REG-Bank of America Corp: Final Results

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

Fourth-Quarter Earnings Fall to $268 Million, or $0.05 Per Share

CHARLOTTE, N.C., Jan. 22 -- 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.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050720/CLW086LOGO-b )
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.

SOURCE Bank of America
-0- 01/22/2008
/CONTACT: Investors, Kevin Stitt, +1-704-386-5667, Lee McEntire,
+1-704-388-6780, or Leyla Pakzad, +1-704-386-2024, or Media, Scott Silvestri,
+1-980-388-9921, scott.silvestri@bankofamerica.com, all of Bank of America/
/Photo: http://www.newscom.com/cgi-bin/prnh/20050720/CLW086LOGO-b
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com/
/Web site: http://www.bankofamerica.com
http://investor.bankofamerica.com /
(BAC)

END