EXHIBIT 99.2
Bank of America(R)
[LOGO](SM)
Supplemental Information
Second Quarter 2001
July 16, 2001
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
(Excludes merger and restructuring charges)
- --------------------------------------------------------------------------------
(Dollars in millions, except per share information; shares in thousands)
Second First Fourth Third Second
Quarter Quarter Quarter Quarter Quarter
2001 2001 2000 2000 2000
-----------------------------------------------------------------------------
Operating net income $ 2,023 $ 1,870 $ 1,385 $ 2,175 $ 2,063
Cash basis earnings /(1)/ 2,246 2,093 1,599 2,390 2,281
Earnings per common share 1.26 1.16 0.85 1.33 1.25
Diluted earnings per common share 1.24 1.15 0.85 1.31 1.23
Cash basis earnings per common share 1.40 1.30 0.98 1.46 1.38
Cash basis diluted earnings per common share/(1)/ 1.38 1.28 0.98 1.44 1.36
Dividends per common share 0.56 0.56 0.56 0.50 0.50
Average common shares issued and outstanding 1,601,537 1,608,890 1,623,721 1,639,392 1,653,495
Average diluted common shares issued and outstanding 1,632,964 1,631,099 1,638,863 1,661,031 1,676,089
Period-end common shares issued and outstanding 1,601,126 1,601,984 1,613,632 1,630,824 1,645,701
Period-end managed loans and leases* $ 399,919 $ 401,657 $ 405,596 $ 403,577 $ 403,390
Average managed loans and leases* 403,836 404,174 403,901 404,458 395,640
*Prior periods have been restated for comparison (e.g., acquisitions, divestitures, sales, and securitizations)
Performance ratios (operating basis):
Return on average assets 1.24 % 1.17 % 0.81 % 1.26 % 1.23 %
Cash basis return on average assets/(1)/ 1.37 1.31 0.94 1.39 1.36
Return on average common shareholders' equity 16.67 15.86 11.57 18.15 17.63
Cash basis return on avg. common shareholders' equity/(1)/ 18.52 17.75 13.36 19.94 19.49
Efficiency ratio 54.44 54.73 57.35 53.01 53.77
Cash basis efficiency ratio/(1)/ 51.92 52.11 54.70 50.43 51.12
Net interest yield 3.61 3.39 3.21 3.10 3.23
Shareholder value added $ 791 $ 679 $ 164 $ 953 $ 878
Change in shareholder value added 112 515 (789) 75 (43)
Book value per common share 30.75 30.47 29.47 28.69 27.82
Market price per share of common stock:
High for the period 62.18 55.94 54.75 57.63 61.00
Low for the period 48.65 45.00 36.31 43.63 42.98
Closing price 60.03 54.75 45.88 52.38 43.00
Market Capitalization 96,116 87,709 74,033 85,423 70,765
Other data:
Number of banking centers 4,275 4,339 4,390 4,419 4,450
Number of ATM's 12,883 12,866 12,921 12,840 12,931
Full-time equivalent employees 144,287 143,584 142,724 146,346 150,854
(1) Cash basis calculations exclude goodwill and other intangible amortization
expense.
1
Business Segment Cash Basis Earnings
Second Quarter 2001
(Dollars in millions)
[GRAPHIC]
Business Segment
--------------------------------------------------------------
Consumer & Commercial Banking $1,444 64%
Asset Management $ 128 6%
Global Corporate & Investment Banking $ 489 22%
Equity Investments $ 20 1%
Corporate Other $ 165 7%
-------------
$2,246 100%
=============
[GRAPHIC] [GRAPHIC]
Consumer & Commercial Banking Global Corporate & Investment Banking
- -------------------------------- -------------------------------------
Banking Regions $ 779 54% Global Credit Products $197 40%
Consumer Products $ 485 34% Global Investment Banking $220 45%
Commercial Banking $ 180 12% Global Treasury Services $ 72 15%
------------ ----------
Total CCB $1,444 100% Total GCIB $489 100%
============ ==========
2
Consumer and Commercial Banking Segment
Consumer and Commercial Banking Segment Results
- --------------------------------------------------------------------------------
(Dollars in millions)
Quarterly Year-to-Date
------------------------------------------ ---------------------------------------
Key Measures/(1)/ 2 Qtr 01 1 Qtr 01 2 Qtr 00 2001 2000
- ------------ -------------- ----------- ------------ --------------- -------------------
Total Revenue $ 5,515 $ 5,314 $ 5,211 $ 10,829 $ 10,173
Provision for Credit Losses 471 517 304 988 727
Net Income 1,274 1,161 1,248 2,435 2,249
Cash Basis Earnings 1,444 1,331 1,420 2,775 2,594
Shareholder Value Added 790 676 741 1,466 1,235
Return on Average Equity 23.4 % 21.3 % 22.0 % 22.3 % 19.9 %
Cash Basis Return on Average Equity 26.5 24.4 25.1 25.4 22.9
Efficiency Ratio 53.6 54.4 54.8 54.0 56.6
Cash Basis Efficiency Ratio 50.5 51.2 51.5 50.8 53.2
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $ 218,880 $215,677 $207,750 $ 217,288 $ 205,117
Total Deposits 264,684 259,796 258,090 262,253 256,405
Total Earning Assets 267,481 261,489 261,927 264,474 259,455
Consumer and Commercial Banking Sub-Segment Results
- --------------------------------------------------------------------------------
Quarterly Year-to-Date
------------------------------------------ ---------------------------------------
Key Measures/(1)/ 2 Qtr 01 1 Qtr 01 2 Qtr 00 2001 2000
- ------------ ------------- ---------- ------------ -------------- -------------------
Banking Regions
- ---------------
Total Revenue $ 3,060 $ 2,957 $ 2,967 $ 6,017 $ 5,860
Shareholder Value Added 445 399 418 844 753
Cash Basis Earnings 779 731 761 1,510 1,440
Cash Basis Efficiency Ratio 58.1 % 59.1 % 57.9 % 58.6 % 59.4 %
Consumer Products
- -----------------
Total Revenue $ 1,711 $ 1,626 $ 1,514 $ 3,337 $ 2,823
Shareholder Value Added 271 232 230 503 288
Cash Basis Earnings 485 449 454 934 733
Cash Basis Efficiency Ratio 38.4 % 39.0 % 40.5 % 38.7 % 43.3 %
Commercial Banking
- ------------------
Total Revenue $ 744 $ 731 $ 730 $ 1,475 $ 1,490
Shareholder Value Added 74 45 93 119 194
Cash Basis Earnings 180 151 205 331 421
Cash Basis Efficiency Ratio 47.2 % 46.3 % 48.2 % 46.7 % 47.6 %
- ------------------------------------------------------------------------------------------------------------------------
(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.
3
Asset Management Segment
Asset Management Segment Results
- --------------------------------------------------------------------------------
(Dollars in millions)
Quarterly Year-to-Date
---------------------------------------------- ------------------------------
Key Measures /(1)/ 2 Qtr 01 1 Qtr 01 2 Qtr 00 2001 2000
- ----------------- -------------- -------------- ------------- ----------- --------------
Total Revenue $ 599 $ 576 $ 572 $ 1,175 $ 1,120
Provision for Credit Losses 63 8 (1) 71 9
Net Income 116 130 159 246 305
Cash Basis Earnings 128 143 165 271 317
Shareholder Value Added 68 83 122 151 231
Return on Average Equity 22.9 % 26.2 % 44.4 % 24.6 % 42.6 %
Cash Basis Return on Average Equity 25.4 28.8 46.1 27.1 44.2
Efficiency Ratio 59.6 62.1 54.9 60.8 55.1
Cash Basis Efficiency Ratio 57.5 59.9 53.9 58.7 54.1
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $23,758 $23,531 $21,771 $23,645 $21,246
Total Deposits 11,995 11,808 11,652 11,902 11,248
Total Earning Assets 24,845 24,587 22,763 24,717 22,142
Assets under Management (period end) 289,529 285,638 261,041 289,529 261,041
- ---------------------------------------------------------------------------------------------------------------------------------
(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.
4
Global Corporate and Investment Banking
Global Corporate and Investment Banking Segment Results
- --------------------------------------------------------------------------------
(Dollars in millions)
Quarterly Year-to-Date
--------------------------------------- -----------------------------------
Key Measures /(1)/ 2 Qtr 01 1 Qtr 01 2 Qtr 00 2001 2000
- ----------------- ---------- -------- --------- --------- ------------
Total Revenue $ 2,362 $ 2,407 $ 2,084 $ 4,769 $ 4,424
Provision for Credit Losses 252 244 150 496 152
Net Income 450 535 482 985 1,160
Cash Basis Earnings 489 572 519 1,061 1,233
Shareholder Value Added 131 207 121 338 442
Return on Average Equity 15.1 % 17.6 % 14.5 % 16.4 % 17.6%
Cash Basis Return on Average Equity 16.4 18.8 15.6 17.6 18.7
Efficiency Ratio 59.2 55.1 57.7 57.1 56.5
Cash Basis Efficiency Ratio 57.6 53.5 55.9 55.5 54.8
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $85,541 $92,032 $94,372 $88,769 $93,302
Total Deposits 67,439 65,927 68,155 66,687 66,635
Total Earning Assets 196,404 196,151 188,558 196,278 184,649
Global Corporate and Investment Banking Sub-Segment Results
- --------------------------------------------------------------------------------
Quarterly Year-to-Date
----------------------------------------- ------------------------
Key Measures/(1)/ 2 Qtr 01 1 Qtr 01 2 Qtr 00 2001 2000
- ------------------- ----------- --------- --------- ------- --------
Global Investment Banking
- -------------------------
Total Revenue $1,314 $1,413 $1,077 $2,727 $2,412
Shareholder Value Added 108 224 97 332 313
Cash Basis Earnings 220 330 208 550 527
Cash Basis Efficiency Ratio 73.8 % 63.7 % 70.6 % 68.5 % 67.2 %
Global Credit Products
- ----------------------
Total Revenue $ 676 $ 644 $ 664 $1,320 $1,341
Shareholder Value Added (33) (62) (7) (95) 39
Cash Basis Earnings 197 180 264 377 585
Cash Basis Efficiency Ratio 20.1 % 20.6 % 22.4 % 20.3 % 21.8 %
Global Treasury Services
- ------------------------
Total Revenue $ 372 $ 350 $ 343 $ 722 $ 671
Shareholder Value Added 56 45 31 101 90
Cash Basis Earnings 72 62 47 134 121
Cash Basis Efficiency Ratio 68.6 % 73.0 % 74.6 % 70.7 % 76.2 %
- --------------------------------------------------------------------------------------------------------------------------------
(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)
Quarterly Year-to-Date
-------------------------------------------------------------------------
Key Measures /1)/ 2 Qtr 01 1 Qtr 01 2 Qtr 00 2001 2000
- ----------------- ----------- ----------- ---------- ------------ ---------
Total Revenue $ 77 $ 105 $ 86 $ 182 $ 609
Provision for Credit Losses - - (1) - 3
Net Income 18 37 36 55 337
Cash Basis Earnings 20 40 39 60 342
Shareholder Value Added (52) (27) (16) (79) 236
Return on Average Equity 3.1 % 6.6 % 7.9 % 4.8 % 38.1 %
Cash Basis Return on Average Equity 3.5 7.1 8.5 5.2 38.7
Efficiency Ratio 63.9 45.1 34.0 53.0 9.4
Cash Basis Efficiency Ratio 60.4 42.6 30.9 50.1 8.5
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $ 491 $ 504 $ 418 $ 497 $ 417
Total Deposits 15 37 13 26 10
Total Earning Assets 513 504 444 508 440
- -----------------------------------------------------------------------------------------------------------------------------------
(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.
6
Bank of America Corporation
Consolidated Statement of Income
- ------------------------------------------------------------------------------------------------------------------------------------
(Dollars in millions, except per share information)
Second First Fourth Third Second
Quarter Quarter Quarter Quarter Quarter
2001 2001 2000 2000 2000
--------------------------------------------------------------
Interest income
Interest and fees on loan and leases $ 7,201 $ 7,659 $ 8,224 $ 8,283 $ 7,915
Interest and dividends on securities 894 846 1,177 1,251 1,268
Federal funds sold and securities purchased under agreements to
resell 405 435 551 633 595
Trading account assets 936 846 751 744 694
Other interest income 489 455 434 324 254
--------------------------------------------------------------
Total interest income 9,925 10,241 11,137 11,235 10,726
--------------------------------------------------------------
Interest expense
Deposits 2,363 2,713 2,924 2,868 2,720
Short-term borrowings 1,221 1,377 1,942 2,223 1,990
Trading account liabilities 312 290 285 237 189
Long-term debt 999 1,222 1,322 1,344 1,210
--------------------------------------------------------------
Total interest expense 4,895 5,602 6,473 6,672 6,109
--------------------------------------------------------------
Net interest income 5,030 4,639 4,664 4,563 4,617
Noninterest income
Consumer service charges 714 694 706 684 646
Corporate service charges 511 499 475 474 465
--------------------------------------------------------------
Total service charges 1,225 1,193 1,181 1,158 1,111
--------------------------------------------------------------
Consumer investment and brokerage services 399 379 358 357 387
Corporate investment and brokerage services 137 136 123 114 105
--------------------------------------------------------------
Total investment and brokerage services 536 515 481 471 492
--------------------------------------------------------------
Mortgage banking income 195 151 152 144 136
Investment banking income 455 346 366 376 373
Equity investment gains 171 147 (65) 422 134
Card income 601 573 595 594 556
Trading account profits /(1)/ 376 699 293 402 485
Other income 182 156 325 108 227
--------------------------------------------------------------
Total noninterest income 3,741 3,780 3,328 3,675 3,514
--------------------------------------------------------------
Total revenue 8,771 8,419 7,992 8,238 8,131
Provision for credit losses 800 835 1,210 435 470
Gains/(losses) on sales of securities (7) (8) 2 11 6
Other noninterest expense
Personnel 2,534 2,401 2,257 2,298 2,311
Occupancy 428 433 434 419 411
Equipment 271 291 291 285 296
Marketing 174 177 223 147 132
Professional fees 141 126 154 100 93
Amortization of intangibles 223 223 214 215 218
Data processing 187 190 172 167 169
Telecommunications 128 119 136 127 133
Other general operating 574 545 585 509 505
General administrative 161 149 171 143 145
--------------------------------------------------------------
Total other noninterest expense 4,821 4,654 4,637 4,410 4,413
--------------------------------------------------------------
Operating income before income taxes 3,143 2,922 2,147 3,404 3,254
Income tax expense 1,120 1,052 762 1,229 1,191
--------------------------------------------------------------
Operating net income $ 2,023 $ 1,870 $ 1,385 $ 2,175 $ 2,063
==============================================================
Operating income available to common shareholders 2,022 1,869 1,383 2,174 2,061
==============================================================
Per share information
Operating earnings per common share 1.26 1.16 0.85 1.33 1.25
==============================================================
Diluted operating earnings per common share 1.24 1.15 0.85 1.31 1.23
==============================================================
Dividends per common share 0.56 0.56 0.56 0.50 0.50
==============================================================
Average common shares issued and outstanding (in thousands) 1,601,537 1,608,890 1,623,721 1,639,392 1,653,495
==============================================================
Average diluted common shares issued and outstanding (in thousands) 1,632,964 1,631,099 1,638,863 1,661,031 1,676,089
==============================================================
As reported (includes merger and restructuring charges, net of tax):
Net income $ 2,023 $ 1,870 $ 1,385 $ 1,829 $ 2,063
Net income available to common shareholders 2,022 1,869 1,383 1,828 2,061
Earnings per common share 1.26 1.16 0.85 1.11 1.25
Diluted earnings per common share 1.24 1.15 0.85 1.10 1.23
(1) Trading account profits for the three months ended March 31, 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
classifications.
7
Bank of America Corporation
Consolidated Balance Sheet
====================================================================================================================================
(Dollars in millions)
June 30 March 31 June 30
2001 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------------
Assets
Cash and cash equivalents $ 25,405 $ 23,333 $ 27,493
Time deposits placed and other short-term investments 4,452 5,549 4,394
Federal funds sold and securities purchased under agreements to resell 28,317 20,581 42,460
Trading account assets 50,740 45,281 50,162
Derivative assets 16,881 16,508 16,149
Securities:
Available-for-sale 53,410 49,189 79,518
Held-to-maturity 1,167 1,189 1,439
- -----------------------------------------------------------------------------------------------------------------------------------
Total securities 54,577 50,378 80,957
- -----------------------------------------------------------------------------------------------------------------------------------
Loans and leases 380,425 382,677 400,817
Allowance for credit losses (6,911) (6,900) (6,815)
- -----------------------------------------------------------------------------------------------------------------------------------
Loans and leases, net of allowance for credit losses 373,514 375,777 394,002
- -----------------------------------------------------------------------------------------------------------------------------------
Premises and equipment, net 6,371 6,366 6,514
Customers' acceptance liability 2,111 2,232 2,477
Interest receivable 3,593 3,855 4,083
Mortgage banking assets 4,337 3,855 4,065
Goodwill 11,864 12,006 11,961
Core deposits and other intangibles 1,392 1,446 1,617
Other assets 41,971 42,588 33,204
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets $ 625,525 $ 609,755 $ 679,538
===================================================================================================================================
Liabilities
Deposits in domestic offices:
Noninterest-bearing $ 100,199 $ 97,448 $ 94,014
Interest-bearing 213,036 214,379 207,977
Deposits in foreign offices:
Noninterest-bearing 1,490 1,716 1,631
Interest-bearing 48,761 38,917 53,042
- -----------------------------------------------------------------------------------------------------------------------------------
Total deposits 363,486 352,460 356,664
- -----------------------------------------------------------------------------------------------------------------------------------
Federal funds purchased and securities sold under agreements to repurchase 52,189 37,011 89,508
Trading account liabilities 20,866 24,138 23,056
Derivative liabilities 13,078 17,132 17,609
Commercial paper 3,156 5,707 10,225
Other short-term borrowings 32,348 30,559 39,801
Acceptances outstanding 2,111 2,232 2,477
Accrued expenses and other liabilities 20,791 19,631 20,137
Long-term debt 63,243 67,044 69,245
Trust preferred securities 4,955 4,955 4,955
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 576,223 560,869 633,677
- -----------------------------------------------------------------------------------------------------------------------------------
Shareholders' equity
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and
outstanding 1,587,066; 1,662,172 and 1,742,349 shares 68 71 75
Common stock, $0.01 par value; authorized - 5,000,000,000 shares; issued and
outstanding 1,601,126,336; 1,601,983,783 and 1,645,701,425 shares 7,629 7,872 10,188
Retained earnings 41,912 40,785 38,330
Accumulated other comprehensive income/(loss) (262) 227 (2,537)
Other (45) (69) (195)
- -----------------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 49,302 48,886 45,861
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $ 625,525 $ 609,755 $ 679,538
===================================================================================================================================
8
Bank of America Corporation
Quarterly Average Balances and Interest Rates - Taxable-Equivalent Basis
- --------------------------------------------------------------------------------
(Dollars in millions)
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 40,117 736 7.35
Consumer finance 26,843 608 9.06
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/(5)/ 69,416 999 5.76
-----------------------------------------------
Total interest-bearing liabilities/(6)/ 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 $ 5,117 3.61 %
===============================================
First Quarter 2001
----------------------------------------------
Interest
Average Income/ Yield/
Balance Expense Rate
---------------- ------------- ---------------
Earning assets
Time deposits placed and other short-term investments $ 6,675 $ 102 6.17 %
Federal funds sold and securities purchased under
agreements to resell 31,903 435 5.48
Trading account assets 62,491 852 5.49
Total securities/(1)/ 55,221 860 6.26
Loans and leases/(2)/
Commercial - domestic 144,404 2,813 7.90
Commercial - foreign 29,540 515 7.06
Commercial real estate - domestic 25,989 530 8.27
Commercial real estate - foreign 300 6 7.82
----------------------------------------------
Total commercial 200,233 3,864 7.82
----------------------------------------------
Residential mortgage 82,710 1,532 7.43
Home equity lines 21,744 467 8.71
Direct/Indirect consumer 40,461 784 7.86
Consumer finance 25,947 589 9.08
Bankcard 14,464 443 12.41
Foreign consumer 2,330 43 7.54
----------------------------------------------
Total consumer 187,656 3,858 8.29
----------------------------------------------
Total loans and leases 387,889 7,722 8.05
----------------------------------------------
Other earning assets 17,248 352 8.28
----------------------------------------------
Total earning assets/(3)/ 561,427 10,323 7.42
----------------------------------------------
Cash and cash equivalents 23,020
Other assets, less allowance for credit losses 64,251
----------------------------------------------
Total assets $648,698
==============================================
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings $20,406 61 1.21
NOW and money market deposit accounts 107,015 808 3.06
Consumer CDs and IRAs 77,772 1,068 5.57
Negotiable CDs, public funds and other time deposits 7,137 108 6.16
----------------------------------------------
Total domestic interest-bearing deposits 212,330 2,045 3.91
----------------------------------------------
Foreign interest-bearing deposits/(4)/
Banks located in foreign countries 24,358 332 5.53
Governments and official institutions 3,993 52 5.27
Time, savings, and other 22,506 284 5.11
----------------------------------------------
Total foreign interest-bearing deposits 50,857 668 5.32
----------------------------------------------
Total interest-bearing deposits 263,187 2,713 4.18
----------------------------------------------
Federal funds purchased, securities sold under agreements
to repurchase and other short-term borrowings 94,792 1,377 5.89
Trading account liabilities 28,407 290 4.14
Long-term debt/(5)/ 73,752 1,222 6.63
----------------------------------------------
Total interest-bearing liabilities/(6)/ 460,138 5,602 4.92
----------------------------------------------
Noninterest-bearing sources:
Noninterest-bearing deposits 92,431
Other liabilities 48,263
Shareholders' equity 47,866
----------------------------------------------
Total liabilities and shareholders' equity $648,698
==============================================
Net interest spread 2.50
Impact of noninterest-bearing sources .89
----------------------------------------------
Net interest income/yield on earning assets $ 4,721 3.39 %
==============================================
(1) The average balance and yield on securities are based on the average of
historical amortized cost balances.
(2) Nonperforming loans are included in the respective average loan balances.
Income on such nonperforming loans is recognized on a cash basis.
(3) Interest income includes taxable-equivalent basis adjustments of $87 and $82
in the second and first quarters of 2001 and $94, $79, and $78 in the
fourth, third, and second quarters of 2000, respectively. Interest income
also includes the impact of risk management interest rate contracts, which
increased (decreased) interest income on the underlying assets $194 and $27
in the second and first quarters of 2001 and $(31), $(13), and $(11) in the
fourth, third, and second quarters of 2000, respectively.
(4) Primarily consists of time deposits in denominations of $100,000 or more.
(5) Long-term debt includes trust preferred securities.
(6) Interest expense includes the impact of risk management interest rate
contracts, which (increased) decreased interest expense on the underlying
liabilities $49 and $23 in the second and first quarters of 2001 and $(7),
$(16), and $(5) in the fourth, third, and second quarters of 2000,
respectively.
9
- --------------------------------------------------------------------------------------------------------------------
Fourth Quarter 2000 Third Quarter 2000 Second Quarter 2000
- ------------------------------------ ---------------------------------- --------------------------------
Interest Interest Interest
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate Balance Expense Rate
- -------- -------- ------ -------- -------- ------ -------- -------- ------
$ 5,663 $ 99 6.96 % $ 4,700 $ 83 6.97 % $ 4,578 $ 79 7.02 %
37,936 551 5.79 40,763 633 6.20 43,983 595 5.43
53,251 758 5.68 53,793 749 5.55 48,874 702 5.77
79,501 1,205 6.05 83,728 1,276 6.08 85,460 1,293 6.06
147,336 3,034 8.19 151,903 3,151 8.26 148,034 3,016 8.19
30,408 560 7.32 29,845 555 7.39 29,068 515 7.12
27,220 622 9.09 26,113 597 9.09 25,497 563 8.88
264 6 8.44 235 5 8.30 376 8 9.15
- ------------------------------------ ---------------------------------- --------------------------------
205,228 4,222 8.18 208,096 4,308 8.24 202,975 4,102 8.13
- ------------------------------------ ---------------------------------- --------------------------------
92,679 1,733 7.47 94,380 1,759 7.45 91,825 1,696 7.40
21,117 483 9.11 20,185 466 9.18 19,067 422 8.91
40,390 843 8.30 41,905 848 8.06 41,757 867 8.36
25,592 570 8.91 25,049 559 8.93 24,123 545 9.03
12,295 384 12.43 10,958 344 12.49 9,429 279 11.87
2,248 48 8.49 2,190 48 8.79 2,228 48 8.81
- ------------------------------------ ---------------------------------- --------------------------------
194,321 4,061 8.34 194,667 4,024 8.25 188,429 3,857 8.21
- ------------------------------------ ---------------------------------- --------------------------------
399,549 8,283 8.26 402,763 8,332 8.24 391,404 7,959 8.17
- ------------------------------------ ---------------------------------- --------------------------------
14,828 335 9.00 11,501 241 8.39 8,191 176 8.53
- ------------------------------------ ---------------------------------- --------------------------------
590,728 11,231 7.58 597,248 11,314 7.55 582,490 10,804 7.45
- ------------------------------------ ---------------------------------- --------------------------------
23,458 24,191 25,605
63,272 63,578 64,493
- ------------------------------------ ---------------------------------- --------------------------------
$677,458 $685,017 $672,588
==================================== ================================== ================================
$ 22,454 80 1.42 $ 23,195 78 1.33 $ 23,936 78 1.32
101,376 788 3.09 99,710 740 2.96 100,186 734 2.94
78,298 1,105 5.62 77,864 1,083 5.53 77,384 1,034 5.38
7,570 127 6.68 8,598 140 6.46 7,361 111 6.09
- ------------------------------------ ---------------------------------- --------------------------------
209,698 2,100 3.98 209,367 2,041 3.88 208,867 1,957 3.77
- ------------------------------------ ---------------------------------- --------------------------------
26,223 424 6.43 18,845 286 6.03 15,823 232 5.92
5,884 61 4.14 11,182 177 6.30 9,885 151 6.12
24,064 339 5.62 25,972 364 5.58 27,697 380 5.51
- ------------------------------------ ---------------------------------- --------------------------------
56,171 824 5.84 55,999 827 5.87 53,405 763 5.74
- ------------------------------------ ---------------------------------- --------------------------------
265,869 2,924 4.38 265,366 2,868 4.30 262,272 2,720 4.17
- ------------------------------------ ---------------------------------- --------------------------------
122,680 1,942 6.30 136,007 2,223 6.51 135,817 1,990 5.89
27,548 285 4.13 24,233 237 3.88 20,532 189 3.70
73,041 1,322 7.24 74,022 1,344 7.26 69,779 1,210 6.94
- ------------------------------------ ---------------------------------- --------------------------------
489,138 6,473 5.27 499,628 6,672 5.32 488,400 6,109 5.02
- ------------------------------------ ---------------------------------- --------------------------------
91,685 91,368 91,154
48,996 46,286 45,922
47,639 47,735 47,112
- ------------------------------------ ---------------------------------- --------------------------------
$677,458 $685,017 $672,588
==================================== ================================== ================================
2.31 2.23 2.43
.90 .87 .80
- ------------------------------------ ---------------------------------- --------------------------------
$ 4,758 3.21 % $ 4,642 3.10 % $ 4,695 3.23 %
==================================== ================================== ================================
10
Loan Portfolio Diversity
June 30, 2001
[GRAPHIC]
$380.4 Billion Total Loan Portfolio
Commercial:
Real estate 7%
Transportation 3%
Business services 2%
Media 2%
Equipment and general manufacturing 2%
Telecom 2%
Agribusiness 2%
Autos 2%
Other commercial * 2% 27%
------------
Total commercial loans 5 49%
------------
Consumer:
Residential real estate secured 34%
Bankcard 4%
Other consumer 13%
------------
Total consumer loans 51%
------------
100%
============
*less than
. On balance sheet loan portfolio equally balanced between consumer and
commercial
. 67% of consumer portfolio is secured by residential real estate
. Largest concentration, at 34% of total portfolio, is residential real estate
secured loans
. Extremely diverse commercial portfolio, spread across many industry sectors
with the largest segment being commercial real estate at 7% of total loans
Average Managed Loans & Leases
(Dollars in millions)
2Q00 3Q00 4Q00 1Q01 2Q01
-------------- ------------ ------------- ------------ ------------
Commercial - domestic $148,553 $150,860 $147,149 $145,700 $141,294
Commercial - foreign 28,750 29,642 30,205 29,396 27,449
Commercial real estate - domestic 25,132 25,748 26,326 25,989 25,293
Commercial real estate - foreign 376 235 264 300 352
-------------- ------------ ------------- ------------ ------------
Total Commercial 202,811 206,485 203,944 201,385 194,388
-------------- ------------ ------------- ------------ ------------
Residential mortgage 79,908 81,894 81,879 82,139 87,063
Home equity lines 19,067 20,185 21,117 21,744 21,958
Direct/indirect consumer 39,596 40,224 40,322 40,629 40,674
Consumer finance 32,353 32,799 32,930 32,909 33,340
Bankcard 19,677 20,681 21,461 23,038 24,122
Foreign consumer 2,228 2,190 2,248 2,330 2,291
-------------- ------------ ------------- ------------ ------------
Total Consumer 192,829 197,973 199,957 202,789 209,448
-------------- ------------ ------------- ------------ ------------
Total Managed Loans & Leases $395,640 $404,458 $403,901 $404,174 $403,836
============== ============ ============= ============ ============
Annualized growth rate from
previous quarter by loan type:
Total Commercial 10 % 7 % (5)% (5)% (14)%
Total Consumer 12 11 4 6 13
Total Managed Loans & Leases 11 9 (1) - -
by Business Segment:
Consumer & Commercial Banking 5 %
Asset Management 4
Global Corporate & Investment Banking (23)
Equity Investments (10)
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]
Managed Loans & Leases
2Q00 3Q00 4Q00 1Q01 2Q01
Commercial and commercial real estate - domestic 44% 44% 43% 42% 41%
Commercial and commercial real estate - foreign 7 7 8 7 7
Residential mortgage, home equity lines & consumer finance 33 33 34 34 35
Bankcard 5 5 5 6 6
Other consumer 11 10 11 12 11
12
Net Charge-offs and Net Charge-off Ratios
(Dollars in millions)
2Q00 3Q00 4Q00 1Q01 2Q01
---------------- --------------- --------------- --------------- ---------------
Amt. Ratio Amt. Ratio Amt. Ratio Amt. Ratio Amt. Ratio
------- ----- ------- ----- ------- ----- ------- ----- ------- -----
Commercial - domestic $ 226 0.62% $ 185 0.48% $ 704 1.90% $ 415 1.17% $ 408 1.18%
Commercial - foreign 24 0.33% 23 0.30% 34 0.45% 34 0.46% 57 0.84%
Commercial real estate - domestic 6 0.09% (2) - 3 - 6 -% 12 0.18%
Commercial real estate - foreign - 0.16% - 0.21% - 0.05% - - - -
------- ------- ------- ------- -------
Total Commercial 256 0.51% 206 0.39% 741 1.44% 455 0.92% 477 1.00%
------- ------- ------- ------- -------
Residential mortgage 4 0.02% 6 0.03% 13 0.05% 6 0.03% 7 0.03%
Home equity lines 3 0.05% 2 0.04% 12 0.24% 6 0.11% 4 0.07%
Direct/indirect consumer 61 0.58% 61 0.57% 111 1.10% 75 0.76% 65 0.65%
Consumer finance 59 0.97% 68 1.08% 82 1.27% 93 1.45% 67 1.00%
Bankcard 77 3.30% 79 2.89% 101 3.25% 125 3.51% 158 4.01%
Other consumer domestic 10 n/m 12 n/m 14 n/m 11 n/m 8 n/m
Foreign consumer - 0.09% 1 0.20% 1 0.18% 1 0.19% 1 0.24%
------- ------- ------- ------- -------
Total Consumer 214 0.46% 229 0.47% 334 0.69% 317 0.68% 310 0.65%
------- ------- ------- ------- -------
Total Net Charge-offs $ 470 0.48% $ 435 0.43% $ 1,075 1.07% $ 772 0.81% $ 787 0.82%
======= ======= ======= ======= =======
Managed bankcard information:
End of period receivables $20,324 $21,136 $22,830 $23,179 $24,871
Average receivables 19,677 20,682 21,461 23,038 24,122
Charge-offs 237 216 233 248 297
Charge-off ratio 4.84% 4.15% 4.31% 4.37% 4.94%
By Business Segment:
Consumer & Commercial Banking $ 304 0.59% $ 292 0.55% $ 526 0.98% $ 517 0.97% $ 471 0.86%
Global Corporate & Investment Banking 175 0.74% 143 0.58% 505 2.11% 244 1.08% 252 1.18%
Asset Management (1) - - - 38 0.64% 8 0.15% 63 1.06%
Equity Investments (1) - - - 1 1.14% - - - -
Other (7) - - - 5 0.03% 3 0.03% 1 0.01%
------- ------- ------- ------- -------
Total Net Charge-offs $ 470 0.48% $ 435 0.43% $ 1,075 1.07% $ 772 0.81% $ 787 0.82%
======= ======= ======= ======= =======
Loans are classified as domestic or foreign based upon the domicile of the
borrower.
Net Charge-offs
[GRAPHIC]
2Q00 3Q00 4Q00 1Q01 2Q01
------ ------ ------- ------ ------
Total Net Charge-offs $ 470 $ 435 $ 1,075 $ 772 $ 787
Annualized Net Charge-off Ratio 0.48% 0.43% 1.07% 0.81% 0.82%
13
Nonperforming Assets
(Dollars in millions)
2Q00 3Q00 4Q00 1Q01 2Q01
------------ ------------- ------------- ------------- -----------
Commercial - domestic $1,535 $1,950 $2,777 $3,110 $3,209
Commercial - foreign 588 564 486 529 562
Commercial real estate - domestic 164 136 236 206 201
Commercial real estate - foreign 2 1 3 3 3
------------ ------------- ------------- ------------- -----------
Total Commercial 2,289 2,651 3,502 3,848 3,975
------------ ------------- ------------- ------------- -----------
Residential mortgage 505 502 551 553 573
Home equity lines 44 47 32 36 42
Direct/Indirect consumer 20 19 19 19 17
Consumer finance 826 951 1,095 1,153 1,234
Foreign consumer 7 7 9 11 8
------------ ------------- ------------- ------------- -----------
Total Consumer 1,402 1,526 1,706 1,772 1,874
------------ ------------- ------------- ------------- -----------
Total Nonperforming Loans 3,691 4,177 5,208 5,620 5,849
Foreclosed properties 195 226 249 277 346
------------ ------------- ------------- ------------- -----------
Total Nonperforming Assets/(1)/ $3,886 $4,403 $5,457 $5,897 $6,195
============ ============= ============= ============= ===========
Loans past due 90 days or more and still accruing $482 $503 $495 $527 $608
Nonperforming Assets/ Total Assets 0.57 % 0.65 % 0.85 % 0.97 % 0.99 %
Nonperforming Assets/ Total Loans 0.97 1.09 1.39 1.54 1.63
Allowance for Loan Losses $6,815 $6,739 $6,838 $6,900 $6,911
Allowance / Total Loans 1.70 % 1.67 % 1.74 % 1.80 % 1.82 %
Allowance / Total Nonperforming Loans 185 161 131 123 118
By Business Segment:
Consumer & Commercial Banking $1,914 $2,095 $2,431 $2,747 $3,166
Global Corporate & Investment Banking 1,488 1,839 2,376 2,433 2,325
Asset Management 42 36 166 235 228
Equity Investments 12 12 20 20 43
Other 430 421 464 462 433
------------ ------------- ------------- ------------- -----------
Total Nonperforming Assets $3,886 $4,403 $5,457 $5,897 $6,195
============ ============= ============= ============= ===========
Loans are classified as domestic or foreign based upon the domicile of the
borrower.
(1) Balance does not include $120 million, $144 million, $124 million and $95
million of loans held for sale, included in other assets at June 30, 2001,
March 31, 2001, December 31, 2000, and September 30, 2000, respectively,
which would have been classified as nonperforming had they been included
in loans.
Nonperforming Asset Levels
[GRAPHIC]
2Q00 3Q00 4Q00 1Q01 2Q01
------ ------ ------ ------ ------
Total Commercial 59% 60% 64% 65% 64%
Total Consumer 36% 35% 31% 30% 30%
Foreclosed Properties 5% 5% 5% 5% 6%
Total 100% 100% 100% 100% 100%
14
Capital Management
(Dollars in millions)
2Q00 3Q00 4Q00 1Q01 2Q01
--------- --------- --------- --------- ---------
Tier 1 capital $ 40,257 $ 40,696 $ 40,667 $ 40,769 $ 41,794
Total capital 60,027 60,063 59,826 63,102 63,967
Net risk-weighted assets 543,987 556,146 542,169 532,824 529,160
Tier 1 capital ratio 7.40 % 7.32 % 7.50 % 7.65 % 7.90 %
Total capital ratio 11.03 10.80 11.04 11.84 12.09
Ending equity / ending assets 6.75 6.98 7.42 8.02 7.88
Ending capital / ending assets 7.48 7.71 8.19 8.83 8.67
Average equity / average assets 7.00 6.97 7.03 7.38 7.43
Share Repurchase Program
- --------------------------------------------------------------------------------
15 million common shares were repurchased during the second quarter of 2001 as a
part of ongoing share repurchase programs. In total, 175 million common shares
have been repurchased since June 1999- returning $ 9.7 billion of capital to
shareholders.
Capital Management
[GRAPHIC]
2Q00 3Q00 4Q00 1Q01 2Q01
------- ------- ------- ------- -------
Shares outstanding at period end 1,645.7 1,630.8 1,613.6 1,602.0 1,601.1
Tier 1 capital ratio 7.40% 7.32% 7.50% 7.65% 7.90%
15
Balance Sheet Trends
(Dollars in billions)
- --------------------------------------------------------------------------------
Ending Total Assets
[GRAPHIC]
2Q00 3Q00 4Q00 1Q01 2Q01
-------- -------- -------- -------- -------
Total Assets $680 $672 $642 $610 $626
- --------------------------------------------------------------------------------
Ending Balances
- ---------------
2Q00 3Q00 4Q00 1Q01 2Q01
-------- -------- -------- -------- -------
Investment Securities $ 81 $ 81 $ 66 $ 50 $ 55
Trading Assets & Resales 92 79 68 66 79
Loans and Leases 401 403 392 383 380
Total Assets 680 672 642 610 626
- --------------------------------------------------------------------------------
Average Total Assets
[GRAPHIC]
2Q00 3Q00 4Q00 1Q01 2Q01
-------- -------- -------- -------- ------
Toatal Assets $673 $685 $677 $649 $656
- --------------------------------------------------------------------------------
Average Balances
- ----------------
2Q00 3Q00 4Q00 1Q01 2Q01
-------- -------- -------- -------- -------
Investment Securities $ 85 $ 84 $ 80 $ 55 $ 56
Trading Assets & Resales 93 95 91 94 101
Loans and Leases 391 403 400 388 384
Total Assets 673 685 677 649 656
16
E-Commerce & BankofAmerica.com
- -------------------------------------------------- --------------------------------------------------
On-line Banking Penetration % Reduction in Attrition Rates
of DDA Households On-line vs. Off-line Customers
[GRAPHIC] [GRAPHIC]
2Q00 17% On-line Only Customers 35%
3Q00 18% On-line & Bill-pay Customers 74%
4Q00 22%
1Q01 24%
2Q01 25%
- -------------------------------------------------- --------------------------------------------------
- -------------------------------------------------- --------------------------------------------------
On-line Banking Customers Bill Payment Volume
(in thousands) (in millions)
[GRAPHIC] [GRAPHIC]
---------------------------------------- ----------------------------------------
Bill-pay On-line Only Total $ Volume % Electronic
---------------------------------------- ----------------------------------------
Dec-99 665 1,168 1,833 2Q00 2,691 70%
Jun-00 714 1,678 2,392 3Q00 2,776 72%
Dec-00 778 2,223 3,001 4Q00 2,922 73%
Jun-01 935 2,733 3,668 1Q01 3,304 73%
2Q01 3,608 73%
- -------------------------------------------------- --------------------------------------------------
- -------------------------------------------------- --------------------------------------------------
BankofAmerica.com Site Visits
Bank of America Direct Clients (in thousands)
[GRAPHIC] [GRAPHIC]
Companies Users
2Q00 2,593 12,533 2Q00 24,896
3Q00 3,215 17,461 3Q00 24,948
4Q00 3,764 21,831 4Q00 32,254
1Q01 4,312 26,679 1Q01 39,200
2Q01 4,950 32,134 2Q01 41,844
June 01 = Estimate
- -------------------------------------------------- --------------------------------------------------
17
Record Retail Revenues across Business Lines
(Dollars in millions)
- -------------------------------------------------- --------------------------------------------------
Consumer Service Charges Consumer Investment &
Brokerage Services
[GRAPHIC]
[GRAPHIC]
2Q00 $ 646 2Q00 $ 387
3Q00 $ 684 3Q00 $ 357
4Q00 $ 706 4Q00 $ 358
1Q01 $ 694 1Q01 $ 379
2Q01 $ 714 2Q01 $ 399
- -------------------------------------------------- --------------------------------------------------
- -------------------------------------------------- --------------------------------------------------
Card Income Mortgage Banking Income
[GRAPHIC] [GRAPHIC]
2Q00 $ 556 2Q00 $ 136
3Q00 $ 594 3Q00 $ 144
4Q00 $ 595 4Q00 $ 152
1Q01 $ 573 1Q01 $ 151
2Q01 $ 601 2Q01 $ 195
- -------------------------------------------------- --------------------------------------------------
18
Banc of America Securities
League Table Rankings
(Percent share of volume)
- -------------------------------------------------- --------------------------------------------------
[GRAPHIC] [GRAPHIC]
1H 00 3% #10 1H 00 8% #5
1H 01 10% #5 1H 01 11% #4
- -------------------------------------------------- --------------------------------------------------
High Yield High Grade
(Full Credit to Book - equal if joint) (Full Credit to Book)
- -------------------------------------------------- --------------------------------------------------
[GRAPHIC] [GRAPHIC]
1H 00 3% #9 1H 00 21% #2
1H 01 5% #7 1H 01 19% #2
- -------------------------------------------------- --------------------------------------------------
Equity Underwriting Loan Syndications
(Apportioned Credit to Book) (Lead Arranger)
19