Bank of America Earns $15 Billion, or $3.30 Per Share, in 2007

CHARLOTTE, N.C., Jan. 22 /PRNewswire-FirstCall/ -- Bank of America Corporation today reported full-year 2007 net income declined 29 percent to $14.98 billion from $21.13 billion a year earlier. Diluted earnings per share fell 28 percent to $3.30 from $4.59 in 2006.

In the fourth quarter of 2007 net income was $268 million, or $0.05 per diluted share, compared with $5.26 billion, or $1.16 a share, a year earlier. The quarter included results from LaSalle Bank, which Bank of America purchased on October 1.

"Our fourth quarter results were severely impacted by ongoing dislocations in capital markets and the slowing economy," said Kenneth D. Lewis, chairman and chief executive officer. "Even given that environment, we certainly are not pleased with our performance. However, we are cautiously optimistic about 2008, though we believe economic growth will be anemic at best in the first half.

"While we are intensely focused on managing through the current period, the diversity and strength of our company is allowing us to continue to invest in our businesses to drive future profit growth. The addition of U.S. Trust and LaSalle Bank should add to earnings this year and we believe that innovative products such as No Fee Mortgage PLUS, Keep the Change(TM), our unequalled product suite for small businesses as well as our integrated approach to serving larger business clients will continue to attract new customers."

Here are the primary drivers of reduced fourth quarter earnings from a year ago:

     - Trading account losses of $5.44 billion, compared with profits of $460
       million a year earlier, were driven by writedowns of collateralized
       debt obligations (CDOs) and weaker trading results.

     - Provision expense increased $1.74 billion, largely due to a $1.33
       billion addition to the reserve for credit losses.

    Fourth Quarter Impact of Capital Markets on Financial Results
     - CDO-related writedowns totaled $5.28 billion, reflecting the impaired
       value of the underlying assets based on expected credit losses, the
       lack of demand in the marketplace and the impact of credit rating
       agency downgrades of the securities. The writedowns reduced trading
       profits by about $4.50 billion and other income by about $750 million.

     - The company incurred about $400 million in losses to support certain
       cash funds and also had subsequent writedowns of about $400 million
       related to securities originally purchased from the funds at fair
       value.

     - Equity investment income fell $750 million due to fewer opportunities
       for gains in the current markets.


    2007 Business Highlights
     - In July, Bank of America completed the acquisition of U.S. Trust,
       creating U.S. Trust, Bank of America Private Wealth Management, within
       Global Wealth and Investment Management, to serve wealthy and ultra-
       wealthy clients.

     - Bank of America completed the purchase of LaSalle Bank on October 1,
       addressing a key geographic gap in its franchise and expanding its
       presence in the Chicago region and in Michigan. Integration of the two
       companies is proceeding as planned.

     - Total retail sales increased 9 percent to 49 million products,
       including strong growth in checking and savings products, first
       mortgage and online banking activations.

     - Year-end retail deposits increased nearly $48 billion, or 10 percent,
       on higher account balances, new account growth and acquisitions. Debit
       card purchase volume increased 12 percent from the addition of new
       accounts and higher usage.

     - First mortgage originations of more than $104 billion rose 22 percent,
       helped by the success of No Fee Mortgage PLUS, which accounted for 16
       percent of the company's first mortgage production in the fourth
       quarter.

     - Total sales to small businesses with less than $2.5 million in annual
       sales rose 26 percent, or 668,000 units, due to increases in sales of
       online banking and deposit products.

     - Business Lending, within Global Corporate and Investment Banking,
       reported a 31 percent, or $70.45 billion, increase in total loans at
       year end. About $44 billion was related to the acquisition of LaSalle
       with the rest mainly coming from organic growth.

     - Premier Banking and Investments, within Global Wealth and Investment
       Management, had a 23 percent increase in fee-based assets amid
       favorable market conditions as client balances rose and the number of
       relationships increased.

     - Total assets under management (AUM) in Global Wealth and Investment
       Management increased to more than $643 billion including the impact of
       the U.S. Trust purchase and the sale of Marsico Capital Management. On
       a 1-year and 3-year AUM-weighted basis, 68 percent and 93 percent,
       respectively, of the Columbia and Excelsior equity funds were in the
       top 2 performance quartiles compared with their peer group. (1)


    2007 Business Accomplishments
     - The introduction of the $0 Online Equity Trades initiative resulted in
       nearly 55,000 net new self-directed accounts.

     - During the fourth quarter of 2007 the company introduced Mobile
       Banking, recording more than 600,000 subscribers who can access their
       accounts via mobile phone or handheld device.

     - Keep the Change(TM), Bank of America's savings program that combines
       debit cards and deposit products, had about 3 million enrollments
       during the year.

     - Global Wealth and Investment Management was named among the top 5
       wealth managers in the U.S. by Barron's in 2007.

    (1) Results shown are defined by Global Wealth and Investment Management's
        calculation of the percentage of assets under management in the top
        two quartiles of categories based on Morningstar as of December 31,
        2007.  The category percentile rank was calculated by ranking the one
        and three year net returns of share classes within the categories. The
        assets of the number of funds within the top 2 quartile results were
        added and then divided by Columbia Management's total equity fund
        assets under management. Past performance is no guarantee of future
        results. The share class earning the ranking may have limited
        eligibility and may not be available to all investors.


    Fourth Quarter 2007 Financial Summary

Revenue and Expense

Revenue net of interest expense on a fully taxable-equivalent basis declined 29 percent to $13.32 billion from $18.84 billion in the fourth quarter a year earlier.

Net interest income on a fully taxable-equivalent basis rose 10 percent to $9.81 billion from $8.96 billion in the fourth quarter of 2006. The increase was mainly due to the addition of LaSalle, consumer and commercial loan growth, a higher contribution from market-based net interest income and a one- time benefit related to the restructuring of the company's leasing business. The increase was partially offset by the impact of rate fluctuations. The net interest yield narrowed 14 basis points to 2.61 percent.

Noninterest income declined 65 percent to $3.51 billion from $9.89 billion. The decrease was driven by significant trading account losses, lower equity investment income, and losses related to the support of certain cash funds and subsequent writedowns related to securities originally purchased from the funds at fair value. The decline was offset in part by the $1.50 billion gain on the sale of Marsico.

Noninterest expense rose 13 percent to $10.28 billion from $9.09 billion a year earlier as a result of higher personnel-related expenses, marketing costs and the previously announced Visa settlement. Pretax merger and restructuring charges related to acquisitions were $140 million compared with $244 million a year earlier.

Credit Quality

Credit quality indicators deteriorated from favorable levels experienced in 2006. Weakness in the housing and financial markets resulted in rising credit risk in some portfolios, most notably in home equity, homebuilders and small business. In addition, seasoning in recent home equity and small business vintages contributed to higher delinquencies and net losses.

Credit costs rose in the fourth quarter compared with the third quarter of 2007 and the fourth quarter of 2006 driven by additions to reserves and higher charge-offs in home equity because of weakness in the housing markets as well as continued growth and seasoning of the consumer portfolios. The increase from the fourth quarter of 2006 also was impacted by seasoning and deterioration in the small business portfolio and the absence in 2007 of commercial reserve releases experienced in 2006.

     - Provision for credit losses was $3.31 billion, up from $2.03 billion in
       the third quarter of 2007, and $1.57 billion in the fourth quarter of
       2006.

     - Net charge-offs were $1.99 billion, or 0.91 percent, of total average
       loans and leases compared with $1.57 billion, or 0.80 percent, in the
       third quarter of 2007 and $1.42 billion, or 0.82 percent, in the fourth
       quarter of 2006.

     - Total managed net losses were $3.31 billion, or 1.34 percent, of total
       average managed loans and leases compared with $2.84 billion, or 1.27
       percent, in the third quarter of 2007 and $2.45 billion, or 1.23
       percent, in the fourth quarter of 2006.

     - Nonperforming assets were $5.95 billion, or 0.68 percent of total
       loans, leases and foreclosed properties, at December 31, 2007. LaSalle
       contributed $1.21 billion to the year-end levels. Nonperforming assets
       were $3.37 billion, or 0.43 percent, at September 30, 2007 and $1.86
       billion, or 0.26 percent, at December 31, 2006.

     - The allowance for loan and lease losses was $11.59 billion, or 1.33
       percent of loans and leases measured at historical cost, at December
       31, 2007. That compared with $9.54 billion, or 1.21 percent, at
       September 30, 2007 and $9.02 billion, or 1.28 percent, at December 31,
       2006, which excluded LaSalle.

Capital Management

Total shareholders' equity was $146.80 billion at December 31. Period-end assets were $1.72 trillion. The Tier 1 capital ratio was 6.87 percent, down from 8.22 percent at September 30, 2007 and 8.64 percent a year ago due to the impact of the $21 billion cash purchase of LaSalle and lower net income in the second half of 2007.

During the quarter, Bank of America paid a cash dividend of $0.64 per share. The company also issued about 4 million common shares related to employee stock options and ownership plans and repurchased nearly 3 million common shares. Period-end common shares issued and outstanding were 4.44 billion for the fourth and third quarters of 2007 and 4.46 billion for the fourth quarter of 2006.

Full-Year 2007 Financial Summary

Revenue

Revenue on a fully taxable-equivalent basis declined 8 percent to $68.07 billion from $73.80 billion a year earlier.

Net interest income on a fully taxable-equivalent basis increased to $36.18 billion from $35.82 billion in 2006. The increase was mainly due to a higher contribution from market-based net interest income, consumer and commercial loan growth and the addition of LaSalle. The increase was partially offset by the impact of rate fluctuations. The net interest yield declined 22 basis points to 2.60 percent reflecting ongoing spread compression.

Noninterest income fell 16 percent to $31.89 billion from $37.99 billion in 2006. The results were reduced primarily by CDO-related writedowns, driving trading account losses of $5.13 billion and losses related to the support of certain cash funds. The decline was offset in part by the Marsico gain and improvements in equity investment income of $875 million, investment and brokerage services income of $691 million, service charges of $684 million and gains on sales of debt securities of $623 million.

Efficiency

The efficiency ratio on a fully taxable-equivalent basis for 2007 was 54.37 percent (53.77 percent excluding merger and restructuring charges). Noninterest expense increased 4 percent to $37.01 billion from $35.60 billion a year ago mainly due to the addition of U.S. Trust and LaSalle and costs of business initiatives.

Credit Quality

Provision expense increased $3.38 billion to $8.39 billion in 2007 partly because of higher net charge-offs and the absence of 2006 commercial reserve releases. The company added reserves in the home equity and homebuilder loan portfolios on continued weakness in the housing markets. Reserves also were added for small business portfolio seasoning and deterioration, as well as growth in the consumer portfolios. The increases were partially offset by the release of reserves from the sale of the Argentina portfolio in the first quarter of 2007.

Net charge-offs totaled $6.48 billion, or 0.84 percent of average loans and leases, compared with $4.54 billion, or 0.70 percent in 2006. The increase was primarily driven by seasoning of the consumer portfolio, seasoning and deterioration in the small business and home equity portfolios as well as lower commercial recoveries.

Capital Management

For 2007, Bank of America paid $10.70 billion in cash dividends to common shareholders. The company also issued more than 53 million common shares, primarily related to employee stock options and ownership plans, and repurchased nearly 74 million common shares for $3.79 billion.

    2007 Business Segment Results

    Global Consumer and Small Business Banking(1)

    (Dollars in millions)                           YTD 2007       YTD 2006
    Total managed revenue net of interest expense(2) $47,682        $44,926

    Provision for credit losses                       12,929          8,534
    Noninterest expense                               20,060         18,375

    Net income                                         9,430         11,378

    Efficiency ratio                                  42.07%         40.90%
    Return on average equity                           14.94          18.11

    Managed loans and leases(3)                     $327,810       $288,131
    Deposits(3)                                      328,918        332,242

                                                 At 12/31/07    At 12/31/06
    Period ending deposits                          $344,850       $329,195

    (1) Managed basis.  Managed basis assumes that 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) Balances averaged for period

Managed net revenue rose 6 percent as higher service charges, debit card, mortgage banking and credit card income helped generate a 13 percent increase in noninterest income.

Net income declined 17 percent from a year ago, as credit costs rose and expenses increased 9 percent mainly due to increases in technology, overhead and personnel expenses.

Provision for credit losses increased $4.40 billion, or 51 percent, to $12.93 billion in 2007 compared with 2006. Net losses rose $3.19 billion to $10.82 billion in 2007 reflecting portfolio growth and housing market weakness. Reserves were added for deterioration in the home equity portfolio, reflecting weakness in the housing market, seasoning and deterioration of the small business portfolio and growth in the businesses.

     - Deposits net revenue increased 6 percent to $17.58 billion and net
       income increased by 7 percent to $5.23 billion as service charges and
       debit card income increased.

     - Card Services managed net revenue grew 4 percent to $25.53 billion due
       to growth in cash advance fees and interchange income while net income
       of $3.71 billion was down 35 percent as credit costs rose.

     - Consumer Real Estate had $3.68 billion in net revenue, a 26 percent
       increase, as mortgage banking income rose. Net income declined 48
       percent to $371 million on higher credit costs.

Fourth quarter net revenue for Global Consumer and Small Business Banking increased 7 percent to $12.51 billion, reflecting higher service charges and mortgage banking income and the addition of LaSalle. Net income declined 28 percent to $1.87 billion compared with a year earlier as the provision for credit losses rose 55 percent and expenses increased 15 percent mainly due to higher personnel and overhead costs and the addition of LaSalle.

    Global Corporate and Investment Banking

    (Dollars in millions)                           YTD 2007       YTD 2006
    Total revenue net of interest expense(1)         $13,417        $21,161

    Provision for credit losses                          652              9
    Noninterest expense                               11,925         11,578

    Net income                                           538          6,032

    Efficiency ratio                                  88.88%         54.71%
    Return on average equity                            1.19          14.33

    Loans and leases(2)                             $274,015       $232,623
    Trading-related assets(2)                        362,193        336,860
    Deposits(2)                                      220,724        194,972

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

Net revenue declined 37 percent and net income fell 91 percent on CDO- related writedowns and weaker trading results.

The provision for credit losses increased $643 million compared with a year ago. The increase was driven by the absence of 2006 reserve releases, higher net charge-offs and additions to reserves related to weakness in the homebuilder loan portfolio. Net charge-offs increased $258 million to $504 million in 2007 as retail automotive and other dealer-related portfolio losses rose due to growth, seasoning and deterioration and commercial recoveries declined.

     - Business Lending net revenue increased 10 percent, of which 5 percent
       came from LaSalle, to $6.17 billion due to portfolio growth, partially
       offset by spread compression.  Net income fell 6 percent to $2.12
       billion as credit costs rose. Average loans and leases increased 14
       percent to nearly $249 billion.

     - Capital Markets and Advisory Services had net revenue of $303 million,
       including more than $5 billion in trading account losses. The business
       had a net loss of $3.36 billion compared with net income of $1.68
       billion a year earlier.

     - Treasury Services net revenue declined 1 percent to $7.14 billion,
       while net income decreased 10 percent to $2.06 billion on higher
       noninterest expense.

In the fourth quarter, Global Corporate and Investment Banking reported a net revenue loss of $781 million compared with revenue of $5.15 billion, and a net loss of $2.76 billion compared with net income of $1.39 billion in the year ago quarter.

    Global Wealth and Investment Management

    (Dollars in millions)                           YTD 2007       YTD 2006
    Total revenue net of interest expense(1)          $7,923         $7,357

    Provision for credit losses                           14           (39)
    Noninterest expense                                4,635          3,867

    Net income                                         2,095          2,223

    Efficiency ratio                                  58.50%         52.57%
    Return on average equity                           18.87          22.28

    Loans and leases(2)                              $73,469        $60,910
    Deposits(2)                                      124,867        102,389

    (in billions)                                At 12/31/07    At 12/31/06
    Assets under management                           $643.5         $542.9

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

Net revenue in Global Wealth and Investment Management rose 8 percent as record brokerage income and a 26 percent increase in asset management fees were partially offset by the impact of support provided to certain cash funds. Record asset management fees of $3.53 billion were helped by higher asset levels on net client inflows of $25 billion, market appreciation of $16 billion and the acquisition of U.S. Trust and LaSalle.

Net income declined 6 percent as noninterest expense rose 20 percent due to the addition of U.S. Trust, continued investment in client-facing associates, higher incentive expense related to revenue generating activities and increased marketing costs.

In December, Bank of America completed the sale of Marsico, which resulted in a $61 billion net decrease in assets under management. The gain of $1.50 billion is reflected in All Other.

     - U.S. Trust, Bank of America Private Wealth Management net revenue rose
       22 percent to $2.32 billion and net income rose 4 percent to $467
       million driven by the acquisition of U.S. Trust.

     - Columbia Management net revenue declined 2 percent to $1.51 billion,
       reflecting about $400 million in support for certain cash funds offset
       in part by 21 percent growth in asset management fees including the
       addition of U.S. Trust. Net income decreased 41 percent to $196
       million.

     - Premier Banking and Investments net revenue rose 9 percent to $3.75
       billion on record brokerage income and 19 percent growth in fee-based
       assets, excluding the impact of LaSalle. Net income increased 8 percent
       to $1.28 billion.

Fourth quarter net revenue in Global Wealth and Investment Management fell 4 percent to $1.83 billion from a year ago. Net income in the period was 42 percent lower at $334 million compared with $573 million from a year earlier.

    All Other(1)

    (Dollars in millions)                           YTD 2007       YTD 2006
    Total revenue net of interest expense(2)           $(954)          $360

    Provision for credit losses                       (5,210)        (3,494)
    Noninterest expense                                  390          1,777

    Net income                                         2,919          1,500

    Loans and leases(3)                             $100,860        $70,753

    (1) All Other consists primarily of equity investments, the residual
        impact of the allowance for credit losses and the cost allocation
        processes, Merger and Restructuring Charges, intersegment
        eliminations, and the results of certain consumer finance and
        commercial lending businesses that are being liquidated. All Other
        also includes the offsetting securitization impact to present Global
        Consumer and Small Business Banking on a managed basis. For more
        information and detailed reconciliation, please refer to the data
        pages supplied with this Press Release.
    (2) Fully taxable-equivalent basis
    (3) Balances averaged for period

All Other net income was $2.92 billion, an increase of 95 percent from $1.50 billion a year earlier. The increase was mainly due to the $1.50 billion pretax gain from the sale of Marsico and an increase of $873 million in equity investment income. Partially offsetting the increase were the absence of the results and the related gain from the sale of certain international operations in the prior year and losses of about $400 million on the subsequent writedowns of securities that were originally purchased from certain company-managed cash funds at fair value.

Net income in the fourth quarter was $825 million compared with $691 million a year earlier, primarily driven by the Marsico sale, partially offset by the absence of the net income of certain international operations that were sold in the prior year and losses in 2007 related to the securities that were originally purchased from certain cash funds at fair value.

Note: Chief Executive Officer Kenneth D. Lewis and Chief Financial Officer Joe L. Price will discuss fourth quarter 2007 results in a conference call at 9:30 a.m. (Eastern Time) 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 800.894.5910 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 more than 59 million consumer and small business relationships with more than 6,100 retail banking offices, nearly 19,000 ATMs and award-winning online banking with more than 12 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 175 countries and has relationships with 99 percent of the U.S. Fortune 500 companies and 80 percent of the Fortune Global 500. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

This press release contains forward-looking statements, including statements about the financial conditions, results of operations and earnings outlook of Bank of America Corporation. The forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results or earnings to differ materially from such forward-looking statements include, among others, the following: 1) projected business increases following process changes and other investments are lower than expected; 2) competitive pressure among financial services companies increases significantly; 3) general economic conditions are less favorable than expected; 4) political conditions including the threat of future terrorist activity and related actions by the United States abroad may adversely affect the company's businesses and economic conditions as a whole; 5) changes in the interest rate environment and market liquidity reduce interest margins, impact funding sources and effect the ability to originate and distribute financial products in the primary and secondary markets; 6) changes in foreign exchange rates increases exposure; 7) changes in market rates and prices may adversely impact the value of financial products; 8) legislation or regulatory environments, requirements or changes adversely affect the businesses in which the company is engaged; 9) changes in accounting standards, rules or interpretations; 10) litigation liabilities, including costs, expenses, settlements and judgments, may adversely affect the company or its businesses; 11) mergers and acquisitions and their integration into the company; and 12) decisions to downsize, sell or close units or otherwise change the business mix of any of the company. Accordingly, readers are cautioned not to place undue reliance on forward- looking statements, which speak only as of the date on which they are made. Bank of America does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements are made. For further information regarding Bank of America Corporation, please read the Bank of America reports filed with the SEC and available at www.sec.gov.

Columbia Management: Columbia Management Group, LLC ("Columbia Management") is the 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.

http://www.bankofamerica.com Bank of America Corporation and Subsidiaries Selected Financial Data (Dollars in millions, except per share data; shares in thousands) Summary Income Three Months Ended Year Ended Statement December 31 December 31 2007 2006 2007 2006 Net interest income $9,164 $8,599 $34,433 $34,591 Total noninterest income 3,508 9,887 31,886 37,989 Total revenue, net of interest expense 12,672 18,486 66,319 72,580 Provision for credit losses 3,310 1,570 8,385 5,010 Other noninterest expense 10,137 8,849 36,600 34,792 Merger and restructuring charges 140 244 410 805 Income (loss) before income taxes (915) 7,823 20,924 31,973 Income tax expense (benefit) (1,183) 2,567 5,942 10,840 Net income $268 $5,256 $14,982 $21,133 Earnings per common share $0.05 $1.17 $3.35 $4.66 Diluted earnings per common share 0.05 1.16 3.30 4.59 Summary Average Three Months Ended Year Ended Balance Sheet December 31 December 31 Statement 2007 2006 2007 2006 Total loans and leases $868,119 $683,598 $776,154 $652,417 Debt securities 206,873 193,601 186,466 225,219 Total earning assets 1,502,998 1,299,461 1,390,192 1,269,144 Total assets 1,742,467 1,495,150 1,602,073 1,466,681 Total deposits 781,625 680,245 717,182 672,995 Shareholders' equity 144,924 134,047 136,662 130,463 Common shareholders' equity 141,085 132,004 133,555 129,773 Performance Ratios Three Months Ended Year Ended December 31 December 31 2007 2006 2007 2006 Return on average assets 0.06 % 1.39 % 0.94 % 1.44 % Return on average common shareholders' equity 0.60 15.76 11.08 16.27 Credit Quality Three Months Ended Year Ended December 31 December 31 2007 2006 2007 2006 Net charge-offs $1,985 $1,417 $6,480 $4,539 Annualized net charge-offs as a % of average loans and leases outstanding (1) 0.91 % 0.82 % 0.84 % 0.70 % Provision for credit losses $3,310 $1,570 $8,385 $5,010 Managed credit card net losses 2,138 1,906 8,214 6,374 Managed credit card net losses as a % of average managed credit card receivables 4.75 % 4.56 % 4.79 % 3.90 % December 31 2007 2006 Nonperforming assets $5,948 $1,856 Nonperforming assets as a % of total loans, leases and foreclosed properties (1) 0.68 % 0.26 % Allowance for loan and lease losses $11,588 $9,016 Allowance for loan and lease losses as a % of total loans and leases measured at historical cost (1) 1.33 % 1.28 % Capital Management December 31 2007 2006 Risk-based capital ratios: Tier 1 6.87 %* 8.64 % Total 11.02 * 11.88 Tier 1 leverage ratio 5.04 * 6.36 Period-end common shares issued and outstanding 4,437,885 4,458,151 Three Months Ended Year Ended December 31 December 31 2007 2006 2007 2006 Shares issued 3,730 20,106 53,464 118,418 (2) Shares repurchased (2,700) (60,100) (73,730) (291,100) Average common shares issued and outstanding 4,421,554 4,464,110 4,423,579 4,526,637 Average diluted common shares issued and outstanding 4,470,108 4,536,696 4,480,254 4,595,896 Dividends paid per common share $0.64 $0.56 $2.40 $2.12 Summary Ending Balance Sheet December 31 2007 2006 Total loans and leases $876,344 $706,490 Total debt securities 214,056 192,846 Total earning assets 1,463,570 1,257,274 Total assets 1,715,746 1,459,737 Total deposits 805,177 693,497 Total shareholders' equity 146,803 135,272 Common shareholders' equity 142,394 132,421 Book value per share of common stock $32.09 $29.70 * Preliminary data (1) Ratios do not include loans measured at fair value in accordance with SFAS 159 at and for the three months and year ended December 31, 2007. (2) Does not include 631,145 shares issued in conjunction with the merger with MBNA. 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) Global Consumer and Small Three Months Ended Year Ended Business Banking (1) December 31 December 31 2007 2006 2007 2006 Total revenue, net of interest expense (2) $12,514 $11,671 $47,682 $44,926 Provision for credit losses (3) 4,303 2,777 12,929 8,534 Noninterest expense 5,493 4,784 20,060 18,375 Net income 1,871 2,594 9,430 11,378 Efficiency ratio (2) 43.90 % 40.99 % 42.07 % 40.90 % Return on average equity 11.09 16.77 14.94 18.11 Average - total loans and leases $353,689 $299,614 $327,810 $288,131 Average - total deposits 340,940 327,890 328,918 332,242 Deposits Total revenue, net of interest expense (2) $4,509 $4,281 $17,577 $16,651 Net income 1,264 1,251 5,227 4,863 Card Services (1) Total revenue, net of interest expense (2) 6,647 6,445 25,533 24,636 Net income 574 1,150 3,712 5,700 Consumer Real Estate Total revenue, net of interest expense (2) 1,158 774 3,679 2,909 Net income (loss) (65) 201 371 712 Global Corporate and Three Months Ended Year Ended Investment Banking December 31 December 31 2007 2006 2007 2006 Total revenue, net of interest expense (2) $(781) $5,153 $13,417 $21,161 Provision for credit losses 268 (73) 652 9 Noninterest expense 3,359 3,007 11,925 11,578 Net income (loss) (2,762) 1,398 538 6,032 Efficiency ratio (2) n/m 58.34 % 88.88 % 54.71 % Return on average equity (20.47)% 13.53 1.19 14.33 Average - total loans and leases $325,723 $239,384 $274,015 $232,623 Average - total deposits 236,254 204,467 220,724 194,972 Business Lending Total revenue, net of interest expense (2) $1,930 $1,373 $6,172 $5,615 Net income 674 592 2,121 2,249 Capital Markets and Advisory Services Total revenue, net of interest expense (2) (4,550) 2,062 303 8,475 Net income (loss) (3,815) 369 (3,362) 1,677 Treasury Services Total revenue, net of interest expense (2) 1,889 1,766 7,139 7,212 Net income 431 558 2,065 2,302 Global Wealth and Three Months Ended Year Ended Investment Management December 31 December 31 2007 2006 2007 2006 Total revenue, net of interest expense (2) $1,827 $1,899 $7,923 $7,357 Provision for credit losses 34 2 14 (39) Noninterest expense 1,318 987 4,635 3,867 Net income 334 573 2,095 2,223 Efficiency ratio (2) 72.15 % 51.94 % 58.50 % 52.57 % Return on average equity 10.56 22.55 18.87 22.28 Average - total loans and leases $82,809 $63,936 $73,469 $60,910 Average - total deposits 138,159 106,324 124,867 102,389 U.S. Trust (4) Total revenue, net of interest expense (2) $704 $459 $2,319 $1,896 Net income 125 94 467 450 Columbia Management Total revenue, net of interest expense (2) 121 420 1,506 1,539 Net income (loss) (134) 91 196 331 Premier Banking and Investments Total revenue, net of interest expense (2) 933 894 3,751 3,455 Net income 294 310 1,275 1,186 All Other (1) Three Months Ended Year Ended December 31 December 31 2007 2006 2007 2006 Total revenue, net of interest expense (2) $(238) $119 $(954) $360 Provision for credit losses (5) (1,295) (1,136) (5,210) (3,494) Noninterest expense 107 315 390 1,777 Net income 825 691 2,919 1,500 Average - total loans and leases 105,898 80,664 100,860 70,753 Average - total deposits 66,272 41,564 42,673 43,392 (1) Global Consumer and Small Business Banking is presented on a managed basis, specifically Card Services, with a corresponding offset recorded in All Other. (2) 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. (3) Represents provision for credit losses on held loans combined with realized credit losses associated with the securitized loan portfolio. (4) In July 2007, the operations of the acquired U.S. Trust Corporation were combined with the former Private Bank creating U.S. Trust, Bank of America Private Wealth Management. The results of the combined business were reported for periods beginning on July 1, 2007. Prior to July 1, 2007, the results solely reflect that of the former Private Bank. (5) Represents the provision for credit losses in All Other combined with the Global Consumer and Small Business Banking securitization offset. 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 Three Months Ended Year Ended basis data December 31 December 31 2007 2006 2007 2006 Net interest income $9,814 $8,955 $36,182 $35,815 Total revenue, net of interest expense 13,322 18,842 68,068 73,804 Net interest yield 2.61 % 2.75 % 2.60 % 2.82 % Efficiency ratio 77.14 48.26 54.37 48.23 Other Data December 31 2007 2006 Full-time equivalent employees 209,718 203,425 Number of banking centers - domestic 6,149 5,747 Number of branded ATMs - domestic 18,753 17,079 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 its Global Consumer and Small Business Banking's results, specifically Card Services, on a managed basis. This basis of presentation excludes the Corporation's securitized mortgage and home equity portfolios for which the Corporation retains servicing. Reporting on a managed basis is consistent with the way that management, as well as, analysts evaluate the results of Global Consumer and Small Business Banking. Managed basis assumes that 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. 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 Consumer and Small Business Banking's and 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 Consumer and Small Business Banking's managed income statement line items differ from a held basis reported as follows:

     - Managed net interest income includes Global Consumer and Small
       Business Banking's 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 Consumer and Small
       Business Banking's 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 Consumer and Small Business Banking.

     - Provision for credit losses represents the provision for credit losses
       on held loans combined with realized credit losses associated with the
       securitized loan portfolio.



    Global Consumer and Small Business Banking

                                             Year Ended December 31, 2007
                                           Managed   Securitization   Held
                                          Basis (1)   Impact (2)      Basis
    Net interest income (3)                  $28,809      $(8,027)    $20,782
    Noninterest income:
        Card income                           10,189        3,356      13,545
        Service charges                        6,008            -       6,008
        Mortgage banking income                1,333            -       1,333
        All other income                       1,343         (288)      1,055
            Total noninterest income          18,873        3,068      21,941
            Total revenue, net of
             interest expense                 47,682       (4,959)     42,723

    Provision for credit losses               12,929       (4,959)      7,970
    Noninterest expense                       20,060            -      20,060
            Income before income taxes        14,693            -      14,693
    Income tax expense (3)                     5,263            -       5,263
            Net income                        $9,430           $-      $9,430

     Average - total loans and leases       $327,810    $(103,284)   $224,526


    All Other

                                             Year Ended December 31, 2007
                                           Reported  Securitization     As
                                          Basis (4)    Offset (2)    Adjusted
    Net interest income (3)                  $(7,701)      $8,027        $326
    Noninterest income:
        Card income                            2,816       (3,356)       (540)
        Equity investment income               3,745            -       3,745
        Gains (losses) on sales of debt
         securities                              180            -         180
        All other income                           6          288         294
            Total noninterest income           6,747       (3,068)      3,679
            Total revenue, net of
             interest expense                   (954)       4,959       4,005

    Provision for credit losses               (5,210)       4,959        (251)
    Merger and restructuring charges             410            -         410
    All other noninterest expense                (20)           -         (20)
            Income before income taxes         3,866            -       3,866
    Income tax expense (3)                       947            -         947
            Net income                        $2,919           $-      $2,919

     Average - total loans and leases       $100,860     $103,284    $204,144


    Global Consumer and Small Business Banking

                                             Year Ended December 31, 2006

                                           Managed   Securitization    Held
                                          Basis (1)   Impact (2)       Basis
    Net interest income (3)                  $28,197     $(7,593)    $20,604
    Noninterest income:
        Card income                            9,374       4,566      13,940
        Service charges                        5,342           -       5,342
        Mortgage banking income                  877           -         877
        All other income                       1,136        (335)        801
            Total noninterest income          16,729       4,231      20,960
            Total revenue, net of
             interest expense                 44,926      (3,362)     41,564

    Provision for credit losses                8,534      (3,362)      5,172
    Noninterest expense                       18,375           -      18,375
            Income before income taxes        18,017           -      18,017
    Income tax expense (3)                     6,639           -       6,639
            Net income                       $11,378          $-     $11,378

     Average - total loans and leases       $288,131    $(96,238)   $191,893


    All Other

                                             Year Ended December 31, 2006

                                           Reported  Securitization     As
                                          Basis (4)    Offset (2)    Adjusted
    Net interest income (3)                  $(5,930)     $7,593      $1,663
    Noninterest income:
        Card income                            3,795      (4,566)       (771)
        Equity investment income               2,872           -       2,872
        Gains (losses) on sales of debt
         securities                             (475)          -        (475)
        All other income                          98         335         433
            Total noninterest income           6,290      (4,231)      2,059
            Total revenue, net of
             interest expense                    360       3,362       3,722

    Provision for credit losses               (3,494)      3,362        (132)
    Merger and restructuring charges             805           -         805
    All other noninterest expense                972           -         972
            Income before income taxes         2,077           -       2,077
    Income tax expense (3)                       577           -         577
            Net income                        $1,500          $-      $1,500

     Average - total loans and leases        $70,753     $96,238    $166,991

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

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