Second Quarter 2009 Business Highlights

•Bank of America increased its Tier 1 common capital by nearly $40 billion through multiple actions during the quarter that included issuing shares of common stock, exchanging certain non-government preferred stock for common stock, and asset sales.


•Bank of America Merrill Lynch ranked No. 1 in high-yield debt and leveraged loans based on volume, and the firm was No. 2 and No. 3, respectively, in U.S. and global investment banking fees for the first half of 2009, according to second quarter league tables.


•Sales and trading revenue, excluding credit valuation adjustments on derivative liabilities and market disruption charges, rose to a record $6.7 billion.


•During the quarter, Bank of America announced the sale of its merchant processing business to a joint venture, which included First Data Corp. The transaction is expected to deliver next-generation payments solutions to merchants.


•Bank of America funded $110.6 billion in first mortgages, helping nearly 500,000 people either purchase a home or refinance their existing mortgage, including $24.3 billion in mortgages made to 154,000 low- and moderate-income borrowers. Approximately 29 percent of first mortgages were for purchases.


•Credit extended during the quarter, including commercial renewals of $55 billion, was more than $211 billion, compared with $183 billion in the first quarter. New credit included $111 billion in mortgages, $78 billion in commercial non-real estate, approximately $9 billion in commercial real estate, $4 billion in domestic and small business card, $4 billion in home equity products and more than $5 billion in other consumer credit.(1)


•During the second quarter, Small Business Banking extended more than $580 million in new credit comprised of credit cards, loans and lines of credit to more than 35,000 customers.


•To help homeowners avoid foreclosure, Bank of America has provided rate relief or agreed to modifications with approximately 150,000 customers for the first six months of 2009, compared with more than 230,000 for all of 2008 for Bank of America and Countrywide. In addition, approximately 80,000 Bank of America customers are already in a trial period modification or were in the process of responding to an offer under the Making Home Affordable program through mid-July.


•Average retail deposits in the quarter increased $136.3 billion, or 26 percent, from a year earlier, including $104.3 billion in balances from Merrill Lynch and Countrywide. Excluding Countrywide and Merrill Lynch, Bank of America grew retail deposits $32.0 billion, or 6 percent, from the year-ago quarter.


(1) Preliminary data as of July 17, 2009



Transition Update


The Merrill Lynch integration is on track and meeting expected goals. The company in 2009 expects to achieve in excess of 40 percent of the previously announced goal of approximately $7 billion in cost savings, ahead of the original goal of 25 percent for the year.


Since June 1, approximately 6,500 affluent banking-only clients in Bank of America have been referred to Merrill Lynch financial advisors. Of that group, approximately 1,400 now have added an investment relationship with the company. Merrill Lynch financial advisors referred more than 1,100 clients to the commercial bank of Bank of America.


The Countrywide transition and related cost savings are on track.


The new Bank of America Home Loans and Insurance brand was introduced to consumers during the quarter as part of the transition.