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

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

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)

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

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

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

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

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

Full-Year and Fourth-Quarter 2009 Business Highlights

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

Fourth-Quarter 2009 Financial Summary

Revenue and Expense

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

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

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

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

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

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

Credit Quality

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

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

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

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

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

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

(2) Nonperforming assets ratios are calculated as nonperforming
assets divided by outstanding loans, leases and foreclosed properties
at the end of the period.

(3) Allowance for loan and lease losses ratios are calculated as
allowance for loan and lease losses divided by loans and leases
outstanding at the end of the period.

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

Capital Management

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

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

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

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

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

Full-Year 2009 Financial Summary

Revenue and Expense

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

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

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

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

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

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

Credit Quality

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

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

Credit Quality

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

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

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

Capital Management

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

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

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

2009 Business Segment Results

Deposits

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

(1) Fully taxable-equivalent basis

(2) Balances averaged for period

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

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

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

Global Card Services

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

(1) Managed basis. Managed basis assumes that credit card loans
that have been securitized were not sold and presents earnings on
these loans in a manner similar to the way loans that have not been
sold (i.e., held loans) are presented. For more information and
detailed reconciliation, please refer to the data pages supplied with
this press release.

(2) Fully taxable-equivalent basis

(3) Represents provision for credit losses on held loans combined
with realized credit losses associated with the securitized credit
card loan portfolio

(4) Balances averaged for period

n/m = not meaningful

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

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

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

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

Home Loans and Insurance

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

(1) Fully taxable-equivalent basis

(2) Balances averaged for period

n/m = not meaningful

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

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

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

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

Global Banking

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

(1) Fully taxable-equivalent basis

(2) Balances averaged for period

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

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

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

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

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

Global Markets

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

(1) Fully taxable-equivalent basis

(2) Balances averaged for period

n/m = not meaningful

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

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

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

Global Wealth and Investment Management

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

(1) Fully taxable-equivalent basis

(2) Balances averaged for period

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

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

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

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

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

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

All Other

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

(1) Fully taxable-equivalent basis

(2) Numbers in parentheses represent a provision benefit

(3) Balances averaged for period

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

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

Note: Chief Executive Officer and President Brian T. Moynihan and
Chief Financial Officer Joe L. Price will discuss 2009 results in a
conference call at 9:30 a.m. EDT today. The presentation and
supporting materials can be accessed on the Bank of America Investor
Relations Web site at http://investor.bankofamerica.com. For a
listen-only connection to the conference call, dial 1.888.245.1801
(U.S.) or 1.785.424.1732 (international) and the conference ID:
79795.

Bank of America

Bank of America is one of the world's largest financial
institutions, serving individual consumers, small- and middle-market
businesses and large corporations with a full range of banking,
investing, asset management and other financial and risk management
products and services. The company provides unmatched convenience in
the United States, serving approximately 59 million consumer and
small business relationships with 6,000 retail banking offices, more
than 18,000 ATMs and award-winning online banking with nearly 30
million active users. Bank of America is among the world's leading
wealth management companies and is a global leader in corporate and
investment banking and trading across a broad range of asset classes,
serving corporations, governments, institutions and individuals
around the world. Bank of America offers industry-leading support to
more than 4 million small business owners through a suite of
innovative, easy-to-use online products and services. The company
serves clients in more than 150 countries. Bank of America
Corporation stock is a component of the Dow Jones Industrial Average
and is listed on the New York Stock Exchange.

Forward-Looking Statements

Bank of America and its management may make certain statements
that constitute "forward-looking statements" within the meaning of
the Private Securities Litigation reform Act of 1995. These
statements are not historical facts, but instead represent Bank of
America's current expectations, plans or forecasts of its integration
of the Merrill Lynch and Countrywide acquisitions and related cost
savings, future results and revenues, credit losses, credit reserves
and charge-offs, nonperforming asset levels, level of preferred
dividends, service charges, the closing of the First Republic Bank
and Columbia Management sales, effective tax rate, noninterest
expense, impact of changes in fair value of Merrill Lynch structured
notes, impact of SFAS 166 and 167 on capital and reserves, mortgage
production and other similar matters. These statements are not
guarantees of future results or performance and involve certain
risks, uncertainties and assumptions that are difficult to predict
and are often beyond Bank of America's control. Actual outcomes and
results may differ materially from those expressed in, or implied by,
any of these forward-looking statements.

You should not place undue reliance on any forward-looking
statement and should consider all of the following uncertainties and
risks, as well as those more fully discussed under Item 1A. "Risk
Factors" of Bank of America's 2008 Annual Report on Form 10-K, third
quarter 2009 Quarterly Report on Form 10-Q, and in any of Bank of
America's subsequent SEC filings: negative economic conditions that
adversely affect the general economy, housing prices, the job market,
consumer confidence and spending habits; Bank of America's
modification policies and related results; the level and volatility
of the capital markets, interest rates, currency values and other
market indices; changes in consumer, investor and counterparty
confidence in, and the related impact on, financial markets and
institutions; Bank of America's credit ratings and the credit ratings
of its securitizations; estimates of fair value of certain Bank of
America assets and liabilities; legislative and regulatory actions in
the United States (including the impact of Regulation E, the Card Act
of 2009 and related regulations) and internationally; the impact of
litigation and regulatory investigations, including costs, expenses,
settlements and judgments; various monetary and fiscal policies and
regulations of the U.S. and non-U.S. governments; changes in
accounting standards, rules and interpretations (including SFAS 166
and 167) and the impact on Bank of America's financial statements;
increased globalization of the financial services industry and
competition with other U.S. and international financial institutions;
Bank of America's ability to attract new employees and retain and
motivate existing employees; mergers and acquisitions and their
integration into Bank of America; Bank of America's reputation; and
decisions to downsize, sell or close units or otherwise change the
business mix of Bank of America. Forward-looking statements speak
only as of the date they are made, and Bank of America undertakes no
obligation to update any forward-looking statement to reflect the
impact of circumstances or events that arise after the date the
forward-looking statement was made.

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

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

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

www.bankofamerica.com

Bank of America Corporation and Subsidiaries
Selected Financial Data
(Dollars in millions, except per share data; shares in thousands)
Summary Income
Statement Three Months Ended Year Ended
December 31 December 31
2009 2008 2009 2008
---- ---- ---- ----
Net interest income $11,559 $13,106 $47,109 $45,360
Noninterest income 13,517 2,574 72,534 27,422
Total revenue, net
of interest expense 25,076 15,680 119,643 72,782
Provision for credit
losses 10,110 8,535 48,570 26,825
Noninterest expense,
before merger and
restructuring charges 15,852 10,641 63,992 40,594
Merger and
restructuring charges 533 306 2,721 935
Income (loss) before
income taxes (1,419) (3,802) 4,360 4,428
Income tax expense
(benefit) (1,225) (2,013) (1,916) 420
Net income (loss) $(194) $(1,789) $6,276 $4,008
Preferred stock
dividends and
accretion (1) 5,002 603 8,480 1,452
Net income (loss)
applicable to
common
shareholders $(5,196) $(2,392) $(2,204) $2,556
Earnings (loss) per
common share $(0.60) $(0.48) $(0.29) $0.54
Diluted earnings (loss)
per common share (0.60) (0.48) (0.29) 0.54
Summary Average
Balance Sheet Three Months Ended Year Ended
December 31 December 31
2009 2008 2009 2008
---- ---- ---- ----
Total loans and
leases $905,913 $941,563 $948,805 $910,878
Debt securities 279,231 280,942 271,048 250,551
Total earning assets 1,807,898 1,616,673 1,830,193 1,562,729
Total assets 2,421,531 1,948,854 2,437,517 1,843,979
Total deposits 995,160 892,141 980,966 831,144
Shareholders' equity 250,599 176,566 244,645 164,831
Common shareholders'
equity 197,123 142,535 182,288 141,638
Performance Ratios Three Months Ended Year Ended
December 31 December 31
2009 2008 2009 2008
Return on average
assets n/m n/m 0.26% 0.22%
Return on average
common shareholders'
equity n/m n/m n/m 1.80

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

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

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

(3) Tangible equity ratio represents shareholders' equity less
goodwill and intangible assets (excluding mortgage servicing
rights), net of related deferred tax liabilities divided by total
assets less goodwill and intangible assets (excluding mortgage
servicing rights), net of related deferred tax liabilities.

(4) Tangible common equity ratio represents common shareholders'
equity plus Common Equivalent Securities less goodwill and
intangible assets (excluding mortgage servicing rights), net of
related deferred tax liabilities divided by total assets less
goodwill and intangible assets (excluding mortgage servicing rights),
net of related deferred tax liabilities.

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

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

n/m = not meaningful

n/a = not applicable

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

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

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

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

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

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

Reconciliation to GAAP financial measures

The Corporation evaluates its business based upon ratios that
utilize tangible equity which is a non-GAAP measure. The tangible
equity ratio represents shareholders' equity less goodwill and
intangible assets (excluding mortgage servicing rights), ne