333)         70        (263)
            Total noninterest income           1,265        (826)        439
            Total revenue, net of
             interest expense                   (766)      1,259         493

    Provision for credit losses               (1,290)      1,259         (31)
    Merger and restructuring charges              84           -          84
    All other noninterest expense               (272)          -        (272)
            Income before income taxes           712           -         712
    Income tax expense (3)                       165           -         165
            Net income                          $547          $-        $547

     Average - total loans and leases       $104,061    $104,317    $208,378


                                                  Third Quarter 2006

                                           Reported  Securitization      As
                                          Basis (4)    Offset (2)     Adjusted

    Net interest income (3)                  $(1,418)     $1,872         $454
    Noninterest income
        Card income                              841      (1,032)        (191)
        Equity investment income                 687           -          687
        Gains (losses) on sales of debt
         securities                             (480)          -         (480)
        All other income                         632          68          700
            Total noninterest income           1,680        (964)         716
            Total revenue, net of
             interest expense                    262         908        1,170

    Provision for credit losses                 (920)        908          (12)
    Merger and restructuring charges             269           -          269
    All other noninterest expense                149           -          149
            Income before income taxes           764           -          764
    Income tax expense (3)                       213           -          213
            Net income                          $551          $-         $551

     Average - total loans and leases        $85,965     $97,371     $183,336

    (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 on net interest income is on a funds
        transfer pricing methodology consistent with the way funding costs are
        allocated to the businesses.
    (3) FTE
    (4) Provision for credit losses represents the provision for credit losses
        in All Other combined with the Global Consumer and Small Business
         Banking securitization offset.

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

SOURCE Bank of America

CONTACT:
Investors: Kevin Stitt
+1-704-386-5667
or Lee McEntire, +1-704-388-6780
or
Leyla Pakzad
+1-704-386-2024
or
Media: Scott Silvestri, Bank of America
+1-980-388-9921
or scott.silvestri@bankofamerica.com