8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

April 14, 2003

BANK OF AMERICA CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation or organization)

1-6523

(Commission File Number)

56-0906609

(IRS Employer Identification No.)

100 North Tryon Street

Charlotte, North Carolina

(Address of principal executive offices)

28255

(Zip Code)

(704) 386-8486

(Registrant’s telephone number, including area code)

ITEM 5.    OTHER EVENTS.

On April 14, 2003, Bank of America Corporation (the “Registrant”) announced financial results for the first quarter ended March 31, 2003, reporting earnings of $2.42 billion and diluted earnings per common share of $1.59. A copy of the press release announcing the Registrant’s results for the first quarter ended March 31, 2003 is attached hereto as Exhibit 99.1 and incorporated by reference herein. The press release includes information regarding interest income on a taxable equivalent basis or FTE. FTE is a non-GAAP performance measure used by management in operating the business which management believes provides investors with a more accurate picture of the interest margin for comparative purposes.

ITEM 7.    FINANCIAL STATEMENTS AND EXHIBITS.

(c)    Exhibits.

The following exhibits are filed herewith:

EXHIBIT NO.	DESCRIPTION OF EXHIBIT
99.1	Press Release dated April 14, 2003 with respect to the Registrant’s financial results for the first quarter ended March 31, 2003
99.2	Supplemental Information prepared for use on March 31, 2003 in connection with financial results for the first quarter ended March 31, 2003

ITEM 9.    REGULATION FD DISCLOSURE.

The information included in this section is intended to be included under “Item 12. Disclosure of Results of Operations and Financial Condition” and is included under this Item 9 in accordance with SEC Release No. 33-8216.

On April 14, 2003, the Registrant held an investor conference and webcast to disclose financial results for the first quarter ended March 31, 2003. The Supplemental Information package for use at this

conference is furnished herewith as Exhibit 99.2 and incorporated by reference in Item 9. All information in the Supplemental Information is presented as of March 31, 2003, and the Registrant does not assume any obligation to correct or update said information in the future.

The information in the preceding paragraph, as well as Exhibit 99.2 referenced therein, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

On April 14, 2003, the Registrant announced financial results for the first quarter ended March 31, 2003, reporting earnings of $2.42 billion and diluted earnings per common share of $1.59. A copy of the press release announcing the Registrant’s results for the first quarter ended March 31, 2003 is attached hereto as Exhibit 99.1 and incorporated by reference herein. The press release includes information regarding interest income on a taxable equivalent basis or FTE. FTE is a non-GAAP performance measure used by management in operating the business which management believes provides investors with a more accurate picture of the interest margin for comparative purposes.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BANK OF AMERICA CORPORATION
By:	/s/    MARC D. OKEN
	Marc D. Oken Executive Vice President and Principal Financial Executive

Dated: April 14, 2003

EXHIBIT INDEX

EXHIBIT NO.	DESCRIPTION OF EXHIBIT
99.1	Press Release dated April 14, 2003 with respect to the Registrant’s financial results for the first quarter ended March 31, 2003
99.2	Supplemental Information prepared for use on April 14, 2003 in connection with financial results for the first quarter ended March 31, 2003.

EX-99.1

Exhibit 99.1

April 14, 2003

Investors may contact:

Kevin Stitt, Bank of America, 704.386.5667

Lee McEntire, Bank of America, 704.388.6780

Media may contact:

Eloise Hale, Bank of America, 704.387.0013

eloise.hale@bankofamerica.com

Bank of America announces 15 percent increase in earnings per share

Net income is $2.42 billion

Consumer loans increase 21%

Convertibles, Mortgage-backed Securities achieve

significant market share gains

Domestic deposits grow 9%

Large corporate nonperforming loans decline for first time in six quarters

CHARLOTTE — Bank of America Corporation today reported first quarter earnings of $2.42 billion, or $1.59 per share (diluted), a 15 percent increase in earnings per share from $2.18 billion, or $1.38 per share, a year ago. The return on common equity increased to 19.92 percent.

All three of the company’s major businesses increased their net income, a significant accomplishment in the current economic environment. These results reflect the success of the company’s customer relationship strategy as multiple products recorded substantial increases, including strong mortgage sales, further penetration in debit and credit card and growth in deposits and loans.

“Bank of America’s results show that we are uniquely positioned to leverage our brand and scale,” said Kenneth D. Lewis, chairman and chief executive officer. “We are clearly demonstrating the benefits of our customer-focused strategy and how it is achieving high shareholder returns.”

More

Page 2

Financial highlights (compared to a year earlier)

• Shareholder Value Added grew 37 percent to $1.14 billion.

• The loan-to-domestic-deposit ratio was 94 percent versus 99 percent a year earlier.

• Mortgage banking income rose 108 percent to $405 million.

• Card income was up 18 percent to $681 million.

• Investment banking income rose 11 percent to $378 million.

Customer highlights

• Bank of America earned the highest Community Reinvestment Act rating—Outstanding—from the Office of the Comptroller of the Currency (OCC) following an intensive one-year examination.

• Bank of America became the first bank to have more than five million active online banking customers. This is a 57 percent increase in users from the prior year.

• In the first quarter, the company’s market share in convertible debt underwriting increased to 14.2 percent from 3.3 percent a year ago. Mortgage-backed securities’ market share nearly doubled to 7.8 percent.

• On March 5, 2003, the company completed its 24.9 percent acquisition of Santander Central Hispano’s subsidiary, Grupo Financiero Santander Serfin, the most profitable and third-largest bank in Mexico. This alliance furthers Bank of America’s strategy to better serve the Hispanic market.

• The number of Small Business Administration (SBA) loans increased 275 percent from a year ago as Small Business Banking reduced cycle time and improved processes.

Revenue

Revenue grew 4 percent from the previous year to $8.89 billion.

Net interest income of $5.21 billion was relatively unchanged from the previous year.

Noninterest income increased 7 percent to $3.69 billion. Strong refinance levels continued to drive higher mortgage banking income results. Card income rose as a result of higher interchange and other fees. Total service charges increased 8 percent.

More

Page 3

Other income was up due primarily to $242 million in gains on residential loan sales taken to reduce prepayment risk.

During the quarter, the company realized $273 million in net securities gains as the discretionary portfolio was repositioned in line with market conditions and the company’s belief on the direction of interest rates.

Efficiency

Expenses increased 5 percent from a year ago to $4.72 billion. This growth was driven by the development and launch of a new, national advertising campaign and an increase in employee benefits as healthcare costs escalated. Additionally, the company began expensing employee stock options this quarter, a pre-tax impact of $26 million.

Credit quality

Credit losses improved from the fourth quarter. The consumer and middle market portfolios continue to be stable to improving. While there were declines in nonperforming large corporate loans, the company remains cautious about this portfolio.

• Provision for credit losses was $833 million, down 28 percent from $1.17 billion in the fourth quarter and down from $840 million a year earlier.

• Net charge-offs were $833 million, or 0.98 percent of loans and leases, down from $1.17 billion, or 1.35 percent, in the fourth quarter and down from $840 million, or 1.04 percent, a year earlier.

• Nonperforming assets were $5.03 billion, or 1.46 percent of loans, leases and foreclosed properties as of March 31, 2003. This was down 4 percent from the fourth quarter and was relatively unchanged from $4.99 billion a year earlier.

• The allowance for credit losses, at $6.85 billion or 2 percent of loans and leases, was virtually unchanged from both the fourth quarter and the prior year. As of March 31, 2003, the allowance for credit losses represented 143 percent of nonperforming loans, up from 136 percent in the fourth quarter but down from 149 percent a year earlier.

More

Page 4

Capital management

Total shareholders’ equity was $50.05 billion at March 31, 2003, up 4 percent from a year ago and represented 7 percent of period-end assets of $680 billion. The Tier 1 Capital Ratio was 8.20 percent, a decrease of 28 basis points from a year ago and 2 basis points from the December 31, 2002 level.

During the quarter, Bank of America repurchased 18.4 million shares and issued 15.2 million shares related to employee options and stock ownership plans. Average common shares outstanding were 1.50 billion in the first quarter, down 3 percent from 1.54 billion a year earlier.

Consumer and Commercial Banking

Consumer and Commercial Banking (CCB) earned $1.59 billion, up 2 percent from a year ago. Total revenue grew 7 percent to $6.03 billion while expenses increased 9 percent due to marketing costs and an increase in mortgage banking personnel. Return on equity was 32.6 percent and SVA grew $75 million to $1.1 billion.

The successful results were driven by the ongoing strength of the consumer and middle market businesses. Not only were transaction levels of credit and debit cards higher, but overall transaction dollar amounts also increased. The credit card delinquency rates decreased. Checking, credit card and debit card accounts increased along with middle market and investment banking services.

Noninterest income was up 17 percent to $2.30 billion, driven by higher consumer service charges, mortgage banking income and card income. It was also driven by a 48 percent increase in middle market investment banking income.

Net interest income was relatively unchanged at $3.73 billion. Average loans grew 2 percent, led by consumer loan growth as customers continued to take advantage of the interest rate environment for mortgages, home equity lines, automobile loans and credit card accounts. Middle market loans and deposits saw positive growth.

Global Corporate and Investment Banking

Global Corporate and Investment Banking (GCIB) earned $481 million, up 5 percent from last year, due to favorable market conditions in fixed-income products. Revenue increased 3 percent to $2.34 billion while expenses remained flat. Return on equity was 18.6 percent and SVA increased $80 million to $203 million.

Strong trading revenue and expense management drove these results.

Investment banking income increased 14 percent to $373 million from last year. The increase in fees was led by the strong demand for fixed income and convertible securities.

More

Page 5

Net interest income was up 10 percent to $1.28 billion from a year ago, primarily driven by the growth in trading assets and lower funding costs. Total trading-related revenue in GCIB, which includes trading-related net interest income and trading fees, was $911 million, up 15 percent from last year primarily due to gains in fixed income.

Asset Management

Asset Management net income rose 2 percent from a year ago to $140 million as a result of lower provision expense. Despite more than 20% declines in market indices, overall revenue decreased only 3 percent to $578 million. Expenses increased 2 percent, reflecting the increase in distribution capabilities over the last several quarters. Return on equity was 20.3 percent and SVA declined $4 million to $66 million. Assets under management decreased 6 percent to $297 billion.

Continuing to focus on expanding distribution capabilities, Asset Management will increase its number of financial advisors by approximately 20 percent again this year.

More than 75% of the mutual fund assets managed by Banc of America Capital Management LLC were ranked in the top two performance quartiles in their respective Lipper categories for the one-year, three-year and five-year periods ended March 31.

Equity Investments

Equity Investments reported a loss of $86 million, compared to a loss of $32 million a year ago. Principal Investing reported cash gains of $45 million in the first quarter offset by $77 million in impairments and $41 million in mark-to-market adjustments.

Note: James H. Hance, Jr., vice chairman and chief financial officer, will discuss first quarter results in a conference call at 9:30 a.m. (Eastern Time) today. The call can be accessed via a webcast available on the Bank of America Web site at http://www.bankofamerica.com/investor/. These comments will include certain non-GAAP (generally accepted accounting principles) financial measures that are discussed in more detail on the company’s website.

One of the world’s leading financial services companies, Bank of America is committed to making banking work for customers and clients like it never has before. Through innovative technologies and the ingenuity of its people, Bank of America provides individuals, small businesses and commercial, corporate and institutional clients across the United States and around the world new and better ways to manage their financial lives.

Shares of Bank of America (ticker: BAC), the second largest banking company in the United States by market capitalization, are listed on the New York, Pacific and London stock exchanges. The company’s Web site is www.bankofamerica.com. News, speeches and other corporate information may be found at www.bankofamerica.com/newsroom.

Additional financial tables are available at www.bankofamerica.com/investor/.

More

Page 6

Forward-Looking Statements

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 military abroad may adversely affect the company’s businesses and economic conditions as a whole; 4) changes in the interest rate environment reduce interest margins and impact funding sources; 5) changes in foreign exchange rates increases exposure; 6) changes in market rates and prices may adversely impact the value of financial products; 7) legislation or regulatory environments, requirements or changes adversely affect the businesses in which the company is engaged; 8) litigation liabilities, including costs, expenses, settlements and judgments, may adversely affect the company or its businesses; and 9) decisions to downsize, sell or close units or otherwise change the business mix of any of the company. 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.

###

Bank of America

(Dollars in millions, except per share data; shares in thousands)

	Three Months
	Ended March, 31
	2003			2002
Financial Summary
Earnings	$	2,424		$	2,179
Earnings per common share		1.62			1.41
Diluted earnings per common share		1.59			1.38
Dividends per common share		0.64			0.60
Closing market price per common share		66.84			68.02
Average common shares issued and outstanding		1,499,405			1,543,471
Average diluted common shares issued and outstanding		1,526,288			1,581,848
Summary Income Statement
Net interest income	$	5,209		$	5,153
Noninterest income		3,685			3,440
Total revenue		8,894			8,593
Provision for credit losses		833			840
Gains on sales of securities		273			44
Noninterest expense		4,717			4,494
Income before income taxes		3,617			3,303
Income tax expense		1,193			1,124
Net income	$	2,424		$	2,179
Summary Average Balance Sheet
Loans and leases	$	345,662		$	327,801
Securities		67,784			73,542
Earning assets		613,092			549,111
Total assets		713,299			637,678
Deposits		385,760			364,403
Shareholders’ equity		49,400			47,456
Common shareholders’ equity		49,343			47,392
Performance Indices
Return on average assets		1.38	%		1.39	%
Return on average common shareholders’ equity		19.92			18.64
Credit Quality
Net charge-offs	$	833		$	840
% of average loans and leases		0.98	%		1.04	%
Managed credit card net losses as a % of average managed credit card receivables		5.25			5.43

	At March 31
	2003			2002
Balance Sheet Highlights
Loans and leases	$	343,412		$	331,210
Securities		76,438			75,343
Earning assets		577,404			534,564
Total assets		679,765			619,921
Deposits		395,176			367,200
Shareholders’ equity		50,052			48,169
Common shareholders’ equity		49,995			48,107
Book value per share		33.38			31.15
Total equity to assets ratio (period end)		7.36	%		7.77	%
Risk-based capital ratios:(1)
Tier 1		8.20			8.48
Total		12.29			12.93
Leverage ratio		6.25			6.72
Period-end common shares issued and outstanding		1,497,531			1,544,521
Allowance for loan losses	$	6,853		$	6,869
Allowance for loan losses as a % of loans and leases		2.00	%		2.07	%
Allowance for loan losses as a % of nonperforming loans		143			149
Nonperforming loans	$	4,806		$	4,601
Nonperforming assets		5,033			4,992
Nonperforming assets as a % of:
Total assets		0.74	%		0.81	%
Loans, leases and foreclosed properties		1.46			1.51
Nonperforming loans as a % of loans and leases		1.40			1.39
Other Data
Full-time equivalent employees		132,583			137,240
Number of banking centers		4,202			4,246
Number of ATM’s		13,266			13,161

⁽¹⁾ 2003 ratios are preliminary.

	Consumer and Commercial Banking			Asset Management			Global Corporate and Investment Banking			Equity Investments			Corporate Other
BUSINESS SEGMENT RESULTS
Three months ended March 31, 2003
Total revenue	$	6,033		$	578		$	2,343		$	(107	)	$	199
Net income		1,591			140			481			(86	)		298
Shareholder valueadded		1,099			66			203			(141	)		(87	)
Return on equity		32.6	%		20.3	%		18.6	%		(16.7	)%		n/m
Average loans and leases	$	185,779		$	22,683		$	56,521		$	434		$	80,245
Three months ended March 31, 2002
Total revenue	$	5,650		$	598		$	2,285		$	(28	)	$	182
Net Income		1,556			137			457			(32	)		61
Shareholder value added		1,024			70			123			(94	)		(291	)
Return on equity		32.4	%		23.9	%		16.0	%		(6.2	)%		n/m
Average loans and leases	$	181,415		$	24,794		$	67,018		$	427		$	54,147
n/m = not meaningful

	Three Months Ended  March 31
	2003			2002
SUPPLEMENTAL FINANCIAL DATA
Taxable-equivalent basis data(1)
Net interest income	$	5,361		$	5,247
Total revenue		9,046			8,687
Net interest yield		3.52	%		3.85	%
Net interest yield without taxable-equivalent income		3.45			3.81
Efficiency Ratio		52.14			51.74
Efficiency ratio without taxable-equivalent income		53.03			52.30
Reconciliation of net income to shareholder value added
Net income	$	2,424		$	2,179
Amortization expense		54			55
Capital charge		(1,338	)		(1,402	)
Shareholder value added		1,140			832

(1) Fully taxable-equivalent (FTE) in a non-GAAP performance measure used by management in operating the business which management believes provides investors with a more accurate picture of the interest margin for comparative purposes.

EX-99.2

Exhibit 99.2

Supplemental Information

First Quarter 2003

April 14, 2003

This information is preliminary and based on company data available at the time of the presentation. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America does not undertake an obligation to, and disclaims any duty to, correct or update any of the information provided. Any forward-looking statements in this information are subject to the forward-looking language contained in Bank of America's reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC's website (www.sec.gov) or at Bank of America's website (www.bankofamerica.com). Bank of America's future financial performance is subject to risks and uncertainties as described in its SEC filings.

Bank of America Corporation

Results Overview

l Diluted EPS of $1.59, up 15% over same period last year, down 6% from prior quarter. Net income in fourth quarter 2002 included $.32 per share in tax benefits related to the settlement of federal income tax returns through 1999.

l Diversity of businesses produced fee-based revenue growth across all businesses of 7% versus prior quarter and first quarter a year ago.

l Net interest income was up 1% over first quarter 2002 but down 3% from the fourth quarter, as expected, due to the rate environment.

l Net charge-offs declined $332 million from the prior quarter.

l Nonperforming asset levels declined 4% below year-end 2002 levels.

l Growth in consumer loans of 21% and deposit levels of 8% over the first quarter 2002 continues to benefit from improved quality and productivity initiatives.

l Net new checking account growth of 243,000 in first quarter doubled the level of prior year quarter.

l Banking center product sales have grown more than 20% in the most recent quarter.

l Banc of America Securities continues to gain important product market share gains in investment banking.

1

Bank of America Corporation

Consolidated Financial Highlights

(Dollars in millions, except per share information; shares in thousands)

	First Quarter 2003			Fourth Quarter 2002			Third Quarter 2002			Second Quarter 2002			First Quarter 2002
Income statement
Total revenue	$	8,894		$	8,804		$	8,522		$	8,575		$	8,593
Provision for credit losses		833			1,165			804			888			840
Gains on sales of securities		273			304			189			93			44
Noninterest expense		4,717			4,832			4,620			4,490			4,494
Income tax expense		1,193			497			1,052			1,069			1,124
Net income		2,424			2,614			2,235			2,221			2,179
Diluted earnings per common share		1.59			1.69			1.45			1.40			1.38
Average diluted common shares outstanding		1,526,288			1,542,482			1,546,347			1,592,250			1,581,848
Cash dividends paid per common share	$	0.64		$	0.64		$	0.60		$	0.60		$	0.60
Performance ratios
Return on average assets		1.38	%		1.49	%		1.33	%		1.38	%		1.39	%
Return on average common shareholders’ equity		19.92			21.58			19.02			18.47			18.64
Book value per share of common stock	$	33.38		$	33.49		$	32.07		$	31.47		$	31.15
Market price per share of common stock:
High for the period	$	72.50		$	71.99		$	71.94		$	77.08		$	69.61
Low for the period		64.26			53.98			57.90			66.82			57.51
Closing price		66.84			69.57			63.80			70.36			68.02
Market capitalization		100,095			104,403			95,838			106,642			105,058
Number of banking centers		4,202			4,208			4,226			4,232			4,246
Number of ATM’s		13,266			13,013			12,489			12,827			13,161
Full-time equivalent employees		132,583			133,944			134,135			135,489			137,240

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

2

Bank of America Corporation

Supplemental Financial Data and Reconciliations to GAAP Financial Measures

(Dollars in millions)

Certain non-GAAP (generally accepted accounting principles) performance measures and ratios, including shareholder value added and taxable-equivalent net interest income, net interest yield and operating efficiency calculated on a taxable-equivalent basis are used in managing the business. Management believes that these measures provide users of this financial information a more accurate picture of the interest margin for comparative purposes. Other companies may define or calculate supplemental financial data differently. See the Table below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended March 31, 2003, December 31, 2002, September 30, 2002, June 30, 2002, and March 31, 2002.

Management reviews net interest income on a taxable-equivalent basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a taxable-equivalent basis is also used in the calculation of the efficiency ratio and the net interest yield. The efficiency ratio, which is calculated by dividing noninterest expense by total revenue, measures how much it costs to produce one dollar of revenue. Net interest income on a taxable-equivalent basis is also used in business segment reporting.

	First Quarter 2003			Fourth Quarter 2002			Third Quarter 2002			Second Quarter 2002			First Quarter 2002
Net interest income
Taxable-equivalent basis data
Net interest income	$	5,361		$	5,537		$	5,465		$	5,262		$	5,247
Total revenue		9,046			8,967			8,685			8,743			8,687
Net interest yield		3.52	%		3.66	%		3.75	%		3.75	%		3.85	%
Net interest yield without taxable-equivalent income		3.45			3.54			3.63			3.63			3.81
Efficiency ratio		52.14			53.90			53.19			51.34			51.74
Efficiency ratio without taxable-equivalent income		53.03			54.90			54.21			52.35			52.30
Reconciliation of net income to shareholder value added
Net income		2,424		$	2,614		$	2,235		$	2,221		$	2,179
Amortization expense		54			54			54			55			55
Capital charge		(1,338	)		(1,454	)		(1,409	)		(1,442	)		(1,402	)
Shareholder value added		1,140			1,214			880			834			832

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

3

Bank of America Corporation

Consolidated Statement of Income

(Dollars in millions, except per share information; shares in thousands)

	First Quarter 2003			Fourth Quarter 2002			Third Quarter 2002			Second Quarter 2002			First Quarter 2002
Interest income
Interest and fees on loan and leases	$	5,348		$	5,502		$	5,553		$	5,530		$	5,445
Interest and dividends on securities		778			1,061			1,104			924			946
Federal funds sold and securities purchased under agreements to resell		194			208			177			270			215
Trading account assets		1,042			979			1,006			948			878
Other interest income		363			371			345			312			387
Total interest income		7,725			8,121			8,185			7,984			7,871
Interest expense
Deposits		1,183			1,292			1,414			1,384			1,344
Short-term borrowings		453			557			526			529			477
Trading account liabilities		308			289			342			344			285
Long-term debt		572			609			601			633			612
Total interest expense		2,516			2,747			2,883			2,890			2,718
Net interest income		5,209			5,374			5,302			5,094			5,153
Noninterest income
Consumer service charges		777			802			761			732			691
Corporate service charges		577			571			586			566			567
Total service charges		1,354			1,373			1,347			1,298			1,258
Consumer investment and brokerage services		378			370			373			420			381
Corporate investment and brokerage services		165			171			174			178			170
Total investment and brokerage services		543			541			547			598			551
Mortgage banking income		405			209			220			138			195
Investment banking income		378			422			318			464			341
Equity investment gains (losses)		(68	)		(54	)		(216	)		(36	)		26
Card income		681			736			686			621			577
Trading account profits		114			99			71			263			345
Other income		278			104			247			135			147
Total noninterest income		3,685			3,430			3,220			3,481			3,440
Total revenue		8,894			8,804			8,522			8,575			8,593
Provision for credit losses		833			1,165			804			888			840
Gains on sales of securities		273			304			189			93			44
Noninterest expense
Personnel		2,459			2,482			2,368			2,386			2,446
Occupancy		472			450			457			441			432
Equipment		284			292			291			279			262
Marketing		230			203			210			170			170
Professional fees		125			186			126			122			91
Amortization of intangibles		54			54			54			55			55
Data processing		266			291			295			226			205
Telecommunications		124			120			119			123			119
Other general operating		703			754			700			688			714
Total noninterest expense		4,717			4,832			4,620			4,490			4,494
Income before income taxes		3,617			3,111			3,287			3,290			3,303
Income tax expense		1,193			497			1,052			1,069			1,124
Net income	$	2,424		$	2,614		$	2,235		$	2,221		$	2,179
Net income available to common shareholders	$	2,423		$	2,613		$	2,233		$	2,220		$	2,178
Per common share information
Earnings	$	1.62		$	1.74		$	1.49		$	1.45		$	1.41
Diluted earnings	$	1.59		$	1.69		$	1.45		$	1.40		$	1.38
Dividends	$	0.64		$	0.64		$	0.60		$	0.60		$	0.60
Average common shares issued and outstanding		1,499,405			1,499,557			1,504,017			1,533,783			1,543,471
Average diluted common shares issued and outstanding		1,526,288			1,542,482			1,546,347			1,592,250			1,581,848

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

4

Bank of America Corporation

Consolidated Balance Sheet

(Dollars in millions)

	March 31 2003			December 31 2002			March 31 2002
Assets
Cash and cash equivalents	$	25,069		$	24,973		$	22,444
Time deposits placed and other short-term investments		5,523			6,813			7,056
Federal funds sold and securities purchased under agreements to resell		49,809			44,878			40,771
Trading account assets		65,733			63,996			58,569
Derivative assets		35,409			34,310			19,116
Securities:
Available-for-sale		75,511			68,122			74,306
Held-to-maturity		927			1,026			1,037
Total securities		76,438			69,148			75,343
Loans and leases		343,412			342,755			331,210
Allowance for credit losses		(6,853	)		(6,851	)		(6,869	)
Loans and leases, net of allowance for credit losses		336,559			335,904			324,341
Premises and equipment, net		6,643			6,717			6,748
Mortgage banking assets		1,995			2,110			4,104
Goodwill		11,396			11,389			10,950
Core deposit intangibles and other intangibles		1,065			1,095			1,256
Other assets		64,126			59,125			49,223
Total assets	$	679,765		$	660,458		$	619,921
Liabilities
Deposits in domestic offices:
Noninterest-bearing	$	121,127		$	122,686		$	108,409
Interest-bearing		242,287			232,320			224,630
Deposits in foreign offices:
Noninterest-bearing		2,331			1,673			1,677
Interest-bearing		29,431			29,779			32,484
Total deposits		395,176			386,458			367,200
Federal funds purchased and securities sold under agreements to repurchase		72,976			65,079			48,545
Trading account liabilities		23,578			25,574			25,258
Derivative liabilities		22,876			23,566			12,053
Commercial paper and other short-term borrowings		29,729			25,234			21,992
Accrued expenses and other liabilities		15,905			17,052			31,138
Long-term debt		63,442			61,145			60,036
Trust preferred securities		6,031			6,031			5,530
Total liabilities		629,713			610,139			571,752
Shareholders’ equity
Preferred stock, $0.01 par value; authorized—100,000,000 shares; issued and     outstanding 1,336,200; 1,356,749; and 1,452,249 shares		57			58			62
Common stock, $0.01 par value; authorized—5,000,000,000 shares; issued and     outstanding 1,497,530,740; 1,500,691,103; and 1,544,521,073 shares		127			496			3,949
Retained earnings		49,978			48,517			44,245
Accumulated other comprehensive income/(loss)		74			1,232			(72	)
Other		(184	)		16			(15	)
Total shareholders’ equity		50,052			50,319			48,169
Total liabilities and shareholders’ equity	$	679,765		$	660,458		$	619,921

5

Bank of America Corporation

Capital Management

(Dollars in millions)

	1Q02			2Q02			3Q02			4Q02			1Q03*
Tier 1 capital	$	42,078		$	41,097		$	41,732		$	43,105		$	43,821
Total capital		64,158			63,108			63,505			65,169			65,695
Net risk-weighted assets		496,227			508,008			513,085			524,175			534,722
Tier 1 capital ratio		8.48	%		8.09	%		8.13	%		8.22	%		8.20	%
Total capital ratio		12.93			12.42			12.38			12.43			12.29
Ending equity / ending assets		7.77			7.48			7.31			7.62			7.36
Ending capital / ending assets		8.66			8.35			8.22			8.53			8.25
Average equity / average assets		7.44			7.47			6.97			6.91			6.92

*Preliminary

Share Repurchase Program

18 million common shares were repurchased in the first quarter of 2003 as a part of ongoing share repurchase programs.

135 million shares remain outstanding under the current authorized program (133 million net of outstanding put options).

15 million shares were issued in the first quarter of 2003, mostly due to stock incentive plans.

6

Bank of America Corporation

Average Balances and Interest Rates—Taxable-Equivalent Basis

(Dollars in millions)

	First Quarter 2003						Fourth Quarter 2002						First Quarter 2002
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Earning assets
Time deposits placed and other short-term investments	$	6,987	$	43	2.49	%	$	8,853	$	56	2.49	%	$	10,242	$	61	2.43	%
Federal funds sold and securities purchased under agreements to resell		57,873		194	1.35			49,169		208	1.68			44,682		215	1.94
Trading account assets		99,085		1,053	4.27			84,181		994	4.71			70,613		888	5.06
Securities(1)		67,784		793	4.69			83,751		1,078	5.15			73,542		963	5.24
Loans and leases(2):
Commercial—domestic		103,663		1,836	7.18			105,333		1,777	6.70			116,160		1,978	6.90
Commercial—foreign		18,876		156	3.35			20,538		180	3.48			21,917		226	4.17
Commercial real estate—domestic		19,955		215	4.37			20,359		245	4.77			22,251		275	5.01
Commercial real estate—foreign		301		3	3.88			426		4	3.93			389		4	4.00
Total commercial		142,795		2,210	6.27			146,656		2,206	5.97			160,717		2,483	6.26
Residential mortgage		113,695		1,582	5.59			108,019		1,699	6.28			81,104		1,389	6.88
Home equity lines		23,054		267	4.70			23,347		300	5.10			22,010		294	5.42
Direct/Indirect consumer		31,393		503	6.49			30,643		523	6.76			30,360		550	7.34
Consumer finance		8,012		154	7.76			8,943		174	7.75			12,134		255	8.46
Credit card		24,684		644	10.57			23,535		613	10.33			19,383		490	10.26
Foreign consumer		2,029		17	3.45			1,956		17	3.48			2,093		19	3.71
Total consumer		202,867		3,167	6.30			196,443		3,326	6.74			167,084		2,997	7.24
Total loans and leases		345,662		5,377	6.29			343,099		5,532	6.41			327,801		5,480	6.76
Other earning assets		35,701		417	4.71			32,828		417	5.07			22,231		358	6.52
Total earning assets(3)		613,092		7,877	5.18			601,881		8,285	5.48			549,111		7,965	5.86
Cash and cash equivalents		21,699						21,242						22,037
Other assets, less allowance for credit losses		78,508						72,345						66,530
Total assets	$	713,299					$	695,468					$	637,678
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	22,916	$	34	0.59	%	$	22,142	$	35	0.63	%	$	20,716	$	33	0.64	%
NOW and money market deposit accounts		142,338		291	0.83			137,229		325	0.94			127,218		335	1.07
Consumer CDs and IRAs		66,937		695	4.21			66,266		728	4.36			69,359		730	4.27
Negotiable CDs, public funds and other time deposits		3,598		16	1.78			3,400		17	1.97			4,671		32	2.82
Total domestic interest-bearing deposits		235,789		1,036	1.78			229,037		1,105	1.91			221,964		1,130	2.06
Foreign interest-bearing deposits(4)
Banks located in foreign countries		14,218		80	2.27			15,286		104	2.70			15,464		107	2.79
Governments and official institutions		1,785		6	1.31			1,737		7	1.68			2,904		14	1.96
Time, savings, and other		18,071		61	1.38			17,929		76	1.68			19,620		93	1.93
Total foreign interest-bearing deposits		34,074		147	1.75			34,952		187	2.12			37,988		214	2.29
Total interest-bearing deposits		269,863		1,183	1.78			263,989		1,292	1.94			259,952		1,344	2.10
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings		123,041		453	1.49			123,434		558	1.79			86,870		477	2.23
Trading account liabilities		34,858		308	3.58			30,445		289	3.77			31,066		285	3.72
Long-term debt and trust preferred securities		67,399		572	3.40			65,702		609	3.71			67,694		612	3.62
Total interest-bearing liabilities(3)		495,161		2,516	2.05			483,570		2,748	2.26			445,582		2,718	2.47
Noninterest-bearing sources:
Noninterest-bearing deposits		115,897						117,392						104,451
Other liabilities		52,841						46,432						40,189
Shareholders’ equity		49,400						48,074						47,456
Total liabilities and shareholders’ equity	$	713,299					$	695,468					$	637,678
Net interest spread					3.13						3.22						3.39
Impact of noninterest-bearing sources					0.39						0.44						.46
Net interest income/yield on earning assets			$	5,361	3.52	%			$	5,537	3.66	%			$	5,247	3.85	%

(1) The average balance and yield on securities are based on the average of historical amortized cost balances.

(2) Nonperforming loans are included in the respective average loan balances. Income on such nonperforming loans is recognized on a cash basis.

(3) Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $563 in the first quarter of 2003 and $517 and $560 in the fourth and first quarters of 2002, respectively. These amounts were substantially offset by corresponding decreases in the income earned on the underlying assets. Interest expense includes the impact of interest rate risk management contracts, which (increased) decreased interest expense on the underlying liabilities $(46) in the first quarter of 2003 and $(62) and $55 in the fourth and first quarters of 2002, respectively. These amounts were substantially offset by corresponding decreases or increases in the interest paid on the underlying liabilities.

(4) Primarily consists of time deposits in denominations of $100,000 or more.

7

8

Bank of America Corporation

Consumer and Commercial Banking Segment Results

(Dollars in millions)

	Quarterly
	1 Qtr 03			4 Qtr 02			3 Qtr 02			2 Qtr 02			1 Qtr 02
Key Measures
Total revenue*	$	6,033		$	6,192		$	6,051		$	5,723		$	5,650
Provision for credit losses		488			510			420			449			427
Net income		1,591			1,721			1,679			1,587			1,556
Shareholder value added		1,099			1,169			1,145			1,056			1,024
Return on average equity		32.6	%		34.7	%		34.9	%		33.1	%		32.4	%
Efficiency ratio*		50.0			47.5			49.4			48.3			49.1
Selected Average Balance
Sheet Components
Total loans and leases	$	185,779		$	184,161		$	182,083		$	181,955		$	181,415
Total deposits		295,654			292,259			283,769			280,161			276,655
Total earning assets		321,945			314,604			286,248			279,025			275,108
Period End (in billions)
Mortgage servicing portfolio	$	257.2		$	264.5		$	278.7		$	287.8		$	289.9
Mortgage originations
Retail		21.8			22.2			15.3			9.5			13.0
Wholesale		10.8			9.7			8.6			4.9			4.9

* Taxable-equivalent basis

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

9

Bank of America Corporation

E-Commerce & BankofAmerica.com

	Bank of America has the largest active online banking customer base with over 5.2 million subscribers. This represents an active customer penetration rate of 35%. Bank of America uses a strict Active User standard—customers must have used our online services within the last 90 days. 2.0 million active bill pay users paid over $9.5 billion worth of bills this quarter. The number of customers who sign up and use Bank of America Bill Pay Service continues to far surpass that of any other financial institution. Currently, 225 companies are presenting nearly 3.0 million e-bills per quarter.

10

Bank of America Corporation

Consumer Credit Card Results

Included within Consumer Products

(Dollars in millions)

	Quarterly
	1 Qtr 03			4 Qtr 02			3 Qtr 02			2 Qtr 02			1 Qtr 02
Key Measures
Outstandings:
Held (Period-End)	$	24,819		$	24,729		$	23,062		$	21,155		$	19,535
Managed (Period-End)		29,064			29,461			28,057			27,089			26,558
Held (Average)		24,684			23,535			22,263			20,402			19,383
Managed (Average)		29,161			28,406			27,540			26,902			26,539
Managed Income Statement:
Total revenue	$	965		$	943		$	895		$	806		$	826
Provision for credit losses		409			386			392			393			371
Noninterest expense		275			244			254			249			244
Income before income taxes		281			313			249			164			211
Shareholder Value Added	$	128		$	152		$	114		$	62		$	92
Credit Quality:
Held:
Charge-off $	$	323		$	299		$	285		$	269		$	241
Charge-off %		5.31	%		5.03	%		5.09	%		5.28	%		5.05	%
Managed:
Losses $	$	378		$	357		$	356		$	375		$	355
Losses %		5.25	%		4.99	%		5.13	%		5.59	%		5.43	%
Managed Delinquency %:
30+		4.18	%		3.94	%		3.63	%		3.78	%		4.16	%
90+		1.91			1.71			1.66			1.76			1.95

11

Bank of America Corporation

Global Corporate and Investment Banking Segment Results

(Dollars in millions)

	Quarterly
Key Measures	1 Qtr 03			4 Qtr 02			3 Qtr 02			2 Qtr 02			1 Qtr 02
Total revenue*	$	2,343		$	2,085		$	2,001		$	2,306		$	2,285
Provision for credit losses		272			524			203			216			264
Net income		481			206			385			509			457
Shareholder value added		203			(120	)		62			183			123
Return on average equity		18.6	%		7.4	%		14.0	%		18.3	%		16.0	%
Efficiency ratio*		56.5			60.4			60.5			56.2			57.1
Selected Average Balance
Sheet Components
Total loans and leases	$	56,521		$	60,558		$	61,091		$	64,172		$	67,018
Total deposits		67,315			65,879			66,163			63,770			63,212
Total earning assets		226,122			207,850			203,596			201,458			192,570

* Taxable-equivalent basis

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

12

Source: Thomson Financial

Significant US market share gains

Largest market share gain of the quarter was dollar-denominated convertible debt where market share quadrupled from 3.3% and an eighth place rank in the first quarter 2002 to 14.2% and a third place rank.

Mortgage-backed securities market share doubled from one year ago to finish with a 7.8% share and a seventh place rank.

Banc of America Securities maintained its second place market share ranking for both syndicated and leveraged lending while continuing its dominance in number of deals.

Common stock issuance market share moved form 2.3% to 4.1% while the ranking moved from 10th to 8th.

13

Bank of America Corporation

Asset Management Segment Results

(Dollars in millions)

	Quarterly
Key Measures	1 Qtr 03			4 Qtr 02			3 Qtr 02			2 Qtr 02			1 Qtr 02
Total revenue*	$	578		$	588		$	571		$	622		$	598
Provision for credit losses		(4	)		30			118			143			26
Net income		140			108			63			66			137
Shareholder value added		66			26			(14	)		(2	)		70
Return on average equity		20.3	%		15.5	%		9.6	%		11.4	%		23.9	%
Efficiency ratio*		63.3			67.3			63.8			61.0			59.9
Selected Average Balance
Sheet Components
Total loans and leases	$	22,683		$	22,950		$	23,637		$	24,308		$	24,794
Total deposits		12,859			12,531			11,967			11,776			11,837
Total earning assets		23,415			23,693			24,238			24,907			25,445
Period End (in billions)
Assets under management	$	297.0		$	310.4		$	271.9		$	295.2		$	314.9
Client brokerage assets		90.8			90.8			87.1			90.5			96.6
Assets in custody		45.1			46.6			42.1			41.0			46.0
Total client assets	$	432.9		$	447.8		$	401.1		$	426.7		$	457.5

* Taxable-equivalent basis

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

14

Bank of America Corporation

Equity Investments Segment Results

(Dollars in millions)

	Quarterly
Key Measures	1 Qtr 03			4 Qtr 02			3 Qtr 02			2 Qtr 02			1 Qtr 02
Total revenue*	($	107	)	($	100	)	($	233	)	($	84	)	($	28	)
Provision for credit losses		1			7			—			—			—
Net income		(86	)		(83	)		(161	)		(55	)		(32	)
Shareholder value added		(141	)		(146	)		(223	)		(120	)		(94	)
Return on average equity		(16.7	)%		(15.6	)%		(30.7	)%		(10.1	)%		(6.2	)%
Efficiency ratio*		(24.2	)		(27.5	)		(11.6	)		(10.5	)		(98.4	)
Selected Average Balance
Sheet Components
Total loans and leases	$	434		$	438		$	446		$	448		$	427
Total deposits		—			—			—			—			—
Total earning assets		434			438			446			448			433
Period End
Investment balances for principal investing	$	5,435		$	5,395		$	5,429		$	5,429		$	5,520

* Taxable-equivalent basis

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

15

Bank of America Corporation

Corporate Other Results⁽¹⁾

(Dollars in millions)

	Quarterly
Key Measures	1 Qtr 03			4 Qtr 02		3 Qtr 02			2 Qtr 02			1 Qtr 02
Total revenue*	$	199		$	202	$	295		$	176		$	182
Provision for credit losses		76			94		63			80			123
Net income (2)		298			662		269			114			61
Shareholder value added		(87	)		285		(90	)		(283	)		(291	)
Selected Average Balance
Sheet Components
Total loans and leases	$	80,245		$	74,992	$	73,228		$	64,802		$	54,147
Total deposits		9,932			10,713		12,034			10,279			12,699
Total earning assets		161,018			171,269		158,047			138,771			132,263

* Taxable-equivalent basis

(1) Corporate Other consists primarily of gains and losses associated with managing the balance sheet of the Corporation, certain consumer finance and commercial lending businesses being liquidated, and certain residential mortgages originated by the mortgage group or otherwise acquired and held for asset/liability management purposes.

(2) Includes $488 tax benefit in the fourth quarter of 2002 related to the settlement of federal income tax returns through 1999.

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

16

Bank of America Corporation

Net Charge-offs and Net Charge-off Ratios

(Dollars in millions)

	1Q02				2Q02				3Q02				4Q02				1Q03
	Amt.		Ratio		Amt.		Ratio		Amt.		Ratio		Amt.		Ratio		Amt.			Ratio
Commercial—domestic	$	370	1.29	%	$	383	1.38	%	$	240	0.90	%	$	478	1.80	%	$	239		0.94	%
Commercial—foreign		49	0.90			119	2.23			148	2.77			205	3.95			120		2.57
Commercial real estate—domestic		14	0.25			8	0.14			6	0.12			9	0.20			9		0.18
Total commercial		433	1.09			510	1.32			394	1.05			692	1.87			368		1.04
Residential mortgage		11	0.05			8	0.03			5	0.02			18	0.07			2		0.01
Home equity lines		8	0.15			7	0.12			5	0.08			6	0.10			6		0.11
Direct/indirect consumer		64	0.86			38	0.50			48	0.63			60	0.78			56		0.72
Consumer finance		75	2.49			49	1.77			54	2.13			77	3.44			68		3.42
Credit card		241	5.05			269	5.28			285	5.09			299	5.03			323		5.31
Other consumer domestic		7	n/m			7	n/m			11	n/m			11	n/m			9		n/m
Foreign consumer		1	0.16			—	—			2	0.32			2	0.38			1		0.20
Total consumer		407	0.99			378	0.84			410	0.85			473	0.95			465		0.93
Total net charge-offs	$	840	1.04		$	888	1.06		$	804	0.94		$	1,165	1.35		$	833		0.98
By Business Segment:
Consumer & commercial banking	$	427	0.95	%	$	449	0.99	%	$	420	0.92	%	$	509	1.10	%	$	488		1.06	%
Global corporate & investment banking		264	1.60			216	1.35			203	1.32			526	3.44			272		1.96
Asset management		26	0.44			143	2.37			118	1.99			30	0.52			(4	)	(0.06	)
Equity investments		—	—			—	—			—	—			7	6.26			1		0.72
Corporate other		123	0.92			80	0.50			63	0.34			93	0.50			76		0.38
Total net charge-offs	$	840	1.04		$	888	1.06		$	804	0.94		$	1,165	1.35		$	833		0.98

Loans are classified as domestic or foreign based upon the domicile of the borrower.

17

Bank of America Corporation

Nonperforming Assets

(Dollars in millions)

	1Q02			2Q02			3Q02			4Q02			1Q03
Commercial—domestic	$	3,207		$	2,847		$	3,132		$	2,781		$	2,605
Commercial—foreign		583			980			854			1,359			1,279
Commercial real estate—domestic		216			202			172			161			173
Commercial real estate—foreign		2			3			3			3			3
Total commercial		4,008			4,032			4,161			4,304			4,060
Residential mortgage		477			503			585			612			628
Home equity lines		73			64			57			66			63
Direct/Indirect consumer		26			27			31			30			28
Consumer finance		8			8			8			19			18
Foreign consumer		9			8			7			6			9
Total consumer		593			610			688			733			746
Total nonperforming loans		4,601			4,642			4,849			5,037			4,806
Foreclosed properties		391			297			282			225			227
Total nonperforming assets(1)	$	4,992		$	4,939		$	5,131			5,262			5,033
Loans past due 90 days or more and still accruing	$	662		$	605		$	726		$	764		$	808
Nonperforming Assets / Total Assets		0.81	%		0.77	%		0.78	%		0.80	%		0.74	%
Nonperforming Assets / Total Loans, Leases and Foreclosed Properties		1.51			1.45			1.50			1.53			1.46
Nonperforming Loans / Total Loans and Leases		1.39			1.36			1.42			1.47			1.40
Allowance for Loan Losses	$	6,869		$	6,873		$	6,861		$	6,851		$	6,853
Allowance / Total Loans		2.07	%		2.02	%		2.01	%		2.00	%		2.00	%
Allowance / Total Nonperforming Loans		149			148			142			136			143

Loans are classified as domestic or foreign based upon the domicile of the borrower.

(1) Balances do not include $174, $120, $184, $221, and $304 of nonperforming assets included in other assets at March 31, 2003, December 31, 2002, September 30, 2002, June 30, 2002, and March 31, 2002, respectively.

18

Bank of America Corporation

Significant Industry Non-Real Estate Outstanding Commercial Loans and Leases

(Dollars in millions)

	March 31, 2003		December 31, 2002		Increase/(Decrease) from 12/31/02
Retailing	$	10,710	$	10,165	5	%
Transportation		8,189		8,030	2
Leisure and sports, hotels and restaurants		7,986		8,139	(2	)
Materials		7,820		7,972	(2	)
Food, beverage and tobacco		7,563		7,335	3
Diversified financials		7,507		8,344	(10	)
Capital goods		7,098		7,088	0
Commercial services and supplies		6,216		6,449	(4	)
Education and government		5,565		5,206	7
Utilities		4,938		5,590	(12	)
Media		4,883		5,911	(17	)
Health care equipment and services		3,987		3,912	2
Energy		3,003		3,076	(2	)
Telecommunications services		2,796		3,105	(10	)
Consumer durables and apparel		2,545		2,591	(2	)
Religious and social organizations		2,512		2,426	4
Banks		1,602		1,881	(15	)
Insurance		1,409		1,616	(13	)
Technology hardware and equipment		1,305		1,368	(5	)
Food and drug retailing		1,232		1,344	(8	)
Other(1)		22,591		23,417	(4	)
Total	$	121,457	$	124,965	(3	)%

(1) At March 31, 2003 and December 31, 2002, Other includes $9,403 and $9,090, respectively, of loans outstanding to individuals and trusts, representing 2.7% of total outstanding loans and leases for both period ends. The remaining balance in Other includes loans to industries which primarily include automobiles and components, software and services, pharmaceuticals and biotechnology, and household and personal products.

19

Bank of America Corporation

Selected Emerging Markets

(Dollars in Millions)

	Loans and Loan Commitments		Other Financing(1)		Derivative Assets		Securities/ Other Investments(2)		Total Cross- border Exposure(3)		Gross Local Country Exposure(4)		Total Foreign Exposure March 31, 2003		Increase/ (Decrease) from December 31, 2002
Region/Country
Asia
China	$	59	$	9	$	40	$	27	$	135	$	62	$	197	$	(47	)
Hong Kong(5)		294		57		88		137		576		3,395		3,971		167
India		392		59		73		32		556		899		1,455		82
Indonesia		58		—		16		30		104		2		106		(14	)
Korea (South)		227		346		34		23		630		902		1,532		296
Malaysia		8		3		—		2		13		170		183		(57	)
Pakistan		6		—		—		—		6		—		6		(1	)
Philippines		28		19		3		20		70		58		128		(28	)
Singapore		118		15		189		3		325		1,464		1,789		121
Taiwan		321		201		32		7		561		556		1,117		28
Thailand		36		9		16		26		87		258		345		82
Other		3		17		1		—		21		80		101		5
Total	$	1,550	$	735	$	492	$	307	$	3,084	$	7,846	$	10,930	$	634
Central and Eastern Europe
Russian Federation	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	(5	)
Turkey		29		5		—		19		53		—		53		(5	)
Other		24		32		32		46		134		—		134		(167	)
Total	$	53	$	37	$	32	$	65	$	187	$	—	$	187	$	(177	)
Latin America
Argentina	$	210	$	45	$	2	$	88	$	345	$	93	$	438	$	(27	)
Brazil		289		226		42		87		644		428		1,072		(103	)
Chile		111		24		7		10		152		—		152		11
Colombia		80		7		5		4		96		—		96		8
Mexico		852		154		125		497		1,628		312		1,940		351
Venezuela		112		2		—		102		216		—		216		(16	)
Other		108		91		—		40		239		—		239		14
Total	$	1,762	$	549	$	181	$	828	$	3,320	$	833	$	4,153	$	238
Total	$	3,365	$	1,321	$	705	$	1,200	$	6,591	$	8,679	$	15,270	$	695

(1) Includes acceptances, standby letters of credit, commercial letters of credit and formal guarantees.

(2) Amounts outstanding in the table above for Philippines, Argentina, Mexico, Venezuela and Latin America Other have been reduced by $12, $85, $332, $137 and $38, respectively, at March 31, 2003, and $12, $90, $505, $131 and $37, respectively, at December 31, 2002. Such amounts represent the fair value of U.S. Treasury securities held as collateral outside the country of exposure.

(3) Cross-border exposure includes amounts payable to the Corporation by residents of countries other than the one in which the credit is booked, regardless of the currency in which the claim is denominated, consistent with FFIEC reporting rules.

(4) Gross local country exposure includes amounts payable to the Corporation by residents of countries in which the credit is booked, regardless of the currency in which the claim is denominated. Management does not net local funding or liabilities against local exposures as allowed by the FFIEC.

(5) Gross local country exposure to Hong Kong consisted of $1,811 of consumer loans and $1,584 of commercial exposure at March 31, 2003. The consumer loans were collateralized primarily by residential real estate. The commercial exposure was primarily to local clients and was diversified across many industries.

20