Exhibit 99.2
Bank of America(R)
[LOGO](SM)
Supplemental Information
First Quarter 2002
April 15, 2002
This information is preliminary and based on company data available at the time
of the presentation. It speaks only as of the particular date or dates included
in the accompanying pages. Bank of America does not undertake an obligation to,
and disclaims any duty to, correct or update any of the information provided.
Any forward-looking statements in this information are subject to the
forward-looking language contained in Bank of America's reports filed with the
SEC pursuant to the Securities Exchange Act of 1934, which are available at the
SEC's website (www.sec.gov) or at Bank of America's website
(www.bankofamerica.com). Bank of America's future financial performance is
subject to risks and uncertainties as described in its SEC filings.
Bank of America
Consolidated Financial Highlights
- -----------------------------------------------------------------------------------------------------------------------------
(Dollars in millions, except per share information; shares in thousands)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
2002 2001 2001 2001 2001
---------------------------------------------------------------------
Operating Basis /(1)/
Income statement (taxable-equivalent basis)
Total revenue /(2)/ $ 8,687 $ 8,903 $ 8,719 $ 8,858 $ 8,501
Provision for credit losses 840 1,401 856 800 835
Gains (losses) on sales of securities 44 393 97 (7) (8)
Other noninterest expense 4,494 5,324 4,606 4,821 4,654
Income tax expense 1,218 514 1,263 1,207 1,134
Net income 2,179 2,057 2,091 2,023 1,870
Average diluted common shares issued and outstanding 1,581,848 1,602,886 1,634,063 1,632,964 1,631,099
Diluted earnings per common share /(3)/ $ 1.38 $ 1.28 $ 1.28 $ 1.24 $ 1.15
Performance ratios
Return on average assets 1.39% 1.25% 1.29% 1.24% 1.17%
Return on average common shareholders' equity 18.64 16.70 16.87 16.67 15.86
Efficiency ratio 51.74 59.80 52.82 54.44 54.73
Shareholder value added $ 832 $ 793 $ 824 791 $ 679
=============================================================================================================================
As Reported
Income statement (taxable-equivalent basis)
Total revenue /(2)/ $ 8,687 $ 8,903 $ 8,719 $ 8,858 $ 8,501
Provision for credit losses 840 1,401 1,251 800 835
Gains (losses) on sales of securities 44 393 97 (7) (8)
Business exit costs - - 1,305 - -
Other noninterest expense 4,494 5,324 4,606 4,821 4,654
Income tax expense 1,218 514 813 1,207 1,134
Net income 2,179 2,057 841 2,023 1,870
Diluted earnings per common share /(3)/ 1.38 1.28 0.51 1.24 1.15
Cash dividends paid per common share 0.60 0.60 0.56 0.56 0.56
Performance ratios
Return on average assets 1.39% 1.25% 0.52% 1.24% 1.17%
Return on average common shareholders' equity 18.64 16.70 6.78 16.67 15.86
Net interest yield 3.85 3.95 3.78 3.61 3.39
Book value per share $ 31.15 $ 31.07 $ 31.66 $ 30.75 $ 30.47
=============================================================================================================================
Market price per share of common stock:
High for the period $ 69.61 $ 64.99 $ 65.54 $ 62.18 $ 55.94
Low for the period 57.51 52.10 50.25 48.65 45.00
Closing price 68.02 62.95 58.40 60.03 54.75
Market capitalization 105,058 98,158 92,396 96,116 87,709
Number of banking centers 4,246 4,253 4,259 4,259 4,323
Number of ATM's 13,161 13,113 12,986 12,860 12,843
Full-time equivalent employees 137,240 142,670 143,824 144,287 143,584
/(1)/ Operating basis excludes the following: provision for credit losses of
$395 million and noninterest expense of $1.3 billion related to the exit
of certain consumer finance businesses in the third quarter of 2001.
/(2)/ Trading account profits for the first quarter of 2001 included the $83
million transition adjustment loss resulting from adoption of Statement
ofFinancial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities," on January 1, 2001.
/(3)/ Includes goodwill amortization of $.09 per share in the fourth quarter of
2001 and $.10 per share in the third, second and first quarters of 2001,
respectively.
Certain prior period amounts have been reclassified to conform to current period
classifications.
1
Business Segment
Operating Net Income
First Quarter 2002
(Dollars in millions)
[GRAPH]
Consumer & Commercial Banking $1,418 65%
Asset Management $ 142 6%
Global Corporate & Investment Banking $ 503 23%
Equity Investments $ (32) -1%
Corporate Other $ 148 7%
----------------
$2,179 100%
================
[GRAPH]
Consumer & Commercial
Banking
Banking Regions $ 748 53%
Consumer Products $ 410 29%
Commercial Banking $ 260 18%
-------------
Total CCB $1,418 100%
============
[GRAPH]
Global Corporate & Investment
Banking
Global Investment Banking $275 55%
Global Credit Products $120 24%
Global Treasury Services $108 21%
------------
Total GCIB $503 100%
============
2
Consumer and Commercial Banking Segment
Consumer and Commercial Banking Segment Results
- --------------------------------------------------------------------------------
(Dollars in millions)
Quarterly
--------------------------------------------------
Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01
- ------------ --------- -------- -------- -------- --------
Total Revenue $ 5,487 $ 5,558 $ 5,318 $ 5,223 $ 4,995
Provision for Credit Losses 430 539 397 333 330
Operating Net Income /(1)/ 1,418 1,256 1,279 1,243 1,170
Shareholder Value Added 905 833 853 822 754
Return on Average Equity 30.6% 26.0% 26.3% 25.7% 24.4%
Efficiency Ratio 51.1 54.3 53.2 54.6 54.9
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $183,882 $181,187 $180,763 $180,104 $176,652
Total Deposits 276,662 273,256 266,339 264,658 259,735
Total Earning Assets 274,558 270,921 265,474 263,766 257,227
Period end (in billions)
- ----------
Mortgage Servicing Portfolio $ 331.1 $ 320.8 $338.4 $ 337.3 $ 337.3
================================================================================
Consumer and Commercial Banking Sub-Segment Results
================================================================================
Quarterly
--------------------------------------------------
Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01
- ------------ --------- -------- -------- -------- ---------
Banking Regions
- ---------------
Total Revenue $ 3,177 $ 3,205 $ 3,157 $ 3,088 $ 2,955
Operating Net Income 748 655 701 653 605
Shareholder Value Added 457 441 489 446 400
Efficiency Ratio 60.6% 63.0% 61.0% 62.7% 63.4%
Consumer Products
- -----------------
Total Revenue $ 1,475 $ 1,483 $ 1,318 $ 1,287 $ 1,224
Operating Net Income 410 395 328 334 323
Shareholder Value Added 314 302 235 244 237
Efficiency Ratio 36.7% 38.4% 41.3% 42.6% 42.9%
Commercial Banking
- ------------------
Total Revenue $ 835 $ 870 $ 843 $ 848 $ 816
Operating Net Income 260 206 250 256 242
Shareholder Value Added 134 90 129 132 117
Efficiency Ratio 40.2% 49.5% 42.6% 43.0% 41.9%
================================================================================
(1) Includes goodwill amortization of $107 million, $107 million, $105 million
and $107 million in the fourth, third, second and first quarters of 2001,
respectively.
Certain prior period amounts have been reclassified between segments to conform
to the current period presentation.
3
Consumer Credit Card Results
Included within Consumer Products
- --------------------------------------------------------------------------------
(Dollars in millions)
Quarterly
------------------------------------------------
Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01
- ------------- --------- -------- --------- --------- ---------
Outstandings:
- -------------
Held (Period-End) $19,535 $19,884 $18,052 $16,799 $14,679
Managed (Period-End) 26,558 27,185 25,513 24,871 23,179
Held (Average) 19,383 18,656 17,632 15,755 14,464
Managed (Average) 26,539 26,040 25,310 24,122 23,038
Managed Income Statement:
- -------------------------
Total Revenue $ 845 $ 835 $ 794 $ 742 $ 708
Provision Expense 371 350 357 340 333
Non-interest Expense 234 228 216 219 202
--------- -------- --------- ------------------
Net Income Before Taxes 240 257 221 183 173
Shareholder Value Added (SVA) $ 107 $ 109 $ 94 $ 71 $ 68
- -----------------------------
Credit Quality:
- ---------------
Charge-off $:
Held $ 241 $ 208 $ 181 $ 158 $ 125
Managed 355 322 307 297 248
Charge-off %:
Held 5.05 % 4.43 % 4.08 % 4.01 % 3.51 %
Managed 5.43 4.90 4.81 4.94 4.37
Managed Delinquency %:
30+ 4.16 % 4.12 % 3.95 % 3.81 % 3.96 %
90+ 1.95 1.75 1.68 1.64 1.72
================================================================================
4
Asset Management Segment
Asset Management Segment Results
- --------------------------------------------------------------------------------
(Dollars in millions)
Quarterly
-------------------------------------------------
Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01
- ------------ -------- -------- -------- -------- --------
Total Revenue $ 602 $ 625 $ 610 $ 631 $ 609
Provision for Credit Losses 26 34 16 63 8
Operating Net Income /(1)/ 142 132 149 113 128
Shareholder Value Added 75 79 96 61 77
Return on Average Equity 24.9 % 23.6 % 26.5 % 20.4 % 23.5 %
Efficiency Ratio 58.9 61.9 59.4 62.4 64.7
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $24,171 $24,537 $24,631 $24,352 $23,994
Total Deposits 11,837 11,936 11,837 11,999 11,813
Total Earning Assets 24,822 25,285 25,820 25,563 25,156
Period end (in billions)
- ----------
Assets under Management $ 314.9 $ 314.2 $ 281.8 $ 290.8 $ 286.9
Client Brokerage Assets 96.6 99.4 93.6 101.9 97.3
Assets in Custody 46.0 46.9 43.1 49.6 49.5
------- -------- -------- --------- ----------
Total Client Assets $ 457.5 $ 460.5 $ 418.5 $ 442.3 $ 433.7
================================================================================
(1) Includes goodwill amortization of $12 million per quarter in 2001.
Certain prior period amounts have been reclassified between segments to conform
to the current period presentation.
5
Global Corporate and Investment Banking Segment
Global Corporate and Investment Banking Segment Results
- --------------------------------------------------------------------------------
(Dollars in millions)
Quarterly
--------------------------------------------------
Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01
- ------------ -------- -------- -------- -------- --------
Total Revenue $ 2,326 $ 2,376 $ 2,274 $ 2,435 $ 2,451
Provision for Credit Losses 261 495 285 252 244
Operating Net Income /(1)/ 503 435 490 476 553
Shareholder Value Added 172 110 141 108 181
Return on Average Equity 17.8% 14.5% 15.3% 14.1% 16.3%
Efficiency Ratio 54.8 56.4 54.0 58.7 54.7
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $ 65,196 $ 70,065 $ 76,643 $ 84,958 $ 91,570
Total Deposits 63,212 66,076 68,472 67,439 65,927
Total Earning Assets 190,716 184,767 190,149 195,697 195,583
================================================================================
Global Corporate and Investment Banking Sub-Segment Results
================================================================================
Quarterly
--------------------------------------------------
Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01
- ------------ -------- -------- -------- -------- --------
Global Investment Banking
- -------------------------
Total Revenue $ 1,343 $ 1,258 $ 1,191 $1,448 $ 1,489
Operating Net Income 275 196 207 285 354
Shareholder Value Added 174 99 101 176 241
Efficiency Ratio 65.8% 74.4% 69.7% 69.7% 62.6%
Global Credit Products
- ----------------------
Total Revenue $ 548 $ 713 $ 689 $ 617 $ 617
Operating Net Income 120 150 194 125 143
Shareholder Value Added (96) (66) (37) (122) (104)
Efficiency Ratio 23.0% 19.2% 20.5% 25.7% 24.2%
Global Treasury Services
- ------------------------
Total Revenue $ 435 $ 405 $ 394 $ 370 $ 345
Operating Net Income 108 89 89 66 56
Shareholder Value Added 94 77 77 54 44
Efficiency Ratio 61.0% 66.0% 65.2% 70.5% 74.7%
================================================================================
(1) Includes goodwill amortization of $28 million in the fourth and third
quarters and $27 million in the second and first quarters of 2001,
respectively.
Certain prior period amounts have been reclassified between segments to conform
to the current period presentation.
6
Equity Investments Segment
Equity Investments Segment Results
- ----------------------------------------------------------------------------------------------------
(Dollars in millions)
Quarterly
----------------------------------------------------
Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01
- ------------- ------- -------- -------- ------- -------
Total Revenue ($24) ($86) ($54) $ 78 $ 102
Provision for Credit Losses - 9 - - -
Operating Net Income /(1)/ (32) (96) (81) 36 33
Shareholder Value Added (93) (162) (151) (34) (31)
Return on Average Equity (6.2)% (17.0)% (13.3)% 5.9% 5.9%
Efficiency Ratio (117.5) (72.2) (144.6) 28.0 49.3
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $ 427 $ 444 $ 468 $ 491 $ 504
Total Deposits - - - 15 37
Total Earning Assets 433 453 489 513 504
Period end
- ----------
Investment Balances for Principal Investing $5,431 $5,376 $5,483 $5,399 $5,256
- ---------------------------------------------------------------------------------------------------
(1) Includes goodwill amortization of $2 million per quarter in 2001.
Certain prior period amounts have been reclassified between segments to conform
to the current period presentation.
7
Corporate Other /(1)/
Corporate Other Segment Results/(2)/
- --------------------------------------------------------------------------------
(Dollars in millions)
Quarterly
--------------------------------------------------
Key Measures 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01 1 Qtr 01
- ------------ -------- --------- ---------- --------- ---------
Total Revenue $ 296 $ 430 $ 571 $ 491 $ 344
Provision for Credit Losses 123 324 158 152 253
Operating Net Income /(3)/ 148 330 254 155 (14)
Shareholder Value Added (227) (67) (115) (166) (302)
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $ 54,125 $ 57,121 $ 75,221 $ 93,595 $ 95,169
Total Deposits 12,692 16,903 16,680 19,237 18,106
Total Earning Assets 132,241 145,367 141,854 145,403 144,235
- --------------------------------------------------------------------------------
/(1)/ Corporate Other consists primarily of gains and losses associated with
managing the balance sheet of the Corporation, certain consumer finance
and commercial lending businesses being liquidated, and certain
residential mortgages originated by the mortgage group (not from retail
branch originations).
/(2)/ Excludes the following: provision for credit losses of $395 million and
noninterest expense of $1.3 billion related to the exit of certain
consumer finance businesses in the third quarter of 2001.
/(3)/ Includes goodwill amortization of $3 million, $7 million, $11 million and
$11 million in the fourth, third, second and first quarters of 2001,
respectively.
Certain prior period amounts have been reclassified between segments to conform
to the current period presentation.
8
Bank of America Corporation
Consolidated Statement of Income - Operating Basis/(1)/
- --------------------------------------------------------------------------------
(Dollars in millions, except per share information; shares in thousands)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
2002 2001 2001 2001 2001
------------------------------------------------------------
Interest income
Interest and fees on loan and leases $ 5,349 $ 5,795 $ 6,511 $ 7,201 $ 7,659
Interest and dividends on securities 946 1,075 891 894 846
Federal funds sold and securities purchased
under agreements to resell 285 253 321 405 435
Trading account assets 878 911 930 936 846
Other interest income 413 771 669 489 455
------------------------------------------------------------
Total interest income 7,871 8,805 9,322 9,925 10,241
------------------------------------------------------------
Interest expense
Deposits 1,344 1,713 2,097 2,363 2,713
Short-term borrowings 477 700 869 1,221 1,377
Trading account liabilities 285 268 285 312 290
Long-term debt 612 707 867 999 1,222
-----------------------------------------------------------
Total interest expense 2,718 3,388 4,118 4,895 5,602
-----------------------------------------------------------
Net interest income 5,153 5,417 5,204 5,030 4,639
Noninterest income
Consumer service charges 692 746 712 714 694
Corporate service charges 567 540 528 511 499
-----------------------------------------------------------
Total service charges 1,259 1,286 1,240 1,225 1,193
-----------------------------------------------------------
Consumer investment and brokerage services 381 382 386 399 379
Corporate investment and brokerage services 170 151 142 137 136
-----------------------------------------------------------
Total investment and brokerage services 551 533 528 536 515
-----------------------------------------------------------
Mortgage banking income 192 167 109 196 121
Investment banking income 341 473 305 455 346
Equity investment gains/(losses) 26 (49) 22 171 147
Card income 576 629 618 601 573
Trading account profits/(2)/ 345 334 433 376 699
Other income 150 25 174 181 186
-----------------------------------------------------------
Total noninterest income 3,440 3,398 3,429 3,741 3,780
-----------------------------------------------------------
Total revenue 8,593 8,815 8,633 8,771 8,419
Provision for credit losses 840 1,401 856 800 835
Gains/(losses) on sales of securities 44 393 97 (7) (8)
Other noninterest expense
Personnel 2,446 2,590 2,304 2,534 2,401
Occupancy 432 465 448 428 433
Equipment 262 280 273 271 291
Marketing 170 166 165 174 177
Professional fees 91 153 144 141 126
Amortization of intangibles 55 213 219 223 223
Data processing 205 224 175 187 190
Telecommunications 119 116 121 128 119
Other general operating 590 956 613 574 545
General administrative 124 161 144 161 149
-----------------------------------------------------------
Total other noninterest expense 4,494 5,324 4,606 4,821 4,654
-----------------------------------------------------------
Operating income before income taxes 3,303 2,483 3,268 3,143 2,922
Income tax expense 1,124 426 1,177 1,120 1,052
-----------------------------------------------------------
Operating net income $ 2,179 $ 2,057 $ 2,091 $ 2,023 $ 1,870
===========================================================
Operating income available to common shareholders 2,178 2,056 2,089 2,022 1,869
===========================================================
Per common share information
Operating earnings 1.41 1.31 1.31 1.26 1.16
===========================================================
Diluted operating earnings/(3)/ 1.38 1.28 1.28 1.24 1.15
===========================================================
Dividends 0.60 0.60 0.56 0.56 0.56
===========================================================
Average common shares issued and outstanding 1,543,471 1,570,083 1,599,692 1,601,537 1,608,890
===========================================================
Average diluted common shares issued and outstanding 1,581,848 1,602,886 1,634,063 1,632,964 1,631,099
===========================================================
As reported
Net income $ 2,179 $ 2,057 $ 841 $ 2,023 $ 1,870
Net income available to common shareholders 2,178 2,056 839 2,022 1,869
Earnings per common share 1.41 1.31 0.52 1.26 1.16
Diluted earnings per common share 1.38 1.28 0.51 1.24 1.15
/(1)/ Operating basis excludes the following: provision for credit losses of
$395 million and noninterest expense of $1.3 billion related to the exit
of certain consumer finance businesses in the third quarter of 2001.
/(2)/ Trading account profits for the first quarter of 2001 included the $83
million transition adjustment loss resulting from adoption of Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities," on January 1, 2001.
/(3)/ Includes goodwill amortization of $.09 per share in the fourth quarter of
2001 and $.10 per share in the third, second and first quarters of 2001,
respectively.
Certain prior period amounts have been reclassified to conform to current period
presentations.
9
Bank of America Corporation
Consolidated Balance Sheet
- ---------------------------------------------------------------------------------------------------------------------
(Dollars in millions)
March 31 December 31 March 31
2002 2001 2001
- ---------------------------------------------------------------------------------------------------------------------
Assets
Cash and cash equivalents $ 22,444 $ 26,837 $ 23,333
Time deposits placed and other short-term investments 7,056 5,932 5,549
Federal funds sold and securities purchased under agreements to resell 40,771 28,108 20,581
Trading account assets 58,569 47,344 45,281
Derivative assets 19,116 22,147 16,508
Securities:
Available-for-sale 74,306 84,450 49,189
Held-to-maturity 1,037 1,049 1,189
- ---------------------------------------------------------------------------------------------------------------------
Total securities 75,343 85,499 50,378
- ---------------------------------------------------------------------------------------------------------------------
Loans and leases 331,210 329,153 382,677
Allowance for credit losses (6,869) (6,875) (6,900)
- ---------------------------------------------------------------------------------------------------------------------
Loans and leases, net of allowance for credit losses 324,341 322,278 375,777
- ---------------------------------------------------------------------------------------------------------------------
Premises and equipment, net 6,748 6,414 6,366
Mortgage banking assets 4,104 3,886 3,855
Goodwill 10,950 10,854 12,006
Core deposits and other intangibles 1,256 1,294 1,446
Other assets 49,223 61,171 48,675
- ---------------------------------------------------------------------------------------------------------------------
Total assets $ 619,921 $ 621,764 $ 609,755
=====================================================================================================================
Liabilities
Deposits in domestic offices:
Noninterest-bearing $ 108,409 $ 112,064 $ 97,448
Interest-bearing 224,630 220,703 214,379
Deposits in foreign offices:
Noninterest-bearing 1,677 1,870 1,716
Interest-bearing 32,484 38,858 38,917
- ---------------------------------------------------------------------------------------------------------------------
Total deposits 367,200 373,495 352,460
- ---------------------------------------------------------------------------------------------------------------------
Federal funds purchased and securities sold under agreements to repurchase 48,545 47,727 37,011
Trading account liabilities 25,258 19,452 24,138
Derivative liabilities 12,053 14,868 17,132
Commercial paper 363 1,558 5,707
Other short-term borrowings 21,629 20,659 30,559
Accrued expenses and other liabilities 31,138 27,459 21,863
Long-term debt 60,036 62,496 67,044
Trust preferred securities 5,530 5,530 4,955
- ---------------------------------------------------------------------------------------------------------------------
Total liabilities 571,752 573,244 560,869
- ---------------------------------------------------------------------------------------------------------------------
Shareholders' equity
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and
outstanding 1,452,249; 1,514,478 and 1,662,172 shares 62 65 71
Common stock, $0.01 par value; authorized - 5,000,000,000 shares; issued and
outstanding 1,544,521,073; 1,559,297,220 and 1,601,983,783 shares 3,949 5,076 7,872
Retained earnings 44,245 42,980 40,785
Accumulated other comprehensive income/(loss) (72) 437 227
Other (15) (38) (69)
- ---------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 48,169 48,520 48,886
- ---------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $ 619,921 $ 621,764 $ 609,755
=====================================================================================================================
10
Bank of America Corporation
Average Balances and Interest Rates - Taxable-Equivalent Basis
- --------------------------------------------------------------------------------
(Dollars in millions)
First Quarter 2002 Fourth Quarter 2001
------------------------------ ---------------------------
Interest Interest
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
---------- ------- ------ -------- ------- ------
Earning assets
Time deposits placed and other short-term investments $ 10,242 $ 61 2.43 % $ 7,255 $ 64 3.47 %
Federal funds sold and securities purchased under
agreements to resell 44,682 215 1.94 38,825 253 2.60
Trading account assets 70,613 888 5.06 67,535 920 5.43
Total securities /(1)/ 73,542 963 5.24 71,454 1,090 6.10
Loans and leases /(2)/
Commercial - domestic 116,160 1,978 6.90 121,399 2,138 6.99
Commercial - foreign 21,917 226 4.17 23,789 278 4.63
Commercial real estate - domestic 22,251 275 5.01 23,051 316 5.45
Commercial real estate - foreign 389 4 4.00 375 4 4.49
----------------------------- --------------------------
Total commercial 160,717 2,483 6.26 168,614 2,736 6.44
----------------------------- --------------------------
Residential mortgage 81,104 1,389 6.88 78,366 1,385 7.05
Home equity lines 22,010 294 5.42 22,227 340 6.07
Direct/Indirect consumer 37,218 701 7.63 38,074 752 7.83
Consumer finance 5,276 104 7.87 5,324 127 9.55
Bankcard 19,383 490 10.26 18,656 498 10.58
Foreign consumer 2,093 19 3.71 2,093 21 4.02
----------------------------- --------------------------
Total consumer 167,084 2,997 7.24 164,740 3,123 7.54
----------------------------- --------------------------
Total loans and leases 327,801 5,480 6.76 333,354 5,859 6.99
----------------------------- --------------------------
Other earning assets 22,231 358 6.52 36,782 707 7.67
----------------------------- --------------------------
Total earning assets /(3)/ 549,111 7,965 5.86 555,205 8,893 6.37
----------------------------- --------------------------
Cash and cash equivalents 22,037 23,182
Other assets, less allowance for credit losses 66,530 73,410
----------------------------- --------------------------
Total assets $637,678 $651,797
============================= ==========================
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings $ 20,716 33 0.64 $ 20,132 42 0.83
NOW and money market deposit accounts 127,218 335 1.07 121,758 426 1.39
Consumer CDs and IRAs 69,359 730 4.27 71,895 898 4.96
Negotiable CDs, public funds and other time deposits 4,671 32 2.82 5,196 44 3.39
----------------------------- --------------------------
Total domestic interest-bearing deposits 221,964 1,130 2.06 218,981 1,410 2.56
----------------------------- --------------------------
Foreign interest-bearing deposits /(4)/
Banks located in foreign countries 15,464 107 2.79 20,771 170 3.22
Governments and official institutions 2,904 14 1.96 2,965 20 2.74
Time, savings, and other 19,620 93 1.93 21,858 113 2.06
----------------------------- --------------------------
Total foreign interest-bearing deposits 37,988 214 2.29 45,594 303 2.63
----------------------------- --------------------------
Total interest-bearing deposits 259,952 1,344 2.10 264,575 1,713 2.57
----------------------------- --------------------------
Federal funds purchased, securities sold under agreements
to repurchase and other short-term borrowings 86,870 477 2.23 87,291 700 3.18
Trading account liabilities 31,066 285 3.72 29,921 268 3.55
Long-term debt and trust preferred securities 67,694 612 3.62 68,141 707 4.15
----------------------------- --------------------------
Total interest-bearing liabilities /(5)/ 445,582 2,718 2.47 449,928 3,388 2.99
----------------------------- --------------------------
Noninterest-bearing sources:
Noninterest-bearing deposits 104,451 103,596
Other liabilities 40,189 49,357
Shareholders' equity 47,456 48,916
----------------------------- --------------------------
Total liabilities and shareholders' equity $637,678 $651,797
============================= ==========================
Net interest spread 3.39 3.38
Impact of noninterest-bearing sources .46 .57
----------------------------- --------------------------
Net interest income/yield on earning assets $ 5,247 3.85 % $ 5,505 3.95 %
============================= ==========================
(Dollars in millions) First Quarter 2001
--------------------------------
Interest
Average Income/ Yield/
Balance Expense Rate
-------- -------- ------
Earning assets
Time deposits placed and other short-term investments $ 6,675 $ 102 6.17 %
Federal funds sold and securities purchased under
agreements to resell 31,903 435 5.48
Trading account assets 62,491 852 5.49
Total securities /(1)/ 55,221 860 6.26
Loans and leases /(2)/
Commercial - domestic 144,404 2,813 7.90
Commercial - foreign 29,540 515 7.06
Commercial real estate - domestic 25,989 530 8.27
Commercial real estate - foreign 300 6 7.82
--------------------------------
Total commercial 200,233 3,864 7.82
--------------------------------
Residential mortgage 82,710 1,532 7.43
Home equity lines 21,744 467 8.71
Direct/Indirect consumer 40,461 784 7.86
Consumer finance 25,947 589 9.08
Bankcard 14,464 443 12.41
Foreign consumer 2,330 43 7.54
--------------------------------
Total Consumer 187,656 3,858 8.29
--------------------------------
Total loans and leases 387,889 7,722 8.05
--------------------------------
Other earning assets 17,248 352 8.28
--------------------------------
Total earning assets/(3)/ 561,427 10,323 7.42
--------------------------------
Cash and cash equivalents 23,020
Other assets, less allowance for credit losses 64,251
--------------------------------
Total assets $648,698
================================
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings $ 20,406 61 1.21
NOW and money market deposit accounts 107,015 808 3.06
Consumer CDs and IRAs 77,772 1,068 5.57
Negotiable CDs, public funds and other time deposits 7,137 108 6.16
--------------------------------
Total domestic interest-bearing deposits 212,330 2,045 3.91
--------------------------------
Foreign interest-bearing deposits /(4)/
Banks located in foreign countries 24,358 332 5.53
Governments and official institutions 3,993 52 5.27
Time, savings, and other 22,506 284 5.11
--------------------------------
Total foreign interest-bearing deposits 50,857 668 5.32
--------------------------------
Total interest-bearing deposits 263,187 2,713 4.18
--------------------------------
Federal funds purchased, securities sold under agreements
to repurchase and other short-term borrowings 94,792 1,377 5.89
Trading account liabilities 28,407 290 4.14
Long-term debt and trust preferred securities 73,752 1,222 6.63
--------------------------------
Total interest-bearing liabilities /(5)/ 460,138 5,602 4.92
--------------------------------
Noninterest-bearing sources:
Noninterest-bearing deposits 92,431
Other liabilities 48,263
Shareholders' equity 47,866
--------------------------------
Total liabilities and shareholders' equity $648,698
================================
Net interest spread 2.50
Impact of noninterest-bearing sources .89
--------------------------------
Net interest income/yield on earning assets $ 4,721 3.39 %
================================
(1) The average balance and yield on securities are based on the average of
historical amortized cost balances.
(2) Nonperforming loans are included in the respective average loan balances.
Income on such nonperforming loans is recognized on a cash basis.
(3) Interest income includes taxable-equivalent basis adjustments of $94 million
in the first quarter of 2002 and $88 million and $82 million in the fourth
and first quarters of 2001, respectively. Interest income also includes the
impact of interest rate risk management contracts, which increased
(decreased) interest income by $560 million in the first quarter of 2002 and
$473 million and $27 million in the fourth and first quarters of 2001,
respectively. These amounts were substantially offset by corresponding
decreases (increases) in the income earned on the underlying assets.
(4) Primarily consists of time deposits in denominations of $100,000 or more.
(5) Interest expense includes the impact of interest rate risk management
contracts, which (increased) decreased interest expense by $49 million in
the first quarter of 2002 and ($40) million and $23 million in the fourth
and first quarters of 2001, respectively. These amounts were substantially
offset by corresponding decreases (increases) in the interest paid on the
underlying liabilities.
11
Net Charge-offs and Net Charge-off Ratios
(Dollars in millions)
1Q01 2Q01 3Q01 4Q01 1Q02
------------- -------------- ---------------- ---------------- -----------
Amt. Ratio Amt. Ratio Amt. Ratio Amt. Ratio Amt. Ratio
---- ----- ---- ----- ------ ----- ------ ----- ---- -----
Commercial - domestic/(1)/ $415 1.17% $408 1.18% $ 412 1.26% $ 714 2.33% $370 1.29%
Commercial - foreign 34 0.46 57 0.84 57 0.89 60 1.00 49 0.90
Commercial real estate - domestic 6 - 12 0.18 4 0.07 17 0.29 14 0.25
---- ---- ------ ------ ----
Total Commercial 455 0.92 477 1.00 473 1.05 791 1.86 433 1.09
---- ---- ------ ------ ----
Residential mortgage 6 0.03 7 0.03 7 0.04 6 0.03 11 0.05
Home equity lines 6 0.11 4 0.07 4 0.07 5 0.10 8 0.15
Direct/indirect consumer 75 0.76 65 0.65 94 0.94 115 1.20 95 1.03
Consumer finance/(2)/ 93 1.45 67 1.00 720 17.47 49 3.65 44 3.38
Bankcard 125 3.51 158 4.01 181 4.08 208 4.43 241 5.05
Other consumer domestic 11 n/m 8 n/m 11 n/m 18 n/m 7 n/m
Foreign consumer 1 0.19 1 0.24 1 0.21 2 0.25 1 0.16
---- ---- ------ ------ ----
Total Consumer/(2)/ 317 0.68 310 0.65 1,018 2.27 403 0.97 407 0.99
---- ---- ------ ------ ----
Total Net Charge-offs/(2)/ $772 0.81 $787 0.82 $1,491 1.65 $1,194 1.42 $840 1.04
==== ==== ====== ====== ====
By Business Segment:
Consumer & Commercial Banking $330 0.76% $333 0.74% $397 0.87% $539 1.18% $430 0.95%
Global Corporate & Investment Banking/(1)/ 244 1.08 252 1.19 285 1.47 495 2.80 261 1.62
Asset Management 8 0.14 62 1.03 15 0.26 34 0.55 26 0.44
Equity Investments - - - - - - 9 7.76 - -
Corporate Other/(2)/ 190 0.81 140 0.60 794 4.19 117 0.81 123 0.92
---- ---- ------ ------ ----
Total Net Charge-offs $772 0.81 $787 0.82 $1,491 1.65 $1,194 1.42 $840 1.04
==== ==== ====== ====== ====
Loans are classified as domestic or foreign based upon the domicile of the
borrower.
/(1)/ Fourth quarter 2001 includes $210 million related to Enron.
/(2)/ Third quarter 2001 includes $635 million related to the exit of certain
consumer finance businesses. Excluding these net charge-offs, the ratios
would be 2.07% for Consumer Finance, 0.85% for Total Consumer, and 0.95%
for Total Net Charge-offs.
Net Charge-offs
[GRAPH]
1Q01 2Q01 3Q01 4Q01 1Q02
------- ------- -------- --------- -------
Total Net Charge-offs, excl. exited cons. fin. businesses $ 772 $ 787 $ 856 $ 1,194 $ 840
Net Charge-off Ratio, excl. exited cons. fin. businesses 0.95%
Charge-offs - exited consumer finance business $ 635
Total Net Charge-offs incl. exited cons. fin. businesses $ 772 $ 787 $1,491 $ 1,194 $ 840
Net Charge-off Ratio, incl. exited cons. fin. businesses 0.81% 0.82% 1.65% 1.42% 1.04%
12
Nonperforming Assets
(Dollars in millions)
1Q01 2Q01 3Q01 4Q01 1Q02
-------- -------- -------- -------- --------
Commercial - domestic $ 3,110 $ 3,209 $ 2,705 $ 3,123 $ 3,207
Commercial - foreign 529 562 566 461 583
Commercial real estate - domestic 206 201 257 240 216
Commercial real estate - foreign 3 3 2 3 2
-------- -------- -------- -------- --------
Total Commercial 3,848 3,975 3,530 3,827 4,008
-------- -------- -------- -------- --------
Residential mortgage 553 573 491 556 477
Home equity lines 36 42 61 80 73
Direct/Indirect consumer 19 17 20 27 26
Consumer finance 1,153 1,234 9 9 8
Foreign consumer 11 8 8 7 9
-------- -------- -------- -------- --------
Total Consumer 1,772 1,874 589 679 593
-------- -------- -------- -------- --------
Total Nonperforming Loans 5,620 5,849 4,119 4,506 4,601
Foreclosed properties 277 346 404 402 391
-------- -------- -------- -------- --------
Total Nonperforming Assets/(1)/ $ 5,897 $ 6,195 $ 4,523 $ 4,908 $ 4,992
======== ======== ======== ======== ========
Loans past due 90 days or more and still accruing $ 527 $ 608 $ 691 $ 680 $ 662
Nonperforming Assets/ Total Assets 0.97 % 0.99 % 0.71 % 0.79 % 0.81 %
Nonperforming Assets/ Total Loans, Leases and Foreclosed Properties 1.54 1.63 1.33 1.49 1.51
Nonperforming Loans/Total Loans and Leases 1.47 1.54 1.22 1.37 1.39
Allowance for Loan Losses $ 6,900 $ 6,911 $ 6,665 $ 6,875 $ 6,869
Allowance / Total Loans 1.80 % 1.82 % 1.97 % 2.09 % 2.07 %
Allowance / Total Nonperforming Loans 123 118 162 153 149
Loans are classified as domestic or foreign based upon the domicile of the
borrower.
(1) Balances do not include $304 million, $1.0 billion, $1.3 billion, $120
million and $144 million of loans held for sale, included in other assets at
March 31, 2002, December 31, 2001, September 30, 2001, June 30, 2001 and
March 31, 2001, respectively, which would have been classified as
nonperforming had they been included in loans. In the third quarter of 2001,
$1.2 billion of nonperforming subprime real estate loans were transferred to
loans held for sale as a result of the exit of certain consumer finance
businesses.
[GRAPH]
1Q01 2Q01 3Q01 4Q01 1Q02
-------- --------- -------- -------- ---------
Total Allowance to Total Loans 1.80% 1.82% 1.97% 2.09% 2.07%
Total Allowance to Total Nonperforming Loans 123% 118% 162% 153% 149%
13
Capital Management
(Dollars in millions)
1Q01 2Q01 3Q01 4Q01 1Q02
--------- --------- --------- --------- ---------
Tier 1 capital $ 40,769 $ 41,794 $ 41,517 $ 41,979 $ 42,078
Total capital 63,102 63,967 63,311 64,124 64,066
Net risk-weighted assets 532,824 529,201 522,291 506,020 488,772
Tier 1 capital ratio 7.65% 7.90% 7.95% 8.30% 8.61%
Total capital ratio 11.84 12.09 12.12 12.67 13.11
Ending equity / ending assets 8.02 7.88 7.83 7.80 7.77
Ending capital / ending assets 8.83 8.67 8.61 8.69 8.66
Average equity / average assets 7.38 7.43 7.66 7.50 7.44
Share Repurchase Program
- --------------------------------------------------------------------------------
31 million common shares were repurchased during the first quarter of 2002 as a
part of ongoing share repurchase programs. In total, 259 million common shares
have been repurchased since June 1999 - returning $14.8 billion of capital to
shareholders.
101 million shares remain outstanding under current authorized programs.
Capital Management
(Shares in millions)
[GRAPH]
1Q01 2Q01 3Q01 4Q01 1Q02
------- -------- ------- ------- -------
Shares outstanding at period end 1,602 1,601 1,582 1,559 1,545
Tier 1 capital ratio 7.65% 7.90% 7.95% 8.30 % 8.61%
14
E-Commerce & BankofAmerica.com
- --------------------------------------------------------------------------------
Active On-line Banking Subscribers
(in thousands)
[GRAPH]
-------------------------------------
Bill-pay On-line Only Total
-------------------------------------
Mar-01 672 1,415 2,087
Jun-01 762 1,546 2,308
Sep-01 844 1,695 2,539
Dec-01 949 1,957 2,906
Mar-02 1,059 2,255 3,314
- --------------------------------------------------------------------------------
Bank of America has the largest active online banking customer base with 3.3
million subscribers. This represents an active customer penetration rate of 23%.
Bank of America uses the strictest Active User standard in the industry -
customers must have used our online services within the last 90 days.
1.1 million active bill pay users pay nearly $5 billion worth of bills
quarterly.
Currently, over 170 companies are presenting nearly 900,000 e-bills per quarter.
- --------------------------------------------------------------------------------
On-line Banking Active Penetration
of Total DDA Households
[GRAPH]
1Q01 16%
2Q01 17%
3Q01 18%
4Q01 20%
1Q02* 23%
* Estimate
- --------------------------------------------------------------------------------
Bill payment Volume
(Dollars in millions)
[GRAPH]
---------------------------------
$ Volume % Electronic
---------------------------------
1Q01 3,326 73%
2Q01 3,614 73%
3Q01 4,038 74%
4Q01 4,386 74%
1Q02* 4,942 78%
*Estimate
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
% Reduction in 1-Year Attrition Rates
On-line vs. Off-line Customers
[GRAPH]
On-line Only Customers 48%
On-line & Bill-pay Customers 80%
-------------------------------------------------------------------------------
Bank of America Direct Clients
at period end
[GRAPH]
---------------------------------
Companies Users
---------------------------------
1Q01 4,312 26,679
2Q01 4,950 32,134
3Q01 5,770 38,614
4Q01 6,746 46,062
1Q02 7,476 53,452