Bank of America (BAC) reported a Q409 loss of $5.2bn, or $0.60 per diluted share, after shedding obligations to the Troubled Asset Relief Program (TARP). In the same quarter of 2008, BofA posted a net less of $2.4bn, or $0.48 per diluted share. Excluding the $4bn TARP repayment, BofA had a net loss of $194m in Q409, which narrowed from the $1.8bn loss from a year earlier. For all of 2009, BofA reported a net income of $6.3bn, an improvement from $4bn in 2008. Revenue climbed 59% to $25.4bn from $16bn a year ago, stemming from the addition of Merrill Lynch. During the quarter, BofA funded $86.6bn in first mortgages, including $22.9bn in mortgages made to low-and moderate-income borrowers. BofA provided home ownership retention to 460,000 borrowers, including 260,000 loan modification with a total unpaid principal balance of $55bn and nearly 200,000 customers who were in trial-period modifications under the Home Affordable Modification Program (HAMP). Under the program, BofA provided 3,183 permanent modifications after shifting its focus to collect more documentation from those in the trial modification stage. It currently receives a potential capped incentive of $1.6bn, the fifth highest of any servicer in in the program. "As we look at 2010, we are encouraged by signs the economy is improving, as we have seen in the stabilization of our credit costs, particularly in the consumer businesses,” said recently-appointed CEO Brian Moynihan. “That said, economic conditions remain fragile and we expect high unemployment levels to continue, creating an ongoing drag on consumer spending and growth.” Write to Jon Prior. The author holds no relevant investments