Bank of America Earns US$3.2 Billion in First Quarter

Charlotte, April 16, 2010 (ots/PRNewswire) - Bank of America Corporation
today reported first-quarter 2010 net income of US$3.2 billion
compared with a net loss of US$194 million in the fourth quarter and
net income of US$4.2 billion a year earlier. After preferred
dividends, the company earned US$0.28 per diluted share in the first
quarter, up from a loss of US$0.60 per share in the fourth quarter
and earnings of US$0.44 per share in the first quarter of 2009.

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

Two factors primarily drove results in the first quarter:

- Provision for credit losses fell by US$3.6 billion from the year-ago
period, reflecting an improvement in credit quality.
- Strong capital markets activity, including record sales and trading
driven by industry-leading corporate and investment banking positions,
helped drive results for Global Banking and Markets.

"With each day that passes, the 2010 story appears to be one of
continuing credit recovery, and our results reflect a gradually
improving economy," said Chief Executive Officer and President Brian
T. Moynihan. "Our customers - individuals, companies, and
institutional investors - increasingly see the value of our
integrated capabilities. We also are seeing ample indications that
those integrated capabilities hold promise for long-term shareholder
value."

First-Quarter 2010 Business Highlights

- Bank of America Merrill Lynch ranked No. 1 in both global high-yield
debt and leveraged loans and No. 2 in overall global and U.S. net
investment banking revenues with a 7 percent market share, according to
Dealogic first-quarter 2010 league tables.
- Average retail deposits during the quarter increased US$15.2 billion,
or 2 percent, from a year earlier, paced by strong organic growth in
Merrill Lynch Global Wealth Management as momentum in the affluent
customer base continued.
- Consumer referrals and sales to Merrill Lynch Global Wealth Management
clients accelerated in the first quarter. Approximately 60,000 lending
and deposit products were sold to Merrill Lynch clients. Referrals
between Global Wealth and Investment Management and the company's
commercial and corporate businesses increased 56 percent compared with
the fourth quarter of 2009.
- During the quarter, Bank of America extended US$150 billion in credit,
according to preliminary data. Credit extensions included US$70 billion
in first mortgages, US$56 billion in commercial non-real estate, US$10
billion in commercial real estate, US$3 billion in domestic consumer
and small business card, US$2 billion in home equity products and US$9
billion in other consumer credit. Commercial credit extensions include
a significant number of credit renewals.
- Bank of America funded US$69.5 billion in first mortgages, helping more
than 320,000 people either purchase homes or refinance existing
mortgages. This funding included US$17.4 billion in mortgages made to
nearly 115,000 low- and moderate-income borrowers. Approximately 37
percent of first mortgages were for home purchases.

Initiatives to Help Customers

- Bank of America introduced several initiatives during the quarter to
help customers. The company will eliminate debit point-of-sale
transactions that would result in an overdraft if a customer does not
have enough funds in their account.
- The company introduced an earned principal forgiveness approach to
modifying certain types of mortgages that are severely underwater to
expand the company's existing aggressive homeowner retention programs.
- Bank of America was the first to extend credit card assistance programs
to small businesses.
- Since the start of 2008, Bank of America and previously Countrywide
have provided home ownership retention opportunities to customers for
approximately 819,000 home loan modification transactions. This includes
569,000 loan modifications and approximately 251,000 consumers who were
in trial-period modifications under the government's Making Home
Affordable program at March 31, 2010. During the quarter, 77,000 loan
modifications were completed with total unpaid principal balances of
US$17.8 billion, including 33,000 customers who converted from
trial-period to permanent modifications under the government's Making
Home Affordable program.
- Bank of America Home Loans expanded its default management staff by
nearly 7 percent to more than 16,000 during the quarter to help
customers experiencing difficulty with their home loans.
- Bank of America issued clarity statements on a number of consumer
products to help customers better understand the products they use.
- Bank of America helped more than 200,000 Global Card Services account
holders by reducing their interest rates and providing more affordable
payment terms during the quarter.

"We will continue to support our customers through these and
other initiatives aimed at helping restore their financial health,"
Moynihan said. "We want to ensure quality relationships with our
customers and earn their trust and future business. This will benefit
not just our customers, but our company and our shareholders."

First-Quarter 2010 Financial Summary

Revenue and Expense

Revenue net of interest expense on a fully taxable-equivalent
(FTE)(1) basis declined 11 percent to US$32.3 billion from US$36.1
billion a year ago. Revenue declines were driven by the absence of
year-earlier credit-related gains on Merrill Lynch structured notes,
the sale of an equity investment and lower mortgage banking volume
and income.

Revenue was up 27 percent from the fourth quarter of 2009.

Net interest income on an FTE basis was US$14.1 billion, compared
with US$12.8 billion a year earlier. On a managed FTE basis, net
interest income declined from US$15.6 billion a year earlier as loan
demand decreased and charge-offs reduced loan balances. The increase
in reported net interest income was primarily due to the adoption of
new consolidation accounting guidance effective Jan. 1, which moved
net assets of approximately US$100 billion onto the balance sheet.
The change, while having no material impact on net income, primarily
affected net interest income, card income and the provision for loan
and lease losses. The net interest yield widened 23 basis points to
2.93 percent, but average loans declined by 2 percent, reflecting
economic conditions and lower demand.

Noninterest income declined 22 percent to US$18.2 billion from
US$23.3 billion a year ago. Lower mortgage banking income and
decreases in both card income and equity investment income drove the
decline. Mortgage banking income declined, driven by less favorable
mortgage servicing rights hedging results and lower production volume
and margins. Card income declined due to the recent adoption of new
accounting guidance and the CARD Act, while equity investment income
was impacted by the absence of the gain a year earlier on the sale of
China Construction Bank (CCB) shares. However, noninterest income was
up 35 percent from the fourth quarter of 2009, reflecting record
sales and trading revenue in the current quarter.

Noninterest expense increased 5 percent to US$17.8 billion from
US$17.0 billion a year earlier as personnel costs and other general
operating expenses rose. Pretax merger and restructuring charges
declined to US$521 million from US$765 million a year earlier.

The efficiency ratio on an FTE basis was 55.05 percent, compared
with 47.12 percent a year earlier.

(1) FTE basis is a non-GAAP measure. For a reconciliation to
GAAP, refer to page 20 of this press release

(All Amounts in US Dollars unless otherwise noted)

Credit Quality
(Dollars in millions) Q1 2010 Q4 2009 Q1 2009
--------------------- ------- ------- -------
Provision for credit losses $9,805 $10,110 $13,380
--------------------------- ------ ------- -------
Net charge-offs(1) 10,797 8,421 6,942
----------------- ------ ----- -----
Net charge-off ratio(1,2) 4.44% 3.71% 2.85%
------------------------ ---- ---- ----
Total managed net losses(3) - $11,347 $9,124
-------------------------- --- ------- ------
Total managed net loss
ratio(2,3) - 4.54% 3.40%
-------------------------- --- ---- ----
At 3/31/10 At 12/31/09 At 3/31/09
---------- ----------- ----------
Nonperforming loans, leases and
foreclosed properties $35,925 $35,747 $25,632
------------------------------- ------- ------- -------
Nonperforming loans, leases and
foreclosed properties ratio(4) 3.69% 3.98% 2.64%
----------------------------------- ---- ---- ----
Allowance for loan and lease
losses $46,835 $37,200 $29,048
---------------------------- ------- ------- -------
Allowance for loan and lease
losses ratio(5) 4.82% 4.16% 3.00%
-------------------------------- ---- ---- ----
(1)Current period reflects the adoption of new accounting guidance
resulting in the addition of approximately $103 billion in loans to
the balance sheet on January 1, 2010.
(2) 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.
(3) Prior periods are shown on a managed basis, which prior to the
adoption of new accounting guidance on January 1, 2010 included
losses on securitized credit card and other loans which are reported
in net charge-offs post adoption.
(4) Nonperforming loans, leases and foreclosed properties ratios are
calculated as nonperforming loans, leases and foreclosed properties
divided by outstanding loans, leases and foreclosed properties at
the end of the period.
(5) 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.

Credit quality continued to improve during the quarter, with net
losses declining in most consumer portfolios. Credit costs, however,
remain high amid relatively weak global economic conditions.

Credit quality across most commercial portfolios showed signs of
improvement with criticized and nonperforming loans decreasing from
the prior quarter. Net charge-offs in the commercial portfolios
declined across a broad range of borrowers and industries.

Net charge-offs were $2.4 billion higher than the fourth quarter
of 2009, driven mainly by the adoption of new accounting guidance
that resulted in securitized credit card loans and other loans coming
back onto the company's balance sheet. Also contributing to the
increase were charge-offs on certain modified collateral-dependent
consumer real estate loans. Excluding these factors, net charge-offs
would have been $1.3 billion lower. Net charge-offs in the first
quarter of $10.8 billion, or 4.44 percent, which reflect the new
accounting guidance, are comparable with managed net losses of $11.3
billion, or 4.54 percent, in the prior quarter. Nonperforming loans,
leases and foreclosed properties were $35.9 billion, compared with
$35.7 billion at December 31, 2009.

The provision for credit losses was $9.8 billion, $305 million
lower than the fourth quarter of 2009 and $3.6 billion lower than the
same period a year earlier. Excluding the $10.8 billion increase to
the reserve for credit losses associated with adopting the new
accounting guidance, which did not initially impact provision,
reserves were reduced $992 million during the quarter. This compares
with a $1.7 billion addition to the reserve for credit losses in the
fourth quarter and $6.4 billion a year earlier. The reduction from
the fourth quarter of 2009 was primarily due to improved
delinquencies and lower bankruptcies in consumer and small business
products in Global Card Services and the stabilization of commercial
portfolios. These were partially offset by higher reserve additions
in the consumer real estate portfolios amid continued stress in the
housing market, including reserve additions for purchased
credit-impaired consumer portfolios obtained through acquisitions.

Capital and Liquidity Management
At 3/31/10 At 12/31/09 At 3/31/09
---------- ----------- ----------
Total shareholders' equity $229,823 $231,444 $239,549
-------------------------- -------- -------- --------
(in millions)
-------------
Tier 1 common ratio 7.60% 7.81% 4.49%
------------------- ---- ---- ----
Tier 1 capital ratio 10.23 10.40 10.09
-------------------- ----- ----- -----
Total capital ratio 14.47 14.66 14.03
------------------- ----- ----- -----
Tangible common equity ratio(1) 5.24 5.57 3.13
------------------------------ ---- ---- ----
Tangible book value per share $11.70 $11.94 $10.88
----------------------------- ------ ------ ------
(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 20 of this
press release.

Capital ratios were negatively impacted from the fourth quarter
of 2009 primarily due to the adoption of new accounting guidance on
consolidation. The company's liquidity position strengthened during
the quarter as customers continued to reduce debt. Cash and
equivalents rose more than $20 billion. The company's total global
excess liquidity sources rose by approximately $50 billion to more
than $260 billion. The company's time to required funding stands at
24 months.

During the quarter, a cash dividend of $0.01 per common share was
paid and the company reported $348 million in preferred dividends.
Period-end common shares issued and outstanding were 10.03 billion
for the first quarter of 2010, 8.65 billion for the fourth quarter of
2009 and 6.40 billion for the first quarter of 2009. The increase in
outstanding shares was driven primarily by the conversion of common
equivalent shares into common stock in the first quarter of 2010.

2010 Business Segment Results

Deposits
(Dollars in millions) Q1 2010 Q1 2009
--------------------- ------- -------
Total revenue, net of interest
expense, FTE basis $3,632 $3,372
------------------------------ ------ ------
Provision for credit losses 37 88
--------------------------- --- ---
Noninterest expense 2,505 2,323
------------------- ----- -----
Net income 683 600
---------- --- ---
Efficiency ratio, FTE basis 68.97% 68.89%
--------------------------- ----- -----
Return on average equity 11.49 10.39
------------------------ ----- -----
Average deposits $414,167 $376,287
---------------- -------- --------
At 3/31/10 At 3/31/09
---------- ----------
Period-end deposits $417,539 $390,247
------------------- -------- --------

Deposits net income rose 14 percent as the 8 percent increase in
revenue was partially offset by increased noninterest expense.
Revenue increased mainly due to growth in deposits as well as
improved spreads. Noninterest income remained relatively flat.
Expenses rose as a higher percentage of the retail distribution costs
shifted to Deposits from the other consumer businesses.

Average deposits rose 10 percent, or $37.9 billion, from a year
ago due to the transfer of $39.7 billion in certain client deposits
from Global Wealth and Investment Management and $15.2 billion of
organic growth. Organic growth was driven by the continuing need of
customers to manage their liquidity as illustrated by growth in
higher spread deposits. The increase was partially offset by the
expected decline in higher-yielding Countrywide deposits.

Global Card Services
(Dollars in millions) Q1 2010 Q1 2009
Total revenue, net of interest
expense, FTE basis(1) $6,804 $7,448
Provision for credit losses(2) 3,535 8,221
Noninterest expense 1,751 2,039
Net income (loss) 952 (1,752)
Efficiency ratio,FTE basis 25.74% 27.38%
Return on average equity 8.94 n/m
Average loans(1) $189,307 $224,013
At 3/31/10 At 3/31/09
Period-end loans(1) $181,763 $217,532
(1) Current period shown on a GAAP basis in accordance with new
accounting guidance. Prior period shown on a managed basis. Managed
basis assumed that credit card loans that were 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, refer to page 21
of this press release.
(2) Current period shown on a GAAP basis in accordance with new
accounting guidance. Prior period results shown on a managed basis
and represented provision for credit losses on held loans combined
with realized credit losses associated with the securitized credit
card loan portfolio. For more information and detailed
reconciliation, refer to page 21 of this press release.
n/m = not meaningful

Global Card Services reported net income of $952 million as
credit costs declined, reflecting continued improvement in the U.S.
economy. Net revenue declined 9 percent to $6.8 billion due to lower
net interest income from the decline in average loans and lower fee
income resulting from the implementation of the CARD Act.

Provision for credit losses decreased $4.7 billion to $3.5
billion from a year ago as lower delinquencies and lower expected
losses from the improved economic outlook drove reserve reductions
during the quarter.

Expenses decreased as a higher percentage of the retail
distribution costs shifted to Deposits from Global Card Services.

Home Loans and Insurance
(Dollars in millions) Q1 2010 Q1 2009
--------------------- ------- -------
Total revenue, net of interest
expense, FTE basis $3,624 $5,235
------------------------------ ------ ------
Provision for credit losses 3,600 3,372
--------------------------- ----- -----
Noninterest expense 3,328 2,655
------------------- ----- -----
Net income (loss) (2,071) (494)
----------------- ------ ----
Efficiency ratio, FTE basis 91.81% 50.72%
--------------------------- ----- -----
Average loans $133,745 $125,544
------------- -------- --------
At 3/31/10 At 3/31/09
---------- ----------
Period-end loans $132,428 $131,332
---------------- -------- --------

The net loss in Home Loans and Insurance widened to $2.1 billion
as higher credit costs continued to negatively impact results. Net
revenue decreased 31 percent due to lower mortgage banking income,
driven by less favorable mortgage servicing rights results and lower
production volume and margins resulting from a decrease in refinance
activity.

The provision for credit losses rose to $3.6 billion, driven by
higher reserve additions amid continued stress in the housing market.
Also driving the increase was the impact of certain modified loans
where carrying value is based on the underlying collateral value and
higher home equity net charge-offs related to loans that were
consolidated in the quarter as a result of new accounting guidance.
These increases were partially offset by lower reserve additions on
the Countrywide home equity purchased credit-impaired portfolio,
compared with the year-ago period.

Noninterest expense rose to $3.3 billion mostly due to expenses
related to increased litigation costs, default management staff,
vendor expenses and loss mitigation efforts.

Effective January 1, 2010, Bank of America realigned the Global
Banking and Global Markets business segments. The segments are now
referred to as Global Commercial Banking and Global Banking and
Markets. Prior period amounts have been reclassified to conform to
current period presentation.

Global Commercial Banking
(Dollars in millions) Q1 2010 Q1 2009
--------------------- ------- -------
Total revenue, net of interest
expense, FTE basis $3,007 $2,683
------------------------------ ------ ------
Provision for credit losses 916 1,765
--------------------------- --- -----
Noninterest expense 954 961
------------------- --- ---
Net income (loss) 713 (30)
----------------- --- ---
Efficiency ratio, FTE basis 31.71% 35.77%
--------------------------- ----- -----
Return on average equity 6.82 n/m
------------------------ ---- ---
Average loans and leases $211,683 $235,386
------------------------ -------- --------
Average deposits 143,357 118,489
---------------- ------- -------
n/m = not meaningful

Global Commercial Banking returned to profitability, recording
net income of $713 million, driven by lower credit costs and
increased revenues.

Net revenue rose as improved loan spreads on new, renewed and
amended facilities drove an increase in net interest income. The
increase was partially offset by reduced loan balances. Net revenue
also benefited from strong deposit growth, as clients remain very
liquid, partially offset by narrower spreads on deposits and lower
treasury services transaction volumes that reflect current economic
conditions.

The provision for credit losses decreased to $916 million on
lower credit costs in the retail dealer-related portfolio and
stabilization across most commercial portfolios.

Average loan balances decreased $23.7 billion as loan demand
remained weak. Average deposit balances continued to grow, increasing
$24.9 billion as clients sought to increase liquidity.

Note: Global Commercial Banking clients include middle-market and
business banking companies, commercial real estate firms and
governments and are generally defined as companies with sales up to
$2 billion. Lending products and services include commercial loans
and commitment facilities, real estate lending, asset-based lending
and indirect consumer loans. Treasury solutions include treasury
management, foreign exchange and short-term investing options.

Global Banking and Markets
(Dollars in millions) Q1 2010 Q1 2009
--------------------- ------- -------
Total revenue, net of interest
expense, FTE basis $9,776 $8,981
------------------------------ ------ ------
Provision for credit losses 256 347
--------------------------- --- ---
Noninterest expense 4,386 4,724
------------------- ----- -----
Net income 3,218 2,509
---------- ----- -----
Efficiency ratio, FTE basis 44.86% 52.60%
--------------------------- ----- -----
Return on average equity 23.64 22.05
------------------------ ----- -----
Total average assets $782,415 $836,939
-------------------- -------- --------

Global Banking and Markets net income increased $709 million to
$3.2 billion, driven by record performance in sales and trading.
Revenue increased by $795 million as market conditions improved and
the impact of writedowns on legacy assets decreased from a year
earlier. Noninterest expense declined $338 million due to merger
efficiencies and the shift in compensation that delivers a greater
portion of incentive pay over time.

Fixed Income, Currency and Commodities revenue of $5.8 billion
was primarily driven by sales and trading revenues. Revenue rose on
improved market conditions, increased liquidity, tighter credit
spreads and the reduced impact of writedowns on legacy assets.

Equities revenue rose to $1.7 billion primarily driven by sales
and trading revenues of $1.5 billion. Higher revenue was driven by
effective market positioning and related equity derivative trading
gains.

Corporate and Investment Banking revenue of $2.3 billion included
corporate banking revenue of $1.6 billion. Corporate banking revenue
was flat year over year, as higher credit related revenue was offset
by lower treasury services revenue. Investment banking revenue, which
rose 18 percent to $1.2 billion, was shared between the subsegments
of Global Banking and Markets. The increase reflected the strength of
the Bank of America Merrill Lynch platform and was driven by debt and
equity issuances.

Note: Global Banking and Markets includes the results of the
Fixed Income, Currency and Commodities, Equities, and Corporate and
Investment Banking businesses and the core banking products to large
corporate clients that are defined as having sales in excess of $2
billion, as well as the results related to the Merchant Services
joint venture.

Global Wealth and Investment Management
(Dollars in millions) Q1 2010 Q1 2009
Total revenue, net of interest $4,409 $4,346
expense, FTE basis
Provision for credit losses 242 254
Noninterest expense 3,374 3,322
Net income 497 479
Efficiency ratio, FTE basis 76.52% 76.45%
Return on average equity 8.83 11.10
Average loans $99,063 $110,535
Average deposits 224,514 250,913
(in billions) At 3/31/10 At 3/31/09
Assets under management $750.7 $697.3
Total net client assets(1) $2,183.2 $1,987.4
(1)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 $497
million, driven mainly by higher investment and brokerage activity.
Net revenue increased to $4.4 billion on the absence of support for
certain cash funds and higher investment and brokerage service
income, partially offset by lower net interest income.

Merrill Lynch Global Wealth Management net revenue declined $202
million to $3.1 billion from a year earlier, mainly due to the impact
of the migration of certain deposits and loan balances to the
Deposits and Home Loans and Insurance businesses and lower residual
net interest income. These impacts to net interest income were
partially offset by improvements in investment and brokerage income
due to higher valuations in the equity markets and increased
transactional activity.

U.S. Trust, Bank of America Private Wealth Management net revenue
of $688 million was flat as higher valuations in the equity markets
and increased deposit spreads were offset by net outflows and lower
residual net interest income.

Columbia Management net revenue increased $127 million to $277
million, driven by the absence of support provided to certain cash
funds and the impact of higher valuations in the equity markets.
These were partially offset by a reduction in revenues, driven by net
outflows in the cash complex.

Global Wealth and Investment Management also includes the results
related to the Retirement and Philanthropic Services business and the
economic ownership interest related to the company's investment in
BlackRock, Inc.

All Other

All Other reported a net loss of $810 million due to lower net
revenue, which was further impacted by increases in provision for
credit losses and noninterest expense. Effective January 1, 2010, due
to the recent adoption of new consolidation accounting guidance, the
securitization offsets for net interest income, card income and the
provision for credit losses are no longer recorded as part of All
Other. Results were also impacted by other-than-temporary impairment
charges primarily related to non-agency collateralized mortgage
obligations. Provision for credit losses was driven by the impact of
new accounting guidance and higher credit costs in the discontinued
real estate purchased credit-impaired portfolio, partially offset by
lower reserve builds related to the residential mortgage portfolio.
Noninterest expense increased due to higher personnel, general
operating and other expenses.

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. In prior periods, All Other also included 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. In
addition, 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
Interim Chief Financial Officer Neil Cotty will discuss first-quarter
2010 results in a conference call at 9:30 a.m. ET 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 1.785.424.1733
(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 58 million consumer and
small business relationships with more than 5,900 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 approximately 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 future
results and revenues, including net interest income, credit trends,
including credit losses, credit reserves, charge-offs and
nonperforming asset levels, consumer and commercial service charges,
including the impact of changes in the company's overdraft policy
liquidity, regulatory and GAAP capital levels, revenue impact of the
Credit Card Accountability Responsibility and Disclosure Act of 2009
(CARD Act), the closing of the First Republic Bank and Columbia
Management sales, the impact of higher interest rates on the balance
sheet 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 2009 Annual Report on Form 10-K and in
any of Bank of America's subsequent SEC filings: negative economic
conditions that adversely affect the general economy, housing prices,
the job market, consumer confidence and spending habits; 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 the
Electronic Fund Transfer Act, 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 the new accounting guidance on
consolidation) 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
other non-bank, non-thrift affiliates.

http://www.bankofamerica.com

Investors May Contact:
Kevin Stitt, Bank of America, +1-704-386-5667
Lee McEntire, Bank of America, +1-704-388-6780
Reporters May Contact:
Scott Silvestri, Bank of America, +1-980-388-9921
scott.silvestri@bankofamerica.com
Bank of America Corporation and Subsidiaries
Selected Financial Data
-----------------------
(Dollars in millions, except per share data; shares in thousands)
Three Months Ended March
Summary Income Statement 31
------------------------ -------------------------
2010 2009
---- ----
Net interest income $13,749 $12,497
Noninterest income 18,220 23,261
------ ------
Total revenue, net of interest expense 31,969 35,758
Provision for credit losses 9,805 13,380
Noninterest expense, before merger and
restructuring charges 17,254 16,237
Merger and restructuring charges 521 765
--- ---
Income before income taxes 4,389 5,376
Income tax expense 1,207 1,129
Net income $3,182 $4,247
====== ======
Preferred stock dividends and
accretion (1) 348 1,433
Net income applicable to common
shareholders $2,834 $2,814
====== ======
Earnings per common share $0.28 $0.44
Diluted earnings per common share 0.28 0.44
Three Months Ended March
Summary Average Balance Sheet 31
----------------------------- -------------------------
2010 2009
---- ----
Total loans and leases $991,615 $994,121
Debt securities 311,136 286,249
Total earning assets 1,933,060 1,912,483
Total assets 2,509,760 2,519,134
Total deposits 981,015 964,081
Shareholders' equity 229,891 228,766
Common shareholders' equity 200,380 160,739
Three Months Ended March
Performance Ratios 31
------------------ -------------------------
2010 2009
---- ----
Return on average assets 0.51% 0.68%
Return on average common shareholders'
equity 5.73 7.10
Three Months Ended March
Credit Quality 31
-------------- -------------------------
2010 2009
---- ----
Total net charge-offs $10,797 $6,942
Annualized net charge-offs as a % of
average loans and leases outstanding
(2) 4.44% 2.85%
Provision for credit losses $9,805 $13,380
Total consumer credit card managed net
losses n/a 3,794
Total consumer credit card managed net
losses as a % of average managed
credit card receivables n/a 8.62%
March 31
-------------------------
2010 2009
---- ----
Total nonperforming loans, leases and
foreclosed properties $35,925 $25,632
Nonperforming loans, leases and
foreclosed properties as a % of total
loans, leases and foreclosed
properties (2) 3.69% 2.64%
Allowance for loan and lease losses $46,835 $29,048
Allowance for loan and lease losses as
a % of total loans and leases
outstanding (2) 4.82% 3.00%
Capital Management March 31
------------------ -------------------------
2010 2009
---- ----
Risk-based capital:
Tier 1 common equity ratio 7.60% 4.49%
Tier 1 capital ratio 10.23 10.09
Total capital ratio 14.47 14.03
Tier 1 leverage ratio 6.46 7.07
Tangible equity ratio (3) 6.05 6.42
Tangible common equity ratio (4) 5.24 3.13
Period-end common shares issued and
outstanding 10,032,001 6,400,950
Three Months Ended March
31
-------------------------
2010 2009
---- ----
Shares issued (5) 1,381,757 1,383,514
Average common shares issued and
outstanding 9,177,468 6,370,815
Average diluted common shares issued
and outstanding 10,005,254 6,393,407
Dividends paid per common share $0.01 $0.01
Summary End of Period Balance Sheet March 31
----------------------------------- -------------------------
2010 2009
---- ----
Total loans and leases $976,042 $977,008
Total debt securities 316,360 262,638
Total earning assets 1,818,432 1,714,460
Total assets 2,333,200 2,321,963
Total deposits 976,102 953,508
Total shareholders' equity 229,823 239,549
Common shareholders' equity 211,859 166,272
Book value per share of common stock
(6) $21.12 $25.98
Tangible book value per share of
common stock (6) 11.70 10.88
(1) Fourth quarter 2009 includes $4.0 billion of accelerated
accretion from redemption of preferred stock issued to the U.S.
Treasury.
(2) Ratios do not include loans measured at fair value under the fair
value option at and for the three months ended March 31, 2010 and
2009.
(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 any 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 any 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 shares.
n/m = not meaningful
n/a = not applicable
Certain prior period amounts have been reclassified to conform to
current period presentation.

Bank of America Corporation and Subsidiaries
Business Segment Results
------------------------
(Dollars in millions)
For the three months ended March 31
Global Card
Deposits Services (1, 2)
------------------- ---------------------
2010 2009 2010 2009
Total revenue, net
of interest expense
(3) $3,632 $3,372 $6,804 $7,448
Provision for credit
losses 37 88 3,535 8,221
Noninterest expense 2,505 2,323 1,751 2,039
Net income (loss) 683 600 952 (1,752)
Efficiency ratio (3) 68.97% 68.89% 25.74% 27.38%
Return on average
equity 11.49 10.39 8.94 n/m
Average -total
loans and leases n/m n/m 189307 224013
Average -total
deposits $414,167 $376,287 n/m n/m
Home Loans &
Insurance
---------------------
2010 2009
Total revenue, net of interest
expense (3) $3,624 $5,235
Provision for credit losses 3,600 3,372
Noninterest expense 3,328 2,655
Net income (loss) (2,071) (494)
Efficiency ratio (3) 91.81% 50.72%
Return on average equity n/m n/m
Average -total loans and
leases 133745 125544
Average - total deposits n/m n/m
Global Commercial Global Banking &
Banking Markets
------- -------
2010 2009 2010 2009
---- ---- ---- ----
Total revenue, net
of interest expense
(3) $3,007 $2,683 $9,776 $8,981
Provision for credit
losses 916 1,765 256 347
Noninterest expense 954 961 4,386 4,724
Net income (loss) 713 (30) 3,218 2,509
Efficiency ratio (3) 31.71% 35.77% 44.86% 52.6%
Return on average
equity 6.82 n/m 23.64 22.05
Average -total
loans and leases $211,683 $235,386 $101,185 $123,061
Average -total
deposits 143,357 118,489 104,126 104,029
Global Wealth &
Investment Management
-----------
2010 2009
---- ----
Total revenue, net of interest
expense (3) $4,409 $4,346
Provision for credit losses 242 254
Noninterest expense 3,374 3,322
Net income (loss) 497 479
Efficiency ratio (3) 76.52% 76.45%
Return on average equity 8.83 11.10
Average -total loans and
leases $99,063 $110,535
Average - total deposits 224,514 250,913
All Other (1, 4)
----------------
2010 2009
---- ----
Total revenue, net
of interest expense
(3) $1,038 $4,015
Provision for credit
losses 1,219 (667)
Noninterest expense 1,477 978
Net income (loss) (810) 2,935
Average -total
loans and leases $256,126 $174,730
Average -total
deposits 70,417 91,674
(1) Global Card Services is presented in accordance with new
accounting guidance on consolidation of VIEs and transfers of
financial assets. Prior periods are presented on a managed basis.
(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.

Bank of America Corporation and Subsidiaries
Supplemental Financial Data
---------------------------
(Dollars in millions)
Fully taxable-equivalent basis Three Months Ended March
data (1) 31
------------------------------ --------------------------
2010 2009
---- ----
Net interest income $14,070 $12,819
Total revenue, net of interest
expense 32,290 36,080
Net interest yield 2.93% 2.70%
Efficiency ratio 55.05 47.12
Other Data March 31
---------- -------------------------
2010 2009
---- ----
Full-time equivalent employees 283,914 286,625
Number of banking centers -
domestic 5,939 6,145
Number of branded ATMs -
domestic 18,135 18,532
(1) FTE basis is a non-GAAP measure. 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. (See Reconciliation to
GAAP Financial Measures on page 4).
Certain prior period amounts have been reclassified to conform to
current period presentation.

Bank of America Corporation and Subsidiaries
Reconciliation to GAAP Financial Measures
(Dollars in millions, shares in thousands)
The Corporation evaluates its business based upon a FTE basis which
is a non-GAAP measure. Total revenue, net of interest expense,
includes net interest income on a FTE basis and noninterest income.
The adjustment of net interest income to a FTE basis results in a
corresponding increase in income tax expense. The Corporation also
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), 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. The tangible common equity ratio
represents common shareholders' equity plus any 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.
Tangible book value per share of common stock represents ending
common shareholders' equity plus any Common Equivalent Securities
less goodwill and intangible assets (excluding mortgage servicing
rights), net of related ending common shareholders' equity plus any
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
shares. These measures are used to evaluate the Corporation's use
of equity (i.e., capital). We believe the use of these non-GAAP
measures provides additional any Common Equivalent Securities less
goodwill and intangible assets (excluding mortgage servicing
rights), net of related deferred tax liabilities divided by total
assets less clarity in assessing the results of the Corporation.
Other companies may define or calculate supplemental financial data
differently. See the tables below for corresponding reconciliations
to GAAP financial measures at March 31, 2010, December 31, 2009 and
March 31, 2009. We believe the use of these non-GAAP measures
provides additional clarity in assessing the results of the
Corporation.
First Fourth First
Quarter Quarter Quarter
2010 2009 2009
---- ---- ----
Reconciliation of net interest
income to net interest income
FTE basis
------------------------------
Net interest income $13,749 $11,559 $12,497
Fully taxable-equivalent
adjustment 321 337 322
---
Net interest income fully
taxable-equivalent basis $14,070 $11,896 $12,819
======= ======= =======
Reconciliation of total revenue,
net of interest expense to total
revenue, net of interest expense
FTE basis
---------------------------------
Total revenue, net of interest
expense $31,969 $25,076 $35,758
Fully taxable-equivalent
adjustment 321 337 322
Net interest income fully
taxable-equivalent basis $32,290 $25,413 $36,080
======= ======= =======
Reconciliation of income (loss)
before income taxes to pretax,
pre-provision income FTE basis
-------------------------------
Income (loss) before income taxes $4,389 $(1,419) $5,376
Provision for credit losses 9,805 10,110 13,380
Fully taxable-equivalent
adjustment 321 337 322
Pretax, pre-provision income
fully taxable-equivalent basis $14,515 $9,028 $19,078
======= ====== =======
Reconciliation of income tax
expense (benefit) to income tax
expense (benefit) FTE basis
--------------------------------
Income tax expense (benefit) $1,207 $(1,225) $1,129
Fully taxable-equivalent
adjustment