Exhibit 99.2
[Bank of America Logo]
Supplemental Information
Fourth Quarter 2001
January 22, 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)
Year-to- Year-to- Fourth Third Second First Fourth
Date Date Quarter Quarter Quarter Quarter Quarter
2001 2000 2001 2001 2001 2001 2000
-----------------------------------------------------------------------------------------
Operating Basis (1)
Income statement (taxable-equivalent basis)
Total revenue $ 34,981 $ 33,253 $ 8,903 $ 8,719 $ 8,858 $ 8,501 $ 8,086
Provision for credit losses 3,892 2,535 1,401 856 800 835 1,210
Gains (losses) on sales of securities 475 25 393 97 (7) (8) 2
Other noninterest expense 19,404 18,083 5,324 4,606 4,821 4,654 4,637
Income tax expense 4,118 4,797 514 1,263 1,207 1,134 856
Net income 8,042 7,863 2,057 2,091 2,023 1,870 1,385
Average diluted common shares issued
and outstanding 1,625,654 1,664,929 1,602,886 1,634,063 1,632,964 1,631,099 1,638,863
Diluted earnings per common share $4.95 $ 4.72 $ 1.28 $ 1.28 $ 1.24 $ 1.15 $ 0.85
Performance ratios
Return on average assets 1.24 % 1.17 % 1.25 % 1.29 % 1.24 % 1.17 % 0.81 %
Return on average common shareholders' equity 16.53 16.70 16.70 16.87 16.67 15.86 11.57
Efficiency ratio 55.47 54.38 59.80 52.82 54.44 54.73 57.35
Shareholder value added $ 3,087 $ 3,081 $ 793 $ 824 791 $ 679 $ 164
Cash basis financial data (2)
Earnings 8,920 8,727 2,270 2,310 2,246 2,093 1,599
Diluted earnings per common share 5.49 5.24 1.42 1.41 1.38 1.28 0.98
Return on average assets 1.37 % 1.30 % 1.38 1.43 % 1.37 % 1.31 % 0.94 %
Return on average common shareholders' equity 18.34 18.54 18.43 18.64 18.52 17.75 13.36
Efficiency ratio 52.96 51.78 57.40 50.32 51.92 52.11 54.70
- ------------------------------------------------------------------------------------------------------------------------------------
As Reported
Income statement (taxable-equivalent basis)
Total revenue $ 34,981 $ 33,253 $ 8,903 $ 8,719 $ 8,858 $ 8,501 $ 8,086
Provision for credit losses 4,287 2,535 1,401 1,251 800 835 1,210
Gains (losses) on sales of securities 475 25 393 97 (7) (8) 2
Business exit costs 1,305 - - 1,305 - - -
Restructuring charges - 550 - - - - -
Other noninterest expense 19,404 18,083 5,324 4,606 4,821 4,654 4,637
Income tax expense 3,668 4,593 514 813 1,207 1,134 856
Net income 6,792 7,517 2,057 841 2,023 1,870 1,385
Diluted earnings per common share 4.18 4.52 1.28 0.51 1.24 1.15 0.85
Cash dividends paid per common share 2.28 2.06 0.60 0.56 0.56 0.56 0.56
Performance ratios
Return on average assets 1.05 % 1.12 % 1.25 % 0.52 % 1.24 % 1.17 % 0.81 %
Return on average common shareholders' equity 13.96 15.96 16.70 6.78 16.67 15.86 11.57
Net interest yield 3.68 3.20 3.95 3.78 3.61 3.39 3.21
Book value per share $31.07 $ 29.47 $ 31.07 $ 31.66 $ 30.75 $ 30.47 $ 29.47
Cash basis financial data (2)
Earnings 7,670 8,381 2,270 1,060 2,246 2,093 1,599
Diluted earnings per common share 4.72 5.03 1.42 0.65 1.38 1.28 0.98
Return on average assets 1.18 % 1.25 % 1.38 % 0.65 % 1.37 % 1.31 % 0.94 %
Return on average common shareholders' equity 15.77 17.80 18.43 8.55 18.52 17.75 13.36
- ------------------------------------------------------------------------------------------------------------------------------------
Market price per share of common stock:
High for the period $65.54 $ 61.00 $ 64.99 $ 65.54 $ 62.18 $ 55.94 $ 54.75
Low for the period 45.00 36.31 52.10 50.25 48.65 45.00 36.31
Closing price 62.95 45.88 62.95 58.40 60.03 54.75 45.88
Market capitalization 98,158 74,033 98,158 92,396 96,116 87,709 74,033
Number of banking centers 4,268 4,390 4,268 4,274 4,275 4,339 4,390
Number of ATM's 13,136 12,921 13,136 13,009 12,883 12,866 12,921
Full-time equivalent employees 142,670 142,724 142,670 143,824 144,287 143,584 142,724
(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 and restructuring
charges of $550 million in the third quarter of 2000.
(2) Cash basis calculations exclude goodwill and other intangible amortization
expense.
Certain prior period amounts have been reclassified to conform to current period
classifications.
1
Business Segment
Cash Basis Operating Earnings
Year-to-Date 2001
(Dollars in millions)
[GRAPHIC]
Business Segment
------------------------------------------------------------------
------------------------------------------------------------------
Consumer & Commercial Banking $ 5,479 61%
Asset Management $ 578 6%
Global Corporate & Investment Banking $ 2,022 23%
Equity Investments $ (84) (1%)
Corporate Other $ 925 11%
-----------------------
$ 8,920 100%
=======================
[GRAPHIC]
Consumer & Commercial Banking
- ----------------------------------------------
- ----------------------------------------------
Banking Regions $3,108 57%
Consumer Products $1,447 26%
Commercial Banking $ 924 17%
--------------------
Total CCB $5,479 100%
====================
[GRAPHIC]
Global Corporate & Investment Banking
-------------------------------------------------
-------------------------------------------------
Global Investment Banking $932 46%
Global Credit Products $766 38%
Global Treasury Services $324 16%
-----------------
Total GCIB $2,022 100%
=================
2
Consumer and Commercial Banking Segment
Consumer and Commercial Banking Segment Results
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(Dollars in millions)
Year-to-Date Quarterly
------------------------ ------------------------------------------------
Key Measures (1) 2001 2000 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01 4 Qtr 00
- ------------- ----------- ---------- ----------- ---------- ---------- ---------- ----------
Total Revenue $21,372 $19,976 $5,634 $5,372 $5,291 $5,075 $5,138
Provision for Credit Losses 1,802 1,111 573 433 387 409 328
Net Income 4,842 4,551 1,241 1,252 1,217 1,132 1,155
Shareholder Value Added 3,165 2,830 821 828 800 716 729
Cash Basis Earnings 5,479 5,200 1,399 1,411 1,377 1,292 1,316
Return on Average Equity 25.1% 23.0% 25.7% 25.7% 25.4% 23.6% 23.6%
Cash Basis Return on Average Equity 28.4 26.3 29.0 29.0 28.7 26.9 26.9
Efficiency Ratio 54.7 56.7 54.7 53.8 54.9 55.3 55.7
Cash Basis Efficiency Ratio 51.7 53.5 51.9 50.8 51.9 52.1 52.6
Selected Average Balance
Sheet Components
- ------------------
Total Loans and Leases $181,900 $173,870 $182,888 $182,792 $182,413 $179,457 $177,245
Total Deposits 266,049 256,805 273,264 266,351 264,674 259,756 257,846
Total Earning Assets 264,281 256,044 270,931 265,507 263,607 257,405 255,766
Period end (in billions)
- ----------
Mortgage Servicing Portfolio $320.8 $335.9 $320.8 $338.4 $337.3 $337.3 $335.9
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer and Commercial Banking Sub-Segment Results
- ------------------------------------------------------------------------------------------------------------------------------------
Year-to-Date Quarterly
------------------------ ------------------------------------------------
Key Measures (1) 2001 2000 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01 4 Qtr 00
- ------------- ----------- ---------- ----------- ---------- ---------- ---------- ----------
Banking Regions
- ---------------
Total Revenue $12,427 $12,134 $3,209 $3,160 $3,093 $2,965 $3,139
Shareholder Value Added 1,767 1,693 438 489 443 397 467
Cash Basis Earnings 3,108 3,056 774 824 779 731 804
Cash Basis Efficiency Ratio 58.5% 58.1% 59.1% 57.0% 58.6% 59.2% 56.5%
Consumer Products
- -----------------
Total Revenue $5,320 $4,204 $1,486 $1,318 $1,291 $1,225 $1,105
Shareholder Value Added 1,012 649 302 233 243 234 191
Cash Basis Earnings 1,447 1,077 413 344 351 339 296
Cash Basis Efficiency Ratio 40.1% 47.7% 37.5% 40.2% 41.4% 41.7% 48.1%
Commercial Banking
- ------------------
Total Revenue $3,625 $3,638 $939 $894 $907 $885 $894
Shareholder Value Added 386 488 81 106 114 85 71
Cash Basis Earnings 924 1,067 212 243 247 222 216
Cash Basis Efficiency Ratio 45.6% 44.7% 50.3% 44.9% 44.1% 42.8% 44.5%
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(1) Cash basis calculations exclude goodwill and other intangible amortization expense.
Certain prior period amounts have been reclassified between segments to conform to the current period presentation.
Asset Management Segment
Asset Management Segment Results
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(Dollars in millions)
Year-to-Date Quarterly
------------------------ ------------------------------------------------
Key Measures (1) 2001 2000 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01 4 Qtr 00
- ------------- ----------- ---------- ----------- ---------- ---------- ---------- ----------
Total Revenue $2,474 $2,467 $625 $609 $631 $609 $620
Provision for Credit Losses 121 47 34 16 63 8 38
Net Income 521 589 132 148 113 128 122
Shareholder Value Added 312 421 78 96 61 77 80
Cash Basis Earnings 578 619 147 162 127 142 130
Return on Average Equity 23.6% 35.7% 23.7% 26.8% 20.4% 23.4% 29.5%
Cash Basis Return on Average Equity 26.1 37.5 26.3 29.3 22.9 26.0 31.4
Efficiency Ratio 62.2 59.3 62.0 59.5 62.5 64.8 61.4
Cash Basis Efficiency Ratio 59.9 58.0 59.7 57.2 60.2 62.5 60.2
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $24,381 $22,729 $24,537 $24,631 $24,352 $23,994 $24,003
Total Deposits 11,897 11,338 11,936 11,837 11,999 11,813 11,323
Total Earning Assets 25,457 23,800 25,285 25,820 25,563 25,156 25,108
Period end (in billions)
- ----------
Assets under Management $314.2 $278.1 $314.2 $281.8 $290.8 $286.9 $278.1
Client Brokerage Assets 99.4 99.5 99.4 93.6 101.9 97.3 99.5
Assets in Custody 46.9 48.5 46.9 43.1 49.6 49.5 48.5
----------- ---------- ----------- ---------- ---------- ---------- ----------
Total Client Assets 460.5 426.1 460.5 418.5 442.3 433.7 426.1
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Cash basis calculations exclude goodwill and other intangible amortization expense.
Certain prior period amounts have been reclassified between segments to conform to the current period presentation.
Global Corporate and Investment Banking Segment
Global Corporate and Investment Banking Segment Results
====================================================================================================================================
(Dollars in millions)
Year-to-Date Quarterly
-------------------- ------------------------------------------------------------
Key Measures (1) 2001 2000 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01 4 Qtr 00
- ------------- -------- ------- -------- -------- -------- -------- ---------
Total Revenue $9,231 $8,169 $2,286 $2,210 $2,355 $2,380 $1,832
Provision for Credit Losses 1,275 751 494 285 252 244 480
Net Income 1,879 1,759 412 476 454 537 90
Shareholder Value Added 644 336 124 168 139 213 (260)
Cash Basis Earnings 2,022 1,897 448 512 490 572 124
Return on Average Equity 16.4% 13.5% 15.3% 16.6% 15.5% 17.9% 2.8 %
Cash Basis Return on Average Equity 17.6 14.6 16.6 17.9 16.7 19.1 3.9
Efficiency Ratio 55.9 59.1 56.4 53.7 58.8 54.4 70.1
Cash Basis Efficiency Ratio 54.3 57.4 54.8 52.1 57.2 53.0 68.2
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $80,739 $94,391 $70,065 $76,643 $84,958 $91,570 $94,781
Total Deposits 66,983 68,364 66,076 68,472 67,439 65,927 68,289
Total Earning Assets 191,515 189,308 184,767 190,149 195,697 195,583 192,940
====================================================================================================================================
Global Corporate and Investment Banking Sub-Segment Results
====================================================================================================================================
Year-to-Date Quarterly
------------------------ --------------------------------------------------------------
Key Measures (1) 2001 2000 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01 4 Qtr 00
- ------------- --------- --------- ------------ ---------- ---------- ---------- ------------
Global Investment Banking
- -------------------------
Total Revenue $4,846 $4,132 $1,120 $1,064 $1,284 $1,378 $843
Shareholder Value Added 512 374 67 98 118 229 (50)
Cash Basis Earnings 932 778 171 208 223 330 49
Cash Basis Efficiency Ratio 69.9 % 72.6 % 76.0 % 69.8 % 72.6 % 62.7 % 94.4 %
Global Credit Products
- ----------------------
Total Revenue $2,845 $2,671 $754 $746 $694 $651 $650
Shareholder Value Added (127) (208) (21) (9) (35) (62) (238)
Cash Basis Earnings 766 887 183 208 195 180 32
Cash Basis Efficiency Ratio 20.6 % 23.5 % 17.8 % 20.6 % 22.6 % 21.6 % 27.0 %
Global Treasury Services
- ------------------------
Total Revenue $1,540 $1,366 $412 $400 $377 $351 $339
Shareholder Value Added 259 170 78 79 56 46 28
Cash Basis Earnings 324 232 94 96 72 62 43
Cash Basis Efficiency Ratio 67.4 % 77.6 % 64.8 % 63.8 % 68.9 % 73.0 % 81.8 %
====================================================================================================================================
(1) Cash basis calculations exclude goodwill and other intangible amortization
expense.
Certain prior period amounts have been reclassified between segments to conform
to the current period presentation.
5
Equity Investments Segment
Equity Investments Segment Results
====================================================================================================================================
(Dollars in millions)
Year-to-Date Quarterly
---------------------- ---------------------------------------------------------
Key Measures (1) 2001 2000 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01 4 Qtr 00
- ------------- --------- -------- --------- --------- --------- --------- ---------
Total Revenue $32 $868 ($96) ($55) $77 $106 ($89)
Provision for Credit Losses 8 4 8 - - - 1
Net Income (94) 461 (93) (57) 19 37 (73)
Shareholder Value Added (363) 241 (157) (128) (51) (27) (136)
Cash Basis Earnings (84) 472 (92) (54) 22 40 (70)
Return on Average Equity (4.0)% 24.0% (16.4)% (9.4)% 3.1 % 6.6 % (13.6)%
Cash Basis Return on Average Equity (3.6) 24.6 (16.0) (9.0) 3.5 7.1 (13.1)
Efficiency Ratio n/m 12.9 (47.4) (73.0) 64.2 45.2 (33.3)
Cash Basis Efficiency Ratio n/m 11.7 (44.7) (68.2) 60.8 42.7 (30.3)
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $476 $436 $444 $468 $491 $504 $462
Total Deposits 13 14 - - 15 37 19
Total Earning Assets 489 456 453 489 513 504 473
Period end
- ----------
Investment Balances for Principal Investing $5,376 $5,171 $5,376 $5,483 $5,399 $5,256 $5,171
===================================================================================================================================
(1) Cash basis calculations exclude goodwill and other intangible amortization
expense.
Certain prior period amounts have been reclassified between segments to conform
to the current period presentation.
Corporate Other (1)
Corporate Other Segment Results - Operating Basis (2)
======================================================================================================================
(Dollars in millions)
Year-to-Date Quarterly
---------------------- ---------------------------------------------------------------
Key Measures (3) 2001 2000 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01 4 Qtr 00
- ------------- ---------- -------- --------- ---------- --------- --------- ---------
Total Revenue $1,872 $1,773 $454 $583 $504 $331 $585
Provision for Credit Losses 686 622 292 122 98 174 363
Operating Net Income 894 503 365 272 220 36 91
Shareholder Value Added (671) (747) (73) (140) (158) (300) (249)
Cash Basis Earnings 925 539 368 279 230 47 99
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $77,951 $101,196 $55,420 $73,192 $91,286 $92,365 $103,058
Total Deposits 17,711 16,773 16,895 16,668 19,222 18,084 20,077
Total Earning Assets 141,796 179,201 143,546 139,656 142,878 141,101 176,220
=======================================================================================================================
(1) Corporate Other consists primarily of the functions associated with
managing the interest rate risk of the Corporation and Consumer Special
Assets which includes certain consumer finance businesses being
liquidated and certain residential mortgages originated by the mortgage
group (not from retail branch originations).
(2) 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 and restructuring
charges of $550 million in the third quarter of 2000.
(3) Cash basis calculations exclude goodwill and other intangible amortization
expense.
Certain prior period amounts have been reclassified between segments to conform
to the current period presentation.
7
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- Fourth Third Second First Fourth
Date Date Quarter Quarter Quarter Quarter Quarter
2001 2000 2001 2001 2001 2001 2000
------------------------ ---------------------------------------------------------------
Interest income
Interest and fees on loan and leases $ 27,166 $ 31,818 $ 5,795 $ 6,511 $ 7,201 $ 7,659 $ 8,224
Interest and dividends on securities 3,706 5,006 1,075 891 894 846 1,177
Federal funds sold and securities purchased
under agreements to resell 1,414 2,354 253 321 405 435 551
Trading account assets 3,623 2,725 911 930 936 846 751
Other interest income 2,384 1,262 771 669 489 455 434
------------- --------- -----------------------------------------------------------------
Total interest income 38,293 43,165 8,805 9,322 9,925 10,241 11,137
------------- --------- -----------------------------------------------------------------
Interest expense
Deposits 8,886 11,007 1,713 2,097 2,363 2,713 2,924
Short-term borrowings 4,167 7,957 700 869 1,221 1,377 1,942
Trading account liabilities 1,155 892 268 285 312 290 285
Long-term debt 3,795 4,960 707 867 999 1,222 1,322
------------- --------- -----------------------------------------------------------------
Total interest expense 18,003 24,816 3,388 4,118 4,895 5,602 6,473
-------------- --------- -----------------------------------------------------------------
Net interest income 20,290 18,349 5,417 5,204 5,030 4,639 4,664
Noninterest income
Consumer service charges 2,866 2,654 746 712 714 694 706
Corporate service charges 2,078 1,889 540 528 511 499 475
-------------- --------- -----------------------------------------------------------------
Total service charges 4,944 4,543 1,286 1,240 1,225 1,193 1,181
-------------- --------- -----------------------------------------------------------------
Consumer investment and brokerage services 1,546 1,466 382 386 399 379 358
Corporate investment and brokerage services 566 463 151 142 137 136 123
-------------- --------- -----------------------------------------------------------------
Total investment and brokerage services 2,112 1,929 533 528 536 515 481
-------------- --------- -----------------------------------------------------------------
Mortgage banking income 593 512 167 109 196 121 146
Investment banking income 1,579 1,512 473 305 455 346 366
Equity investment gains/(losses) 291 1,054 (49) 22 171 147 (65)
Card income 2,421 2,229 629 618 601 573 595
Trading account profits (2) 1,842 1,923 334 433 376 699 293
Other income 566 880 25 174 181 186 331
-------------- --------- -----------------------------------------------------------------
Total noninterest income 14,348 14,582 3,398 3,429 3,741 3,780 3,328
-------------- --------- -----------------------------------------------------------------
Total revenue 34,638 32,931 8,815 8,633 8,771 8,419 7,992
Provision for credit losses 3,892 2,535 1,401 856 800 835 1,210
Gains/(losses) on sales of securities 475 25 393 97 (7) (8) 2
Other noninterest expense
Personnel 9,829 9,400 2,590 2,304 2,534 2,401 2,257
Occupancy 1,774 1,682 465 448 428 433 434
Equipment 1,115 1,173 280 273 271 291 291
Marketing 682 621 166 165 174 177 223
Professional fees 564 452 153 144 141 126 154
Amortization of intangibles 878 864 213 219 223 223 214
Data processing 776 667 224 175 187 190 172
Telecommunications 484 527 116 121 128 119 136
Other general operating 2,687 2,114 956 613 574 545 585
General administrative 615 583 161 144 161 149 171
-------------- --------- -----------------------------------------------------------------
Total other noninterest expense 19,404 18,083 5,324 4,606 4,821 4,654 4,637
-------------- --------- -----------------------------------------------------------------
Operating income before income taxes 11,817 12,338 2,483 3,268 3,143 2,922 2,147
Income tax expense 3,775 4,475 426 1,177 1,120 1,052 762
-------------- --------- -----------------------------------------------------------------
Operating net income $ 8,042 $ 7,863 $ 2,057 $ 2,091 $ 2,023 $ 1,870 $ 1,385
-------------- --------- -----------------------------------------------------------------
Operating income available to common
shareholders 8,037 7,857 2,056 2,089 2,022 1,869 1,383
-------------- --------- -----------------------------------------------------------------
Per share information
Operating earnings per common share 5.04 4.77 1.31 1.31 1.26 1.16 0.85
-------------- --------- -----------------------------------------------------------------
Diluted operating earnings per
common share 4.95 4.72 1.28 1.28 1.24 1.15 0.85
------------- --------- -----------------------------------------------------------------
Dividends per common share 2.28 2.06 0.60 0.56 0.56 0.56 0.56
------------- --------- -----------------------------------------------------------------
Average common shares issued
and outstanding 1,594,957 1,646,398 1,570,083 1,599,692 1,601,537 1,608,890 1,623,721
------------- --------- -----------------------------------------------------------------
Average diluted common shares
issued and outstanding 1,625,654 1,664,929 1,602,886 1,634,063 1,632,964 1,631,099 1,638,863
------------- --------- -----------------------------------------------------------------
As reported
Net income $ 6,792 $ 7,517 $ 2,057 $ 841 $ 2,023 $ 1,870 $ 1,385
Net income available to
common shareholders 6,787 7,512 2,056 839 2,022 1,869 1,383
Earnings per common share 4.26 4.56 1.31 0.52 1.26 1.16 0.85
Diluted earnings per common share 4.18 4.52 1.28 0.51 1.24 1.15 0.85
(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 and
restructuring charges of $550 million in the third quarter of 2000.
(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.
Certain prior period amounts have been reclassified to conform to current period
presentations.
8
Bank of America Corporation
Consolidated Balance Sheet
- --------------------------------------------------------------------------------
(Dollars in millions)
December 31 September 30 December 31
2001 2001 2000
Assets
Cash and cash equivalents $ 26,837 $ 23,280 $ 27,513
Time deposits placed and other short-term investments 5,932 4,629 5,448
Federal funds sold and securities purchased under agreements to resell 28,108 26,450 28,055
Trading account assets 47,344 53,471 43,041
Derivative assets 22,147 23,816 15,534
Securities:
Available-for-sale 84,450 74,815 64,651
Held-to-maturity 1,049 1,149 1,187
- ------------------------------------------------------------------------------------------------------------------------------------
Total securities 85,499 75,964 65,838
- ------------------------------------------------------------------------------------------------------------------------------------
Loans and leases 329,153 339,018 392,193
Allowance for credit losses (6,875) (6,665) (6,838)
- ------------------------------------------------------------------------------------------------------------------------------------
Loans and leases, net of allowance for credit losses 322,278 332,353 385,355
- ------------------------------------------------------------------------------------------------------------------------------------
Premises and equipment, net 6,414 6,372 6,433
Interest receivable 2,800 3,355 4,432
Mortgage banking assets 3,886 3,477 3,762
Goodwill 10,854 11,028 11,643
Core deposits and other intangibles 1,294 1,330 1,499
Other assets 58,371 74,580 43,638
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets $ 621,764 $ 640,105 $ 642,191
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Deposits in domestic offices:
Noninterest-bearing $ 112,064 $ 98,881 $ 98,722
Interest-bearing 220,703 215,569 211,978
Deposits in foreign offices:
Noninterest-bearing 1,870 1,854 1,923
Interest-bearing 38,858 43,566 51,621
- ------------------------------------------------------------------------------------------------------------------------------------
Total deposits 373,495 359,870 364,244
- ------------------------------------------------------------------------------------------------------------------------------------
Federal funds purchased and securities sold under agreements to repurchase 47,727 59,839 49,411
Trading account liabilities 19,452 22,575 20,947
Derivative liabilities 14,868 18,193 22,402
Commercial paper 1,558 2,544 6,955
Other short-term borrowings 20,659 20,396 35,243
Accrued expenses and other liabilities 27,459 40,369 22,859
Long-term debt 62,496 61,213 67,547
Trust preferred securities 5,530 4,955 4,955
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 573,244 589,954 594,563
- ------------------------------------------------------------------------------------------------------------------------------------
Shareholders' equity
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and
outstanding 1,514,478; 1,556,979 and 1,692,172 shares 65 67 72
Common stock, $0.01 par value; authorized - 5,000,000,000 shares; issued and
outstanding 1,559,297,220; 1,582,129,416 and 1,613,632,036 shares 5,076 6,491 8,613
Retained earnings 42,980 41,857 39,815
Accumulated other comprehensive income/(loss) 437 1,731 (746)
Other (38) 5 (126)
- ------------------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 48,520 50,151 47,628
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $ 621,764 $ 640,105 $ 642,191
- ------------------------------------------------------------------------------------------------------------------------------------
9
Bank of America Corporation
Average Balances and Interest Rates - Taxable-Equivalent Basis
===================================================================================================================================
(Dollars in millions)
Year-to-Date 2001 Year-to-Date 2000
-------------------------------------------------------------------
Interest Interest
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
Earning assets ----------------------------------------------------------------------
Time deposits placed and other short-term investments $ 6,723 $ 318 4.73 % $ 4,863 $ 336 6.91%
Federal funds sold and securities purchased under
agreements to resell 35,202 1,414 4.02 42,021 2,354 5.60
Trading account assets 66,418 3,653 5.50 48,938 2,751 5.62
Total securities (1) 60,372 3,761 6.23 84,211 5,111 6.07
Loans and leases(2)
Commercial - domestic 133,569 9,879 7.40 148,168 12,025 8.12
Commercial - foreign 26,492 1,567 5.90 29,316 2,114 7.21
Commercial real estate - domestic 24,607 1,700 6.91 25,878 2,299 8.88
Commercial real estate - foreign 348 20 6.08 304 27 8.87
---------------------------------- ---------------------------------
Total commercial 185,016 13,166 7.12 203,666 16,465 8.08
---------------------------------- ---------------------------------
Residential mortgage 81,472 5,920 7.27 91,091 6,754 7.41
Home equity lines 22,013 1,625 7.38 19,492 1,748 8.97
Direct/Indirect consumer 39,528 3,025 7.65 41,476 3,446 8.31
Consumer finance 18,555 1,683 9.07 24,395 2,160 8.85
Bankcard 16,641 1,879 11.29 10,279 1,241 12.07
Foreign consumer 2,222 127 5.80 2,223 195 8.77
---------------------------------- --------------------------------
Total consumer 180,431 14,259 7.90 188,956 15,544 8.23
---------------------------------- --------------------------------
Total loans and leases 365,447 27,425 7.50 392,622 32,009 8.15
---------------------------------- ---------------------------------
Other earning assets 26,154 2,065 7.90 10,812 926 8.57
---------------------------------- ---------------------------------
Total earning assets(3) 560,316 38,636 6.90 583,467 43,487 7.45
---------------------------------- ---------------------------------
Cash and cash equivalents 22,542 24,766
Other assets, less allowance for credit losses 66,689 63,340
---------------------------------- ---------------------------------
Total assets $649,547 $671,573
================================== =================================
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings $20,208 213 1.05 $23,452 314 1.34
NOW and money market deposit accounts 114,657 2,498 2.18 99,927 2,941 2.94
Consumer CDs and IRAs 74,458 3,853 5.17 77,409 4,205 5.43
Negotiable CDs, public funds and other time deposits 5,848 290 4.96 7,626 481 6.31
---------------------------------- --------------------------------
Total domestic interest-bearing deposits 215,171 6,854 3.19 208,414 7,941 3.81
---------------------------------- ---------------------------------
Foreign interest-bearing deposits(4)
Banks located in foreign countries 23,397 1,053 4.49 18,788 1,130 6.01
Governments and official institutions 3,615 152 4.21 8,922 513 5.75
Time, savings, and other 22,940 827 3.62 26,024 1,423 5.47
---------------------------------- --------------------------------
Total foreign interest-bearing deposits 49,952 2,032 4.07 53,734 3,066 5.71
---------------------------------- ---------------------------------
Total interest-bearing deposits 265,123 8,886 3.35 262,148 11,007 4.20
---------------------------------- -------------------------------
Federal funds purchased, securities sold under agreements
to repurchase and other short-term borrowings 92,476 4,167 4.51 131,492 7,957 6.05
Trading account liabilities 29,995 1,155 3.85 23,843 892 3.74
Long-term debt(5) 69,622 3,795 5.45 70,293 4,960 7.06
---------------------------------- --------------------------------
Total interest-bearing liabilities(6) 457,216 18,003 3.94 487,776 24,816 5.09
---------------------------------- ---------------------------------
Noninterest-bearing sources:
Noninterest-bearing deposits 97,529 91,146
Other liabilities 46,124 45,519
Shareholders' equity 48,678 47,132
---------------------------------- -------------------------------
Total liabilities and shareholders' equity $649,547 $671,573
================================== =================================
Net interest spread 2.96 2.36
Impact of noninterest-bearing sources .72 .84
---------------------------------- ---------------------------------
Net interest income/yield on earning assets $20,633 3.68 % $18,671 3.20 %
================================== ================================
(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) Taxable-equivalent basis adjustments of $343 and $322 were included in
interest income for year-to-date 2001 and 2000, respectively. Interest
income also includes the impact of interest rate risk management contracts,
which increased (decreased) interest income by $978 million and ($48)
million in 2001 and 2000, 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) Long-term debt includes trust preferred securities.
(6) Interest expense also includes the impact of interest rate risk management
contracts, which (increased) decreased interest expense by $63 million and
($36) million in 2001 and 2000, respectively. These amounts were
substantially offset by corresponding decreases (increases) in the interest
paid on the underlying liabilities.
11
Bank of America Corporation
Average Balances and Interest Rates - Taxable-Equivalent Basis
- ------------------------------------------------------------------------------
(Dollars in millions)
Fourth Quarter 2001 Third Quarter 2001 Fourth Quarter 2000
--------------------------------- ------------------------------- -------------------------
Interest Interest Interest
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate Balance Expense Rate
---------- --------------------- -------- ------------- -------- ----------- --------- ------
Earning assets
Time deposits placed
and other short-term
investments $ 7,255 $ 64 3.47% $ 5,881 $ 71 4.84% $ 5,663 $ 99 6.96%
Federal funds sold and
securities
purchased under
agreements to resell 38,825 253 2.60 36,133 321 3.54 37,936 551 5.79
Trading account assets 67,535 920 5.43 68,258 937 5.46 53,251 758 5.68
Total securities (1) 71,454 1,090 6.10 58,930 902 6.12 79,501 1,205 6.05
Loans and leases(2)
Commercial - domestic 121,399 2,138 6.99 129,673 2,343 7.17 147,336 3,034 8.19
Commercial - foreign 23,789 278 4.63 25,267 353 5.54 30,408 560 7.32
Commercial real estate
- domestic 23,051 316 5.45 24,132 395 6.50 27,220 622 9.09
Commercial real estate
- foreign 375 4 4.49 366 5 5.78 264 6 8.44
----------------------------- --------------------------------- ----------------------------
Total commercial 168,614 2,736 6.44 179,438 3,096 6.85 205,228 4,222 8.18
----------------------------- --------------------------------- ----------------------------
Residential mortgage 78,366 1,385 7.05 80,526 1,457 7.22 92,679 1,733 7.47
Home equity lines 22,227 340 6.07 22,115 394 7.06 21,117 483 9.11
Direct/Indirect consumer 38,074 752 7.83 39,481 753 7.56 40,390 843 8.30
Consumer finance 5,324 127 9.55 16,358 359 8.77 25,592 570 8.91
Bankcard 18,656 498 10.58 17,632 493 11.11 12,295 384 12.43
Foreign consumer 2,093 21 4.02 2,176 28 5.28 2,248 48 8.49
----------------------------- --------------------------------- ----------------------------
Total consumer 164,740 3,123 7.54 178,288 3,484 7.78 194,321 4,061 8.34
----------------------------- --------------------------------- ----------------------------
Total loans and
leases 333,354 5,859 6.99 357,726 6,580 7.31 399,549 8,283 8.26
----------------------------- --------------------------------- ----------------------------
Other earning assets 36,782 707 7.67 30,180 597 7.89 14,828 335 9.00
----------------------------- --------------------------------- ----------------------------
Total earning
assets(3) 555,205 8,893 6.37 557,108 9,408 6.72 590,728 11,231 7.58
----------------------------- --------------------------------- ----------------------------
Cash and cash equivalents 23,182 20,753 23,458
Other assets, less allowance
for credit losses 73,410 64,323 63,272
----------------------------- --------------------------------- ----------------------------
Total assets $651,797 $642,184 $677,458
----------------------------- --------------------------------- ----------------------------
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings $ 20,132 42 0.83 $ 20,076 53 1.04 $ 22,454 80 1.42
NOW and money market
deposit accounts 121,758 426 1.39 116,638 588 2.00 101,376 788 3.09
Consumer CDs and IRAs 71,895 898 4.96 73,465 918 4.95 78,298 1,105 5.62
Negotiable CDs, public
funds and other
time deposits 5,196 44 3.39 5,085 57 4.44 7,570 127 6.68
----------------------------- --------------------------------- ----------------------------
Total domestic
interest-bearing
deposits 218,981 1,410 2.56 215,264 1,616 2.98 209,698 2,100 3.98
----------------------------- --------------------------------- ----------------------------
Foreign interest-bearing
deposits(4)
Banks located in foreign
countries 20,771 170 3.22 24,097 257 4.22 26,223 424 6.43
Governments and official
institutions 2,965 20 2.74 3,533 35 3.90 5,884 61 4.14
Time, savings, and other 21,858 113 2.06 23,847 189 3.16 24,064 339 5.62
----------------------------- --------------------------------- ----------------------------
Total foreign interest-
bearing deposits 45,594 303 2.63 51,477 481 3.71 56,171 824 5.84
----------------------------- --------------------------------- ----------------------------
Total interest-
bearing deposits 264,575 1,713 2.57 266,741 2,097 3.12 265,869 2,924 4.38
----------------------------- --------------------------------- ----------------------------
Federal funds purchased,
securities sold under
agreements to repurchase
and other short-term
borrowings 87,291 700 3.18 89,042 869 3.87 122,680 1,942 6.30
Trading account liabilities 29,921 268 3.55 30,913 285 3.66 27,548 285 4.13
Long-term debt(5) 68,141 707 4.15 67,267 867 5.15 73,041 1,322 7.24
----------------------------- --------------------------------- ----------------------------
Total interest-
bearing
liabilities(6) 449,928 3,388 2.99 453,963 4,118 3.61 489,138 6,473 5.27
----------------------------- --------------------------------- ----------------------------
Noninterest-bearing sources:
Noninterest-bearing deposits 103,596 96,587 91,685
Other liabilities 49,357 42,432 48,996
Shareholders' equity 48,916 49,202 47,639
----------------------------- --------------------------------- ----------------------------
Total liabilities
and shareholders'
equity $651,797 $642,184 $677,458
----------------------------- --------------------------------- ----------------------------
Net interest spread 3.38 3.11 2.31
Impact of noninterest-bearing
sources .57 .67 .90
----------------------------- --------------------------------- ----------------------------
Net interest income/yield on
earning assets $5,505 3.95% $5,290 3.78 % $4,758 3.21%
----------------------------- --------------------------------- ---------------------------
- ------------------
(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 $88 and
$86 in the fourth and third quarters of 2001 and $94 in the fourth quarter
of 2000, respectively. Interest income also includes the impact of interest
rate risk management contracts, which increased (decreased) interest income
by $473 million and $284 million in the fourth and third quarters of 2001
and ($31) million in the fourth quarter of 2000, 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) Long-term debt includes trust preferred securities.
(6) Interest expense also includes the impact of interest rate risk management
contracts, which (increased) decreased interest expense by ($40) million
and $31 million in the fourth and third quarters of 2001 and ($7) in the
fourth quarter of 2000, respectively. These amounts were substantially
offset by corresponding decreases (increases) in the interest paid on the
underlying liabilities.
11
Average Managed Loans & Leases
(Dollars in millions)
4Q00 1Q01 2Q01 3Q01 4Q01
----------- ----------- ----------- ----------- -----------
Commercial - Domestic $146,505 $145,054 $140,648 $131,939 $123,529
Commercial - Foreign 29,720 28,912 26,968 25,069 23,789
Commercial Real Estate - Domestic 26,326 25,989 25,293 24,132 23,051
Commercial Real Estate - Foreign 264 300 352 366 375
----------- ----------- ----------- ----------- -----------
Total Commercial 202,815 200,255 193,261 181,506 170,744
----------- ----------- ----------- ----------- -----------
Residential Mortgage 73,201 72,482 76,670 78,872 80,423
Home Equity Lines 21,117 21,744 21,958 22,115 22,227
Direct/Indirect Consumer (1) 39,532 39,839 39,885 39,601 38,498
Consumer Finance (1) 4,241 4,602 5,514 5,959 5,324
Bankcard 21,461 23,038 24,122 25,310 26,040
Consumer Foreign 2,248 2,330 2,291 2,176 2,093
----------- ----------- ----------- ----------- -----------
Total Consumer (1) 161,800 164,035 170,440 174,033 174,605
----------- ----------- ----------- ----------- -----------
Total Managed Loans & Leases $364,615 $364,290 $363,701 $355,539 $345,349
=========== =========== =========== =========== ===========
Annualized Growth Rate from
previous quarter by loan type:
Total Commercial (9) % (5) % (14) % (24) % (24)%
Total Consumer (1) 10 6 16 8 1
Total Managed Loans & Leases (1) - (1) (9) (11)
by Business Segment:
Consumer & Commercial Banking - %
Asset Management (2)
Global Corporate & Investment Banking (33)
(1) In the fourth quarter of 2001 consumer loans grew 6% from third quarter
2001, excluding the impact of our run-off portfolios (auto leasing and
manufactured housing).
Loans are classified as domestic or foreign based upon the domicile of the
borrower. Prior periods are restated for comparison (e.g. acquisitions,
divestitures, sales and securitizations).
Average Managed Loans & Leases
[GRAPHIC]
4Q00 1Q01 2Q01 3Q01 4Q01
Commercial and commercial real estate - domestic 47 % 47 % 46 % 44 % 42 %
Commercial and commercial real estate - foreign 8 8 8 7 7
Residential mortgage 20 20 21 22 23
Bankcard 6 6 7 7 8
Other consumer, home equity lines and consumer finance 19 19 18 20 20
Average Managed Loans & Leases
(Dollars in millions)
Year-to- Year-to- %
Date 2000 Date 2001 Growth
------------------- ------------------- ------------------
Commercial - Domestic $147,947 $135,750 (8.2)%
Commercial - Foreign 28,880 26,492 (8.3)
Commercial Real Estate - Domestic 25,381 24,607 (3.0)
Commercial Real Estate - Foreign 304 348 14.5
------------------- -------------------
Total Commercial 202,512 187,197 (7.6)
------------------- -------------------
Residential Mortgage 79,440 84,005 5.7
Home Equity Lines 19,492 22,013 12.9
Direct/Indirect Consumer (1) 39,743 40,051 0.8
Consumer Finance (1) 16,219 18,555 14.4
Bankcard 20,222 24,637 21.8
Consumer Foreign 2,223 2,222 -
------------------- -------------------
Total Consumer (1) 177,339 191,483 8.0
------------------- -------------------
Total Managed Loans & Leases $379,851 $378,680 (0.3)
=================== ===================
Growth Rate from Prior Year
by Business Segment:
Consumer & Commercial Banking 6 %
Asset Management 7
Global Corporate & Investment Banking (13)
(1) In year-to-date 2001 consumer loans grew 9% from year-to-date
2000, excluding the impact of our run-off portfolios (auto
leasing and manufactured housing).
Loans are classified as domestic or foreign based upon the domicile of the borrower.
Prior periods are restated for comparison (e.g. acquisitions, divestitures, sales and securitizations).
Managed Loans & Leases
[GRAPHIC]
2000 2001
Commercial and commercial real estate - domestic 46% 42%
Commercial and commercial real estate - foreign 8 7
Residential mortgage 21 22
Bankcard 5 7
Other consumer, home equity lines and consumer finance 20 22
13
Net Charge-offs and Net Charge-off Ratios
(Dollars in millions)
4Q00 1Q01 2Q01 3Q01 4Q01
----------------- ---------------- --------------- ---------------- ------------------
Amt. Ratio Amt. Ratio Amt. Ratio Amt. Ratio Amt. Ratio
--------- ------ ------- -------- ------- ------- ------- ------- -------- --------
Commercial - domestic (1) $704 1.90 % $415 1.17 % $408 1.18 % $412 1.26 % $714 2.33 %
Commercial - foreign 34 0.45 34 0.46 57 0.84 57 0.89 60 1.00
Commercial real estate - domestic 3 - 6 - 12 0.18 4 0.07 17 0.29
--------- --------- ------- ------- --------
Total Commercial 741 1.44 455 0.92 477 1.00 473 1.05 791 1.86
--------- --------- ------- ------- --------
Residential mortgage 13 0.05 6 0.03 7 0.03 7 0.04 6 0.03
Home equity lines 12 0.24 6 0.11 4 0.07 4 0.07 5 0.10
Direct/indirect consumer 111 1.10 75 0.76 65 0.65 94 0.94 115 1.20
Consumer finance (2) 82 1.27 93 1.45 67 1.00 720 17.47 49 3.65
Bankcard 101 3.25 125 3.51 158 4.01 181 4.08 208 4.43
Other consumer domestic 14 n/m 11 n/m 8 n/m 11 n/m 18 n/m
Foreign consumer 1 0.18 1 0.19 1 0.24 1 0.21 2 0.25
--------- --------- ------- ------- --------
Total Consumer (2) 334 0.69 317 0.68 310 0.65 1,018 2.27 403 0.97
--------- --------- ------- ------- --------
Total Net Charge-offs (2) $1,075 1.07 $772 0.81 $787 0.82 $1,491 1.65 $1,194 1.42
========= ========= ======= ======= ========
Managed bankcard information:
End of period receivables $23,009 $23,185 $24,871 $25,501 $27,185
Average receivables 21,461 23,038 24,122 25,310 26,040
Charge-offs 233 248 297 307 322
Charge-off ratio 4.32% 4.37% 4.94% 4.81% 4.90%
By Business Segment:
Consumer & Commercial Banking $427 0.96 % $409 0.92 % $388 0.85 % $433 0.94 % $572 1.24 %
Global Corporate & Investment Banking 505 2.12 244 1.08 252 1.19 285 1.47 494 2.80
Asset Management 38 0.62 8 0.14 63 1.03 16 0.26 34 0.55
Equity Investments 1 1.14 - - - - - - 8 7.75
Corporate Other (1) 104 0.40 111 0.49 84 0.38 757 4.11 86 0.59
--------- --------- ------- ------- --------
Total Net Charge-offs $1,075 1.07 $772 0.81 $787 0.82 $1,491 1.65 $1,194 1.42
========= ========= ======= ======= ========
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
[GRAPHIC]
4Q00 1Q01 2Q01 3Q01 4Q01
---------- -------- -------- -------- ---------
Total Net Charge-offs, excl. exited cons. fin. businesses $ 1,075 $ 772 $ 787 $ 856 $ 1,194
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 $ 1,075 $ 772 $ 787 $ 1,491 $ 1,194
Net Charge-off Ratio, incl. exited cons. fin. businesses 1.07 % 0.81 % 0.82 % 1.65 % 1.42 %
15
Net Charge-offs and Net Charge-off Ratios
(Dollars in millions)
Year-to-Date 2001
Year-to-Date 2001 excl. Business Exit (1) Year-to-Date 2000
Amt. Ratio Amt. Ratio Amt. Ratio
----------- ---------- ---------- ---------- ----------- ---------
Commercial - domestic (2) $1,949 1.46 % $1,949 1.46 % $1,287 0.87 %
Commercial - foreign 208 0.78 208 0.78 86 0.29
Commercial real estate - domestic 39 0.16 39 0.16 13 0.05
Commercial real estate - foreign - - - - (2) -
----------- ---------- -----------
Total Commercial 2,196 1.19 2,196 1.19 1,384 0.68
----------- ---------- -----------
Residential mortgage 26 0.03 26 0.03 27 0.03
Home equity lines 19 0.09 19 0.09 20 0.10
Direct/indirect consumer 349 0.88 349 0.88 324 0.78
Consumer finance 929 5.01 294 1.58 266 1.09
Bankcard 672 4.04 672 4.04 338 3.29
Other consumer domestic 48 n/m 48 n/m 38 n/m
Foreign consumer 5 0.22 5 0.22 3 0.13
----------- ---------- -----------
Total Consumer 2,048 1.14 1,413 0.78 1,016 0.54
----------- ---------- -----------
Total Net Charge-offs 4,244 1.16 3,609 0.99 2,400 0.61
=========== ========== ===========
Managed bankcard information:
End of period receivables $27,185 $27,185 $22,830
Average receivables 24,637 24,637 20,222
Charge-offs 1,174 1,174 944
Charge-off ratio 4.76 % 4.76 % 4.66 %
By Business Segment:
Consumer & Commercial Banking $1,802 0.99 % $1,802 0.99 % $1,115 0.64 %
Global Corporate & Investment Banking 1,275 1.58 1,275 1.58 917 0.97
Asset Management 121 0.50 121 0.50 35 0.15
Equity Investments 8 1.73 8 1.73 2 0.39
Corporate Other 1,038 1.33 403 0.52 331 0.33
----------- ---------- -----------
Total Net Charge-offs $4,244 1.16 $3,609 0.99 $2,400 0.61
=========== ========== ===========
Loans are classified as domestic or foreign based upon the domicile of
the borrower.
(1) Excludes $635 million related to exit of certain consumer finance
businesses in the third quarter of 2001.
(2) Year-to-date 2001 includes $210 million related to Enron.
16
Nonperforming Assets
(Dollars in millions)
4Q00 1Q01 2Q01 3Q01 4Q01
---------- --------- ---------- ---------- ---------
Commercial - domestic $2,777 $3,110 $3,209 $2,705 $3,123
Commercial - foreign 486 529 562 566 461
Commercial real estate - domestic 236 206 201 257 240
Commercial real estate - foreign 3 3 3 2 3
---------- --------- ---------- ---------- ---------
Total Commercial 3,502 3,848 3,975 3,530 3,827
---------- --------- ---------- ---------- ---------
Residential mortgage 551 553 573 491 556
Home equity lines 32 36 42 61 80
Direct/Indirect consumer 19 19 17 20 27
Consumer finance 1,095 1,153 1,234 9 9
Foreign consumer 9 11 8 8 7
---------- --------- ---------- ---------- ---------
Total Consumer 1,706 1,772 1,874 589 679
---------- --------- ---------- ---------- ---------
Total Nonperforming Loans 5,208 5,620 5,849 4,119 4,506
Foreclosed properties 249 277 346 404 402
---------- --------- ---------- ---------- ---------
Total Nonperforming Assets(1) $5,457 $5,897 $6,195 $4,523 $4,908
========== ========= ========== ========== =========
Loans past due 90 days or more and still accruing $495 $527 $608 $691 $680
Nonperforming Assets/ Total Assets 0.85 % 0.97 % 0.99 % 0.71 % 0.79 %
Nonperforming Assets/ Total Loans, Leases and
Foreclosed Properties 1.39 1.54 1.63 1.33 1.49
Nonperforming Loans/Total Loans and Leases 1.33 1.47 1.54 1.22 1.37
Allowance for Loan Losses $6,838 $6,900 $6,911 $6,665 $6,875
Allowance / Total Loans 1.74 % 1.80 % 1.82 % 1.97 % 2.09 %
Allowance / Total Nonperforming Loans 131 123 118 162 153
Nonperforming Assets by Business Segment:
Consumer & Commercial Banking $1,223 $1,446 $1,723 $1,846 $1,955
Global Corporate & Investment Banking 2,376 2,433 2,325 1,806 1,995
Asset Management 166 235 228 210 221
Equity Investments 20 20 43 58 67
Corporate Other 1,672 1,763 1,876 603 670
---------- --------- ---------- ---------- ---------
Total Nonperforming Assets (1) $5,457 $5,897 $6,195 $4,523 $4,908
========== ========= ========== ========== =========
Loans are classified as domestic or foreign based upon the domicile of the
borrower.
(1) Balances do not include $1.1 billion, $1.3 billion, $120 million, $144
million and $124 million of loans held for sale, included in other assets
at December 31, 2001, September 30, 2001, June 30, 2001, March 31, 2001,
and December 31, 2000, 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]
4Q00 1Q01 2Q01 3Q01 4Q01
------------ ------------ ------------ ------------ ------------
Total Allowance to Total Loans 1.74% 1.80% 1.82% 1.97% 2.09%
Total Allowance to Total Nonperforming Loans 131% 123% 118% 162% 153%
16
Capital Management
(Dollars in millions)
4Q00 1Q01 2Q01 3Q01 4Q01
-------------- -------------- ------------- --------------- --------------
Tier 1 capital $40,667 $40,769 $41,794 $41,517 $41,979
Total capital 59,826 63,102 63,967 63,311 64,124
Net risk-weighted assets 542,169 532,824 529,201 522,291 506,020
Tier 1 capital ratio 7.50 % 7.65 % 7.90 % 7.95 % 8.30 %
Total capital ratio 11.04 11.84 12.09 12.12 12.67
Ending equity / ending assets 7.42 8.02 7.88 7.83 7.80
Ending capital / ending assets 8.19 8.83 8.67 8.61 8.69
Average equity / average assets 7.03 7.38 7.43 7.66 7.50
Share Repurchase Program
- -------------------------------------------------------------------------------
28 million common shares were repurchased during the fourth quarter of 2001 as a
part of ongoing share repurchase programs. In total, 228 million common shares
have been repurchased since June 1999 - returning $12.8 billion of capital to
shareholders.
132 million shares remain outstanding under current authorized programs.
Capital Management
(Shares in millions)
[GRAPHIC]
4Q00 1Q01 2Q01 3Q01 4Q01
-------------- -------------- ------------ ------------- -----------
Shares outstanding at period end 1,614 1,602 1,601 1,582 1,559
Tier 1 capital ratio 7.50% 7.65% 7.90% 7.95% 8.30%
17
E-Commerce & BankofAmerica.com
Bank of America has the largest online banking customer base with over 4 million
subscribers.
Even more important is being the bank with the largest active subscriber base
with a 20% customer penetration rate.
Bank of America uses the strictest Active User standard in the industry -
customers must have used our online services within the last 90 days.
Nearly 1 million active bill pay users pay over $4 billion worth of bills
quarterly.
Currently, nearly 300 bill payers are presenting nearly 800,000 e-bills per
quarter.
- -------------------------------------------------------- ---------------------------------------------------------
- -------------------------------------------------------- ---------------------------------------------------------
Active On-line Banking Subscribers Bill payment Volume
(in thousands) (Dollars in millions)
[GRAPHIC] [GRAPHIC]
Bill-pay On-line Only Total $ Volume % Electronic
- -------------------------------------------------------- ---------------------------------------------------------
- -------------------------------------------------------- ---------------------------------------------------------
Dec-00 574 1,212 1,786 4Q00 2,934 73%
Mar-01 672 1,415 2,087 1Q01 3,326 73%
Jun-01 762 1,546 2,308 2Q01 3,614 73%
Sep-01 844 1,695 2,539 3Q01 4,038 74%
Dec-01 949 1,957 2,906 4Q01 4,323 74%
- -------------------------------------------------------- ---------------------------------------------------------
- -------------------------------------------------------- ---------------------------------------------------------
On-line Banking Active Penetration Bank of America Direct Clients
of Total DDA Households at period end
[GRAPHIC] [GRAPHIC] Companies Users
4Q00 14%
1Q01 16% 4Q00 3,764 21,831
2Q01 17% 1Q01 4,312 26,679
3Q01 18% 2Q01 4,950 32,134
4Q01* 20% 3Q01 5,770 38,614
4Q01 6,746 46,062
* Estimate
- -------------------------------------------------------- ---------------------------------------------------------
- -------------------------------------------------------- ---------------------------------------------------------
- --------------------------------------------------------
- --------------------------------------------------------
% Reduction in Attrition Rates
On-line vs. Off-line Customers
[GRAPHIC]
On-line Only Customers 48%
On-line & Bill-pay Customers 75%
- --------------------------------------------------------
- --------------------------------------------------------
18