-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AAzDAkSfWeUS33k+79SmhRD6MhzVrGCrJi0NWGUs69BwxMxhPU3R+kPCtIaeHNEQ 979CS2cmWgT7RGWyB7oIug== 0001021408-02-005250.txt : 20020416 0001021408-02-005250.hdr.sgml : 20020416 ACCESSION NUMBER: 0001021408-02-005250 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20020415 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20020415 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANK OF AMERICA CORP /DE/ CENTRAL INDEX KEY: 0000070858 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 560906609 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06523 FILM NUMBER: 02610046 BUSINESS ADDRESS: STREET 1: NATIONSBANK CORPORATE CENTER STREET 2: 100 N TRYON ST CITY: CHARLOTTE STATE: NC ZIP: 28255 BUSINESS PHONE: 8882793457 MAIL ADDRESS: STREET 1: NATIONALSBANK CORPORATE CENTER STREET 2: NC1007 19 04 CITY: CHARLOTTE STATE: NC ZIP: 28255 FORMER COMPANY: FORMER CONFORMED NAME: NCNB CORP DATE OF NAME CHANGE: 19920107 FORMER COMPANY: FORMER CONFORMED NAME: NATIONSBANK CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: BANKAMERICA CORP/DE/ DATE OF NAME CHANGE: 19981022 8-K 1 d8k.txt FORM 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 15, 2002 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) (888) 279-3457 (Registrant's telephone number, including area code) ITEM 5. OTHER EVENTS. On April 15, 2002, Bank of America Corporation (the "Registrant") announced financial results for the first quarter ended March 31, 2002, reporting earnings of $2.18 billion and diluted earnings per common share of $1.38. A copy of the press release announcing the Registrant's results for the first quarter ended March 31, 2002 is attached hereto as Exhibit 99.1 and incorporated by reference herein. 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 15, 2002 with respect to the Registrant's financial results for the first quarter ended March 31, 2002 99.2 Supplemental Information prepared for use on April 15, 2002 in connection with financial results for the first quarter ended March 31, 2002 ITEM 9. REGULATION FD DISCLOSURE. On April 15, 2002, the Registrant held an investor conference and webcast to disclose financial results for the first quarter ended March 31, 2002. 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 April 15, 2002, and the Registrant does not assume any obligation to correct or update said information in the future. 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 15, 2002 EXHIBIT INDEX EXHIBIT NO. DESCRIPTION OF EXHIBIT 99.1 Press Release dated April 15, 2002 with respect to the Registrant's financial results for the first quarter ended March 31, 2002 99.2 Supplemental Information prepared for use on April 15, 2002 in connection with financial results for the first quarter ended March 31, 2002 EX-99.1 3 dex991.txt PRESS RELEASE DATED APRIL 15,2002 Exhibit 99.1 April 15, 2002 Investors may contact: Kevin Stitt, Bank of America, 704.386.5667 Lee McEntire, Bank of America, 704.388.6780 Media may contact: Shirley Norton, Bank of America, 704.386.8465 shirley.norton@bankofamerica.com Bank of America announces 20 percent increase in first quarter EPS Results driven by strong performance in Consumer and Commercial Banking CHARLOTTE - Bank of America Corporation today reported first quarter earnings of $2.18 billion, or $1.38 per share (diluted), a 20 percent increase in earnings per share from $1.87 billion, or $1.15 per share, a year ago. The return on common equity was 18.6 percent. (In 2002, new accounting rules under generally accepted accounting principles (GAAP) eliminated the amortization of goodwill. The impact of goodwill amortization to net income in the first quarter of 2001 was $159 million, or $.10 per share.) "We continued to benefit from our diversified business mix this quarter, which enabled us to generate double-digit earnings per share growth in the current economic environment," said Kenneth D. Lewis, chairman and chief executive officer. "Our results clearly demonstrate the progress we are making in the execution of our customer-focused strategy, the enhancements generated from our Six Sigma program and the improvement in our risk management processes." First quarter highlights (compared to a year ago) - ------------------------------------------------- Financial highlights - -------------------- . Shareholder Value Added (SVA) grew $153 million, or 23 percent, to $832 million. . The Tier 1 Capital Ratio rose 96 basis points to 8.61 percent. . Mortgage banking income grew 59 percent led by continued strength in origination volume and margins. . Corporate service charges grew 14 percent due to higher fees paid in a lower rate environment. More Page 2 Strategic highlights -------------------- . Active debit cards increased 9 percent and purchase volumes rose 14 percent from a year ago, due to increased customer activity. Average managed outstandings in bankcard were up 15 percent from last year, driven by new account purchase volume and higher customer retention. . During the quarter, the company began to deploy LoanSolutions, a new end-to-end consumer real estate credit solution. This sophisticated sales tool will enable banking center employees to provide customers with point of sale loan decisions on a range of primary mortgages, as well as other real estate-related credit products. By the end of 2002, more than 3,000 banking centers in major markets will be able to offer customers loan products through LoanSolutions. . Average customer deposits grew 8 percent to $322 billion, as the company attracted new customers and deepened existing customer relationships. Period-end customer deposit levels exceeded loans, which lowers the company's cost of funding its balance sheet. . Net new checking accounts increased by more than 120,000 in the first quarter. . Active users of online banking climbed to 3.3 million, more than any other bank, while bill pay customers increased to more than 1 million. . In deepening relationships with key corporate clients and expanding its investment banking business, Banc of America Securities (BAS) gained market share in asset-backed securities, syndicated and leveraged loans and high-yield and high-grade debt issuance. Revenue - ------- Revenue grew 2 percent from the previous year to $8.69 billion. Fully taxable-equivalent net interest income rose 11 percent to $5.25 billion, as the company continued to benefit from low interest rates, a steeper yield curve and higher deposit levels, partially offset by reduced commercial loan levels. Combined, these factors resulted in a 46 basis-point improvement in the net interest yield to 3.85 percent. Noninterest income declined 9 percent to $3.44 billion, primarily due to lower trading activity and equity investment gains, which were both negatively impacted by the economic slowdown. In connection with its balance sheet management strategy, the company realized $44 million in securities gains. More Page 3 Efficiency - ---------- Excluding the impact of goodwill amortization, expenses remained essentially unchanged from a year ago at $4.49 billion. The efficiency ratio improved more than 100 basis points to 51.74 percent. Credit quality - -------------- Credit quality continued to be impacted by the economic slowdown. . Provision for credit losses of $840 million was essentially unchanged from $835 million last year. Provision was down 40 percent from $1.4 billion in the fourth quarter of 2001. . Net charge-offs were $840 million, or 1.04 percent of loans and leases, up from $772 million, or 0.81 percent, a year ago. Commercial charge-offs decreased $22 million from a year ago. An increase in consumer bankcard outstandings and personal bankruptcy filings along with the rise in unemployment contributed to a $90 million increase in consumer charge-offs from a year earlier. Total charge-offs decreased $354 million, or 30 percent, from the fourth quarter of 2001. . Nonperforming assets were $5.0 billion, or 1.51 percent of loans, leases and foreclosed properties at March 31, 2002, down from $5.9 billion, or 1.54 percent, a year earlier. The 15 percent decrease in nonperforming assets from a year ago is due to the exit of the subprime lending business and an aggressive program to shed problem credits. Nonperforming assets increased 1.7 percent, or $84 million, from the fourth quarter of 2001. . The allowance for credit losses was 2.07 percent of loans and leases on March 31, 2002, an increase in coverage of 27 basis points from 1.80 percent a year ago. The allowance for credit losses, at $6.9 billion, represented 149 percent of nonperforming loans, up from 123 percent from a year ago. The allowance for credit losses remained essentially unchanged from fourth quarter 2001. Capital management - ------------------ Total shareholders' equity was $48.2 billion at March 31, 2002, down slightly from a year ago and represented 7.77 percent of period-end assets of $620 billion. The Tier 1 Capital Ratio was 8.61 percent, an increase of 96 basis points from a year ago and 31 basis points from the December 31, 2001 level. During the quarter, Bank of America repurchased 31.2 million shares, representing an investment in Bank of America stock of approximately $2.0 billion. Average common shares outstanding were 1.54 billion in the first quarter, down 4 percent from 1.61 billion a year earlier and 2 percent from the fourth quarter of 2001. More Page 4 Consumer and Commercial Banking - ------------------------------- Consumer and Commercial Banking (CCB) earned $1.42 billion, up 11 percent from a year ago, excluding goodwill amortization. Total revenue grew 10 percent while expenses increased 7 percent, excluding goodwill amortization. Return on equity was 30.6 percent and SVA grew $151 million to $905 million. Net interest income increased 13 percent to $3.51 billion, driven by both consumer loan and deposit growth. Average loans grew 4 percent, led by consumer loan growth of 20 percent, primarily in residential first mortgage and credit card. Average customer deposits grew 7 percent, due to the continued success of the company's pricing strategy and as a result of consumers moving assets into deposit products with greater liquidity during the economic slowdown. Consumer deposit growth continued to be led by increases in money market savings and checking account balances. Noninterest income was up 5 percent to $1.97 billion, driven by higher commercial service charges and mortgage banking income. Global Corporate and Investment Banking - --------------------------------------- Global Corporate and Investment Banking (GCIB) earned $503 million, 13 percent below last year, excluding goodwill amortization. This was due to weak equity markets and a 7 percent increase in provision. Revenue declined 5 percent to $2.33 billion while expenses decreased 3 percent, excluding goodwill amortization. Return on equity was 17.8 percent and SVA decreased $9 million to $172 million. Net interest income was up 17 percent to $1.22 billion from a year ago, primarily driven by trading-related activities and lower funding costs. Total trading-related revenue in GCIB, which includes trading-related net interest income and trading fees, was $793 million, down 26 percent from last year's record results primarily due to declines in equity products. Investment banking income remained essentially unchanged at $328 million from last year, despite the challenging environment. The increase in fees from the strong demand for fixed income debt products coupled with a stable advisory business helped to offset lower demand for equity products resulting from the weakness in the equity markets. More Page 5 Asset Management - ---------------- Asset Management earnings increased slightly to $142 million from a year ago, excluding goodwill amortization, even with significantly higher credit costs. Revenue of $602 million was slightly below last year's results while expenses declined 7 percent, excluding goodwill amortization. Return on equity was 24.9 percent and SVA remained essentially unchanged at $75 million. Assets under management grew 10 percent, or $28 billion, to $315 billion, despite the impact of lower stock valuations. This increase was driven by the growth in the Nations Funds family of money market mutual funds. Equity Investments - ------------------ Equity Investments reported a loss of $32 million, compared to earnings of $33 million a year ago. Principal Investing reported cash gains of $150 million and portfolio impairments of $140 million. 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. The company enables customers to do their banking and investing whenever, wherever and however they choose through the nation's largest financial services network, including approximately 4,400 domestic offices and 13,000 ATMs, as well as 38 international offices serving clients in 190 countries, and an Internet Web site that provides online access for more than 3 million active users, more than any other bank. Bank of America stock (ticker: BAC) is 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/. NOTE: James H. Hance Jr., vice chairman and chief financial officer, will discuss first quarter results in a conference call at 10:00 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/. More Page 6 Forward Looking Statements - -------------------------- This press release contains forward-looking statements, including without limitation, the Corporation's financial conditions, results of operations and earnings outlook. These forward-looking statements involve certain risks and uncertainties. Actual conditions, results and earnings may differ materially from those contemplated by such forward-looking statements. Factors that could cause this difference 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) costs or difficulties related to the integration of acquisitions are greater than expected; 4) general economic conditions, internationally, nationally or in the states in which the company does business are less favorable than expected; 5) changes in the interest rate environment reduce interest margins and affect funding sources; 6) changes in market rates and prices may adversely affect the value of financial products; 7) legislation or regulatory requirements or changes may adversely affect the businesses in which the company is engaged; 8) litigation liabilities, including without limitation, costs, expenses, settlements and judgements, that may adversely affect the Corporation or its businesses; and 9) decisions to downsize, sell or close units or otherwise change the business mix of the company. For further information, please refer to the Bank of America reports filed with the SEC. Bank of America
Three months Ended March 31 ------------- ----------- 2002 2001 ------------- ----------- (Dollars in millions, except per share data; shares in thousands) Financial Summary /(1)/ - ---------------------- Earnings ....................................................................... $ 2,179 $ 1,870 Earnings per common share .................................................. 1.41 1.16 Diluted earnings per common share .......................................... 1.38 1.15 Dividends per common share ..................................................... 0.60 0.56 Closing market price per common share .......................................... 68.02 54.75 Average common shares issued and outstanding ................................... 1,543,471 1,608,890 Average diluted common shares issued and outstanding ........................... 1,581,848 1,631,099 Summary Income Statement /(1)/ - ----------------------------- (Taxable-equivalent basis) Net interest income ............................................................ $ 5,247 $ 4,721 Noninterest income ............................................................. 3,440 3,780 ----------- ---------- Total revenue .................................................................. 8,687 8,501 Provision for credit losses .................................................... (840) (835) Gains (losses) on sales of securities .......................................... 44 (8) Noninterest expense ............................................................ (4,494) (4,654) ----------- ---------- Income before income taxes ..................................................... 3,397 3,004 Income taxes - including taxable-equivalent basis adjustment ................... 1,218 1,134 ----------- ---------- Net income ..................................................................... $ 2,179 $ 1,870 =========== ========== Summary Average Balance Sheet - ----------------------------- Loans and leases................................................................ $ 327,801 $ 387,889 Managed loans and leases........................................................ 336,357 398,661 Securities...................................................................... 73,542 55,221 Earning assets.................................................................. 549,111 561,427 Total assets.................................................................... 637,678 648,698 Deposits........................................................................ 364,403 355,618 Shareholders' equity............................................................ 47,456 47,866 Common shareholders' equity..................................................... 47,392 47,794 Performance Indices /(1)/ - ------------------------ Return on average assets........................................................ 1.39% 1.17% Return on average common shareholders' equity................................... 18.64 15.86 Efficiency ratio................................................................ 51.74 54.73 Net interest yield.............................................................. 3.85 3.39 Shareholder value added ........................................................ $ 832 $ 679 Credit Quality - -------------- Net charge-offs................................................................. $ 840 $ 772 % of average loans and leases............................................... 1.04% 0.81% Managed bankcard net charge-offs as a % of average managed bankcard receivables................................................ 5.43 4.37
(1) First Quarter 2001 included goodwill amortization of $168 million. The impact on net income was $159 million, or $0.10 per share. Bank of America - Continued
March 31 ------------------------- 2002 2001 ------------ ----------- (Dollars in millions, except per share data; shares in thousands) Balance Sheet Highlights - ------------------------ Loans and leases..................................................... $ 331,210 $ 382,677 Securities........................................................... 75,343 50,378 Earning assets....................................................... 534,564 522,698 Total assets......................................................... 619,921 609,755 Deposits............................................................. 367,200 352,460 Shareholders' equity................................................. 48,169 48,886 Common shareholders' equity.......................................... 48,107 48,815 Per share........................................................ 31.15 30.47 Total equity to assets ratio (period end)............................ 7.77% 8.02% Risk-based capital ratios: Tier 1.......................................................... 8.61 7.65 Total........................................................... 13.11 11.84 Leverage ratio....................................................... 6.72 6.41 Period-end common shares issued and outstanding 1,544,521 1,601,984 Allowance for credit losses.......................................... $ 6,869 $ 6,900 Allowance for credit losses as a % of loans and leases............... 2.07% 1.80% Allowance for credit losses as a % of nonperforming loans............ 149 123 Nonperforming loans.................................................. $ 4,601 $ 5,620 Nonperforming assets/(1)/............................................ 4,992 5,897 Nonperforming assets as a % of: Total assets.................................................... .81% .97% Loans, leases and foreclosed properties......................... 1.51 1.54 Nonperforming loans as a % of loans and leases....................... 1.39 1.47 Other Data - ---------- Full-time equivalent employees....................................... 137,240 143,584 Number of banking centers............................................ 4,246 4,323 Number of ATM's...................................................... 13,161 12,843
BUSINESS SEGMENT RESULTS Three months ended March 31, 2002
Net Avg Loans Return on Total Revenue Income and Leases Equity ------------- --------- ----------- --------- Consumer and Commercial Banking.................... $ 5,487 $ 1,418 $ 183,882 30.6% Asset Management................................... 602 142 24,171 24.9 Global Corporate and Investment Banking............ 2,326 503 65,196 17.8 Equity Investments................................. (24) (32) 427 (6.2) Corporate Other.................................... 296 148 54,125 4.7
n/m = not meaningful (1) In the third quarter of 2001, $1.2 billion of nonperforming subprime real estate loans were transferred to loans held for sale as a result of the exit of subprime real estate lending business. EX-99.2 4 dex992.txt SUPPLEMENTAL INFORMATION DATED APRIL 15,2002 Exhibit 99.2 Bank of America(R) [LOGO](SM) Supplemental Information First Quarter 2002 April 15, 2002 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 Consolidated Financial Highlights
- ----------------------------------------------------------------------------------------------------------------------------- (Dollars in millions, except per share information; shares in thousands) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2002 2001 2001 2001 2001 --------------------------------------------------------------------- Operating Basis /(1)/ Income statement (taxable-equivalent basis) Total revenue /(2)/ $ 8,687 $ 8,903 $ 8,719 $ 8,858 $ 8,501 Provision for credit losses 840 1,401 856 800 835 Gains (losses) on sales of securities 44 393 97 (7) (8) Other noninterest expense 4,494 5,324 4,606 4,821 4,654 Income tax expense 1,218 514 1,263 1,207 1,134 Net income 2,179 2,057 2,091 2,023 1,870 Average diluted common shares issued and outstanding 1,581,848 1,602,886 1,634,063 1,632,964 1,631,099 Diluted earnings per common share /(3)/ $ 1.38 $ 1.28 $ 1.28 $ 1.24 $ 1.15 Performance ratios Return on average assets 1.39% 1.25% 1.29% 1.24% 1.17% Return on average common shareholders' equity 18.64 16.70 16.87 16.67 15.86 Efficiency ratio 51.74 59.80 52.82 54.44 54.73 Shareholder value added $ 832 $ 793 $ 824 791 $ 679 ============================================================================================================================= As Reported Income statement (taxable-equivalent basis) Total revenue /(2)/ $ 8,687 $ 8,903 $ 8,719 $ 8,858 $ 8,501 Provision for credit losses 840 1,401 1,251 800 835 Gains (losses) on sales of securities 44 393 97 (7) (8) Business exit costs - - 1,305 - - Other noninterest expense 4,494 5,324 4,606 4,821 4,654 Income tax expense 1,218 514 813 1,207 1,134 Net income 2,179 2,057 841 2,023 1,870 Diluted earnings per common share /(3)/ 1.38 1.28 0.51 1.24 1.15 Cash dividends paid per common share 0.60 0.60 0.56 0.56 0.56 Performance ratios Return on average assets 1.39% 1.25% 0.52% 1.24% 1.17% Return on average common shareholders' equity 18.64 16.70 6.78 16.67 15.86 Net interest yield 3.85 3.95 3.78 3.61 3.39 Book value per share $ 31.15 $ 31.07 $ 31.66 $ 30.75 $ 30.47 ============================================================================================================================= Market price per share of common stock: High for the period $ 69.61 $ 64.99 $ 65.54 $ 62.18 $ 55.94 Low for the period 57.51 52.10 50.25 48.65 45.00 Closing price 68.02 62.95 58.40 60.03 54.75 Market capitalization 105,058 98,158 92,396 96,116 87,709 Number of banking centers 4,246 4,253 4,259 4,259 4,323 Number of ATM's 13,161 13,113 12,986 12,860 12,843 Full-time equivalent employees 137,240 142,670 143,824 144,287 143,584
/(1)/ Operating basis excludes the following: provision for credit losses of $395 million and noninterest expense of $1.3 billion related to the exit of certain consumer finance businesses in the third quarter of 2001. /(2)/ Trading account profits for the first quarter of 2001 included the $83 million transition adjustment loss resulting from adoption of Statement ofFinancial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities," on January 1, 2001. /(3)/ Includes goodwill amortization of $.09 per share in the fourth quarter of 2001 and $.10 per share in the third, second and first quarters of 2001, respectively. Certain prior period amounts have been reclassified to conform to current period classifications. 1 Business Segment Operating Net Income First Quarter 2002 (Dollars in millions) [GRAPH] Consumer & Commercial Banking $1,418 65% Asset Management $ 142 6% Global Corporate & Investment Banking $ 503 23% Equity Investments $ (32) -1% Corporate Other $ 148 7% ---------------- $2,179 100% ================ [GRAPH] Consumer & Commercial Banking Banking Regions $ 748 53% Consumer Products $ 410 29% Commercial Banking $ 260 18% ------------- Total CCB $1,418 100% ============ [GRAPH] Global Corporate & Investment Banking Global Investment Banking $275 55% Global Credit Products $120 24% Global Treasury Services $108 21% ------------ Total GCIB $503 100% ============ 2 Consumer and Commercial Banking Segment Consumer and Commercial Banking Segment Results - -------------------------------------------------------------------------------- (Dollars in millions) Quarterly -------------------------------------------------- Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01 - ------------ --------- -------- -------- -------- -------- Total Revenue $ 5,487 $ 5,558 $ 5,318 $ 5,223 $ 4,995 Provision for Credit Losses 430 539 397 333 330 Operating Net Income /(1)/ 1,418 1,256 1,279 1,243 1,170 Shareholder Value Added 905 833 853 822 754 Return on Average Equity 30.6% 26.0% 26.3% 25.7% 24.4% Efficiency Ratio 51.1 54.3 53.2 54.6 54.9 Selected Average Balance Sheet Components - ---------------- Total Loans and Leases $183,882 $181,187 $180,763 $180,104 $176,652 Total Deposits 276,662 273,256 266,339 264,658 259,735 Total Earning Assets 274,558 270,921 265,474 263,766 257,227 Period end (in billions) - ---------- Mortgage Servicing Portfolio $ 331.1 $ 320.8 $338.4 $ 337.3 $ 337.3 ================================================================================ Consumer and Commercial Banking Sub-Segment Results ================================================================================ Quarterly -------------------------------------------------- Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01 - ------------ --------- -------- -------- -------- --------- Banking Regions - --------------- Total Revenue $ 3,177 $ 3,205 $ 3,157 $ 3,088 $ 2,955 Operating Net Income 748 655 701 653 605 Shareholder Value Added 457 441 489 446 400 Efficiency Ratio 60.6% 63.0% 61.0% 62.7% 63.4% Consumer Products - ----------------- Total Revenue $ 1,475 $ 1,483 $ 1,318 $ 1,287 $ 1,224 Operating Net Income 410 395 328 334 323 Shareholder Value Added 314 302 235 244 237 Efficiency Ratio 36.7% 38.4% 41.3% 42.6% 42.9% Commercial Banking - ------------------ Total Revenue $ 835 $ 870 $ 843 $ 848 $ 816 Operating Net Income 260 206 250 256 242 Shareholder Value Added 134 90 129 132 117 Efficiency Ratio 40.2% 49.5% 42.6% 43.0% 41.9% ================================================================================ (1) Includes goodwill amortization of $107 million, $107 million, $105 million and $107 million in the fourth, third, second and first quarters of 2001, respectively. Certain prior period amounts have been reclassified between segments to conform to the current period presentation. 3 Consumer Credit Card Results Included within Consumer Products - -------------------------------------------------------------------------------- (Dollars in millions) Quarterly ------------------------------------------------ Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01 - ------------- --------- -------- --------- --------- --------- Outstandings: - ------------- Held (Period-End) $19,535 $19,884 $18,052 $16,799 $14,679 Managed (Period-End) 26,558 27,185 25,513 24,871 23,179 Held (Average) 19,383 18,656 17,632 15,755 14,464 Managed (Average) 26,539 26,040 25,310 24,122 23,038 Managed Income Statement: - ------------------------- Total Revenue $ 845 $ 835 $ 794 $ 742 $ 708 Provision Expense 371 350 357 340 333 Non-interest Expense 234 228 216 219 202 --------- -------- --------- ------------------ Net Income Before Taxes 240 257 221 183 173 Shareholder Value Added (SVA) $ 107 $ 109 $ 94 $ 71 $ 68 - ----------------------------- Credit Quality: - --------------- Charge-off $: Held $ 241 $ 208 $ 181 $ 158 $ 125 Managed 355 322 307 297 248 Charge-off %: Held 5.05 % 4.43 % 4.08 % 4.01 % 3.51 % Managed 5.43 4.90 4.81 4.94 4.37 Managed Delinquency %: 30+ 4.16 % 4.12 % 3.95 % 3.81 % 3.96 % 90+ 1.95 1.75 1.68 1.64 1.72 ================================================================================ 4 Asset Management Segment Asset Management Segment Results - -------------------------------------------------------------------------------- (Dollars in millions) Quarterly ------------------------------------------------- Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01 - ------------ -------- -------- -------- -------- -------- Total Revenue $ 602 $ 625 $ 610 $ 631 $ 609 Provision for Credit Losses 26 34 16 63 8 Operating Net Income /(1)/ 142 132 149 113 128 Shareholder Value Added 75 79 96 61 77 Return on Average Equity 24.9 % 23.6 % 26.5 % 20.4 % 23.5 % Efficiency Ratio 58.9 61.9 59.4 62.4 64.7 Selected Average Balance Sheet Components - ---------------- Total Loans and Leases $24,171 $24,537 $24,631 $24,352 $23,994 Total Deposits 11,837 11,936 11,837 11,999 11,813 Total Earning Assets 24,822 25,285 25,820 25,563 25,156 Period end (in billions) - ---------- Assets under Management $ 314.9 $ 314.2 $ 281.8 $ 290.8 $ 286.9 Client Brokerage Assets 96.6 99.4 93.6 101.9 97.3 Assets in Custody 46.0 46.9 43.1 49.6 49.5 ------- -------- -------- --------- ---------- Total Client Assets $ 457.5 $ 460.5 $ 418.5 $ 442.3 $ 433.7 ================================================================================ (1) Includes goodwill amortization of $12 million per quarter in 2001. Certain prior period amounts have been reclassified between segments to conform to the current period presentation. 5 Global Corporate and Investment Banking Segment Global Corporate and Investment Banking Segment Results - -------------------------------------------------------------------------------- (Dollars in millions) Quarterly -------------------------------------------------- Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01 - ------------ -------- -------- -------- -------- -------- Total Revenue $ 2,326 $ 2,376 $ 2,274 $ 2,435 $ 2,451 Provision for Credit Losses 261 495 285 252 244 Operating Net Income /(1)/ 503 435 490 476 553 Shareholder Value Added 172 110 141 108 181 Return on Average Equity 17.8% 14.5% 15.3% 14.1% 16.3% Efficiency Ratio 54.8 56.4 54.0 58.7 54.7 Selected Average Balance Sheet Components - ---------------- Total Loans and Leases $ 65,196 $ 70,065 $ 76,643 $ 84,958 $ 91,570 Total Deposits 63,212 66,076 68,472 67,439 65,927 Total Earning Assets 190,716 184,767 190,149 195,697 195,583 ================================================================================ Global Corporate and Investment Banking Sub-Segment Results ================================================================================ Quarterly -------------------------------------------------- Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01 - ------------ -------- -------- -------- -------- -------- Global Investment Banking - ------------------------- Total Revenue $ 1,343 $ 1,258 $ 1,191 $1,448 $ 1,489 Operating Net Income 275 196 207 285 354 Shareholder Value Added 174 99 101 176 241 Efficiency Ratio 65.8% 74.4% 69.7% 69.7% 62.6% Global Credit Products - ---------------------- Total Revenue $ 548 $ 713 $ 689 $ 617 $ 617 Operating Net Income 120 150 194 125 143 Shareholder Value Added (96) (66) (37) (122) (104) Efficiency Ratio 23.0% 19.2% 20.5% 25.7% 24.2% Global Treasury Services - ------------------------ Total Revenue $ 435 $ 405 $ 394 $ 370 $ 345 Operating Net Income 108 89 89 66 56 Shareholder Value Added 94 77 77 54 44 Efficiency Ratio 61.0% 66.0% 65.2% 70.5% 74.7% ================================================================================ (1) Includes goodwill amortization of $28 million in the fourth and third quarters and $27 million in the second and first quarters of 2001, respectively. Certain prior period amounts have been reclassified between segments to conform to the current period presentation. 6 Equity Investments Segment
Equity Investments Segment Results - ---------------------------------------------------------------------------------------------------- (Dollars in millions) Quarterly ---------------------------------------------------- Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01 - ------------- ------- -------- -------- ------- ------- Total Revenue ($24) ($86) ($54) $ 78 $ 102 Provision for Credit Losses - 9 - - - Operating Net Income /(1)/ (32) (96) (81) 36 33 Shareholder Value Added (93) (162) (151) (34) (31) Return on Average Equity (6.2)% (17.0)% (13.3)% 5.9% 5.9% Efficiency Ratio (117.5) (72.2) (144.6) 28.0 49.3 Selected Average Balance Sheet Components - ---------------- Total Loans and Leases $ 427 $ 444 $ 468 $ 491 $ 504 Total Deposits - - - 15 37 Total Earning Assets 433 453 489 513 504 Period end - ---------- Investment Balances for Principal Investing $5,431 $5,376 $5,483 $5,399 $5,256 - ---------------------------------------------------------------------------------------------------
(1) Includes goodwill amortization of $2 million per quarter in 2001. Certain prior period amounts have been reclassified between segments to conform to the current period presentation. 7 Corporate Other /(1)/ Corporate Other Segment Results/(2)/ - -------------------------------------------------------------------------------- (Dollars in millions) Quarterly -------------------------------------------------- Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01 - ------------ -------- --------- ---------- --------- --------- Total Revenue $ 296 $ 430 $ 571 $ 491 $ 344 Provision for Credit Losses 123 324 158 152 253 Operating Net Income /(3)/ 148 330 254 155 (14) Shareholder Value Added (227) (67) (115) (166) (302) Selected Average Balance Sheet Components - ---------------- Total Loans and Leases $ 54,125 $ 57,121 $ 75,221 $ 93,595 $ 95,169 Total Deposits 12,692 16,903 16,680 19,237 18,106 Total Earning Assets 132,241 145,367 141,854 145,403 144,235 - -------------------------------------------------------------------------------- /(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 (not from retail branch originations). /(2)/ Excludes the following: provision for credit losses of $395 million and noninterest expense of $1.3 billion related to the exit of certain consumer finance businesses in the third quarter of 2001. /(3)/ Includes goodwill amortization of $3 million, $7 million, $11 million and $11 million in the fourth, third, second and first quarters of 2001, respectively. Certain prior period amounts have been reclassified between segments to conform to the current period presentation. 8 Bank of America Corporation Consolidated Statement of Income - Operating Basis/(1)/ - -------------------------------------------------------------------------------- (Dollars in millions, except per share information; shares in thousands)
First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2002 2001 2001 2001 2001 ------------------------------------------------------------ Interest income Interest and fees on loan and leases $ 5,349 $ 5,795 $ 6,511 $ 7,201 $ 7,659 Interest and dividends on securities 946 1,075 891 894 846 Federal funds sold and securities purchased under agreements to resell 285 253 321 405 435 Trading account assets 878 911 930 936 846 Other interest income 413 771 669 489 455 ------------------------------------------------------------ Total interest income 7,871 8,805 9,322 9,925 10,241 ------------------------------------------------------------ Interest expense Deposits 1,344 1,713 2,097 2,363 2,713 Short-term borrowings 477 700 869 1,221 1,377 Trading account liabilities 285 268 285 312 290 Long-term debt 612 707 867 999 1,222 ----------------------------------------------------------- Total interest expense 2,718 3,388 4,118 4,895 5,602 ----------------------------------------------------------- Net interest income 5,153 5,417 5,204 5,030 4,639 Noninterest income Consumer service charges 692 746 712 714 694 Corporate service charges 567 540 528 511 499 ----------------------------------------------------------- Total service charges 1,259 1,286 1,240 1,225 1,193 ----------------------------------------------------------- Consumer investment and brokerage services 381 382 386 399 379 Corporate investment and brokerage services 170 151 142 137 136 ----------------------------------------------------------- Total investment and brokerage services 551 533 528 536 515 ----------------------------------------------------------- Mortgage banking income 192 167 109 196 121 Investment banking income 341 473 305 455 346 Equity investment gains/(losses) 26 (49) 22 171 147 Card income 576 629 618 601 573 Trading account profits/(2)/ 345 334 433 376 699 Other income 150 25 174 181 186 ----------------------------------------------------------- Total noninterest income 3,440 3,398 3,429 3,741 3,780 ----------------------------------------------------------- Total revenue 8,593 8,815 8,633 8,771 8,419 Provision for credit losses 840 1,401 856 800 835 Gains/(losses) on sales of securities 44 393 97 (7) (8) Other noninterest expense Personnel 2,446 2,590 2,304 2,534 2,401 Occupancy 432 465 448 428 433 Equipment 262 280 273 271 291 Marketing 170 166 165 174 177 Professional fees 91 153 144 141 126 Amortization of intangibles 55 213 219 223 223 Data processing 205 224 175 187 190 Telecommunications 119 116 121 128 119 Other general operating 590 956 613 574 545 General administrative 124 161 144 161 149 ----------------------------------------------------------- Total other noninterest expense 4,494 5,324 4,606 4,821 4,654 ----------------------------------------------------------- Operating income before income taxes 3,303 2,483 3,268 3,143 2,922 Income tax expense 1,124 426 1,177 1,120 1,052 ----------------------------------------------------------- Operating net income $ 2,179 $ 2,057 $ 2,091 $ 2,023 $ 1,870 =========================================================== Operating income available to common shareholders 2,178 2,056 2,089 2,022 1,869 =========================================================== Per common share information Operating earnings 1.41 1.31 1.31 1.26 1.16 =========================================================== Diluted operating earnings/(3)/ 1.38 1.28 1.28 1.24 1.15 =========================================================== Dividends 0.60 0.60 0.56 0.56 0.56 =========================================================== Average common shares issued and outstanding 1,543,471 1,570,083 1,599,692 1,601,537 1,608,890 =========================================================== Average diluted common shares issued and outstanding 1,581,848 1,602,886 1,634,063 1,632,964 1,631,099 =========================================================== As reported Net income $ 2,179 $ 2,057 $ 841 $ 2,023 $ 1,870 Net income available to common shareholders 2,178 2,056 839 2,022 1,869 Earnings per common share 1.41 1.31 0.52 1.26 1.16 Diluted earnings per common share 1.38 1.28 0.51 1.24 1.15
/(1)/ Operating basis excludes the following: provision for credit losses of $395 million and noninterest expense of $1.3 billion related to the exit of certain consumer finance businesses in the third quarter of 2001. /(2)/ Trading account profits for the first quarter of 2001 included the $83 million transition adjustment loss resulting from adoption of Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities," on January 1, 2001. /(3)/ Includes goodwill amortization of $.09 per share in the fourth quarter of 2001 and $.10 per share in the third, second and first quarters of 2001, respectively. Certain prior period amounts have been reclassified to conform to current period presentations. 9 Bank of America Corporation Consolidated Balance Sheet
- --------------------------------------------------------------------------------------------------------------------- (Dollars in millions) March 31 December 31 March 31 2002 2001 2001 - --------------------------------------------------------------------------------------------------------------------- Assets Cash and cash equivalents $ 22,444 $ 26,837 $ 23,333 Time deposits placed and other short-term investments 7,056 5,932 5,549 Federal funds sold and securities purchased under agreements to resell 40,771 28,108 20,581 Trading account assets 58,569 47,344 45,281 Derivative assets 19,116 22,147 16,508 Securities: Available-for-sale 74,306 84,450 49,189 Held-to-maturity 1,037 1,049 1,189 - --------------------------------------------------------------------------------------------------------------------- Total securities 75,343 85,499 50,378 - --------------------------------------------------------------------------------------------------------------------- Loans and leases 331,210 329,153 382,677 Allowance for credit losses (6,869) (6,875) (6,900) - --------------------------------------------------------------------------------------------------------------------- Loans and leases, net of allowance for credit losses 324,341 322,278 375,777 - --------------------------------------------------------------------------------------------------------------------- Premises and equipment, net 6,748 6,414 6,366 Mortgage banking assets 4,104 3,886 3,855 Goodwill 10,950 10,854 12,006 Core deposits and other intangibles 1,256 1,294 1,446 Other assets 49,223 61,171 48,675 - --------------------------------------------------------------------------------------------------------------------- Total assets $ 619,921 $ 621,764 $ 609,755 ===================================================================================================================== Liabilities Deposits in domestic offices: Noninterest-bearing $ 108,409 $ 112,064 $ 97,448 Interest-bearing 224,630 220,703 214,379 Deposits in foreign offices: Noninterest-bearing 1,677 1,870 1,716 Interest-bearing 32,484 38,858 38,917 - --------------------------------------------------------------------------------------------------------------------- Total deposits 367,200 373,495 352,460 - --------------------------------------------------------------------------------------------------------------------- Federal funds purchased and securities sold under agreements to repurchase 48,545 47,727 37,011 Trading account liabilities 25,258 19,452 24,138 Derivative liabilities 12,053 14,868 17,132 Commercial paper 363 1,558 5,707 Other short-term borrowings 21,629 20,659 30,559 Accrued expenses and other liabilities 31,138 27,459 21,863 Long-term debt 60,036 62,496 67,044 Trust preferred securities 5,530 5,530 4,955 - --------------------------------------------------------------------------------------------------------------------- Total liabilities 571,752 573,244 560,869 - --------------------------------------------------------------------------------------------------------------------- Shareholders' equity Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding 1,452,249; 1,514,478 and 1,662,172 shares 62 65 71 Common stock, $0.01 par value; authorized - 5,000,000,000 shares; issued and outstanding 1,544,521,073; 1,559,297,220 and 1,601,983,783 shares 3,949 5,076 7,872 Retained earnings 44,245 42,980 40,785 Accumulated other comprehensive income/(loss) (72) 437 227 Other (15) (38) (69) - --------------------------------------------------------------------------------------------------------------------- Total shareholders' equity 48,169 48,520 48,886 - --------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $ 619,921 $ 621,764 $ 609,755 =====================================================================================================================
10 Bank of America Corporation Average Balances and Interest Rates - Taxable-Equivalent Basis - -------------------------------------------------------------------------------- (Dollars in millions)
First Quarter 2002 Fourth Quarter 2001 ------------------------------ --------------------------- Interest Interest Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate ---------- ------- ------ -------- ------- ------ Earning assets Time deposits placed and other short-term investments $ 10,242 $ 61 2.43 % $ 7,255 $ 64 3.47 % Federal funds sold and securities purchased under agreements to resell 44,682 215 1.94 38,825 253 2.60 Trading account assets 70,613 888 5.06 67,535 920 5.43 Total securities /(1)/ 73,542 963 5.24 71,454 1,090 6.10 Loans and leases /(2)/ Commercial - domestic 116,160 1,978 6.90 121,399 2,138 6.99 Commercial - foreign 21,917 226 4.17 23,789 278 4.63 Commercial real estate - domestic 22,251 275 5.01 23,051 316 5.45 Commercial real estate - foreign 389 4 4.00 375 4 4.49 ----------------------------- -------------------------- Total commercial 160,717 2,483 6.26 168,614 2,736 6.44 ----------------------------- -------------------------- Residential mortgage 81,104 1,389 6.88 78,366 1,385 7.05 Home equity lines 22,010 294 5.42 22,227 340 6.07 Direct/Indirect consumer 37,218 701 7.63 38,074 752 7.83 Consumer finance 5,276 104 7.87 5,324 127 9.55 Bankcard 19,383 490 10.26 18,656 498 10.58 Foreign consumer 2,093 19 3.71 2,093 21 4.02 ----------------------------- -------------------------- Total consumer 167,084 2,997 7.24 164,740 3,123 7.54 ----------------------------- -------------------------- Total loans and leases 327,801 5,480 6.76 333,354 5,859 6.99 ----------------------------- -------------------------- Other earning assets 22,231 358 6.52 36,782 707 7.67 ----------------------------- -------------------------- Total earning assets /(3)/ 549,111 7,965 5.86 555,205 8,893 6.37 ----------------------------- -------------------------- Cash and cash equivalents 22,037 23,182 Other assets, less allowance for credit losses 66,530 73,410 ----------------------------- -------------------------- Total assets $637,678 $651,797 ============================= ========================== Interest-bearing liabilities Domestic interest-bearing deposits: Savings $ 20,716 33 0.64 $ 20,132 42 0.83 NOW and money market deposit accounts 127,218 335 1.07 121,758 426 1.39 Consumer CDs and IRAs 69,359 730 4.27 71,895 898 4.96 Negotiable CDs, public funds and other time deposits 4,671 32 2.82 5,196 44 3.39 ----------------------------- -------------------------- Total domestic interest-bearing deposits 221,964 1,130 2.06 218,981 1,410 2.56 ----------------------------- -------------------------- Foreign interest-bearing deposits /(4)/ Banks located in foreign countries 15,464 107 2.79 20,771 170 3.22 Governments and official institutions 2,904 14 1.96 2,965 20 2.74 Time, savings, and other 19,620 93 1.93 21,858 113 2.06 ----------------------------- -------------------------- Total foreign interest-bearing deposits 37,988 214 2.29 45,594 303 2.63 ----------------------------- -------------------------- Total interest-bearing deposits 259,952 1,344 2.10 264,575 1,713 2.57 ----------------------------- -------------------------- Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings 86,870 477 2.23 87,291 700 3.18 Trading account liabilities 31,066 285 3.72 29,921 268 3.55 Long-term debt and trust preferred securities 67,694 612 3.62 68,141 707 4.15 ----------------------------- -------------------------- Total interest-bearing liabilities /(5)/ 445,582 2,718 2.47 449,928 3,388 2.99 ----------------------------- -------------------------- Noninterest-bearing sources: Noninterest-bearing deposits 104,451 103,596 Other liabilities 40,189 49,357 Shareholders' equity 47,456 48,916 ----------------------------- -------------------------- Total liabilities and shareholders' equity $637,678 $651,797 ============================= ========================== Net interest spread 3.39 3.38 Impact of noninterest-bearing sources .46 .57 ----------------------------- -------------------------- Net interest income/yield on earning assets $ 5,247 3.85 % $ 5,505 3.95 % ============================= ========================== (Dollars in millions) First Quarter 2001 -------------------------------- Interest Average Income/ Yield/ Balance Expense Rate -------- -------- ------ Earning assets Time deposits placed and other short-term investments $ 6,675 $ 102 6.17 % Federal funds sold and securities purchased under agreements to resell 31,903 435 5.48 Trading account assets 62,491 852 5.49 Total securities /(1)/ 55,221 860 6.26 Loans and leases /(2)/ Commercial - domestic 144,404 2,813 7.90 Commercial - foreign 29,540 515 7.06 Commercial real estate - domestic 25,989 530 8.27 Commercial real estate - foreign 300 6 7.82 -------------------------------- Total commercial 200,233 3,864 7.82 -------------------------------- Residential mortgage 82,710 1,532 7.43 Home equity lines 21,744 467 8.71 Direct/Indirect consumer 40,461 784 7.86 Consumer finance 25,947 589 9.08 Bankcard 14,464 443 12.41 Foreign consumer 2,330 43 7.54 -------------------------------- Total Consumer 187,656 3,858 8.29 -------------------------------- Total loans and leases 387,889 7,722 8.05 -------------------------------- Other earning assets 17,248 352 8.28 -------------------------------- Total earning assets/(3)/ 561,427 10,323 7.42 -------------------------------- Cash and cash equivalents 23,020 Other assets, less allowance for credit losses 64,251 -------------------------------- Total assets $648,698 ================================ Interest-bearing liabilities Domestic interest-bearing deposits: Savings $ 20,406 61 1.21 NOW and money market deposit accounts 107,015 808 3.06 Consumer CDs and IRAs 77,772 1,068 5.57 Negotiable CDs, public funds and other time deposits 7,137 108 6.16 -------------------------------- Total domestic interest-bearing deposits 212,330 2,045 3.91 -------------------------------- Foreign interest-bearing deposits /(4)/ Banks located in foreign countries 24,358 332 5.53 Governments and official institutions 3,993 52 5.27 Time, savings, and other 22,506 284 5.11 -------------------------------- Total foreign interest-bearing deposits 50,857 668 5.32 -------------------------------- Total interest-bearing deposits 263,187 2,713 4.18 -------------------------------- Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings 94,792 1,377 5.89 Trading account liabilities 28,407 290 4.14 Long-term debt and trust preferred securities 73,752 1,222 6.63 -------------------------------- Total interest-bearing liabilities /(5)/ 460,138 5,602 4.92 -------------------------------- Noninterest-bearing sources: Noninterest-bearing deposits 92,431 Other liabilities 48,263 Shareholders' equity 47,866 -------------------------------- Total liabilities and shareholders' equity $648,698 ================================ Net interest spread 2.50 Impact of noninterest-bearing sources .89 -------------------------------- Net interest income/yield on earning assets $ 4,721 3.39 % ================================
(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 taxable-equivalent basis adjustments of $94 million in the first quarter of 2002 and $88 million and $82 million in the fourth and first quarters of 2001, respectively. Interest income also includes the impact of interest rate risk management contracts, which increased (decreased) interest income by $560 million in the first quarter of 2002 and $473 million and $27 million in the fourth and first quarters of 2001, respectively. These amounts were substantially offset by corresponding decreases (increases) in the income earned on the underlying assets. (4) Primarily consists of time deposits in denominations of $100,000 or more. (5) Interest expense includes the impact of interest rate risk management contracts, which (increased) decreased interest expense by $49 million in the first quarter of 2002 and ($40) million and $23 million in the fourth and first quarters of 2001, respectively. These amounts were substantially offset by corresponding decreases (increases) in the interest paid on the underlying liabilities. 11 Net Charge-offs and Net Charge-off Ratios (Dollars in millions)
1Q01 2Q01 3Q01 4Q01 1Q02 ------------- -------------- ---------------- ---------------- ----------- Amt. Ratio Amt. Ratio Amt. Ratio Amt. Ratio Amt. Ratio ---- ----- ---- ----- ------ ----- ------ ----- ---- ----- Commercial - domestic/(1)/ $415 1.17% $408 1.18% $ 412 1.26% $ 714 2.33% $370 1.29% Commercial - foreign 34 0.46 57 0.84 57 0.89 60 1.00 49 0.90 Commercial real estate - domestic 6 - 12 0.18 4 0.07 17 0.29 14 0.25 ---- ---- ------ ------ ---- Total Commercial 455 0.92 477 1.00 473 1.05 791 1.86 433 1.09 ---- ---- ------ ------ ---- Residential mortgage 6 0.03 7 0.03 7 0.04 6 0.03 11 0.05 Home equity lines 6 0.11 4 0.07 4 0.07 5 0.10 8 0.15 Direct/indirect consumer 75 0.76 65 0.65 94 0.94 115 1.20 95 1.03 Consumer finance/(2)/ 93 1.45 67 1.00 720 17.47 49 3.65 44 3.38 Bankcard 125 3.51 158 4.01 181 4.08 208 4.43 241 5.05 Other consumer domestic 11 n/m 8 n/m 11 n/m 18 n/m 7 n/m Foreign consumer 1 0.19 1 0.24 1 0.21 2 0.25 1 0.16 ---- ---- ------ ------ ---- Total Consumer/(2)/ 317 0.68 310 0.65 1,018 2.27 403 0.97 407 0.99 ---- ---- ------ ------ ---- Total Net Charge-offs/(2)/ $772 0.81 $787 0.82 $1,491 1.65 $1,194 1.42 $840 1.04 ==== ==== ====== ====== ==== By Business Segment: Consumer & Commercial Banking $330 0.76% $333 0.74% $397 0.87% $539 1.18% $430 0.95% Global Corporate & Investment Banking/(1)/ 244 1.08 252 1.19 285 1.47 495 2.80 261 1.62 Asset Management 8 0.14 62 1.03 15 0.26 34 0.55 26 0.44 Equity Investments - - - - - - 9 7.76 - - Corporate Other/(2)/ 190 0.81 140 0.60 794 4.19 117 0.81 123 0.92 ---- ---- ------ ------ ---- Total Net Charge-offs $772 0.81 $787 0.82 $1,491 1.65 $1,194 1.42 $840 1.04 ==== ==== ====== ====== ====
Loans are classified as domestic or foreign based upon the domicile of the borrower. /(1)/ Fourth quarter 2001 includes $210 million related to Enron. /(2)/ Third quarter 2001 includes $635 million related to the exit of certain consumer finance businesses. Excluding these net charge-offs, the ratios would be 2.07% for Consumer Finance, 0.85% for Total Consumer, and 0.95% for Total Net Charge-offs. Net Charge-offs [GRAPH]
1Q01 2Q01 3Q01 4Q01 1Q02 ------- ------- -------- --------- ------- Total Net Charge-offs, excl. exited cons. fin. businesses $ 772 $ 787 $ 856 $ 1,194 $ 840 Net Charge-off Ratio, excl. exited cons. fin. businesses 0.95% Charge-offs - exited consumer finance business $ 635 Total Net Charge-offs incl. exited cons. fin. businesses $ 772 $ 787 $1,491 $ 1,194 $ 840 Net Charge-off Ratio, incl. exited cons. fin. businesses 0.81% 0.82% 1.65% 1.42% 1.04%
12 Nonperforming Assets (Dollars in millions)
1Q01 2Q01 3Q01 4Q01 1Q02 -------- -------- -------- -------- -------- Commercial - domestic $ 3,110 $ 3,209 $ 2,705 $ 3,123 $ 3,207 Commercial - foreign 529 562 566 461 583 Commercial real estate - domestic 206 201 257 240 216 Commercial real estate - foreign 3 3 2 3 2 -------- -------- -------- -------- -------- Total Commercial 3,848 3,975 3,530 3,827 4,008 -------- -------- -------- -------- -------- Residential mortgage 553 573 491 556 477 Home equity lines 36 42 61 80 73 Direct/Indirect consumer 19 17 20 27 26 Consumer finance 1,153 1,234 9 9 8 Foreign consumer 11 8 8 7 9 -------- -------- -------- -------- -------- Total Consumer 1,772 1,874 589 679 593 -------- -------- -------- -------- -------- Total Nonperforming Loans 5,620 5,849 4,119 4,506 4,601 Foreclosed properties 277 346 404 402 391 -------- -------- -------- -------- -------- Total Nonperforming Assets/(1)/ $ 5,897 $ 6,195 $ 4,523 $ 4,908 $ 4,992 ======== ======== ======== ======== ======== Loans past due 90 days or more and still accruing $ 527 $ 608 $ 691 $ 680 $ 662 Nonperforming Assets/ Total Assets 0.97 % 0.99 % 0.71 % 0.79 % 0.81 % Nonperforming Assets/ Total Loans, Leases and Foreclosed Properties 1.54 1.63 1.33 1.49 1.51 Nonperforming Loans/Total Loans and Leases 1.47 1.54 1.22 1.37 1.39 Allowance for Loan Losses $ 6,900 $ 6,911 $ 6,665 $ 6,875 $ 6,869 Allowance / Total Loans 1.80 % 1.82 % 1.97 % 2.09 % 2.07 % Allowance / Total Nonperforming Loans 123 118 162 153 149
Loans are classified as domestic or foreign based upon the domicile of the borrower. (1) Balances do not include $304 million, $1.0 billion, $1.3 billion, $120 million and $144 million of loans held for sale, included in other assets at March 31, 2002, December 31, 2001, September 30, 2001, June 30, 2001 and March 31, 2001, respectively, which would have been classified as nonperforming had they been included in loans. In the third quarter of 2001, $1.2 billion of nonperforming subprime real estate loans were transferred to loans held for sale as a result of the exit of certain consumer finance businesses. [GRAPH]
1Q01 2Q01 3Q01 4Q01 1Q02 -------- --------- -------- -------- --------- Total Allowance to Total Loans 1.80% 1.82% 1.97% 2.09% 2.07% Total Allowance to Total Nonperforming Loans 123% 118% 162% 153% 149%
13 Capital Management (Dollars in millions)
1Q01 2Q01 3Q01 4Q01 1Q02 --------- --------- --------- --------- --------- Tier 1 capital $ 40,769 $ 41,794 $ 41,517 $ 41,979 $ 42,078 Total capital 63,102 63,967 63,311 64,124 64,066 Net risk-weighted assets 532,824 529,201 522,291 506,020 488,772 Tier 1 capital ratio 7.65% 7.90% 7.95% 8.30% 8.61% Total capital ratio 11.84 12.09 12.12 12.67 13.11 Ending equity / ending assets 8.02 7.88 7.83 7.80 7.77 Ending capital / ending assets 8.83 8.67 8.61 8.69 8.66 Average equity / average assets 7.38 7.43 7.66 7.50 7.44
Share Repurchase Program - -------------------------------------------------------------------------------- 31 million common shares were repurchased during the first quarter of 2002 as a part of ongoing share repurchase programs. In total, 259 million common shares have been repurchased since June 1999 - returning $14.8 billion of capital to shareholders. 101 million shares remain outstanding under current authorized programs. Capital Management (Shares in millions) [GRAPH]
1Q01 2Q01 3Q01 4Q01 1Q02 ------- -------- ------- ------- ------- Shares outstanding at period end 1,602 1,601 1,582 1,559 1,545 Tier 1 capital ratio 7.65% 7.90% 7.95% 8.30 % 8.61%
14 E-Commerce & BankofAmerica.com - -------------------------------------------------------------------------------- Active On-line Banking Subscribers (in thousands) [GRAPH] ------------------------------------- Bill-pay On-line Only Total ------------------------------------- Mar-01 672 1,415 2,087 Jun-01 762 1,546 2,308 Sep-01 844 1,695 2,539 Dec-01 949 1,957 2,906 Mar-02 1,059 2,255 3,314 - -------------------------------------------------------------------------------- Bank of America has the largest active online banking customer base with 3.3 million subscribers. This represents an active customer penetration rate of 23%. Bank of America uses the strictest Active User standard in the industry - customers must have used our online services within the last 90 days. 1.1 million active bill pay users pay nearly $5 billion worth of bills quarterly. Currently, over 170 companies are presenting nearly 900,000 e-bills per quarter. - -------------------------------------------------------------------------------- On-line Banking Active Penetration of Total DDA Households [GRAPH] 1Q01 16% 2Q01 17% 3Q01 18% 4Q01 20% 1Q02* 23% * Estimate - -------------------------------------------------------------------------------- Bill payment Volume (Dollars in millions) [GRAPH] --------------------------------- $ Volume % Electronic --------------------------------- 1Q01 3,326 73% 2Q01 3,614 73% 3Q01 4,038 74% 4Q01 4,386 74% 1Q02* 4,942 78% *Estimate - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- % Reduction in 1-Year Attrition Rates On-line vs. Off-line Customers [GRAPH] On-line Only Customers 48% On-line & Bill-pay Customers 80% ------------------------------------------------------------------------------- Bank of America Direct Clients at period end [GRAPH] --------------------------------- Companies Users --------------------------------- 1Q01 4,312 26,679 2Q01 4,950 32,134 3Q01 5,770 38,614 4Q01 6,746 46,062 1Q02 7,476 53,452 -----END PRIVACY-ENHANCED MESSAGE-----