-----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, PH8GNeJqHZSsHE6DbLPfC7/8gS0nYNc6NwMm+C1WypTxrSBQYcoOyfuwYPQf59mJ XTwjNvwMp3pzu9W/K0ki5g== 0001021408-02-009424.txt : 20020715 0001021408-02-009424.hdr.sgml : 20020715 20020715092824 ACCESSION NUMBER: 0001021408-02-009424 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20020715 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20020715 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: 02702421 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 FOR BANK OF AMERICA 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): July 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) (800) 299-2265 (Registrant's telephone number, including area code) ITEM 5. OTHER EVENTS. On July 15, 2002, Bank of America Corporation (the "Registrant") announced financial results for the second quarter ended June 30, 2002, reporting earnings of $2.22 billion and diluted earnings per common share of $1.40. A copy of the press release announcing the Registrant's results for the second quarter ended June 30, 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 July 15, 2002 with respect to the Registrant's financial results for the second quarter ended June 30, 2002 99.2 Supplemental Information prepared for use on July 15, 2002 in connection with financial results for the second quarter ended June 30, 2002 ITEM 9. REGULATION FD DISCLOSURE. On July 15, 2002, the Registrant held an investor conference and webcast to disclose financial results for the second quarter ended June 30, 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 July 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: July 15, 2002 EXHIBIT INDEX EXHIBIT NO. DESCRIPTION OF EXHIBIT 99.1 Press Release dated July 15, 2002 with respect to the Registrant's financial results for the second quarter ended June 30, 2002 99.2 Supplemental Information prepared for use on July 15, 2002 in connection with financial results for the second quarter ended June 30, 2002 EX-99.1 3 dex991.txt PRESS RELEASE Exhibit 99.1 July 15, 2002 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 13 percent increase in EPS Strong Performance in Consumer Bank continues to lead growth; Complemented by solid results in investment banking CHARLOTTE - Bank of America Corporation today reported second quarter earnings of $2.22 billion, or $1.40 per share (diluted), a 13 percent increase in earnings per share from $2.02 billion, or $1.24 per share, reported a year ago. The return on common equity was 18.5 percent. The adoption of FAS No. 142 in the first quarter of 2002 eliminated the amortization of goodwill, which impacts the company's expenses and net income. Excluding goodwill amortization in the second quarter of 2001, net income and earnings per share rose 2 percent and 5 percent, respectively. The increase in second quarter results was driven by broad-based gains in customer revenue and strong expense control, supported by progress in Six Sigma productivity and quality initiatives. These improvements were somewhat offset by a significant reduction in revenue from trading and equity investments. "Our performance in the second quarter was led by strong growth in Consumer Banking as the execution of our customer-focused strategy continued to deliver results," said Kenneth D. Lewis, chairman and chief executive officer. "Given market conditions, we were especially pleased to see solid growth in our investment banking fees. Diligent expense management has complemented our efforts to grow revenue across the company and has enabled us to continue to deliver attractive results to our shareholders." Net income for the first half of 2002 was $4.40 billion, or $2.77 per share (diluted), a 16 percent increase in earnings per share, from $3.89 billion, or $2.39 per share, a year ago. Excluding goodwill amortization in the first half of 2001, net income and earnings per share rose 5 percent and 7 percent, respectively. More Page 2 Second quarter highlights (compared to a year ago) Financial highlights . Shareholder Value Added (SVA) grew 5 percent to $834 million. . Average customer deposits grew 7 percent to $326 billion. . Nonperforming assets declined from a year earlier and remained essentially unchanged with levels in the first quarter of 2002. . Investment banking income grew 2 percent as the demand for fixed income products continued to be strong. Modest growth in equities and a solid advisory business were also contributors. . Investment and brokerage service revenue grew 12 percent due to increased customer activity. . Active debit cards increased 8 percent and purchase volumes rose 15 percent from a year ago, as more customers began using debit cards. Average managed consumer credit card outstandings were up 12 percent from last year, driven by new account purchase volume and an increase in balance transfers. . Corporate service charges grew 11 percent due to higher fees paid in lieu of compensating balances as a result of a lower rate environment. . Greater customer activity and the addition of new customers drove a 3 percent increase in consumer service charges. Customer highlights . Net new checking accounts increased by more than 126,000 from the first quarter 2002, as the company attracted new customers with its new My Access Checking product and also retained and deepened relationships with existing customers. . During the second quarter, the company offered free online bill pay to new subscribers in an effort to attract customers and encourage existing customers to pay bills online. As a result, active users of online banking climbed 14 percent from the first quarter of 2002 to 3.8 million while active bill pay customers increased 20 percent to more than 1 million - the most users in the industry. . The company launched the SafeSend debit card product that allows consumers to send money to Mexico more efficiently and reduces fraud, helping the company support and strengthen its multi-cultural strategy by better meeting the needs of its diverse customer base. . The company launched the Visa CashPay payroll card, a new debit card that allows companies to pay employees with a reusable debit card. The debut of this card is part of the company's strategy for making payment exchange easier for customers. More Page 3 Revenue Revenue declined 1 percent from the previous year to $8.74 billion, as modest growth in fully taxable-equivalent net interest income was offset by a decline in market-related revenue. Fully taxable-equivalent net interest income rose 3 percent to $5.26 billion, as the company continued to benefit from low interest rates and higher consumer loan and deposit levels as well as higher trading-related revenue, partially offset by the exit of the subprime real estate business and reduced commercial loan levels. Noninterest income declined 7 percent to $3.48 billion, primarily due to lower trading revenue and equity investment losses. In connection with asset/liability management, the company realized $93 million in net securities gains. Efficiency At $4.49 billion, expenses were down 7 percent from a year ago (adjusted for amortization of goodwill, expenses decreased 4 percent). The efficiency ratio improved to 51.34 percent. Credit quality Credit quality continued to be impacted by the economic slowdown and uncertain market conditions. ... Provision for credit losses of $888 million was up $88 million from a year ago. Provision was up 6 percent from $840 million in the first quarter of 2002. ... Net charge-offs were $888 million, or 1.06 percent of loans and leases, up from $787 million, or 0.82 percent, a year ago. The increase in charge-offs was primarily concentrated in the consumer bankcard portfolio due to a 29 percent increase in on-balance sheet outstandings and the impact of the rise in unemployment and personal bankruptcy filings. Commercial net charge-offs increased $33 million, or 7 percent, from a year ago. Excluding bankcard and the subprime lending business, other consumer-related charge-offs remained essentially unchanged from a year ago. Total net charge-offs increased $48 million, or 6 percent, from the first quarter of 2002. ... Nonperforming assets were $4.9 billion, or 1.45 percent of loans, leases and foreclosed properties at June 30, 2002, down 20 percent from $6.2 billion, or 1.63 percent, a year earlier. The decrease in nonperforming assets from a year ago is due to the exit of the subprime lending business and the company's risk management program, which includes an aggressive strategy to shed problem credits. Nonperforming assets remained essentially unchanged with levels in the first quarter of 2002. More Page 4 ... The allowance for credit losses was 2.02 percent of loans and leases on June 30, 2002, an increase in coverage of 20 basis points from 1.82 percent a year ago. The allowance for credit losses, at $6.9 billion, represented 148 percent of nonperforming loans, up from 118 percent a year ago. The allowance remained essentially unchanged from the first quarter of 2002. Capital management Total shareholders' equity was $47.8 billion at June 30, 2002, down 3 percent from a year ago and represented 7.48 percent of period-end assets of $638 billion. The preliminary Tier 1 Capital Ratio was 8.09 percent, an increase of 19 basis points from a year earlier. During the quarter, Bank of America repurchased 51.2 million shares and issued 22.3 million shares for stock options. Average common shares outstanding were 1.53 billion, down 4 percent from 1.60 billion a year earlier and 1 percent from the first quarter of 2002. Business segment results To present comparable business segment results, earnings and expenses for the second quarter of 2001 have been adjusted to exclude goodwill amortization. Consumer and Commercial Banking Consumer and Commercial Banking (CCB) earned $1.44 billion, up 7 percent from a year ago. Total revenue grew 6 percent while expenses increased 2 percent. Return on equity was 31.4 percent and SVA grew 14 percent to $936 million. Net interest income increased 7 percent to $3.51 billion, driven by growth in consumer loans and deposits as well as the interest rate environment. Consumer loans grew 16 percent, primarily from residential mortgages and credit cards, driving a 2 percent increase in average loans. Commercial loan levels declined 13 percent. Average customer deposits grew 6 percent, as new customers opened checking accounts and consumers moved assets into deposit products with greater liquidity during uncertain market conditions. Growth in consumer deposits continued to be led by increases in money market savings and checking account balances. Noninterest income was up 5 percent to $2.02 billion, driven by higher consumer service charges from increased customer activity, growth in new customers, increased use of debit cards by customers and higher commercial account service charges, slightly offset by lower mortgage banking income due to lower servicing levels. More Page 5 Global Corporate and Investment Banking Global Corporate and Investment Banking (GCIB) earned $560 million, a 12 percent increase from last year. While revenue declined 4 percent to $2.36 billion, the provision for loan losses decreased 15 percent and expenses declined 10 percent. Return on equity was 20.2 percent and SVA increased $137 million to $236 million. Net interest income was up 4 percent to $1.23 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 $752 million, down 11 percent from last year's strong results primarily due to weaker demand for equity products. Despite the challenging environment, investment banking income increased 2 percent to $442 million from last year. These results were driven by the continued strong demand for fixed-income debt products and higher equity underwriting and advisory services income. Asset Management Asset Management earnings decreased 42 percent from a year ago to $72 million, primarily due to one large charge-off. Provision for credit losses rose to $144 million from $63 million a year earlier. Revenue of $624 million was slightly below last year while expenses declined 2 percent, even as the company made business investments for the future. Return on equity was 12.4 percent and SVA declined $58 million to $3 million. Assets under management grew 2 percent, or $6 billion, to $297 billion. This increase was driven by the growth in the Nations Funds family of money market mutual funds. In an effort to increase its distribution capabilities to better serve the financial needs of clients across the franchise, Asset Management continued to hire top talent during the quarter. The company is on track to reach its goal of increasing its number of licensed financial advisors and relationship managers by 20 percent by the end of 2002. Equity Investments Equity Investments reported a loss of $53 million, compared to earnings of $37 million a year ago. In Principal Investing, cash gains and fair market adjustments were approximately $170 million in the second quarter, offset by impairments of approximately $215 million. More Page 6 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. 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 second 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/. Forward Looking Statements This press release contains forward looking statements including, without limitation, statements about 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 may cause actual results to differ materially from such statements include, among others, the following: 1) projected business increases following process change 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) changes in the interest rate environment reduce interest margins and impact funding sources; 5) changes in market rates and prices may adversely impact the value of financial products; 6) legislation or regulatory requirements or changes adversely affect the businesses in which the company is engaged; 7) litigation liabilities, including costs, expenses, settlements and judgments, may adversely affect the Corporation and its businesses; and 8) decisions to downsize, sell or close units or otherwise change the business mix of the company. For further information, please read the Bank of America reports filed with the SEC and available at www.sec.gov. Bank of America
Three Months Six Months Ended June 30 Ended June 30 -------------------------- --------------------------- 2002 2001 2002 2001 ---------- ------------ ----------- ------------- (Dollars in millions, except per share data; shares in thousands) Financial Summary /(1)/ - ----------------------- Earnings............................................................ $ 2,221 $ 2,023 $ 4,400 $ 3,893 Earnings per common share....................................... 1.45 1.26 2.86 2.42 Diluted earnings per common share............................... 1.40 1.24 2.77 2.39 Dividends per common share.......................................... 0.60 0.56 1.20 1.12 Closing market price per common share............................... 70.36 60.03 70.36 60.03 Average common shares issued and outstanding........................ 1,533,783 1,601,537 1,538,600 1,605,193 Average diluted common shares issued and outstanding................ 1,592,250 1,632,964 1,586,836 1,631,892 Summary Income Statement /(1)/ - ------------------------------ (Taxable-equivalent basis) Net interest income................................................. $ 5,262 $ 5,117 $ 10,509 $ 9,838 Noninterest income.................................................. 3,481 3,741 6,921 7,521 ---------- ------------ ----------- ------------- Total revenue....................................................... 8,743 8,858 17,430 17,359 Provision for credit losses......................................... 888 800 1,728 1,635 Gains (losses) on sales of securities............................... 93 (7) 137 (15) Noninterest expense................................................. 4,490 4,821 8,984 9,475 ---------- ------------ ----------- ------------- Income before income taxes.......................................... 3,458 3,230 6,855 6,234 Income taxes - including taxable-equivalent basis adjustment........ 1,237 1,207 2,455 2,341 ---------- ------------ ----------- ------------- Net income.......................................................... $ 2,221 $ 2,023 $ 4,400 $ 3,893 ========== ============ =========== ============= Summary Average Balance Sheet - ----------------------------- Loans and leases.................................................... $ 335,684 $ 383,500 $ 331,765 $ 385,683 Managed loans and leases............................................ 342,238 394,065 339,294 396,351 Securities.......................................................... 67,291 55,719 70,399 55,472 Earning assets...................................................... 562,192 567,628 555,688 564,544 Total assets........................................................ 646,599 655,557 642,163 652,147 Deposits............................................................ 365,986 363,348 365,198 359,504 Shareholders' equity................................................ 48,274 48,709 47,867 48,290 Common shareholders' equity......................................... 48,213 48,640 47,805 48,219 Performance Indices /(1)/ - ------------------------- Return on average assets............................................ 1.38 % 1.24 % 1.38 % 1.20 % Return on average common shareholders' equity....................... 18.47 16.67 18.55 16.27 Efficiency ratio.................................................... 51.34 54.44 51.54 54.58 Net interest yield.................................................. 3.75 3.61 3.80 3.50 Shareholder value added ............................................ $ 834 $ 791 $ 1,666 $ 1,470 Credit Quality - -------------- Net charge-offs..................................................... $ 888 $ 787 $ 1,728 $ 1,560 % of average loans and leases................................... 1.06 % 0.82 % 1.05 % 0.82 % Managed bankcard net charge-offs as a % of average managed bankcard receivables.................................... 5.59 4.94 5.51 4.66
/(1)/ The three months ended June 30, 2001 included goodwill amortization of $169 million. The impact on net income was $155 million, or $0.09 per share. The six months ended June 30, 2001 included goodwill amortization of $337 million. The impact on net income was $314 million, or $0.19 per share. Bank of America - Continued
At June 30 --------------------------------------- 2002 2001 -------------------- --------------- (Dollars in millions, except per share data; shares in thousands) Balance Sheet Highlights - ------------------------ Loans and leases.................................................... $ 340,394 $ 380,425 Securities.......................................................... 83,163 54,577 Earning assets...................................................... 552,416 538,926 Total assets........................................................ 638,448 625,525 Deposits............................................................ 360,769 363,486 Shareholders' equity................................................ 47,764 49,302 Common shareholders' equity......................................... 47,704 49,234 Per share....................................................... 31.47 30.75 Total equity to assets ratio (period end)........................... 7.48 % 7.88 % Risk-based capital ratios:/(2)/ Tier 1......................................................... 8.09 7.90 Total.......................................................... 12.42 12.09 Leverage ratio...................................................... 6.47 6.50 Period-end common shares issued and outstanding .................... 1,515,667 1,601,126 Allowance for credit losses......................................... $ 6,873 $ 6,911 Allowance for credit losses as a % of loans and leases.............. 2.02 % 1.82 % Allowance for credit losses as a % of nonperforming loans........... 148 118 Nonperforming loans................................................. $ 4,642 $ 5,849 Nonperforming assets(3)............................................. 4,939 6,195 Nonperforming assets as a % of: Total assets................................................... .77 % .99 % Loans, leases and foreclosed properties........................ 1.45 1.63 Nonperforming loans as a % of loans and leases...................... 1.36 1.54 Other Data - ---------- Full-time equivalent employees...................................... 135,489 144,287 Number of banking centers........................................... 4,232 4,259 Number of ATM's..................................................... 12,827 12,860
BUSINESS SEGMENT RESULTS
Consumer and Global Corporate Commercial Asset and Investment Equity Corporate Banking Management Banking Investments Other ------------ ---------- ---------------- ----------- --------- Three months ended June 30, 2002 Total revenue................................ $ 5,527 $ 624 $ 2,359 $ (78) $ 311 Net income................................... 1,443 72 560 (53) 199 Shareholder value added...................... 936 3 236 (118) (223) Return on equity............................. 31.4 % 12.4 % 20.2 % (9.9) % n/m Average loans and leases..................... $ 182,863 $ 23,666 $ 63,927 $ 448 $ 64,780 Three months ended June 30, 2001 Total revenue................................ $ 5,212 $ 631 $ 2,446 $ 78 $ 491 Net income (4) .............................. 1,241 113 472 36 161 Shareholder value added...................... 823 61 99 (34) (158) Return on equity............................. 25.9 % 20.3 % 13.8 % 5.9 % n/m Average loans and leases..................... $ 178,534 $ 24,352 $ 86,528 $ 491 $ 93,595
n/m = not meaningful (2) 2002 ratios are preliminary. (3) 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. (4) Includes goodwill amortization of $103 million for Consumer and Commercial Banking, $12 million for Asset Management, $27 million for Global Corporate and Investment Banking, $2 million for Equity Investments and $11 million for Corporate Other. EX-99.2 4 dex992.txt SUPPLEMEMENTAL INFORMATION Exhibit 99.2 Bank of America Supplemental Information Second Quarter 2002 July 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. Results Overview * Solid quarter with diluted earnings per common share of $1.40, up 6% annualized linked quarter and 5% over second quarter 2001 after adjusting for elimination of goodwill amortization. * All three core businesses posted revenue growth over prior quarter. * Efficiency ratio improved as expenses remain controlled. * Nonperforming assets down 1% from prior quarter. * Net charge-offs up from first quarter 2002 as a result of lower recoveries. * Deposit growth continues to show steady growth in part due to net new account growth. 1 Bank of America Consolidated Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------------ (Dollars in millions, except per share information; shares in thousands) Year-to- Year-to- Second First Fourth Date Date Quarter Quarter Quarter 2002 2001 2002 2002 2001 ---------------------------------------------------------------------------- Operating Basis /(1)/ Income statement (taxable-equivalent basis) Total revenue $ 17,430 $ 17,359 $ 8,743 $ 8,687 $ 8,903 Provision for credit losses 1,728 1,635 888 840 1,401 Gains (losses) on sales of securities 137 (15) 93 44 393 Other noninterest expense 8,984 9,475 4,490 4,494 5,324 Income tax expense 2,455 2,341 1,237 1,218 514 Net income 4,400 3,893 2,221 2,179 2,057 Average diluted common shares issued and outstanding 1,586,836 1,631,892 1,592,250 1,581,848 1,602,886 Diluted earnings per common share /(2)/ $ 2.77 $ 2.39 $ 1.40 $ 1.38 $ 1.28 Performance ratios Return on average assets 1.38 % 1.20 % 1.38 % 1.39 % 1.25 % Return on average common shareholders' equity 18.55 16.27 18.47 18.64 16.70 Efficiency ratio 51.54 54.58 51.34 51.74 59.80 Shareholder value added $ 1,666 $ 1,470 $ 834 $ 832 $ 793 - ------------------------------------------------------------------------------------------------------------------------------------ As Reported Income statement (taxable-equivalent basis) Total revenue $ 17,430 $ 17,359 $ 8,743 $ 8,687 $ 8,903 Provision for credit losses 1,728 1,635 888 840 1,401 Gains (losses) on sales of securities 137 (15) 93 44 393 Business exit costs - - - - - Other noninterest expense 8,984 9,475 4,490 4,494 5,324 Income tax expense 2,455 2,341 1,237 1,218 514 Net income 4,400 3,893 2,221 2,179 2,057 Diluted earnings per common share /(2)/ 2.77 2.39 1.40 1.38 1.28 Cash dividends paid per common share 1.20 1.12 0.60 0.60 0.60 Performance ratios Return on average assets 1.38 % 1.20 % 1.38 % 1.39 % 1.25 % Return on average common shareholders' equity 18.55 16.27 18.47 18.64 16.70 Net interest yield 3.80 3.50 3.75 3.85 3.95 Book value per share $ 31.47 $ 30.75 $ 31.47 $ 31.15 $ 31.07 - ------------------------------------------------------------------------------------------------------------------------------------ Market price per share of common stock: High for the period $ 77.08 $ 62.18 $ 77.08 $ 69.61 $ 64.99 Low for the period 57.51 45.00 66.82 57.51 52.10 Closing price 70.36 60.03 70.36 68.02 62.95 Market capitalization 106,642 96,116 106,642 105,058 98,158 Number of banking centers 4,232 4,259 4,232 4,246 4,253 Number of ATM's 12,827 12,860 12,827 13,161 13,113 Full-time equivalent employees 135,489 144,287 135,489 137,240 142,670 ------------------------------- Third Second Quarter Quarter 2001 2001 ------------------------------- Operating Basis /(1)/ Income statement (taxable-equivalent basis) Total revenue $ 8,719 $ 8,858 Provision for credit losses 856 800 Gains (losses) on sales of securities 97 (7) Other noninterest expense 4,606 4,821 Income tax expense 1,263 1,207 Net income 2,091 2,023 Average diluted common shares issued and outstanding 1,634,063 1,632,964 Diluted earnings per common share /(2)/ $ 1.28 $ 1.24 Performance ratios Return on average assets 1.29 % 1.24 % Return on average common shareholders' equity 16.87 16.67 Efficiency ratio 52.82 54.44 Shareholder value added $ 824 $ 791 - ---------------------------------------------------------------------------------------- As Reported Income statement (taxable-equivalent basis) Total revenue $ 8,719 $ 8,858 Provision for credit losses 1,251 800 Gains (losses) on sales of securities 97 (7) Business exit costs 1,305 - Other noninterest expense 4,606 4,821 Income tax expense 813 1,207 Net income 841 2,023 Diluted earnings per common share /(2)/ 0.51 1.24 Cash dividends paid per common share 0.56 0.56 Performance ratios Return on average assets 0.52 % 1.24 % Return on average common shareholders' equity 6.78 16.67 Net interest yield 3.78 3.61 Book value per share $ 31.66 $ 30.75 - ---------------------------------------------------------------------------------------- Market price per share of common stock: High for the period $ 65.54 $ 62.18 Low for the period 50.25 48.65 Closing price 58.40 60.03 Market capitalization 92,396 96,116 Number of banking centers 4,259 4,259 Number of ATM's 12,986 12,860 Full-time equivalent employees 143,824 144,287
(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) Includes goodwill amortization of $.19 per share for year-to-date 2001 and $.09 per share in the fourth, third and second quarters of 2001. Certain prior period amounts have been reclassified to conform to current period classifications. 2 Capital Management (Dollars in millions)
2Q01 3Q01 4Q01 1Q02 2Q02* ---- ---- ---- ---- ----- Tier 1 capital $ 41,794 $ 41,517 $ 41,979 $ 42,078 $ 41,097 Total capital 63,967 63,311 64,124 64,158 63,108 Net risk-weighted assets 529,201 522,291 506,020 496,227 508,008 Tier 1 capital ratio 7.90% 7.95% 8.30% 8.48% 8.09% Total capital ratio 12.09 12.12 12.67 12.93 12.42 Ending equity / ending assets 7.88 7.83 7.80 7.77 7.48 Ending capital / ending assets 8.67 8.61 8.69 8.66 8.35 Average equity / average assets 7.43 7.66 7.50 7.44 7.47
*Preliminary Share Repurchase Program - -------------------------------------------------------------------------------- 82 million common shares were repurchased in the first six months of 2002 as a part of ongoing share repurchase programs. 51 million common shares were repurchased during the second quarter of 2002. 50 million shares remain outstanding under current authorized program. 39 million shares were issued in the first half of 2002 with 22 million shares issued during the second quarter, as part of stock option plans. Capital Management (Shares in millions) [GRAPHIC] 2Q01 3Q01 4Q01 1Q02 2Q02 ---- ---- ---- ---- ---- Shares outstanding at period end 1,601 1,582 1,559 1,545 1,516 Tier 1 capital ratio 7.90% 7.95% 8.30% 8.48% 8.09%* * Tier 1 ratio decline due to share repurchases and higher risk-weighted assets. 3 Bank of America Corporation Average Balances and Interest Rates - Taxable-Equivalent Basis - -------------------------------------------------------------------------------- (Dollars in millions)
Second Quarter 2002 First Quarter 2002 ------------------------------------ ---------------------------------- Interest Interest Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate -------------- ------------ -------- ---------- ---------- ------------ Earning assets Time deposits placed and other short-term investments $ 10,673 $ 63 2.37% $ 10,242 $ 61 2.43% Federal funds sold and securities purchased under agreements to resell 48,426 270 2.23 44,682 215 1.94 Trading account assets 78,113 961 4.93 70,613 888 5.06 Total securities/(1)/ 67,291 939 5.59 73,542 963 5.24 Loans and leases/(2)/ Commercial - domestic 111,522 1,887 6.78 116,160 1,978 6.90 Commercial - foreign 21,454 212 3.97 21,917 226 4.17 Commercial real estate - domestic 21,486 258 4.83 22,251 275 5.01 Commercial real estate - foreign 393 5 5.14 389 4 4.00 ----------------------------------- ---------------------------------- Total commercial 154,855 2,362 6.12 160,717 2,483 6.26 ----------------------------------- ---------------------------------- Residential mortgage 94,726 1,602 6.77 81,104 1,389 6.88 Home equity lines 22,579 305 5.41 22,010 294 5.42 Direct/Indirect consumer 30,021 542 7.25 30,360 550 7.34 Consumer finance 11,053 226 8.20 12,134 255 8.46 Bankcard 20,402 510 10.01 19,383 490 10.26 Foreign consumer 2,048 19 3.71 2,093 19 3.71 ----------------------------------- ----------------------------------- Total consumer 180,829 3,204 7.10 167,084 2,997 7.24 ----------------------------------- ----------------------------------- Total loans and leases 335,684 5,566 6.65 327,801 5,480 6.76 ----------------------------------- ----------------------------------- Other earning assets 22,005 353 6.42 22,231 358 6.52 ----------------------------------- ----------------------------------- Total earning assets/(3)/ 562,192 8,152 5.81 549,111 7,965 5.86 ----------------------------------- ----------------------------------- Cash and cash equivalents 21,200 22,037 Other assets, less allowance for credit losses 63,207 66,530 ----------------------------------- ----------------------------------- Total assets $646,599 $637,678 ----------------------------------- ----------------------------------- Interest-bearing liabilities Domestic interest-bearing deposits: Savings $ 21,841 34 0.64 $ 20,716 33 0.64 NOW and money market deposit accounts 129,856 346 1.07 127,218 335 1.07 Consumer CDs and IRAs 68,015 764 4.51 69,359 730 4.27 Negotiable CDs, public funds and other time deposits 4,635 30 2.43 4,671 32 2.82 ------------------------------------ ----------------------------------- Total domestic interest-bearing deposits 224,347 1,174 2.10 221,964 1,130 2.06 ------------------------------------ ----------------------------------- Foreign interest-bearing deposits/(4)/ Banks located in foreign countries 14,048 108 3.10 15,464 107 2.79 Governments and official institutions 2,449 12 1.89 2,904 14 1.96 Time, savings, and other 18,860 90 1.91 19,620 93 1.93 ------------------------------------ ----------------------------------- Total foreign interest-bearing deposits 35,357 210 2.38 37,988 214 2.29 ------------------------------------ ----------------------------------- Total interest-bearing deposits 259,704 1,384 2.14 259,952 1,344 2.10 ------------------------------------ ----------------------------------- Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings 97,579 529 2.17 86,870 477 2.23 Trading account liabilities 31,841 344 4.34 31,066 285 3.72 Long-term debt and trust preferred securities 65,940 633 3.84 67,694 612 3.62 ------------------------------------ ----------------------------------- Total interest-bearing liabilities/(3)/ 455,064 2,890 2.55 445,582 2,718 2.47 ------------------------------------ ----------------------------------- Noninterest-bearing sources: Noninterest-bearing deposits 106,282 104,451 Other liabilities 36,979 40,189 Shareholders' equity 48,274 47,456 ------------------------------------ ----------------------------------- Total liabilities and shareholders' equity $646,599 $637,678 ------------------------------------ ----------------------------------- Net interest spread 3.26 3.39 Impact of noninterest-bearing sources 0.49 0.46 ------------------------------------ ----------------------------------- Net interest income/yield on earning assets/(4)/ $5,262 3.75% $5,247 3.85% ------------------------------------ ----------------------------------- Second Quarter 2001 ------------------------------- Interest Average Income/ Yield/ Balance Expense Rate ------------------------------- Earning assets Time deposits placed and other short-term investments $ 7.085 $ 81 4.58% Federal funds sold and securities purchased under agreements to resell 33,859 405 4.79 Trading account assets 67,311 944 5.62 Total securities/(1)/ 55,719 909 6.53 Loans and leases/(2)/ Commercial - domestic 139,096 2,585 7.45 Commercial - foreign 27,449 421 6.14 Commercial real estate - domestic 25,293 459 7.28 Commercial real estate - foreign 352 5 6.64 ------------------------------- Total commercial 192,190 3,470 7.24 ------------------------------- Residential mortgage 84,346 1,546 7.34 Home equity lines 21,958 424 7.75 Direct/Indirect consumer 30,352 637 8.42 Consumer finance 36,608 707 7.72 Bankcard 15,755 445 11.32 Foreign consumer 2,291 35 6.20 ------------------------------- Total consumer 191,310 3,794 7.94 ------------------------------- Total loans and leases 383,500 7,264 7.59 ------------------------------- Other earning assets 20,154 409 8.11 ------------------------------- Total earning assets/(3)/ 567,628 10,012 7.07 ------------------------------- Cash and cash equivalents 23,232 Other assets, less allowance for credit losses 64,697 ------------------------------- Total assets $ 655,557 ------------------------------- Interest-bearing liabilities Domestic interest-bearing deposits: Savings $ 20,222 57 1.14 NOW and money market deposit accounts 113,031 676 2.40 Consumer CDs and IRAs 74,777 969 5.20 Negotiable CDs, public funds and other time deposits 6,005 81 5.37 ------------------------------- Total domestic interest-bearing deposits 214,035 1,783 3.34 ------------------------------- Foreign interest-bearing deposits/(4)/ Banks located in foreign countries 24,395 294 4.82 Governments and official institutions 3,983 45 4.53 Time, savings, and other 23,545 241 4.13 ------------------------------- Total foreign interest-bearing deposits 51,923 580 4.49 ------------------------------- Total interest-bearing deposits 265,958 2,363 3.57 ------------------------------- Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings 98,898 1,221 4.95 Trading account liabilities 30,710 312 4.07 Long-term debt and trust preferred securities 69,416 999 5.76 ------------------------------- Total interest-bearing liabilities/(3)/ 464,982 4,895 4.22 ------------------------------- Noninterest-bearing sources: Noninterest-bearing deposits 97,390 Other liabilities 44,476 Shareholders' equity 48,709 ------------------------------- Total liabilities and shareholders' equity $ 655,557 ------------------------------- Net interest spread 2.85 Impact of noninterest-bearing sources .76 ------------------------------- Net interest income/yield on earning assets/(4)/ $ 5,117 3.61% -------------------------------
(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 also includes the impact of interest rate risk management contracts, which increased interest income by $505 million and $560 million in the second and first quarters of 2002 and $194 million in the second quarter of 2001, 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 by $(76) million and $49 million in the second and first quarters of 2002 and $49 million in the second quarter of 2001, respectively. These amounts were substantially offset by corresponding decreases (increases) in the interest paid on the underlying liabilities. (4) Primarily consists of time deposits in denominations of $100,000 or more. 4 Bank of America Corporation Average Balances and Interest Rates - Taxable-Equivalent Basis
- ------------------------------------------------------------------------------------------------------------------------------- (Dollars in millions) Year-to-Date 2002 Year-to-Date 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 $ 10,459 $ 124 2.40% $ 6,881 $ 183 5.35% Federal funds sold and securities purchased under agreements to resell 46,564 485 2.09 32,886 840 5.13 Trading account assets 74,384 1,849 4.99 64,914 1,796 5.56 Total securities/(1)/ 70,399 1,902 5.41 55,472 1,769 6.39 Loans and leases/(2)/ Commercial - domestic 113,829 3,865 6.84 141,735 5,398 7.68 Commercial - foreign 21,684 438 4.07 28,489 935 6.61 Commercial real estate - domestic 21,866 533 4.92 25,639 989 7.78 Commercial real estate - foreign 391 9 4.57 326 12 7.18 ----------------------------- ---------------------------- Total commercial 157,770 4,845 6.19 196,189 7,334 7.54 ----------------------------- ---------------------------- Residential mortgage 87,953 2,991 6.82 83,533 3,078 7.38 Home equity lines 22,296 599 5.42 21,852 891 8.22 Direct/Indirect consumer 30,191 1,092 7.30 30,228 1,276 8.51 Consumer finance 11,590 481 8.34 36,458 1,440 7.91 Bankcard 19,895 1,000 10.13 15,113 888 11.84 Foreign consumer 2,070 38 3.71 2,310 79 6.87 ----------------------------- ---------------------------- Total consumer 173,995 6,201 7.17 189,494 7,652 8.11 ----------------------------- ---------------------------- Total loans and leases 331,765 11,046 6.70 385,683 14,986 7.82 ----------------------------- ---------------------------- Other earning assets 22,117 711 6.47 18,708 761 8.19 ----------------------------- ---------------------------- Total earning assets/(3)/ 555,688 16,117 5.83 564,544 20,335 7.24 ----------------------------- ---------------------------- Cash and cash equivalents 21,616 23,127 Other assets, less allowance for credit losses 64,859 64,476 ----------------------------- ---------------------------- Total assets $642,163 $652,147 ============================= ============================ Interest-bearing liabilities Domestic interest-bearing deposits: Savings $ 21,281 67 0.64 $ 20,314 118 1.18 NOW and money market deposit accounts 128,544 681 1.07 110,039 1,484 2.72 Consumer CDs and IRAs 68,683 1,494 4.39 76,267 2,037 5.39 Negotiable CDs, public funds and other time deposits 4,654 62 2.63 6,567 189 5.80 ----------------------------- ---------------------------- Total domestic interest-bearing deposits 223,162 2,304 2.08 213,187 3,828 3.62 ----------------------------- ---------------------------- Foreign interest-bearing deposits/(4)/ Banks located in foreign countries 14,752 215 2.94 24,377 626 5.18 Governments and official institutions 2,675 26 1.93 3,988 97 4.90 Time, savings, and other 19,238 183 1.92 23,028 525 4.61 ----------------------------- ---------------------------- Total foreign interest-bearing deposits 36,665 424 2.33 51,393 1,248 4.90 ----------------------------- ---------------------------- Total interest-bearing deposits 259,827 2,728 2.12 264,580 5,076 3.87 ----------------------------- ---------------------------- Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings 92,255 1,006 2.20 96,856 2,598 5.41 Trading account liabilities 31,455 629 4.03 29,565 602 4.10 Long-term debt and trust preferred securities 66,812 1,245 3.73 71,572 2,221 6.21 ----------------------------- ---------------------------- Total interest-bearing liabilities/(3)/ 450,349 5,608 2.51 462,573 10,497 4.57 ----------------------------- ---------------------------- Noninterest-bearing sources: Noninterest-bearing deposits 105,371 94,924 Other liabilities 38,576 46,360 Shareholders' equity 47,867 48,290 ----------------------------- ---------------------------- Total liabilities and shareholders' equity $642,163 $652,147 ----------------------------- ---------------------------- Net interest spread 3.32 2.67 Impact of noninterest-bearing sources 0.48 0.83 ----------------------------- ---------------------------- Net interest income/yield on earning assets/(4)/ $10,509 3.80% $ 9,838 3.50% ============================= ============================
(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 also includes the impact of interest rate risk management contracts, which increased interest income by $1.1 billion and $222 million in 2002 and 2001, respectively. These amounts were substantially offset by corresponding decreases in the income earned on the underlying assets. Interest expense also includes the impact of interest rate risk management contracts, which (increased) decreased interest expense by $(27) million and $73 million in 2002 and 2001, respectively. These amounts were substantially offset by corresponding decreases (increases) in the interest paid on the underlying liabilities. (4) Primarily consists of time deposits in denominations of $100,000 or more. 5 Business Segment Total Revenue Second Quarter 2002 (Dollars in millions) [GRAPHIC] Business Segment --------------------------------------------------------- Consumer & Commercial Banking $ 5,527 63% Asset Management $ 624 7% Global Corporate & Investment Banking $ 2,359 27% Equity Investments $ (78) -1% Corporate Other $ 311 4% ----------------- $ 8,743 100% =================
[GRAPHIC] [GRAPHIC] Consumer & Commercial Banking Global Corporate & Investment Banking ----------------------------------------- ---------------------------------------------- Banking Regions $ 3,288 60% Global Investment Banking $1,252 53% Consumer Products $ 1,397 25% Global Credit Products $ 658 28% Commercial Banking $ 842 15% Global Treasury Services $ 449 19% ------------------ ---------------- Total CCB $ 5,527 100% Total GCIB $2,359 100% ================== ================
6 Consumer and Commercial Banking Segment
Consumer and Commercial Banking Segment Results - ------------------------------------------------------------------------------------------------------------------------------------ (Dollars in millions) Year-to-Date Quarterly --------------------- ------------------------------------------------------------------------ Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 - ------------- ---------- --------- ----------- ----------- ----------- ---------- ------------ Total Revenue $ 11,002 $10,196 $ 5,527 $ 5,475 $ 5,546 $ 5,305 $ 5,212 Provision for Credit Losses 876 656 449 427 536 389 329 Operating Net Income/(1)/ 2,860 2,407 1,443 1,417 1,255 1,283 1,241 Shareholder Value Added 1,844 1,578 936 908 837 862 823 Return on Average Equity 31.1 % 25.2 % 31.4 % 30.7 % 26.2 % 26.6 % 25.9 % Efficiency Ratio 50.7 54.8 50.4 51.1 54.3 53.1 54.6 Selected Average Balance Sheet Components - ---------------- Total Loans and Leases $182,552 $176,832 $182,863 $182,237 $179,541 $179,186 $178,534 Total Deposits 278,425 262,210 280,168 276,662 273,256 266,339 264,658 Total Earning Assets 276,196 260,230 278,135 274,234 270,615 265,169 263,470 Period end (in billions) - ---------- Mortgage Servicing Portfolio $ 287.8 $ 337.3 $ 287.8 $ 308.6 $ 320.8 $ 338.4 $ 337.3 - ------------------------------------------------------------------------------------------------------------------------------------
Consumer and Commercial Banking Sub-Segment Results - ------------------------------------------------------------------------------------------------------------------------------------ Year-to-Date Quarterly --------------------- ------------------------------------------------------------------------ Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 - ------------- ---------- --------- ----------- ----------- ----------- ---------- ------------ Banking Regions - --------------- Total Revenue $ 6,465 $ 6,044 $ 3,288 $ 3,177 $ 3,203 $ 3,156 $ 3,088 Operating Net Income/(2)/ 1,562 $ 1,260 815 747 654 702 655 Shareholder Value Added 975 845 519 456 440 489 445 Efficiency Ratio 59.1 % 63.0 % 57.6 % 60.7 % 63.0 % 60.9 % 62.7 % Consumer Products - ----------------- Total Revenue $ 2,836 $ 2,433 $ 1,397 $ 1,439 $ 1,432 $ 1,266 $ 1,245 Operating Net Income/(3)/ 747 $ 632 350 397 368 316 320 Shareholder Value Added 573 478 263 310 286 234 241 Efficiency Ratio 38.4 % 42.7 % 40.5 % 36.5 % 38.4 % 41.4 % 42.5 % Commercial Banking - ------------------ Total Revenue $ 1,701 $ 1,719 $ 842 $ 859 $ 911 $ 883 $ 879 Operating Net Income/(4)/ 551 $ 515 278 273 233 265 266 Shareholder Value Added 296 255 154 142 111 139 137 Efficiency Ratio 39.5 % 42.9 % 39.0 % 39.9 % 48.5 % 41.7 % 43.5 % - ------------------------------------------------------------------------------------------------------------------------------------
(1) Includes goodwill amortization of $210 million in year-to-date 2001; $105 million, $106 million and $103 million in the fourth, third and second quarters of 2001, respectively. (2) Includes goodwill amortization of $174 million in year-to-date 2001; $87 million in the fourth and third quarters of 2001 and $85 in the second quarter of 2001, respectively. (3) Includes goodwill amortization of $14 million in year-to-date 2001; $7 million per quarter of 2001, respectively. (4) Includes goodwill amortization of $22 million in year-to-date 2001; $11 million in the fourth quarter of 2001, $12 million in the third quarter of 2001 and $11 million in the second quarter of 2001, respectively. Certain prior period amounts have been reclassified between segments to conform to the current period presentation. 7 E-Commerce & BankofAmerica.com - -------------------------------------------------------------------------------- Active On-line Banking Subscribers (in thousands) [GRAPHIC] - -------------------------------------------------------------------------------- Bill-payers On-line Only Total - -------------------------------------------------------------------------------- Jun-01 680 1,628 2,308 Sep-01 753 1,786 2,539 Dec-01 847 2,059 2,906 Mar-02 945 2,369 3,314 Jun-02 1,130 2,661 3,791 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Net Increase in Customer Profitability after Going On-line [GRAPHIC] 19 months 14% 31 months 21% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- % Reduction in 1-Year Attrition Rates On-line vs. Off-line Customers [GRAPHIC] On-line Only Customers 55% On-line & Bill-pay Customers 80% - -------------------------------------------------------------------------------- Bank of America has the largest active online banking customer base with nearly 3.8 million subscribers. This represents an active customer penetration rate of 27%. 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 $5.8 billion worth of bills quarterly. Bank of America has further tightened this definition to include only those customers who have used the bank's online services to pay a bill within the last 90 days. Currently, nearly 200 companies are presenting over 1.2 million e-bills per quarter. - -------------------------------------------------------------------------------- Bill payment Volume (Dollars in millions) [GRAPHIC] - -------------------------------------------------------------------------------- $ Volume % Electronic - -------------------------------------------------------------------------------- 2Q01 3,614 73% 3Q01 4,038 74% 4Q01 4,386 74% 1Q02 5,087 78% 2Q02 5,825 79% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Bank of America Direct Clients at period end [GRAPHIC] Companies Users 2Q01 4,950 32,134 3Q01 5,770 38,614 4Q01 6,746 46,062 1Q02 7,476 53,452 2Q02 8,918 61,883 - -------------------------------------------------------------------------------- 8 Consumer Credit Card Results
Included within Consumer Products - ------------------------------------------------------------------------------------------------------------------- (Dollars in millions) Year-to-Date Quarterly ------------------ ----------------------------------------------------------- Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 - ------------ ------- -------- ---------- ---------- ---------- ---------- ---------- Outstandings: - ------------ Held (Period-End) $21,155 $16,799 $21,155 $19,535 $19,884 $18,052 $16,799 Managed (Period-End) 27,089 24,871 27,089 26,558 27,185 25,513 24,871 Held (Average) 19,895 15,113 20,402 19,383 18,656 17,632 15,755 Managed (Average) 26,721 23,583 26,902 26,539 26,040 25,310 24,122 Managed Income Statement: - ------------------------ Total Revenue $ 1,666 $ 1,451 $ 821 $ 845 $ 835 $ 794 $ 742 Provision Expense 764 673 393 371 350 357 340 Noninterest Expense 473 422 239 234 228 216 219 ------- -------- ---------- ---------- ---------- ---------- ---------- Net Income Before Taxes 429 356 189 240 257 221 183 Shareholder Value Added (SVA) $ 182 $ 139 $ 75 $ 107 $ 109 $ 94 $ 71 - ----------------------------- Credit Quality: - -------------- Charge-off $: Held $ 510 $ 283 $ 269 $ 241 $ 208 $ 181 $ 158 Managed 730 545 375 355 322 307 297 Charge-off %: Held 5.17 % 3.77 % 5.28 % 5.05 % 4.43 % 4.08 % 4.01 % Managed 5.51 4.66 5.59 5.43 4.90 4.81 4.94 Managed Delinquency %: 30+ 3.78 % 3.81 % 3.78 % 4.16 % 4.12 % 3.95 % 3.81 % 90+ 1.76 1.64 1.76 1.95 1.75 1.68 1.64 - -------------------------------------------------------------------------------------------------------------------
Global Corporate and Investment Banking Segment Global Corporate and Investment Banking Segment Results - -------------------------------------------------------------------------------- (Dollars in millions)
Year-to-Date Quarterly ------------------------- ------------------------------------------------------------- Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 - ------------- ----------- ------------ ---------- ---------- ---------- ---------- --------- Total Revenue $ 4,696 $ 4,909 $ 2,359 $ 2,337 $ 2,390 $ 2,286 $ 2,446 Provision for Credit Losses 480 502 216 264 498 292 255 Operating Net Income /(1)/ 1,065 1,030 560 505 435 491 472 Shareholder Value Added 407 280 236 171 102 136 99 Return on Average Equity 18.9 % 15.1 % 20.2 % 17.7 % 14.2 % 15.1 % 13.8 % Efficiency Ratio 54.3 56.7 53.9 54.7 56.6 53.9 58.9 Selected Average Balance Sheet Components - ---------------- Total Loans and Leases $ 65,376 $ 89,801 $ 63,927 $ 66,841 $ 71,711 $ 78,220 $ 86,528 Total Deposits 63,491 66,687 63,767 63,212 66,076 68,472 67,439 Total Earning Assets 196,828 197,246 201,214 192,393 186,446 191,764 197,316
- -------------------------------------------------------------------------------- Global Corporate and Investment Banking Sub-Segment Results - --------------------------------------------------------------------------------
Year-to-Date Quarterly ------------------------- ------------------------------------------------------------- Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 - ------------ ----------- ------------ ---------- ---------- ---------- ---------- --------- Global Investment Banking - ------------------------- Total Revenue $2,594 $2,937 $1,252 $1,342 $1,259 $1,190 $1,449 Operating Net Income /(2)/ 498 616 222 276 197 214 261 Shareholder Value Added 293 394 118 175 97 106 152 Efficiency Ratio 68.1 % 66.5 % 70.7 % 65.8 % 74.4 % 68.8 % 70.5 % Global Credit Products - ---------------------- Total Revenue $1,218 $1,256 $ 658 $ 560 $ 726 $ 702 $ 627 Operating Net Income /(3)/ 330 300 209 121 154 192 149 Shareholder Value Added (96) (203) 2 (98) (67) (43) (103) Efficiency Ratio 21.9 % 23.8 % 20.6 % 23.5 % 19.3 % 21.2 % 24.5 % Global Treasury Services - ------------------------ Total Revenue $ 884 $ 716 $ 449 $ 435 $ 405 $ 394 $ 370 Operating Net Income /(4)/ 237 114 129 108 84 85 62 Shareholder Value Added 210 89 116 94 72 73 50 Efficiency Ratio 58.4 % 74.3 % 56.0 % 61.0 % 67.8 % 66.8 % 72.0 %
- -------------------------------------------------------------------------------- (1) Includes goodwill amortization of $54 million in year-to-date 2001; $27 million per quarter in 2001, respectively. (2) Includes goodwill amortization of $28 million in year-to-date 2001; $14 million per quarter in 2001, respectively. (3) Includes goodwill amortization of $21 million in year-to-date 2001; $11 million per quarter in 2001, respectively. (4) Includes goodwill amortization of $5 million in year-to-date 2001; $2 million per quarter in 2001, respectively. Certain prior period amounts have been reclassified between segments to conform to the current period presentation. 10 Asset Management Segment
Asset Management Segment Results - ------------------------------------------------------------------------------------------------------------------------------------ (Dollars in millions) Year-to-Date Quarterly ---------------------- -------------------------------------------------------------------- Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 - ------------ ------- ------- --------- --------- --------- --------- --------- Total Revenue $ 1,225 $ 1,240 $ 624 $ 601 $ 625 $ 610 $ 631 Provision for Credit Losses 170 71 144 26 34 16 63 Operating Net Income/(1)/ 213 241 72 141 133 148 113 Shareholder Value Added 78 137 3 75 80 95 61 Return on Average Equity 18.6 % 21.9 % 12.4 % 24.9 % 23.7 % 26.4 % 20.3 Efficiency Ratio 59.6 63.6 60.1 59.0 61.7 59.5 62.4 Selected Average Balance Sheet Components - ---------------- Total Loans and Leases $23,917 $24,174 $23,666 $24,171 $24,537 $24,631 $24,352 Total Deposits 11,808 11,907 11,780 11,837 11,936 11,837 11,999 Total Earning Assets 24,542 25,361 24,266 24,822 25,285 25,820 25,563 Period end (in billions) - ---------- Assets under Management $ 297.1 $ 290.8 $ 297.1 $ 314.9 $ 314.2 $ 281.8 $ 290.8 Client Brokerage Assets 90.5 101.9 90.5 96.6 99.4 93.6 101.9 Assets in Custody 41.0 49.6 41.0 46.0 46.9 43.1 49.6 ------- ------- ------- ------- ------- ------- ------- Total Client Assets $ 428.6 $ 442.3 $ 428.6 $ 457.5 $ 460.5 $ 418.5 $ 442.3 - -----------------------------------------------------------------------------------------------------------------------------------
(1) Includes goodwill amortization of $24 million in year-to-date 2001; $12 million per quarter in 2001, respectively. Certain prior period amounts have been reclassified between segments to conform to the current period presentation. 11 Equity Investments Segment
Equity Investments Segment Results - ------------------------------------------------------------------------------------------------------------------------------------ (Dollars in millions) Year-to-Date Quarterly ------------------ ---------------------------------------------------------------- Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 - ------------ ------- ------- --------- --------- --------- --------- --------- Total Revenue ($102) $ 180 ($78) ($24) ($86) ($54) $ 78 Provision for Credit Losses - - - - 9 - - Operating Net Income/(1)/ (85) 69 (53) (32) (96) (81) 36 Shareholder Value Added (211) (65) (118) (93) (162) (151) (34) Return on Average Equity (8.1) % 5.9 % (9.9) % (6.2) % (17.0) % (13.3) % 5.9 % Efficiency Ratio (36.7) 40.1 (12.1) (117.5) (72.2) (144.5) 27.9 Selected Average Balance Sheet Components - ---------------- Total Loans and Leases $ 437 $ 497 $ 448 $ 427 $ 444 $ 468 $ 491 Total Deposits - 26 - - - - 15 Total Earning Assets 441 508 448 433 453 489 513 Period end - ---------- Investment Balances for Principal Investing $5,337 $5,399 $5,337 $ 5,431 $5,376 $ 5,483 $5,399 - ------------------------------------------------------------------------------------------------------------------------------------
(1) Includes goodwill amortization of $4 million in year-to-date 2001; $2 million per quarter in 2001, respectively. Certain prior period amounts have been reclassified between segments to conform to the current period presentation. 12 Corporate Other /(1)/
Corporate Other Results(/2)/ - -------------------------------------------------------------------------------------------------------------------------- (Dollars in millions) Year-to-Date Quarterly ----------------------- -------------------------------------------------------------- Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 - ------------ ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total Revenue $ 609 $ 834 $ 311 $ 298 $ 428 $ 572 $ 491 Provision for Credit Losses 202 406 79 123 324 159 153 Operating Net Income/(3)/ 347 146 199 148 330 250 161 Shareholder Value Added (452) (460) (223) (229) (64) (118) (158) Selected Average Balance Sheet Components - ---------------- Total Loans and Leases $ 59,483 $ 94,379 $ 64,780 $ 54,125 $ 57,121 $ 75,221 $ 93,595 Total Deposits 11,474 18,674 10,271 12,692 16,903 16,680 19,237 Total Earning Assets 135,513 144,822 138,750 132,241 145,367 141,854 145,403 - --------------------------------------------------------------------------------------------------------------------------
(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) 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 $22 million in year-to-date 2001; $3 million, $7 million and $11 million in the fourth, third, and second quarters of 2001, respectively. Certain prior period amounts have been reclassified between segments to conform to the current period presentation. 13 Net Charge-offs and Net Charge-off Ratios (Dollars in millions)
2Q01 3Q01 4Q01 1Q02 2Q02 ----------------- ------------------- --------------- --------------- --------------- Amt. Ratio Amt. Ratio Amt. Ratio Amt. Ratio Amt. Ratio -------- -------- ---------- -------- ------- ------- ------- ------- ------- ------- Commercial - domestic /(1)/ $ 408 1.18% $ 412 1.26% $ 714 2.33% $ 370 1.29% $ 383 1.38% Commercial - foreign 57 0.84 57 0.89 60 1.00 49 0.90 119 2.23 Commercial real estate - domestic 12 0.18 4 0.07 17 0.29 14 0.25 8 0.14 ------ ------ ------ ------ ------ Total Commercial 477 1.00 473 1.05 791 1.86 433 1.09 510 1.32 ------ ------ ------ ------ ------ Residential mortgage 7 0.03 7 0.04 6 0.03 11 0.05 8 0.03 Home equity lines 4 0.07 4 0.07 5 0.10 8 0.15 7 0.12 Direct/indirect consumer 44 0.58 68 0.87 83 1.08 64 0.86 38 0.50 Consumer finance /(2)/ 88 0.97 746 11.75 81 2.46 75 2.49 49 1.77 Bankcard 158 4.01 181 4.08 208 4.43 241 5.05 269 5.28 Other consumer domestic 8 n/m 11 n/m 18 n/m 7 n/m 7 n/m Foreign consumer 1 0.24 1 0.21 2 0.25 1 0.16 - - ------ ------ ------ ------ ------ Total Consumer /(2)/ 310 0.65 1,018 2.27 403 0.97 407 0.99 378 0.84 ------ ------ ------ ------ ------ Total Net Charge-offs (2) $ 787 0.82 $1,491 1.65 $1,194 1.42 $ 840 1.04 $ 888 1.06 ------ ------ ------ ------ ------ By Business Segment: Consumer & Commercial Banking $ 329 0.74% $ 389 0.86% $ 536 1.18% $427 0.94% $ 449 0.99% Global Corporate & Investment Banking /(1)/ 255 1.18 292 1.48 498 2.76 264 1.60 216 1.35 Asset Management 63 1.03 16 0.26 34 0.55 26 0.44 143 2.43 Equity Investments - - - - 9 7.76 - - - - Corporate Other /(2)/ 140 0.60 794 4.19 117 0.81 123 0.92 80 0.50 ------ ------ ------ ----- ------ Total Net Charge-offs $ 787 0.82 $1,491 1.65 $1,194 1.42 $840 1.04 $ 888 1.06 ------ ------ ------ ----- ------
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 1.75% for Consumer Finance, 0.85% for Total Consumer, and 0.95% for Total Net Charge-offs. Net Charge-offs [GRAPHIC]
2Q01 3Q01 4Q01 1Q02 2Q02 --------- -------- -------- ------- ------- Total Net Charge-offs, excl. exited cons. fin. businesses $ 787 $ 856 $1,194 $ 840 $ 888 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 $ 787 $1,491 $1,194 $ 840 $ 888 Net Charge-off Ratio, incl. exited cons. fin. businesses 0.82% 1.65% 1.42% 1.04 1.06%
14 Nonperforming Assets (Dollars in millions)
2Q01 3Q01 4Q01 1Q02 2Q02 ---------- --------- ----------- ---------- --------- Commercial - domestic $3,209 $2,705 $3,123 $3,207 $2,847 Commercial - foreign 562 566 461 583 980 Commercial real estate - domestic 201 257 240 216 202 Commercial real estate - foreign 3 2 3 2 3 ---------- --------- ----------- ---------- --------- Total Commercial 3,975 3,530 3,827 4,008 4,032 ---------- --------- ----------- ---------- --------- Residential mortgage 573 491 556 477 503 Home equity lines 42 61 80 73 64 Direct/Indirect consumer 17 20 27 26 27 Consumer finance 1,234 9 9 8 8 Foreign consumer 8 8 7 9 8 ---------- --------- ----------- ---------- --------- Total Consumer 1,874 589 679 593 610 ---------- --------- ----------- ---------- --------- Total Nonperforming Loans 5,849 4,119 4,506 4,601 4,642 Foreclosed properties 346 404 402 391 297 ---------- --------- ----------- ---------- --------- Total Nonperforming Assets/(1)/ $6,195 $4,523 $4,908 $4,992 $4,939 ========== ========= =========== ========== ========= Loans past due 90 days or more and still accruing $ 608 $ 691 $ 680 $ 662 $ 605 Nonperforming Assets/ Total Assets 0.99 % 0.71 % 0.79 % 0.81 % 0.77 % Nonperforming Assets/ Total Loans, Leases and Foreclosed Properties 1.63 1.33 1.49 1.51 1.45 Nonperforming Loans/Total Loans and Leases 1.54 1.22 1.37 1.39 1.36 Allowance for Loan Losses $6,911 $6,665 $6,875 $6,869 $6,873 Allowance / Total Loans 1.82 % 1.97 % 2.09 % 2.07 % 2.02 % Allowance / Total Nonperforming Loans 118 162 153 149 148
Loans are classified as domestic or foreign based upon the domicile of the borrower. (1) Balances do not include $221 million, $304 million, $1.0 billion, $1.3 billion and $120 million of loans held for sale, included in other assets at June 30, 2002, March 31, 2002, December 31, 2001, September 30, 2001 and June 30, 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. [GRAPHIC]
2Q01 3Q01 4Q01 1Q02 2Q02 ---------- --------- ----------- ---------- --------- Total Allowance to Total Loans 1.82% 1.97% 2.09% 2.07% 2.02% Total Allowance to Total Nonperforming Loans 118% 162% 153% 149% 148%
15 Bank of America Corporation Consolidated Statement of Income - Operating Basis/(1)/ - -------------------------------------------------------------------------------- (Dollars in millions, except per share information; shares in thousands)
Year-to- Year-to- Second First Fourth Date Date Quarter Quarter Quarter 2002 2001 2002 2002 2001 ---------- ----------- ------------------------------------------ Interest income Interest and fees on loan and leases $ 10,975 $ 14,912 $ 5,530 $ 5,445 $ 5,824 Interest and dividends on securities 1,870 1,739 924 946 1,075 Federal funds sold and securities purchased under agreements to resell 485 840 270 215 254 Trading account assets 1,826 1,782 948 878 912 Other interest income 699 893 312 387 740 ---------- ----------- ----------------------------------------- Total interest income 15,855 20,166 7,984 7,871 8,805 ---------- ----------- ----------------------------------------- Interest expense Deposits 2,728 5,076 1,384 1,344 1,713 Short-term borrowings 1,006 2,598 529 477 700 Trading account liabilities 629 602 344 285 268 Long-term debt 1,245 2,221 633 612 707 ---------- ---------- ----------------------------------------- Total interest expense 5,608 10,497 2,890 2,718 3,388 ---------- ---------- ----------------------------------------- Net interest income 10,247 9,669 5,094 5,153 5,417 Noninterest income Consumer service charges 1,426 1,408 734 692 746 Corporate service charges 1,132 1,010 565 567 540 ---------- ---------- ----------------------------------------- Total service charges 2,558 2,418 1,299 1,259 1,286 ---------- ---------- ----------------------------------------- Consumer investment and brokerage services 801 778 420 381 382 Corporate investment and brokerage services 348 273 178 170 151 ---------- ---------- ----------------------------------------- Total investment and brokerage services 1,149 1,051 598 551 533 ---------- ---------- ----------------------------------------- Mortgage banking income 327 317 135 192 167 Investment banking income 805 801 464 341 473 Equity investment gains/(losses) (10) 318 (36) 26 (49) Card income 1,196 1,174 620 576 629 Trading account profits/(2)/ 608 1,075 263 345 334 Other income 288 367 138 150 25 ---------- ---------- ----------------------------------------- Total noninterest income 6,921 7,521 3,481 3,440 3,398 ---------- ---------- ----------------------------------------- Total revenue 17,168 17,190 8,575 8,593 8,815 Provision for credit losses 1,728 1,635 888 840 1,401 Gains/(losses) on sales of securities 137 (15) 93 44 393 Other noninterest expense Personnel 4,832 4,935 2,386 2,446 2,590 Occupancy 873 861 441 432 465 Equipment 541 562 279 262 280 Marketing 340 351 170 170 166 Professional fees 213 267 122 91 153 Amortization of intangibles 110 446 55 55 213 Data processing 431 377 226 205 224 Telecommunications 242 247 123 119 116 Other general operating 1,402 1,429 688 714 1,117 ---------- ---------- ----------------------------------------- Total other noninterest expense 8,984 9,475 4,490 4,494 5,324 ---------- ---------- ----------------------------------------- Operating income before income taxes 6,593 6,065 3,290 3,303 2,483 Income tax expense 2,193 2,172 1,069 1,124 426 ---------- ---------- ----------------------------------------- Operating net income $ 4,400 $ 3,893 $ 2,221 $ 2,179 $ 2,057 ---------- ---------- ----------------------------------------- Operating income available to common shareholders 4,398 3,891 2,220 2,178 2,056 ---------- ---------- ----------------------------------------- Per common share information Operating earnings 2.86 2.42 1.45 1.41 1.31 ---------- ---------- ----------------------------------------- Diluted operating earnings/(3)/ 2.77 2.39 1.40 1.38 1.28 ---------- ---------- ----------------------------------------- Dividends 1.20 1.12 0.60 0.60 0.60 ---------- ---------- ----------------------------------------- Average common shares issued and outstanding 1,538,600 1,605,193 1,533,783 1,543,471 1,570,083 ---------- ---------- ----------------------------------------- Average diluted common shares issued and outstanding 1,586,836 1,631,892 1,592,250 1,581,848 1,602,886 ---------- ---------- ----------------------------------------- As reported Net income $ 4,400 $ 3,893 $ 2,221 $ 2,179 $ 2,057 Net income available to common shareholders 4,398 3,891 2,220 2,178 2,056 Earnings per common share 2.86 2.42 1.45 1.41 1.31 Diluted earnings per common share 2.77 2.39 1.40 1.38 1.28 Third Second Quarter Quarter 2001 2001 Interest income Interest and fees on loan and leases $ 6,543 $ 7,227 Interest and dividends on securities 892 894 Federal funds sold and securities purchased under agreements to resell 321 405 Trading account assets 930 936 Other interest income 636 463 ----------------------------- Total interest income 9,322 9,925 ----------------------------- Interest expense Deposits 2,097 2,363 Short-term borrowings 869 1,221 Trading account liabilities 285 312 Long-term debt 867 999 ----------------------------- Total interest expense 4,118 4,895 ----------------------------- Net interest income 5,204 5,030 Noninterest income Consumer service charges 712 714 Corporate service charges 528 511 ----------------------------- Total service charges 1,240 1,225 ----------------------------- Consumer investment and brokerage services 386 399 Corporate investment and brokerage services 142 137 ----------------------------- Total investment and brokerage services 528 536 ----------------------------- Mortgage banking income 109 196 Investment banking income 305 455 Equity investment gains/(losses) 22 171 Card income 618 601 Trading account profits/(2)/ 433 376 Other income 174 181 ----------------------------- Total noninterest income 3,429 3,741 ----------------------------- Total revenue 8,633 8,771 Provision for credit losses 856 800 Gains/(losses) on sales of securities 97 (7) Other noninterest expense Personnel 2,304 2,534 Occupancy 448 428 Equipment 273 271 Marketing 165 174 Professional fees 144 141 Amortization of intangibles 219 223 Data processing 175 187 Telecommunications 121 128 Other general operating 757 735 ----------------------------- Total other noninterest expense 4,606 4,821 ----------------------------- Operating income before income taxes 3,268 3,143 Income tax expense 1,177 1,120 ----------------------------- Operating net income $ 2,091 $ 2,023 ----------------------------- Operating income available to common shareholders 2,089 2,022 ----------------------------- Per common share information Operating earnings 1.31 1.26 ----------------------------- Diluted operating earnings/(3)/ 1.28 1.24 ----------------------------- Dividends 0.56 0.56 ----------------------------- Average common shares issued and outstanding 1,599,692 1,601,537 ----------------------------- Average diluted common shares issued and outstanding 1,634,063 1,632,964 ----------------------------- As reported Net income $ 841 $ 2,023 Net income available to common shareholders 839 2,022 Earnings per common share 0.52 1.26 Diluted earnings per common share 0.51 1.24
(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 year-to-date 2001 included $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 $.19 per share in year-to-date 2001 and $.09 per share in the fourth, third and second quarters of 2001. Certain prior period amounts have been reclassified to conform to current period presentations. 16 Bank of America Corporation Consolidated Balance Sheet - -------------------------------------------------------------------------------- (Dollars in millions)
June 30 March 31 June 30, 2002 2002 2001 - -------------------------------------------------------------------------------------------------------------------------- Assets Cash and cash equivalents $ 21,309 $ 22,444 $ 25,405 Time deposits placed and other short-term investments 6,307 7,056 4,452 Federal funds sold and securities purchased under agreements to resell 35,449 40,771 28,317 Trading account assets 63,466 58,569 50,740 Derivative assets 24,809 19,116 16,881 Securities: Available-for-sale 82,143 74,306 53,410 Held-to-maturity 1,020 1,037 1,167 - -------------------------------------------------------------------------------------------------------------------------- Total securities 83,163 75,343 54,577 - -------------------------------------------------------------------------------------------------------------------------- Loans and leases 340,394 331,210 380,425 Allowance for credit losses (6,873) (6,869) (6,911) - -------------------------------------------------------------------------------------------------------------------------- Loans and leases, net of allowance for credit losses 333,521 324,341 373,514 - -------------------------------------------------------------------------------------------------------------------------- Premises and equipment, net 6,755 6,748 6,371 Mortgage banking assets 3,404 4,104 4,337 Goodwill 10,950 10,950 11,864 Core deposits and other intangibles 1,184 1,256 1,392 Other assets 48,131 49,223 47,675 - -------------------------------------------------------------------------------------------------------------------------- Total assets $638,448 $619,921 $625,525 ========================================================================================================================== Liabilities Deposits in domestic offices: Noninterest-bearing $101,163 $108,409 $100,199 Interest-bearing 224,582 224,630 213,036 Deposits in foreign offices: Noninterest-bearing 1,750 1,677 1,490 Interest-bearing 33,274 32,484 48,761 - -------------------------------------------------------------------------------------------------------------------------- Total deposits 360,769 367,200 363,486 - -------------------------------------------------------------------------------------------------------------------------- Federal funds purchased and securities sold under agreements to repurchase 56,678 48,545 52,189 Trading account liabilities 25,751 25,258 20,866 Derivative liabilities 17,800 12,053 13,078 Commercial paper 1,946 363 3,156 Other short-term borrowings 31,027 21,629 32,348 Accrued expenses and other liabilities 32,002 31,138 22,902 Long-term debt 59,181 60,036 63,243 Trust preferred securities 5,530 5,530 4,955 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities 590,684 571,752 576,223 - -------------------------------------------------------------------------------------------------------------------------- Shareholders' equity Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding 1,411,750; 1,452,249 and 1,587,066 shares 60 62 68 Common stock, $0.01 par value; authorized - 5,000,000,000 shares; issued and outstanding 1,515,667,160; 1,544,521,073 and 1,601,126,336 shares 1,499 3,949 7,629 Retained earnings 45,546 44,245 41,912 Accumulated other comprehensive income/(loss) 660 (72) (262) Other (1) (15) (45) - -------------------------------------------------------------------------------------------------------------------------- Total shareholders' equity 47,764 48,169 49,302 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $638,448 $619,921 $625,525 ==========================================================================================================================
17 -----END PRIVACY-ENHANCED MESSAGE-----