EXHIBIT 99.1
July 17, 2000
Contact:
Investors Susan Carr (704-386-8059) or Kevin Stitt (704-386-5667)
Media Bob Stickler or Cary Walker (704-386-8465)
Bank of America Reports 2nd Quarter Earnings of $1.23 Per Share
CHARLOTTE, July 17, 2000 - Bank of America Corporation today reported second
quarter earnings of $1.23 per share (diluted), up 7 percent from operating
earnings per share of $1.15 a year ago.
Net income was $2.06 billion, essentially unchanged from operating earnings a
year earlier. Net income in the second quarter of 1999 was $1.92 billion, or
$1.07 per share, including a $145 million after-tax merger-related charge.
For the first six months of 2000, Bank of America earned $2.56 per share, up 15
percent from operating earnings per share of $2.23 a year earlier and up 19
percent from reported earnings per share of $2.15. Net income for the first half
of 2000 was $4.30 billion, compared to operating earnings of $3.97 billion and
net income of $3.83 billion, respectively, a year earlier.
The return on common equity in the latest quarter was 17.63 percent, virtually
unchanged from a year earlier, and the return on assets was 1.23 percent.
Cash-basis earnings - which exclude the amortization of intangibles - were
$2.28 billion, or $1.36 per share, in the latest quarter. The return on average
tangible common shareholders' equity was 27.5 percent.
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"A number of our businesses had a strong quarter - especially in consumer
banking," said Hugh L. McColl Jr., chairman and chief executive officer. "Net
interest income picked up as loan growth continued to be strong. Slower capital
markets activity and depreciation in venture capital investments due to lower
stock prices somewhat offset the significant improvement in these and other
areas," he said, "Despite a slower market, we did gain market share in a number
of key investment banking businesses."
"We are hard at work transforming our company to succeed in the new millennium,"
McColl continued. "We have many initiatives underway to streamline processes and
make investments that will enhance our customers' experience with us. We expect
these initiatives to boost our business in future quarters."
Second Quarter Strategic Highlights
o Mutual fund assets rose by $12 billion, or 14 percent, during the first six
months of the year. In addition, the company agreed to acquire the
remaining 50 percent of Marsico Capital Management LLC, a highly successful
and fast-growing investment management firm which manages more than $15
billion in assets.
o Balances in Money Manager, the company's combination checking and brokerage
product, increased 80 percent from a year ago to $16.5 billion. Total Money
Manager accounts more than doubled to 121,000.
o An alliance with Checkfree Holdings Corporation was announced, aimed at
enhancing the company's advantage in online banking and creating a national
platform for accelerating the development of electronic bill payment and
presentment convenience for consumers in the United States.
Second Quarter Financial Highlights (compared to a year ago)
o Consumer and Commercial Banking had a strong quarter, with earnings
rising 5 percent from a year ago and 18 percent from the first quarter.
The return on equity for this unit rose to 21 percent.
o Card revenue rose 13 percent.
o Consumer investment and brokerage revenue grew 16 percent.
o Trading revenue was up 19 percent.
o Corporate banking service revenue rose 9 percent.
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o Noninterest expense declined 1 percent.
o Average managed consumer loans and leases increased 19 percent.
o Net charge-offs declined to an annualized .48 percent of loans and
leases - an improvement of 9 basis points.
Net Interest Income
Fully taxable-equivalent net interest income of $4.71 billion was 1 percent
above a year earlier. The increase reflected 12 percent average managed loan
growth, higher levels of core deposits and equity and an increased contribution
from trading activities. These improvements were partially offset by the impact
of loan sales and securitizations in 1999, margin compression and the cost of
share repurchases, all of which also contributed to the decline in the net
interest yield of 29 basis points to 3.24 percent.
Average managed loans and leases reached $419 billion, primarily reflecting a
19 percent increase in consumer loans and leases. Average core deposits grew by
3 percent, or $9.2 billion, to $300 billion.
Noninterest Income
Noninterest income declined 1 percent to $3.50 billion, primarily because of the
absence of loan sales and securitizations in other income which occurred a year
ago.
Card revenue rose due to double-digit purchase volume growth across all card
products and improved credit quality in the managed portfolio. Consumer
investment and brokerage revenue increased, reflecting higher mutual fund,
brokerage and tax preparation fees. Service charges and trading revenues also
registered significant gains.
Investment banking results declined 11 percent due to slower market activity in
the quarter. Other income, which includes loan sales and securitizations as well
as other miscellaneous fee income, dropped 48 percent.
Realized equity investment gains totaled $221 million. The depreciation in fair
value of equity investments was $87 million.
Securities gains were $6 million compared to $52 million in the second quarter
of 1999.
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Efficiency
Noninterest expense declined 1 percent to $4.41 billion, reflecting continued
benefits from recent mergers. The efficiency ratio was 54 percent.
Credit Quality
The provision for credit losses in the second quarter was $470 million, down
from $510 million a year earlier. Net charge-offs were $470 million, down from
$520 million a year ago, driven primarily by lower losses on credit card loans.
Net charge-offs were equal to an annualized .48 percent of loans and leases.
Nonperforming assets were $3.89 billion, or .97 percent of loans, leases and
foreclosed properties at June 30, 2000, compared to $3.07 billion, or .84
percent a year earlier. The increase reflects a rise in nonperforming loans in
the corporate portfolio that was not concentrated in any single industry or
region. Non-performing loans also increased in real estate-secured consumer
finance loans, reflecting the growth and maturing of that portfolio.
The allowance for credit losses totaled $6.82 billion at June 30, 2000, equal to
1.70 percent of loans and leases.
Capital Strength
Total shareholders' equity was $45.9 billion at June 30, 2000. This represented
6.75 percent of period-end assets of $680 billion. The Tier 1 Capital Ratio was
7.40 percent.
In June 1999, the company initiated a share buyback program of up to 130 million
shares. Through June 2000, 112 million shares had been repurchased, representing
an investment in Bank of America stock of $6.5 billion. Average (diluted) common
shares outstanding were 1.676 billion in the second quarter, down from 1.787
billion a year earlier.
Business Segment Results
Consumer and Commercial Banking, which serves individuals and businesses with
annual sales of up to $500 million, earned $1.25 billion and had a return on
equity of 21 percent. This segment represented 61 percent of the company's net
income.
Asset Management, which encompasses the private bank, trust, investment
management, mutual funds and retail brokerage, earned $163 million, representing
8 percent of total net income. The return on equity was 37 percent.
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Global Corporate and Investment Banking, which serves large corporate,
institutional and government customers, earned $600 million, representing
29 percent of the company's earnings. The return on equity was 16 percent.
Bank of America is the largest bank in the United States. It has full-service
operations in 21 states and the District of Columbia and provides financial
products and services to 30 million households and two million businesses, as
well as providing international corporate financial services for business
transactions in 190 countries. The company's stock (ticker: BAC) is listed on
the New York, Pacific and London stock exchanges and certain shares are listed
on the Tokyo Stock Exchange.
NOTE: James H. Hance Jr., vice chairman and chief financial officer, will
discuss the quarter in a conference call at 9:30 a.m. (EDT) today. The call can
be accessed through a webcast available on the Bank of America website.
www.bankofamerica.com
Forward Looking Statements
This press release contains forward-looking statements with respect to the
financial conditions and results of operations of Bank of America, including,
without limitation, statements relating to the earnings outlook of the company.
These forward-looking statements involve certain risks and uncertainties.
Factors that may cause actual results to differ materially from those
contemplated by such forward-looking statements include, among others, the
following possibilities: (1) projected business increases following process
changes and other investments are lower than expected; (2) competitive pressure
among financial services companies increases significantly; (3) costs or
difficulties related to the integration of acquisitions are greater than
expected; (4) general economic conditions, internationally, nationally or in the
states in which the company does business, are less favorable than expected, (5)
changes in the interest rate environment reduce interest margins and affect
funding sources; (6) changes in market rates and prices may adversely affect the
value of financial products; and (7) legislation or regulatory requirements or
changes adversely affect the businesses in which the company is engaged.
Bank of America Corporation
Three Months Six Months
Ended June 30 Ended June 30
------------------------------ ------------------------------
Financial Summary 2000 1999 2000 1999
----------- ------------ ------------ -----------
(In millions, except per share data)
Operating net income $ 2,063 $ 2,060 $ 4,303 $ 3,974
Operating earnings per common share 1.25 1.18 2.59 2.28
Diluted operating earnings per common share 1.23 1.15 2.56 2.23
Cash basis earnings (1) 2,281 2,285 4,738 4,421
Cash basis earnings per common share 1.38 1.31 2.85 2.54
Cash basis diluted earnings per common share 1.36 1.28 2.82 2.48
Dividends paid per common share .50 .45 1.00 .90
Price per share of common stock at period-end 43.00 73.31 43.00 73.31
Average common shares 1,653.495 1,743.503 1,661.403 1,740.549
Average diluted common shares 1,676.089 1,786.844 1,681.630 1,783.316
Summary Income Statement (Operating Basis)
(Taxable-equivalent basis in millions)
Net interest income $ 4,709 $ 4,663 $ 9,304 $ 9,308
Provision for credit losses (470) (510) (890) (1,020)
Gains on sales of securities 6 52 12 182
Noninterest income 3,500 3,522 7,546 6,745
Other noninterest expense (4,413) (4,457) (9,036) (8,910)
----------- ------------ ------------ -----------
Income before income taxes 3,332 3,270 6,936 6,305
Income taxes - including FTE adjustment 1,269 1,210 2,633 2,331
----------- ------------ ------------ -----------
Operating net income $ 2,063 $ 2,060 $ 4,303 $ 3,974
=========== ============ ============ ===========
Summary Balance Sheet
(Average balances in billions)
Loans and leases $391.404 $ 364.753 $383.994 $ 362.760
Managed loans and leases (2) 418.910 374.855 412.219 373.564
Securities 85.460 77.855 86.835 76.848
Earning assets 582.490 530.049 572.830 526.884
Total assets 672.588 615.364 661.804 612.510
Deposits 353.426 342.249 349.400 344.080
Shareholders' equity 47.112 46.891 46.571 46.587
Common shareholders' equity 47.037 46.821 46.495 46.516
Performance Indices (Operating Basis)
Return on average common shareholders' equity 17.63 % 17.64 % 18.60 % 17.22 %
Return on average tangible common shareholders' equity 27.51 28.49 29.14 27.97
Return on average assets 1.23 1.34 1.31 1.31
Return on average tangible assets 1.39 1.53 1.47 1.49
Net interest yield 3.24 3.53 3.26 3.55
Efficiency ratio 53.77 54.44 53.63 55.49
Cash basis efficiency ratio 51.12 51.70 51.04 52.71
Net charge-offs (in millions) $ 470 $ 520 $ 890 $ 1,039
% of average loans and leases .48 % .57 % .47 % .58 %
Managed bankcard net charge-offs as a % of average
managed bankcard receivables 4.84 6.13 5.13 6.07
Reported Results (Including Merger-Related Charges)
(In millions, except per share data)
Net income $ 2,063 $ 1,915 $ 4,303 $ 3,829
Earnings per common share 1.25 1.10 2.59 2.20
Diluted earnings per common share 1.23 1.07 2.56 2.15
Return on average common shareholders' equity 17.63 % 16.40 % 18.60 % 16.59 %
(1) Cash basis earnings equal operating net income excluding amortization of intangibles.
(2) Prior periods are restated for comparison (e.g. acquisitions, divestitures and securitizations).
Bank of America Corporation - Continued
June 30
--------------------------------
2000 1999
--------------------------------
Balance Sheet Highlights
(In billions, except per share data)
Loans and leases $400.817 $ 363.581
Securities 80.957 76.511
Earning assets 587.985 528.797
Total assets 679.538 614.102
Deposits 356.664 339.045
Shareholders' equity 45.861 45.631
Common shareholders' equity 45.786 45.551
Per share 27.82 26.44
Total equity to assets ratio (period-end) 6.75 % 7.43 %
Risk-based capital
Tier 1 capital ratio 7.40 7.38
Total capital ratio 11.03 11.09
Leverage ratio 6.11 6.34
Common shares issued and outstanding (in millions) 1,645.701 1,722.931
Allowance for credit losses $ 6.815 $ 7.096
Allowance for credit losses as a % of loans and leases 1.70 % 1.95 %
Allowance for credit losses as a % of nonperforming loans 184.66 252.38
Nonperforming loans $ 3.691 $ 2.812
Nonperforming assets 3.886 3.070
Nonperforming assets as a % of:
Total assets .57 % .50 %
Loans, leases and foreclosed properties .97 .84
Other Data
Full-time equivalent headcount 150,854 161,919
Banking centers 4,450 4,531
ATMs 13,944 14,051
BUSINESS SEGMENT RESULTS - Three Months Ended June 30, 2000
(In millions)
Operating Average Loans Return on Average
Total Revenue Net Income and Leases Equity
------------- --------------- ----------------- ------------------
Consumer and Commercial Banking $ 5,214 $ 1,254 $261,091 20.6 %
Asset Management 579 163 21,772 37.2
Global Corporate and Investment Banking 2,336 600 108,635 15.6
Other 80 46 n/m n/m
n/m = not meaningful
Bank of America Corporation
Consolidated Financial Highlights
(Excludes Merger-Related Charges)
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(Dollars in Millions Except Per Share Information, Shares in Millions)
Second First Fourth Third Second
Quarter Quarter Quarter Quarter Quarter
2000 2000 1999 1999 1999
-------------------------------------------------------------
Operating net income $ 2,063 $ 2,240 $ 2,115 $ 2,151 $ 2,060
Cash basis earnings (1) 2,281 2,457 2,334 2,373 2,285
Operating earnings per common share 1.25 1.34 1.24 1.25 1.18
Diluted operating earnings per common share 1.23 1.33 1.23 1.23 1.15
Cash basis earnings per common share 1.38 1.47 1.37 1.38 1.31
Cash basis diluted earnings per common share 1.36 1.46 1.35 1.35 1.28
Dividends per common share .50 .50 .50 .45 .45
Average common shares issued and outstanding 1,653.495 1,669.311 1,701.092 1,722.307 1,743.503
Average diluted common shares issued and oustanding 1,676.089 1,688.318 1,725.187 1,755.146 1,786.844
Period-end common shares issued and outstanding 1,645.701 1,657.754 1,677.273 1,710.039 1,722.931
Period-end managed loans and leases* $ 427,594 $ 408,580 $ 398,243 $ 382,056 $ 377,314
Average managed loans and leases* 418,910 404,401 390,468 378,843 374,855
*Prior periods restated for comparison (e.g. acquisitions, divestitures and securitizations).
Performance ratios (Operating basis):
Return on average assets 1.23 % 1.38 % 1.33 % 1.40 % 1.34 %
Return on average tangible assets 1.39 1.55 1.50 1.58 1.53
Return on average common shareholders' equity 17.63 19.59 17.95 18.40 17.64
Return on average tangible common shareholders' equity 27.51 30.83 28.38 29.48 28.49
Efficiency ratio 53.77 53.49 55.91 54.34 54.44
Cash basis efficiency ratio 51.12 50.98 53.22 51.67 51.70
Net interest yield 3.24 3.27 3.32 3.46 3.53
Book value per common share $ 27.82 $ 27.28 $ 26.44 $ 26.79 $ 26.44
Market price per share of common stock:
High for the period 61 55 3/16 67 1/2 76 3/8 76 1/8
Low for the period 42 63/64 42 5/16 47 5/8 53 1/4 61 1/2
Closing price 43 52 7/16 50 3/16 55 11/16 73 5/16
Other data:
Number of banking centers 4,450 4,502 4,524 4,535 4,531
Number of ATMs 13,944 13,954 14,019 14,042 14,051
Full-time equivalent employees 150,854 152,948 155,906 158,886 161,919
(1) Cash basis earnings equals net income excluding amortization of intangibles.
Page 1
Bank of America Corporation
Consolidated Statement of Income
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(Dollars in Millions, Except Per Share Information)
Second First Fourth Third Second
Quarter Quarter Quarter Quarter Quarter
2000 2000 1999 1999 1999
----------------------------------------------------------
Interest income
Interest and fees on loan and leases $ 7,923 $ 7,394 $ 7,063 $ 6,883 $ 6,853
Interest and dividends on securities 1,271 1,331 1,300 1,208 1,143
Federal funds sold and securities purchased under agreements to resell 595 575 458 440 387
Trading account asssets 694 536 535 482 525
Other interest income 254 250 266 281 298
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Total interest income 10,737 10,086 9,622 9,294 9,206
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Interest expense
Deposits 2,720 2,495 2,324 2,198 2,168
Short-term borrowings 1,990 1,802 1,638 1,437 1,396
Trading account liabilities 189 181 190 189 150
Long-term debt 1,207 1,084 995 920 880
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Total interest expense 6,106 5,562 5,147 4,744 4,594
----------------------------------------------------------
Net interest income 4,631 4,524 4,475 4,550 4,612
Provision for credit losses 470 420 350 450 510
----------------------------------------------------------
Net interest income after provision 4,161 4,104 4,125 4,100 4,102
Gains on sales of securities 6 6 14 44 52
Noninterest income
Consumer service charges 646 618 669 644 634
Corporate service charges 479 489 477 480 439
----------------------------------------------------------
Total service charges 1,125 1,107 1,146 1,124 1,073
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Consumer investment and brokerage services 387 364 334 355 334
Corporate investment and brokerage services 105 121 103 63 133
----------------------------------------------------------
Total investment and brokerage services 492 485 437 418 467
----------------------------------------------------------
Mortgage servicing income 136 128 210 206 125
Investment banking income 373 397 394 363 421
Equity investment gains 134 563 205 339 134
Card income 556 484 558 557 497
Trading account profits 471 724 287 313 395
Other income 213 158 359 408 410
----------------------------------------------------------
Total noninterest income 3,500 4,046 3,596 3,728 3,522
----------------------------------------------------------
Other noninterest expense
Personnel 2,311 2,534 2,378 2,336 2,261
Occupancy 411 418 419 417 395
Equipment 296 301 336 313 339
Marketing 132 119 98 145 147
Professional fees 93 105 178 160 166
Amortization of intangibles 218 217 219 222 225
Data processing 169 159 195 164 214
Telecommunications 133 131 142 131 140
Other general operating 505 515 456 498 446
General administrative 145 124 129 140 124
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Total other noninterest expense 4,413 4,623 4,550 4,526 4,457
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Operating income before income taxes 3,254 3,533 3,185 3,346 3,219
Income tax expense 1,191 1,293 1,070 1,195 1,159
----------------------------------------------------------
Operating net income $ 2,063 $ 2,240 $ 2,115 $ 2,151 $ 2,060
----------------------------------------------------------
Operating income available to common shareholders $ 2,061 $ 2,239 $ 2,114 $ 2,149 $ 2,059
----------------------------------------------------------
Per share information
Operating earnings per common share $1.25 $1.34 $1.24 $1.25 $1.18
----------------------------------------------------------
Diluted operating earnings per common share $1.23 $1.33 $1.23 $1.23 $1.15
----------------------------------------------------------
Dividends per common share $ .50 $ .50 $ .50 $ .45 $ .45
----------------------------------------------------------
Average common shares issued and outstanding (in thousands) 1,653,495 1,669,311 1,701,092 1,722,307 1,743,503
----------------------------------------------------------
Average diluted common shares issued and outstanding (in thousands) 1,676,089 1,688,318 1,725,187 1,755,146 1,786,844
----------------------------------------------------------
As reported (includes merger-related charges, net of tax)
Net income $ 2,063 $ 2,240 $ 1,902 $ 2,151 $ 1,915
Net income available to common shareholders 2,061 2,239 1,901 2,149 1,914
Earnings per common share 1.25 1.34 1.12 1.25 1.10
Diluted earnings per common share 1.23 1.33 1.10 1.23 1.07
Certain prior period amounts have been reclassified to conform to current period classifications.
Page 2
Bank of America Corporation
Consolidated Balance Sheet
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June 30 March 31 June 30
(Dollars in Millions) 2000 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
Assets
Cash and cash equivalents $ 27,493 $ 27,259 $ 24,197
Time deposits placed and other short-term investments 4,394 3,250 5,350
Federal funds sold and securities purchased under agreements to resell 42,460 39,801 35,907
Trading account assets 50,162 47,321 35,427
Securities:
Available for sale 79,518 82,557 75,012
Held for investment 1,439 1,294 1,499
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Total securities 80,957 83,851 76,511
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Loans and leases 400,817 382,085 363,581
Allowance for credit losses (6,815) (6,827) (7,096)
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Loans and leases, net of allowance for credit losses 394,002 375,258 356,485
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Premises and equipment, net 6,514 6,607 7,012
Customers' acceptance liability 2,477 2,362 1,908
Derivative-dealer assets 16,149 17,877 13,808
Interest receivable 4,083 3,870 3,478
Mortgage servicing rights 4,065 4,080 3,538
Goodwill 11,961 12,121 12,741
Core deposit and other intangibles 1,617 1,674 1,875
Other assets 33,204 30,782 35,865
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Total Assets $ 679,538 $ 656,113 $ 614,102
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Liabilities
Deposits in domestic offices:
Noninterest-bearing $ 94,014 $ 92,496 $ 88,611
Interest-bearing 207,977 209,427 201,018
Deposits in foreign offices:
Noninterest-bearing 1,631 1,986 1,775
Interest-bearing 53,042 47,717 47,641
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Total deposits 356,664 351,626 339,045
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Federal funds sold and securities purchased under agreements to repurchase 89,508 83,775 78,317
Trading account liabilities 23,056 23,007 16,394
Derivative-dealer liabilities 17,609 17,805 13,506
Commercial paper 10,225 9,045 7,604
Other short-term borrowings 39,801 37,007 34,045
Acceptances outstanding 2,477 2,362 1,908
Accrued expenses and other liabilites 20,137 19,173 17,638
Long-term debt 69,245 62,059 55,059
Trust preferred securities 4,955 4,955 4,955
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Total liabilities 633,677 610,814 568,471
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Shareholders' equity
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and
outstanding 1,742,349; 1,807,349 and 1,871,753 shares 75 77 80
Common stock, $0.01 par value; authorized - 5,000,000,000 shares; issued and
outstanding 1,645,701,425; 1,657,753,677 and 1,722,930,646 shares 10,188 10,828 14,433
Retained earnings 38,330 37,089 33,256
Accumulated other comprehensive loss (2,537) (2,492) (1,595)
Other (195) (203) (543)
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Total shareholders' equity 45,861 45,299 45,631
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Total liabilities and shareholders' equity $ 679,538 $ 656,113 $ 614,102
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Bank of America Corporation
Quarterly Taxable-Equivalent Data
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(Dollars in Millions)
Second Quarter 2000 First Quarter 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 $ 4,578 $ 79 7.02 % $ 4,504 $ 75 6.65 %
Federal funds sold and securities purchased under
agreements to resell 43,983 595 5.43 45,459 575 5.07
Trading account assets 48,874 702 5.77 39,733 542 5.47
Securities:
Available for sale (1) 84,054 1,270 6.05 86,878 1,332 6.15
Held for investment 1,406 27 7.68 1,333 24 7.19
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Total securities 85,460 1,297 6.08 88,211 1,356 6.16
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Loans and leases (2):
Commercial - domestic 148,034 3,023 8.21 145,362 2,824 7.81
Commercial - foreign 29,068 515 7.12 27,927 486 6.99
Commercial real estate - domestic 25,497 563 8.88 24,664 517 8.43
Commercial real estate - foreign 376 8 9.15 344 8 9.29
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Total commercial 202,975 4,109 8.14 198,297 3,835 7.78
---------------------------------------------------------
Residential mortgage 91,825 1,696 7.40 85,427 1,566 7.34
Home equity lines 19,067 422 8.91 17,573 377 8.62
Direct/Indirect consumer 41,757 867 8.36 41,858 887 8.52
Consumer finance 24,123 545 9.03 22,798 486 8.53
Bankcard 9,429 279 11.87 8,404 234 11.22
Foreign consumer 2,228 48 8.81 2,227 50 9.00
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Total consumer 188,429 3,857 8.21 178,287 3,600 8.10
---------------------------------------------------------
Total loans and leases 391,404 7,966 8.17 376,584 7,435 7.93
---------------------------------------------------------
Other earning assets 8,191 176 8.53 8,679 174 8.11
---------------------------------------------------------
Total earning assets (3) 582,490 10,815 7.45 563,170 10,157 7.24
---------------------------------------------------------
Cash and cash equivalents 25,605 25,830
Other assets, less allowance for credit losses 64,493 62,019
---------------------------------------------------------
Total assets $672,588 $651,019
---------------------------------------------------------
Interest-bearing liabilities:
Domestic interest-bearing deposits:
Savings $23,936 78 1.32 $24,237 78 1.29
NOW and money market deposit accounts 100,186 734 2.94 98,424 679 2.78
Consumer CDs and IRAs 77,384 1,034 5.38 76,074 983 5.20
Negotiated CDs, public funds and other time deposits 7,361 111 6.09 6,966 103 5.93
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Total domestic interest-bearing deposits 208,867 1,957 3.77 205,701 1,843 3.60
---------------------------------------------------------
Foreign interest-bearing deposits (4):
Banks located in foreign countries 15,823 232 5.92 14,180 188 5.33
Governments and official institutions 9,885 151 6.12 8,745 124 5.72
Time, savings, and other 27,697 380 5.51 26,382 340 5.17
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Total foreign interest-bearing deposits 53,405 763 5.74 49,307 652 5.31
---------------------------------------------------------
Total interest-bearing deposits 262,272 2,720 4.17 255,008 2,495 3.93
---------------------------------------------------------
Federal funds purchased, securities sold under agreements
to repurchase and other short-term borrowings 135,817 1,990 5.89 131,517 1,802 5.51
Trading account liabilities 20,532 189 3.70 23,013 181 3.16
Long-term debt (5) 69,779 1,207 6.92 64,256 1,084 6.75
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Total interest-bearing liabilities (6) 488,400 6,106 5.02 473,794 5,562 4.72
---------------------------------------------------------
Noninterest-bearing sources:
Noninterest-bearing deposits 91,154 90,366
Other liabilities 45,922 40,829
Shareholders' equity 47,112 46,030
----------------------------------------------------------
Total liabilities and shareholders' equity $672,588 $651,019
----------------------------------------------------------
Net interest spread 2.43 2.52
Impact of noninterest-bearing sources .81 .75
----------------------------------------------------------
Net interest income/yield on earning assets $4,709 3.24 % $4,595 3.27 %
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(1) The average balance and yield on available-for-sale securities are based on the average of historical amortized cost balances.
(2) Nonperforming loans are included in the average loan balances. Income on such nonperforming loans is recognized on a cash
basis.
(3) Interest income includes taxable-equivalent basis adjustments of $78 and $71 in the second and first quarters of 2000 and $66,
$53, and $51 in the fourth, third, and second quarters of 1999, respectively. Interest income also includes the impact of risk
management interest rate contracts, which (decreased) increased interest income on the underlying assets $(11) and $7 in the
second and first quarters of 2000 and $57, $103, and $83 in the fourth, third, and second quarters of 1999, 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 $(5) and $(8) in the second and first quarters of 2000 and $(2), $6, $52 in the fourth, third,
and second quarters of 1999, respectively.
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Fourth Quarter 1999 Third Quarter 1999 Second Quarter 1999
- ----------------------------------------------------------------------------------------------
Interest Interest Interest
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate Balance Expense Rate
- ------------ --------- ------- ----------- -------- ------- ----------------------------
$ 4,512 $ 73 6.33 % $ 5,018 $ 69 5.50 % $ 5,159 $ 65 5.03 %
39,700 458 4.60 33,074 440 5.30 29,521 387 5.25
38,453 544 5.63 37,453 483 5.14 39,837 528 5.31
85,009 1,301 6.10 78,779 1,208 6.12 76,373 1,139 5.97
1,433 25 7.25 1,482 26 7.02 1,482 28 7.61
- ----------------------------------------------------------------------------------------------
86,442 1,326 6.12 80,261 1,234 6.13 77,855 1,167 6.00
- ----------------------------------------------------------------------------------------------
140,674 2,707 7.64 136,149 2,488 7.25 138,257 2,473 7.17
27,430 453 6.56 28,348 494 6.93 30,209 456 6.05
24,345 506 8.23 25,056 517 8.19 25,938 533 8.25
306 6 8.96 295 7 8.80 289 6 8.48
- ----------------------------------------------------------------------------------------------
192,755 3,672 7.56 189,848 3,506 7.33 194,693 3,468 7.14
- ----------------------------------------------------------------------------------------------
79,783 1,450 7.26 80,015 1,431 7.14 80,151 1,430 7.14
16,882 345 8.12 16,316 321 7.79 15,857 304 7.68
42,442 888 8.30 42,740 875 8.13 42,240 859 8.15
21,340 440 8.18 19,923 433 8.62 17,794 424 9.56
8,578 245 11.32 8,923 256 11.38 10,365 306 11.83
2,430 54 8.77 3,635 86 9.36 3,653 87 9.55
- ----------------------------------------------------------------------------------------------
171,455 3,422 7.94 171,552 3,402 7.89 170,060 3,410 8.03
- ----------------------------------------------------------------------------------------------
364,210 7,094 7.74 361,400 6,908 7.59 364,753 6,878 7.56
- ----------------------------------------------------------------------------------------------
10,247 193 7.51 11,358 213 7.40 12,924 232 7.23
- ----------------------------------------------------------------------------------------------
543,564 9,688 7.09 528,564 9,347 7.03 530,049 9,257 7.00
- ----------------------------------------------------------------------------------------------
25,467 25,905 25,868
61,712 56,979 59,447
- ----------------------------------------------------------------------------------------------
$630,743 $611,448 $615,364
- ----------------------------------------------------------------------------------------------
$25,082 80 1.27 $26,037 82 1.25 $21,799 67 1.24
97,481 639 2.60 96,402 579 2.38 100,897 581 2.31
74,653 932 4.95 73,429 898 4.85 73,601 847 4.61
6,825 98 5.73 6,609 94 5.66 6,238 80 5.14
- ----------------------------------------------------------------------------------------------
204,041 1,749 3.40 202,477 1,653 3.24 202,535 1,575 3.12
- ----------------------------------------------------------------------------------------------
14,305 178 4.93 13,668 160 4.65 16,947 196 4.62
7,121 99 5.53 7,185 90 4.99 8,089 98 4.81
24,993 298 4.72 25,500 295 4.57 26,354 299 4.56
- ----------------------------------------------------------------------------------------------
46,419 575 4.91 46,353 545 4.66 51,390 593 4.62
- ----------------------------------------------------------------------------------------------
250,460 2,324 3.68 248,830 2,198 3.50 253,925 2,168 3.42
- ----------------------------------------------------------------------------------------------
120,858 1,638 5.38 114,934 1,437 4.96 116,339 1,396 4.82
19,223 190 3.92 15,677 189 4.78 14,178 150 4.25
59,972 995 6.63 59,283 920 6.21 58,302 880 6.03
- ----------------------------------------------------------------------------------------------
450,513 5,147 4.54 438,724 4,744 4.30 442,744 4,594 4.16
- ----------------------------------------------------------------------------------------------
91,453 88,168 88,324
41,985 38,117 37,405
46,792 46,439 46,891
- -----------------------------------------------------------------------------------------------
$630,743 $611,448 $615,364
- -----------------------------------------------------------------------------------------------
2.55 2.73 2.84
.77 .73 .69
- -----------------------------------------------------------------------------------------------
$4,541 3.32 % $4,603 3.46 % $4,663 3.53 %
- -----------------------------------------------------------------------------------------------
Page 5
Bank of America Corporation
Credit Quality - Nonperforming Assets
- ----------------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
June 30, March 31, December 31, September 30, June 30,
2000 2000 1999 1999 1999
------------------------------------------------------------------
Nonperforming loans:
Commercial - domestic $1,535 $1,301 $1,163 $1,026 $1,085
Commercial - foreign 588 500 486 477 492
Commercial real estate - domestic 164 208 191 174 203
Commercial real estate - foreign 2 3 3 3 3
Residential mortgage 505 483 529 542 565
Home equity lines 44 45 46 44 44
Direct/Indirect consumer 20 18 19 16 17
Consumer finance 826 737 598 519 382
Foreign consumer 7 7 7 9 21
------------------------------------------------------------------
Total nonperforming loans 3,691 3,302 3,042 2,810 2,812
Foreclosed properties 195 179 163 228 258
------------------------------------------------------------------
Total nonperforming assets $3,886 $3,481 $3,205 $3,038 $3,070
------------------------------------------------------------------
Loans past due 90 days or more and not classified as
nonperforming $ 482 $ 461 $ 521 $ 466 $ 631
Nonperforming assets as a percentage of:
Total assets .57 % .53 % .51 % .49 % .50 %
Loans, leases and foreclosed properties .97 .91 .86 .84 .84
- ----------------------------------------------------------------------------------------------------------------------
Total Nonperforming Assets by Business Segment:
Consumer and Commercial Banking $2,224 $2,047 $1,868 $1,908 $1,964
Asset Management 42 18 33 42 32
Global Corporate and Investment Banking 1,619 1,415 1,299 1,086 1,073
Other 1 1 5 2 1
------------------------------------------------------------------
Total nonperforming assets $3,886 $3,481 $3,205 $3,038 $3,070
------------------------------------------------------------------
Page 6
Bank of America Corporation
Credit Quality - Loan Losses
- ------------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
2000 2000 1999 1999 1999
---------------------------------------------------------------------------------
Net charge-offs:
Commercial - domestic $ 226 $ 172 $ 191 $ 192 $ 147
Commercial - foreign 24 5 22 9 84
Commercial real estate - domestic 6 6 1 1 (6)
Commercial real estate - foreign - (2) - - 1
Residential mortgage 4 4 6 10 7
Home equity lines 3 3 4 1 3
Bankcard 77 81 94 93 153
Direct/Indirect consumer 61 91 110 82 83
Consumer finance 59 57 72 67 42
Other consumer domestic 10 2 - (1) -
Foreign consumer - 1 1 6 6
---------------------------------------------------------------------------------
Total $ 470 $ 420 $ 501 $ 460 $ 520
---------------------------------------------------------------------------------
Loss ratios:
Commercial - domestic .62 % .47 % .54 % .56 % .43 %
Commercial - foreign .33 .08 .32 .13 1.12
Commercial real estate - domestic .09 .10 .02 .03 n/m
Commercial real estate - foreign .16 n/m .44 .40 .10
Residential mortgage .02 .02 .03 .05 .04
Home equity lines .05 .07 .10 .01 .09
Bankcard** 3.30 3.86 4.34 4.11 5.94
Direct/Indirect consumer .58 .88 1.02 .77 .78
Consumer finance .97 1.01 1.33 1.35 .94
Other consumer domestic - - - n/m -
Foreign consumer .09 .12 .25 .67 .65
Total .48 .45 .55 .51 .57
Loss Ratios by Business Segment:
Consumer and Commercial Banking .48 % .52 % .78 % .56 % .60 %
Asset Management n/m n/m .22 .70 .32
Global Corporate and Investment Banking .63 .37 .40 .35 .57
Other n/m n/m n/m .83 1.30
Allowance for credit losses $ (6,815) $ (6,827) $ (6,828) $ (7,076) $ (7,096)
Allowance for credit losses as a percentage
of loans and leases 1.70 % 1.79 % 1.84 % 1.96 % 1.95 %
- ----------------------------------------------------------------------------------------------------------------------------
* Managed Bankcard receivable net charge-offs $ 237 $ 257 $ 257 $ 233 $ 294
** Managed Bankcard portfolio loss ratios 4.84 % 5.43 % 5.29 % 4.83 % 6.13 %
Average managed Bankcard receivables $ 19,677 $ 19,051 $ 19,258 $ 19,162 $ 19,204
n/m = not meaningful
Page 7
Bank of America Corporation
Capital
- -----------------------------------------------------------------------------------------------------------------------------------
(Dollars in Millions)
Second First Fourth Third Second
Quarter Quarter Quarter Quarter Quarter
2000 2000 1999 1999 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Beginning total shareholders' equity $ 45,299 $ 44,432 $ 45,889 $ 45,631 $ 46,831
Net income 2,063 2,240 1,902 2,151 1,915
Dividends (825) (833) (852) (776) (787)
Common stock issued 117 25 154 329 330
Common stock repurchased (712) (911) (1,954) (1,182) (1,722)
Change in FAS 115 adjustment-net
unrealized gains (losses) (47) 166 (726) (337) (1,007)
Change in preferred equity (2) - (1) (2) 10
Foreign currency translation
adjustment and other (32) 180 20 75 61
- -----------------------------------------------------------------------------------------------------------------------------------
Ending total shareholders' equity $ 45,861 $ 45,299 $ 44,432 $ 45,889 $ 45,631
- -----------------------------------------------------------------------------------------------------------------------------------
Preferred equity (75) (77) (77) (78) (80)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending common equity $ 45,786 $ 45,222 $ 44,355 $ 45,811 $ 45,551
- -----------------------------------------------------------------------------------------------------------------------------------
FAS 115 adjustment - end of period $(2,351) $(2,304) $(2,470) $(1,744) $(1,407)
Total equity as a percentage of total assets 6.75 % 6.90 % 7.02 % 7.39 % 7.43 %
Common equity as a percentage of total assets 6.74 6.89 7.01 7.38 7.42
Risk-based capital ratios:
Tier 1 capital $40,257 $39,355 $38,651 $39,380 $38,145
Tier 1 capital ratio 7.40 % 7.42 % 7.35 % 7.71 % 7.38 %
Total capital $60,027 $58,376 $57,192 $58,167 $57,365
Total capital ratio 11.03 % 11.00 % 10.88 % 11.39 % 11.09 %
Leverage ratio 6.11 6.17 6.26 6.59 6.34
Risk-weighted assets, net $543,987 $530,514 $525,625 $510,866 $517,130
Page 8
Bank of America Corporation
Consumer and Commercial Banking Segment
- ------------------------------------------------------------------------------------------------------------------------
Consumer and Commercial Banking Segment Results
- ------------------------------------------------------------------------------------------------------------------------
Quarterly
----------------------------------------
Key Measures (in Millions) 2Q00 1Q00
------------------- -----------------
Net Income $1,254 $1,064
Cash Basis Earnings (1) 1,423 1,233
Total Revenue 5,214 5,028
Average Equity to Average Assets 7.88 % 8.00 %
Return on Average Equity 20.6 17.8
Return on Tangible Equity (1) 29.0 25.8
Efficiency Ratio 54.4 57.7
Cash Basis Efficiency Ratio (1) 51.1 54.3
Selected Average Balance
Sheet Components (in Billions)
Total Loans and Leases $261 $250
Total Deposits 256 253
Total Earning Assets 284 273
Consumer and Commercial Banking Sub-Segment Results
- ------------------------------------------------------------------------------------------------------------------------
Quarterly
----------------------------------------
Key Measures (in Millions) 2Q00 1Q00
------------------- -----------------
Banking Regions
Total Revenue $2,965 $2,904
Cash Basis Earnings (1) 763 683
Cash Basis Efficiency Ratio (1) 58.2 % 61.3 %
Consumer Products
Total Revenue $1,485 $1,328
Cash Basis Earnings (1) 440 326
Cash Basis Efficiency Ratio (1) 39.9 % 44.7 %
Commercial Banking
Total Revenue $764 $796
Cash Basis Earnings (1) 220 224
Cash Basis Efficiency Ratio (1) 45.5 % 44.8 %
(1) Cash basis calculations exclude goodwill and other intangible assets and their related amortization expense.
Page 9
Bank of America Corporation
Asset Management Segment
- -------------------------------------------------------------------------------------------------------------------
Asset Management Segment Results
- -------------------------------------------------------------------------------------------------------------------
Quarterly
---------------------------------------
Key Measures (in Millions) 2Q00 1Q00
------------------- ----------------
Net Income $163 $154
Cash Basis Earnings (1) 169 160
Total Revenue 579 565
Average Equity to Average Assets 7.55 % 7.82 %
Return on Average Equity 37.2 35.5
Return on Tangible Equity (1) 42.9 41.2
Efficiency Ratio 54.4 53.8
Cash Basis Efficiency Ratio (1) 53.4 52.7
Selected Average Balance
Sheet Components (in Billions)
Total Loans and Leases $22 $21
Total Deposits 12 11
Total Earning Assets 23 22
(1) Cash basis calculations exclude goodwill and other intangible assets and their related amortization expense.
Page 10
Bank of America Corporation
Global Corporate and Investment Banking Segment
- ------------------------------------------------------------------------------------------------------------
Global Corporate and Investment Banking Segment Results
- ------------------------------------------------------------------------------------------------------------
Quarterly
--------------------------------------
Key Measures (in Millions) 2Q00 1Q00
----------------- -----------------
Net Income $600 $956
Cash Basis Earnings (1) 643 998
Total Revenue 2,336 2,889
Average Equity to Average Assets 6.26 % 6.24 %
Return on Average Equity 15.6 26.0
Return on Tangible Equity (1) 18.4 30.0
Efficiency Ratio 54.2 47.2
Cash Basis Efficiency Ratio (1) 52.3 45.7
Selected Average Balance
Sheet Components (in Billions)
Total Loans and Leases $109 $106
Total Deposits 70 67
Total Earning Assets 203 195
Global Corporate and Investment Banking Sub-Segment Results
- ------------------------------------------------------------------------------------------------------------
Quarterly
--------------------------------------
Key Measures (in Millions) 2Q00 1Q00
----------------- -----------------
Global Credit Products
Total Revenue $783 $717
Cash Basis Earnings (1) 329 286
Cash Basis Efficiency Ratio (1) 22.0 % 23.1 %
Global Capital Raising
Total Revenue $733 $800
Cash Basis Earnings (1) 132 187
Cash Basis Efficiency Ratio (1) 73.3 % 72.0 %
Global Markets
Total Revenue $392 $595
Cash Basis Earnings (1) 98 192
Cash Basis Efficiency Ratio (1) 58.9 % 50.0 %
Global Treasury Services
Total Revenue $345 $334
Cash Basis Earnings (1) 48 78
Cash Basis Efficiency Ratio (1) 74.1 % 76.6 %
Principal Investing
Total Revenue $83 $443
Cash Basis Earnings (1) 36 255
Cash Basis Efficiency Ratio (1) 32.5 % 5.6 %
(1) Cash basis calculations exclude goodwill and other intangible assets and their related amortization expense.
Page 11