Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


FORM 11-K

 


(Mark One)

x ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2006

or

 

¨ TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             .

Commission file number 1-6523

 


A. Full title of the plan and the address of the plan, if different from that of the issuer named below:

The Bank of America 401(k) Plan

B. Name of the issuer of the securities held pursuant to the plan and the address of its principal executive office:

Bank of America Corporation

Bank of America Corporate Center

Charlotte, NC 28255

 



Table of Contents

THE BANK OF AMERICA 401(k) PLAN

FINANCIAL STATEMENTS AND

SUPPLEMENTAL SCHEDULE WITH

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

DECEMBER 31, 2006 AND 2005

MORRIS, DAVIS & CHAN LLP

Certified Public Accountants


Table of Contents

The Bank of America 401(k) Plan

Index to Financial Statements and Supplemental Schedule

December 31, 2006 and 2005


 

     Page

Report of Independent Registered Public Accounting Firm

   1

Financial Statements:

  

Statements of Net Assets Available for Benefits

   2

Statements of Changes in Net Assets Available for Benefits

   3

Notes to Financial Statements

   4 - 18

Supplemental Schedule:

  

Schedule H, Line 4i—Schedule of Assets

   19 - 29


Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Plan Participants and the Corporate Benefits Committee of The Bank of America 401(k) Plan:

We have audited the accompanying statements of net assets available for benefits of The Bank of America 401(k) Plan (the Plan) as of December 31, 2006 and 2005, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2006 and 2005, and the changes in net assets available for benefits for the years then ended in conformity with U.S. generally accepted accounting principles.

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedule of assets as of December 31, 2006 is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Morris Davis & Chan LLP

Charlotte, North Carolina

June 15, 2007


Table of Contents

The Bank of America 401(k) Plan

Statements of Net Assets Available for Benefits

December 31, 2006 and 2005

 

     2006    2005

Assets

     

Investments, at fair value (Notes 1 and 2)

     

Bank of America Corporation Common Stock (Notes 3 and 8)

   $ 4,133,569,603    $ 3,943,802,661

Bank of America Corporation Preferred Stock

     —        50,933

Common and preferred stock

     3,487,707      4,000,600

Investment contracts (Notes 2 and 5)

     1,203,856,536      1,096,436,254

Collective Investment funds

     23,774,952      22,628,221

Columbia Fund investments (Notes 3 and 8)

     

Money market

     102,893,888      104,318,705

Fixed income

     131,957,960      121,229,024

Equity

     2,687,465,796      2,278,919,342

Mutual funds

     1,431,765,631      834,892,161

Corporate debt and asset-backed securities

     521,353      479,323

Mortgage-backed securities

     435,558      536,386

U.S. government and government agency obligations

     1,477,232      1,702,612

Other investments

     75,500,338      8,672,856
             

Total investments

     9,796,706,554      8,417,669,078

Accrued dividends and interest receivable

     1,187,415      825,981

Employer contribution receivable

     25,535,157      14,232,959

Employee contribution receivable

     14,780,034      12,441,114

Other receivable

     748,372      41,456
             

Total assets

     9,838,957,532      8,445,210,588

Liabilities

     

Due to broker for securities purchased

     16,502,243      11,908,960

Other payable

     253,718      —  
             

Total liabilities

     16,755,961      11,908,960
             

Net assets reflecting all investments at fair value

     9,822,201,571      8,433,301,628

Adjustment from fair value to contract value for fully benefit-responsive investment contracts (Note 5)

     12,288,400      9,129,274
             

Net assets available for benefits

   $ 9,834,489,971    $ 8,442,430,902
             

The accompanying notes are an integral part of these financial statements.

 

2


Table of Contents

The Bank of Amedrica 401(k) Plan

Statements of Changes in Net Assets Available for Benefits

Years Ended December 31, 2006 and 2005

 

     2006    2005

Investment income

     

Interest

   $ 58,709,119    $ 50,410,950

Dividends

     

Bank of America Corporation Common Stock

     169,077,252      167,280,022

Bank of America Corporation Preferred Stock

     1,268      3,321

Other common and preferred stock

     308,455      301,666

Investment income from Columbia Fund investments

     124,935,905      80,295,780

Investment income from other mutual funds

     86,842,655      32,062,571

Other

     1,393,843      921,926

Net appreciation in fair value of investments (Note 6)

     916,117,512      57,472,342
             

Total investment income

     1,357,386,009      388,748,578
             

Contributions

     

Employees

     550,938,393      458,460,666

Employer

     256,073,608      222,522,260
             

Total contributions

     807,012,001      680,982,926
             

Total additions

     2,164,398,010      1,069,731,504
             

Benefits paid to plan participants

     766,932,280      761,638,819

Other expense

     227,115      134,834

Trustee and administrative fees (Note 2)

     5,179,546      9,643,898
             

Total deductions

     772,338,941      771,417,551
             

Net increase

     1,392,059,069      298,313,953

Net assets available for benefits

     

Beginning of year

     8,442,430,902      8,144,116,949
             

End of year

   $ 9,834,489,971    $ 8,442,430,902
             

The accompanying notes are an integral part of these financial statements.

 

3


Table of Contents

The Bank of America 401(k) Plan

Notes to Financial Statements

December 31, 2006 and 2005


 

1. Description of the Plan

The following description of The Bank of America 401(k) Plan (the Plan) is provided for general information purposes only. Participants should refer to the Associate Handbook and any supplements thereto for a more complete description of applicable Plan provisions. Other Plan provisions may also apply to participants from predecessor plans assumed by Bank of America Corporation (the Corporation) and merged into the Plan.

Plan Sponsor and Participating Employers

The Corporation is the Plan sponsor. Participating employers in the Plan include the Corporation and certain of the Corporation’s principal subsidiaries.

General

The Plan is a defined contribution plan for employees of the Corporation and participating subsidiaries. It is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA). All employees covered by the Plan are eligible to make pre-tax contributions as soon as administratively practical after employment commences. After-tax contributions are not permitted.

All employees covered by the Plan are eligible to receive company matching contributions after completing 12 months of service. Any pre-tax contributions made prior to completing 12 months of service are not eligible for the company matching contribution.

The Plan is administered by the Bank of America Corporation Corporate Benefits Committee (the Committee). The Board of Directors of the Corporation has the right at any time to remove any member of the Committee. Members of the Committee serve without compensation and act by majority vote. The Committee has overall responsibility for the operation and administration of the Plan including the power to construe and interpret the Plan, decide all questions that arise thereunder, and to delegate responsibilities.

Investment Alternatives

The Plan provides participants with 19 investment alternatives. These investment alternatives are the Stable Capital Fund, the Bank of America Corporation Common Stock Fund, which invests primarily in the Corporation’s common stock, and 17 investment alternatives that invest, respectively, in the following mutual funds: the Columbia Large Cap Value Fund, the Columbia Core Bond Fund, the Columbia Large Cap Index Fund, Columbia Multi-Advisor International Equity Fund, the Columbia Marsico Focused Equities Fund, the Columbia Small Cap Index Fund, the Columbia Mid Cap Index Fund, the Columbia LifeGoal® Income & Growth Portfolio, the Columbia LifeGoal® Balanced Growth Portfolio, the Columbia LifeGoal® Growth Portfolio, the Batterymarch U.S. Small Cap Equity Portfolio, the Western Asset Core

 

4


Table of Contents

The Bank of America 401(k) Plan

Notes to Financial Statements

December 31, 2006 and 2005


1. Description of the Plan (Continued)

 

Bond Portfolio, the Vanguard® Total Stock Market Index Fund, the Dodge & Cox Stock Fund, the Growth Fund of America®, the Fidelity Diversified International Fund and the Fidelity Real Estate Investment Portfolio.

Participants may elect to modify existing investment allocations on a periodic basis subject to the provisions of the Plan.

The Plan also includes a Segregated Fund that is not available for additional participant investments. The Segregated Fund consists of the segregated investments and accounts of certain participants of the former NationsBank Texas Plan.

Plan Trustee

Bank of America, N.A. is the Plan Trustee.

Contributions

The Plan provides for participant pre-tax contributions through salary deductions ranging from 1% to 30% of base pay, overtime pay, shift differential pay, vacation and holiday pay, short-term disability benefits, and commissions, bonuses or other incentive pay designated by the Committee. In accordance with federal law, annual pre-tax contributions for 2006 and 2005 were limited to $15,000 and $14,000, respectively, for participants who are below age 50. Additional contributions of $5,000 in 2006 and $4,000 in 2005 were permitted for participants over age 50. Participants are permitted to change their contribution rate in multiples of 1% on a daily basis.

Company matching contributions are calculated and allocated to the participant’s account on a pay period basis. The company matching contribution is equal to the first 5% of plan-eligible compensation contributed by the participant for the pay period. Company matching contributions are made in cash and are directed to the same investment choices as the pre-tax contributions. An end of year “true-up” matching contribution is also provided.

Employer contributions include forfeitures and additional contributions made in the form of cash. After consideration of forfeitures, the actual cash remitted by the Corporation was $256,073,608 and $222,522,260 for 2006 and 2005, respectively.

Payment of Benefits

While still in service, participants may generally withdraw employee and employer vested contributions as follows:

 

 

(1)

Employee contributions may be withdrawn in the case of financial hardship within the meaning of Section 401(k) of the Internal Revenue Code (IRC), disability or after age 59 1/2;

 

5


Table of Contents

The Bank of America 401(k) Plan

Notes to Financial Statements

December 31, 2006 and 2005


1. Description of the Plan (Continued)

 

 

(2)

Company matching contributions for 2005 and later Plan years may be withdrawn in the case of disability or after age 59 1/2; and

 

 

(3)

Company matching contributions for pre-2005 Plan years may be withdrawn in the case of financial hardship (as referenced above), disability, after 5 years of Plan participation, or after age 59 1/2.

Following a participant’s death, disability, retirement or other separation from service, all vested amounts held in the Plan for a participant’s benefit are payable in a single lump sum. The form of payment is cash, except to the extent that the participant elects to have the portion of his/her account invested in the Bank of America Corporation Common Stock Fund (and while maintained any other Plan investment fund primarily invested in Bank of America Corporation Common Stock) distributed in shares of Bank of America Corporation Common Stock. Participants may elect to roll over a portion or all of their vested Plan balance to increase their monthly annuity payment under The Bank of America Pension Plan (the Pension Plan) if their vested balances in both the Pension Plan and this Plan exceed $5,000. The Pension Plan is a defined benefit cash balance plan providing retirement benefits to eligible employees. The Plan provides other payment methods for certain participants in predecessor plans merged with the Plan.

Vesting of Benefits

Each participant is 100% vested in the participant’s pre-tax and rollover contributions to the Plan and company matching contributions as well as earnings thereon.

Participant Accounts

Each participant’s account is credited with the allocation of their pre-tax and matching contributions each pay period. Earnings for all funds are allocated to a participant’s account on a daily basis, based on the participant’s account balance in relation to the total fund balance. Participants may elect to have the dividends earned on the Corporation’s stock allocated to their accounts, paid directly in cash or reinvested in the Plan. Loan interest is credited to the investment funds of the participant making the payment.

Loans to Participants

During 2006 the Plan began making loans to participants. Prior to 2006, the Plan did not permit new loans to participants and the Plan’s Loan Fund consisted of participant loans made under merged plans.

 

6


Table of Contents

The Bank of America 401(k) Plan

Notes to Financial Statements

December 31, 2006 and 2005


1. Description of the Plan (Continued)

 

Participants with vested account balances of at least $2,000 may borrow from their vested account balance. The minimum loan amount is $1,000. The maximum loan amount is $50,000. The maximum loan amount is reduced by (i) the outstanding balance of any other loan from the Plan or the Bank of America Pension Plan or (ii) if greater, the highest outstanding balance of any other loan from the Plan or the Bank of America Pension Plan any time during the one year period ending immediately before the date of the loan. The maximum loan amount may also not exceed 50% of the participant’s vested account balance, reduced by the outstanding balance of any other loan from the Plan or the Bank of America Pension Plan.

Participants may apply for a general purpose loan or a primary residence loan. At any time participants may have only one general purpose loan and one primary residence loan outstanding from the Plan.

Each loan bears an interest rate equal to the prime rate plus 1% and is fixed for the life of the loan. Interest rates ranged from 4.0% to 11.5% and 6.0% to 12.0% for loans held by the Plan during 2006 and 2005, respectively.

Loan repayments are made from payroll deductions and are invested in accordance with the participant’s current investment direction for future contributions. The repayment period for general purpose loans is 12 to 57 months. In the case of a primary residence loan, the repayment period can be up to 180 months.

 

2. Summary of Significant Accounting Policies

Significant accounting policies of the Plan are summarized below:

Basis of Accounting

The financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (GAAP). Revenues are recognized as earned. Benefits paid to plan participants are recorded when paid. All other expenses are recorded as incurred.

Management Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of Plan assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of Plan additions and deductions during the reporting period. Actual results could differ from those estimates.

 

7


Table of Contents

The Bank of America 401(k) Plan

Notes to Financial Statements

December 31, 2006 and 2005


2. Summary of Significant Accounting Policies (Continued)

 

Valuation of Investments

Mutual funds are valued at the net asset value of the fund units owned.

Mortgage notes receivable, certificates of deposit, annuity contracts and cash equivalents are valued at face value which approximates fair value as determined in good faith by Bank of America, N.A., the Trustee, a wholly-owned indirect subsidiary of the Corporation.

Participant loans are valued at cost, which approximates market as determined in good faith by Bank of America, N.A., the Trustee.

Investment contracts are stated at fair market value and are adjusted to contract value (which represent contributions made under the contract, plus interest earned, less withdrawals and administrative expenses) on the Statement of Net Assets Available for Benefits (see note 5: Investment Contracts).

All other investments are valued at fair value as of the end of the Plan year, based on quoted market prices. The fair market values of investments that do not have readily ascertainable market values have been estimated by the Bank of America, N.A., the Trustee.

Investment Transactions

Realized gains or losses on investment transactions are recorded as the difference between proceeds received and cost.

Cost is determined on the average cost basis, except for Bank of America Corporation Common Stock, which is determined based on the aggregate participant level average cost basis.

Net appreciation (depreciation) in fair value of investments includes the reversal of previously recognized appreciation (depreciation) related to investments sold during the period.

Investment securities purchased and sold are recorded on a trade date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

 

8


Table of Contents

The Bank of America 401(k) Plan

Notes to Financial Statements

December 31, 2006 and 2005


2. Summary of Significant Accounting Policies (Continued)

 

Plan Expenses

Bank of America, N.A. Trustee direct expenses, some professional fees and certain administrative fees for associate communication and services, recordkeeping and benefit payment services are paid by the Plan. These expenses are borne by participants based on their investments in the Plan’s investment funds. Other administrative expenses and some professional fees are paid by the Corporation.

Investment Management

The Plan provides 19 investment alternatives to participants. Some of these investment alternatives are primarily invested in mutual funds from the Columbia Funds mutual fund families, which are administered and advised by certain affiliates of the Corporation. The affiliates are Marsico Capital Management, LLC (MCM), and Columbia Management Advisors (CMA), which are all part of the Columbia Management Group, the primary asset management division of the Corporation. The other investment alternatives are primarily invested in (i) mutual funds that are not administered or advised by affiliates of the Corporation, (ii) the Corporation’s common stock, or (iii) in the case of the Stable Capital Fund, a separately managed account that is managed by an unaffiliated investment advisor, Standish Mellon Asset Management Company, LLC.

New Accounting Pronouncement

As described in Financial Accounting Standards Board Staff Position, FSP AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans (the FSP), investment contracts held by a defined-contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined-contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the plan. As required by the FSP, the Statement of Net Assets Available for Benefits presents the fair value of the investment contracts from fair value to contract value. Prior year balances have been reclassified accordingly. The Statement of Changes in Net Assets Available for Benefits is prepared on a contract value basis.

Reclassifications

Certain amounts in the prior year financial statements and notes have been reclassified to conform to current year presentation.

 

9


Table of Contents

The Bank of America 401(k) Plan

Notes to Financial Statements

December 31, 2006 and 2005


 

3. Concentrations of Investment Risk

Included in the Supplemental Schedule of Assets, is a complete listing of the Plan’s investments at December 31, 2006. Investments at December 31, 2006 and 2005 that represent 5% or more of the Plan’s net assets available for benefits include the following:

 

     2006    2005

Bank of America Corporation Common Stock

   $ 4,133,569,603    $ 3,943,802,661

Columbia Large Cap Index Fund

     826,433,219      750,270,684

 

4. Risks and Uncertainties

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statement of net assets available for benefits.

 

5. Investment Contracts

The terms of the majority of the contracts are benefit responsive, providing a guarantee by the issuer to pay principal plus accrued interest in response to benefit-related requests for payment. The average yield and crediting interest rates for such investments were 4.80% and 4.89%, respectively, for 2006 and 4.59% and 4.69%, respectively, for 2005. The average yield credited to participants was 4.76% and 4.38% for 2006 and 2005, respectively. The fair market values of these investment contracts reported in aggregate for the Stable Capital Fund were $1,269,953,003 and $1,164,577,683 as of December 31, 2006 and 2005, respectively.

The Stable Capital Fund contains Traditional, Separate Account Fixed Maturity Synthetic, and Constant Duration Synthetic Guaranteed Investment Contracts. These are described below.

Guaranteed Investment Contracts

Traditional Guaranteed Investment Contracts (GICs) are unsecured, general account obligations of insurance companies. The obligation is backed by the general account assets of the insurance company that writes the investment contract. The crediting rate on this product is typically fixed for the life of the investment.

 

10


Table of Contents

The Bank of America 401(k) Plan

Notes to Financial Statements

December 31, 2006 and 2005


5. Investment Contracts (Continued)

 

Separate account GICs are investments in a segregated account of assets maintained by an insurance company for the benefit of the investors. The total return of the segregated account assets supports the separate account GICs return. The credited rate on this product will reset periodically and it will have an interest rate of not less than 0%.

Fair values of GICs are calculated using the present value of the contract’s future cash flow values discounted by comparable duration Wall Street Journal GIC Index rates.

Fixed Maturity Synthetic Guaranteed Investment Contracts

General fixed maturity synthetic GICs consist of an asset or collection of assets that are owned by the fund (or plan) and a benefit responsive, book value wrap contract purchased for the portfolio. The wrap contract provides book value accounting for the asset and assures that book value, benefit responsive payments will be made for participant directed withdrawals. The crediting rate of the contract is set at the start of the contract and typically resets every quarter. Generally, Fixed Maturity Synthetics are held to maturity. The initial crediting rate is established based on the market interest rates at the time the initial asset is purchased and it will have an interest crediting rate not less than 0%.

Fair values of general fixed maturity synthetic GICs are calculated using the sum of all assets’ market values provided by FT Interactive, a third party vendor Standish Mellon has engaged to provide fixed income prices on a monthly basis.

Variable synthetic GICs consist of an asset or collection of assets that are managed by the bank or insurance company and are held in a bankruptcy remote vehicle for the benefit of the fund (or plan). The contract is benefit responsive and provides next day liquidity at book value. The crediting rate on this product resets every quarter based on the then current market index rates and an investment spread. The investment spread is established at time of issuance and is guaranteed by the issuer for the life of the investment.

Fair values for variable synthetic GICs are calculated using the present value of the contract’s future cash flow values discounted by comparable swap rates.

 

11


Table of Contents

The Bank of America 401(k) Plan

Notes to Financial Statements

December 31, 2006 and 2005


5. Investment Contracts (Continued)

 

Constant Duration Synthetic Guaranteed Investment Contracts

Constant duration synthetic GICs consist of a portfolio of securities owned by the fund (or plan) and a benefit responsive, book value wrap contract purchased for the portfolio. The wrap contract amortizes gains and losses of the underlying securities over the portfolio duration, and assures that book value, benefit responsive payments will be made for participant directed withdrawals. The crediting rate on a constant duration synthetic GIC resets every quarter based on the book value of the contract, the market yield of the underlying assets, the market value of the underlying assets and the average duration of the underlying assets. The crediting rate aims at converging the book value of the contract and the market value of the underlying portfolio over the duration of the contract and therefore will be affected by movements in interest rates and/or changes in the market value of the underlying portfolio. The initial crediting rate is established based on the market interest rates at the time the underlying portfolio is first put together and it will have an interest crediting rate of not less than 0%.

Fair values for constant duration synthetic GICs are calculated using the market values provided by the external investment managers Standish Mellon or its clients have engaged to provide investment services.

It is probable that withdrawals and transfers resulting from the following events will limit the ability of the fund to transact at book or contract value. Instead, market value will likely be used in determining the payouts to the participants:

 

  a) Employer- initiated events – events within the control of the plan or the plan sponsor which would have a material and adverse impact on the Fund;

 

  b) Employer communications designed to induce participants to transfer from the fund;

 

  c) Competing fund transfer or violation of equity wash or equivalent rules in place;

 

  d) Changes of qualification status of employer or plan.

In general, issuers may terminate the contract and settle at other than contract value if the qualification status of employer or plan changes, breach of material obligations under the contract and misrepresentation by the contract holder, or failure of the underlying portfolio to conform to the pre-established investment guidelines.

All contracts are benefit responsive unless otherwise noted.

 

12


Table of Contents

The Bank of America 401(k) Plan

Notes to Financial Statements

December 31, 2006 and 2005


5. Investment Contracts (Continued)

 

     2006  
  

Major

Credit

Rating

  

Investment
Contract

at Fair Value

   Wrap
Contract
Fair Value
   

Adjustment

to Contract
Value

 

Guaranteed Investment Contracts

          

Canada Life

   AA/Aa3    $ 10,016,785    $ —       $ —    

Canada Life

   AA/Aa3      7,182,994      —         —    

Canada Life

   AA/Aa3      6,749,899      —         —    

Hartford Life Insurance Company

   AA-/Aa3      6,005,114      —         —    

Pacific Life Insurance Company

   AA/Aa3      22,922,731      —         339,869  

Principal Life Insurance Company

   AA/Aa2      23,172,235      —         121,613  

Pruco Life

   AAA/Aaa      9,625,412      —         —    

Pruco Life

   AAA/Aaa      9,987,827      —         —    

Genworth Life

   AA-/Aa3      4,499,455      —         500  

Fixed Maturity Synthetic Guaranteed Investment Contracts

          

Rabobank

   AAA/Aaa      90,776,853      (13,118 )     1,013,975  

State Street Bank

   AAA/Aaa      44,668,338      (6,695 )     (190,141 )

Rabobank

   AAA/Aaa      21,715,405      (3,220 )     281,145  

UBS AG

   AAA/Aaa      186,502,975      (59,180 )     4,748,559  

Constant Duration Synthetic Guaranteed Investment Contracts

          

IXIS Financial Products

   AA+/Aa1      178,887,832      (86,905 )     251,383  

Rabobank

   AA+/Aa1      90,177,535      (14,914 )     1,999,930  

Transamerica

   AA+/Aa1      132,588,012      (21,896 )     780,356  

AIG Financial Products

   AA+/Aa1      190,919,404      (91,505 )     1,218,043  

Royal Bank of Canada

   AA+/Aa1      157,719,766      (52,272 )     1,558,797  

Cash Equivalent

 

IXIS Financial Products

   AAA/Aaa      10,087,669      —         11,797  
                          

Total Investment Contracts

        1,204,206,241      (349,705 )     12,135,826  

Collective Investment Trust

          

Goode

   AA/Aa2      23,774,952      —         152,574  

Columbia Fund Investment, Money Market

          

Columbia Cash Reserves, Capital Class

        42,321,515      —         —    
                          
      $ 1,270,302,708    $ (349,705 )   $ 12,288,400  
                          

 

13


Table of Contents

The Bank of America 401(k) Plan

Notes to Financial Statements

December 31, 2006 and 2005


5. Investment Contracts (Continued)

 

     2005  
  

Major

Credit

Rating

  

Investment
Contract

at Fair Value

   Wrap
Contract
Fair Value
    Adjustment
to Contract
Value
 

Guaranteed Investment Contracts

          

Allstate

   AA/Aa2    $ 19,514,325    $ —       $ 3,155  

Canada Life

   AA/Aa3      10,173,403      —         (104,497 )

Canada Life

   AA/Aa3      10,261,934      —         (138,739 )

Canada Life

   AA/Aa3      9,886,658      —         130,127  

Hartford Life Insurance Company

   AA-/Aa3      8,151,786      —         (109,862 )

Hartford Life Insurance Company

   AA-/Aa3      7,554,650      —         —    

Pruco Life

   AAA/Aaa      12,452,638      —         (114,343 )

Pruco Life

   AAA/Aaa      9,534,833      —         66,077  

Pacific Life Insurance Company

   AA/Aa3      22,009,199      —         337,197  

Principal Life Insurance Company

   AA/Aa2      22,106,853      —         304,008  

Security Life of Denver

   AA/Aa3      4,273,252      —         475  

GE Capital Assurance Company

   AA-/Aa3      6,345,552      —         851  

GE Life & Annuity Assurance Company

   AA-/Aa3      4,297,749      —         23,314  

John Hancock

   AA+/Aa2      7,553,661      —         1,171  

Fixed Maturity Synthetic Guaranteed Investment Contracts

          

Rabobank

   AAA/Aaa      70,509,773      (12,848 )     924,695  

Rabobank

   AAA/Aaa      21,746,973      (3,995 )     219,274  

UBS AG

   AAA/Aaa      173,942,538      (73,977 )     5,036,925  

Constant Duration Synthetic Guaranteed Investment Contracts

          

IXIS Financial Products

   AA+/Aa1      138,951,703      (112,902 )     (274,391 )

Rabobank

   AA+/Aa1      76,535,629      (12,804 )     2,034,402  

Transamerica

   AA+/Aa1      127,064,111      (20,846 )     (125,526 )

AIG Financial Products

   AA+/Aa1      182,870,917      (89,338 )     (23,632 )

Royal Bank of Canada

   AA+/Aa1      151,074,652      (49,825 )     709,074  
                          

Total Investment Contracts

        1,096,812,789      (376,535 )     8,899,755  

Collective Investment Trust

          

Goode

   AA/Aa2      22,628,221      —         229,519  

Columbia Fund Investment, Money Market

          

Columbia Cash Reserves, Capital Class

        45,513,208      —         —    
                          
      $ 1,164,954,218    $ (376,535 )   $ 9,129,274  
                          

 

14


Table of Contents

The Bank of America 401(k) Plan

Notes to Financial Statements

December 31, 2006 and 2005


5. Investment Contracts (Continued)

 

Reconciliation of adjustment from fair value to contract value:

 

     2006    2005

Beginning balance

   $ 9,129,274    $ —  

Increase of fair value to contract value

     3,159,126      9,129,274

Increase due to fully benefit responsive changes

     —        —  
             

Ending balance

   $ 12,288,400    $ 9,129,274
             

 

6. Net Appreciation in Fair Value of Investments

For the years ended December 31, 2006 and 2005, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in fair value by $916,117,512 and $57,472,342 respectively, as follows:

 

     2006     2005  

Bank of America Corporation Common Stock

   $ 578,463,175     $ (79,096,559 )

Bank of America Corporation Preferred Stock

     (54 )     —    

Common and preferred stock

     395,182       131,090  

Columbia Fund Investments:

    

Fixed Income

     (927,180 )     (2,657,442 )

Equity

     223,888,418       94,907,785  

Mutual funds

     113,146,866       43,305,434  

Collective Investment Trust

     1,116,456       1,011,647  

Corporate debt and asset-backed securities

     37,029       (64,987 )

Mortgage-backed securities

     (6,439 )     (10,385 )

U.S. government and government agency obligations

     (15,955 )     (31,858 )

Other investments

     20,014       (22,383 )
                

Net appreciation in fair value of investments

   $ 916,117,512     $ 57,472,342  
                

 

7. Plan Termination

Although it has not expressed any intention to do so, the Corporation has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions set forth in ERISA. In the event the Plan terminates, the total amounts credited to the accounts of each participant become fully vested and nonforfeitable.

 

15


Table of Contents

The Bank of America 401(k) Plan

Notes to Financial Statements

December 31, 2006 and 2005


 

8. Related Party Transactions

The Plan holds investments in various funds that are part of the Columbia Funds mutual fund family.

MCM and CMA are non-bank affiliates of the Corporation and provide advisory services to Columbia Funds. As advisors to and administrators of the funds, affiliates receive fees directly from the funds for providing services to the funds, including investment management services. Columbia Fund Distributors, Inc. administers and distributes Columbia Funds.

Investment units and shares of Columbia Funds are purchased at net asset value. The investments held at December 31, 2006 and 2005 were as follows:

 

     2006    2005

Columbia Fund – Money Market

     

Columbia Cash Reserves, Capital Class

   $ 98,297,792    $ 99,261,956

Columbia Cash Reserves, Trust Class

     4,596,096      5,056,749
             
     102,893,888      104,318,705
             

Columbia Fund Fixed Income

     

Columbia Total Return Bond Fund

     271,239      299,222

Columbia Short-Term Bond Fund

     551,657      632,621

Columbia Core Bond Fund

     130,904,548      120,048,712

Columbia Federal Securities Fund

     216,146      234,147

Columbia Strategic Income Fund

     14,370      14,322
             
     131,957,960      121,229,024
             

Columbia Fund – Equity

     

Columbia Mid Cap Index Fund

     415,960,050      370,250,584

Columbia Multi-Advisor International Equity Fund

     220,958,421      152,954,641

Columbia Large Cap Index Fund

     826,433,219      750,270,684

Columbia Small Cap Index Fund

     293,665,652      239,835,299

Columbia Large Cap Value Fund

     232,582,995      183,274,222

Columbia Marsico Focused Equities Fund

     202,251,812      173,258,551

Columbia Marsico Growth Fund

     736,091      14,156

Columbia Mid Cap Growth Fund

     16,948      15,276

Columbia Convertible Securities Fund

     48,741      51,012

LifeGoal Balanced Growth Portfolio

     249,884,974      218,012,694

LifeGoal Growth Portfolio

     192,859,156      146,204,073

LifeGoal Income and Growth Portfolio

     52,067,737      44,778,150
             
     2,687,465,796      2,278,919,342
             

Total Columbia Fund Family

   $ 2,922,317,644    $ 2,504,467,071
             

At December 31, 2006 and 2005, the Plan held investments in the Bank of America Corporation Common Stock valued at $4,133,569,603 and $3,943,802,661, respectively.

 

16


Table of Contents

The Bank of America 401(k) Plan

Notes to Financial Statements

December 31, 2006 and 2005


8. Related Party Transactions (Continued)

 

For the years ended December 31, 2006 and 2005, the Plan paid direct expenses to the Trustee totaling $187,018 and $278,695, respectively.

 

9. Reconciliation to Form 5500

The following is a reconciliation of net assets available for benefits according to the financial statements to Form 5500:

 

     2006     2005

Net assets available for benefits per the financial statements

   $ 9,834,489,971     $ 8,442,430,902

Benefit obligations payable

     (775,753 )     —  
              

Net assets available for benefits per Form 5500

   $ 9,833,714,218     $ 8,442,430,902
              

The following is a reconciliation of benefits paid to Plan participants according to the financial statements to Form 5500:

 

     2006    2005  

Benefits paid to plan participants per the financial statements

   $ 766,932,280    $ 761,638,819  

Add: Benefit obligations payable at end of year

     775,753      —    

Less: Benefit obligations payable at beginning of year

     —        (862,509 )
               

Benefits paid to plan participants per Form 5500

   $ 767,708,033    $ 760,776,310  
               

Benefit obligations payable and related benefits paid are recorded on Form 5500 for those claims that have been processed and approved for payment prior to December 31 but not yet paid as of that date. For financial statement purposes, such amounts are not recorded until paid.

 

10. Federal Income Tax Status

On March 5, 1998, the Plan Sponsor was informed by a letter from the Internal Revenue Service (IRS) that the Plan was designed in accordance with applicable sections of the IRC. Subsequent to this issuance of the determination letter, the Plan was amended. The Plan Sponsor has requested an updated determination letter.

 

17


Table of Contents

The Bank of America 401(k) Plan

Notes to Financial Statements

December 31, 2006 and 2005


10. Federal Income Tax Status (Continued)

 

Currently, the 1998 and 1999 Plan years are under audit by the IRS. The audit includes a review of voluntary transfers by participants of assets of the Plan to The Bank of America Pension Plan and whether such transfers were in accordance with applicable law. In December 2005, the Corporation received a Technical Advice Memorandum (TAM) from the National Office of the IRS that concluded that the amendments made to the Plan in 1998 to permit the transfers violated the anti-cutback rule of Section 411(d)(6) of the IRC. In November 2006, the Corporation received another TAM denying the Corporation’s request that the conclusion reached in the first TAM be applied prospectively only. The Corporation continues to participate in administrative proceedings with the IRS regarding issues raised in the audit.

Subject to resolution of the administrative proceeding noted above, the plan administrator believes the Plan is being operated in compliance with the applicable requirements of the IRC and, therefore, believes that the Plan is qualified and the related trust is tax exempt.

Under present federal income tax laws, a participating employee will not be subject to federal income taxes on the contributions by the employer, or on the interest, dividends or profits on the sale of investments received by the trustee, until the participating employee’s account is distributed.

 

11. Litigation

The Plan is the subject of litigation involving the voluntary transfers from the Plan to The Bank of America Pension Plan referenced in Note 10 above. The outcome of this litigation cannot be predicted at this time.

The Plan is the subject of litigation involving alleged market timing arrangements in certain Nations Funds mutual funds in which the Plan is invested. In December 2005 the Corporation and other named defendants in the litigation entered into a settlement that among other things, is contingent upon a minimum threshold amount being received by the Nations Funds shareholders and/or the Nations Funds mutual funds from a previously established regulatory settlement fund. The settlement is subject to court approval.

The Plan is the subject of litigation alleging certain ERISA violations related to fees and expenses related to (i) investments by the Plan, the Bank of America Pension Plan, and their respective predecessor plans in investment funds offered or managed by Corporation subsidiaries or affiliates and (ii) the use of Corporation subsidiaries or affiliates in other matters of plan administration and investment.

 

18


Table of Contents

The Bank of America 401(k) Plan

EIN 56-0906609 Plan No. 003

Schedule H, Line 4i - Schedule of Assets

December 31, 2006

 

( a )

  

( b )

Identity of Issue, Borrower, Lessor, or Similar Party

  

( c )

Description of Investment Including Maturity Date,

Rate of Interest, Collateral, Par, or Maturity Value

  

( e )

Current Value

   Common and Preferred Stock         

*

   Bank of America Corporation    Common Stock    77,422,169 shares    $ 4,133,569,603
               
   Total Bank of America Corporation Common Stock            4,133,569,603
               
   Abbott Labs    Common Stock    800 shares      38,968
   Agere Systems, Inc.    Common Stock    6 shares      115
   Alcatel-Lucent    Common Stock    49 shares      697
   Amerco    Preferred Stock    400 shares      10,108
   Ameren Corporation    Common Stock    400 shares      21,492
   American Electric Power, Inc.    Common Stock    400 shares      17,032
   Aquila, Inc.    Common Stock    750 shares      3,525
   AT&T Inc.    Common Stock    2,677 shares      95,703
   Automatic Data Processing, Inc.    Common Stock    400 shares      19,700
   Avaya, Inc.    Common Stock    208 shares      2,908
   BP PLC    Common Stock    4,286 shares      287,591
   Baker Hughes, Inc.    Common Stock    200 shares      14,932
   Caterpillar, Inc.    Common Stock    2,000 shares      122,660
   Champs Entertainment, Inc.    Common Stock    2,000 shares      13,900
   Chevron Corporation    Common Stock    300 shares      22,059
   China Direct, Inc.    Common Stock    2 shares      12
   Chiquita Brands International, Inc.    Common Stock    1,000 shares      15,970
   Citigroup, Inc.    Common Stock    6,500 shares      362,050
   Comcast Corporation    Common Stock    97 shares      4,106
   Conagra Foods, Inc.    Common Stock    500 shares      13,500
   ConocoPhillips    Common Stock    988 shares      71,087
   Conseco, Inc.    Common Stock    15 shares      300

* Investments with parties-in-interest as defined under ERISA.

Column (d) Cost was omitted as all investments are participant- directed.

 

19


Table of Contents

The Bank of America 401(k) Plan

EIN 56-0906609 Plan No. 003

Schedule H, Line 4i - Schedule of Assets

December 31, 2006

 

( a )

  

( b )

Identity of Issue, Borrower, Lessor, or Similar Party

  

( c )

Description of Investment Including Maturity Date,
Rate of Interest, Collateral, Par, or Maturity Value

   ( e )
Current
Value
   Corts Trust    Preferred Stock    800 shares    $ 21,104
   Countrywide    Preferred Stock    800 shares      20,120
   Covad Communications Group, Inc.    Common Stock    500 shares      690
   Diamond Offshore Drilling, Inc.    Common Stock    400 shares      31,976
   Dominion Res, Inc.    Common Stock    400 shares      33,536
   Duke Energy Corporation    Common Stock    200 shares      6,642
   Encana Corporation    Common Stock    300 shares      13,785
   Ericsson LM Tel Company    Common Stock    1,697 shares      68,270
   Exxon Mobil Corporation    Common Stock    3,600 shares      275,868
   FPL Group, Inc.    Common Stock    2,700 shares      146,934
   First BanCorp    Common Stock    5,000 shares      47,650
   General Electric Company    Common Stock    1,500 shares      55,815
   Great Atlantic & Pacific Tea, Inc.    Preferred Stock    800 shares      20,520
   Harken Energy Corporation    Common Stock    3,267 shares      1,666
   Headwaters, Inc.    Common Stock    400 shares      9,584
   Hewlett-Packard Company    Common Stock    316 shares      13,016
   Hospira, Inc.    Common Stock    80 shares      2,686
   International Business Machines    Common Stock    800 shares      77,720
   Johnson & Johnson    Common Stock    2,200 shares      145,244
   Keyspan Corporation    Common Stock    210 shares      8,648
   Lowes Companies, Inc.    Common Stock    1,000 shares      31,150
   Merck & Company, Inc.    Common Stock    800 shares      34,880
   Motorola, Inc.    Common Stock    3,570 shares      73,399
   Nokia Corporation    Common Stock    200 shares      4,064
   Novartis    Common Stock    200 shares      11,488
   Oracle Corporation    Common Stock    2,000 shares      34,280
   Penney JC Company, Inc.    Common Stock    500 shares      38,680
   Pepsico, Inc.    Common Stock    250 shares      15,638

* Investments with parties-in-interest as defined under ERISA.

Column (d) Cost was omitted as all investments are participant- directed.

 

20


Table of Contents

The Bank of America 401(k) Plan

EIN 56-0906609 Plan No. 003

Schedule H, Line 4i - Schedule of Assets

December 31, 2006

 

( a )

  

( b )

Identity of Issue, Borrower, Lessor, or Similar Party

  

( c )

Description of Investment Including Maturity Date,
Rate of Interest, Collateral, Par, or Maturity Value

  

( e )

Current Value

   Pfizer, Inc.    Common Stock    6,000 shares      $ 155,400
   Primus    Preferred Stock    1,000 shares        25,000
   Procter & Gamble Company    Common Stock    397 shares        25,515
   Pulte Homes, Inc.    Preferred Stock    400 shares        10,384
   Royal Dutch Shell Petroleum Company    Common Stock    1,000 shares        70,790
   St. Paul Travelers Company, Inc.    Common Stock    342 shares        18,362
   Saturns Tribune Company    Preferred Stock    800 shares        17,400
   Scana Corporation    Common Stock    631 shares        25,631
   Schering Plough Corporation    Common Stock    800 shares        18,912
   Ship Fin International    Common Stock    2,000 shares        47,520
   Southern Company    Common Stock    200 shares        7,372
   Taiwan Semiconductor Manufacturing Ltd.    Common Stock    6,729 shares        73,548
   Texas Instruments, Inc.    Common Stock    1,000 shares        28,800
   Time Warner, Inc.    Common Stock    2,000 shares        43,560
   TXU Corporation    Common Stock    3,800 shares        205,998
   United States Cellular Corporation    Preferred Stock    800 shares        20,688
   Wal Mart Stores, Inc.    Common Stock    4,000 shares        184,720
   Wyeth    Common Stock    1,600 shares        81,472
   Xcel Energy, Inc.    Common Stock    1,872 shares        43,167
                 
   Total Common and Preferred Stock              3,487,707
                 
   Investment Contracts           
   AIG Financial Products    Guaranteed Investment Contract # 443770;5.150%    $ 190,919,404    
   AIG Financial Products    Wrapper Contract         (91,505 )  
                   
  

Total AIG Financial Products

             190,827,899

* Investments with parties-in-interest as defined under ERISA.

Column (d) Cost was omitted as all investments are participant- directed.

 

21


Table of Contents

The Bank of America 401(k) Plan

EIN 56-0906609 Plan No. 003

Schedule H, Line 4i - Schedule of Assets

December 31, 2006

 

( a )

 

( b )

Identity of Issue, Borrower, Lessor, or Similar Party

  

( c )

Description of Investment Including Maturity Date,
Rate of Interest, Collateral, Par, or Maturity Value

  

( e )

Current Value

 

Canada Life

   Guaranteed Investment Contract # P46153; 3.900%      $ 10,016,785
 

Canada Life

   Guaranteed Investment Contract # P46116; 5.600%        7,182,994
 

Canada Life

   Guaranteed Investment Contract # P46120; 6.140%        6,749,899
 

Genworth Life

   Guaranteed Investment Contract # GS 3665 GELAC; 4.140%        4,499,455
 

Hartford Life Insurance Company

   Guaranteed Investment Contract # GA 10560; 6.150%        6,005,114
 

IXIS Financial Products, Inc.

   Guaranteed Investment Contract # WR 1046-01; 5.270%    $ 178,887,832    
 

IXIS Financial Products, Inc.

   Wrapper Contract      (86,905 )  
               
 

Total IXIS Financial Products Inc.

          178,800,927
 

IXIS Financial Products, Inc.

   Guaranteed Investment Contract # 546-25; 5.000%        10,087,669
 

Pacific Life Insurance Company

   Guaranteed Investment Contract # G 26772.01; 4.100%        22,922,731
 

Principal Life Insurance Company

   Guaranteed Investment Contract # GA 4-50332-1; 3.940%        23,172,235
 

Pruco Life

   Guaranteed Investment Contract # GA-10137-211; 5.590%        9,625,412
 

Pruco Life

   Guaranteed Investment Contract # GA-10137-212; 4.030%        9,987,827
 

Rabobank

   Guaranteed Investment Contract # BOA 070201; 4.590%      90,177,535    
 

Rabobank

   Wrapper Contract      (14,914 )  
               
 

Total Rabobank

          90,162,621
 

Rabobank

   Guaranteed Investment Contract # BOA 040301; 4.810%      90,776,853    
 

Rabobank

   Wrapper Contract      (13,118 )  
               
 

Total Rabobank

          90,763,735
 

Rabobank

   Guaranteed Investment Contract # BOA 040302; 4.770%      21,715,405    
 

Rabobank

   Wrapper Contract      (3,220 )  
               
 

Total Rabobank

          21,712,185
 

Royal Bank of Canada

   Guaranteed Investment Contract # NYSM-03BAC-0504; 5.040%      157,719,766    
 

Royal Bank of Canada

   Wrapper Contract      (52,272 )  
               
 

Total Royal Bank of Canada

          157,667,494

* Investments with parties-in-interest as defined under ERISA.

Column (d) Cost was omitted as all investments are participant- directed.

 

22


Table of Contents

The Bank of America 401(k) Plan

EIN 56-0906609 Plan No. 003

Schedule H, Line 4i - Schedule of Assets

December 31, 2006

 

( a )

  

( b )

Identity of Issue, Borrower, Lessor, or Similar Party

  

( c )

Description of Investment Including Maturity Date,
Rate of Interest, Collateral, Par, or Maturity Value

  

( e )

Current Value

  

State Street Bank

   Guaranteed Investment Contract # 106009; 5.440%       $ 44,668,338    
  

State Street Bank

   Wrapper Contract         (6,695 )  
                   
  

Total State Street Bank

           $ 44,661,643
  

Transamerica

  

Guaranteed Investment Contract # TDA76933TR; 5.150%

        132,588,012    
  

Transamerica

   Wrapper Contract         (21,896 )  
                   
  

Total Transamerica

             132,566,116
  

UBS AG

   Guaranteed Investment Contract # 2670; 4.110%         186,502,975    
  

UBS AG

   Wrapper Contract         (59,180 )  
                   
  

Total UBS AG

             186,443,795
                 
  

Total Investment Contracts

             1,203,856,536
                 
  

Collective Investment Trusts

          
  

Goode

   Stable Value Trust Fund    1,694,416 units        23,774,952
                 
  

Total Collective Investment Trusts

             23,774,952
                 
  

Columbia Fund Investments - Money Market

          

*

  

Columbia

   Cash Reserves, Capital Class    98,297,792 units        98,297,792

*

  

Columbia

   Cash Reserves, Trust Class    4,596,096 units        4,596,096
                 
  

Total Columbia Fund Investments - Money Market

             102,893,888
                 

* Investments with parties-in-interest as defined under ERISA.

Column (d) Cost was omitted as all investments are participant- directed.

 

23


Table of Contents

The Bank of America 401(k) Plan

EIN 56-0906609 Plan No. 003

Schedule H, Line 4i - Schedule of Assets

December 31, 2006

 

( a )

  

( b )

Identity of Issue, Borrower, Lessor, or Similar Party

  

( c )

Description of Investment Including Maturity Date,

Rate of Interest, Collateral, Par, or Maturity Value

  

( e )

Current Value

  

Columbia Fund Investments - Fixed Income

        

*

  

Columbia

   Core Bond Fund    12,408,014 units    $ 130,904,548

*

  

Columbia

   Federal Securities Fund    20,763 units      216,146

*

  

Columbia

   Short Term Bond Fund    56,349 units      551,657

*

  

Columbia

   Strategic Income Fund    2,419 units      14,370

*

  

Columbia

   Total Return Bond Fund    27,877 units      271,239
               
  

Total Columbia Fund Investments - Fixed Income

           131,957,960
               
  

Columbia Fund Investments - Equity

        

*

  

Columbia

   Convertible Securities Fund    2,988 units      48,741

*

  

Columbia

   Large Cap Index    30,128,809 units      826,433,219

*

  

Columbia

   Large Cap Value    15,341,886 units      232,582,994

*

  

Columbia

   LifeGoal Balanced Growth Portfolio    20,549,751 units      249,884,974

*

  

Columbia

   LifeGoal Growth Portfolio    13,337,424 units      192,859,156

*

  

Columbia

   LifeGoal Income & Growth Portfolio    4,798,870 units      52,067,737

*

  

Columbia

   Marsico Focused Equities Fund    9,057,403 units      202,251,812

*

  

Columbia

   Marsico Growth Fund    33,027 units      736,091

*

  

Columbia

   Mid Cap Growth Fund    674 units      16,948

*

  

Columbia

   Mid Cap Index Fund    34,433,779 units      415,960,050

*

  

Columbia

   Multi-Advisory International Equity Fund    12,691,466 units      220,958,421

*

  

Columbia

   Small Cap Index Fund    13,378,845 units      293,665,653
               
  

Total Columbia Fund Investments - Equity

           2,687,465,796
               

* Investments with parties-in-interest as defined under ERISA.

Column (d) Cost was omitted as all investments are participant- directed.

 

24


Table of Contents

The Bank of America 401(k) Plan

EIN 56-0906609 Plan No. 003

Schedule H, Line 4i - Schedule of Assets

December 31, 2006

 

          ( c )     

( a )

  

( b )

Identity of Issue, Borrower, Lessor, or Similar Party

  

Description of Investment Including Maturity Date,

Rate of Interest, Collateral, Par, or Maturity Value

  

( e )

Current Value

  

Mutual Funds

        
  

Aberdeen

   Asia-Pacific Income Fund    8,500 units    $ 52,871
  

Alliance Bernstein

   US Government Bond Fund    16,591 units      112,652
  

Allianz RCM

   Biotechnology Fund    2,876 units      72,191
  

Allianz RCM

   Global Technology Fund    8,451 units      350,820
  

American Century

   Select Fund    2,095 units      76,939
  

American Funds

   Growth Fund of America    5,725,014 units      188,123,966
  

American Funds

   Intermediate Bond Fund    11,199 units      150,285
  

Batterymarch

   US Small Cap Fund    3,902,047 units      43,468,803
  

DWS

   Short Term Bond Fund    4,951 units      48,912
  

Dodge & Cox

   Stock Fund    2,765,426 units      424,382,275

*

  

Fidelity

   Diversified International Fund    9,181,908 units      339,271,514

*

  

Fidelity

   Small Cap Independence Fund    1,823 units      38,377

*

  

Fidelity

   Disciplined Equity Fund    2,287 units      66,366

*

  

Fidelity

   Asset Manager    11,188 units      180,241

*

  

Fidelity

   Real Estate Investment Portfolio    5,888,441 units      214,162,593

*

  

Fidelity

   Equity Income II Fund    2,636 units      63,890

*

  

Fidelity

   Ginnie Mae Portfolio    17,897 units      192,752
  

Freehold

   Realty Trust    2,000 units      25,417
  

H & Q

   Healthcare Fund    3,310 units      54,522
  

Janus

      3,786 units      179,667
  

Matthews

   Asia-Pacific Fund    300 units      5,076
  

Matthews

   International Fund    200 units      4,742
  

MFS

   Charter Income Trust    1,755 units      15,023
  

MTB

   Group International Fund    679 units      8,663
  

Nicholas Fund

   Nicholas Fund    2,713 units      158,372
  

Pengrowth

   Energy Trust    2,000 units      34,420
  

Van Kampen

   US Mortgage Fund    5,245 units      69,966
  

Vanguard

   Energy Fund    923 units      59,629

* Investments with parties-in-interest as defined under ERISA.

Column (d) Cost was omitted as all investments are participant- directed.

 

25


Table of Contents

The Bank of America 401(k) Plan

EIN 56-0906609 Plan No. 003

Schedule H, Line 4i - Schedule of Assets

December 31, 2006

 

     ( b )    ( c )     

( a )

  

Identity of Issue, Borrower,

Lessor, or Similar Party

  

Description of Investment Including Maturity Date,

Rate of Interest, Collateral, Par, or Maturity Value

  

( e )

Current Value

  

Vanguard

   Wellington Fund    18,635 units      604,326
  

Vanguard

   Wellesley Income Fund    1,406 units    $ 30,657
  

Vanguard

   Windsor Fund    7,355 units      137,104
  

Vanguard

   Windsor II Fund    7,800 units      271,057
  

Vanguard

   GNMA Fund    60,913 units      621,918
  

Vanguard

   Intermediate Term Treasury Fund    7,379 units      79,400
  

Vanguard

   500 Index Fund    881 units      114,985
  

Vanguard

   Total Stock Market Index Fund - Investor    367 units      12,501
  

Vanguard

   Total Stock Market Index Fund - Institutional    4,603,180 units      156,968,440
  

Western Asset

   Core Bond Portfolio    5,407,830 units      61,324,791
  

Western Asset

   High Income Opportunity Fund    1,520 units      10,260
  

White Oak

   Growth Stock Fund    3,097 units      99,909
  

Zweig

   Total Return Fund    10,075 units      59,339
               
  

Total Mutual Funds

           1,431,765,631
               
  

Corporate Debt & Asset-Backed Securities

        
  

AT&T Broadband Corporation

   Dtd 11/18/02 9.455% Due 11/15/22    24,000 shares      31,079
  

Ford Motor Credit Company

   Dtd 10/25/01 7.250% Due 10/25/11    50,000 shares      48,964
  

General Electric Capital Corporation

   Dtd 03/23/06 6.000% Due 03/15/32    100,000 shares      96,971
  

General Electric Capital Corporation

   Dtd 08/26/04 5.500% Due 08/15/23    100,000 shares      93,059
  

General Motors Acceptance Corporation

   Dtd 03/05/02 7.400% Due 03/15/17    50,000 shares      49,622
  

General Motors Acceptance Corporation

   Dtd 08/12/03 7.250% Due 08/15/18    100,000 shares      96,908
  

Household Financial Corporation

   Dtd 05/06/04 5.650% Due 05/15/19    50,000 shares      47,189
  

Polaroid Corporation

   Dtd 02/17/99 Due 02/15/06 IN DFLT    50,000 shares      4,563
  

Prudential Financial

   Dtd 05/06/04 5.750% Due 05/15/19    50,000 shares      47,999
  

Weirton Steel Corporation

   Dtd 07/03/96 11.375% Due 7/01/04 IN DFLT    50,000 shares      4,999
               
  

Total Corporate Debt & Asset-Backed Securities

           521,353
               

* Investments with parties-in-interest as defined under ERISA.

Column (d) Cost was omitted as all investments are participant- directed.

 

26


Table of Contents

The Bank of America 401(k) Plan

EIN 56-0906609 Plan No. 003

Schedule H, Line 4i - Schedule of Assets

December 31, 2006

 

          ( c )     

( a )

  

( b )

Identity of Issue, Borrower, Lessor, or Similar Party

  

Description of Investment Including Maturity Date,

Rate of Interest, Collateral, Par, or Maturity Value

  

( e )

Current Value

  

Mortgage-Backed Securities

        
  

ABN Amro Mortgage Corporation

   Dtd 09/01/03 6.000% Due 10/25/33    79,000 shares    $ 77,154
  

Federal Home Loan Mortgage

   Dtd 10/01/04 6.000% Due 07/15/34    10,000 shares      9,999
  

Federal National Mortgage Association

   Dtd 10/01/01 6.000% Due 11/25/31    10,000 shares      10,102
  

Federal National Mortgage Association

   Dtd 11/01/01 6.000% Due 12/25/31    20,000 shares      20,051
  

GNMA

   Pool #030048 Dtd 03/01/79 9.000% Due 02/15/09    565 shares      583
  

GNMA

   Pool #033190 Dtd 09/01/79 9.500% Due 09/15/09    1,679 shares      1,741
  

GNMA

   Pool #105474 Dtd 11/01/83 12.500% Due 10/15/13    408 shares      452
  

GNMA

   Pool #124950 Dtd 05/01/85 9.000% Due 05/15/15    3,893 shares      4,151
  

GNMA

   Pool #141703 Dtd 10/01/85 11.500% Due 10/15/15    238 shares      266
  

GNMA

   Pool #158422 Dtd 05/01/86 9.500% Due 05/15/16    776 shares      840
  

GNMA

   Pool #158990 Dtd 07/01/86 9.000% Due 07/15/16    516 shares      552
  

GNMA

   Pool #166126 Dtd 07/01/86 9.500% Due 07/15/16    485 shares      525
  

GNMA

   Pool #180576 Dtd 03/01/87 8.000% Due 03/15/17    1,499 shares      1,580
  

GNMA

   Pool #194375 Dtd 03/01/87 9.000% Due 02/15/17    378 shares      405
  

GNMA

   Pool #197040 Dtd 03/01/87 8.000% Due 03/15/17    1,980 shares      2,087
  

GNMA

   Pool #266976 Dtd 12/01/88 10.000% Due 12/15/18    666 shares      736
  

GNMA

   Pool #320835 Dtd 04/01/92 7.500% Due 04/15/22    1,349 shares      1,404
  

GNMA

   Pool #321186 Dtd 07/01/92 8.000% Due 07/15/22    2,218 shares      2,352
  

GNMA

   Pool #322807 Dtd 02/01/92 8.000% Due 02/15/22    677 shares      718
  

GNMA

   Pool #330133 Dtd 08/01/92 7.500% Due 08/15/22    3,522 shares      3,673
  

GNMA

   Pool #334371 Dtd 11/01/92 7.000% Due 11/15/07    388 shares      389
  

GNMA

   Pool #341342 Dtd 12/01/92 8.000% Due 12/15/22    2,500 shares      2,651
  

GNMA

   Pool #342553 Dtd 03/01/93 7.500% Due 03/15/23    444 shares      463
  

GNMA

   Pool #411479 Dtd 11/01/95 7.500% Due 11/15/25    2,172 shares      2,269
  

GNMA

   Pool #471439 Dtd 10/01/01 6.500% Due 10/15/31    4,332 shares      4,452
  

GNMA

   Pool #559513 Dtd 04/01/01 6.500% Due 04/15/31    3,337 shares      3,430
  

GNMA

   Pool #595192 Dtd 11/01/02 5.000% Due 11/15/32    35,309 shares      34,390

* Investments with parties-in-interest as defined under ERISA.

Column (d) Cost was omitted as all investments are participant- directed.

 

27


Table of Contents

The Bank of America 401(k) Plan

EIN 56-0906609 Plan No. 003

Schedule H, Line 4i - Schedule of Assets

December 31, 2006

 

          ( c )     

( a )

  

( b )

Identity of Issue, Borrower, Lessor, or Similar Party

  

Description of Investment Including Maturity Date,

Rate of Interest, Collateral, Par, or Maturity Value

  

( e )

Current Value

  

GNMA

   Pool #604337 Dtd 05/01/03 5.500% Due 05/15/33    30,052 shares      29,943
  

GNMA

   Pool #604740 Dtd 11/01/03 5.000% Due 11/15/33    26,918 shares      26,212
  

GNMA

   Pool #604897 Dtd 12/01/03 5.000% Due 12/15/33    25,304 shares    $ 24,639
  

GNMA

   Pool #605098 Dtd 03/01/04 5.000% Due 03/15/34    73,939 shares      71,957
  

GNMA

   Pool #614160 Dtd 06/01/03 5.500% Due 06/15/33    15,688 shares      15,630
  

GNMA

   Pool #627930 Dtd 02/01/04 5.500% Due 02/15/34    21,752 shares      21,661
  

GNMA

   Pool #641277 Dtd 04/01/05 5.000% Due 04/15/35    35,358 shares      34,391
  

Master Asset Securitization Trust

   Dtd 04/01/03 5.500% Due 05/25/33    25,000 shares      23,710
               
  

Total Mortgage-Backed Securities

           435,558
               
  

U.S. Government and Government Agency Obligations

        
  

United States

   Treasury Bill Dtd 08/10/06 Due 02/08/07    12,000 shares      11,943
  

United States

   Treasury Bill Dtd 08/24/06 Due 02/22/07    20,000 shares      19,866
  

United States

   Treasury Bill Dtd 09/14/06 Due 03/15/07    30,000 shares      29,714
  

United States

   Treasury Bill Dtd 07/20/06 Due 01/18/07    45,000 shares      44,912
  

United States

   Treasury Bond Dtd 02/15/91 7.875% Due 02/15/21    100,000 shares      130,227
  

United States

   Treasury Bond Dtd 05/15/86 7.250% Due 05/15/16    10,000 shares      11,887
  

United States

   Treasury Note Dtd 03/15/05 4.000% Due 03/15/10    100,000 shares      97,902
  

United States

   Treasury Note Dtd 08/15/03 3.250% Due 08/15/08    30,000 shares      29,259
  

United States

   Treasury Note Dtd 08/15/03 4.250% Due 08/15/13    100,000 shares      97,492
  

United States

   Treasury Note Dtd 08/15/05 4.250% Due 08/15/15    100,000 shares      96,766
  

United States

   Treasury Note Dtd 08/15/97 6.125% Due 08/15/07    100,000 shares      100,633
  

United States

   Treasury Note Dtd 11/15/06 4.625% Due 11/15/16    100,000 shares      99,344
  

United States

   Treasury Note Dtd 11/17/03 3.375% Due 11/15/08    150,000 shares      146,157
  

United States

   Treasury Note Dtd 11/30/06 4.625% Due 11/30/08    120,000 shares      119,564
  

United States

   Treasury Note Dtd 02/15/02 4.875% Due 02/15/12    100,000 shares      100,914
  

United States

   Treasury Note Dtd 08/15/02 3.250% Due 08/15/07    150,000 shares      148,377

* Investments with parties-in-interest as defined under ERISA.

Column (d) Cost was omitted as all investments are participant- directed.

 

28


Table of Contents

The Bank of America 401(k) Plan

EIN 56-0906609 Plan No. 003

Schedule H, Line 4i - Schedule of Assets

December 31, 2006

 

( a )

  

( b )

Identity of Issue, Borrower, Lessor, or Similar Party

  

( c )

Description of Investment Including Maturity Date,
Rate of Interest, Collateral, Par, or Maturity Value

  

( e )

Current Value

   United States    Treasury Note Dtd 11/15/02 4.000% Due 11/15/12    100,000 shares    $ 96,551
   United States    Treasury Note Dtd 02/17/04 4.000% Due 02/15/14    100,000 shares      95,724
               
  

Total U.S. Government and Government Agency Obligations

           1,477,232
               
   Other Investments         

*

   Participant Loans    Interest rates range 4.000% to 11.500%      73,077,205
   Bank of Desoto    Certificate of Deposit      190,000
   Bank of Texas    Certificate of Deposit      279,164
   Beal Bank    Certificate of Deposit      495,000
   Century Bank    Certificate of Deposit      50,000
   Comerica Bank    Certificate of Deposit      100,000
   Compass Bank    Certificate of Deposit      430,000
   Conseco, Inc.    Warrant      44
   Entertainment Properties Trust    Real Estate Investment Trust      15,168
   Guaranty Federal Bank    Certificate of Deposit      199,000
   National Bank of Kansas City    Certificate of Deposit      57,000
   National City Bank    Certificate of Deposit      50,000
   New Plan Excel Realty Trust    Real Estate Investment Trust      10,992
   Public Storage, Inc.    Real Estate Investment Trust      62,400
   Reliastar Life Insurance    Single Premium Deferred Annuity      98,731
   Suburban Propane Partners LP    Limited Partnership      3,801
   Texas State Bank    Certificate of Deposit      85,000
   Transportation Alliance Bank    Certificate of Deposit      98,000
   USAA Federal Saving Bank    Certificate of Deposit      198,833
               
   Total Other Investments            75,500,338
               
   Total          $ 9,796,706,554
               

* Investments with parties-in-interest as defined under ERISA.

Column (d) Cost was omitted as all investments are participant- directed.

 

29


Table of Contents

Exhibit Index

 

Exhibit No.    
23.1   Consent of Morris, Davis & Chan LLP, Independent Registered Public Accounting Firm.