BANK OF AMERICA

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Bank of America Earns $3.2 Billion in Second Quarter

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Supplemental second quarter 2009 financial information

--Strong Pretax, Pre-provision Income of $16 Billion --Another Good Quarter in Capital Markets and Home Loans --Enhanced Capital Strength, Tier 1 Capital Ratio at 11.93 Percent --Extends More Than $211 Billion in Credit in the Second Quarter --Adds $4.7 Billion to Credit Loss Reserves
CHARLOTTE, N.C., July 17, 2009 /PRNewswire via COMTEX/ -- Bank of America Corporation today reported second-quarter 2009 net income of $3.2 billion. After deducting preferred dividends of $805 million, including $713 million paid to the U.S. government, diluted earnings per share were $0.33.

Those results compared with net income of $3.4 billion, or diluted earnings per share of $0.72 during the year-ago period.

For the first half of 2009, Bank of America earned $7.5 billion, or $0.75 per share.

Results were driven by continued strong revenue performance in the wholesale capital markets businesses as well as in home loans, complemented by the previously announced gains on the sale of China Construction Bank (CCB) shares and the sale of the company's merchant processing business to a joint venture. These positives were somewhat offset by continuing high credit costs, including additions to the reserve for loan and lease losses, as well as significant negative credit valuation adjustments on certain liabilities including the Merrill Lynch structured notes and the impact of a special Federal Deposit Insurance Corp. (FDIC) assessment.

Bank of America finished the second quarter with its strongest capital position in recent memory, with a Tier 1 Capital ratio of 11.93 percent as well as a leading liquidity position among global banks.

"Having positive net income in an extremely challenging environment speaks to the diversity and strength of our business model as well as the extraordinary effort put forth by all of our associates," said Kenneth D. Lewis, chief executive officer and president. "Our goals during this difficult time have been to enhance the strength of our balance sheet and capital position and to continue to improve our earning power while dealing with the credit issues facing our industry due to the recession.

"Difficult challenges lie ahead from continued weakness in the global economy, rising unemployment and deteriorating credit quality that will affect our performance for the rest of the year and into 2010," Lewis said. "However, we are convinced that Bank of America will weather the storm and emerge as an acknowledged leader in financial services in the United States and around the world."

"Most importantly, we continue to serve our customers and clients around the world every day, helping them with their accounts, meeting their financial needs and adding new business," Lewis added.

Second Quarter 2009 Business Highlights

    --  Bank of America increased its Tier 1 common capital by nearly $40
        billion through multiple actions during the quarter that included
        issuing shares of common stock, exchanging certain non-government
        preferred stock for common stock, and asset sales.

    --  Bank of America Merrill Lynch ranked No. 1 in high-yield debt and
        leveraged loans based on volume, and the firm was No. 2 and No. 3,
        respectively, in U.S. and global investment banking fees for the first
        half of 2009, according to second quarter league tables.

    --  Sales and trading revenue, excluding credit valuation adjustments on
        derivative liabilities and market disruption charges, rose to a record
        $6.7 billion.

    --  During the quarter, Bank of America announced the sale of its merchant
        processing business to a joint venture, which included First Data Corp.
        The transaction is expected to deliver next-generation payments
        solutions to merchants.

    --  Bank of America funded $110.6 billion in first mortgages, helping nearly
        500,000 people either purchase a home or refinance their existing
        mortgage, including $24.3 billion in mortgages made to 154,000 low- and
        moderate-income borrowers. Approximately 29 percent of first mortgages
        were for purchases.

    --  Credit extended during the quarter, including commercial renewals of $55
        billion, was more than $211 billion, compared with $183 billion in the
        first quarter. New credit included $111 billion in mortgages, $78
        billion in commercial non-real estate, approximately $9 billion in
        commercial real estate, $4 billion in domestic and small business card,
        $4 billion in home equity products and more than $5 billion in other
        consumer credit.(1)

    --  During the second quarter, Small Business Banking extended more than
        $580 million in new credit comprised of credit cards, loans and lines of
        credit to more than 35,000 customers.

    --  To help homeowners avoid foreclosure, Bank of America has provided rate
        relief or agreed to modifications with approximately 150,000 customers
        for the first six months of 2009, compared with more than 230,000 for
        all of 2008 for Bank of America and Countrywide. In addition,
        approximately 80,000 Bank of America customers are already in a trial
        period modification or were in the process of responding to an offer
        under the Making Home Affordable program through mid-July.

    --  Average retail deposits in the quarter increased $136.3 billion, or 26
        percent, from a year earlier, including $104.3 billion in balances from
        Merrill Lynch and Countrywide. Excluding Countrywide and Merrill Lynch,
        Bank of America grew retail deposits $32.0 billion, or 6 percent, from
        the year-ago quarter.

(1) Preliminary data as of July 17, 2009

Transition Update

The Merrill Lynch integration is on track and meeting expected goals. The company in 2009 expects to achieve in excess of 40 percent of the previously announced goal of approximately $7 billion in cost savings, ahead of the original goal of 25 percent for the year.

Since June 1, approximately 6,500 affluent banking-only clients in Bank of America have been referred to Merrill Lynch financial advisors. Of that group, approximately 1,400 now have added an investment relationship with the company. Merrill Lynch financial advisors referred more than 1,100 clients to the commercial bank of Bank of America.

The Countrywide transition and related cost savings are on track.

The new Bank of America Home Loans and Insurance brand was introduced to consumers during the quarter as part of the transition.

Second Quarter 2009 Financial Summary

Revenue and Expense

Revenue net of interest expense on a fully taxable-equivalent basis rose 60 percent to $33.1 billion compared with $20.7 billion a year ago.

Net interest income on a fully taxable-equivalent basis rose 9 percent to $11.9 billion from $10.9 billion in the second quarter of 2008 due to an improved rate environment and the addition of Countrywide and Merrill Lynch. These improvements were partially offset by a shift in loan mix and the sale of securities. Net interest yield narrowed 28 basis points to 2.64 percent due to the addition of lower yielding assets from Countrywide and Merrill Lynch, sales of securities, and a shift in loan mix, partially offset by the favorable rate environment.

Noninterest income rose to $21.1 billion from $9.8 billion a year earlier. Higher mortgage banking income, trading account profits and investment and brokerage services income reflected the addition of Merrill Lynch and Countrywide. Additionally, the increase was driven by a $5.3 billion pretax gain on the sale of CCB shares. Bank of America continues to own approximately 11 percent of the common shares of CCB. Noninterest income in the period also included a $3.8 billion pretax gain from the completed sale of the merchant processing business to a joint venture. These increases were partially offset by $3.6 billion in losses related to mark-to-market adjustments including the Merrill Lynch structured notes as a result of narrowing credit spreads during the quarter. Card income declined due to higher credit losses on securitized credit card loans and lower fee income.

Noninterest expense increased to $17.0 billion from $9.7 billion a year earlier. This reflects higher personnel and general operating expenses, driven in part by the Merrill Lynch and Countrywide acquisitions and the FDIC special assessment. Pretax merger and restructuring charges rose to $829 million from $212 million a year earlier.

The efficiency ratio on a fully taxable-equivalent basis was 51.44 percent compared with 46.60 percent a year earlier.

Pretax, pre-provision income on a fully-taxable equivalent basis was $16.1 billion compared with $11.1 billion a year earlier.

Credit Quality

Credit quality deteriorated further as the economic environment weakened. Consumers remained under significant stress as unemployment and underemployment increased and individuals spent longer periods without work. These conditions led to higher losses in almost all consumer portfolios compared with the prior quarter.

Declining home values and reduced spending by consumers and businesses negatively impacted the commercial portfolios resulting in broad-based increases in criticized and nonperforming loans. Commercial loan losses rose from the prior quarter as commercial domestic and small business portfolios were impacted in sectors dependent on discretionary consumer spending. Losses in the commercial real estate portfolio also increased.

The provision for credit losses was $13.4 billion, flat with the first quarter. Credit losses were higher than the prior quarter and reserves, which were increased by $4.7 billion, were added across most consumer portfolios and the commercial portfolio reflecting the impact of the weak economy. Nonperforming assets were $31.0 billion compared with $25.6 billion at March 31, 2009, reflecting the continued deterioration in economic conditions. The 2009 coverage ratios and amounts shown in the following table include Merrill Lynch.

Credit Quality

    (Dollars in millions)         Q2 2009          Q1 2009          Q2 2008
    ---------------------         -------          -------          -------
    Provision for credit
     losses                       $13,375          $13,380           $5,830

    Net Charge-offs                 8,701            6,942            3,619
    Net Charge-off
     ratios(1)                       3.64%            2.85%            1.67%

    Total managed net
     losses                       $11,684           $9,124           $5,262
    Total managed net
     loss ratio(1)                   4.42%            3.40%            2.16%


                               At 6/30/09       At 3/31/09       At 6/30/08
                               ----------       ----------       ----------
    Nonperforming assets          $30,982          $25,632           $9,749
    Nonperforming
     assets ratio(2)                 3.31%            2.64%            1.13%

    Allowance for loan
     and lease losses             $33,785          $29,048          $17,130
    Allowance for
     loan and lease
     losses ratio(3)                 3.61%            3.00%            1.98%

    (1) Net charge-off/loss ratios are calculated as annualized held net
        charge-offs or managed net losses divided by average outstanding
        held or managed loans and leases during the period.
    (2) Nonperforming assets ratios are calculated as nonperforming assets
        divided by outstanding loans, leases and foreclosed properties at
        the end of the period.
    (3) Allowance for loan and lease losses ratios are calculated as
        allowance for loan and leases losses divided by loans and leases
        outstanding at the end of the period.

    Note: Ratios do not include loans measured at fair value in accordance
          with SFAS 159.

Capital Management

Total shareholders' equity was $255.2 billion at June 30. Period-end assets were $2.3 trillion. The Tier 1 Capital ratio was 11.93 percent, up from 10.09 percent at March 31, 2009 and from 8.25 percent a year ago. The Tier 1 Common ratio was 6.90 percent, compared with 4.49 percent at March 31, 2009 and 4.78 percent at June 30, 2008. The Tangible Common Equity ratio was 4.67 percent, up from 3.13 percent at March 31, 2009 and 3.24 percent a year earlier. Tangible book value per share of common stock was $11.66, compared with $10.88 at March 31, 2009 and $11.87 a year earlier.

During the quarter the bank increased its Tier 1 common capital by nearly $40 billion, easily exceeding the $33.9 billion Supervisory Capital Assessment Program (SCAP) buffer set by the Federal Reserve in May. Actions contributing toward that goal during the quarter included: issuing shares of common stock; exchanging certain non-government preferred stock for common stock; the sale of a portion of shares in CCB; and the sale of the company's merchant processing business to a joint venture.

During the quarter, Bank of America issued 1.25 billion, or $13.5 billion, of common shares. Bank of America exchanged the equivalent of $14.8 billion of non-government preferred shares for approximately 1 billion shares of common stock through private exchanges and a tender offer. A cash dividend of $0.01 per common share was paid. The company recorded $1.4 billion in preferred dividends, partially offset by $576 million related to the exchange of preferred stock in the calculation of net income available to common shareholders. Period-end common shares issued and outstanding were 8.65 billion for the second quarter of 2009, 6.40 billion for the first quarter of 2009 and 4.45 billion for the year-ago quarter.

Second Quarter 2009 Business Segment Results

Deposits

    (Dollars in millions)                       Q2 2009              Q2 2008
    --------------------                        -------              -------
    Total revenue, net of
     interest expense(1)                         $3,495               $4,400

    Provision for credit losses                      96                   89
    Noninterest expense                           2,649                2,324

    Net income                                      505                1,238

    Efficiency ratio(1)                           75.80%               52.82%
    Return on average equity                       8.58                20.30

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


                                             At 6/30/09           At 6/30/08
                                             ----------           ----------
    Period-ending deposits                     $423,192             $336,136

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

Deposits net income fell 59 percent from a year ago on lower revenue and higher noninterest expense. Revenue declined as a result of lower residual net interest income allocation related to asset and liability management activities and spread compression due to declining interest rates. Noninterest expense rose mainly from the FDIC special assessment.

Average customer deposits rose 24 percent, or $79.9 billion, from a year earlier on strong organic growth, the transfer of client deposits from Global Wealth and Investment Management and the acquisition of Countrywide.

Global Card Services

    (Dollars in millions)                       Q2 2009              Q2 2008
    --------------------                        -------              -------
    Total managed revenue, net
     of interest expense(1),(2)                  $7,337               $7,500

    Provision for credit
     losses(3)                                    7,741                4,259
    Noninterest expense                           1,976                2,375

    Net income (loss)                            (1,618)                 582

    Efficiency ratio(2)                           26.93%               31.67%
    Return on average equity                        n/m                 6.01

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


                                             At 6/30/09           At 6/30/08
                                             ----------           ----------
    Period-ending loans                        $215,904             $240,617

    (1) Managed basis.  Managed basis assumes that credit card loans that
        have been securitized were not sold and presents earnings on these
        loans in a manner similar to the way loans that have not been sold
        (i.e., held loans) are presented.  For more information and detailed
        reconciliation, please refer to the data pages supplied with this
        press release.
    (2) Fully taxable-equivalent basis
    (3) Represents provision for credit losses on held loans combined with
        realized credit losses associated with the securitized credit card
        loan portfolio
    (4) Balances averaged for period
    n/m = not meaningful

Global Card Services swung to a net loss of $1.6 billion as credit costs rose in the weakening economies in the U.S., Europe and Canada. Managed net revenue declined 2 percent to $7.3 billion mainly due to lower fee income partially offset by higher net interest income, as lower funding costs outpaced the decline in average managed loans.

Provision expense increased to $7.7 billion from a year earlier as the consumer card and consumer lending portfolios deteriorated due to the economic conditions and a rising level of bankruptcies. Also contributing were reserve additions related to maturing securitizations.

Noninterest expense fell 17 percent on lower operating and marketing costs.

Home Loans and Insurance

    (Dollars in millions)                       Q2 2009              Q2 2008
    --------------------                        -------              -------
    Total revenue, net of
     interest expense(1)                         $4,461               $1,261

    Provision for credit losses                   2,726                2,034
    Noninterest expense                           2,829                  732

    Net income (loss)                              (725)                (948)

    Efficiency ratio(1)                           63.41%               58.02%
    Return on average equity                        n/m                  n/m

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


                                             At 6/30/09           At 6/30/08
                                             ----------           ----------
    Period-ending loans                        $131,120              $92,064

    (1) Fully taxable-equivalent basis
    (2) Balances averaged for period
    n/m = not meaningful

The net loss in Home Loans and Insurance narrowed as higher revenue was mostly offset by increased credit costs and noninterest expense. Net revenue rose mainly due to the acquisition of Countrywide and higher mortgage banking income as lower interest rates spurred an increase in refinance activity.

The provision for credit losses increased to $2.7 billion driven by economic weakness and falling home prices.

Noninterest expense increased to $2.8 billion mostly due to the acquisition of Countrywide.

Global Banking

    (Dollars in millions)                       Q2 2009              Q2 2008
    --------------------                        -------              -------
    Total revenue, net of
     interest expense(1)                         $8,658               $4,455

    Provision for credit losses                   2,584                  400
    Noninterest expense                           2,232                1,747

    Net income                                    2,487                1,433

    Efficiency ratio(1)                           25.78%               39.24%
    Return on average equity                      16.50                11.85

    Loans and leases(2)                        $323,217             $315,282
    Deposits(2)                                 199,879              169,738

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

Global Banking net income rose to $2.5 billion, benefitting from a $3.8 billion pretax gain generated by the sale of the company's merchant processing business to a joint venture, the addition of Merrill Lynch and strong deposit growth. Higher revenue was partially offset by the challenging credit environment and the FDIC special assessment.

The provision for credit losses increased to $2.6 billion, driven by loan loss reserve increases and higher losses within the commercial domestic portfolio, which were across a broad range of borrowers and industries. Also contributing to the increase were higher losses and reserve additions in the commercial real estate portfolio for deterioration across various property types.

    --  Corporate Banking and Investment Banking revenue rose 28 percent to $2.0
        billion as a result of the Merrill Lynch acquisition, strong fee growth
        from debt and equity capital markets, higher deposits and a change in
        deposit mix. These increases were more than offset by higher credit
        costs and the FDIC special assessment.

    --  Commercial Banking revenue, excluding the $3.8 billion pretax gain
        associated with the sale of the merchant processing business to a joint
        venture, was $2.9 billion as credit and deposit net interest margins
        improved, offset by lower residual net interest income. Net income was
        negatively impacted by higher credit costs and the FDIC special
        assessment.

        --  Note: Total investment banking income, including self-led deals, in
            the quarter of $1.7 billion is shared primarily between Global
            Banking and Global Markets based on an internal fee-sharing
            arrangement between the two segments. Debt and Equity issuance
            income led to an increase from the year-ago quarter, while advisory
            fees increased 83 percent, reflecting the larger investment banking
            platform from the Merrill Lynch acquisition.

Global Markets

    (Dollars in millions)                       Q2 2009              Q2 2008
    --------------------                        -------              -------
    Total revenue, net of
     interest expense(1)                         $4,452               $1,378

    Provision for credit losses                      (1)                 (38)
    Noninterest expense                           2,559                  951

    Net income                                    1,377                  298

    Efficiency ratio(1)                           57.46%               69.04%
    Return on average equity                      17.81                 9.90

    Trading-related
     assets(2)                                 $503,688             $332,748

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

Global Markets net income increased $1.1 billion. The increase was driven by the addition of Merrill Lynch and lower market disruption related charges of $900 million - a portion of the $1.3 billion total for the company. Net revenue was strong during the period, excluding the credit valuation adjustment on derivative liabilities and market disruption charges, surpassing record first-quarter 2009 revenue. Noninterest expense was higher as a result of the addition of Merrill Lynch.

    --  Fixed Income, Currency and Commodities revenue of $3.2 billion was
        driven by a more than fourfold increase in sales and trading revenue and
        by investment banking revenue that nearly doubled. Sales and trading was
        positively impacted by the addition of Merrill Lynch and an increase in
        liquidity in certain credit markets. Investment banking fees were
        positively impacted from the combination of the legacy Merrill Lynch and
        Bank of America debt issuance capabilities and the opening up of credit
        issuance markets.

    --  Equities revenue of $1.3 billion was driven by the addition of Merrill
        Lynch and the ability to take advantage of the increase in equity flows
        during the quarter, which resulted in higher commission revenue and a
        fivefold increase in equity issuance revenue, partially offset by lower
        market volatility.

Global Wealth and Investment Management

    (Dollars in millions)                       Q2 2009              Q2 2008
    --------------------                        -------              -------
    Total revenue, net of
     interest expense(1)                         $4,196               $2,295

    Provision for credit losses                     238                  119
    Noninterest expense                           3,304                1,244

    Net income                                      441                  581

    Efficiency ratio(1)                           78.74%               54.21%
    Return on average equity                       9.45                19.84

    Loans(2)                                   $101,748              $87,574
    Deposits(2)                                 214,111              157,113


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

    Assets under management                      $705.2               $589.4
    Total client assets(3)                     $1,824.3               $867.4

    (1) Fully taxable-equivalent basis
    (2) Balances averaged for period
    (3) Client assets are defined as assets under management, client
        brokerage assets and other assets in custody

Global Wealth and Investment Management net income fell 24 percent due to lower residual net interest income, lower equity market levels, higher credit costs and the transfer of certain client balances to the Deposits and the Home Loans and Insurance segments, partially offset by the addition of Merrill Lynch.

Net revenue increased to $4.2 billion as investment and brokerage service income rose and net interest income increased 12 percent due to the addition of Merrill Lynch.

    --  Merrill Lynch Global Wealth Management net income declined 15 percent to
        $283 million from a year earlier as the addition of Merrill Lynch was
        more than offset by the impact of the significant transfer of client
        balances during the quarter to the Deposits and the Home Loans and
        Insurance segments and lower net interest income. Net revenue increased
        to $3.0 billion from $1.1 billion a year ago as investment and brokerage
        income rose mainly from the addition of Merrill Lynch.

    --  U.S. Trust, Bank of America Private Wealth Management net income fell 65
        percent to $67 million as net revenue declined and credit costs rose.
        Net revenue fell 13 percent to $674 million driven by reduced residual
        net interest income and the effect of lower equity market levels.

    --  Columbia Management net income nearly doubled to $72 million from a year
        earlier on lower support for certain cash funds and reduced expenses.
        The increase was partially offset by lower investment and brokerage
        revenue which was mainly impacted by lower equity market levels.

All Other (1),(2)

    (Dollars in millions)                       Q2 2009              Q2 2008
    --------------------                        -------              -------
    Total revenue, net of
     interest expense(3)                           $487                $(563)

    Provision for credit losses                      (9)              (1,033)
    Noninterest expense                           1,471                  286

    Net income                                      757                  226

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

    (1) All Other consists primarily of equity investments, the residential
        mortgage portfolio associated with asset and liability management
        (ALM) activities, the residual impact of the cost allocation process,
        merger and restructuring charges, intersegment eliminations, fair
        value adjustments related to certain Merrill Lynch structured notes
        and the results of certain consumer finance, investment management
        and commercial lending businesses that are being liquidated. All Other
        also includes the offsetting securitization impact to present Global
        Card Services on a managed basis. For more information and detailed
        reconciliation, please refer to the data pages supplied with this
        press release.
    (2) Effective January 1, 2009, All Other includes the results of First
        Republic Bank, which was acquired as part of the Merrill Lynch
        acquisition.
    (3) Fully taxable-equivalent basis
    (4) Balances averaged for period

All Other net income increased to $757 million. Higher equity investment income related to the gain on the sale of CCB shares and increased gains on the sale of debt securities were partially offset by fair value adjustments related to certain Merrill Lynch structured notes and other-than-temporary-impairment charges related to non-agency collateralized mortgage obligations. The provision for credit losses rose primarily due to continued deterioration in the residential mortgage portfolio. Noninterest expense increased mostly on merger and restructuring charges related to the Merrill Lynch acquisition.

Note: Chief Executive Officer and President Kenneth D. Lewis and Chief Financial Officer Joe L. Price will discuss second quarter 2009 results in a conference call at 9:30 a.m. EDT today. The presentation and supporting materials can be accessed on the Bank of America Investor Relations Web site at http://investor.bankofamerica.com. For a listen-only connection to the conference call, dial 1.877.200.4456 (U.S.) or 1.785.424.1732 (international) and the conference ID: 79795.

Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 53 million consumer and small business relationships with more than 6,100 retail banking offices, nearly 18,500 ATMs and award-winning online banking with 29 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to more than 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients in more than 150 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.

Forward-Looking Statements

Bank of America and its management may make certain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation reform Act of 1995. These statements are not historical facts, but instead represent Bank of America's current expectations, plans or forecasts of its future earnings, integration of acquisitions and related cost savings, mortgage originations and market share, credit losses, credit reserves and charge-offs, consumer credit card net loss ratios, mortgage delinquencies, core net interest income margin and other similar matters. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and are often beyond Bank of America's control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements.

You should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risks, as well as those more fully discussed under Item 1A. "Risk Factors" of Bank of America's 2008 Annual Report on Form 10-K and in any of Bank of America's subsequent SEC filings: negative economic conditions that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits; the level and volatility of the capital markets, interest rates, currency values and other market indices; changes in consumer, investor and counterparty confidence in, and the related impact on, financial markets and institutions; Bank of America's credit ratings and the credit ratings of its securitizations; estimates of fair value of certain Bank of America assets and liabilities; legislative and regulatory actions in the United States and internationally; the impact of litigation and regulatory investigations, including costs, expenses, settlements and judgments; various monetary and fiscal policies and regulations of the U.S. and non-U.S. governments; changes in accounting standards, rules and interpretations and the impact on Bank of America's financial statements; increased globalization of the financial services industry and competition with other U.S. and international financial institutions; Bank of America's ability to attract new employees and retain and motivate existing employees; mergers and acquisitions and their integration into Bank of America; Bank of America's reputation; and decisions to downsize, sell or close units or otherwise change the business mix of Bank of America. Forward-looking statements speak only as of the date they are made, and Bank of America undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

Columbia Management Group, LLC ("Columbia Management") is the primary investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. Columbia Funds and Excelsior Funds are distributed by Columbia Management Distributors, Inc., member FINRA and SIPC. Columbia Management Distributors, Inc. is part of Columbia Management and an affiliate of Bank of America Corporation.

Investors should carefully consider the investment objectives, risks, charges and expenses of any Columbia Fund or Excelsior Fund before investing. Contact your Columbia Management representative for a prospectus, which contains this and other important information about the fund. Read it carefully before investing.

Bank of America Merrill Lynch is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, financial advisory, and other investment banking activities are performed by investment banking affiliates of Bank of America Corporation ("Investment Banking Affiliates"), including Banc of America Securities LLC, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, which are both registered broker-dealers and members of FINRA and SIPC. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed. Bank of America Corporation's broker-dealers are not banks and are separate legal entities from their bank affiliates. The obligations of the broker-dealers are not obligations of their bank or thrift affiliates (unless explicitly stated otherwise), and these bank affiliates are not responsible for securities sold, offered or recommended by the broker-dealers. The foregoing also applies to our other non-bank, non-thrift affiliates.

www.bankofamerica.com


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

    Summary Income              Three Months Ended     Six Months Ended
     Statement                       June 30               June 30
    --------------             -------------------    -----------------
                                   2009       2008       2009       2008
                                   ----       ----       ----       ----

    Net interest income         $11,630    $10,621    $24,127    $20,612
    Total noninterest income     21,144      9,789     44,405     16,869
                                 ------      -----     ------     ------
      Total revenue, net of
       interest expense          32,774     20,410     68,532     37,481
    Provision for
     credit losses               13,375      5,830     26,755     11,840
    Noninterest
     expense, before
     merger and
     restructuring
     charges                     16,191      9,447     32,428     18,540
    Merger and restructuring
     charges                        829        212      1,594        382
                                    ---        ---      -----        ---
      Income before
       income taxes               2,379      4,921      7,755      6,719
    Income tax expense
     (benefit)                     (845)     1,511        284      2,099
                                   ----      -----        ---      -----
      Net income                 $3,224     $3,410     $7,471     $4,620
                                 ======     ======     ======     ======
    Preferred stock
     dividends                      805        186      2,238        376
                                    ---        ---      -----        ---
      Net income available to
       common shareholders       $2,419     $3,224     $5,233     $4,244
                                 ======     ======     ======     ======

    Earnings per
     common share                 $0.33      $0.72      $0.75      $0.95
    Diluted earnings per
     common share                  0.33       0.72       0.75       0.95


    Summary Average             Three Months Ended     Six Months Ended
     Balance Sheet                   June 30               June 30
    ---------------            -------------------    -----------------
                                   2009       2008       2009       2008
                                   ----       ----       ----       ----

    Total loans and leases     $966,105   $878,639   $980,035   $877,150
    Debt securities             255,159    235,369    270,618    227,373
    Total earning assets      1,811,981  1,500,234  1,861,954  1,505,265
    Total assets              2,420,317  1,754,613  2,469,452  1,759,770
    Total deposits              974,892    786,002    969,516    786,813
    Shareholders' equity        242,867    161,428    235,855    158,078
    Common
     shareholders'
     equity                     173,497    140,243    167,153    140,849


                                Three Months Ended     Six Months Ended
    Performance Ratios               June 30               June 30
    -------------------        -------------------    -----------------
                                   2009       2008       2009       2008
                                   ----       ----       ----       ----

    Return on average assets       0.53%      0.78%      0.61%      0.53%
    Return on average common
     shareholders' equity          5.59       9.25       6.31       6.06


                                Three Months Ended     Six Months Ended
    Credit Quality                   June 30               June 30
    --------------             -------------------    -----------------
                                   2009       2008       2009       2008
                                   ----       ----       ----       ----

    Total net charge-offs        $8,701     $3,619    $15,643     $6,334
    Annualized net charge-
     offs as a % of average
     loans and leases
     outstanding (1)               3.64%      1.67%      3.24%      1.46%
    Provision for
     credit losses              $13,375     $5,830    $26,755    $11,840
    Total consumer
     credit card
     managed net losses           5,047      2,751      8,841      5,123
    Total consumer credit
     card managed net
     losses as a % of
     average managed credit
     card receivables             11.73%      5.96%     10.16%      5.58%


                                       June 30
                                   ---------------
                                   2009       2008
                                   ----       ----
    Total nonperforming
     assets                     $30,982     $9,749
    Nonperforming assets as
     a % of total loans,
     leases and foreclosed
     properties (1)                3.31%      1.13%
    Allowance for loan
     and lease losses           $33,785    $17,130
    Allowance for loan and
     lease losses as a % of
     total loans and leases
     outstanding (1)               3.61%      1.98%


    Capital Management                  June 30
    ------------------             ---------------
                                   2009       2008
                                   ----       ----
    Risk-based capital
     ratios:
      Tier 1                      11.93%      8.25%
      Tier 1 common                6.90       4.78
      Total                       15.99      12.60
    Tangible equity ratio (2)      7.39       4.72
    Tangible common equity
     ratio (3)                     4.67       3.24

    Period-end common
     shares issued and
     outstanding              8,651,459  4,452,947


                                Three Months Ended     Six Months Ended
                                     June 30               June 30
                               -------------------    -----------------
                                   2009       2008       2009       2008
                                   ----       ----       ----       ----

    Shares issued (4)         2,250,509        137  3,634,024     15,062
    Average common
     shares issued and
     outstanding              7,241,515  4,435,719  6,808,262  4,431,870
    Average diluted common
     shares issued and
     outstanding              7,269,518  4,444,098  6,836,972  4,445,428
    Dividends paid per
     common share                 $0.01      $0.64      $0.02      $1.28


                                      June 30
    Summary End of Period          ---------------
     Balance Sheet                 2009       2008
    ---------------------          ----       ----

    Total loans and leases     $942,248   $870,464
    Total debt securities       267,238    249,859
    Total earning assets      1,721,618  1,458,796
    Total assets              2,254,394  1,716,875
    Total deposits              970,742    784,764
    Total shareholders'
     equity                     255,152    162,691
    Common shareholders'
     equity                     196,492    138,540
    Book value per share of
     common stock                $22.71     $31.11

    ----------------------------------------------------------
    (1) Ratios do not include loans measured at fair value in accordance with
        SFAS 159 at and for the three and six months ended June 30, 2009 and
        2008.
    (2) Tangible equity ratio equals shareholders' equity less goodwill and
        intangible assets (excluding mortgage servicing rights), net of
        related deferred tax liabilities divided by total assets less
        goodwill and intangible assets (excluding mortgage servicing rights),
        net of related deferred tax liabilities.
    (3) Tangible common equity ratio equals common shareholders' equity less
        goodwill and intangible assets (excluding mortgage servicing rights),
        net of related deferred tax liabilities divided by total assets less
        goodwill and intangible assets (excluding mortgage servicing rights),
        net of related deferred tax liabilities.
    (4) 2009 amounts include approximately 1.375 billion shares issued in the
        Merrill Lynch acquisition.

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

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



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

    For the three months
     ended June 30
                                          Global Card          Home Loans
                        Deposits        Services (1, 2)       & Insurance
                    --------------      ---------------       -------------
                    2009      2008      2009      2008        2009     2008
                    ----      ----      ----      ----        ----     ----
    Total revenue,
     net of
     interest
     expense (3)   $3,495    $4,400    $7,337    $7,500      $4,461    $1,261
    Provision for
     credit losses     96        89     7,741     4,259       2,726     2,034
    Noninterest
     expense        2,649     2,324     1,976     2,375       2,829       732
    Net income
     (loss)           505     1,238    (1,618)      582        (725)     (948)

    Efficiency
     ratio (3)      75.80%    52.82%    26.93%    31.67%      63.41%    58.02%
    Return on
     average
     equity          8.58     20.30      n/m       6.01         n/m       n/m
    Average - total
     loans and
     leases           n/m       n/m $220,365   $238,918    $131,509   $91,199
    Average -
     total
     deposits    $417,114  $337,253      n/m        n/m         n/m       n/m


                                                             Global Wealth &
                                                               Investment
                    Global Banking       Global Markets        Management
                    --------------       ---------------      --------------
                    2009      2008       2009       2008      2009      2008
                    ----      ----       ----       ----      ----      ----
    Total revenue,
     net of
     interest
     expense (3)   $8,658    $4,455    $4,452    $1,378      $4,196    $2,295
    Provision for
     credit losses  2,584       400        (1)      (38)        238       119
    Noninterest
     expense        2,232     1,747     2,559       951       3,304     1,244
    Net income      2,487     1,433     1,377       298         441       581

    Efficiency
     ratio (3)      25.78%    39.24%    57.46%    69.04%      78.74%    54.21%
    Return on
     average
     equity         16.50     11.85     17.81      9.90        9.45     19.84
    Average - total
     loans and
     leases      $323,217  $315,282      n/m       n/m     $101,748   $87,574
    Average -
     total
     deposits     199,879   169,738      n/m       n/m      214,111   157,113


                    All Other (1, 4)
                    ----------------
                     2009      2008
                     ----      ----
    Total revenue,
     net of
     interest
     expense (3)     $487     $(563)
    Provision for
     credit losses     (9)   (1,033)
    Noninterest
     expense        1,471       286
    Net income        757       226

    Average - total
     loans and
     leases      $159,142  $117,504
    Average -
     total
     deposits     108,079    96,998

    --------------------------------------------------
    (1) Global Card Services is presented on a managed basis with a
        corresponding offset recorded in All Other.
    (2) Provision for credit losses represents provision for credit losses
        on held loans combined with realized credit losses associated with
        the securitized loan portfolio.
    (3) Fully taxable-equivalent (FTE) basis. FTE basis is a performance
        measure used by management in operating the business that management
        believes provides investors with a more accurate picture of the
        interest margin for comparative purposes.
    (4) Provision for credit losses represents provision for credit losses
        in All Other combined with the Global Card Services securitization
        offset.
    n/m = not meaningful

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


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



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

    For the six months ended June 30

                                          Global Card          Home Loans &
                        Deposits        Services (1, 2)         Insurance
                     --------------     --------------         -------------
                     2009      2008     2009      2008         2009     2008
                     ----      ----     ----      ----         ----     ----
    Total revenue,
     net of
     interest
     expense (3)   $6,907    $8,488  $14,846   $15,430       $9,684    $2,584
    Provision for
     credit losses    187       195   16,182     8,711        6,098     3,846
    Noninterest
     expense        5,008     4,516    4,053     4,572        5,479     1,470
    Net income
     (loss)         1,106     2,363   (3,494)    1,401       (1,223)   (1,721)

    Efficiency
     ratio (3)      72.50%    53.21%   27.30%    29.63%       56.58%    56.91%
    Return on
     average equity  9.47     19.31      n/m      7.28          n/m       n/m
    Average - total
     loans and
     leases           n/m       n/m $224,391  $236,738     $129,110   $89,218
    Average -
     total
     deposits    $397,454  $338,358      n/m       n/m          n/m       n/m


                                                            Global Wealth &
                                                               Investment
                    Global Banking      Global Markets         Management
                    --------------      --------------        --------------
                    2009      2008      2009      2008        2009      2008
                    ----      ----      ----      ----        ----      ----
    Total revenue,
     net of
     interest
     expense (3)  $13,298    $8,354  $11,351      $537       $8,559    $4,237
    Provision for
     credit losses  4,432       926       50       (39)         492       362
    Noninterest
     expense        4,747     3,494    5,615     1,680        6,594     2,555
    Net income
     (loss)         2,659     2,456    3,812      (691)         951       825

    Efficiency
     ratio (3)      35.70%    41.82%   49.46%      n/m        77.04%    60.31%
    Return on
     average equity  9.17     10.27    26.38       n/m        10.70     14.21
    Average -
     total loans
     and leases  $327,074  $310,603      n/m       n/m     $106,117   $86,609
    Average -
     total
     deposits     197,981   165,232      n/m       n/m      231,853   152,808


                    All Other (1, 4)
                    ----------------
                     2009      2008
                     ----      ----
    Total revenue,
     net of
     interest
     expense (3)   $4,521   $(1,533)
    Provision for
     credit losses   (686)   (2,161)
    Noninterest
     expense        2,526       635
    Net income
     (loss)         3,660       (13)

    Average -
     total loans
     and leases  $163,770  $125,695
    Average -
     total
     deposits     108,757   105,109

    ----------------------------------------------------
    (1) Global Card Services is presented on a managed basis with a
        corresponding offset recorded in All Other.
    (2) Provision for credit losses represents provision for credit losses
        on held loans combined with realized credit losses associated with
        the securitized loan portfolio.
    (3) Fully taxable-equivalent (FTE) basis. FTE basis is a performance
        measure used by management in operating the business that management
        believes provides investors with a more accurate picture of the
        interest margin for comparative purposes.
    (4) Provision for credit losses represents provision for credit losses
        in All Other combined with the Global Card Services securitization
        offset.
    n/m = not meaningful


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


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



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

    Fully taxable-                          Three Months       Six Months
     equivalent basis data                 Ended June 30     Ended June 30
    ----------------------               ----------------  ----------------
                                            2009     2008     2009     2008
                                            ----     ----     ----     ----

    Net interest income                  $11,942  $10,937  $24,761  $21,228
    Total revenue, net of
     interest expense                     33,086   20,726   69,166   38,097
    Net interest yield                      2.64%    2.92%    2.67%    2.83%
    Efficiency ratio                       51.44    46.60    49.19    49.67


                                               June 30
                                            -------------
    Other Data                              2009     2008
    ----------                              ----     ----

    Full-time equivalent employees       282,408  206,587
    Number of banking centers - domestic   6,109    6,131
    Number of branded ATMs - domestic     18,426   18,531


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



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

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

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

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


    Global Card Services

                     Six Months Ended                  Six Months Ended
                      June 30, 2009                     June 30, 2008
                    ------------------                ------------------
                          Securit-                         Securit-
               Managed    ization      Held     Managed    ization      Held
              Basis (1)  Impact (2)    Basis   Basis (1)  Impact (2)    Basis
             ----------  ----------    -----   ---------  ----------    -----
    Net
     interest
     income
     (3)         $10,308   $(4,749)   $5,559     $9,331     $(4,195)   $5,136
    Noninterest
     income:
     Card
      income       4,279      (348)    3,931      5,275       1,261     6,536
     All other
      income         259       (67)      192        824        (125)      699
                     ---       ---       ---        ---        ----       ---
      Total
       noninterest
       income      4,538      (415)    4,123      6,099       1,136     7,235
                   -----      ----     -----      -----       -----     -----
      Total
       revenue,
       net of
       interest
       expense    14,846    (5,164)    9,682     15,430      (3,059)   12,371

    Provision
     for credit
     losses       16,182    (5,164)   11,018      8,711      (3,059)    5,652
    Noninterest
     expense       4,053         -     4,053      4,572           -     4,572
                   -----       ---     -----      -----         ---     -----
      Income
       (loss)
       before
       income
       taxes      (5,389)        -    (5,389)     2,147           -     2,147
    Income tax
     expense
     (benefit)
     (3)          (1,895)        -    (1,895)       746           -       746
                  ------       ---    ------        ---         ---       ---
      Net
       income
       (loss)    $(3,494)       $-   $(3,494)    $1,401          $-    $1,401
                 =======       ===   =======     ======         ===    ======

    Average -
     total
     loans
     and
     leases     $224,391 $(102,357) $122,034   $236,738   $(106,306) $130,432


    All Other
                     Six Months Ended                 Six Months Ended
                       June 30, 2009                     June 30, 2008
                     ------------------               -----------------
                            Securit-                         Securit-
                Reported    ization       As     Reported    ization    As
                Basis (4) Offset (2)  Adjusted  Basis (4)  Offset (2) Adjusted
               ---------  ----------  --------  ---------  ---------- --------
    Net
     interest
     income(3)  $(3,477)    $4,749    $1,272    $(3,771)     $4,195      $424
    Noninterest
     income:
     Card income
      (loss)        256        348       604      1,259      (1,261)       (2)
     Equity
      investment
      income      7,305          -     7,305        977           -       977
     Gains on
      sales of
      debt
      securities  2,143          -     2,143        351           -       351
     All other
      income
      (loss)     (1,706)        67    (1,639)      (349)        125      (224)
                 ------        ---    ------       ----         ---      ----
      Total
       noninterest
       income     7,998        415     8,413      2,238      (1,136)    1,102
                  -----        ---     -----      -----      ------     -----
      Total
       revenue,
       net of
       interest
       expense    4,521      5,164     9,685     (1,533)      3,059     1,526

    Provision
     for credit
     losses        (686)     5,164     4,478     (2,161)      3,059       898
    Merger and
     restructuring
     charges      1,594          -     1,594        382           -       382
    All other
     noninterest
     expense        932          -       932        253           -       253
                    ---        ---       ---        ---         ---       ---
      Income
       (loss)
       before
       income
       taxes      2,681          -     2,681         (7)          -        (7)
    Income tax
     expense (3)   (979)         -      (979)         6           -         6
                   ----        ---      ----        ---         ---       ---
      Net
       income
       (loss)    $3,660         $-    $3,660       $(13)         $-      $(13)
                 ======        ===    ======       ====         ===      ====

    Average -
     total
     loans
     and
     leases    $163,770   $102,357  $266,127   $125,695    $106,306  $232,001

    ---------------------------------------------
    (1) Provision for credit losses represents provision for credit losses
        on held loans combined with realized credit losses associated with
        the securitized loan portfolio.
    (2) The securitization impact/offset on net interest income is on a funds
        transfer pricing methodology consistent with the way funding costs
        are allocated to the businesses.
    (3) FTE basis
    (4) Provision for credit losses represents provision for credit losses
        in All Other combined with the Global Card Services securitization
        offset.

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


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

SOURCE Bank of America

http://www.bankofamerica.com