Bank of America Earns US$3.2 Billion in Second Quarter (7)

    
    Bank of America Corporation and Subsidiaries    
    Business Segment Results                        
    ------------------------                        
     (Dollars in millions)                          
                                                
    For the six months ended June 30                              
                                                
                                          Global Card          Home Loans &
                        Deposits        Services (1, 2)         Insurance
                     --------------     --------------         -------------
                     2009      2008     2009      2008         2009     2008
                     ----      ----     ----      ----         ----     ----
    Total revenue,
     net of
     interest
     expense (3)   $6,907    $8,488  $14,846   $15,430       $9,684   $2,584
    Provision for
     credit losses    187       195   16,182     8,711        6,098    3,846
    Noninterest
     expense        5,008     4,516    4,053     4,572        5,479    1,470
    Net income
     (loss)         1,106     2,363   (3,494)    1,401       (1,223)  (1,721)
                                                                          
    Efficiency
     ratio (3)      72.50%    53.21%   27.30%    29.63%       56.58%   56.91%
    Return on
     average equity  9.47     19.31      n/m      7.28          n/m      n/m
    Average - total
     loans and
     leases           n/m       n/m $224,391  $236,738     $129,110  $89,218
    Average -
     total
     deposits    $397,454  $338,358      n/m       n/m          n/m      n/m
                                                                          
                                                                          
                                                            Global Wealth &
                                                               Investment  
                    Global Banking      Global Markets         Management
                    --------------      --------------        --------------
                    2009      2008      2009      2008        2009      2008
                    ----      ----      ----      ----        ----      ----
    Total revenue,
     net of
     interest
     expense (3)  $13,298    $8,354  $11,351      $537       $8,559   $4,237
    Provision for
     credit losses  4,432       926       50       (39)         492      362
    Noninterest
     expense        4,747     3,494    5,615     1,680        6,594    2,555
    Net income
     (loss)         2,659     2,456    3,812      (691)         951      825
                                                                
    Efficiency
     ratio (3)      35.70%    41.82%   49.46%      n/m        77.04%   60.31%
    Return on
     average equity  9.17     10.27    26.38       n/m        10.70    14.21
    Average -
     total loans
     and leases  $327,074  $310,603      n/m       n/m     $106,117  $86,609
    Average -
     total
     deposits     197,981   165,232      n/m       n/m      231,853  152,808
                                                    
            
                    All Other (1, 4)                    
                    ----------------                    
                     2009      2008                    
                     ----      ----                    
    Total revenue,
     net of
     interest
     expense (3)   $4,521   $(1,533)                    
    Provision for
     credit losses   (686)   (2,161)                    
    Noninterest
     expense        2,526       635                    
    Net income
     (loss)         3,660       (13)                    
                                                    
    Average -
     total loans
     and leases  $163,770  $125,695                    
    Average -
     total
     deposits     108,757   105,109                    
                                                    
    ----------------------------------------------------
     (1) Global Card Services is presented on a managed basis with a
         corresponding offset recorded in All Other.
     (2) Provision for credit losses represents provision for credit losses
         on held loans combined with realized credit losses associated with
         the securitized loan portfolio.
     (3) Fully taxable-equivalent (FTE) basis. FTE basis is a performance
         measure used by management in operating the business that management
         believes provides investors with a more accurate picture of the
         interest margin for comparative purposes.
     (4) Provision for credit losses represents provision for credit losses
         in All Other combined with the Global Card Services securitization
         offset.
     n/m = not meaningful

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

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

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

    
    Bank of America Corporation and Subsidiaries
    Supplemental Financial Data                                            
    ---------------------------                                            
     (Dollars in millions)                                                  
                                                                        
    Fully taxable-                          Three Months       Six Months  
     equivalent basis data                 Ended June 30     Ended June 30  
    ----------------------               ----------------  ----------------
                                            2009     2008     2009     2008
                                            ----     ----     ----     ----
    Net interest income                  $11,942  $10,937  $24,761  $21,228
    Total revenue, net of                                                  
     interest expense                     33,086   20,726   69,166   38,097
    Net interest yield                      2.64%    2.92%    2.67%    2.83%
    Efficiency ratio                       51.44    46.60    49.19    49.67
                                                                        
                                                                        
                                               June 30                      
                                            -------------
    Other Data                              2009     2008                  
    ----------                              ----     ----
                  
    Full-time equivalent employees       282,408  206,587                  
    Number of banking centers - domestic   6,109    6,131                  
    Number of branded ATMs - domestic     18,426   18,531                  

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

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

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

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

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

(CONTINUA)