Exhibit 99.2

 

LOGO

 

Supplemental Information

Third Quarter 2005

 

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 Corporation

Results Overview

 

Third Quarter 2005

 

    Earnings of $4.1 billion or $1.02 per diluted share grew 12% over results in 3Q04 but fell 4% versus 2Q05 results. Excluding merger and restructuring charges of $120 million, $80 million after tax, earnings were $1.04 per diluted share.

 

    Revenue increased at a double digit pace in all business segments versus 3Q04

 

    Global Consumer & Business Banking increased 13%

 

    Global Wealth & Investment Management increased 14%

 

    Global Business & Financial Services increased 13%

 

    Global Capital Markets & Investment Banking increased 12%

 

    Revenue on an FTE basis of $14.8 billion grew 4% compared to 2Q05 and 16% over 3Q04

Net interest income improved 1.7% versus 2Q05 while the net interest yield declined 1 bp to 2.80%

 

    Increasing loan and deposit levels drove the improvement offsetting compression from the flattening yield curve.

 

    Retail deposits grew another $6.4 billion or 1% versus 2Q05

 

    Average loans grew 4% (excluding residential mortgages held for asset liability management purposes)

 

    Noninterest income improved 7% from 2Q05 with continuing consumer strength aided by good market sensitive revenue.

 

    Service charges grew 8% versus 2Q05 while credit card income increased 6% in the quarter.

 

    Trading-related revenue improved 14% and investment banking climbed 21%.

 

    Equity investment gains showed continued strength reaching $668 million in 3Q05 versus $492 million in 2Q05.

 

    Securities gains recognized in 3Q05 were $29 million versus $325 million in 2Q05.

 

    Noninterest expense, excluding merger and restructuring charges, of $7.2 billion increased 4% versus 2Q05 and resulted in an efficiency ratio of 48%.

 

    Personnel costs rose 5% driven by revenue growth and higher legal costs were offset by lower marketing expenses.

 

    Provision expense was $1,159 million versus the $1,145 million net charge-offs recorded in the quarter

 

    Charge-offs include $209 million domestic airline exposure reserved in prior periods.

 

    Also contributing to decreased commercial reserves was improvement in the risk profile of Argentine exposure.

 

    Partially offsetting these reductions in commercial reserves was increased consumer reserves for card portfolio growth, including securitizations returning to the balance sheet, and continued portfolio seasoning.

 

    A $50 million reserve was established for estimated losses associated with Hurricane Katrina.

 

    Tier 1 ratio rose to 8.21% versus 2Q05 ratio at 8.06%.

 

    Continuing momentum in business lines:

 

    8.5 million product sales.

 

    Number of net new checking accounts grew by 635,000.

 

    Number of net new savings accounts grew by 294,000.

 

    Opened 1.5 million new credit card accounts.

 

    1.1 million of retail product sales delivered through the Ecommerce channel, up 79% versus 3Q04.

 

    Active online banking users increased to 14.3 million while bill payers reached 7 million.

 

    Bill payers are now paying $33 billion worth of bills per quarter with bill presenters growing to more than 300.

 

    Assets under management ended the quarter at $457 billion reflecting increases from market valuations as well as net inflows.

 

    Fleet merger all but completed.

 

    MBNA integration underway as closing is expected in January 2006.

 

1


Bank of America Corporation

Fleet Merger Accomplishments

 

    Converted 10.6 million cardholder accounts

 

    Converted 6 million retail accounts to the Model Bank platform

 

    Opened over 380,000 net new checking accounts in Northeast

 

    More than 2.5 million unit sales of products so far in 2005

 

    Converted 902,000 Quick & Reilly accounts

 

    Placed 455 Premier bankers in Northeast markets

 

    Welcomed 187,000 Premier customers

 

    Opened 5 Premier banking and investment centers

 

    Installed Loan Solutions capabilities in 1,500 banking centers

 

    Achieved total cost savings of $1.85 billion in 2005

 

2


Bank of America Corporation

 

Consolidated Financial Highlights

(Dollars in millions, except per share information; shares in thousands)

 

   

Year-to-Date

September 30


   

Third
Quarter

2005


   

Second
Quarter

2005


   

First

Quarter

2005


   

Fourth
Quarter

2004


   

Third

Quarter

2004


 
    2005

    2004

           

Income statement

                                                       

Total revenue

  $ 42,644     $ 35,166     $ 14,607     $ 14,015     $ 14,022     $ 13,713     $ 12,587  

Provision for credit losses

    2,614       2,063       1,159       875       580       706       650  

Gains on sales of debt securities

    1,013       2,022       29       325       659       101       732  

Noninterest expense

    21,361       19,679       7,285       7,019       7,057       7,333       7,021  

Income tax expense

    6,564       5,152       2,065       2,150       2,349       1,926       1,884  

Net income

    13,118       10,294       4,127       4,296       4,695       3,849       3,764  

Diluted earnings per common share

    3.22       2.76       1.02       1.06       1.14       0.94       0.91  

Average diluted common shares issued and outstanding

    4,072,991       3,729,120       4,054,659       4,065,355       4,099,062       4,106,040       4,121,375  

Dividends paid per common share

  $ 1.40     $ 1.25     $ 0.50     $ 0.45     $ 0.45     $ 0.45     $ 0.45  

Performance ratios

                                                       

Return on average assets

    1.39 %     1.36 %     1.26 %     1.35 %     1.59 %     1.33 %     1.37 %

Return on average common shareholders’ equity

    17.70       17.32       16.33       17.54       19.30       15.63       15.56  

At period end

                                                       

Book value per share of common stock

  $ 25.16     $ 24.14     $ 25.16     $ 24.96     $ 24.35     $ 24.56     $ 24.14  

Market price per share of common stock:

                                                       

Closing price

  $ 42.10     $ 43.33     $ 42.10     $ 45.61     $ 44.10     $ 46.99     $ 43.33  

High closing price for the period

    47.08       44.98       45.98       47.08       47.08       47.44       44.98  

Low closing price for the period

    41.60       38.96       41.60       44.01       43.66       43.62       41.81  

Market capitalization

    168,950       175,446       168,950       183,202       177,958       190,147       175,446  

Number of banking centers - domestic

    5,844       5,829       5,844       5,880       5,889       5,885       5,829  

Number of ATMs - domestic

    16,714       16,728       16,714       16,687       16,798       16,771       16,728  

Full-time equivalent employees

    177,236       178,632       177,236       177,795       176,675       178,053       178,632  

 

Certain prior period amounts have been reclassified to conform to current period presentation.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

3


Bank of America Corporation

 

Supplemental Financial Data

(Dollars in millions)

 

Fully taxable-equivalent basis data

 

     Year-to-Date
September 30


   

Third
Quarter

2005


   

Second
Quarter

2005


   

First
Quarter

2005


   

Fourth
Quarter

2004


   

Third
Quarter

2004


 
     2005

    2004

           

Net interest income

   $ 23,886     $ 21,557     $ 7,973     $ 7,841     $ 8,072     $ 7,954     $ 7,836  

Total revenue

     43,234       35,676       14,807       14,206       14,221       13,920       12,758  

Net interest yield

     2.90 %     3.29 %     2.80 %     2.81 %     3.11 %     3.18 %     3.30 %

Efficiency ratio

     49.41       55.16       49.20       49.42       49.62       52.69       55.03  

 

Reconciliation to GAAP financial measures

 

Supplemental financial data presented on an operating basis is a basis of presentation not defined by accounting principles generally accepted in the United States (GAAP) that excludes merger and restructuring charges. We believe that the exclusion of merger and restructuring charges, which represent events outside our normal operations, provides a meaningful period-to-period comparison and is more reflective of normalized operations.

 

Shareholder value added (SVA) is a key measure of performance not defined by GAAP that is used in managing our growth strategy orientation and strengthening our focus on generating long-term growth and shareholder value. SVA is used to evaluate the Corporation's use of equity (i.e. capital) at the individual unit level and is an integral component in the analytics for resource allocation. Using SVA as a performance measure places specific focus on whether incremental investments generate returns in excess of the costs of capital associated with those investments. Each business segment has a goal for growth in SVA reflecting the individual segment's business and customer strategy.

 

Other companies may define or calculate supplemental financial data differently. See the Tables below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the quarters ended September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004 and September 30, 2004, and the nine months ended September 30, 2005 and 2004.

 

Reconciliation of net income to operating earnings

 

     Year-to-Date
September 30


   

Third
Quarter

2005


   

Second
Quarter

2005


   

First
Quarter

2005


   

Fourth
Quarter

2004


   

Third
Quarter

2004


 
     2005

    2004

           

Net income

   $ 13,118     $ 10,294     $ 4,127     $ 4,296     $ 4,695     $ 3,849     $ 3,764  

Merger and restructuring charges

     353       346       120       121       112       272       221  

Related income tax benefit

     (118 )     (116 )     (40 )     (41 )     (37 )     (91 )     (74 )
    


 


 


 


 


 


 


Operating earnings

   $ 13,353     $ 10,524     $ 4,207     $ 4,376     $ 4,770     $ 4,030     $ 3,911  
    


 


 


 


 


 


 


Operating basis                                                         

Diluted earnings per common share

   $ 3.28     $ 2.82     $ 1.04     $ 1.08     $ 1.16     $ 0.98     $ 0.95  

Return on average assets

     1.42 %     1.39 %     1.29 %     1.37 %     1.61 %     1.39 %     1.42 %

Return on avg common shareholders’ equity

     18.02       17.71       16.64       17.87       19.61       16.37       16.17  

Efficiency ratio

     48.59       54.19       48.39       48.56       48.83       50.73       53.30  
Reconciliation of net income to
shareholder value added
  

Net income

   $ 13,118     $ 10,294     $ 4,127     $ 4,296     $ 4,695     $ 3,849     $ 3,764  

Amortization of intangibles

     613       455       201       204       208       209       200  

Merger and restructuring charges, net of tax benefit

     235       230       80       80       75       181       147  

Capital charge

     (8,142 )     (6,530 )     (2,778 )     (2,691 )     (2,673 )     (2,705 )     (2,658 )
    


 


 


 


 


 


 


Shareholder value added

   $ 5,824     $ 4,449     $ 1,630     $ 1,889     $ 2,305     $ 1,534     $ 1,453  
    


 


 


 


 


 


 


 

Certain prior period amounts have been reclassified to conform to current period presentation.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

4


Bank of America Corporation

 

Consolidated Statement of Income

(Dollars in millions, except per share information; shares in thousands)

 

    

Year-to-Date

September 30


  

Third
Quarter

2005


  

Second
Quarter

2005


  

First
Quarter

2005


  

Fourth
Quarter

2004


  

Third
Quarter

2004


 
     2005

   2004

              

Interest income

                                                  

Interest and fees on loans and leases

   $ 25,375    $ 20,294    $ 8,956    $ 8,312    $ 8,107    $ 7,919    $ 7,508  

Interest and dividends on securities

     8,130      5,197      2,797      2,799      2,534      2,065      2,078  

Federal funds sold and securities purchased under agreements to resell

     3,504      1,331      1,359      1,252      893      712      484  

Trading account assets

     4,158      2,981      1,550      1,426      1,182      1,035      960  

Other interest income

     1,486      1,226      547      502      437      464      457  
    

  

  

  

  

  

  


Total interest income

     42,653      31,029      15,209      14,291      13,153      12,195      11,487  
    

  

  

  

  

  

  


Interest expense

                                                  

Deposits

     6,831      4,446      2,409      2,379      2,043      1,829      1,711  

Short-term borrowings

     7,971      2,891      3,325      2,677      1,969      1,543      1,152  

Trading account liabilities

     1,745      965      707      611      427      352      333  

Long-term debt

     2,810      1,680      995      974      841      724      626  
    

  

  

  

  

  

  


Total interest expense

     19,357      9,982      7,436      6,641      5,280      4,448      3,822  
    

  

  

  

  

  

  


Net interest income

     23,296      21,047      7,773      7,650      7,873      7,747      7,665  
    

  

  

  

  

  

  


Noninterest income

                                                  

Service charges

     5,777      5,098      2,080      1,920      1,777      1,891      1,899  

Investment and brokerage services

     3,122      2,606      1,060      1,049      1,013      1,008      972  

Mortgage banking income (loss)

     590      258      180      189      221      156      (250 )

Investment banking income

     1,319      1,389      522      431      366      497      438  

Equity investment gains

     1,559      437      668      492      399      426      220  

Card income

     4,246      3,212      1,520      1,437      1,289      1,380      1,258  

Trading account profits

     1,559      600      514      285      760      269      184  

Other income

     1,176      519      290      562      324      339      201  
    

  

  

  

  

  

  


Total noninterest income

     19,348      14,119      6,834      6,365      6,149      5,966      4,922  
    

  

  

  

  

  

  


Total revenue

     42,644      35,166      14,607      14,015      14,022      13,713      12,587  

Provision for credit losses

     2,614      2,063      1,159      875      580      706      650  

Gains on sales of debt securities

     1,013      2,022      29      325      659      101      732  

Noninterest expense

                                                  

Personnel

     11,209      9,915      3,837      3,671      3,701      3,520      3,534  

Occupancy

     1,889      1,731      638      615      636      648      622  

Equipment

     894      888      300      297      297      326      309  

Marketing

     990      1,012      307      346      337      337      364  

Professional fees

     647      561      254      216      177      275      207  

Amortization of intangibles

     613      455      201      204      208      209      200  

Data processing

     1,093      958      361      368      364      371      341  

Telecommunications

     608      514      206      196      206      216      180  

Other general operating

     3,065      3,299      1,061      985      1,019      1,159      1,043  

Merger and restructuring charges

     353      346      120      121      112      272      221  
    

  

  

  

  

  

  


Total noninterest expense

     21,361      19,679      7,285      7,019      7,057      7,333      7,021  
    

  

  

  

  

  

  


Income before income taxes

     19,682      15,446      6,192      6,446      7,044      5,775      5,648  

Income tax expense

     6,564      5,152      2,065      2,150      2,349      1,926      1,884  
    

  

  

  

  

  

  


Net income

   $ 13,118    $ 10,294    $ 4,127    $ 4,296    $ 4,695    $ 3,849    $ 3,764  
    

  

  

  

  

  

  


Net income available to common shareholders

   $ 13,104    $ 10,283    $ 4,122    $ 4,292    $ 4,690    $ 3,844    $ 3,759  
    

  

  

  

  

  

  


Per common share information

                                                  

Earnings

   $ 3.27    $ 2.80    $ 1.03    $ 1.07    $ 1.16    $ 0.95    $ 0.93  
    

  

  

  

  

  

  


Diluted earnings

   $ 3.22    $ 2.76    $ 1.02    $ 1.06    $ 1.14    $ 0.94    $ 0.91  
    

  

  

  

  

  

  


Dividends paid

   $ 1.40    $ 1.25    $ 0.50    $ 0.45    $ 0.45    $ 0.45    $ 0.45  
    

  

  

  

  

  

  


Average common shares issued and outstanding

     4,012,924      3,666,298      4,000,573      4,005,356      4,032,550      4,032,979      4,052,304  
    

  

  

  

  

  

  


Average diluted common shares issued and outstanding

     4,072,991      3,729,120      4,054,659      4,065,355      4,099,062      4,106,040      4,121,375  
    

  

  

  

  

  

  


 

Certain prior period amounts have been reclassified to conform to current period presentation.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

5


Bank of America Corporation

 

Consolidated Balance Sheet

 

(Dollars in millions)


   September 30
2005


    June 30
2005


    September 30
2004


 

Assets

                        

Cash and cash equivalents

   $ 32,771     $ 33,935     $ 29,252  

Time deposits placed and other short-term investments

     11,236       9,682       11,021  

Federal funds sold and securities purchased under agreements to resell

     135,409       149,287       104,570  

Trading account assets

     121,256       126,658       102,925  

Derivative assets

     26,005       26,019       25,398  

Securities:

                        

Available-for-sale

     227,349       233,412       163,438  

Held-to-maturity, at cost

     136       174       420  
    


 


 


Total securities

     227,485       233,586       163,858  
    


 


 


Loans and leases

     554,603       529,418       511,639  

Allowance for loan and lease losses

     (8,326 )     (8,319 )     (8,723 )
    


 


 


Loans and leases, net of allowance

     546,277       521,099       502,916  
    


 


 


Premises and equipment, net

     7,659       7,602       7,884  

Mortgage servicing rights

     2,764       2,366       2,453  

Goodwill

     45,298       45,381       44,709  

Core deposit intangibles and other intangibles

     3,356       3,472       3,726  

Other assets

     92,743       87,243       74,117  
    


 


 


Total assets

   $ 1,252,259     $ 1,246,330     $ 1,072,829  
    


 


 


Liabilities

                        

Deposits in domestic offices:

                        

Noninterest-bearing

   $ 174,990     $ 175,427     $ 155,406  

Interest-bearing

     390,973       397,778       380,956  

Deposits in foreign offices:

                        

Noninterest-bearing

     6,750       6,102       5,632  

Interest-bearing

     53,764       56,110       49,264  
    


 


 


Total deposits

     626,477       635,417       591,258  
    


 


 


Federal funds purchased and securities sold under agreements to repurchase

     217,053       207,710       142,992  

Trading account liabilities

     51,244       61,906       36,825  

Derivative liabilities

     15,711       15,630       12,721  

Commercial paper and other short-term borrowings

     107,655       93,763       61,585  

Accrued expenses and other liabilities (includes $390, $383 and $446 of reserve for unfunded lending commitments)

     32,976       34,470       28,851  

Long-term debt

     99,885       96,894       100,586  
    


 


 


Total liabilities

     1,151,001       1,145,790       974,818  
    


 


 


Shareholders’ equity

                        

Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 1,090,189 shares

     271       271       271  

Common stock and additional paid-in capital, $0.01 par value; authorized - 7,500,000,000 shares; issued and outstanding - 4,013,063,444; 4,016,703,839 and 4,049,062,685 shares

     42,548       42,507       44,756  

Retained earnings

     65,439       63,328       55,979  

Accumulated other comprehensive income (loss)

     (6,509 )     (4,992 )     (2,669 )

Other

     (491 )     (574 )     (326 )
    


 


 


Total shareholders’ equity

     101,258       100,540       98,011  
    


 


 


Total liabilities and shareholders’ equity

   $ 1,252,259     $ 1,246,330     $ 1,072,829  
    


 


 


 

Certain prior period amounts have been reclassified to conform to current period presentation.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

6


Bank of America Corporation

 

Capital Management

(Dollars in millions)

 

     Third
Quarter
2005(1)


    Second
Quarter
2005


    First
Quarter
2005


    Fourth
Quarter
2004


    Third
Quarter
2004


 

Tier 1 capital

   $ 73,030     $ 68,806     $ 67,127     $ 64,281     $ 62,981  

Total capital

     98,989       94,933       93,774       92,266       91,326  

Risk-weighted assets

     889,979       853,669       818,179       793,523       779,858  

Tier 1 capital ratio

     8.21 %     8.06 %     8.20 %     8.10 %     8.08 %

Total capital ratio

     11.12       11.12       11.46       11.63       11.71  

Tangible equity ratio(2)

     4.37       4.32       4.25       4.76       4.84  

Leverage ratio

     5.85       5.59       5.82       5.82       5.92  

 

(1) Preliminary data on risk-based capital

 

(2) Tangible equity ratio equals shareholders’ equity less goodwill, core deposit intangibles and other intangibles divided by total assets less goodwill, core deposit intangibles and other intangibles.

 

Share Repurchase Program

 

10.6 million common shares were repurchased in the third quarter of 2005 as a part of ongoing share repurchase programs.

 

186.4 million shares remain outstanding under the 2005 authorized program.

 

7.0 million shares were issued in the third quarter of 2005.

 

Captial Management

 

LOGO

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

7


Bank of America Corporation

 

Core Net Interest Income

(Dollars in millions)

 

    Year-to-Date
September 30


    Third
Quarter
2005


    Second
Quarter
2005


    First
Quarter
2005


    Fourth
Quarter
2004


    Third
Quarter
2004


 
    2005

    2004

           

Net Interest Income

                                                       

As reported (fully taxable-equivalent basis)

  $ 23,886     $ 21,557     $ 7,973     $ 7,841     $ 8,072     $ 7,954     $ 7,836  

Trading-related net interest income

    (1,144 )     (1,622 )     (316 )     (414 )     (414 )     (417 )     (448 )
   


 


 


 


 


 


 


Core net interest income

    22,742       19,935       7,657       7,427       7,658       7,537       7,388  

Impact of revolving securitizations

    615       637       168       209       238       244       290  
   


 


 


 


 


 


 


Core net interest income - managed basis

  $ 23,357     $ 20,572     $ 7,825     $ 7,636     $ 7,896     $ 7,781     $ 7,678  
   


 


 


 


 


 


 


Average Earning Assets

                                                       

As reported

  $ 1,100,693     $ 874,176     $ 1,137,619     $ 1,118,527     $ 1,044,914     $ 998,004     $ 948,383  

Trading-related earning assets

    (297,426 )     (218,840 )     (312,441 )     (315,716 )     (263,583 )     (252,217 )     (222,042 )
   


 


 


 


 


 


 


Core average earning assets

    803,267       655,336       825,178       802,811       781,331       745,787       726,341  

Impact of revolving securitizations

    9,484       9,866       7,723       9,973       10,791       11,112       13,253  
   


 


 


 


 


 


 


Core average earning assets - managed basis

  $ 812,751     $ 665,202     $ 832,901     $ 812,784     $ 792,122     $ 756,899     $ 739,594  
   


 


 


 


 


 


 


Net Interest Yield Contribution

                                                       

As reported (fully taxable-equivalent basis)

    2.90 %     3.29 %     2.80 %     2.81 %     3.11 %     3.18 %     3.30 %

Impact of trading-related activities

    0.88       0.77       0.91       0.90       0.84       0.85       0.76  
   


 


 


 


 


 


 


Core net interest yield on earning assets

    3.78       4.06       3.71       3.71       3.95       4.03       4.06  

Impact of revolving securitizations

    0.05       0.06       0.04       0.05       0.06       0.06       0.08  
   


 


 


 


 


 


 


Core net interest yield on earning assets - managed basis

    3.83 %     4.12 %     3.75 %     3.76 %     4.01 %     4.09 %     4.14 %
   


 


 


 


 


 


 


 

Certain prior period amounts have been restated reflecting realignment of business segments.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

8


Bank of America Corporation

 

Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis

(Dollars in millions)

 

     Third Quarter 2005

    Second Quarter 2005

    First Quarter 2005

 
     Average
Balance


   Interest
Income/
Expense


   Yield/
Rate


    Average
Balance


   Interest
Income/
Expense


   Yield/
Rate


    Average
Balance


   Interest
Income/
Expense


   Yield/
Rate


 

Earning assets

                                                            

Time deposits placed and other short-term investments

   $ 14,498    $ 125    3.43 %   $ 13,696    $ 113    3.31 %   $ 14,327    $ 101    2.87 %

Federal funds sold and securities purchased under agreements to resell

     176,650      1,359    3.07       185,835      1,252    2.70       147,855      893    2.43  

Trading account assets

     142,287      1,578    4.42       134,196      1,454    4.34       117,748      1,203    4.10  

Securities

     225,952      2,824    5.00       227,182      2,829    4.98       204,574      2,561    5.01  

Loans and leases(1):

                                                            

Residential mortgage

     171,002      2,294    5.36       167,272      2,271    5.43       178,098      2,412    5.43  

Credit card

     55,271      1,651    11.85       52,474      1,481    11.32       51,310      1,373    10.85  

Home equity lines

     58,046      910    6.22       54,941      799    5.83       51,477      692    5.45  

Direct/Indirect consumer

     47,900      702    5.81       43,132      612    5.69       41,620      573    5.58  

Other consumer(2)

     6,715      170    10.05       6,968      155    8.96       7,305      158    8.75  
    

  

        

  

        

  

      

Total consumer

     338,934      5,727    6.72       324,787      5,318    6.56       329,810      5,208    6.37  
    

  

        

  

        

  

      

Commercial - domestic

     127,044      2,124    6.63       123,927      1,969    6.37       123,803      1,983    6.49  

Commercial real estate

     34,663      542    6.20       33,484      477    5.72       33,016      430    5.29  

Commercial lease financing

     20,402      239    4.69       20,446      252    4.93       20,745      260    5.01  

Commercial - foreign

     18,444      349    7.50       17,780      306    6.90       17,570      258    5.96  
    

  

        

  

        

  

      

Total commercial

     200,553      3,254    6.44       195,637      3,004    6.16       195,134      2,931    6.08  
    

  

        

  

        

  

      

Total loans and leases

     539,487      8,981    6.62       520,424      8,322    6.41       524,944      8,139    6.27  
    

  

        

  

        

  

      

Other earning assets

     38,745      542    5.57       37,194      512    5.52       35,466      455    5.19  
    

  

        

  

        

  

      

Total earning assets(3)

     1,137,619      15,409    5.39       1,118,527      14,482    5.19       1,044,914      13,352    5.15  
    

  

  

 

  

  

 

  

  

Cash and cash equivalents

     32,969                   34,731                   31,382              

Other assets, less allowance for loan and lease losses

     124,157                   124,231                   124,587              
    

               

               

             

Total assets

   $ 1,294,745                 $ 1,277,489                 $ 1,200,883              
    

               

               

             

Interest-bearing liabilities

                                                            

Domestic interest-bearing deposits:

                                                            

Savings

   $ 35,853    $ 56    0.62 %   $ 38,043    $ 52    0.54 %   $ 37,000    $ 35    0.39 %

NOW and money market deposit accounts

     224,341      743    1.31       229,174      723    1.27       233,392      651    1.13  

Consumer CDs and IRAs

     130,975      1,048    3.17       127,169      974    3.07       118,989      769    2.62  

Negotiable CDs, public funds and other time deposits

     4,414      50    4.54       7,751      87    4.49       10,291      96    3.73  
    

  

        

  

        

  

      

Total domestic interest-bearing deposits

     395,583      1,897    1.90       402,137      1,836    1.83       399,672      1,551    1.57  
    

  

        

  

        

  

      

Foreign interest-bearing deposits(4):

                                                            

Banks located in foreign countries

     19,707      273    5.50       25,546      335    5.26       22,084      316    5.81  

Governments and official institutions

     7,317      62    3.37       7,936      59    2.97       6,831      43    2.58  

Time, savings and other

     32,024      177    2.19       30,973      149    1.94       30,770      133    1.75  
    

  

        

  

        

  

      

Total foreign interest-bearing deposits

     59,048      512    3.44       64,455      543    3.38       59,685      492    3.35  
    

  

        

  

        

  

      

Total interest-bearing deposits

     454,631      2,409    2.10       466,592      2,379    2.04       459,357      2,043    1.80  
    

  

        

  

        

  

      

Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings

     339,980      3,325    3.88       323,916      2,677    3.32       276,483      1,969    2.89  

Trading account liabilities

     68,132      707    4.12       60,987      611    4.02       44,507      427    3.89  

Long-term debt

     99,576      995    4.00       97,360      974    4.00       97,126      841    3.46  
    

  

        

  

        

  

      

Total interest-bearing liabilities(3)

     962,319      7,436    3.07       948,855      6,641    2.81       877,473      5,280    2.43  
    

  

  

 

  

  

 

  

  

Noninterest-bearing sources:

                                                            

Noninterest-bearing deposits

     178,140                   174,001                   168,062              

Other liabilities

     53,832                   56,216                   56,534              

Shareholders’ equity

     100,454                   98,417                   98,814              
    

               

               

             

Total liabilities and shareholders’ equity

   $ 1,294,745                 $ 1,277,489                 $ 1,200,883              
    

               

               

             

Net interest spread

                 2.32                   2.38                   2.72  

Impact of noninterest-bearing sources

                 0.48                   0.43                   0.39  
                  

               

               

Net interest income/yield on earning assets

          $ 7,973    2.80 %          $ 7,841    2.81 %          $ 8,072    3.11 %
           

  

        

  

        

  

 

(1) Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis.

 

(2) Includes consumer finance of $3,063 million, $3,212 million and $3,362 million in the third, second and first quarters of 2005, respectively; foreign consumer of $3,541 million, $3,505 million and $3,532 million in third, second and first quarters of 2005, respectively; and consumer lease financing of $111 million, $251 million and $411 million in the third, second and first quarters of 2005, respectively.

 

(3) Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $91 million, $193 million and $437 million in the third, second and first quarters of 2005. These amounts were substantially offset by corresponding decreases in the income earned on the underlying assets. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities $239 million, $314 million and $154 million in the third, second and first quarters of 2005. These amounts were substantially offset by corresponding decreases in the interest paid on the underlying liabilities.

 

(4) Primarily consists of time deposits in denominations of $100,000 or more.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

9


Bank of America Corporation

 

Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis (continued)

(Dollars in millions)

 

     Fourth Quarter 2004

    Third Quarter 2004

    Second Quarter 2004

 
     Average
Balance


   Interest
Income/
Expense


   Yield/
Rate


    Average
Balance


   Interest
Income/
Expense


   Yield/
Rate


    Average
Balance


   Interest
Income/
Expense


   Yield/
Rate


 

Earning assets

                                                            

Time deposits placed and other short-term investments

   $ 15,620    $ 128    3.24 %   $ 14,726    $ 127    3.45 %   $ 14,384    $ 59    1.65 %

Federal funds sold and securities purchased under agreements to resell

     149,226      712    1.90       128,339      484    1.50       124,383      413    1.33  

Trading account assets

     110,585      1,067    3.85       98,459      975    3.96       104,391      1,025    3.94  

Securities

     171,173      2,083    4.87       169,515      2,095    4.94       159,797      1,925    4.82  

Loans and leases(1):

                                                            

Residential mortgage

     178,879      2,459    5.49       175,046      2,371    5.41       173,158      2,284    5.29  

Credit card

     49,366      1,351    10.88       45,818      1,265    10.98       43,160      1,167    10.88  

Home equity lines

     48,336      609    5.01       44,309      514    4.62       40,424      450    4.48  

Direct/Indirect consumer

     39,526      551    5.55       38,951      538    5.49       39,763      540    5.44  

Other consumer(2)

     7,557      153    8.07       7,693      152    7.91       8,142      169    8.32  
    

  

        

  

        

  

      

Total consumer

     323,664      5,123    6.31       311,817      4,840    6.19       304,647      4,610    6.07  
    

  

        

  

        

  

      

Commercial - domestic

     121,412      1,914    6.27       122,093      1,855    6.04       123,970      1,843    5.98  

Commercial real estate

     31,355      392    4.98       30,792      344    4.44       30,311      317    4.20  

Commercial lease financing

     20,204      254    5.01       20,125      233    4.64       20,086      237    4.72  

Commercial - foreign

     18,828      272    5.76       18,251      245    5.34       18,144      237    5.24  
    

  

        

  

        

  

      

Total commercial

     191,799      2,832    5.88       191,261      2,677    5.57       192,511      2,634    5.50  
    

  

        

  

        

  

      

Total loans and leases

     515,463      7,955    6.15       503,078      7,517    5.95       497,158      7,244    5.85  
    

  

        

  

        

  

      

Other earning assets

     35,937      457    5.08       34,266      460    5.33       38,407      494    5.17  
    

  

        

  

        

  

      

Total earning assets(3)

     998,004      12,402    4.96       948,383      11,658    4.90       938,520      11,160    4.77  
    

  

  

 

  

  

 

  

  

Cash and cash equivalents

     31,028                   29,469                   30,320              

Other assets, less allowance for loan and lease losses

     123,519                   118,831                   125,619              
    

               

               

             

Total assets

   $ 1,152,551                 $ 1,096,683                 $ 1,094,459              
    

               

               

             

Interest-bearing liabilities

                                                            

Domestic interest-bearing deposits:

                                                            

Savings

   $ 36,927    $ 36    0.39 %   $ 36,823    $ 35    0.38 %   $ 35,864    $ 31    0.34 %

NOW and money market deposit accounts

     234,596      589    1.00       233,602      523    0.89       233,702      488    0.84  

Consumer CDs and IRAs

     109,243      711    2.59       101,250      668    2.63       93,017      587    2.54  

Negotiable CDs, public funds and other time deposits

     7,563      81    4.27       5,654      69    4.85       4,737      66    5.60  
    

  

        

  

        

  

      

Total domestic interest-bearing deposits

     388,329      1,417    1.45       377,329      1,295    1.37       367,320      1,172    1.28  
    

  

        

  

        

  

      

Foreign interest-bearing deposits(4):

                                                            

Banks located in foreign countries

     17,953      275    6.11       17,864      307    6.83       18,945      287    6.10  

Governments and official institutions

     5,843      33    2.21       5,021      22    1.80       5,739      23    1.58  

Time, savings and other

     30,459      104    1.36       29,513      87    1.17       29,882      47    0.64  
    

  

        

  

        

  

      

Total foreign interest-bearing deposits

     54,255      412    3.02       52,398      416    3.16       54,566      357    2.63  
    

  

        

  

        

  

      

Total interest-bearing deposits

     442,584      1,829    1.64       429,727      1,711    1.58       421,886      1,529    1.46  
    

  

        

  

        

  

      

Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings

     252,384      1,543    2.43       226,025      1,152    2.03       235,701      1,019    1.74  

Trading account liabilities

     37,387      352    3.74       37,706      333    3.51       31,620      298    3.78  

Long-term debt

     99,588      724    2.91       98,361      626    2.54       96,395      563    2.34  
    

  

        

  

        

  

      

Total interest-bearing liabilities(3)

     831,943      4,448    2.13       791,819      3,822    1.92       785,602      3,409    1.74  
    

  

  

 

  

  

 

  

  

Noninterest-bearing sources:

                                                            

Noninterest-bearing deposits

     167,352                   158,151                   160,419              

Other liabilities

     55,156                   50,321                   55,172              

Shareholders’ equity

     98,100                   96,392                   93,266              
    

               

               

             

Total liabilities and shareholders' equity

   $ 1,152,551                 $ 1,096,683                 $ 1,094,459              
    

               

               

             

Net interest spread

                 2.83                   2.98                   3.03  

Impact of noninterest-bearing sources

                 0.35                   0.32                   0.28  
                  

               

               

Net interest income/yield on earning assets

          $ 7,954    3.18 %          $ 7,836    3.30 %          $ 7,751    3.31 %
           

  

        

  

        

  

 

(1) Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis.

 

(2) Includes consumer finance of $3,473 million, $3,644 million and $3,828 million in the fourth, third and second quarters of 2004, respectively; foreign consumer of $3,523 million, $3,304 million and $3,256 million in the fourth, third and second quarters of 2004, respectively; and consumer lease financing of $561 million, $745 million and $1,058 million in the fourth, third and second quarters of 2004, respectively.

 

(3) Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $496 million, $531 million and $658 million in the fourth, third and second quarters of 2004, respectively. These amounts were substantially offset by corresponding decreases in the income earned on the underlying assets. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities $155 million, $217 million and $333 million in the fourth, third and second quarters of 2004. These amounts were substantially offset by corresponding decreases in the interest paid on the underlying liabilities.

 

(4) Primarily consists of time deposits in denominations of $100,000 or more.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

10


Bank of America Corporation

 

Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis - Isolating Derivative Hedge Income/Expense(1)

(Dollars in millions)

 

    Third Quarter 2005

    Second Quarter 2005

    First Quarter 2005

 
    Average
Balance


  Interest
Income/
Expenses


    Yield/
Rate


    Average
Balance


  Interest
Income/
Expenses


    Yield/
Rate


    Average
Balance


  Interest
Income/
Expenses


  Yield/
Rate


 

Earning assets

                                                         

Time deposits placed and other short-term investments (2)

  $ 14,498   $ 126     3.46 %   $ 13,696   $ 114     3.33 %   $ 14,327   $ 101   2.88 %

Federal funds sold and securities purchased under agreements to resell (2)

    176,650     1,459     3.29       185,835     1,267     2.73       147,855     851   2.32  

Trading account assets

    142,287     1,578     4.42       134,196     1,454     4.34       117,748     1,203   4.10  

Securities(2)

    225,952     2,823     4.99       227,182     2,829     4.98       204,574     2,563   5.01  

Loans and leases(3):

                                                         

Residential mortgage (2)

    171,002     2,301     5.37       167,272     2,268     5.43       178,098     2,409   5.43  

Credit card

    55,271     1,651     11.85       52,474     1,481     11.32       51,310     1,373   10.85  

Home equity lines

    58,046     910     6.22       54,941     799     5.83       51,477     692   5.45  

Direct/Indirect consumer

    47,900     702     5.81       43,132     612     5.69       41,620     573   5.58  

Other consumer(4)

    6,715     170     10.05       6,968     155     8.96       7,305     158   8.75  
   

 


       

 


       

 

     

Total consumer

    338,934     5,734     6.73       324,787     5,315     6.56       329,810     5,205   6.37  
   

 


       

 


       

 

     

Commercial - domestic (2)

    127,044     1,897     5.93       123,927     1,721     5.57       123,803     1,539   5.04  

Commercial real estate

    34,663     542     6.20       33,484     477     5.72       33,016     430   5.29  

Commercial lease financing

    20,402     239     4.69       20,446     252     4.93       20,745     260   5.01  

Commercial - foreign(2)

    18,444     349     7.50       17,780     305     6.88       17,570     257   5.94  
   

 


       

 


       

 

     

Total commercial

    200,553     3,027     5.99       195,637     2,755     5.65       195,134     2,486   5.16  
   

 


       

 


       

 

     

Total loans and leases

    539,487     8,761     6.46       520,424     8,070     6.22       524,944     7,691   5.92  
   

 


       

 


       

 

     

Other earning assets

    38,745     571     5.87       37,194     555     5.98       35,466     506   5.77  
   

 


       

 


       

 

     

Total earning assets - Excluding hedge impact

    1,137,619     15,318     5.36       1,118,527     14,289     5.12       1,044,914     12,915   4.98  
   

 


       

 


       

 

     

Net derivative income (expense) on assets

          91                   193                   437      
         


             


             

     

Total earning assets - Including hedge impact

    1,137,619     15,409     5.39       1,118,527     14,482     5.19       1,044,914     13,352   5.15  
   

 


 

 

 


 

 

       

Cash and cash equivalents

    32,969                   34,731                   31,382            

Other assets, less allowance for loan and lease losses

    124,157                   124,231                   124,587            
   

               

               

           

Total assets

  $ 1,294,745                 $ 1,277,489                 $ 1,200,883            
   

               

               

           

Interest-bearing liabilities

                                                         

Domestic interest-bearing deposits:

                                                         

Savings

  $ 35,853   $ 56     0.62 %   $ 38,043   $ 52     0.54 %   $ 37,000   $ 35   0.39 %

NOW and money market deposit accounts (2)

    224,341     743     1.31       229,174     722     1.26       233,392     634   1.10  

Consumer CDs and IRAs (2)

    130,975     889     2.69       127,169     786     2.48       118,989     649   2.21  

Negotiable CDs, public funds and other time deposits (2)

    4,414     33     3.02       7,751     63     3.22       10,291     67   2.61  
   

 


       

 


       

           

Total domestic interest-bearing deposits

    395,583     1,721     1.73       402,137     1,623     1.62       399,672     1,385   1.41  
   

 


       

 


       

 

     

Foreign interest-bearing deposits(5):

                                                         

Banks located in foreign countries (2)

    19,707     259     5.21       25,546     270     4.24       22,084     199   3.66  

Governments and official institutions

    7,317     62     3.37       7,936     59     2.97       6,831     43   2.58  

Time, savings and other

    32,024     177     2.19       30,973     149     1.94       30,770     133   1.75  
   

 


       

 


       

 

     

Total foreign interest-bearing deposits

    59,048     498     3.35       64,455     478     2.98       59,685     375   2.55  
   

 


       

 


       

 

     

Total interest-bearing deposits

    454,631     2,219     1.94       466,592     2,101     1.81       459,357     1,760   1.55  
   

 


       

 


       

 

     

Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings(2)

    339,980     3,085     3.60       323,916     2,478     3.07       276,483     1,837   2.69  

Trading account liabilities

    68,132     707     4.12       60,987     611     4.02       44,507     427   3.89  

Long-term debt (2)

    99,576     1,186     4.76       97,360     1,136     4.67       97,126     1,102   4.54  
   

 


       

 


       

           

Total interest-bearing liabilities - Excluding hedge impact

    962,319     7,197     2.97       948,855     6,326     2.67       877,473     5,126   2.36  
   

 


       

 


       

 

     

Net derivative (income) expense on liabilities

          239                   315                   154      
         


             


             

     

Total interest-bearing liabilities - Including hedge impact

    962,319     7,436     3.07       948,855     6,641     2.81       877,473     5,280   2.43  
   

 


 

 

 


 

 

 

 

Noninterest-bearing sources:

                                                         

Noninterest-bearing deposits

    178,140                   174,001                   168,062            

Other liabilities

    53,832                   56,216                   56,534            

Shareholders’ equity

    100,454                   98,417                   98,814            
   

               

               

           

Total liabilities and shareholders’ equity

  $ 1,294,745                 $ 1,277,489                 $ 1,200,883            
   

               

               

           

Net interest spread

                2.39                   2.45                 2.62  

Impact of noninterest-bearing sources

                0.46                   0.40                 0.38  
                 

               

             

Net interest income/yield on earning assets - excluding hedge impact

        $ 8,121     2.85           $ 7,963     2.85           $ 7,789   3.00  
         


 

       


 

       

 

Net impact of derivative hedge income/(expense)

          (148 )   (0.05 )           (122 )   (0.04 )           283   0.11  
         


 

       


 

       

 

Net interest income/yield on earning assets

        $ 7,973     2.80 %         $ 7,841     2.81 %         $ 8,072   3.11 %
         


 

       


 

       

 

 

(1) This table presents a non-GAAP financial measure. The impact of interest rate risk management derivatives is shown separately. Interest income and interest expense amounts, and the yields and rates have been adjusted. Management believes this presentation is useful to investors because it adjusts for the impact of our hedging decisions and provides a better understanding of our hedging activities.

 

(2) Interest income excludes the impact of interest rate risk management contracts, which increased(decreased) interest income on time deposits placed and other short-term investments $(1) million, federal funds sold and securities purchased under agreements to resell $(100) milllion, securities $1 million, residential mortgage $(7) million, commercial—domestic $227 million and other earning assets $(29) million in the three months ended September 30, 2005. Interest expense excludes the impact of interest rate risk management contracts which increased(decreased) interest expense on consumer CDs and IRAs $159 million, negotiable CDs, public funds and other time deposits $17 million, banks located in foreign countries $14 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $240 million and long-term debt $(191) million in the three months ended September 30, 2005.

 

Interest income excludes the impact of interest rate risk management contracts, which increased(decreased) interest income on time deposits placed and other short-term investments $(1) million, federal funds sold and securities purchased under agreements to resell $(15) milllion, residential mortgage $3 million, commercial - domestic $248 million, commercial - foreign $1 million and other earning assets $(43) million in the three months ended June 30, 2005. Interest expense excludes the impact of interest rate risk management contracts which increased(decreased) interest expense on NOW and money market deposit accounts $1 million, consumer CDs and IRAs $188 million, negotiable CDs, public funds and other time deposits $24 million, banks located in foreign countries $65 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $199 million and long-term debt $(162) million in the three months ended June 30, 2005.

 

Interest income excludes the impact of interest rate risk management contracts, which increased(decreased) interest income on federal funds sold and securities purchased under agreements to resell $42 million, securities $(2) million, residential mortgage $3 million, commercial - domestic $444 million, commercial - foreign $1 million and other earning assets $(51) million in the three months ended March 31, 2005. Interest expense excludes the impact of interest rate risk management contracts which increased(decreased) interest expense on NOW and money market deposit accounts $17 million, consumer CDs and IRAs $120 million, negotiable CDs, public funds and other time deposits $29 million, banks located in foreign countries $117 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $132 million and long-term debt $(261) million in the three months ended March 31, 2005.

 

(3) Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis.

 

(4) Includes consumer finance of $3,063 million, $3,212 million and $3,362 million in the third, second and first quarters of 2005, respectively; foreign consumer of $3,541 million, $3,505 million and $3,532 million in third, second and first quarters of 2005, respectively; and consumer lease financing of $111 million, $251 million and $411 million in the third, second and first quarters of 2005, respectively.

 

(5) Primarily consists of time deposits in denominations of $100,000 or more.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

11


Bank of America Corporation

 

Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis - Isolating Derivative Hedge
Income/Expense(1) (continued)

(Dollars in millions) 

 

     Fourth Quarter 2004

    Third Quarter 2004

    Second Quarter 2004

 
     Average
Balance


  Interest
Income/
Expenses


  Yield/
Rate


    Average
Balance


  Interest
Income/
Expenses


  Yield/
Rate


    Average
Balance


  Interest
Income/
Expenses


  Yield/
Rate


 

Earning assets

                                                      

Time deposits placed and other short-term investments (2)

   $ 15,620   $ 119   3.01 %   $ 14,726   $ 127   3.44 %   $ 14,384   $ 59   1.65 %

Federal funds sold and securities purchased under agreements to resell (2)

     149,226     674   1.80       128,339     421   1.31       124,383     303   0.98  

Trading account assets

     110,585     1,067   3.85       98,459     975   3.96       104,391     1,025   3.94  

Securities(2)

     171,173     2,084   4.87       169,515     2,103   4.96       159,797     1,929   4.83  

Loans and leases(3):

                                                      

Residential mortgage (2)

     178,879     2,447   5.46       175,046     2,389   5.45       173,158     2,269   5.25  

Credit card

     49,366     1,351   10.88       45,818     1,265   10.98       43,160     1,167   10.88  

Home equity lines

     48,336     609   5.01       44,309     514   4.62       40,424     450   4.48  

Direct/Indirect consumer

     39,526     551   5.55       38,951     538   5.49       39,763     540   5.44  

Other consumer(4)

     7,557     153   8.07       7,693     152   7.91       8,142     169   8.32  
    

 

       

 

       

 

     

Total consumer

     323,664     5,111   6.29       311,817     4,858   6.21       304,647     4,595   6.05  
    

 

       

 

       

 

     

Commercial - domestic (2)

     121,412     1,418   4.65       122,093     1,300   4.24       123,970     1,237   4.02  

Commercial real estate

     31,355     392   4.98       30,792     344   4.44       30,311     317   4.20  

Commercial lease financing

     20,204     254   5.01       20,125     233   4.64       20,086     237   4.72  

Commercial - foreign(2)

     18,828     271   5.73       18,251     242   5.29       18,144     235   5.19  
    

 

       

 

       

 

     

Total commercial

     191,799     2,335   4.85       191,261     2,119   4.41       192,511     2,026   4.23  
    

 

       

 

       

 

     

Total loans and leases

     515,463     7,446   5.76       503,078     6,977   5.53       497,158     6,621   5.35  
    

 

       

 

       

 

     

Other earning assets

     35,937     516   5.73       34,266     524   6.07       38,407     564   5.90  
    

 

       

 

       

 

     

Total earning assets - Excluding hedge impact

     998,004     11,906   4.76       948,383     11,127   4.68       938,520     10,501   4.49  
    

 

       

 

       

 

     

Net derivative income (expense) on assets

           496                 531                 659      
          

             

             

     

Total earning assets- Including hedge impact

     998,004     12,402   4.96       948,383     11,658   4.90       938,520     11,160   4.77  
    

 

 

 

 

 

 

 

     

Cash and cash equivalents

     31,028                 29,469                 30,320            

Other assets, less allowance for loan and lease losses

     123,519                 118,831                 125,619            
    

             

             

           

Total assets

   $ 1,152,551               $ 1,096,683               $ 1,094,459            
    

             

             

           

Interest-bearing liabilities

                                                      

Domestic interest-bearing deposits:

                                                      

Savings

   $ 36,927   $ 36   0.39 %   $ 36,823   $ 35   0.38 %   $ 35,864   $ 31   0.34 %

NOW and money market deposit accounts (2)

     234,596     547   0.93       233,602     475   0.81       233,702     412   0.71  

Consumer CDs and IRAs (2)

     109,243     539   1.96       101,250     447   1.76       93,017     350   1.51  

Negotiable CDs, public funds and other time deposits (2)

     7,563     38   2.03       5,654     20   1.43       4,737     13   1.09  
    

 

       

 

 

 

 

 

Total domestic interest-bearing deposits

     388,329     1,160   1.19       377,329     977   1.03       367,320     806   0.88  
    

 

       

 

 

 

 

 

Foreign interest-bearing deposits(5):

                                                      

Banks located in foreign countries (2)

     17,953     157   3.47       17,864     160   3.55       18,945     138   2.95  

Governments and official institutions

     5,843     33   2.21       5,021     22   1.80       5,739     23   1.58  

Time, savings and other

     30,459     104   1.36       29,513     87   1.17       29,882     47   0.64  
    

 

       

 

 

 

 

 

Total foreign interest-bearing deposits

     54,255     294   2.15       52,398     269   2.04       54,566     208   1.54  
    

 

       

 

 

 

 

 

Total interest-bearing deposits

     442,584     1,454   1.31       429,727     1,246   1.15       421,886     1,014   0.97  
    

 

       

 

 

 

 

 

Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings (2)

     252,384     1,386   2.18       226,025     987   1.74       235,701     769   1.31  

Trading account liabilities

     37,387     352   3.74       37,706     333   3.51       31,620     298   3.78  

Long-term debt (2)

     99,588     1,101   4.42       98,361     1,038   4.22       96,395     995   4.13  
    

 

       

 

 

 

 

 

Total interest-bearing liabilities - Excluding hedge impact

     831,943     4,293   2.05       791,819     3,604   1.81       785,602     3,076   1.57  
    

 

       

 

 

 

 

 

Net derivative (income) expense on liabilities

           155                 218                 333      
          

             

             

     

Total interest-bearing liabilities - Including hedge impact

     831,943     4,448   2.13       791,819     3,822   1.92       785,602     3,409   1.74  
    

 

 

 

 

 

 

 

 

Noninterest-bearing sources:

                                                      

Noninterest-bearing deposits

     167,352                 158,151                 160,419            

Other liabilities

     55,156                 50,321                 55,172            

Shareholders’ equity

     98,100                 96,392                 93,266            
    

             

             

           

Total liabilities and shareholders’ equity

   $ 1,152,551               $ 1,096,683               $ 1,094,459            
    

             

             

           

Net interest spread

               2.71                 2.87                 2.92  

Impact of noninterest-bearing sources

               0.33                 0.30                 0.25  
                

             

             

Net interest income/yield on earning assets - excluding hedge impact

         $ 7,613   3.04           $ 7,523   3.17           $ 7,425   3.17